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Diploma in Travel and Tourism
Unit Number and Title
Unit 12 Hospitality Provision in TT Sector
It is being acknowledged by the expert that the industry of travel and tourism has made great landmarks in the business world. Within this industry the sector of hospitality has occupied a very significant place on a global basis. This hospitality provision in TT sector has become an industry in itself is comprised of all organizations and business companies that produce products and services for tourists and travellers. These businesses offer food & Beverages, lodging, entertainment and transportation facilities. These business organizations are the integral components that provide pleasant experience to the tourists. Therefore it is essential that these business organizations produce products and services that meet the desired quality standards. (Scowsill, 2013)
The assignment throws light on the nature, aspects and structure of the industry of hospitality and comprehends the relationships between various businesses that compose this industry. The implications that can be seen when this industry integrates with other businesses have also been explained. The assignment also helps us in understanding the process for designing the plans for the development of hospitality business.
The customers in the hospitality industry take into consideration not only the price offered by the seller but also the quality of services offered for the price he is paying. If a customer is satisfied with the services, he will act as a medium of advertisement by word of mouth and consequently playing the medium of revenue generation. The Savoy hotel where I am working as an assistant manager understands this fact very well and thus focuses on offering combination of high quality services and products to the customers in order to broaden the base of satisfied customers.
The consumers do not consume only the products or only the services in the hospitality industry. They rather consume the combination of the two. For instance the guests staying in Savoy Hotel dines in the restaurant and consumes food. He stays in the room and enjoys the facilities of the hotel. He enjoys the nice ambience of the restaurant and the services given by the managers, chefs, waiters, etc. The food he consumes is a product and is tangible in nature but the services are intangible in nature. He makes the payment for both the tangible and intangible components together. A good mix of the combination of products and services by Savoy Hotel is essential to make his stay a pleasant and memorable one.
The role of effective communication is very significant in offering quality services to the customers in the industry of Hospitality. The flow of communication is between the givers and takers of services in the hospitality industry. The communication flow between the givers and takers of the services must be effective enough so that the giver understands the needs and wants of the taker in an effective manner and this will help the giver to give the services in a qualitative manner. The communication must also be effective amongst the components and businesses that comprise the hospitality industry. Savoy Hotel also focuses in making the flow of communication effective between various components related to its business and offer quality services to its guests.
The tour operators offer holiday packages and tour programmes to the guests. These tour operators play the role of vital links in the hospitality industry. They tie up with the lodging providers, conveyance provides, transporters, airlines, railways and hotels of all standards for alluring deals in return for the guaranteed customers. They try to avail the offers from the hospitality industry components and the economies of scale. They buy the deals in masses and design various customized holiday and tourist packages for the customers. The customized packages offer various kinds of facilities that may include everything such as, food and beverages or may exclude some of the components as desired by the guest.
The impacts of globalization have been seen in all sectors and businesses. With the advent of globalization, there is a rapid increase in the operations of companies in multi nationals. Due to this scenario of business, the travelling for business reasons has also increased rapidly. The business travellers have a pleasant experience if the infrastructure is of remarkable quality and the connectivity between the destinations is of qualitative nature. The business travellers prefer hotels with all facilities that would give them a convenient working environment and quality services such as facility of Wi-Fi and internet, meeting and conference areas, good laundry service etc. Thus Savoy Hotel tries to equip the hotel with all those facilities that would make the stay of the guest visiting the destination with the business purpose a pleasant one.
It is observed that the customers book the tickets in airlines as per their bookings in the hotels. Thus the aviation business depends upon the availability of the accommodation in the hotels. The role of hospitality components is also seen in the business of aviation off board and on board. The meals, beverages and other hospitality services are given to the customer when he is travelling in the airlines and also when he is on airports.
A destination or attraction in tourism industry refers to any place that creates interest amongst the tourists and the tourists go especially to visit it. These attractions or destinations can be natural such as rivers, springs, streams, hills, beaches etc. Or man-made such as theme parks, amusement parks, museums, dams etc. Innumerable number of tourists visits such places or attractions. Therefore the hospitality industry needs to establish a good infrastructure, hotels and other facilities for the tourists at such destinations. The holiday tour operators especially include such destinations in the packages they offer to the customers. For example Disneyland theme parks can be found in various countries of the world. These parks have their own eating places, cafes and even hotels in the premises of the park.
When events such s trade fairs, business conferences and exhibitions are organized at international level, we see that delegates from various companies operating in various nations come to attend those events. To meet the needs and wants of these delegates there must be quality hotels, quality eating out places, quality infrastructure, pubs, restaurants, recreation centres etc. Therefore we see that such events help in the development of all components of the industry of hospitality. (Service Skills, 2011)
The above study thus indicates that various businesses and components in the hospitality industry are closely related and mutually dependent. The mutual cooperation amongst these components helps the industry in offering a qualitative mix of services to the customers that help in making their experience a memorable and pleasant one. Their mutual support helps all the components to reap the benefits of economies of scale and optimum revenue generation and profitability by expanding the base of satisfied customers and consequently the market share. (Kapiki, 2016)
It is seen that hospitality industry is rapidly integrating with the other businesses in the travel and tourism industry. This report helps us in comprehending the concept of integration in hospitality industry, the kinds of integration, the implications and effects of this integration.
The concept of Integration gained popularity in the year 1900 when the stress was laid by the business organization on reaping the advantages of economies of scale and low costs of operations that is obtained as a result of integration amongst business organizations. It has been observed that if the business organizations integrate then they can offer services through the in-house efforts itself and the need for outsourcing is not left. As a result in the long run the costs of operations are lowered. The process of integration also helps the companies to operate in multi nations in a significantly effective manner. The integration can be in vertical form or horizontal form.
Vertical form of integration is a process within which one business organization buys the other one in the distribution chain via merging agreement. This process leads to the maximization of the organization via economies of scale and cost lowering. This process can be forward or backward type.
a) Forward Type of Vertical Integration
In this type a company merges and integrates on the further side in the distribution chain. A hotel merging with its operating company for expanding in the market is an example of this.
b) Backward Type of Vertical Integration
Here the company can merge backward in the chain of distribution such as supplying company for optimal utilization of inputs. A tour operating organization buying the airlines or the hotels is a good example. TUI AG is a good instance that has developed large hotels across the globe.
Horizontal form of integration is a process whereby a business organization merges with other one that is a similar stage in the distribution chain. Hilton Hotel in the Walt Disney Resort. This process helps in expanding the base of customers, maximizing the profits and availing the advantages of economies of scale. (Tourism Alliance, 2016)
The techniques of creating a unique brand with set patterns of services, direct selling, increase in online selling, prevalence of globalization and tariff barrier reductions are some other implications that can be observed as a result of integration amongst companies. (GDFHTS, 2010)
The costs of operations are lowered considerably when the integration amongst business organizations take place. For example a large tour operator organization purchases the hotels, then it has to shell out a lot of money for the purchase in the first stage but gradually its operating costs are reduced because it can now avail the advantages of economies of scale as because it can modify the costs of tour packages by adjusting the costs of accommodation in the hotel and thus offer more alluring packages to the customers. This will lead to repeated and satisfied customers and increase in sales. (Hotel Marketing, 2011)
To standardize the processes of operations, ambience, uniform of staff etc in hospitality industry is a difficult task because the services have to be customized according to the needs of the guests.
It is not guaranteed that the standards of quality will improve by the integration process. If the staff of the merged company does not accept the changes and policies of the new company, they may not perform their jobs efficiently. In such cases the quality standards may fall. The bureaucratic type of leadership must be avoided. For instance Hilton Hotels have undergone various types of vertical and horizontal integrations and has been very successful in availing the advantages of economies of scale and expanding markets. It has designed very prudent strategies to keep the employees and the customers satisfied. It has also given employment to many local folks. (Peter, 2011)
Integration process helps the business organizations in expanding their markets and increases the customer base. This report is an attempt to understand the integration, its implications and impacts on the businesses of hospitality industry.
The hospitality industry is a vast category, in which the industry provides many services include lodging, entertainment, travelling, and many more additional fields. The requirements of the clients keep on changing within time so to establish and sustain in this industry a company needs to be very active and focus on the changing trends in the market. The company can keep a hold on its customers by satisfying and providing them improved and creative services. The new ideas and working style attract the customers and the company always remains in the limelight.
Savoy Hotel London is an established and reputed hotel in the country. I am working as an assistant development manager. I have a responsibility on my shoulders to maintain the reputation of my hotel in the business world. The efficient managing staff of the hotel ensures to research and analyse the market strategies and culture. This helps the company to remain ahead in the global business world by introducing new marketing policies, projects and strategies. In the current scenario the Hotel is planning to introduce a new project in the market. Keeping the reputation of Savoy Hotel London in mind, it is a big responsibility for our team to make the project successful and profitable for the company.
The planned project is to open a silent disco club. The concept is to promote silent parties.
Silent disco is an extremely unique style of experiencing music. The club will provide good quality headphones to the guests. The club will have a silent atmosphere and instantly after putting on the headphones the environment transforms to high energy musical club. The silent disco is very social where you can enjoy the music and become the part of the dancing group by putting the headphones and actually talk to your friends and people around by removing them. So basically the person can control the music and his conversation. The club will be established in the heart of the London City. People in London have many places to hang out. When a person is in group he may have different moods. Sometimes the people want to sit and talk and sometimes enjoy the loud music party and drinks. The silent disco will provide both the flavours to the guests. The environment and ambience in the club will provide a warm surrounding and people can spend enough time by sitting, drinking, eating, chatting or dancing or just sit peacefully and enjoy the music.
The club will provide a facility for the accommodation of 200 guests in one go. The guests will be welcomed warmly by the reception staff and will be escorted inside the club after security checks. The guests will be allotted entry attractive and colourful entry passes. The efficient staff will put guests at their priority with their amazing service. The club will provide comfortable and peaceful environment to sit. The menu of drinks and food will be after surveying the taste and trend of the area. This will make the guest to relish their food, favourite drinks and snacks. The guests can sit, relax, enjoy music, dance, feed themselves and even read in the new planned Savoy Hotel silent disco club.
The club will have best bar tenders to prepare the best drinks with knowledge of exact ratios. The hard working staff will be trained to handle the guests in the pressure situations with dignity. The new concept and outstanding service will help the company to win guest’s loyalty.
The Hotel will target the college going adults, office crowd, retired people, housewives with friends and middle aged people to get a peaceful, relaxing and exciting meeting point. The club will also have an open terrace to sit, talk, eat, read and relax. The open space will be designed in such a way that people can utilise and enjoy the time during sunny days.
The new project will give opportunities to the people who want to join with the service industry and give their hundred per cent at the work place. The Club wants efficient staff so all the employees will be properly trained before placing at the desk. The planning team is working on their toes to make the project successful.
The higher authorities have taken all the legal steps in mind and considering them have acquired a legal licence from the government of UK.
If so, the Hotel Savoy London will plan to locate more different theme joints in the city and UK. (Gokey, 2014)
As the Hotel is planning to launch a new project, the management team will analyse the market, competitors and latest trends minutely. The team should be aware of the latest musical, eating habits, drinking habits and requirements of the guests. The Hotel is offering a relaxing place for the people from different fields and taste, so the main ambition of the Hotel is to provide the best to the customers.
The company has considered a rough figure and planned to invest minimum of 20 million pounds for launching and establishing the Silent Club. This investment counts the styling of the club, fixations, furniture, raw material, ration and drinking stock.
Hotel Savoy London has a reputed image in the market and the new project will be launched on the same working style of the hotel. The main target of the hotel is to introduce something new, sustain the image of the company, win new customer’s loyalty and earn profit at the same time. The company plans to open new clubs and cafeterias if the concept of introducing theme clubs work well and profitable in different parts of the city and country.
The management team of Savoy Hotel has made sure that the club is created and launched after the deep research of the market and the customers get more than expectations. After a deep analysis the company has selected a place that is approachable by all the customers of all kind of groups. The selected location is the Town Square Area of the London city. The area is approachable to the maximum number of customers which will further convert into profit. A ratio of the earned profits will be utilised by the creative team to introduce something more and maintenance of the club including the overhead expenses.
The HRM will advertise for the openings for the Silent Club. The team will have a fixed Selection Criteria and the staff will be hired on that basis only. There will be no compromise on the quality of the working staff members of the club. The club requires the employees who are perfect in customer care, dealing at pressure situations, humble, mentally strong, having good decision making capability and focussed at the work place.
The kitchen team will have the best chef and good in tasting and have a talent of quickly altering tastes according to the customer’s requirements. Same will go for the bar tenders.
A written exam will be conducted followed by the interviews and presentations invigilated by the best HRM hiring team of Hotel Savoy London.
The Staff of the hotel Savoy works under a proper established organisational structure. This will be discussed as follows.
An experiences and enthusiastic working team of Savoy hotel is given responsibility to plan and establish the new project of Silent club in London. The teams are ready with their innovative ideas and plans and working on their toes to make the project successful.
As the chart shows the General Manager is handling both the department of finance and human resource. Both the departments along with the General Manager discuss the strategic plans and work for its completion.
On the basis of the research project given by the research and development department the whole strategic plan will be generated. The development team will have a market research and keep an eye on the changing trends and work in full swing. The data of the competitors are also very useful in the plan designing.
The product and marketing team will analyse the reports given by the research team and plan the new product and strategies to launch it successfully in the market. This will be done by keeping in mind the new trends, new requirements of the customers and attract them with creative concepts. Hotel Savoy is famous for adapting itself according to the changing global market and satisfying the customers.
Final the operational team will handle accounts and calculate the amount required to generate the project. The team will work with complete intelligence. The combined efforts of the all the departments will provide a planned project to be launched in the market. The working team is best in all their respective fields, good in public dealing, sharp minded, good in presenting their views and enthusiastic. They understand the customer’s personally and deliver the expected services. (Ingram, 2016)
The assignment helps us to comprehend the diverse components of the hospitality industry and the implications that are possible as a result of the integration amongst various businesses in the hospitality industry. We also understand the theories and practices in the creative designing of the business of hospitality in order to get in depth sight into the current preference patterns of the customers. Thus this assignment throws light on the role that the hospitality industry plays in the travel and tourism industry, the process, implications and impact of integration amongst the companies in the hospitality industry and the process of planning and development of the business of hospitality industry.
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