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Unit 12 Hospitality Provision in TT Sector Assignment Sample
Diploma in Travel and Tourism
Unit Number and Title
Unit 12 Hospitality Provision in TT Sector
Tourism is defined as a way with which an individual avails recreational satisfaction (Medlik, 2012). A tour can be for leisure, business or for entertainment planned for a specified time period. Although the particular word show its trace of a different background altogether but if one starts digging a more dipper then it will show a relationship with the hospitality industry. Thus here comes the term ‘Hotel’ which has got a lot to do in terms of hospitality. The Hospitality Provision in TT Sector Assignment report checks the different relationship which both tourism and hospitality consists of (Brotherton, 2012). To link both the terms well an interrelationship has been raised where it has clearly proved that both the terms are interdependent to each other especially when hotel business is the key term. Next it has come across implications integration with the hospitality industry along with an idea about the effect of integration over the hospitality business (Medlik, 2012).
The entire report will be helping the reader in getting as well as establishing a smart relationship between the hospitality sectors with that of tourism keeping hotel business as the prime focus.
Interrelationships between hospitality and wider travel industry
An Introduction about Savoy Hotel London, United Kingdom
During 1889, Savoy Hotel London made their inception at the bank of Thames. Just a five minutes’ walk from ‘The Royal Opera House’ and ‘The British Museum’ it was once visited by the worldly statures like Frank Sinatra, Sir Winston Churchill and Katherine Hepburn (Ransley and Ingram, 2012). The Savoy is a niche of some of the best bars and restaurants of London with the best collection of cocktail which one can enjoy in its theatrical bar. Interestingly, the property has been valued as the best in London.
Talking about hospitality and its interrelationships let us focus on the discussion about the hospitality organizations which have been discussed below:
About Hospitality Organizations and Services and the structure of international hospitality industry:
These are organizations which has its most effectual outcomes in service providing to the industry ‘travel and tourism’. Be it a leisure tour or a travel for business; people like to spend a quality time at their hotel (Lashley and Morrison, 2013). So mostly it has been found that a luxury hotel fits their need at a significant budget.
The Savoy Hotel, proudly wearing a tag of being one of the best luxury hotels of London feeding all your needs and desires which an individual searches of while they are traveling to get relaxed, no matter whether they are in business tour or it is a family travel.
Package Holidays:Hospitality has its biggest role in the package holidays.Hotels that get included under this package get paid by the package. For example, if some individual is looking for a five star hotel at the budget package then it would not be possible. Instead they can expect to be accommodated in a three or four star hotel (Lashley and Morrison, 2013).
Hotel ‘The Savoy’beingthe pinnacle of luxury and glamour may not be the destinationfor getting discrete luxury.But if allure is the last word of expectation from the visitors then the package holidays that the any agency would be providing consisting of hotels like ‘The Savoy’ may be as charming and interesting as anything else.
Hospitality in Travel, Aviation and Tourism Sector: The availability of accommodation has several impact over the airlines industry (Hall et al. 2012). Many times the aviation industry faces a lot of trouble in terms of finding a suitable lodgingin a small town like Malta to a city as big as London. Thus to solve this ‘The Savoy’ has come forward in lending a hand of assistance to the visitors providing packages to some of the top rated aviation industry (Lashley and Morrison, 2013).
A hotel finds its best connotations with altogether five characteristics such as:
- Its location
- The facilities that it is providing
- Images from its different directions which will be virtually give an idea about the hotel to its visitors
- The service vibrancy and its uniqueness from the other hotels
- Prices that it offers for room booking and the different seasonal discounts
And ‘The Savoy’ fits superbly to all the mentioned criterion of a best connoted hotel.
Business Tour: While talking about the business travel lets glance to the topic of hotel pricing on which selection of hotel depends for a business tour. A company always first finds their own share of profit before seeing the employee luxury (Hall et al. 2012). Also another point of concern for any business travel is focussing on their brand popularity. Thus based on everything, a company checks on the hotel pricing criterion that focuses on:
- Published tariffs of a room that is also called ‘rack rate’
- Special concessions that are offered for business bookings and their corporates
- Rates for Air Crew
- Conference Rates
- Bookings of Tour
- Rates of Weekender Traffic
- ‘Impulse Purchase’ that strictly depends on the negotiation for late bookings
Hospitality in Exhibitions and Conferences: For the International as well as National industries of travel and tourism, exhibitions and conferences remains one of the most crucial occurrences. With an exhibition, a consumer will be benefited about the manifold possibilities of viewing any service or products before they decide to buy the same. Infact these are the eventswhich will be allowing the buyer in getting a showcase of products which will be helping them in finding the right merchandiseat their time of need.
Henceforth the organizations of these kinds of incidents have their own rights of regulations. Thus selection of hotel has a good importance in terms of visitors’ presence. Along with it hotel dining can have its maximum effect over attracting more number of visitors at the exhibition.
Hotel dining does not only help in providing business assistance to the company but additionally it pays a free advertisement in promoting their catering, dining as well as boarding facilities. Hotel ‘The Savoy’ being the flag bearer of glamour and pride is untiringly serving the tour and traveling industry with their right approach of hospitality and cordiality.
Structure of Tourist Accommodation:
Figure 1: Tourist Accommodation Structure
Primary Hospitality Provider and Food and Beverage Outlets: The name of primary providers has been listed below:
- Hilton Worldwide
- Inter-Continental Hotels Group
- Louvre Hotels
- Mandarin Group
- Marriott International
- Oberoi Hotels
- Starwood Hotels and Resorts
Hotel Classifications: The hotel classifications include:
It needs to have atleast5 bedrooms with a license of offering such along with a place for dining. Additionally each of the rooms need to have an attached bathroom with each
This includes under the head of branded group with proper cleanliness and comfortability along with consistent levels of facilities
In comparison to the hotels these offers less space and gives a homely environment to its visitors
This gives an option of bathroom and self-kitchen where cooking by ownself is possible
Often visible in bigger cities these are apartments that come with a self-help kitchen with maid service
These are the Parks catering the needs of Touring Caravans or Tents
This basically provides accommodation types with custom built rooms within it
Generally these comes with bunk beds with shared rooms
These are the educational establishments
This includes caravan homes mostly situated in caravan parks, farms etc.
Hotel Boat & Hire Craft
Narrow boats, cruisers, hotel boats across the waterways are included under this
This is another holiday accommodation that comes in timber, UPVC or part bricks
This are the accommodations that are of self-catering category and is more unusual in its kind
2.1 Analysis of the implications of integration to the hospitality industry.
Understanding the nature of Integration:
Categorization: It refers to the accommodation separation according to its kind and sort of lodging such as motel, hotels, guesthouses or boarding houses and the others. For example, The Savoy stands as the luxury hotels of the city (Hall and Gössling, 2013).
Classification:Classification of hotels basically makes a distinguish between certain physical features, for example, total number of rooms present in the hotel along with their private bathrooms or showers (Symons 2013,p.250).
Grading: It identifies accommodation as per the verifiable features of offered services. At ‘The Savoy’ these grading depends on the number of courses that gets served with each meals, provided 24 hour services and others (Teng and Chang, 2013, p.177).
For the purpose of simplification of the term hotel itgets characterized with five elements. These are:
- Location:This implies the perfect suitability of placing it in perfect position so that reaching the place can easily be accessible like that of ‘The Savoy’
- Offered facilities: These will be including a blend of amenities such as the restaurants, bedrooms, public rooms, leisure facilities and function rooms
- These will virtually be introducing about the hotel and its multifarious facilities
- Provided Service: For ‘The Savoy’ their assorted blend of courtesy towards their visitors include personal attention, their staff cooperation, assistance towards hotel services and others
- Charged Prices: These includes:
- Bookings for tour
- Conference rates
- Late booking negotiations
- Published room rents
- Rates for Air crew
- Special allowances for their corporate bookings
- Weekender Traffic Rates
Timeshare and Second Home: Second Homes are purchased for the purpose of inhibiting in short term basis and the former that is time share gets purchased with the right of using it for some specified time period.
Catering: For tourism the term can be overlapping with that of the host population and their meal experience can have its best effect with:
- Drinks and Foods
- Fittings, furnishing and decor
2.2 A Discussion of how integration has affected the hospitality business.
Integration in Hospitality industry:
No matter where or how the hotel is operating or functioning but the main motto for every hotel business is ‘Integration’ (Pitt-Rivers 2012, p.165). As per the study made by ‘The Savoy’, the best luxury hotel of London, a system meant for ‘property management’ will be accounting largely to its single portion of investment where it meets a total percentage of about 20% to its total rate of budget. They have also cited that the operational efficiency of its improvement remains at the top position of its three goals. Making a combination of other management systems to its property management it becomes an essential next-step for all the hoteliers to accomplish the operational efficiency level with a control over their data seeking.
Vertical and Horizontal integration:
The horizontal integration encompasses those companies which purchases the similar companies belonging to the same industry. Vertical integration on the other hand acquires the companies which functions either after or before the purchasing of another company during the production process. Simplifying the same it can be said that in vertical integration the business strategy get expanded with the purpose of gaining an ownership over the distributors or the previous suppliers (Brotherton, 2013).
- Horizontal Integration: When any company is expanding their growth with the horizontal integration, they are actually showing a desire of increasing its size, make a diversification of its services and products, make an achievement through their economies, cut off the competition and gain an access to the new clients of the market.
- Vertical Integration: When a company is of the intention of practicing vertical integration, they are actually looking to strengthen their supply chain, make a reduction of the production costs, capture the downstream and upstream profits and make an access to the downstream channels of distribution.
For ‘The Savoy’, they either makeapplication of backward or forward integration for vertical integration. They apply backward integration when the hotel takes a decision of owning another hotel business. Whereas,on the other hand, the forward integration is applied when they are looking for taking access of a process that deals with post-production (O’Mahonyet al. 2013, p.214).
Impacts of integration within the Hospitality industry:
The influences and effects of integration within the hospitality industry have been mentioned below:
- Significantly it is needed that all the prices offeredby the hotelneeds to be similar for all the customers. For instance, if prices are charged different for diverse visitors then quite obviously it would be hampering the hotel reputation ().
- When a couple of big hotel business integrates with each other then it could have the maximum influence over the smaller organizations. Obviously, people would be most attracted in getting the right service at the right price. For example, when an individual is planning to spend a weekend at the peace of their mind or is planning to make a business tour, their target hotels will be the one with which they can find their best outcome. So if some big hotel is giving a budget package, then apparently visitors will be much more interested towards that instead of choosing a small hotel.
- Integration can have its disadvantage too in terms of getting into conflicts. For example, if the hotel with which the former hotel have merged offers a different vision and mission than what they actually aims for, then evidently it would be having the worst effect turning to conflict between each other.
- Globalization has its biggest effect over the society. In several countries, the travel rules have been relaxed for which the hotels now can think globally. They are intending to expand their business all across the world with the effect of generating more revenue each year.
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market
The hotel is of the plan to implement an idea of giving free transportation to its travellers for which below comes a plan for it:
Idea: This would be comprising of a plan of providing free transportation service to the customers with facilities of pick and drop from airport to airport as well as giving them facility in dropping to some location where they want to. This is because; although the hotel is nicely located to a most communicable location, but still when someone is new to the city it is always not manageable for him/her to reach the place (Jones and Lockwood, 2012). Therefore to resolve such issue, ‘The Savoy’ has come up with such kind of planning.
Also, nowadays, internet has enabled travellers in getting familiarised with several hotels which offer diverse services so as to make their visitors advantageous in numerousaspects. Thus to meet those tough competition, the hotel has to land-up in giving their customers more options to choose them.
Market Research: This remains the initial step before implementing any idea to the business industry. After some planning has been chalked out, it needs to be checked that if implemented then how much effect it would have in terms of execution. The process of market research can include a feedback form from the visitors asking them about filling some ‘close ended questions’ along with suggestion about how they can serve their customers better in the near future. For example, if the plan for free transportation with free pick up and drop to airport gets implemented, then how much the visitors will be satisfied and benefitted with such.
Target Market: The target market obviously would be the travellers from other countries who would be new to the city and is unable to find the exact location of the hotel.
Licensing:The complete things would be maintained under the strict restriction of proper licensing.
As per the conditions of Mandatory Licensing, ‘Licensing Act 2003’, they implemented five conditions which are applied all over England premises about the alcohol supply inside a club premises (Jones and Lockwood, 2012). From its five conditions, the first three conditions came into action during year, 2010 whereas the rest two applied after six months. The last two conditions are related to verification about the age of the drinker which needs to be within a certain age restriction (Thirkettle and Korstanje, 2013 p.13).
Thus in terms of diagram it can be shown like this:
Figure 2: Process of Plan Implication
3.2 Develop a plan for a hospitality business including the operational requirements of the business’ organisational structure in relation to human resource allocation
For a hotel business the most important things on which the organization is needed to focus upon are:
- Brand Popularity
- Customer flows
- Customers with individual needs
- Functional areas,
- Link to target market
Depending on these ‘The Savoy’ is serving the hotel industry for years and have been enlisted as one of the best hotels of London (Lashleyet al. 2012, p.165). Rightly positioned at a very communicable position, the hotel is needed to plan some good beneficial programs which will enable them in striving the industry with more success as well as can help its customers to sooth their tour with splendour and magnificence. No matter why the traveller has chosen the city for their tour, but it needs to be well satisfied when they will be leaving the city. Thus to enhance their experience as well as give them a good set of luxury outlook, the business will be implementing such a plan which will take out the best outcomes in their near future (Li and Law 2012, p. 455).
The next point of concern will be on the operational area where the hotel is needed to be concerned and such includes:
- Staffing by functional areas: This is the first and foremost concern where the company would be hiring the right squad to help visitors in getting the right service (Johns, 2013).
- Specialist qualifications: For instance, when the hotel is implementing the idea of pick up and drop then the primary concern would be renting cars with the employment of good drivers. If the engaged driver lacks of enough skill in terms of driving right direction towards the hotel, then a bad reputation would be added up for the same. Thus a qualified driver can enhance the hotel reputation (Gerver, 2013).
- Cultural diversity and ways to deal with conflicts: Since visitors can be of diverse countries, thus the engaged employee is needed to be well cooperative about assisting each and every individual. Cultural diversity should not have its effect over dealing with visitors and henceforth no conflict should be raised in terms of welcoming a guest.
- Recruitment policies and procedures: As per the hotel rules and regulations, the recruitment procedure is needed to be well maintained by the Human Resource Management of the hotel (Hartwell et al. 2013).Henceforth to avoid any kinds of conflict in terms of operating rightly, motivational rewards should be incorporated for the employees (Steylaerts and Dubhghaill, 2012, p. 276).
- Promotional activities: In terms of promotional activities, the hotel is needed to be enough experienced about the manifold ways with which they can function the best possible ways. Promotional activities should be focussed on benefiting the customer in as many ways as well as giving them an option to be introduced with their glamour and reputation.
- Pricing: Being one of the best hotels of London, the pricing of every offered service need to focus on the budget of the target visitors. In this case of offering the free service of pickup and drop, the hotel need to be responsible towards giving a ‘free service’ which would not have any hide cost within itself(Jones and Lockwood, 2012).
If peeped into the topic of ‘Travel and Tourism’ then it can be found that the industry is largely affected by the Accommodation and Catering elements. No people would be interested in finding a hotel where they would be unable to find a place to eat or sleep. Infact people go for tour either for business or for getting relaxed or for leisure. So in these three cases, accommodation as well as a good place of dining has equal significance. Person visiting for business need would certainly be looking for a place where they can opt for a peaceful environment which should be offering internet facilities.
Thus it is evident that hospitality industry has the prime focus over the hotel industry where each and every individual is needed to be well assisted during their time of need. For a flawless experience, the hospitality industry is required to work together with the intention of providing the customer with the best ever experience which will enhance them in taking a second visit to the same place. Tourism Industry on the other hand would be of no importance without the proper cooperation of the hospitality industry. Thus for both of them it needs to be a win-win condition where both would be having their equal portion of importance as well as significance in terms of finding the right portion of customer all across the world.