Unit 12 Assignment on Hospitality Industry
Within this Unit 12 Assignment on Hospitality Industry the hospitality industry and other factors associated with it are discussed. The interrelationship of the hospitality provision with the travel and tourism sector has been discussed along with other different concepts of the hospitality provisions. Implications of different integration strategies along with the types of the integrations are discussed. The effects of different types of integrations on the hospitality sector are also indentified. The rationale of a selected project by assessing the target market of the chosen organisation is developed. Different operational requirements of the business of the hospitality sector are also discussed within this report.
1.1Discuss the interrelationships between hospitality and wider travel and tourism businesses
- Hospitality: the concept of hospitality refers to serving the guests and visitors with various approaches and welcoming nature. Hospitality is associated with different skills and departments to satisfy the customers or guests as different guests have different requirements. In order to achieve the success within the hospitality sector the management of any hospitality organisation should lead their staffs towards the better quality service offering. There are different services which are included within the hospitality sector. (Medlik, 2012) Within the hospitality services there are two distinct parts such as accommodation along with other leisure facilities and food and beverage for the visitors.
- Hospitality provision: the hospitality provision has been consists of the travel and tourism sector, event management services, hotel and accommodation, recreation and restaurant. The hospitality products are intangible in nature and are consumable; the services are not bound by any time measurement, shifts in the working hours etc. there are different hospitality providers such as lodges, guest houses, hotels, camp site for the holidays. On the other hand, the transport systems, leisure facilities, different attractions for the visitors are also included within the hospitality provision. (Warin, Diamant, and Pfenning, 2010)
- The interrelationships of Hospitality provision and travel and tourism: The hospitality provision and travel and tourism sector are linked to each other in a significant manner. In the current scenario, the travel and tourism has been gaining growth in a rapid manner. With the help of the hospitality sector travel and tourism business has been attracting more customers to purchase their services. The profit of the travel and tourism business has been dependent on the hospitality services. By considering the changes within the requirements of the customers the hospitality has been developing their products. There are different activities which are offered within the hospitality provision. (Warin, Diamant, and Pfenning, 2010) The activities are included within the services for providing better leisure experiences of the customers. Through the services the organisations are enhancing the experiences of the service users and convincing their mind to purchase the services and products again.
- Importance of the hospitality provision within travel: in the current situation the hospitality services are gaining interests by the travellers while they are purchasing any travel and tourism packages. This leads to the rapid growth in the importance of the hospitality sector. With the increase in the number of travellers and the differences in their requirements over the standards and quality of the hospitality services while they are travelling, the growth of the hospitality provision is increasing in rapid manner. There are different sizes of organisations within the hospitality provision. There are different small and medium sized business organisations within the hospitality provision. The services within the hospitality industry are connected with the different individual sectors. (Andrews, 2010.) These services are developed by analysing specific needs of the customers. The hospitality sector has been developed in different areas along with urban and rural areas for providing services to wide range of customers or approaching different customers with different income status and spending capacity. Within Europe the hospitality has been growing in faster space than any other region. There are 6.3 billion hospitality sectors which are established within Europe.
- Stakeholders within the hospitality provision: there are different stakeholders which are attached within the hospitality provision. The stakeholders have the main purpose to serve the customers in order to pace positive image among the customer base of the industry and through this they are opting to achieve success in the competitive market. In order to survive within the strict competitive market of hospitality provision the organisations like Savoy Hotel of London has to make positive popularity and positive awareness among the customers. With the extend service quality and better standards within the services offered by Savoy Hotel the pleasure can be encouraged within the mind of the visitors and guest. (Andrews, 2010.)
- Interrelation between travel and tourism and hospitality: as the travel and tourism has been divided within the subsectors which are inter-connected with the hospitality provisions the travel and tourism has been inter connected with the hospitality sector. The travel and tourism offers the products and services which are inter connected with the services and products of the hospitality provision. The travellers are interested in the travel packages which are offered with greater standards of hospitality services or reasonable discounts in the accommodation and food and beverages. By analysing the development of the hospitality services the industry of travel and tourism has been offering their services and products to the customers. (Tse, 2010) The hospitality services like tourists’ attractions, recreational services, leisure services, transport services are also impact over the success of the travel and tourism. Depending on these services travellers chooses any destination. While purchasing any travel and tourism package the main requirements of the travellers are the relaxation features within the trips which are dependent over the availability of the transport services, better quality of food and beverages, efficient accommodation standards along with wide range of attractions within the destination, welcoming behaviours of the hotel staffs, environment where the services are offered etc. These features of hospitality provision ensure success of the travel and tourism products. (Tse, 2010)
- The importance of Savoy Hotel in travel and tourism industry: As Savoy Hotel of London has been offering hospitality services to the travellers and visitors their quality and the services are the major players within the travel and tourism packages which are associated with them. With better quality of services Savoy Hotel can attract visitors to their hotels by jointly working with the travel and tourism agencies. The travel and tourism operators can offer better hospitality services with the higher standards of food and logging of Savoy Hotel. With better discount deals on purchasing the services of this hotel along with travel and tourism packages Savoy Hotel can contribute in the travel and tourism industry to encourage the travellers in purchasing these products. The development and the expansion of the Savoy hotel of London and their offerings will advance the success and growth of the travel and tourism sector and organisations. (Medlik, 2012)
2.1 Analyse the implications of integration to the hospitality industry. You should include a range of examples from the hospitality industry.
- Integration of hospitality services: The integration can be referred as the process through which the organisations or business can enlarge their presence and enhance their profits through the particular product development. The processes of integration have been repeated by the organisation to have profits. The business should acknowledge the processes and the operations which are inter-connected with the integration. With the integration strategy the organisation in the hospitality business can extend their product line which is previously related with the business or unrelated. (Busby, and Gibson, 2010) For offering better services and keeping the current base of the customers integration strategy has been adapted by the hospitality organisation. By improving the current quality and reducing the cost of the services Savoy Hotel can adapt integration strategy and place themselves in the position of competitive edge.
?Integration is of two types:
- Horizontal integration: it is the appearance of enormous different departments or organisations within one main management.
- Vertical integration: it refers to one single supply shin which has more than one management systems which are developing different and several products which are offered in combined manner. (Busby, and Gibson, 2010)
- Implications of integration in hospitality: The organisations in the hospitality sector have been using the horizontal integration. They are offering one type of product. Within this integration strategy the organisation should use one combine their services with other similar industries for extending their business growth. (Teng, 2011)
2.2 Discuss how integration has affected a hospitality business. You need to use a specific business within the hospitality industry
Hospitality sector has been providing the products that are intangible in nature. Through the integration strategy the hospitality sector has been maintaining their relationships among the various organisations within hospitality sector. Within the hospitality sector the level of the integration has been rising as the people are desiring the destination and the destinations are becoming popular among the travellers. The organisations in the hospitality industry are taking over the business chainlike hotels, transport organisations, restaurants etc. This has been referred as the vertical integration. (George, Henthorne, and Williams, 2010) Through this integration the organisations are opting to have better control over the whole supply chain.
Integration in different operations is efficient for the success of the tour and travel industry as well as hospitality provision. In vertical integration the organisations are doing business under the single management. In the horizontal integration the business operations has been provided under different providers. Integration strategy is helping the travel and tourism and hospitality to maintain their interrelations. Such integration strategy is associated with the TUI AG organisation which is operating business through merging with other tour business and acquiring tour operators and hotels. (Hall, Timothy, and Duval, 2012)
Considering the horizontal integration the airlines has been the owner of the biggest hotel chains in different destination. This approach will be beneficial as the organisation can offer different facilities and attract the customers to their organisation. This strategy will also be helpful in promoting the brand in other sector of hospitality. (Hall, Timothy, and Duval, 2012)
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market
For developing the rationale over the selected project the target market of the organisation must be analysed. By analysing the target market and the necessary strategies to place the services within this market the rationale can be made efficiently. In this regard the destination of the hotel must be identified as the location can impact over the cost and the resources along with the type of holiday destination. (Yiu, and Law, 2012) The target market of the hotel must be both male and female of all ages. As hotel has been established within destination which has been associated as the most popular leisure destination the target market can consists of higher income level to middle. In most cases the travellers are preferring to travel within a group. These groups with many females, males and children can be targeted. (Yiu, and Law, 2012)
On considering new location within UK the hotel can approach the target market through the analysis over the demographic factors along with socio-cultural factors within the region. Proper location will be efficient for attracting both inbound and outbound customers. The hotel can offer several discounts like free bed & breakfast with the accommodation. They can also develop various ranges of products within the product line. Different offers in the transport like airlines and other facilities will be efficient to attract outbound tourists. The local tourists can be approached with business facilities like conference, banquette etc. (Abomeh, 2012)
3.2 Develop a plan for a hospitality business which includes the operational requirements of the business’ organisational structure in relation to human resource allocation.
In order to develop the plan for the hospitality business the operational requirements of the business and the organisational structure along with the human resource allocation is needed to be considered. In the new business project different stages are included such as development design and operations. (Getz, and Page, 2016)
Stage 1: development
- Concept of business: within the concept of the business the general idea behind the business along with the vision and mission statement with objectives and goals are defined. The general idea behind the new project is the expansion of the business. The objectives of the new project are to engage the skills and competencies for achieving the project goal and the goals behind these objectives are to place itself in an advantageous position within the competitive market. (Getz, and Page, 2016) The vision of the new project is to offer better and qualified services to the customers.
- Market research: market research has been an important aspect within the new project and development of the project. Through market research the necessary factors can be indentified which are important in the project development. The research includes the potential factors within the location of the hotel and the attractions which are included within the location. Within the market research the current GDP of the location, income level, etc should be considered. Potential growth of tourism within the location has been considered. Current trends within the tourism which are associated with the chosen locations are needed to be observed for developing the services of the hotel. (Wearne, and Morrison, 2013)
- Target market: the target market can be analysed through the segmentation criteria such as psychological segmentation, behavioural segmentation, geographic segmentation and demographic segmentation. The tourists and their requirements within each segment should be analysed. Considering the demographic segmentation the income, family size, purpose of purchasing, life style etc can be analysed. The target market of eth hotel should be the customers with the age group of 25-65 years. The travellers who are willing to spend money over leisure tourism are targeted by this hotel.
- Location: in order to place Savoy Hotel Edinburg can be chosen. The destination has different attractions such as Arthur’s seat, Holyrood Palace, Royal Botanic Garden, Mary King’s Close, Cathedral etc. This has been popular among the visitors looking for leisure tourism. (Busby, and Gibson, 2010)
- Scale: Edinburgh has been a well developed destination in tourism. The market within the location is efficient as the cities of Edinburg have been considered as the alternative of countryside. The tour operators within the location have been operating through niche market strategy.
- Funding: the funding can be done through approaching different shareholders. The hotel can also make investment from the previous capital or the business profit. The banks and the creditors can be approached for funds.
- Products and services: The products and the services of Savoy Hotel are the high quality and standards accommodation and food beverages. Apart from the accommodation and food the hotel is also providing services like transport, event management etc. The hotel is considering better standardisation within the services for delivering better customer experience. (Morrison, 2013)
- Licensing: in order to run the business in efficient manner the hotel must consider licensing of the business activities. Licensing over quality of the services being provided, membership, categorisation within hospitality services, grading etc are considered.
Stage 2: design
- Ambiance: the term ambience is indicating the inner environment of the hotel. The travellers and visitors are attracted with the inner environment of hotels. The ambiance can be developed with creative measures and innovation strategies. Through innovative approaches the customers can be attracted towards the hotel. (Busby, and Gibson, 2010) Within the ambience health and safety measures and their implications are necessary for the safety of the visitors.
- Culture: the culture within the organisation is the reflective through the services. Diversity within the organisational culture is required for attracting different tourists from different regions. The satisfaction of the tourists can be increased through implementations of their own culture while welcoming within the hotel.
- Brand: brand name is significant for attracting new customers and keeping the current customers. The hotel must develop branding strategy by adopting different promotional aspects within the marketing mix. With the communicational tools the brand name of the hotel can be placed within the local market. This will attract foreign travellers and visitors towards the hotel. (Busby, and Gibson, 2010)
- Interior: the interior design of the hotel will be developed with the high service quality. The personnel who are working within the front line services are also included within the services. The welcoming behaviour of the front line staffs, proper seating arrangements in the restaurant area, decorated accommodation and other facilities along with it are also included in the interior.
- Exterior: the exterior areas of the hotel can be associated with the surrounding areas of the hotel. The surrounding features of the hotel along with its car parking or garden area, pool, play ground for the children are also associated with the exterior of the hotel. (Lashley, and Morrison, 2013)
- Functional areas: functional areas are included within the daily operations of the hotel. Housekeeping services, storage room, functional facilities of accommodations, management functions, housing functions, accommodation functions, security of the hotel and safety of customers, transport services, rooms services etc are associated with the functional areas of the hotel. The management should monitor all the services by communicating with the head of all departments. (Morrison, 2013)
- Customer flows: customer flows can be observed by targeting the inbound as well as outbound customers. Through targeting the foreign tourists the hotel can enhance their profit margin. Customer flows can be enhanced by attracting customers with beneficial deals.
- Link to target market: the target market can be linked with the business development project. By analysing the preferences of the target market visitors the services can be altered. (Getz, and Page, 2016)
- Customers with individual needs: customers with different individual needs are also considered. Depending on the purpose of travel the visitors are analysed and different services would be provided. The visitors with the purpose of education such as the educational groups, students, researchers can be approached with different products and services rather than the visitors who have the purpose of leisure tourism or adventure tourism. (Lashley, and Morrison, 2013)
- Sustainability: sustainability of the hotel can be measured by identifying the ability of the business. (Getz, and Page, 2016) The abilities of the hotel are associated with the changes within the current trends and the changes perspectives of the tourists while purchasing the hospitality services.
Stage 3: operations
Staffing by functional areas: there are different functional areas within the hotel such as:
- Management team and managers
- Supervisors or line managers
- Housekeeping staffs
- Front line staffs
- Staffs in food and beverage area such as cook
- Security staffs
- Transport system
- Development area management (Wearne, and Morrison, 2013)
The staffs or the employees are the main representativeness of the image of hotel. The success of the services is dependent over the skills of the staffs which they use to satisfy the customers. For staffing different functional areas the staffs in Savoy Hotel will be done by analysing their skills through employment procedures. (Wearne, and Morrison, 2013)
- Specialist qualifications: there are different qualifications which are needed within the personnel of the hotel. By employing specialists’ qualifications in the human resources the organisation can have benefits by encouraging higher performances. Different qualifications are required within the functional areas such as for the managerial position the hotel should appoint the person who had managerial experiences. For the security services the person with proper training and security experiences should be appointed.
- Staffing issues related to seasonality: considering the seasonality the staffing issues are the biggest hurdles for hotels. The management of Savoy hotel should consider conflict management plan. In order to manage the service in the seasons staffing should be hand with careful employment planning. (Wearne, and Morrison, 2013)
- Cultural diversity and ways to deal with conflicts: the staffs within the hotel are from diverse cultural background. These can be beneficial to welcoming guests of different cultural background. This can impact negatively through different conflicts. The conflicts can be handled through motivation, training and proper communication among them.
- Recruitment policies and procedures: different legislations and regulations are associated with the recruitment policies and procedures such as anti-discrimination policy, equality legislation etc. (Getz, and Page, 2016)
- Compliance with legislation: the legislations which are developed by the government must be followed while developing the organisational policies and norms such as health safety work environment, ethics in business operations, legal measures, food and hygiene policies etc.
- Promotional activities: promotional activities are important for developing awareness about the image of the hotel and the brand among the visitors. Savoy Hotel can promote their products through the advertisements in different media, maintaining their official websites and strategic approaches in online presence. (Getz, and Page, 2016) Word of mouth promotional strategy can be adapted by satisfying the customers with efficient manner.
- Pricing:by analysing the current market prices the price strategy can be developed. Penetration price strategy will be effective for Savoy Hotel to attract different customers with low prices. It will also initiate the word of mouth promotions for the hotel. (Getz, and Page, 2016)
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The hospitality provision and the travel and tourism are inter-linked with each other. The products and the services which are offered by the hospitality sectors are related to the success of the travel and tourism in their business and service offering to the products. In current situation the customers of the travel and tourism sector prefers the services which are the most important for the survival of travel and tourism. By including the hospitality services within the packages of the travel and tourism the travellers are convinced to purchase the packages. Integration strategy is also a significant part within the business of hospitality. Through merger and acquisition as well as collaboration the organisations are doing their business in hospitality sector.