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Hospitality sector is one of the major parts of the service or tertiary industry. Service industry is industry in which there are no good produced. Now a day’s hospitality has become most important for the travel and tourism industry. In today’s world people are more aware of new adventurous place around the globe, so number countries are supporting tourism and earning lot of revenue also. This report would tell how hospitality and travel and tourism are interrelated to each other. Analysis is made on integration of the hospitality industry, benefits of it. Study is made on how decision linked to target market and to develop a plan for a hospitality business. The aim of the report is to enable the learners to gain understanding the role of the hospitality industry, the impact of integration and gain skills to plan hospitality business.
The hospitality industry is a major service sector in the world economy; it includes services like food service, hotels and tourism. The hospitality industry is mainly divided into two parts: entertainment areas like bars, clubs and accommodation. The accommodation takes the forms of resorts, public houses, campgrounds, hostels, hotels, motels, apartment, etc. The hospitality industry includes tourism support activities like travel agents and airline cabin crew. Applied tourism technology and its workers in hospitality, tourism and travels are included in the hospitality industry. Hotels are the best example of hospitality where a customer pays a predetermined amount and the hotel staffs provides proper lodging and food facility to the customer. Now a day, some higher end hotels also provide internet facility which attracts lots of customers (Law.et.al, 2013). A combination of meals and accommodation comes in the basic hospitality establishment. Hotels are managed by highly qualified managers and other staffs. Hospitality sector has gained a lot of importance in today’s world and lots of business which also includes the tourisms and travels industry. Savoy Hotel London is one of the biggest hotels in UK has aim of satisfying its customers and fulfilling their expectations according the set standards. So it is setting the standards and provides best hospitality to their customers.
The services includes: accommodation, restaurants, cafes, entertainment activities, etc. The staffs of the hotel provide best quality services to the customers, depending upon the package to the customer. The travellers who want to travel can read reviews of the hotel on internet and book their rooms as per their requirements. Hotel takes the responsibility to take care of room services, cleaning, laundry services, etc. Hotel also provides high quality food as a big restaurant is associated with it, which serves all types cuisines specially Thai and continental food. The food service is provided on the demand n requirement of the customer. Several tourists prefer beverages in the lunch and dinner, it is also provided by the hotel on demand only. Tourism and hospitality are correlated and grouped together as a single industry (Medlik, 2012).
Tourism is defined as travel by a person and visiting many places may be for a business purpose or holiday purpose. On the other hand hospitality refers to the accommodation, meals, venues and drinks. Both these industries cover restaurants, hotels and exhibition activities, tourism is not a subsector of the hospitality merely a source of the tourist services. Hospitality is the focal point of the hotel industry; it provides lots of employment and revenue to UK as many people come to visit London every year. It is the main source of foreign exchange which helps in building the economy of the country. Hospitality helps in bringing different cultures of the world in global community. Many countries who are suffering from a trade balance looks at the tourism and hospitality to close the gap as it is the driving force in the global market (Mok.et.al, 2013). Hospitality require globally think to compete and survive with other organizations in the city, as every hotel today is providing best hospitality to the customers.
In the past five years, there is an increase in the growing rate of visitors coming to London for business visit and holidays, at an annual rate of 9%. Hotels are the popular and main source of accommodations for more than 60% of the foreigners coming to London. Due to increase in the demand of the accommodation, every sector in the hotel industry is expanding which is providing lots of job opportunities to the local residents. Hotel is providing concessions for corporate bookings like management conferences, product promotions, etc. Hotel is making efforts to provide best services to the customers like maintaining hygiene in rooms and bathrooms, best quality of food and providing peace and discipline in the hotel. Keeping the comfort of the customers in mind, hotel provides pick and drop facility from hotel to airport and other tourist places to visit. All the arrangements are done online; it solves many issues of the customer and saves the time of hotel staff and customer both.
Quality of food service is the prime of focus of the hotel it includes food, drinks, decor, furnishing and atmosphere. A healthy meal would keep the customers and the staff healthy, it attracts most of the customers now a days. There are offers by which hotel attracts and encourages new guest to visit the hotel like offer of all inclusive tariffs for room and board, advertising the restaurant services inside the hotel, encouraging the staff to suggest guests to make reservation in the restaurant, introducing a separate entrance, so that it appears not to be a part of the hotel and also by extending the range of food items in the restaurants. There is also the role of HRM to recruit new talented employees who would help in taking the organization to a higher level. Also giving rewards to best performing employee monthly to encourage them to give their best (Page, 2014). Organization and managers in the tourism and hospitality industry, face lots of challenges in developing, recruiting and maintaining a competent, committed and well managed workforce, which is focussed in offering quality services to the customers. As both the sectors are dealing with giving people services and retaining the customers for long time, there is a need of motivated and efficient staff to deliver quality service. If customers are not treated well, there are very less chance of using the hotel service again in future, there is a big challenge to maintain the number of guest check in. Savoy hotel London gives importance to its frontline employees as they are the one who are responsible for handling lots of customers daily. They are one who firstly represents the hotel to the customers, if their way of presenting is not up to the level, customer may feel disappointed.
Integration is the process of combining the resources and sharing of information for achieving the business targets. In integration process, the operating cost is reduced and exploring the scale of economies is usually done. Hotel Savoy can use the different types of integration to achieve the objectives of business by maximising the use of available resources with minimising the cost. Vertical and horizontal integration can be used by the Savoy hotel for expanding and joining the portfolio chain of leading hotels like Marriott International, Oberoi Hotels, Hilton Worldwide, InterContinental Hotel Groups etc. It’s not only that the organisation go for integration for cost cutting but with that it bring other advantages to the travel & tourism organisation and hospitality organisation to design a common goals that would be easy for them to target the specific group by providing customised services (Rodríguez-Antón et.al. 2012). TUI the leading organisation has set an example of integration with the other hotel chain of Hilton, Gruptel etc. and joined hands with more than 150 aircrafts that provides the combined services. The different types of integration that can be used by hotel Savoy:
The organisation that prefers for going globally would be benefitted by this type of integration. Horizontal integration is done when two different organisation join together to offer every type of services that are required to gain the customer satisfaction and achieving the targeted profits. The negative impact of this integration is on small groups of hotels; this is because when two bigger organizations join together to explore their core competencies then smaller sections of hotel suffers and the best survive in this process. With this integration the many employees would suffer as their employment is lost and conflict of interest can also take place as every individual differs in attitude and behaviour. The positive impact would be that if both the hospitality and travel & tourism join their hands the country would be benefitted in terms of larger revenue as this sectors are the economy runners and government too support for this integration as globally (Boella and Goss-Turner, 2013). For example: TUI has joined the hand with First Choice Airways and hotel Savoy to provide transportation and accommodation services as well. Horizontal integration brings positive impact for hospitality and travel & tourism industry by using vast economy of scales.
This is the process in which organisations acquire their suppliers or other peoples in the distribution channels are the vertical organisation. Hotel Savoy can use this integration to reduce the operating cost with the maximum use of available resources. This integration helps to provide all the services at one place by having its importance in hospitality industry. For example: hotel Savoy can integrate the supplier in their functioning by giving them control over inventory of hotel and in distribution channels. With that the organisation can accomplish the scale of economies and can provide the training to the existing employees rather than selecting from outside. The positive impact that would be identified by the vertical integration is that the improvement of services, customer satisfaction, optimum utilisation of resources and building reputation and brand (Kosová et.al. 2013).
Both the integration can be used by hotel Savoy and it would be beneficial in long run. With the use of vertical integration, the hotel will be benefited by proper distribution channels by joining the resources. On the other hand, horizontal integration provides the benefit by integrating two organizations and forming the new one to expand the business globally to the international market.
Impacts of integration:
The success and growing acceptance of the all inclusive business model in UK is largely because of the vertical integration. The vertical integration between the companies would use their secondary business platforms to do market research and listen to the issues of the customer and take feedback about their services and improve if there is any lack. The integration is overall a profitable step for the organization. It would also reduce income inequity between the organizations; both would work together and get equal pay for the work. Hotel which is already a huge organization would take care of the health and all personal issues of both the organization, it would create a sense of equality among the workers. Organization has to sign lots of MOU when they are integrating considering the needs of both the organization (Grissemann.et.al, 2013). In integration sometimes a weak organization gets lots of benefits, and would become a large organization in a matter of time, that’s why integration is beneficial and adapted by many organizations.
I have decided to open the hotel restaurant by evaluating the growth and profits of hospitality organisation. The major ground for entering into the hotel restaurant is due to improvement in the personal disposable income of the individual. The people are ready to spend their money for spending their leisure time with friends and family and to have a quality services with the lavish dinner. In this business the organisation never has to face a critical recession period, a stable income is always assured in this business by providing the efficient services. The hotel will provide the quality services for foods and a beverage along with accommodation services is the mission of the hotel. The renowned chefs and other housekeeping staff are the part of the hotel in providing the eco-green interior keeping in mind the health of children and senior age clients (Murphy, 2013).
I have taken the most attractive location in the central London to attract the foreign visitors and the local visitors having middle upper class income. The organisation needs to consider the taste and preferences of the international visitors and also domestic people for their expectations from hotel restaurant and this can be done through questionnaire and interview. For attracting the larger section of society, hotel will allow various promotional offers, vouchers and membership cards for having the dinners or using the accommodation services for building the brand image of the new hotel. The focus will be also on providing online bookings and services with providing free internet services (Lee et.al. 2015). As the hotel will require huge fund for implementing the desired plan for infrastructure, inventory, staffing and licensing, grading etc they would approach to the financial institution and other secured investors.
Stage 2: Design
At this stage, the hotel will focus on the design and outlay of the hotel like interior and exterior appearance, taste and preferences, culture etc. The purpose of the hotel is attracting the customer at the first visit only. There are various points that are to be considered for fulfilling this objective:
Interiors andexteriors:Interior of the organisation is important as it involves the activity of providing the quality services to the clients and exterior of the organisation attract the client. The interior of the hotel should include all the required facilities that the hotel should have including the accommodation and food services. The colour of the hotel walls should be satisfying to the eye of the customer. Using attractive statues, antiques and painting also should be present at the necessary places. The garden area can be made point of attraction by having variety of flowers that have sweet fragrances and where the visitors can be spend some quality time (Yen and Teng, 2013). The exterior of the hotel should be well structured with proper parking facilities and over sized windows should be placed to have a sunshine and natural lightning and outdoor views and sceneries that attract the customers.
Culture: The organisation should focus on the creative modern culture in the hotel areas like bar, pubs and dance floors etc. As the hotel industry involve large workforce it need to consider the diversity culture and has to manage that the employees are courteous and well disciplined in their jobs while facing the customers. Overall, the organisation should promote strong culture while providing the quality services.
Sustainability:In the dynamic environment, it’s important for the hospitality organisation to remain updated with the technology and customer demand to serve the best quality to the customers. Maintainability and sustainability of the hotel for long run is necessary for the growth of the hotel and this only possible when the hotel is regularly engaged in providing the innovative and creative services for the visitors whenever they visit. By providing the training to the existing and hiring the experienced staff would help to maintain the sustenance (Ransley and Ingram, 2012).
Ambience:This is the centre of attraction for the hotel restaurant industry, if the impression of the hotel is attractive, it will helpful for the organisation to retain the clients for long run along with building and achieving the customer loyalty. The boundaries of the hotel should be lighted with colourful lamps so that the customer can view from the far distance place. The internal aura can be designed by using paintings, artistic things, statues etc. and the living facilities of the hotel should be well designed with proper sanitary facilities in the rooms.
Functional areas:The functional activities in respect of food and accommodation services should be efficient and attractive to make the second visit of the customer to the hotel. The staffs have to perform their services excellent at the first visit of visitor to the hotel. The hotel has to keep in mind that the services are provided on time and no delay should be done on their part and this can be done avoided through just in time method or delivery on time method (Barrows et.al. 2012).
Brand:For building the position in the market of hospitality the organisation need to focus on its brand image of the hotel. For building and maintaining the brand image the hotel would achieve customer loyalty and trust by providing them quality services. The feedback should be regularly taken by the management on the services provided by the hotel through the online websites of the organisation. And if queries are there it should be resolved instantly.
Stage 3: Operations
At this stage, the management performs all the activities that are formulated in development and design stages. Operation department is the key driver that moves the organisation in one direction and makes an effort that the services of the hotel meet the benchmark standard. It converts the raw input into usable output that provides valuable results to the hotel.
Human resource management:The organisation main department is the human resources that perform all the activities of the hotel that are planned. The management is done through the HR head that specifies the roles and responsibilities of every individual in the organisation. The activities are basically divided in cleaning, housekeeping, chefs, front offices services etc (Walker and Walker, 2012).
Recruitment:Recruitment activity is also performed by the Human Resource department. In this the manager hires the skilled and unskilled employees depending upon the requirement and qualification of the candidates. The training and development sessions can be conducted for the employees to expand their productivity and growth. The manager should allot right task to right employee at the right time.
Legislation:For building the brand image and trust of the employee and customers, the hotel need to take into account the rules and regulations framed by the government. By following equality act and non discrimination act, employee’s protection act etc they assure their long term sustainability in the hospitality industry. The hotel also needs to put emphasis on the tax that they are liable to pay like sales tax, service tax etc.
Cultural diversity:In hotel industry, it has a diverse workforce so to maintain the cultural diversity at one workplace is important irrespective of discrimination in age, gender, sex etc. The hotel should lay the policies for maintaining the healthy and ethical culture in the organisation and is required to follow by all employees (Gummesson, 2014).
Thetravel and tourism industry is totally depended on the hospitality industry. Guests coming to visit London want peace, good environment, best quality food and services. So they want good hospitality from the hotel they are staying. It is clearly understood that to provide the tourists with flawless and better experience, the hospitality provision should work hand in hand with the tourism industry. The system believes in win-win situation because both are earning a lot of revenue out of it. The impact of integration is large; it is beneficial to both the organizations. The hospitality job became simpler due to the integration. Visitors are getting lots of benefits due to it, more number of visitors is coming to stay in the hotel and enjoy the hospitality there.
Books and Journals
Barrows, C.W., Powers, T. and Reynolds, D., 2012. Introduction to the hospitality industry (No. Ed. 8). John Wiley & Sons, Inc.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry: A guide to best practice. Routledge.
Gartner, W.C., 2013. Factors affecting small firms in tourism: a Ghanaian perspective. Small Firms in Tourism, p.35.
Grissemann, U., Plank, A. and Brunner-Sperdin, A., 2013. Enhancing business performance of hotels: The role of innovation and customer orientation. International Journal of Hospitality Management, 33, pp.347-356.
Gummesson, E., 2014. Productivity, quality and relationship marketing in service operations: A revisit in a new service paradigm. International Journal of Contemporary Hospitality Management, 26(5), pp.656-662.
Kosová, R., Lafontaine, F. and Perrigot, R., 2013. Organizational form and performance: evidence from the hotel industry. Review of Economics and Statistics, 95(4), pp.1303-1323.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication technologies in hospitality and tourism. International Journal of Contemporary Hospitality Management, 26(5), pp.727-750.
Lee, Y.K., Kim, S.H., Seo, M.K. and Hight, S.K., 2015. Market orientation and business performance: Evidence from franchising industry. International Journal of Hospitality Management, 44, pp.28-37.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality, tourism, and leisure. Routledge.
Murphy, P.E., 2013. Tourism: A Community Approach (RLE Tourism). Routledge.
Page, S.J., 2014. Tourism management. Routledge.
Page, T., 2013. Use of Mobile Device Apps in Product Design. International Journal of Green Computing (IJGC), 4(1), pp.18-34.
Ransley, J. and Ingram, H., 2012. Developing hospitality properties and facilities. Routledge.
Rodríguez-Antón, J.M., del Mar Alonso-Almeida, M., Celemín, M.S. and Rubio, L., 2012. Use of different sustainability management systems in the hospitality industry. The case of Spanish hotels. Journal of Cleaner Production, 22(1), pp.76-84.
Yen, C.H. and Teng, H.Y., 2013. The effect of centralization on organizational citizenship behavior and deviant workplace behavior in the hospitality industry. Tourism Management, 36, pp.401-410.