Contents at a Glance

 Introduction  Investigate hospitality within the travel and tourism industry  PI
y Classify hospitality outlets in a travel and tourism context y Explain the interrelationships between hospitality and wider travel and tourism organisations 

P2  Describe the level of integration within the hospitality sector  Explain the implications of integration to the hospitality sector  Explain how integration has affected a hospitality organisation  Explore the design, development and operation of hospitality outlet  P3
y Develop a rationale for the project clearly justifying decisions linked to target market y Design the interior and exterior of a hospitality outlet y Explain the operational requirements of the proposed hospitality outlet's organisational structure in relation to human resource allocation. 


Words: 2500


Introduction Hospitality Management refers to many different areas of Tourism; it is essentially the aspects of travel and tourism which reflect on hotel management, restaurants and different holiday destinations. This assignment will focus on the inter-relationships between Hospitality management and Tourism, as well as looking at the integration between the two fields.  P1 ³The basic function of hospitality is to establish a relationship or to promote exchange of goods and services, both material and symbolic, between those who give hospitality (hosts) and those who receive it (guests) [...] (Lashley and Morrison (eds.), 2000:19). 

In order to classify Hospitality outlets in travel and tourism, firstly you would need to examine the different tourist destinations which hold well known hotel chains, restaurants and catering services. According to, the online source for hospitality, µIn the UK hospitality and catering outlets dropped marginally in 2008 to
262,134 establishments, down from 263,053 the previous year.

Hospitality outlets which have been seem to be successful and expand in certain destinations, are usually those placed in popular tourist destinations and attractions. Those placed in destinations such as Paris, Hollywood, Cancun or New Zealand are likely to do well and have large tourist credibility. Many Hospitality companies use leisure venues which include hospitality, that they undertake in order to progress within the industry and to reach a wider market. The different outlet include, in leisure venues;
y y y y y

Casinos Night clubs. Theatres. Theme parks Attractions.

In travel venues the outlets would include;


y y y y

Airports. Rail stations. Aeroplanes. Trains.

The free standing Hospitality venues are the traditional outlets such as;
y y y y

Hotels. Holiday centres. Cruise ships. Bars/ Restaurants.

The three Domains in the Hospitality industry formulated by Conrad Lashley and Alison Morrison consist of, the social domain in this case refers to the interactions of people and the services provided, as Hospitality is about the interaction and relationships between them and their consumers this domain would suit this notion more so then the other two. The second domain is referred to as the Private domain, this is essentially reflecting on the free standing outlets as it establishes the relationships of hospitality with their consumers through food based elements, in this case restaurants, bars and food chains. The third domain is the Commercial domain is seen as the business side of the hospitality industry. This refers to how the service or business in promoted to their consumers. It is also credited as not being an acceptable generalisation, such as the two other domains.  The interrelationships between Hospitality and travel and tourism organisations are specifically that the tourism industry attracts the consumers to different destinations around the world, by means of promotion and marketing. Whereas, the Hospitality aspect of this is they provide the leisure and comfort for the consumers, within hotels, restaurants and transport. The Tourism aspect is the demand and the Hospitality is the need, it is the relationship element which links Tourism and Hospitality, as Hospitality allows the consumers to have a


satisfaction and it delves into creating loyalty between the organisation and consumer which otherwise would not exist. Many Travel and Tourism organisations have global connections with Hospitality services in order to offer deals and services to consumers travelling to those destinations. To provide the best service for their consumers often travel organisations would help promote Hospitality services within their own company to spread the word about different companies they are associated with. As building relationships with Hospitality venues allows them to establish relationships between themselves and their clients. For example, in order for organisations to attract more people to their holiday destinations they would employ a variety of hospitality outlets, whether it is a hotel, restaurant or casino. This is usually done in expanding tourist destinations where an improvement has been seen in the amount of tourist each year. This has been the case for certain destinations where casinos and hotels have been the centre of the tourist attraction, and have created more room for development in those places as well as increased wealth, such as in Las Vegas, America. The Hospitality outlets have become the attractions, which has generated more money for the tourism organisations and expanded their tourist income. 

P2  There are two specific levels of integration within the Hospitality sector, which are; The Horizontal integration and Vertical integration. Horizontal integration is the emergence of several different aspects or firms into one main management. However, Vertical integration is the opposite as it refers to a supply chain with more than one management that produce several different products or services that are combined. The way this is integrated into the Hospitality business is by different organisations within in the travel and tourism industry formulating in several different companies being placed under one management. If you focus on vertical integration this would mean smaller companies such as an airline company merging with a tour operator, in order to expand the business and within hospitality create new relationships with different clients.


This could also be done through smaller companies in growing countries combining with larger, well known organisations to create a name for themselves and to expand within the tourism industries.  Usually organisations would use horizontal integration rather than vertical integration as they would be taking over one type of product or service and not several under one control. It would be more likely for problems to occur with vertical integration as although it would all be less than one organisation there are still different areas of the company which have their own management, so it is harder to have an over view of the entire organisation, in terms of cost, promotion and the general outlook. The level of integration has risen in the hospitality sector as where destinations are becoming more popular and desired by people, larger organisations are jumping on the band wagon and using their Brand or company to support it. One organisation may take over a hotel chain, restaurants and casinos, all under the same company but still have different management for each. This would be the same as one company but different Brand¶s under their control.  An example of the integration, specifically looking at horizontal integration would be if an airline took ownership of a chain of hotels in different destinations, such as Las Vegas but also had contracts with other airlines and did maintenance for them. Integration works more effectively when you have two different areas of the tourism industry integrated, such as an airline company joining with a travel provider. This allows the company to branch out into different fields and attract new customers to their company. It also is a good way for them to promote their brand within the other fields¶ brand, as it can reach a broader consumer, then just their current customer. The implications of integration in the hospitality sector would be the organisation which has many different firms under their control, will find it harder to manage all aspects of those firms. As with vertical integration those firms would be under one organisation but would still be controlled by different outlets. This would create problems for the whole organisation; especially if a major problem arises within one specific sector then the whole organisation would have to go under crises control in order for it not to tarnish the whole reputation of that brand as well as the whole organisation.


Integration has and can affecta hospitality organisation because if more than one company or firm merges then the whole organisation is credited as the main organisation which is in control. So for example, if Easy Jet and Ryan air which are both known for having affordable flights to destinations across Europe, decided to merge and one company starts to decline it would affect the other company also, and would ruin their reputation. Although integration can be efficient and effective and has its positive points, that does not mean that there would not be any negative effects due to one management being put in place for two different brands or companies.  P3  For this section the focus will be on looking at a hotel as part of the hospitality sector, the target market for this would be dependent on the destination of the hotel, as this could reflect on the costs and how much money people would spend to stay there, the type of holiday destination it is. Whether it is in the central of a town surrounded by historic building for people who enjoy site seeing, by the beach, or allocated in the busiest restaurant and bar area. If designing a hotel and marketing it, then it is important to take into consideration many different factors such as price being the main criteria. People are always looking for the best deals and offers, so having a hotel which is affordable, in a good location that has a good rating. The target market chosen would be both male and female, middle class people possibly with families, as many people are tend to travel in groups or with families that have children it would be important to have a family based facility on the premises and offer activities and resources for people of any age to enjoy. Many airlines offer deals for family trips and holidays so offering that same service in a hotel business would be both beneficial to airlines who want to promote their business in your hotel and beneficial to the hotel company who would build a report with different clients and airlines and attract their consumers as well as new clients. When looking at affordable but clean, good, well-managed hotels then they usually fall under the classification of 3 Stars, which is the average for many hotels. Especially now that people are on a tighter budget they are watching where they spend the pennies much more than


before. So any way they can save money is essential, and by providing them with a good service and many different facilities in the hotel but at a good price then there would be no second guessing. For this hotel the exterior would have to coincide with its surroundings, which means everything which is seen on the outside of the hotel including the hotel itself has to reflect the location and destination itself. If this hotel and company would succeed as a franchise and having a chain of hotels located in many different destinations then it would be best to keep the exterior look of the hotel traditional and classy.  In this case, the building would be like a set of apartments with possibly 5 stories high, but unlike many hotels it would have up to 3 or 4 separate buildings surrounding each other. To separate it from other hotels and nearby hotels, then allowing it to have separate buildings which are not as high as many other buildings would give it a family feel and the feel of being in a luxury small village. As it would be surrounding a swimming pool, with the reception as soon as you arrive into the mini village, closed by large gates. A playground would be allocated nearby for children to enjoy, surrounded by bars and a food area outside for people to have their breakfast, lunch and dinner. There would also be small paths with flowers and grass on the sides leading you to different areas of the village resort. Now moving to the interior look of the hotels, as they are different compartments and buildings, each room would have one level, with a balcony. Giving it a very tropical feel with a variety of flowers surrounding the buildings, which would have a red shade in order to stand out from nearby hotels. The top of the building would have small roofs to give the feel of a home away from home feel, almost like a hut style look. Holiday resorts are becoming more popular in recent years so to create a similar type of look would be effective and different compared to the competition.  There are a variety of organisational structures to be identified before looking at the specific one that works best with this particular hospitality outlet.


They include; Pre-bureaucratic structures, Bureaucratic,Post-bureaucratic, Functional structures, Divisional structures and the Matrix structure. The Pre-bureaucratic structure i best used for smaller organisations, in order to solve smaller problems. It is useful as it can help control the company¶s growth and development. Bureaucratic structures unlike pre-bureaucratic structures are suited more for larger organisations rather them smaller companies. Post-bureaucratic structures are similar to Bureaucratic structures, although they have their own significance. Post-bureaucratic structures tend to adopt µdecision making policies¶ which involve conflict strategies. Functional structures divide different tasks into specific categories, these involve; marketing, information technology, research and customer service to name a few. Divisional structures are broken down into three specific areas; product, market and geographic. The organisational is often organised into different divisions, based on the three areas. The Matrix structure usually involves different aspects of organisational aspects which are linked together, which forms the interaction of different people within the company, for example, a product manager would report to a manager in a different field of the company. The operational requirements of this hotels organisational structure would be to focus on the Divisional structures and the Matrix structures as they relate to the other organisational structures as well as delve into their own specific fields. For a hospitality outlet it is important to represent areas such as product, market and geographic, into the company¶s main criteria, which is what the Divisional structures offer. It is important to focus on the consumers demands and needs, when looking at the organisational structure and Human resource management then people¶s individual as well as group characteristics are just as important. According to the book, µHuman resource management in the hospitality industry: An introductory guide¶, written by Michael J. Boella and Steven Goss- Turner, to achieve and


improve the performance of an organisation especially in the hospitality industry they need to specify two elements. ³Identifying both individuals¶ and group¶s weaknesses and strengths so that weaknesses can be corrected and strengths developed and built upon´. Secondly, ³Identifying each individual¶s hopes and aspirations so that, where these do not conflict with the organisation¶s objectives, they can be satisfied´. A major factor in the organisational development would be µcommitment¶ as it is important for a company, in any field to be committed to what it values, offers and promotes, in order to give full satisfaction for their consumers. Overall, integration can be a positive improvement for a company especially in tourism and hospitality but it can also have negative effects. Hospitality and Tourism work well with each other as the tourism aspect promotes the holidays and the destination; it is the business side of the field. Whereas, the hospitality aspect of this is the relationship between the consumer and business, and generally builds the brand¶s loyalty with the consumer. 

References Internet: Available: Last accessed 2010.Hospitality and Catering outlets. Available: Last accessed 2010.British Hospitality Association. Available: atrix_organizational.html?cat=3. Last accessed 2010.


Books: Lashley, C. Morrison j, A (2001). In Search of Hospitality. ButterworthHeinemann.