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RESEARCHING TOURISM AND


HOSPITALITY OPERATIONS
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RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

As identified by Kasavana and Brooks (2007) the travel and tourism industry comprises of five

main components:

1) lodgings i.e. motels, hotels, cruise ships, camps

b) transportation i.e. trains, airplanes, ships

c) food and beverage mainly with catering, restaurants, taverns, bars,

d) retail stores arts/crafts shops, souvenir and gifts

e) the activities business, recreation trips, festivals, media events

The contemporary philosophy in tourism and hospitality industry is a new way of doing things

where managers and their associates work together, share knowledge, give them resources and

own the quality delivery of service by doing whatever it takes; minting success. It is critical for

achievement of success in service sector that the focus of the management and the personnel is

the guest, serviced with humanity and innovations (Walker, 2010).

Understand the process and strategies


adopted when undertaking research on the
tourism and hospitality industry

Strategy making has been studied from numerous viewpoints in the hospitality literature

(Whittington, 2001). Strategy schools of thought represent two split ends of a strategy-making

range and all over in between. Main points of worry across the strategy-research stream are
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

queries of what, in what way, and who. most important strategy-making procedure

elements can be defined as the deliberate-emergent and the unusual collective nature of the

process. Okumus (2003) recommended that administrative structure and beliefs have emotional

impact on strategy content and inspire the process of strategy putting into practice Harrington

(2004) bring into being that size had an impact on the equivalence of involvement across

organizational levels in the strategic process across industries. Making comprehensive decisions,

organizing and arranging business and strategic plans, describing priorities, understanding data,

assessing alternatives or formulating prospective estimatesall of these actions are dangerous

and need thorough investigation using the best data and the best logical and investigative tools.

Research can light up a topic, refine the focus on larger way out and disclose persuasive point of

view for action.

Additional research by Harrington and Kendall (2004) point out that the sum of employees and

divisions in a restaurant firm have a direct impact on taking part in the strategic process by

directors and other administrative members.

Time-series data i.e. data going back in time and cross-section data i.e. data for cases can provide

a treasure of facts that may not be ostensible without proper data organization and analyzes.

Commanding analytical tools such as econometrics, figures, and carefully worked-out

programming expose patterns and uncover relations among different variables (for instance,

property profitability and brand association). Econometrics and statistical tools make known

which patterns and relations are statistically importantnot due to chanceand which are

random.
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

These tools convert data into information. The hospitality productiveness by nature is labor

rigorous, spatially fragmented and disjointed, functioning in a multifaceted and active

environment, mainly composed of small self-governing enterprises. To make the sense of these

features, and to maintain the symmetry between solidity and variability, Edgar and Nisbet (1996)

give details that the long term strategic designing is of slight use for the hospitality formations

and further that the managerial emphasis should be on the inventive and resourceful practices to

accomplish the reasonable advantage though Olsen (1998) decided that to prosper in the long

run, the right kind of the approaches are necessary to be selected by the operative management to

respond quickly to the intimidation and openings in the environment, which are a challenge to

the hospitality industry in very assorted way and it has a potential to transform at a very swift

speed.

Consider the history and background of the


industry, locally, nationally and globally, and
make informed predictions about future
influences on the industry .
British leisure industry practically began with the prehistoric trip. Though, apparently, journeys

were embarked on for holy motives, travelers evidently perceived the trip as a holiday elsewhere

from their typical lives (the word holiday is a derived from 'holy day'.)

Travelers were duty-bound for the idea of mementoes, carrying back artifacts and souvenirs of

their journeys to sanctuaries. They were among the leading to recognize the advantages of taking

credit with overseas banks and soon recognized that inexpensive transportation could be acquired
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

on otherwise mercantile ships (English wine ships bound for Vigo were used by medieval

pilgrims heading for Santiago De Compostela in Spain). (History.uk.com, 2006)

Through the sixteenth century, it turned out to be in vogue in United Kingdom to embark on a

Grand Journey. A prolonged journey of Europe was perceived as an important enlightening and

enlightening experience and numerous affluent families sent their youngsters to see the tourist

attractions of Europe's main metropolises. Their experiences are reverberated nowadays by the

multitudes of tourists and gap-year students keen to be acquainted with more of the world.

In the eighteenth century travel for health reasons turned out to be exceptionally significant in

the Britain with countless Saunas proposing allegedly fitness-giving mineral waters. These were

alleged to treat all types of diseases from gout and liver ailments to lung ailments.

(History.uk.com, 2006)

David Cameron the Prime Minister gave a speech in August 2010 in Hyde Park at Serpentine

Gallery; in which he accentuated the significance of the travel industry and assured that

government would work along-with the segment to generate the best conceivable travel policy.

David Cameron said Our aim is clear; we want to take tourism in Britain to a whole new level

and harness the huge potential this area holds to grow our economy. He told John Penrose, the

Minister for Tourism and Heritage, to carry this work onward and in what way the government is

going to make this materialize. (Penrose, 2011)

Travel industry is a frequently undervalued but enormously vital segment of the UKs financial

state. Its at present one of UKs six major businesses and third major export earner. Travel

industry is one of UKs extremely vital businesses. The attractions, memorials, landscape and art,
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

music, and literature are lures for tourists from throughout the world. The 200,000 companies in

the travel industry are important to UKs financial state and crucial contributors to the salvage.

These companies instantaneously make available 52bn of UKs GDP, 4.4% of jobs, and have

turned holiday business one of UKs quickest developing segments. They offer work in our many

countryside populations and pleasure to masses. Travel industry generates affluence and work in

each part of the kingdom and it is a cost effective method to rejuvenate neglected societies. A

flourishing travel industry constructs attractive places to visit all over the kingdom, which

correspondingly enhances the quality of life for everybody who lives near them also.

Visit Englands Strategic Framework purposes to accomplish four mutually dependent goals:

To increase Englands share of global visitor markets:


To champion a successful, thriving industry:
To offer visitors compelling destinations of distinction.
To facilitate greater engagement between the visitor and the experience.

Eventually the Board of Visit England will be responsible for setting and overseeing the success

of the principal target areas of the Framework and its ambition of an annual 5% growth, with key

partners taking responsibility for delivery and reporting progress through agreed mechanisms.

The Action Plans delineate the action and the associates needed for delivering all the four

purposes. Client demands, our rivals bargains, administrative structures and obtainable budgets

will modify so the Framework and the programs within it will adjust and develop over period as

other associates become committed and action starts to take form and be delivered. Positive

results are reliant on a vibrant partnership all over the business that concentrates on successful

engagement and interaction at domestic, local, sub-regional and local level, ascertaining

prospects for economies of scale. (ww.visitengland.org, 2011)


RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

Understand the application of operations


management across the tourism and
hospitality industries .
Operations management is concerned about Systems and how to make them operate better,

whether more efficiently, more effectively, at a higher level of quality, at reduced cost, and/or at

lower environmental emissions, using the appropriate criterion or criteria determined by the

organization.

(Nagurney, 2012)

Operations Management (OM) is one of the foremost and most significant purposes of any

business. It is involved with generating the facilities and goods upon which we all rely upon.

Besides all companies create specific combination of services and merchandises, it does not

matter if that company isbig or small, engineering or service, for proceeds or not for profit,

communal or private. Gratefully, most companies have nowadays have understood the

significance of operations. The organizations have comprehended that effectiveness of

operations management which contributes the probability to increase both productivity and

customer service concurrently. However, operations management is all over, it is not limited to

the operations purpose. All executives, whether they are titled Operations or Marketing or

Human Resources or Finance, or whatsoever, deal with procedures and assist clienteles

(internal or external). This makes, in any case part of their work operations.
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

Furthermore Operations management is exhilarating. It remains at the focus of so numerous

adaptations influencing the commercial world variations in clients inclination, modifications

in supply set-ups caused by internet-based technologies, alterations in whatever we want to

accomplish at job, in what way we desire to work, where we want to work, and the list goes on.

There has hardly ever been a phase when operations management was more current or more at

the core of commercial and traditional changes.

Moreover Operations management is thought-provoking. Advocating the creativity which

motivates the establishments to react to so numerous ups and downs is converting into the major

job of operations managers. It is the responsibility of operation manager to find out the

explanations to technical and ecological challenges, the stresses to be publicly accountable, the

ever increasing globalization of markets and the hard to explain areas of information

management. (Slack, Chambers and Johnston, 2010)

Since 1990s there are countless fresh openings and tests for the holiday and hospitality

businesses. For travel industry, universal business information is vital and technical knowhow

has converted into essential to the capability of the business to function successfully and

aggressively. Poon (1993) recommends that the entire method of information technologies is

being swiftly dispersed all the way through the travel industry and not a single competitor will

avoid effects of information technologies. (Poon, 1993)

Market intelligence nowadays advocates that it is necessary for hospitality businesses to adopt

technology to contest against routine opponents, in addition to competitors that shape their

companies with the state-of-the-art technical knowhow. In this transforming situation, new

systems of supply must be planned to become the front runner. A tactical information
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS

administration role ought to enable the corporate assignment of its company by the use of

organized information, organized procedures, and disciplined Information Technology (IT).

CRSs (Computer Reservation Systems) empower management to govern, publicize and market

their merchandises internationally, while simplifying their revenue management. Furthermore,

they incorporate the complete range of corporate roles, and consequently can add to principals

prosperity and long term affluence. CRSs frequently charge modest payment rates in contrast

with other supply preferences, whereas permitting adaptable evaluating and capability

modifications in order to modify stock to need variations. CRSs likewise decrease

communication expenses, despite the fact providing intelligence statistics on need outlines or the

stance of associates and contestants. Therefore, CRSs add immensely to both the operative and

planned administration of the travel industry. (Collier, 1993)

GDSs (Global Distribution Systems) effectiveness and dependability allow management to

dispense and accomplish their bookings universally, by connecting end user wishes with the

travel supply. Therefore, excessive combined effects are attained, where universal drivers

motivate GDS progresses and vice versa. (Go, 1992)classifies four key sets of situations, to be

exact, price tag, marketplace, government and competitive motivators(Table ), and validates why

the globalization of the travel industry is meticulously inter connected with its capability to use

computerized methods. Eventually GDSs must aim to multiply the fulfillment of their

shareholders, (Customers, Owners, tourism agencies and stockholders), proffer outstanding

merchandises and allow associates to capitalize on their profitability.


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The Internet or the "Information Super highway "convergence mass media, communications, and

information expertise raises the interactivity amongst customers and providers. (Bubley and

Bennett, 1994)

Be able to evaluate the marketing and


planning process, the marketing mix and
macro factors affecting demand

Marketing is a consumer-oriented way of doing business. Consumer-oriented companies always

consider the needs and wants of the consumers at a top priority basis. If taken from this point of
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11

view then the main objective of marketing is to accrue and retain consumers by satisfying their

needs. One satisfied customer means ten more customers bringing in profits.

NP r e o e f

dt a s b & i l

Wi t y a n

t s o f

t e h

C o n
Integrated Marketing

s u m

e r
The Marketing Concept

One hospitality organization that applies the marketing concept is in entirety is Marriott. The

goals for Marriott and as a matter of fact for any hospitality organization are to attain adequate

and acceptable profits to guarantee the success of the organization along with the shareholders,

furthermore long-term benefits are also roped in for the shareholders, hotel owners, employees

and customers. Marriott complies with the needs and wants of its customers, develops long-

lasting relationship using offering tailor-made personal service which augments the experiences

of the customers. Marriott firmly believes that it is the result of the integrated efforts of the entire

staff at the property which work towards satisfying the customers; clearly indicating that it is
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imperative for each and every employee to own the quality delivery work cooperatively and

value the contribution and presence of the team mates. J. Willard Marriott founder of Marriott

International along with his son, Executive Chairman, J.W. Marriott, Jr. have taught managers to

take care of your associates and theyll take care of your customers and the customers will

come back. (Marriott 2014)

Thus, Marriott proves evidently that the organization prefers to generate profits by making sure

that the needs and wants of the guests are well taken care of, and that the success of the

organization is a result of the service-oriented attitude of the entire personnel force.

Selling services has turned out to be an increasingly vital aspect of the marketing concept mostly

owing to the flourishing desire for services in contemporary consumers. The three prominent

aspects of marketing are the needs and wants of the customer; companies bring in profits by

fulfilling these demands by integrated efforts of all the staff of company. Services have an

extreme impact on the global economies; for instance in France, Canada, Japan, Norway,

Australia, and the United Kingdom.

The services industry is one of its kind having divergent characteristics from the other industries.

The products others sell are intangible. In the hospitality industry the customers will have no

other means to evaluate the services offered by the property until they have experienced them in

person. The second characteristic is the inseparability. This is important as the attitude of one

employee can severely impact the ratings of a customers overall experience with the property.

The generic tangible products may come in variations of several types but they serve the same

purpose with same quality however the services are actually variable for instance the quality of

service could vary at a resort during peak and non-peak seasons. The services last but not the
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13

least are extremely perishable i.e. revenues lost in the form of empty rooms and tables on a night

cannot bring in profit on the next day.

This strictly implies that there is a dire need of extremely flawless planning to sell whatever they

devise in the services industry. Fyall and Garrod, (2005) are of the view that What the business

thinks it produces is not of first importance especially not to the future of the business and to its

success. What the customer thinks he is buying, what he considers "value," is decisive it determines

what a business is, what it produces and whether it will prosper.

This flawless planning can be done well if the planners undertake the macro environmental

factors seriously.
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Macro-environment is a few factors vital yet constantly changing. All hospitality organizations

operate within these factors giving a boost to opportunities for all the organizations to do

business and have a competitive edge over other companies. Close monitoring of these

environmental changes is very important. Consequently before creating their marketing

strategies the concerned departments must consider them. Hospitality marketers can achieve this

by means of studying and monitoring the six prominent forces prior to the opening of the

property and the operations must commence after the concerned managers have actually devised

plans after intense planning.


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These macro environmental factors are

Demographic
Economic
Political/legal
Social/cultural
Technological
Ecological

Demographics include the database which is most important for any organization. It comprises of

population density, size, gender, age structure, occupation, geographic distribution and ethnic

mix. Research proves that the mature market responds to the amenities in a very different manner

from the people of other age groups (Moschis, Curasi, and Bellenger, 2003). Restaurant

managers are of the view that this trend is a good business opportunity for them all over the

world as the mature customers are far better established economically and have time to enjoy.

Therefore marketers should always be ready to devise extra value-added services that the mature

market would consider as niceties and they do not care to compare prices.

Economic factors are very important while devising business and marketing plans. They

comprise of purchasing power, disposable income, consumption pattern, interest rate, GDP

growth, inflation, unemployment rate. When the oil prices were rising the airlines suffered

heavily having a negative impact on the tourism and hotel industry; Thai Airways responded to

this tough economy aspect by scaling back on some particular routes that were known as less

profitable and still made profits (Rising oil prices, 2008).

Political/Legal factors should be taken under consideration as they are also very vital to the

profitable businesses. A wide array of legislation like health and safety, patents/ copyrights,

wage/ price controls, tax policy, equal opportunities, lawsuits and most of all government
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stability are of great importance. The greatest challenges to the hospitality industry can arise

from the legislations on health and safety. Presently, several states in the USA have imposed the

trans-fat free legislation for the entire food industry. The fast foods suffered from it a lot and

were forced to introduce healthy substitutes for the fatty contents and the use of vegetables was

promoted. McDonalds also diverted to this trend and made sure that its website reveals

information, referring to the current status of the reduction of trans-fat content at McDonalds

under the food, nutrition & fitness page.

Technologically strong properties and businesses are competing in the market very well.

Research and development activities creating new product developing service further improve

productivity such applications of knowledge and information should be managed efficiently.

High Tech WI-Fi environments, interactive menu screens and online reservations, e-tickets,

paperless environments and many more changes are revolutionizing this industry.

Socio-cultural factors are the family unit size and composition, the lifestyles of the different

classes, work/leisure balance, women in the workforce, social relationships, tendency to travel,

social awareness. The adaptation to the local culture and ways is an important feature for the

organizations.

The ecological factors have become extremely important as the entire world is trying to lessen

the carbon footprint and are trying to achieve sustainability through green operations. The

aspects to consider are water quality, disposal of solid waste, air quality at resorts, recycling, and

energy management. Several hotels have adopted environmental-friendly practices in order to

conserve and recycle, successful properties boast of sustainability achieved. Some of these

practices comprise of buying fair trade products, reusing linens in the guest rooms; educating and
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staff even guests to save and conserve energy, incorporating energy efficient architecture, using

nontoxic sanitizers and cleaners, and using solar energy for the operations.

If the companies study all these factors closely it will only augment the chances of a brand to be

successful anywhere around the world. After analyzing and after collecting the relevant a

information regarding the business environment and the markets, the company should start

creating strategies fabricate a marketing mix that suits the company and serves the purpose.

Marketing mix is a blending of factor that needs the attention of a company especially when a

new service is being introduced to the market.

Conv A d it i U n iq u e M a r k e t in g M ix
e n t io onal fo r t h e H o s p it a lit y
nal4 Ps n a d T o u r is m S e c t o r
Ps
Marketing Mix for Hospitality and Tourism Industry

Marriott has an elaborate marketing mix. Before opening a new property the organization takes

care of each and every aspect and adapts according the laws, social and cultural factors
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pertaining to the country in focus. The result of careful research is a healthy marketing mix as

Marriott chooses the best place to build a property. It has properties at any place imaginable

mostly in the center of the city, near the airport and catering to the targeted groups. The property

itself is an epitome of sophistication, excellence, service and quality. The product gets promoted

nowadays online as Marriott stays abreast of the technological changes. The pricing structure

varies as the property caters to different demographical groups. The people at Marriott are the

backbone of the property as they are well trained in their trade and provide best quality services.

The entire package of tangible things like the neat and clean environment with efficient staff

creates the value for the customers money spent at the hotel. The programming factor is new to

the industry but Marriott has played well. The properties now offer a range of tailor made

services for the entire family at the holiday destinations. A lot of this becomes more accessible

when the customer utilizes the partners of industry like the credit cards and airlines for example

Jet Airline is a strategic corporate partner.

Mechanics of income generation and the


strategies to improve customer service

Tourism is seen by governments as a useful tool for economic development. The economic

benefits tourism offers to any country are employment as tourism is a labor intensive industry. It

creates entrepreneurial opportunities and development in rural regions. Tourism and hospitality

generate tax revenues and a great generator of foreign exchange; services sectors of the economy

also get promoted. The industry generates income from various sources. The best sources are the

room reservations and the food and beverage sections. The airlines and travel agents are also a
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source of income for the industry. A large number of people are employed by the industry thus

contributing to sustainable development and income generation in a country.

The major contributors to income generation in tourism and hospitality are salaries, rent, interest

and profits. In the labor intensive tourism industry, the greatest proportion of income is taken

from salaries given to the workers in such a manner that the ones serving tourists directly and

from those benefiting indirectly from spending of the tourists are equal. The taxes levied on food

and beverages, rooms, resorts and air fare are also major contributors.

For one-third of the developing nations tourism is the foremost income generator but it is also an

extensive generator of income in the Western world. Rates of interest, rents of properties and

profits generate income by means of loans given to companies to build hotels and the rents paid

to the landowner by a resort or a restaurant. Tourism is a driving force of development by means

of foreign exchange earnings in most of the countries around the world, and it also creates

employment directly and indirectly. Tourism has created more than 235 million jobs worldwide,

one in every 12 jobs. Amazingly tourism contributes 5% + to the GDP of the world. Tourism is

the fourth largest export sector next to chemicals, fuels and automotive products and it accounts

for 6% of the exports of the world in services industry. (Step.unwto.org, 2014)

The notion of income generation is dependent on another great notion the crux of hospitality and

tourism, the customer services. The customer service is turning out to be a vital means of

improving efficiency, expanding sales and building brand. The high level of customer service

largely determines the results of competition. Guests do not buy merely the facilities, and they

pay to buy an experience, better yet, they want to get thoughtful service and high-quality

experience for the amount they spend. Thus, the mission of a hotel is to offer quality services for
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guests by meeting the needs of guests.

The epitome of customer services quality can be reached by introducing several strategies. The

first and the foremost is the training of the personnel at every level. Hotels and resorts and for

that matter the entire industry runs like a chain. Personnel from top to bottom are involved in

customer services. The first impression created is the last one. Another strategy is to set a

standard for the customers to perceive and then deliver it. If they have a problem the employees

should be empowered to resolve it all by themselves at the first report. This maximizes the

customers satisfaction to a great extent. This helps in relationship building which becomes an

important factor in delivering quality customer services.

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