Unit 12 Hospitality Provision in TT Sector Assignment - Perfect Inn

Unit 12 Hospitality Provision in TT Sector Assignment - Perfect Inn

Introduction

Hospitality is the relationship between the guests and the hosts. The guest provides different services like accommodation, entertainment, eatery etc against a predefined amount. Hospitality business is among the leading revenue making business across the world. The growth of hospitality industry is significant and has been attracting investment for opening up of new ventures.  The tour and travel industry is closely associated with the hospitality industry. The travellers visit different tourist places and needs to a good stay to make the trip memorable. The study would be discussing the relationship between travel and tour industry and the hospitality industry by taking example of case study.  The unit 12 hospitality provision in TT sector assignment - Perfect Inn has also presented the different integration between hospitality industry and travel and tour organisations. The report has also presented the rational for opening up of a new hotel “The Perfect Inn”.

Task 1

1.1 Interrelationship between hospitality and tour industry

In the current scenario, hospitality business in UK is one of the fastest growing sectors that have potential to contribute in economy of the nation and offering the opportunities to new organization to establish and expand the business. London is prime international destination in world where opportunity for establishing the hospitality or  travel and tourism business  would be beneficial. According to observation, hospitality industry of UK is having different category of operations and activities such as event planning, theme parks and transportation that is essential for attracting and retaining the customers. The leading hotels of industry are offering the services like bar, pub, corporate and casual parties and events according to needs and requirements of the customers and visitors (Brotherton, 2012). In these services and products have significant impact of the technological development as online booking and offering of information is influencing the decisions of the potential and existing customers. Hotel, restaurant, or an amusement park forms a hospitality unit. Hotel Hilton is leading chain in London that offering the full services for all types of customers and visitors. Now to attract the customer and have the regular sales of rooms and other services, the management has corporate deals with the various travel and tourism organization from different regions and part of the world. This kind of business initiative and agreements with these organizations are helping the hospitality industry to grow as well expand the operational capabilities. Different services, for example, bar, , disco, and so on are being given at reasonable which helps them in drawing in their potential clients. Furthermore they satisfy their clients to an extent that they get repeat business.

For example, TUI is leading travel and tourism group that offering the tourism packages and plans across the world. The two organizations mentioned in the discussion above are interrelated with each other in terms of the services offered to the customers. Two have comparable client base which is subject to the administrations of both the organization. TUI Group outlines the package by considering services provided by Hilton Hotel. The facilities like conferences and high ends meetings are creating the opportunities for the advance booking of the services. Moreover the hospitality organization like Hilton is providing the additional service for local transportation support. This has positive impact on the brand value of hospitality business (Busby and Gibson, 2010). Hence, the businesses of both the organizations are growing as well increasing the satisfaction level of the customers. Both TUI and Hilton have solid association in term of services without one association another business won't have the capacity to satisfy the interest of the clients. TUI has headquarters situated in Crawley, West Sussex, UK. The business of TUI group is leading with 1800 travel agencies and online portals, six airlines, 3000 hotels (TUI Group, 2016). By having corporate deal, TUI is taking the services of Hilton hotel in London for accommodation, food, theme parties and events. TUI Plc merge with the airlines companies to increase the services in 2008 and began the new business which is named as First choice Airlines. These services of aviation and travel agencies are having the positive impact on the business of organizations. Joint operation and interrelationship with the hospitality organization TUI is become the world largest travelling organization in people choice.   The organization also executes a joint venture with the hospitality company which shows the link between the tourism and hospitality industry. This kind of interrelationship is beneficial for the both of industry. In the current scenario, the people are also choosing the travelling packages by consulting the accommodation, food, local transport and party’s locations at destination. For that purpose strategic alliance with the 3 to 5 star hotels give the competitive advantage. The facilities for the customers are also improving by this kind of joint operational activities of the hospitality and travel organizations like Hilton and TUI (Nieves and Segarra-Ciprés, 2015).   Additionally the objectives of the Hilton hotel get accomplish as the advance booking of services generate the desired revenue.      

The tourism business likewise offers diverse travel packages as per the financial plan of the clients. Travel industry and the lodging business both these parts are interlinked with each other. Like for a case, tourist group needs to have a visit at different geological territories. For this they contact the specific visits and travel organization of UK which serves them with best offer, for example, of food, travel, hotel etc (Guillet and Law, 2013).  The leading hotels of industry are offering the services like bar, pub, corporate and casual parties and events according to needs and requirements of the customers and visitors. These services and products have significant impact of the brand value and customer retention policies. According to the organizations reviewed in the above study it has been recognized that both are interrelated with each other. The joint venture strategy is more successful in the current scenario that has provided many changes in the resources planning and efficient use of them for business purpose. Additionally, the cost of the package for customer get reduces to optimum level which is beneficial for the travelers. This kind of services is provided by the joint venture of hospitality and travel organization (Ip.et.al. 2011). The services provided by them to the customers are linked with their respective fields. Hotel Hilton and TUI plc are merging their services to provide quality services to their targeted customers. Hilton and TUI are consolidating their services to give quality services to their clients. Both the association is from various segments however focusing on the same clients at various stages which interface them with regards to clients.

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Task 2

2.1 Analysis of the implications of integration to the hospitality industry

Integration in the hospitality industry is been considered to be the amalgamation of the service sectors with new business operation and functionalities. Integration is basically defined as the process of merging the resources along with the information to fulfill the set objectives of the business effectively. With respect to the present case, hotel Hilton could integrate tour with TUI plc which is a leading travel agency which could help each other in carrying out their businesses effectively. Integration is mainly carried out in two types’ i.e. vertical integration and horizontal integration in order to motivate the performances by ensuring the optimum utilization of resources. It has been identified that TUI acquires immense numbers of hotels integrated with it in order to enhance its performances and expand the business effectively.  On the other hand, hotel Hilton would be able to have more number of clients through travel agency and would avail higher number of customer segments all over the world (Pellinen.et.al, 2016). With the purpose to develop the business operation and expand the service areas, Hotel Hilton had made use of these integration approaches based on the needs and situation which assists in maintaining the services and make better use of the resources. With the help of the integration process, the hospitality and tourism organization would be able to set their goals and focus majorly on the demands and needs of the target customers effectively.  Hotel Hilton would be integrating with TUI which would help the management combine the resources more specifically and effectively.  However, it has been found that the integration would have a positive impact over the outcome of hotel Hilton in terms of enhanced brand value and reputation in the market. The major integrations which had been taken place are:

• Vertical integration: Vertical integration is the process in which the organization purchases its suppliers or another company in a distribution chain. The vertical integration helps in reducing the operating cost and would maximize the profits effectively. The management of Hilton hotel had made use of the integration to expand its business operation in diversified ways by evaluating the capabilities of the other competitors and effectiveness of the services.  The vertical integration would help Hilton and TUI in ensuring optimum utilization of the resources and diminish the cost of establishment of the infrastructures. The major implication of vertical integration is been identified as the empowerment of the brand reputation and image in the market at the global levels.   
• Horizontal integration: The horizontal integration is mainly referred to the amalgamation of two different organizations to develop bigger and improved organizations which would offer all kinds of the services and requires fulfilling the needs of the potential customers effectively. Hotel Hilton had made use of this integration for expanding the business activities and enhances the brand awareness in the areas of better services sectors. In order to have global expansion, horizontal integration would prove to be beneficial and would help in maintaining the quality services based on the global standards (Alfaro.et.al, 2016). The major implication of horizontal integration would be the enhancement in the productivity and the quality services being provided to the diversified customers. The merger would provide with the positive results to TUI and hotel Hilton and would maintain the flow of services.  In addition to this, the integration would provide with the enhanced opportunities of expanding the business activities and operations of both the organization and would lead in a profitable manner. It would even lead to the enhancement of revenue income along with the higher number of customer segments all over the world.

2.2 Discuss how integration has affected a hospitality business

The hospitality industry had been affected in a positive manner with the help of integration with other service sector organization. The approach had contributed in the development of the business and avail higher attention of target customers by providing them various services in a single package. It has been found that integration is mainly concerned with the optimum utilization of resources and attains a competitive advantage by setting the competitive prices along with the technological advancements. The functionalities of hotel Hilton would be affected in various ways such as:

• Cost integration: The vertical and horizontal integration had made significant impacts on the planning of costs and expenses over different organizations. The basic intention of making use of the integration is to mitigate with the developmental cost and offer the service by pooling the resources (Meuser.et.al, 2016). However, the increase investments and developments in the training module had affected the overall cost of hotel Hilton and maintain the breakeven point in the business. It is mainly considered the integration would affect the objectives of the hotel business as higher amounts of investments are required to me made. 
• Lack of knowledge: lack of knowledge plays a significant role in affecting the organization by integration as if the staff members do not acquires adequate amount of information and knowledge about the changing trends and strategies of the business. With the help of integration of  Hotel Hilton and TUI had lead towards the development of plan and packages as per the culture, tourism and service qualities to the great extent. Moreover, the lack of knowledge about various aspects of hospitality and service sector affects the planning and influences the desired standards of service levels which could even affect the business in negative terms and impact the business of the organization.
• Use of technology: The integration of technology had made major impact on the activities of hotel Hilton as the customers are facilitated with the easy access to the information and detail through internet on website and could even communicate personally (Kandampully.et.al, 2015). However, the advancements in technology had proved to be beneficial for introducing the functionalities of the two organizations. It has been identified that lacking with the training and knowledge of the market would affect the business of TUI and Hilton hotel. It could lead in the delays in decision making processes, faults in exchanging the information regarding the key objectives of technological changes would also affect the business operation of both the organization effectively.

Task 3

3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market

By examining the development of hospitality industry, I have chosen to open hotel named “The Perfect Inn”. The significant explanation behind going into this business is to attract the people to the hotel by providing them with quality services and enriching their experience so that they provide repeat business to the organisation. Besides, stable financial conditions and expectation of customers for quality hospitality products and services has urged the management to go into the business by offering services of international standard at optimum value. The business objective for setting up the hotel is to offer services in accommodation and eatery segment and provide customers with different services like spa, gymnasium, pubs etc. The hotel would be designed with eco-friendly interior and will provide smoothing ambience which will allow the customers to relax in the hotel’s environment (Mo.et.al, 2013). The most appropriate area for setting up the business is London which is centre of tourists as people from all across the globe visit London for tourist and business reasons. The target segment for the business will be people coming from upper class society who are willing to spend for premium services.

So as to pick up the learning about the requirements and desire of the tourist, statistical surveying has been directed by the administration in which the information would be collected from tourists and travellers (Mo.et.al, 2013). Data would also be collected from the local people. The information would be using a questionnaire. Besides this, strategy used by the leading hospitality organisation would be reviewed. This will help in identifying the strategies which have been successfully in developing the business and attracting tourists. The significant components of research are costs, quality, scope of services, subsidizing and learning about the licensing procedure different services like bar and spa.  By examining the data, management has settled on the choices for focusing on the upper-middle class section of the society, picking London as area for development of the business and selecting the master chef who has knowledge about the restaurant and food of different culture. For picking up the consideration of target clients and building up the brand, administration will offer the limited time offers, organise events like food festivals and offer membership for services like spa and gym. Notwithstanding this, organisation will offer Wi-Fi for clients and guests also give the web booking and correspondence offices for web clients.

The management will further aim to provide quality in its services and will make sure that the experience staff is appointed which has the skills to meet the expectation of the visitors. Management has keen focus to develop its restaurant by providing international cuisines such that it becomes the face of the hotel (Claver-Cortés.et.al, 2007). The budget for the development of the hotel and the restaurant is kept at £50 million.The cost would include the development of the infrastructure, building up the facilities, fees for the licenses, recruitment, and inventory and security arrangements. Organisation will take loans from banks and investors.

3.2 Business plan

Stage 1: Design

In this stage the management of the hotel covers the outfit of the hotel. This will have the details about how the hotel would look like from outside, what will be theme for the interiors of the hotel. The hotel design and ambience are important factors contributing to the success and  develop business  (Claver-Cortés.et.al, 2007). If the visitors like the design and interior of the hotel they can act as publicity tool for the hotel. Following are some of the key elements of the design which will be considered by the hotel:

Ambience: The management of “The Perfect Inn” will enliven the lodging in exceptionally lovely way that draws in the customers and make sure that it gets the repeat business. The lighting of The Perfect Inn is exceptionally alluring and satisfies the eyes of the guest. The ambience of the restaurant is designed on themes drawn from different culture. The food along with the ambience will make it a perfect experience for the visitors. The administration of the hotel utilizes dancing fountains and the sound and light show. Every corner of the lodging must be lit with multi shading light which is the present pattern in the hotel business. The internal decoration of the hotel would use a combination of traditional and modern art.  This will help in attracting people of all ages.

Culture: The restaurant of the hotel would be based on the different cultures like Japanese, Chinese, Indian, Italian etc. The restaurant will have different section based on these cultures and the waiters serving in these sections would be dressed in traditional attire of these cultures. This would attract more people to the restaurant. The service staff employed in the hotel would also be picked up from different cultures such that the staff does not have language barrier and is capable of understanding the customer requirement properly (Chen.et.al, 2012).  The management will be focused towards the cleanliness of the rooms and would aim to give quality administrations to the customers.

Interiors and Exteriors: Outer design of the hotel assists the management to pull in the client and the interiors of the hotel ensure that the hotel will get repeat business The outside of “The Perfect Inn” is well designed and is painted in soothing colours which will please the eyes of the customer. The outside of the hotel will be well decorated with the light which will give it a distinct view. The inside must be appealing and charming that persuades the client to visit over and over. The inside of the rooms must be great and cover all the vital things like coral couch and encompass with old statues and works of art. The gallery of the hotel would be painted with graphic prints to make the inside more alluring. The bathroom would be fitted with all the facilities like bath tub, hot and cold water etc. Room fresheners would be used which will freshen the room environment. The rooms will have matching curtains with the wall. Couch, a table and chair would also be present inside the room.

Functional Areas: “The Perfect Inn” will put endeavours to collaborate with the clients and satisfy them with services to bring in repeat business. Management will utilize different administrations with a specific end goal to make the customer experience enjoyable. The organisation would provide facility to the consumers to book the hotel from different travel sites and from the official website of the hotel. The motto of the hotel is to deliver on time and quality services to the customers (Mo.et.al, 2013).

Sustainability: For supportability management of the hotel will embrace creative events to draw in the clients like organising cultural and food festivals. Hotel would also look to host business meetings and events (Mo.et.al, 2013).  Administration will plan different creative procedures to contend in the business sector like promotional offers and discounts, offering Wi-Fi office, organise live shows of famous artist, disperse free breakfast coupons, gaming for children, complimentary offers etc.

Brand: The management of the “The Perfect Inn” is more engaged to make hotel a brand. Another focal point for the organization is to pick up the trust of the clients by conveying quality services to the clients. For the assessment of satisfaction of the consumer, there will be provision on the website which will offer help to customers and will resolve the queries of the consumer (Chen.et.al, 2012)

Stage 2: Operation

For the success of “The Perfect Inn”, it is important that the operation management of the organization is smooth. This stage determines how the organization would achieve the goals. Organization defines the service level and the benchmark which is to be met. The operation management includes activity like hiring employees, staffing, following rules and regulation.

                                       Figure: OrganizationStructure

Recruitment: The objective of the recruitment is to hire resources which are competent and have the prior knowledge of the business and can serve as per the customer expectation.  “The Perfect Inn” would aim to hire mix of experienced and freshers.  After the recruitment, the candidates would be given training as per the job and role profile (Akrivos.et.al, 2007). Training would be planned such that the employees are able to achieve the level of service quality.

Staffing:Staffing is the critical procedure for the operation management of the hotel. Quality of the  human resource  would help in gaining competitive advantage for hotel (Akrivos.et.al, 2007). The hotel would do direct recruitment by advertising the job description in newspapers and job portals. This strategy would be used for lesser skilled jobs like cleaners, porters, waiters etc. For more skilled work like chefs, managers etc; organisation would also use recruitment agencies for getting quality resources. The focus of the organisation would be to hire resource from different cultural background (Chen.et.al, 2012).  The number of resources would be such that there is no compromise in service quality due to resource crunch.

Cultural Diversity: For developing quality workplace, management of the hotel will treat every one of the employees without any discrimination. Organisation would employ employee from different cultural backgrounds which would help understand people from different culture (Chen.et.al, 2012).  The cultural diversity would also help the hotel in innovating new products as people from different culture and background have different views about the subject.

Legislation: The hotel would abide by the legal regulation prevailing in United Kingdom. The organisation would follow acts like Equality act, non-discrimination act etc. Organisation would also make sure that it maintains the privacy of the customers, maintains the quality of the food served by the organisation. The hotel needs to carry out the business and formulate the business policies as per the prevailing and related legal acts.

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Conclusion

From the current study, it is clear that thetravel and tour industry and the hospitality industry are associated to each other and the two are using different integration approaches for increasing the profitability of the two ventures.  Report has analysed the ramifications of vertical and horizontal integration using the case study. Towards the end, report has proposed a plan for hospitality business “The Perfect Inn” and has provided strategic and operational plan.

References

Akrivos, C., Ladkin, A. and Reklitis, P., 2007. Hotel managers' career strategies for success. International Journal of Contemporary Hospitality Management, 19(2), pp.107-119.
Alfaro, L., Conconi, P., Fadinger, H. and Newman, A.F., 2016. Do Prices Determine Vertical Integration?. The Review of Economic Studies, p.rdv059.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Busby, G.D. and Gibson, P., 2010. Tourism and hospitality internship experiences overseas: A British perspective. Journal of Hospitality, Leisure, Sports and Tourism Education (Pre-2012), 9(1), p.4.
Chen, R.X., Cheung, C. and Law, R., 2012. A review of the literature on culture in hotel management research: what is the future?. International Journal of Hospitality Management, 31(1), pp.52-65.
Claver-Cortés, E., Molina-Azorín, J.F. and Pereira-Moliner, J., 2007. The impact of strategic behaviours on hotel performance. International Journal of Contemporary Hospitality Management, 19(1), pp.6-20.
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Ip, C., Leung, R. and Law, R., 2011. Progress and development of information and communication technologies in hospitality. International Journal of Contemporary Hospitality Management, 23(4), pp.533-551.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), pp.379-414.