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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:
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
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,
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
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
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.
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
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.
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
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
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:
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
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
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
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
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
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
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
CRSs (Computer Reservation Systems) empower management to govern, publicize and market
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
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
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
10
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)
consider the needs and wants of the consumers at a top priority basis. If taken from this point of
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
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
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Wi t y a n
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Integrated Marketing
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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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
12
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
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
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,
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
13
least are extremely perishable i.e. revenues lost in the form of empty rooms and tables on a night
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
This flawless planning can be done well if the planners undertake the macro environmental
factors seriously.
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
14
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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
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
15
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
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
16
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
Technologically strong properties and businesses are competing in the market very well.
Research and development activities creating new product developing service further improve
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
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
17
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
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
18
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
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
19
source of income for the industry. A large number of people are employed by the industry thus
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
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
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
RESEARCHING TOURISM AND HOSPITALITY OPERATIONS
20
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
References
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Kotler, P., Ang, S., Leong, S. and Tan, C. (2003). Scanning the marketing
environment. In Marketing management: An Asian perspective. Prentice Hall:
Singapore.
Olsen, M., Tse, E. and West, J. (1998). Strategic management in the hospitality
industry. New York: J. Wiley.
Turner, E. (2014). How Big Data Is Changing the Travel Industry - SumAll. [online]
SumAll. Available at: http://blog.sumall.com/journal/big-data-changing-travel-
industry.html#ixzz3LxdhKUux [Accessed 17 Dec. 2014].
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