Function of hospitality in travel & tourism
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The main motive of the hospitality industry is to satisfy their customers. Professionals of the hospitality industry generally work in the environment totally devoted to the customers. Services of the industry are designed as per the needs and demands of the customers (Boniface, Cooper and Cooper, 2016). Hospitality and tourism sector merge together and provide wide range of the services such as food and drink, accommodation as well as leisure activities. Diverse roles played by the professionals of the hospitality industry are from catering personnel to croupiers. The main purpose of the tourism sector is to deliver quality oriented services to their clients in order to enhance their experience. The flavour of hospitality industry in the travel and tourism sector is to bring out the innovative and creative services for different types of tourists. Touch of hospitality services in the tourism sector is to provide complete and unique facilities to the customers such as business clients, regular clients etc.
1.1 Explaining the roles and responsibilities of hospitality industry within travel and tourism sector as well as interrelationship between them
An assistant manager in the hotel is responsible for increasing revenues by different sources in order to raise credibility of the hotel in the whole hospitality industry. Improvement in the services of the hotel can attract lots of clients (Ariffin and Maghzi, 2012). There are availability of the wide range of the services such as accommodation, business meeting and leisure activities under the single roof to obtain customer satisfaction. An assistant manager is responsible to coordinate all the activities of the hotel and generate huge amount of revenue in the accounts of hotel business. It also enables to coordinate all the personnel of the hotel to ensure customer satisfaction in terms of facilities provided to them (Cui, Hastak and Halpin, 2010).
Following are the roles and responsibilities of hospitality industry within travel and tourism sector:
Research- Customers choose hotels on the basis of geographical location such as accessibility of the roads, connected with the railways or airways, facilities of business meetings provided by the hotels, other facilities provided by the hotels, popularity of the hotel and final consideration of every customer is price of the hotel or the packages selected by the customers (Gretzel, Wang and Fesenmaier, 2012). An assistant manager is required to identify the factors that shape future of the hotel in order to gain competitive advantage over its competitors.
Awareness- The major issue involved in the hospitality industry is to create awareness among the customers to clarify all the doubts in context to the services of hotel (Kusluvan and et.al., 2010). The website of the hotel has to be developed in an effective manner so that clients can have all the details about the hotel such as facilities provided by the hotel industry, rating of the hotel, location details, travel agencies which provide tickets of the roadways, railways and airways etc. Travel information is provided to the clients in order to facilitate them to select the travel option according to their budget and convenience (Law, 2010).
Building customer relationship- It helps to build stable revenue base and develop strong relationship with the customers. A customer oriented program needs to enhance the loyalty among the customers and business by rewarding them when they book travel ticket and tour packages.
Interrelationship of hospitality industry and wider travel and tourism business:
In the present world, importance of hospitality sector has increased with the changing time and it includes travel and tourism industry (Bendoly, 2013). It also helps in handling large number of tourists. The main aim of the travel and tourism sector is to satisfy customers along with meeting the needs and expectations of the clients. It also includes setting standards and fulfilling those standards to ensure the customers satisfaction. One of the organizations is “Make my trip” which is a website that provides all the travel information, hotel bookings and tour packages to facilitate the customer's needs (Boniface, Cooper and Cooper, 2016). It also has an option to invite people in order to share their experiences about different places in the world where they visited. Past experiences of the people aid a lot to other customers to plan their vacation and help to choose right tour packages as per their needs. The hospitality sector also includes hotels, accommodation facilities, entertainment provided to the customers, restaurants, cafes, catering services etc. (Brotherton, 2013).
The important need of the customers after reaching to the destination is to seek proper accommodation to get some rest. Services related to accommodation can be provided in the hotels, motels or guest houses as per the demands and expectations of the buyers (Crouch, 2012). Staff of the hotel has responsibility to deliver the best quality services to the tourists in order to increase their staying experience with the hotel. Accommodation of the client mostly depends on the tour packages provided by tour operators. Accommodation facilities include other services such as maintenance service, room cleaning service, laundry service, ordering food directly from the room to facilitate the guests etc. (Law, Leung and Au, 2013). Another important aspect of the hotel industry is restaurant in the hotel to deliver delicious and quality food to the clients.
Restaurant – These are the places where tourists can eat and drink as per their needs and demands. Every restaurant is different from one another in terms of ambience, uniqueness in the menu, prices and services provided to the consumers (Lee and Brahmasrene, 2013). Tourists also visit cafes to meet needs of the beverage and snacks. The items included in the menu of the cafe are few as compared to the restaurant such as coffee, tea, shakes, muffins, cakes, pastry etc. to meet needs of the buyers after the lunch time.
Entertainment services – These are provided to the guests including cinema theatres, shopping malls and theme parks to give them leisurely environment full of fun and enjoyment. These places also include food and beverage services to cater the needs and wants of the clients (Lunt, Mannion and Exworthy, 2013). These also increase the curiosity among the guests and lead to enhancement of their tour package period to enjoy the vacation with the hotel and its services.
Business meetings – These are the important services provided by the hotels to cater the needs of business clients such as conferences, seminars, meetings etc. Nowadays, with the changing of the technology, business is expanding and with the expansion, meetings are held outside the domestic country (What Exactly is the Hospitality Industry?. 2015). It arises need of the hotel industry to conduct business meetings, seminars, training provided by the business to their existing employees in order to achieve the business targets even in the complex time period.
Aviation Industry – It is the industry which supports the hospitality industry by using services such as food and drink which are served in the airlines to fulfil needs of the customers who pay huge amount to the airlines to travel from one place to another (Gursoy and Sandstrom, 2014). It plays a wide role in the aviation industry to deal with all the food and beverage requirement.
2.1 Analysing the implications of integration to hospitality industry
Hospitality industry is the combination of various service based businesses such as tour operators, hotels, restaurants, theme parks, lodges, transportation, hospitals and advisory services provided to the clients (Hay, 2016). Hospitality business consists of several kinds of working groups including front office, back office, maintenance unit, operations unit, department of human resources, marketing and promotional department etc.
Internationalization is defined as an expansion of the activities and resources among the countries in the whole world beyond the domestic capacity level. In internationalization, the company should be more effective and efficient to fulfil expectations of the clients globally. It provides a global viewpoint on the hospitality and tourism industry (Jayawardena and et.al., 2013). It is a major trend for today's organisations to provide quality oriented services to their customers. Due to enhancement of international business, scope of the services in the hospitality industry is spread all over the world. A rapid internationalization took place in 1990 of the world economy. It increases the opportunities for the export and import of the services. It also boosts up the growth of the hospitality industry by extending their services around the world (Kusluvan, Kusluvan and Buyruk, 2010). Internationalization of industry is characterized by communicating with the foreign languages, travelling to overseas countries and dealing with social and cultural systems of other nations etc. It also regulates the environment and constant monitors the environmental conditions.
Increasing trend of the globalisation in hospitality industry will largely affect its overall growth and profitability (Lee, Dopson and Ko, 2016). Due to globalisation, hotel industry is well prepared to face the changes in the future environment. General product and brand position of the business are spreading all over the nation.
Following are the positive impacts of integration on the hospitality industry:
Exposure to wide cultures- Due to increasing trend of the internationalization in the hotel industry, uniqueness of the different culture is combined together to create humanity and equality atmosphere (Osman, Johns and Lugosi, 2014). It also helps hotel industry to enhance awareness about the variability of the cultures and deliver the best quality services to their clients.
Larger market- It helps hospitality industry to grab attention of the customers by providing improved quality services. It has widened the market share of the hospitality sector. The major part of the revenue comes from the international visitors (Radojevic, Stanisic and Stanic 2015).
Development of technology-The firm needs to adapt with the new technology in the market in order to deal effectively with the dynamic environment and satisfy their customers. For Example: Eccleston Square hotel in London uses innovative and unique technologies to grab the interest of their customers (Smith and Puczkó, 2014).
Employment generation- It has created several number of jobs to support the nation's legislation to provide employment to every individual.
Global services- Every hotel caters the needs of the customers who are from the diverse cultures, cuisines, traditions and languages (Tang, 2014). The largest revenue comes from the international visitors; therefore, it is essential for hotel industry to take care about the feelings international clients.
2.2 Discussing how integration has affected a hospitality business
Following are the impacts of integration process on a hospitality business:
The most significant advantage of integration is to provide competitive advantage to the hospitality business. It helps an organisation in combining their core competencies in order to use against their competitors. Unique ability of an organisation helps to beat the competition in the market (Lunt, Mannion and Exworthy, 2013). The global advantage or competitive advantage over its competitors aids to cover the high market share. Companies can achieve global access to all the resources available in the market. Competitive advantage can achieve by obtaining customer satisfaction.
The main aim of the hospitality industry is to dominate other industries and create monopoly in the whole world. It can be created by providing the best quality services to their customers and easy availability of all the resources to facilitate the customers (Navickas and Malakauskaite, 2015). Providing new and unique ranges of the products and services to the customers helps to create a monopoly in the market. Providing all the products and services which are not available easily in the market aids to attract all the customers towards the business.
Economies of scale
The integration process will largely affect the functioning of the economies of scale. It helps an organisation in reducing their operating costs and increases the profitability of the business. It also clearly defines the ways of improving the areas of the business which are needed to be closely monitored (Raj and Griffin, 2015). It also helps to identify the weak areas of the business and also provide solutions to the given problems. It enables an organisation to increase their business performance by dealing well with the dynamic environment. Processes of the business organisation are automated in order to get specialisation in the business environment to achieve their desire targets.
The major impact of integration process is on the cost of products and services of the enterprise. The hospitality industry is customer centric sector where customers are regarded as king of the industry (Acton, 2012). Every customer focuses on the price of the products and services that company provides. Reduction in the amount of the cost will attract customers more towards the hotel industry. With the decrease in the amount of the cost to the hospitality industry, it also increases profitability of the company (Anheiser, 2011). It can be stated that by this, both customer and service provider get satisfied in terms of cost, price and profitability.
Diversification of business
Every organisation wants to expand their business in order to provide wide range of products with different characteristics, quality, material, cost, technology, viability of the product, product friendliness and sustainable development of the product to support needs of the future environment (Falk, 2011). Business diversification can provide new services to the clients to increase the customer base of the organisation and this in turn also raises profitability of the company.
3.1 Developing a rationale for chosen project and justifying decisions linked to target market
Following are the rationale for chosen project and decisions linked to target market are provided below:
Stage 1: Development
Concept- The business plan is developed for opening a new hotel in Chelmsford street in London UK and its name will be “Reliable”. The concept behind this is that the hotel will be completely based on “Eco-friendly theme”. When people will visit to this hotel then they will get enjoy by eco- friendly environment and feel the nature around them (Figini and Vici, 2010). The rationale behind this is that hospitality industry is one of the fastest growing sectors in the world in which new business is going to operate. It means that the hotel owner will not face any kinds of problems in relation to achieve higher revenue and growth.
Market research- For successful functioning of the project, adequate market research has been carried out in order to ensure correct implementation of the project. Market research is necessary to observe the current and past trends of the market to ensure the profitability of the concerned project (The Scope of the Contemporary Tourism Sector. 2016). It also observes high growth rate of the hospitality industry in order to predict the future of the current project and by this, they will be able to judge their future performance. Therefore, in order to survive in the competitive market, businesses are required to offer wide range of products and services to the customers which are innovative and unique in the nature.
Target market- Every organisation is required to determine the target market of the services that they are providing to grab the attention of the customers towards the company's products or services (Ariffin and Maghzi, 2012). The target market of “Reliable” hotel which is an eco- friendly hotel is youngsters and old- aged people mostly who are very diet conscious and using organic products to remain healthy and fit.
Location- Good location of the hotel attracts more customers and benefits the hotel with high rate of profitability. The hotel will be opened in Chelmsford street in London UK. This location is very effective for the hotel (Cui, Hastak and Halpin, 2010). This street is the most popular street of London and always full with lots of people which will enhance business of the hotel.
Scale- Overall size of the hotel will be large scale with different rooms, spa centres, suits, in-house restaurant, cafes and all other services that will be provided to cater the needs of the customers.
Funding- Finance will be arranged from the different sources such as the owner of Reliable hotel can approach to the bank to get a loan (Gretzel, Wang and Fesenmaier, 2012). The owner can use his personal savings in the hotel. The owner can take fund from business lenders who provide money to the start-up business owners on very less terms and conditions.
Products and services- The products and the services are designed as per the needs and demands of the customers. The owner of Reliable hotel believes in serving different products or services with the availability of uniqueness in the products and the services offered to the customers to increase their experience with the hotel (Kusluvan and et.al., 2010). Reliable hotel offers different types of cuisines to the customers such as diet food, organic Chinese food, nutritious and delicious food and many more. The menu of the hotel is fully digitalised which gives an opportunity to the customers to select their food as per their want and no need to wait for the staff to take their order.
Licencing- It is required for proper functioning of all the business operations without any barrier of Reliable hotel. It is required to maintain quality of the services provided to the customers (Law, Leung and Au, 2013).
Stage 2: Design
Ambience and interior design- Every hotel is required to maintain the interior beauty to attract the clients more towards the hotel. The main aim of Reliable is to ensure the inner beauty of the hotel to catch the interest of the customers and connect them with the hotel's design. Furniture of the Reliable hotel is to relax the customers by providing soft sofa and digitalised table to order anything they want (Law, Leung and Au, 2013). Investment in the interior designing should be made as per the demands and expectations of the customers in order to deliver quality oriented services at affordable price.
Culture- Reliable is a theme based hotel which is based on eco-friendly environment and proper set up of the hotel is as per the nature theme to give customers a feeling of using natural things.
Brand- In order to create brand reputation of the hotel, Reliable will emphasize on delivering quality services. This in turn will increase large base of the customers for the hotel.
External- Apart from decorating interior area of the hotel, they should also focus on the external areas such as Swimming pool to be used as a pool party , garden area to be used as cafe as well as waiting and rest area for the guests to wait outside the reception (Lee and Brahmasrene ,2013).
Functional area- As per the diverse functions, operations of Reliable will be managed by close monitoring by the higher authority on the lower staff to complete their duties on time. Separate places are available for reception, kitchen, bars and other areas such as store room for storing food items, inventory of the hotels and personal items of the staff members (Cui, Hastak and Halpin, 2010).
Customer flow- The main purpose of the hotel is to facilitate the customers by providing efficient services. It includes flow of the customer such as how many customers are allotted rooms. It also shows the check-on and check-out in the hotel.
Link to target market- Youngsters and old aged peoples are the targeted customers of Reliable hotel. The main motto of Reliable hotel is to focus on target market in order to ensure potential customers of the hotel (The Scope of the Contemporary Tourism Sector. 2016). It is compulsion on every business to do target market analysis to judge performance of the business in near future. It also acts as a check on the company to ensure its future strategic positioning in the competitive world.
Customers with individual needs- According to the determined target customers, products and services are offered to the customers at very cheap and affordable price in order to provide the best quality services to them and achieve the customer satisfaction (Anheiser, 2011). The basic pillar of hospitality industry is satisfaction of the customers.
3.2 Developing a plan for a hospitality business including operational requirement of the business organizational structure in relation to human resource allocation
Workers play an important role in the hospitality industry as they provide services to the people and satisfy their needs as well as wants. Effective services help the industry to enlarge customer satisfaction level to a great extent or vice-versa. With reference to reliable hotel, following processes will be implemented in human resource allocation that are described below:
Staffing by functional area: According to the proposed plan, 3 receptionist will be required for Reliable hotel and restaurant. Moreover, waiters will be recruited who will be responsible to serve food on the table according to the order placed. 15 waiters will be recruited for restaurant whereas 5 waitress will be for hotel services (Ariffin and Maghzi, 2012). In addition, 6 chefs will be selected who will prepare delicious food according to consumer’s taste and preferences. Besides this, 3 guides will be required to provide assistance to the guests to gain knowledge of various tourist destinations.
Specialist qualifications: Receptionist must have bachelor degree in hotel management and have good communication as well as inter personal skills. Waitress must have at least 2-3 year experience and must have completed a management course from a recognized university. While, for the chef, at least 6-8 year experience is required.
Staffing issues related to seasonality: Seasonality arises challenges for hotel and restaurant's staffs regarding determination of inventory level, number of workers required, food cost, wastage, appropriate timing hours of operations etc. (The Scope of the Contemporary Tourism Sector. 2016). Reliable hotel will recruit seasonable employees on the basis of same training programme which is conducted for regular employees.
Cultural diversity and ways to deal with conflicts: Reliable hotel will recruit staff from different countries so as to deal customers effectively who are from diversified culture (Smith, and Puczkó, 2014). While, conflicts will be resolved through proper training and development programme, collaboration, compromising, consistent interaction between employees and effective communication etc.
Recruitment policies and procedures: Human Resource Manager will decide recruitment policies and procedures (Kusluvan, Kusluvan and Buyruk, 2010). Conducting interviews, induction etc. are the responsibility of hotel's HR manager. He or she will frame employment policies, working hours, duties and responsibilities of each job profile etc.
Compliance with legislations: Reliable hotel has to comply with legislations when recruiting staff in the organization. Rules related to no discrimination on the basis of caste, gender etc., minimum wages and working hours etc. are needed to be complied by the hotel.
Promotional activities: Reliable hotel will promote its products and services by using promotional tools like radio, newspaper, websites and internet. It enables hotel to enhance public awareness about the rendered products and services as well as enhance the sales and profitability to a greater extent.
Pricing: Reliable hotel's manager will charge their service’s prices according to cost plus mark-up pricing technique (Cui, Hastak and Halpin, 2010). Through this, hotel can achieve desired profit percentage by adding an appropriate margin to the service cost. In this, hotel can also pay focus on competitor’s charges and decide price accordingly so that it can compete effectively in the market.
From the above study, it can be concluded that flavour of hospitality industry in the tourism and travel sector will be beneficial for enhancing the growth of both the industries. The combination of both hospitality and travel industry helps in achieving business targets. It also helps to provide quality oriented services to the customers. The report includes the roles and responsibilities of both the industries as well as interrelationship between them. It also shows positive implications of integration on the hospitality industry. It affects functioning of the business in a positive manner. It also clearly defines the developing business plan of the project chosen and rational decisions taken on the particular consideration. Lastly, it defines the development of the business plan that shows operational requirement of the plans. The provision of hospitality industry brings creative changes in the travel and tourism sector.