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Unit 12 Hospitality Provision in Travel & Tourism Sector
This unit introduces learners to the diversity of the hospitality industry and enables them to investigate the hospitality industry in a travel and tourism context. Learners will consider the impact of integration on the hospitality industry and the possible future implications of this in a broader context.
Learners are provided with the opportunity to select an area of interest to design and develop in an outline format, bringing together theory and practice in the creative design of a hospitality business reflecting current trends and the needs of selected customer groups.
Aim of the unit
The aim of this unit is to enable learners to gain understanding of the role of the hospitality industry, the impact of integration, and gain skills to plan hospitality businesses.
1.Understand the role of the hospitality industry within the travel and tourism sector
- Composition of the hospitality industry: hotels (1 star to 5 star, budget hotels, bed and breakfast); restaurants (fast food, cafes, coffee shops, mainstream, fine dining); pubs and bars (managed houses, tenanted or leased pubs, free houses); nightclubs; contract foodservice providers (catering outsourced to a contract food service provider); hospitality services (catering managed in-house); membership clubs; events.
- Travel and tourism sector: travel services; tourism services; conferences and events; visitor attractions; accommodation services; passenger transport.
- Interrelationships between hospitality and travel and tourism: the role of hospitality in underpinning many types of travel and tourism e.g. business travel, aviation, conferences and exhibitions, visitor attractions, theme parks.
2.Understand the impact of integration within the hospitality industry
- Integration: history and development of horizontal and vertical integration, integration via major organizations (ownership)
- Impacts: fewer major organizations, reduction of independent businesses, economies of scale, control of subsectors, increase in market share, standardization, improved quality
- Implications: importance of branding and pricing policies, independent establishments joining associations to compete with the larger organizations, control and manipulation of the market, increased globalization of the industry.
3. Be able to plan the development of hospitality businesses.
- Development: concept, market research, target market, location, scale, funding, products and services e.g. menu, licensing.
- Design: ambiance, culture, brand, interior, exterior, functional areas, customer flows; link to target market, customers with individual needs.
- Operation: staffing by functional areas, specialist qualifications, staffing issues related to seasonality, compliance with legislation, promotional activities, pricing.
Task 1 (LO1, AC1.1)
Your work as an assistant manager for an independent hotel chain based in London, United Kingdom.
You have been asked to write an article to be published in the forthcoming issue of a leading hospitality magazine explaining the role of hospitality industry within the travel and tourism sector. More specifically, to discuss the interrelationships between hospitality and wider travel and tourism businesses (1.1).
Your article should be sent in a Microsoft Word format and should be professionally structured with headings and subheadings, page numbers and relevant facts and figures. It should be approx. 1000 words.
Task 2 (LO2, AC2.1, 2.2)
Your second task is to analyze the implications of integration to the hospitality industry and discuss how integration has affected hospitality business (use example of chosen hospitality organization to support your answer). Your task should be approx. 1000-1200 words.
Scenario for Task 2
You are still working as an assistant manager for the same organization used in task 1. The company that you work for has received an offer to join the portfolio of a leading hotel chain. The board of directors are considering this move as the financial results have not been good recently. As a result, your manager has asked to write a formal report on the impact of integration within hospitality industry. You need draw relevant hospitality industry examples to assist management in decision making. Your report should address the following.
2.1 Analyse the implications of integration to the hospitality industry. You should include a range of examples from hospitality industry.
2.2 Discuss how integration has affected a hospitality business. You need to use a business within the hospitality industry.
Task 3 (LO3, AC3.1, 3.2)
Your next task is to develop a plan for the development of hospitality-based project. You have to develop a rationale for your chosen project, clearly justifying decisions linked to target market (3.1) and then develop a plan for a hospitality business which includes the operational requirements of the business’ organizational structure in relation to human resource allocation (3.2). You should include an organizational chart. Your business plan should be approx. 1500 words.
Stages of your hospitality project should be as follows:
Stage 1 - Development:
- Concept (what is the general idea, objectives, vision of your business – outline initial concept of your business)
- Market research – importance, stages, areas and topics to be research, tolls and methods you would like to use,
- Target market (evaluate segment using all basic segmentation criteria + any additional you may think of)
- Location – be specific, justify your decision,
- Scale (size, market),
- Funding (investors, loans, own budget – be realistic)
- Products and services – provide as many details as possible
- Licensing (quality, signs, grading, categorisation, membership etc)
Stage 2 - Design:
- Functional areas,
- Customer flows
- Link to target market
- Customers with individual needs
Stage 3 - Operation:
- Staffing by functional areas,
- Specialist qualifications,
- Staffing issues related to seasonality
- Cultural diversity and ways to deal with conflicts
- Recruitment policies and procedures
- Compliance with legislation,
- Promotional activities (offer promotional mix and justify),
- Pricing (pricing strategies, justify)