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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR

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HOSPITALITY PROVISION IN THE TRAVEL AND TOURISM SECTOR

 Introduction

The overall contribution marked for hospitality industry within UK has been identified to gain more demand with the advent of technology. Moreover, the financial data marked for the hospitality operators in UK estimates for £57 billion and further equates to almost 4 percent of total UK GDP. The economic contribution has changed since the year 2010 and further records its gaining impact on the very fact of employment. For more than 16 percent, of UK net employment growth relates to the growth of hospitality industries. 

Hilton has been marked as one of the fastest and largest growing hospitality companies across the globe. It further owns more than 5,000 properties with about 850,000 rooms in 105 territories and countries (Hiltonworldwide.com, 2018). The company is well known within the hospitality and travel and tourism sector as a whole. The hospitality industry has been defined to establish a portfolio of 14 world-class brands that further involves their flagship Hilton Hotels & Resorts brand. The employees that are recruited in the company are well experienced in the hospitality and related industries. This further adds up the quality of services that are desired by their potential customers across the globe. However, the company visions to fill Earth with the warmth and lights of hospitality. That is to deliver an exceptional experience to each of their hotels, guests and time. The mission of Hilton Worldwide relates to being the most hospitable company across the globe (Hiltonworldwide.com, 2018). Therefore, by providing heartfelt experiences to guests, high value for owners, positive impact in their communities along with meaning opportunities for the team members, the company achieve their set mission for each of their working days.

Task 1: LO1

A. Scope and scale of hospitality industry along with its interrelationship within travel and tourism sector [P1.1]

The hospitality service in an industry aims to provide care and safety of their customers. In an hospitality industry, there are several sub-sectors as hotels, travel and tourism, restaurants and others, that aims to provide services related to travel, food, and accommodation to their guests for achieving their satisfaction as a whole (Nieves et al. 2014).

Scope in Hospitality Industry: The scope of hospitality industry comprised of a range of services that provides and further facilitates activities related to accommodation, beverage, entertainment, food and related product. However, scope refers to the GDP contribution, job opportunities, turnovers and employment scope that is possible with the service of hospitality industry within the region. The scope marked for Hilton sheds light on the very fact of generating pre-eminent global company so that the firm can stay first preference for their guests and team members.

Scale in Hospitality Industry: As marked by Brandon et al. (2016), scale within the hospitality sector are factors that helps the company to rate itself as per the services attractions they deliver to their guests,

 Therefore, it can be said that the relation between scale and scope within hospitality industry is indirectly related to each other, as any change in scale of the firm will impact scope as well (Gibson, 2017). In case of Hilton Hotel, there are different scopes that the company avails to their customers and thus get more preferences for their luxurious hotels. In addition to the discussion, there are different scopes marked for the developed standards of hotels. These comprised of the following:

     Five Star Hotels- The most luxurious hotels in the UK are marked as Five Stars with the high quality of services. The role of HR department is efficient to cater the required changes as per the changing preferences.

     Four Star Hotels- These hotel deliver all modern amenities to customers are identified on a limited budget. The quality of services is next to excellent and follows their HR responsibilities.

     Three Star Hotels- These are economy class hotels that are located in bigger and smaller cities. Hotels are low in amenities and facilities, where HR guidance may be active or absent.

     Two Star Hotels- These hotels are most available in small cities and to a selected area in larger cities. HR concept is absent from their hotels.

     One Star Hotels- These hotels deliver the most basic facilities with small number of room and are available at the cheapest price, HR concept is not at all applicable here.

Therefore, from the above held discussion on scope and scale along with their relation, the organisation of Hilton can be well justified in context of their roles and responsibilities.

Role of hospitality function in Hilton Worldwide UK

In case of Hilton Hotels, the company is already well established as the leading hospitality firm across the globe. The hospitality functions for the company totally depends on the changing tastes and preferences of potential customers of the firm. As indicated by Guttentag (2015), a good hospitality function helps the firm to get the best recommendations by making an effective effort in terms of publicity. The Hilton Worldwide has been cited as an excellent example for understanding the role of hospitality function within the travel and tourism sector as a whole. In terms of hospitality, the team working for Hilton stay focused on their accommodation services the most. As stated by Smith and Puczkó (2014), the hospitality function generally involves event planning, chief executive, concierge, front desk management, housekeeping, grounds keeping, valet parking, transportation coordination, wedding coordination and other related activities. In addition to the discussion, the role of hospitality within travel and tourism sector in UK is efficient for the development of nation’s economy. Through hospitality industry, a nation can develop its base among its competitors. Therefore, economy is highly effective on the above situation. That is, through hospitality, diversified population are gaining access to travel and adapt new cultures and further influencing the economic stability of tourists’ destinations as a whole.

In Hilton Hotels, the company is more focused on their accommodation as well as services that are directly related to their customers. That is, the service of front desk management, event planning, housekeeping, valet parking along with food production is the main area of concern (Hiltonworldwide.com, 2018). In addition to the held discussion, the organization as a whole performs each of their activities with high safety and security measures. That is the security of employees, guests personal property along with the hotel itself is always a matter of concern for Hilton Worldwide. Therefore, by being such a huge organisation with so many hotels in different countries, the need for a well-maintained department of finance, accounting and control is highly required for Hilton Hotels. The hospitality function within Hilton is always appraised by their target market and these further results to enhance the demand for the brand among its competitors (Hiltonworldwide.com, 2018).

Role of hospitality industry using appropriate methods within travel and tourism sector [M1]

Hospitality in an organisation always motivates people to travel and explore other places with all the quality accommodation services. Therefore, the role played by hospitality industry within travel and tourism sector is efficient and vital at the same time. It plays an integral role in the travel and tourism industry. As marked by Manhas and Tukamushaba (2015), efforts for making customers more satisfied and happy, the quality of hospitality within an organisation must be maintained. In case of travel and tourism industry, the provision of relaxation and comfort to the customers are the main aim of their delivered services. As stated by Leung et al. (2015), the role of hospitality in travel and tourism can be analysed with the application of Leiper System.

From the provided image of the Leiper Model, the analysis for the overall tourism system can be well justified. As per the model, there are many factors that influence the building blocks of the system. These factors further comprised of social, legal, political, technological as well as financial. Relating all the mentioned factors, the role played by hospitality is vital as it reflects a good maintenance of all the factors with a sole aim to gain high customer satisfaction. In addition to the held discussion, the very fact of getting good rooms and food in a hotel is always appreciated by the customers, but the fact of hospitality stay responsible to retain bank customers on a particular organisation (Bowie et al. 2016). Therefore, the business sectors of hospitality industry increases when they direct relates to the sector of travel and tourism. Moreover, conducting a direct relationship both hospitality industry and travel and tourism sectors, attract more potential customers from their target market spread across the globe.

Task 2: LO2

A. Integration in Hilton Worldwide and impact of vertical and horizontal integration on hospitality businesses [P2.1]

Integration in hospitality sector deals with the combination of one or more units in a manner that further results to generate a single large entity (Minazzi, 2015).  In case of hospitality along with travel and tourism sector, integration plays a significant role. As both the industries works on well-coordinated sub-sectors, the need for integration is highly required for availing better service to their potential customers. However, there are two types of integration marked in terms of vertical and horizontal integration.

Vertical Integration: The situation where two or more production phases are combined with each other is said to be a vertical integration. Therefore, a vertical integration helps to decrease the production cost of a company and further results to increase the efficiency of the company. However, as commented by Baum et al. (2016), a company that aims to achieve vertical integration requires following another company that works for the same process in the same industry.Through vertical integration, Hilton Hotels strengthen its supply chain and generate an access to new distribution channels. The Hilton Performance Advantage has been marked as an integrated system of innovative solutions and advanced technologies that aim to drive increased business (Hiltonworldwide.com, 2018).

Horizontal Integration: The situation where two completely different entities combine together under the same management for serving customers are said to follow horizontal integration (Razzaq, et al. 2016). In case of Hilton Hotels, the company when viewed in terms of horizontal integration desires to increase their entity in terms of size and economic scale. Moreover, through a horizontal integration Hilton further avails a variety of products and services to its customers by reducing competition. Therefore, it can be said that by following both horizontal and vertical integration the organisation of Hilton Worldwide stays competitive among its competitors.

Analysing effects of integration in hospitality sector [M2]

In case of a travel and tourism and hospitality sector managing a good mix of horizontal and vertical integration for success is highly recommended. As for instance, horizontal integration can be cited for the integration among the hotel and an airline industry. That is being two different entities, the industry collide and work under the same management of travel and tourism industry as a whole. However, as stated by Iyer and Chakraborty (2015), the hospitality industry must effort to get integrated with the reputed travel and tourism industries or vice-versa so that the key to success can be achieved at the initial stage of the business.

In case of vertical integration, the impact led by such integration generally connects to the company through their supply chain management. Vertical integration has been marked as one of the best ways that deliver the best quality of products to their customers (Xiang et al. 2015). Therefore, by reviewing a hospitality industry in the context of vertical integration, the benefit marked for cost reduction is always generated. As stated by Bunakov et al. (2015), there are many other factors to be noted before delivering the product to the customers. The most vital among those factors is the availability of the product at the time of demand. Another factor marks for the quality of service or the product being served to the customers. This further relates to the fact of perishable and non-perishable items that are maintained by the hospitality industry. As for instance, the perishable items are the food items that must be consumed within the given time as soon as they reach the dining table of the guests. On the other hand, the non-perishable items involve the items that can be stored and used later such as soaps, shampoo towel, and related products delivered in a hospitality sector.  Therefore, through integration, the approach towards the bright future of the hospitality form can be achieved only when the employees stay dedicated to their assigned job roles and responsibilities.     

B. Impact of integration and the decision made to respond its consequences

Integration in an organisation influences the functioning of the individual sector as a whole. That is in case of hospitality and travel and tourism sector, the impact of integration is high when the very fact of customer satisfaction is generated. As for instance, a traveller, when decides to plan vacation trip do not require to worry about bookings for airlines and hostels individually due to the responsibility that is assured by their tour operators to do the needful for their customers. The above is a successful impact of integration to collaborate two different entities under one industry. That is the tour operator will further arrange the bookings from transport till the stay of the customer as per their individual preferences.

Another impact of integration has been marked in terms of the technological approach that the tour operators make for delivering tickets directly to their customers. It is the facilities related to integration that the customers are stress-free and further agrees to pay some extra amount for hospitality services (Tribe, 2015). Moreover, the introduction of IT integration marks an excellent change in the field of travel and tourism sector. That is the customer can books tickets all by themselves through the internet and even payment can be made within less time.

Critically analysing vertical and horizontal integration in the hospitality sector with its concluding impact [D1]

 

Vertical Integration: When a company expands its business in various areas, then it is known as vertical integration. The company actually buys similar organisations that are operating within the chosen sectors where the company wants to expand its business. This means that merging of two organisations takes place (Nieves and Segarra-Ciprés, 2015).

 

Horizontal Integration: The horizontal integration is on the contrast the merging of two companies that are at the same position in the market where the industry actually same (Domingues et al. 2015).

 

In the hospitality industry, there are different sectors that operate together and thus large organisations go for the integration with the other companies who belong to the different industry but are related to the hospitality industry only. For instance, in the hospitality industry, the hotel industry, the airline, and transport industry, as well as the tourism industry, are all interrelated. The benefits of this type of integration include reduction of production costs, accessibility to new distribution channels, strengthening of the supply chain of the company (Nieves and Segarra-Ciprés, 2015). An example is that of the investment of Hilton on funding the seeds for the Global Soap Project. Other benefits of implying this type of integration within the organisation include reduction of competition, accessibility to new customers and markets. An example of horizontal integration is Marriott's acquisition of Sheraton in 2016.

 

Task 3: LO3

A. The rationale for new hospitality project outlining product-service concept [P3.1, M3]

The new hospitality project that is is quintessential as of now is an opening of a new restaurant. I think opening a restaurant is going to be beneficial integration for Hilton Hotels. The hotel and industry has been the sector where the company has been successful enough with this new type of business, the company will be able to provide diversified products and services to the customers. The choice of location is a crucial factor that has to be identified in the beginning. As of the country UK, London will be the beneficial location which is the meeting point of numerous people who enter the city with different purposes on a daily basis. In order to dwell in the industry, it is very important to provide the customers with some different and unique experience. Therefore, I would like to suggest, that the company must develop the restaurant with different ambiance based on many themes which are not yet decided. The decision on the finalisation of the theme will be done after some research about the themes that are not yet provided to the consumers of London before. The cuisine of the restaurant will be as per the theme of the restaurant; however, the items that are very famous will also be included. The restaurant is going to provide all types of services like takeaways and home delivery as well. The priority of quality in terms of food and services will be maintained as well. This is crucial for the achievement of the loyalty of the customers and gaining competitive advantage as well. In order to attract the target customers, the establishment of the brand image is highly crucial this is the reason marketing tactics will also be employed for this business project. This will include launching offers, discounts for the first time visitors who will again visit the restaurant for gaining the benefit of the discount through any token or coupon. After purchase relationship with the customers will also be maintained by different loyalty programs, like getting a membership. The requirements for this new business include recruitment of new human resource, inventory, security and licensing.

 

Conclusion

From the above-held discussion, it can be concluded that there lies a strong interrelationship among a hospitality and travel and tourism sector. The above statement through this assignment has been analysed with a reference made to the Hilton Worldwide organisation. Related to the above organisation, the impact of integration has been analysed in terms of vertical and horizontal integration. Through this assignment, the use of both vertical and horizontal integration has been analysed in terms of their impact and level of influence its cater to the functions and decision of the firm as a whole. In addition to the discussion, the application of new hospitality business has been analysed in terms of rationale and a project proposal made for a new restaurant. Therefore, with this assignment, the information marked for the interrelation of a hospitality and travel and tourism industry has been justified well. However, with the new business project introduced for restaurant functions, the very fact of required factors of project proposal has been listed with the help of the table. The influence of Hilton Hotel across the globe is efficient enough to give a tough competition to its competitors, thus, generated their vertical and horizontal integration can be recommended for sustaining their brand image for the long term.      

References

Baum, T., Cheung, C., Kong, H., Kralj, A., Mooney, S., Ramachandran, S., Dropulić Ružić, M. and Siow, M.L., 2016. Sustainability and the tourism and hospitality workforce: A thematic analysis. Sustainability8(8), p.809.

Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Taylor & Francis.

Brandon-Jones, A., Lewis, M., Verma, R. and Walsman, M.C., 2016. Examining the characteristics and managerial challenges of professional services: An empirical study of management consultancy in the travel, tourism, and hospitality sector. Journal of Operations Management42, pp.9-24.

Bunakov, O.A., Zaitseva, N.A., Larionova, A.A., Chudnovskiy, A.D., Zhukova, M.A. and Zhukov, V.A., 2015. Research on the evolution of management concepts of sustainable tourism and hospitality development in the regions. Journal of Sustainable Development8(6), p.39.

Domingues, J.P.T., Sampaio, P. and Arezes, P.M., 2015. Analysis of integrated management systems from various perspectives. Total Quality Management & Business Excellence, 26(11-12), pp.1311-1334.

Gibson, P., 2017. 2 Talent Management in the Hospitality and Tourism Context. Talent Management in Hospitality and Tourism, Oxford: Goodfellow Publishers Limited, pp.17-31.

Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector. Current issues in Tourism, 18(12), pp.1192-1217.

Hiltonworldwide.com (2018) About Hilton Hotels Available at: http://hiltonworldwide.com/about/ [Accessed on 23 March 2018]

Iyer, V.R., Dey, N. and Chakraborty, S., 2015. Advent of information technology in the world of tourism. In Emerging innovative marketing strategies in the tourism industry (pp. 44-53). IGI Global.

Leung, X.Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a review and journal preferences. International Journal of Contemporary Hospitality Management, 27(7), pp.1556-1572.

Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its impact on brand image in hospitality sector. International Journal of Hospitality Management45, pp.77-87.

Minazzi, R., 2015. Social media marketing in tourism and hospitality. Heidelberg: Springer.

Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism Management, 46, pp.51-58.

Nieves, J., Quintana, A. and Osorio, J., 2014. Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management38, pp.65-73.

Razzaq, S., Hall, C.M. and Prayag, G., 2016. Tourism Management Perspectives. Tourism Management18, pp.92-97.

Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical travel. Routledge.

Tribe, J., 2015. The economics of recreation, leisure and tourism. Routledge.

Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services22, pp.244-249.

 

 



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