Author: Andre Coleman

1: site A (Old Colliery ) it’s a disused site due to the wards acute and depravation, it requires considerable sterilisation of the premises and clean up the site before making any moves which will cost extra found to be invest out of the initial budget and also the site was used as a dump chemical site, transportation fluidity is extremely poor in this location when coming from Western District zone going toward the Eastern site of the district, and also the image of the site is likely to be seen as low restrict living environment and if considering the diminishment of green space in this locality where people are not willing to be staying in this low class environment where suitable housing accommodation are nowhere to be found. Now when highlighting the dump chemical on this site if taking an example of Fukushima in the recent year nuclear accident when focusing on the radio activity, we could easily underpin that radioactivity diminishes in time, so waste material is general insulated and be stored for a time period until they no longer constitutes a danger, but might also depends on the kind of waste. For wastes at low level of instance having low levels of radiation per mass unit might have being stored for within hours or days while the advanced level must be retained for a year or longer. However its environmental problems could be numerous. Now going back in the time when taking this scenario of us compare to Landfills issue we could come across two distinct major issues about the dump chemical waste concerning the environment and these are the atmospheric effects and hydrological effects. Where most often the household cleaning chemicals thrown by the surrounding people of site, along with the old industrial sites in this area get accumulate and mix over the time, the mixture of chemicals like bleach from the surrounding household of the site produce toxic gases that can significantly impact the quality of air. A more immediate concern is for the welfare of wildlife that comes in contact with these chemicals and it is not unusual to allow them to suffer being incredibly painful deaths from the chemical contamination. In conclusion we could tell that the environmental issues this District is not the appropriate place on where to build an NHS Hospital where physical treatment will be held, and over factor regarding the environment is that this site lacks of green space where the availability of green space is easy to be found on Dams Nature Reserve District. Aside from the various types of gases that can be created, formation of non-chemical contamination along with the dust may cause the atmosphere having impact in the air quality issue.

http://greenliving.lovetoknow.com/Environmental_Problems:_Landfills

2: Site B (Dams Nature Reserve) has much opportunities as it is described in the report compare to the others site due to the fact that it gives way to the nearest railway station, buses service are available to be used on the site and can lead you travel from the Middle district site toward the Western site of the district, where the people around the site are well intellectual and professional which mushes the requirements of NHS entry career’s portfolio which demands t to study for a recognised qualification for these professional staff member even though you can join NHS along with good GCSE and / or work experience in several of lower rank roles, as receptionist or porter from where you can build up qualifications and experience until you reach a senior role career, such as a laundry services supervisor. However the emplacement of Dams Nature Reserve meets the construction requirement, where the aim is to build a hospital in the Mid Southern District side which comes closer to this district along with the golf park viewed as an attractive activity could draw the attention of people in the site. All the more it’s a well prestige site compared to the others districts. It will attract more visitors on the site for those coming to pay for the health service if the NHS is built on this site or any other activities around the site that could attract investor, these could be the non-clinical support services such as catering, cleaning, laundry and pottering all of these could be run with less educating people from the other district that will come working at Dams Nature Reserve, where return revenue can boost the economical density in the area. History revealed that in the 1900s Great Britain also allowed workers from foreign places to come due to the fact that Britain was short of labour force and this encourage economic growth for the country which could also be the case for Dams Nature Reserve to call up for the less skilled population in the others District. Now with the existence of green space around the hospital shore will be viewed as a positive mind set for the environment, because spaces provide habitat for a wide range of birds, fish, animals, insects and other organisms, while avoid soil erosion and absorbing the rain water, thereby improving the drainage. It enables recreational use, somewhere to play meditating collect, or rest. Green provides a sense of social location it possible to obtain social recognition reinforce the feeling of the relationship and family solidarity, can teach and lead others, the opportunity to thinking about the personal values and social support and the link between residents and the natural environment that surrounds it. permit the city more bearable which is crucial for a community to be sustainable. In every walk of life, green space draws people on the outside and promotes social interaction. Provides spaces in which people can get together and possibilities for positive social interaction and environments. Studies have revealed that the residents in the vicinity of common green spaces “had more social activities and more visitors, community gardens are beneficial to the specific health issues affecting the low-income communities in urban areas. Exhibition in green space reduces stress and increases a sense of well-being and belonging, as the buses pollute the air, where the use of green space is shown to absorb pollution from cars driven miles away per day it has also been shown to reduce the urban heat island effect, directly by shading heat absorbent surfaces, and indirectly through cooling evapotranspiration. It also helps reduce noise, by shields dense in trees and bushesand may even clean up partially treated waste water. Finally, a green area is an indicator of overall ecological health of the ecosystem. It comes to a significant step in assessing the ecological viability in the community of Dams Nature Reserve, which is found to be the most prosperous parts of all districts.

Why Protect Urban Green Space?

3: when taking into account the profile of district C (Derelict Woolen Mill Complex ), we come to understand that this part of the district also have good attribute on which its well considerable place to leave on. it location gives access to motorway and buses ride from middle woollen town, but as we are recommended to build an hospital that will best serve demands for people, especially in the Mid Southern District, where enough space for car park would not really be possible to build in the zone, is the traffic issue were when considering transportation connexion from the hospital to be and the link between the districts for the good functioning of the traffic within the district itself and its boundaries in order to increase the traffic in this area but will cost up to a quarter of any budget as its mentioned on the district profile while we are trying to focus on the NHS Trust Hospital budget rather than having extra found to be raised in the contract . we could extremely say that its necessary to have much more roads to easily transfer people from one place to the others in case of emergency situation, while district B is more reliable and profitable for cars owners, public transport and others transportation facilities to move around compare to the rest of the districts . Now as every organisation or business fields we all aim to gain a positive return profit to satisfy our needs along with to meet the patients and visitors needs and requirement, however, there is not a competitive advantage opportunity of the economy in this area due to the fact that people are going jobless and also the others aspect that worries the team is the fact Derelict Woolen Mill Complex District is also seen as a depravation site.

Justification and suggestion:

When reading article about the three sites Old Colliery, Dams Nature Reserve and Derelict Woolen Mill Complex, we’ve understand that Old Colliery District in the past was use as a dumping site for chemical experiences where taking into account the radio activities in this area will not be suitable to establish an NHS Trust Hospital due to the fact of the air pollution and also the image of the site when it cannot attract investor to come establish themselves in this particular area of the district, moving on Derelict Woolen Mill Complex we deliberately see that the site has access to public transport with others good aspect but because its also hold the similar attribute of Old Colliery District when it comes to depravation and also because if having the NHS hospital in this locality it will be difficult for visitors to have access to car park. However, when analysing Dams Nature Reserve we came to conclude that it’s the suitable site on which we should invest on. our choice in that particular site comes when comparing the three districts and their overall overview Dams Nature Reserve met the requirement needed to build the NHS Hospital on due to the fact that it has access to public transport and having a green space in itself which is highly important as a place where having a business activities and hospital around, Dams Nature Reserve District also leads you travel from the Middle district toward the Western district, where the NHS Trust Hospital is proposed to be in this particular map of the District

SWOT & PEST Analyses

Strength: the strength of Dams Nature Reserve is that, its hold a green space environment as a park recreation for people to be coming and have a fresh moment of rest, while the district itself is the most prosperous site compare the rest of them, it has access to public transport and the reputation of the district comes with intellectual and professional people as with a good living environment compared to Derelict Woolen Mill Complex.

Weakness: thinking of the weakness of Dams Nature Reserve comes with the Specialist Scientific Interest and the absence of water and also the wildlife activist.

Opportunity: the opportunity of building the NHS Trust Hospital will again come to reinforce the economical aspect of the district itself and also permit the workforce from the others district to get themselves a job opportunity, while the Hospital itself will also meets the demand for the local and surrounding population.

Threats: in this scenario we could see the threats as the wildlife group and environmental opposition to come into an accord on how to cope with this issue in order to establish the NHS Hospital in the District.

Political

In the political aspect of this task we understand that Hilary Thompson ought to push forward the coming of this NHS Hospital in order to raise her profile due to the coming of the next election. It could have been important for her to use her statue as a member of the parliament to help solve the issue with the activist by having an accord with Dams Nature Reserve District in order to establish the NHS which will at first place reinforce the health service in her district and also promote job for her local community by having some percentage of workforce labour.

Economic

The economic factors is seen to be a professional place to live on where private hospital have already establish themselves and if focus on the return revenue, after solving the conflict between wild activist and others joint group will certainty comes to be a positive choice in regard of investment as it is also demonstrated by a bank representative concerning this site.

Social

Lifestyle factors such as wild activists and the opposed citizen that are not willing to let PFI financing the Hospital project.

Technological

Looking at the technological aspect the people living at Dams Nature Reserve are highly professional and can fluently work in the hospital including the technological aspect with in it

Environment:

Having the Hospital built in Dams Nature Reserve will come to be an ideal place due to the fact that it fits the ecological view of the people and the site never been used as dump chemical experience, along with its green space for the wellbeing of people around life style view is mentioned to be a professional place to live on

Legal:

The Tourism Industry is a flourishing all over the world. The scenario of the tourism industry is ever changing; it is always in a state of flux. Tourism Industry in India is experiencing a high period of growth and has improved over the years however there is still a lot of scope for improvement and expansion. It is fast becoming an important player in the global market. It is also proven that tourism is the industry that contributes most to the Indian GDP, employment and foreign exchange reserves. The tourism industry proves to be the back-bone of other allied sectors for example, hospitality, transport, handicrafts, etc. According to WTTC, in 2011, India has been ranked 1st in direct contribution to employment through travel and tourism and 2nd in total contribution with monetary value of 24974900 jobs and 39351900 respectively. Also in terms of GDP, India ranks 11th in direct contribution and 12th in total contribution [2] . The Indian Government has invested a substantial amount in infrastructure development to promote tourism for the country after sensing the importance in the GDP contribution. This effort has been successful to an extent in increasing the arrival of foreigners in the last decade. The “Incredible India” campaign was also a contributing factor to the increase in tourism. The campaign helped create a colorful and diverse image of India in the minds of travel enthusiasts all over the world. It has directly led to an increase in the interest among tourists and created interest generally around the world.

WTTC (World Travel and tourism Council) ranked India 4th in terms of travel and tourism investment with a total of $ 26.7 billion [3] . Also (in Asia), after China, India stands second. In 2006, 4 million international tourists visited India and spent US $ 8.9 bn [4] . In 2011 (Jan-June), the total Foreign Tourist Arrivals (FTAs) in India was 2.92 million and foreign exchange revenues stood at US$ 78.11 billion which is up 14.2% [5] . As a matter of fact, in spite of a negative growth rate of -2.2% in 2008-09 [6] , Foreign Tourist Arrivals increased considerably which registered a growth rate of 8.1% in 2009-10 [7] , despite the world recession, Indian tourism showed a positive growth. According to World Travel and Tourism Council, India will be a tourism hot spot between the years 2009 -2018 which will show maximum growth rate during this period.

“Nowhere in the world is found, such a beauty, different and diversified climate, flora, fauna, religions, languages, dialects, dressing patterns, life style and rituals, like India.” [8]

Domestic tourism is also very huge in the GDP contribution in the country. There is still a lot of scope in promoting the tourism in many parts of the country. Since tourism is seasonal, it is slightly difficult for the Tourism Department, Government of India. It is India’s middle class that has promoted the tourism in the country. The increase in disposal income among this class of people has contributed to rise in tourism within the country. Consequently, they spend most of their disposable income on travelling. In 2009, there were 669.02 million domestic tourists which comprised about 18.8% of the total tourists in the country. The Indians going abroad is also increasing at a growth rate of 12.28 % per annum.

Scope of Tourism

According to the past trends, India has seen to contribute 0.5% to the global tourism industry. There is still a lot of scope for businesses to tap the market. India has a very diverse geography, culture, food, monuments and a rich past. The ‘Incredible India’ campaign was promoted in order to attract various interests from tourists all over the globe in the varied types of tourism that has a scope for development and promotion. In recent times, Pilgrimage and Medical Tourism are one of the most popular among the foreign tourists. Medical tourism is currently growing at around 30% per annum. The other types of tourism are

Adventure Tourism

Leisure Tourism

Eco Tourism

Cultural Tourism

Wildlife Tourism

Highway Tourism

Heritage Tourism

Rail Tourism

Rural Tourism

An Indian Background chairman of the company, in 1956 established the first office in New Delhi, India. Company wanted to take the benefits of the religious beliefs attached with their company’s name “SITA” in India. It is still associated with high quality and brand. In 2000, Kuoni Travel Holding, a Switzerland based tourism firm acquired the 100 % stake of SITA World Travel India (Ltd.) and it became India’s largest travel company as Kuoni Travel India Ltd. Now, SITA World Travel is an Inbound Division of the Kuoni Travel India Ltd. And It is handling incoming international tourist to India from all over the world through a network of 30 offices in the region including associate offices in Sri Lanka and Nepal. SITA earned its reputation by giving world class services to its clients – travelers, tour operators and the corporate houses. Also it has specialized itself by providing personalized service and close working relationship with its customers around the world.

Factors which affect travel destination selection [9]

Things to do and see

Safety and security

Overall image of the holiday destination

Tourist facilities and infrastructure

Ease of obtaining Visa’s

SWOT Analysis
Strength:

Mass market product with small profit margin and economic of scale to create profit even though demographics and changing consumer trends

Training academy

Providing customized packaged tours

Personalized customer support

Online booking of packages

Offices in major cities of India

Weakness:

People expectation has changed but their packaged tour has not changed

Price of hotel is rising: no solution between cutting slim margin and rising price to customers

Limited only to main destination spots, needs to cover more ground

Proper feedback system not in place

Opportunity:

People go on holiday more than before

Travelers want exotic destinations or short city breaks

Increase in number of tourists because of upcoming sports event

Government lending support as part of “Incredible India” campaign

Increase in disposable income

Threats:

Heavy Price competition

People wait till last minute for bargaining

Rising hotel rates all over the world

General economic slowdown and terrorist attacks

Locally established travelling companies

PEST Analysis
Political

The strongest reason of tourists visiting India is its rich and vast cultural heritage which is under the control of Archaeological Survey of India. So any changes in policy have a very major impact on the tourism industry. Political instability in many states also hinders the tourism opportunities. E.g. – north east is still out of coverage of SITA travels because of this very reason. Although the government is now taking up various measures like stepping up vigilance in major tourist destinations in order to promote India as a safe tourist destination.

Economic

This industry thrives on the spending power of the people. The spending power is increasing in the country as well as all over the world. This increase in the spending power has left a good amount of idle cash in hand. This has led to a tourism boom and more and more people are now coming into the country with more cash and better affordability.

Social

Tourism is seen as something that will ultimately lead to the destruction of the social fabric. It is perceived that more the number of people travelling into a place, the more is the probability of the place to lose its identity. But apart from that people have now started perceiving tourism as a form of recreation. They are now more willing to go for packages like adventure tourism to Leh and Lakshadweep.

Technology

Although it is does not seem to be great factor but it plays a major role. Better technology has resulted in connecting many remote and unexplored areas. On the same terms online booking and transportation facilities provided by SITA travels have increased their number of clients.

PORTER’s Five Forces Model
Threat of New Entrants

As the search cost has been reduced due to the advent of internet it opens up the market for potential entrants, thereby increasing the possibility of a new company joining the market as the entry barrier has been reduced.

Rivalry among Existing Firm within the Industry

The major competitors of SITA Travels in India are Kesari Tours, Cox & Kings India Ltd

As the number of companies is increasing due to the advent of internet and the competition is increasing because of geographical expansion of markets and the reduction of entry barrier, thereby raising the rivalry and hence increasing the discount.

Power of Supplier

Entry barrier reduction and increased competition results in the increase of the power of supplier.

Power of Buyer

Reduction in switching costs has increased the bargaining power of the buyer.

Price has become an important criterion as people now can compare products and gain knowledge about them.

Threat of Substitutes

Competitors offer similar type of products and services.

Segmentation

Tourism (Inbound and Outbound tourism)

Segmentation types: Psychographic segmentation (Class), Behavioral segmentation (User status: First time, Regular, Potential). SITA is a large segment market addressing the customer needs of the international tourists.

Targeting

International Tourism: Initially tourists from USA are targeted, as SITA has stronger links with USA (Origin). Later they focused on other international markets like UK, Japan and Hong Kong. They have started a magazine called ‘INDRAMA’. This magazine portrays the rich tourist literature there by attracting foreign tourists to India). The idea of ‘Heritage village’ further helped them to become a better tourism facilities provider. Inbound and outbound tourists are the tourist types of International tourism.

Market growth of inbound and out bound tourists:

Outbound market: The primary target market segment is out bound tourism.

Overall Market: The total market size of the out bound tourism in 2010 is 12 million. It is expected to cross 20 million by 2015 and 50mn by 2020 (Source: UNWTO); more than 6.29 million tourists visited India in 2011. The total revenues of the out bound travel market is $14bn in 2010 [10] . The Indian outbound travel market has grown from 3.7 million in 1997 to 9.8 million international departures in 2007; the pace of growth has accelerated since 2004 at an average annual growth rate of over 16% [11]

Inbound market:

Overall Market share: The total market size of inbound tourism is 6.18 million

with a growth rate of 8.9%.The total revenues generated rounds off to US$ 16.691 billion.

Competitive Intensity: The major competitors of SITA Travels in India are Kesari Tours, Cox & Kings India Ltd which has more share than SITA while the others are Thomas Cook India Ltd, Karnataka State Tourism Development, Mercury Travels Ltd, Raj Travels & Tours Ltd, D Pauls Travel & Tours, Sachin Travels and Goa Tourism Development.

High budget Customers: The program ‘Affordable India’ targets the High budget segment tourists who come to Indian subcontinent. This program provides value added services to high budget travelers in order to customize destinations which were luxurious and affordable [12]

Positioning strategies

India’s first Leisure travel brand(Luxury segment) (Jan 2006)

Tourist Safety with SITA (Mumbai) ( 2006)

India’s Destination management service provider ( June 2006)

India’s tourist destination for Business travel (Kuoni Business travel) (Feb 2007)

Tourism education (Kuoni Academy) (May 2007)

Young achievers ‘Out learn , Outdoor’ school trips ( 2009-2010)

Perfect moments with Kuoni (2011-2012). This program covers 3 packages ‘The world is mine; Romantic escapes; undiscovered destination

Uniform service :Accommodation, updating tourism infrastructure, travel related equipment’s same in all the offices to maintain uniform service

‘Enpact’ ( 2011- 2012; Kuoni Academy: Pioneers to introduce a new teaching methodology

“Out of the ordinary tours for everyone” (2012) ( Targeting individuals and small groups)

Responsible tourism ( 2012) ( Thru CSR activities)

Indian travel brand which is focused on the luxury segment, Incentive, Trade Fair tours and Sports

Tourism Departments

In order to meet the tourists demand of visiting various places, SITA has tie up’s with local agencies. The services offered by the local agencies are meeting passengers on arrival/ departure, arranging local sightseeing and transport. SITA is maintaining a wide agency network to handle inbound and out bound tourism. The tourism department in SITA is divided in to two sectors as below:

Inbound tours:

This is the main foreign exchange earnings department of SITA. The marketing for this segment is done through various ways as below:

Brochure Tours: Marketing in the form of brochures ( Tour plans in brochure)

Tailor made tours: Customers design their tour

Special interest tours: Organized by companies and other agencies

Conferences and conventions: Arranging travel, registration facilities, accommodation arrangements, conference facilities, entertainment and leisure activities.

Out bound tours:

This is one of the fast growing tourism segment markets in India. Indians are the target customers in this segment. With an increase in the income level of the people, they are showing interest in visiting other countries. The tourist destination for the Indians is primarily USA and Europe [13]

Indian out bound travel market is 3.7 mn in 1997. Currently it is 13mn (2011-2012)

Estimated $28billion revenue in the year 2020.

Fastest growing out bound market in the world in terms of numbers (After china)

SITA Out bound tourism marketing

Major sources of marketing are through brochures and advertisements in the newspapers

Out bound division of SITA received TAAI travel award for 2011 [14] .

MARKETING MIX
PRODUCT (Services & Brand)

While planning the market offering, SITA’s marketers focused on five elements that constitute its customer’s value hierarchy:

Core Products

Destinations are the core products offered by any tour operator. Those offered by SITA are classified into:

Inbound Leisure: SITA’s major portion of foreign exchange is earned by this group. These destinations are designed to focus on leisure while travelling. Apart from must-do destinations these include tailored tours such as Cultural and Heritage Tours, Trekking and mountaineering Tours, Wildlife holidays, wellness and spa holidays, etc.

Individual Travel: SITA has maintained an unparalleled expertise in customizing travel packages for foreign tourists or working professional expecting a well-tailored itinerary which optimizes their time and ensures that all arrangements are in order.

Incentive Travel: Handled by: Distant Frontiers

Designed for large companies to motivate or stimulate their employees

Briefs are taken from each group, tailored to suit their needs and surpass their expectations by offering them special events planned exclusively for each travel group

Post-trip follow-up approach to stay in touch with the customer and ensure a re-visit

Main destinations include:

India

Nepal

Sri Lanka

Bhutan

M.I.C.E.: Meetings – Incentives – Conferences – Exhibitions

SITA is a member of:

The International Congress and Convention Association (ICCA) – a worldwide body that handles all types of International Meetings and Exhibitions

The India Convention Promotion Bureau (ICPB)

The Society of Incentive & Travel Executives (SITE)

Charters:

Leading player in India with the largest number of charters to Goa and Trivandrum

Handles leading charter operations from the UK, Germany, Russia, Poland, and various CIS countries.

Cruises:

Major players in Cochin, Chennai, Goa, and Mumbai

Shore Excursions- Regular sight-seeing trips

Overland Tours- Designed to explore the deep interiors of India

Adventures: Camel Safaris, cycling, trekking, scuba-diving, rafting, biking, mountaineering holidays designed especially for intrepid travelers

Basic Products

Transport

Ground transportation

Flight reservations

Train reservations

Accommodation

Culture & cuisines

Special arrangements- Like Women’s Group, Senior Citizens Tours, etc

Conferences and Events- In collaboration with MICE

Ground assistance

Meet & Greet services

Tour Guides

Tour Escorts

Expected Products

These are impeccable services for corporate clients like:

Seat availability on needed time

Accurate information

Quick check-in for the senior management

Information about various package and routes to a particular destination

Efficient customer support system

Augmented Products

These are the products that distinguish SITA from others. These may include special facilities like Wi-Fi availability throughout the journey, tele-checking, laptops on request, customized meals, etc.

Potential Products

SITA plans to come-up with underwater tourism very soon.

PLACE

SITA has its own branches situated throughout India hence are easily accessible. The customer can either go to the Tour office or plan a tour online. Hence strategic locations are very important for SITA.

North India: Agra, Delhi, Jaipur, Gurgaon, Varanasi, Udaipur

South India: Bangalore, Chennai, Cochin, Trivandrum, Hyderabad

West India: Mumbai, Goa

PROMOTION

The promotional strategies employed by SITA travels are:

Advertising

Publicity

Sales promotions

Personalized products such as Flight bags, wallets, Foreign Exchange and covers of passport, etc

Word-of-mouth Promotion

Credibility: The high magnitude of this is due to high credibility of SITA’s channel, especially in the eyes of the potential tourists.

Sensitivity: The qualities of services they promise are world-class and client-oriented

Approach: The marketers keep their eyes open ? identify the opinion leaders ? Special facilities for them to keep stimulating and creating demand

Personal Selling

Exhibitions- State and national tour packages, cruises, holiday financing, hotels, educational excursions, etc

E-Marketing

Twitter

LinkedIn- http://www.linkedin.com/company/155449

Facebook- http://www.facebook.com/SITAWorldTours

CSR Activities- Responsible Tourism

Spiti Initiative- To build a Solar Bath for a Buddhist nunnery in Spiti

Child Protection- Carries out workshops to protect children in rural and semi-urban parts of the country. Also offers training to children in various educational fields.

Literacy India Program- Has an independent paper recycling unit where women work to earn their living.

Bihar Flood Relief- Using its transportation system, it worked closely with Goonj to dispatch necessities to the flood affected areas in Bihar

Let’s Go Green- Implemented across all offices through posters and Green Utility trays.

Creative Alliance Network- promotes responsible tourism practices amongst the businesses that benefit from Rajasthan’s rich cultural environment.

PEOPLE

Employees

Well versed with the latest technologies in travel management

Well trained to handle difficult customers

Extensive training program’s- SITA Travel & Tourism Academy

Training on courses conducted by WATA, PATA

High credence quality via

Good work place design

Job Design

Other Customers

Caters to customers from diverse backgrounds by offering First class, Deluxe, or Luxury preferences

SITA Travels Online support

Unique Tours and value-added services

Personalized customer support

Bibliography

World Tourism Organization and the European Travel Commission. (2009). Retrieved from http://publications.unwto.org/sites/all/files/pdf/090616_indian_outbound_travel_excerpt.pdf

Indian Tourism Department. (2010). Retrieved from http://tourism.gov.in/writereaddata/CMSPagePicture/file/marketresearch/New/2010.pdf

Kuoni. (2011, December). Retrieved from http://www.kuoniindia.com/press-2011.asp

SITA World Tours. (2012, January 20). Retrieved from http://www.sitatours.com/press/sitaaffordablerelease%20012611.pdf

EconomyWatch. (2010, June 30). Economy Watch. Retrieved from http://www.economywatch.com/business-and-economy/tourism-industry.html

Mol, A. (n.d.). Preserve Articles. Retrieved from http://www.preservearticles.com/201103084425/essay-on-tourism-industry-in-india.html

Olivia Ruggles-Brise, E. A. (2012). World Travel & Tourism Council. Retrieved from http://www.wttc.org/site_media/uploads/downloads/nepal2012.pdf

Prof. Manjula Chaudhary, D. S. (2011, August). Indian Institute of Tourism & Travel Management. Retrieved from IITTM website: http://www.iittm.org/doc/IITTM_ITC_Report-2011-rev..pdf

Reshma S Kulkarni, S. S. (2011, November 26). The Hindu. Retrieved from http://www.thehindu.com/life-and-style/travel/article2659391.ece?homepage=true

An analysis of the hotel hospitality (service) standard – (A case study on Ritz Carlton)Synopsis

Based on the survey did by Singapore Tourism board, during the IMF period out of the close to 1000 delegates majority of the them were “impressed by level of service standards in Singapore. Survey results shows that Singapore has what it takes to develop a world-class service culture. Three in four were very satisfied with hotel service standards and venue facilities. Although there was a high percentage of votes that shows satisfactory service standards were provided but there is still one out of the four whom is either neutral or unsatisfied with the service provided.

Hence, reasons to investigate would include does Singapore have what it takes in terms of the hospitality sector, able to develop a world class service culture? As a tourism hub, how would service standards impact the country/industry? Are the current service provided, meeting the standard requirements?

Introduction

Tourism being a key industry in Singapore attracts millions of tourists and generates billions of income for the economy each year. In 2006, the number of tourists visiting Singapore reached a record number of 9.7 million as compared to 8.9 million in 2005, with an increase of 9 million in a year, beating expectations. Closely affected by the number of tourist visiting, the hotel industry also has experienced an outstanding year. With hotel occupancy and room rates at an all-time high, this shows positive outlook for Singapore and the industry. Key players of the industry include The Ritz-Carlton Hotel Company, L.L.C, Four Seasons Hotels Inc, Starwood Hotels & Resorts Worldwide, Fairmont Hotels & Resorts Inc, Hilton Hotels Corporation.

The hotel industry can be segmented in the form of diamond rating of one to five by the American Automobile Associations (AAA) lodging classification. Ratings are given based on mainly the facilities and services provided by the hotels. One important factor of the five diamond rating is that the guest is made to feel like a very important person at all times by every employee of the organization. One fine example would be the Ritz-Carlton Hotel where genuine care and comfort of their guest is their greatest mission.

Lodgings with a one-diamond rating provide good but modest accommodations. Establishments are functional, emphasizing clean and comfortable rooms. They must meet the basic needs of privacy and cleanliness. Rates are generally economical.

The two-diamond lodging maintains the attributes offered at the one diamond level, while showing noticeable enhancements in decor and/or quality of furnishings. They may be recently constructed or older properties, both targeting the needs of a budget-oriented traveler.

Establishments rated three-diamond offer a degree of sophistication. Additional amenities, services and facilities may be offered. There is a marked upgrade in services and comfort.

Excellent properties displaying a high level of service and hospitality are given a four-diamond rating. These properties offer a wide variety of amenities and upscale facilities — inside the room, on the grounds and in the public areas.

Lodgings awarded five-diamond ratings are renowned. They exhibit an exceptionally high degree of service; striking, luxurious facilities; and many extra amenities. Guest services are executed and presented in a flawless manner. The guest will be pampered by a very professional, attentive staff. The facilities and operation help set the standards in hospitality and service.

(http://www.caasco.com/travel/destinations/diamond_criteria.jsp)

Tourism in Singapore

Being flexible to the changes in the wider socio-economic environment shapes tourism in Singapore. Tourism policies and strategies have thus largely corresponded to global forces such as influencing trend in tourism and economic development as well as reacting to local factors such as changing social conditions in the country. With the increase in travellers for Business Travel, Meetings, Incentives, Conventions and Exhibitions (BTMICE), Singapore Tourism Board (STB) plans to focus its efforts on further developing this and including two other key customer segments; leisure and services.

Tourism drive in the next few years would include the FORMULA ONE SingTel Singapore Grand Prix, the first night race in the history of F1 racing. Two Integrated Resorts, Marina Bay Sands and Resorts World at Sentosa, coming up in 2009 and 2010 following, Singapore can look forward to even more regional and world interest in the future. In addition, the Singapore Flyer, Singapore’s iconic 165-metre observation wheel similar to the London Eye, is due to take tourism to greater heights at the start of 2008. Not forgetting its venture as a shopper’s paradise, there will also be three new shopping malls adding on to its exciting range of tourism products.

Impact of tourism on Hotel industry

Local hotel industry will have to be well-prepared for the visitors that will be travelling into Singapore. As Singapore focus on the Business Travel and Meetings, Incentive Travel, Conventions and Exhibitions (BTMICE) audience, it is important that our hotels meet the requirements of the international standards to cater well to our guest expectations.

In order to meet to the needs of these guests, service and facilities provided must be of a certain criteria. Standard facilities and services would include a 24hr business centre equipped with the latest device, International Direct Dial (IDD) phones, and internet, fitness centre furnished with the latest equipment, restaurants that provide food and beverage (F&B) services, guest service should also be available.

Singapore hospitality industry

Hospitality industry in Singapore has always been doing well, achieving an increase each year. From total number of 184 hotels in 1996 to 226 in 2009. Being a service sector, ensuring customers satisfaction would be their up-most objective. Catering to guest request within the shortest possible time, being pro-active, friendly and approachable towards guest would all make up to the delivery of good service.

Singapore’s best resource would be our labour force. All service sector’s success all ties down to its staff, same goes to the hotel industry. It is the work of all these contributions by commendable hotel workers which makes the visit memorable. Positive forecast and rising confidence in the hotel industry is an essential but not a condition adequate for the industry to pursue its growth to the next level. The hotel industry eventually depends on its people to accomplish this quantum leap.

Service workers play a vital role in building and burnishing Singapore’s reputation for being efficient yet hospitable. An exemplary hotel worker is one who is knowledgeable and display warmth and friendliness, takes good care of guests and gladness in pleasing them. Most importantly, one who is always learning how to do his job better.

A good hotel not only provides premium material comforts, it must also be capable of delivering these services through warm, friendly and attentive staffs to each and every hotel guest. In fact, something that leaves the deepest impression on the guest is quality of the service, or lack of it. Positively applying all these contributions fully in serving, guests bring away these memories that will make them want to come back again. Singapore values and needs more of such work force. They will become the role models, setting the standards to be followed by the peers. They create the benchmark for Singapore’s hotel industry on service delivery.

“In order to successfully transform Singapore into a global service capital, every one needs to play his part. I am confident that if we all take the extra step and be a GEM, and deliver our service from the heart, we will make a difference sooner rather than later, and create in the process a service culture in Singapore that others will talk about.”

By Mr Raymond Lim, Minister in the Prime Ministers Office and Second Minister for Finance and Foreign Affairs in the Excellent Service Award (EXSA) 2005.

(http://www.spring.gov.sg/newsarchive/epublications/et/2006_01/index6.html)

Singapore – PEST analysis

Politically, Singapore Workforce Development Agency (WDA) has implemented the Go the Extra Mile for Service (GEMS) movement aiming to encourage better service. STB has set a target to achieve tourist arrival to 17million by 2015. Hotel performance reflects tourist arrivals, hence in order to achieve what STB’s goal service plays an important factor in improving hotel performance. Another plan by STB is to focus efforts on further developing customer segments (e.g. leisure and services).

Economically, customers have increase in spending power; people are more willing to pay for better service, locally and especially international guests. Locally, more jobs are being created due to the strong and stable economy growth in 2007.

Socially, consumers lifestyle are also improving, therefore when it comes to service it does not satisfy them with just the basics, they would expect value added services. With a fast moving pace, efficiency is another important requirement in service delivery. As a tourism hub welcoming a huge number of worldwide visitors, international service standards of the hospitality sector would be expected.

Technologically, Singapore has an advance technology infrastructure (Wireless Internet, well-coverage telecom services, 3G technology available) seamlessly connecting the people not only within the island but also world-wide. With these tools available it further supports efficiency of work.

The Ritz-Carlton Hotel Company, L.L.C. (Case study)

The history of The Ritz-Carlton Hotel Company, L.L.C. originates with The Ritz-Carlton, Boston in 1927. The standards of service, dining and facilities of this Boston landmark serve as a benchmark for all Ritz-Carlton hotels and resorts worldwide. Ritz-Carlton is a brand of luxury hotel and resort with 70 properties that are located in major cities and exclusive resort destinations of 23 countries worldwide. The Ritz-Carlton brand is managed by the Ritz-Carlton Hotel Company LLC, a subsidiary of Marriott International.

Service and Total Quality Management

Huge pressure on service industries to deliver superior service has been exerting on the increasingly open and intensely competitive market. Many hospitality companies have leap on the service quality bandwagon with the force of rising guest expectations and competitive necessity, which definitely includes the Ritz-Carlton Hotel.

In areas of service, Total Quality Management (TQM) is a participatory process that empowers all levels of employees to work in groups to establish guest service expectations and determine the best way to meet or exceed these expectations. TQM in Ritz-Carlton is referred to as A Way of Life which is a process of Mistakes, Rework, Breakdowns, Inefficiencies and Variation (M.R.B.I.V). The term guest is preferred over the term customer reason being when being able to treat customers like guest the easier it is to exceed their expectations. One successful hotelier has insisted for a long time that all employees treat guests as they would be like to be treated themselves.

TQM being a continuous process works best when good leaders exist in the organization. They create a stimulating working environment in which guests and employees (sometimes called internal guest: one employee serves another employee who in turn serves a guest) becomes an integral part of the mission by participating in goal and objective setting. Leadership is put into practice in several ways. At the Ritz-Carlton, senior leaders personally work with employees to ensure the exhibition of Ritz-Carlton standards. On a daily basis, at the beginning of each shift, these standards are enforced during the daily line-up meetings, where employees are briefed on special concerns for that day. Through employee satisfaction surveys any gaps in the effectiveness of hotel or company leadership are identified. Any problems are dealt with through training.

Excitingly, by installing TQM everyone of the Ritz-Carlton Hotel becomes involved, creative ways of employees are encouraged to solve guest-related problems and improve service. Other benefits include cost reductions and increased guest and employee satisfaction, leading ultimately to increased profits. When employee satisfaction is high it boosts their morale and in turn they provide better services. Leadership is the vital component in promoting focused commitment as the foundation of a quality service initiative. TQM is a top-down, bottom-up process that can only be achieved with active commitment and participation of every employee ranging from the top executives down to the bottom of the corporate ladder.

TQM focuses on error prevention and quality control (QC) focuses on error detection. Quality control is generally based on industrial systems hence it tends to be product-oriented rather than service-oriented.

To empower employees, managers must be able to:

Take risks.
Delegate.
Foster a learning environment.
Share information and encourage self-expression.
Involve employees in defining their own vision.
Be thorough and patient with employees.
Recognition

The Malcolm Baldrige National Quality Award is the highest level of national recognition for quality that a U.S. company can receive. The award promotes an understanding of quality excellence, greater awareness of quality as a critical competitive element, and the sharing of quality information and strategies.

Seven categories make up the award criteria: Leadership, Strategic Planning, Customer and Market Focus, Measurement Analysis and Knowledge Management, Human Resources Focus, Process Management and Business Results. At Ritz-Carlton, a focus on these criteria has resulted in higher employee and customer satisfaction, increased productivity and market share. Perhaps most significant is increased profitability.

The company won the Malcolm Baldrige National Quality Award in 1992 and 1999. The Ritz-Carlton Hotel Company was the first hotel company awarded the highly prestigious prize, given annually by the U.S. Department of Commerce. With 24-hour room service, twice-a-day maid service, complete gymnasium facilities, and menus that continued the tradition of culinary excellence well prepared for competing with Four Seasons and other hotel groups in the luxury hotel market. Ritz-Carlton Hotel is the first to win and only two time winner of the hotel industry.

The Ritz-Carlton Hotel Company was founded on principles of innovative levels of customer service. The essence of this philosophy was refined into a set of core values collectively called the Gold Standards. The credo is printed on a small laminated card that all employees must memorize or carry on their person at all times when on duty. The card lists the three steps of service.

Strengths of Ritz Carlton would be first of all their staffs. With strong beliefs in Organizational leadership capabilities, company leaders are responsible for developing factors that are vital to the success of the company. The Ritz-Carlton Gold Standards Software (e.g. Real-time Database System) available, information can be updated simultaneously throughout operations as a result improves service delivery in terms of efficiency and accuracy of information. With the support of their database system, individualize service could be provided by employees remembering and recognizing guest by name and takes note of the preference of guest when they visit. One example is the review from Asiarooms.com, “Ritz Carlton Millenia is the only hotel in Singapore whose staff greets you with smile and your name, even at 3 a.m.”

Committed employees rank as the most essential element. All employees carry a pocket-sized card stating the company’s Gold Standards, which include a credo, motto, and the 20 basics. Each employee is expected to understand and adhere to these standards, which describe processes for solving problems that guest may have. All employees are to go through training before working at Ritz-Carlton. Ritz-Carlton Hotel is a place where empowerment of employees reinforces decentralized decision making closest to customer. Empowerment is not an organization concept rather than an operational philosophy. All staffs are given empowerment to break away from their job to attend to guests. Each employee is empowered up to $2,000.00 per day/per guest. With allocation of empowerment by leaders to employees, trust is being built upon.

Service like multi-channel touch points are provided for guests. This includes online, front desk, guest and phone services to allow transaction and information to be passed through. To improve service delivery, software is available to allow latest update of guest or company information, on example would be real-time database system. They also provide individualized service, by implementing a Guest Recognition Program. With this guest recognition program, guests are recognized and address by names when greeted, personal preference are also recorded and entered into the database system. All employees in Ritz-Carlton are to personally escort guest to their enquired location rather than directed.

The first to win and only two-time winner of the Malcolm Baldrige Award in the service category (1992 and 1999) truly shows that they possess a strong business model. Basically, the methods used by Ritz-Carlton Hotel to achieve their vision are based on application of the principles of TQM, the Malcolm Baldrige national quality award criteria and the “Green Book”—an employee handbook.

Ritz-Carlton weakness would include the physical landscape of their hotel. There have been review of guest complains that furniture are worn out. Positioned as a High end hotel, naturally it will only be catered to guest who can afford the stay there. Underperforming employees would also post as a huge weakness for Ritz-Carlton. There are complains from customers saying that employees in reception are giggling away, ignoring guest.

Opportunities are increasing as STB targets to attract visitors of 17million by 2015. With the increase in number of tourist arriving, Ritz-Carlton can target on the larger number of customers. With STB’s support for further development of the BTMICE sector, they can make use of the chance to look for areas to review and further improve guest service due to the higher expectations for service delivery.

Threats identified would be competitors following Ritz-Carlton’s business strategies. With the pressure on service excellence and looking at Ritz-Carlton’s success there is a high possibility of competitors following their business strategies. Being on the top for as a service provider, it will be a test to how they can still further improve and be above competitors. The upcoming of Integrated Resorts will also mean that business might be taken away as there a more choices available for the visitors. With Singapore facing the problem of lack of manpower in the service line, it will post as a difficulty for Ritz-Carlton to find a suitable labour force for their service delivery.

Recommendations

Recommendations to Ritz-Carlton would include with regards to their hotel’s physical landscape, they can considered renovating the hotel’s interior. Indentifying all problematic facilities available in the hotel and replace those within the shortest possible time so that it does not affect the guest experience. For the problem to underperforming employees, Ritz-Carlton could highly encourage and look into guest feedback, especially for post-service feedbacks. It is actually very important to push for post-service feedback as usually when customers are unhappy about the service provided, few will bother to complain and will just switch to other available similar service provider as they have the power to do so. If Ritz-Carlton is capable of getting feedback from the unhappy customers they will be able to fully resolve the problem of underperforming employees.

In order for Singapore in terms of the hospitality sector, to develop a world class service culture, philosophy and accomplishment of Ritz-Carlton could be adapted. To educate Singapore citizens of the roles they play in presenting Singapore to the world. As a tourism hub, by having excellence service these standards will be able to help Singapore open up to numerous opportunities for the world class service industry.

Conclusion

Regardless the role of the employee in the company be it member of the frontline staff or a backroom team, all employees contribute significantly to a hotel delivery of service. Services are experiential: they are felt, lived through, and sensed. The moment of truth is the actual guest contact.

Introduction

Shangri-La Hotels (M) Berhad is an investment holding company and also a public limited company. This company was incorporated on June 29, 1971 and currently having a total of 2364 employees. Its headquarters is located at the Batu Ferringhi Beach, Penang. This company is engaged with the operations of services such as hotels and beach resorts, golf course and clubhouse, property management and investment and commercial laundry. The Company’s segments has two segments, which include hotels, resorts and golf course, which is engaged in hotel, beach resort and gulf course business; investment properties, which includes rental from offices, shoplots and apartment and rental of car parks, and others, which include commercial laundry services and investment holding.

Shangri-La Hotels (M) Berhad has many hotel branches located at many different states and locations in Malaysia. Also, customers may have an infinite choice of luxury possibilities with Shangri-La Hotels as there are over 66 hotels located across the globe. Most importantly, customers may find themselves living in a hidden paradise once they chose to stay in Shangri-La Hotel. They can feel relaxed in the luxurious guestrooms, pampering themselves in a 5 star rated hotels with all the supreme services and facilities.

As of December 31, 2010, Shangri-La Hotel (M) Berhad hotel had its properties included Rasa Sayang Resort & Spa, Shangri-La Hotel Kuala Lumpur, Traders Hotel Penang, Golden Sands Resort, Palm Beach Resort and Rasa Ria Resort. However, its subsidiaries include Shangri-La Hotel (KL) Sdn Bhd, Komtar Hotel Sdn Bhd, Golden Sands Beach Resort Sdn Bhd, UBN Holdings Sdn Bhd, UBN Tower Sdn Bhd, Pantai Emas Sdn Bhd, Madarac Corporation and Wisegain Sdn Bhd.

The principal activities of the Company are investment holding and the operation of a beach resort, namely Rasa Sayang Resort. In Malaysia, Shangri-La Hotels (M) Berhad owns the 29-storey, 720rooms Shangri-La Hotel Kuala Lumpur. On the other hand, it also owns the Golden Sands Hotel, Komtar Hotel and Palm Beach Hotel in the island state of Penang. Shangri-La hotels always differentiate their service to match with customer’s taste and demand.

Company Background

The company was incorporated in Malaysia on 29 June 1971 under the Companies Act, 1965. The company was limited by shares with the registered name Taman Developments Sdn Bhd. On 7 September 1974, the name was then changed to Rasa Sayang Beach Hotels (Penang) Sdn Bhd. The company was converted to public company on 23 February 1977 under the name of Rasa Sayang Beach Hotels (Pg) Berhad. On 1 September 1982, the company was listed on the Kuala Lumpur Stock Exchange (KLSE).

Yet, the company was delisted from KLSE on 21 December 1987 due to a general offer made by Perlis for the entire issued share capital of the Company and acquired more than 90% of the issued share capital of the company. On 2 January 1992, the company assumed its present name. The company had successfully merged with UBN Holdings Sdn Bhd which comprised the acquisition by the company from Kuok Brothers Sdn Bhd and Landmarks Berhad, the entire issued share capital of UBN Holdings Sdn Bhd on 21 September 1992. However, the company was re-listed on the KLSE on 1 December 1992 with the company undertook a bonus issue and subsequently a public issue.

Shangri-La Hotels (M) Berhad has its own vision for achieving the goals to be the best hotel. Its vision is ‘to be the first choice for our guest, colleagues, shareholders and business partners. Whereas Shangri-La hotels also has its mission at all the time which is ‘to delight our guests every time by creating engaging experiences straight from our hearts’. The company is operating based on the following principles:

Ensuring leadership drives for results.
Making guest loyalty a key driver of the business.
Enabling decision-making at the guest contact point.
Creating an environment where colleagues may achieve their personal career goals.
Demonstrating honesty, care and integrity in all relationships.
Ensuring policies and processes are guest and colleague friendly.

On top of that, Shangri-La hotels (M) Berhad is operating under all professional persons in order to make Shangri-La hotels to be the top hotel in the world. Board of directors include :

Tan sri A. Razak bin Ramli (Chairman)

Kuok Oon Kwong (Managing Director)

Datin Rozina Mohd Amin (Executive Director)

Dato’ Haris Onn bin Hussein (Independent Non-Executive Director)

Dato’ Seri Ismail Farouk Abdullah (Independent Non-Executive Director)

Datuk Supperamaniam a/l Manickam (Independent Non-Executive Director)

Dato’ Dr Tan Tat Wai (Independent Non-Executive Director)

Tan Yew Jin

Dato’ Khoo Eng Min

Ravinder Singh Grewal Sarbjit S

Joseph Patrick Stevens (Alternate Director to Ravinder Singh Grewal Sarbjit S)

Business

What is the basic requirement of a hotel in order to satisfy customers? Hotel is basically belongs to service industry which mostly provide accommodation services to people for a comfortable stay. Service is very important to a hotel as it will bring to customer satisfaction and customer loyalty. Shangri-la Hotels (M) Berhad are definitely the best hotel which provides high standards of services to customers as it had awarded Best Business Hotel Brand in Asia Pacific by the Business Traveller 2012.

Under Shangri-La Hotels (M) Berhad, it has currently 9 brands of hotels in the service industry. It includes, Shangri-La Hotel Kuala Lumpur, Traders Hotel Kuala Lumpur, Shangri-La’s Rasa Ria Resort Kota Kinabalu, Shangri-La’s Tanjung Aru Resort and Spa Kota Kinabalu, Putrajaya Shangri-La, Traders Hotel Puteri Harbour Johor, Golden Sands Resort Penang, Shangri-La’s Rasa Sayang Resort and Spa Penang and Traders Hotel Penang. Every hotel under Shangri-La Hotels (M) Berhad are doing very well as mostly hotels are ranked five stars hotel and have a very good reputation among customers. Every hotel has its own special attractions such as Traders Hotel always located in the city which easier attach to the entertainment. Whereas Shangri-La hotel offers stylish and luxurious environment for customers.

In order for a hotel to maintain and improve its business, Shangri-la hotels always push their services to a higher level as services are the main key to bring in more businesses. It’s five-star reputation always maintaining a world-class service at all the time. Stylishly decorated, the luxurious guestrooms at Shangri-La hotel present large clear windows with beautiful city views. Memorable and satisfaction of every customer became the crucial mission of Shangri-La hotel. Shangri-La hotel differentiate its rooms according to customers preference. Rooms can be chosen in Deluxe room, Executive room, Horizon Executive room, Premier room and Executive Suite. Customers are able to choose their rooms to prefer a better environment and comfortable stay in the hotel.

There are varieties of services provided by Shangri-la Hotel in order to satisfy customers and bring customers loyalty to the business. Facilities provided by Shangri-la Hotel are partially free of charge for customers to fully utilize such as the facilities of fitness centre, outdoor swimming pool, tennis courts, steam room, sauna, massage, aerobics or dance studios and many more. The beautifully landscaped outdoor swimming pool is the facility always satisfied the customers as they are able to relax and enjoy the fascinating environment. The fitness centre is also an important facility for hotel as many people nowadays are going to fitness centre every week. This had become a habit to them and the fitness centre is an important place for them to workout.

In Shangri-La hotel, there have the facilities of clinic to provide medical service for customers who in ill. This will make customers convenient as they do not need to go clinic outside and able to rest in the hotel after getting medical treatment. Shangri-La hotel also provide disabled facilities for handicapped such as handicapped toilet as to satisfy them although they are people with disabilities. Customers are able to choose non-smoking rooms or smoking rooms according to their preference. Safe deposit box also provided to let customers safe keeping their important documents or expensive goods. Parking facilities and valet service are provided for customers who looking for a stay in the hotel.

Services such as the complimentary shoeshine service is provided for customers who staying in the hotel for a period of time and looking for shoeshine service. Postal and courier service also provided in order for customers to deliver documents or packages. Laundry service provided for customers who want to wash their clothes. Those services are provided to easier customers as they are not necessary to looking those service outside. Child care or babysitting service also provided in the hotel as some parents have some urgent things to do, they can looking for babysitting of their babies.

A hotel can be occupied without few facilities, but cannot be occupied without restaurants and bars. Shangri-La hotel features the impressive selection of international, award winning restaurants, including the award-winning Restaurant Lafite, which serves the finest western cuisine. There are five awesome restaurants and two bars located inside the hotel. The wide selection of dining options makes Shangri-La hotel a best location for travellers who enjoy fine cuisine, and also makes the hotel an excellent location for businessman to convene meetings and conferences. Not only that, Shangri-La hotel provides free breakfast or drinks for customers at the cafe while they preparing rooms for customers. This implication done by Shangri-La hotel is to concern the desired expectation of customers and try to satisfy customers by exceeding customer’s perceived expectation.

Shangri-La hotel also provides 24-hour room service which customers are able to request dishes or drinks with a simply phone call. 24-hour room service is best required by businessman who went out for business meeting and came back late night. It will satisfy them with a delicious meal and the fast delivery. Few shops are located inside the hotels such as the foreign exchange counter and gift shop. Foreigners are able to exchange their currency in the hotel and tourists can purchase gifts in the shop. As now technology became more important, Wi-Fi is the best tool for tourists and businessman. Free Wi-Fi access is provided for every room guests in order for them to access to the internet.

Shangri-La also provides travel and transportation service for customers. Airport connection is one of the service included, guests can choose to reach hotel by hotel limousine pick-up, express train or taxi. This usually is made for foreigners and tourists. Hotel limousine pick-up can be chosen with different types of cars. Car rental service and travel agency also provide for customers in order for them to visit any places nearby the hotel. This services provided for customers so they do not need to look at outside of the hotel and can be avoid scamming. Many business amenities are offered to businessman such as the meeting rooms, binding service, laser printing, scanning and photocopying services in order for them to prepare important documents in their trip.

Prompt and fast check-in and check-out service also attract customers as they don’t have to wait for so long with the service process. Helpful and cheerful receptionists are also type of service that the hotel provided for customers. Receptionists and customer service can help the customers to solve problems such as the changes of rooms or handle complaint. Outstanding staff will satisfy customers as they provide great and wonderful service for them. Hotel employees with smile and cheerful look will make the customers feel happy and satisfied in terms of hospitality service.

By according to the feedback received online, Shangri-La hotel can said to be the highest positive feedback received by the customers. Most customers are satisfied and happy with the services provided by the hotel. Satisfied customers will promote and recommend to others with the great services they received at the hotel. Positive word of mouth can improve the reputation of the hotel and this enable the hotel to attract more customers. Customers satisfactions always brings Shangri-La hotel the effort to do better and it leads to customers loyalty where customers will come back to visit the hotel next time. Shangri-La hotel always maintain a high standard of services as they believe service is the crucial rules of a successful hotel. This is how Shangri-La Hotels (M) Berhad do business in a fully competitive environment and yet did so well in the service industry.

SWOT Analysis

A company’s successfulness always depends on the strategy that the company used to improve its business. SWOT analysis is one of tools that most companies like to use to determine the company’s strengths, weaknesses, opportunities and threat. Hotel industry such as Shangri-La hotels (M) Berhad also need SWOT analysis to use as a guide for the business and distinguish between today situation and future situation. SWOT analysis will be very effective and useful for Shangri-La hotels (M) Berhad to improve its strengths and opportunities and yet minimize the weaknesses and threats.

Strengths, which are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. One of the strengths of Shangri-La hotels (M) Berhad is the brand name. Brand is very important for every business as it helps to internationally recognized for its luxurious hotels and resorts. Shangri-La hotels (M) Berhad is said to be an aspirational brand to the public. Besides, the leadership and management skills of Shangri-La hotels (M) Berhad is well known for its fine and tuned management that is capable enough to run the whole corporation. It helps Shangri-La hotels provide great and excellent service for every customer. Next, the high quality service of Shangri-La hotels (M) Berhad also attract a large number of repeat customers which form a loyalty between them.

In addition, another strength of Shangri-La hotels is its five-star venture that won numerous awards including the leading spot as the Top Asia Hotel in Malaysia, Best Luxury Hotel in Malaysia by the 2012 Trip Advisor Traveller’s Choice Awards and World Luxury Hotel Award’s Global Winner in the Best Luxury Business Hotel and Best City Hotel category 2011. These awards build up a branded image for Shangri-La hotels and reputation in the hotel field. Not only that, Shangri-La hotels (M) Berhad also is the leading corporation on its line of food expertise in various cuisine from eastern to western. Many customers visit Shangri-La hotels are mostly due to the delicious and relaxing restaurants. Clean and tidy of the hotel rooms are the main reason of customers likes to visit Shangri-La hotels as they always satisfied with the environment.

Weaknesses, which deteriorate influences on the organizational success and growth. There are little of weaknesses of Shangri-La hotels (M) Berhad as they always minimize their weaknesses and transform to their strengths. One of the weaknesses is the inadequate of staff with qualifications as Shangri-La only hires personnel with skilled expertise and the draught for manpower. This may affect the shortage of workers and influence the performance of the hotel.

Furthermore, the concept of Shangri-La is outdated and does not appeal to younger generation. They rather go for hotels such as Hard Rock Hotel or G Hotel. Next, the maintenance cost is too high to handle as Shangri-La’s hotel and resort must be excellent to its quality for accommodation. This will increase the expenses of Shangri-La hotels and thus the price of the hotel room will also increase.

Opportunities, that are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. As economy of Malaysia had improve steadily nowadays and tourism sector is growing and booing in the recent years making the demand for hotels to increase significantly. Economy of the country will directly enhance the tourism sectors, thus service industry such as hotel will be attractive. Besides, online market is one of the opportunities that helps the growth of Shangri-La hotels as it ranks No.1 in the Tripadvidor website. Technology helps Shangri-La hotels to attract customers as it is kind of marketing and promotion strategy.

On the other hand, partnership with international airways, KLIA, is one of the opportunities that more foreigners will be able to visit Asia. This in return increases the occupancy in hotels. Besides, as the steadily growth of economy had increase the job opportunities in Malaysia and this will occurs the lack of human resource. Thus, the lack of human resource will encourage expatriates to come and work in Malaysia. These are the upper class people and usually require hotels for their choice of stay.

Threats, one of the threats facing by Shangri-La hotels (M) Berhad is the competition of the business. Rival hotels are setting up their base in Asia and lower their prices making it more competitive. Those competitors will influence the sales of Shangri-La hotels. Guesthouses will also compete as they provide much lower rate and affordable to all people. Low budget hotels are the competitors which offering lower costs of accommodation for customers to compete with Shangri-La hotels. In addition, spreading virus such as SARS and H1N1 and robbery cases will discourage people not travel overseas and thus affected the business of Shangri-La hotels.

SWOT analysis is one of the tools that are very important and effective for every business to determine the situation of the business and thus making improvement for it. Shangri-La hotels (M) Berhad will keep providing great service for customers after doing SWOT analysis as understand the internal and external determinants of the business.

Marketing Strategies (7 Ps)

A company’s success is not only depends on the effectiveness and efficiency of the company’s management. It also need to focus in marketing which is the important process of communicating the product or service with customers. Customers are important as without customers, a company will not grow and success. In order to grow a company, customers satisfaction need to get into details. Shangri-La hotel is a company which marketing its services to the customers. Therefore, Shangri-La hotel must has its marketing strategies to achieve the company’s goals.

Marketing strategies defined as the marketing logic by which the business unit hopes to achieve its marketing objectives. Marketing strategy consists of specific strategies for target markets, marketing mix and marketing expenditure level. Marketing mix is the most common strategy used by many company. Shangri-La hotel is one of the companies which implement marketing mix strategy. Marketing mix consists of 7Ps for developing an effective marketing strategy. It consists of product, price, people, process, promotion, place and physical evidence.

The first P – Product, usually defined in the capacity of goods or services. Product can be differentiated with quality, design, variety and features. The product of Shangri-La hotel is providing services to customers instead of goods. Shangri-La hotel provides online customer service for customers and customers can get to know the hotel with their website provided. Accommodation service is the main service a hotel provides for customer. So, in order to satisfy customer, types of rooms are playing an important role. There are five types of rooms provided for customers according to their preferences.

A hotel must always satisfy customer and build a good relationship with customer through service provided in order to get loyal customer for the hotel and yet maintaining a long term business. Shangri-La hotel provides variety of facilities for convenience their customer to enjoy the stay from the time check-in until check-out. Facilities can be included exclusive room facilities, hotel facilities, dining and entertainment, sport and leisure for customers. Services with intangible are the helpful services provided by receptionists and the smiling face welcoming customers by the staff.

The second P – Price, is the amount of money for customers to pay for accommodation service in the hotel. Shangri-La hotel always fixed the price according to the types of rooms chosen by customer. Customers are able to make booking online as to convenient them for make comparison and know the price. Online booking usually will requested customers to choose few options according to their choices and they can pay the total amount of the room by using credit card. Besides, online booking will convenient foreigners as it provide currency converter for them to convert into their currency.

Pricing strategy using by Shangri-La hotel is based on the service ordered by customers, so customers will be more satisfy with the service because the hotel provide service according to customers’ order. Discounts and allowances will be given by Shangri-La hotel in the off-peak seasons as to attract more customers to increase sales. By giving discounts in a special room rate, customers can have the chance to stay in the hotel with a relatively lower price and the hotel can build the customer loyalty at the moment. Customers also can made their payment with cash or card as to convenient customers and prevent hassle of customers.

The third P – People, relate to persons who involve in the process of interaction. People can be classified into target customers and service personnel by Shangri-La hotel. Target customers of Shangri-La hotel are mostly from upper-class or those who posses higher financial ability. Shangri-La hotel is mostly targeted customers of tourists and businessman. Tourists who come from overseas are willing to stay in a luxurious and expensive hotel as they are of higher financial group and likes with relaxing lifestyle. Besides tourists, businessman is another target customer who mostly required to stay in a five star hotel as their expense will be paid by company. By choosing a five star hotel by business travelers, it will create a good image of the company he/she represented.

Whereas the people of service personnel involve in the interaction, Shangri-La hotel must recruits and hires employees with skills and attitudes. Skills can be relate to the qualification, ability and competency. Attitudes are those behavior that every staff in the hotel must be acquired such as helpful, responsive and smiling. Shangri-La hotel has provided training programmes for all the hotel employees to make improvement. With skills and attitudes, employees are able to satisfy customers in any issues and lead them back to loyalty.

The fourth P – Process, refers to the systems used to assist the organization in delivering the service. For example, when enter a hotel, you welcomed by staff with smiles, check-in service is fast, baggage is taken to room, have a great service from the restaurant and facilities, and finally ended trip and baggage delivered to you. This is the process in Shangri-La hotel. Shangri-La hotel demonstrate process involve in delivering services.

Fast check-in process is the key of first impression of customer as reservation will be served directly by the receptionist. Besides, when customers are in hunger and order dishes through room service, a fast delivering process is enough to satisfy customers. If customers want to make a complaint regarding the non-working of air-conditional, the fast process of making complaint and solve the problem is very important. Shangri-La hotel always help customers to solve problem as they care of customers.

The fifth P – Promotion, usually made to attract more customers to increase sales. Shangri-La hotel usually have promotion and special offer to build long term relationship with loyal customer. Shangri-La hotel is using advertising and online marketing to make promotion. Advertising can be regarded as the banner and brochures of the hotel. Technology had become very important nowadays as most people know how to surf internet.

Online marketing is the trend to promote Shangri-La hotel. Customers can book hotel rooms at other website such as booking.com and agoda.com. Those websites are able for customers to leave feedback regarding their stays. Positive feedback will successfully attracted more customers to visit the hotel. Furthermore, customers are able to pay less for more with special offer and promotion made by Shangri-La hotel. Customers can enjoy delicious meals at the restaurant with the special offer made in particular day such as Valentine’s day. Positive word of mouth is one of the ways for promotion as satisfied customers will recommend other customers to visit the hotel.

The sixth P – Place, where customer can receive the service. Shangri-La hotel is a world-class hotel as hotels are distributed all over the world such as Malaysia, Hong Kong, Taiwan, China, Australia and etc. New hotels are built by according to the demand chain management as the company knows what places are demanded by people for a hotel. There are three Shangri-La hotels in Penang, two at Batu Feringgi and one located in Georgetown. Batu Feringgi Beach is one of the tourist attractions in Penang. Foreign travelers love to visit the beach and this had made the popularity of Rasa Sayang Resort and Golden Sands Resort. Traders hotel is located in Georgetown where most of the businessman likes to visit. Hotels located in the city will be more preferable by travelers as they can go visit any place nearby. Places of the locations of Shangri-La hotel are wonderful and it has its own specific environment.

The seventh P – Physical evidence – refers to services in tangible. The most common physical evidence of Shangri-La hotel is the brochures which mostly customers can requested at the counter. Business cards of receptionists or managers can be regarded as physical evidence as it can be used for next visits or recommendations. Customers can enjoy the beautiful and extraordinary designs of the outdoor swimming pool as it is regarded as the physical evidence. When customers made payment of the hotel room, an invoice of payment will be received by customer. It belongs to physical evidence as shows that customers are able to enjoy the optimum level of satisfaction of services.

Service Issue

Shangri La Hotel Berhad is a limited company that operates throughout Malaysia. Although Shangri-La Hotels (M) Berhad is doing good in the service industry, there have some issues that need to be improved and overcome. One of the issue faced by Shangri La Hotel Berhad is the insufficient manpower to conduct the daily operations. This is because Malaysia is facing lack of workers and is importing workers from other foreign countries. The link between manpower and Shangri La Hotel Berhad is fairly simple as manpower is proportional to productivity.

The more people are available to work, the faster projects can be completed or the more projects a company can take on. Conversely, a lack of adequate manpower prevents businesses from completing tasks. The lack of productivity translates into a reduction in revenue and profit, which in some cases means the business can’t stay operational. Hence if Shangri La do not handle this issue adequately, the efficient and effectiveness of the company will be affected.

The second issue faced by Shangri La is the standards of the hotel staff not on par. With the increasing challenges the hotel sector is facing globally and the escalating demand for tourism products and services, especially in the emerging markets, there is urgent need for players in the region to offer high quality performance standards to survive.

As stated, because of insufficient workers, Shangri La has to hire foreign workers in order to balance up the workforce. Foreigners on the other hand are usually hired from third world countries because of their low cost. This in return has taken toll on the overall performance of the company. Therefore, Shangri La should also look into this matter.

The third issue is about the maintenance handled by Shangri La. As noted Shangri La Hotel Berhad is engaged in the operation of hotels and beach resorts, a golf course and clubhouse, property management and investment and commercial laundry. In the field of golf courses and clubhouse, maintenance is the upmost important.

Shangri La on the other hand is doing just average based on the reviews. Because Shangri La Hotel Berhad is a five star company, they should be able to improve their maintenance and achieve excellence. As stated, maintenance is important in the hospitality trade as it reflects the service provided by Shangri La to their customers.

Besides that, Shangri La also engages in beach resorts, having one in Batu Ferringhi and one at Sabah which is the more popular ones. Based on the reviews of the hotels, Shangri La Hotel Berhad has received complaints on the lack of entertainment provided on the beachfront which is also one of the issue faced by Shangri La. The beach itself is already amazing to enjoy. However, being viewed for their excellence, Shangri La Hotel Berhad should enhance a solution to that matter. Several reviews stated that there is nothing for the people to do at the beach but loafing around making the stay boring and unworthy.

All these issues should be addressed by Shangri La Hotels Berhad as to maintain their international standards. If these service issues are solved, there is no doubt that Shangri La Hotels Berhad will achieve excellence in their line of trade.

Latest Venture / Business Plan

Although Shangri-La hotels (M) Berhad already owns 66 hotels all over the world and has long term customers, Shangri-La hotels (M) Berhad want to keep expand and differentiate its business in order to provide more service to the public. This is also a way to get more income and try to satisfy customers in a long run. Recently, Shangri-La hotels (M) Berhad have some new business plan and latest venture for its business.

For example, they planned to have some major renovation programme for certain resorts. For example, some renovation would be held in Rasa Ria Resort’s Garden Wing guestrooms. When the renovation is fully completed, those improved room products will give the resort a stronger business platform for the company’s future growth and well to compete strongly in this competitive marketplace. They try to satisfy customers of their specific services provided which can’t be found among competitors. This will lead to a competitive advantage for them and customers will looking forward for new venture and service provided by Shangri-La hotels (M) Berhad.

Besides, Shangri-La Hotels (M) Berhad has planned to

Introduction

Leisure and tourism is considered as one way of getting away daily routines. Numerous tourists feel bored and tired of their everyday life so they travel to escape those environments. Their jobs and duties have become a hindrance to joyful feelings in life. Tourism is not merely an economic activity, but it is not all of the host culture, elements of culture and cultural guest that comes and accepts that culture.

?n the Tourism Industry, a dark sector raises called Sex Tourism. Martin (1998) state that, look back to the history the first signs of sex tourism began to appear on first and second World Wars through of the soldiers who needs a place to relax and recreate after a long walk and trajectories in camps. When the military started developing into seas, such as trade trips, the cities changed into busy roads with places of entertainment for sailors and dealers.

Sex tourism is a constantly developing phenomenon which defined as “trips organized from within the tourism sector, or from outside this sector but using its structures and networks, with the primary purpose of effecting a commercial sexual relationship by the tourist with residents at the destination” (World Tourism Organization). Sex tourism also furthers gender inequalities and promotes violence towards women.

There are two forms of sex tourism:

1) Sex tourism “promoted” by those countries in which prostitution is legally recognized and considered as a professional activity;

2) Sex tourism taking place in states that are often considered as developing countries, where prostitution is not regulated by a specific law, but by an illegal system.

This particular type of tourism has both social and cultural effects on the countries of origin and destination, particularly in those situations in which differences related to sex, age, social and economic status of the populations living in such countries are exploited.

The diversity of modern activities is causing impacts on the cultural environment: a common example is the use of cultural as a trade good for the tourism industry. The host community is generally the weak part of the relationship host-guest: taking any influence from the guest side in order to fulfill is requirements (unep 2015). The impacts arise when changes in the cultural v Globalization in the field of economic, cultural, social and political, have a positive relationship and in the field of the environment but a negative relationship with the development of tourism. Tourism can cause change or loss of local identity and values, as well as can convert local cultures into commodities. Tourism can cause change / loss of local identity and values by:

COMMODIFICATION
STANDARDISATION
LOSS OF AUTHENTICITY / STAGED AUTHENTICITY

Commodification

Tourism can turn local cultures into commodities when religious rituals, traditional ethnic rites and festivals are reduced and sanitized to conform to tourist expectations, resulting in what has been called reconstructed ethnicity (unep 2015). Once a destination is sold as a tourism product, and the tourism demand for souvenirs, arts, entertainment and other commodities begins to exert influence, basic changes in human values may occur.

Standardization

Destinations risk standardization in the process of satisfying tourists’ desires for familiar facilities. While landscape, accommodation, food and drinks, etc., must meet the tourists’ desire for the new and unfamiliar, they must at the same time not be too new or strange because few tourists are actually looking for completely new things. Furthermore, tourists often look for recognizable facilities in an unfamiliar environment, like well-known fast-food restaurants and hotel chains.

Loss of authenticity and staged authenticity

Adapting cultural expressions to the tastes of tourists or even performing shows as if they were “real life” constitutes “staged authenticity”. As long as tourists just want a glimpse of the local atmosphere, a quick glance at local life, without any knowledge or even interest, staging will be inevitable.

Cultural clashes:

Cultural clashes, promoted through of convergence of cultural, and can arise from economic inequality which based on consumption patterns and local community. The result can be an overexploitation of the social carrying capacity (limits of acceptable change in the social system inside or around the destination) and cultural carrying capacity (limits of acceptable change in the culture of the host population) of the local community (unep 2015).

Economic inequality

Like all transactions, sex-tourism is both an economic and political phenomenon, this because it must have a market and the transactions must be considered indirectly or directly socially and politically legitimate (Outshoorn 2004 p 267). Many tourists come from societies with different consumption patterns and lifestyles than what is current at the destination, seeking pleasure, spending large amounts of money. Especially in less developed countries, there is likely to be a growing distinction between the ‘haves’ and ‘have-nots’, which may increase social and sometimes ethnic, tensions (unep 2015).

Ethical issues

Finally, ethical issues are also the aspects as crime generation, the practice of child labour and prostitution. With the growth, urbanization of an area, and growth of mass tourism is often the main reason that crime rates typically increase. Furthermore The presence of a large number of tourists with a lot of money to spend, and often carrying valuables such as cameras and jewelry, increases the attraction for criminals and brings with it activities like robbery and drug dealing.

Job level friction

In developing countries especially, many jobs occupied by local people in the tourist industry are at a lower level, such as housemaids, waiters, gardeners and other practical work, while higher-paying and more prestigious managerial jobs go to foreigners or “urbanized” nationals. Due to a lack of professional training, as well as to the influence of hotel or restaurant chains at the destination, people with the know-how needed to perform higher level jobs are often attracted from other countries. This may cause friction and irritation and increases the gap between the cultures.

Child labour

The United Nations has defined child sex tourism as “tourism organized with the primary purpose of facilitating the effecting of a commercial sexual relationship with a child”. For children from families too poor to send them to school, tourism can present opportunities to earn an income. In many destinations, this is a stark example of how the supposed wealth generated by tourism is not being equally shared across society. It can also leave children open to one the most abhorrent forms of exploitation such as child sex tourism.

Every year, countless numbers of children are sexually abused by tourists. Child sex tourism is the commercial sexual exploitation of children in tourism. Despite concerted international efforts to combat child sex tourism, it is an increasing phenomenon. Factors such as internet, low cost travel, border relaxations and visa free travel are making it more challenging to monitor and prevent.

Prostitution and sex tourism

Though tourism is not the cause of sexual exploitation, it provides easy access to it. The lure of this easy money has caused many young people, including children, to trade their bodies in exchange for some money and many times for some material goods such as clothes and food. In other situations children are trafficked into the brothels on the margins of the tourist areas and sold into sex slavery, very rarely earning enough money to escape.

Certain tourism destinations have become centers for this illegal trade, frequented by pedophiles and supported by networks of pimps, taxi drivers, hotel staff, brothel owners, entertainment establishments, and tour operators who organize package sex tours.

Philippines

Philippines has become one of the most popular destination with 40 percent of the visitors are sex tourists. The last years while the Philippines’ economy has made a big progress, a quarter of the population still lives below the international poverty line of US$1.25 per day. Today Philippines has over 300 bars clubs that offer sexual liaisons. An alarmingly problem to the country is that the fathers often don’t take responsibility of the child with result the mothers to can’t take care of the child because of economic issues. This kind of social circumstance usual force the children too in prostitution, with many of them facing such ordeals at an incredibly young age with result to trap the young generation in the sex industry. Moreover, must to be note that $400m spent on prostitution each year in Philippines. There are 500k workers which almost a fifth of whom are minors.

Owners of sex bars in the Philippines often use fake identification documents in order to employ minors. Some former child victims have reported being offered jobs as waitresses in “red light” districts and then being coerced into providing sexual services to customers. Prostitution of children in the Philippines is in some cases associated with domestic work.

It has been estimated that in Manila alone there are 1.5 million street children with result to increase the vulnerability of children to all forms of commercial sexual exploitation of children, in particular, child prostitution, pornography and trafficking for sexual purposes. John Hopkins University state that the number of minors exploited in the commercial sex industry in the Philippines is between 60,000 and 75,000.

Trafficking of children

According to the US Department of State, the Philippines are mostly a source country, and to a lesser extent a transit and destination country for children subjected to sex trafficking. Domestic child trafficking in the Philippines presents more challenges than cross border trafficking. Internally, women and children are trafficked from poor farming communities and rural areas to urban areas such as Manila, Angeles City and Cebu City.

Men are subjected to forced labor and debt bondage in agriculture, including on sugar cane plantations, and in the fishing industry. Women and children were trafficked within the country for forced labor as domestic workers and small-scale factory workers, for forced begging, and for exploitation in the commercial sex trade. Hundreds of victims are subjected to sex trafficking each day in well-known and highly visible business establishments that cater to Filipinos’ and foreign tourists’ demand for commercial sex acts. Filipino migrant workers, both domestically and abroad, who became trafficking victims are often subjected to violence, threats, inhumane living conditions, nonpayment of salaries, confinement, and withholding of travel and identity documents.

Traffickers, at times in partnership with organized crime syndicates and corrupt government officials, recruit family and friends from villages and urban neighborhoods, sometimes masquerading as representatives of government-registered employment agencies.

Apart from poverty, the main causes of child trafficking in the Philippines are low economic development in communities of origin, gender inequalities, limited employment opportunities, large family sizes, inadequate awareness among families, and sex tourism. Also persistent law enforcement officials’ complicity in human trafficking and corruption at all levels of government enables traffickers to prosper and exploit children in the sex industry

Trends

The last years in Philippines has emerged a new form of online child exploitation which seems to have devastating effects. The people who promote child sex tourism in Philippines usually offer money or other rewards to the victims in order to promote direct live streaming videos of children. Since there is no direct sexual contact, often parents see it not as a problem but the damage which webcam sex make to the children in fact is large.

Legislation and mechanisms to protect children from sexual exploitation

In 2004, the Interaˆ?Agency Council Against Trafficking in Persons (ACT), in collaboration with other government agencies, NGOs and other stakeholders, created a six year (2004-2010) Strategic National Plan of Action against Trafficking. This specific plan is split into three components:

Prevention
protection, including law enforcement and prosecution
repatriation, recovery and reintegration

In relation to the prevention of trafficking, relevant objectives of the plan include:

1) Increasing public awareness of trafficking

2) Undertaking research on the root causes of trafficking in women and children

3) Instituting programs at the local level to prevent women and children from being procured by traffickers.

Conclusion and recommendation

Many question the Filipino Government’s lack of involvement in reducing the accessibility of the sex trafficking and sex tourism industry. Currently, the punishment stands at a ?12 fine for the bar or club where the girl is taken from to have sex. Furthermore, being a deeply religious country, access to contraception isn’t widely available and therefore increases the chances of pregnancy among the women.

In conclusion, we have seen that the existence of child sex tourism in the Philippines is directly related to the inequalities in wealth that are present between the developing and developed world. Additional factors include the historical context of foreigners in the islands and the images and stereotypes of Orient sexuality. The way forward must include all actors shows as local people, governments and the tourism industry. However these do not necessarily have the opportunity or motivation to act. Therefore there is a crucial campaigning role to be played by civil society and, in particular, the media. Philippines must to realize that their image such as tourism destination has been damaged by the negative publicity for child sex tourism in order to take drastic measures.

the UN refer that Decriminalization enables sex workers to organize within their communities and register their organizations, obtain identification documents so that they can fully access services and entitlements, engage in advocacy and respond to the health and safety needs of their peers.

By legalizing prostitution, a government can help bring sex workers under labor protections offered to other workers. Some claim that prostitution in inherently unsafe and so should not be sanctioned by labor laws, but many other industries are unsafe such as the mining industry, and this was precisely the reason why government labor laws and unions were created to protect them. Moreover, a legalized form of prostitution will help lessen the incidence of human trafficking through of the rules which will be applied with result to reduce sex trafficking and take out prostitution of the black market. Legalization won’t cure all of the buses involved in the sex industry. But, if it will make the environment marginally safer, which is an appropriate step in the right direction. In other words, legitimizing prostitution in the Philippines will pave way to equal treatment to sex workers.

Reference:

Martin Oppermann (1998). Sex Tourism and Prostitution: Aspects of Leisure, Recreation, and Work (Tourism Dynamics). Edition. Cognizant Communication Corp

Outshoorn, Joyce (e.d), 2004. Politics of Prostitution: Womens movment, Democratic states and the Globalisation of sex commerce, Cambridge: Cambridge University Press.

UNEP, (2015). United Nations Environment Programme: environment for development. [ONLINE] [Accessed 29 April 2015]. Available at: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/Socio-CulturalImpacts/NegativeSocio-CulturalImpactsFromTourism/tabid/78781/Default.aspx.

The Lost Generation – Sex Tourism in the Philippines. The Global Panorama. 2015. [ONLINE] [Accessed 29 April 2015]. Available at: http://theglobalpanorama.com/the-philippines-generation-of-sex-tourism-children/.

ECPAT Website http://www.ecpat.net/

Trinidad, A.C., University of the Philippines, and UNICEF Manilla. (2005). Child pornography in the Philippines. Psychosocial Trauma and Human Rights Program, UP Center for Integrative and Development Studies and UNICEF Manila.

USA department of state, DIPLOMACY IN ACTION case Philippines, (2015). [ONLINE] [Accessed 29 April 2015]. Available at: http://www.state.gov/j/tip/rls/tiprpt/countries/2013/215544.htm.

TRAVEL Health Clinic: sex tourism. WLV – Article Linker Results (2015). [ONLINE] [Accessed 29 April 2015]. Available at: http://wk6kg9sd8m.search.serialssolutions.com/?ctx_ver=Z39.88-2004&ctx_enc=info%3Aofi%2Fenc%3AUTF-8&rfr_id=info:sid/summon.serialssolutions.com&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Sex+tourism&rft.jtitle=Practice+Nursing&rft.au=Willcox%2C+Adrienne&rft.date=2009-05-01&rft.issn=0964-9271&rft.volume=20&rft.issue=5&rft.spage=251&rft.epage=255&rft.externalDBID=n%2Fa&rft.externalDocID=10_12968_pnur_2009_20_5_41986&paramdict=en-US

Exploitation of children (2015). [ONLINE] [Accessed 29 April 2015]. Available at: http://tourismconcern.org.uk/exploitation-of-children/.

SEX TOURISM AS ONE FACTOR OF TOURISM INDUSTRY (2015) [ONLINE], Available at: http://www.academia.edu/4067691/SEX_TOURISM_AS_ONE_FACTOR_OF_TOURISM_INDUSTRY

Sex tourism, (2015). [ONLINE] [Accessed 29 April 2015]. Available at: http://www.osservatoriopedofilia.gov.it/dpo/en/turismo_sessuale.wp;jsessionid=1E5E9596040D117D8397640725FC2AEF.dpo1.

Schuster Institute Investigative Journalism (2015). [ONLINE] [Accessed 29 April 2015]. Available at: http://www.schusterinstituteinvestigations.org/#!human-trafficking-boston-to-bangkok-3/c4jy.

Who is to blame for sex tourism. Al Jazeera English, (2015). Who is to blame for sex tourism? – Al Jazeera English. [ONLINE] [Accessed 29 April 2015]. Available at: http://www.aljazeera.com/programmes/insidestory/2011/10/201110992858495767.html.

Michael, S. Elsa, J. Eike, A. (2004). Implementing Strategic Environmental Assessment (Environmental Protection in the European Union). 2 end vol 2 . Springer.

About The Term Hospitality:

Hospitality refers to the support, warmth and help tourists look forward when visiting a country they are not familiar with. It’s a process in which the host country deals with their guests with good behavior offering them all the basic facilities and also exclusive offerings. This industry in the fruitful business explains the concept of accommodation, catering service, transportation, resorts and sometimes guides as well who help the tourists explore the sight seeing places of the host country (Lankford S.V, 1994).

It explains how pleasantly the local community has accepted you and their behavior towards you because of which you feel comfortable and safe in a strange country. Hospitality is the dealings between the local people and visitors depending upon care, respect and sense of belongingness they put forward (Lankford S.V, 1994).

Different Hospitality Establishment in Discussion:

The three establishments selected to be thoroughly observed in this reports are:

Marriot International Corporation

Hilton Worldwide

Holiday Inn

These are three establishment founded in U.S and are known worldwide. The main categories this industry is classified are two that is commercial and non-commercial category. In this report we will discuss commercial category which is composed of variety of sectors that is food sector, accommodation sector, entertainment sector and transportation sector.

Structure

This assignment is divided into four different sections from section 1 to section 5. Section 1 would discuss the brief introduction about hospitality and names of the hospitality organization selected, section 2 would describe the three hospitality establishment thoroughly, section 3 would describe the service/facilities provided by them. Whereas section 4 will do the comparison between each establishment’s service provision and the conclusion recommending the better establishment among the three selected establishments.

2) THREE HOSPITALITY ESTABLISHMENTS:

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2.1) MARRIOT CORPORATION:

It was formed in 1927 and worked as a single corporation till 1992.The founder of this corporation was Mr. J. Willard Marriot and his wife, but at that time it was a small food stand named as Hot Shoppes which later expanded into different small ventures, services and finally formed a proper company in 1967 names as Marriot Incorporation. However Marriot ended its single entity in 1993 and separated into two entities

Marriot International Corporation: Hotel business of the corporation and vacation tourist resorts.

Host Marriot Corporation: changed name for Marriot Corporation.

It has a accommodation service which has more than 3000 properties in United States and in service in more than 60 countries worldwide and include 10 brands. Some of the famous brands of Marriot Incorporation include names like

Residence INN

JW Marriott Hotels and Resorts

Ritz-Carlton Hotel

Marriot Incorporation has its headquarter in United States and it has more than 140000 employees working for it all over the world. Among the world wide hospitality incorporations Marriot International is listed as top most. People with high standards such as celebrities, sportsmen, politicians and rich socialites are the common guests of Marriot Incorporation (Marriot Corporation Online)

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2.2) HOLIDAY INN:

It is one of the most prestigious and reputed service provided which offer comfort, value and pleasure to its customer proficiently. It is one of the brands of InterContinental Hotel Groups. Holiday Inn came into being in 1952 by Mr. Wilson in partnership with Mr. Wallace E. Johnson however the demise of Mr. Wallace, Wilson named the place as Holiday Inn which flourish spectacularly. The main slogan of Holiday Inn clean, friendliness and customer satisfaction was always taken care of and this is the main reason of its prosperity as it has always kept its customers satisfaction to the first priority (Holiday Inn Online).

Holiday Inn is categorized among two types that is well developed, full service hotels and comparatively less developed, full service hotels however both the types include basic facilities such as room service, swimming pools, restaurants etc. It contains more than 200,000 rooms total in 1300 hotels worldwide and has more than 90 million guests visiting annually (Hoiday Inn Online).

2.3) HILTON WORLDWIDE: C:Documents and Settingscomputer pointDesktopasgnments250px-Hilton_Worldwide_Logo.svg.png

Hilton worldwide formally known as Hilton International Corporation is owned by Blackstone Private Equity founded in Texas by Conrad Hilton in 1919. Hilton Worldwide own different brands including Hilton hotel & resorts, Embassy suites hotels and Conrad hotels. Among which Conrad hotels is a luxury hotel, Hilton hotel & resorts and embassy suites are full service hotel. It has 3000 hotels in more than 80 countries and has more than 130000 team of employees working for it worldwide in its every chain of hotels (Hilton Worldwide Online).
Vision & Mission: Hilton has a vision of spreading warmth, comfort and affection while its mission is to make itself world’s best hospitality organization and satisfying its customers with nothing lower than the best
Values: Hiltons values is hidden in its name Hospitality, Integrity, Loyalty, Teamwork, Ownership, Newness forming HILTON.
Hilton Worldwide manages it services very professionally as it pays attention to every minor detail including hotel management to supply chain management. They take care of your comfort as their own and provide you with the best and is increasing their satisfaction level annually by 10%. It is working to cater its mission statement by designing new buildings, improving operational efficiency and satisfying their customers by enhancing their experience. Moreover Hilton worldwide make sure they follow safety programs involving earth like reduction of energy consumption, waste by 20%, water consumption etc (Hilton Worldwide online).
3) Services Provided By All Three Establishments:
3.1) Services By Marriot:
Vacation Packages:

Marriot Incorporation offers various vacation packages to its customers depending on their affordability. Their packages usually include airfares and stay in their accommodation for few nights and also offer special discounts to its members. Out of all the 60 countries in which Marriot Incorporation is operating you can chose any place and can privilege yourself with the vacation packages they are offering. Marriot Incorporation is located at the worlds most preferable tourists spots having beautiful beaches, golf clubs, museums, restaurants while the accommodation service already being offered to you by Marriott making it and over all a promising trip with all the best facilities depending upon your selection (Marriot International Online).

Vacation Club Ownership:

This is an exclusive offer of Marriot which has a slogan of “Carefree, Memorable stay”. This package includes best facilities for the customer providing them with the finest option of villas comprising of one, two or three large bedrooms, fitted with all the necessary amenities like kitchen, dryer room, small projector. Some of them also include small swimming pools, fitness center, area for playing golf and kids activities center therefore, having facilities for every generation.

You have to purchase the ownership by collecting vacation club points which has three offering:

1500 points : This package is for 15500 and offers vacations in Las Vegas and Colorado with accommodation in studio apartment or 2 bedroom villas.

2500 points: You can get this offer for 25500 while the vacation destinations can be Florida and Palm Beach(Aruba) with accommodation in studio apartment or 2 bedroom villas.

3500 points: This package is for 35500 and offers vacations in Hawaii and California with accommodation in studio apartment or 3 bedroom villas.

Other exclusive Offerings By Marriot:

Dining: Marriot has the worlds top chef working for them, master in cooking all kind of cuisines for their customers like Italian food, Mexican, Chinese , Japanese, Thai Cuisine including the specialty of the particular country you have visited.

Spa: The Spa at Marriot include many varieties of Spa like stone massage, morocco bath, mil sword massage, herbal massage making your trip relaxing by all these offerings.

Pools, Exercise & Recreation: It has fitness centers which will not let you get idle by your trip, as it will provide you with best fitness facilities along with swimming pools (Marriot International Online).

Wedding & Honeymoon At Marriot:

Marriot has certified experts and wedding planner to arrange your wedding in a dream wedding that is best to the last point. From decoration to food to music selection everything will be perfect at Marriot with the help of specialist working for you according to the customized wedding packages you have opt for. Later you can chose a honeymoon package as well making your wedding complete with Chocolate coated strawberries and banquet in bed ( Marriot International Online).

3.2) Services By Holiday Inn:
Family Vacation

Holiday Inn states to understand the need of spending time together by families and therefore there major offering are beneficial for families including special discount packages for kids. Kids under 19 years of age can share the room with their parents and stays for free while those who are under 12 can even enjoy free meals anytime at restaurant in Holiday Inn while their menu is composed of fruits, healthy and grilled items that is full of proteins so that you does not have to worry about their health and can easily plan and bring your family for enjoying vacations at Holiday Inn (Holiday Inn Online).

Reward Nights

A reward night in Holiday Inn is based on point systems. You have to collect points by purchasing some amount and your package will be entertained accordingly. There are 3 kinds of reward packages 10000 points, 15000 points and 25000 points. However the major drawback in this package is this that this deal does not offer you food or any other extra facilities, the charges are jut for accommodation and other basic room services while rest you have to pay again from your pocket. Despite of this fact reward rooms are over booked and reservation for it has to be made beforehand in order to get a room (Holiday Inn Online).

Senior Discounts

On of the commendable facilities provided by Holiday Inn is their senior package. This package is for seniors of age 62 or above you can enjoy your retirement by spending splendid time at Holiday Inn in more than 100 countries. This discount offer is applied to even rooms which are not up for discounts (Holiday Inn Online).

Other Exclusive Facilities By Holiday Inn:

Internet Service: People out on vacations wants to stay connected with their loved ones and also likes to update them with latest photographs and details about their trip so here holiday inn is providing them with internet facilities in rooms which help the people stay connected. Moreover its also good for people staying for business.

Fitness Centers and Swimming Pools: These facilities allows you to enjoy yourself in the striking blue water forgetting all your worries and diving while also taking caring of your fitness away from your home and regular gym.

Basic Facilities leads to comfort: These basic comforts comprises of perfect beds, pillows and shower for you to sleep well and starts a fresh day.

3.3) Services By Hilton Worldwide:
Packages:

Hilton has wide range of packages at your service

Advance purchase packages: This packages offers you 20% discount if you have registers in advance

Indulge package: This package has a special validity date and if you register within that date you will be able to benefited with special services excluding the charges of package.

Bed and breakfast package: As the name suggests this package offers you a breakfast for two excluding the accommodation charges.

Romance Package: Specially designed for the couples this package make sure that the couple is left undisturbed with complimentary beverages, breakfast served in room with special services like spa, swimming pools etc (Hilton Worldwide Online).

Other Exclusive Packages & Offerings:

Apart from the above mentioned packages Hilton Worldwide has other exclusive packages as wells like Romantic journey, Funny bone Package, Bed and Brunch, Stay and dine and give her the sun, moon and stars which has different kinds of offering for their consumers.

SPA: Hilton offers an exclusive range of Spa. It does not depend that whether you are at Hilton of Florida or Hawaii, all the chains of Hilton hotel has a spa located in its building promising you a relaxing experience (Hilton Worldwide Online).

Wedding At Hilton:

Hilton promises to meet your high expectations that you have thought about your wedding day. They have wedding planners which are expert in their work and their chefs will make the tongues of your guests tempt with delicious cuisines. You customize everything about your wedding in your own way and let the experts represent everything you have up till now fantasized about your wedding, from flower decoration to choice of music everything will be planned considering your wish and happiness (Hilton Worldwide Online).

4) Comparison:

By going through above collected data the following comparison can be concluded that each establishment organization is working hard and trying to stay ahead of each other by providing innovative services and packages to attract its customers.

Marriot and Hilton both offers Wedding Ceremonies package while Holiday Inn does not making it lack on this part. On the other hand Holiday Inn and Marriot both offer points system which is not the present in Hilton. Holiday Inn has this exclusive senior package offer along with special kids discounts making it a good and attractive selection for its customer while Hilton will easy win the hearts by its different, exclusive and unique kinds of packages. Both holiday Inn and Marriot has other activities offering like spa, fitness center helping it to make it at the top again therefore it was correct to state that these three establishments are updating themselves with nothing less than the best in order to stay and make its place in this competitive market.

TARGET MARKET:

The target market of all these three establishments is upper class economy on which they are focusing immensely by providing them with all the luxuries they wish for and charging them for every facility they offer. However at some reference you will also come to notice that target market of these establishments are considered to be middle class economy which is absolutely wrong or miss understood because the price per package offered by all three establishments are beyond the affordability of any middle class family. These establishments are design for upper class or business men and are providing them with best service any hospitality organization can offer.

CONCLUSION:

From the data mentioned above and by discussing about the three hospitality establishment we can conclude that all three of them are providing their customers with the best service, brining new and innovative ideas in order to keep themselves ahead in hospitality industry. There packages are attractive and are economical for upper class however the one with the best offering in my opinion would be Marriot Corporation as it has all the facilities that the other two establishments have as well as other exclusive offerings as well making it superior than the other two. Second in the list would by Holiday Inn while the third position will be to Hilton among the three. However the basic facilities provided by all the three establishments are more or less same and the other exclusive offering on which we are ranking them, depends upon your affordability.

REFRENCES:

Hilton Worldwide online (http://www1.hilton.com/en_US/hi/index.do)

Holiday Inn Online (http://www.holidayinn.com/hotels/us/en/reservation)

Lankford, S. V. (1994). “Attitudes and perceptions toward hospitality and rural regional development. Journal of Travel Research, 31(3), 35-43

Marriot Corporation Online (http://www.marriott.com/default.mi)

Table of Contents

I. Executive Summary ……………………………………………………………..

2

II. Introduction ………………………………………………………………………..

3

III. Analyses………………………………………………………………….………

4

IV. Overall Assessment…………………………………………………………….

8

V. Conclusion……………………………………..……………………..……….….

9

VI. References……….…..…..…………………..…………………………….……

10

VII. Appendix………………………………………………………………….……..

11

Executive Summary

Purpose: The purpose of this report is to critically analyse an establishment’s different servicescape dimensions and to provide an overall assessment of its servicescape.

Analyses: The report aims to find out the different servicescape being utilised by the establishment which makes them successful and what’s need to change. The information in this report is collected through literature reviews mostly journal articles and an actual participation in each experience.

Overall Assessment: Discussion will provide a value insight and practical knowledge regarding the topic and will provide more qualitative understanding of the findings to help future researchers improve upon the present study.

Conclusion: In conclusion

The servicescape plays a major part in shaping customers’ perception of the firm’s image and positioning. A service quality is often difficult to assess as customers frequently use the servicescape as an important quality signal. A well designed servicescape makes customers feel good and boosts their satisfaction and allows the firm to influence their behaviour on enhancing the productivity of the service operation. Numerous tactical decisions must be made when designing the organisation’s environment. Individuals based perceptions of the organisation’s services on sensory cues that exist in the organisation’s environment. Specific tactical decisions must be made about the creation and sometimes the avoidance of scent appeals, sight appeals, sound appeals, touch appeals and taste appeals. The design of management of the organisation’s sensory cues are critical to its long term success.

The servicescape must be designed with consideration of the impact on each of the five (5) senses.

The Saints Brasserie is located at Edensor Road, serving lunches and dinner, Saints offers Australian and French cuisine with spectacular views. Their staffs provide guests with unsurpassed service, sumptuously prepared dishes served in a warm and friendly atmosphere. It can be a favourite destination spot and a great place to enjoy delightful meals, share a cocktail or glass of wine with friends. Their extensive wine cellar offers a wide selection of vintages and elegant food pairing possibilities. With inside seating, guests can enjoy expertly prepared poultry, fresh seafood, and meats all cook to order. For dessert, enjoy fresh fruits, cappuccino, simple chocolate and deep dark espresso or relax under the stars.

Introduction

The term “brasserie” is a French word meaning a French restaurant serving singled dishes with a relaxed seating. This gives Saints a French appeal. Saints Brasserie has a simple servicescape. The restaurant is designed to target the average income class and anyone who is looking for great food at affordable prices.

Physical Dimension

A.1 Signs, symbols & artifacts

As soon as patrons arrive at St. John’s RSL, they are given immediate directions on where to go. The plentiful amount of signs throughout the establishment show where things are located and how to get around.

One of the highlights at Saints is the use of collaterals highlighting the daily specials hanging high up on the wall outside of the entrance for everyone to clearly see. This will gain the attention of patrons and track those who are interested with the special being offered.

Patrons also need to first find a table before ordering. However, the signage is so small and unnoticeable which creates confusion and disorganisation to both the cashier and customers especially during their peak hours, which is from 11PM – 1PM and 5PM-8PM.

There is a signage that says “Order here” which clearly shows where to line up for dining in or taking out. Customers can only make one line, but there are two cash counters that speed up the ordering process. Guests are assisted by friendly staffs who have knowledge both the menu and food.

Also, outside the entrance is the monitor with the entire menu of the restaurant with every item Saints has to offer. Though occasional, it is poorly chosen as it is in the middle of the line and those who choose to see the menu without waiting in line are not able to as there is no crowding allowed in that hall.

Moreover, the menu of Saints is detailed with few visual aids and variety. Included in the menu is their monthly specials. The menu is not cluttered so customers can easily find the desired items.

Here is the sample of what Saints has to offer for dinks and food. Both are presented well and taste great.

A.2. Space/ Function

Saints does an excellent job of transforming the BINGO area into seating and therefore utilises it for more than one purpose. This is made available when the area is not being used for gaming. However, Saints has no separate room for special events and larger party.

There are three different types of atmospheres and tables within the restaurant. There is the regular seating, the boost banquet seating which is located along the windows of the bar near the back as well as the bar seating which are raised tables and taller chairs.

In every meal, patrons can get a free drink which you have to claim at the RSL’s main bar. The bar is central to seating which is beneficial as it allows customers to have easy access to the bar without going all the way into the restaurant. It is accessible right by the door so if one wanted to just attend the bar then they could do so. However, the restaurant does not offer seating at the bar. That is why instead of the usual bar set-up where TVs are located just above the bar, the television at Saints are located on the right side of the main bar where customers can wait for their orders and drinks. The televisions in Saints are often displaying sports channels, which is very indicative of the Sports bar appeal the restaurant has. Different TVs often shows different sports so customers can choose what is most important to them to watch and focus on that.

A.3 Ambient Conditions

During the day, there is a non- direct natural light from the windows while the general view of the interior lights provide a warm bright atmosphere. The entire restaurant is very clean with modern styling. There is a lot of available space and is open in concept. For the dinner atmosphere, the lighting is reduced to a more amber special area lighting approach creating a more comfortable atmosphere for customers can feel that they can stay longer. The restaurant music and noise stays at reasonable levels allowing for table conversations.

The creative and vibrant lighting at the bar changes further emphasising the nightlife mode. It is suggestive of a fun, upbeat nightclub and a place to let loose and grab a drink with friends.

After dinner is over, the lights are reduced further for the bar crowd. Lighting is changed to spotlighting approach for areas that need vision. Reducing the lighting makes people feel less self-conscious and more inclined to dance and drink. The music and people of the night time bar are all of similar age as expected at a RSL.

B. Social Dimension

Employees at Saints know the responsibilities and are delegated to specific tasks such as clearing and serving food orders.

The main bar is spacious enough where bartenders can easily move behind the bar to efficiently make drinks and take orders.

However, Saints has its downfalls and unfortunately there are unnoticeable faults that hindered my experience during atleast one of my visits. The first being, keeping the cleaning supplies out of the eyes of the guests especially not putting the dirty rags right beside the clean cutlery.

The initial greeting and wait times can take very long and guests never know how long they actually have to wait. Moreover, food orders also take too long to come out. We have waited for more than an hour before it came out.

Socially – symbolic Dimension

D. Natural Dimension

Overall Assessment

First impressions are key to a positive experience.

Luckily, a solution to each negative influence to the servicescape can easily be made. Overall, Saints has transformed into a bar with a true identity. One that is connected and integrated with its customers with modern sports bar decor, functional layout with various seating options and a conveniently located bar among other great features. Staffs are friendly, the aromas are enticing and food are delicious. Knowing this, Saints has a solid foundation but does need some direction to really make it a place to be.

Introduction to Services and Facilities in the hotel

Nowadays, people choose to stay in the hotel not only for the accommodations, some of the tourists would choose a particular hotel because of its unique services given or special facilities that other hotel might not have or might not provide as good services compared to other competitor hotel. Example of facilities in most hotels that are five stars and above are swimming pool, outdoor games pool, restaurants, lounges, bars, golf clubs, spa and Jacuzzi, parking garage, conference rooms , banquet rooms. TV lobbies, snooker tables, special manicure services, porter services, personal convention centre and etc.

Services and Facilities in a Hotel

I am going to elaborate and illustrate the services and facilities in a large hotel named Hotel De Paris, Monte Carlo. Hotel De Paris is a luxury hotel that is located in Monaco which is located in a sovereign city on the French Riviera in Western Europe, France. According to Hayes, D. and Ninemeier, J. (2007), 1st ed, Hotel operations management, Upper Saddle River, N.J.: Pearson/Prentice Hall.

Accommodations – Rooms

Starting from the accommodations of this amazing luxury hotel, there are a total of 182 rooms in this hotel, this 182 rooms includes the superior room which is facing the courtyard view. These superior rooms are the perfect examples of the “Belle Epoque Era”. “Belle Epoque Era it’s in French language and it means “Beautiful Era” in English. It was a period of time in French and Belgian which world war one just ended in the beginning of the year 1914. The size of these superior rooms is from 371 to 571 sq. and it is located in the 2^nd and 3^rd floor of the hotel. The rack rates of this superior rooms cost around 579 Pounds which is 2880 MYR for 1 night stay. Next, is the Exclusive room which is facing city view, all the furniture and decorations is made from white leaded wood and mahogany. The toilets is specially made from pale marble from the 19^th century to give guests a warm and welcoming feeling upon arrival. Rooms from this exclusive are from 377 to 538 sq. and is located on the 2^nd, 3rd and 4^th floor of Hotel De Paris. Rates of rooms are 657 pounds and after converting is 3447 MYR for one night stay. Last but not least of the rooms and that is the Exclusive Room that is facing casino view, all the facilities and decorations are most likely same as the other exclusive room but the only difference is that this room is facing the casino view. ( Hotel de Paris, (2014). Practical Details. [online] Available at: http://www.hoteldeparismontecarlo.com/practical-information/practical-information/ [Accessed 14 Oct. 2014].)

Junior Suites

Besides the normal exclusive and deluxe rooms, there are a few types of junior suites in Hotel De Paris. There is inner courtyard view which is fully furnished with red velvet carpets to give a feeling of total relaxation to the guests or conduct important meetings. The lounges in these junior suites are well equipped with perfect office tools with exquisite touch of elegance. The rates for this junior suites cost 846 Pounds which is 4422 MYR. Next up it’s the country view junior suite that is specially made for the night view lovers. (Hotel de Paris, (2014). Junior Suite – Inner Courtyard View. [online] Available at: http://www.hoteldeparismontecarlo.com/luxury-rooms-suites/junior-suite/junior-suite-courtyard/ [Accessed 14 Oct. 2014].)

Diamond Suites

The most expensive room in this hotel is the diamond suites. The diamond suites resemble the sense of luxury in Hotel De Paris. The diamond suite which is named by Charles Garnier normally is used by people who are going to have a wedding or any special family reunions. The diamond suites are located at the 2^nd floor of Hotel De Paris and it is around 1890 sq. It has two big bedrooms, with an enormous lounge with a well-established dining area. All the toilets in this suite is made by light grey and white mosaic marbles tiles. The rates of this diamond suite is simply stunning a night in this diamond suite cost around 7400 pounds with is around 38687K MYR.

Restaurant and Bars

In Monte Carlo, the most famous restaurant bar is named Le Louis XV- Alain Declasse. Le Louis XV is especially dedicated to the taste of exquisite and fantasy. It is open around 25 years ago in the Monte Carlo. The unique setting of this restaurant is focusing mainly on elegant cuisine with excellent wine list and outstanding menus. According Alain Declasse(2014),to the chef of Le Louis XV that the philosophy of this restaurant is to fill this restaurant with reinterpreting that what is essential, the food they serve can be simple and easy to understand to every guests but it has it’s subtle of balance on the tradition,culture,modernity of the restaurant. There are three main menus in Le Louis XV, The seasonal club lunch which cost about 145 pounds approximately 785MYR, evening menu “Les Jardins de Provence” which is 230 pounds approximately 1.2k MYR,Menu “Pour les Gourmets which does not include drinks cost around 310 Pounds approximately to 1.6k MYR. There are mainly three types of cuisine served in Le Louis XV and that is Gastronomic cuisine. Gastronomic is a study of food it can also mean someone who unites the theories and practices on the study of gastronomic. Le Louis XV also serves the French Riviera cuisine. French Riviera cuisine means a nice view of beach amazing cultural amenities or with fabulous sight-seeing views that is the definition of French Riviera. All the food and cuisine is inspired by the French and Italian Riviera’s with has been nominated in the Michelin Guide with three stars. Michelin Guide is one of the series guide books that is published in France by the publisher named Michelin for more than 100 years for now. (According to Services Management [Including Skill Development]. (2014). 1st ed. [ebook] Mumbai, IND: Himalaya Publishing House. Available at: http://library.olympia.edu.my:2051/lib/olympia/docDetail.action?docID=10415572&p00=hotel+management [Accessed 14 Oct. 2014]) Le Louis XV is closed everyday but only open on Tuesday and Wednesday. If you want to enter this restaurant you would have to wear a jacket or a tie, it is strictly required for the guest; this is to ensure that the quality of guests is up to the restaurant’s standard.

Grills

Located at the 8^th floor in the Hotel Le Paris, this grill is named by Le Grill. Le Grill is one of the best grills that offer a reinterpretation of the famous Mediterranean gourmet dishes .During the summer season, Le Grill has its grill side that will reveal the beautiful sky and it is one of the most beautiful views on the French Riviera. The type of cuisines that Le Grill offers is mainly focused on Mediterranean-style gourmet cuisine. The menu has a range of different types which the set lunch is around 75 pounds, and for the dinner or a-la-carte is around 130-150 pounds. Special functions and birthday parties can be held in the Le Grill’s Churchill lounge, cocktails and private parties can also can held there too. Outside of the Le Grill is the open-air terrace which has a good view of the sky or sunset when u visit it at the right hour. The lunch hour is normally from 12pm to 2pm and dinner starts from 8pm-11pm.

Banquet Rooms

Banquet room is purposely for the use of when you are going to hold a meeting or private birthday parties or even personal meetings. The banquet room in Hotel De Paris is named La Salle Empire and terrace, it is listed as a historical sites since the end of 19^th century, it symbolize the history that is left during the 19^th century back then. La Salle Empire is a magnificent place to hold banqueting services. Normally for banquet orders, there are two different types of menu one of them is in season and another one is summer menu.

Live Band

In a large hotel, there is normally live band performance maybe on the Saturday night or Sunday night according to the hotel secludes. The purpose of having live band is to entertain the guests when they have their free time or maybe they can be at the lobby to listen to the live band at night while drinking wine or chatting in the lounges. The live band in Hotel De Paris is named Le Bar American. Le Bar American is fully furnished by the low key ambiance of the beautiful wood. The chairs they used in the bar is all 100% leather armchairs, with all red light bulbs soft lighting, all the windows are facing to the sea view. This fabulous live band bar will play all Doctor’s Gab acoustic piano music to let the guests feel relax and homey. All the snacks will be served from 12 noon to 6.30 in the evening, following by a break; they will be back to business at 10pm at night to 1am in the midnight. Live jazz is the main theme in this beautiful bar.

Private Beach

In our country there might not be this facilities in any of the hotel in Malaysia, but in overseas, there are a few luxury hotel that offers private beaches in their hotel. Private beaches are an absolute delight for guests that like to enjoy the sunlight or like to swim. The setting in this awesome private beach is based on chic striped canvas beach cabins. All the cabins in this hotel are charged in the hotel accommodation and it ensure the entire guest to reach their max level of satisfactions and enjoyment. Guests can enjoy the sun while refined cuisine will be sent to your personal tent by the private beach. The organic pizzas and gourmet wood-oven pizzas is the must try food in the private beach side bar. On the beach, there are around 200 tents surrounding the beach, 120 beach cabins and almost 30 solariums available for rent, but the charges is not included in the accommodations fees.

Sports and Leisure –

Swimming Pool

The swimming pool of Le Hotel Paris has a 25 by 13 meters swimming pool filled with 29 Celsius seawater taken from its depth which is around 37 meters and 400 meters out. Only customers that are staying in Hotel De Paris Monte Carlo and the Hotel Hermitage Monte-Carlo can access to the Thermes Marins Monte-Carlo only. Swimming pool is normally open from 7am to 9pm.

Fitness

Nowadays people are very health conscious; fitness gym is one of the essential needs of running a hotel. This 5 star gym fitness is facing to the sea, it consists of thread mill, dumbbells, bike machine and so on. There are dozens of coaches everyday there to help guests with what is their routine and what should they do to keep fit. The personal coaches will give advice on weight training, swimming, water aerobics, pool biking, lipo training and so on. They also supervise guests on their heart rates for preventing them to over exercise themselves. There are also special traditional Tai chi classes in Hotel De Paris and also Five Element Tai Chi for the guests who want to experience the Chinese traditional Tai Chi.

Tennis and Squash

Tennis is also a requirement for a large hotel establishment because most of the business peoples like to talk about business while playing outdoor activities. In the Hotel De Paris, there are around 21 clay courts that are overlooking the sea of the Monte Carlo Beach. In this hotel, there are tournaments against club tennis schools and completions junior versus seniors and all soft of activities.

Golf Coast

Gold coast is a place of relaxation for the guests where they can enjoy the many services and the facilities founded in regular Golf Courses. Golf Courses provide many great servicing such as Golf Cart services, where they can enjoy the relaxing ride while enjoying the scenery at the Golf Course. Golf court provides services of golfing with the assistance of personnel to aid with the golfing experience.

Conclusion and Recommendations

Despite the accommodations of the hotel, the facilities in the hotel are the point attraction to attract people to put up a night in the hotel. According to Larkin, E. (2009). How to run a great hotel. 1st ed. Oxford: How To Books. This type of facilities will attract more guests and tourist to stay in the large hotel. With good facilities and services it will gain reputation for the hotel and to keep the guests and tourist to stay with pleasure and will visit us again next time during vacations or business trips. As a conclusion, the Relationship between customer satisfaction and hotel attributes is being focused on the service or facilities, the better the facilities and services the better impact of the preference of someone in choosing a hotel because based on Atkinson (1988); Barsky and Labagh (1992); Choi and Chu (2001) studies, it has been found that the most important attributes a customer seeks are staff service quality and friendliness.

Service recovery has taken over the whole world by storm. People hear the word service recovery and service failure over and over again. In the globalized world as people know it, the world seems to be getting smaller and yet it is expanding, the world is developing. Information can travel fast and easily, boundaries are being reduced gradually. This not only happen in the world generally but also in the business world specifically. By looking at this arising phenomenon, service recovery of companies in the management of business is getting more and more important for airline companies who are trying to explore the global market. The airline companies have to come up with the right strategy for different market in different countries. Without a good strategy in service recovery and the way how to decide complaints and resolved problems which called service failure, the airline companies will falter in the international market. While on the other hand, if an airline company has a good service recovery and can solved service failure, it will achieve success.

The airlines industry involves a high degree of interaction between employees and consumers and so provides many opportunities for service failures to occur. The quality of service encounters is frequently determined by the action of front-line staff, whose experience and commitment may be limited and whose attitude may vary from one encounter to another. The inseparability of production and consumption means that failures occur at the point of consumption, providing little scope for correction without inconveniencing the passengers. However, failures, errors, mistakes, and complaints can frequently happen in the process of service delivery. A poor service or a service failure will result in dissatisfaction and this in turn will prompt a variety of responses which may include complaining, negative word-of-mouth and decisions not to repurchase. If it is impossible to avoid service failures and dissatisfaction, then it becomes increasingly important for organizations to understand how to manage such occurrences and minimize their adverse effects. There is a growing body of evidence to suggest that effective service recovery will generate a range of positive passengers’ responses with complaint handling being seen as a key element in service recovery. This research paper an overview of existing research relating to service failure, service recovery in airlines industry.

The Emirates Airlines was founded in 1985, but it didn’t start to show up on Americans’ radar until 2005, when they began service to New York’s JFK. They are the fastest-growing airline in the world, and today Emirates has a fleet of 138 aircraft and serves over 100 destinations in 61 countries across six continents. Their North American gateways are: New York, Tokyo, Kuala Lumpur and Seoul. Their hub is Dubai (DXB), which is now the 15th busiest airport in the world by passenger traffic (40.9 million passengers in 2009).

Literature review

Service recovery and service failure in air line industry

The service recovery and the service failure may directly influence each other. Generally, the service recovery in airline industry is concerned with the process of addressing service failures, which can be happened in that time when is the flight on the plane or before flight; more specifically, service recovery can be thought of as being concerned with the productive handling of complaints and includes all actions taken by a service provider in order to try to resolve the problem a passenger has with their organization. It is generally recognized that complaints are essential to institute a recovery effort. Without complaints, a firm may be unaware that problems exist and unable to appease unhappy passengers.

Ennew and Schoefer (2006) stated that basic of service recovery strategy, which the model is used in airline industry as well, can be classified as:

– Apology: A first person apology rather than a corporate apology, and one which also acknowledges that a failure has occurred.

– Urgent reinstatement: Speed of action coupled with a ‘gallant attempt’ to put things right even if it is not possible to correct the situation.

– Empathy: A sincere expression of feeling for the passenger’s plight.

– Symbolic atonement: A form of compensation that might include not charging for the service or offering future services free or discounted.

– Follow-up: An after-recovery call to ascertain that the consumer is satisfied with the recovery process.

That service recovery also includes situations where the passenger has not expressed a complaint but the provider has recognized the failure and initiated a recovery procedure. Service recovery in airline industry refers to steps that are intended to identify and correct service failure. According Kuenzel, S and Katsaris, N, (2009), the necessity for service recovery is brought about by service failure. Service failure is defined as those situations when the service fails to live up to the passenger’s expectations or any service-related mishaps or problems that occur during a consumer’s experience of the firm. Service failure situations are especially inevitable in the airline industry due to the ‘people factor’ nature of services, the high level of contact between employees and passengers due to the increasingly high demand of today’s passengers.

As one of the service industries, the airlines industry involves a high degree of personal interaction between staff, which are working in air company and passengers; miscommunication can lead to service failure. Responding effectively to consumer complaints can have a significant impact on satisfaction; repurchase intentions and the spread of word-of-mouth. However, in order to understand how best to deal with service failure and how best to handle complaints, it is essential to understand the way in which consumers react to service failure and how they respond to different approaches to service recovery. The service recovery in Emirates Airline Company, which is defined as all those actions taken by a service provider in order to try to resolve the problem that caused the service failure, aims not only to resolve the problems in order to minimize negative outcomes and retain passengers who are prefer this air company, but also to “seek out and deal with service failures”. After all, a good recovery, as well as reducing passengers’ negative emotions, also tries to increase the positive ones. While service recovery’s effectiveness depends on several parameters, excellent recovery tactics can leave those passengers who experienced a service failure followed by successful service recovery with greater satisfaction than those who did not experience a service failure incident at all.

However service recovery’s major importance is owed to the fact that it affects passenger satisfaction and, as a consequence, passenger loyalty. Furthermore, a number of findings have shown that satisfaction with the service recovery directly affects a passenger’s intention to repurchase and to recommend the service provider. These relationships constitute the vital reasons why providers pay so much attention to service recovery because in financial terms loyal passengers can increase profits. (Kuenzel, S and Katsaris, N, 2009). The Emirates Airline Company believes that satisfaction plays a key role in the service industry and especially in the airline industry. As the airline industry has evolved, Emirates Airline has made great strides to define and understand satisfaction from the consumer’s perspective. The emphasis to comprehend what truly creates satisfied passengers has lead to an ever increasing body of literature surrounding satisfaction, how service providers create satisfied passengers and the effects that satisfaction has on businesses today. Competitive environment analysis is the factors which influence the air company’s competitiveness in the market. It enables the airline company to understand its current competitors.

The Emirates Airline, as air company is defined that the most important part in the value of service recovery and failure are consisted of professional staff which can be opened in a time for solving problems with passengers, improving passenger satisfaction, minimizing negatives emotions and making loyalty decisions for complaints.

Methodology

Service recovery and service failure in Emirates Airline Company

For the past several years, many air line companies executives have ascribed to the widely circulated notion that a strong problem-recovery process is the key to enhancing passenger loyalty. Some claim to possess statistics that show a higher intent to return among passengers who experienced a problem followed by excellent resolution, compared to passengers who had a problem-free flight. The Emirates Airline has outperformed their rivals British Airways, Korean Airline and Delta Airline in a service quality report. This airline company is analyses the passenger experience from flight booking all the way through to check-in, baggage drop, boarding, plane conditions, in flight services such as food and beverage, entertainment and shopping, right through to disembarkation and final baggage claim. The Emirates Airline known that the service recovery builds passenger loyalty that brings passenger back from the brink of defection is putting a smile on a passenger’s face. A poor service recovery in structure of organization will result in dissatisfaction and this in turn will prompt a variety of responses which may include complaints, negative word-of-mouth and decisions not to repurchase. The effective service recovery will generate a range of positive passenger responses with complaint handling being seen as a key element in service recovery.

Analyzing the structure inside of Emirates Airline as a large air company in the world and which model of organizations they used, I found that this company is provided and followed by service recovery strategies as an important element in service process. The service recovery strategies are consisted of eight components:

1. Act quickly (usually use as an apology)

2. Provide adequate explanations

3. Treat passengers fairly

4. Cultivate relationships with passengers

5. Learn from recovery experience

6. Learn from lost passengers as passengers

7. Fail-safe the service

8. Track complaints

According this type of service recovery strategies, which was chosen by the Emirates Airline Company, I can say that this air company is tried to involves and to improve new methods of psychological behaviours in organizational process between employee and passenger, because it is interested in passenger’s positive recommendations about their air lines to family and friends are an important, cost-effective method of promotion which are suggested to make profit. The goals of service recovery strategies are consisted how to satisfy the passenger in during that time when the flight is on the board, identifies and corrects the problems in a time without negative effects and improves professional air staff to be helpful and friendly with passengers.

The Emirates Airline company, as the biggest air company in the world, is recognized the service recovery as a significant determinant of passenger satisfaction and loyalty. The most common and frequently what they used in service recovery are:

1. apology
2. assistance
3. compensation

The apology can be in two forms: verbal and writing. For example, in the Emirates Airline, I found the tactical way which the air staff used in the during flight’s time. If some kind of the drinks or some kind of the meals are finished in the during flight, and that time one of the passengers needs persistently, so air staff solve the problem by nicely and kindly form in offering to choose another drinks and meals which they have in menu. The writing form is used when the situation or problems are decided by official form from Emirates Airline management.

The assistance is used in finding the luggage by air staff which are in the airports (local or international terminals). Emirates Airline is suggested to find luggage by modern technology as operational efficiency between operations and general system of technical supporting inside the airport where were going lost luggage.

The compensation is frequent form of the service recovery, which can be financial form, it’s meant that the Emirates Airline is able to pay the compensation from the negative effects in during the flight’s time if the occurrences were happened without passenger’s fault. Another form of compensations are vouchers, free upgrades to gifts or loyalty miles, can also be defined against a complaint category and stored for each complaint. Vouchers can be auto-generated and points can be auto-credited into the member’s account. Tier upgrades can be provided as compensation, and tier downgrades or expiry of points can also be restricted for members.

Why are the air staff so qualified and professional in the service recovery? The Emirates Airline Company invests much more time and money in training each new employee than many of its competitors. There are 18,179 employees work in the Emirates Airline who are qualify after 3 months of 13 indoctrination will receive 450 hours of training in their first year and 160 hours of training every year after. Training programs include methods of the communication with passengers in the board during the flights, how they can make service without negative effects just use the smile or literate speech which are based on the psychological principles. The motivation employees, train them, care about them, and make winners of them are successful steps in the service recovery. The Emirates Airline knows that if they treat their employees correctly, they will treat the passenger’s right. And if the passengers are treated right, they will come back.

Effective service recovery is not just an after-thought but is rather an intentionally designed part of service delivery system that has been planned into the service design in support of the service recovery strategies. The Emirates Airline believes that the service recovery is one of the most important key factors differentiating business performance and success between competitors.

Understanding the system of the service recovery in the Emirates Airline Company, how they can solve and decide situations with passengers before the flight, during the flight’s time, and after the flight without negative effects, I was analysing that this air company however has failures, mistakes and complaints which could be happened in the process of service delivery. The service failure occurs when the passengers do not get basic services from air company. The passengers consider centre of the service failure because they have been promised or contracted, either directly or implied and are basic to the whole service experience, for example, in the Emirates Airline, this is reservations air tickets which could be booked in official website or in the official agency. According statistical report which was established by the Emirates Airline, I could see which kind of service failures and complaints were happened in during flighting process, which are widespread and how this air company tried to minimized effects.

The service failures, which were founded in the Emirates Airline Company:

1. Ethical problems (conflict of interests)

2. Personnel failures

3. Safety issues

4. Baggage handling

5. Ticketing matter

6. Doing work too slowly in-flight

7. Responses to service failure

8. Employee responses to customer needs and requests

The most serious failure in the Emirates Airline was slow the service in-flight, the drink and the meal brought lately, the air staff were unhelpful and unfriendly because on the board were about 175 passengers who were flied on the long destinations. Other frequently mentioned problems related to agent operations which were provided booking and reservation air tickets. After according that statistic report, the Emirates Airline was developed absolutely new model of the service recovery strategies which were helped to solve and minimized the service failures in the organizational process and satisfied the passengers in-flight and on the ground. This air company was organized Service Recovery Management, that the functions are detection, analyzing and solving service failure without negative effects between organization and passengers.

Finding

aˆ? It is very difficult to exceed passengers’ expectations in service recovery. The Emirates Airline typically exceed passengers’ expectations in problem situations in only one of 10 problem occurrences. This air company are at least four times more likely to fail to satisfy a passenger in recovery efforts than they are to exceed expectations.

aˆ? When the Emirates Airline resolves problems in a method that meets, but does not exceed expectations, satisfaction scores are significantly lower than when an experience is problem-free.

aˆ? The only time satisfaction and loyalty are improved after a problem is when service has been outstanding throughout the entire experience. Outstanding problem resolution is seen as a part of a larger service culture within the air company, not as a stand-alone reaction.

aˆ? Recovery efforts arguably represent a much greater cost compared to the type of service recovery and service failure.

aˆ? Good training provides air staff with the skills and confidence to perform well. Giving them the opportunity to practice their customer service skills in a safe environment will help them to apply those skills in the sales environment.

aˆ? Good service in the Emirates Airline is tightly linked to good sales. If service standards are poor, sales performance will inevitably be poor as well.

aˆ? Satisfied, loyal air staff will take proper care of their passengers, resulting in high levels of passengers satisfaction and repeated successful sales.

aˆ? On the service recovery in Emirates Airline Company is influenced the elements as the air company will be successful in the organizational process:

Environment
Qualification staff
Performance
Motivation
Conclusion

This research paper has reported the main reasons of service failure within international airline company which is the Emirates Airline Company. The findings shown that service recovery excellence can only be achieved through passenger satisfaction, professional staff and loyalty as a result of senior management commitment. The paper has determined the air company’s process of service recovery with respect to the main causes of service failure, in its goal to achieving passenger satisfaction. There are two component consisted service recovery. The first one is service failure and the second factor is satisfaction. In this structural model, I also mentioned about two predictors which can directly influence on service recovery. Qualification employees and loyalty directly impact on service recovery, that I explained earlier the way that how they can increasing high-level, be perfect in relationships with passengers of the Emirates Airline company in details.

This research paper is confirmed previous assertions that passenger’s satisfaction and loyalty require high levels of management commitment, as well as frequent communication and indicated that for service recovery to be effective, it must be external (to the passengers) as well as internal (to the air company) so that internal improvement can be ensured. The Emirates Airline has to conduct surveys from time to time to get the uttermost feedback from employees and first time passengers as well. The Emirates Airline has to improve passenger’s satisfaction without negative effects after covering failure, tries to provider training programs for air staff, because the service recovery is so important for reputation air company. They should be more focus on the solving problems between air company and passengers by professional way because one of the weaknesses that a bid company faces is the decentralized organizational structure. So controlling the big company such as the Emirates Airline would be very difficult without having the centralized and good structure in the organization. For the huge air companies such as the Emirates Airline that is geographically apart, using the virtual organization in order to control the all aspect of the company is essential. In conclusion, for each air company, especially for large air companies, the service recovery is one the most important part in organization that can make the air company more successful because I can reach all the important success key such as passenger’s satisfaction and encourages of passengers and employees, better behavior, better communication and highest service quality through the air company. Once a air company decides how it wants its members to behave, what attitudes it wants to encourage, and what it wants its members to accomplish, it can then design its structure and encourage the development of the cultural values and norm to obtain these desired attitudes, behaviors, and goals.

1.0. Background of the story

The definition of service quality means customer perception on how well does a service can meets or exceeds the expectation (Czepiel 1990). As for the words “public transport” itself, it is being describes as a vehicle that caters the passenger to reach a destination and every usage of this particular public transportation will be charge with a minimum or a special fares to each passenger at the same times. In transport, there are a special word being known as mobility it is usually defined as the ability to move anything for example like people, goods and other living thing or non living thing from one place to another place and it is measured by the number of trips made by a person each day (Vasconcellos, 2001) whereas ‘personal mobility’ refers to the use of personal transport; it can be a car or a motorcycle or others. The term of “public” is widely used; this term is not considered as secret or private, the term itself open to or concerning the people as a whole, sharing their very own common interest with everybody.

Based on Md Aftabuzzaman, Graham Currie, Majid Sarvi, the main urban public transport problem is the road traffic congestion and this is one of the reason why people do not switch to using public transport (Cervero 1991; Downs 1992). By having public transport system, efficient public transport (PT) can be regard as one of the potential solutions that can solve the problem of urban road traffic congestion (Hyman and Mayhew 2002,; Pucher et al. 2007; Vuchic 1999. The main public transport such as buses, taxis, trains was provided by the government towards the public’s use. For convenient of people who are staying in urban and rural areas ( White 2002), governments have provided a better service quality to people to make sure the service they provided are able to satisfy the consumer needs and expectation as well as to increase the level of service quality of public transport. In public transport, service quality can be focus in term of tangibles, reliability and responsiveness (Parasuraman et. al., 1985) and it has becomes a significant issues which is to have a better and comfortable environment. Mostly customers do not satisfy with the physical facilities in public transport. Cleanliness, comfortableness, frequencies, responsiveness of the driver and conductor of public transports are the major issues customer always complaints and disappointed on it. Besides that, buses mostly not provided convenience facilities such as wheelchair, which is needed for disable person.

However, Malaysia Prime Minister himself dissatisfied with the current issues and problems after being experienced on using the LRT service. Problems for Light Rail Transit (LRT) and Keretanapi Tanah Melayu (KTM) are the time arrival always delays and not to forget, service likes punctuality, frequencies of train arrives on time and insufficient of space to carry passengers are also the main issues that caused congestion occurs (Utusan 2008). Even though the public transportation is modernized and has been updated in urban areas but with the lacking of service quality and well-implemented by the government, it will lead a negative perception tot the customers and they won’t satisfy of using public transport service that they provided which are insufficient and inefficiency ( Karen Thompson, Peter Schofield 2002). Despite the routing scheduled stating the bus would arrive on every 15 minutes but users has been waiting the half an hour and yet the bus still not arrives. This is one of the punctuality problems faced by the public buses in Malaysia (The Star 2008). Another incident occurred in urban area Kuala Lumpur, which are included LRT train and Rapid KL. The train and bus clashing with each other in 200 meter from Bukit Jalil Station (The Star 2008). This shows that the safety measurement of public transports become worst and action should be taken into consideration.

Transit service quality and reliability is essential for transit passengers and it did shown that both factors do affect passenger satisfaction substantially (Tyrinopoulos, 2008). Furthermore, transit service reliability regard as one of the significant factor for commuters to decide on which types of public transportation they prefer to use the most (Benjamin, 1998). Due to inefficiency of system, buses did not arrive on time, departure delays, lacking of passenger seats, thus, these factors would cause passenger overloads. Commuters would more preferable to drive their own vehicles instead of using public transport to access to work, recreation, school during the peak service periods. It must be given extra attention on inefficiency system of buses in order to improving the reliability towards of passengers and commuters. However, service extension wouldn’t be necessary if the passenger loading was equally distributed and buses were regularly spaced enough.

According to Margareta Friman and Markus Felleson, new services of public transport are being developed and old services are being improved or upgraded in order to meet the potential and present customer’s requirement. To encourage more people to use the public transport, services should be designed and performed in a way to meet the levels of service required by customers (Beirao and Sarsfield Cabral 2007). In addition, there are few factors of how customers perceive public transport. Factors such as frequency, reliability, travel time and fare level (Hensher et al. 2003, Tyrinopoulos and Aifadopoulou 2008), comfort and cleanliness (Eboli and Mazzulla 2007, Swanson et al. 1997), network coverage or distance to stop (Eriksson et al. 2009, Tyrinopoulos and Antoniou 2008), and safety issues (Smith and Clarke 2000, Fellesson and Friman 2008) are the main factors for users do not use the public transport and also customer express their points of view about services as well as to providing judgment of public transport according to the service quality.

According to Tew Shi Yi, to enhance the percentage level of using public transportation, they managed to come up with a plan which is to offer an effective, accurate and user-friendly system for users especially for the citizens of Kuala Lumpur and it indeed bring the significant benefits to the public. Laura Eboli and Gabriella Mazzulla, one of the factors influencing the travel user choices to use the public transport is the transit service quality. Those customers who manage to use the transit service, they will probably use transit services again. In contrast, users may not use the transit services next time if they are not capable to use it well. However, improving the service quality is important for attracting new users. According to Che Rosmani Che Hassan, Mahar Diana Hamid, Norazlin Dzulkifly, Noor Zalina Mahmood, bus is one of the main alternatives of mass transportation as it is not only has better coverage areas such as Light Rail Transit (LRT) and commuter train but also cheaper for public to use it. Also, they found out that existing bus interchanges often inadequate to meet the growing needs of customers. There are thousands of people use the bus interchanges around Kuala Lumpur to reach their destination in a day. Such interchanges are Hentian Puduraya, Hentian Duta, Klang Bus Stand and more.

Based on research made by the student from the University Malaya, the survey results happens to be true that, the reason why do most of the Malaysian used private cars instead of Public Transportation were mainly, they lack of knowledge about the availability of the public transportation around their area. Not familiar on how to use the public transportation. Although there are several types of public transport but yet people rather to drive their own car and stuck in the traffic jam for few hours than using with public transport that might somehow causes problems when it is less unpredicted. However, government has comes up with a plan which is to introduce a new set of traffic management policy measures to promote the use of public transport. To encourage the residents to use the public transport, several facilities has been provided by the government in public transport station such as extra parking spaces are added nearby the public transport station so that people can park their car and ride easily, bus shuttle from bus stop to the train station or add more bus or train frequencies in either neighborhood or the city area.

Ng Choy Peng and Dadang Mohamed MA’SEOM, private vehicles have led to severe congestion and pollution. Kuala Lumpur first started to operate the light rail transit (LRT) in 1996 following by the STAR LRT and PUTRA LRT. These are the two LRT systems that operate in Kuala Lumpur after LRT. It has been found that most of the LRT stations in Kuala Lumpur areas provide inadequate parking space and this is one of the reason public do not switch to using public transport. However, to promote the use of public transport, the local authorities recommended improving the existing bus services like bus lane needs to develop even better and so on. As for the construction of the commuter train, it must be well-developed and to make sure light railway transit (LRT) is able to cater the need of residents from suburban area to urban area.

Last but not least, it is also shown that the public transportation nowadays face a very big negative impact from all the consumer and passenger that travels around with the public transport, this proven a result that the public transportation has show a lot inefficiency services that provided by each company, poor connection from certain destination to a destination itself.

1.2 Research Problem

The problem regarding to this proposal is the customer perception service quality towards public transport in Kuala Lumpur. This research is to find our factors that influencing customers not to use with the public transport. Researcher found out that private cars has become the main choice of traveler’s mode of transport is because they dissatisfied with the service quality such as reliability, cleanliness and comfortableness, facilities, travel fare and time of the public transport. There might have been frequent complaints from the commuters and passengers that the public transport did not provide a good service such as departure always delays, insufficient passenger’s seats and others. Most of them lack of knowledge about the availability of the public transportation around their area. Consumer does not know the exact traveling time and duration from the origin to the destination itself and not familiar on how to use the public transportation. So therefore most of them would not take the risk into taking public transportation as their mode of transport. Besides that, they are easily confused on what type of transport to use to reach their destination; slightly it is due to there are too many choices of public transportation to choose from in Kuala Lumpur. Furthermore, the consumer does not want to waste time waiting for the transportation with no exact arriving time everyday when they own a private car where they do not worries anything about the availability of the car, the traveling duration, and it is far more accessible from time to time.

1.3 Research Question

What are the factors that affect public not to using public transport in Kuala Lumpur?

How does the service and requirements can be improved?

What is the extension level of the service attributes must be improved in the future?

What is the overall satisfaction level of users to public transport?

What is the item of service quality that leads to customer satisfaction?

1.4 Research Objectives

The main purpose of the objective for this proposal is to measure the user’s global satisfaction with public transport as well as to examine the customer perception of using Kuala Lumpur public transport according to certain factors. The main point of this research is to find out what is the level of expectation perception of Kuala Lumpur customers about service of public transport delivered and what kind of services that affect most of the people do not use public transport. It is very important to find out how does the service and requirements can meet the customer’s satisfaction, any improvement for government to maintain the public transport, factors government would take into consideration in deciding to use public transport more or drive less in order to encourage and promote people, especially the citizens of Kuala Lumpur to use public transport services more often. Government should update the latest information such as possible routes coverage, departure and arrival time of the public transport and travel fare to the user. Suggested route will be giving out to the users to ensure users using public transport in a shortest time and cheapest way with a limited budget to reach the destination itself.

Objectives of this research are:

To determine the reason for public to choose to travel with private car but not using public transport in Kuala Lumpur.

To identify the types of service and requirements to meet the customer’s satisfaction.

To identify the extent gap of between the customer’s perception and expectation.

To identify the best solution to improve the service quality of the public transportation, like more seats and comfortable seats.

Theoretical Framework and Conceptual Framework

Basically, the above diagram is the research shows how readers are to determine the factors that encourage car users’ switch from driving car to using public transportation in Kuala Lumpur more often. Factors that can encourage the car users to switch and use the public transportation are to upgrade and expand the service quality of that particular transportation. For example, KTMB need to put in a lot of effort into upgrading their services, especially during the peak time (working hours) so that the consumer can access to it with hassle free.

Customer satisfactions are also an important aspect in the customer perception, in order to make the customer satisfied into using the transportation are to make sure that comfort are there, the warm service are they and accessibility are surrounding the public transport itself. Furthermore are the Reliability of Public Transport, in order to make the public transportation a reliable one, the management of the transportation company, must always upgrading their services and expand their services, so that the consumer can feel reliable towards the particular transportation.

Diagram above is the model of conceptual framework, which is illustrating the relationship between service and quality development, customer satisfaction, responsiveness, route accessibilities of public transport, reliability of public transport (arriving on time), and the maintenance from time to time to public transport.

1.6 Significant of study

This research helps to indentify existing problem of what factors encourage car user’s switch to use public transport which may lead to the satisfaction of car users. Through this research, the government has to put its effort to make an improvement on the public transport system such as development of an integrated and efficient public transport system. Action should be taken into consideration to upgrade the public transport to car users in order to meet the requirements and provide an efficiency services which will give customer a wide perspective of satisfaction especially focuses on the expansion of Light Rail Transit (LRT) and commuter train services. By doing this, it will not only helpful and useful at this time and future planning as well. The result of this research will improve the car user’s satisfaction. In the meantime, this planning will encourage more people to use public transport. Furthermore, it does helps to indentify additional changes that can be done to avoid further impacts to the current site emphasized in this study.

Scope and Limitations

The scope of study is the public perception towards Kuala Lumpur public transport. Due to the time constraint, the researcher might not able to gather sources of the information from journals, online journals, further details, and newspapers. Beside of this, the researcher also facing some difficulties on the research paper because of the short time provided on the research process. Obviously, it is caused by the lack of resource that provided in KDU library and the researcher also facing some difficulties on getting the further details information about public transport in Kuala Lumpur with a limitation of resources. It also caused by the data that provided in KDU library is not the latest and the data didn’t up to date regularly.

Chapter 2 – Review of Related Literature
2.1. Factors influencing the customer perception service quality towards Public Transport in Kuala Lumpur

This review indicates that efficient public transport (PT) considered as one of the potential solutions to the problem of urban road traffic congestion (Hyman and Mayhew 2002,;Pucher et al. 2007; Vuchic 1999).The factors that influencing the customer perception towards public transportation are mainly because of the times due to the seemingly break down and the delay of train all the time, the customer do not want to take the risk taking public transportation without taking the public transportation, it will helps reduced the time of travelling and can avoid the malfunction of the public transportation all the time

The second factor that influence their perception are crowded and comfort, due to the public transportation are always crowded, there are some of the customer that afraid to take the public transportation, reason are because they have to be inside the public transport hot and stuffy, sometimes will occurred cases like sexual harassment towards the woman that travel using the public transportation. Not only that, when it is too crowded some of the customer unable to enjoy the seats due to lack of seats and also when there are too many people sometimes it will cause drowsiness when not enough air ventilate in the bus, train or taxi itself.

The third factor that influence the customer into taking the public transportation are the desirable routes are not covered by the public transportation, it is only covers some part of the city, suburban areas and town but not to most of the places, it is hard for those customer to travel using public transportation when some of the destination that offers by the public transport itself need transfers and also need walking.

The last factors that influence the customer perception are the infrequent public transportation. There are public transport that travels follow the time that set by the system, example like KTM there are a board stating that what time exactly will the train itself will arrive, but the train always reach late and never follow. So as the Monorail and also the Star LRT which provides the wrong information of time all the time? As for Putra LRT, is the only rail that shows the correct timing due to the, system will update its timing once the trains reach certain destination? Based on Apogee Research (1996), there are three main tools central to the assessment of public transport such as travel demand models, transport cost analysis techniques, transport sketch planning and impact spreadsheets and each of the tools will have their own benefits and disbenefits.

2.2. Service Quality

Surprisingly, few studies have so far analyzed this relationship. The concept of service quality involved outcomes, satisfaction of the users, and other intangibles of public transport expectations. In addition, facilities and more tangible aspect of public transports physical elements are also one of the concept of service quality (Fodness & Murray, 2007). Service quality also involves the perception and expectation of the service level delivered to the user which is meets their needs. Some models have been developed that attempt to link perceived quality dimensions to specific product attributes in the product development literature (Hauser and Clausing 1988, Nagamachi 1995). Government should increase the capacity of the public transportation, the lack of seats is what bothering the customer and why they do not ride on public transportation because it is tired to stand all the time. The service quality of the public transport is not really executed well. For example: The Light Rail Transit (LRT) and Keretapi Tanah Melayu Berhad (KTMB) always delays, insufficient space to carry more passenger seats and this is one of the reason caused the congestion occurred (Utusan, 2008).

Should also think of refurbish each and every of the station and stops and install the service which necessary for the convenience of all the customer and comfort while waiting for the public transport. Not only that they environment of the public transportation are good, but also the driver, staff and the one who work in the service line must possess a good heart in helping and assisting. Cleanliness and comfortable of public transport are the main appearances for users. Usually, users will focus on the cleanliness of interior, seats, and windows of the public transport. Therefore, the management has to make sure the equipment is up to date and in working order as well as the waiting areas were appropriately furnished, cleaned and well all the times. Employees and staffs of the public transport must always possess with lot of skills and knowledge on the service production in order to provide a better services to users. One of the measurements in service quality is the interior of the public transport, which is considered as the physical appearances (Parasuraman, et. al., 1988).

2.3. Reliability of Public Transport

According to Beimborn et al. (1993), it is important to provide a framework for benefit analysis and described the measurement techniques after reviewing the principle and issue for public transport benefit measurement. Reliability is focusing on frequencies and punctuality of the public transport which is arrives on time and able to meet the expectation of the users. It means the ability to perform the promised service which are more dependably and accurately (Parasuraman, et. al., 1988). Reliability of Public Transport is an important aspect, in order to gain the trust and the satisfaction of consumer. The public transportation itself must always understand what the customer need, like be punctual all the time, make sure that there are no difficulties happen, no extravagant fares being imposed at the guest or tourist. When there are a shorter way to reach the destination itself, don’t try another longer way to increase the far. Being honest all the time, this way, it will make the customer happy and thinks that the public transportation is reliable and also will gives a positive impact to the public perception and expectation.

2.4 Customer Satisfaction

(Richter et al. 2008a, 2008b) to meet potential and present customers’ requirements, quality investments that really raise the perceived service performance regarding these attributes constitute an important issue. In order to make the customer satisfied towards the public transportation, the management must always update their service and also their transport, so that the passenger can enjoy a comfort and happy ride. Staffs must always provide an efficiency service to the customers. With a reasonable fare, comfort, cleanliness and easy access to a destination or place through the scheduled, customers will gain the confidence of using public transport instead of driving their own vehicle.

Passenger takes the public transportation due to a lot of reason and the reason that drives them to take it. In order to maintain the passenger keeps taking the public transportation always make sure that there are no problems occurred during the ride or before the ride. Try doing survey to survey on the consumer on what can be upgrade and what can they do to make the customer more satisfied.

2.5. Responsiveness

According to (Parasuraman, et. al., 1988), another quality of dimension in measuring service quality is responsiveness. It means the willingness of the staff or employee to help the customers and to provide a better and prompt service to customers at the same time. However, the attitude of the driver or staff in public transport must be always possess with a good behavior. Staff and driver are required to behave in politeness and friendly with the customers instead of showing anger or rudeness to the customers. The way they speak to the customers and the way they give customer a hand are important in the service quality of responsiveness. In spite of this, it indicates that customers or user perception and expectation to the service quality in the public transport are become more important and couldn’t be neglected by the management.

2.6. Route Accessibilities

With the demand for public transportation is gaining day by day, the bus operator and rail operator must think of creating new bus routes and also train routes to let the customer access to other places which are hardly had any transportation access to it. Especially now the government had come out with an idea of building public transportation for Cheras and also Kota Damansara rail line. Even though the bus caters mostly to all the routes in Klang Valley, whether it is deep inside or outside the boundaries, but there are still some of the road that still haven accessible by the bus and also other public transportation itself. Even though some of the place had already available for public transportation but some of it needs interchanges, this will bother the customer for changing or transfer to another station.

2.6. Maintenance From Time to Time

Services that are dependent on already-existing, complex systems of infrastructure and organizational arrangements are likely to require a different logic (cf. de Brentani 1995, 2001). For a better public transportation results and attract more and more people into taking public transportation, what a operating company must do are to make sure that they always check their transport. Make sure that maintenance do from time to time to cause the train or bus or even taxi break down or having difficulties when there are passenger that are using the public transportation. Because once the train is having any difficulties problem, it will take approximately an hour or two to fix the problems. With such kind of problem will always gave the customer or passenger negative feedback towards the public transport. Even though it is not always the negative feedbacks all the time but is important to avoid such thing happen. The company must take extra precaution.

Chapter 3: Research Methodology
3.1. General Methodology

Hybrid research approach is the general methodology in this research. The definition of Hybrid research approach is the combination of both qualitative and quantitative methods and these are the two methods research that the researcher used for the proposal. Besides this, it is also known as a mix of approaches and there are also some benefits by using this research. The researcher will have a deeper understanding and knowledge of the results when using these two types of method. The efficiencies in time and cost are also one of the benefits. Other than that, this research approach allow the researcher to solve the problem occurs with the qualitative research. Hybrid research approach can solve the problem of unfamiliar to the background of the research.

3.2. Research Design

There are two types of methods the researcher used in this research. Firstly, Qualitative method, which is more to observation and also the data that collected is fact and unchangeable. The collection of the data will be based on quality and it will be presented in words. The researcher will study and interpreted the data that have been collected through online research. Qualitative method is subjective. Due to the perception of everyone is different from each other. Hence, it is difficult to generalize. The researcher will be more understanding by using this method. Quantitative method relies on the research instruments used to collect and measure the data. It is necessary to use the quantitative methods in order to understand and comprehend the core purpose of this study.

Both qualitative and quantitative methods will be use as the central focus of the research method. The survey techniques that the researcher used for the qualitative method are fully representing it. On the other hand, the researcher are doing interview for the qualitative methods. The respondents for the interview will involve Kuala Lumpur frequent public transportation user. Interview allows the researcher to gather more information and also have a better understanding on the topic. Researcher not only can get information that is not available in literature method by interview the interviewee as well as the questionnaire also can be tailored to meet the different needs of the respondents. As for the questionnaire, it will be semi-structure and more flexible during the interview.

3.3 Sources of Data
3.3.1 Primary Data

At first, the primary research is done in order to obtain the raw information from the public directly for the research proposal. For the research part, the researcher will focus on the customer perception service quality towards public transportation in Kuala Lumpur and the negative thinking of people to use public transport. Meanwhile, the researcher will find out methods that are useful to promote and encourage more people switch to use public transport especially car users. In this research, a survey that containing 10 simple multiple choices questionnaire and also an interview will be use it to collect the primary data. It takes about 5-10 minutes to fill in the survey questionnaire for each respondent. There are some choices for each of the questions and each respondent just have to choose one of the answers that they preferred the most.

Respondents are required to jotting down their own comments in the questionnaire form that stated with their own opinion towards public transport in Kuala Lumpur. This research is useful because all the survey forms will be collected and gathered by the researcher once they have done. Besides that, an interview will be conducting around the Kuala Lumpur City Centre and the group that the researcher targeted would be the all centric and mid-centric. Primary Data is also collected for this research by interviewing the Kuala Lumpur frequent public transportation users. The definition of the public transportation user will be the Malaysian users that use the public transport almost every day. Through the interview, they can provide a better idea and personal view which can help the researcher to gain more information while doing the proposal. The interview would involve questions asked by the researcher ‘one-on-one’ to a subject regarding the customer perception towards public transport and also to enquire for their opinion what types of the requirement can meet the satisfaction of public transportation users. The targeted group of the public for this interview would be college students selected randomly. The researcher will collect and analyze the information from the interview and use it to support the result of quantitative data.

3.3.2 Secondary Data

Besides using the primary researches, secondary researches are used widely in this report by the researcher too. Secondary data defined as the data that acceptable by most of the researchers and the data will definitely published in the public by other researchers. Normally, secondary data can be easily found on websites, journal, articles, books, textbooks, magazines, and also some other online resources. However, the main seco