In today’s globalized world one of the fastest growing industries is hospitality industry. People nowadays are highly concern about various leisure activities. Hospitality is all about the creation of free space where a stranger can enter and become friends. It offers them space where changes can take place. The present report is highly focused with the hospitality provisions which should be followed by most of the travel and tourism industries. There are different provisions developed by the government of country in order to maintain the development in tourism sector (Mehmetoglu and Normann, 2013). This report helps in identifying the role of the hospitality industry within the travel and tourism sector. Both hospitality and travel and tourism go hand in hand and there is a positive integration between both them. With the help of the integration organizations can provide better quality services to their customers. It is the best way through which they can attract huge base of customers. This study gives brief about the interrelationship between both the hospitality and travel and tourism industry.
In addition to this, a proper development of new hospitality business will also be explained in this report. In this, a vintage restaurant with mixed cuisines is going to be opened in East London. For this, a proper strategic plan will be developed by researcher by following proper stages of development. Moreover, this report helps in identifying some of the most common information about the expansion of hospitality industry (Armstrong, and Baron, 2007). The present study also gives focuses to plan the development of hospitality business. This study helpful in understand the importance of hospitality for development of travel and tourism sector.
1.1 Interrelationship between hospitality and travel and tourism business
In any travel and tourism sector hospitality is the main part of service provide. It can be easily stated that there is a positive relationship between both of them. With the help of the positive integration tourism industry can easily enhance their market share. Hospitality industry mainly provides different services related to the accommodation services as well as food and beverages. They are some of the most common service providers to the travel and tourism sector. Accommodation is basic need of tourists (Conrady and Buck, 2011). Hospitality is related to hotel industry whether tourism industry is related to the tour packages.
The hospitality sector is a fascinating and ever-changing field. Accommodation is basic need of tourist when they are away from the home so hotels are focuses to provide best service of accommodation in tourism sector. Travel and tourism helps in enhancing the number of customers through advertising the hotel view, site scene view etc. In order to define the interrelationship between hospitality and tourism industry Thomas Cook as well as Marriot international is taken into consideration (Gjerald and Oggard, 2010). Thomas Cook is the leading providers of tour packages as well as various other services related to the airline etc. On the other hand, Marriot international is one of the biggest hotels of UK. In order to make definite relationship Thomas Cook can directly provide best accommodation services to all their customers in Marriot. It is a direct relationship and customers are highly attracted towards it. Both the services can be provided to them in at one place. It makes their life easier as well as makes their trip more successful. In addition to this, it can be stated that hospitality and tourism industry is interrelated with each other. These two sectors are connected and they can attract huge base of customer support (Baron, Harris and Elliott, 2005). By making Thomas Cook and Marriot works together both the industries can get several advantages and benefits such as:
Making the tourists feel welcome personally: Tourists can feel more satisfied if they are able to get different type of services at one place. It is quite essential for tourism sector to welcome their customers in proper.
Role in Conference and meeting arrangement: With the help of the various hospitality industries business class people can organize several conferences as well as meetings in different hotels. They can easily arrange all type of equipments related to conference halls and meeting purpose.
From the above discussion it has been founded that there is an interrelationship between hospitality industries as well as travel and tourism industries. Thomas Cook provides various holiday packages to their customers (Chen and Choi, 2008). Tourism and hospitality provide the services jointly in the market, hospitality give services like hotels, resort and motels. Tourism provides services to customers like Site seen, transportation, guide facility and accommodation with help of hospitality. The role of hospitality in holiday packages is very significant. Marriot is included into their holiday packages under which they directly provides higher class services to their customers. In addition to this, it can be stated that with the help of interrelationship between hospitality and tourism industry customers would benefit from good hotel rates as well as airline ticket prices. It is being founded from past several studies that people are highly focused towards the quality services and they can easily spend luxurious holidays (Hassanien, 2006). In this case, travel agents are looking for the comfort of their guests in order to expand their business and services. There are various visitors’ attractions in which theme park as well as several other historical places takes place. Theme parks are the best visitor attraction which is seen to be the millions of visitors on yearly basis. There are various theme parks which own their private restaurant and café. Under this, they are serving high quality services to all their customers. Moreover, it can be stated that there is a positive relationship between both the hospitality and tourism (Moreno, 2005). The basic reason of hospitality is to go through the exchanging of products as well as services in order to promote their brand. Most of the hospitality industries can provide high quality leisure services to their customers in order to attract them and maintain their profitability as well as market share. Somehow, there is a positive relationship among hospitality and tourism industry which might leads to affect the overall business.
2.1 Implications of integration of the hospitality industry
W the help of the integration companies can increase their global presence and increase their market share. There are mainly two types of integration i.e.
Vertical integration: Under this process company buys another company by acquiring different techniques such as merger, acquisition etc. It is the best way through which companies can maximize their profitability (Youell, 2000). Under this, smaller companies are integrated with biggest companies such as Airline Company can go through the merger with tour operator. With the help of this integration process business unit expands its operations by establishing its foot in the supply process. There are mainly two type of strategy i.e. either forward or backward strategy. According to this, companies can establish their business with other smaller companies of same or other filed. In case of any organization works under the manufacturing unit than forward integration involves them in moving towards the next stage of entering into retail segment. It is the best way through which they can directly sell their products to their customers and easily communicate with them in more effective manner (Wong, 2004). There are various firms which are controlling different organizations under their control. The major implication of integration is that it will harder for them to manage all aspects of that organization. According to the vertical integration the form is under controlled with one organization but it is still controlled by different outlets. In such manner if any type of problem arises in one sector than it might leads to affect the whole organization (Pesonen and Antti, 2013). In the present scenario Marriot hotel want to expand its business operations in order to enhance their market share. There is an only way through which hospitality industry can achieve long term success. An example of Marriott Essex House Hotel in New York has been taken into consideration. The expansion strategy of this hotel is identified in terms of huge investment of $ 362.3 million. Another implication which might affect the business is that it might proves to be lesser helpful in the nature but if implemented correctly it helps them in better expansion (Meng, 2010).
Horizontal integration: It is another most important strategy through which business can be expanded in other countries. Under this, a company tends to acquire business of its competitors having similar level of operations. Somehow, it requires a huge investment in which acquisition of business but it also helps them in enhancing their market share. Through the economies of scale this strategy is one of the best strategies by which companies can achieve operational efficiency as well as increase their customer base (Waterton, 2010). Moreover, it can be stated that expending huge amount on such integrations is one of the major implication of this. However, Marriot can expand their business by adopting this strategy and easily achieve long terms success. Due to this, there are some of the most common implications are higher expenses, failure in merger and acquisition etc. Due to this somehow companies can lose their target and decrease their customer base.
2.2 How integration has affected a hospitality business
Integration is one of the most effective way through which most of the companies nowadays are entering into the new market. It is the best way through which they are expanding their business in other countries as well as enhancing their market share. Integration works more effectively when there are two different areas of company such as tourism industry and airline industry (Lennon., 2003). Both of them are joining with a travel providers and it helps them in accessing more services. However, integration has affected a hospitality business in a positive as well as negative manner. Some of the positive effects are that it allows the company to attract new customers towards their company. Integration is the best way to promote their brand and enhance their market share (French, 2009). There are some of the long term impacts on the organization such as:
Horizontal integration: It is the best part of integration in which any of the business unit can enhance their operational efficiency. With the help of this business unit is able to achieve economies of scale. With two different businesses unit which shares common available resources are likely to expand their business globally. This in turn, helps in creation of business synergy. Further, it can be stated that there are various positive impacts of integration as companies can merge with other companies. It provides them high power to attract more number of customers. It mainly assists in creation of corporate giant that can emerge as a leading business unit within industry (Crick and Spencer, 2011).
Vertical integration: There are mainly two types of vertical integration i.e. either backward or forward direction of business operations. Forward integration assists the organization to capture high market share by selling products directly to customer. It also facilitates customers to purchase products at lower prices. By going through the forward integration any of the business unit is able to create positive brand image in the mindset of customers (Beaver, 2005). With the help of this company can directly sell different products to their customer and make proper communication with them. On the other hand, backward integration also helps in creating leading position within the industry. Creation of services is the major consideration in hospitality industry. By going through the latest creation as well as innovation companies can easily provide high quality services to their customers and make indefinite impression in their mindset.
They can also provide quality services to their customers at very reasonable price and gain higher competitive advantage. The business integration as seen has various positive effects and it also provides an expansion opportunity to companies. It might leads to provide long term success to company (Cooper and Hall, 2012). With the help of this, hospitality industries can attract large number of customers by providing them various accommodation services as well as food and beverage services. It is the best way to promote different organizations and support the tourism of country. Further, government of country can take several initiatives in order to retain their visitors and develop environment friendly country (Hassanien, 2006). Globalization is one of the major issue due to which companies are adopting several strategies in order to maintain their customer base and retaining their customers.
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market
The rationale which can be drawn for starting up a new vintage restaurant in East London, Stratford near shopping center is to attract larger consumer with the product and services as per their needs and wants (Law and Jogaratnam, 2005). This market has been selected as it will help in attracting larger tourist visiting from different destination. Even this area has got different direct view to Queen Elizabeth, Olympic park and sufficient parking places. Business is also going to target the individual who will be passing through this way for the purpose of relaxing. Hence, restaurant is going to provide them with excellent ambiance, diversity of services and opportunity to have drink and food.
A plan for hospitality business including the operational requirements
Stage 1 - Development:
The main aim behind opening up of a new vintage restaurant in East London, Stratford near shopping center is to attract larger consumer of London and tourist with the product and services as per their needs and wants (Muller, 2010). In this particular there are already different restaurant serving the needs of people, but vintage restaurant is going to serve their consumer as per their wants and demands towards drink and food. If business will be coming up with such a concept then management will be able to attract larger consumer at their restaurant. Business is going to come with different cuisine in their operation such as Italian, Mexican, Portuguese, French, Romania and Indian. Presenting so many cuisine will help in attracting larger consumer towards the restaurant.
Before coming up with any kind of restaurant concept in East London, Stratford the most important aspect that management needs to initiate is with respect to the research of that particular area. In order to come up with such a restaurant it is important to look after different area by the management. The most important aspect is with respect to location that whether business will be able to customer from the area near to shopping center. It is crucial for the organization to identify that carrying out operation in the area will help out business in making appropriate profits (Warren, 2010). Even it is important to search that the restaurant location has got direct view to different attractive location and sufficient parking places. For carrying out the research in an effective manner data will be collected from both primary and secondary sources. Primary data will be collected for understanding perception of consumer towards opening up of new vintage restaurant near shopping center. On the other hand secondary data will help in getting the overall view of the place for starting up of a new business in East London Stratford. In order to access primary data questionnaire technique will be adopted (Hemmington and King, 2000).
Vintage restaurant is going to target the consumers who are visiting to the shopping center. Even business will be looking after the consumer who passes by Stratford. Further, tourist can be attracted in an appropriate manner as restaurant has got direct view of direct Queen Elizabeth, Olympic park and sufficient parking places.
Products and services
Vintage restaurant is going to provide different kinds of cuisine in their operation such as Italian, Mexican, Portuguese, French, Romania and Indian. Initiating such a big cuisine will help organization in making greater profits within business.
Before starting up of the operation effective license will be undertaken by the government of UK in order to start up with a restaurant business in East London, Stratford.
Stage 2 - Design:
Effective ambience will be provided as entire walls of the restaurant will be painted using Italian wallpaper (Chen and Choi, 2008). Even it will be covering renowned painters painting from different parts of the world. In the corners of the room handicrafts will be placed on the table and floor for attracting larger consumer to the restaurants.
Restaurant will also be having a terrace equipped with long wooden tables, wooden sofas and chairs. Even at the terrace small playground will be provided for the children at a best corner of the terrace and will be containing age specific toys and accessories.
Vintage restaurant is coming with one of the best place of East London, Stratford near shopping center. It will be providing the consumer with an effective view of Queen Elizabeth, Olympic park and sufficient parking places.
In order to carry out the present operation vintage restaurant is going to come with cuisine such as Italian, Mexican, Portuguese, French, Romania and Indian. Each of these menus will be translated in a proper manner and will be including different dishes for both adults and children’s (Crick and Spencer, 2011).
Manager of the business will be looking after proper flow of customer within the vintage restaurant. Proper services will be provided to each member for enhancing the overall effectiveness of their functioning. If restaurant will be houseful in that case also proper sofa arrangement has been made for the consumer, so that they can relax their in order to have their meal once their turns appear (Gjerald and Oggard, 2010).
Customers with individual needs
Business has design their menu in such a way that they are able to meet the consumer need in a most effective manner. Consumer in the restaurant will be provided with different cuisine as per the needs and wants. This indicates that business is in a position to provide effective services to the customer visiting to the restaurant.
Stage 3 - Operation:
Staffing by functional areas
For starting up the operation of vintage restaurant at East London, Stratford there will be requirement of different officials looking after various operations of the business. Restaurant will be requiring personnel such as manager, head waiter, sommelier, cook and case workers.
Staffing issues related to seasonality
For carrying out the operation within the business effective employees will be employed in vintage restaurant in order to avoid issues with respect to seasonality (Mehmetoglu and Normann, 2013). Management will be initiating advanced recruitment for meeting out appropriate requirement during the seasonal period.
Cultural diversity and ways to deal with conflicts
In order to carry out the operation of vintage restaurant there will be recruitment of various employees with different cultural backgrounds. For keeping proper environment in the business it is important to remove different conflicts arising within the employees. This aspect can be resolved by improving communication among the staff and it can be done by carrying out various group activities for avoiding cultural diversity within the functional operations of restaurant.
Recruitment policies and procedures
Vintage restaurant will be recruiting different staff within business that will be having sufficient experience of carrying out appropriate functioning within a restaurant (Baron, Harris and Elliott, 2005). In order to select appropriate employee different test and interviews will be initiated for selecting most appropriate personnel for carrying out operations of restaurants.
Compliance with legislation
Vintage restaurant management will be undergoing different legislation with respect to employment in an appropriate manner. They will be looking after laws concerning payment of wages and salary to their employees and even there will be no gender biasness.
In order to promote the activities of vintage restaurant Luxury business will be adopting the promotional activities such as posting of their different cuisines at different social networking sites. It is because this is one of the media where majority of the consumer visit daily (Conrady and Buck, 2011). Even television media can be adopted for attracting the customers of London. Management adopting these promotional activities will help them in attracting larger customer towards their operations.
Restaurant business is going to keep very nominal price for the cuisine offered by them to the consumer (Law and Jogaratnam, 2005). It can be one of the strategy that vintage restaurant is going to carry out for attracting larger consumer towards enjoying of their product and services.
From the above report it has been concluded that there is a wider scope of hospitality business nowadays. It is being founded that there is positive interrelationship between hospitality industry as well as travel and tourism industry. It can be articulated from the overall study that there is an increased growth of travel and tourism in the world. There are vertical and horizontal integration in the JW Marriott in order to expand their business operations. In addition to this, a new business plan is being developed for the vintage restaurant which is going to start in East London, Stratford near shopping center. With the help of following proper stages of development they can easily attract larger consumer of London and tourist with the product and services as per their needs and wants.
Armstrong, M, and Baron, A., 2007. Human Capital Management: Achieving Added Value Through People. Kogan Page Publishers.
Baron, S, Harris, K, and Elliott, D., 2005. Consumers as Stakeholders in Service Crises: Perspectives from Services Marketing. Risk Management.
Beaver, A., 2005. A Dictionary of Travel and Tourism Terminology. CABI.
Brown, P., 2003. Seeking success through strategic management development. Journal of European Industrial Training.
Chen, J. P. and Choi, Y., 2008. Generational differences in work values: a study of hospitality management. International Journal of Contemporary Hospitality Management.
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