Evaluation of Hospitality Provision in Travel and Tourism-PKF Hotel

Organization Selected : PKF hotel

INTRODUCTION

Focusing in relation with the hospitality sector, it plays a significant role in the travel and tourism sector all across the globe. It constitutes all the businesses that offer support related to accommodation to tourists and travelator move from one place to distinct place. They are an integral part of overall experience and provide satisfaction to the visitors through rendering magnificent services being stipulated by the hospitality industry. This sector is one of the major parts of the tertiary sector. Tertiary sector is the one where products are not manufactured rather it involves an intangible products that can be felt and experienced by people. There are numerous sectors in the service industry which are booming sectors such as IT, Aviation and Software (Barrows, 2011). However, hospitality is the most vital among them which encompasses many small sectors such as lodging, theme parks, restaurants, event management, talent management, transportation etc. This sector also supports travel and tourism industry. People now days are more aware about adventurous places and most of the nations are supporting travel and tourism and hence, it is becoming one of the biggest sources of revenue as well as employment. Concerning this, as a Junior Consultant of PKF hotel expert& attention will be made on evaluating and comprehending the role of Hospitality management plus its inter-connection with the travel and tourism business will also be assessed. Further, the research study will also make efforts in understanding the impact of integration within the hospitality industry. The later part of the report will develop a plan for the hospitality business including the operational requirement of the organizational structure of the business in the context of human resource allocation.

TASK1

1.1The interrelationships between hospitality and wider travel and tourism businesses

Speaking about hospitality, it is a function that creates a relationship and helps in promotion of exchange of goods and services among the hospitality as well as the receiver of the services. Many successful outlets of the hospitality have extended their market reach by opening and placing their business opening in varied destinations mainly at those places which are quite popular among the tourists like New Zealand, Hollywood, Paris and many more. In addition to this, there are many companies related to hospitality, which have placed their outlets in leisure venues as well (Barrows, Powers and Reynolds, 2012). They have opted for these venues so as to extend their reach in the market and at the same time to progress in the same industry. Leisure venues encompass theme parks, casinos, night clubs, attraction and leisure etc. On contrary to this, travel destinations takes into account aeroplane, railway stations, airports, bus stands etc. Other than this, there are numerous tradition or free standing venue related to hospitality like cruise ships, bars and holiday centers. Travel and tourism organizations as well as hospitality have inter-relationship among each other. This pertains to the fact that companies related to the travel and tourism are mainly focused towards attracting pool of customers towards numerous destinations of the world by taking into account promotional techniques. On the other side, hospitality is focused towards providing comfort and leisure to their valuable clients within the hotel (Chon and Yu, 2009). The inter-connection of both the domain can easily be comprehended by taking into consideration following aspects:

  • Visitor attractions; Throwing light in relation with the visitors attraction, it refers to the place which significantly attracts the interest of the tourists and traveler. They can be in any form like museums, gardens, cathedrals, natural parks, monument, waterfall and many more. Furthermore, there are also some places which grab the attention of the traveler or tourists by way of offering some life thrilling experience or adventurous sports such as Adventure Park with rides and other activities, theme park, bungee jumping, Disney land etc. Adventure parks generally have their own cafe, restaurants and hotels with an intention to offer convenience to the tourists. People from many parts of the world can come and relax in these parks and enjoy their trip. Moreover, this type of trip is expedited mainly by the firms which are engaged in package holidays.
  • Conferences and events; Conferences and events are quite significant for global and national travel and tourism industries. For an illustration, Malta has made arrangement for Oriflame conference. In this conference, they have invited almost 4000 delegates from different parts of the world and have also made necessary arrangements regarding their stay in super stars hotels. The hotel in which the event took place, the attendees of the conference was also accommodated in that hotel only with a view to offer them convenience (Brotherton and Wood, 2008). This event clearly depicts that hospitality as well as travel and tourism go hand in hand. The hotel is responsible to offer all the essential services to their valuable clients.
  • Package holidays; Hospitality plays a crucial role in the package holidays. The price of the package is the deciding factor of the type of hotels to be accommodated to customers. For illustration, if budget package is being selected by the customer than accommodation will be according to the price i.e. in deluxe hotel only.
  • Business travel; There are many people who travel for business purposes. These types of traveler commonly select the hotel which is well-equipped with latest information technology services and tools. This is because of the fact that there main purpose of travel is work and they find hotels where they can work securely. Business traveler always seeks for hotel with free Wi-Fi and cable internet services, meeting rooms, laundry services, business centers, projectors etc. All these needs have emerged eventually because of the rising level of globalization.
  • Aviation; The availability of the accommodation up to some extent act as a success factor of the airline industry. If there are no hotels or the capacity of the hotel is full, it is quite obvious that airline industry will lose their market. Other than this, hospitality can also be seen on board in the way of sleeping arrangement, catering services and other forms of services (Cook, Hsu and Marqua, 2013).

TASK 2

2.1The implications of integration to the hospitality industry

Attributing in relation with the year 1990, almost each and every owners of the business desires to attain economies of scale. At that moment, the word integration has gained admiration. In general sense, it means offering of the goods and services from the in-house efforts of the companies. This will going to save money of the business concern when talking in reference with longer period of time. Integration supports the firms by increasing their manifestation and their segment in the international marketplace. Integration can generally takes place in two levels which is known as vertical as well as horizontal. The former one refers as the introduction of different phases and firms into one administration. On contrary to this, the later one signifies firms which are providing different merchandise and services in the market collaborate and reaped out as one management. These two levels of integration can be better understood by considering the example. If an airline firm which is quite small gets merged with the tour operator for expanding their operation than it is termed as vertical integration. This type of integration is generally adopted by the companies who want to expand their market reach (Enz, 2010). On the other hand, horizontal integration is commonly being used by organizations as in the case of Star wood hotels and resorts. It is being overthrown by Marriot International at $12.2 billion US. Same is the case of Intercontinental Hotels Group, they have acquired Kimpton Hotels and Restaurants for $430 million. Seeking help from the integration, organizations can earn large amount of revenue but it is possible only when two different parts of travel industry combines with each other.

These integration have major influence on the hospitality sector. Problems in regards with the management of operations as well as business rise up and firms are controlled by one head. This sometimes bring upon numerous challenges and difficulties. Some of the implications are being defined in the subsequent paragraph:

  • Control of the market; There are many tour operators in United Kingdom that have purchased the hotels for extending their market share in the international markets. Organizations find themselves in a position where they can easily control the rates of the hotels as per the accessibility. In addition to this, the firm can also increase their sales through selling reasonable packages to the patrons (Enz, 2010). This strategy will surely benefit the customers but might prove riskier for small companies functioning in the market. Therefore, it can be well attributed that integration with the larger firms can prove harmful for the functioning of the small sized firms.
  • Increased level of globalization; Each and every firm after achieving success in the hone nation plans to extend their reach by stepping towards the international market. Globalization has increased the expansions of the organizations. They are adopting both internal as well as external globalization. All this was made possible with the social media websites such as Facebook, Twitter etc. With these technologies, employee can converse with their clients in an eye blink. Furthermore, trade barriers have also been decreased in the European Unions because of rising globalization. Trading within the Euro Zone supports the firms through lowering down of prices of the products and services (Kotler, Bowen and Makens, 2010).
  • Branding; Travel and tourism falls under the category of service industry and thus, branding and its varied techniques plays a crucial role. Through branding, the valuable clients of the firm oversee the goods and services beyond their temperaments. For illustration, if someone visits Sheraton Pine Cliffs hotel, which is a subsidiary of Sheraton group than it is quite obvious that they will anticipate luxuries, procedures, facilities in any other Sheraton group of hotels. Thus, integration can enhance the brand and increases the footfalls as well as profits of the firm being integrated.

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2.2Influence of integration on hospitality business

  • Share in the market as well as Economies of scale; With integration in place, organizations can decrease their costs related to operations. For example, if a hotel is being acquired by the tour operator, the cost related to the investment will be high. However, in the long run the company will earn maximum amount of profits. In addition to this, tour operator will no longer remain dependent on the accommodation providers. With the application of right strategies at right time, the share in the market will also increase (Walker, 2012).
  • Calibration; Standardization is a very complex process because of the involvement of numerous variables. Automated process becomes standardized quite easily but it is too difficult in case of human resources. For instance, talking in relation with the McDonalds, the firm has standardized their processes all across the globe. Hotel industry can be standardized but it has little room for that. Telephone operators, ways of greetings the customers can be calibrated but every aspect cannot change.
  • Quality; It is not necessary that the quality will improve through integration process. The major reason being the operations within the hotel is mainly performed by human and their flexibility and adaptability will showcase the quality. Sometimes, the new management does not satisfy the workers, which leaves more room for errors (Marqua, 2013).

TASK3

3.1Rationale for a selected project justifying decisions linked to target market

As a Junior Consultant of PKF hotel expert, the task has been assigned by the hotel to develop a hospitality business and create a plan for opening a new hotel with restaurant (Beaver, 2005). The main rationale behind this decision being taken by the hotel is that in the past few years, the tourism is exceeding in UK with enormous pace. In addition to this, the UK market is also receptive in relation with the hotel industry. The main idea is to start a restaurant business including facilities and services being required in both hotel and restaurant. It will be located in tourist destinations of UK, as many visitors from different parts of the world come and visit these places. Furthermore, services will be offered to the customers of middle income group with middle range plans, as the hotel want to cover large group of customers. They will be targeting upper middle class and middle class group both. Thus, the main concern for this new project will be allocation of resources, managing capital and other many other factors (Woodside, 2007). Get Thesis help at an affordable price from Australian Experts.

3.2Development plan for a hospitality business

Basically in the development plan, three important stages are considered that is developmental stage, designing stage and finally, operational stage. The explanation of these stages in regards with the new project of the hotel is being elaborated in the subsequent paragraph:

Developmental stage

Concept

The main idea is setting up a hotel with restaurant specifically for upper middle and middle class group. The main reason for this is in UK large number of population is middle class. The main motive of this new project is to gain competitive advantage from the other firms in the same market (Atkinson and Brown, 2001)

Research of the market

Market research needs to be undertaken for comprehending the needs and demands of the customers. The market of UK is receptive in relation with the hotel industry. Further, in the past few years, the tourism is exceeding in UK with enormous pace. Other than this, for better and reliable information, questionnaire can be prepared.

Market to be targeted

The main target market of the new hotel is upper middle and middle class people who wants luxury as well as budget stay. The main rationale behind selecting this target is they want to target people who have desire to stay in luxury hotel but are not capable of paying such amount (Lashley and Taylor, 2008)

Location

Location will be the tourist destinations in UK such as London, Greenwich etc. Tourists from many parts of the world travel to UK every year and thus, hotel can earn higher revenue. The hotel will comprise 150 rooms.

Scale

The size of the market of the new hotel is very large, as it is opening its branches in many parts of UK.

Arrangement of funds

Three main sources of funding will be used i.e. owner’s capital, investments and bank loans.

Products and services

Products and services of the hotel will include a restaurant, a bar, spa, parlor, gym, banquet hall, garden area, play zone for children, infinity swimming pool, part hall, 100 A/c and 50 non A/c rooms.

Licensing

For opening a hotel various licenses and laws must be taken into account such as The Trade Descriptions Act 1968,Data Protection Act 1998, Credit Card Order 1990, Furniture and Furnishings Regulations 1988, as Safety Regulations 1994 etc. Other than this, Health and Safety at Work Act 1974, working Time Regulations 1998 and Safety Signs and Signals Regulations Act 1996 need to be considered by the hotel (Ferguson, 2010)

Designing stage

Ambiance

The atmosphere and environment of the new hotel will be cozy and warm. Bar will be arranged far from the restaurant to avoid discrepancies. Additionally, use of wall decors and traditional paintings will be used for decoration purpose.

Culture

Flexible working environment and conductive workplace will be the type of a culture the management of the hotel tries to build up. The main motive will be to satisfy the valuable customers (Olsen and Roper, 2008)

Brand

The hotel is offering services ranging from economy to luxury and this will be the branding strategy will support in attracting large group of customers.

Interior

Royal touch will candle light dinner will be arranged. Decorated walls with traditional paintings and sculptures will allure the customers

Exterior

The exterior will be surrounded with garden with beautiful flora accompanying with swimming pool (Gibson, 2012).

Functional areas

The operations of the hotel will be undertaken by categorizing the functional areas like housekeeping, sales, operation, marketing, human resource, production, research and development etc.

Flow of clients

Customers ranging from upper middle class to middle class will be high, as it is a hotpotof tourist destination. It is estimated that approximately 200 to 300 people will visit on a daily basis

Link to target market

Connection with the market will be created through airlines services and cab which will offer pick and drop services to the clients

Clients individual needs

Different customers have different needs and thus, separate areas for business meetings, parties, functions, seminar hall will be established to cater the individual needs of the patrons (Current state travel tourism industry, 2015)

Sustainability

The hotel will adopt sustainable business practices that will not cause any harm to the society as well as surrounding environment. Through this, hotel will be able to sustain in the market for longer period of time.

Operational stage

Staffing

For the new hotel project numerous staff will be required based on the functions such as HR manager, chef, marketing executives, supervisors, technicians, electricians bar tenders, housekeepers etc.

Qualifications

Every level requires different qualifications. For example, MBA in HR or hotel management for managerial posts, diploma or certification course for supervisors etc. (Jones, 2009).

Staffing issues (Seasonality)

During wedding season, more staff will be required and this should be planned before by arranging flexible work practices

Cultural diversity and conflicts handling

Making arrangement for training and developmental events and various cultural activities or things

Policies and procedures related to recruitment

Recruitment will be done by adopting external means such as placement agencies, online and print media. For selecting the candidate, panel interview and assessment tests will be arranged

Compliance with legislation

Health and Safety at Work Act 1974, working Time Regulations 1998 and Safety Signs and Signals Regulations Act 1996 need to be considered by the hotel.

Promotion

Promotion will be done by adopting social media, print media and television (Kotler, 2010)

Pricing strategy

Skimming pricing strategy will be adopted by the hotel because they are entering in the new market and thus, they will initially charge little high amount and then decrease the price to achieve competitive advantage

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CONCLUSION

Consequently, it can be said that hospitality provision and travel and tourism sector goes hand in hand. It was evaluated in the report that integration within the hospitality business sometimes reaps out benefits and might drag the firm towards more risks. Further, for development of hospitality business various operational requirements have been discussed in the later part of the report.

REFERENCES

  • Atkinson, H. and Brown, B.J., 2001. Rethinking Performance Measures: Assessing Progress in UK Hotels. International Journal of Contemporary Hospitality Management, 13(3), pp.128;35.
  • Barrows, C.W., 2011. Introduction to Hospitality Industry.New York: Wiley & Sons.
  • Barrows, C.W., Powers, T. and Reynolds, D., 2012. Introduction to Management in the Hospitality Industry.Hoboken, NJ: Wiley.
  • Beaver, A., 2005. A Dictionary of Travel and Tourism Terminology. Revised. CABI.
  • Brotherton, B. and Wood, R.C., 2008. The SAGE handbook of Hospitality Management. Los Angeles: Sage Publishing.
  • Chon, K. and Yu, L., 2009. The International Hospitality Business: Management and Operations. London: Routledge.
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