Unit 12 Hospitality Provision in TT Sector Solution

Program	Diploma in Travel and Tourism
Unit Number and Title	Unit 12 Hospitality Provision
QFC Level	Level 4

Introduction

The hospitality provision is the most crucial sector which provides the service to those which are engaged in tour and travel business. The hospitality sector of the particular region needs to be as such which provide various standard service to the tourist. The sector has gained tremendous growth in the recent year due to increase in the number of the traveler all around the world.The performance of hospitality and the tour and travel business is interdependent on the performance of the other sector. The traveler are attracted towards the location where there the service provide by the hospitality sector are good. The business can make the use of the integration to attain the success in the market. The integration helps the company to avoid the adverse situation with the joint effort of the other companies. They will help the company in capturing the new market and build an effective command over the various factor which affect the business. There are many of the organization who provide both tourist as well hospitality service to satisfy the expectation of the tourist.

Task 1

1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses

Hospitality plays a key role for the growth of the business who are engaged in the travel and tourism business. There is great relationship between hospitality and tour and travel business as they are largely interdependent on each other. To increase the profitability certain tour and travel are also providing various hospitality services to satisfy the customer and attract more customer to use the company services. The helps in providing various facility to the customer who travel from various places around the world. The success of the tour and travel business largely depends upon how they satisfy the need of the customer and deliver the product and service as per the expectation of the customer. This helps in attraction huge customer to travel at the particular location and attract the huge capital from around the world which helps in strengthening the economy of the country. The hospitality generally includes the accommodation, entertainment, restaurant, cafés and other facility used by the travelers. The hospitality sector plays a key role in checking how well the customer are treated when they travel at the particular location. The hospitality provides the tour and travel business in meeting the standards as per the expectation of the traveler. The people are highly attracted towards the particular place where they at all the facility which are required during the travel (Law, Leung,  Leung & Fong,  2015).

The accommodation facilities provide during travel are the key for the success of the tour and traveler business. The accommodation facility at the particular location plays a key role to attract the traveler from around the world. The accommodation facility which can be used by the traveler are hotels, motels, guest house, home stays etc. The accommodation should have all the standard facility which are prefer by the guest during the customer. All the tourist wants that there accommodation needs to be proper and should have all the basis facility when they arrive at the particular location. So it is crucial that the guest are treated well and are provide with all the essential facility when they reach the particular location. To meet the expectation of the customer the accusations are divide in certain groups as per the expectation of the customer. Generally the accommodations are divide on the basis of the star rating as per the preference of the customer which are generally rated from 1 to 5. Each group is categorized on the basis of the preference at the accommodation and the cost which they can pay for the facility. The level of the facility and service at the particular location increases with the increase in ratings. The guest wants that the accommodation needs to have the basis hygiene and should meet various health regulation. To satisfy the guest the accommodation needs to handle all the problem which are faced by the guest during the stay. The tour and travel business helps the traveler to provide accommodation as per the requirement of the traveler. For this there needs to be effective coordination between tour and travel business and the one which are providing accommodationfacility (Wang, 2014).

The quality and the variety of the food provided at the particular location plays a key role in attracting the traveler from all around the world. The traveler are highly satisfied if they get the food and beverages as per there requirement and choice. The traveler makes the choice of the restaurant on the basis of ambiance, menu variety, prices, service and quality available at the restaurant. The tourist generally visits the particular on the recommendation of staff, friends, and trip advisor or from the local people. The taste and quality of the food provide by the restaurant also helps in attracting traveler towards the particular location.The cafes at the particular location offers various variety of beverages and are also proving various snacks and food offering which helps in increasing the popularity of the particular area (Lovell, 2015).

The entertainment facility available at the particular location also helps in attracting more and more tourist. The entertainment facility includes theaters, malls, amusement park which attract the traveler towards the particular location. These entertainment places should also have food and other facility which are required during the entertainment. The larger number of the customer from all around the world are attracted towards the adventure sports which are available at the particular location. The traveler prefer visiting places which have various number of entertainment facility. The tour and travel business can attract the huge number of traveler from all around the world with the entertainment facility available at the particular location. The traveler spend a lot on these entertainment so it helps in attracting huge foreign capital which helps in development of economy of the particular country (Sirakaya,  Baloglu& Mercado, 2014).

The transportation facility available at the particular location also helps the tour and travel business to attract more travelers. The ease in traveling from one place to other within the particular region also affect the decision of the traveler. The place where there is good transportation facility will attract the more traveler. The hospitality and the tour and travel industry are highly interdependent on each other and needs to work jointly for the growth of both the sectors.

The hospitality sector helps in proving the key services to the travel and tourism business and are highly interdependent on each other. People basically takes the help of travel and tour business while traveling as they do not want to spend significant amount of time on booking the hotels and other facility. The tour and traveler business helps in proving the service as per the preference of the traveler by coordinating effectively with the hospitality sector. They tour and traveler business helps the traveler to plan the tour within the allocated resources. The hotel are also getting regular flow of customer due to effective coordination with tour and travel industry and doesn’t have to spend a lot to attract the customer. They also helps in effectively handling the queries which the customer faced during the travel. This also helps in creating the visitor attraction towards the particular location and helps in attracting more traveler (Gomezelj, 2016).

Task 2

2.1 Analyze the implications of integration to the hospitality industry

Many of the company uses the integration to increase their business or to gain advantage in the market from those of competitor. The integration helps in serving the customer with efficiency by the joint effort of two or more companies.The Companies can use the integration to increase its profitability by collaborating with the other companies. The integration helps the companies in attaining economy of scale and serve its customer in effective way. The Savoy hotel London can earn high profit and increase its level of activity by joining the portfolio of the leading hotel chains. This will helps the company to avoid the recent financial losses and attract more customer with the help of the other member of the group. The integration with the other will also help the Savoy hotel in improving its brand value and improve its position in the market. The manager of the Savoy hotel can use the both vertical as well as horizontal integration to improve the position of the business environment.

Horizontal integration

Horizontal integration is when the company will merge with the other business which offer the similar product and service to improve the market share and improve the performance of the business. This helps the company to lower its operation cost and maximize the profitability of the business. This also helps the business which are facing huge losses a chance to improve their performance with the help of the other business. For example the Savoy hotel with the help of the other members in the group can attract more customer and avoid the losses which the company was facing due to low number of the customer. It will also improve the performance of the business and improve its brand value to capture the future business opportunity (Hong, Lee, & Hwang, 2011).

Through horizontal integration the company can get the command over the various factors which affect the business but shouldn’t be used to obtain monopoly in the market. The integration can also be done in the hospitality sector by collaborating with the similar group in the industry.  For example savoy hotel can work jointly with the other hotelto provide the accommodationfacility if the other company have huge number of customer. This will help both the company to increase there profit with the help of each other.

Vertical integration

vertical integration is when the company acquires or merges with the other company of its supply chain. This will helps in obtaining the economy of scale and helps in improving the quality of the outcome of the service. The company buys or merge with the other company which operates at different level of supply chain. For example the tour and travel business can merge with different hotels of the supply chain to effectively handle the needs of the traveler in relation to accommodation. This will help the tour and travel to improve its service and provide the huge number of the customer to Savoy hotel.  The companies can use various vertical integration to increase the efficiency of the business such as forward, backward and lateral vertical integration. The Forward integration is when the company the company merges with those who are further in the supply chain. For instance the hotel can create their own tour and travel company to attract customer directly instead of paying other tour and travel business. The backward vertical integration is when the company purchase one of its supplier or the service which is used by the company. For Instance the tour and travel company can acquire various hotels to improve the level of its quality of accommodation for servicing the customer effectively. The lateral integration is when there is merger of two or more companies when there is no direct integration between the both the companies (Mazak & Huemer, 2015).

The manager of the Savoy hotel can use any of the above integration technique to increase the profitability of the business and avoid the financial losses which the company was facing. The company with the efforts of the other in the supply chain can attract the customer and improve its profitability.The integration will helps the company in avoiding losses and improves its market position.

2.2 Discuss how integration has affected a hospitality business. You need to use a specific business within the hospitality industry.

The integration plays a key role in providing growth opportunity and increase the profitability of the business. Many of the companies also uses the integration to cope up with the loses faced by the company and improve their market share. The integration technique can also be used by the manager to effectively control the factor which affect the business and attain the economy of scale. The integration also helps in improving the quality of the outcome which helps in attaining customer satisfaction.

The integration in the hospitality business also helps in increasing the brand name of the company by the joint collaboration with the other companies.  The traveler are generally prefer the use of certain brand while using the tour and travel service. This will also help in increasing the value of those companies who are associated with the brand. Many of the companies can improve its brand value by working with the other branded company. The Savoy hotel can also improve its brand image by working with the other members of the group and improve its standard of service (Tsaur & Lin,2014).

The integration between the various companies can also help the business to effectively manage its market, provided the integration should not be used to get inappropriate advantage in the market. For example the tour and travel company can acquire certain group of hotels to effectively manage the supply of various accommodation facility. This will helps the company to serve the customer in an appropriate way.  The integration between the various companies provides growth opportunity and helps the business to grow its business globally. Through integration the company can reduce the dependency on the other and thus will attain the economy of scale. This will helps in reducing the cost to the customer and increase more customer towards the business. The companies can extend its business and easily enter the new market through the use of various integration technique.

The integration in the hospitality sector also helps in improving the standard of the service which the company is providing with the joint effort of the various companies. This also helps the small companies in the supply chain to raise their standard of service.This will also help the customer in receiving the standard and wide range of service with the joint effort of the various companies.

Task - 3

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

The financial performance of the Savoy hotel in the recent year is not good as the company is not able to attract the customer towards the company’sproduct and service. For overcoming the problem of reduction in demand the manager is planning to create the appropriate marketing plan to identify the reason of the company’s failure. For this the manager is planning to attract more families to use thecompany’s accommodation during their tour. To attract the more families towards the hotel the manger is planning to increase the facility for the children’s at the other and use it as a tool to attract the customers towards the company’s product. The manager has also made necessary changes in its product as per the requirement of the families.The marketing planning will helps in promoting the company’s product and attract the families towards the company’s product (Zaitseva,  Goncharova & Androsenko, 2016).

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

The manager has framed a marketing plan to attract more customer to use the company’sservices. This will help in improving the company’s product and will help in improving its financial performance. Before framing the plan the organization needs to examine the current position of the company in the market and identify the problem which is causing dissatisfaction among the customer.  The manager has done the marketing planning to attract the family groups to use the company’saccommodation.

Vision

The planning is done with the vision of making the savoy hotel a standard hotel that will be the number one choice of accommodation for families in UK.

Mission

The mission of the company is to deliver the reliable,genuine, excellent and superior service for all those who will use the company product and service. The mission is to ensure that the hotel has its branches all around the country and effective satisfy the family group through providing the quality service.

Market Research

For finding the problem of the company the manager will conduct the research among the family groups and find the reason which is causing the dissatisfaction among the customer and the services which they wants to be added into the company’s current service. The market research will help the management in making decision to increase the demand of the company’sservice in the market (Crick & Spencer, 2011).

Business structure

The success of any business largely depends upon the structure of the organization and the role which each of the employee performs. The planned strategy needs to be as which can be easily implicated in the current organization structure. The organization needs to make effort to recruit the right set of people to achieve business goals and objective within the limited time.

Industry and market

Before planning the marketing strategy the manger needs to determine the current trend in the industry and how it will affect the business the companies need to consider all the internal as well as external factor which will affect the business. The manager while framing the plan needs to consider the size and the location of the tourism market, annual visitor, and current supply of hotel room etc. for effective framing of the policy the manager needs to breakdown the market into various parts and the group of the customer which the company will target (Huijbens & Benediktsson, 2013).

Target market

The manager for the purpose of promoting the customer is targeting on family groups to use the company product and service. The company is making the effort to amend their current service as per the requirement of the family group. The manger has conducted feasibly study and market survey and through which has identified those who will eventually become the company’s customer. The Company instead of waste time and resources will make efforts to focuson the certain group of the customer. The manager in his plan need to identify who are the targeted guest and what the reason due to which they will prefer the company’s product and service. The company while planning can consider what other group of the customer that the company may target with the existing capacity of the company.

Companies USP

Before planning for marketing the company needs to identify the company’s Unique selling preposition and how the company can use it to obtain competitive advantage. The manager can also make the efforts to implement the USP of the competitor in current product and service of the customer.

Marketing and sales strategy

The marketing strategy needs to be framed after considering how the guest recognize and understand the company’s product. The marketing strategy will strategy includes the media the company will use to promote the company product. The Savoy hotel frame the strategy on the basis of the kind of the customer which the company is trying to serve with the company’s service. The company can use various marketing strategy to promote the business among the customer. For this the company can advertise the product through various medium such as magazine, newspaper,television, radio or by other ways of advertising (Kusluvan, Kusluvan, Ilhan & Buyruk, 2010).

Sources of income

The manager in his plan needs to consider the sources from which the company will earn fund and how it will repay its debts. The various sources from which the company can earn fund are lodgings, meals, drinks, swimming pool, laundry service, conference hall etc. The decision needs to be made after considering the benefit which would arise from each source.

Generating funding

The manager in his plan needs to determine the sources from which the company would raise the fund to implement the plan. The manager on the basis of the budget will determine the sources from which the fund can be raised. The company can use various sources from the market such as loan, debts, equity and the decision on the basis of the requirement of the project.

Competitive set

For effective framing of the plan the manger need to consider both regional as well as local competitor of the company. The company needs to identify the factor which is providing the competitive advantage to the company and use it as the tool to capture the opportunity in the market. The manager can obtain such details by obtaining information from STR, stats and internet research for decision making. The manager needs to make the competitive analyze by analyzing the strength and weakness of the customer (Nelson, Lee & Qu, 2015).

Operations

This stage consist of how the plan will be implicated and how the various resources will be used.  The manager needs to determine how will he recruit, train, lead his staff and measure the performance of the hotel staff. The manager will specify the each task which the employee action in relation to the activity. This stage will consider what quality measures needs to be maintained at each level of business activity.

Conclusion

So it may be concluded from the above study that the hospitality and the tour and travel business are largely interdependent on each other. The traveler are attracted towards the places where there are hospitality sector is good. The growth of the tour and travel business depends on the quality of services which the hospitality business provides. The hospitality business and improve its performance by using various integration technique. This helps the company in overcoming the adverse situation and capture the new market opportunity.

References

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Kusluvan, S., Kusluvan, Z., Ilhan, I. & Buyruk, L. 2010, "The Human Dimension: A Review of Human Resources Management Issues in the Tourism and Hospitality Industry", vol. 51, no. 2, pp. 171-214.
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