Unit 12 Hospitality Provision in TT Sector Assignment

Introduction

The hospitality provision in TT sector assignment is based on the concept and principles of hospitality provision in the travel and tourism management sector. This would be done in the form of a report. There would be 3 tasks in the entire assignment. Task 1 would be based on the selection of the two hospitality organizations and then discussing on the interrelationships between hospitality and the wider travel and tourism business. The description of the business, products and services would also be provided in this task. Task 2 is an insight on the issues of the integration that exist in the hospitality industry. We will discuss on how these issues of integration affect the hospitality business and their implications. Task 3 will project the plan for hospitality business in terms of the various operational requirements and the organizational structure with respect to the human resource allocation in the business. It will also develop a rationale for the selected project clearly justifying decisions linked to the target market. The concept on which the entire assignment would be discussed is based on the provision of the hospitality in the travel and tourism management and all the issues that arise with respect to them. The implications of the integration of the hospitality and the travel and tourism sector will also be analysed and stressed upon.

TASK 2

This task will discuss on the various issues of integration that exist in the hospitality industry and sector. We will also study on the implications of the integration that exist for the hospitality industry. It will also analyse on how the integration will effect on the hospitality business.

P 2.1 Analyse the implications of integration to the hospitality industry.

There are majorly two types of Integrations in the Hospitality Industry: Vertical Integration and Horizontal Integration. Horizontal Integration refers to a process whereby there is development of a single management or the ruling management that takes care of the merger of the different firms and the companies. On the other hand the Vertical Integration is the type in which different management merge together producing different products as well as the services that are also joined and merged together. Both the kinds of integrations are being observed and handled by the Hospitality and Travel and Tourism Sector. It has been seen and realized that integration of the either types decides the success of the company in terms of its business model. Both the types of integrations have their own effect on the hospitality and the tourism sector (Johns, 1993).
The companies have been integrating so as to gain the benefit from each other. There are many smaller companies which are getting integrated with the bigger and the larger corporations so as to form a big name. They would like to expand and develop a better business model so that they could gain benefit from various organizations. It has been observed that the most widely used and followed kind of integration is the Horizontal Integration. Integration will help in the greater expansion and the planning of the company in various other sectors as well so that comprehensively the company can offer various packages for the accommodation, travel, tourism and the flight operations. Integration is important as it determines the future or the fate of the company in the future in terms of the liking and preference for its services and products. It will increase the chances of growth and development of the company in hospitality and comprehensive operations for a longer run. “The dynamic resort, which features the largest ski and snowboard operation in Ontario, more than 900 luxury accommodation units, an array of dining and shopping options, amongst seasonal recreational attractions and 37,500 square feet of conference space, migrated to Cenium based on five main goals:

1. Reduce labor costs,
2. Lower vendor maintenance fees and server storage costs,
3. Work with only one solution vendor vs. 17+,
4. Implement system upgrades across the property automatically and simultaneously direct from one source, and,
5. Provide a better experience for guests and staff”  (King et al, 2003).

P 2.2 Discuss how integration has affected a hospitality business.

The effects of the integration could be seen and analysed through the organizations that have various companies under their supervision and control. It becomes very difficult to manage and control all the aspects of the various firms together. It could be seen that due to the process of vertical integration, these firms would come and under name of a single organizations but would still be controlled, managed and operated by various outlets. This therefore creates a lot of problem for the company. This is because even if a single business segment or the area does not perform well then all the areas and the segments would be affected as a complete brand reputation would be hampered and affected by it. Each andevery unit has to suffer due to suffering or the crisis situation even in the one segment (Weeks & Crouch, 1999).
Integration is affecting the hospitality business of an organization as when all the companies integrate and work and there is any credit then it goes to the main organization with which all have integrated and merged together. For example say Ryan Air and Easy jet decide to integrate and merge then even if there is problem with one airline then definitely there would be problem in another airline too. It could easily be seen that although integration helps in the merger and the joining of the positives and benefits of both the organizations yet their negatives and the side effects also get together and united. It does not mean that companies will stop merging or integrating with each other. It is essential that before merging or the integration, the mapping of the competencies and a single business model has to be derived that will help both the organizations in successfully working together. So the organizations are getting involved in doing the horizontal integration only. They are being controlled and operated by a single management and there by the products and services are expanded and developed with the locus of control. On the other hand Vertical Integration leads to the major problem where there are many management and different perspectives and areas of locus therefore concentrating on certain specified product and its idea becomes very difficult (Getz, 1986).
The level and the scope of integration have expanded in the last decade. This is due to the reason that hospitality sector with travel and tourism has gained a lot of importance and people are now no more making the domestic travelling rather are being encouraged for the international travel as well. The customers therefore look forward for the comprehensive services in terms of the hotels, accommodation and tourism and travel packages with flights inclusive in them. This cannot be done on a larger scale by the domestic or small companies rather there is a requirement of tie up or a merger with the international travel or hospitality company so that the scope of the services is being expanded. This helps the companies in gaining an edge in terms of the competition, promotion and the costing of the package for hospitality for the consumers. There are now-a-days more groups who have started with one business but have also merged with other companies and formed the entire group so that all the deals with efficient package is being offered to the customers or the passengers. This could be explained with the help of the example of the Virgin Group. It has integrated itself with not only the airline and flight operations but also tie up with various hotels for accommodation, travel and tourism for the development of various packages.
Integration helps and works effectively when many areas and different sectors have to collaborate together to yield the benefit to the consumers. This way one company manages various operations under a single management and helps in giving and offering the best packages in terms of travel and tourism and hospitality. It is always advisable that based on the company operations and business model a specific business model has to be selected and operated upon.
“Both hotel providers and travel agency distributors face a similar challenge of having multiple IT systems that perform different functions. This makes doing business as usual more complex than ever.Whether they are single-location properties or the world’s largest hotel chains, hoteliers are looking for new solutions to help them gather better guest intelligence, compete in the market, and gain control of distribution on a global scale. Most importantly, they require IT solutions that enable them to manage yield and maximize profitability” (Inskeep, 1991).

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TASK 3

In this task we will present and project a plan for the hospitality business in terms of the various operational requirements and the organizational structure so that proper resources could be allocated to the various businesses needs and it would be linked with the target market.

P 3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market.

This sub-task would be looking and focussing on a specific hotel in the hospitality sector. The target market for this hotel would be decided on the basis of the location and the suitability of the hotel for the various customers. Based on the destination and the location of the hotel, the costing and the allocation of resources based on the number of people who could be accommodated would be decided and selected. This could be explained with the help of an example say the hotel may be a beach side resort with all kind of facilities in the city which is popular for the beaches. This hotel would always be occupied and have higher costing in comparison to the small hotel which is not present near the beach.
In this case the hotel would be choosing both the genders that is males and females. It would look for the people with the middle and upper middle incomes who would like to avail all the facilities that are present in this hotel. There are many airlines who would be offering the flight packages with a deal that may be accompanied with this hotel stay. The hotel will surely tie with these airlines as they would offer volume business to these hotels. These airlines with show a tie up that they have with this specific hotel. It is quite sure that in case the customers would like to book the hotel by them then it will be costing more whereas on the other hand if the same is continued with the help of that airline then the comprehensive package would be comparatively cheaper (Lam & Zhang, 1999).
These packages sometimes act and prove to be quite beneficial. The customers here not only the save money; but also they get the packages with all the benefits under one roof of same company. These companies by providing best services to the people attract them and their loyalty towards the brand. The location, size and the quality of the hotel plays a great role in the determination of the kind of business that the hotel would generate in terms of attraction of various customers and the revenues gained by business with them. Based on the kind of the services, location of the property and the services, the target market and the costing of the various services could be decided.
“Research has shown that the Experience Seeker has a number of key ‘wants’ to satisfy their travel experience:

• Authentic personal experiences;
• Social interactions;
• Meeting and interacting with the locals;
• Experiencing something different from their normal day-to-day life;
• Understanding and learning about different lifestyles and cultures;
• Participating in the lifestyle and experiencing it, rather than observing it;
• Challenging themselves – physically, emotionally and/or mentally;
• Visiting authentic destinations that are not necessarily part of the tourist route; and
• Exposure to unique and compelling experiences.

Typically Experience Seekers are more likely to be:

• Experienced international travellers;
• Opinion leaders;
• Open minded; and
• Selective in their media consumption” (Brotherton, 2013).

P 3.2 Develop a plan for hospitality business including the operational requirements of the business organizational structure in relation to human resource allocation.

The hotel that has been providing the hospitality business has to have the good and classy look that will attract more and more customers towards it. There should be various operational benefits that should be offered by the hotel so that customers feel delighted and satisfied staying at the hotel. Each and every room should have the required facilities like balcony, television and rest room arrangements. The kind of target population will determine the kind of look that should be given to it.  The kind of people who have been living or rising nearby will also determine the kind of structure and the operational requirements that the company may have at present in the future (Kotler et al, 1999).
It is essential that certain organizational structures have to be determined so that maximum number of customers is targeted. The various kinds of structures are: Bureaucratic structures, Functional Structures, Pre-Bureaucratic Structures, Matrix and Divisional Structures. Bureaucratic Structures are chosen mostly for the larger organizations; Pre-Bureaucratic Structures are comparatively used for the smaller organizations so that their development and growth is managed well. Functional Structures are the ones which are based on the specific functions and the categories like: Research and Development, Finance and marketing etc. Matrix is a structure where one specific manager would be reporting and coordinating with the various other managers and seniors in the company (Kotler et al, 1999). This could be explained with the help of an example like marketing manager has to coordinate with the production, finance and the operations department in order to sell the product well in the market. Divisional Structures are divided into market, geography and the product of the company and based on them, the various divisions are being developed (Litvin et al, 2008).
The operational requirements for the organizational structure of the hotel would be focussing on the matrix and the divisional structures. This would help them in defining the availability and allocation of the various resources. It is very important for the hospitality sector to declare the product, its geography and the market so that the specific market and the hospitality operations could be clearly specified.
The company in the hospitality cannot function on its own rather has to survey the emerging needs and the requirements of the company. This would help them in specifying and declaring the areas and the functions that have to be followed and put into practice. Apart from this the human resource department that is operational in the hotel has to look forward for the specific needs of the organization. It has to identify the areas that the company has to work upon so that its business is beneficial for the organization. Human Resource function works as the strategic business partner for the hotel so that it gains advantage in terms of the hotel operations, its employees welfare and the business expansion and developmental plan. The company has to be committed towards the employees and even towards the customers so that there is succession in the business of the hotel. It has to design and develop its operations in such a way that they expand and design them as per the market requirement and even the demands and needs of the customers (Weeks & Crouch, 1999)
In terms of the structure, the integration of the business with many areas and categories would help in the expansion of the business of hospitality with various destinations and the kind of services in the hotel. Unless the business and provision of services and benefits in this sector are as per the requirements and needs of the consumers, the companies in the hospitality will not be able to coordinate well with the travel and tourism sector thereby initiating and coordinating well in the business.
Hotel companies are very proud of their standard of operation procedures, making them the cornerstone of their business. These training and coaching programs are very positive and necessary to learning, yet this is not the type of learning we are referring to in this article. Know-how learning and empowerment are both related to front-line employees who are "Masters" at what they do. My approach raises two fundamental questions: (1) do we seek to adjust our working procedures to guests" feedback or the new reality, since guests and markets are constantly evolving? And (2) do we encourage front-line workers to analyse their work and improve hotel´s procedures, thus improving the value to guests or making hotel operations more efficient? “The dilemmas that are faced in handling of manpower and hospitality are:

• Understanding the needs of a broad employee group, from hourly workers with tip credit eligibility questions to high level accountants ensuring Sarbanes-Oxley compliance
• How hospitality managers who must act as one-person HR departments can make effective decisions and understand the consequences to themselves, their workers, and employers
• Working with labor unions in the hospitality industry using the labor-related legislation that affects the industry
• Managing employees in a global hospitality enterprise (Getz, 1986).

Conclusion

Hospitality industry and travel and tourism have been integrating mostly with the horizontal integration that helps in the expansion of the company in terms of various and many kinds of products and services. Hospitality industry has been rising and expanding its presence in various destinations and now airlines are no more in the flight business rather relating and associating with the hotel and travel package industry. There are many domains in which the hospitality industry has been providing a lot of provisions like: bars, restaurants, holiday centres, hotels, airlines, tourist’s destinations and modes of the transportation. There is a closed relationship between the hospitality industry and the travel and tourism sector. This is because in case there would be high level of hospitality then the people would be attracted more towards the airlines and the various important and hot destinations. It is advisable that the companies should develop, grow and expand its operations in various categories, segments and the areas. This would help the companies in integrating their business and expanding their base and presence in the entire world. The hospitality industry is now very important to take care of the kind of services that it has been offering to its various customers and the clients. This would help them in attracting the customers and making them loyal to the company operations and facilities. Therefore it is essential that the companies integrate their businesses in such a way that they get the volume of business, sales, revenues and the profits (Litvin et al, 2008).
In looking at various industries, barriers to entry by newcomers and competitive advantages between current players are very important. Among other things, hospitality industry players find advantage in old classics (location), initial and ongoing investment support (reflected in the material upkeep of facilities and the luxuries located therein), and particular themes adopted by the marketing arm of the organization in question (for example at theme restaurants). Also very important are the characteristics of the personnel working in direct contact with the customers. The authenticity, professionalism, and actual concern for the happiness and well-being of the customers that is communicated by successful organizations is a clear competitive advantage (Getz, 1986).

References

Buhalis, D. 1998. Strategic use of information technologies in the tourism industry. Tourism management, 19(5), 409-421.
Brotherton, B. (2013). Hospitality and hospitality.In Search of Hospitality.
Buhalis, D., & Main, H. 1998. Information technology in peripheral small and medium hospitality enterprises: strategic analysis and critical factors. International Journal of contemporary hospitality management, 10(5), 198-202.
Getz, D. 1986. Models in tourism planning: Towards integration of theory and practice. Tourism Management, 7(1), 21-32.
Inskeep, E. 1991. Tourism planning: an integrated and sustainable development approach. Van Nostrand Reinhold.
Johns, N. (1993). Quality management in the hospitality industry: Part 3. Recent developments.International Journal of Contemporary Hospitality Management, 5(1).
King, B., McKercher, B., &Waryszak, R. 2003. A comparative study of hospitality and tourism graduates in Australia and Hong Kong. International Journal of Tourism Research, 5(6), 409-420.