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Diploma in Travel and Tourism
Unit Number and Title
Unit 1 Travel Tourism Savoy Hotel
Savoy Hotel is the luxury hotel that is located in London and is the first hotel of the Savoy group. It provides premium quality services to the clients in order to retain them with the organization. The study identifies the role of hospitality industry in the travel and tourism sector and interrelationship among hospitality and travel and tourism businesses. The report analyzes the implication of integration to the hospitality industry and integration affects the hotel business. It develop the plan for the hospitality business that contains various stages like development stage, design stage and operation stage that help the management to set the bench mark of services for the clients in organization. The report develops the rationale that clearly justifies the decisions that are linked to the target market.
Figure 1 Hotel Savoy
In present situation Tourism industry plays vital role in the growth of Hotel industry. Hotels provide luxury services to the clients where as tourism industry provides luxury transportation services to the customers. In United Kingdom, the business of hospitality and travel and tourism is growing rapidly because London is very popular tourist destination. Hospitality industry provides quality services to its clients and that attract the potential clients in the market. Hotel Savoy is among the successful hotels in London which provides luxury facilities to its customer. The hotel includes 268 rooms and seven restaurants. To attract the customers, Hotel Savoy provides various hospitality services like pub, spa, parks, dinner etc. On the other hand tourism organization provides quality tour packages to the clients in order to attract new customers towards organization.
The link between hotel and travel agency helps both organizations to increase the revenue. Hotel sectors provide 3 to 5 star hotels to the visitors whereas travel sector provides premium transportation services including the full service package to the customers to visit the destinations (Eid and El-Gohary, 2015). For example travel and tourism organization like Thomas Cook makes a trip for their customers to visit the different places of London. One organization will provide the accommodation and other will provide the transportation facility. Travel and tourism organizations works on different level but the objective is same to provide quality services to their customers.
The growth of hotel and tourism industry impacts the economy, as both the businesses can create opportunities for employment and support the local business. The travel and tourism industry generates revenue for the economy. Travel and tourism organization makes trip by considering the services of hotel Savoy like accommodation facility, food and lodging facility etc. The management of tour organization develops the cost plan according to services of hospitality. The additional facilities are also provided by hotel so that both organizations can develop the satisfaction level of customer. This has positive impact on the brand image of both the organization and revenue will be increased.
Hotel Savoy and Adventure Holiday has strong connection as they are developing the services and products according to customer demand that look for full services packages. The work of Savoy Hotel and Adventure Hotel is interrelated so the customer demand can be fulfilled through pooling the resources. The travel and hotel industry are interlinked with each other for providing best hospitality services to their customers according to their demand. The tourism organization also offers various packages according to their budget. The travel organization makes contact with hotel to provide services for their customers according to their needs and demand.
The hotel will try to give their best effort in providing best facilities. The services which are provided by travel and hospitality organizations have impact on the brand value and their customer retention policies. This kind of relationship is beneficial for travel and hospitality organizations that generate more profitable condition for the businesses and create competitive advantage for Savoy Hotel and Adventure Holiday. The services given by touring agency and hotel is targeted to satisfy customer demand and brings more opportunities for travel and tourism organization. The travel agency can choose the best hotel according to customer’s budget and demand (Chen.et.al.2013). By the joint operational activity like Savoy hotel and Adventure Holiday can lead to improvement in the customer services and satisfaction level of visitors and retain them for longer period of time. It can be identified that this kind of interrelationship for businesses are interlinked in terms of services and customers and their main motive is to satisfy the demand of customers.The operational cost for travel and tourism organization also reduces because the customer of hotel also integrated with them. The impact of this merger is if customer is satisfied then Savoy Hotel and Adventure Holidays objectives will be achieved and the revenue increases. An efficient hotel and tourism services and operations are capable of generating positive economic and social development whilst minimizing business environment impact. For instance the group of customers wants to have a tour to various destination of UK then they need to contact the tour organization that is offering the full services. This kind of facility is provided by the business through effective merger among or joint venture. Travel and tourism sectors are from different segment but the objective is same to increase the customer base and try to fullfill the demand of clients (Han and Hyun, 2015). These two industries not only can bring income to promote the national economy, but also solve the problem of employment. Thus the hotel industry and touring industry cannot be separated. Premium accommodation services are offered by Hotel Savoy and also help the clients to get the package as per the budget. Management tries to design the package as per the budget to the clients. It can be said that travel and tourism organizations are dependent on each other for better services and also make the services for the customers to get the services under one roof.
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Savoy hotel is using integration with the travel and tour organization. Integration assists the business to work together by managing the resources and the services vertically and horizontally. Business go together to work more successfully and efficiently for the fulfillment of the clients. Organization design customized architecture to merge the present resources for the enlargement and growth of organization. Integration helps the organization to achieve the management goals with the suitable coordination among the departments. For instance Savoy hotel merge the resources with the Adventure Holiday for the better allocation of the resources (Jasper and Waldhart, 2013). Integration assists the business to discover the new legal entity with the combine of two organizations. Following are the type of integration Adventure Holiday follows:
Integration helps the business to focus on the technological factors, process that floats the business on the positive way. Savoy hotel assists the business to compete in the global market with the proper use of the resources in the organization. Following points explain the impact of integration in Savoy hotel:
Rationale :Hotel Savoy is one of the leading organizations of UK that aims to start the business in hospitality sector. The main reason of developing the hospitality organization is expansion and to beat the dependence on the hospitality business in UK. This kind of methods will assist the business to reduce the cost of hospitality charges that affects the price of different packages that are offered to the clients and also help the manager to manage the services offered to the customers. In addition to this the general idea for entering into the business hotels is to raise the profits and also reduce the dependency on the merged organization. This kind service helps the management to serve better services to the clients and also identify the demand of clients in the organization. By having the business of hotel management can easily identify the drawback of services and also assess the quality of services offered by the management. In relation to this business encourage the management to fulfill the demand of clients and also motivate them to allocate the resources properly (Hauck.et.al.2013). The constant economic situations, allocation of resources and increased demand are the important element that boasts up the Hotel Savoy to enter into travel industry.
Following are the stages that help the business to plan the luxury services to the clients:
Stage 1: The main objective of business with the project to locate the hotel in London is to retain the old clients in the organization and serve them quality services to them. The top management is focused to serve best services to the clients and try to encourage the employees to identify the needs of new customers in the organization. The plan is designed to create the good brand image of organization and also help the management to overcome the cost of agreement with the travel agency and owe the own hotel that help the organization to reduce the operation and also get the good base of customers. It will help the management to gain the competitive advantage and it will also increase the brand image of organization. For starting the business, main aim of organizations is to provide quality services to the clients and always focus on the demand, service standards and feedback of the clients over the services. The basic idea of management is to serve global services at economic cost and competitive advantage from the global competitors. The vision of Hotel Savoy is crystal clear that organization is focusing to expand the business and develop the products and services as per the current market trends (Foxall, 2014). In order to meet the vision management has done merger with the travel agency like Adventure travel that help the Hotel Savoy to meet the mission and vision.
The basic concept of organization is to propose premium quality to the customers thus they are able to retain them for longer tenure. The accommodation must be clean, healthy, service on time, security, availability of demanded food and beverages. Apart from that management should have good command over the services that help management to plan the allocation resources properly. Tour planning services facilitates the management to attract the clients and also improve the brand image of organization. At first stage management will target the people and that are looking to visit the London, for that Hotel Savoy will provide whole services in the package. For development of sustainable plan to enter in the hotel business, Adventure Holidays will consider the market research that helps the business to identify the taste and preference of clients and they are able to satisfy their demand. To collect the information, Adventure Holidays adopt the online platform that helps the management to collect the feedback of the clients and also develop the base of customers for better services and to earn more profits. It assists the management to basic detail of the customers like age, name, gender, number of visitors etc. The market research help the management to identify the current market trends like interior, exterior, views about different destinations etc (Stadtler, 2015). By analyzing the collected data as toe the market research management of Adventure Holidays will able to reach decision to evaluate the quality of service and products offered to the customers. It also helps the management to identify the pros and cons of new policy that are being given by the clients through feedback.
In order to reach the management goals management needs funds to develop the infrastructure, operational activities, staffing other services and products. Adventure Holidays get the funds from different investors and from banks as a loan. This all institutes fulfill the cash need of organization and help the business to reach the next stage (Babin and Zikmund, 2015). Apart from that organization will offer bars, disco, gym, pool to the clients in order to retain them. For business expansion Adventure Holidays it is important for the business to maintain the quality of service and provide responsibility to the employees in order to serve better.
Stage 2 : For hotel organization there are various factors that have direct and indirect impact on the business growth chances and development of brand image. Interior and exterior of the organization plays vital role to attract the clients in the organization and also help the business to prefer the Hotel Savoy for accommodation. Now to develop unique design to create different position within hospitality business Adventure Holidays will consider the following points:
Figure 2 Ambiance Savoy hotel London
Figure 3 Interior Savoy hotel London
Figure 4 Exterior Savoy hotel London
Stage 3: Operational activities and management is the basic element for the hospitality organization that supports to preserve the efficiency of the organization process. The major factors are that have important contribution in increasing and implementing the new venture. Adventure Holidays will also consider the different factors:
Figure 5 Operational activities
The study identifies the interrelationship among the travel sector and hotel sector and also describes the dependency of both the organization behaviour on each other. It helps the organization to identify the pros and cons of different policies and try to overcome them with the help of integration. The report explains different kind of integration like horizontal and vertical integration. It develops the plan for the organization that helps the new venture in the market and also helps the business to gain the competitive advantage.
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