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Unit 12 Hospitality industry Assignment in Travel and tourism
Diploma in Travel and Tourism
Unit Number and Title
Unit 12 Hospitality industry Assignment in Travel and tourism
Hospitality industry Assignment in Travel and tourism is a very important for framing the GDP of the country. Hospitality is a very important sector of service industry. Service is intangible forms of products offered to the customers. In the first task we discussed the meaning of tourism and the other aspects related to it. Hospitality industry is essentially linked with the travel and the tourism sector. All services provided in a hotel are of hospitality. In this assignment we have considered Savoy Hotel London. International hospitality combines the diversity. Hotel needs hospitality in all sectors such as room service, serving the meals, conferences and parties. Vertical and horizontal integration have been discussed. Integration means association of the both the companies for the benefit of both.
here are many benefits of integration as discussed in the assignment later. Integration lets the company have a competitive advantage over the others. Economies of scale help in reducing the production and the operation cost of the business. A business plan has to be made.
1.1 Discuss the and wider travel and tourism businesses.
The travel of an individual for leisure, entertainment or business strategy for a limited time span can be termed as tourism. There are different forms and types of tourism. The purpose of the visit also categorizes the tourist. Small business sector tourism is entertained by the hospitality sector solely. Hospitality and tourism are related with each other. If a family or a group of friends are going on a trip then they travel with airlines or rail which comes under hospitality service. If the tourist stays in Savoy Hotel London then their service in a hotel come hospitality sector. If the family goes on the sightseeing and other activities then they are also entertained by hospitality sector. Tourism industry comprises of the small sector of the hospitality industry. The supply of tourist to the tourism industry is provided by the hospitality industry. All this helps us in understanding the basics of tourism and hospitality. Hospitality can be defined as an act of helping the other or serving other with gratitude. To explain hospitality we have taken an example of restaurant. In a restaurant the waiters serve the customers with customers and gratitude. The employees in the hospitality industry help the customer in finding their room, serving meals and helping them with other errands. Hotels and restaurants cannot work without the hospitality industry. Hospitality is their essential requirement. Hospitality industry helps the hotels and restaurants to grow and flourish. Customer prefers the hotels that have excellent hospitality as it convinces them. Hospitality also helps the hotels in providing many services such as accommodation, leisure, refreshment and food and beverages. People mainly travel to escape their real life and get peace of mind. He wants to change their state and enjoy the various services with exceptional hospitality. People wish to get the services in time in order to relax and enjoy services provided in peace. (Edu Online, 2016)
Savoy Hotel London proceeds with combining both the hospitality and hotel industry. The companies involved in the tourism industry take care of all the things ranging from travel to stay. Savoy Hotel London provides many packages to the tourists who include stay, meals and sightseeing. Savoy Hotel London ensures that the stay of the tourist in the hotel is luxurious and comfortable stay. The hotel provides safe environment, healthy and hygienic food. The hotel has a luxurious bar and takes care of the people who get drunk. The hotel has a different smoking area so that the other customers are not disturbed. Hot and fresh food is served to the customers at all the time in the hotel. Timely room delivery is provided to the customers who are staying in the hotel room. The hotel tries to satisfy the customer in all the respect so that they visit the hotel in their next travel. The hotel tries its best to keep the customers happy. Repetitive visit of the customers help in increasing the revenue for the company. The hotel ensures the safety of the customers at all cost. The company makes sure that all the customers are handled properly and given proper hospitality. All the employees of the Savoy Hotel London are trained in hospitality ranging from drivers, receptionist and waiters. All the employees are given due respect so that they train all the patients with hospitality. The company believes that customers are the major asset of the company so the hotel aims to fulfill all their basic needs. The services are offered to the customers depending upon the package taken by them. (Blunden, 2016)
Savoly hotel London:
Savoy Hotel is located in London. It has a range of 7 hotels with approximately 250 rooms. It is the hotel of luxury and fine dines. Savoy is the range of the luxurious hotel that aims to provide luxurious stay to its customers. Savoy also has some mid-range hotels to cater the category of customer who do not aim for the luxurious stay. Over the years, Savoy is the popular and the well-known hotel with an image of excellent hospitality. The list of services offered by the Savoy Hotel London is as follows:
- All their six hotels in London provide excellent service of food and accommodation.
- There are arrangements for meetings and conferences for the customers who business, Hotel has special plans for the corporate which are flexible according to their needs and requirements.
- Hotel has a very beautiful and spacious venue for the weddings.
- The spa service provided by the hotel is well known all around London.
- To keep the customers satisfied and make their stay delightful hotel has services such as baby sitting, internet and valet parking.
- The hotel has collaboration with many tours and travel companies. The hotel provides a complete package.
- Hotel also has collaboration with the cab services for the ease of the customers.
- Hotel has a romantic and luxurious honeymoon suite for the customers.
2.1 Analyze the implications of integration to the hospitality industry. You should include a range of examples from the hospitality industry.
Integration is not a new concept in the business industry but it has been used for more than a 10 decades. This concept is used by the company when they wish to lower the production and operation cost by integrating economies of scale. If the organization no longer needs outsourcing then this strategy is best for them. Lowering the production cost is one of the major concerns of the employees and they train the employees for it.
- Vertical integration: Vertical integration is applied in the company when all the supplies are purchased by the company. This reduces the production and operation cost of the company. As a result the overall profit of the company increases. Savoy Hotel London has a complete and total control over its distribution channel. Economies of scale are given a special attention by the company and gives training in this area.
- Horizontal integration: When two completely different sectors of the company together to form the bigger organization then it is said horizontal integration. Horizontal scale is very beneficial as it expands the number of customers and increases the profit of the company. (Dun and Bradstreet, 2016)
The various implication of integration in Savoy Hotel London are as follows:
- Savoy Hotel London makes sure that all the services provided by the hotel is same on all the outlet and available at the same prices. The variation in prices may hamper the reputation of the hotel in the eyes of the customers. If Savoy hotel set up its branch in any other city then it is really essential that all the services offered are same and there is no fluctuation in the price with the location. The reputation of the image of the hotel must be maintained at all cost. The experience and services in all the hotels must be same.
- When the two organization merge then there is a lot of chance of having a bad effect on the reputation of both the organization. If the two big organizations merge then it may create a lot of problem for the smaller organizations. In merging of the organization there is a loss of job of many of the employees. The smaller industry may wipe off completely from the industry.
- Conflict of interest may arise a lot from the integration of the two organizations. The organizations coming together have different missions and visions which may hamper the goals of both the organization. This might end up in conflict of interest in both the organization. The decisions making process of both the companies may not match and this may result in conflict of interest.
- International trade and globalization affect the market in many ways. Savoy Hotel has realized that tourism is very important GDP generator of UK. The hotel tries to cater the needs of the international customers so that the foreign currency reaches the country. The revenue generated by the international tourist is lot higher than the local tourist. (Osborn, 2013)
2.2 Discuss how integration has affected a hospitality business. You need to use a specific business within the hospitality industry.
Integration has impacted hospitality in many ways. Some of the impacts of integration have been given below:
- Competitive advantage is the most important of all the advantages provided by integration. It lets the company to have an upper hand. If the competencies of the two companies are combined then it lets them attract customers in a better way. Savoy hotel has integrated with tour and tourist companies I order to provide the tourist a complete package.
- Monopoly in the created in the market by providing the best of services which cannot be provided by the other competitors. If the big players of the market combine then the monopoly in the market can be created. The number of choices gets reduced before the customers.
- The production cost of the goods and services can be reduced with the integration of two the companies as their resources get combined. When the production cost of the company reduces then the profit can be increased.
- Integration can be very helpful in maximizing the profit of the company.
- Integration also increases the diversity of the business. When the integration of both the countries the customer coverage can be increased. Increased customer will also increase the profit of both the companies. (Hotel Online, 2016
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market.
The rationale of the hospitality business has been developed. An example has been discussed below.
Idea: The plan starts with starting the business of the hotel industry. The hotel will comprise of the restaurant. The setup will have all the demanded and essential services that are required in a hotel or restaurant. The hotel must be located in a tourist hotspot so as to attract a large number of customers. UK is the tourist hotspot of the country. If the hotel opens in UK then it would be able to attract a large number of customers. A tourist footfall of UK is very high so the number of customers in the hotels in UK will be very high as compared to the other countries. Hyatt hotel also aims to provide its customers with the middle range plans for the middle group. They want to capture all the segments of the society. They are offering services ranging from the luxurious to the middle range. Large customer base for the company would increase the profit of the company.
Research of the market: This is a mandatory step before starting of a business so as to the current standard of the market. For the success of any company it is very essential that the market should be receptive. On conducting the marketing planning for the Hyatt Hotels it was found that thrive toe market of UK is very receptive toward the hotel industry. For research a questionnaire must be developed which must have all relevant questions related to the hotel industry. It also helps in determining the expectation of the customer from a hotel or a restaurant in the city. It may also be beneficial in adding the new features which the customer wants from the company. The demand of the services offered by the company can also be estimated and their approximate price can be decided. This can also help in determining the factors that can keep the customers happy and satisfied. (Selen, 2016)
Target customers: The target customers are the people whom we want to attract to our new business. For the Hyatt hotel the major customers are the middle class and upper middle class people cannot afford a luxurious stay but want budget stay. The hotel also provides many luxurious services for the upper middle class section of the society. Value for money services are provided by the hotel to the middle class people.
Location of the target: Geographic location of the hotel is just perfect as it is located in the most dense tourist hotspot of the world. Footfall of UK is very high in the country and it will also increase the revenue earned by the company. The hotel comprises of around 150 rooms with both AC and non-AC rooms. There are many flexible packages available for the rooms that people can opt for. (George, 2016)
3.2 Develop a plan for a hospitality business which includes the operational requirements of the business’ organizational structure in relation to human resource allocation. You should include an organizational chart.
Stage 1 - Development:
- Concept- The basic idea is to develop a business that provides budget stay to the middle class people who cannot afford luxurious stay. The maximum number of population in the country is middle class that is why Hyatt Hotel is targeting it. The aim is to gain the competitive advantage over the others players in the market.
- Market research- This is a mandatory step before starting of a business so as to the current standard of the market. On conducting the market research for the Hyatt Hotels it was found that thrive toe market of UK is very receptive toward the hotel industry. For research a questionnaire must be developed which must have all relevant questions related to the hotel industry. It also helps in determining the expectation of the customer from a hotel or a restaurant in the city. (I-student, 2016)
- Target market- The target customer are the people whom we want to attract to our new business. For the Hyatt hotel the major customers are the middle class and upper middle class people cannot afford a luxurious stay but want budget stay.
- Location – Footfall of UK is very high in the country and it will also increase the revenue earned by the company. The hotel comprises of around 150 rooms with both AC and non-AC rooms.
- Scale- The size of the market is very vast as there are a lot ofmddle class people in the country. A large chunk of international tourist wants a budget stay of their hotels. The customer base of the market is very vast.
- Funding- The funding has to be done from multiple sources. Some of the funding has to be put in by the owner itself and the other could be arranged by taking loans and other form of investments.
- Products and services – There are range of services and products offered by the hotel such as spa, sports facilities, parlor, bar etc. that can be provided by the hotel.
- Licensing- Licensing is necessary to carry out the things in legal manner. The hotel is serving liqueur so it is mandatory to have a liqueur license.
Stage 2 - Design:
- Ambiance- The ambiance provided by the hotel is very cozy and warm. The liqueur is served in a separate area so that there is no nuisance created in the hotel. There is also a separate smoking area in the hotel. There are decors all around in order to make the ambiance of the hotel attractive.
- Culture- The culture of the hotel is very friendly. The employees are given a special training in hospitality in order to handle the customers in a better manner.
- Brand- Hyatt Hotel is a very big brand and the customers are attracted because of the brand name.
- Interior- The interiors of the hotel are golden and are given a royal touch. There are dim lights inside the restaurant.
- Exterior- The exterior of the hotel has many gardens which are surrounded by the flowers. There is a running track outside the hotel for the customers.
- Functional areas- Almost the entire hotel I functional due to shortage of space.
- Customer flows- The customer footfall is very high in the hotel and the hotel receives about 500-600 visitors on a daily basis.
- Link to target market- There are many links of the target market as the hotel has collaborations with the cab and airlines services. These partners lead the customers to the hotel.
- Customers with individual needs- Hotel try to fulfill all the customer needs by providing the separate area for parties and corporate.
- Sustainability- The sustainability of the hotel is very long as it caters to the needs of middle class as well as upper class people. (Locke, 2016)
Stage 3 - Operation:
- Staffing by functional areas-Staffing is dependent on the functioning of a specific area. Kitchen and housekeeping has the maximum as it is required on all hours of the day.
- Specialist qualifications- Each post in a hotel requires a specific and special qualification to be hired. (Kong, 2014)
- Staffing issues related to seasonality- The season of wedding requires more staff as there a lot of functions in the hotel. Back up staff have to be kept in the busy season.
- Cultural diversity and ways to deal with conflict- The hotel caters to the need of the international tourist so there is a need to handle the cultural diversity. There are requirements for having a wide range of cultural things at the hotel.
- Recruitment policies and procedures- The recruitments policies of the hotel is very strict so there are only efficient employees in the hotel.
- Compliance with legislation- The hotel must follow all the rules and regulations of the government policies. The hotel must have license for selling the items that are disputed.
- Promotional activities- There are a lot of promotional activities carried by the hotel so as to attract a lot of customers. There are a lot of promotions on the social media as a lot of people are using the internet.
- Pricing- Hyatt Hotel follows skimming pricing strategy. (Maland, 2011)
In this present assignment we have to understand the travel and tourism in accommodation. Savoy Hotel London is considered in the assignments. In planning a trip the traveler have to keep in account travel, stay and leisure. We have discussed the interrelationship in travel and hospitality sector. Tourism industry is related with many sectors. There are many impacts of integration in the hospitality sector. Hotel business is the major example of linking accommodation with travel and sightseeing. The rationale of the business plan is developed for the Hyatt hotel. Three stages for the development of the business plan have to be developed. The hotel tries to provide safe and healthy environment to the customers. With the integration of the hospitality industry there will be the benefit of both the partners involved.
Integration is required to gain the competitive advantage over the others in the market. The company should recognize its target market and accordingly make the strategy to attract the customers. Hospitality and tourism are dependent on each other.
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Dun and Bradstreet, (2016), travel and tourism industry, [Article], Available:https://www.dnb.co.in/Travel_Tourism/Indian_Travel_and_Tourism_Industry.asp[Accessed 10 November 2016]
Edu Online, (2016), link between tourism and hospitality, [Article], Available:http://online.cit.edu.au/kitchen_ops/tools/cafestri/tour/link.html [Accessed 09 November 20i6]
George, N., (2016), business integration strategy, [Article], Available:http://smallbusiness.chron.com/business-integration-strategies-2633.html [Accessed 06 November 2016]
Hotels Online, (2016), top ten issues in hospitality industry, [Article], Available:http://www.hotel-online.com/News/PR2006_4th/Nov06_ISHC.html [Accessed 05 November 2016]
I-student, (2016), Developing and operating hospitality, [Online], Available: http://www.i-studentglobal.com/study-programmes/hospitality-leisure-tourism/top-6-hospitality-skills [Accessed 11 November 2016]
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