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Unit 12 Hospitality Industry in Travel Tourism Assignment
Diploma in Travel and Tourism
Unit Number and Title
Unit 12 Hospitality industry Assignment in Travel and tourism
Hospitality industry has gained much more importance in today’s scenario for handling the public who travel from one place to another either for some entertainment or for business purpose. It is the industry of hotels, restaurants comforts and leisure. God communication skills are required in this industry, For good communication skills proper skills and training is provided by the hotel management and train their staff properly.
Hospitality industry focuses on customer satisfaction and includes various activities such as boarding, transportation etc. This assignment deals with aspects, scope and areas of hospitality Industry with the chosen industry. The chosen industry in this assignment is Premiere Inn, a premium hotel chain Industry.
1.1 & 1.2 Explain the role of hospitality industry within the travel and tourism sector. Discuss the interrelationships between hospitality and wider travel and tourism businesses.
Travel and tourism can be defines as a part of recreational activity which a person does for his recreation and entertainment purposes for, leisure, fun time and business trips. In today’s scenario travel and tourism sector has gained a lot of importance to provide satisfaction to the customers. The travelers after making a market research select any one or more travel destination for spending their holidays on the basis of their interest.
Due to the increase in globalization in current scenario the hospitality industry has emerged itself as one of the most developing industry as and when compared to other industries. According to sources, travel and tourism industry constitutes more than 33% of GDP to the economy. According to surveys and analysis it is found that approximately4.5% growth has marked from the early 1990’s to the late 2000’s
The hospitality industry has constituted with different elements and one part being travel industry. Travel industry in itself constitutes the progress of hotels, motels, farmhouses, resorts, guesthouses, amusement and theme parks, and villas. The rich people of the economy which are businessman, entrepreneurs and professionals constitutes very high in the growth of hotel industry. Being the most favorable part of the economy, the income derived from travel and tourism composes it as the highest paid industry in the economy.
Hospitality Industry has the following features-
- Different from monotonous kind of industry and creates interest towards it.
- Provides and creates career and employment opportunities for the personnel.
- Customer oriented industry as main aim is to satisfy its customers..
- Hospitality industries create fun time and provide entertainment thus helpful for a person to be stress free for some time. (Cooper & Shepherd, 2012).
Scale and scope of hospitality industry-
- EmploymentTourism and provides Employment Opportunities- Travel industry is all about satisfying the customers thus high number of public relation experts is required to build up health relations to provide comfort to the customers. For this high number of vacancies are created as this industry attracts more labor workforce to join. Here communication skills play a very important job and hospitality industry creates the most important source of employments to job seekers. According to the sources, employment in the travel industry worldwide has increased approximately 1.5% from 2008 to 2009. World Travel & Tourism Council has stated that travel industry supplies more than 10% of GDP and employs more than 260 million number of people in employment
- Increasing tourists- In today’s world number of tourists has grown tremendously from year to year. Increase in traveling across the globe made market internationalize. The tremendous growth of tourism in the economy has created growth of political aspects and created social equality across the globe. Due to a heavy fall in travelling expenses a high rise is seen in the travel and tourism industry. According to sources, travelers at international level have increased approximately 4.5% between early 1990’s and late 2000’s.
- International and communication technologies- In order to find out information regarding the tourism and traveling places researches are made with the help of travel agencies, tour operators and other agents. They also create websites and online website portals to know about various packages and their prices and other information. Thus ITC has helped the customers to know about travel packages at one click.
- Tourism for Awareness- This kind of tourism can be defined as a tourism which is created to promote health and wellness of the public. The hidden motive in these kind of travel is to maintain health safety and fitness of the travelers and to prevent all kind of diseases and health problems.
- Medical tourism- Medical tourism can be propounded as travelling from one country to the other country for satisfaction cum for taking medical treatments in the other country. This travelling includes less cost as this is in association with various health care clinics, hospitals, restrooms, etc.
- Foreign direct investments and growth in economy- Job seekers to have job opportunities move from one place to another in search of job which gave rise to hospitality. If proper directions are given it may help in encouraging business and entrepreneurship, increasing and advancing labor market and creating diversity in countries. Migrators develop skills and expertise required for being beneficial in the different country’s development.
- Product Mix: Within Hospitality industry, mixture of products and services are used by consumers. In order to state that it can be elaborated by an example as- when a consumer goes in restaurant for having food than apart from paying up the bill for the food a consumers pays service tax and vat on bill for services consumed and pays tip to the wait for consuming services by him. Comfort and satisfaction a consumer gains can be analyzed by the services rendered to him and his experienced towards it. (Reymarie, 2013)
Interrelationship between hospitality and travel and tourism sector
Customers are the most vital part of hospitality and tourism sector as both surround the customers. Hospitality sector makes a very important part of tourism industry. Travel companies depend upon the customers for their orders and grow upon their satisfaction by that trip. Tourist organizations forms by combining, arrival, departure, lodging and boarding’s, hotels, restaurants, transport. Premiere Inn focused on all the aspects very carefully and ensures that proper and accurate services as provided to the customers for their ultimate satisfaction. They provide excellent services to the customers to worth their money spent. Premiere Inn has set unbeatable performance in the whole market.
- Holiday and travel packages- Travel agency companies provides huge amount of packages for the customers in which different components are added keeping in mind the class and mindset of the customers. Customers usually go for those packages where by spending low amount they can explore in more amount. Also agencies provides discounts and special offers to the customers who book their orders on regular basis.
- Communication- Communication refers to a process in which two persons interact between themselves. Communication is the core for hospitality industry as whole of the market depends upon good communication. By way of communication if a customer is satisfied he will book the order otherwise he will reject the order. Communication is an art which requires customers’ contribution also as customers should know the way to ask for the best services required by him. Premiere Inn believes in good communication skills and proper skills and development for which they conducts various seminars and orientation programs. (Sheng, 2011)
2.1 Analyze the implications of integration to the hospitality industry. You should include a range of examples from hospitality industry.
Hospitality industry has turned out to grow as one of the fastest growing industry in terms of development. The various reasons has made Hospitality industry to conquer in the global market which are
- Providing world class services to the customers.
- Medicals services.
- Customer satisfaction
Hospitality industry made public know about the travel and tourism sector so that a huge demand in the market has increased for the same and public enquire about it by the organizations providing the same services and in return hospitality industry too provided services to the customers on time by which integration concept came in the hospitality industry like PREMIER INN. (Premier Inn, 2016)
Due to integration between hospitality and travel and tourism industry smooth working of an organization and business became advantageous over the competitors. Acceptance of integration system holds huge importance in business and further compensates the reputation of the organization. Premier Inn followed the same in their brand also. It rather than outsourcing its booking services to some other agency has built its own website on which all the information regarding booking and reservations are provided for reserving the services. It is horizontal integration system in which company is working solely to maximize its profits and to further extend their customer area
Good integration system is required to provide better customer services and best and quality services to the customers. Hospitality industry merges with travel and tourism industry to make customer more satisfied as they will enquire about the best and cheap packages available for them by the travel and tourism agencies. This integration system is known as vertical system of integration.Hotel chain like Premier Inn follows the same strategy at which the hotel chain outsourced its booking facility to some outside agency to make customer base increased as customers may inquire about more packages suitable to them according to their budget and may customize them accordingly. Due to integration it leads to expansion of their area and extend their services. Further it can be concluded that the Premier Inn provides various schemes and packages from their own end as well as outsourcing their services to the outside travel agency to increase customer base and to maximize profits and to provide competition to the competitors. (Wattanakamolchai, Singal, and Murrmann, 2016)
Due to Integration process some of the advantages are as below-
- Due to the ownership of the hotel chain only the transportation cost and other travelling expenses can be reduces to a huge extent.
- Integration identifies and solves all the hurdles at the beginning stage of investing.
- Due to better IT system various crucial information is available to the department at just one click.
- The managing cost of a traveller is saved as by integration all of the services he requires is available at one place.
- In the vertical form of integration number of tasks can be managed easily as one department of an industry is dealing with other department of an industry so all the extra expenses regarding handling, and transferring charges could be saved.
Following implications of integration of hospitality industry are as follows-
- For any industry to grow and succeed properly it is important that all the services provided by the industry should remain same in all the aspects and in all those areas where they open their branches. For example, Premier Inn hotel opened their hotel in different country and all the services provided by its main hotel where same as in its branch hotel which not leads hotel to increase its brand reputation but also gives satisfaction to customers.
- Due to the merger of large organizations its leads to elimination of small organization from the market leaving all the employees of the smaller organization unemployed leaving negative effect in the economy.
- Conflicts may arise between the merger organizations as both the organizations have different mission and vision and different strategies to follow their vision and complete their mission.
- Due to increase in globalization, travel and tourism industry has increased to a large extent as most of the travellers traveling in one country to another are foreigners which increase the international trade and brings more foreign revenue in the country. (Kumari, 2013),
2.2 Discuss how integration has affected a hospitality business. You need to use a business within the hospitality industry.
Integration of any industry can be affected by various issues. Integration helps us to know about the current scenario of the market. Due to continuous and dynamic environment the integration must be conducted in a systematic order so as to organize our organization and is the most important aspect required by the mangers to run the business It also helps in advancing the existing structure of the organization. . Integration caters to most of the needs of the business.
Impacts of Integration-
- Scale economy- Due to integration operating cost can be reduced to a significant level. Further it can be added that if a travel agency takes over any hotel the initial investment would be high but the benefits which will arise would be very high. Premiere Inn gave some of its services to the travel agency because of that tourism agency emerged in its initial years and had a benefit arise out of that.
- Standardization- Standardization is a very huge and complicated process as standardization for the elements would be easy but involvement of human element made it difficult. Primer Inn has a very standardized process as at any branch the customer visits he will get the same environment and same procedures are followed there also. For application of standardization a company needs to more efficient, strict and hard working to maintain equal level for all its branches..
- Quality- Integration process does not guarantee quality increment. It is dependent on the elements involved. The employees sometimes do not follow the approach followed by new bosses as they think the new process is not feasible. Management remains in the contact with customer so they know exactly the demand of the customers. Primer Inn also faced such problems of assuring quality services to customers. (Osborn, 2013)
Integration has affected the functions of organization of business-
- The biggest advantage of integration is that when two competitors integrate with each it will have a lot of benefit to all as customers will be more satisfied.
- By integration it will create the situation of monopoly in the market which means reduce in the number of competitors which will lead to that the customers will be having less number of companies to choose from.
- Due to integration it may benefit our economy in such a way that the operating cost to manage the branches individually will be reduced and profit can be maximized.
- By integration, costs and expenses will be reduced and incomes and revenues will be increased.
- Customer base can be increased by expanding the business and providing the services in other countries also.
- Rewards and incentives distributable to employees can be increased as the extra expenses and costs are reduced.
- Plans and procedures will be made according to the requirement.
- Increase in efficiency and effectiveness by using the process of integration.
- The business will have more value as the data will be shared with shareholders.
Integration procedure may be more accurate by establishing the strategies and establishing authority and responsibility relationship in an organization. The resources must be optimally utilized for increasing the performance of an organization. For this process innovation in ideas must also be involved.
The integration process identifies and solves all the problems relate to the business management at the starting stage of investing the funds. The proper training and development of the employees could be managed properly. This process has various advantages. The biggest advantages being reduction in the cost and maintaining of dynamic structure in the organization that are always ready to change which can also be called as flexibility. Information Technology system may help any organization to provide with effective knowledge and information required by the managers. All the important information can be displayed on the website of the company so that the customers, shareholders, distributors, retailers may come to know about the company which for all is a beneficial situation. (Morrisson, 2008)
In traveling and hospitality industry a person travels because of three reasons being leisure, fun time or business reasons. A person would like to travel only when he gets all the three basic activities like eat, sleep, and fun altogether. A customer needs to be satisfied by his only then the sole purpose of the hospitality, travel & tourism industry will succeeded as the main purpose of both s to provide customer satisfaction.
IT sector if used properly may also generate revenues for both the industries as public uses the internet facility to know about the packages and other benefits. Thus IT industry also provides an edge to the industries for their successful business.
If both the industry join hands with each other it will turn to be a win- win situation for both the industries as at the end of the day both the industries are gaining profit and earnings from the customer.
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