In the present era, the emergence of hospitality industry is entirely different. Nearly all the hospitality firms seek to make integration with other organizations in order to increase market share or to enhance profitability (Butcher, 2005). In the present study broad explanation of hospitality industry has been done which represents the activities and integration process of hospitality sector. The given hospitality dissertation report is based upon case study of Royaland. It is one of the modern theme parks that have been opened in Windsor which is situated outside the town. The theme park is comprised of three mid priced hotel, different fast food outlets and single silver service restaurant. The presents report entails to understand the role of hospitality industry within travel and tourism sector. Further it analyzes the impact of integration within the hospitality industry.
a) Role of hospitality in underpinning the success of Royaland
The hospitality elements plays crucial role in underpinning the success of Royaland as well as travel and tourism business in Windsor and nearby areas. In this regard, several elements of hospitality have been determined which exists in newly developed theme park like Royaland. It involves fast food outlets, single silver service restaurant and hotels. In contrast to this, travel and tourism includes sector such as adventure tourism and blue tourism etc. Royaland is theme park that is new developed. Therefore it is important for it to make efforts in terms of increasing large number of buyers towards the park effectively (Crick and Spencer, 2011). Such aim of Royaland can be fulfilled by taking support from mid-price hotel type of hospitality element. In this regard, it has been determined that customers show their intention towards the hotel that offers superior quality of services within economical price. Through mid priced hotel huge number of customers can be persuaded towards Royaland. With this the theme park would be able to increase its sales and profitability to a greater extent. On the contrary part, it has been evaluated that it is necessary that all the customers shows intention to purchase goods of firm offering at cheaper rates. Rather there is presence of certain customers who gives more importance of quality in comparison with price. As a result to this high priced products can also be purchased by these customers.
Along with this fast food outlet is considered another element under hospitality that underpins success of Royaland. According to the given case, it has been determined those in recent times theme park services are not just restricted towards accomplishing entertainment need. Rather in present era customers’ demands for all the amenities such as hotel, restaurant and food chain in the theme park in addition with entertainment facility (Edelstein, 2008). Thus, it can be identified that theme park is the regarded as place that possess ability to serve people belonging to different age group. With the assistance of food outlet, large number of young customers traveling on frequent basis can be attracted. As a result to this Royaland can gain advantage from increasing sales and profitability.
In addition to this single silver restaurant is another major Royaland's hospitality element. In order to attain aim of attracting large number of customers, manager of restaurant can develop wide range of strategies. It includes offering services at discounted price and providing complementary meals etc. With this firm can attain success within market. This helps in creating distinct image of theme park in comparison with competitors. Apart from this, with the hospitality elements growth of travel and tourism in Windsor and nearby areas is ensured. For instance by gaining insight to the facilities offered in Royaland theme park can attract large number of international and domestic tourists in an effective manner (Mensah and Dei Mensah, 2013). Therefore, in order to gain services of theme park several modes of transportation would be selected. This includes bus, train and airline. With the assistance of such type of practices increase in revenue of travel and tourism business performing in Windsor and nearby areas can be found. Thus, it has been determined that various role of hospitality element is critical in terms of underpinning the success of Royaland. Moreover, through this there is existence of interrelationship among Royaland and travel and Tourism business at a specific location. The hospitality services largely depend upon travel and tourism and vice-verse. For instance, with the assistance of travel and tourism business the information in relation to existence of park or hotel in the city such as Windsor can be communicated among large mass. Along with this, it assist travel and tourism firm to carry out smooth movement of customers from one place to another. Moreover, through opening of theme park in Windsor greater opportunity is offered to travel and tourism sector regarding opening another option of tourism for their respective customers. This can be in relation with adventure tourism.
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a) Implications of integration to hospitality and travel & tourism industries in UK
The integration concept has emerged since 1900. It is that year in which focus of the firm was on economies of scale approach. It is defined as scale under which organization can carry out its operations in low cost. In today's competitive market the concept of integration is highly effective. As a result of this the company can increase its market share, sales as well as profitability. Through this strategy, firm can make efforts towards increasing its presence in global market (Olsen and Zhao, 2008). In this regard there is presence of two type’s integration which includes vertical and horizontal. The later is defined as integration in which firm merges its operations with another company operating in similar type of functions. In contrast to this vertical integration is the one that can be made among the firm operating its function at various levels of production?
Implication of integration to hospitality and travel & tourism industries in UK
Gain the advantage in form of economies of scale: The strategy relating with integration of firm offers benefit to tourism and hospitality sector in terms of economies of scale. For instance, one of the renowned UK's travel and tourism company Thomas Cook has merged its operations with luxurious hotel brand that is Hilton. With this both the firms were able to save their cost of advertisement and establishing contact with customers. Thus helps the firm in gaining advantage of economies of scale.
Enhancement in quality: The activity related with integration offers greater opportunity to business in making determination of its weakness. For instance, Thomas Cook has offered negative feedback against the Hilton services (Victorino and et.al, 2005). Thus in this respect it can be stated that if feedback offered by customer is disseminated by manager of Thomas Cook to Hilton then in such situation suitable measures can be taken in an effective manner. This would assist in bringing effective improvements in the quality of services.
Implication of integration to Royaland particular
The role of integration is effective in influencing firm like Royaland. The implications have been stated in the manner below:
Offers convenience to customers: With the assistance of integration convenience is being offered to the customers. For instance, in accordance with the case it has been determined that Royaland is established in outskirts of Windsor. Due to this the need for accommodation arises before the customers. This requirement of customers can be accomplished by offering buyers with taxi and cab facility. This would assist in offering greater satisfaction to the customers. This can be obstructed in situation when customers have to wait for longer time span for taxi.
Enhance image of brand: Integration assist in enhancing the image of the brand in an effective manner. Through integration of operations with certain renowned famous park Royaland can enhance its brand image. Further through this it can attract large number of buyers (Juwaheer, 2007). This demonstrates implication on the profit of Royaland. Thus it can be concluded from the above discussion that integration is one of the most crucial activity. As such it offers greater assistance to the firm like Royaland in gaining benefits such as economies of scale as well as convenience to customers.
b) Effect on Royaland if it was to be emerged with the company which owns and operates Thorpe Park
Thorpe Park is regarded as temporary park resort that has impermanent hotels in between the towns of Chersey and Staines, England, UK. It was being developed in 1979 on rough pit that was duly flooded so as to give water based theme to the park. The park has greater attraction for youngsters as such it provides roller coasters and thrill rides. Through activity of merger there is greater impact on the long term success of the business. Royaland is self-directed operation that is funded by rich people in city of London (Lane, 2007). Further it is including hospitality aspects of tourism that grants hotel and food services to the customers. The hospitality impact includes maintenance of several aspects like personality, sales, food, packages, finance, marketing, security, communication, recreation etc. Any firm working on this basis has greater impact on the quality of standards maintained at each stage.
In this situation initially Royaland has to make selection of organizational structure that is suitable for business functioning and assists in maintaining customer base. Later following step up of firm they need to adopt culture value of the locality. Further attention needs to be given on market trends and quality of standards with the hotel, restaurant, fast food outlets etc in UK. Along with this preparation of budget related with investment and financial requirements needs to be made by firm. This is in order to accomplish break even of financial structure of business. The owners of the business are required to realize that being on outskirts of London they need to make sure that customers are safe.
The merger between Royaland As well As Thorpe Park has been huge success. This is because they can offer quality services to wide range of customers. However it is important for both the businesses to develop new structure of goals so as to satisfy the needs of customers. Through merger with Thorpe park fine dining restaurants for youngsters, hotels for the families staying over, rides for the youth and recreational activities for the elder people, combining the elements of historic and cultural importance are provided (Carlström, 2010). However it has been determined that the aim of merger is to offer quality services at economical prices to the customers. Merger has provided greater opportunity to the business in attracting huge customer base through offering of several amenities and recreational activities. This is in order to maintain the stability of the organization with effectiveness. This can be carried out when Royaland adopts suitable techniques of Thorpe Park. As such this results in increasing the goodwill as well as market share of merged organizations. This would also assist in increasing the profitability of the businesses (Hospitality provision, 2015). The shareholders of Thorpe Park would be given opportunity to generate significant premium in situation when transaction is done in cash. In case Royaland makes partly payment in cash and rest by the way of stock then long term success would be vested in the hands of shareholders. Thus such would act as successful decision for both the organizations. From the above discussion it can be said that merger has proved to be beneficial for both Royaland and Thorpe Park.
It can be concluded from the study that hospitality provisions needs to be maintained by the organization while carrying out operations. Royaland integrates travel and tourism industry so as to enhance its profitability and market share in an effective manner. There is greater importance given on the safety and security of the customers. The role of tourist experience is one of the critical business task. It has been inferred that future of Royaland can be determined by extent to which it satisfy the needs of customers and the quality of services. It has been determined that Royaland merger with Thorpe Park has assisted it in enhancing its performance to a significant level.
Journals and Books
- Butcher, K., 2005. Differential impact of social influence in the hospitality encounter. International Journal of Contemporary Hospitality Management.
- Carlström, E., 2010. From artefact to effect: the organising effects of artefacts on teams. Journal of Health Organization and Management.
- Crick, A. P. and Spencer, A., 2011. Hospitality quality: new directions and new challenges. International Journal of Contemporary Hospitality Management.
- Edelstein, S., 2008. Managing Food and Nutrition Services: For the Culinary, Hospitality, and Nutrition Professions. Jones & Bartlett Learning.
- Juwaheer, T. D., 2007. Using service quality expectations as a criterion to segment international tourists in the hospitality industry: An outlook of hotels of Mauritius. Journal of Travel & Tourism Marketing.
- Hospitality provision. 2015. [Online]. Available through: <http://www.tigertms.com/hospitality>.