Structure Of The Travel Tourism And Hospitality Industry Tourism Essay

The purposes for this essay are to present the structure of the travel, tourism and hospitality industries. Firstly, we need to know what the definition of tourism is. As the World Tourism Organisation (WTO), tourism is ‘the activities of person travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes’ (World Tourism Organisation, 1993). Therefore, the tourist is a person who travels to another place outside of their normal place of residence at least 100 miles for more than 24 hours and less than 12 months. Travel and tourism does not necessary involve travelling abroad. It could be in domestic tourism such as people’s home country, on visits to attractions, city breaks, trips to business meetings, sports events or concerts, and visits to friends or relatives.

According to Weaver & Lawton (2002, p.3), tourism includes the businesses that provide goods and services wholly or mainly for tourist consumption such as restaurants and food/beverage services, and lodging. Hence, it linked to hospitality industry which including accommodations segments, food services segment and other hospitality operations segments.

Structure of the travel, tourism and hospitality industry

The travel, tourism and hospitality industry is one of the largest industries in the world. It includes many sectors that we need to go through each part of the industry on its own. The key sectors in the travel and tourism industry can be distributed into three different parts. They are public, private and voluntary sectors.

Figure 1: Tourism industry

Tourism industry

The private sector

The public sector

The voluntary sector

Tour operators

Travel agents

Accommodations

Government

NTOs

NATA

UFTAA

IATA

SHA

Private sector

The private sector is generated of commercial operators run or owned by individuals or companies such as travel insurance, travel press, travel marketing, private colleges, tour operators or travel agents, whose main purpose is to produce benefits from the facilities and goods, which they deliver to their consumers.

In addition, these agencies play a very important role in the development of the travel and tourism industry. They are the components which communicate directly with customers. For instance, they arranged a group which understand the demands of visitors and advertise their packages at different tourist locations through interactive methods of communication such as distribute brochure or advertise in their websites.

Accommodations are the basic needs in tourism industry which including hotels, resorts and timeshares or condominiums, conference centres, camp and park lodges, food and beverages. For example, resorts offer good services such as spa, massage, hot tub for customers who come to relax on holiday. They gain high benefits due to customer’s consumptions when they provide good services. Therefore, the private sectors are commercial businesses with the objective of making a profit for shareholders and owners. They run businesses at all levels of the distribution chain – suppliers, wholesalers and retailers.

Public sector

Public sectors are major groups who decide on the strategy and leadership for the growth of the tourism sector. This is the government body which supporting the tourism industry. The role of this organisation is to work with the industry and provide the required amount of support.

The services offered by the public sector are delivered to the public and paid through government. Public sector includes NTO’s and RTO’s (national & regional tourist offices). It may also be “suppliers”, especially in transportation and visitor attractions. Most of the public services are non-profit-making.

Voluntary sector

Voluntary sector contains different bodies involved in the lobbying and being the force factors who work for the benefit of the tourism sector and the benefit of the respective associations they represent. They are namely National Parks Association, YHA (Youth Hostels Association), National Trust, ANTOR (Association of National Tourist Office Representatives), FTO (Federation of tour Operators), ATOC (Association of Train Operating Companies), Museums Association, UK Inbound Tourism, Tourism Concern and PSA (Passenger Shipping Association).

Organizations of the voluntary sector are controlled and ran mainly by volunteers. These organizations are usually not making profit or contributively. This creates some financial benefits that may include reduced rates and VAT, income tax exemption for investments, covenants and bank deposits. Voluntary sector organisations that register as contributions have to satisfy specific terms. Their purposes must be charitable, non-profit-making, for the education’s improvement or for other aims beneficial to the society.

Horizontal integration

According to Weaver & Lawton (2002), horizontal integration takes place when firms reach a higher level of consolidation or control within their own sector. Horizontal integration is where an organisation owns two or more companies, on the same level of the buying chain. For example, EasyJet took over Go! in 2002. It was a case of one budget airline taking over another no-frills airline. Although the two companies became one, they could have retained their different brand names. In fact in this case, EasyJet rapidly re-branded all of Go!’s planes with their own distinctive livery.

Principal
Figure 2: Horizontal integration
Principal
Tour operator
Tour operator
Travel agent
Travel agent

Vertical integration

Vertical integration occurs when a company achieve greater control over elements of the product chain outside its own sector (Weaver & Lawton, 2002). This integration can be forward in the direction of the chain, or backward against the direction of the chain.

Forward vertical integration is more common. Company gains greater control over distribution. It helps them getting closer to the customer. For example, an airline sets up a subsidiary to distribute or market products to consumers such as buying-out a hotel chain or car rental operation.

Figure 3: Forward vertical integration
Tour operator
Principal
Travel agent

Backward vertical integration is buying upward in the distribution chain. In contrast to forward vertical integration, company gains greater control over supplies using backward vertical integration. For instance, First Choice is a tour operator which also has an airline named First Choice Airways, or Thomas Cook Holidays setting up Thomas Cook Airways.

Principal
Figure 4: Backward vertical integration
Tour operator
Travel agent

Key historical developments

Socio-economic

Leisure time: Tourism currently very popular and it is widely acknowledged as a global social phenomenon. In most advanced developed countries, the natural of society has now changed from an economy based on manufacturing and production to focus on the services and consumer industries. Simultaneously, the disposable income and the amount of leisure time and holiday in many countries increased in the post-war period. Therefore, employees have the opportunity to engage in the new forms of consumption such as tourism.

Incomes/holiday taking: The income is produced from wages, profits and interest, has increased every year. The UK economy is one of the strongest in Europe, levels of disposable income and consumer credit are rising and expenditure on leisure is growing at around 6 per cent. Depend on that, employee’s life is improved. They can spend time to enjoy their life such as travel without worry too much about money. Most people today will have travelled abroad and expect to take at least one holiday a year. When tourists are willing to pay for travel, tourism industry will generate more profit.

Car ownership: By the early 1900’s the car was being used for public transport in most cities. But it wasn’t until the 1950 when the car really took off. There were only 8,000 cars in the whole of Britain at the start of the 20th century. By the end of the century the car population had soared to 21 million. Car ownership statistics gives an indication of the level of personal mobility in a population (domestic, continental travel). In 1989 in Britain, each car was used for an average of 30 trips per week, which declined to 24 by 2006. The distance travelled by car per week slightly decreased. Car ownership in the UK has increased considerably in recent decades. It is not uncommon for a household owning two or more cars in nowadays.

Technological

Transportation is an essential need in the tourism sector. It is divided into different areas such as air, road, rail, sea. Transportation is a tool to assist travellers to get to where they want to go.

Sea: Up until the 1920’s the only way to travel abroad was by boat. It used to take days/weeks to travel abroad. Nowadays, ships are mainly used for ferries to mainland Europe and for cruises.

Road: Road travel is the first method people used to travel. In the past, people used to travel by horses, camels, or even humans carrying goods over dirt tracks that often followed game trails. The most famous road in the past is Silk Road. The start of the Silk Road was on 2nd century BC when Chinese ambassador Zhang Qian visited the countries of Central Asia with diplomatic mission. Thus, travel by road is the pioneer in tourism. Nowadays, road travel can be buses, private cars, bicycles, motorbike, etc. People using those transportations to travel are much faster than in the past.

Rail: After sea and road, rail is the third method people use to travel. By the end of the 2nd world war (1940’s) the rail network covered nearly every town and village. Japan is the country famous for mass and high-speed trains. Moreover, Japan has an impressive number of subway systems.

Air: Travel by air is the latest and fastest transportation in the world. The first commercial flight from the UK was to Paris in 1919, but it was very expensive. In the 1970 the introduction of the Boeing 747 brought flying cost down dramatically and open doors to mass tourism. In our time, people can travel from one place to another place very convenience. For example, a flight from Singapore to Vietnam only need 4 hours including food and beverage in the plane, while traveling by sea needs days.

As we can see, tourism cannot develop without technological. It is a part has a great contribution to the tourism industry.

Business developments

Airlines/air travel: Airlines or air travel play a very important role in the travel and tourism industry. Early forms of technology in the travel and tourism industry were systems which linked tour operators to travel agencies via terminals and allowed travel agents to make bookings through the system. Meanwhile, airlines developed computer reservation systems (CRS). Airlines started to use computers in the 1950s to store and change the huge amount of information they needed to access. The CRS was used internally by airlines, and agents would use the OAG publication to look up flight times etc., and then telephone the airline to make a booking.

Tour operators: The role of tour operators is to put together all the different components that make up a holiday and sell them as packages to the consumer. They make contracts with hoteliers, airlines and other transport companies to put the package together. All the holiday details are incorporated into a brochure which is distributed either to travel agents or directly to customers. In simple terms, they organise and package different elements of the tourism experience, then offer “the product” for sale to the public through different mediums like leaflets, brochures, advertisements, etc.

Travel agents: The role of travel agents is to give advice and information and sell and administer bookings for a number of tour operators. They also sell flights, ferry bookings, car hire, insurance and accommodation as separate products. Thus, they are distributors of products. Increasingly, travel agents also do a little tour operating, for example putting together a holiday for a group. Some industry professionals believe that the role of the travel agent is in decline as many people are booking their own holidays and travel on the Internet or by telephone directly to tour operators.

Conclusion

In conclusion, this assignment helps me know more about the structure of travel, tourism and hospitality and key historical developments of its industry. Hence, I will know how tourism and hospitality work.

Briefly, tourism and hospitality industry is one of the largest industries in the world. It plays a very important role in the industry. There are many sectors which contribute and help to generate the tourism and hospitality industry. They are indispensable parts of the travel, tourism and hospitality industry.

Strength Weakness Opportunities Threat Analysis Tourism Essay

This piece if assignment covers destination marketing and what it is. Reading through thoroughly will widen your knowledge about the marketing of a destination and how a plan is created to market a destination. A destination marketing tools is what is used to market a destination. The plan which is called a Tourism Marketing Plan is developed in processes which are described further in the project. It also names an external body that helps to market a destination like Jamaica and the economic significance of them.

What is a destination?

Traditionally a destination is thought to be a specific geographical area but in today’s world a destination can be an alloy of tourism products used to satisfy visitor located in an area. There is a destination of every kind to suit the personality of every traveler. With so many choices for tourist they must be convinced as to why they should visit your destination as opposed to another.

Destination Marketing

Destination marketing is very important. The better a destination is at what it does will aid in how others view it. If the destination brands itself as the one with the best water sports in the world then it should aim to develop that area and maintain it. Destination marketing includes employing marketing tools to achieve a destinations objective. The objectives may include a number of things from becoming the premier tourist destination in its region, having increased arrivals for the next tourist season or even to generate maximum income to boost the country’s economy. A destination must have attractions, be accessible, necessary amenities, available packages and provide ancillary services, this is known as the six A’s framework and can be a guide for destinations looking to market tourism.

The island of Jamaica is located in the Caribbean. It is a magical and natural haven of palm trees, blessed with a climate many only dream of. The island is known for its many white sand beaches, turquoise waters and beautiful sunshine. Jamaica is marketed by a body known as the Jamaica Tourist Board (J.T.B). The marketing slogan of Jamaica is “once you go, you know”. Jamaica appeals to many sectors of the market and this is exploited by the J.T.B. The segmented markets includes: honeymooners, groups, convention groups, overseas Jamaicans, Nature tourism, sports (cricket, golf, football) and the family among others.

If a destination is not marketed it does no harm to the visitors because there are many other islands in the Caribbean. The J.T.B should market Jamaica effectively by employing marketing tools. The destination is not a tangible tool but like other goods and services must be marketed.

Marketing Tools

Destination marketing is quickly becoming a competitive sport worldwide with every destination wanting to be the premier destination of choice for tourist. The marketing of a destination is to maximize the benefits for the country on a whole from tourism. Some of the marketing tools and techniques that can be used by the Jamaica Tourist Board to effectively market destination Jamaica are: Branding, Market research, Development of partnerships, event-lead marketing and a destination website.

Branding- according to the Brand Science Guide for destination research a brand is “the internalized sum of all impressions received by customers and consumers resulting in a distinctive position in their minds eye based on perceived emotional and functional benefits”. Branding of the destination needs more than just a slogan or logo. The brand must not be built through advertising only but mainly through the actual experience that the visitor receives. The brand should not be designed but be as a result of carefully crafted, comprehensive and well thought out strategies. These strategies are all that encompasses the destinations experience for needs and expectations.

Market Research- a survey and or investigation into the market. The aim or purpose of the research is to find out what exactly it is that the consumers want. As it relates to the marketing of the destination a CVB wants to know, what is it that appeals to them, why they visit and how many are they travelling with. After conducting a market research it should help to understand the consumers, to reach them, what attracts them and how to provide for them. The market research also identifies the main type of visitors that goes to the destination and where they come from. It helps to identify trends and potentially new markets as well. Target markets are identified allowing the CVB to position its self in the best way to meet their needs.

Development of Tourism partnerships- partnerships in the business environment is where two or more persons come together, form a business with the aim of providing a service and making a profit. Tourism partners can do a wealth for those destinations that are seeking growth. Partnering with other tourism organizations provides benefits which include: bringing new market intelligence on customers, open new routes for marketing, providing expertise and experience, help reposition the destination and share costs. Tourism partners could be other destination targeting the same markets.

Event-lead strategy- an event is something that happens. Events can be used to market a destination. Jamaica has a mixture of festivals and events. The events are seasonal and the destination can be marketed by the events. Events are good stimulants because they encourage the traveler to visit now rather than to put it off for a later time.

The creation of new events can help, however, it must be carefully planned, well resourced and be committed to. Jamaica has many existing events such as Jazz and Blues festival, Reggae Sumfest, Sting, ATI and others that drives tourist coming to the island at different time in the year.

Destination website- the creation of a website is ideal. The website allows potential and existing visitors to view and find out about the destination before going and getting information about destination. The website should provide detailed precise information about attractions, accommodation, transportation and activities that will they will be interested in.

Strength Weakness Opportunities Threat Analysis
Techniques
Strengths
Weaknesses
Opportunities
Threats

Branding

Uniqueness of destination for its experience

Too much slogan and logo oriented branding

Becoming the premier destination of the Caribbean

The image that is portrayed is not what the destination is

Market Research

Knowledge provided about consumers

Misinterpretation of consumer behavior may occur

The opportunities to provide what the consumer want

Tourism Partnerships

More efficient and wide spread marketing

Partner may focus on marketing their own destination more

Recommendation of tourist to partners destination

Resources needed to market a destination maybe costly to share among partners

Event-led Strategy

More visitors are attracted to the destination

Overcrowding without proper facilities

Increase in hotel stays

Visitors refuse to come because of inadequate accommodations

Destination Website

Awareness is created about the destination

Where blogs and feedbacks are negative it could damage the image of the destination

More visitor since they have an idea of what the destination is like with visual aid

Open to hackers

The value of a Tourism Marketing Plan

A well-conceived tourism marketing plan for any country is essential to guide growth and provide vision for the tourism industry in the country. The aim of the marketing plan for an area is to capitalize on the strongest interest within the destination. The marketing plan provides a framework as to how and what actions will be taken to successfully market the area. The marketing plan identifies and exploit what makes the destination different from others and promote it. The promotion leads to actual travel from prospects and existing visitors. The value of having a tourism marketing plan is great, for it is indeed a necessity. The plan packages the destination as a complete product, values available and in country such as Jamaica, its accessibility. The marketing plan is essentially to communicate with the target markets and appeal to them in the most creative way as possible.

Processes involved in creating the Marketing Plan

The creation of a tourism master plan for a destination is very important to successfully market the destination. Since it is important to create the plan, it is equally important to take the necessary steps in making functional. There must then be processes involved in the creation of such a plan. The processes involved in the development of a tourism marketing plan are: wide spread consultation with industry stakeholders, identifying strategies for growth and an analysis of where the countries tourism sector is.

Wide spread consultation with industry stakeholder- the development of the tourism marketing plan is to sell the destination. The plan has to be effective in order to reach intended market and create impact. In a business organization, managers do not want to find out from other managers only how the organization is doing but also those at the bottom and outsiders. Finding out from industry stakeholders such as community members, investors, suppliers and others. Consultation internally and externally is one of the most critical processes since it provides information of varying quality from those who are in the industry. The process of consultation maybe timely but is provide valuable information. Some industry stakeholders interact with the tourist and know what will satisfy them.

Identifying strategies for growth- a destination marketer needs to identify those things that will facilitate growth for the industry. The destination has a product is often difficult to market. Due to the complexity, it is best to understand the characteristics and personality of the destination in order to choose the best way it can be marketed. The aim of the destination marketer is to develop a marketing strategy or mix that will help to increase competitiveness. The strategies identified should include assessing a variety of impacts on the industry and devising strategies to deal with them. The impacts includes: environmental impacts, social impacts, economic impacts, visitor safety or security, and local attitudes towards tourism. Identifying this will aid in the development of a marketing plan that will fulfill all the strategic objectives need for growth with the industry.

An analysis of where the countries tourism sector is and where it wants to be and what are the tourism products- the process of analyzing the tourism sector is very vital because the destination marketer needs to know what is the position of the tourism industry. A step cannot be taken to make or market something without knowing exactly what it will offer. If the marketer knows where the destination wants to be and should be positioned. There also needs to be knowledge of what the tourism products are that the destination is offering. The products that countries has to offer varies because demographic, geographic and cultural aspects of the destination and has to market based on what they have to offer.

External organizations that assist the Jamaica

The name of Jamaica’s Convention Visitors Bureau is called the Jamaica Tourist Board. The C.V.B is responsible for the marketing of the island. Five external players that could assist the J.T.B are: T.P.D.co, J.H.T.A, J.A.V.A, JAMPRO and T.E.F.

(T.P.D.Co)- Tourism Product Development Company mainly deals with product diversification, community based tourism development, human resource development and culture tourism.

(J.HT.A)- Jamaica Hotels and Tourist Association represents local hotels and other tourist accommodation as well as those who are suppliers of goods and services to the tourism industry.

(J.A.V.A)- Jamaica Association of Villas and Apartments is an organization that represents the condonium sector of Jamaica’s tourism industry villas, apartments and cottages. It mainly monitors their operations and helps to market them overseas.

(JAMPRO)- Jamaica’s Investment and Export Promotion was established to promote the development of trade and industry as well as export and investment in all sectors of the island economy.

(T.E.F)- Tourism Enhancement Fund, an organization geared to enhance the tourism products. The way they try to enhance the product is by supporting the industry’s development monetarily by collecting all the necessary taxes.

Economic Significance of their Assistance

Marketing a destination requires the creation of a destination marketing plan. The plan acts as a guide for destination marketers to successfully market the particular destination. The success comes because of the strategies and processes involved in the initial creation of the plan. The previously listed external bodies that could assist the J.T.B in successfully implementing the destination marketing plan come with a number of benefits. The assistance received from T.P.D.Co, T.E.F, J.A.V.A, J.H.T.A and JAMPRO has economic values.

The external assistance from these bodies can help in the implementation of the plan. This help has economic significance. The aim of the plan is to maximize the gains from tourism therefore if each plays a part in putting the plan into action will ensure greater success. Each organization is involved in the tourism industry and carries out a different function. Economic gains can be drawn from the functions they carry out. They can do their part and be specialized in targeting a particular objective. This will allow faster results which is primarily more tourists arrivals and more tourist dollar and more economy.

In addition to this their assistance can also help and have economic significance in the form of saving time and more importantly money. The more bodies that are involved in doing a part shares the work load and there can be a greater focus on developing the tourism product. This allows the J.T.B to get more out of the plan and save time and money that would be spent to carry out a function that is already being done by these organizations.

Conclusion

In conclusion, a destination when being marketed by must be marketed as any other product but greater effort must be put in to get the most rewarding results. A destination is marketed by using marketing tools such as branding, joining partnerships with other tourism organization, using events to drive tourist’s arrivals and even creating a websites. A market research can also help in marketing a destination because it does direct investigations into the market of an area to find out who they are and what appeals to them. The tool used to achieve a successful marketing has strengths, weaknesses and opportunities as well as threats. The process of developing a marketing plan must take careful consideration since marketers want to achieve the best possible results.

Strengths To The Tourism Industry In Greece Tourism Essay

Secondly, Greece has a family-friendly environment, making it ideal for tourists of all nationalities and creeds. One of the factors that contribute to this is its hot, dry Mediterranean climate, with an average of 290 days of sunshine a year. The capital city, Athens, has an average of only seven days of rain during summer and daytime temperatures in the low thirties [4] . These ideal climate conditions make it more accessible for tourists to experience the plethora of outdoor activities that are available, from swimming at Greece’s picturesque beaches and yachting, to more rigorous activities such as mountain climbing and long-distance trekking to see some of the country’s most ancient landmarks and artefacts in the most inconspicuous locations.

Finally, Greece has a sense of individuality and uniqueness to it. In comparison with other European countries that may claim to have a long history, Greece has one of the oldest civilisations and cultures outside of the Middle East. Infact, many historians perceive Greece as the cradle of Western civilisation, as well as the origin of democracy, the Olympic games, Western literature, political science, Western philosophy, and major scientific and mathematical principles [5] . This is validated by the fact that 17 UNESCO World Heritage sites [6] can be found around the country.

Therefore, many foreigners see the country’s rich culture and history as a major attraction that intrigues them and inspires them to visit Greece.

However, amidst the current strengths in tourism industry are some weaknesses and barriers to the tourism industry development. One of the strengths mentioned earlier has also proven to be a weakness: climate, or more precisely, seasonality problems. Mediterranean climates are characterised by hot and dry summers, and also have mild and wet winters. The peak season for travel to Greece is May-September, which is further supported by the fact that an overwhelming 75% of all tourists who travel to Greece travel during this period [7] . That means only a paltry 25% of the tourists travel between October-April. Although the cooler months in Greece don’t have sub-zero temperatures like its other Eastern European neighbours, the large amount of rain the country receives during this period serves as a deterrent for people who enjoy outdoor activities and sightseeing. Therefore, the revenue levels of a lot of local businesses that rely heavily on tourism decrease substantially during this period of time.

Another major weakness is the lack of public transport infrastructure and accessibility. While countries such as Singapore, Japan, United Kingdom and Germany have reputable public transport systems; it is a hassle to travel to some of the most majestic and beautiful parts of Greece. This is because the country as very spread out and the population density, when compared to its European counterparts, are very low, ranked 115th in the world with 85.7 people per square kilometre [8] . A lot of people may see the public transport infrastructure as a negative, because they want to travel between locations with minimal complications.

Other major weaknesses and barriers include marketing and management. Although countries like France and Germany have managed to ‘modernise’ themselves despite their long histories and have made themselves more cosmopolitan and attractive to younger people, Greece has, to a large extent, chosen to remain ‘stuck in the past’ and relied heavily on its 3500+ year history to promote its tourism industry. This is an obstacle when it comes to targeting potential tourists who may not have the same level of appreciation for things related to historical matters. In other words, Greece tourism promotion and marketing hasn’t evolved with the times, leaving potential tourists with a fixed stereotype of the country and hence little opportunity for surprise.

The weaknesses and barriers to the tourism industry development lead to an issue that may benefit the Greek tourism industry as a whole: what are the opportunities to enhance the tourism’s economic contribution? Well, as one of the weaknesses mentioned earlier, there is an opportunity to improve the public transportation. An improvement in this area could lead to a vast increase in tourism for the Greek Islands off the mainland of Greece, and overall, an increase in tourism for Greece. Places such as Mykonos, Crete, Rhodes and Kassos could all experience a large inflation in tourist numbers, hence leading to increased revenues and profits for the local businesses in those respective areas. Continued improvement in infrastructure and technology will also go a long way towards enhancing the tourism’s economic contribution. Giving the country a ‘modern appeal’ will help to counteract the weakness mentioned earlier about Greece’s outdated marketing techniques in the area of tourism promotion. Finally, a decrease in accommodation prices may lead to an influx of tourists. As we know, not everyone can afford to stay in four or five-star accommodation. In 2009, Athens was named the city with the 10th most expensive hotel prices in the world, with the average hotel in Athens costing AUD $321 a night [9] . This price is deemed to be very expensive for people in the middle and lower-class income brackets and may deter them from visiting Greece in the first place. Affordable accommodation may be able to break the mindset that Greece is an expensive place to travel.

There are various threats that need to be overcome, in order to enhance Greece’s reputation as a safe and hospitable tourist destination. The first issue is riots. Major riots occurring in December 2008 [10] and more recently, May 2010 [11] , have tarnished Greece’s reputation as a safe destination. This has had adverse effect on the tourism industry, with pre-bookings being down 8% for the peak-season in comparison to last year. With tourism being absolutely pivotal to Greece’s economy, equating to 17% of its Gross Domestic Product, any sharp decline in this amount could be detrimental to the Greek economy on a whole. Also related to the issue of safety are two terrorist attacks that occurred last year [12] 13.

Environmental pollution is another threat to the tourism industry that needs to be confronted. This problem emanates back to the 1970s [14] , when rapid industrialisation began to take place in Greece. This industrialisation culminated in serious air pollution in Athens during the 1980s. Smog (carbon monoxide) and exhaust fumes from cars became prevalent in Athens and even resulted in 87 industries and 73 factories being order to cease production [15] , due to the government’s concerns over the effects the pollution was having on people’s respiratory systems. The widespread ramifications of this problem don’t stop there. Various species of mammals, reptiles, birds and freshwater fish are on the brink of extinction because of failure to minimise the pollution5 [16] .

The issue of political intervention appears as a threat to the tourist industry. The recent riots in May 2010 were the result of protests against the government’s austerity decisions to combat the country’s large sovereign debt levels [17] 18. Countries with political instability and countries that impose austere decisions, which are likely to lead to civil unrest, make the country less attractive to foreigners and hence will find it very difficult to attract potential tourists.

So far, we have discussed the current strengths, weakness and barriers of the Greek tourism industry, as well as potential benefits and threats that could either enhance or decimate the industry. Combining the main points discussed in this research, we can extrapolate implications for specific strategies of industry, government and the community to enhance the economic impacts of tourism in Greece. In our opinion, we believe there are three main implications.

Firstly, there should be a strategy to consolidate on the profitable and competitive Greek tourism industry, both in the short-term and more importantly, long-term future. Possible techniques to achieve this objective include improving the marketing and promotion, aim to increase levels of tourism and try to promote different types of tourism to appeal to a wider variety of people. Improvements in these areas should lead to a considerable increase in revenues and profits for businesses in Greece that rely on tourism and will allow Greece to maintain strong percentages of tourism in its GDP (as mentioned earlier, 17% of GDP in the Greek economy is derived from the tourism industry).

Secondly, there should be an increasing need to cultivate and maintain Greek tourist destinations and attractions, which thereby will lead to economic prosperity in the future. This strategy is concerned with improving the environment, public transportation infrastructure, general infrastructure and decreasing pollution. By improving the standard of public facilities, making transport more accessible for tourists and improving legislation to decrease pollution, not only will it appeal to more potential tourists, but furthermore, Greece will develop a reputation as a nation that cares for the general wellbeing of people and will take the respective measures to make a tourist’s experience as enjoyable and pleasant as possible.

Finally, there should be a strategy for improving the general satisfaction of tourists. This may be achieved through improving general services and also promoting different types of tourism for the people of varying economic backgrounds. For example, the Greek tourism industry should promote certain holiday packages for the higher-income earners who may want to experience a bit more extravagance and luxury, packages for families with small children, packages for those who are on a budget and so on. Certain types of lifestyles (attributed to the amount of money the tourist is willing to spend) should be targeted to achieve this objective.

Strengths And Weaknesses Found In Victoria Bc Tourism Essay

Australia is the 12th strongest economy in the world1 by GDP; it is also the 5th country with highest percentage of older population in the world and despite the world’s recession, Australia continues being a stable economy. The stability in this country makes it a good target for outbound tourism towards foreign destinations like Victoria, BC in Canada.

By using a SWOT analysis, we will first evaluate the internal factors of our destination by outlining the strengths and weaknesses found in Victoria BC as a tourist site. In this investigation, we will identify the characteristics that will position Victoria in competitive advantages over other cities in Canada or other destinations overseas. Furthermore, in the same analysis, we will scan the external factors in Australia that will present opportunities or threats favouring or hindering the source of tourist outflow towards Victoria BC.

In addition, through a segmentation analysis we will identify targets that will represent the primary and secondary segments that will become the focus for a tourism marketing strategy. Moreover, after performing a segment attractiveness examination, we will formulate a recommendation on the preferred segment to market and position Victoria BC as a tourist destination for senior Australian visitors.

Strengths:

As a tourist destination for Australians, Victoria has strong assets. First, it offers a variety of attractions that caters to everyone from local heritage and aboriginal attractions to outdoor and nature exploring opportunities. Second, Victoria climate is an advantage over other closer competitors. Being on opposite ends of the globe, seasons between Victoria and Australia are opposite in time. During winter period in Australia, Victoria will be enjoying the sunshine of June or July. In addition, Victoria is known for the best climate in Canada which makes it an ideal place for outdoor activities all year long.

Third, the geographic location offers many opportunities for outdoor activities, exposure to wildlife, nature, trail and ocean site walks. “Consists mainly of rolling lowlands interspersed with granite rocks of up to 300m/985ft in height. The city is bounded by ocean on three sides. In the north and west, cliffs, spits and lagoons formed by glacial action make up portions of the shoreline. Elsewhere, the shoreline consists of beaches of pebble and sand punctuated with coves. Several elevated viewpoints in and around the city provide a bird’s eye view of all this and more”2.

Fourth, it gives easy access to cosmopolitan and metropolitan cities like Vancouver and other tourist destinations like USA by ferry and airplanes in both English speaking locations. Furthermore, Victoria hosts authentic restaurants that represent the multicultural population of the island as well as central lodgings which are at walking distance from the heart of the city.

SWOT ANALYSIS (SEE APENDIX I)
Weakness

Victoria’s main weaknesses come from the lack of awareness of the city as a tourist destination. Additionally, the high competition makes travel expenses higher and fewer direct international flights coming to and from victoria’s international Airport. Moreover, Canada as a whole does not support health services for temporary visitors. Lastly, shopping is made more difficult for tourist due to high taxes in Canada.

Opportunity

There are some opportunities that Victoria should consider in order to boost their number of visitors: Increase awareness through tour operators, Develop agreements with neighbour cities to promote affordable trip packages, Develop sustainable and cultural tourism. Victoria should also take advantage of the cities’ common characters with Australia and their resembling motivations for tourism3 (sceneries, access to nature and outdoor activities, wildlife and proximity to cosmopolitan cities)

Threat

Victoria’s tourism industry can be threatened by other competitive markets like the USA, which due to currency depreciation present themselves as more attractive and affordable destinations. Other closer competitors within Australia, in Asia or Europe may as well present a threat to the long and expensive trip to Victoria. Lastly, the unclear definition between Vancouver and Victoria may take away from the international outlook to Victoria as a preferred tourist destination.

Segmentation Analysis

The Target segments are 17% of the Australian population who are 60 years or older and are living in metropolitan areas which according to the department of community, Senior well living in Australia reported %73 on seniors live in metropolitan areas. In addition, the segment will be focused on couples with no children with account to %50 of the senior population in the country3. In addition, according to The Conference board of Canada %40 of seniors in Australia live in poverty4. This would leave a margin of %60 seniors that could potentially become the primary target for this tourism marketing proposal services4

Assumptions:

– There are different types of seniors that I am trying to target: the primary segments are those seniors, who have retired and feel they want to relax, take a trip with no rush and exposure to a healthy environment with ample access to Nature and Culture.

– The second segment are seniors who have either retired or are about to retire and feel life is starting and need to adventure now that they don’t have the responsibility of work or family.

-Metropolitan areas are more expensive to live in; therefore the target segment will have better financial stability and potentially be receiving retirement from service. The income source may indicate that a portion of this group have retirement plans savings and or investments.

SEGMENTATION ANALYSIS

Broad Market Segmentation

Golden Age Traveler

Cultural & Heritage Interest Travelers

Geographic Segmentation

Australian senior citizens, baby boomers who have strongest interest in ecotourism and cultural heritage attractions such as

historic sites, museums, nature, parks and wildlife exposure

Australian senior citizens, who have the Interest in short trips with outdoor activities like sightseeing, golfing, shopping, gambling and easy access to cosmopolitan and other tourist destination

Demographic Segmentation

Retired married couples with graduate studies and no children living at home age 65 and over living in metropolitan areas

High Income Married Couples with no children living at home age 60 and over living in metropolitan areas

Psychographic Segmentation

Self-sufficient individuals, family oriented, community values who enjoy peaceful traveling, exposure to nature and environmentally conscious with are interest in exploring other cultures

High disposable income with active lifestyle, enjoy socializing with other people of same interest and look for outdoor activities, casinos, high-end restaurants, resorts and sports

Behavioural Segmentation5
Occasion:
Benefit Sought:
User Status:
Loyalty Status
Buyer Readiness stage:

– Winter Vacations

-Authentic experience

that explores a destination’s

Natural and cultural heritage.

– First time visitors

-Switchers

– Investigate options, costs and take time to decide

– Winter Vacations

-Getaway with easy access to cosmopolitan cities and metropolises

-Frequent visitors

– Soft Loyal

– Look for a short getaway no much investigation, they look, like and buy

Segment Attractiveness

Primary

Secondary

Segment Attractiveness Analysis

The Segments are measureable because we have quantitative data of the subject in terms of demographics, age groups and financial conditions that could become our primarily target. %73 segments living in metropolitan areas give them easier access to mass media, technology and better income. However, there is no specific data describing the literacy rate of this specific group and it is for this reason that the assessment for this criterion is a 6.

If specifically identified, the segments chosen are indeed substantial and profitable enough to serve. Graduates, affluent and high income seniors are highly inclined to use their savings, disposable income or retirement funds to enjoy their lives after retiring from the workforce. The segments are also highly distinguishable from other segments because they have specific geographic, demographic, psychographic and behavioural characteristics. Additionally, this group is accessible. Eeffective marketing, sales and service programs can be formulated for attracting and serving the segments because they are located in central areas exposed to technology and other marketing venues. Finally, this segment is ethically approachable because they are not presented as a vulnerable group that can potentially attract negative opinions.

SEGMENT ATTRACTIVENESS

CRITERIA

ASSESSMENT (0-10)

1

Measurable

6

2

Substantial

8

3

Differentiable

9

4

Actionable

8

5

Accessible

8

6

Ethical

10

Total Assessment for Segment

49

Recommendations

The primary target segment: Retired married Self-sufficient couples, 65 years or older (golden- age), no children living at home, located in metropolitan areas with strong sense of community values who enjoy peaceful traveling, exposure to nature and environment, interested in outdoor activities and exploring other cultures.

Brand Positioning Statement:

Australian Golden age couples, rest at ease in the colourful city of Victoria, Explore the aboriginal history and heritage of the city while walking through the most exuberant sceneries in all Canada

Conclusion

Having identified the economic and demographic assets of Australia as a powerful potential market for senior outbound tourism, the swot analysis, segmentation analysis and segment attractiveness analysis have narrowed down our target sector in order to exploit Victoria in competitive advantages over other cities in Canada or other destinations overseas and position it as a tourist destination of golden age travelers age 65 and older. If Opportunities are explored, we can promote victoria as an authentic experience that will allow natural, cultural and seasonal traveling for first time or frequent visitors.

APENDIX 1

STRENGHTS

WEAKNESSES

Perceived as desirable destination (Ocean, Rocky mountains, gardens, beaches, lagoons)

Museums & Historic Sites

Attractions and Entertainment

Parks, wildlife, natural areas & Outdoor activities

Local Heritage & Aboriginal Attractions

Location and Safety (near cosmopolitan cities, bordered with USA)

Same Language

Seasons are opposite from Australia

Brand is no very Recognized

Not many international Flight go Directly out or into Victoria

High Taxes for shopping

Health Services are not available to temporary visitors

Lack of high end shopping

High prices for airfare, accommodation and tourist attractions

OPPORTUNITIES

THREATS

Canada meets Australians market on motivations for visiting a country(sceneries, access to nature and outdoor activities, wildlife and proximity to cosmopolitan cities)

Increase awareness through tour operators

Develop sustainable and cultural tourism

Develop agreements with neighbour cities to promote affordable trip packages

Depreciation of USA dollar makes it a more attractive and affordable tourist destination.

Closer are more affordable destinations in Europe and Asia could shift Australian visitors flow from Victoria

Australia offers similar products in terms of tourist attractions, events and activities

Not clear differentiation between Victoria and Vancouver.

Notes

1. Wikipedia, “List of countries by GDP (nominal).” Last modified 2013. Accessed February 13, 2013. http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal).

2. Super Natural British Columbia , “Victoria Geography.” Last modified 2012. Accessed February 13, 2013. http://www.hellobc.com/victoria/geography.aspx.

3. “Global Summary Report 2011.” Canadian Tourism Commission. : 27.

http://en-corporate.canada.travel/sites/default/files/pdf/Research/Market-knowledge/Global-tourism-watch/global_summary_gtw_yr5_2011_en.pdf (accessed February 13, 2013).

4. Department for Communities. Western Australian, “seniors’ Wellbeing Indicators 2012, Demographic Profile.”Perth, Western Australia 2012. http://www.communities.wa.gov.au/serviceareas/seniors/research/Documents/SO46 SWI Demographic Profile.pdf (accessed February 13, 2013)

5. Exams Tutor, “Behavioural Segmentation.” Last modified 2012. Accessed February 13, 2013. http://www.examstutor.com/business/resources/studyroom/marketing/market_analysis/9_behavioural_segmentation.php.

Strategy Used By Premier Inn

Premier Inn is the UKs biggest and fastest growing hotel company, owned by Whitbread. And the company contributes 70 of the total profits of Whitbread (Annual Report, 2009). As the hotel industry, the development of Premier Inn is highly dependent on the macro-environment, especially the tourism industry. Indeed, hotel industry and tourism industry have been so close that the following reduce in tourism after the economic crisis has strong impact on hotel operations. However, the British hotel industry has been suffered significant loss although it has manifested recovery during the previous years.

Last year, the continuing crisis in global finance and trade has triggered the world’s worst economic plunge. UK’ unprecedented economic contraction was described by Sir Terry, Tesco’s chief executive, as low point. However, from the second half of year 2009, the UK economy appears to be in a slowly recovery. Companies have begun to hire and consumers seem to be increasing. This paper focuses on the strategies used by Premier Inn in this situation. Then we will review these strategies, and recommend some resolutions to close the gap. The following section will also use PEST analysis to audit the macro-environment that Premier Inn is facing.

2. Review on the Strategy Used by Premier Inn

In this part, we will review the strategies that used by Premier Inn. And we will only focus on the marketing strategy and operating strategy.

2.1 Marketing Strategy

Marketing strategy is very important and even could be the biggest factor in the success or failure of the company. Premier Inn also attached great importance to the marketing strategy. In this year, the company makes an additional 8 million pound in marketing investment (Annual Report, 2009).

First, Premier Inn has start out a commercial action plan to enhance its status as the preferred hotel brand for travelers and to attract more leisure customers. They put in place four key levers in their marketing plan: “focused advertising; increased sales activity; Premier Offers; and widening reservation distribution” (Annual Report, 2009).

Furthermore, the new website went live in November 2008 and has increased visits by 80, and now the site helps to attract over three million visits per month (Annual Report, 2009).

Third, Premier Inn has also set out development of a new 267 bedroom budget hotel at Stratford, which adjacent to the Olympic Stadium (Annual Report, 2009). It can be seen that Premier Inn has already prepared for the 2012 Olympic Games.

2.2 Operating Strategy

This paper considers that operating strategies in Premier Inn are as follows:

First, Premier Inn has specific short and medium term growth programs, which give employees a specific direction. For instance, the company wants to increase room numbers in November 2010 by over 2500 rooms and target a 32 increase to 55000 rooms in the UK by the end of 2014 (Annual Report, 2009).

In addition, the Premier Inn has decreased the overheads instead of adopting streamlining management, promoting the “back-office processes” and delivering a series of procurement initiatives. The company want to control cost tightly, through both procurement and operation efficiencies. And this helped underpin its operation margin.

Last but not the least, the Whitbread launched Good Together program in January 2010, to drive sustainable performance and further deepen its corporate responsibility. This program has set goals for CO2 reduction, sustainable sourcing and waste management (Annual Report, 2009). Premier Inn also announced that they would build green hotel. The 60 bedroom Premier Inn, starting the business in autumn 2010, will use the best level sustainable construction materials to reduce 30 carbon emission and 40 water savings.

3. Evaluation on the Strategy Used by Premier Inn

A PEST analysis is an outline that classifies environmental influences such as political, economic, social and technological forces (Camison, 2000). The analysis inspects the impact of each factors on the business (I¤I±IˆI±I?I¬I?I·, 2009). The results can be used to seize the opportunities or to make contingency plans for threats when preparing business and strategic plans (Byars, 1991; Cooper, 2000). In this part, we will use PEST analysis to evaluation the strategy adopted by Premier Inn. Owing to the limited understanding of the technology, we will focus on the political, economic and social factors. At the end of this part, we will give recommendation on the strategy used by Premier Inn.

3.1 Political Factors

Government policy is a major influence factor; its policy will influence the company directly and indirectly, but they also offer chances and challenges. After the global economic downturn in 2008, the government has issued a series of policies to boost economic growth. However, the policy aimed at hotel industry or tourism industry is very rare. But when the United Kingdom general election of 2010 was held, the three parties all put forward many programs to promote the tourism industry. Meanwhile, the British Tourism Association and Hospitality Association has lobby the government to issues some policies that are positive to tourist industry and hotel industry. Besides, in 2009, Prime Minister Gordon Brown offered the proposed program “Low Carbon Industrial Strategy”, which plans to provide more than 1.4 billion pound for the low carbon sector and those already adopted, and outlay 10.4 billion pound for low carbon investment over the next three years (Plesch, Austin & Grant, 2005) .

Based on these political factors, this paper considers that the strategies Premier Inn adopted are valid, especially the operating strategy. First, the operating strategy in Premier Inn is aggressive which just meet the political situation. Second, the Premier Inn has launched Good Together program which aims at CO2 reduction. These practices not fit the proposal the government advocated, but fit the society’s environmental demands.

3.2 Economic Factors

Economic factors influence how easy or hard it is to be successful and lucrative (Thompson, 2002). The UK government has held a serious of international sporting events in 2009, such as the Ashes and the ICC World Twenty 20. These events may promote visitor numbers and then boost the hotel industry. In addition, the 2012 Olympic Games and Paralympic Games will hold in London. This will provide the Britain hotel industry with a huge chance.

Obviously, Premier Inn has already seized the opportunity because it has already developed some hotel which is adjacent to the Olympic Stadium. And the new website will play a significant role in convenient the consumers. Actually, the marketing strategy that Premier Inn adopted has already worked. From the annual report of the Whitbread, Premier Inn outperformed its competitors during October 2009. Regional income was down about 6.4 last year, compared to a decrease of 8.5 in the regional hotel sector and a decline of 9.6 in the whole regional hotel industry (Annual Report, 2009).

3.3 Social Factors

Social factors also play an important part in the development of enterprises. Living conditions, income distribution and lifestyle all have tremendous influence on the operating methods of enterprises. With the improvement of living conditions, people are willing to spend more money in enjoying life and choose to relax after working, because their work are so busy and they have rare spare time. Therefore, the services provided by high-level hotels just meet the demands. But after economic crisis, the domestic demand has been weak, and an increasing number of British people choose to travel aboard instead of domestic travel. These social factors are clearly not advantage for the hotel industry.

The marketing strategy Premier Inn adopted, as we described above, does not aim at this social situation. In the author’s opinion, these strategies have more concern about the external market other than the domestic social conditions. But on the other hand, the increase in the number of non-profit environmental organizations indicates that public’s sensitivity to environmental issues has significantly increased. The society has become more anxious and critical about the environmental practices of firms. Good Together program of Premier Inn not only shows the efforts made in environmental protection, but also enhances the corporate image and upgrades its enterprise competitiveness.

3.4Technique Factors

Technology is widely recognized as an important competitive advantage (Chu & Choi, 2000). As the hotel industry, technique factor seems have little relationship with the hotel development. But sometimes new and proper technology could provide unexpected harvest.

From the strategy we mentioned above, Premier Inn have adopted the new website that now attracts over three million visits per month. Moreover, the company has used streamlining management to reduce the internal cost.

In general, we think the strategy used by Premier Inn is very appropriate under the current situation. But the problem is that it is too much reliance on the international tourist industry. Once the outbreak of the economic crisis, this mode of operation is very dangerous and company may get into trouble. Actually, the domestic business and conference market is a buoyant sector for hotel (1996); meanwhile the economic gradual recovery will help to stimulate the hotel market. So Premier Inn should make some strategies to attract these potential consumers. To serve these high standards clients, Premier Inn should offer amenities services to meet the highest requirements. High quality and multi-functional rooms equipped with latest communication facilities, such as online 3D conference, will be very attractive. In details, based on what the businessman needs may different from the common consumers, the quick and facility services are obligatory to them. Such as the office supplies, fast printers and speedy laundry facilities are all very important to these consumers.

4. Conclusion

In this paper, we focus on the strategies used by Premier Inn after the serious economic crisis. The article mainly analyzes the marketing and operating strategies with PEST analysis in the current situation. In general, we consider that Premier Inn has adopted appropriate strategies to boost its development. But the problems in the strategies were pointed out that the company has not paid enough attention on the domestic market. In the author’s opinion, Premier Inn should pay more attention on its domestic market.

Strategies Of Sustainable Tourism In Maharashtra Tourism Essay

Tourism is concerned with pleasure holidays, travel going or arriving somewhere. These are the motivation that makes people leave their normal place of work and residence for short term temporary visits to other places not more than one consecutive year. Tourism is generally considered to be beneficial activity and for most people an ideal land use activity; a non-polluting, job generating and foreign exchange earning industry. However, years of sobering experiences have led to the realisation that mass and uncontrolled movement of people creates certain social, economic, political and environmental impacts of the destinations. These impacts vary as per the type of tourism promoted and can be both beneficial as well as adverse. This essay discusses and defines the key term sustainability and competiveness and how they can be use as a strategy to develop tourism in Maharashtra, which is one of top ranked tourist destination in India.

The key word in the analysis of tourism is sustainability, a notion that at its most basic summarizes the growing concern for the environment and natural resources, though sustainability has also had increasing resonance in social and economic issues in tourist destinations.

The destination has played an important role in tourism. It is a mix product of the tourism which offers integrated experiences to its tourist and consumers. Basically destination are regarded as well define geographical areas such as a town, a city, a country, a nation or as whole world where tourist stay at least one overnight (WTO, 2007). On the other hand it is growing subjectively by the tourist and consumers depending on their flexible demands as when they plan their itinerary on the basis of culture background of the destination and the purpose of visits. It may be educational, business, or vacations to experience importance of the place. Such as a Paris as a destination for German business travellers, for Leisure Japanese, Europe may be a destination within their specified period of a trip (Vlahovic, S., 2010). Apart from this A Jungle may be a destination for scientist and researchers who involve in nature related study simultaneously it is destination for people who like to visit Jungle in their vacation such as Jungle Safari. In addition to it ‘tourist destination also helps in generating revenue to the government as well as private sector which is a significant factor while considering tourism’ (Edward, J., 2010).******************

Since beginning destinations are divided by manmade borders such as geographically and politically, which does not considering the consumer preferences or tourist industry functions (Vlahovic, S., 2010). Whereas Holloway and Taylor (2006) say that all destinations share certain features such as the place of attraction, services and facilities and accessibility of the destination.

Currently in all worlds destination a high competition can be seen. Due to mobility and accessibility of the tourist destination around the world, also emerging changes in tourist destinations with technology, infrastructure, and communication. ‘Therefore destination cannot escape the competitive challenges by the justification that the task is too difficult’ (Vlahovic, S., 2010).

Mostly, destination are varied in nature, these are not always with equal potential, some have lot of potential resources competitive advantages, and some have limited natural resources and infrastructure to support the tourism development in particular destination (Ritchie and Crouch 2000 cited McCartney et al.2008). According to McCartney et al., 2008, there were question between Ritchie and crouch 2000, that whether destination are by born or created? The answer is in question itself. Further Ritchie and Crouch (2000) mention the definition of destination competitiveness and how it’s related to sustainability as firstly ‘its ability to increase tourism expenditure, to increasingly attract visitors while providing them with satisfying memorable experiences and to do so in a profitable way, while enhancing the well-being of destination residents and preserving the natural capital of the destination for future generations’.

As a result of this it can be assume that destination competitiveness in tourism has several sustainability dimensions such as economic, social, cultural and environmental. Competitiveness has become a central point of tourism policy. As its increases and tourism activity become stronger, so there is need to put some limelight on improving the competitiveness by creating a constitutional outline to examine, to control and enhance quality and effectiveness in the industry and to protect (to sustain) resources (Vlahovic, S., 2010).

Sustainability has defined by Bruntland’s Report (1987 cited Cooper et al., 2008) that “meeting the needs of the present generation without compromising the ability of future generation to meet their own needs” So to understand the sustainability of resources and how much potential available in destination, there is necessitate to do SWOT as well as PESTLE (Tribe,1995) analysis of the destination from internal and external then require to focus on essential innovative strategy to come up from weakness and threats and to strengthen it to create more opportunity in the future.

Strategy has defined by Quinn 1980, “It is an outline of a plan that combines organizations major goals, policies and sequence of action in to a cohesive whole”, whilst strategy is the way and scope of an organization, it has two phases ‘one short term about three year and second long term more than 5 year (Cooper et al,. 2008) preferably which matches its resources to its changing demand from the surrounding particularly in destination markets to tourists and consumers so as to meet stake holders opportunity (Tribe, 1997).

Pike and Ryan (2004 cited McCartney, et al, 2008) said that ‘competitive strategy through comparing cognitive, affective and conative perceptions of the destination.’ They concluded in their studies that “effective positioning requires a succinct, focused and consistent message. Positioning analysis requires an understanding of how a destination is perceived to perform on attributes deemed important to the target market, relative to the competition”. On the other side in terms of income and expansion of a national tourism industry in the global market of develop and developing countries, which could therefore raise the real income of its citizens and develop its standard of living (Hong, 2008).

Therefore, high demand in competitive strategy or policies require proper and better education and training about the sustainability tourism through academic orientation programmes, government and private organization, also through various information channels (Harris et al 2002).

The concept of Sustainability strategy has become in practice by World Conservation Strategy (WCS) in 1980. It was commissioned by the United Nations Environment Programme (UNEP) which jointly with the World Wildlife Fund (WWF) provided the financial Support for its operations. The main strategy has aim to make basic structure and legal guideline to develop and developing country to explain the involvement of living resources conservation to human survival such as green house gas effect, emission, destruction, degradation, extinction of flora and fauna species, pollution, genetic diversity and soil erosion and to sustainable development identifies the main concern of conservation problem and the main requirements for dealing with them and proposes ways for effective accomplishing the strategy’s goal (NSSD, 1980).

There are mainly four pillars of sustainable strategies that are economic, environmental, social and cultural. And it requires suitable consideration of all above four parts of pillars for well being of all stakeholders, to achieve long-term goals requires the engagement of all the stakeholders concerned to the production and consumption process of sustainable tourism though it is related to ruralisation or urbanization (Cooper et al., 2008).

Economic Sustainability:

Cooper et al., 2008 explained that ‘economic sustainability requires holistic planning across all industrial sectors. It must also reach beyond the destination to make sure that intermediaries such as tour operators are not able to circumvent or put unwanted pressure on the planning processes’, it may create a negative impression on the tourist and tourist destination. Mowforth and Munt (2009) have mentioned that ‘economic sustainability is not less important than all others in any tourist development. Sustainability in these terms refers to a level of economic gain from the activity such as planning, training etc., sufficient either to cover the cost of any other special measures taken to provide for the tourist and to mitigate the effects of the tourist’s presence or to offer an income appropriate other conditions or both’. In contrast, Baumgartner and Quaas (2010) have different view as ‘the general definition of sustainability has based on the notions of weak and strong sustainability’.

Environmental Sustainability

Environmental sustainability in tourism requires greater attention and knowledge about the impacts and ways of translating those impacts into the economic marketplace. The tourist, or service provider in the tourism industry have to understand their responsibilities such as disturbing the natural life cycles so for this reason government legislation should be there in system that in case of failure to abide by those systems (Cooper et al., 2008). Further there is need to calculate carrying capacities, it is an important method of assessing environmental impact and sustainability (Maldonado et al. 1992 cited in Mowforth and Munt 2009).

Social sustainability

Social sustainability is a ability of a community, may local or national, to understand changes such as excess tourists, for short or long term and continuing functioning either without the creation of social disharmony as a result of these contribution or by settling its functions and relationships so that the conflict created can be improve or mitigated (Mowforth and Munt 2009). As per the Cooper et al., (2008) that ‘tourists who do not want to adapt at all will always create negative impacts on the local community. So to avoid it tourist who may be through natural interest where the concerned visitor intrigued by local customs and behaviour so they go to scrutinize and that inspection can set in movement of a commercialisation process that will sooner or later change the events’.

Cultural sustainability

Travel can change person’s life through its visits to various parts of the world and more interaction between the local people of the destinations. It helps to develop the understanding about the tourist destination and its culture of the local people. But some time the relationships within particular society, the mores of interaction, the lifestyle, the customs and traditions are all subjectively means of exchange. Even its culture may be irreversibly altered. Culture is a dynamic a feature of human life as in the society, community and economy; so then it can be assume that changes in culture not always welcome in to the society. That means sometime it creates negative effects. But, the cultural sustainability refers to the ability of people to maintain or understand the elements of their culture which distinguished them from others people (Mowforth and Munt, 2009).

According the definition that destination has made by manmade borders, so here every destination has its own administrative as well as managing style. This includes the rules and regulation of the town, city, states, countries and all worlds to sustain the balance of Environmental, economic, social and cultural sustainability. So, the role of government and private organization to make strategies and policies is to keep engaging and motivating the participants on long term basis such as government stakeholders, private organizations, and other local authorities also the NGO’s in to development of the tourism product. Due to the vast nature of the industry it involves wide-ranging of operations, decisions and planning area with understanding sustainability and non sustainability and the requirements of tourist destinations, its consumer and suppliers such as tourism intermediaries and others like infrastructure developers and legal procedures such as visa and tourists destination management, its statistics of visitors and economy which circulate by the tourism industry (Prugh et al., 2000).

The destination which I have taken that is Maharashtra state of India. So first of all according to definition of destination need to understand geography of Maharashtra.

Maharashtra is a state which located in the western part of India. It is the second most populous and third largest state by area in India. There is a huge tourism potential available in Maharashtra due to its culture and vide range of geographical area.

The borders of Maharashtra is the Arabian Sea to the west of India with a 720 km long coastline along the lush green Konkan region, nestled Sahyadri mountain range are several hill stations and water reservoirs with semi-evergreen and deciduous forests. Gujarat and the Union territory of Dadra and Nagar Haveli to the northwest, Madhya Pradesh to the northeast, Chhattisgarh to the east, Karnataka to the south, Andhra Pradesh to the southeast,

Goa which is the part of Maharashtra it has located at the southwest it is a famous holiday spot in the world it is well known by its various beaches. Vasco da Gama sailed down at Malabar Coast in 1948. The Goa’s economy is solely depending on the tourism.

Maharashtra state covers an area of 307,731 km2 (118,816 sq mi) or 9.84% of the total geographical area of India. Mumbai, the capital city of the state, is India’s largest city and the financial capital of the nation. Marathi is the mother tongue of Maharashtra (Govt. of Maharashtra, 2006).

It is also the richest state in India, contributing to 15% of the country’s industrial output and 13.2% of its GDP in year 2005-06.

History

The name Maharashtra also appeared in a 7th century inscription and in the account of a Chinese traveller Hiuen-Tsang, was a famous Chinese Buddhist monk, scholar, traveller, and translator that brought up the interaction between China and India in the early Tang period.

The potential available at Maharashtra that it has four world cultural heritage sites as first two located in the Sahyadri Mountain Range these are 1) Ajanta caves 2) Ellora caves at Aurangabad and 3) Elephanta caves at the Elephanta Island at the Mumbai. And the newly inscribed site is ‘Chhatrapati Shivaji Terminus’ (CST) before it was known as ‘Victoria Terminus’ (VT) (MTDC, 2010).

Bhandardara is noted place for trekking place of Maharashtra followed by Pratapgarh near Mahabaleshwar, Torna near Bhor and Panhala near Kolhapur. Also Sahyadri ranges provide about 7 to 8 trekking cites which has around Pune, Satara, Lonavala and other places. And the rock climbing at Karla Mountains, believed to be dating back to 160 BC. It is home to the huge cluster of Chaitya caves (Planning commission of India, 2007).

The water sport activity available at Panshet Aqua Sports centres 40 km drive from Pune, such as windsurfing, speed boating, kayaking, water scooters etc. Close to Mumbai, Esselworld at Gorai is an amusement park which has roller coasters and water slides. Also the Sailing which is most popular in India available at Mumbai and Pune, in Maharashtra, sailing equipments are available only at the Khadakvasla Lake in Pune. Currently, MTDC has started the Scuba and Snorkelling diving school in the water of Arabian Sea at Konkan (MTDC, 2010).

Before propose, justify and to defend strategy for the chosen destination, require a SWOT analysis of destination internally as well externally (Tribe, 2003). Then it is easy to understand the nature of competitiveness and threats among the four pillar of sustainability. The analysis involves consideration of the major influences upon the tourist destination success in terms of: resources and environment (Tribe, 2003). So according to this, the analysis of Maharashtra’s tourism sector is also based on national and global factor as resources and environmental consideration.

SWOT analysis of Maharashtra (Govt of India, 2007):
Strength available in Maharashtra

Maharashtra has immense potential with natural beaches, heritage and culture. Mumbai is comparatively higher in strength of Maharashtra States. It is commercial as well as entertainment capital of India. Recently, the achievement by A. R. Rehman from Slumdog millionaire movie, It has received a prime interest to population of Indian origin in the source of market of USA and UK.

Mumbai has an international airport brings about 26 per cent of most of the international tourists. Also, it has advantage of getting most of the tourist to the state before any other states in India.

Further, in Agricultural tourism wine tourism now in boom. Because of The international level research institute and providing a better knowledge about the agricultural products which includes export quality product to other countries and how to sustain the farmers land to grow well crops in future. While considering health Medical tourism also in budding stage in metro cities.

Weakness in Tourism of Maharashtra

Every tourism require tourist for its growth so, the tourism industry in Maharashtra is highly depend on the long haul market include USA, UK, France and Germany.

Secondly, the host ambience; when tourist arrived in Mumbai they experience that the condition of western highway is poor, ample amount of advertisement boards and then on the road beggars this all creates a very poor host ambience the reason behind it is population of Mumbai about is approximately 13,788,305.

Thirdly, destination transits status shows that only 5-8 per cent out of 50 per cent of international tourist who visits to India is ready to travel to Maharashtra’s destination. The reason behind it the Safety and security concerns and poor marketing campaign available around India and other countries.

Fourthly, unfocused development and lack of co-ordination between MTDC (Maharashtra Tourism Development and Corporation), ITDC (Indian Tourism Development Corporation) and IRCTC (Indian Railway and Catering Tourism Corporation) etc. have followed their own objectives and plans and are working on separate platform. Lack of co-operation between various governmental organization involved in tourism creates inconvenience to the tourist. For example : A visit to Ajanta World heritage site requires a tourist to purchase as many as 7 tickets due to a distinct jurisdiction issue.(Planning Commission of India, 2007). And Deccan Odyssey Luxury train which serves 7 tourist destinations in Maharashtra has getting less revenue, because of poor marketing strategies and promotions from various tourist information Kiosk available in Maharashtra and other part of India.

Opportunities to sustain tourism in Maharashtra

Due to 9/11 terrorist attack, the domestic tourism growth has increased. Maharashtra Government undertaking initiatives to attract domestic tourism as a tourism strategy. Secondly, Indian government’s Golden Quadrilateral Highway project is now in last stage to connect North- South, East-west corridors by the National highways, and is expected to increase accessibilities in domestic tourism (GoI, 2002). The growing tourism source countries of Japan, China and Sri Lanka have Buddhist populations (Buddha Dharma Education Association) their interest is in Buddhist architecture and heritage is a great opportunity for Maharashtra to offer then its unique ‘Cave Architecture’. Thirdly, the nature of tourist market in Mumbai, the high spending business and leisure tourists mostly from East European countries affects on the market. The available outbound market is China.

Threats which affects to sustain competitive tourism in Maharashtra

Maharashtra had significant threats in last decade that all affect on the tourism of Maharashtra. The series of incidents as bomb blast in 1993 target was Hotels and tourists attraction, train bomb blast 2006 and then at the end terrorist attack on 26th to 29th November 2008 on Hotel Trident, The Taj Mahal Palace and Tower, and Chhatrapati Shivaji Terminals in Mumbai. Secondly, the competitor of it started Economic Impact assessment working with the help of WTO and WTTC, Kerala has already started their vision 2025 to sustain their development growth in tourism. Thirdly, the most competition can be seen in Heritage tourism, beach tourism, back water sport and special interest tourism.

Cultural sustainability and strategies in Maharashtra:

Under the cultural tourism strategy of Maharashtra the government considered that it has distinctive aspects of its rich culture and tradition would be identified and promoted as an integral part of Maharashtra’s tourism. To Identify and promote the state’s folk arts and organize folk dance and music programmes at tourist destinations (Govt of Maharashtra 2006). But to sustain it there is less financial support to those participants in to the entertainment field. The financial support is not on time they need to wait sanction the amount from government. Currently, there is a lot of attention to Bollywood artist, so here it can be seen that celebrities has taken over on Maharashtra’s culture such as following dress sense of Hollywood actresses is now seen in metro cities. There is still no any specific step has been taken by any of the entertainment industry to give chance to local folk artist to perform on large scale.

Environmental impacts and strategies of sustainable tourism in Maharashtra:

Due to dramatically rise in the Domestic as well as international tourism, currently metropolitan cities such as Mumbai and Pune, has facing pollution level problem, considering the case of Pune, in Pune the pollution level always on critical level. Local authority made strict rule for transportation and traffic rule to control the negative impact on the environment but still it not up to the good level to achieve low pollution in those metro cities.

Every tourism activity affects the natural and built environment. The issue between tourism and environment has lot of complication, but to sustain it there are some strategies such as government has made plane to develop eco- tourism for this according to the requirement such as there is no any new construction will take place in preserved area for sanctuaries and other important places such as lakes and forest land. Changes can be made in old building such as government rest houses at hill station and sanctuaries. But, in fact those cost and expenditure on old construction is comparatively higher than new construction. On another side to develop or to sustain such sites, government and NGO’s providing financial and knowledge about the eco- tourism to local people who surviving on the nature.

For environmental sustainability government has chosen some part of Konkan in Mumbai, in this, the residence at those places are paid by government to develop their houses (Huts and Cottages) with amenities and other facilities but to ensure that life cycle of nature it should not be disturb. This is a really good example as well as strategy to understand the rural life at those places in touch with nature for next generation as well as the tourists from urban part also helps to increase income level and living standard (GoM, 2006).

Economic sustainable strategies

The economic Sustainability means the balance of rural and urban economics development. The government and private policy maker should consider reduction of rural as well as urban poverty in specific destination Shen et al., (2008). According to this as per mention earlier that currently the government and various private organization institutions working on the research area of Agriculture, nature (wildlife), medical (Health and safety), information technology-communication and at the end human resource development in the Maharashtra, to provide better employment opportunity to each people and to generate and increase the income level of each people and their standard of living.

Now the current competitiveness shows that unbalance growth in various sector, such as labour on contract and seasonal basis. In short when the pinnacle period of any season starts then the employers often outsource the employment instead of local. The effect of this rises in dispute between local and outsourcing employee.

The India is still developing country; Japan has been supporting in reconstruction of Ajanta caves in Maharashtra and Nalanda University is an ancient centre of higher learning in Bihar, it was a Buddhist centre of learning from 427 to 1197 CE.

The economics of Maharashtra has highly depend on long haul and outbound tourist whose spending capacity is more than domestic tourist, as per discuss earlier that the stake holders play an important role in development in sustainable economic growth through employment and taxation, such stake holders in Maharashtra as Taj, Oberoy, Hilton, Best Western Hotels, Hyatt and in tourism Thomas Cook, Cox and King, SOTC and Raj Travel and other well known tourism service providers.

Social sustainable strategies:

Stren and Polese’s (2000) define social sustainability as development (and or growth) that is compatible with the harmonious evolution of civil society, fostering an environment conducive to the compatible cohabitation of culturally and socially diverse groups while at the same time encouraging social integration, with improvements in the quality of life for all segments of the population (Davidson, M., 2009).

Sex tourism a new phenomenon issue, according to Nair, P., and Sen, S., (2005) that ‘not all the tourists are sex tourists, some of them definitely are’. The sex incident happened in Goa had significant effect on Goa’s tourism, in which there is use of young girls for sex and pornography, by giving them shelter. According to Cooper et al., (2008) ‘the growth of such activities is often supported by a network of facilitators ranging from pimps and brothels through to the apparently more respectable taxi drivers and hotel workers. The internet has only added to the problem by creating an international communication network that can market these services on international scale’. Also, there are lonely child labour in small scale industries and without family, and mostly international tourists who come to enjoy their vacation, consider that child is safe as they feel that the children don’t have any Sexual Transfer Diseases (Nair, P., and Sen, S., 2005).

According to this the people of Maharashtra, stays in various societies there is always up and down glimpses of society can be seen in the social contest. So therefore, social upliftment and improved quality of life through exchanging culture adopting changes in environments and social life. In the situation like natural calamities, the requirement of unity to overcome from natural and manmade unpleasant incidents can be seen in the people of Maharashtra. Though, there may any disputes between different origins of people’s culture.

Whereas, Kulkarni G., (2010) say that ‘people may argue that issue of environment is enough, the enormity of the problem demands that, if each one of people of Maharashtra without blaming to the government authority does their bit toward conserving and sustaining the environment. Then it will ready to lend a hand to next generation to sustain environment with low economic price’

Conclusion:

As a consultant, that every destination and attraction’s consumer and providers should understand that sustainable and non sustainable culture. Then, only the specific growth in next 10-15 year long term period can be achieved without extra energy. Also, balance must be maintain between limits and usage so that continuous changing, monitoring and planning ensure that tourism can be managed properly in Maharashtra (GoM, 2006). There is various strategies can be followed to develop competitiveness in tourism, keep in mind the importance of sustainability such as:

Education and training:

Once, people get basic education or knowledge about the environment and the sustainability in their life, and then the improvement within them can lead to help to their respective destination. For example: local tourist guide training programme, which will help to understand the history as well as importance of the place by local people and how they can serve to the tourist on competitive level. For, this government institution at Mumbai, Pune, Nagpur and Nashik has been playing an important role to give education and training to the seekers. In private organization Taj and Oberoy institution has most influence on tourism industry management in Maharashtra.

Equal opportunity:

There should be put some lime light on rest part of Maharashtra, because current policies highly concentrated on Mumbai only, it provide lots of job and opportunities to the people of respective destination and attraction, so the govt and private organization should not ignore the immense potential available at other places of Maharashtra. They could concentrate on Agricultural tourism, medical tourism, heritage tourism, adventure tourism and wild life tourism etc.

The role of researchers and professional in decision making process:

It can play an important role policy and strategy analysis, in simple words to identify positive and negative points through various researches which conducted by professionals and scholars. Because, the management and the govern body is solely responsible for any changes in process of development in tourism some time it can lead damages.

Safety and security:

Tourist should not be a victim of any manmade and natural calamity; extra care should be taken by the local government and tour operator because of any vulnerability in case of woman or loss human of national and international countries can affects on the specific destination and the future tourists and their decisions.

Decentralization and accountability:

The process of operation and management involves variety of task and governing body, to reduce timescale the requirement of quick and perfect decision to make changes or implementation of original strategies. As well as keeping records of each event and financial transaction leads to clear accountability in the tourism sector. And can help to make better forecasting for tourism in Maharashtra.

Strategies For The Tourism Industry Of Spain Tourism Essay

Tourism is of strategic importance to country as an export commodity to generate foreign currency earnings and a potential generator of taxes for local authorities. Government investment and development of tourism infrastructure benefits all sectors of tourism industry, foreign and domestic tourists, as well as the local in habitants in a tourism destination area. (Jamal, T. and Robinson, M., 2009)

Well conceived development of a critical mass of attractions by the combined efforts of private and public interest directly benefits to all the industry sectors involved in the tourism system, which improves the attractiveness and competitiveness of the destination. For a country to have a successful tourism it is highly essential to maintain the sustainability of its tourist destination. Tourist destination is “a place that a traveller chooses to visit for a stay of at least a night in order to experience some feature or characteristic of a place perceived as a satisfying leisure time experience.” (Jamal, T. and Robinson, M., 2009)

Destinations are regarded as a popular aspect of tourism as they encourage visitors by delivering valuable experience through various locations, resources and service. On the contrary they even attract disasters caused by natural hazards or by human activities.

Disaster is stated as “a serious disruption of the functioning of a community or a society causing widespread human, material, economic or environmental losses which exceed the ability of the affected community or society to cope using its own resources. (Ritchie, Brent W., 2009)

Natural disasters is the result of caprices of nature which includes earthquakes, floods, volcanic eruptions, etc where as manmade disasters are a cause of terrorism, war or industrial action. After comparing these disasters it can observed that, both have immediate threat, danger and the potential for ongoing disruption but manmade disasters to some extent can be preventable and controllable. (McDonald, R., 2003)

This paper will illustrate the effects of Man-made disasters resembling Terrorist attacks and Hotel collapse in Spain, including the marketing strategies that could be adopted to mitigate these disasters for retention of tourism in the destination (Word Count – 2)

Spain is the package holiday capital of Europe and second most popular tourist destination globally, for specialising and maintaining the country’s image of ‘sun, sand and sangria’. In terms of tourism Spain has gained marvellous victory being one of the world’s top five destinations which offers over a million bed spaces in serviced accommodation sector .As per latest research Spain is the second European country after France which holds a market share of 11.4% in terms of international arrivals (UNWTO, 2010). Being famous for its summer holidays, it attracts most of the tourists from countries such as United Kingdom, France, Germany and Scandinavia. (Spain Travel Guide, 2011)

The Spanish economy has generated one and a half million jobs supported by tourism, contributing to one-third of the country’s export earnings and which accounts for 12 percent of GDP. However this achievement has been earned at the cost of society and the environment. The result of this has led to massive expansion through development of apartments and holiday villas as well hotels near the coastline. (Boniface Brian, G. and Cooper, C., 2005). Similarly by gaining popularity, the destination has created huge traffic jams and has the highest amount of cars as compared to Europe. (TV Choice, 2000)

But the major disaster to be considered in Spain is of Majorca which faced Series of Bomb Explosion that occurred in 2009 by Euskadi Ta Askatasuna (ETA) terrorist organisation (BBC News,2009) and the hotel collapse in 2008(Expatica, 2008) which created severe havoc in the region by affecting the life of the tourists.

The blast had affected the itinerary of thousands of visitors as most of the flights were either turned back or diverted for safety. The Spanish economy is highly reliable on tourist for its source of income and tourism trade; but this attack has frightened the localities and has challenge the travellers and tourist’s security beliefs, enabling them to give a second thought of whether to fly back to the destination. On the Contrary, the incident of hotel collapse which occurred due to negligence of the construction has taken lives of many construction workers.

After all these disasters occurred the first priority of the Spanish government was to cut down further repetition of the crises for which the government had implemented certain Counter Terrorism Strategies. The government started providing appropriate training to local police and actors in the civil society for identifying signs of terrorism in the vicinity, by ensuring efficient collaboration between the relevant bodies and front line staff and developing regular contact with local communities.

A software named as Check the Web (CTW) was introduced to monitor regular activities of the militant Islamic websites of Europe to avoid future threats. Various information systems such as Schengen Information System and the Visa Information Systems were developed for protection of citizens and infrastructure by ensuring an area of freedom, security and justice.

The Spanish Presidency adopted an Action Plan to combat Cyber Crime foreseeing the short-, mid- and long-term threats on European network and information security. (Council Of The European Union, 2010)

After the car bombings that occurred in 2009 in Majorca the government took additional securities in all the modes of transport including passenger and air cargo for prioritising the safety of the tourist. For reducing the terrorism threat it is very essential that public and private sector work hand in hand, for data exchange and information sharing relating to Passenger Name Records, processing and transfer of Financial Messaging Data and the information distributed within the local area.

The concept ‘Marketing Strategy’ refers to “an organisational function and a set of process for creating, communicating, and delivering value to customers and for managing customer relationship in ways that benefit the organisation and its stakeholders.” (Ferrell, O.C. and Hartline Michael, D., 2008). The problems faced by Spain in terms of tourism requires a market – led response for which certain marketing strategies if adopted by the Spanish government, can facilitate in times of considerable unease and market turbulence to maintain its tourism.

Firstly the Spanish government has encouraged the Australian tourists visiting Madrid in 2011 for World Youth Day to register at their website, in order to take advantage of insurance facilities and accommodation benefits along with preventing cautions and monitor developments. (Smart Traveller, 2011)

Being the initial country outside Italy to promote this event for the second time it can facilitate better promotions by offering discounts on attraction, restaurants and theatres. The event being conducted on a wider scale in the capital state, it essential that the government should form an alliance with the Airlines, hoteliers, wholesale tour operators and other sources for effective marketing management. (Beirman, D. 2003)

This event will last for a week (Catholic Pilgrim Office, 2011) which if managed properly, can generate income for the country from sources such as additional usage of public transport in that period, expenditure by visitors in tourism and leisure area. Being an island in the Mediterranean it is essential that Spain develops new holiday styles to reduce seasonality, encourage higher spending visitors and to spread tourism more evenly throughout the country.

Madrid being the political and financial capital of Spain serves as the principal transportation hub including centre of technological education, training and development and as a cultural and business centre. Additionally the city is renowned for conducting venues in recent years for international conferences and being the headquarters of World Tourism Organisation (WTO). (Perret, S. and Bijaoui, P., 2006)

In order to promote the destination Spain and its most recognised football club ‘Real Madrid’ have signed a pioneer agreement. This agreement will promote and enhance the tourism brands of the destination globally using its slogan “Visit Spain, Visit Madrid”. However the capital city has effectively developed its public- private collaboration through the city’s marketing agency ‘Promocion Madrid’ and has pioneered its network of strategic alliances with various tourist destinations, including New York, Sao Paulo, Buenos Aires, Mexico and Tokyo. (Andaluz, 2011)

These international alliances will foster the culture and attractions of the destination to the rest of the world. Thus Sports Tourism signifies a great platform for the Region of Madrid to encourage international travellers. This strategy of intensive marketing will feature temporary discounts or incentives as tactics that can be applied to recover losses incurred by the destination due to disasters occurred earlier. Similarly establishment and maintenance of effective media coverage and public relations will play a major role in driving the tourist back to the destination.

Furthermore, the Madrid region is given the opportunity to host the 2018 Ryder Cup. This will create an excellent platform for encouraging Golf tourism at a global level which in return will generate a high business volume for the region due to vast arrival of spectators. In order to maintain sustainability in the Sports Tourism the Government of Spain has signed a Treaty with sports bodies such as Spanish Royal Football Federation and Real Madrid in order to boost the brand image of the destination in international countries. (The Guardian, 2010).

Secondly, Spanish National Tourist Organisations (NTO) has started various promotional campaigns such as ‘Passion for Life’ and ‘Spain Marks’, for promoting the brand image of Spain. The campaign highlights the appeal of the Spanish Lifestyles and the cultural heritage, emphasising on the different regions. (Boniface Brian, G. and Cooper, C., 2005)

Spain Marks describes the various attractions and activities available to tourists in different parts of the country, additionally positioning the destination in terms of lifestyles and attractions.

Turespana, the Spanish National Tourism Authority reveals that buying patterns in major markets are changing and leisure visitors are becoming more independent, preferring self – tailored holidays to packaged tours. The changes are fuelled by low cost and changing preferences of activities. Today the Spanish major islands provide low fare services and independent beaches/islands are growing. Spain Marks is intended to show the country’s flexibility to adapt to this changing market. Hence both its branding and marketing strategy are intended to respond to these trends. (Lennon John, J.et al, 2006)

Such promotional campaign will reduce the barrier of threat created by terrorism in the minds of tourists visiting Spain due to the following criteria. It will help to maintain its reputation of the topmost tourist destination within the target markets. Generate more revenue to the country’s tourism business as a direct result of the campaign activity by retaining and increasing the number of domestic and international tourists visiting the destination. Similarly the campaign will assist in identifying the key consumer insights for domestic and major European markets. Finally it will even improve the relationships with non – tourists sectors. All the above criteria state that the capital is open for business through assortment of events to provide the country’s tastes and fashions. (Ladkin, A. et al., 2007)

However Spain can even encourage the ‘third age’ tourism where Spanish senior citizens can reside in resort hotels at reduced rates outside the peak season (Boniface Brian, G. and Cooper, C., 2005)

Lastly for designing the hotels, the Spanish government can adopt a value chain strategy from coordinating and programming of architecture, towards site security design and risk assessment by maintaining a sustainable collaboration between public and private sector in order to increase local contribution. (Luman Ronald, J., 2011)

The Spanish hotel market can promote itself by being more focus towards leisure oriented than commercially oriented. This can be possible by encouraging the local commercial market and increasing the number of high spending European weekend break visitors. In order to make this strategy successful the local government will have to incur high spending on its infrastructure investments and beaches.

As the hotel sector becomes more internationally reputed it will be an attractive target for international investors, developers, banks and operators to expand their representation in the destination. Additionally, development of boutique hotels and extended stay products will generate revenue for the economy. (Perret, S. and Bijaoui, P., 2006)

Eventually more approaches towards conferences, golf tourism, winter sports facility and activity holidays will increase the brand value of the destination.

After analysing and implementing the concerned marketing strategies, we will now glance at the pros and cons of these strategies.

Firstly, Madrid being the capital has become the major hub of various events and thus acts as a brand ambassador for the destination. Various short, mid and long term marketing strategies for promoting tourism, has been implemented in the respect to Sports, conferences, public welfares and attractions. This generates a huge income for the economy and promotes the brand image of the country.

But after applying such strategy, the threat it will attract is the unpredictable terrorist attacks which create a sense of fear in the environment and in the mind of tourists. Similarly there are chances that huge involvement of media in such events might work in favour or against the situation in case of sudden calamity.

As Spain is highly bound to face terrorist attacks in future, it needs to take precautions over expansion of its promotional campaigns which unite all the international tourists together at a specific location. The fear of such disaster reduces the profit margin of the economy finally leading to a decline in the expected annual budget.

Secondly, the next strategy of promoting various campaigns such as Spain Marks have been quite effective in promoting the country’s brand image as similar strategies have been proved effective in promoting London where Total London Month (TLM) and Total London Tour (TLT) was structured in encouraging the Londoners for using tourism facilities by offering discounts on attraction, restaurant and theatres.( Ladkin, A. et al., 2007)The only side effect of this is that where on one side it generates more revenue for the country on the side it increases traffic jams and pollutes the environment due to increasing arrivals of tourists.

Finally the rapid development of hotels on the island attracts the involvement of international companies to invest in the destination which imports more international currency and builds a strong economy. However this will affect the environment as it reduces the land for plantation, affecting the ozone layer.

After analysing the above strategies, the best approaches that will work in favour of Spain is of the high interest shown in the field of sports, conferences, public welfares, unexplored attractions along with promotion of various campaigns. This is essential as the current trend demands experiences, fulfilment and rejuvenation rather than promotion of destinations and commodities.If these targets are implemented successfully then Spain stands an excellent chance of being the top most tourist destination in future.

To make a final conclusion for this paper it is recommended that the various stakeholders engaged in the tourism sector, need to maintain effective collaboration between public and private organisation as tourism being their basic economic activity and consider additional prevention measures against the problems created from the external environment. Similarly there is a need to reinvent various strategies for attracting tourist due to the changing revolution. Hence there is a need to practice and remember the saying “Prevention is better than cure.”

Internationalization In The Hospitality Industry

Introduction to the Hospitality Industry

The hospitality industry composed with service oriented industries which included industries in vast range of fields like Tourism, Hotels, Restaurants, Lodges, Leisure Parks, Transports, Medical Hospitals & Services, Advisory Services, etc..

It consists with low profitability an industry to Highest Profitability industries which are broadly distributed among the world and also this profitability is greatly fluctuates than manufacturing industries due to the several reasons. These each and every Hospitality firm consists of several working groups such as Front Office, Back Office, Maintenance Unit; Operations Unit, Human Resources, Marketing, Promotion and Advertising, etc (David, and Chon, 2006).

Depend on the type of service they offer, this hospitality industries covers a broad range of organizations. They can further divided into sub categories depend on the Skills and qualifications their workers have to cater their customers with the set of services they have.

E.g; Cooking, Nursing, Entertaining, Advising, etc

They are in position to cater the needs of customers better than the competition is more likely able to sustain competitive advantage over time. Catering to customer needs is dominant to delivering desirable levels of customer satisfaction in the tourism industry. The formula for executing this task is particularly fragile in tourism because of the heterogeneous and simultaneous nature of service production and consumption.

Tourism experiences are rarely, if ever, delivered without in-depth employee-customer interactions. Thus, tourism experiences are people-intensive on both sides of the service fence. Additionally, tourists tend to have higher expectations for hospitality and overall levels of service quality because their context is typically more emotionally charged. An empowered workforce is a secret to success in these unique area employees who are inspired and enabled to make meaningful and suitable decisions close to customers in order to take care of important customer needs

Internationalization is described as the expanding of activities and resources among the other countries of the world, beyond domestic level. However, in the internationalization the firm should be more effective and efficient enough to cater the customers in the world over domestic level. Although starts at that level, when a firm becomes a larger, they can generates more profit and thus with their efficiency, they can reached far and wide variety of consumers while making the market more attractive. It leads to broaden the market continuous way in the world (David, and Chon, 2006).

Strategies of internationalization in hospitality industry

There are several strategies of internationalization to gain more customer satisfaction n with effectively and efficiently.

The development of computer technology, communication technology, and new means of transportation all leads to develop the internationalization. Today, internationalization has turn into one of the major concern of firms As barriers to international trade fall down in most of the parts of the world, managers happen to attentive in new trends in an fluctuating global environment (Macleod, 2004).

For example, the Euro currency is ahead a chief position within the European market and it forced to the Eastern European markets to develop rapidly to face this competition, it effects to the Asian markets too. They are opening to the world.

International firms change their strategies from one geographical region to another, to sustain in the competitive business environment.

Eg: One of express delivery service in the world, Federal Express (FedEx) dominates the market in the American Region, but in the other markets like European Region, FedEx was not successful. That market dominated by DHL.

Hotel franchising agreements is a legal document in which a franchiser offers an approved opportunity to a franchisee to carry out their business. This is permission to franchisee use brand name, reservation systems, products, operating systems. Franchising strategy is used by Hilton International as a part of its international strategy decision (Shepherd, and Cooper, 1997).

Management contracts means in which management is separated from their ownership, where a company can contract its overseas operation of management to a management team in revisit for a payment

For an example: Sodehxo is one of the companies which use management contract in the industry.

Strategic alliances means in which a bond or a partnership or a connection forms between two or more companies that can support from larger market exposure, economies of scope or range enlarged visibility for the brand name . The best example is the strategic alliance between Nortel and Microsoft Company.

Joint venture means in which the international firm provides a partial equity venture to home businesses to protect their promise to the agreement. Accor is actively involved in joint ventures in different Asian markets such as Malaysia and Vietnam

Call Center Service Recovery means Telephone based customer service is the largest customer services’ channel in both North America, and Europe (The Editors 2007). Call centers’ customer service volume is higher than electronic mail support service. Despite this lack of acknowledgement from call centers, there is a gap between the service provided and customer expectations.

The Green strategy means industry perceptions and perspectives as a new market -driven business focus for gaining competitive advantages. All businesses no matter how benign or smart their operations are create some level of environmental harm. These impacts can be minimized or controlled by a adopting a well-articulated firm-level green strategy. This require to green should not just be to address companywide environmental challenge but also a proactive strategy to stay on the right side of the regulation and for profitability (Kotler, Bowen, and Makens, 2003).

Issues and impacts of internationalization on hospitality industry

Issues and impacts bring together the latest developments in international hospitality operations with the current management principles. It provides a truly international viewpoint on the hospitality and tourism industries and provides a fresh insight into hospitality and tourism management.

Internationalization is a major trend for today’s organizations. The services sector is also unquestionably becoming increasingly international in scope. A rapid Internationalization of world economy during the 1990s has increased the opportunities to export services and services are now the fastest growing part of international trade. Speed up by their aspiration for growth and profit, host governments provide incentives, and invest throughout the world. Hospitality organizations have revealed that their survival and growth in the future depend on extending of their services around the world (Hearns, Baum, and Devine, 2009).

The global hospitality industry is therefore one of major part of international business. Those companies therefore have to look up the inferences of the global framework in which they operate and always need to prepare for the changes of this highly fluctuating environment.

The Internationalization of industry and its way is characterized by communicating over vast distances in foreign languages, normally travel to overseas countries, trading in many currencies, and coping with social systems, series of political and, cultures and customs. And regulatory environments, the aspects of Internationalization of are very easy to identify, considerate the basic current and future trends and market can be analysis and reveals a number of issues are reshaping the Internationalization hospitality industry, though there are very clearly some multifaceted questions that are still to be resolved (Mason, 2008).

International spreading out with general product and brand position;

Organizational structures that tolerate delivery of services with local operational control;

Cross-border employee training to support operations; and

Use of the world capital markets as sources of funding.

The Positive Impacts of Internationalization on the hospitality industry;

Exposure to different cultures: Due to the internationalization of the managers of hospitality industry, they would be able to gain knowledge of different cultures, as they get to fuse with people from different walks of life and thus, enhance their awareness.

Larger Market: Due to internationalization, the customer base has enlarged significantly. Not only for holydays, people travel all over the world for various purposes like business, Pilgrims, Education, health, etc. Thus, this has widened the market of hospitality industry, which gets their major income from these international visitors.

Boosts the economy: As visitors come in and spend money it effects to the foreign exchange of the country and it gets increase. Thus it gives huge boost to the economy as internationalization leads to pump money into the country.

Technology Development: Since firm needs to attract more tourists as possible, hospitality organizations always need to improve and develop their products and services.

Example: Fly Kingfisher, use innovative and newer technologies in hotels to satisfy their customer needs.

Allow to creativity: Firms are continuously thinking of new and innovative ideas to draw more customers.

More Jobs: Due to internationalization, more visitors come into the country and thus more people will be required to serve their needs. Therefore, with the internationalization, there are lots of more jobs opportunities for people within the areas which hospitality industries are located.

Variety of International Services: Since there are lot of diverse visitors from various cultures, cuisines, traditions, and languages, hospitality industry should include cuisines and various other services to cater them. These services also will be available to the

locals, which makes more satisfied local customers.

Boosts the Travel Industry: Due to internationalization more people travel around the countries. To facilitate this, the tours and travels industry require to develop as well.

People who come into the country by air, ship or land, will use the transport services obtainable as well.

The negative impacts of internationalization on the hospitality industry;

Language Barriers: Due to internationalization, the hospitality Industry can make use of people from different type of countries as they are usually cheaper. They may have troubles in communicating with customers.

Events/Disasters in the Countries: A disaster or incident taking place in one country may affect to the other country also.

For example, the financial crisis makes people to spend less money. It drops down the travelling, Hotel bookings, etc.

Due to increase in terrorism activities some visitors are not willing to travel to those places.

Cultural Barriers: As there are people from a mixture of cultures, one needs to be watchful not to insult them.

For Example, a Muslim not eats pork. Service provider have to make sure not serve food with pork. What’s acceptable by one culture may be reject by another.

Seasonal Employment: During climax periods, a lot of jobs are available in some industries, but as soon as the customers return to their countries, the jobs get vanished as well.

Example: Goa of India; the people in Goa get their revenue only during the climax season, (Dec- Feb and April – July) In other seasons, they have no jobs and no earnings.

Growth of the Communication Technology: Due to international barriers, there is a constant growth in the use of communication technology (Internet, Email, etc). This

reduces the human involvement.

Developing Countries: As technology continuously gets developing, some Countries are unable to keep up with these developments in the technology and they tend to lose out. Example: Though the some African countries have lot of natural resources for the attraction of tourists, they do not have proper infrastructure to cater that large amount of tourists. To maintain that large amount of visitors, they should have to improve

infrastructure.

Increase in Crimes: When tourist arrival increases, crimes increase too.

Example: smuggling, hustling, rape, etc

Bad Habits: Tourists come from other countries sometimes may influence to the local youth in a bad manner. Increase of drug consumption and promiscuous behavior, etc

(Source: Market of sustainable tourism, [online],

Available from: http://towards2015.co.uk [Accessed 12th April 2011])

Integration of the hospitality industry

To offer a better customer service and keep loyal client come back today’s hospitality industry require integration system. Thereby they can maintain their controls and improve their business. To have a smooth running integration system can aid organizations with a sustainable competitive advantage by improving quality of the service while reducing cost.

Superior performance and sustainable product with good quality can help a company to reduce the threat of conflicts/problems with their Suppliers, Staff, Local People, and Government and improve its position as an esteemed partner in destination. That mean, better access to major business resources such as funds, the capability to improve prod­ucts to meet rising market demand, better dealings with governments, and a motivated and faithful staff.

Egg: The computer software is a combination of various modules, which cater to the various aspects of hotel management. It including with hotel staff management, hotel reservation and hotel accounting are taken care of by the different modules in a single software unit. Many software companies have gathered more areas of hotel management into their software. All the operations like bookings, billings, reservations, check-ins, checkouts and etc, are available on screen and can do within few clicks of mouse. Therefore, taken as a whole, efficiency of the hotel staff and the management system is increased. Clients can reserve the rooms and other services through the hotel website directly. There is no room for any third party connection in these events (Kneafsey, 1998).

However, there are some advantages in this integration as follows;

It helps to reduce the cost of transportation as the general ownership outcome in closer geographic regions.

The costs for transactions can be managed if a firm gets hold of the other firms in the vertical chain, so the one division of the company can transfer the goods to the other divisions of the same company. Thereby, transaction costs for transport, negotiations; Monitoring, control & etc. will be eliminated. The by and large, average cost of the firm will be reduced, because if the divisions are in under the same management, then there will be internal supply and department heads will decide the transfer price (Macleod, 2004).

If a firm purchases half finished goods from an outside firm then the work culture could be different and there are opportunities of dispute concerning terms and conditions of supplying or if the outside supplier make a contract and couldn’t supply the goods on time then the firm cannot accomplish its assurance to the third party and the good will of a firm will come to an end. Organizational inferences; if the supplies provider supplying the goods to a firm is big, in terms of sales, size and structure, then it will state the terms and conditions. On the other hand if an internal source is used then there will be no market difference and the supplier cannot oblige any adverse conditions (Haywood, and Maki, 1992)

We can split the benefits of integration into short-term or static gains and more long-term dynamic gains.

The establishment of the Single market within Europe has led to significant gains for the participating member states. The removal of internal market barriers and the harmonization of national regulations are expected to lead to an increase in trade and reductions in cost.

Conclusion

Hospitality and tourism industry plays a key role in international competitive business environment. On one hand, it goes for lot of fluctuations due to different types of global factors. Although, it has been sustained over long period of time by facing to those factors, the two main parts of Hospitality and Tourism Industry combined with is Internationalization and integration. They lead to the growth, sustainability and profitability of the Hospitality Industry and their impacts will be directly involved to the evolutionary change of this Industry.

Strategies Adopted By Four Seasons Hotel Tourism Essay

Four Seasons Hotels and Resorts, the worlds leading operator of luxury hotels with a history spanning four decades and a portfolio that extended worldwide. It is one of the world’s biggest and finest chains of luxury hotels which have developed from one motel started by Isadore sharp 1961 in downtown Toronto Canada, to 82 luxury hotel properties in 34 countries worldwide.

Four Seasons owns its own hotels, principally under the Four Seasons and Regent names, as well as some others, including the Ritz-Carlton in Chicago and the Pierre in New York. About half the company’s earnings come from management fees, and half of it from properties it owns directly.

Their highly admired service quality helped them to become benchmark in luxury hotel market.

The basic operational policy of Four Seasons hotel is “Treat others as you would like to be treated”. Highest quality of service to the customers is acquired by Four Seasons by maintaining and improving their service standards also with an innovative approach and continuous development and an eye for detail every single time of service.

The company shifted from hotel owner to hotel operator in 1990’s the company’s 95% of the shares are owned by Bill Gates the founder of Microsoft and Al-Waleed Bin Talal (Prince of Saudi Arabia equally). Rest of the shares are owned by Isadore sharp CEO and company founder.

Establishment of Four Seasons:

Four Seasons Hotel Chain was founded in 1961, by visionary Isadore sharp with the opening of 126 rooms Inn on the Park in downtown Canada. Sharp was a degree holder in architecture and not from a hotel management background thus Sharp was totally new to the Hotel Business. Sharp describes himself ‘a builder’ who joined his fathers business after graduation.

Joining a hotel industry business was not at all in his mind or his intention till he was working on a project to build a motel. He got an exposure with the motel project and he realised about the upcoming market of luxury hotels. The need of personalised service round the clock with the booming economy made him take a decision to get into Hotel business.

The hotel he opened is named as The Four Seasons motor hotel which he opened with the help from his brother in law. The hotel became famous amongst the business travellers and celebrities as it had a innovative design it was different from other hotels as he built all rooms facing inwards giving a view of inner courtyard and swimming pool instead of the outside neighbourhood.

Growth and expansion:

With the initial success of his first hotel, the big break through which Isadore Sharp was waiting for came in 1970 by opening first Four Seasons Hotel in Hyde Park area of London. Comparatively the room rates were higher than the competitors in the 270 room hotel but then also Four Seasons enjoyed 95% occupancy through out the year. The success came with an innovative idea of hotel equipped with latest amenities unlike old traditional hotels in London.

In 1972, Sharp opened a massive 1600 room hotel convention centre in Toronto, Canada in partnership with Sheraton. It took a long time to complete the project, almost 10 years.

In 1980 the economy was booming and the demand for luxury hotels increased , and thus Sharp started building hotels across the North America, later in almost every major US city, also to take an advantage of real estate deals.

In three decades by 1990, Four Seasons already opened 23 hotels in three countries with net earnings of $15 million.

Four Seasons became Global leader in 1992 with acquisition of Regent International hotels. further strong financial base to build and buy hotel properties worldwide came in 1994 when Saudi Prince Alwaleed Bin Talal bought 25% of company’s shares. They also signed a contract with Carlson Hospitality to develop and expand regent brand worldwide through establishing management contracts and franchising agreements.

Initial Success Factors of Four Seasons:

“To combine best of small hotels with the best of large hotels”

Isadore Sharp

He came up with the idea of opening the medium sized hotels which was enough to give a touch of personalised service providing with a range of luxury amenities and services.

Running business from Customer’s Perspective:

The most effective initial strategy for Sharp was to look at the business from customer’s point of view. He was a innovative thinker to fulfil customers needs in terms of luxury. Example When Four Seasons came into existence the trend was to use flimsy towels in bathroom, he replaced that we 100% cotton towels which worked really well. With experience of opening the first hotel, Sharp realised customers are ready to spend for one thing that’s service. And as Four seasons most guest were business travellers and with the experience he came to a conclusion that for them Service means luxury.

Luxury Redefined:

Maintaining high quality service can also be a brand if delivered constantly according to Sharp. This idea provided him with the initial success in medium sized luxury hotels which gives commitment of providing homelike comforts and personalised service. Thus luxury was redefined as Service and not as decor and architecture. Quality of service comes before the hotel decor and architecture for the customers. As most of the customers for Four Seasons were business travellers Sharp commented

“They are mostly executives, often under pressure fighting jet lag, stress and the clock. We decided to redefine luxury as service.”

Thus the key towards Customer satisfaction was achieved by Sharp and he knew what the customers wanted “unmatched service quality” will give them competitive edge. Although Four Seasons charge 20% extra room rate than the closest competitors but still they were successful of maintaining high occupancy rates. Further Sharp wanted the highest personalised service quality for the guest which was possible only if employees are motivated and happy they will deliver it. Thus employee motivation, mutual respect and empowerment played a vital role in achieving customer satisfaction. And thus he introduced the golden rule.

Golden rule:

Sharp refer to his first business rule as Golden rule ‘treat your customers as you want to be treated’. This became the operational policy for Four Seasons. Every employee is a member of customer service and in charge of it.

And he believed employees are the most important part of Four Seasons hotel because there is very limited time in which service encounter takes place unlike other industries. And the employee has to give his best to maintain proper service standards thus lot of screening and interviews are done to ensure the right candidate is selected for right job.

Innovation:

Innovation contributed a lot in the initial success of Four Seasons. Most of the luxurious amenities and services like Shampoo in the shower, bathrobes, 24 hour room service, two- line phone in guest room, pressing iron, 24 hour secretarial service, big well lit desk were the First to be introduced by Sharp and Four Seasons. The Custom made mattresses is now became the standard of luxury hotels which was Sharp’s favourite.

Vision of Isadore Sharp: Provide each and every thing in the guest room that will make the customer happy.

Growth Strategies adopted by four seasons:

Initial success for Four Seasons did built a platform for them to grow world wide. It created a network of mid sized luxury hotel in almost all key financial cities all over the world.

During this process Four Seasons adopted many different growth strategies as follows:

Brand name is competitive advantage:

The biggest asset for Four Seasons group was their brand name which was not responsible for their initial success but also a part of their global expansion strategy.

The core business strategy for four seasons was

“to continuously improve their market position and profitability to ensure the competitive advantage while obtaining new management contracts worldwide.”

Strategic relationship with investors:

With the help of strategic relationships with many small private institutions earlier helped them to expand their opportunities worldwide. Prince Alwaleed bin Talal bought 25% of company shares and with his major investments in Four Seasons which helped them to enter in new markets as well the ownership was not of Four seasons so it served their primary objective of being a management company.

From Hotel owner to Hotel operators:

Their unique business development model stated they wanted to be a hotel chain operator than hotel chain owner. It has ownership of only three hotels out of their sixty three hotels.

Under this unique business model Four seasons hotel doesn’t have a burden of ownership, the major capital is brought by the partners with whom Four Seasons developed strategic relationships.

There is wide range of management fees (base fee, incentive fee, sales and marketing charge and reservation charge) for providing these services to the owner.

How Four Seasons responded to economic downturns?

Four Seasons faced economic downturns in different years in four decades 1970, 1980, 1990, 2000 in the following years 74, 81, 91, 2001. And all of them made a significant impact on Four seasons strategy.

The hotel business during the time of recession were mainly affected by

Increased interest rates and

Decrease in market prices

With the increased airfares and the increased occupancy rates the tourism was badly affected. Executives of the company were travelling less and the leisure facilities were decreased for the executives which affected the hotel and tourism market.

Furthermore increased terrorism affected hotel and tourism market.

There were drastic steps taken by different hotel operators by cutting labour cost, lowering prices buy Four seasons believed that the industry is going to return to normal soon and Isadore Sharp adopted exactly the other way. He took the challenge during the time of recession and saw the opportunity to develop the hotels. He told his executives about his thoughts that “when our competitors are lowering standards we will raise ours”

The different actions taken by Four Seasons as an answer to economic downturns are:

Four Seasons followed their words to look after their employees:

During the time of recession most of the hotel operators cut down their labour cost but Four Seasons tackled the situation the other way, they responded by cutting the overhead costs but not the labour costs. They aimed for maximizing labour’s value instead of lowering labour cost.

Sharp explained this strategy to his executives,

“And we also know that what we must do to meet that goal, is to lower costs and raise service and product quality. But cutting costs and raise service and product quality. But cutting costs by cutting labour, if carried too far, lowers quality. The only way these seemingly conflicting aims can be reconciled is by responsible employees committed to working smarter. Instead of minimizing labour’s cost we should maximize labour’s value: by convincing our employees that our purpose merits commitment.”

Four seasons offered Flexible Contracts to the employees rather than job cut, in which employees will be called on duty as per the demand of the business which replaced working four days a week instead of five days a week. It was in the agreement of the employees and all the employees were in favour of the decision furthermore the salaries and the bonuses of the managers was also affected. This all resulted in sharing a common policy in heading towards company’s goals.

Improving the products:

Most of the hotel operators paused the construction or running of a hotel for a temporary period but the property business is really high during the time of recession because the properties are sold out on lower rates thus Four Seasons tackled the situation by renovation and refurbishment to improve the products. Isadore Sharp believed that providing quality service to the guest are a necessity and not a service by itself. And if the hotel wants to sustain in the market the new trends in the hotel industries should be followed to keep up with the market. Thus to accommodate these changes and provide customers with quality service. During recession the room occupancy is the lowest thus the inconvenience caused to the guests are very less and thus the guests get a royal out of the world service. They followed this strategy during recession period which gave them a steady growth over the decade.

Advertising costs:

Most of the competitors of Four Seasons hotel kept cutting their advertising and marketing costs, but Four Seasons didn’t cut their advertising and marketing budget to maintain the brand recognition as they had a very good recognition in the Hospitality industry. It is easy to maintain the momentum rather than restart it. This strategy helped them to gain a competitive edge over their competitors in maintaining their brand recognition.

Property market:

During recession the supply in the market for the land was than the demand on low prices. Four seasons took the advantage of low prices of the land and they picked the premium locations which would have been difficult to buy them in normal times. Thus this strategy paid off to Four Seasons during the time of recession and they came with the finest of the hotels in top locations after recession.

How four seasons managed various stakeholder expectations?

Stakeholder: Person, group, or organization that has direct or indirect stake in organization because it can affect or be affected by the organization’s actions, objectives, and policies. (www. businessdictionary.com)

There are three most important aspects of managing stakeholder expectations:

Know your stakeholders

Know what exactly they except from you

Make them accountable for realities of project by making them aware of risks and consequences.

(According to Dr. James Brown, president of the project management company Seba Solutions).

Different stake holders of Four Seasons hotel are

Stakeholders play a vital role for a company to survive thus the company or organisation needs to implement a strategy for managing their stakeholder expectations.

Thus Four seasons implemented following strategy for managing their stakeholder expectations:

STAKEHOLDER MANAGEMENT

Managing the stakeholder’s expectation is a step by step process:

After identification of stakeholders, the second step is to identify their needs.

Needs and expectations of the stakeholders of Four seasons can be described as follows:

Owners: Returns on investment by profit

Management: Management fees on the basis of gross revenue.

Employees: Empowerment, Career opportunities and job security.

Customers: High quality service and luxury.

Society: Corporate social responsibility.

Their strategy to manage stakeholder expectations can be summarised with relation to value chain analysis as well

value_chain_analysis

Value chain analysis is a concept to create competitive advantage and sustaining superior performance.

Owner: Expectation of the owners are really high on returns in terms of profit because they are the one who made the capital investment in the projects.

The different aspects of value chain used by four season hotels are like Infrastructure of the hotel, the most innovative idea of the initial strategy was to come up with medium sized hotels, and it worked really well. It was made possible and successful by Isadore Sharp who was the degree holder in architecture and he knew the latest designs of buildings and hotels like building rooms facing inwards to avoid view of neighbourhood made significant contribution to it. These innovative designs really helped Four Seasons to come up with the highest occupancy among the travellers. Thus they were successful in managing owners expectations by giving returns on their investments in less time.

Management: To ensure a good gross revenue it is vital to get higher occupancy with good average room rate throughout the year.

Sales and Marketing and technology come into picture from Value chain analysis. The marketing strategy for Four season hotel is to target the luxury segment of the market. 69% of their business comes from business travellers and groups. So almost all of their advertising and marketing programmes were designed to enhance the awareness of luxury service provided by Four seasons hotel. Technology played a vital part in achieving their goal by newly designed website and superior reservation system. They gained an advantage over other hotels by Global reservation system which gave an option to the guests to be comfortable with their own local language in North America, Asia and European Network.

Example: There are so many hotels in Hyde Park area but over 30 years Four Seasons has gained and enjoyed the highest occupancy in the area with their strategy.

Employees: Employees expect Mutual respect and Empowerment from Four season hotel.

Employees are the most important stakeholders of the organisation, if they are happy to work for the organisation the whole business cycle can run smoothly, If Employees are happy then the customers are happy with their service it leads to word of mouth publicity and the organisation gets a repeat business.

Employees deserve a mutual respect from the management. Human Resource Management from value chain ensures that employees should get what they deserve and expect. And most importantly the Golden Rule of Four Seasons is ‘treat others as you would like to be treated’ also they believe that if employees are happy then only they can make customers happy.

Four Seasons has maintained empowering their employees, and the best outcome and results can be obtained from their employees by empowering them.

I’m sure we’ve all read reports on the productivity gains achieved by empowering employees. And we all know the workplace has to change to attain this. And in a survey of 264 big company chairman, 62 percent agreed that “one of the most important business issues facing them” was “building and keeping a qualified workforce.”
-Isadore Sharp

d.) Customers:

The expectation of the customers is very high as Four Seasons targets luxury segment of market. Service factor from Value Chain is wisely utilized by Four Seasons to manage expectations of luxury for the customers.

They redefined luxury as service. Four Seasons gained a competitive edge by provided high standard of service with personalised touch. Customers got what they expected from Four Seasons. And they are very successful in making customers happy.

E.) Society:

As Society expects some corporate social responsibility(CRS) from all the hotels and organisation, their expectation for four seasons towards society is really high as well. CSR includes encouraging activities for development of society and avoiding practices which causes harm to the environment.

Four Seasons explain how they help and take initiative towards community by various training and mentoring programmes for young people and helping whoever in need in their website www.fourseasons.com .

Example: They donate organic food to local farmers to feed their animals (Costa Rica) and also providing shelter camps to Urban Elephants(Golden Triangle, Thailand), Raising significant funds for cancer research and awareness programmes.

Recommendation:

Four Seasons has a strong portfolio in the Hotel Industry but to sustain they should focus on few things which are as follows:

Four Seasons should concentrate on building more brands and focus on all the categories like upper-scale, middle and budget hotels. Unlike Accor group of hotel they have segmented their hotels and created a brand focusing the needs of its customers such as Etap, Ibis, Novotel, Sofitel etc.

To compete with other leading brands Four Seasons should come up with more hotels all over the world for more brand recognition and for customers to have a taste of their service.

Furthermore Four Seasons should continue the effective management of the hotel the way they are doing it to sustain in the market.

CONCLUSION

With the base of the case study and research on Four seasons hotel, Canadian based business has an excellent brand recognition all over the world. The company is moving ahead with excellence along with strong financial and operational management. Different innovative ideas of Four Seasons hotel helped them grow in this hospitality business over the years furthermore during the time of recession Four Seasons hotel did really well, thus it says Fours Seasons Hotel has turned economic down turn to a competitive advantage over their competitors by coming up with different properties with prime location after recession (they responded very well to economic downturn). They took the down turn as an opportunity to expand and thus they are achieving excellence in their business.

Strategic Planning In The Hospitality Industry Tourism Essay

The rapid development in the hospitality industry which has lead to importance of strategic planning required in order the firms can have a steady rise in the industry. The life standards of people have been improved due to globalisation which in deed contribute to the development of the hospitality industry. The diversification was a most important priority of the firms in order to utilise the high profiled customer base which they possessed .It is easy to target the customers who are in your door step and this lead to various formulation of strategic plans to target them.

Key words: hospitality, strategic planning

Strategic planning is an organization frame work of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats ) and PEST analysis (Political, Economic, Social, and Technological analysis) or STEER analysis (Socio-cultural, Technological, Economic, Ecological, and Regulatory factors) and EPISTEL (Environment, Political, Informatics, Social, Technological, Economic and Legal).

Strategic planning is the official consideration of an organization’s future course. All strategic planning deals with at least one of three key questions:

What do we do?

For whom do we do it?

How do we excel?

The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources.

The hospitality industry includes a wide range of organizations offering food service and accommodation. The hospitality industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information. (wikepedia n.d.)

Strategic planning for the hospitality industry

(1) The increasing popularity of strategic planning in recent times is attributed to accelerating changes in industries and economies and increasing global competition.

(2) The rapid development of strategic-planning that executives find useful. Firms that engage in strategic planning tend to have higher performance.

(3) A recent study of hotels in the United Kingdom found that business performance was positively associated with the thoroughness, sophistication, participation, and formality of strategic-planning processes.

(4) Strategic analysis the systematic investigation of a firm and its environment is the foundation of the strategic management process.

STRATEGIC PLANNING IN JACK IN THE BOX

Jack in the Box recently announced plans to open 100 to 150 restaurants combined with convenience stores over the next five years.

The stores will feature full-size restaurants and also sell gasoline and other typical convenience store items such as bread and milk. How did Jack in the Box arrive at this decision? According to the company’s CEO, Bob Nugent, an analysis of the convenience-store market indicated that there was plenty of opportunity, primarily because no individual company dominates. The largest player in the convenience-store industry which dominated the market, 7-Eleven, Inc., controls slightly over 4 percent of the market. Compare this to fast foods, where McDonald’s controls 43 percent of the market and Jack in the Box a mere 4.6 percent. Nugent also justifies his decision on the basis of research which indicates that a convenience-store customer is twice as likely to eat fast food as a non-convenience-store customer.”

(5) Strategic analysis can provide excellent information on which to base long-range decisions such as this one.

Knowledge is one of the most important competitive weapons a firm can possess.

(6) As the Jack in the Box example illustrates, detailed knowledge about a firm and its environment can be used to generate new ideas for business and to evaluate the feasibility of ideas before they are actually implemented. Strategic analysis also allows a firm’s managers to become more aware of the company’s strengths and weaknesses and to understand the reasons behind successes and failures. Knowledge about the competitive environment can help to anticipate and plan for changes and predict how competitors or other stakeholders such as customers or suppliers will respond to new strategies or other organizational activities. Strategic analysis can open up channels of communication between high-level managers and subordinates, allowing them to share ideas and perspectives. The participative process will help subordinates to accept changes more readily after decisions are made. (Harrison – April, 2003)

STRATEGIC PLANS AT FelCor LODGING TRUST

For FelCor Lodging Trust, one of the largest hotel real estate investment trusts (REITs) in the United States, a strategic planning exercise led the company to rethink its strategy. Calling itself the ” New FelCor, ” the firm has made dramatic steps toward repositioning itself. The firm business strategy is to dispose of nonstrategic hotels, including all of its Holiday Inn Hotels located in secondary and tertiary markets. After the sale, it will have lower exposure to markets with low barriers to entry.

Other elements of the new business strategy are

(1) To acquire hotels in high – barrier – to – entry markets

(2) To improve the competitive positioning of core hotels through aggressive asset management and the judicious application of capital in the industry

(3) To pay down debt through a combination of operational cash flow and the sale of nonstrategic hotels. The company will become a lower – leveraged company with a stronger and fully renovated portfolio of hotels.

STRATEGIC THINKING AT STARWOOD

When Starwood thought of expanding their business to a field which is relevant and easy to attract customers .They in hotel industry and had a close association with the luxury segment customers so they thought Expansion through Diversification strategy in order use their same luxury customer base to sell their newly introduced ” Heavenly Bed “.

Westin Hotels & Resorts, with 169 hotels and resorts in more than 31 countries and territories, is owned by Starwood Hotels & Resorts Worldwide, Inc

The ” Heavenly Bed, ” first launched by the Westin brand of Starwood Hotels & Resorts, has transformed the bed, a basic feature of any hotel room, into a luxurious object of desire, enhancing the revenues of the chain and leaving many hotel operators to follow suit with copycat linens and custom bedding of their own.

The strategic process at Starwood began with consumer analysis and product testing. First, Westin conducted a study involving 600 business executives who travel frequently. The results showed that 84 percent said a luxurious bed would make a hotel room more attractive to them to enjoy the comfort. What is more, 63 percent said a “good night” sleep is the most important service a hotel can provide. Half of those surveyed said they sleep worse in hotels than at home. After testing 50 beds from 35 lodging chains, Westin developed its prototype all – white Heavenly Bed with a custom – designed pillow – top mattress, goose down comforters, five pillows, and three crisp sheets ranging in thread count from 180 to 250.

Once the product was designed and tested, the firm introduced the bed with a carefully planned marketing strategy are

USA Today ran a story on the front page of its business section.

The same day, 20 pristine white Heavenly Beds lined Wall Street up to the New York Stock Exchange in New York City.

Inside the Stock Exchange, Barry Sternlicht, the then Chairman and CEO of Starwood Hotels & Resorts rang the opening bell and threw out hats proclaiming, “Work like the devil Sleep like an angel.”

Meanwhile, at New York Grand Central Station, 20 more beds graced one of the rotundas there, and commuters disembarking the trains were invited to try them out.

Similar events were staged the same day at 38 locations across the United States, tailored to each city.

Savannah’s event featured a bed floating on a barge down the river with a landing skydiver. Seattle s event took place atop the Space Needle.

To reinforce the message, a concurrent advertising campaign asked, “Who’s the best in bed?”

AN EMERGING RETAIL STRATEGY FOR THE HEAVENLY BED

In the early stages of introducing the heavenly bed .In the first week of launching the Westin Heavenly Bed, 32 guests were interested to buy the bed. A light bulb went on. Westin executives put order cards with a toll – free number in every room. They started placing catalogs by bedsides and desks and set up a web site. By June of 2004, Westin had sold 20,000 pillows – $ 75 for the king – sized version – and 3,500 bed/bedding combos, at $ 2,965 each, enough to spread the idea throughout Starwood, with the Sheraton, St. Regis, and W lines all turning into retailers. The unanticipated success of the Heavenly Bed has spawned a new business – companies that help hotels run their retail arms. Boxport, a spin – off of San Francisco – based hotel procurer Higgins Purchasing Group, operates web sites and catalogs for several chains that now sell bedding.

In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the strategic plan.

It is also true that strategic planning may be a tool for effectively plotting the direction of a company; however, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organizational strategy. Therefore, strategic innovation and tinkering with the strategic plan have to be a cornerstone strategy for an organization to survive the turbulent business climate.