Author: Andre Coleman

Banyan Tree was very successful and grew very fast in the Asian sector. In this report we will look at the difficulties Banyan Tree has expending globally. At this stage Banyan Tree needs to overcome certain challenges in order to continue its expansion. We will provide suggestions on how to overcome these challenges in this report.

Table of Contents

Executive Summary 2

Table of Contents 3

Background 4

Action and Implementation Plan 10

Appendix 1 Banyan Tree Current and Upcoming Destinations 11

Reference List 12

Background

Banyan Tree Hotels and Resorts was established in 1992 as a family business by Ho Kown Ping. Enz & Farhoomand (2008) stated Ho’s family believed Banyan Tree Hotels and Resorts needed to have a unique strategy so it could stay long term in the market, and Ho was influenced by his family on this idea.

The company grew rapidly under Ho’s leadership. Ho opened Banyan Tree resort in 1994 for high spending customers and provided premium customer service. It opened another brand called Angsana in 2000, this brand focused on young families and it was not as luxurious as Banyan Tree. Enz & Farhoomand (2008) stated that Banyan Tree Spas and Angsana Spas provided different products and customers’ experiences. The ambiance of Banyan Tree Spas was more about the traditional, luxurious and classical while Angsana Spas provided service in a modern and colorful environment. Banyan Tree Oberoi Spas is a brand to provide spas skills to Oberoi Group of India.

“Banyan Tree managed and owned interests in upscale niche hotels and resorts which included 18 resorts and hotels, 49 spas, 53 galleries and two golf courses spread across nice counties” (Enz & Farhoomand , 2008). ( See the Appendix 1 for Banyan Tree current and upcoming destinations). Enz & Farhoomand (2008) mentioned that Banyan Tree was rewarded with over 250 awards and accolades. Ho received the Innovation Award from the Hotel Investment Conference Asia in 2003, Entrepreneurship Award from the Hotel Business School and Ernest in 2005 and Young Singapore, Lifestyle, Hospitality and Retail Entrepreneur Award in 2005.

Banyan Tree has a few key success factors in their operations, management, service, branding and marketing. Banyan Tree provided various services, the revenue come from residence and property sales and spa and gallery operations based on Enz & Farhoomand (2008). Its operation has six business strategies including hotel investment, hotel management, spa operation, gallery operations, property sales, design fees and others starting from June 2006 based on Enz & Farhoomand (2008).

Enz & Farhoomand (2008) noted that revenue of hotel investment took up more than half of the company’s revenues in at the end of 2005; The revenue of hotel management from Banyan Tree was based on management, incentive and other fees including reimbursement of fees received from the sale and marketing service in other resorts and hotels which Banyan Tree provided.

Spas were regarded as one of the main characteristics. According to Enz & Farhoomand (2008), Banyan Tree Phuket won the Crystal Award for Best Spa in Asia from Spafinder’s Reader’s Poll in 2005. Banyan Tree spas could only be found at Banyan Tree resorts and hotels except for the one at Westin Shanghai as it wanted promote the brand in China, while Angsana spas could be found in all other resorts managed or owned by the company and other operator’s resorts and day spas. Oberio spas by Banyan Tree ran under spa management. It is different from room rates, Spas treatment prices were not influenced by seasons. So the pricing structures were different in the individual spas.

Enz & Farhoomand (2008) stated Banyan Tree Gallery and Angsana Gallery rewarded as the Pacific Asia Travel Association Gold Award for Heritage. Branded gifts, spa products, specialties and others souvenirs could be found in resorts, hotels and spas. Museum shops provided a unique collection of museum duplications and arts. In this way the company’s brands got exposed and at the same time it made revenues.

Enz & Farhoomand (2008) also stated that the company had sold 470 resort residences at Laguna and Phuket. Banyan tree’s strategy was to connect properties where close to its resorts and spas. The company got profits through selling the resorts residences while it kept unsold properties as resorts rooms to get more hotel investment.

According to Enz & Farhoomand (2008), Banyan Tree Hotels and Resorts provided design service, lease office service and golf course service. All the costs of construction, renovation, alternation and construction management fee were charged by the owner. They believed it could reduce costs, have good quality, be more efficient and keep the design consistency in this way.

Diversity brings a broader range of expertise, resources and viewpoints to projects (Townsend, Demarie, & Hendrickson, 1998, cited in Grosse, 2002). According to Grosse (2002) having people from different cultures enhances the experience for everybody and strengthens a team. Enz & Farhoomand (2008) mentioned that top management members of Banyan Tree came from 20 different countries which brought Banyan Tree rich experience and leadership while 5,000 staff from Banyan Tree came from 35 different countries.

According to Enz & Farhoomand (2008), Banyan Tree branding was the core competence since Banyan Tree was created and it had been the key to its success and framework for its global expansion. Enz & Farhoomand (2008) identified cross-selling as one of the strategies from Banyan Tree. Banyan Tree launched a customer reward program called “Sanctuarly Programme” in 2003 to promote other Banyan tree hotels, resorts and spas through giving qualifying customers free stays and incentives. The company tried to make these customers become loyal to its different brands.

Word of mouth is very important within the hospitality industry. According to Enz & Farhoomand (2008), Ho believed word of mouth would be one of the strategies for Banyan Tree’s marketing. Banyan Tree’s vision is based on its brands and its strengths were the corporate social responsibility, property advantage and staff shared the Banyan tree ethos of CSR.

Enz & Farhoomand (2008) suggested that Banyan Tree brand appealed business collaborators such as American Express and other quality business partners. These business collaborators helped Banyan Tree getting high spending customers and provided it other global systems and marketing program as well. Enz & Farhoomand (2008) also stated that the world Travel Market and other major international tradeshows promoted the Banyan Tree Brands as well as provide it a chance for wholesalers. Other famous hotel companies approached Banyan Tree to open a Spa, and it was free advertising for Banyan Tree as well as bringing it to new places.

Banyan Tree had distinctive competencies including corporate Social Responsibility Philosophy (CSR) and The Green Imperative Fun (GIF). Enz & Farhoomand (2008) stated that CSR was designed to minimize the damage for the environment and help local business and communities. It is also a free advertisement for Banyan Tree. The Banyan Tree website mentions that GIF was created to continue formalizing its corporate social responsibility efforts in 2001. The GIF focused on environmental action and community projects in Banyan Tree’s neighborhood.

” Apart from competition within a specific location, there was also competition between locations.” ” Typically, Banyan Tree didn’t compete with large -scale hotel operators, as most of its resorts had fewer than 100 rooms or villas and focused on niche markets in premium resorts and hotels” (Enz & Farhoomand, 2008). Enz & Farhoomand (2008) stated that Banyan Tree’s closet competitor were the Aman resorts, COMO Hotels and Resorts, Six Senses Hotels & Resorts, One-and -Only Resorts and the Four Seasons Resorts while Angsana resorts and spas’ had different competitors at each outlet such as One-and-Only Kanubura and Shangri-La Hotels.

Enz & Farhoomand (2008) mentioned that Amanresorts resorts focused on local surroundings including open view of rice files etc. It was designed to provide distinct atmosphere and customers experience in different locations. COMO’s resorts ranged from cities to secluded places, it claimed to offer the best Yoga teachers in the world. It also mentioned that Six Senses Hotels and Resorts focused on staffs’ behaviors and atmosphere at each resort. One -and -Only Resorts’ core values is “blow away the customer”, it offered customer a unique and luxury experience. The resorts which were rewarded were located in the most beautiful places in the world. Enz & Farhoomand (2008) stated in the interview that Four Seasons is a global company and resorts were located in urban city centers which established in 1960. The company stated to be on the top of running luxury hotels and it provided a “home cooking” service. Shangri-La Hotels and Resorts was the largest Asian hotel group in Asia and the Middle east, and half of their business would come from China by 2010.

Enz & Farhoomand (2008) identified Ho was not afraid to face these competitions as he was sure Banyan Tree could lead small to medium sized luxury hotels as long as he overcome a few challenges which includes to be developed into globalizing service operation as well as avoid diluting its brands.

Issue Statement & Problem Analysis

Currently Banyan Tree is mainly located in Asia and is expanding rapidly in that part of the world. Banyan Tree seems to have two core businesses which overlap each other, being resorts and real-estate. The management is looking into globalizing Banyan Tree and expending further into western countries. This however doesn’t come with the needed challenges.

Banyan Tree suffered together with the travel and tourism industry the Asian financial crisis of 1997, Bali bombings in 2002, SARS outbreak in 2003 and the Indian Ocean tsunami of 2004. These kinds of crisis had a big impact on Banyan Tree and others in the hospitality and travel industry resulting in “low occupancy” (Enz & Farhoomand, 2008). In the appendix of Enz & Farhoomand (2008) it can be seen that during the SARS period in 2003 a 10 to 50% drop in travelers was occurred in Asia, which shows in Banyan Tree’s operating profits. As Banyan Tree is currently mainly located in Asia, this drop in travelers didn’t support Banyan Tree in their effort to globalize and in fact slowed them down.

Banyan Tree would find new locations based on the criteria of “room rates” of the “typical industry player”, which room rate could be ten times lower of what Banyan Tree would ask for (Enz & Farhoomand, 2008). It is mentioned that this “strategy” worked on many occasions and “premium pricing” could be demanded for between 5 to 7 years, before competition entered. This strategy would indicate that the Banyan Tree organization still highly benefits from undeveloped areas and a competition which is less competent. From this we can conclude that if the hospitality and travel industry in China, India and other developing countries in Asia become more developed, the competition will become fiercer for Banyan Tree. This intensification of competition in their home market would surely slow down the globalization of Banyan Tree.

Enz & Farhoomand (2008) mentioned in their interview that the property sales generated more than half the operating profits of the year 2003. For the year 2005, with the depression in the hotel segment, profit from the property sales represented 91.6% of the total operating profits (Enz & Farhoomand, 2008). In the China Daily (Oct 20, 2010) it is mentioned that more Chinese cities implement tougher regulations through “loan caps and higher down payment hurdles”, in order to cool down an “overheated property market”. Government restrictions like these imposed in China can become a bottleneck to foreign investors. As China is a major market in the Asia sector and thus for Banyan Tree, developments as these will have a negative impact on Banyan Tree’s property sales department. In the worst case scenario it could have a negative impact on their growth.

It is mentioned in the interview that Banyan Tree itself is mainly afraid for “brand dilution” (Enz & Farhoomand, 2008). The paper also mentions that this brand dilution would mainly occur through not having enough “man power”, not having proper “infrastructure”, spreading itself to thin or venture into locations that could have negative impact on their brand. Banyan Tree being afraid for brand dilution shows very clearly the issues they are having in expending their organization further, especially to new areas outside of Asia . It can be assumed that their current strategies are mainly focused on Asian culture and aren’t truly global. Therefor true globalization strategies would need to be implemented in order to be successful in expending organization globally.

In short, strategy for new locations is based on finding competition in interesting areas with extremely low room rates, which works in undeveloped areas. Global expansion has slowed down due to several major crises in Asia while property sales have supported the organization in total operating costs. While expending the organization globally still have some issues which need resolving.

Recommendations

Key issues in globalization include the constraints imposed by language, culture, and government regulations (Lovelock & Yip, 1996). In the Glion institute higher education online study website (2010) mentioned one of most popular ways to being global is franchising and franchising accepts fast and extensive growth. Franchising is a system by which a firm grants to others the right and license to sell a product or service and, possibly used the business system developed by the firm (Fitzsimmons & Fitzsimmons, 2010, as cited in The International Franchise Association). Benefits are as stated in Fitzsimmons & Fitzsimmons, (2010) less business risk because of the ability to become part of an established service brand through franchising, enjoying benefits of national advertising, the acquisition of a proven business and benefitting from a centralized purchasing system which saves cost while giving gives up personal independence. Through franchising as a vehicle it allows Banyan Tree to be able to expend swiftly into new markets, but only on the condition their global marketing plan has been fully worked out and proved to be fully working.

Information-based services offer management greater flexibility to split the back office and front office, with opportunities to centralize the former on a global or regional basis (Lovelock & Yip, 1996). In order to improve Banyan Tree’s infrastructure their current backend information system should be renewed in order to facilitate expansion, competiveness and globalization efforts. Through this system customers could be tracked with their personal wishes and habits making it possible to provide services towards the customer next time he visits without the need to ask and being able to prepare the customer’s needs before arrival. This is one step towards global premium service to Banyan’s customers. Besides customer preferences training, policy updates and information sharing could be made possible guiding all of Banyan Tree’s venues towards standardization and compliance, which in the end would provide the customer with a single Banyan Tree experience, not matter which Banyan Tree would be visited.

Enz & Farhoomand (2008) mentioned that globalization of the Banyan Tree organization will “spread the risks of natural catastrophes” and also “reduces the impact of cyclical and seasonable fluctuations in the tourism industry”. Focused network is “a service firm that must be readily accessible to customers” (Fitzsimmons & Fitzsimmons, 2010). They also state that a “focused network allows management to maintain control, which ensures consistency of service”. It is advisable to implement a multisite strategy and become a focused network which has as benefit that it supports the franchising method and thus rapid growth. As a global service strategy importing customer service strategy type would fit Banyan tree. Fitzsimmons & Fitzsimmons (2010) stated that the importing customers type as “a service evolves that is focused on the attraction” of customers. This method works well together with the service type called “beating the clock” at which 24 hour service is provided to customers. The ability to be able to have a 24 hours reachable reservation desk online or by phone is a must for a global organization. Note that this reservation system would go hand in hand with their information systems. This reservation system would also promote their quest in globalization of their organization as they make themselves at anytime at any place reachable.

According to Hallowell (2000) that Four Seasons has a low staff turnover compared to industry standard because of its training strategy and promotion program. Attracting and training new staff is more expensive and difficult compared to retaining current staff. Banyan Tree could follow Four Seasons’ employee strategies to train and develop its staff to maintain a low turnover rate.

Action and Implementation Plan

True global products and services have a standardized core product or service that requires a minimum of local adaptation (Lovelock & Yip, 1996). They mentioned further in their paper that managers may find that the best way to achieve global consistency in the core product is to create easily replicable service concepts, backed by clear standards, which allow for either franchises or country managers to clone the original core product in a new setting. Banyan Tree needs set up a global team in order to prepare for a global strategy. This would be done through using all of their general managers at each resort. At the end a strategy should be finalized after which the implementation phase can be started.

In order to service and track their customers an online accessible backend system should be implemented. A well designed and implemented system would provide major benefits to the Banyan organization in their pursuit to go fully global. Banyan Tree should contact an off the shelf software supplier which meet their demands with options to customize their software. This way their information system doesn’t need to be developed totally from scratch and future updates can be implemented easier as the software is based on existing software.

“Labour intensive activities can be supported by major investments in communications and computer systems that facilitate the transfer of information into and out of the process” (McLaughlin & Fitzsimmons, 1996). In order to keep a low turnover of staff it is advised to create a special program for that. Step one would be to provide continues training to the staff, in order to support their career. If staff have the potential to keep growing within the company including its rewards there is no reason to look outside for another job. Secondly staff needs to be respected as peers, no matter the position. Thirdly a certain company atmosphere needs to be created in order for people to feel happy and close to each other. This supports their needs as well as the company as it promotes team work.

These strategies and plans will support Banyan Tree in its quest to expend globally, However it still has long way to go in order to develop into a global origination.

Appendix 1 Banyan Tree Current and Upcoming Destinations
Year
Destinations

Existed destinations

Banyan Tree Hangzhou – China

Banyan Tree Lijiang – China

Banyan Tree Ringha – China

Banyan Tree Sanya – China

Banyan Tree Bintan – Indonesia

Banyan Tree Ungasan, Bali- Indonesia

Banyan Tree Club & Spa Seoul-Korea

Banyan Tree Madivaru, Maldives

Banyan Tree Vabbinfaru, Maldives

Banyan Tree Cabo Marques-Mexico

Banyan Tree Mayakoba-Mexico

Banyan Tree Seychelles

Banyan Tree Bangkok-Thailand

Banyan Tree Phuket-Thailand

Banyan Tree Samui- Thailand

Banyan Tree Al Wadi-UAE

2011

Banyan Tree Macau-China

Banyan Tree Riverside – China

Banyan Tree Kerala – India

2012

Banyan Tree Lang Co – Vietnam

Banyan Tree North Bund – China

Banyan Tree Tianjin – China

Banyan Tree Alqueva – Portugal

Banyan Tree Jiuzhaigou – China

2013

Banyan Tree Yangshuo – China

Banyan Tree Huangshan – China

Banyan Tree Costa Navarino – Greece

Banyan Tree Tamouda Bay – Morocco

Banyan Tree Sifah – Oman

Banyan Tree Panda Town – China

Source: www.banyantree.com

Service is the main essence of Hospitality .Guest service means being attentive to the guest request and needs. Good quality service is the main essence to run a good hotel and it can achieve by creating such a environment for the guest that should give feeling of “Home away from home”. Guest should feel comfortable and relaxed while staying in the hotel. Every guest should be handled as special customer which help in making good relation with the guest. It does not matter how good is the ambience, how tasty the food is, it’s always the service and attentiveness which guest experiences which determines their return in the hotel. Hospitality is known for its generously providing kindness and care, who is in need. Knowing what exactly the customer expects is the first and most important step in delivering good quality service.You cannot give quality service without knowing customer expectations.

Hotels or inns are believed to have started around 12000 years ago.Traveling concept started in Greece and ancient Rome in 800BC-146BC.Early warriors and traders were the travelers.In thosedays accommodation means offering a cot or a bench in corner of a room or astable, most of them were private residences that used to give temporary residence or give loading to strangers.In the Dark Ages travelers had little choice except to stay in monasteries that offered food and shelter.The idea of aˆ‹aˆ‹hosting travelers was taken even further when trade and commerce began to boom, prompting taverns and inns to arise, especially in ports cities. That time sanitation and privacy was not in exist.When money came in establishment in 6th century BC, hospitality was one of the first enterprises where money was exchanges for receiving service.Inthose days Hotels or inns not used to operate for 24 hours, after a certain hour the main door of residence would close andafter that one cannot enter although you are a customer. These Residences or inns were generally situated near intersection of two major roads or near railway station or at the entry of a city. Since then Hospitality industry has grown into a highly competitive industry (WelingkarI., 2011).

Hospitality now just not about getting from point A to point B,its about how you go to your destination forwarded by how much you enjoyed your stay. Tourism plays an important role in the growth of throughout the hospitality industry because people will never stop traveling and while traveling they always require a place to stay. Intelligent commercial planners have realized the industries’ potential and are taking advantage of the same by providing all the wants and needs of potential guests.

Hotel operators are radically changing the service manner in which they provide food,drinks,and accommodation within the organization,the main reason for doing so is that hospitality industry is movingvery promptly. Customers are varying, technology and markets are changing rapidly.Managers are reexamining their existing service offering and deciding which innovation will create more value.Managers are researching on innovation, which are economically sustainable to the organization but also delivering additional value to their customers. Each year Market Metrix evaluates industry best practices and publishes “Hospitality Trends and Opportunities.” One important trend is to focus on is “Personalization” and it is impacting customer engagement and loyalty for hospitality companies.(Merchant, 2011)

Hotel industry has changed a lot compared to recent years and is changing continuously. Numbers of changes are coming in way to give service to guest. New applications are coming in the market that is helping in providing better customer service.They make a big difference in terms of winning new businesses and new customers.Technologies continue evolving to make it as easy to use as possible for the hotels’ staff.In the past, the systems that hotel staff uses have been traditionally designed and required a great deal of training in order to be used successfully.Hotel technology will continue to evolve and improve so that training is minimized and the type of training that the hotels can concentrate on will be on hospitality-oriented, customer facing services.The main emphasis is on how to treat the guests, not how to deal with computer systems.

Service innovation not only involves new ideas or new technology but modifying and renovating existing ideas by new and unique thinking.The main objective of innovation is to improve operations, guest service and revenues. However, Hotel industry is one of the oldest industries so it is not easy to innovate in industry with traditional methods. Service science gives us a good chance to innovate services in a new day. As a growing industry, hotel industry includes all types of accommodation’s from 5 star luxurious properties to youth hostels, which offers a variety of services including but not limited to food, beverage, laundry and valet services.

Servqual and TQM-Total quality management are the two widely used concepts within service industries to understand the perceptions of target customers regarding their service needs. And to provide ameasurement of the service quality of the organization.Servqual is an empirically derived method that may be used by a services organization toimprove service quality.The method involves the development of an understanding of the perceived service needs of target customers.These measured perceptions of service quality for the organization in question, are then compared against an organization that is “excellent”.The resulting gap analysis is used as a driver for service quality improvement(lalvanzonline,2011).TQM processes are mainly divided into four general categories: plan, do, check, and act also called as PDCA cycle. In the planning ,people define the problem to be addressed, collect relevant data, and ascertain the problem’s root cause; in the doing phase, people develop and implement a solution, and decide upon a measurement to gauge its effectiveness; in the checking phase, people confirm the results through before-and-after data comparison; in the acting phase, people document their results, inform others about process changes, and make recommendations for the problem to be addressed in the next PDCA cycle (Margaret Rouse,2005)

The boutique hotel is an excellent example of innovation offering in hospitality industry. A boutique hotel is one that is generally not chain-affiliated, features an intimate, stylish appearance and provides impeccable amenities(Cathy Rogers,2011). The target market for most boutique hotels is the 25-55 age range, most within the middle to upper income level.These hotels are generally situated in a stylish location .The goal for a boutique hotel is a level of personalized service not necessarily doable in a larger hotel. At many boutique hotels, the staff knows each guest by their name. Most offer 24-hour guest services. Some offer the comforts of canopy beds, bathrobes and fireplaces in the lobby. Others offer healthy food choices, mind and body themes and on-site bookstores.As a boutique hotel varies in other features, so does its technological amenities. While some offer the latest in technology, others focus on a calm, soothing environment. To some patrons, the bed and breakfast concept may be similar to that of the boutique hotel. Many boutique hotels have on-site, reputable dining, as well as bar and lounge areas that are also open to the public. As the trend continues to grow, many hotels market themselves as boutique; most being small, luxury type hotels worldwide.

Eva Floor is also a new concept which has started in India, by The ITC group, called Eva Floor which means a floor only for ladies travelers. Seven hotels have currently been outfitted with the ‘Eva Floors’.The main concept to come up with such idea is to provide maximum safety and security to ladies travellers. Amenities on the Eva floors include extra security in the form of double latches, special floor access cards, all-women staff and a separate check-in counter. Women like pretty colors, hate harsh lighting, are prone to lay around a lot, and spend most of the time in the bathrooms, the rooms are decorated in soft pastels, have special lighting, separate ‘day beds’ for an afternoon nap, larger counters for cosmetics, high-end toiletries, silk robes and bathroom slippers, more powerful hair dryers, and ironing boards (Juliana, 2005).

A good and important invention in Hotel services is the use of Information Technology. IT innovation are beneficial and have future benefits for Hotels.IT is playing a very important role in hospitality industry.Technology powers and contributes to the growth to practically every industry in the present age. Hotel industry too isn’t insulated from its effects. Many new technologies have invented to run the system smooth and flexible. IT has minimized the human efforts in many levels. Some of the good examples of IT innovations includes Express check In/Check Out, , internet check in/check outs, wake up system , electronic door locks ,in-room pay-per-view, electronic safe guards, express check-in/out systems, CD/Dvd Players, voice mails, multiple phone lines,electronic mini bars. Technology powers and contributes to the growth to practically every industry in the present age. Hotel industry too isn’t insulated from its effects. Many new technologies have invented to run the system smooth and flexible.

Now, with the invention of the internet and other electronic channels, new media offers an avenue for hospitality companies to gain an advantage. At one time travel agents were almost controlled the hospitality industry. They were largely responsible for creating guests’ travel plans and offering specified rates. While large chains and big time destinations can afford traditional marketing channels, smaller, independent entities can gain an advantage through new hospitality concepts. Companies such as Expedia, Tripadvisor, and TravelCLICK help level the playing field and empower the host as well as the traveler more than ever before in the history of the hospitality industry. Globallypeople are working overtime to take advantage internet, in order to catalyze their sales and to improve customer relations.Internet is playing a key role in development of hotel industry today. Social networking sites like Facebook, Twitter etc. are interestingly playing a dominant role in strategies of hotels all over. User generated feedbacks and reviews on such websites play a huge role in popularizing the services of hotels by word of mouth. Further, it also becomes easier to stay in touch with and maintain relationships with ex-clients by making use of online tools.

The number of travelers booking and researching online is growing impressively. According to one research, more than 114 million people will research travel online this year, while 94 million will actually book reservations. While more than 50 percent of travel bookings are made on the Internet, the online travel market has matured and expects modest growth and stabilization.

More and more travelers are using their mobile devices to not only research lodging and travel options, but to book and communicate room preferences directly with the hotel. Mobile channel booking has increased four times between 2008 and 2010 according to Forrester Research. Google is projecting that mobile will overtake PCs as the most common Web-access device by 2013. With travelers adopting smartphones and tablets at such a rapid pace, it’s crucial for hoteliers to optimize their website for mobile usage to capture potential mobile transactions(RobertRauch,2011).

About a decade ago, hotel industry was much more concern on people who are now mostly in their 50s and 60s but now hotel industry has started to anticipate a group of travelers who are in their 20s to mid-30s and are very important for economic growth. They are more attracted towards technology, social media and design. Many hotels are renovating their existing hotels or introducing new ones with free hotel wide Wi-Fi connections, large & welcoming lobbies with modern age ambience, comfortable fittings, state-of-the-art fitness areas; in-room power consoles to plug in iPads, laptops and other devices; and stylish bar. Some are also coming up with night social events, like happy hours and free wine tastings, aimed at attracting smartphone generation to their hotels . The changes involves higher-quality beds, brighter lighting and bigger work spaces. And those travelers were loyal to brands that offered reliable, comfortable services. Wi-Fi service is not only demanded but expected. High-speed Internet is as essential as beds and towels (Janet Morrissey, 2012).Younger travelers tend to visit three or four different restaurants and bars a night, so hotels are opening up multiple bars and lounges with different themes at different times of the day to attract new crowd . Many many new concepts are which offers free daily events, including tea tastings, yoga sessions and wine tastings etc.(Stowe Boyd, 2011).

The Arrabelle at Vail Square is implementing IntelityICE (Interactive Customer Experience) mobile technology for guests to use on Android, Apple smartphones and tablets. The Arrabelle’s traditional amenities, from in-room fireplaces to snuggly robes, will be complemented by the arrival of the most innovative, modern in-room technology available.After simply downloading the ICE app, all of the hotel’s services can be accessed directly from the palm of a guest’s hand. At the touch of a finger, guests can make a housekeeping request or look up information about the hotel and local attractions. They can also conveniently view signature dishes, like Executive Chef Douglas Dodd’s lobster mac and cheese, available at Vail’s hot new food and drink spot, Tavern on the Square (Hospitality Technology, 2011).

Breadcrumb, an easy-to-use, powerful and affordable iPad point-of-sale (POS) system helps hotels to run their restaurants, bars and cafes more effectively. Breadcrumb combines intuitive and sophisticated software with outstanding support. Breadcrumb removes the complexities, frustrations and high costs common to legacy POS solutions. Breadcrumb streamlines all activity at local restaurants, cafes and bars, from taking and placing orders, to table management, payment processing and analyzing sales so merchants can learn about and improve their businesses.Servers can search for menu items or rearrange tables with a finger swipe, software updates are free and automatic, and we even ship new customers an all-in-one Breadbox that contains all hardware required to get started.Everything a restaurant or bar needs to operate more efficiently and deliver impeccable customer service. Breadcrumb has a full range of features that allows hospitality businesses to manage labor, take orders, process payments and analyze performance. Users can merge or split checks, add or adjust menu items, set employee access levels, view real-time sales and labor reports and more.

The Plaza, the landmark New York City hotel located on Central Park South,have taken hotel lodging to a whole new, high tech level began by offering iPads in each of its guest’s rooms.The first hotel in the world to provide not only a tablet for each guest room, but a tablet with Intelity’s ICE (Interactive Customer Experience) software to offer guests services and room controls.These iPads gives the abilities to guests to control hotel services and customizable content.These iPads are incorporated with the functions like to check flights, order room service, make dinner reservations, coordinate transportation, reach the concierge, request wake-up calls, explore destination guides and call a housekeeper (Katie Kindelan, 2011).Intelity has released the highlights of a two-year study of guestroom iPad usage. The first such study conducted using data from actual hotel guest usage.The study showed that 82% of guests used the tablet during their stays on a year-round basis. April had the highest average guest usage at 91% (Hotel Technology, 2012).

The industry’s concern towards security has increased impressively due to severalterrorist attacks worldwide in recent years, and also because of the tourists’ kidnappings, robberies and assaults.Security of all types of hospitality and tourismoperations is critical and plans should bemade for each kind of threat.Personal safety of guests is the first priority (Walker, 2010). Increased security measures have forced hotel industry to upgraded their security measures by investingmillions of dollars in order to give the topmost security to the guests (Hall etal, 2003).

Expectation is one of the most important thing related directly to the guest that the hotel has to know in order to be able to provide the service that fulfill the needs and desire of the guest. It’s the key to know what’s the hotel has to provide in order to make the guest feel satisfy. Before experiencing the service, each guest must have their own expectation. As what Pizam and Ellis had discussed in their research, the meaning of expectation can be describe as “a mutable internal standard which is based on a multitude of factors including needs, objectives, past personal or vicarious experiences with the same establishment restaurant, with similar establishments, and the availability of alternatives.

Besides on past personal experience and other factors have been mentioned, the expectation of the guest can also be based on what’s the hotel had been promised to the guest. Not only that, another factor such as advertisement which is based on external communication can affect the expectation of the guest. For example, the guest who is looking for five star hotels for the accommodation during their holiday will search some particular hotels through the website, brochure, etc. If the advertisement of that particular hotel is very attractive and the physical of the hotel looks luxury and interested, most probably it will build higher expectation to the guest. Halstead (1994) also stated that the guest who, didn’t have any experience before they go to one particular hotel, will rely on external source of information.

H1: Good advertising could probably affect and increase the expectation made by the guest.

Moreover, through the research made by Getty and Thomson in 1994, it is known that “the expectation should be elicited prior to the service being provided; otherwise it will be influenced by perceptions of the actual service being provided.”For instance, the guest may change her expectations during the service encounter and use those changes (perhaps more realistic) expectations as the standard of comparison. Many researchers support that statement because some think that the information that the guest receive during the current service will affect the expectation they have made before the service experience.

Halstead (1993) found that “expectations that are measured after service experience was higher for dissatisfy customers than for satisfy customers.” On the other side, the guest, who has little or no experience of product and service before, will generate little information that leads to lower expectation made on the first time they experience the service. For instance, the guest who has never been stayed in five star hotel will have lower expectation about the five star hotel they are about to stay. This happened because the guest doesn’t know whatare the products and service offered by the five star hotel, the guest just has little information that might be gotten from the advertisement they have seen before.

Though there are differentiations for both the factors influence expectation and the times the guest makes their expectation, but normally the expectation of the guest can be grouped as several parts. As written in the research made by Lewis and McCann (2004), they classifying the expectations that based on what the guest expect from three or four star hotels. Below are the results of the ranking both business and leisure guests expect through their staying in three or four star hotels:

Clean, comfortable bedrooms with all items in working order.

Good quality food and beverages.

Friendly, helpful, polite and efficient staff.

High level of room security.

Speedy, efficient check-in and out.

The data above was made in the research made by Dolnicar (2002) to show that most of people expect to have clean room (including bathroom). Meaning to say that the guestwho are staying in three or four star hotel are more concern to the cleanliness of the hotel. Even the data was obtained through the questionnaire; it can change according to how many star of the hotel. Besides, she had completed her data with the expectation from the business traveler’s hotel expectation by hotel star category. The data is shown below.

*/**
***
****
*****

Good food

8.0%
10.0%

5.6%

3.7%

TV

5.3%
6.0%

2.1%

0.0%

Good service

1.3%

4.0%

2.6%

4.9%

Good location

2.7%

3.0%

2.1%

4.9%

Staff

2.7%
2.0%

1.0%

0.0%

Good value for money

5.3%

1.5%

3.1%

0.0%

Pleasant atmosphere

0.0%

1.5%

3.6%
3.7%

Large room

0.0%

1.5%

3.1%
3.7%

Toilet

1.3%
1.5%

0.0%

0.0%

Cheap

1.3%
1.0%

0.0%

0.0%

Shower

9.3%

1.0%

1.5%

1.2%

Internet

0.0%

1.0%

1.5%

2.5%

High quality

0.0%

0.5%

1.5%

2.5%

Food

6.7%

0.0%

0.0%

2.5%

Comfortable bed

2.7%

0.0%

1.0%

1.2%

Comfort

0.0%

0.0%

0.5%

3.7%

It is shown in the data above that the expectation from business traveler’s hotel expectation is different according to the star of the hotel they’ve been staying at. Both of the data above broaden the factors influence expectation of the guest; star of the hotel and type of the guest are also influence the expectation made by guest. Jonathan D. Barsky also stated that the perception of product or service performance will influence the response made by guest if it combines with the expectation or pre-experience standard. When the guest has no pre-experience standards or expectation, the response of the guest will directly reveal their perception of the product or service experience without being affected by their expectation.

Satisfaction

In hospitality industry, the guest will evaluate more on its service than its product. Quality of service becomes the most important things that the guest will experience and give their valuation through. Since every guest wish to perceive the best service or in the other word; excellent service, hotel has to make efforts in giving them what they wish. The meaning of the excellent service is given in the research made by Berry, Parasuraman, and Zeithami which is a profit strategy because it results in more new customers, more business with existing customers, fewer lost customers, more insulation from price competition, and fewer mistakes requiring the re-performance of services” (1994, pg. 32 Vol 8. No. 2). It is clearly said that through the excellent service, hotel will increase their customer and decrease the lost of the customer. In other words, if hotel gives excellent service to the guest, it will result in having more profit for the hotel itself.However, excellent service will lead to satisfaction of the guest which will cause in the increasing of guest’s loyalty.

When it comes to satisfaction, every guest who feels satisfy with the service given will disposed to be loyal to the hotel. So, it can be said that the satisfaction the hotel wants to obtain from the guest is to gain the loyalty from them.It was said by Jones and Sasser (1995) that “increased customer loyalty is a critical driver of a firm’s long-term financial performance.” Besides, the guests who feel dissatisfied with the hotel will reduce loyalty and the reputation of the hotel through the action they may do after experienced service failure. Therefore, satisfaction is the goal that the hotel wants to achieve. The meaning of customer satisfaction had been written in the article as “a psychological concept that involves the feeling of well-being and pleasure that results from obtaining what one hopes for and expects from an appealing product and/or service” (WTO, 1985). Through this definition, it is known that satisfaction can be obtained by fulfilling guest’s hopes and expectation.

Furthermore, satisfaction is not a definite thing that will go constantly the same; each person will perceive different level of satisfaction even when they are in the same hospitality experience. The reason behind it is that each guest has their own needs, objectives, and past experience that will affect their expectations. Based on this statement, it’s very important for the hotel to know how to measure customer satisfaction.

Of course, the reason for measuring customer satisfaction has to be clear in order to get the right information from the guest. According to Naumann (1995), five objectives that are the reasons the hotel measures customer satisfaction are:

To get close to the customer

It was well explained that the hotel has not only just know but also understand the most important attributes to customer, why those attributes affects customer’s decision making, the importance of those attributes, and get a feedback of how well the hotel perform to deliver each attribute.

Measure continuous improvement

The attributes that are necessary for the customer are linked directly to value added processes in the firm and are put into a form consistent with the internal measurements used to evaluate the process.

To achieve customer driven improvement

Not all customers are from the same source of valuable innovation. This will need creation of a comprehensive database that not only tracks sales, but sources of innovations.

To measure competitive strengths and weaknesses

Perceptions of the customer will be determined by the competitive choices. This is achieved through the possible survey and future customers as well as current and past customers.

To link customer satisfaction measurement data to internal systems (Naumann, 1995, pp.22-7).

Knowing that satisfaction is very important to be learned in the industry especially service industry such as hospitality industry, there have been research discussed about this topic. There have been nine distinct that researchers developed about the theories of customer satisfaction. The nine theories include: expectancy disconfirmation, assimilation or cognitive dissonance, contrast, assimilation-contrast, equity, attribution, comparison-level, generalized negativity, and value-precept (Oh and Parks, 1997). Based on expectancy disconfirmation theory, “satisfaction is caused by confirmation or positive disconfirmation of consumer expectations, and dissatisfaction is caused by negative disconfirmation of consumer expectations.” (Pizam and Ellis, 1999). When the outcomes received by the guest are different from what the guest have been expected, negative disconfirmation occurs.

According to the research made by Yuksel (2001), there is positive disconfirmation when the service performance is better than what the guest had been expected before which lead to the satisfaction of the guest. When service performance is the same as the guest’s expectation, there is a confirmation which still leads to the satisfaction of the guest. Moreover, the guest will feel dissatisfy when the service performance is not good as what the guest had been expected which there will be a negative disconfirmation occurs. At the time the guest feel dissatisfy, it means that the need and wants of the guest can’t be fulfilled by the hotel.

Even though the satisfaction of the guest depends on the service performance and the expectation, minimum tolerable level also give impact to the satisfaction of the guest. Minimum tolerable level is the situation where the guest still can accept the failure that the hotel made. According to Yuksel (2011), “depending on the situation, some of the guests will still feel satisfy when the service performance falls short of their predictive expectation but above the minimum tolerable level.” Each person has different minimum tolerable level as they have different expectation. Basically, this minimum tolerable level can’t be predicted and measured, so the hotel can’t provide the service based on this minimum tolerable level just to prevent the guest feel dissatisfied.

H2: When the hotel can’t meet the high expectation made by guest, they will still feel satisfy if the service meets their minimum tolerable level.

According to Pizam (1999), “Dissatisfiers were more likely to earn a complaint for low performance or absence of a desired feature than anything else. But an operation that exceeds the threshold performance standard apparently will not receive compliments on the attributes.” Meaning to say, the guest can be easily feel dissatisfy of the failures or the small things that not happened smoothly but will be very hard to appreciate the higher performance level achieved by the hotel. For example, the guest will easily feel dissatisfy when they expect the bathroom was clean but they found a rubbish near the basin. However, the guest will not be easily impressed when they expect the room was clean and the hotel provide more than that with decorating the room with a flower.

Service Recovery

Service Recovery was made because it’s impossible to give a maintain service that will never change nor have a mistake. In order to compete with other industries, each has to improve their performance all the time. Not only creating new stuff, products, or refurbished the building but also improving the service. Unfortunately, even there is a significant improvement, mistakes and failures will always be made since there’s no so called perfect service.Through this realized condition, hotel creates recovery service to obtain positive response from the guest.

“Service recovery involves those actions designed to resolve problems, alter negative attitudes of dissatisfied customers and to ultimately retain these customers” (Miller et al., 2000, p.38), and “it includes situations in which a service failure occurs but no complaint is lodged by the customers” (Smith et al., 1999, p. 359). There are always the strategies made before doing the recovery of the service. According to Lewis and McCann (2004), service recovery strategies are the “actions that services providers take, in response to defects or failures, comprise a combination of psychological recoveries and tangible efforts.”

In addition, service recovery strategy is made to avoid bad response showed by the guest after they’ve experienced service failure. When the guest experienced service failure, they may switch their option and move to the competitors, make a complaint that will give bad impact for the hotel if they speak out in public media, and the worst thing; they may use negative words to share about the bad experienced they’ve had. As word of mouth is one of the media that works fast among people, negative words shared by the guest can influence hotel’s profit and reputation.There have been many researches stated that dissatisfied customers might tell ten to twenty people about their bad experience with their colleagues (Zemke, 1999). In order to decrease dissatisfactionthat lead to the negative consequences for hotel, some strategies have to be performed to the guest that experienced service failure as the recovery.

H3: Service recovery strategy will prevent the hotel from the negativeopinion shared by the guest who had experienced service failures.

At the first time the guest chose the place to stay, they have made their expectation and when the guest don’t get what they have been expected or the quality that they evaluate is very poor, the guest will feel dissatisfy. After feel dissatisfy, the guest will either make a complaint or give their feedback to the hotel. From those situations, then only the hotel know that there’s some failures occur.Sundaram, Jurowski, and Webster (1997) had mentioned in their research that “Dissatisfied customers expect that service failures will be recovered when they complain.”

Moreover, there are five broad service dimensions that the guests use to evaluate or judge the service quality. The five dimensions are:

RELIABILITY : The ability to perform the promised service dependably

(32%) and accurately.

RESPONSIVENESS : The willingness to help customers and provide prompt

(22%) service.

ASSURANCE : The knowledge and courtesy of employees and their

(19%) ability to convey trust and confidence.

EMPHATY : The caring, individualized attention provided to

(16%) customers.

TANGIBLES : The appearance of physical facilities, equipment,

(11%)personnel, and communication materials.

Those five broad service dimensions will affect to the evaluation made by the guest. Once one of the dimensions can’t be fulfilled by the hotel, the evaluation from the guest through the hotel will decrease and vice versa. As human being, we will absolutely make a mistake. That’s why the service which is done by the staff will never be constantly perfect. It’s a common thing for a hotel to do some failures to the guest.

However, when some failure occurs, the hotel will definitely do the recovery to enhance customer satisfaction, build customer relationship, and keep the loyalty of their guest. Service recovery strategy is described by Gronroos (1988) in their research as the actions that hotels take in response to defects or failures. The action of recovery strategy is done with the range of doing nothing to do some efforts to fix the problems or the failures occur.

A lot of researchers have made the research connecting with service recovery strategies theme. The summary of the research, about the strategies the hotel do after the failures occur, made by Bitner et al. (1990), Kelley et al. (1993), Johnston (1994), Hoffman et al., (1995), Tax et al. (1998), Miller et al. (2000) and Lewis and Spyrakopoulos (2001), generate the result that the strategies may be classified as :

Apology;

Corrections;

Empathy;

Compensation;

Follow-up;

Acknowledgement;

Explanation;

Exceptional Treatment; and

Managerial Intervention.

Apology is a basic strategy the hotel does after some failures occur. The moment the hotel does some failures, the first action to be taken is to apologize to the guest. When apologize is compulsory to be implemented as a service recovery strategy, the other action needs to be done according to the failures made by the hotel. Berry, Parasuraman, and Zeithaml (1994) stated that even though the guests appreciate an apology, the apology will not make the guest forget the memory about the service failure happened. That makes the other recovery strategy was made to be fit in the type of failures. Even though some strategies may need to be done at the same time, some may not need to be done at all. For example; compensation will not necessary be donewhen the failure occurs is just the small failure such as mention the name of the guest wrongly.

Effectiveness

After service failure occurred, hotel will give the prompt service recovery strategy that match the failure and the guest will react according to what they’ve received. The response of the guest will determine whether the service recovery strategy is effective. Meaning to say, the effectiveness of service recovery strategy can be measured with seeing guest’s response. When the guest feel satisfy with the service recovery strategy given by the hotel, it means the service recovery given was effective. Dissatisfaction of the service recovery given by the hotel is evidence that the service recovery was not effective.

The guest who feel satisfy with the service recovery strategy offered will forget about the failure and may increase their satisfaction level after dissatisfaction occurred. In contrast, when the service recovery offered didn’t match what the guest’s expected, they will feel dissatisfy and may not be loyal to that particular hotel.Other than that, Tax et al. (1998) had mentioned in his research that “even though a customer may be satisfied with the type of service recovery strategies offered, the recovery evaluation might be poor because of the process endured to obtain the recovery outcome.” So, the process how the hotel delivers the service recovery will affect the overall satisfaction of the guest.

However, the service recovery strategies given by the hotel will be affected by some factors. Each strategy may give different result for different people. A man who has been travelling for 2 years will have different expectation and will have different result in receiving service recovery strategy than a man who has never been for travelling. Many researches about the effectiveness of recovery strategy were built upon this kind of situation. Further, factors that influence the type and effectiveness of service recovery strategies are :

The service (e.g. Mattila, 2001);

Purpose of purchase (e.g. McDougall and Levesque, 1999);

The failure (e.g. Smith et.al, 1999);

The magnitude of the failure (Kelley et al., 1993; Smith et al., 1999; Michel, 2001; Mattila, 2001);

Previous experience with an organization (e.g. Tax et al., 1998); and

Service recovery expectations (e.g. Miller et al., 2000).

When the hotel offered one of service recovery strategies, they have to choose the right strategy that can possibly increase guest’s satisfaction. Magnitude of the failure will definitely affect the type and effectiveness of service recovery strategy. For example; hotel has made the failure throughthe bad temperature of the food given to the guest. Since it was a small failure, the recovery strategy given will be different from the time the hotel did big failure such as; the room where the guest stayed wasn’t clean. According to Zemke (1999), only the guest themselves who can describe and tell how annoying is a particular service failure has been. Miller et al., (2000) stated that if the failures made by hotel are very serious, it will later require more drastic reparation. That will make service organization need to train more of their front-line employees so they can be able to handle the guest’s complaint and asses their situation correctly.

Moreover, service recovery expectation also gives big impact on the effectiveness of recovery strategy. Kelley and Davis (1994) found that the guest who rated highly for the service quality will mainly have higher expectation on service recovery strategy. It can be understood by the guest to have a better service recovery on five star hotel that to have service recovery by four star hotel. In other way, it can be said that the quality of the hotel will surely affect the expectation of the recovery strategy.

It is stated by Hart, Heskett, and Sasser (1990) that the main reason of the guest dissatisfaction is the problem resolution which can’t satisfy the guest and up to 50% of the guest who experience service failure not feel satisfy with the recovery strategy (Best and Andreasen, 1976; Zeithaml, Berry, and Parasuraman, 1990). Based on this situation, hotel has to follow up the guest to make sure that the service recovery they have made was successfully increasing the satisfaction of the guest. After the hotel has given the recovery strategy to the guest, they will not know the response of the guest until they follow up their guest and receive their evaluations.

Giving the service recovery to the guest for the first time when the hotel made some failures will not always give the same result on the guest for the second time. When the first time the hotel made mistakes, some guests can be offered the minimum service recovery strategies or another service recovery strategy depends on the failures made by the hotel. That can reduce dissatisfaction of the guest, but it will give different result on the second, third, and on the next arrival. On the second arrival, the guest may not be able to accept the same way of service recovery strategy they’ve ever offered. With the same recovery strategy given by the hotel on the second time with the same service failures experienced, the guest may not feel satisfy.That’s why, the evaluation and feedback is needed to know the guest’s response.

Of course there will be more advantages on hotel when they can successfully give service recovery strategy that match the failure they’ve made. First, they can get loyalty from the guest. “Loyal customers are those who continue to stick with an unsatisfying product/seller with the hope that things will soon improve (Boshoff, 1997; Hirschman, 1970).” When the guest feel satisfy with the service perceived, they will be loyal to the hotel and willing to come for another time. Loyalty of the guest will directly impact the profit of the hotel. It will lead to the increasing of the profit of hotel.

Besides the loyalty and profitability, the effective recovery strategy can prevent the spread of negative word of mouth that is believed to be the most important post-purchase behavior. “Service entities could increase their profits up to 85% by reducing the customer defection rate by 5% (Reichheld and Sasser, 1990).It has been proved that word of mouth has an effective power in spreading their opinion as a free advertisement tools. So, if hotel make the guest satisfy, the advertisement via word of mouth will be very useful to be used for spreading good advertisement. In the other way, if the hotel make the guest dissatisfy, the advertisement via word of mouth will not be useful anymore. It will even give bad impact to the hotel and may decrease the profit of the hotel.

The last thing, when the hotel can handle the complaint of the guest and give the best service strategy match with the failure was made, they can build the trust from the guest. Moorman, Deshpande, and Zaltman (1993) defined trust as the “willingness to rely on an exchange partner in whom one has confidence” (p. 315). The moment the guest trusts the hotel, the guest will willing to come again to the same hotel. The trust built by making the guest satisfy can also make the guest increase their minimum tolerable level.

Both loyalty and trust will give long term benefit for the hotel. Basically, when the hotel had successfully build trust in the guest, loyalty will directly follow. As the guest has trust the hotel, they will be loyal to that particular hotel. They will feel safe and comfortable with the hotel because they have trusted that the hotel will do their best to provide and deliver the best service.

It is proved by Gilly (1987) that the guests who experience the service failure and did complainthen feel satisfy with the service recovery given, have higher repurchase intention than the guest who already satisfied with the service and did not complain.

H4 : “Guest expectation will be higher after he experienced service failure and offered recovery strategy.”

The main purpose of this thesis is to embark on seasonality research in Azerbaijan, which has been neglected due to several reasons, for example, lack of sufficient data and interest from the industry. The lack of prior studies regarding seasonality in Azerbaijan furnishes originality to this thesis. The research seeks to find out seasonality patterns in Baku, the causes and effects of seasonality and possible actions against it. It must be also noted that Azerbaijan is at the beginning of tourism development and seasonal patterns are likely to change over the years thanks to huge investments and far-reaching changes.

5.1 General findings

In order to prepare theoretical foundations of the research, a wide-ranging literature review has been performed. Main causes of seasonality – natural, institutional and other factors were elucidated. The impacts arising from seasonal patterns were depicted. At the end of theoretical groundwork management strategies were given. Such theoretical foundation helped later to investigate the seasonality patterns, causes and effects and develop a strategy in Baku against seasonality.

Having established conceptual framework, an empirical study has been undertaken in order to explore seasonality in Baku. The research area, Baku, Azerbaijan was introduced. In order to answer raised questions, a survey with both quantitative and qualitative questions was designed. The questionnaire was emailed to a total of 83 accommodations and resorts operating in Baku. However, 27 emails were bounced back and considered as non-delivery. 12 respondents filled in the questionnaire and returned. In spite of low response rate and reluctance of businesses, the answers provided important data which facilitated addressing the research problem.

The survey revealed many facts which were not clear before this research. Based on survey results, the research questions were answered. It was found that autumn, spring as well as Novruz holiday was peak season for accommodations in Baku. Summer, winter and New Year break are low demand season. Most accommodations operating in Baku do not suspend their operations in off-season period. However, their income substantially falls. While majority of accommodations increases prices in high demand season, slightly less than half keep the prices the same. Pricing is also used in low demand season, this time through reductions. It must be noted that most respondents found price decrease practical for tackling with seasonal fluctuations. Though not expected, none of respondents dismiss employees during low seasons, as they do not hire temporary workers but keep stable personnel. The results also cleared that contrary to the underlying assumptions, seasonality does not affect the quality of services in accommodations in Baku. It was discovered that the accommodations do not have any special offer or strategy regarding seasonality, apart from price decreases, which should be counted as discount rather seasonality measure.

The main causes of seasonality in Azerbaijan were also established. Climate and weather patterns and also tough competition with other countries were found as crucial factors. A possible strategy against strategy should include price decrease from businesses, offering new services, finding new markets and also government support to tourism businesses, which can take place in different forms, such as tax cuts, loans, marketing activities abroad and etc. Furthermore, the government should diversify tourism services in Baku and all over the country, and especially develop winter tourism. Though Azerbaijan is already offering sun and beach tourism, the quality and environmental issues do not permit attracting huge number of international tourists. Government can also play a role in scattering holidays throughout a year and avoid high seasonal concentrations. Besides, seasonality can also be positively utilized for educational purposes, especially given the fact that most tourism personnel lack adequate training in Azerbaijan.

The overall impression from survey is that Baku experiences a medium level of seasonality. There are many facts that justify this statement. First of all, the businesses did not unanimously consider seasonality as a problem for themselves. One fourth of the respondents either did not agree or were uncertain. Secondly, the overwhelming majority do not shut down during low seasons. Thirdly, employee dismissal, which is deemed as serious problem arising from seasonality does not take place in these accommodations. And finally, these businesses did not confirm the negative impact of seasonality on the quality of their services. All these arguments provide ground for the conclusion that Baku undergoes only an intermediate level seasonality. The reason is that Baku as a city has many advantages. It is a capital city, with the biggest international airport, and also business centre of the country. The city has a lot to offer to tourists due to its cultural and historical heritage as well as location. It can also be argued that the tourism potential of Baku has not been properly utilized. For example, though Baku can be an international sun and beach destination in summer, it is far from this. Even international tourists prefer travelling to Baku in spring and autumn in order to avoid high temperatures.

The findings of this thesis can be used both by academic circles and also professionals. This study can serve as a source for researchers, especially for those who investigate seasonality or explore tourism in Azerbaijan. Seasonality is closely related with demand forecasting. By exploring the subject matter the businesses can also benefit from seasonality research in many ways. For example, the businesses can roughly calculate guest numbers based on demand forecasting, take steps to lower the imbalance between seasons.

5.2 Limitations of the study and further research

The research has come with several limitations. First of all, the survey was carried out only among accommodations and resorts. It is obvious that the list of accommodations operating in Baku is not complete, though the one used is much more wide-ranging and broad in comparison with other sources. Albeit email was sent to 83 businesses, 27 of them immediately bounced back and the same happened with follow-up emails. Some of these emails were traced to other sources or the website of accommodation, if any. Moreover, while tabulating results, 56 accommodations were taken as whole surveyed population.

Secondly, the results of survey among accommodations cannot be easily generalized to the whole tourism industry of Baku. Therefore, the findings of this research may not agree with the results of similar survey among other tourism businesses in Baku. Especially tour operators and travel agencies can bring about a totally different seasonality patterns, causes and effects. While the use of accommodations by local people is likely much lower than international visitors in Baku due to high prices and stay at relatives’ place, accommodations mainly provide information on inbound international tourists. However, tour operators and travel agencies operate different kind of businesses throughout country. Their services are widely used by outbound tourists, which in this case are local people. Since the seasonality patterns between inbound and outbound tourists can considerably differ, there is a probability that the seasonality patterns of accommodations can also significantly disagree with that of travel agencies, tour operators and other tourism businesses.

Thirdly, the answers to the quantitative questions were of nominal and interval scale. However, these scales do not provide precision for making a decision (Colton and Covert, 2007, p. 80), such as determining the level of seasonality.

Finally, although the respondents have in most cases shown their names and positions while returning the questionnaire, it is unknown that to what extent the answers are correct. Names or even positions do not tell much about the knowledge or capacity of the person who filled in the questionnaire. Therefore, a close look at the businesses such as face-to-face interview could provide more reliable data. Furthermore, since respondents usually show reluctance with regards to qualitative questions, quantitative questions with answer options were extensively utilized in questionnaire. However, in order to make in-depth analysis of the issue, qualitative methods should be in place. But comprehensive qualitative answers could be obtained through interviews instead of email attached questionnaire. Moreover, a higher response rate could be achieved in case of interviews.

Apparently, a totally different seasonality pattern could be found out in other regions of the country. Hence, the results cannot be extended other locations. However, there is an utmost need for raising seasonality issue and addressing this concern in regions, even more than Baku. Other cities and tourism spots are likely to incur a higher seasonality level than Baku, as they attract less international tourists and focus on summer tourism activities.

Further research should be done to exactly calculate the seasonality level in Azerbaijan, Baku and other regions, based on the monthly data provided from the State Statistics Committee, when available. Most researches on seasonality are quantitative and ascertain seasonality level by computing Guini coefficient, seasonality ratio and/or coefficient of seasonal variation. However, to date the tourism figures have been collected on a yearly basis rather than monthly in Azerbaijan. Therefore, exact calculation of seasonality is currently not possible. Furthermore, decomposition based on country of origin and other criteria should be performed, which will help to tailor a strategy in accordance with more detailed seasonality patterns. Subsequently, the effectiveness of these strategies can be examined in other studies. A research on forecasting tourism demand would also be very useful, particularly for businesses.

TOURISMIntroduction

Tourism is one of the fast growing industry in the world. When considering India, undoubtedly there is an unlimited scope of tourism development in the South Indian state of Kerala which would definitely bring up the economic growth of the country. There is a high degree of widening the service in this industry with the help of technology and infrastructure in connection with the globalisation process. I am going to examine the scope and opportunity of developing the tourism in Kerala, focusing and exploring its natural resources and cultural inheritance and the very traditional nature of simplicity and service.

In order to promote the tourism industry there must be a quality service everywhere from the point of traveller’s arrival to their departure. Every tourist should feel homely and comfortably and would feel that they got some exotic and exited experience in their life to keep for their rest of the life. The people, culture, custom and etiquette, all need to be watched and monitored by the authority so that every tourist will get the maximum comfort and enjoy their time in Kerala. There should be different and skilled human resource to cater the variety of their need in time with good quality. To unravel scope of the tourism and enjoy the benefit, there must be suitable approach and attitude form the government to address the issues involved in the tourism industry. Kerala is bestowed with its beauty of nature and heritage. If it is maintained and measures are taken to present Kerala in a grand appearance, then it would bring an unbelievable future.

To help and promote the tourism and other related activities, the national policies on tourism had been introduced in 2002.

The travel and tourism sector faces a lot of challenges. The terrorists give a big threat to the industry globally. After September 11, 2001 terrorist attack on the World Trade Centre, Indo-Pak Boarder tension, 26/11 Mumbai terrorist attack and threat to the different region in India, there is a considerable negative growth of the influx of tourists in India.

There is quality tourism with Kochi centred resort as the most popular. Kerala is rich in culture with full of colourful and unique art. It is said to be ‘God’s own Country’ and it is the one of the finest tourist spot in the world. Kerala has won the popularity as a tourist spot and became one of the important tourist destinations in the world.

Kerala is outstanding for its beaches, backwaters, warm weather, hill stations, waterfalls, wild life and Ayurveda (an indigenous branch of health care and herbal treatment). Variety of year round festivals and the diversity of flora and fauna make Kerala a unique destination.

The tourism in Kerala contributes a major role in the growth of the economy that empowers and generates the job opportunity and development of infrastructure. There is an incredible chance to develop and integrate tourism circuits based on India’s civilization, heritage and culture in association with private sector and other agencies.

The tourism industry in Kerala is focusing in delivering a high quality service to its guests. Kerala Tourism Development Corporation(KTDC), District Tourism Promotion Council, Bekal tourism Development Corporation(BTDC), Local Government and Private sector are the major active organisers of the Tourism in Kerala.

Kerala has got cosy and comfortable guest houses and tourist homes which are run by the government and the private parities. The accommodation for tourists are provided in hotels, resorts etc according to their interests. Star hotels are available at most of the towns in Kerala and the service offered is excellent and they are worth for its value. Kerala is always keeping its heritage and culture which is famous for its hospitality. There are well trained and skilled tourist guide who are trusted and presenting a valuable job for the tourists.

Kerala Tourism Development Corporation is keen at dealing with the promotion of tourism with its innovative strategies of management.

Participation in Trade fairs

As Kerala, a marvellous Tourist Destination which can offer a lot to the travellers to their mind and body, a world class tourism destination , the Department of Tourism want to promote the industry in a large scale focusing on the service quality and the infrastructure related to its function in every aspects. The Department of Tourism participated in national and international trade meets along with private sector and organised road shows and events.

Kerala Brand

Kerala has been branded as one of the most famous destination in the travel and tourism industry. There is a wide scope of marketing and all possible strategies are being taken to promote the tourism in kerala. A great deal of this is due to proactive marketing. The experts are keen at developing its physical, ecological, cultural and social structure as a whole. The Tourism Development Corporation is engaging in constant reviewing and taking ample decision and taking appropriate policies and procedures for its overall developments.

Infrastructure

The infrastructure is one of the unavoidable elements which influence or affect the tourism industry .The infrastructure promote the tourists attraction a lot. Majority of the tourists are seeking for a hassle free travel and mind free leisure time with all the facilities they wish to have. If travellers are facing difficulties in their travel and accommodation, there should be all the things need to be in hand. The availability of quality infrastructure is very critical in the tourism system. The Tourism industry in Kerala promotes a lot of activities which are interesting to the tourists. All activities are in relationship with the building up of world class tourism infrastructure facilities like tourism accommodation, transportation facilities, proper water system and lighting system etc. Apart from these, there must be a systematic network to make a move on the tourist in a comfort based manner. There should be appropriate information at all the information point where people can access information about everything under the sun in Kerala. It is essential to have the tourists to guide to their destinations and needs.

ROAD SHOWS IN NEW MARKETS
Tourism Events

The Tourism Development in Kerala is keenly interested in promoting the tourism by finding new ways to promote it and it is adapting new strategies and policies. There are so many series of events that are being carried out to attract more tourists through Meetings, Incentives, Conventions and Events like MICE destination etc.

There is a great deal of importance in locating the destination Kerala for its specific features of beautiful Beaches, Backwaters, unique and indigenous Ayurveda , Wildlife , Hill stations and cuisines. There are a variety of rare highly productive products like village tourism, Heritage tourism, Eco tourism and medical tourism.

New Products Development

Kerala has got a lot of high profile products which are uncommon and most of the tourists seek and would like to experience its rarity. Kerala has got to offer Medical tourism and a lot in the Health care sector to attract tourists.

It is a fantastic destination for the people who are interested in bird watch for Avian Tourists.

In addition to the backwater exploring events, Kerala has got to offer a lot in Avian tourism to attract the birdwatchers from across the globe. There are large varieties of treat for the visitors waiting in Kerala. The plantation based tourism is highly promoted. Kerala is famous for its ancient buildings and tree houses which are generally a typical house which is built on the top of the tree named ”Erumadam”.

‘Kalamandalam’ an organisation which is rich in its own traditional and very original ‘kadhakali’ which is a typical dance which is performed only in the State of Kerala which attracts tourists with its own colourful rich classic dance mainly based on expressions.

Eco – Tourism

Kerala is showing keen interests in the tourism process and activities which is more or less given priority to its environment. It is aiming at conducting the tourism activity in relation with the ecological condition of the region and it has been introduced much advanced strategies for developing the concept of Eco-Tourism in the recent times. The basic norm is to deal with ‘green’, conservation, preservation and concern with its sustainability. As the word Eco stands for the ecology it has a strong link and relation between living organism and their environments, thus linking tourism with the environment and it is directly linked with the tourism development and environment.

Increasingly, ecotourism is being defined as a nature oriented travel that promotes conservation and resource protection and also adds to the local economy. Thenmala and Wayand are good examples for the major projects undertaken under eco tourism.

The Thenmala project is the one of the very pioneering planned eco tourism which is managed by the country. The Department of Forest help the tourism department to give the infrastructure facilities to promote these activities in connection with the eco tourism Forest Department, the infrastructure facilities have

been created at Palaruvi. The management of tourists

to the falls is done through the Vana Samrakshana

Samithy,(Organisation for conservation of Forest). The eco tourism is the different approach and recent introduction in the tourism industry in Kerala .The project is promoting tourism at the Periyar Tiger Reserve at Thekkady in Kerala. The Ministry of Environment is concentrating and proposing a lot of project to develop the eco tourism at Periyar.

India Eco development programme ‘Tiger Trail’ project was launched at Wildlife Sanctuary. The project focused on conservation of fauna and flora of the area where the local inhabitancies were given dominant role to monitor the activities which could lead to protect its wild life and the flora. The deep knowledge of the locals were used to make use to protect the eco system. Besides the Tiger Trail, other ecotourism products of the Periyar Tiger Reserve are; Bamboo Rafting, Day Trekking Programme, Tribal Heritage, and Bamboo Grove, Jungle Inn and Wild adventures.

Eco tourism is a modern concept in the tourism industry where the explorers take a journey to the nature and enjoy it basically without disturbing the nature through any activities. There is a wide scope on this sector where the industry can invest comparatively less in order to explore the system far and wide. The local people of the immediate environment are involved directly and benefited from these activities and can contribute to this. Their knowledge can be utilised for the educational purpose too.

Training and Developments

Kerala Tourism Development Corporation has started a lot of different training programmes which are aimed at increasing the quality of service in connection with the tourism activities. As communication is a strong key to open the minds and the truth, and English being as an international language, special training were given to the people who are operating and dealing with the international clients .The people who are working in hotel and tourism sector were taught Spoken English and training the basic etiquette of wishing and making the guests happy and comfortable. The increasing potential and the scope inspire the private investment in a large scale in the tourism sector in order to generate more income. The GDP country has been increased by 10.69% including multiplier effect.

Employment Generation

As the Hotel and tourism industry need to deal with direct contact with Human being, there is a great deal of Human Resources are needed for the efficient and productive service in this industry. So is a great opportunity for the people to get employments in Kerala. There is 11.07% of increase in the total employment in the travel and tourism sector. The different sources are concentrating to help provide expertise to deal with the most demanding jobs.

Back Water Tourism in Kerala

The backwaters of Kerala are the most serene and salubrious tourist attraction. It attributes in a great deal to the ‘Gods Own Country’ and have given it the sobriquet “God’s Own Country”. It is said to be the fifty must see places in the world (National Geographic Travel).

The house boats (Kettuvalloms), lakes and backwater and its associated festivals and events make Kerala as an outstanding tourist spot on the globe. The tourism in Kerala generates employment and income in various ways.

The enchanting beauty and exciting events in Kerala at the region where backwaters would be a marvellous treat for anyone who enjoys the nature and the art of travelling .The cruising in house boat with all the class facilities with indigenous cuisine will leave a legacy in the tourists mind. It is quite rejuvenating and relaxing for their body and mind.

The backwaters in Alappuzha District is the most beautiful location the tourist plunge in to explore the nature by cruising in house boats. There are lot of lakes which treats the tourists with most courteous charms. The Nehru Trophy Boat race is one of the important events which attract the tourists. There is every thing the traveller seeking to gather, the beauty, and hassles free life ,calmness ,serenity , traditional oil massage , Ayurvedic treatments etc.

Kerala Backwaters & Destinations

The travellers would be thrilled with the Kerala’s most precious treasure, the backwaters. The backwaters are located mainly in the region of the districts Allappuzha, Kotttayam, Trivandurm, Kollam and Kozhikode.

The beautiful canals and rivers embellished with the palm trees and the typical life style of the villagers would be a definite treat for every tourists. The Chinese fishing net is a spectacular thing which is still used by the fisherman. There is popular boat cruise operating between Alappuzha and Kollam .The tourist would be thrilled by the captivating beauty of the serene, warm and bright rejuvenating freshness. The very nature of Kuttanadu is an icon of simplicity of life and will be an amazing experience to the tourists. The vast area of paddy field would be definitely a feast for their eyes.

The backwaters have a network of forty four rivers, lagoons and lakes in Kerala . There are 29major lakes on the backwaters and is stretched over a total expanse of 1500 kms. Being the most prominent backwater resource in Alleppy, there are more facilities and infrastructure developed by the Government as well as the private sector .To explore the immediate ambience of the very village of Kuttanadu which has ramification of beautiful rivers and canals every nook and cranny of its land. The greenery, culture, cuisine and the custom would be rare and leave the tourist with a indelible memory of the ‘God’s own Country’.

According to the WTTC, tourism accounted for 13.6 per cent of global GDP, 14.0 per cent of the total world exports and 11.4 per cent of global employment in the year 2008. In 2009, the travel and tourism generates 248 million direct and indirect jobs worldwide, accounting for 10.8 percent of global employment, and contribute up to 12.4 per cent of global GDP .In 2007 there were 76.1 million job generated in travel and tourism industries and this is 2.7% of total employment .It is believed that it would increase by 2.8% and there will 86.6million jobs would be created by 2017 in the travel and tourism sector. It is estimated world travellers will spend over US$ 7,864.3 billion as per estimates of WTTC for year 2007.According to the same estimate; the global travel and tourism activity is expected to increase by 4.7 per cent between 2009 and 2016.

Indian Tourism Industry

The tourism industry is growing at an incredible speed .In the next 5 to 10 years it is expected to generate an income $89.9billion (World Travel and Tourism Council).

The reason for the splendid growth is due to the increase in travellers confidence and expecting GDP over 8% for the upcoming years.

The report has also cited that the growth in number of arrival of tourists in India has ensured a bright year ahead for the tourism industry. The steady inflow of foreign tourists witnessed in the last two decades is due to a number of factors. The vivid Indian culture is imperative in attracting foreign tourists from around the globe to India. The splendid beauty of the virgin countryside and the matchless monuments lures the leisure tourists to the holy land. Moreover the promotion campaigns like “Incredible India” has made India ‘Global’ and helped in boosting the tourism industry of the country. There has been a remarkable growth in the recent years in foreign tourist arrivals

to India due to the various efforts made by the Ministry, India’s campaign in overseas markets. Incredible India is a multi-pronged promotional campaign launched by the Ministry in order to position the country as a preferred tourist destination for the travellers the world over. As a result of all such efforts, India’s share in international tourist arrivals, which was 0.49 per cent in 2005, has increased to 0.65 per cent during 2009. The foreign tourist arrivals has increased by about 65 per

cent from a level of 3.92 million in 2005 to 5.40 million in 2008. In the year 2009, it has risen to 5.90million, registering an impressive increase of around 13 per cent. Similarly, the foreign exchange earnings from tourism have also shown a phenomenal growth from US$ 6569.34 million in 2006 to US$ 7407.82

million in 2007, achieving an increase of 14.6 per cent.

PESTEL analysis of the macro-environment

There are many factors in the macro-environment that will affect and influence the operation and functioning of tourism industry. The government should address the issues involving legality of the operation system and strategies:

Political factors. These refer to government policy such as the degree of intervention in the economy. The policies and procedures of the tourism industry monitored by the government .There will be always debatable issues between the political parties .So is one of the deciding factors whether there is a strong political party leading government to take strong decision in favour of the development of the tourism industry.
Economic factors. These include interest rates, taxation changes, economic growth, inflation and exchange rates. The economic status of the country would affect the tourist.
Social factors. Changes in social trends can be a major issue in the tourism industry .The social environment should be appealing and amicable where the tourist wants to get satisfied with their need as presumably the happiness is the ultimate demand.
Technological factors: The new technologies like information technology have an important role in the promotion of the tourism industry. Online information online booking of the hotel and the boats or any other event which could possibly attract the tourist.
Environmental factors: Environmental factors include the weather and climate change. Changes in temperature can impact tourism. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider.
Legal factors: Certain pertaining stringent rules may obstruct the influx of tourist. The common legal aspect of the country might be an inhibition for the tourist to coup with. So it is important for the decision makers to make laws in favour of promoting the tourism industry.
CONCLUSION

The evaluation of tourism industry unravels the truth that there is a great and incredible potential to explore in tourism industry in business oriented way. The tourism industry would definitely bring up with a considerable income and generate a large amount of employment in the country. The unique product of kuttanadu and its backwaters promising the tourist to satisfy their need with its authentic presentation of houseboat ”kettuvallam”. The industry is influenced by different elements in the macro environment. The sustainable development is definitely controlled of affected by these factors. There is lot of demerit which should be addressed in view of the hosts perspectives. The PESTEL factors influence the industry,

there are recent issues emerged to the people of the kuttanadu with the waste products dumped by the tourists which would damage the environment and it could bring a server pollution to the environment. The use of plastic utensils and other equipment will affect the environment. The plastic products wastage will not disintegrate in the soil, it will destroy the environment. To monitor these factors the model of Eco-tourism should be promoted more emphatically. The tourists are encouraged to have the Kerala cuisine on the banana leaves as the natives do and the Kerala Tourism Development Corporation is promoting this effort.

The tourism industry has got tremendous potential to explore.

The private sector and the government sector are equally interested in investing in the growing industry. The extra ordinary and unique features of the event and nature of the place has got an incredible opportunity to promise to the people of Kerala and the travellers seeking for the peace of mind and body. The culture, heritage, typical arts and geographical features contribute a lot to the tourism industry. More than ever important element is the human resource and the very famous-the epoch making hospitality of the State is making the tourist so happy and excited and once they visit, they would come back with thousands. All the virtues lies with the God’s own Country.

REFERENCE
R Harris,T Griffins, P Williams., 2002 Sustainable tourism a global perspective 2nd edition, Elsevier Science Ltd.
C Cooper, J Feltcher, A Fyall, D Gilbert, S Wanhill., 2008 Tourism principles and practices 4th edition, Prentice hall.
http://wayanad.nic.in/index.htm
http://www.tandf.co.uk/journals/rsus
http://www.kabani.org/index.php?option=com_content&view=article&id=58&Itemid=69
http://www.visitscotland.org/about_us/our_focus/sustainable_tourism.aspx
http://www.wessex.ac.uk/10-conferences/sustainable-tourism-2010.html
www.keralatourism.org.
www.wttc.org
www.tourismofindia.com
http://www.bharatonline.com/kerala-backwater- tours/index.html

This chapter is divided into eight sections. The first section is the background of research. This section is focusing on how the environment impacts influence the domestic tourist satisfaction. The issue of problem statement related to the haze and marine pollution affects domestic tourist satisfaction in Malaysia. The objectives, hypotheses and research questions are then highlighted in the section third, fourth and fifth. The sixth section explains the significance of the study and research. Subsequently, the scope and limitations of the research explain the scope for the research area and limitations of conducting the research. In addition, some definition of terms is highlighted in section seven.

Background of research

According to the United Nations World Tourism Organization (UNWTO), the tourism industry is one of the fastest growing industries in the world. Tourism industry relied highly on healthy and quality environment (Honey and Krantz, 2007). The significance of environmental factors to the health and well-being of human populations’ is increasing dramatically (Rosenstock 2003 and World Health Organization 2010b). Environmental pollution has become aproblem worldwide and has great influences to the health of human populations (Fereidoun et al, 2007; Progressive Insurance, 2005.). Pollution reaches its maximum proportions in the densely settled urban-industrial centers of the more developed countries (Kromm, 1973). Tourist satisfaction is one of the most relevant areas of research for tourism industry ( Petrick 2003; Prebensen, 2006), most satisfied tourists tend to transmit the positive experience to third persons as well as repeat patronizing to the tourism location (Hallowell 1996; Kozak&Rimmington 2000; Pizam 1994).

Statement of problem

Since, the environmental issues such as haze pollution and marine pollution influence the domestic tourist satisfaction. Therefore, marine life destruction rate are increasing and the haze pollution affect the health for the tourist. So, it can be seen the domestic tourist choose either going to travel in domestic country or not. Thus, in this research is to investigate the environmental impact affect the domestic tourist satisfaction.

Research Objectives

This research is sought to investigation of haze and marine pollution affecting domestic tourist satisfaction in Malaysia. The main objective is:

To examine environment impact towards destination Image.

To examine environment impact toward destination loyalty.

Research Question

The objectives and direction for this study, the below are the research questions:

How to examine environment impact towards destination Image?

How to examine environment impact toward destination loyalty?

Figure 1.1
Research Hypotheses

When the air pollution from haze increases, it will reduce destination image.

When the water pollution from sea increases, it will reduce destination image.

When the air pollution from haze increases, it will reduce destination loyalty.

When the water pollution from sea increases, it will reduce destination loyalty.

Significance Research

Significance for this research done is to study the haze and marine pollution affects domestic tourist satisfaction in Perak. Also, this study also intends to know tourist perception toward pollutions affect tourism in Perak.

Scope and Limitations of Research

The scope of this research is focusing the respondent in Perak area in Malaysia. The respondents who answer this survey are student, worker and so on. The limitation of this research is the limited number of sample size which is 100 people only, also respondent of this survey is limited to tourist within Perak area, to acquire a more reliable and relevant data, more respondent should be involved into this survey as well as respondent from other area such as Kuala Lumpur and Sabah, Sarawak. Other than that, the lack of previous information on relevant topic, only a small amount of data available for reference. Also, the rarity of haze event in Malaysia also affect the data collected, some tourist never experience haze problem in tourist destination before thus is not able to provide their opinion.

Operational Definition of terms

Tourist Satisfaction

Kozak and Rimmington (2000) Yoon & Uysal(2005) San Martin et al ( 2008) define that tourist satisfaction is a good pointer of purposes to revisit and recommend to others.

Image

According to Crompton (1979) image defined as ideas and impressions that a person has of a destination.

Loyalty

Oliver (1997) defines loyalty as a promise to repeat purchases of a preferred product or service every time.

Summary

In this chapter introduce the research have been done. Write out the hypothesis and the objective. In addition, statement the problem during the research.

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction

The purpose of this report is to describe how the research is done, how to measure the steps forward, and what to compose the success. The research area is conduct the research design, population and sample. The research instrument used to collect data, such as approaches to maintain reliability and validity. Other than that, this report also explain the reason of selecting the organizations, data sources, research analysis, data collection and analysis, analysis summary of the expectation for research.

3.2 Research Design

A quantitative research is chosen. Hoepfl (1997) define quantitative research use investigational methods and test the hypothesis. Quantitative research emphasizes the measurement and analysis of causal relationships between variables (Denzin and Lincoln, 1998).

3.3 Research Subjects

The main respondents for this research are the domestic tourist in Perak. The Population is focusing in Perak. This research is using the convenient sampling. Convenient sampling are selected because convenient accessibility. The researches are taking about 100 tourists in Perak.

Table 3 Demographics Respondent of data

Choice
Frequency
Percent
Gender

Male

54

54.0

Female

46

46.0

Total

100

100.0

Age

Below 18

9

9.0

18-22

44

44.0

22-25

40

40.0

Above 25

7

7.0

Total

100

100.0

Marital Status

Single

92

92.0

Married

8

8.0

Total

100

100.0

Education Level

Certificate

9

9.0

Diploma

38

38.0

Advanced Diploma/ Degree

52

52.0

Master/PhD

1

1.0

Total

100

100.0

3.4 Instrumentation

In this research instrumentation is design the questionnaire. This questionnaire is divided into three parts. Part 1 (environmental impact) consists of section A to examinethe environmental impact affecting the tourist satisfaction. Section B to examine the marine pollution such as littering and broken bottles, discharge wastewater flow, and untreated sewage disposal pollute sea water. Part 2 (Tourist Satisfaction) consists of Section A to collect factor are the image of tourist destination such as service quality, product, price and location. Section B to collect the factor will affect the loyalty of tourist towards the tourist destination such as repeat purchase, repeat visitation and recreation service. Part 3 is to collect the demographic profile such as age, education level, marital status and gender. Part 1 and part 2 is chosen the liker scale to measure the respondents to indicate their own attitudes by checking how strongly they agree or disagree with the question. Part 3 demographic profile is to gain better understand in term of background of respondent. After design the questionnaire, questionnaire is first launch aspilot test to determine whether the questionnaire is suitable for the research and to ensure that the respondent fully understand the guideline and how to complete the questionnaire.After this give the respondent to check the question. This step is to obtain feedback from respondent and help to improve weakness in the questionnaire such as loaded question, double barreled question; typing errorand misunderstanding of question. Fixing all the error occurred and after that, upload the questionnaire using Google online survey and finally distribute the questionnaire to the respondent.

3.5 Research Procedure

This research use various way of collecting the data such as online survey, email survey and social network. The questionnaire is designed as the link to send the respondent to answer the survey. After finishing the survey, respondent will send back the result. This step need wait around three and four days to complete collect the data. When complete the data survey, the data collection and data analysis to get the result. In addition, questionnaire survey is conducted to evaluate with the hypothesis. The evaluation between the independent and dependent variable of this research is to measure the effect.

3.7 Data Collection

In this research, the questionnaire is the primary data for the researcher is using the Literature review. Literature review is collecting the Secondary data from other researcher. Data collection was done to the respondents who are the domestic tourist in Perak. 5 to 10 minutes for the respondent to fill up the questionnaire. The responses are strictly confidential and will only be used for the data collection procedure with the explaining the objective for the research. Lastly, the questionnaire will be collected and do the data analysis as well.

3.8 Data Analysis

After data was collected it was done to analyze by using the Statistical Package for Social Sciences (SPSS) software. Data was analyzed by using descriptive statistics. The hypothesis and objective are used to test in the SPSS software.

3.9 Summary

The research used the quantitative research and Google online survey to design the survey.Therefore, this research is describing the research methodology such as population, sample, data collection and data. Research subject is to focusing the main respondent for the research. Therefore, Instrumentation is tomeasure the validity and validity of the study. Research procedure is the way to collect the data and distribute the data. After that, get the result and do the data analysis to test the hypothesis and objective.

CHAPTER FOUR
RESEARCH FINDINGS
4.1 Introduction

The purpose of this research is testing the results that have found in the research questions. This research finding is to find out how the researches are reflects. It also to be known that the change from the current knowledge is carries out. The hypothesis 1, 2, 3 and 4 are test by using The Pearson r correlation coefficient. Cronbach’sAlpha is test the reliable for the question.T- Test use to test the significant difference in environment impact between genders.

4.2 Research Findings

The purpose for the study to do the test is to measure the elements of the question in Part 1 (environmental impact) consists of section A (Haze pollution) and B (Marine pollution). Part 2 (tourist Satisfaction) consists of section A (Quality) and Section B (Loyalty) which is correlated to environment impact affect the domestic tourist in Perak (Refer to table 4.1). The result show Cronbach’s Alpha is 0.913, which is acceptable from 14 items (Refer to table4. 2). This means the data collection is reliable. The mean for each items is range from 1.36-2.17 and standard deviation for each items is range from 0.692-1.107 (Refer to table 4.3). The total mean is 26.89 and standard deviation is 8.618 (Refer to table 4.4).

Table4.1
Item-Total Statistics

Scale Mean if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach’s Alpha if Item Deleted

Visibility of attraction is very low

25.53

70.456

.287

.917

Climate change

24.91

66.349

.562

.909

Haze affect the health

25.06

65.180

.613

.907

Emotional problem

24.72

63.389

.661

.905

There are littering and broken bottles. Such as tin cans

25.01

64.969

.555

.909

There are discharge wastewater flow into the sea

24.99

65.275

.556

.909

Untreated sewage disposal pollute sea water

24.87

61.666

.757

.901

Service quality

25.02

63.979

.679

.905

Product quality

25.08

65.157

.690

.905

Price

24.91

62.206

.789

.900

Location

24.76

61.594

.729

.902

Repeat purchase

25.01

66.092

.491

.912

Repeat visitation

24.93

63.760

.653

.906

Recreation service

24.77

62.405

.677

.905

Table4. 2
Reliability Statistics

Cronbach’s Alpha

N of Items

.913

14

Table4. 3
Item Statistics

Mean

Std. Deviation

N

Visibility of attraction is very low

1.36

.692

99

Climate change

1.98

.795

99

Haze affect the health

1.83

.846

99

Emotional problem

2.17

.948

99

There are littering and broken bottles. Such as tin cans

1.88

.940

99

There are discharge wastewater flow into the sea

1.90

.909

99

Untreated sewage disposal pollute sea water

2.02

.979

99

Service quality

1.87

.877

99

Product quality

1.81

.765

99

Price

1.98

.903

99

Location

2.13

1.017

99

Repeat purchase

1.88

.918

99

Repeat visitation

1.96

.925

99

Recreation service

2.12

1.013

99

Table 4.4
Scale Statistics

Mean

Variance

Std. Deviation

N of Items

26.89

74.263

8.618

14

For the independent sample T-test was test to use the independent and dependent between the genders and to find out the standard deviation and mean in table 4.5. The total number of 100 respondents answers the survey. 54 people are Male and 46 people are female.

First independent variable is Haze pollution. The result shows that the mean for male is 1.83 and female 1.84. Therefore, male has lower mean on haze pollution mean. Besides, the standard deviation for male is 0.761 and female is 0.422.

Second independent variable is marine pollution. The result shows that the mean for male is 1.88 and female 1.99. Hence, male has lower mean on marine pollution mean. In addition, the standard deviation for male is 0.93 and female is 0.734.

The Third dependent variable is image. The result shows that the mean for male is 1.921 and female are 2.0. Thus, male has lower mean on marine pollution mean. Additionally, the standard deviation for male is 0.854 and female is 0.696.

The last dependent variable is loyalty. The result shows that the mean for male is 1.957 and female are 2.021. Thus, male has lower mean on marine pollution mean. Moreover, the standard deviation for male is 0.880 and female is 0.802.

Table4.5
Group Statistics

Gender

N

Mean

Std. Deviation

Std. Error Mean

Haze Pollution

Male

54

1.8287

.76143

.10362

Female

46

1.8424

.42282

.06234

Marine Pollution

Male

54

1.8765

.93004

.12656

Female

46

1.9855

.73352

.10815

Image

Male

54

1.9213

.85344

.11614

Female

46

2.0072

.69563

.10256

Loyalty

Male

54

1.9568

.88084

.11987

Female

46

2.0217

.80247

.11832

Table4.6
Independent Samples Test

Levene’s Test for Equality of Variances

t-test for Equality of Means

F

Sig.

t

df

Sig. (2-tailed)

Mean Difference

Std. Error Difference

95% Confidence Interval of the Difference

Lower

Upper

HazePollution

Equal variances assumed

7.327

.008

-.108

98

.914

-.01369

.12620

-.26414

.23676

Equal variances not assumed

-.113

85.170

.910

-.01369

.12093

-.25411

.22674

MarinePollution

Equal variances assumed

.288

.593

-.642

98

.522

-.10896

.16964

-.44561

.22769

Equal variances not assumed

-.655

97.459

.514

-.10896

.16648

-.43936

.22143

Image

Equal variances assumed

2.520

.116

-.546

98

.586

-.08595

.15749

-.39848

.22658

Equal variances not assumed

-.555

97.826

.580

-.08595

.15494

-.39344

.22154

Loyalty

Equal variances assumed

1.081

.301

-.383

98

.703

-.06495

.16970

-.40170

.27181

Equal variances not assumed

-.386

97.538

.701

-.06495

.16843

-.39920

.26931

4.3 Hypothesis Testing

H1 When the air pollution from haze increases, it will reduce destination image.

The correlations table4.7 revealed that the correlations between haze pollution and destination image is 0.567 with a corresponding p- value of 0.000 based on 100 respondents. The p-value of 0.000 is less than 0.01, there is a significant positive relationship between haze pollution and destination image. There is a relationship between haze pollution and destination image, r (0.567) at p is less than 0.05. Hence, there is a relationship which affirms that the two variables are positively related to population. The coefficient of determination: r the correlation between haze pollutionand destination image of the respondent = 0.567 and r? = the coefficient of determination = (0.567)? = 0.3214. As a result 32.14% of the variance in haze pollution can be explained by destination image of the respondent.

Table 4.7

Correlations

Part1AMean

Part2AMean

Part1AMean

Pearson Correlation

1

.567**

Sig. (2-tailed)

.000

N

100

100

Part2AMean

Pearson Correlation

.567**

1

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

H2 When the water pollution from sea increases, it will reduce destination image

The correlations table4.7 revealed that the correlations between water pollution and destination image is 0.573 with a corresponding p- value of 0.000 based on 100 respondents. The p-value of 0.000 is less than 0.01, there is a significant positive relationship between water pollution and destination image. There is a relationship between water pollution and destination image, r (0.573) at p is less than 0.05. Hence, there is a relationship which affirms that the two variables are positively related to population. The coefficient of determination: r the correlation between water pollution and destination image of the respondent = 0.573 and r? = the coefficient of determination = (0.573)? = 0.3283. As a result 32.83% of the variance in water pollution can be explained by destination image of the respondent.

Table 4.8

Correlations

Part1BMean

Part2AMean

Part1BMean

Pearson Correlation

1

.573**

Sig. (2-tailed)

.000

N

100

100

Part2AMean

Pearson Correlation

.573**

1

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

H3 When the air pollution from haze increases, it will reduce destination loyalty.

The correlations table4.9 revealed that the correlations between air pollution and destination loyalty is 0.469 with a corresponding p- value of 0.000 based on 100 respondents. The p-value of 0.000 is less than 0.01, there is a significant positive relationship between air pollution and destination loyalty. There is a relationship between air pollution and destination loyalty, r (0.469) at p is less than 0.05. Hence, there is a relationship which affirms that the two variables are positively related to population. The coefficient of determination: r the correlation between air pollution and destination loyalty of the respondent = 0.469 and r? = the coefficient of determination = (0.469)? = 0.2199. As a result21.99% of the variance in air pollution can be explained by destination loyalty of the respondent.

Table4.9

Correlations

Part1AMean

Part2BMean

Part1AMean

Pearson Correlation

1

.469**

Sig. (2-tailed)

.000

N

100

100

Part2BMean

Pearson Correlation

.469**

1

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

H4 When the water pollution from sea increases, it will reduce destination loyalty.

The correlations table4.10 revealed that the correlations between water pollution and destination loyalty is 0.354 with a corresponding p- value of 0.000 based on 100 respondents. The p-value of 0.000 is less than 0.01, there is a significant positive relationship between water pollution and destination loyalty. There is a relationship between water pollution and destination loyalty, r (0.354) at p is less than 0.05. Hence, there is a relationship which affirms that the two variables are positively related to population. The coefficient of determination: r the correlation between waterpollution and destination loyalty of the respondent = 0.354 and r? = the coefficient of determination = (0.354)? = 0.1253. As a result 12.53% of the variance in water pollution can be explained by destination loyalty of the respondent.

Table 4.10
Correlations

Part1BMean

Part2BMean

Part1BMean

Pearson Correlation

1

.354**

Sig. (2-tailed)

.000

N

100

100

Part2BMean

Pearson Correlation

.354**

1

Sig. (2-tailed)

.000

N

100

100

**. Correlation is significant at the 0.01 level (2-tailed).

4.4 Summary

In this chapter, the research finding is to test the elements of the question. Cronbach’s Alpha is to measure the question is reliable. Besides, Pearson r correlation coefficient is test the hypothesis and also the t-test is calculated to test the independent and dependent between the genders.

CHAPTER FIVE
DISCUSSIONS, IMPLICATIONS AND SUGGESTIONS
5.1 Introduction

In this chapter is discuss a summary related the findings to the previous research, discussions, theoretical implications and practical implications. Besides that, recommend the suggestions and conclusion for the research.

5.2 Discussions

This research is to measure and test the environment impact affect the domestic tourist satisfaction. The genders will not affect the environment impact of domestic tourist satisfaction. From this research, haze pollution and marine pollution will affect the destination image and loyalty. When the air pollution from haze increase the will affect destination image decrease. Koe et al. (2001) haze pollution caused the visibility of attraction to be low, so destination image will reduce. Shima et al. (2002) stated that haze will bring the unpleasant to the healthy traveler and become a serious problem for asthma sufferers. Therefore, tourist will not be loyal anymore. In addition, when the water pollution from sea increases it will reduce destination image. (Burak et al., 2004) declared that the wastewater generated by tourism facilities also is the reason to reduce the destination image. Water pollution will hazard the health for the tourist and directly reduce the destination loyalty.

5.3 Theoretical Implications

In this research in order to help the tourism industry in Malaysia based on the theory in the previous research. Environmental impact is the serious problem happen in Malaysia. Increased sea-water, sewage waste water, air and litter pollution are the negative impacts of tourism on the environment natural and built (Altinay & Kashif, 2005). The environment impact will affect the tourist satisfaction. For example, Murray Mas (2000) study the environmental impact of tourist activities in Balears, Spain, in an attempt to construct a time sequence for local ecological footprint. In the case of Port Dickson beaches, there are eighty two wastewater pipe lines discharge wastewater including sewage from hotels and houses directly into the sea (Kadaruddin 1997). Wastewaters that are produce and dispersed to the sea by factory had been contributed to the pollution and destroy the scenic views that discourage the tourist to visit the destination again.

Koe et al. (2001) noted that reduced visibility in Malaysia during the 1997 haze episode was because of the long range transport of smoke from Sumatra. Besides decreasing visibility, other potential problems come with haze are impacts on human health (Vedal 1997). Haze will influence the human health such as asthma sufferers. As haze mild affect the health of the tourist which would lead to decrease the tourist loyalty.

5.4 Practical Implications
From the research findings, the result show that the environment impact will influence the domestic tourist satisfaction. Through the study, tourist industry, travel agent, business travel, the society of government by ministry of tourism culture and environment in Malaysia must take action to develop and decide the problem such as local government must implementation of extra public transportation and prohibit open burning an able to reduce haze pollution. In the research show that marine pollution comes from the land. So one of the way to reduce marine pollution is the hotel industry can organize a beach clean-up to reduce the amount of rubbish and the factory and the hotel beside the sea must filter the wastage before flow into the sea. This can help reduce the marine pollution. The tourist industry and travel agent organize the event about the environmental impact such as go green campaign and no plastic bag campaign. Concurrently, this research also will help the hotel industry and tourism industry to enhance the economy in Malaysia.
5.5 Suggestions

Conservation areas should crack under the jurisdiction of littering or destruction of nature. Such as fines, serious will be subject to legal sanctions. In addition, the government should not be stressed that everyone must responsibility to protecting the environment. Tourism and the hotel will also clean cooperation to protect the environment in order to help increase the tourist satisfaction. Moreover, marine and haze pollution decrease it will raise the tourist satisfaction.

5.6 Conclusion

Finally, through this research tested the haze and marine pollution will influence the domestic tourist satisfaction. Domestic tourist will choose the good environment to travel as well.

Dubai is considered one of the most important trading hubs in the Middle East region. Its rapid growth in its major infrastructure elements had attracted many multinational companies across the world to open their regional offices in the city. This had its positive effects on Dubai economical growth as it became a golden gate for regional Middle East businessmen to trade with other international companies. As a result of this, the need for a low cost airline that provides its services for business men within the region had increased. The city experience with the airline industry is not new as it is the home city of Fly Emirates, which is considered one of the best airlines in the region. This industry had its great effect on Dubai economical growth in the past 20 years and will have its strong impact in shaping the emirate future. In March 2008, the second low cost airline was lunched under the name of Flydubai and started its operations in Dubai International Airport Terminal 2 in June 2009. (For more information on Flydubai and its operations, please refer to Appendix 1).

We have defined our relevant market for Flydubai as a low cost carrier (LCC) within the product form level. Being positioned as a low cost national airline carrier, it’s facing a high competition from other national airlines which force the relevant market to be within the product form. (For more information on the relevant market please refer to appendix 2).

This paper will focus on presenting an environmental scan of the airline industry within the Middle East region during the time frame of 3 years (2009-2012). In order to do so, we will identify the significant trends and their consequent implications on Flydubai relevant market. This report will include an in depth review of the macro, micro analysis and its implications of Flydubai relevant market in the next three years.

Body:

In identifying the major key trends in the macro environment of Flydubai, we have addressed several issues that include the political, social and economical trends.

Flydubai was established by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai orders in march 2008 and started its operation in its first flight to Lebanon on June 1st 2009.Being fully owned by Dubai government and enjoy the full facilities offered in terminal 2 at Dubai International Airport, the company is having a competitive advantage compared to its rivals in the market as it enjoy the full government support and airport services. Furthermore, the current government trend in the labor force is towards emiratization and protecting labors rights. Being a part of the Fly Emirates Group, the organization will face no problem in emiratization as it will follow Fly Emirates emiratization strategy. The major challenge that Flydubai will face is being able to offer high paid jobs and reduce its operational costs as it is considered a low cost airline company.

Living in the current financial crises era, Flydubai was established in one of the most difficult time the country economy had faced in the last 25 years. “Falling oil prices, cooling real estate and construction markets, together with a slowdown in the tourism sector, especially in Dubai, means the UAE is expected to post low or possibly negative GDP growth in 2009”, according to analysts (Arabian Business, 2009). This information may be considered negative to many airline companies but it may be positive to a low cost airline like Flydubai as people are now focusing more in reducing their expenses as the incomes are reduced. This means their tendency of consumers focusing more on prices is increasing.

Furthermore, consumer behavior is changing towards low cost airlines especially in the Middle East region as consumers are persuaded by low prices and a better service offered by low cost airlines. According to a study done by Arabian Business website, it was found that 83 percent of the respondents would switch their preferred airline carrier, for a cheaper price, while 17.6 percent believed they would consider alternatives and trade off between the discount and lost air miles. It can thus be inferred that pricing plays a significant role in consumer behaviour and the decision making process especially in the current economic downturn era (Glass, 2008).

According to Dubai department of Tourism and commerce marketing “3.85 million tourists had visited the emirate in the first half of 2009, a five percent increase on the same period of 2008”. This figure strongly shows the current tourism industry market and how attractive it became even though of the current economical downturn. Other figures expect that the number of tourists will fall compared to 2008 figures but most figures have stated that there will be a positive growth in 2010. This figure shows that Flydubai will see a future growth rates in the coming 3 years as terrorism sector restore its high figures after overcoming the current downturn.

As observed by Andrew Cowen, CEO of SAMA Airlines, the market is shifting from the traditional major airlines business travel towards low cost carriers for trips within the GCC. Business travelers are changing their perception of low cost carriers, supported by the current economic downturn and the increase number of foreign businesses within GCC countries entering the UAE. This shows a trend of an increasing demand for low cost carriers in the next three years (High time for low cost carriers, 2008).

(For in depth information on the analysis of the macro environment of the airline industry please refer to Appendix 3)

In identifying the major key trends in the micro environment the following aspects that includes, Customers, Employees, media, shareholders, competitors and suppliers.

Customers who are price conscious are concerned with low cost airlines. Flydubai has focused on pricing strategy and flexibility because these two factors play a big role in determining the customer’s decision process on which airlines they choose to travel with. Moreover, the number of tourist from around the world including the region will grow more than 40% in the next 3 years in Dubai (www.realtyna.com). This shows that there will be increased number of customers who will use Flydubai airlines within the next three years due its successful use of pricing strategy and flexibility.

The Employees of Flydubai have good experiences and they were carefully selected from twelve different nationalities. According to Kenneth Gile, chief operating officer of Flydubai said: “We are extremely pleased with the talent of the pilots we have on board. On average, they each have more than 4,000 hours serving as captain in similar aircraft and a total experience of more than 8,000 flying hours – this is impressive by any standard” (Sambidge, 2009).

Flydubai is fully owned by the government of Dubai and its considered as a part of its mother company the Emirates Group.

The main strategy that Flydubai is willing to use for their marketing strategy is through word of mouth (buzz). This is because Flydubai is a low cost airline; they tend to set low budgets for their advertisements to keep their prices low.

The direct competitors of Flydubai are Air Arabia and Al Jazeerah airlines because these two airlines are also low cost airlines in the same country as Flydubai. However, the major competitor of Flydubai is Air Arabia because, first of all, they are the first to claim about low cost airlines in the Middle East region. Moreover, they hold the highest market share in the relevant market as identified before. Our market share comparing to those two carries are low because Flydubai just recently launched to the market. But, within the next three years we expect rapid growth in the market share because Dubai is a destination for tourists. The major indirect competitor is Fly Emirates which stands as the leader in airline industry in the relevant market and it will keep its performance in the next three years. The second indirect competitor is Etihad Airlines which is growing fast because of the unlimited support from Abu Dhabi government. In addition, those airline carriers make low price offers for the same destination that we have flight lines to.

The supplier of Flydubai is Boeing. Flydubai announced an order of 50 next generation 737 aircraft from Boeing. Sheikh Ahmed bin Saeed al Maktoum said: “The Boeing Next-Generation 737 is ideally suited to our mission to bring some two billion regional inhabitants affordable, efficient and flexible travel options to and from Dubai.”(For more information on the micro environment analysis, please refer to Appendix 4).

Implications:
Primary demand:

Low cost airlines are focusing on customers who are price conscious. The number of customers using the LCC airlines is increasing and it will continue growing in the next three years (www.gulf-daily-news.com). This is because, first of all, the percentage of tourists will increase by 40% within the next three years which shows that the market share of LCC will increase as well. Secondly, because of the economic condition, many people tend to save money and spend it on low cost airlines to travel more to the desired destinations. Users of Low cost airlines contain all different ages and nationalities. Moreover, cost is one of the main factors that affect customer’s ability to buy. The costs of these carriers are low and will continue to remain low in the next three years. This will increase customer’s ability and willingness to buy.

Selective demand

We can define the consumer decision making process as an extensive problem solving level, where they are introduced to a complete new brand with low brand knowledge. So, Flydubai should infusive more on their brand identity through the media and other communication types in order to enrich consumer’s knowledge. Once Flydubai had increased the level of consumer knowledge, we expect huge increase in market share in the next three years because the decision making process is going to shift from extensive problem solving to routine which is low information search about the company. Therefore, we expect major change within the next three year upon the factors we mentioned above.

Segmentation:

As for segmentation we expect to see a rise in the population of the UAE in the following 3 years. According to the electronic portal of Gulf News the population of UAE is approaching six million as of now and it is expected to escalate even further by the end of this year. An increase in construction in the coming years requires more labor to be imported from foreign countries, thus increasing the number of potential customers (low income and middle-class lifestyles) who might want to use our services. Moreover, economic boom can also be a factor for businessmen to travel to and from Dubai more frequently. In addition, the number of students travelling to the UAE for education is expected to increase in the near future; this implies that they will most probably select Flydubai as their primary mode of transport to travel to and from the UAE, since the economic condition shows very little signs of improvement in the near future.

More tourists are expected to arrive in the UAE within the near future out of which a section of them are extremely price sensitive travelers.

Another scenario would be that the current economic downturn continues to effect economies world-wide within the coming three years increasing the number of price-sensitive customers in the eight markets we operate in.

To keep up with the projected demand, Flydubai is planning to increase its fleet size from 5 (currently) to 54 aircrafts in the coming years. An increase in fleet size would allow Flydubai not only to accommodate a large number of clients but also expand its reach in terms of destinations.

Conversely, the announcement of the new GCC rail network which is the new transportation class in our relevant market is expected to have a slight negative effect on Flydubai’s operations in terms of loosing clients that fall in our target segmentation. The GCC rail network and Flydubai have one common destination which is Qatar. Once the GCC rail network begins its operations there is a high possibility of losing out on our current and potential clients. (For more information on segmentation please refer to appendix 5).

Competitor analysis

Our major competitive in our relative market is Air Arabia and then Al Jazeera Airlines. Air Arabia is holding major market share because they are the first to claim about launching first low cost airlines in Middle East region. However, Flydubai can compete with those two direct competitors when we focus on our competitive advantage which is price leadership. Also, location is another important factor due the number of travelers that are using Dubai Airport comparing to Sharjah Airport. In addition, being part of the Emirates Group will add more value to Flydubai brand equity which will make it easier to make customers shift toward our company within the next three years. (For more information on competitor analysis, please refer to Appendix 6)

Conclusion:

In conclusion after analyzing the environmental micro and macro trend for Flydubai, we observed that there are two major changes in our relevant market. First, the increase of the tourism level in Dubai as we expect the current economic downturn era to change its direction towards positive figures in the next three years. Also, the companies’ holders and businessmen attitude towards low cost airlines is changing by using it as these airlines are providing business men services aboard such a business class and wireless internet connection. The number of competitors within the low cost airline industry is going to increase in the coming years as new airlines such as Bahrain Airlines starts its operation this year. Secondly, full service airlines are expanding their market towards low cost airline by introducing low price tickets that attract price sensitive consumers. We expect that within the next ten years a new class level will enter the market in the GCC region which is trains transportation. Also, a new form level will emerge in the relevant market which is a combination between full services and low cost carriers. Finally, within the next three years we expect those changes in the relevant market to be reshaped affecting the primary and selective demand.

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Appendix 1
Back Ground information on Flydubai:

Flydubai is the UAE second low cost airline that was established in March ,3rd 2008 on the orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. The company first flight was in June 1,2009 to Beirut in Lebanon followed by flights to Amman, Jordan, on June 2, Damascus, Syria, on June 8 and Alexandria, Egypt, on June 9, giving the new airline a total of four destinations in just nine days. (Redpath, 2009).

The company had ordered 50 Boeing 737 and is going to receive 10 airplanes each year for the next five years. (Flydubai,2009) Currently the company runs its operations in Dubai International Airport terminal 2 that was redesigned for the new airline.

Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Flydubai said: “This region is very dependent on air transport. It is a great credit to the vision and leadership of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, that this airline has now taken off, thereby ensuring residents and visitors alike will be able to travel to more places more often.” (Redpath, 2009).

The Flydubai model is simple, with customers only paying for the services they want. The ticket price includes all taxes and one piece of hand baggage, weighing up to 10kg, per passenger. Passengers have the option to purchase checked-in baggage in advance at just 40AED for the first piece and 100AED for the second, weighing up to 32kgs, subject to availability. Checked baggage is strictly subject to availability and passengers are advised to book early to secure the space, as only pre-purchased baggage can be guaranteed. (Redpath, 2009)

“Flydubai aims to make travel a little less complex, a little less stressful and a little less expensive,” explained Flydubai CEO Ghaith Al Ghaith. “Our passengers have the option to customize their travel experience depending on what services they want and how much they want to pay. (Redpath, 2009)

“We plan to stimulate the markets in which we operate and encourage people to travel to more places more often. Flydubai aim is not to drive traffic away from the other carriers but to help grow these markets. When you consider that low cost travel in this region could be as little as 2% of all air travel, as opposed to more than 20% in Europe and America, it is clear that there is a lot of untapped potential in these markets. (Redpath, 2009)

“In addition, Flydubai will fly to airports that are currently underserved by the traditional carriers. In a region which is so dependent on air transport, we are looking forward to providing the reality of accessible, low cost, uncomplicated travel” (Redpath, 2009).

Appendix 2:
Product Market Structure:

The above market structure was used to identify Flydubai relevant market within the airline industry in the Middle East region. We started the structure with the most basic need which is the need to travel in the region. This provided us with three alternatives that include airplanes, buses and cars. The product form is divided between full service carriers and low cost carriers as they differentiate in prices and services being offered to customers. From this structure we can identify Flydubai relevant market within the product form level. This is because the degree of competition and substitutability within the brand suppliers are high, as they all offer low prices with similar routes within the region. This push the relevant market upwards towards the product form level. Furthermore, Flydubai indirect competitors include Fly Emirates, Etihad airlines and Saudi airlines. These full service airlines are competing with Flydubai indirectly by providing low prices with full services. On the other hand our direct competitors include Air Arabia and Al Jazerra airlines that are both low cost airlines that perform within the region. Further explanation on competition will be provided in the Micro analysis in the competitors section.

Appendix 3
Macro Environment:

In studying the external environment of Flydubai in the next three years we will focus on the Macro and Micro environment. This study will help us in finding out the effect of these external factors on the company in the next few years.

The Macro environment factors will include Political, economical, social and technological aspects under which Flydubai will be affected by.

1) Political Analysis:
A) Government Regulations:

Flydubai was established with orders of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Prime Minister and Vice-President, and Ruler of Dubai. Being owned by the Dubai government the company faces no difficulties in laws and regulations as the airline industry in the Emirates is booming through the process of liberalization the airline industry that the United Arab Emirates is adapting.

B) Political Analysis:

In studying the overall political environment of the United Arab Emirates, we find it one of the most stable countries within the region. Such political approach of peace seeking had made the country a trading hub in the region. This will certainly have its positive effect on flydubai operations as to perform in stable political environment.

C) Employment Laws:

Protecting labors rights and Emiratization is considered the main aspect that the UAE government is taking into consideration now a days. Companies are now forced to have a certain percentage that of emirates locals that will increase in the following years as there is more emphasis on employing locals in the private sector. Being a part of Emirates Airlines Group, Flydubai will certainly adapt its mother company in hiring and training locals in suitable jobs. The challenge that Flydubai will going to face is to decrease costs in one hand and provide well paid jobs in the same time .

2) Economical Analysis:
A) Inflation Rate:

“The inflation rate in the UAE is predicted to fall from last year’s 11.1 percent level to seven percent in 2010, according to a new report.” (Sambidge, 2009). This is considered a positive aspect for Flydubai as it will have its positive effects in reducing the company costs in oil and ground operations. High inflation rates reaching to 11 percent last year was a threat to low cost airlines such as Air Arabia and Al Jazerra Airlines that faced a problem of high oil prices. This good news will make Flydubai compete even stronger on prices as inflation rates goes down.

B) Economical Analysis:

“Falling oil prices, cooling real estate and construction markets, together with a slowdown in the tourism sector, especially in Dubai, means the UAE is expected to post low or possibly negative GDP growth in 2009, according to analysts. (Sambidge, 2009). Living in the current World Financial Economic Crises the UAE economy in general and Dubai in specific faced a hard time in 2009 but analysts forecast that there will be more positive figures in 2010. This information is considered a negative too many airline companies but may be positive to Flydubai as people are now more focus in reducing their expenses as the incomes are reduced. This means their tendency of consumers focusing more on prices which is a positive thing for a low cost airline. Additionally, analysts forecast that the economy will grow in 2010 again and this will certainly have its effect on the company growth.

3) Social Analysis:
A) Demographics:

More than 300,000 people will be added to the UAE population this year to record the highest growth of 6.3 per cent in five years and Dubai would likely emerge as the fastest growing emirate, official figures show. The rise rebuffs reports that the global financial turbulence has triggered a mass exodus of expatriates out of the country, mainly Dubai.

From 4.75 million in mid 2008, the UAE’s population is projected to increase to 5.066 million in mid 2009, showed the figures by the Ministry of Economy. This figure are going to increase in the next few years which will certainly have its positive effects on the airline industry in UAE considering that expatriates make an approximate percentage of 80.1 of the above figure in 2009 according to the ministry of economy.

Furthermore, the figures show that the 25-29 year age group was the largest in the UAE in mid 2008, standing at 777,186. It was followed by the 30-34 age groups, which was estimated at 754,289 and 35-39 groups of 588,505. This clearly indicates that most of the population is young and is going to shape the tourism and aviation market in the next couple of years.

B) Consumer Behavior:

According to a study done by Arabian Business website, it was found that 83 percent of the respondents would switch their preferred airline carrier, for a cheaper price, while 17.6 percent believed they would consider alternatives and trade off between the discount and lost air miles. It can thus be inferred that pricing plays a significant role in consumer behaviour and the decision making process especially in the current economic downturn era. Furthermore, customer loyalty in the low cost carriers is low as it’s directly related to price. Flydubai should consider this into account and introduce customer loyalty programs in order to maintain a higher level of customer loyalty. (Glass, 2008).

C) Leisure Interests:

” 3.85 million tourists had visited the emirate in the first half of 2009, a five percent increase on the same period of 2008? According to Dubai department of Tourism and commerce marketing . This figure strongly shows the current tourism industry market and how attractive it became even though of the current economical downturn. Other figures expect that the number of tourists will fall compared to 2008 figures but most figures have stated that there will be a positive growth in 2010.

D) Career Attitude:

Business travelers are changing their perception of low cost carriers. As observed by Andrew Cowen, CEO of Same, the market is shifting from the traditional major airlines business travel towards low cost carriers for trips within the GCC. This changing attitude, supported by the current economic downturn and the increase number of foreign businesses within GCC countries entering the UAE, shows a trend of an increasing demand for low cost carriers in the next three years. (High time for low cost carriers, 2008).

E) Technological Development Analysis:

Following its mother company Emirates Airlines, we expect that Flydubai become a market leader in providing advanced technological solutions to its passengers by using the large experience that emirates airline have. If such direction was adapted, it will certainly provide the needed strength that Flydubai need in competing with its direct and indirect competitors.

Appendix 4
Micro Environment:
Stakeholder Analysis:

This means to analyze the micro environment which includes the following factors: the customers, employees, shareholders, media, and the competitors.

A) Customers:

Customers who are price conscious are concerned with low cost airlines. Flydubai has focused on pricing strategy and flexibility because these two factors play a big role in determining the customer’s decision process on which airlines they choose to travel with. Price strategy and flexibility of Flydubai include low pricing strategy and easy booking with increased choices. As Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Flydubai said: “As a true low cost airline we are geared towards providing our passengers with the best price and increased choice. We will operate efficiently and continually evolve to deliver the best possible product to our customers”. (“Flydubai opens for,” 2009). The cost of Flydubai from Dubai airport to Doha airport would cost 200DHS, whereas other major airlines such as; Emirates or Qatar airlines would cost approximately 1000 or more for a one way ticket (“Flydubai home page,” 2009). This shows that Flydubai is much cheaper and has managed to keep prices low due to the successful use of their pricing strategy.

Moreover, the number of tourist from around the world including the region will grow more than 40% in the next 3 years in Dubai (“Number of tourists,” 2009) .This shows that there will be increased number of customers who will use Flydubai airlines within the next three years due its successful use of pricing strategy and flexibility.

B) Employees:

Flydubai airline has received more than 11,500 applications from flight and cabin crew. There are 18 first officers, 61 captains, and almost more than 8000 candidates for pilots were selected from twelve different nationalities (Sambidge, 2009). The staff has good experiences and was carefully selected. According to Kenneth Gile, chief operating officer of Flydubai said: “We are extremely pleased with the talent of the pilots we have on board. On average, they each have more than 4,000 hours serving as captain in similar aircraft and a total experience of more than 8,000 flying hours – this is impressive by any standard” (Sambidge, 2009). Furthermore, employee and staff hospitality is very important. This is because the employees and staff were selected from twelve different nationalities and they need to feel comfortable with the new culture they are facing in order to work efficiently.

D) Shareholders:

Flydubai is fully owned by the government of Dubai and its considered as a part of its mother company the Emirates Group. The company has no other shareholders currently as there its 250 million dirham’s capital is completely raised by the government.

E) The media:

Obviously, through observations, Flydubai has made many advertisements through publicity such as; Newspapers (e.g. gulf news) and internet websites. However, the main strategy they used

The Hospitality Industry is one of the most vast and fast growing Industries in the World. Its industry is known to provide services like providing food, beverages and accommodation. Some key job titles in this vast industry that help run it are namely: Accommodation manager, Catering manager, Conference centre manager, Event organizer, Fast food restaurant manager, Hotel manager, Public house manager, Restaurant chain area manager, Restaurant manager. To get a job in this field the employer may consider several facts like ones past education and personal aspects like: Personality, consistency in work, a keen attitude, a friendly nature, a willingness to work, confidence, neat appearance, cleanliness, personal hygiene, over all personality, ability to provide customer service efficiency and honesty at work.

Apart from being one of the highest rated and desired industries to start a profession in The Hospitality Industry also offers equality among all. From a survey done by The INTERNATINAOL JOURNAL OF HOSPITALITY MANAGEMENT, Volume 16,Issue 2, June 1997, pages 161-179, read an article stating – EQUAL OPPERTUNITIS FOR WOMEN EMPLOYEES IN THE HOSPITALITY INDUSTRY: A COMPARISONBETWEEN FRANCE, ITALY SPAIN AND THE UK by Jean Burrell, Simon Etta Manfred and Hilary Rollin.

The article stated how the Hospitality industry in the UK offers equal posts for women as well as men irrespective of their cast, race etc.

The industry of hospitality has been a great source all over the world in generating employment. The Hospitality industry is a large employer to many ethnic minorities all over the world. The Industry makes a major part of its earnings from several sources one of the main sources being the foreign exchange earnings. Tourism being one of the main segments of the hospitality industry it very important to know about its aspects for the growth and the scope of the hospitality industry.

Chris Cooper the author of the book Contemporary Tourism Reviews said that the, “tourism industry can be defined as a whole range of individuals, businesses, organizations and places which combine in some way to deliver a travel experience”.

The hospitality industry can be claimed to be the most elaborate working sector in the market today. It is present in practically every field and everyplace. Be it schools, colleges, hotels, prisons, airports, stations etc.

The Hospitality Industry consists of a very broad category of various fields within the industry itself also, Such as –

Restaurants & bars
Marketing & sales
Human resources
Housekeeping
Travel agencies
Tourism management
Front office
Hotels/Lodging etc

The hospitality industry has contributed in many ways to the betterment of the society. These may include an increase in disposable incomes, offering more time for leisure activities, easier and cheaper ways to travel as a result of an improved style of living.

These contributions made by the hospitality industry are significant and wide-ranging. Production and service, leisure service, large as well as small-scale employments are some factors that are contributed by the hospitality industry.

Catering and the hotel industry are known as one of the fastest growing industries in the world today. They are not only the key element of the tourism department but also a huge donor towards bringing in foreign currency.

From one of the surveys conducted by THE BRITISH HOSPITALITY ASSOCIATION, 2004 overseas visitors spent close to 12 billion pounds of a total value of 76 billion pounds which was the total amount of the tourism (2003)

Millions of people like to have a quick snack or prefer having meals near their place of work or study, this is possible through a large contribution of cafes, restaurants, public houses etc.

PRESS RELEASEUNITED KINGDOM: RESTAURANTS MARKET RESERCH REPORT

RELEASED IN MARCH 2009

MBD`s REPORT: after researching the restaurants market in the UNITED KINGDOM and also taking into account other factors the following report was made by MBD.

MARKET REVIEW 2004 – 2008

In the year 2008 the restaurants industry in the UK had faced a decline of 3% (around ?5373 million) this is due to a descending pressure on restaurant turnover caused by an increase in economic qualms. Also there was a downfall in consumer spending due to rising cost of food.

From 2004 – 2007 there was an early increase in the sales resulting to a growth in the industry every year .

MARKET FORECAST 2009 – 2013

Fats food, take away, pick and go services, in-house catering facilities are a furthermore huge contribution towards improvement In standard of living, offering discretionary income which is enjoyed by a huge majority of people which was only constrained just to the affluent in the society.

Being one of the fastest expanding sectors of the economy, the hospitality industry solely stands as a multi billion and growing industry. It offers so much accompanied with entertainment, food, accommodation etc, and unlimited opportunity.

The industry is so immense, that it offers diverse people a various number of job opportunities to chose from in their area of interest all within the same industry.

Common features involved in the hospitality management are planning, directing, organizing and controlling of material as well as human resources within the lodging, travel and tourism, restaurant, institutional management, recreational management. All of these are separate yet related segments of the same industry interdependent on each other to provide service to the guest.

There are various Sectors within the Hospitality industry it self, such as: –

Food and Beverage
Lodging
Recreation
Travel
Tourism
THE CLASSIFICATION SYSTEM

The Classification System can be based on a various number of things depending on the – Food service, size and additional facilities etc.

Mostly all major departments are also sub divided in to other sub divisions so as to cater to specific needs and also offer a large variety of options to choose from allowing one to choose exactly what is demanded and also helps to compare and contrast between several options.

FOOD AND BEVERAGE

The food and beverage industry can also be stated as the backbone of the hospitality sector. Offering food and beverage services from sectors as small as a pub at the corner to a 5 star club. From a small cafe with a preset menu to a gigantic catering company serving more than a 1000 people a day. The Food and beverage industry has undergone many changes over the past years depending on the factors of continual evolution in global market forces, changes in consumer preferences, regulation proposed by the government, which are making direct effects on the change in manufacturing strategies around the world.

Major and familiar names such as MC DONALDS, COCA COLA, STARBUCKS ETC can be found almost everywhere in the world proving the fact how the industry had expanded during the past half century. The growth in the food and beverage industry has brought an economic boom to many nations such as CHINA, INDIA, BRAZIL, and VIETNAM.

The FOOD AND BEVERAGE INDUSTRY can be further sub-classified into many smaller groups such as

BARS AND TAVERNS
CATTERING
FAST FOOD
FRANCHISES
GENRAL FOOD SERVICE AND HOSPITALITY
QUICK SERVICE
VENDING
TAKE OUT/AWAY AND DELIVERY SERVICES
FIVE STAR HOTEL

REF: http://www.google.co.uk/imgres?imgurl=http://www.upgradetravelbetter.com/wp-content/uploads/2006/11/versace-

A LODGE

REF:

http://www.google.co.uk/images?hl=en&biw=1440&bih=679&gbv=2&tbs=isch%3A1&sa=1&q=lodge&aq=f&aqig10&aql&oq

Different segments of Hospitality
Catering

There are several types of catering naming a few:

Wedding food catering
Corporate Catering
Buffet Catering
Ala carte Catering
Party Catering
Commercial Catering
Types Of Full service Hotels
Convention Hotel
Luxury Hotel
Resort Hotel
Extended-Stay Hotel
Types Of Limited service Hotels
Limited-service Hotels
Budget Hotels
Specialty Accommodations
Conference Centers
Lodges
Bed-and-Breakfast
Hostel
Campgrounds
Institutional Housing
Dormitory
Senior Housing

How oft, in spirit, have I turned to thee,

O sylvan Wye! thou wanderer thro’ the woods,

How often has my spirit turned to thee!

William Wordsworth

Introduction

Within the vacillations of the framework for environmental adventure education, it is of extreme importance that the instructor/evaluator be able to integrate the predetermination of participants into their scheme or objectives. In this way, the student guides the instructor into lines of necessity as well as the instructor laying ground rules for the future participation in outings or events. Additionally, the achievement protocol must become based entirely on the mental success of students as well as the substantiation of their prideful focus on these activities. The only growth potential for a student participating in adventure activities comes from the assimilation of new techniques and the mitigation of challenging evidence to the contrary of their own prideful and successful belief structure.

Environment

Prior to the approach of adventure travelers into this unique world of kayaking, it was important to access the environmental affecters which might change or determine the course of participation. Particular evaluations made prior to the event inception include the legislative comprehension, evaluation of the weather and potential natural events, and the ability to access the area of travel.

Legislation: Obviously, it is of significant import to determine if the government regulates any particulars of a given activity. In this situation, it was determined through research of the location, contact with the governing authority, as well as research via the internet, that there was no mitigating legislation which might inhibit our participation.

Weather: Secondly, it was of high import that on the morning of our event that I evaluate the current weather forecast in order to determine the propensity for travel during our given timeframe. Fortunately, on this day, there was only a ten percent change of rain and no other signs of negative influence on our journey. It was, however, an interesting indicator of the success for future adventure travel that the frequent variations in weather could potentially inhibit the safe travel and passage of my guests.

Accessibility: Finally, the ability to access the chosen area was necessitated by the current stratification of river bodies which occupy the housing of exclusive clubs and organizations. In this particular scenario, integration with the Wey Kayak Club offered ease of access into the determined junction and we were able to put in our kayaks without problem or negative event.

Safety

As the group set out for the kayaking expedition, it was the integral safety of this particular activity which was at the forefront of our situation. The Kayaks loaded onto our transport, my mind returned to the analysis which I had conducted prior to embarkation and the results propelled us forward. Significantly, the most important factors which would affect this expedition were the abilities of the adventurers, the quality of the equipment, and the pattern of the river.

The Adventurers: In this particular exercise, due to the beginner requirements of the River Wye, there is minimal training which must occur prior to integration into the waters. However, several basic skills must be mastered for the particular possibility of catastrophic events. These include the ability to rollover one’s Kayak in still water and the ability to paddle, determined by the comfort level of the user to rotate from control to free hand and integrate this motion into actual events.

Equipment: Obviously, the choice of equipment for beginner kayakers was essential to the experience of the adventurer as well as the integration of their skills into the required exercises. This choice was made based upon the structural stability of the craft, the ease of maneuverability, and finally, the portability based on weight. For this project, we chose the recreational kayak, as regardless of distance upon the river, the necessity of a touring, whitewater, or downriver kayak was not insinuated. It was through the simplified maneuverability and average weight of the recreational model was perfect for beginners.

River Topography: Essential to the affectation of a safe and enthralling kayaking expedition are the dynamics of the river traveled. Through careful analysis of entry and exit point, including the portability of the equipment, the expected encounter of rapids, and the re-transportation of the kayaks to the vehicles, essential standards were established for the decided location for participation. The unique makeup of the Wye river as topographically without rapid intervention, as well as the sustained current and comfortable beginner training area made for a well participated journey. Near the A3 just off of the Riverside Guildford offered a unique put in area, and nearly five miles downriver, there sat our retrieval vehicle for our expedient return.

Participants

Obviously, the essential integration of diverse participants into the leisure industry is entirely reliant on the ability to create and perpetuate the inclusion of exciting and varied events. Additionally, it is through the one on one coaching that the student may become inspired to the revision of pre-determined tactics. In terms of the kayaking exercise, it was essential for me to establish my own flow and abilities prior to begin to coach the ladies with their approach. Therefore, through acceptance of their instructor’s usefulness, students will continue to find their challenges lurk in personnel as well as their susceptibility to the norm when it should be through the modification of corporate structure that corporations actively seek out success.

Skill/Behavior: This critical area of adventure evaluation determined the extreme tasks undertake by our group of participants. It was essential for our success in this event that my perception prior to water immersion was integrated with the information provided by the group. Of those participating, there were two kayakers in particular who were at a significant disadvantage to the others, having neither paddled in placid nor rapid water. It was my primary objective to identify their weaknesses and instruct their advance in the tactics for water safety and effective technique. As I, myself, was challenged by the opportunity to move from test cycle to natural environment, it would become prudent that my water skills be tested and personally approved prior to leading the expedition downstream.

My noticeable flaw was my inability to maintain a consistent paddling rhythm, resulting in a circular motion unbefitting of an instructor. Through readjustment of my grip, from tension upon the control hand and an integrated relaxed method of my free rotating hand, I was able improve greatly within the first few minutes of water immersion. Ultimately, when kayaking, your control hand must hold the shaft with the knuckles lined up with the upper edge of the blade. The opposite hand now has the ability to relax and rotate. Importantly, one hand must release slightly from the paddle during strokes or the grips will be in direct opposition to each other’s movement. As my students watched my struggle, and eventually my success, their confidence was additionally improved and paddling techniques became more fluid and effective. It was essential to the group safety that this establishment of technique be a priority, regardless of the anxiousness of the more proficient participants.

I also noticed a particular flaw in several group members as their challenge of interactivity within the integrated setting set them off on tangents which drove their progress too far downstream. This safety risk and particular avarice to my instruction demonstrated a need for adaptable discipline, and as I coached them on their group progression, I showed group reintegration and the affectation of a common goal of the waterway traverse.

Confidence Development: Of particular importance to the adventure sports leadership is the response by participants to the activities and circumstances of their journey. The unique ability to watch as my group utilized peer support in order to affect skill development, coupled with the integration of a common objective was highly inspiring. I realized that as I utilized my maneuvers to coach and develop participants, they in turn were able to break away in order to perpetuate the growth of others. It was through this interaction that the group developed significant self-confidence, as their skills and application of environmental integration offered a high standard of pride and personal affectation.

As students were able to finally overcome the challenge of task integration into a mentally perceived practice environment, their speed, dexterity, and skill all became more proficient and inspired. In fact, their skills were excitedly exploited during one course of a set of small rapids as student participated in a group attempt to enact an individual rollover at the base. The perception was that through the group collaboration, in spite of the danger or challenge, that each student would be able to descend the current, come to a halt with a ? rotation spin, and cause themselves to flip over at the base of the rapids. They would then utilize their skills and technique previously acquired to upright themselves, and if there was in fact difficulty, I sat by, ready to rescue any stranded paddler.

Finally, the exit point offered a unique affectation of success to all participants, as they landed and exited from the soft current, renewed and rejuvenated in their decisive attempt to improve their mastery of a world sport. The integration of cultural pride into their own personal appropriation of skill and success substantially imbibes their demeanor with a noticeable happiness and achievement. This ability to watch all participants exit the water with jocular praise and ebullience was not only enjoyable but invigorating for me, as I knew that my attention to safety and the detail elements of this adventure were securely rooted in my learned skills and teaching abilities.

Takeaways

The significance of the appreciated takeaways during this adventure outing will be integrated into my future teaching and leisure travel techniques. It will become essential that I remember particulars of this event in order to further my own comprehension of the inspirational power of personal achievement. Additionally, I will continue to focus on the training techniques which I utilized during this outing and will modify to affect growth in future interactions.

It is essential to the success of future endeavors that the location of integration for any type of adventure group be established, evaluated for potential challenges, and cleared by the government legislation of that particular area. Additionally, while not addressed during my study, the group appreciation for this area will be determined by their ability to interact successfully with their environment, therefore, I will consider the challenge of engagement as a personal goal in all future endeavors. The integration of participants into the particulars of the environment becomes a unique opportunity to actualize individual affectation within the activities.

Similarly, it will become a personal objective to hone the skills unique to the event or venue optioned for integration into leisure travel management. This means that regardless of the outdoor activity, my own integration into the abilities required will continue to positively affect the morale and abilities of my students. People who decide to involve themselves in group outdoor activities are most likely not experts in that particular field, and therefore, they look for support from their leader to determine the path to success.

Conclusion

The utilization of outdoor entertainment for physical and mental challenge has become a highly integral industry in the field of hospitality and leisure. It is therefore of specific import that the technician of such events be able to strategically evaluate the potential for success through the location, abilities of the participants, and the environmental affecters. It is key to the confrontation of individual challenges that the instructor find the ability to effectively communicate objectives and strategies to his participants, in addition to encouraging individual growth and participation. Only through the full integration of the mindset and acceptance of activity, will the students find their experience not only rewarding but a stepping block for future challenges. And through the dissolution of mental blocks to the challenge framework, it is possible for the instructor to inspire great internal growth and a spectacular inclusion of a set of new and varied skills and abilities.

Introduction and Background of the Study

Safety and security plays a big role in this century. Everyone is concerning about their safety and security when they are staying in the hotel during vacation. In the worldwide hotel industry, the management too concern about safety and security issues pertaining on their guests and employees.

In the hospitality industry, they are proud of themselves because they are known friendly to everyone in such way of attitude in welcoming their customers or guests. Therefore, they should practice and maintain the concept of a “home-from-home” with their “open-door” approach with comfort, convenience and privacy to their guests (Gill, Moon, Seaman & Turbin, 2002).

After the disasters such as terrorist attack at Luxor Egypt in 1992 and 1993, 852 passengers died on the shipwreck of Estonia in Baltic Sea on 28th September 1994, Iraq war terror attack of September 11, 2001 in New York, United States, the SARS epidemic in 2003, Tsunami disaster on 26th December 2004 in Thailand and Bali bombings, the need for safety and security around the world is growing and the topic of safety and security has become a popular discussion among the people in the world. Besides, most of the hotels have now implemented a safety and security plan as well as quality plan such as providing training for the employees and guest’s safety and security (Steene, 2009, Lockyer, 2007 and Helena & Natasa, 2010).

The hotel management has separated the hotel safety into two broad categories which are safety and security. The management categorized safety as in the services provided, also included the construction of the hotel interior designed whereby making sure they are safe built for the employees to work in and in-house guests. However, security in hotel related to threats that set by people than setting by the physical surroundings, which means it depends on the person who set the security danger that cannot be predict (Policy Department, 2008).

Based on Enz (2009) personal definition on safety and security, she defined safety as protecting guest’s safety, while keeping guests’ property safe will be included in the security definition. In other words, according to Enz and Masako (2002), safety involves in protecting employees and guests while in the hotel area from serious injured and death.

In terms of safety, it can be further categorized by various aspects such as fire safety and others aspects of hotel safety. As for hotel safety, it includes food safety, swimming pool safety and not forgetting the hotel’s property safety such as crime safety (Policy Department, 2008).

Problem Statements

Training safety and security measures is important to the hospitality industry whereby without the important of measures, the hospitality and tourim industry will not have boom so fast. This is because everyone take their life as precious as gold. Unfortunately nowaday, hotels only used of the tecnology safety and security system to protect their guest. They should have also used of training method and procedures to train their employees and educate guest as a precautions for accidents to happen. Morever, the hospitality should be more concern on which aspects that will have a high rate of accidents happen in the daily rountine. However, why training is crucial for the hospitality industry to look upon on? What are the ways that the hospitality industry able to use to train their employees and guests to keep safe from danger? Which aspects must they concerned on?

Research Objectives

The intention of this research is done to determine employee safety and security training and education for guests do helps to minimize the safety and security issues in the hospitality industry. This research is carried out to achieve several objectives in the following below:

To determined the importance of training safety and security.

To determined the ways that the hotels implement to train their employees and educate guests on safety and security to feel secure and comfortable while in the hotel.

To identify the factors that the hotels will look into concern and train employees and educate guest to prevent these issues to happen.

Research Questions

This study is attempted answer the research questions in the following below:

Why it is importance of training safety and security?

What are the ways that the hotel implements to train their employees and educate their guests on the safety and security?

What are the factors that the hotels will look into concern and train employees and educate guest to prevent these issues to happen?

Hypothesis Statement

The hypothesis in this research will be done based on the value of the population which the hypothesis statement will be related to the importance of training safety and security does lower the percentage of safety and security issues. In this hypothesis research, the author has used a statement which will give less bad effect on the result.

Ho = There is no significance between the importance of training safety and security will lower the percentage of safety and security and have no effect on safety and security issues.

H1 = There is a significance between the importance of training safety and security will lower the percentage of safety and security and have no effect on safety and security issues.

Theoretical and Conceptual Framework
The importance of training safety and security on employees and guests

Importance of training safety and security

Training the employees on safety and security
Ways and factors to concerned on
Fire safety
Accident and private safety
Educating guests on safety and security
Crime safety and security

Figure 1.1 A conceptual framework on the importance of training safety and security on employees and guests in the hotel industry.

Basically the above figure shows about this research will be focusing on several facts and facts such as the aspects that the hotel should be more concerned on by implementing ways to protect them. Before the author determined the aspects and ways on protecting the employees and guest’s safety, the author would like to explain on the importance of training safety and security on employees and guests and not just relying on the safety and security features such as CCTV and others more.

As for the aspects for the hotel to be concerned on will be the fire safety, accident and private safety and crime safety and security. These aspects should be concerned on because they will happen in our daily life. Fire is a phenomena aspect which we cannot predict to happen, thus it is important for the hospitality to train the employees and guests on ways to overcome it when it happens. As for accidents and private safety, if the employees and guest are teach to prevent them to happen, the rate of accidents will be lower down. For example, housekeepers should be trained in a right way to clean the room with safety measures. Crime happens almost every day in our life, thus the hotel should also take in precautions even though there are security police and officers. For example, the hotel needs to train employees on ways to not fall into the criminal traps when they suspected suspicious people wondering in the hotels.

Significance of the Study

Training employees and educate in-house guests in order to keep themselves safe and secure is a very important elements in the hospitality and tourism industry nowadays. With the training of safety and security, they will reach the employees and guest’s satisfaction where they will feel safe just like they are in their own house. In the mean time, it will also increase the attention from the outsiders and travelers if they know the hotel manage well in safety and security matters, thus this will brings benefits to the hotel when they need more manpower and increase the economy and status of the hotel.

The author had recognized the types of training methods for employees and guests to follow to overcome the negative factors which will make them feel safer while being in the hotel at anytime and anywhere. Moreover, the effects of these method used will minimize the safety and security issues. This research will help the organizations in the hospitality industry to understand the purpose of training safety and security will benefit the employees and travelers. This will also benefit the hotel as they practice and applying on the employees and guests to manage and improve the safety and security measures.

Scope and Limitation

Basically, this research is mainly focusing on the method that the hotel’s management uses to train their employees and educates their in-house guests in order to keep them safe and secure, also help to reduce negative issues that will happened in the hotel and the surrounding. Hotels keep them safe and secure in terms of avoiding injuries and death on the employees and guests when there are accidents, crime and fire.

However, there are several limitations related to this study have occurred in order to complete this research successfully. Firstly, it will be the availability to search for secondary data, the electronic sources. The author has faced some difficulties in searching additional information and electronic articles and journals from the websites that related to training safety and security for employees and educating guests when being in the hotel. Even though, the respective college university has provided several sources for the author like academic websites but there are still lack of sources for the author to collect more information because some of the journals and information need to be purchased before consume. Moreover, the author had faced some challenges because of lacking experience and knowledge in conducting a proposal. It is a great challenge when the author does not have sufficient experience and the skills to collect strong and good data for this research.

CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction

In this chapter, it will contains the finding of the authors had done research regarding on the important of training the employees and educate the guests, also several ways to train the employees and educate guests to keep safe while they are in the hotel. Besides, it will also include the factors where the hotel will be more concern on and avoid injuries happened. As for the previous researcher’s findings and theories, they will be used as supporting information also ensuring that the methods and factors will be focusing on will help in this research. Moreover, all information and data that have been gathered for this research are from various secondary data sources such as electronic articles and journals.

2.2 Importance of training for safety and security

The word “training” is means by giving a person the actual and enough information to him or her needed in order to work safely. It is not crucial that training need to have a formal class session or seminars and courses for the employees to attend.

In this generation, there are various aspects that make the hotel successful whereby these aspects are health, safety and sustainability of the attractions business (Williams 2008). According to Pitt (2007), in United Kingdom, there are about more than 30 million of working days lost in each year due to employee’s health sickness and seven million are because of employee injured in the working place. Every year, there are more than a million of employees suffering from bully while working by their own colleagues or public. Therefore, in order to reduce the number of workplace injury and others factors, training employees and guests to keep themselves safe while working and staying in the hotel are crucial.

Based on the research by Health and Safety in the Catering Industry Liaison Committee, there is a legal law to provide information and training regarding to health and safety aspects to all employees who are needed (http://www.hse.gov.uk).

2.3 Training employees

Weitze (2008) noted that if the hotel management is lacking of employees training, lack of maintaining the policies and procedures and lastly lacking of prevention, these will all lead to a safety related incident. Thus, it is important to train the employees from the hotel itself first before to educate the guests.

Moreover, the staffs of Shangri-la Hotel are the first people who will interact with the guests once they step into the hotel. It does not matter they are from which department of the hotel, as long they are Shangri-la Hotel employees such as bell boy, front desk staffs, housekeepers and more, the employees are responsible to create a culture of safety and professionalism to keep themselves safe and keeping the guest safety and security as well (Kwiecinski, 2010). Therefore, it is crucial for the management to train every employee to be able to face to face in any accidents such as fire, police and other emergency services people so that they may help out if that is a need (William, 2008). Based on a health and safety manager, Duncan Aspin, he had stated that managers need to shape up health and safety training policy for ensuring every employee have sufficient training on safety and security issues to reduce accident (Mottram, 2005).

For an example, according to Mottram (2005), providing program regarding on staff development and safety training has given a hand to North-West division of Birse Civil to achieve zero percent accident rate, which is also the top 1 company in UK as construction industry for safety. Therefore, training employees not only will help to save their lives but also help Shangri-la Hotel to rise up hotel status.

2.4 Educating guests

Besides Shangri-la Hotel train their employees to keep themselves safe and implementing safety and security features for the guest safety, it is also important for them to train their in-house guests to take care of themselves as well. In general, everyone who travels around and look for accommodations would expect they will be safe and their property will be secure leaving them in the hotel while they are out for travel. However, sometimes it is hard to predict that guest will be safe by just depending on the hotel’s safety and security features, thus the guests should also learn how to protect themselves away from crimes, accidents and fire.

According to the research by Mottram (2005), in the year of 2003, 80 people who include the guests and employees of Birse Civils have attended the safety management and courses. In result, the company has recorded as zero accidents occur within the company area.

2.5 Ways and factors that will be concerned on
2.5.1 Fire Safety

Fire accident is an accident whereby we cannot predict when to happen and when not to happen. Even if there is a fire, the guests might not know how to handle because they are not aware of it. Therefore, the hotel management should take precautions on handling the safety of their employees and guests. For example, sometimes foreign in-house guests might have slow respond to the evacuation alarms when it rings because they do not have an understanding situation in the local hotel (Roberts & Chan, 2000).

According to Helena & Natasa (2010), in order to protect guest safety, the management of the hotel needs to educate guest by providing instructions, labels and reminders which related to fire preventions. The purpose of implement this so that guests will not be panic and nervous when there is fire accident, in fact they will stay calm and know the way to leave the hotel building safely.

Throughout the research, as for the fire precautions to protect the guest and employees safety, Shareton Hotel did the best in training their employees to handle fire incident in order to save their life and the guest life too. They provide full induction and training for all hotel staffs on working safe procedures and responses which relate to fire. Besides, new personnel will be trained to use types of extinguishers and taught them ways to handle when the hotel is on fire (Roberts & Chan, 2000).

2.5.2 Accidents and Private Safety

In the Occupational Safety and Health Act (OSHA), it has stated in 1970 that each working people either man or woman in the nation need to have a safe and healthful working conditions which also means that without having any injuries during the working period (Hobson, 1996). In the hospitality industry, it is important for the hoteliers to look into this aspect because accident can happen in the hotel easily at anytime and anywhere on the employees and guests.

In the research by Mottram (2005), the company of Birse Civils does provide training to their employees which included first-aid training. This training is to ensure that their employees are qualified to the Health and Safety Regulation 1981, which need four days training at St John Ambulance premises. Thus, as for all hospitality industry, the management should provide training like this as a protection to their employees and guests safety.

In addition, in certain time, housekeeping department has a high percentage of causing accidents when the housekeepers do not handled dangerous chemicals in a proper way and practicing unhealthy poses while cleaning the rooms. Due to they are dealing with dangerous hazardous chemicals which will affect their health and life, safety and security training and orientation are important and should be practice in the housekeeping department even though the housekeepers did not handle any machinery. As an example, Wyswert hotel does provide training and information for the housekeepers on what they are supposed and not supposed to do (Kristanti & Kuhn, 2005).

However, sometimes it is a part of the employee’s jobs to protect the in-house guest’s safety. Leong (2000) has stated that the entire employees need to be trained so that they know about the security procedures to follow on which will be helpful for the guests. Thus, training employees is important especially when the front desks agent is dealing with the arrival guest’s room key. According to Kristanti & Kuhn (2005) and Woods, Ninemeier, Hayes & Austin (2007), they have mentioned that front desk agents are not allowed to give out keys, room numbers, messages and mail to anyone from the requester without the owner’s of the room real identity. Also, during the process when the front desk agent passes the room key to the guest, they should not announce the guest’s room number out in the public.

In addition, restaurant staffs also play a role in keeping the guests safety and security whereby they need to keep their customers property in secure when they are having their meals in the respective restaurant. The restaurant manager needs to train the server to be more alert on the customer belongings (Kristanti & Kuhn, 2005).

2.5.3 Crime Safety and Security

Nowadays, violent crime in the workplace has become a world issue that everyone will concern. Therefore, it is now has become a problem to the hospitality industry that they will be facing and this problem is increasing in other countries (Hobson, 1996). After the incident of a popular singer was raped with a knife pointed at her in Long Island motel, the issues of security become a serious issue to all hotels in the United States (Leong, 2000). Therefore, hotels have aware of crime issues and security system and start practicing crime management (Gill, Moon, Seaman & Turbin, 2002). Crime in the workplace has generally separated into different categories such as robbery and other commercial crimes, employer or other employee direct situations and terrorism.

In order to minimize the rate of violence crime in the hospitality industry, the management can strengthen the manager and supervisors security skills and ways to use first aids. It is important for both of them to be expert in managing these securities because they are the one will handle the problems when there is a problem. For example of a case that happened in Pasadena, Texas in 1977, the manger of the hotel did not help the victim because of lacking of security knowledge (Hobson, 1996).

Besides training the higher level of management, training the front line employees is needed too so that they will have the knowledge on handling it. The management of the hotel can give training such as “smile training” which known as “don’t look them in the eyes training” to teach the employees so that they will be more prepare and calm when there is a situation occur. A clear and understandable instruction should be given in order to avoid fighting when there is a robbery (Hobson, 1996).

Under the research that has been done by Shellum (2002), several hotels have taken action to strengthen the security issues. They have improved their security-guards training and then evaluate them by standard operating procedures so that it is constant. Research has shown that awareness is the most important tools in order to take care of safety, thus the example of the hotel has done show the right way of training the employees (Helena & Natasa, 2010). Thus, they have increased the staff-awareness by giving them more training instead of hiring security guards (http://www.hotelasiapacific.com).

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction

In this chapter, the author will be describing about the research methodology which will be using to collect data for this research and seeing how the data will reach the research objectives. With the used of this research methodology by following the structure of guidelines, it will help the author to collect reliable and trustable results for the research. In order to test the results for this research, qualitative and quantitative methods will be used as a support with one another and the outcome of the results will be accurate in this research.

3.2 Research Design

Qualitative methods is used for this research whereby it will be rely more upon interviews sessions and some case studies research dealing with some small numbers of people. The author will collect the data and information by targeting to interview the people in Shangri-la Hotel on how they train their staffs and guests to keep themselves safe while being in the hotel. The author would plan to interview the managers based on one on one basis so that more information included own opinions and thoughts will be given by themselves. The interview questionnaire will be set and ask based on the related questions stated in Chapter 1.

The progress of doing interview session with the respondent will basically starts with creating the interview questionnaires and scripts that have related to this research. After the progress of preparing the questionnaire that will be asked to the respondent, setting and conducting a direct test steps will be taken for the interview session. After all, the last section of the process will be the author interview the respondent in one on one basis.

Quantitative method is another part of research methodology that will be used to collect information from the respondent. This research method will have less interview sessions and observation. However, it is more towards on the collections of the data and analyzes the numerical data and statistic. For this research, survey technique will be used by creating a survey questionnaire for the respondent, which is the guest in Shangri-la Hotel. This is done in order for the author to have more understanding on this research.

3.3 Data Collection

In this research, there are two types of data collected that has been used for this study which are the primary data and secondary data. The combination of these two data collection may be useful and able to show accurate results which will help the author to do for this research.

3.3.1 Primary Data

In this research, primary data is important for the researchers to collect data because the information that collected is direct from the respondent itself. Therefore, it will be much more accurate. However, this method that will be used requires more time, cost and energy to complete. Thus, the author needs to spend more effort in order to collect great information and data.

The primary data for this research will be collecting through one on one interview and questionnaire survey. Firstly, the author will be only target the manager of each department in Shangri-la Hotel to collect information and data which relate to this research. The respondent that will be interviewed will be at least at the manager level; therefore the results taken will be more useful and reliable. The interview questionnaire will be asked will more base on the ways and the factors of safety and security issues will be focusing on.

The purpose of using interview method is because data that given will be more in depth and interviewer able to ask more personal question in order to gather extra information. Also, it is possible for the interviewer to record down the conversation during interview session as references and proofs with the permission approve from the interviewees.

3.3.2 Secondary Data

Secondary data are data that have gathered and done by previous researchers and now become the needs for the current researcher. Besides, secondary data can be known as ready quick sources with strong facts and evidence. Secondary data includes books, journals, articles, news and others more.

As for this research, the secondary data will be more relying on the electronic journals and less on academic textbooks. The data collected will be used more on internet sources because it is easy to gather valuable data which have done by someone else previously. Electronic journals articles that used to find relevant articles and journals as a support for some facts in this research are from the database of EBSCOhost from KDU e-library websites, Emerald from USCI library website and Google Scholar. All information that collected from these three websites is validity, accuracy also free for bias.

In addition, the author will borrow some books for extra information which relate to the research doing from the library of KDU University College at Petaling Jaya campus.

3.4 Sampling Design
3.4.1 Sampling Technique

The author would choose non-probability sampling as a tool to choose the respondent for this research study. The author will be interviewed the managers of Shangri-la Hotel through quota sampling to get information. However, quota sampling will not be a helpful tool for the author to do this research because not everyone is selected to be interviewed, thus convenience sampling will be use in survey questionnaire. The questionnaire will be distributed to the targeted respondents who are willing to answer the questions sincerely. With the use of this method, it gives the author to have large number of full complete questionnaires fast and inexpensive which help the author to save cost.

3.4.2 Sampling Frame

In this research, the hotel that the author choose to do on research is Shangri-la Hotel, Kuala Lumpur, thus the author will only target the respondents who are the guests who stays in Shangri-la Hotel regardless of gender or races for the convenient sampling. As for the quota sampling, the author will only select people who have a high level of management to interview.