Hospitality Provision in Thomas Cook Airlines

This report is based on Thomas Cook Airlines which operate their services around the UK. It is a part of airlines department. It was founded in 31 March 2003. In this report there will be a discussion about interrelationship between hospitality and travel and tourism organisation. Integration strategy in hospitality sector and its impact on organisation. Apart from this, development of rationale for a new hospitality project is also given in this. At last, developing of project proposal will discuss.

TASK 1

1.1 Interrelationship Between Hospitality and Wider Travel and Tourism Business

Hospitality

Its refers to serving of visitors through welcoming nature. It require the skills of different department and skills of staff who can handle the customers and satisfy their needs. To achieve the goals and objectives of an organisation, tourist manager provide better quality to their customers and visitors. Thomas Cook Airlines provide better services to their passengers which helps to enhance their brand image.

Hospitality Provision

These provisions consist various management services, airport facilities, travel and tourism sector, recreation and accommodation etc. The products are tangible and intangible in nature which can be consumed by the visitors (Boniface, Cooper and Cooper, 2016). Leisure facilities, transportation system and various attractions for tourists and passengers are included in hospitality provision.

Scope and scale of hospitality industry within travel and tourism sector

Scope - Hospitality industry operating within travel and tourism sector have wider scope in contribution of GDP, job opportunity, turnover etc. Airlines include hospitality industry because its main function is to provide services to customers and satisfy their needs.

Scale - Airports, airlines, management, tourist office, lodging etc. which reflects that there is a high scale of travel and tourism in hospitality industry.

The interrelationships of Hospitality provision and travel and tourism

Hospitality provisions and travel and tourism sectors are interrelated to each other in an effective manner. As per the present scenario, tourism and travelling sector gaining the growth in very fast manner. Which hospitality sector and travel and tourism sector are combine together and they attract more and more customers by which profit of both the firms are increases rapidly. Generally, profit of travel and tourism sector is depend on hospitality sector because when hotel industry provide better services to their customers then clients wants to visit that place. For this, hospitality sector need to develop their products and services and welcoming their customers in a polite manner and provide them better accommodation and food and satisfy their needs which ultimately helps to increase profit of Thomas Cook Airlines (Brooker and Joppe, 2014). It is a responsibility of both hospitality and travelling sector to enhance the experience of service user by which they visit the place again and again.

Importance of the hospitality provision within travel

Hospitality are play an important role in travel and tourism sector. In current scenario, hospitality services are consult with travel and tourism sector when they buy any package of travel and tourism. It tends to indicate the fast growth in significance of hospitality sector. When there is a large number of passengers are travel in Thomas Cook Airlines then they also required to different services like accommodation, food and beverage, standard and quality products and services etc. it helps to enhance the growth of both the sectors. The services of hospitality industry can be enhanced by analysing the demand of customers which is different in urban and rural areas. In UK, travelling and hospitality industry is growing faster because there is large number of passengers and visitors are visit the place of a country.

Interrelation between travel and tourism sector and hospitality industry

Travel and tourism has been classified into different sub-sectors. Which are interrelated with hospitality industry. Products and services provided by both are the sectors are also interrelated with each other (Cornelissen, 2017). Travelling packages, holiday package, buy one get one free ticket offer, discounting offer in hotels etc. are inter-connected through each other. Hospitality services includes tourists’ attractions, leisure services, transport services, recreational services etc. which impact on success of travel and tourism sector. Thomas Cook Airlines is deals in travelling and tourism industry which provide service to their passengers related to tourism package, relaxation features during trip, better quality of food and beverages, welcoming behaviour etc.

Role of hospitality function in tourism sector

Hospitality industry is growing at a fast speed and is promoting the growth of multicultural environment. Terms hospitality and tourism both are co related with each other. Tourism sectors involve the individual goes to other places for enjoyment, business purpose or for other reasons. Hospitality provision is known for provide accommodation, meals, venues and drinks to the individuals who are out of their homes or who go to visit other places. Both sectors cover accommodations, restaurants, hotels and entertainment activities.        

TASK 2

2.1 Integration in Hospitality Sector and Analyse How Horizontal and Vertical Integration in the Industry Affects the Hospitality Businesses

Integration of hospitality services

An integration is a process through which an organisation can enlarge their presence of business and also enhance their revenue by a specific product development. This process is repeated by an organisation to gain more and more profit. A business should have knowledge of this process and about the activities which are interrelated with integration. With integration strategy, hospitality industry can expand its product and services in other areas(Dickinson and et. al., 2014). Hospitality organisations adopts the strategy of integration for offering better quality of products and service to their customers. When Thomas Cook Airlines improves their present quality and decrease the cost of services then they can adopt the strategy of integration which helps them to gain competitive advantage. Integration can be divided into two parts: horizontal and vertical integration. Detailed discussion of these are as follows:-

Horizontal integration-

Strategy of acquiring small organisations in market which can be the potential competitors in future is known as horizontal integration. It is an appearance different large departments in a main management. When there are two different industries who are come together and become a new bigger industry is a process of horizontal integration. This type of integration results in increase number of customer and also increase the profits of company. For example: if Thomas Cook Airlines acquire British Airways then it will be considered as horizontal integration. Strategy of merger and acquisition are also include in horizontal integration (El-Gohary, 2016).

Vertical integration-

When a firm purchase another organisation in distribution chain or purchase their suppliers is known as vertical integration. It is a single supply chain than more than one system of management which develop different products and services and offer them in a combine manner to their customers. It helps to minimise the operating cost and maximisation of profitability. For illustration: if Thomas Cook Airlines acquire Hilton Hotel and restaurant then these are two different sector industries whose combination is provide their customers better services and increase profit of these sectors it is an example of vertical integration.

Implications of Integration in Hospitality Business

• Hospitality sectors generally using horizontal integration in which they offer one type of product and services to their customers. Thomas Cook Airlines have to use this strategy to combine their services with other similar sector for better growth and success.
• When there is two big organisations are integrated with each other then it make negative effect on society (Law and et. al., 2015). Because when there is an integration between two strong person then it create problem from small sectors because it is difficult for them to survive in hospitality industry. More people are unemployed if small organisations are throw out from market.
• Sometimes, the situation of integration is create conflicts. For instance: those firms who are combine together have different vision, mission, goals and objectives which create conflicts among them and also affect he decision making process of hospitality industry.
• Globalization is also affect hospitality industry. Travel and tourism sector is a great source of generating revenue so all the countries are encourage to their tourism sector to globalise their business in the whole world. Because as compared to local tourists, international tourists create more revenue.

2.2 Discuss how Integration has Affected a Hospitality Business

Integration make a large impact on every sector including hospitality industry both in positive and negative way. It helps to reducing cost and increasing economies of scope and scale. It is beneficial for Thomas Cook Airlines to getting consumer satisfaction by having command on purchasing and marketing process (Medhekar, 2014). Hospitality business can take whole customer experience by providing them everything from travelling to accommodation and food. It help to save both time and money of both customers and organisations. In this process, raw material are made by company with lesser price and they don't buy raw material from supplier. This saving helps to provide better service to their customers at low prices which attract more consumers and increase the market share and revenue of Thomas Cook Airlines. Travel and tourism sector is not depends on hospitality business because Thomas Cook Airlines have its own hotel which take the travellers from airport to hotel. It also provide facility to their customers to book the whole trip package from Thomas Cook Airlines.

Integration is a process or strategy which give opportunity to different sectors to expand their business and diversify their firm in different locations. When a company acquire competitor in new country then it enhance their presence in global market. It also provide an opportunity to hospitality sector to expand their goods and services. Food and beverage, comfort etc. can be provided to passengers at one place (Mohsin, Ramli and Alkhulayfi, 2016). It helps to renewing the brand image of non performing firm which create synergy between different activities in Thomas Cook Airlines. Impact of integration are discuss as under:-

• The positive impact of integration is that it provide competitive advantage to Thomas Cook Airlines. When two large companies are combine together then it satisfy a lot of customers and attract more visitors.
• When two companies are integrated with each other then it create monopoly in market where only few firm are available. Through which customers have no choices to select or compare of services with other firm of similar sector.
• Integration help Thomas cook to achieve high scale of economies. It also helps to reduce the cost of operations and enhance the profitability.
• By following the vertical or horizontal integration, Thomas Cook Airlines can increase their profit by reducing cost (Neuhofer, Buhalis and Ladkin, 2015).
• Integration is a process which diversify the business in different countries. It offers new products and services which ultimately enhance the customers base and make positive impact by increasing profit of Thomas Cook Airlines.

TASK 3

3.1 Develop a Rationale for Selected Project Clearly Justifying Decisions Linked to Target Market

The rationale development for hospitality organisation is discuss as below: -

Idea-

A plan would be opening a new business which consist of airline combine with aircraft. This setup will be at the location of tourist in United Kingdom. This is because of increasing demand of airlines is very high due to increasing number of population of passengers travelling to United Kingdom every year. It indicates that there is a large potential of this organisation. There is very tough competition in this segment. But a plan is made by Thomas Cook Airlines is that they focus on middle class family who can't afford the luxury services provide by their competitors. They want to provide their customers best services in a budget and affordable prices. It Thomas Cook Airlines provided better services to their customers then they will travel and visit the destination of UK again and again. It helps to enhance the national income of the country (Page, 2014). Inflow of foreign currency is also increases. It is just a starting plan which consist the expansion of geographical locations as well as other segments. This step needs a lot of market research on travelling and tourism industry.

Market Research-

Market research is necessary for launching a new firm because it provide a critical result to deciding the growth and success of an organisation. Market research include different types of research techniques which include questionnaires which is filled by people and also take personal interviews from those customers who buy products and services. It will helps to estimation of expectation of consumers and then they can easily planned about which kind of product they should offer to their customers which increase profitability of an organisation. Market research also helps to finding target customers who will happy and satisfied with services and prices of Thomas Cook Airlines. With help of market research, company can identify and examine the needs and wants of target customers.  The sample size will be selecting the 1000 passengers and tourists who will be visiting the tourist destination in United Kingdom.

Target Market-

The target market is already discuss that is middle class family who cannot be afford high package deals. Target segment will include the people from all ages specially who like travelling and want to get best services in affordable prices. Geographical location will be selected which is popular in United Kingdom (Robinson, Ruhanen and Breakey, 2016).

Target Location and Size of the business-

As discussed before the  geographical location will be tourist destinations in UK where large number of middle class families are comes to visit. Size of business will be large where approx 300 to 500 passengers can travel easily. They have to provide facility of business class and economy class. It will also consists of providing food and beverages facilities.

Investment-

The amount of investment can be own from personal amount and bank loan. This ratio will be 50:50. products and services are offered which are best in quality that helps to satisfy the need of passengers.

Licensing-

All the activities should be done through proper licensing system. All legal undertakings should be done which is necessary to open or run a new venture business.

3.2 Develop a Plan for Hospitality Business in Relation to Human Resource Allocation

In order to develop a plan for hospitality organisation there is a requirement of different stages and organisational structure along with human resource allocation. The stages includes development, design and operations. Detailed discussion of these are as follows:-

Stage 1: Development

Concept of business: At the time of developing a firm, it is necessary to identify the concept of an organisation which helps to generate ideas, mission and vision statement of an organisation. It helps to achieve goals and objective of hospitality firm and gain competitive advantage. Vision of new product should be maximum customer satisfaction (Sloan, Legrand and Simons-Kaufmann, 2014).

Market research: It is important for Thomas Cook Airlines to conduct a market research when they develop a new project. It helps them to identify the need of customers and other factors which can contribute them to gain sustainable competitive advantage.

Target market: A market is to be targeted on which they have to focus through geographical area, behavioural segmentation and demographic segmentation. In this process, passengers and their need are also focusing by Thomas Cook Airlines.

Location: The location of new project developed by Thomas Cook Airlines should be decided where large number of visitors can visit their area.

Products and services: Products and services offered by Thomas Cook Airlines should be very high in quality with satisfy the needs of customers. Other than this, quality of food and level of comfort during travelling should also by good.

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Stage 2: Design

Atmosphere: This internal environment of hospitality business should be good which attract more and more customers (Smith and Puczkó, 2014). It can be developed with innovative strategies and taking corrective measures.  Thomas Cook Airlines have to focus on safety of passengers.

Culture: The culture of hospitality business should be required for attracting various types of tourist from different culture and regions. Customers will get satisfied when they are welcomed as per their style of culture.

Brand: It is very important factor to attract new clients with keeping of existing clients. Hospitality sector have to develop their strategy and using different promotional techniques which helps to enhance the the brand image of Thomas Cook Airlines.

Interior: The interior design of hospitality business will be developed with the quality of services provided by them to their customers (Standing, Tang-Taye and Boyer, 2014). Welcoming behaviour of staff should also polite in front of customers by which they get good experience from the new project.

Exterior: This area refers to surrounding area of the Thomas Cook Airlines which should be along with features of car parking, garden area and other facilities with proper arrangements.

Customer flows: It can be observed by targeting of inbound and outbound customers. Thomas Cook Airlines have to analyse that foreign tourists are enhance their profit revenue and attract more visitors with beneficial deals.

Link to target market: Target market should be linked with the new project development of hospitality business. They also analyse preferences of customers which are altered timely.

Sustainability: This process deals with developing a project with more efficient manner by which Thomas Cook Airlines  can sustain long term in market by gaining competitive advantage.

Stage 3: Operations

Staffing by functional areas: it deals with different functional areas such as:-

• Finance
• Front line staff
• Management team and managers
• Transportation system
• Supervisors or line managers
• Housekeeping staffs
• Security staff
• Staffs in food and beverage area such as cook
• Development area management

Staff of Thomas Cook Airlines are the main representativeness of the image of travel and tourism sector as well as hospitality sector. Success of a new project development is depends on skills and behaviour of employees which they present in front of customers. Customers feel happy when they are treated as respectively. It also provide them positive experience and helps to gain organisation to attain their objectives.  Thomas Cook Airlines have to focus on their staff with specialist qualification, cultural diversity in which they can deal with without any conflicts. Promotional activities should also offer to them by which they perform their work in effective and efficient manner.

Staffing model:  One of the most common model use by businesses is Jack of all trades in this a single individual in enterprise becomes synonymous with back office. Individual start out to perform a specific role but as the time passes assumes the responsibility for everything including bookkeeping, information technology, human resources and many more. This model is largely driven by the company’s desire to contain costs. Company invite applicants and examine their skills in order to select the best one to perform different roles at workplace.

CONCLUSION

From the above mentioned report it can be concluded that there is an interrelationship between hospitality and travel and tourism sector which helps them for better growth and gain competitive advantage. When hospitality sector business is integrated with other organisation in the way of vertically or horizontally then it helps to make a firm bigger and stronger. Process of integration make positive impact on organisation. Rational is developed for opening a new hospitality business with the concept of goods and services. While developing a project proposal some criteria are analysed related to location, target market, operational model, staffing and design which is based on market potential analysis.

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