In today's scenario hospitality has gained much importance for handling the visitors who tends to travel from one place to another for entertainment or business purpose. This hotel industry includes various hotels, restaurants which provide comfort to the travellers which is the basic requirement while travelling. It focuses mainly on the customer satisfaction and comprises of various other activities such as boarding and transportation. Also hospitality and tourism sector go hand to hand as hospitality has a crucial role in the tourism industry. The following report includes the inter relationship of both these sectors. Also analysis of the implications of the integration to the industry of hospitality and it has affected the business. It also includes the rationale for the same project which discusses many important aspect for establishing a successful business project (Altin and et.al., 2018).
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1. Interrelationships between hospitality and wider travel industry
There is a strong relation between hospitality and tourism as they both go along together. Hospitality industry provides various services like accommodation, food and beverages, transportation, recreation and leisure. Tourism is defined as the activities performed by tourists, where they travel to their preferred destinations that provide them an indifferent experience and leisure activities while availing accommodations, foods and beverages. The hospitality industry provides services which are safe and leads to an enjoyable environment for travellers. Guest would definitely like to take all the benefits which are provided to them in the name of hospitality. There are many services provided by hospitality sector to various travellers which are discussed below:
When a tourist visits a particular place, first thing that they consider is the availability of stay and the related facilities. Many hotels provide package holidays in different sections targeting different segments of customers and after selecting their preferred packages, services are provided accordingly. After visiting many places, every traveller wants a comfortable place to reside and relax so that they can enjoy the trip in the fullest manner. Here, hospitality plays an important role by providing various services that provides a felling of relaxation, comfortableness to travellers which result in increasing tourism of that particular place. The quality of hospitality services and level of tourism are directly proportional to each other. Efficient hospitality services leads to make every traveller satisfied and happy. Customers has various options for availing several hospitality services such as some wants just a room for staying and other might want the services of food along with it so that they can save time in searching different restaurants for having their breakfast, lunch or whatever they may like. Flexibility in various packages leads to provide options to travellers and less interruption in their journey making it smooth for enjoyment.
Hospitality provides homely feeling to customers or tourists which they really require at the time of travelling. There are various special features that make every tourist to stay happily and comfortably in that particular area. There are basic facilities such as room, food and basic amenities which every traveller wants while travelling. If these services are not present their it would not facilitate the activity of tourism by them. A feeling of home is a factor which every customer searches at the end of day, and here the hospitality industry comes into role. Every tourist is provided the privilege of enjoying the personal attention under the services of this industry which they actually enjoy and refill them with a joy so that for the next day they can explore more new destinations in that area (Bruni, Cassia and Magno, 2017) .
It definitely helps to increase travellers in particular areas. There are many features of hospitality that attracts visitors to that place. This sector go hand in hand with tourism as it provides basic needs of customers while travelling or visiting any place and their fulfilment in an effective manner satisfy them with a great level. The options in the services and the facilities play a super combo for tourists to choose particular place as the part of their tourism activity. A good experience is always created by the quality of service they got from that destination. May be a place can be very beautiful but if there are no availability of staying and food, also connectivity of transport then it might attract less visitors. Being a tourist, one wants these basic criteria that should be fulfilled for creating a sense of comfort and excitement to visit that place. All these factors help to increase the level of tourism for which is beneficial in many aspects for the residents and even travellers.
With increasing visitors at particular destination, it can lead to more chances of revenue generation which in turn helps to develop an economic aspect of that area to provide more advanced tourism as well as hospitality services. Therefore in generating revenue, hospitality industry plays an immense role which also provides various benefits to the tourism industry also.
2.1 Implications of integration to the hospitality industry
Hospitality industry is considered as one of the fastest growing industries in every aspect especially in terms of development. There are various reasons which has facilitated the industry in conquering the market globally which are as follows:
- Providing world class quality in services
- Services in medical field
- Satisfying customer greatly
Hospitality industry promotes travel and tourism sector directly that increases tourism activities around the world to provide profit..
A huge demand in market has been noticed in last few years which led travellers to enquire about information related to various organisations which provide these services which in turn increase the search for hospitality services along with it, as while visiting any place one must require these services which is the heart of the tourism.
Due to strong relation between both sectors, it has created smooth functioning of various organisations in the industry providing tough competition to other competitors and fairly many advantages. Accepting the integration system possess a great importance in activities which are related to business aspect and increases the reputation or image of that particular firm. Branding is a main factor which can be considered as advantageous in this aspect as many companies provide these services who tries to develop their own websites for providing information related to booking and reservations. This is also known as Horizontal Integration, where every company focuses on maximising their profits and extending their customer base by adopting various strategies (Rachel Chiu, 2013).
Effective system of integration provides better quality of customer services. Both hospitality and tourism sector merges to provide satisfaction in travelling by giving various packages varying in cost and features accordingly so that more visitors get attracted and get convinced to avail services from them only which is known as Vertical Integration (Calhoun, 2017).
There are many advantages which are related to integration and are discussed below:
- It has resulted in reduction of transportation cost and other expenses which are related to travelling
- Integration provides assistance in identifying and solving all obstacles which are related to the process of investment at early stage.
- With the effective IT system adopted by the companies in these sectors has made easy for the travellers to acquire information related to wherever they want to travel and avail the services.
- The managing cost is also reduced as traveller gets everything in one package.
- Handling cost within an organisation is also reduced due to vertical integration, which resulted in effective handling of activities in various departments.
Where implications of integration can be such as it helps the industry for growing and succeeding as it is very important for the industry to concentrate on their services which should be same in every aspects and in every branches of the company situated anywhere. Equality in quality of services provided in every branch of the firm leads to create a positive image in travellers and they prefer to avail their services wherever they go. With a tremendous increase in the globalisation, industries such as travel and tourism has increased enormously which resulted in international trade and leads to generate huge revenues, resulting in improving the condition of economic status of country. Now, hospitality industry has become a compulsory aspect of every tourism which provides supports in many ways and they go together simultaneously which in turn provides many benefits to the nation directly and indirectly (Walker and Walker, 2016).
2.2 Effect of integration on hospitality business.
Integration affects the hospitality business in many ways and is also affected by various issues. Integration facilitate in acknowledging about the current scenario related to any market. With the continuous change in the dynamic environment it has lead to conduct integration in a manner to organize the firm which is also considered as the most crucial factors by managers to effectively run the business. It also aid to provide advancement in the structure of an organisations.
Effects are discussed below:
By implying integration in the company, it has lead to the reduction of operating cost at an immense level as compared to earlier basis. Also the initial investment in a hotel may be high but further it provides many benefits which could arise a lot of income, this process is initiated by various travel agencies for acquiring those benefits. Many hotels has given their services to several travel agencies which has helped them to emerged and earn many benefits. Therefore the economic conditions of the hospitality sector has been improved in the past few years leading to provide a great contribution in the nation's economy (Cordina and et.al., 2017).
Standardisation of services is very important aspect of the hospitality business as every other competitor is providing the same business and in the similar manner only. Then to differentiate themselves from the rivals, every firm adopts the factor of standardisation of their services. It involves various complicated activities and certain elements which are necessary to set the standard of the organisation. This is the most important aspect which every customer seeks for. For applying the concept of standardisation in the service, every firms needs to adopt more efficient, strict working environment for maintaining the level of all other branches too. in searching different restaurants for having their breakfast, lunch or whatever they may like. Flexibility in various packages leads to provide many options to travellers and less interruption in their journey making it smooth for enjoying.
Hospitality provides homely feeling to the customers or the tourist which they really require at the time of travelling. There are various special features that makes every tourist to stay happily and comfortably in that particular area. There are basic facilities such as room, food and basic amenities which every traveller wants while travelling. If these services are not present their it would not facilitate the activity of tourism by them. A feeling of home is the factor every customer searches at the end of the day, where hospitality industry comes into the role. Every tourist is provided the privilege of enjoying the personal attention under the services of this industry which they actually enjoy and refill them with a joy so that for the next day they can explore more new destinations in that area.
It definitely helps to increase the travellers in a particular area. There are many features of hospitality that attracts visitors to that place. This sector go hand in hand with the tourism as it provides various services that are basic needs of the customer while travelling or visiting any place and their fulfilment in an effective manner satisfy them with a great level. The options in the services and the facilities plays a super combo for tourist to chose a particular place as the part of their tourism activity. A good experience is always created by the quality of service they got from that destination. May be a place can be very beautiful but if there are no availability of staying and food, also connectivity of transport then it might attract less visitors. Being a tourist one wants these basic criteria that should be fulfilled for creating a sense of comfort and excitement to visit that place. All these factors helps to increase the level of tourism for which is beneficial in many aspects for the residents and even travellers (García-Villaverde and et.al., 2017).
With the increasing visitors at particular destination it can lead to more chance of revenue generation which in turn helps to develop the economic aspect of that area, making it able to provide more advanced tourism as well as hospitality services. Therefore in generating revenue hospitality industry plays an immense role which also provides various benefits to the tourism industry also.
3.1 rationale for a selected project
The concept includes various sub processes such as the generation of idea for the business, its mission and vision that would help to achieve the goals and objectives. The basic idea for the business plan would be opening up a 5 star hotel with a restaurant at the place where tourist are more likely to come. Demand for hotels are increasing at a tremendous rate because the population of UK is increasing very fast and also the visitors or travellers are likely to visit more often which shows a huge potential in the growth of the business. As there is a stiff competition in the business because every competitor is providing similar services at reasonable prices which attracts the customers a lot. But the hotels would be focusing on the those middle class family segment who cannot afford the luxurious services for their families in a hotel. The mission of the business would be to provide a certain level of luxurious services to these customers at a reasonable price which could be offered by them very easily. Vision would include every efforts that can lead to innovative strategies for providing these quality services to the customers and would help them to create a lead in the market.
Researching the market is must before setting up any new venture as one must have the knowledge of the market in which one wants to enter so that it might lead them to sustain in the market by competing with the competitors who are already established. For getting an immense success in the business one has perform a proper research of the market. The market research would include acknowledging the level of the demands of the services by the customers and also the nature of the market and various factors that influences the business. For the market research one performs the survey by making customers to fill the questionnaire related to the concept of their business that would help them to make customers connected to themselves and their relevant suggestion fro improving the ideas and their personal views related to it. This would lead to increase their chance of getting success while entering into that market (Lee and Yuan, 2018)
As there are wide range of customers in this market which means that one is able to target any segment of them which seems to be more beneficial. As the middle class families have the highest percentage share in the customers which means to target this segment means , with the success getting the large consumer bas as there is a more chance of getting these section of customers for the hotel which would lead to earn more profit sand more shares in the hospitality industry market.
Target Location and size of the hotel
The target location would be the tourist locations where these families visit more often .The size of the hotel will be around 120 rooms with 40 rooms without AC and 80 rooms will be fully air conditioned. Other facilities such as food and lodging will also be provided.
The investment would be partially taken from bank as a loan and partially will be invested by the owner itself. The investment will purely be dependent on the measure of the land owner would able to buy (Phillips and et.al.,2015).
All the activities would be done under the legal consideration and in proper legal manner by availing all the licenses that are required to open and run the hotel business.
3.2 plan for a hospitality business
The most important aspect of any hotel is the design factor which includes several other features that would lead to the success of the business. As one wants to enter in the business of hotels than the owner must focus on the ambience which is created by the hotel in the mind set of a customer. An ambience is a sensory experience of the visitor which is created by the surrounding of the hotel. A positive impact created by the ambience works a lot and lead to attract the loyalty of the customers. The culture of the hotel should be so sincere and consistent in every branch of the hotel across the city which includes the behaviour of the staff and the way of delivering the services. The name of the hotel would be taken for creating the brand in the market through effective promotions. The aspects like interior and exterior of the hotel should be very unique and attractive and should be based on a particular theme so that even a customer can recognise it through exterior of the hotel (Riley, 2014). The interior of the hotel should create a vibe of comfortableness. Functional areas of the hotel should be clearly defined to the customer so that for any help or favour they can reach to any department within a few efforts that is really liked by every visitors and expected from the services of the hotel. Their infrastructure should include an atmosphere of a home with special facilities to their children such as playing arena or a family restaurant that have special arrangements for children. Every customers has some individual needs the services should be planned in such as manner that they can be customised according to different needs. The concept of the hotel should be completely made on the aspect of sustainability which means fulfilling the present need as well as saving it for the future also.
Another aspect of the business plan is it operations which includes the answering of some questions such as what is the current requirement of the employees, what will be the criteria for judging the right candidate, which candidate is suitable for which position and what will be the requirement for the future also. In this various functional areas are analysed whether hoe much employees are required and staffing is done accordingly. For the specialist in the filed one has to decide the right qualification required for the person so that one may not take risk for recruiting a wrong candidate which would affect the whole functioning a lot. Many issues related to staffing is solved which occurs due to seasonality. Correct solutions are provided to solve these issues which can adversely impact the hotel. Certain pricing strategies should be made to attract more customers so that one can be able to generate a lead of the customers and promotional activities should be performed to promote the hotel so that one might get the recognition in the market (Singal, 2015).
Operational business plan
To effectively attain consumer satisfaction and maximise profits by gaining new markets.
There are various competitors in the market. On the other hand, infrastructure of the hotel should be linked to the target segment of the customers which is the middle class families.
As the cultural diversity of the employees differs there is a more chance of disputes among the workers which lead to hault in the proper working of the various departments of the hotel. Various recruitment policies and procedures are made so that it can help to handle the human resource of the hotel smoothly. The staffing will help company to recruit efficient employees who can provide services to customers who visits hotel.
It has been concluded that the hospitality sector plays a very important role in the travel and tourism industry as it helps to attract the customers, provide comfort to them which is their utmost requirement also with the various integration such as vertical and horizontal every business in this industry is able to make profits and improved their every aspect so that they might be a good competitor in the market. The implication of integration has also discussed with the rationale of the project which was comprised of generating the idea followed by the research in market and the target section along with the investment and licensing and further the business plan has also been discussed which has covered two important aspect of every hotel which is design and operations. Buy assignments from Instant Assignment Help Australia
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