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Interrelationship Among Hospitality & Travel and Tourism Sector

University: UK College of Business and Computing

  • Unit No: 1
  • Level: Diploma
  • Pages: 8 / Words 2055
  • Paper Type: Assignment
  • Course Code: ACF528
  • Downloads: 835

Table of Content

  2. TASK 1
Question :

An explanation is drawn for understanding diversity inherited in the industry of hospitality.

  • Examination of role of hospitality sector within travel and tourism industry.
  • Analysis of impact of integration within hospitality industry.
Answer :
Organization Selected : Travel and Tourism Sector- Marriott Group


Hospitality sector is considered as an important part of tertiary sector thus, it includes small sectors such as event management, lodging, restaurants, transportation etc. According to current market scenario, new technologies are helping this sector in providing all the facilities to its travellers in an effective manner (Darcy and Pegg, 2011). The report will focus on diversity of hospitality industry so that researcher can investigate the same in context with travel and tourism sector. Thus, for this impact of integration on hospitality industry will be determined by the learner. Interrelationship between hospitality and wider travel and tourism business is explained in this report. Apart from this, implications of integration to hospitality industry is included in this assignment. Further in this report, integration and its affect on hospitality business is mentioned. Lastly, a plan is developed for hospitality business including operational requirements of business.


1.1 Interrelationship between hospitality and wider travel and tourism business

Interrelationship among hospitality and travel and tourism sector

Name: XYZ

Date: 5 June, 2018

Hospitality Sector: It is a sector that is big and provides different kinds of facilitates and services to travellers in terms of transportation, event management, hotel industry and many more. Thus, it includes a wide range of sectors and offers excellent services according to the choices and preferences of customers.

Travel and Tourism sector: This industry includes different kinds of services such as travel events to different places, accommodations, sightseeing etc. Therefore, in current market scenario, this is one of the leading sector and most of the people are now enrolling into this as a result it is enhancing their sales and profitability. For this, industry is offering various kinds of interesting schemes which are according to needs and wants of customers.

Role of Hospitality Sector in Tourism Industry: Under the industry of travel and tourism, hospitality plays an important role and they are contributing in the economy in United Kingdom. Prime role of this industry is to provide appropriate services to its customers in order to gain consumer base. For pulling attention of maximum number of customers, people who are working under this are introducing new restaurants, amusement part at a reasonable cost. Henceforth, with the help of excellent facilities they are retaining  customer's loyalty and influencing them to visit these places again.

Interrelationships between hospitality and travel and tourism business: Ashospitality industry is growing at a rapid speed. People are now planning and travelling in different places so as to enjoy their holidays or to attend any business meetings or sports events. Main focus of this industry is to give proper services so as to gain competitive advantage. Therefore, people can avail facilities according to their choices and preferences. Other factor that must be looked by this industry is that they fix prices by considering the nature or environment of market area. Henceforth, for increasing the sales and profit Travel and tourism sector is linked with many other sectors as well. For example: Travel agency or operators are joining hands with different organisation who are assisting them in providing excellent services to its travellers like while travelling to different places as they have collaborated with various agencies in relation to  accommodation, transportation, food facility and many more. Some of the points are mentioned below in order to explain about interrelationship amongst different tourism industry:

Conferences and exhibition: Travelling is not only for spend leisure time it can also be for some business or knowledge purpose. For attending any kind of conferences or exhibition people can go for national or international trips. This is an effective idea for attracting a large number of people to any kind of specific places. Conferences and exhibition can be arranged by ministry affairs or by any big companies of country so as to increase their market shares and value as a result it will increase their productivity and profitability.

Packages and Holidays: Now a days people are preferring to plan their holiday and for this they are looking for best available offers in the market. In context with United Kingdom, there are many places where people can visit and travelling agencies who are providing these facilities are making appropriate plan and packages at a reasonable cost. Therefore, people are availing these services according to their budgets. For example: According to current market scenario or recent trends, 5 star hotel cut down their prices during the peak time of vacation as a  result it is increasing their sales and profitability. Along with this, sector of tourism is considering all the needs and demands of customers so that they can give excellent services to them. 

Aviation: It is prime role and necessity of agencies that are providing facilities of travel and tourism to make a better relationship between other countries as well so that they can operate their business properly. For example: Thomas Cook has its own airline services that is assisting them in providing better to its visitors. Along with this, they are providing food and beverages to visitors who are visiting exciting places in United Kingdom.

Business Travel: Travel is basically classified into two categories i.e. leisure and business activities. For them, travelling agencies are providing them with offers and for this they are concentrating in making effective schemes through which they can attract maximum number of customers. Travel and tourism company with their joint ventures they are providing all the facilities like meeting rooms, conference halls, Wi-Fi facilities which is helping them in retaining customers loyalty. Therefore, all the factors are helping them in improving their sales and profitability.

Visitors attraction: Around the globe there are many places that are attracting number of customers therefore, it is prime responsibility of travel agencies to make plans and packages according to the market trends that is going on in the market area. For example: As most of the people are now focussing on adventure sport for spending their holidays so they are planning accordingly. Therefore, TUI is making strategies and packages so that a large number of traveller can avail this so as to enjoy their holiday.


2.1 implications of integration to hospitality industry

As hospitality industry is very big as there are many sectors who provide excellent services under this. Most of the companies are offering their services through PKF hotel experts and they are focussing on providing excellent services as per the needs and wants of customers which is enabling them in sustaining a better position at market area. Integration is one of the beneficial factor that is as they help them in giving effective services to its customers. Hence, it is assisting them in running their business and accomplishing the task so as to gain competitive advancement (Hopeniene, Railiene and Kazlauskiene, 2015). Furthermore, it can be classified into tow or more categories through which they are developing their business operations. Although it provides maximum benefits but before incorporating this in their business company must go through necessary system through which they can enhance their operations. As a result it is helping them in delivering effective services to its clients. Along with this, it is assisting them in maintaining their reputation for a longer period of time. Thus, through this, they are getting a chance of increasing their sales and profitability in the market place. Different kinds of integration are mentioned below so as to understand it in a better manner:

Vertical integration:In this, a company purchase shares of other organisation along with its suppliers for running their business effectively. This assist them in reducing the cost that will be applied for the entire process of business operations. As PKF hotel includes different kids of hotel industry but expert of company are majorly focussing on Marriott Hotel. They are providing services along with the help of different distribution channels and this is somewhat reducing the operative cost and enhancing competitive advancement (Hovhannisyan and Keller, 2015). Further the point has been explained below with the help of an example:

For example: For providing effective services Marriott Hotel and Marston's Plc can integrate and by this step both companies can improve their sales and market value. As a result it is assisting them in giving proper services.

Lateral integration is effective if a company wants to achieve any long term objectives in speculated time frame and this will help them in attaining maximum benefits.

Importance of branding and pricing policies

Branding and pricing both plays an important role as both are necessary for enhancing the process of sales and profit level of a company. Pricing is considered as a very sensitive element so firm must fix rates which customers can agree to pay rather than making it high. Whereas Brand is what that people prefer to buy according to their interest. Thus, customers buy goods that can satisfy the needs and wants of consumers. For example: If an organisation manufacture goods as per the needs and wants of customers than it is a possibility that their sales can be increased but if it is not not done than its implications can be inappropriate. Hence, it is important that they give excellent services to its customers (Hudson and Thal, 2013). Therefore, it will help company in retaining loyalty of customers for a longer time. Globalisation is also one of the reason why the sector of travel and tourism is improving as it is helping them in using latest technologies that are providing better results in return.

Horizontal Integration:This is considered as an another integration that helps company in obtaining a competitive advancement. Other than this, it is assisting them in operating their business in a systematic manner. For making their business effective horizontal integration uses innovative ideas and thoughts as a result is enhancing customer base and providing benefits in terms economy and GDP of country. Thus, in context with United Kingdom there are various travel and tourism that are working accordingly. As a result it is increasing performance level of organisation because they are working as per the needs and wants of consumers (Jaafar and et. al., 2011).

Henceforth, all the hotels are incorporating innovation and creativity for enhancing their business operations.

2.2 Integration has affected a hospitality business

Integration has improved the working of business operations as they have made task more convenient and easier. This majorly collaborate two competences of different firms so as to attract more and more people towards their organisation. For this, they utilises resources that are available to them like technologies, cost etc. Along with this, companies are including both horizontal and vertical integration for making services more productive. Latest technologies are providing and assisting them in providing quality services at reasonable cost. Along with this, companies that comes under this must go through current market trends in order to understand and identify what is going in the market. As with the change in course of time trends also changes so it scan be quite difficult for companies to provide services in a go therefore, they must have a backup plan for this. In regards to this, if a hotel industry wants to increase its sales and profitability than they must know the peak time by analysing their past records. This will enable them in identifying factors through which profit can be enhanced (Kelly, 2010).

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