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Unit 12 Hospitality Provision in TT Sector Assignment - Hilton
Diploma in Travel and Tourism
Unit Number and Title
Hospitality Provision in TT Sector
The hospitality provision is developed in concentration with Hospitality Provision in which information regarding integration between Hospitality Company and Travel and Tourism Company will be provided. Information regarding both the aspects positive as well as negative aspects will be shared in this report with the effect of which organisations will be able to develop effective services with the effect of which they will move on the verge of success and sustainability. Plan will also be provided with the effect of which Hospitality Company will be able to manage the work in a effective manner after integration and will be able to provide the services according to the demand in the market.
1.1 Discuss the interrelationships between hospitality and wider travel and tourism business.
The travel and tourism report
Hospitality sector is one of the most beneficial sectors for the economy of the country. There are varieties of services provided by hospitality sector to the travellers coming to UK (Fernandes, 2015). of the hospitality sector build positive perception in the mind of the customers coming for their travel and tourism purpose to UK. Government of UK should focus on the hospitality sector and try to make the services more effective and comfortable for the travellers coming to UK.
Role of Hospitality Industry
In travel and tourism business hospitality industry is one of the most profitable industries. Scope for the sustainability is provided by the hospitality business to travel and tourism sector of UK. Huge range of services is provided by the hospitality industry which influences people to visit UK. Hospitality industry also helps in improving the infrastructure of the country which is a huge contribution in the growth of travel and tourism sector of UK. It helps in removing unemployment from the country as there are many people who get jobs because of hospitality businesses in the market. Services provided by hospitality industry of UK influence people to visit the country and also influence them to recommend the services for other people. Varieties of services are provided by the hospitality sector of UK travel and tourism. These services are food and beverages outlets, accommodation services, pubs, entertainment services, etc. To enjoy these services people from different parts of the world visit UK (Law, et. al., 2015). These types of services helps in building chain among the people of different parts of the country with the effect o which they prefer to visit. UK. It is necessary that travel and tourism sector should work towards to improve the services so that more people could get connect to the hospitality services of UK travel and tourism sector
Interrelationship between Hospitality and Wider Travel and Tourism Business
Travel and tourism business and hospitality business both are interrelated with each other. There is a common link between hospitality as well as travel and tourism business, that link are the people who visit UK for business as well as travel purpose. Both the industries work on the path to provide better and effective services to the tourists who visit UK. Services provided by Travel and tourism industry as well as hospitality industry help the tourists to manage their travel in a proper manner and help them to enjoy their holidays. Here are the two big names in travel and tourism and hospitality market which are working on the path to provide effective and quality services to the people coming UK for their travel purposes. Hotel Hilton one of the biggest names in the hospitality sector which is known for its quality services and luxurious accommodation facilities (Fernandes, 2015). Another big name is Thomas Cook which is well known for its travel and tourism services.
Hotel Hilton and Resorts is a global brand providing full services of hotels and resorts to the visitors of UK. It was found in Conrad Hilton. Hotel Hilton and Resorts are located in almost 570 different places. Hotel Hilton believes in providing quality services to the people coming to UK so that people coming from different parts of the world could enjoy their travel in an effective manner. Hotel Hilton is best known for its quality services and due to which more people gets attracted towards the services of the hotel. Accommodation is one of the main services that are provided by Hotel Hilton to the traveller of UK. There are thirteen brands of Hotel Hilton across the market segments which include Hilton Hotels and Resorts, DoubleTree, Embassy Suites, Hilton Garden Inn, Hampton Inn, Homewood Suites, Home2 Suites, Hotel Grand Vacation and Waldorf Astoria Hotels and Resorts.
- Hotel Hilton and Resorts: Hotel Hilton and Resorts are the chain of hotels and resorts presented in different parts of the world providing the accommodation services to the travellers. These are the hotels which avails luxury services to the travellers of UK (Aragon-Correa, et. al., 2015).
- Embassy Suites: Again a chain of Hotel Hilton which provide luxury suites to the travellers coming to UK for their travel and tourism purpose and provide world class facilities to its customers (Yap, 2011).
- Hotel Grand Vacation: It is a subsidiary of Hotel Hilton which provides services to the people who visit UK for long period of time. Hotel Grand Vacation provides the accommodation services in an affordable price and believes. Hotel Grand Vacation believes that everyone should enjoy their vacations and provide the services which suites the pocket and budget of the people coming to UK for travel and tourism purpose.
Thomas Cook is one of the most known names in the travel and tourism business management. It is a company which provides travel services to the people aims to plan their holidays to other countries. Thomas Cook believes that it could attach more customers by refining its services and by providing more quality services to the end customers. Thomas Cook is listed in London Stock Exchange as it has an effective role in the growth of the economy of London. Company was formed on 19th June 2007. Its headquarters are in Peterborough, Cambridgeshire, England. Thomas Cook is attached with various hospitality companies. For the travelling company it becomes necessary to merge with the hospitality companies because coordination with the hospitality company helps the travelling company to avail the flights accordingly and to schedule the time of flights (Göral, 2014). Merger provides a scope of expansion to both hospitality industry as well as travel and tourism industry.
With the help of hospitality companies Thomas Cook could develop attractive tourist packages with the effect of which tourists will get attracted towards the services of Thomas Cook and will prefer to travel to the country in which they will get attractive and effective tour packages. Merger of Travel and tourism companies with the hospitality companies provides benefit at the peak time. At peak time hospitality companies could communicate the availability to the travel and tourism companies with the effect of which they could schedule their flights and could enjoy the benefits of the peak season (Fernandes, 2015). In the same manner hospitality companies also provide food services, hence merger with the travel and tourism company will help in promoting the food as travel and tourism company could avail the food of the hotel in their flights and could do the promotion of hotels. Therefore, it could be said that hospitality as well as travel and tourism industries are linked with each other and plays a very vital role for each other. It is necessary that both the industries should work together so that more effective services could be provided to the target customer with the effect of which companies could earn more revenue and make an effective contribution in the economy of the country (Law, et. al., 2015).
2.1 Analyse the implications of integration to the hospitality industry. You should include a range of examples from hospitality industry.
Popularity was gained by the integration in 1990’s. Reason behind integration was that businesses started focusing on the economies of scale because it benefited the companies in lowering the operating costs. With the help of integrations companies started to develop their presence in the global market which helped them in increasing their market shares. There are certain integrations that will help in framing a better understanding with various factors:
Vertical Integration: The integration in which merger in a same chain takes place is known as vertical integration. In this companies present in the market working in a similar chain merge with each other and prefer to provide services. Vertical integration is done by the companies so that operating cost of the company could be lowered down. In past days this type of integration was characterised as forward, backward and lateral integrations. Vertical integration creates barrier to the entry of different business in the market it is being done so as to avail fair deals in the market and to maintain the decorum of the same. With the help of vertical integration supplier’s control could be gained by the companies entering into the integration. Such type of integrations develops the monopolistic behaviour in the market which helps the businesses to attract the focus of government agencies. This results in the interference of the government so as to maintain the decorum of the business (Lee, et. al., 2013).
Forward integration allows the companies of similar business to merge so that more effective services could be provided to the target customers present in the market. for example with the help of forward integration hotels could merge with travel and tourism sector so as to provide effective and better services to the customers. Like Thomas Cook could merge with Hotel Hilton so that they both could provide joint services to the customers in single package only. Backward integration is the integration in which companies purchase the suppliers so that sale of the company could be enhanced and company could generate more revenue in the market (Martínez, et. al., 2014). In backward integration tour operators could buy an airline company so as to expand its business and to provide more effective services to the target customers available in the market. Companies present in the travel and tourism industries buy their suppliers so as to increase its brand value and to attract more customers with the company. If companies present in the travel and tourism business will access all the inputs of suppliers then they will be benefitted and will be able to fulfil the requirements of the customers available in the market. Companies should try to gain the information regarding needs and wants of the customers so that they could provide the services according to the market requirements and could move on the path of success and sustainability.
Another vertical integration is lateral integration. It is integration in which companies that is indulged indirectly in the same business merge together. For merger direct link between the companies is not important. For example merger between the hospitality industry and travel and tourism industry could take place so as to manage the customer needs and wants in the market. These industries are not indulged in any kind of direct competition but they get merged so as to increase their services and provide effective and better services to the target population available in the market (Popescu, et. al., 2013).
Horizontal Integration: The integration with the help of business customer base of a business could expand is known as horizontal integration. Horizontal integration is done by the companies which want to increase their profitability by enhancing the customer base in the market. These companies expand the customer base above from economies of scale. In this integration merger could only take place if the companies present in the market are at the same stage of distribution chains. For Example Walt Disney Resort was purchased by Hotel Hilton.
Such type of integration is opposed to the competition. Companies in a horizontal integratipon merge in a systematic manner. For example, airline industries merge with the hotel chains so that they could coordinate the timing of the flights according to the availability of accommodation services in the company so that customers of Airline Company could enjoy the services and travels. Coordination and cooperation are the two most important aspects that matters a lot in horizontal integration. Such kind of activity helps the businesses to provide effective services and keeps the customers happy (Sethuraman, et. al., 2015).
2.2 Discuss how integration has affected a hospitality business.
Economies of Scale in the Market Share: Integrations help in reducing the operating costs of the hospitality businesses. Companies indulged in the travel and tourism sector takes over the hospitality business leads to hike the investment in the process. On the other hand integration with the hospitality business avails varieties of opportunities in the market which leads in the reduction in the dependency on others for better and effective services (Yap, 2011). For Example, Hotel Hilton takes over Thomas Cook then Hotel Hilton will not have to depend upon the services of travel companies or tour operators to avail effective services to the target customers. With such type of integration Hotel Hilton will be able to increase its own services and would be able to provide more attractive packages to the customers present in the market. Such kind of integration will also help in attaining competitive advantage in the market. Hospitality business could expand and generate effective amount of revenue with such type of services.
With some positive factors come certain negative aspects also. Integrations have some negatives sides also that affect the companies indulging in such type of aspects of contract. When to different businesses merge with each other and integration takes place then these companies have to make the certain changes in the policies according to each other (Fernandes, 2015). In this case Hotel Hilton will have to make the changes according to Thomas Cook and same will have to be done by Thomas Cook so as to process out the work in a smooth manner. Integration will also increase the competition of Hotel Hilton due to which it will have to develop certain new competitive policies which could help the business to sustain in the market. Competitors of Thomas Cook will get attached with Hotel Hilton which could affect the image of the business and the revenue of the business. Market share will get divided if integration between Hotel Hilton and Thomas Cook will occur (Aragon-Correa, et. al., 2015).
Standardisation: A very complex and time consuming process is a standardisation of a business which requires effective market values for the companies. Companies could only set the standards if they have effective market value and goodwill in the market, brand image is the most necessary aspect for standardisation of a business. Standardisation of the business gets affected due to integration in the market. If integration between Thomas Cook and Hotel Hilton occurs than the standard processes of Hotel Hilton will get affected as it will have to make certain changes in its standard processes so as to maintain the decorum of the business and to bring coordination among the businesses. Hence, it could be stated that proper and effective set of strategies will be required by Hotel Hilton in relation with the integration. These plans and strategies will help the hotel to manage the operations and functions of the business in a proper manner. Advance preparation of the company will ensure the success and sustainability in the market with the effect of which business will be able to grow and attain competitive advantage in the market (Crotts, et. al., 2009).
3.1 Develop a rational for selected project and clearly justify decision linked to target market.
It is required that every business should develop an appropriate plan so as to ensure that it could sustain and could attain competitive advantage in the market. These plans help the business to fight with the competitors and to attain competitive advantage in the market. In this the plan is developed for the integration of hospitality business with the airline industry so that it could expand its business in the market. Such type of integration will help Holiday Inn to sustain in the market which will provide huge exposure to the company. Holiday Inn wants to integrate with Jet Airlines so that it could expand its services and could attach the customers of Jet Airlines with the accommodation services of the hotel (Fernandes, 2015). Jet Airlines is one of a well known name in the market and integration with such a brand will enhance the brand value of Holiday Inn. Building trust among the customers is one of the most important aspects for a hospitality business because it provides services to the customers which cannot be delivered in a physical form. Due to this reason people prefer to buy the services when they reach to the destination. Integration with airline industry will help in developing the trust that the company have an effective image in the market and is dealing in trustworthy sectors with the effect of which people will prefer to purchase the packages of Holiday Inn and will visit the hotel to enjoy the services.
For such type of integration it is necessary that Holiday Inn should develop an effective plan as plans provides a blueprint to the company of what steps should it take to ensure its success in the market. Plans help in reducing future risks and helps in removing all the future vulnerabilities. Developed plan will help in gathering appropriate information regarding the benefits that the company will get with the help of integration, opportunities that will get in the market, competitive advantages that company will attain and various negative aspects that could affect the company’s future growth and development. Plan will help Holiday Inn to making appropriate decision regarding the integration. Hence, Holiday Inn should develop a plan which could help it to attain set objectives and goals set by the company (Göral, 2014).
3.2 Develop a plan for hospitality business which includes the operational requirements of the business, organisational structure to human resource allocation.
Business plan is developed in this section which helps in providing a direction to Holiday Inn in relation with integration with Jet Airlines. This plan will provide information regarding various procedures and steps that Holiday Inn will have to follow so as to integrate with the travel and tourism sector. The plan will be developed on the basis of SMART objectives which will be specific, measurable, attainable, and relevant and time bound. Such types of plan are effective and help the organisations to attain competitive advantage in the market. Plan will include certain stages which will help Holiday Inn in integration process and the hotel will be able to integrate in an effective manner with Jet Airlines with the help of this plan.
Stage 1 Development
- Concept of Holiday Inn is to integrate with Jet Airlines so that business could be expanded.
- Objective of the hotel is to maximise the profit margins by 47% in 3 years
- Vision of Holiday Inn to get position in top 10 hotels in the world (Law, et. al., 2015)
- Market research is one of the most important aspects for any organisation indulging in an integration process. Market research will provide appropriate information regarding Jet Airlines.
Market research could be done by:
- Identifying and defining the problem
- After it Holiday Inn will have to create an statement for the research project
- Then research design will have to be planned
- Then the sample will be developed
- Then Holiday Inn will have to collect the data
- Then analysis will be done that whether the organisation will be benefited with these factors or not
- Then it will have to formulate the conclusion and decision will have to be taken whether to go with the plan or not.
- Market will be selected by Holiday Inn on the basis of areas in which services are provided by Jet Airlines.
- Market will be segmented on the basis of the choice and preferences of the people who visit UK.
- Holiday Inn will have to borrow effective amount of funds from the financial institutions and will have to sell the shares of the company (Lee, et. al., 2013).
- There are several services that will be provided by Holiday Inn which will include travel services from one place to another which will be provided with the help of Jet Airlines. Accommodation services will also be provided which will also include food and beverages services.
- For both the parties it is necessary that they should enter into a contract which should be agreed by both the parties.
Stage 2 Design
- It is necessary that Holiday Inn should manage the airline properly so that more and more people could get attracted towards the services of hotel.
- Interior should be designed according to the terms and conditions of the agreement which should show the symbol of merger of both the companies (Martínez, et. al., 2014).
- Holiday Inn will have to prepare the strategy to attract the customers towards the services that hotel will provide. Strategy should include attractive packages which will have the accommodation and travel charges. These attractive packages will help in attracting more and more customers towards the services of Jet Airlines as well as Holiday Inn.
Stage 3 Operations
- Holiday Inn will have to do staffing as proper setup of staff will help in providing effective services to the customers coming to hotel.
- After that Holiday Inn will have to setup a proper organisational structure. Choosing a proper organisational structure and developing the structure to the organisation will help Holiday Inn to manage the work and to provide effective services to the customers coming to hotel.
- Information related with the compliance issues should e provided to staff and compliance training should be provided by holiday Inn to its customers. Holiday Inn should ensure that each and every staff member should follow the compliance and should try to provide effective services to the customers coming to the hotel.
- Promotion is next step that will have to be taken by Holiday Inn. It will have to promote the services and packages so that more and more customers could get attracted towards the services of Holiday Inn.
- Fair deals and prices will have to set by Holiday Inn so that customers could enjoy the services in an effective manner.
Above was the step by step plan for Holiday Inn. It is necessary that Holiday Inn should follow all the steps and should bring the changes to workplace so that hotel as well as Airlines Company could get benefited effectively. After working on the plan Holiday Inn will have to do work allocation to the human resource so that work could be managed and services could be provided (Sethuraman, et. al., 2015).
Management: Management of Holiday Inn as well as Jet Airlines will manage the workforce and will ensure that internal decorum of the organisation could be managed in a proper manner. Management also has the responsibility to resolve all the internal issues of the organisation.
Front Office: Front office of Holiday Inn will be managed by two staff members who will work in shifts so as to manage the work and attend the customers.
Cleaning: Managing the hygiene is necessary for the hotel, staff members will have to ensure that hotel should remain clean and hygiene of the hotel could be managed (Yap, 2011).
Serving: Serving team members will have to serve the food ordered by the customers so that customers could enjoy the food of Holiday Inn as well as Jet Airways.
After evaluation of various factors indulge in the report it could be concluded that Hospitality and travel and tourism businesses are should work together as coming together will help the organisations to provide better and effective services to the target customers. It is necessary that before integration both the organisations should plan properly make the decision accordingly. Doing so will help in building coordination among both the organisations. Plan developed in the report will help Holiday Inn to manage the integration and will help in provide effective and quality services to the target customers.
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