Hospitality covers a major role in the travel and tourism sector. The main aim in this unit is actually to make the learners properly gain all understanding and the roles in the hospitality industry and also the impact of integration. Kindly do answer all the learning outcomes mentioned below
- Elaborate role of hospitality industry as in travel and tourism sector
- Explain the impact made in integration with all hospitality industry
- Plan proper development of the hospitality businesses
Hospitality is playing an important role in travel and tourism sector. At international level, arrivals of tourism has increased up to 842 million. Likewise, the system of passenger transport has also improved to a huge level. Almost 883 billion have been estimated which means that foreign tourists have increased by 2.4 billion in a day (Albayrak, 2015). For employment and income generation, hospitality is graded as number one industry under service sector. It is not only growing in developed areas but also increasing in developing nations of the world. 70% of GDP of Organisation Development and Economic Co-operation of 2007 arise from service industries. This report will show the interrelationship of travel with hospitality and implications of integration in Marriott and Hilton International.
1.1 Interrelationship between hospitality and wider travel and tourism businesses
Travel and tourism can be described as the promotional practice which an individual does for his recreation purpose, leisure, business trips and pleasure. In current era, it has gained a lot of importance for the satisfaction of customers. Marriott has managed houses, night clubs, outsourced catering services. Similarly, travel and tourism provides passenger transport and accommodate customers to these hotels. Business travel is undertaken for business purpose or specific work and is not similar to pleasure trips. They promote all existing products and make special visits for evaluation. Main reason to conduct business travel is to strengthen relationship with customers. During holiday packages, accommodation is fundamental. Customers should be treated with prime care (Atalay, Hortaçsu and Syverson, 2014). This sector is also growing with fast speed after globalisation. Hilton International takes care of customers by providing quality wise services to them. For the establishments of different hotels in this sector, mergers and acquisitions have taken place which have decreased competition in the market.
Integration can be categorised into two types i.e. Horizontal and Vertical. In horizontal integration, expansion of business is focussed and in vertical, profitability is emphasized. Companies merge when they are of equal level. Relationship between hospitality and tourism just go hand in hand (Bilgihan and Wang, 2016). Hospitality sector offers services like transportation, food and beverages, leisure, recreation, etc. This is a kind of activity where customers engage themselves for travelling purpose and gain exciting experience relevant to leisure activities. In this, main time is availed in beverages and high profile accommodation. On the other hand, this industry is considered as a supplier of various services for travel and tourism sector. Main aim is to provide enjoyable and safe environment to customers.
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Package for any hotel is very important for customers. They are having lower budget would never go for five star accommodation. Fashionable holiday packages include good hotel rates, airline tickets and purchasing of tickets in mass (Bowie and et.al., 2016). They also sign contracts with customers by providing them special rates so that there is huge entrance of customers. Travel agents daily check up their clients' condition. Some packages include meals, tours, beverages and all other requirements but flexibility is not provided from other packages.
Accommodation is very much dependent on Airline industry. They can loose business if hotels are fully occupied. Thus, airlines examine situations that are relevant to flight times, days and availability of bed. Arrival of flight decides the bed facilities and staying of customers in hotel. Airlines offer beverages and food with surplus cost even to those customers who are having economic seating (Byrd and et.al., 2017). Some luxurious airlines provide reclining seating arrangements which is converted into bed on relaxing mode. They also offer central bar and silver service dining to customers.