Hospitality is a commonly used title for diverse segments of the hotel and food preparation businesses and can be explored to cover all the goods and a service offered to the consumer away from residence comprising the accommodation, gaming, eating, amusements, and environment and also includes travel. The hospitality industry is categorized into two types the Tourism and Hospitality. The hospitality industry is a huge industry. It is the rapidly growing area in the economic. It is very essential to work together in order to guarantee success and satisfy their customers. It has been observed that the travel and tourism business when works together with good quality and repudiated hospitality industry makes an excellent combination for business and creates a more successful business than other industries. Hospitality and tourism are dissimilar but ingrates each other. Hospitality Industry gained more significance in managing the public who travel for business or entertainment purpose from one place to another. These industries generally focus on the client’s satisfaction and also include numerous activities like boarding, transportation, etc. The present learning deals with the relationship between hospitality and tourism business. In the next part impacts of integration with the hospitality industry are being discussed. And the last part will build up a plan of hospitality business based project.
1.1 Explain the role of the Hospitality industry within the travel and tourism sector. Discuss the interrelationships between hospitality and wider travel and tourism business.
|Role of Hospitality industry in tourism sector & Interrelationships between hospitality and tourism business.|
|Date: – 16 April 2016|
Tourism is referred to as a tour by an individual for entertainment, leisure or commercial purposes for a specific time period. Nowadays the travel and tourism sector is gaining a lot of significance in providing satisfaction to the clients. The tourists after exploring the market they select destinations according to their interest in spending their leisure time.
Due to the rise in globalization, the hospitality business has emerged itself to one of the majorly developing industry when evaluated from other industries. 33% of total GDP to the economy is contributed by the Travel and Tourism Industry. Approximately 4.5% development has drawn from the 1990s to late 2000. Nowadays various organizations are providing travel and tourism services and also providing hospitality services to travellers. The trip advisory is one of these; it is a website it works as inviting peoples to share their experiences about the places they visited. So this sets the standards and gives information about places across the world which is based on personal knowledge and idea of the travellers.
The hospitality industry includes accommodation services, hotel businesses, cafes, restaurants, catering, etc. the main requirement of the visitor on reaching destination is to search for accommodation. That can be provided by hotels, guesthouses. The hotel staffs are responsible for providing quality service and taking care of a tourist. Accommodation type will be according to the package chosen by tourists. The quality of service varies across the globe (Conrady & Buck,2007).
Restaurants: Restaurants are the places for tourists to eat and drink according to their choice. Every restaurant has different menus, ambiance, services, etc. The choice of restaurants is made according to the recommendation by other tourists or by the employees of the place of accommodation. Chain restaurants supply a sense of financial security to tourists.
(Picture: Image depicting Hospitality Industry Employees)
(Source: All Business Ideas, 2019)
Catering Providers: Catering is the basic and fundamental need in the tourism and hospitality industry. it can be found from hotels to boats, airlines, trains, etc.
Theatres, & Shopping Complexes going to movies is incomplete without having a snack. The big shopping complexes have their own theatres in the house. Just next right to cinema entrances cafes establishments is found from café to fine dining. There are many services such as disco, dinner, parties, etc. are provided at a genuine price which helps in attracting clients and also they please their customers to come again. PKF Hotel experts analysed that this industry also offering affordable travel packages according to the customers’ budget. The hotel industry and the travel industry both are interlinked with each other. Let us take an example, suppose a group wants to have a visit at some geographical areas for this they will contact some specific tour and travel company of countries organization which gives them the best package with all facilities like accommodation quality services (Longhi, 2017)
According to the survey by PKF Hotel experts, hotel provides accommodation and food. So the tour cannot be completed without a hotel and hence we can conclude the connection between the hotel and travel industry. in the TUI Travel PIc is the leading association. It was established in September 2007 by the tourism division of TUI AG. It is Headquartered in Crawley, West Sussex, UK. TUI association is leading with 6 airlines 3000 Restaurants, 1,800 online portals and travel agencies and majorly destination across the world. This company is a public limited company having 76,000 personnel working across 180 countries. Around 30 Million customers already taken its services, TUI served with quality services at a modest budget. In 2008, Airline companies merged with TUI and the new business is taken out to enhance Airline services. This joint venture is also carried out with the hospitality company. TUI offers a number of offers and services like travel packages, food, accommodation, transport that helps in attracting customers which further helped in increasing the growth of an organization. Intercontinental hotel group (IHG) is the major accommodation service provider group in the UK. IHG relates to the hospitality industry in providing a number of services to customers like food and beverages, night clubs, accommodation, etc. Quality food and catering facility tenders are taken by IHG providers to the customers. IHG runs its business more than 80 countries with around 4,600 hotels in which 700 hotels are managed through IHG itself and rest are owned by franchisees. IHG fulfils demands at affordable prices.
The mentioned associations are interrelated in services IHG provides a good quality environment to customers so they feel like their home and desire to visit again. This organization provides budgetary services to the customers to suit their fiscal and motivate them to come again. PKF Hotel experts categorize the service according to their client’s budget like 3 stars, 5 stars, 7 star Inns according to the suitability of customers. The major flaw in the business is acquiring the satisfaction of clients by providing them quality services. Association is interested in attaining the objectives by satisfying the requirements of the customers (Mowforth & Munt, 2015).
Both the above-stated businesses are related to each other in terms of their services. They both consist of a similar consumer base which is dependent on the facilities of both the groups. The TUI group designs the plan by considering IHG services whereas, IHG is dependent on the customers of the TUI group. Both the groups have Robust connection in the terms of services. The business will not be capable of fulfilling the demands of the consumers in the nonexistence of another business. IHG and TUI organizations have to design a contract to which they have to mix up their resources in order to provide quality services to their customers. The merger helps these groups to increase profits and generate a strong customer foundation. TUI offers to pre-book in transportation facilities as well as in hotels to their clients. On the contrary, IHG offers food, accommodation, beverages, and quality services to their clients, when both the business comes together and merges their services the clients will fell extreme enthusiastic to come back because of the quality services provided by them.
From this study, it can be determined that both the groups are interdependent on their facility and they should merge their services to fulfil the demands of their customers. This is the relationship between both the Hospitality and Tourism industry because no one can run the business efficiently without each other.
Introduction: – Integration refers to the method of joining dissimilar parts to make a complete thing. When these parts are joined from one another they become more effective and efficient. The integration process is adopted by companies to explore its operations, market shares and become more efficient. Integration assists an association to work collectively by sharing their resources and clients.
2.1 Analyse the implications of integration to the hospitality industry.
The hospitality industry supervises the integration of resources with vertical and horizontal and integration its impact has been seen in the hospitality industry like organizations are quicker to improve their business and give pleasure to their customers. They are making their universal objectives. Most recent tools and technologies are utilized for appropriate coordination (Mohammed, et. al., 2015).
TUI group is also united with multiple airline organizations, hotels. It personalizes the architecture of TUI to unite current resources. It would affect business exploration and efficient consumption of current resources. TUI group is integrated with other groups in two ways:
Vertical Integration: When an association purchases its supplier in the distribution chain, it is referred to as Vertical Integration. These results in dropping the operating cost and thus make the most of the profit. For example: Suppose a steel manufacturing company in the US, having full power over the delivery chain thus, the steel company puts a financial system of scale at the crown of its program and alert training people within employing rather than outsiders. In this procedure, the TUI group comes into with an agreement with another group that appears in the distribution chain. From this, they together get competitive advantages. Integration facilitates TUI to discriminate its services from challengers. Accurate integration could result in developing market shares and productivity. Vertical Integration also decreases the value of activities that are required to be performed by TUI (Longhi, 2017). It also improves the quality of services afterward Vertical Integration.
TUI management is important to manage and examine activities and scheduling of services. As reported by the market research, Vertical Integration is responsible for entering the TUI in a new market segment. Proper control of functions is the only decision to create successful integration.
Horizontal Integration: when an association, from two various industries, unites together to form a new organization is referred to as horizontal integration. This outcome in exploring the customer foundation, profiting the economies of range and make the most of the profits. The main objective is to boosts productivity and achieves competitive advantage. TUI is concentrating on the worldwide expansion of their field. For this logic, Horizontal Integration is finest to improve capacity and resources. There are various outcomes found through horizontal integration like effectiveness in work at different places is improved. But in the case of TUI, this integration is establishing brand name and picture across various countries. Due to globalization, Horizontal Integration would produce more profits as International Tourism fetch more earnings. Further, it is also observed that integration also combat the interest of the organization. As every organization has their individual vision and mission thus the conflicts may occur during decision making (Ivanov, et. al., 2015). Integration procedure has some advantages such as:
At the initial stage of examination, Integration solves and recognizes all the problems. Because of the ownership of the hotel sequence the transportation charge and other traveling expenditures can be reduced to a huge limit. A proper IT system makes it accessible all the crucial information to the department at only one click. Integration saves the managing cost of an explorer and each and every service required by him is accessible at one place. Vertical Integration helps in managing a variety of tasks as one of the branches of an organization is trading with another branch of an organization, thus all the expenditure regarding managing and transferring charges can be saved.
Some of the implications in the hospitality industry include:
To raise and succeed in any industry appropriately, it is significant to that the entire services supplied by the industry should be alike in all the parameters and also all the regions where this industry opens its branches. For exemplary premier Inn are established their hotels in different nations and also provides the same services in all the branches so this does not lead to raise its bad status and also satisfy their customers (Haven‐Tang & Jones,2012).
Due to the uniting of great organizations, this leads to removal of small organizations like Accor Hotels from the market removing all the staff of smaller organization jobless leaving bad outcome on the economy. Differences may arise among the united organizations because they both encompass different vision and mission and diverse scheduling to chase their mission and complete their vision.
The integration offers a competitive advantage. Uniting the core competencies of two superior companies like Intercontinental Hotel Groups & Marriot International, will help in attracting and satisfying more clients. A monopoly can be developed by supplying the finest which is not simply obtainable, by doing this the firm will acquire more prevailing character in the market. This also leads to reducing the number of choices for clients. Economies of scale can be attained by integration is the most specific required impact of integration (Waligo, et. al., 2013).
The chief advantage of Integration is when two participants unite with each other and comprise lots of profit and benefits to all as consumers will be more contented. By integration, in the market, the monopoly situation will be developed which means a decrease in the number of players in the market. Integration benefits or economy in such a mode, that the operating cost manages the branch individually will be decreased and maximizes the revenues. Integration helps in reducing costs and expenditure and helps in increasing revenues and incomes. The customer foundation can be improved by exploring the business and supplying the facilities in other countries also. Rewards and incentives owed to personnel can enhance extra expenditure. Strategies will be made according to their needs. The integration process can be more proper by set up the planning and authority as well as responsibility connection within an association. The property must be adequately utilized to increase the presentation of organization. This process requires innovative ideas (Hingley, et. al., 2017).
The integration process answers all the problems associated with business administration at the initial phase of spending the funds. Appropriate training and growth of human resources could be handled properly. This method has different benefits includes maintaining dynamic structure and reducing costs in an organization that is ready to change also be called as flexibility. Information technology can also help an organization to offer with productive knowledge required by the supervisors. The company’s website displays all the required important information so the retailers, distributors, clients may know the beneficial situation.
2.2 Discuss how integration has affected a hospitality business
Integration also aids in achieving the existing arrangement of the association. Integration supplies nearly all of the needs of the business in the associations. There are a variety of impacts of integration contains:
Scale economy– As a result of integration operating costs of Heineken and Whitbread is decreased to a certain level. It can also be further said that a travel organization acquires any hotel, the basic investment would be huge.
Quality– Integration mechanism does not promise worth growth it is completely reliant on the feature involved. Sometimes the human resources do not examine the way trailed by new executives as they feel that the new procedure is not adequate (Boz, 2016). Management maintains contact with clients in order to know their accurate demands. It has been examined in Marston’s Plc. that human resources are not capable of adopting new approaches that creates disappointment in-between the staff and further operational difficulties. When the workforce does not understand the working style of other organization then outcomes is improper and uneven communication (Madera, et. al., 2017). These all such things poorer down the quality standard offered by the organization after Integration.
Standardization– it is a very huge and very complex technique as the fundamentals would be simple but the participation of human resources made it complicated. An organization requires being more proficient, hardworking, disciplined to preserve a balanced level in the purpose of standardization (Ateljevic, et. al., 2017).
Cost integration- Vertical and Horizontal Integration agree Greene King to spend a huge volume of capital for their business. It explores the investment of technology to offer quality service. An organization jointly setting the value of packages chiefly includes holiday packages. It is cleared that the hospitality business is influenced by cost integration.
Lack of knowledge- TUI group is integrated horizontally and vertically after integration. TUI penetrated into a new market so many transformations have been taken place as the expansion of new market approaches. The workers of TUI were facing trouble in managing new customers. Management of TUI offers training to have suitable communication with clients to influence them to purchase packages. But the deficient in knowledge makes it unproductive integration and leads to the failure in the merging method (Marasco, et. al., 2018).
Technology- Hospitality industries are too affected by technology integration. Technology integration supports an organization as the communities are gaining information straightforwardly from the websites and having contact independently. The technical transformation is launched for proper functioning for the organization of two associations but lack of knowledge and understanding is influencing the business of hospitality industry as it makes postponement in decision making, less knowledge as well as errors in sharing of information regarding the main purpose of technology is influencing the functioning of hotel industries.
Conclusion : – Integration in any trade can be affected by various problems. Integration helps out in knowing the present situation of the market due to regular and energetic atmosphere the integration must be bound for a methodical order so as to establish our society and most significant condition essentially required by the supervisor to run the business
Cris Crispy Burgers & Veggie Shakes is an American based burger company planning to establish a restaurant because the organization evaluated the scope of development with this industry.
3.1 Develop a Rationale for a selected project clearly justifying decisions linked to the target market.
Cris Crispy Burgers & Veggie Shakes is planning to establish a restaurant. The restaurant will be centrally located so the visitors will not face any difficulty to find the place. The restaurant is centrally located and will be easily accessible from all the areas of the city. This restaurant is a multicuisine that includes all types of food (Asian. Continental and Chinese food). This organization offers discounts, uses sponsorship programs for marketing purposes.
The main concept behind this business is to offer excellent services to customers. Client satisfaction is the main objective of this business. This restaurant also aims to maintain good food quality and explore the business.
According to Olsen(1998), Market Research is the first step before establishing any new business. Market research helps in determining the expectations of customers and also finds out if the targeted customer is satisfied or not.
Target Market includes individuals from all age groups but especially those who look for affordable prices and value for money.
The restaurant is localized centralized so that people can easily approach the restaurant. The investment in the whole business is partly funded by the bank. 40% of the total investment is taken from the bank as a loan.
The restaurant will provide the best quality services to its customers and the delivery of items also there. The management team of the restaurant will take care of many things like maintaining the variety in food items, maintaining the quality, controls and coordinates the activities within the restaurant and most importantly recruit the workforce and allocate them according to their skills.
3.2 Develop a plan for the hospitality business including operational requirements of the business, organizational structure in relation to human resource allocation.
The design of the restaurant refers to the outlook. So impressive designs will help to attract customers. Some of the factors influence the development of this business. Those factors include interiors and exteriors, the ambiance of a restaurant, culture, sustainability and functional areas within the restaurant.
The ambiance of the restaurant will be designed in such a way that it will give a luxurious feel, very simply decorated inside and the management does not need any extra efforts in managing the standard.
Culture refers to identification. This restaurant will have a nice American culture, so people from outside companies can enjoy this culture in this restaurant. And all the staff including managers behaves professionally as they will be trained accordingly.
Interior design will help the customer to attract more. Both interior and exterior design helps in making customers and attracts them. The restaurant will be exclusively designed and very well furnished. To make it look more fantastic historical art frames to be placed on colourful walls.
Cris Crispy Burgers & Veggie Shakes will create functionality areas to interact with customers in the easiest way. Services like online pay and book will improve the functionality of restaurant. Services regarding time and communication will be taken as major to supply satisfaction to consumers.
Sustainability is examined as the most elastic factor in the food business. A Cris Crispy Burgers & Veggie shake introduces exciting offers for the customers to sustain a good position in the market.
Customer flow can be determined by targeting the local as well as foreign customers in order to improve the profit margin. And the customer flow can also be improved by attracting customers with attractive deals.
Brand name Cris Crispy burgers And Veggie shakes are significant to attract tourists and other local customers. Communication tools help in placing the brand name in local markets.
The organizational chart of Cris Crispy Burgers and Veggie Shakes is in such a way that the owner is supervising the general manager. The floor manager, kitchen manager anf the bar manager is supervised by general manager. Further floor manager manages the servers and hosts, Bar Manager manages the Bartender and Bar backs, and the Kitchen Manager manages the assistant manager and Chefs.
The operation phase of the business is committed to applying the design and development part. The operation of Cris Crispy Burgers & Veggie Shakes will affect the outcomes in a restaurant. Productivity can be achieved from good operational planning. Some factors responsible for effective working in the restaurant include:
- Cultural diversity
In the Cris Crispy Burgers and Veggie Shakes, Recruitment designed their own process for recruiting the experienced and trained candidates. The recruiting team also evaluates the number of candidates require in managing the functionality of a restaurant.
Staffing: it is a necessary part of the Cris business to allocate the job profile. Advance training and workshop programs will be scheduled to improve the skills and capabilities of staff.
Staffing plays a major part in client-side communication.
Cris Crispy Burgers & Veggie Shakes will make the legal process of a restaurant to save the rights of employee and customer conflicts. This restaurant will also register the brand information on packing foods. Services will be produced legally to save the rights from being disclosed and misused.
This restaurant will provide a positive culture and there is an equal right for all employees they all will equally learn and grow. Some policies will be created to control diversity. Staff will be trained by mentors to do the job as a team.
Bad hiring in the organization is more problematic during hectic holidays. Employee Departure problem can be faced any time and another feature is seasonal or temporary hires that leaves before the hectic holidays. Functioning with recruiter can help in eliminating these types of problems. Always sure on the hiring if it is temporary, permanent or seasonal.
From this idea, it can be concluded that Cris Crispy Burgers & Veggie shakes are an American Based burger Company that is offering quality services and attractive deals and discounts to attract and satisfy their customers. Development of business includes management, market, target market helped in recruiting the staff, knowing the customer nature, and determining the satisfaction of customers from products and services. Ambiance, as well as the interior and exterior design of the restaurant, helped in attracting local as well as foreign customers. Thus cultural diversity offers a positive environment among employees and legislation protects the rights of all the employees from exploitation thus they both play a significant role in this organization.
The hospitality industry is a very large industry across the globe & also plays a specific role because it provides many facilities like restaurants, bars, accommodation, fitness and many more. In the hospitality and tourism industry, an individual travels only due to a number of the reason being a pleasurable time, leisure or business purpose. He would like to take a trip only when he gets these three activities like sleep, munch, and fun on the whole. The main purpose of the travel and tourism industry is to provide quality services and satisfaction to the customers. If the IT sector is used properly in the travel and hospitality industry, this may also generate revenues for both the industries as people make use of the internet facility to concern about the packages and additional benefits. So the IT industry also offers an edge to the business for their booming business.
If the hospitality industry and travel and tourism industry join hands together this will outcome in a victory position for both the industry as at last in the end they equally gaining profits and income from the consumers.
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