This unit attempts to explore the diversity present in the hospitality industry. Impact of integration in the hospitality industry have been identified along with determining its future implications.
- Understanding the role that has been played by hospitality industry in travel and tourism sector.
- Developing an understanding on the integration within hospitality industry through using examples of Hilton and Marriott hotels.
- Ability to plan the development of undertaken hospitality businesses.
Hospitality industry is an important part of economy which has provided support in achieving high revenues and brand equity among international visitors.They together provide wide variety of services and amenities to attract large number of travellers from overseas nations. Hospitality industry provides facilities such as transportation, accommodation, food and other important facilities in order to meet continuous changing requirements of customers. Present report is based on the analysis of interrelationship between hospitality and broad travel and tourism businesses (Cook, Hsu and Marqua,2014). Case study has been considered to determine the implications of integration between organizations in the hospitality industry. Further, various effects of merger and acquisition have also been discussed with an aim to provide clear understanding of impact of this integration. In addition to this, rationale for establishment of new small size hospitality business has also been discussed. At last, an appropriate plan has been made to determine operational requirements for establishment of new hospitality business.
1.1 Interrelationship between hospitality and wider travel and tourism businesses
Hospitality businessis considered as the most important service providers to travel and tourism sector. High growth and revenue has provided a major influence on the business. In present competitive scenario, an enterprise is likely to achieve high growth and recognition across countries. For this, they are making continuous efforts to identify and meet continuous changing requirements of customers. In case of hospitality industry, customers are continuously spendingtheir major time at their hotels especially when they considered it to be as guestswhich would like reapingthe beneficial aspectswhich are being provided at the hotelwhere they are staying, especially in accordance with theyare staying especially in regard tothe premium prices they are paying (Walker and Walker,2016).In this context, as junior consultant there are various service have been discussed which clearly determine relationship between hospitality and wider business of travel and tourism sector.
Globalisation has also improved situation of hospitality industry because it has removed trade and other barriers between countries. Travelling to other countries has also become strength of company that affects their business. Companies are more emphasised towards improvement of amenities to influence tourist because travelling to other countries has become a trend that people needs to followand achieve their objectives. Travellers are more likely to take experience of luxurious and attractive amenities which attract tour operators and achievement of business objectives.High growth and recognition between organisations have provided a major impact of business opportunities. There are various important services that have provided implications on hospitality organisation together with travel and tourism companies such as:
- Packaged holidays: In accordance with this, functions of hospitality industry is very important because hotelsthat have their inclusionwithinvarious holiday packages are finally based on prices which have been paid by customers in accordance with theseimportant packages When a visitor has opted for low budget package, then it will not likely to take experience of 5 star accommodation or other services (Xiang,Magnini and Fesenmaier, 2015). Further, hotel is also having special contracts with the individual travel agents which are providing exclusive rates for their establishment in return of effective and confirmed flow of customers from the side travel agents. In UK, hotels have their coordination and integration with tour operators which provides proper and low rates according to choice of customers.
Tour packages are designed by travel companies by coordinating with hotels which provide them accommodation service for their customers on low prices. For example: Make my trip has a wide connection with hotels and other service providers in overseas nations (Yüksel, 2017). TUI group is also an international tour operator which has its interrelationship with different hotels and travel companies in hospitality sector. These holidays packages are considered as secondary factors which are considered along with destination a customer chooses to visit.These attractive packages will allow company to attract wide customers from overseas nations.
Read this sample: Hospitality Provision
- Aviation:Findings states that the success of aviation industry is also widely based upon the availability of accommodation in hotels.When there are no accommodation facilities in hotels then there are wide chance aviation companies for facing losses in their business operations.It is considered be a effective and systematic scenario, with respect to airline companies which flyto some specific small destinations such as Malta, where are chance of occurring some circumstancesin respect of availability of accommodation and other services (Schuckert, Liu and Law, 2015). Hotels also have their inter link with Aviation companies and they always focus on providing attractive service as per requirements of their customers.
- Business travel: Employees andbusiness manthat arrive from different countries in UK often needs to stay in hotels where they will get all facilities such as Wi-Fi, luxurious environment, space for meetingsand 24 hours services.These individual would also likely to indulge in some attractive and leisure activities such as spending their time in getting relaxation within pool and Spa services.Findings state that business travel in many countries has become affordable for individual in accordance with various business enterprises due to availability of low budget airlines (Becker, 2016). Apart from this, there are some organisations which provide more focus on increasing their status in market and for this they would likely to provide their business class facilities to their employees. Therefore, hotel and aviation companies have also provided focus on development of business class service their hotels and flights.For example: growing tourism countries like India and China are considered as widely popular destinations for business travel (Remington and Kitterlin-Lynch, 2018). Therefore, growing hospitality industry organisation has provided their more focus on expansion of business in these countries.There is wide growth within hospitality and other industries at these two emerging destinations, which is why international enterprise does not want to lose the opportunities for business expansion.
- Conferences: These exhibitions and conferences are usually having wide importance on the domestic and international level in tourism sectors. There are large number of organisation who prefers to organise their business conferences and seminars in hotel where they will also be able to provide food and accommodation facilities to their employees and guests (Moutinho and Vargas-Sanchez, 2018). In order to attract these companies,Hotel always provides their focus on development of various facilities in their premises and tends to attract qualified employees which are able to provide quality service to their customers. For example: ITB is an international exhibition which attract people from different countries. Sports events and cultural events also attracts tourist from different countries which are also likely to stay in hotels.
- Visitors attraction: Hospitality sector also plays an important roles in attracting wide customersfrom different parts of the world. These companies have played an important role in attracting wide number of customersin order to provide a super relaxing and comfortable business environment which has been considered as necessity for every accommodation service providers. There are many factors of this industry such as luxury hotels, resorts and cottages attracts various business class people and their family as they require spending their holiday at a comforting place just for having some relax from their daily life. This trend has led to increase the travellers and their demand for tourism. This has led to both the sectors strongly connected to each other by providing mutual benefits.