The Investigate The Hospitality Sector Tourism Essay Example

reception, concierge services, valet parking, housekeeping, maintenance, and room service around the clock. Other expected amenities include in-room minibars and safes, complimentary toiletries, high-speed Wi-Fi access, laundry services, fitness centers, spa facilities, and business centers. In contrast, four and three-star hotels provide a more comfortable atmosphere rather than luxury. Two and one-star hotels offer basic yet clean accommodations suited for those who plan to spend most of their time outdoors.

Suites are basic but have a color television and a private bathroom. However, as the star rating decreases, the number and possibly the quality of amenities and services also decrease. While there may be occasional issues with service due to human variability, cleanliness should not be compromised. Health authorities should regularly enforce strict health regulations to ensure that hotel operators prioritize cleanliness.

Cleanliness is highly important and is considered by Trip Advisor as one of the main categories for ratings, along with service, location, rooms, sleep quality, and value for money. Guests can also support their claims about cleanliness with candid photos. However, the amenities and services provided by hotels often vary from country to country and even across different brands within the same destination. Like any other company, it ultimately falls on the management of these establishments to meet or exceed their star ratings, or more accurately in today's markets, exceed customer expectations.

Motels and guest houses

Motels are small hotels designed for highway travelers. They originated in the United States during the time when road trips became popular. After a day of traveling, people needed a convenient place to spend the night before continuing their journey. One well-known motel chain is Motel

6, with over 1000 locations in North America and Canada, operated by Accor Hotels group.
Similarly to motels, guest houses also offer a relatively affordable alternative to other accommodations. However, guest houses differ in that they provide bed and breakfast options, where the owners of the house prepare a simple homemade breakfast for their guests.

Some travelers specifically choose to stay in themed guesthouses, such as those that are reputed to be haunted. Camping Parks, caravanning, and Lodges offer the opportunity for people to immerse themselves in nature and the outdoors, an activity that is becoming less common as people surround themselves with technology. Caravans and family-sized motor vehicles are commonly used by groups of friends or family members for camping trips. Lodges are usually located in wooded areas, mountain ranges, or ski resorts, and vary in quality, ranging from relatively basic to more luxurious accommodations. They can be in the form of a collection of cabins with shared facilities or as individual cabins with dedicated amenities. Both options are popular choices for family outings or romantic getaways.

Self-catering flats have become popular due to their flexibility, requiring guests to cook and clean. These flats offer a homelier atmosphere compared to hotels and motels, as they come with a kitchen, living room, and dining area. Renting an apartment can be cost-effective, particularly for those who plan on spending most of their time outdoors. Wealthy tourists may prefer a luxurious Villa with a personal butler, while average families may choose to cook for themselves and spend their hard-earned money elsewhere.

Cruise ships were originally designed for the wealthy but have become more affordable for the general public thanks

to changes in business strategies and cost reductions.

Companies offer various sailing options, both long-haul and short-haul trips, with some providing all-inclusive packages while others like easyCruise requiring passengers to pay for individual services. On board, passengers typically have access to a diverse selection of high-quality food, often served buffet-style.
Service providers:
In the tourism and hospitality sectors, catering is crucial, with establishments located in different places such as city centers, hotels, boats, trains, and airlines.

Restaurants

When it comes to selecting a dining establishment, important considerations include the menu, music, ambiance, and prices. There are various types of restaurants available to meet different preferences, ranging from affordable takeout options to upscale and exclusive establishments. Restaurants play a crucial role in a tourist's vacation experience. Some tourists may frequent the same restaurant repeatedly if they enjoy it, while others may opt for a new dining experience each day. Chain restaurants provide tourists with a sense of financial security as they can expect consistent products across locations, such as McDonalds in Portugal and the United Kingdom. However, non-chain restaurants tend to offer more complexity.

Tourists frequently choose to eat at restaurants suggested by hotel concierge staff, locals, or Trip Advisor. These establishments usually cater to different preferences and budgets, offering specific options for high, medium, and low spenders in a particular destination. The most prestigious global restaurant recognition is the Michelin stars awarded to the best restaurants worldwide. Up to three Michelin stars indicate exceptional service, food quality, and overall atmosphere.

Cafe

In the past, cafes mainly focused on serving hot beverages like teas and coffees.

However, cafes have evolved significantly and now offer a variety of snacks and food options. As cafes

become more popular, they expand their menu to attract more customers. Cafes are so popular that even McDonald's has its own version called McCafe, which was created to possibly compete with Starbucks and other international coffeehouses.


Outside catering

Hospitality caterers play a crucial role in major events like conferences, after parties, and exhibitions that draw participants from all around the world. The organizers are responsible for ensuring that all attendees are ready to collectively create an unforgettable and unique experience.

Five-star hotels are often selected for major events because they can better achieve a balance between quality and value compared to lower-rated hotels or establishments.

This includes theaters, cinemas, and shopping complexes.

When going to the movies or theater, it is common to have a snack or drink. It has become a custom to enjoy food or beverages while watching your favorite film or play. Most theaters have their own snack bars that offer items such as popcorn and nachos.

In Portugal, major shopping centers like Vasco Da Gama, Colombo shopping Centre, and Cascais Shopping in the Lisbon region have their own in-house cinemas. Located right next to the cinema entrances are various catering establishments ranging from cafes to full-service restaurants.

Motorway service stations throughout the world provide dining options for highway travelers, many of which have simple cafes that also offer snacks. However, some highway service stations do have establishments like McDonald's. Motorway restaurants have become extremely popular, especially for people traveling long distances on major highways.

Rail and ferry catering

Railway riders usually have minimal or no catering services available on board. Costs will likely be expensive and the range of food options will

be limited due to the lack of space. In contrast, ferries are much larger and can accommodate more passengers comfortably. They have multiple dining areas on board, although coffee shops and snack bars are still the most practical choices.

In-flight catering In-flight meals on passenger planes are typically limited to two types of dishes. For example, AirMalta has partnered with Corinthia Hotels International to provide in-flight food. To ensure the freshness and quality of the food, portions are often small and specially packaged to prevent pressure build-up. The meals are heated and stored in small compartments in the aircraft's kitchen area. First-class passengers may occasionally have the option to choose their own meal, but this service is reflected in higher prices.

The relationship between hospitality and travel and tourism administrations is explained.


Hospitality administrations play a crucial role in the travel and tourism industry. Whether for leisure or business purposes, individuals spend a significant amount of time at their hotel, especially if it is a luxury establishment. Guests understandably expect to enjoy the benefits offered by their hotel, especially considering the premium prices paid.

Package vacations

The role of hospitality in package vacations is extremely important. Hotels included in package vacations ultimately rely on the price paid for the bundle.

If a person chooses a budget bundle, they should not expect a 5-star accommodation, but rather a more realistic 3 or maybe 4-star accommodation. Popular vacation bundles are often purchased in bulk, allowing clients to benefit from good hotel rates and airline ticket prices. Hotels also have special agreements with individual travel agents, offering special rates

to their companies in exchange for a guaranteed flow of clients from their end. Customers can choose accommodation on a room-only basis, bed and breakfast, half board, or less commonly, full board. Representatives of travel agents regularly check on their clients at their hotel to ensure that they are having a pleasant time.

They also address any issues they have encountered during their stay and resolve them accordingly. All-inclusive packages are also offered but do not provide customers with the flexibility of other packages. These packages include everything necessary for the entire stay, such as meals, drinks, hotel accommodations, tours, and all other necessities. Customers who choose these packages typically spend most of their time within the resort as most of their activities are based there.

Aviation

The success of the airline industry heavily relies on the availability of accommodations. Airlines may lose out on business if hotels are fully booked.

This paragraph stresses the significance of air hoses efficiently managing their resources to accommodate passengers on flights to destinations like Malta. It mentions instances where all hotels on the island were fully booked, highlighting the need for major airlines to carefully consider bed availability and flight schedules. Additionally, it discusses the hospitality services provided by airlines, including catering and sleeping arrangements. Budget airlines charge extra for food and drinks, while higher-end airlines offer all-inclusive options even in economy seating. Some luxury airlines go a step further with reclining beds and premium dining choices like silver service and a centrally located lounge offering various food and drink options.

Business travel:
When it comes to business travel, hotels with the necessary facilities for comfortable work are highly sought after by business travelers.

These include business centers, WiFi or cable internet access, meeting rooms, and conference areas. Additionally, services like 24-hour laundry and dry cleaning are important to them. Although leisure activities such as relaxing by the pool, visiting the spa, or exploring the area are desired during downtime between meetings, they may not always be feasible due to the nature of business travel. Similarly, dining establishments play a significant role as business travelers opt for top-tier restaurants in order to impress their associates or clients.

Companies offer financial support to their employees, allowing them to enjoy fine dining and luxurious accommodation. The demand for business travel has risen due to globalization, a trend expected to continue as destinations become more interconnected. Although budget airlines have made it cheaper, some companies still believe that flying in business class is important for maintaining their reputation. Initially, business class was designed for professionals who required workspace.

The growing industries in emerging countries like India and China are attracting international companies who want to establish branches there, making these countries popular destinations for business travel. These companies do not want to miss out on any opportunities to increase their market share and profitability.

Conferences and exhibitions

Both national and international travel and tourism industries consider conferences and exhibitions as crucial. For instance, Malta recently hosted its largest conference ever, the annual Oriflame conference, from August 29th to September 4th. This event brought in 5000 delegates who stayed at 4 and 5-star hotels, injecting a total of 8 million Euros into the local economy mainly through accommodation expenses. Outside caterers, primarily from hotels, were chosen to provide food for all delegates.

Attendees of conferences are often accommodated

at the hotel where the event is held. Exhibitions allow potential customers to view products or services before making a purchase. The International Tourism Bourse (ITB) is a global exhibition that draws exhibitors from all over the world. Companies, organizations, and tourism boards showcase their latest offerings and ideas to others in the industry. These events attract thousands of people from different countries, benefiting numerous hotels in the vicinity.

Visitor attractions

A visitor attraction refers to anything that sparks conversation or interests visitors, tourists, and others.

Attractions can be either manmade or natural. Manmade attractions include museums and theme parks, while natural attractions include national parks. Some attractions are popular because of the activities that take place there, rather than the actual location itself. Theme parks are particularly popular, with millions of visitors each year. Disneyland, located in the United States, France, Japan, and China, is one of the most well-known and popular theme park attractions in the world. Many theme parks have their own restaurants and cafes for families to enjoy a meal before continuing their fun. However, Disneyland Paris goes the extra mile by offering two hotels at the resort, which are often included in vacation packages and are highly sought after.

Discuss the concept of integration in the hospitality industry.


The concept of integration gained popularity in the 1900s, with a focus on creating economies of scale to benefit from lower operating costs. By providing their own products or services in-house, companies can eliminate the need for outsourcing and save money in the long run. Integration also allows companies to expand globally and increase their market share.

Vertical integration

Vertical integration involves a company acquiring another company in the distribution chain or entering a merger agreement. This is done to maximize profitability and take advantage of lower operating costs. Vertical integration can be forward, backward, or lateral in nature.

One of the most well-documented instances of vertical integration was seen in the United States with the Carnegie Steel manufacturing company. It possessed full control over various aspects of the supply chain, including iron mines, steel mills, railways, coal mines, and the furnaces needed for steel production. The company prioritized economies of scale and emphasized training internal employees rather than hiring outsiders. This strategy led to the development of entry barriers and limited competition in the market. Companies could also gain control over suppliers like accommodation and transportation providers to further restrict potential competition.

If large-scale integration leads to monopolistic behavior, government agencies will intervene and impose restrictions because competition is crucial for improving quality in the services industry. Forward vertical integration is a process in which a company merges with another company further along in the distribution chain. For example, a hotel chain may decide to acquire its own travel agency or tour operator in order to expand into other markets. Hotels often negotiate agreements with travel agents and tour operators, offering special room rates and deals for customers brought to them. Backward vertical integration occurs when a company purchases one of its suppliers and utilizes its inputs effectively for the benefit of the organization.

A circuit operator has the option to acquire either an air hose company or a hotel because both provide services that are essential to the travel industry.

TUI AG, throughout its growth, has established the TUI Hotels and Resorts brand. This brand operates various hotel names, including Robinson, Magic life, Iberotel, Grecotel, Riu, and Grupotel. In total, there are 243 hotels owned and managed by TUI Hotels and Resorts worldwide. Recently, TUI AG has embarked on a new venture – the first hotel under the TUI brand. The TUI Hotel Kaluga consists of 136 luxury suites and 74 flats, catering specifically to business individuals. On the other hand, lateral integration involves merging two organizations that may have indirectly related products and services but do not necessarily compete directly with each other.

The three types of perpendicular integrating offer a summary of possible strategies that companies can adopt. These strategies are frequently used in companies, which often utilize different variations of them.

Horizontal integrating

Horizontal integrating is important for companies that aim to expand their customer base, take advantage of economies of scale, and, most importantly, maximize profitability. This occurs when a company purchases or merges with another company at the same stage of the distribution chain. A notable example of this is when Hilton Hotels International bought a hotel at the Walt Disney World Resort for ?92,202,465 in August last year. Recently, Toyota, Peugeot, and Citroen formed a consortium to produce their 107, C1, and Aygo cars, which are all based on the same shared platform, engines, and hardware.

The three companies collaborated and combined their knowledge and resources to achieve a shared objective. Although this example is not directly related to the hospitality industry, these cars have significantly contributed to the increase in sales for car rental companies in Europe. This is because tourists

find them affordable to rent, environmentally friendly, reliable, and enjoyable to drive. Horizontal integration can also be complementary rather than competitive. Airlines often closely collaborate with hotel chains to reap some of the benefits offered by mergers without assuming the actual risks involved. Such relationships are evident in the selection of airlines made by hotels for their airline mileage programs. Airlines gather information from hotels to align their flight schedules with accommodation availability, but this may not always be feasible due to the dynamic and complex nature of the hospitality and travel industries.

To avoid disappointment, most tourists prefer to book their accommodation in advance to ensure that their rooms are available upon arrival.

Advantages of integrating in the hospitality sector

Branding can evoke specific emotions or memories associated with a particular brand. In the tourism industry, the success of businesses relies on effective branding strategies and the ability to effectively communicate with target markets. It is crucial for customers to be able to connect with these brands, and vice versa.

Trade names often strive to have their loyal customers perceive their products or services as a reflection of their personal identity or character. For example, if a group of business individuals stay at the Sheraton Pine Cliffs hotel in the Algarve, they would expect to experience the same check-in procedures, business amenities, and luxurious offerings as any other Sheraton hotel. It would be considered undesirable for there to be any significant differences in the quality of services provided for the amount of money paid. Westin is also a part of Starwood Hotels and Resorts, just like Sheraton.

The Westin Dragonara Resort in Malta is a high-end brand that caters

to a variety of clients seeking luxury accommodations. It provides top-notch amenities for business people, as well as all the comforts and indulgences that couples would expect for a romantic getaway. Additionally, it is known as the most family-friendly brand within the Starwood group, offering facilities where children can play under constant supervision. The resort's team frequently organizes daytime activities, such as Sony playstation tournaments for teenagers or interactive games and other fun activities for kids.

Westin hotels worldwide also offer a kids' check-in point to make them feel as important as their accompanying adults. These concepts are part of the company's branding strategy. Along with other factors, children can use their positive experiences to influence their parents to visit the same hotel again and again.

Market control and integration among larger organizations

Several major tour operators in the UK have acquired hotels abroad to expand their global presence and profitability.

By implementing this strategy, larger hotel companies can manipulate their rates in order to benefit themselves, potentially offering more affordable packages to their customers while boosting their overall profits. However, this approach can be detrimental to smaller companies in the industry. The integration of large corporations undoubtedly poses a threat to smaller businesses, resulting in potential hardships for employees and their families as the larger companies take control. While this may be unfortunate, the travel and tourism industry ultimately relies on the survival of the fittest; those companies that can effectively provide the best combination of quality, quantity, and value for money. In some cases, the growth of the Internet is limiting the potential for forward integration, particularly with regards to vacation packages.

Some travel agents have been unable

to transition their operations to virtual platforms due to financial constraints. The rise of dynamic packaging and online booking systems has also posed a threat to these companies, leading UK tour operators to close retail stores and focus on internet marketing. While customers can benefit from cost savings online, this shift could result in widespread unemployment. Many hotels have adopted direct internet marketing through their own online booking systems, making the reservation process easier, cheaper, and less time-consuming for guests and hotels alike.

However, a reserves squad is still needed for those engagements which are made directly with the hotel over the phone or at the front desk. Some individuals prefer making physical payments because they may not want to provide their personal details over the internet, or they simply enjoy the human interaction.

Increased globalization

After a company successfully expands in its country of origin, it often targets international markets next. Globalization is the result of multiple expansions, which can be analyzed from both an internal and external perspective.

A company will experience both 'internal globalization,' in which its employees from around the world establish relationships with each other, and 'external globalization,' which involves interactions between team members and clients from diverse locations. Social networking websites also facilitate such communication. Companies often establish their own profiles on platforms like Facebook and Twitter, where team members and loyal clients from different parts of the world can join and engage in discussions.

Globalization has led to a significant reduction in trade barriers, particularly within the European Union. Countries within the EU enjoy lower prices for products and services when trade takes place within the Euro zone. This greatly benefits both buyers

and sellers, especially when purchasing in large quantities.

Starwood Hotels and Resorts Worldwide is undeniably one of the most influential global hotel and leisure chains.

It achieved great success through its integration efforts in recent years. In 2005, Starwood acquired the Le Meridien brand along with its entire portfolio of 130 hotels and resorts worldwide. This acquisition significantly expanded Starwood's customer base with highly sophisticated properties in Africa, Europe, the Middle East, and the Asian Pacific, among others. Additionally, Le Meridien's loyal guests have also benefited from Starwood's preferred guest program, as they now have access to over 700 destinations as a result of the acquisition.

Mr. Steven J. Heyer, the former CEO of Starwood, expressed his enthusiasm for the acquisition of Le Meridien as a significant development for the Starwood brand. The addition of Le Meridien hotels expanded the presence of Starwood in locations where they had limited to no presence before the acquisition. The Le Meridien brand offered another exciting venture to complement their recent Aloft hotel brand. Since the acquisition, the Le Meridien brand has seen consistent progress with notable improvements in revenues and growth.

Le Meridien Balluta in Malta is one of Malta's top five 5-star properties and is steadily making progress. It started operating in 2004, just one year before the brand's acquisition by Starwood.


The impacts of integration



Economies of scale and market share

Significant cost reductions can be achieved through integration. If a tour operator acquires a hotel, although the initial investment costs may be high, immediate benefits can be seen by offering a wider range of products or services.

Integration in this case would allow the circuit operator to reduce its reliance on other adjustment

suppliers as most operations can be handled within company parameters. The more reputable hotels the circuit operator is willing and able to invest in, the more it will benefit from an operating cost standpoint. It can lower the costs of its packages and pass on the benefits to the consumers. By implementing effective strategies, market share will increase and profitability will be maximized. Horizontal integration allows companies to expand their existing customer base, while vertical integration enables entry into new markets and attracts a completely different customer base.

Standardization
Standardization is a complex and time-consuming process, especially in an industry with numerous variables.

Automated procedures can be standardized, but it is more challenging to standardize the human component while not being impossible. For example, McDonald's restaurants worldwide have standardized their procedures. Regardless of the location, the processes employees follow are very similar, including the food preparation. The company is highly efficient, focused on time management, predictable, and has control over its procedures and workforce. Standardization is possible in hotels, but it has limitations.

The way that a