Unit 12 Hospitality Provision in TT Sector Assignment - TUI AG Group

Introduction

The following Unit 12 Hospitality Provision in TT Sector Assignment TUI AG Group deals with the importance of the hospitality sector or the industry for the travel and tourism industry. The entire concept of the hospitality industry and its relationship with the travel and tourism industry has been discussed in detail in the following report. The report further deals with the analysis of the strategy of integration which is mostly associated with the famous company the TUI AG group. A hospitality business plan is also provided in the report which helps to improve one’s understanding regarding the business strategy of the hospitality industry.

Task 1

P1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses

The Hospitality Industry has been gaining popularity and is even growing significantly in the years. It is mostly a crucial part of the hospitality industry and consists of a broad category of fields including lodging, transportation, etc. Hospitality basically refers to the relationship that gets formed between the hosts and the guests in which the g\hosts are responsible for providing the desired services to the people, receiving or welcoming them, entertaining them empathising with them in order to recover the deficiencies in services provided if any ,etc.   It is rightfully considered to be a multi-billion dollar industry that is mostly dependent on the disposable income of the customers or the consumers and also on the availability of the leisure (Shaw, Bailey and Williams, 2011). It employs a huge number of people and also contributes significantly towards the economic growth of the entire world and the different countries which are a part of the same. Furthermore two of the very crucial aspects of the industry includes competitive advantage of the firms and the barriers to entry for the new comers in the industry, as it is considered to be one of the most competitive as well as profitable industries of the world.

Tourism is all about travelling to different locations or destination with the aim of spending leisure time with the family and friends. However apart from spending leisure time people do visit to new places for business, education, sports event or a religious event and other such purposes. The hospitality industry is a significant part of the wider travel and tourism industry which indeed is one of the most profitable industries of the world (Ip, Law and Lee, 2011). The travel and tourism industry can be majorly divided in to five different segments which can be stated as below –

• Lodging Operations – It is considered to be one of the largest segments of the travel and tourism industry. Operations concerned with lodging predominantly include hotels, resorts, Conference Centres, Bed and breakfast, etc. It is also related to the hospitality industry and is considered to be the significant part of the same as well.
• Transportation Services – It is also a crucial part of the travel and tourism industry as without transportation services it is impossible to travel to different places across the world or within a particular location as well. It mostly includes Airlines, Railways, ships, buses as well as other modes or public and private transports as well. Transportation services are also significant part of the hospitality industry as well (Williams and Shaw, 2011).
• Operations related to Food and Beverages – Such operations are mostly inclusive of vending machines, catering, retail stores, bars, banquets, etc.
• Retail Stores - Although they are crucial part of the travel and the tourism industry but they are not a part of or rather are not related to the hospitality industry. They include gift shops, markets, handicraft shpts, art shops, etc.
• Activities – Travel and tourism industry involves a number of different activities all of which are associated with different purposes. Some of the important activities related to the travel and the tourism industry includes entertainment, recreation, business, ethnic festivals, sporting events, etc. Such activities are also related to the hospitality sector and service personnel associated with such activities must be trained in hospitality in order to provide delightful experience to the customers so that they can make repeated visits (Tung and Ritchie, 2011).

The main objective of both the industries is to ensure customer satisfaction and the customers of both the industries as mostly those people who are away from their home and expect warm treatment that they usually get in their home as it is human psychology to get attracted towards the homely environment. The hospitality sector is also considered to be one of the most imperative service providers for the international as well as the domestic travel and tourism industry. Moreover the services provided by the hospitality industry prove to be helpful in improving as well as creating a delightful overall experience for the customers of the travel and tourism industry or the tourists (Moutinho, 2011). This ultimately leads to customers’ satisfaction, ensures word of mouth publicity and also proves to build a strong as well as positive image of the brand associated with the travel and the tourism industry. Thus it can be said that the hospitality and the tourism industry are dependent on each other and also derives benefits from each other as well.

Travel and the tourism industry mostly employ those people who are well trained in hospitality so that they can efficiently provide the desired services to their guests or the customers. Moreover the companies related to the hospitality sector gain advantage by getting associated with a tourism brand and also get the opportunity to serve at different events related to conferences as well as other industrial and personal and professional events. In addition it can be said that tourism industry is largely dependent on the hospitality industry as they need accommodation, food and beverage services, cafes, pubs, etc. which are provided by the hospitality industry. Moreover the service personnel trained is hospitality is also essential in the tourism sector to attract and retain customers as well as to ensure customers loyalty. Tourism of a particular industry is interrelated to the hospitality industry of a particular destination and as such increase the number of tourist will prove to increase the revenue for both the industries and a decrease in the same will be harmful for both of them. The interrelationship between the hospitality sector as well as the travel and tourism industry can be further explained or rather highlighted by the following –

• Package Holidays – Hospitality plays a crucial role in the package holidays which are provided by the tour agents.  The rates of the packages or the different types of packages are dependent on the hospitality services provided to the customers with respect to different packages. The hospitality services include, hotel stay which may be 5 star, 4 star, deluxe, etc depending on the preferences and the spending facilities of the customers. It may further include transportation and other recreational activities deepening on the choice and the type of package offered by the tour operators. 

A collaborative effort of both the industries is further seen in the business travel, conferences, events, etc. Therefore it can be said that hospitality industry is very significant for the travel and the tourism industry not only for generating profits and revenues but also for satisfying the customers and for ensuring their loyalty as well and in turn fulfilling the main objective of the travel and tourism industry.

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Task 3

3.1 Develop a rationale for your chosen project, clearly justifying decisions linked to target market.

To develop a rationale regarding the hospitality business that will provide clear justifications to the decisions related with the market that is being targeted, the below mentioned aspects are to be considered which are,

• Idea – The planning has been done regarding the opening of a hotel-cum-restaurant business. The location of the new hotel will be in the UK because a recent study has revealed that there exists an increased demand for hotel-cum-restaurant business from the rising strength of tourists who visit UK every year. This depicts the fact that there is the existence of an immense scope for this kind of businesses. (Furnham, 2012) The major focus of the hospitality business will be to focus on the tourists coming from middle class backgrounds, as well as providing them the various services at a diminished price so that they can enjoy their stay in UK that is within their budget.
• Market Research – The entire method requires an extensive research of the market which should be done before the start of the new business and its result is very significant in deciding the business’ success. In this regard, the market research will involve the aspects of business of filling of questionnaires by different people as well as to conduct personal interviews with the people who will use those services. This will support towards the estimation regarding the expectation of the consumer and post that the planning associated with service can be actualised. This commences with the finding of the demand for the service whose planning is being done to offer it at a price which is reasonable. In this respect the size of the sample would be 2000 random tourists who are visiting the UK. (Moutinho, 2011)
• Target Market – The tourists coming from middle class backgrounds, who will visit the UK, are being considered as the target market, since they do not possess the affordability of choosing deals having higher packages. As a result, the target market will be considering those tourists who are more inclined towards taking tour packages having reasonable prices.
• Size of business & location of target – The geographical location that is being targeted is UK where a large section of tourists will be touring who come from middle class background and in respect of the business, the size of the rooms will be 300 rooms that have facilities of AC and 200 rooms which do not have AC facilities. Along with this, the hotel will also offer food related services as well. (Furnham, 2012)
• Investment – A specific amount of investment will be made by making investments personally and for the remaining amount, loan will be taken from a bank. The major share of the investment will be made by taking loan from the bank.
• Licensing – Each and every scenario related with the new business will be considered in a proper method which will be following all the legal scenarios that takes into consideration various kinds of licensing that are required to get conducted in respect of starting and smooth running of the business.

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

Plan for hospitality business

Development Stage

In the Idea Stage, the planning has been done regarding the opening of a hotel-cum-restaurant business. The location of the new hotel will be in the UK because a recent study has revealed that there exists an increased demand for hotel-cum-restaurant business from the rising strength of tourists who visit UK every year. This depicts the fact that there is the existence of an immense scope for this kind of businesses. The major focus of the hospitality business will be to focus on the tourists coming from middle class backgrounds, as well as providing them the various services at a diminished price so that they can enjoy their stay in UK that is within their budget. In the Market Research stage, the entire method requires an extensive research of the market which should be done before the start of the new business and its result is very significant in deciding the business’ success. In this regard, the market research will involve the aspects of filling of questionnaires by different people as well as to conduct personal interviews with the people who will use those services. This will support towards the estimation regarding the expectation of the consumer and post that the planning associated with service can be actualised. (Fernando, 2011) This commences with the finding of the demand for the service whose planning is being done to offer it at a price which is reasonable. In this respect the size of the sample would be 2000 random tourists who are visiting the UK.  In the Target Market stage, the tourists coming from middle class backgrounds, who will visit the UK, are being considered as the target market, since they do not possess the affordability of choosing deals having higher packages. As a result, the target market will be considering those tourists who are more inclined towards taking tour packages having reasonable prices. In the Size of business & location of target stage, the geographical location that is being targeted is UK where a large section of tourists will be touring who come from middle class background and in respect of the business, the size of the rooms will be 300 rooms that have facilities of AC and 200 rooms which do not have AC facilities. Along with this, the hotel will also offer food safety related services as well. In the Investment stage, a specific amount of investment will be made by making investments personally and for the remaining amount, loan will be taken from a bank. The major share of the investment will be made by taking loan from the bank. (Mowforth, 2015) In the Licensing stage, each and every scenario related with the new business will be considered in a proper method which will be following all the legal scenarios that takes into consideration various kinds of licensing that are required to get conducted in respect of starting and smooth running of the business.

Design Stage

The two most important aspects in respect of the hospitality industry are ambience as well as interior especially in respect of hotels, spa, restaurants etc. As a result, regarding the new hotel-cum-restaurant that is supposed to initiate its business, a careful and attentive handling of the designing and interior needs to be done because it will be playing a major role for getting as well as sustaining the growing demand of providing better service to the guests who will be boarding the hotel. (Fernando, 2011) Due to the concentration on the tourists who are coming from middle class background, the designing of the hotel will be not very much extravagant but it will be decent so that the tourists might have a good experience of staying at the hotel. There should be appropriate positioning done, so that more and more tourists coming from middle class backgrounds might get attracted for staying in the hotel. To provide improved service, the employees should receive proper training so that they will treat the guests with appropriate respect, show proper manners, as well as behave with them politely as well as in a friendly way. In this way, by providing better services there will be retention of the clients as well.

Operational Stage

The various processes by which the handling of the operations will be done takes into consideration the operational stage, that includes which person will be handling what, the various departments that are needed and many more. Therefore, the initiation will be with recruitment as well as staffing. As the new hotel is considered to be a hotel-cum-restaurant, so there is the need to have 2 front office executives for the hotel and 1 receptionist for the restaurant. There will be around 10 waiters for the restaurant and 20 house-keeping staffs. There is also the need to have four managers, two each for the hotel and the restaurant. (Lussier, 2011) There should also be 4 guides who will take care of the tourists by taking them to visit different places of tourist attraction. There is also the need to have 6 to 7 qualified chefs who possess the ability for preparing various kinds of foods for the guests who will come to the hotel as well as the restaurant.

In this respect, it is required to consider the qualification of the different staffs who will get recruited for the new hotel. The front office executives and the receptionist should possess better interpersonal skills as they will be having face-to-face interaction with the guests. The chefs should have better skills of cooking along with a hotel management degree from a reputed institute. The waiters and the house keeping staffs should be at least graduates and the managers should have a degree in management. The guides are also required to have good communication skills. In respect of all these, there should be the proper human resource of management for the recruitment of employees, to provide them with proper training as well as to resolve any kind of conflict that will arise between them. (Lussier, 2011). There will be various promotional activities that will take place with the help of radio, print media, and many more. An official page for Twitter as well as Facebook will be opened in respect of the new hotel. Last but not the least, the price of the hotel will be kept reasonable keeping in mind the tourists whom the hotel is targeting are coming from middle class backgrounds.

Conclusion

This Unit 12 Hospitality Provision in TT Sector Assignment TUI AG Group mainly deciphers the various attributes regarding the hospitality provision in the travel and tourism business. It has been observed that major three reasons for which various individuals travel are associated with the aspects of leisure, recreation and business. As a result, to provide the tourists with an improved and flawless experience associated with travelling, there is a need for the hospitality as well as tourism industry to function in a collective way.

References

Fernando, A , 2011. Business Environment. 
Furnham, A , 2012. The Psychology of Behaviour at Work: The Individual in the Organization. Psychology Press
Ip, C., Law, R. and Lee, H.A., 2011. A review of website evaluation studies in the tourism and hospitality fields from 1996 to 2009. International Journal of Tourism Research, 13(3), pp.234-265.
Lussier, R , 2011. Management Fundamentals: Concepts, Applications, Skill Development. CENGAGE Learning
Moutinho, L , 2011, Strategic Management in Tourism, CABI.
Mowforth, M & Munt, I , 2015, Tourism and Sustainability, Routledge.
Shaw, G., Bailey, A. and Williams, A., 2011. Aspects of service-dominant logic and its implications for tourism management: Examples from the hotel industry. Tourism Management, 32(2), pp.207-214.
Tung, V.W.S. and Ritchie, J.B., 2011. Exploring the essence of memorable tourism experiences. Annals of Tourism Research, 38(4), pp.1367-1386.
Williams, A.M. and Shaw, G., 2011. Internationalization and innovation in tourism. Annals of Tourism Research, 38(1), pp.27-51.

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