Hospitality industry is the territory business that helps to provide all the services which helps the customers It covers all the offered services. Hospitality organisation is an important sector that helps in travel and tourism in all the international with domestic tourism. PKF International is the biggest global associations which helps the consulting organisation, audit, tax and accounting. Answer all the learning outcomes mentioned below:
- Explain the role of hospitality in all the sectors.
- What are the impact of hospitality industry.
- Develop a hospitality business plan with all the operation management.
- Explain its importance with the targeted market.
Hospitality industry is one of an main part of tertiary business which provide services to customers (Cook, Hsu and Marqua, 2014). These services offered by hospitality organisation play a very important role in travel and tourism sector in international as well as domestic tourism. The sector of travel & tourism need several types of services such as tourism services, events & conferences, travel services, transport, passengers and so on. On other side hospitality industry mainly make arrangements of food, accommodation and different services to customers. PKF Hotelexperts is mainly concentrating on leisure, hotel and tourism consultancy. This hotel is a member firm of PKF International which is one of biggest global associations of consulting organisation, audit, tax and accounting. Along with member firms within 300 areas in all over 100 nations. In this assignment it involves the interrelation within travel & tourism and hospitality industry. The implications and affect of integration to hospitality business and also prepare a plan of hospitality industry.
1.1 Interrelationship between travel and tourism and hospitality businesses
Relation within hospitality and travel & tourism industry
Date: 28th July 2018
Composition of hospitality industry
Hospitality sector is the composition of various categories within the tertiary industry as it involve hotels, pubs & bars, events, membership clubs, restaurants, nightclubs, contract food services provider and many more services are provided by hospitality industry. The hospitality industry largely relies on the expenditure which is being carried out by people on leisure activities and travelling which collectively aggregates to millions of dollars. This sector includes various groups like as direct operations. which are provided by bartenders, kitchen employees, porters, servers, housekeeper, human resource, marketing, management and so on. This hospitality business provide accommodations of hotels which can range 1 to 5 star, breakfast and bed, hotels within budget, Inns, Resorts, Motels and service apartments. Bars & restaurants consists tea shops, wine shop, public and pubs house, cafes, bars and nightclubs. Travel & tourism consists Leisure centres, tour operators and travel agents. These kinds of services are given by them for satisfying customers and giving them proper comfort zone. It will aid in sustaining the customers for a long time by fulfilling their needs and wants by giving them effective services.
Travel & tourism sector
This sector means travelling by a people for leisure, recreational and business purposes for a particular span of time. This sector provide various types of services which are visitors attraction, tourism services, travel services, accommodations services, transport, passenger, events & conferences and many more. Travel and tourism business is categorised within five parts which are lodging operations which consists of timeshare hotels, parks, cruise, extended stay and so on. Transportation services involve trains, buses, ships, airlines and auto. Retails stores includes markets, shopping malls, gift shops, craft shops & souvenir shops. Food and beverages operations consists vending, banquet, snacks bars, lodging properties and many more. Activities which involve business meetings, recreations, study trips, gaming, seasonal festivals and sporting events. It gives all these facilities to their customers and satisfy them as per their wands, demands and needs. This industry is a very huge group of enterprises with a similar targets and goals which is to give desired goods and services to their customers or travellers.
Interrelationships within travel & tourism and hospitality sector
Role of hospitality sector in underpinning various kinds of travel and tourism industry For example: theme parks, aviation, business travel, exhibitions and conferences and so on. These all are interlinked with each other. Theme part is an outdoor attraction as well amusement park which is very famous segment for entertainment where people likes to travel in their holidays like as Walt Disney World which is in Orlando which is popular attraction of lots of customers. Here, hospitality is interrelate as they give services to the customers like as food services, improving guest services and safety, design and master plan of theme parks are also the services given by them. Aviation is a providing travelling from one place to other for accomplishing their tours and it provides hospitality services like as air hostresses, Wi-Fi facilities in waiting rooms and many more. Business travel are those who travel from one place to another for their enterprise meeting or conferences and for that companies make arrangements of their accommodations, food, travelling and so on services. In this travel they will provide the hospitality services of rooms to persons came for meeting and conferences along with this they also give services of food and any more. Therefore, business travel are also related to hospitality services. Exhibitions are also held in others nations then people use to go for attending the events and for that they also provide the services to them like as food arrangement, staying facilities and so on.
PKF Hotelexperts are having 300 locations all over the countries as it is the small business. This hotel run in value segments, mid-market, luxury and premium of the market. In past years, PKF Hotelexperts is providing quality of services to their customers for enhancing their business in more countries. They are giving services of making my tour, holiday packages and more facilities this are hospitality services which are provided to their customers and people came from others company for their tours they provide them quality of services to them . So, they can attract large numbers of customers by providing quality of services to them in an effective manner. PKF Hotelexperts provides various facilities like as food, travel and many more to the customers. Travel and tourism provide these facilities of hospitality sector to their customers as they like with the hotels for promoting their business in an proper way. Therefore, it is rightly said that both this sectors of travel & tourism and hospitality are interrelated with one another. People travel from one place to another and then they take the hospitality services which are given to their customers in an better quality. It will help in grabbing buyers attention by giving them quality of services in an effective and efficient way.
Both the sectors of travel and tourism and hospitality are interrelated as they keep linked with one other for providing effective services to their customers. PKF Hotelexperts also have linked with various travel and tourism. So, that customers will stay in their hotels and attract higher numbers of buyers for enhancing their business in different areas.
2.1 Analysis the implications of integration to hospitality industry
This concept is not new as well as industries are adopting this integration from one than more nations. Mainly, company go for integration when they concentrate on reaching economy of scale. So, that company can take down its operating cost. It is accomplish when firm think there is no requirement of outsourcing. Hence, they can save finance within long run. Their are two types of integration which are as follows:
- Vertical: When an company purchase its suppliers or buy other organisation within their distribution chain is said to be vertical integration. This outcomes in declining of operating cost. It will assist in increasing the profits of particular company.
- Horizontal: In this when company integration of two various enterprises merge to form a largest firm it is rightly known as horizontal integration. Its outcomes will be in increasing the base of buyers, advantages from economy of scale and at last higher level of profits.
Their are various types of acquisition take place within the market. For example: In the year 2015, Marriott takeover Delta Hotels and resorts for $135 million. Their are various implication of integration are as follows:
- Importance of pricing policies & branding: The brand as well as pricing policies is a very essential think linked to the enterprise. Tourism industry success relies on the type of branding and pricing polices are used by the company. Through which they can reach to higher numbers of buyers. It is essential to maintain the value of its brand name connected to hospitality service (Zeng and Gerritsen, 2014). For examples: If a regular buyers of an Marriott hotel get its booking in London, then person will expect the same luxury services which he is getting in other group of same hotel. This hotel chain is available all over the globe. It will help in maintaining a branding as well as its pricing policies also.
- Firms to beat large companies: Sometimes companies merge with small organisation for increasing their business. It will assist in competing with that biggest companies as well. Therefore, its the main reason that company take this step of merging with other organisation for enhancing their business effectively within the whole globe.
- Increasing globalisation: In this, when the hotel is established well within the origin place. Companies next step is to increase their business within abroad and for that they started looking for an opportunities. In the internal globalisation, it is increasing within the whole world. If Marriott hotel workers are connected with all the others workers within the similar hotel in all world. In the outside globalisation, hotel workers are all connected within the world (Xiang, Magnini and Fesenmaier, 2015) . It can take place by using higher utilization of internet as well as less barriers of trade. e.g. Marriott hotel is one of largest hotel chain which are in all over the world. This hotel acquire Delta Hotels, it also having approx 36 properties within the globe. According to this Marriott hotel has enhance their operations and with this Delta Hotels is also in progress.
- Manipulation & control of the market: Some of largest travel agents enhance the hotel within various parts of the globe. Hence, they identify themselves how they can able to manage the rates of hotel. Further bolstering their better fortune, getting average packages for buyers at the time of deal expansion.
2.2 Discuss the integration impact on hospitality business
Integration is having lots of advantages within Hospitality sector with this they also have various impact on hospitality businesses which are as given below:
Declining of independent businesses: In this, if companies are not able to achieve loyal customers them company have to face various problems. Therefore, then they think to integrate with other company for increasing the growth of their business within the marketplace. Decreasing of independent business then they merge their business with other for making higher level of profits as well as market share.
Economic of scale: In this, integration can aid in accomplishing higher profitability and economic of scale. In this, if tour operator adopt the hotel then they much have high level of advantages within long term. Integration within hotel as well as tour operator services will lead to dependency of tour operator on accommodation giver. It will save cost, efforts and time of the tour operators (Dickinson and et. al., 2014). Along with this it also aid in increasing sales of hotel and attract customers as well. They may think that it will be less costly to purchase a cheaper packages from particular agent.
Increasing in market share: After the integration they take over their goods and services, market shares and so on within their control. After the integration take place then it help business in raising higher level of market share through merging of both the organisation within the marketplace.
Improved quality: It is not important that that because of integration quality will be effective. Therefore, things are fully depend on owners. In the case of Accorhotel acquire Toronto-based parent company of the luxury Swissotel, Raffles and Fairmont brand for $2,7 billion. In this, operations will be effective but the new owner of hotel will be capable in maintaining quality of operations. It is also a risk factor for the old workers as they will resistance to accept new workers and follow their rules and regulations. Therefore, it is important for new hotel management to implement the methods which is friendly for all the workers.
Standardisation: Through this it bring out standardisation, which is the process of time consuming. If the Accorhotel is having the process of standardisation then they have to follow all over the globe. At any location one travel this process is identical. It will make this sector as time oriented, manageable, efficient and predictable.
Integration is very much efficient as well as effective along with this it also have various positive aspects within the market place. But it also have some of negative aspects as well. It is due to management which are positioned for two different companies.
3.1 Develop a rational for selected project for justifying decisions related to target market
Industry of hospitality is a very largest sector within United Kingdom market. They are starting a new cafe within UK since like France and Italy United Kingdom is also moving to well set of cafe culture in the country. Their is a increase within the cafe market by providing them open place for reading newspaper and relaxation. UK person requires coffee all the time along with this they need fast services as well. Many of buyers mainly want a better place to have a cup of coffee with a better surrounding rather that brands.
In order to start a new cafe there is requirement of proper and effective research before establishing. So, there are various methods for accomplishing research work but here they have used published articles and internet sources (Smith and Puczkó, 2014). For making awareness about customers needs and wants that what type of coffee their want and the way it brewed. It is also important to be well-known about the competition within the marketplace. They require to do more research on most admired brand have to give and how it will be beneficial for the enterprise. Therefore, there are list of some well known brands of coffee in UK to grand a starting:
They had examine the annual statement as well as its financial records of all the companies which are listed above. It will help in disclosing the main part of earning higher level of profits. Additionally, they will suppose to give this kind of exhaustive data and information if they are thinking for taking a loan from bank.
The market targetting of the cafe is coffee as well as hot drink to their customers who are consuming while on strolls. Every age group can drink their coffee.
It is better to select a busy urban location where higher numbers of pedestrians are seen. Therefore, this kind of locations are very much expensive. But through their research above it is described that customers mainly prefer a relaxed atmosphere for sipping a coffee. So, it is good to purchase a large space within urban or rural areas where they can get a better space for fresh air as well as sofa near the coffee table. They have prefer to have a cafe on open space or near motel and hotels. It will help in attracting hotel guests as well as travellers to drink a coffee in a better atmosphere of cafe (Luo and Zhong, 2015).
At starting it is not at a large scale, therefore the business size will be according to its area. In order to a small cafe I require 700 to 200 sq. ft. that gives space around 20 to 40 customers at same time. In this plan, they have selected a rural location where I will get large space of 1000 sq. ft. i.e. for 60 to 90 people can be seated at same timing.
They like to invest 20% to 40% of the enterprise with their own personal money along with this remaining funds can be raise by using bank loan. Therefore, they would like to save certain money for crucial times. Through the bank loan it will aid in investing the amount of raw materials, cafe construction, land, appliances, machinery, advertisement price and set up cost.
Products and services
With coffee, they prefer to provide other cold and soft drinks along with snacks such as burgers, sandwiches which are munched with coffee. It will add various segments of enterprise as well as provide various chooses and options like as fast foods, drinks and so on.
In order to this, they have to implement with the food standard agency. It is the body that has been set up through the government for all standards linked to food safety. At present there is no law, as it set the prior training or guidelines requirement to begin a cafe. Still it is necessary to be trained before starting their own cafe. In this, I prefer to learn about HACCP which stands for Hazard analysis critical control point which is related to food & safety programme which is recognized within the globe. They require to implement for food & safety licences to start a cafe within United Kingdom.
They had selected this cafe because it is in demand within United Kingdom which is analysed at the time of accomplishing the research. I like to meet the higher level of profits and increasing of sales (Radojevic, Stanisic and Stanic, 2015). It will provide advantage by increasing the market share of the company and will aid in attracting large numbers of customers. It will also provide benefits to owner by enhancing the sales and profits as well, management will get the advantage in managing all the activities of company effectively and staff members will get the salary for fulfilling their basic requirements.
3.2 Develop a plan for a hospitality enterprise which involve the operational needs of company structure in term to HR allocation
Design : These various elements which cafe consider to attract large number of people by giving them quality ambience, culture, interior and exterior and other tactics.
Ambience: it refers to the atmosphere of the place. In relation to the cafe, it is essential for its manger to create positive environment by treating employee as a valuable resource. In addition to this, its important to satisfy customer with best taste and hygiene level. In context to new cafe, it manager have to maintain cleanliness, appropriate lighting, attractive interior, furniture, soothing music etc. All these factors attract customers and retain its existing employee for long run (Smith and Puczkó, 2014).
Culture: Its essential for new cafe develop better organisational culture in office which give high level of competition to its competitors. For developing effective working culture manger of this cafe should hire skilled and talented worker at cafe. Employees from different different culture are beneficial for the cafe as workers can learn from each other and enhance their skills.
Brand: For developing brand name of cafe, its manager have to offer quality services to its customer in order to increase satisfaction level. It will be beneficial for the cafe to use attracting promotional activities which will cover targeted audience. For this, cafe can opt social media to enhance its brand name in United Kingdom and attract more number of customers.
Interior: This tactic define that cafe require to classy as per mood of customers that give them relaxation and comfort. It is essential that cafe have attractive places and items implemented to give facility to customers to click images and experience good and wonderful acknowledgement.
Exterior: It is another attribute which specifies that cafe even require to have attractive outside exterior to easily capture interest of people and attract them to visit cafe. It is necessary that competitors cafe is acknowledged while designing exterior which is more attractive than rivals.
Functional areas: Under this includes finance, development, human resource, distribution and research. In order to cafe, it is necessary that these all functions should perform in a better manner and focus towards increasing development. The business environment should be clear and can attain the strategic mission and goals of company by better design. The main focus of all these areas to increase productivity of business and work towards achieving the set objectives of firm (Luo and Zhong, 2015).
In order to develop and design a plan, it is required by employers of present cafe to concern on some more areas also such as customer flows, link to targeted area of market, needs of consumers on individual basis and sustainability of business also. In context with customer flows, superiors are needed to manage the same and products of Cafe with internal like team of organisation and external factors as suppliers. This kind of management helps in creating innovation by promoting a continuous learning process. In terms of tactical design management, they should address resources and processes. This kind of design should link with requirements of current trend of marketplace as well as targeted era. It will help in reducing gap between demand of customers and products of company. In addition to this, employers of Cafe needs to includes most famous beverage and fast food items in menu on reasonable rates which are liked by targeted customers. They should use resources and techniques through which richness of food items can be maintained. If they get success to serve products as per taste and preference of customers then it would help in gaining sustainability of business as well.
In order to make a effective functioning of cafe it is require to adopt the proper staffing through functional areas. In this cafe, there is always a requirement to recruit a employees who are lively as well as active peoples. It also acquire specialists who can perform their operations according to their experts. Their is also a requirement of Accountant manager in back as well as front office and many other staff for manufacturing and serving the smacks and drinks in the most hospitality way. They also need the wipe up and cleaner the cafe on daily basis.
This business represent the wide occupation choices with various necessities of human capital. Consider the labour diversity which is necessary to construct mutual understanding with managers and customers as well. Recognizing the aspects of job satisfaction as well as employees attitudes on the way to another co employees which are important in measuring workers intensity of contentment within the workplace. It will aid in decreasing conflicts within each other.
Their are various policies and procedure of recruitment which are needed to follow at the time of hiring a particular person (Dredge, Aireyand Gross, 2014). HR of the cafe have to follow all for effective recruitment.
In order to promote the cafe they are using the promotional mix through which they can make awareness among the customers about their cafe. Company is also using the pricing strategy of premium pricing within their goods and services.
As per above report it has been concluded that there are various companies which are integrated within the marketplace. Along with this it is having various implications like as importance of pricing policies & branding, firms to beat large companies, increasing globalisation and manipulation & control of the market. In this it also have various negative and positive aspects on the business. In this also there are two types of integrations which are understand through this assignment which are vertically and horizontal integration. In this they have establish their own cafe effective by accomplishing proper research within the whole market for knowing the needs and demands of their customers. It help in knowing the present market situation for attracting higher numbers of buyers. They also design and operation of business plan for a hospitality business which involve the operational requirement within the company structure in term to human resource allocation.
Books and Journals
- Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel. Boston, MA: Pearson.
- Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication technologies in hospitality and tourism. International Journal of Contemporary Hospitality Management. 26(5). pp.727-750.
- Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review. Tourism Management Perspectives. 10. pp.27-36.
- Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet.Journal of Retailing and Consumer Services. 22. pp.244-249.
- Dickinson, J. E. and et. al., 2014. Tourism and the smartphone app: Capabilities, emerging practice and scope in the travel domain. Current Issues in Tourism. 17(1). pp.84-101.
- Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical travel. Routledge.
- Luo, Q. and Zhong, D., 2015. Using social network analysis to explain communication characteristics of travel-related electronic word-of-mouth on social networking sites. Tourism Management. 46. pp.274-282.
- Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry. Tourism Management. 51. pp.13-21.
- Dredge, D., Airey, D. and Gross, M. J. eds., 2014. The Routledge handbook of tourism and hospitality education. Routledge.
- Wu, M. Y., Wall, G. and Pearce, P. L., 2014. Shopping experiences: international tourists in Beijing's silk market. Tourism Management. 41. pp.96-106.
- Denizci Guillet, B. and Mohammed, I., 2015. Revenue management research in hospitality and tourism: A critical review of current literature and suggestions for future research. International Journal of Contemporary Hospitality Management. 27(4). pp.526-560.
- Brown, E. A., Arendt, S. W. and Bosselman, R. H., 2014. Hospitality management graduates’ perceptions of career factor importance and career factor experience. International Journal of Hospitality Management. 37. pp.58-67.
- Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
- Chiu, Y. T. H., Lee, W. I. and Chen, T. H., 2014. Environmentally responsible behavior in ecotourism: Antecedents and implications. Tourism management. 40. pp.321-329.
- Liu, Z. and Park, S., 2015. What makes a useful online review? Implication for travel product websites. Tourism Management. 47, pp.140-151.
- Limberger, P. F. and et. al., 2014. Satisfaction in hospitality on TripAdvisor. com: An analysis of the correlation between evaluation criteria and overall satisfaction. Tourism & Management Studies. 10(1). pp.59-65.
- Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge.
- Ponte, E. B., Carvajal-Trujillo, E. and Escobar-Rodríguez, T., 2015. Influence of trust and perceived value on the intention to purchase travel online: Integrating the effects of assurance on trust antecedents. Tourism Management. 47. pp.286-302