Delivery in day(s): 5
Diploma in Travel And Tourism
Unit Number and Title
Unit 12 Interrelation Hospitality Industry and TT
The interrelation hospitality industry and travel tourism delves with the aspect of hospitality provision in the travel and tourism sector where the interrelationships between the hospitality and wider travel and tourism businesses are being discussed. Also, the implications of integration to the hospitality industry are being analysed. Along with that, the ways by which integration has affected a hospitality business has been discussed. Moreover, a rationale for a selected project has been developed that will clearly justify the decisions related to the target market as well as a plan has been developed in respect of the hospitality business that takes into consideration the functional needs of the organizational structure of the business regarding the allocation of human resources.
The hospitality sector mainly comprises of hotels, restaurants as well as theme parks and takes into consideration the aspect of providing services such as food, drinks, accommodation as well as other related services for the customers to feel relaxed as well as rejuvenated, such as swimming, spas, salons, gymnasiums and so on. The major focus to deliver such services is ensuring that a customer is having complete satisfaction by receiving services of better quality, whereas tourism takes into consideration the aspect of a customer travelling from one location to another location. This travelling might be for the reason of recreational activities as well as business purposes and occurs for a precise time period that mostly takes into consideration car rentals, railway services, airline services, travel agents as well as tour operators. (Furnham, 2012)
There is an interrelation between the hospitality sector as well as the travel and tourism businesses for providing enhanced services for the customers as well as for providing improved satisfaction for the customers since obtaining of every service by the customer takes place at a single contact point. The two sectors are working in harmonization with one another having a common objective that is associated with the generation of increased scopes for employment and also assistance in the country’s economic growth. The travel and tourism industry is offering approx. 255 million jobs internationally as well as contributing approx. 9% of GDP to the UK’s economy. (Lind, 2014) The government is active towards the implementation of the policies in relation to the travel and tourism legislation but the private sector establishments have the requirement towards the running of the hotels, airlines, airports, cruise lines, as well as the functioning of the travel agents as well as tour operators for making use of the countries’ potentiality associated with travel and tourism business.
The interrelationship amongst hospitality as well as wider travel and tourism businesses are mentioned as under,
For evaluating the amalgamation amongst hospitality and travel and tourism businesses further, there have been the selections of two hospitality establishments that are Savoy Hotels as well as Hotel Ibis, London. Savoy Hotel is having a chain of hotels internationally and is a famous brand in the hospitality industry having a rich experience of many years. Savoy hotel is offering luxurious services for the customers. The hotel is famous for its pioneering approach regarding products as well as services by providing smart designs, pioneering concepts as well as bona fide assurance as well as hospitality regarding the customers. The Savoy Hotel is having its presence in various places across different countries. (Lind, 2014) The hotel’s rooms are having an operational design that has attentive facilities having the alternative towards the customization of the room according to the choice of the customers prior to their checking into the hotel.
Along with the facilities for accommodation, Savoy Hotel is also offering food as well as beverages and also different services such as beauty salons, spas, gyms, as well as activities for leisure in respect of the kids. The Savoy Hotel is also providing certain facilities particularly in respect of the business customers that comprises of the meeting rooms, conference halls, as well as latest developments associated with the technological aspects. (McDaniel, 2011) The main aim of the Savoy Hotel is to provide complete satisfaction for the customers as well as ensuring that the overall experience of the customer from the moment the individual is checking into the hotel to the moment the person is checking out should be thoroughly pleasurable. For offering a complete range of customer services, the Savoy Hotel is integrating with different hospitality establishments. The Savoy Hotel has collaborated with various airline organizations such as British Airways, Easy Jet as well as Ryan Air. There has also occurred collaboration of the hotel with various travel agencies as well as tour operators like Thomas Cook, TUI, My Travel, car rental companies and so on. The Savoy Hotel is mostly situated at strategic places that are providing a scope to the hotel towards entering into a healthy association with different establishments that is offering services to the customers. The Savoy Hotel is also having a better collaboration with the airlines as well as companies offering car rental services.
The other hospitality establishment that has been taken into consideration is the Hotel Ibis that is situated at the financial heart of the London City. The hotel is having an easy accessibility to the Liverpool station and is situated close to various corporate establishments as well as business houses. The Ibis hotel is considered to be business hotel and also a luxury hotel that is offering various customer services. The hotel is having approx. 350 rooms. The rooms are having modern amenities such as satellite television, Wi-Fi, and so on. The hotel is offering a comfortable staying experience and is also having a restaurant that offers a brilliant ambience as well as widespread menu that comprises of delicious delicacies from all over the world. (McDonald, 2012) Hotel Ibis is also offering a safe deposit box, fax machine as well as multimedia accessibility. The hotel is also providing an exclusive ’15 minute quality policy’ that states if a customer is not satisfied with the services of the hotel, he might inform the reception regarding his displeasure, and if the problem is not sorted out within 15 minutes of receiving the complaint, then the hotel does not charge any money from the customer.
Therefore, it can be stated that hospitality as well as travel and tourism are not complete without one another and it can be inferred as well that the interrelationship between hospitality and travel and tourism businesses is resulting in more profitable as well as attractive businesses. The hospitality services along with travel and tourism services are making the customers have an enriching as well as satisfying experience. (Palmer, 2011) It is not possible for a customer towards enjoying the travel in the absence of hospitality services such as food, stay, activities for leisure and so on, therefore, the hospitality sector normally makes sure that the customer is having a complete fulfilling experience in respect of travelling that takes into consideration a hygienic environment for living, hygienic food as well as better activities associated with leisure towards absolute leisure of the body as well as the mind. (Palmer, 2011) In the same manner, a customer will be unable to take pleasure in the hospitality experience if the services associated with travel and tourism is not offered. There occurs absolute collaboration amongst the hospitality as well as travel and tourism businesses for ensuring absolute customer satisfaction that consists of offering special tour packages for the customers including facilities for travel, accommodation as well as food and also activities for recreation and so on.
Integration is associated with the aspect of uniting activities of various departments or two or more organizations getting merged. Organizations often adopt this strategic aspect when they are planning to actualize economies of scale for decreasing the functional costs. Integration also assists in increasing the margin of profits through the performance of various actions. The strategic aspect related to integration also assists in increasing the share of the market by enhancing the brand’s presence in the global market. There are two kinds of integration that are considered as vertical integration as well as horizontal integration.
Vertical integration is the method in which an organization purchases its own suppliers or purchases a different organization in the distribution chain resulting in the diminishing of the functional expenses and therefore ensuring profit maximization. For instance, the Savoy Hotel is having its personal travel agency for ensuring that the hotel might be offering additional services towards the customers for ensuring satisfaction to the customers as well as increasing its personal business. (Dwyer, 2012) Horizontal integration is the method in which two organizations from relatively varied industries will be forming a larger organization leading people to the growth in the total customer strength as well as increasing the percentage of profit due to the achievement of the economies of scale. For instance, if Hotel Ibis will do the purchasing of another hotel for increasing the overall customer base and therefore, the percentage of profit as well as have a growth in the hotels’ market share in regard to the entire industry.
The implication of integration to the hospitality industry is as follows,
In respect of the hotel industry of the hospitality business, integration has affected the industry in the following manners,
The project will be based on the small hamburger based fast-food restaurant in UK where the items like hamburger, gourmet burger pan fried dishes, pizzas, coffee, soft drinks will be available. Hamburger is a kind of sandwich that is covered by the ground meat along with the bread roll. The type of meat that is mainly used in UK is the turkey burger, bison burger etc. The fast-food restaurants, cafes, food corners, mobile food vans are the distribution points where this kind of items is available. There are several big chains who are serving these items globally like Mc Donald’s, Burger King, Dominos etc. The restaurants are growing at a faster rate in UK as the trend of shifting from normal fast food restaurants to hamburger based restaurants are observed from the market research. Around 7% of the people of UK have shifted towards the hamburger based restaurants and especially the age group from 16 to 34 shows a rise in preferring theserestaurants around 12% that is significant for the business growth. From the different research it can be observed that the sales turnover of the hamburger based restaurant will increase from 3.2bn pound to 3.8bn pound within the period of 2020 in UK (Dunsby, 2016). Around 1m pound sales has come from this restaurant in UK at the end of the year 2015 and thus predicted a steady growth in the coming years. It has been observed that in UK, the people preferthese items due to the healthier alternative, easy to carry and consume. The children who are coming with their families prefer these items due to the taste and easy availability of several big and small restaurants. The other considerations can be the stable economic situation which will accelerate the growth of the business in UK. For example the reduction in the rate of the inflation from 0.5% to 0.2% will encourage the people to increase their purchase at a reasonable price. Along with that the positive approach by the Bank of England with their monetary policy will definitely bring a flow in the money and that will increase the scope of the business in UK(Gerrard, 2013). Moreover the local suppliers of the beefs and pork are easily available which will help to operate the business in UK and also provoke the customers to consider the purchase. The other favourable factors like easy to make as well as serve will help to maintain a sound margin for this business in UK. It is the favourable market as the students will find this item as a perfect choice to spend their quality time in a hamburger based restaurants with a limited budget and moreover the increase in the number of intake capacities of the colleges will support more customers for the business. As a resident of UK it will help my plan to become success due to the familiarity of the social, cultural and political factors that are related with the decision making process of an organisation. Thus all the positive factors have influenced to consider the decision forselecting the business of hamburger based small restaurant in the market of UK.
The business plan for the small hamburger restaurant in UK will consist of three stages which are shown below:
Stage 1 [Development]
Stage 2 [Design]
Stage 3 [Operation]
The organisation chart will help to clear the structure of this small restaurant
The report has given the essence of the overall hospitality sector and more specifically the business plan that has been prepared at the last of the report based on a small restaurant in UK. The interrelationship with the tourism industry with overall hospitality sector has been discussed at the beginning of the report. The most important part is the business plan which will be introduced with a rationale to select the business, place and target audience for the business. The business plan will give clear understanding about the direction of the business which has included the communication process, relevant target market and profitability factors. The business plan will help to plan the activities which are required for the business and along with those misunderstandings will be removed from the work process.
Boella., M., 2013. Human Resource Management in the Hospitality Industry: A Guide to Best Practice. Routledge.
Brotherton, B. & Wood, R.C., 2015. The SAGE handbook of Hospitality Management. Los Angeles: Sage Publishing.
Daft, R (2015). Organization Theory and Design. Cengage Learning.
Dunsby, M., 2016. Business ideas for 2016: Gourmet burgers. [Online] Available: http://startups.co.uk/business-ideas-for-2016-gourmet-burgers/ Accessed as on 15.10.16
Furnham, A (2012). The Psychology of Behaviour at Work: The Individual in the Organization. Psychology Press
Gerrard, N., 2013. The Big Question: why are burgers fashionable again and why now? [Online] Available: https://www.thecaterer.com/articles/349191/the-big-question-why-are-burgers-fashionable-again-and-why-now, Accessed as on 15.10.16
Harrell D., G., 2011. Marketing Management. Simon and Schuster Pub.
Jain, S.C. and Haley, G.T., 2010. Marketing planning and strategy. Cincinnati South-Western Publishing Company 1985..
Lind, P. (2014). Monitoring Business Performance. Routledge
McDaniel, C. (2011). Essentials of Marketing. Cengage Learning.
McDonald, M. (2012). Market Segmentation. John Wiley & Sons.
Palmer, A (2011). The Business Environment. McGraw-Hill Higher Education.
Phillips, P.A., 2015. Strategic planning and business performance in the quoted UK hotel sector: results of an exploratory study. International Journal of Hospitality Management, 15(4), pp.347-362.
Wacksma., B., 2014. Connected by Design: Seven Principles for Business Transformation Through Functional Integration. John Wiley & Sons