Unit 12 Hospitality Provision in TT Sector Assignment Solution

Unit 12 Hospitality Provision in TT Sector Assignment Solution

Introduction

This hospitality provision in TT sector assignment would entail a study of the various aspects of integration and their implications between the sectors of hospitality and travel and tourism and would also include the development of a plan for a selected brand of hospitality for a target market. The study would from time-to-time mention the examples of real life business situations so that the reader can understand the implications of the theoretical literature in the practical context of business activities.

Task 1

1.1 Discussion on how the sectors of Hospitality and travel and tourism are interrelated

The sectors of hospitality and travel and tourism are interdependent and hence related and associated with each other. Hospitality business involves delivery of platforms that ensures the aspects of accommodation, food, leisure and entertainment to the ones that travel across the globe. The travellers in the course of their expedition to their favoured destinations must find a suitable place where they can stay, eat, relax and rejuvenate and enjoy the comfort of their homes in faraway places and this is exactly where the services of the hospitality sector join hands with their travel and tourism counterpart (Thakran and Verma, 2013). Travellers are after all human beings subjected to fatigue out of their excursions and needs the safety and security of a resting place where they can not only refuel with food and drinks but also get recharged for further expeditions. Hotels, motels, inns, restaurants, guest houses etc are the platforms that the hospitality sector offers to the travellers to make their vacation memorable in every possible manner. Thus neither travel and tourism nor the hospitality can survive solely on its own it must complement each other in its operational activities.

The sector of hospitality is primarily service driven and so is the sector of travel and tourism. The products that they deliver are intangible as they can be felt and enjoyed and cannot be acquired for future use. Tourism is perhaps the biggest source of employment and revenue to any nation and hence it has always been found to be promoted far and wide irrespective of its geographical boundaries (Middleton et al., 2009). Under the broad hood of travel and tourism there are several smaller sectors such as recreation, entertainment, events, food and beverages, accommodation, conveyance, leisure and fun activities which are linked with the operations of the hospitality sector. There are certain sectors like the modes of communication in the form of railways, aviation, road and ferry services which are on one hand is described as the platforms of the travel industry but simultaneously are also part of the hospitality business since they provide the service of transporting the travellers from the source to the destinations and back to their respective sources (Croce and Perri, 2010). It can therefore be said that both the industries are somewhat intertwined as one leads to the other and vice versa. For instance an individual or a family out on a vacation takes the air plane to reach the holiday spot and the service offered by the selected aviation brand fell under the category of hospitality. The accommodation availed and the food and beverages consumed were provided by the hotel and restaurant under the hospitality sector followed by the services for recreational activities which too comes under the umbrella of hospitality, thus asserting the fact that the sector of tourism is a conglomeration of a cluster of smaller sectors of the sector of hospitality where the latter acts a supplier to the former to promote the growth of each other (Qu et al., 2011).

Travel and tourism, it can be said is virtually incomplete without the hospitality sector since the person who wishes to travel away from the daily rigor of regular activities to refresh himself and seek transformations in his mental and physical well being would look out for options of enjoyment, relaxation, recreation in all the aspects like that of accommodation, food and beverages, leisure etc and such services can only be provided by the hospitality sector (Law et al., 2014). Hence the flourish of the travel and tourism sector is dependant majorly on the sector of hospitality. It is however important to understand that as these industries are proven to be interdependent it is imperative that both the sectors work in harmony and synchronize their activities in such a manner so that the experience of the end product remains etched in the memory of the clients long after it is over (Evans et al., 2012). In the current times there are many enterprises like that of Thomas Cook who plays the role of the prefect coordinating agent between these two sectors offering customised travel packages to people where the travel itinerary not only includes the places of visit but also the modes of travel, the available types of accommodation and food options and the recreational and leisure activities that the travellers could avail of in their vacation.

It is the primary responsibility of the hospitality sector to ensure comfort, safety, security, enjoyment and satisfaction to the tourists through their service offerings thus making them avail of the services time and again which in turn would boost the revenue of both the travel and tourism sector as well as the hospitality sector in that particular region (Haugland et al, 2011). In the recent times the online portals of companies like Trip Advisory has been quite successful in serving both the travel and tourism needs as well as the expectations from the hospitality sector for the modern day globetrotters, whether for vacation or business purpose, to make choices of travel plans, plans of stay and sightseeing and options of food and associated services. The site offers suggestions, information and reviews of the travellers in form of personal experiences making it easier for first time travellers to customise their tours accordingly. Make My Trip is one such company who has a rich experience in offering not only options for reservations for the chosen mode of communication by the travellers but have also strategic collaborations with several hotels as well as other modes of communications in several destinations for ensuring the very best of services of both the sectors.

If travel or vacation is considered as a currency coin, tourism and hospitality are surely both the sides of that coin. As in a currency coin, the presence of a head affirms that a tail would surely be found on the other side when it is flipped, so is the coin of travel representative of the fact that as the sector of hospitality can only thrive if people travel, people would only travel when they are ensured an experience of hospitality close to their expectations.  

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Task 2

2.1 Analysis of implications of integration in hospitality industry

The theory of integration fosters economies of scale resulting in reduction in the costs of operation. Integration in the broad sense can be categorised under two heads – vertical integration and horizontal integration. The former happens when the suppliers of an enterprise are acquired by the enterprise itself or the enterprise expresses interest in acquiring any of the companies in its distribution chain. This process lowers the cost of operation thus increasing the margin of profit. Under this approach the enterprise implements the process of internal training and shuts down all outsourcing avenues thus making focusing on economies of scale and also gaining control over the entire distribution chain. Horizontal integration on the other hand is referred to a scenario when a merger happens between two companies from two sectors so that a new entity is formed which results in expansion of the clientele base, advantages of economies of scale and to top it all, an augmented margin of profit ( Morgan et al. 2012). As for instance the acquisition of hotel at Walt Disney Resort by Hilton Hotels can be considered as a case of horizontal integration. Under this approach of integration often the companies complement each other like that of association of hotel chains with the aviation industry which results in gaining the advantages by both the sectors and the risk of mergers are also kept in bay.

In the hospitality sector the implications of the process of integration are manifold in nature.  Similarity in the service delivery at various locations must be considered as in case the service quotient falls then it would have a negative impact on the reputation of the brand (Zhang et al, 2009). As for instance in the event of acquisition of a not-so-famous hotel chain by an internationally acclaimed hospital brand, the service quality must be reflective of the reputation of the international chain. This sense of branding can only result in a successful process of integration as the travellers would not be able to point out any differences in the area of service in any of the hotels acquired by the brand.

The process of integration can prove fatal to the existing competitors in case the mergers are both quite famous and renowned in the sector and thus the smaller hotel chains might have to exit the competition thus resulting in mass unemployment (Sigala et al., 2012). The stiff competition of the hospitality sector makes it difficult for the smaller hotel chains to compete with the quality of service that would be in offer from the integrated efforts of two big names in the industry and hence insurmountable losses makes them leave the competition.

One of the most important considerations could be the conflicting nature of the mission and vision of the two merger hotel chains which can affect the process of making decisions thus eventually reflecting the confused state of affairs of the organisation in the service delivery process (Medlik., 2012). This could be crucial in negating the positives of the integrated approach undertaken by both the organisations for reaping an augmented market returns and result not only in losses of profits but also of reputation.

In the recent times of globalisation, the hotel chains are showing interest in international expansions and more so because of the fact that several nations are encouraging the growth of the tourism sector, as it has been recognised as a generator of surplus revenues in the economy.

 2.2 Discussion of the impact of integration in the business of hospitality

The process of integration impacts largely on the cost of operation, as for example, in case a hotel is acquired by a travel enterprise, the latter would immediately stop depending on the other hotels and concentrate on the up gradation of its internal accommodation cutting down the cost of operation and maximising the profit in the long run. The reputation of the hotel brand would add a brand value to the travel enterprise and as a result the management would design more affordable packages for the advantages of the customers (Kusluvan et al., 2010). This would increase the share in the market competition and maximise the level of profit. Horizontal integration helps in expansion of the base of clients while entry into new markets and luring new set of customers is the result of vertical integration. Standardisation of the offerings although complex in nature is not impossible to achieve in cases of integration. The hotel service in certain areas can be standardised since the variance in the execution style of the different departments by various departmental heads could be tedious as the standards of each one of them are maintained in separate manner (Pizam., 2009).

The aspect of quality in service sector of hospitality is considered most crucial and integration does not necessitate an improvement in this area. There could be several issues related to management of the human resources since mergers often follow changes in the managing style and culture of the organisation which the employees might not feel comfortable with and the result would reflect in the execution of their responsibilities (Thakran and Verma, 2013). The adopted approach resulting from acquisition may not be in alignment with the approach of the employees and could be taken as unfeasible and impractical thus increasing the risk of commitment of errors in service deliveries.

Starwood Hotels and Resorts has had a successful integration however with Le Meridian group which has resulted in the expansion of the clients base of the former hotel chain across the continents of Europe, Africa, Asia-Pacific region and the Middle East as well. The preferred guests program of Starwood has been quite beneficial to the loyalists of Le Meridian because of the increased access to over seven hundred destinations. The locations of the Le Meridian brand were in regions which Starwood had not tapped till the acquisition and the integration resulted in the expansion of the Starwood brand in the virgin territories thus resulting in a widespread and steady improvement in the profits and growth. 

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Task 3

3.1 Development of rationale for a selected project

Premier Inn is one of the leading budget hotels that works all around the UK and have significant number of satisfied customers. Premier Inn has number of hotels all across the country that provides hospitality services to consumers at affordable rate. The company operates in different countries apart from UK like in India, Ireland, Germany and UAE. The company has been successful in its operations and has around 700 hotels all across the world. It is considered as one of the effective budget hotels in the world after Travelodge. Even though the Premier Inn Hotels comes with attached Whitbread Restaurants which is the parent company of Premier Inn but it still doesn’t alcohol in all of its restaurants. Now the company wants to open Pubs that will also help to meet the needs of the beverage needs of the consumers. It could be said that in the present hospitality market selling alcohol is one of the first priorities as consumers’ preferences have changed in over the years and most of the consumers are looking for choices to fulfill their drinking habits (Hassanien et al., 2010).

The selected project is hence integrating a pub with the restaurant which will address all the drinking needs of the consumers where consumers could drop in for rest and get their favorite drinks along with budget hotel services. Premier Inn has a hotel in Cornwall South England that doesn’t sell Alcohol but now the upper management wants to integrate that alcohol selling system. As the Business Development Manager I have been given the task of designing the entire system so that it is easier to develop a plan in order to integrate sales of alcohol and make the place licensed premises for Alcohol sales. In Around this area of Cornwall South England there are number of Pubs and bars and this is where the Premier Inn is losing its business and hence the company has planned to launch its alcohol selling system which would help to attract those customers. Premier Inn is a brand and hence most of the consumers feel satisfied with its products and services and introducing alcohol in its restaurant will be effective in retaining those customers as well as develop a new client base for the organisation (Mok, 2013).

The target market of Cornwall South England is mainly place for tourist visit and hence the company was missing those clients who came in for a quick drink and then again out for sightseeing. It was extremely important for the company to develop a strong strategy in order to make the place licensed premises for alcohol and develop the infrastructure to accommodate selling of alcohol in the premises. It becomes the responsibility of the business development manager to implement this aspect and design the entire process to implement the new strategy in the organisation in order to have improved footfalls for the organisation which will help to compete with the immediate rivals and have better market share in the area of Cornwall South England (Chon & Yu, 2012).

3.2 Development of plan for hospitality business

The company Premier Inn will have a separate space for the pub to operate which will be with the hotel itself but it will be slightly in outer area of the hotel so that people coming in can have better time with their friends. The main focus of the company Premier Inn is to provide budget hospitality services to consumers. The primary objective of the organisation is to ensure that the consumers are provided proper hospitality service. The company has a vision of becoming the best budget hotel in the UK (Walker & Walker, 2012). The initial concept of the business was to develop a sustainable budget business which would help the consumers to enjoy hospitality service. The basic objectives of the company are:

• Customer engagement with the brand.
• To make service available to people all across the UK.
• Streamline customer journey for consumers on the go.

The target market for the company presently is the tourists and local youths of the Cornwall area South England. The segmentation of the market is done basically based on the demographics for instance on the nature of the customers and income and the taste and preference of the consumers. The segmentation has helped to understand the situation effectively. The segmentation is also done based on the standard of living of the consumers and their lifestyle choices. The market in Cornwall is comparatively bigger and hence in order to integrate the alcohol selling system it is important to assess the market effectively. Funding will be done by the investors and the company will apply for bank loans in order to develop the infrastructure for developing licensed premises (Brotherton, 2012). Since the alcohol selling is the main focus of the company now it could be said that the company will have to ensure the right quality and categorisation is done for the right distribution of alcoholic beverages.

The design of the project would be done based on the historical culture and tradition of the area of Cornwall. Cornwall in South England is an ideal place for tourists and hence it is important that the licensed premise by Premier Inn is accordingly designed. The ambience of the pub will be kept cozy and comfortable so that tourists after long day’s sightseeing could come in and settle down for a drink and then rest and have a good night’s sleep. Culture will be developed as per the local society. The culture will be authentically British friendly and warm and this will reflect on the behavior of the staffs. The interior and exterior will be given premium looks with well furnished seating arrangement inside with great view from outside of the pub. Since it is centrally located it will have a premium look which would help to have a better impression on the consumers. The functional area will be mainly planned in a row which would help to ensure that the staffs are able to access tools in the functional area effectively (Russ, 2009).

The functional area of the pub will be designed in a sleek manner with better view of the operational floor so that the consumers could be well served. Customer flows is naturally expected to be high as the area of Cornwall is basically posh and full of crowd and hence handling customers flows will be an important aspect. Customers will be served as per the service principles and all of the customers will be given equal priority. Customers with individual needs are extremely important to be served in the pub in order to increase customers’ satisfaction. There would be different choices in food and beverages especially in alcohol so in case any customer or groups of customers are willing to get special services then the company will have separate special plans including improvement of wedding and birthday party area. Signature dishes and vintage wine and other beverages for the customers will increase satisfaction of the consumers. Sustainability is what the company will focus on effectively in order to stay in the market for a long time. The company will have to ensure that it follows regulations framed for licensed premises and it is also important to make sure that the company does its business especially selling of alcohol effectively (Raj & Musgrave, 2009).

The staffing would be done based on the different functional requirements. Pub Manager, Bartenders are extremely important and they will be recruited with the help of practical assessment, interviews and based on work experience. A pub manager should have an MBA in Hospitality or Hotel management and at least work experience of around 7 to 10 years. On the other hand Bartenders should at least have a high school degree and professional experience in handing and serving alcoholic beverages. Seasonal changes and staffing is also a problem especially in this area of Cornwall. This place is normally filled with tourists from all across the world almost of half the year and hence it could be said that the company would require professional help and efficient employees half of the year. Even though after the summer in till the winter tourism is tad low in UK but this place is filled and hence Premier Inn Hotel in Cornwall might use the same staffing strategy of the company (Reid & Bojanic, 2009).

The company ensures that every staff has to follow the same policy of recruitment even the seasonal employees and they are provided with the same training procedure, the company will have to make sure that they understand the company policies, and continue generating awareness among them about the company in order to get the best possible performance from them. Cultural diversity and conflicts will be dealt in an effective manner. It is important to understand that people from different religions could work in a team and hence the priority should always be the team not individuals. Conflicts should be eliminated with proper communications, effective allotment of tasks and communicating the organisational objectives with the team which will reduce personal conflicts and employees will target organisational objectives (Nickson, 2013).

The recruitment will be done with the help of interview and practical tests within the pub launched by Premier Inn which will help to analyse the capability of the candidates to work for the company. Since the company is launching a pub it is important to have a license for the place which is stated in the Licensing Act 2003. The company will also comply with legislations like Equality Act 2010 and Discrimination Act 1975 which helps to eliminate any kind of discrimination at the workplace and managing equality all over the operation. The promotional mix of the company will have direct advertisement in the form of social media marketing, distribution of leaflets and development of flex and banners which will help to create awareness among the consumers. Inbound marketing in the internet will also be used as the tool for promotion (Brotherton, 2013).

Distribution of leaflets will help to make tourists and local people aware of the pub as well as help to know about their services which will overall contribute to the increase in footfalls. The company Premier Inn is a budget hotel chain and hence its pub services are expected to be kept affordable. Food and beverage will be sold with the help of penetration pricing strategy where the prices of products and services will be kept low as compared to competitors in order to ensure success in the market during the initial phase of business in Cornwall in South England (Nickson, 2013).

Conclusion

The report has in its course given an overview about the relationship of dependency that is shared by the sectors of hospitality and travel and tourism and the implication of such an integration of both the services from the business perspective in the respective sectors. Both the sectors it can be said stand in a situation where both would win since their target is the satisfaction of the customers that they serve albeit in separate manner but perfectly attuned and complimenting each other in every way.

References

Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Brotherton, B., 2013. Hospitality and hospitality. In Search of Hospitality.
Chon, K.S. and Yu, L., 2012. The international hospitality business: Management and operations. Routledge.
Croce, E. and Perri, G., 2010. Food and wine tourism: Integrating food, travel and territory. Cabi.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
Hassanien, A., Dale, C., Clarke, A. and Herriott, M.W., 2010. Hospitality business development. Routledge.
Haugland, S.A., Ness, H., Grønseth, B.O. and Aarstad, J., 2011. Development of tourism destinations: An integrated multilevel perspective. Annals of tourism research, 38(1), pp.268-290.
Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010. The human dimension a review of human resources management issues in the tourism and hospitality industry. Cornell Hospitality Quarterly, 51(2), pp.171-214.
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Middleton, V.T., Fyall, A., Morgan, M. and Ranchhod, A., 2009. Marketing in travel and tourism. Routledge.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation. Routledge.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Pizam, A., 2009. What is the hospitality industry and how does it differ from the tourism and travel industries?. International Journal of Hospitality Management, 28(2), pp.183-184.