Author: Andre Coleman

The Porter’s 5 forces framework is an outside-in approach whereby the industry forces affecting the business performance is analysed to facilitate managers in decisions to direct their resources in achieving maximum profitability. The 5 forces identified by Porter are the horizontal competition from substitutes, new entrants and existing rivals as well as the vertical competition from the bargaining power of suppliers and buyers (Porter, 1980). In this essay, the author would like to analyse the competitiveness of the hospitality industry by critically evaluating the strength of each force individually with relevant examples and identify the most influential force.

2.1 Threat of new entrants

Threats of new entrants are one of the principal forces of Porter’s theory of five forces (Porter, 1980). Bain (1956) who initiated the study of entry barriers identified the major barriers as capital requirements, economies of scale, product differentiation, government approval and absolute costs. These barriers create constraints for new entrants to enter the industry, creating fewer competitors therefore retaining the market shares of existing firms to achieve higher profit (Botten and McManus, 1999). International hotel chains enjoy large economies of scale (Salinger, 1990) as they have huge numbers of hotel chains and brands therefore expanding their market power. The Hilton Worldwide brand shares the same source of supply through their supply management system and customer database through their technology platform, the OnQ system across all hotel chains (Hilton Worldwide, 2012; Hilton Franchise, 2012), forcing new entrants with small scales to accept the cost disadvantage which directly affects their profits and sustainability (Pearce and Robinson, 2009).

Due to the analogous product and service offerings, brand identification is the best way for hotel chains to differentiate themselves from competitors (Dube & Renaghan, 2000; Makadok, 2010). International hotel chains has succeeded in creating brand awareness through rapid expansions of brands such as Hilton and Holiday Inn (Okumus et al., 2010) with assurance of quality as well as the implementation of different loyalty programmes, causing new entrants the challenge to overcome customer loyalty (Kandampully and Suhartanto, 2000). Capital requirement of opening a new hotel is very high. It incurs high fixed costs (Chung, 2000) for the land and the construction plus renovation of the hotel. Huge amount of start-up and running cost is also required to recruit employees and roll-out marketing activities such as the development of the hotel brand through advertising as well as research and development activities (Matovic, 2002). Huge budgets must also be allocated for maintenance and upkeep of the hotel property (Hall, 1987).

Besides structural barriers which are influenced by the nature of the industry, there are also behavioural barriers which Sigfried and Evans (1994) describe as the retaliation strategies firms implements such as patents, predatory pricing, and exclusivity agreements with suppliers and distributors. However, the liberation of trade barriers by governments due to the trend of globalisation lowers the entry barriers especially in developing countries which do not have the resources to provide sufficient hospitality services and requires foreign firms to help develop the tourism sector (Hitt and Hoskisson, 1999). Conversely certain government do limit entries and provide exclusive rights to the local firms.

Weighing the facts in this study, barriers of entry to the hospitality industry is still considered relatively high, especially to the luxury segment where more investment and development of brand is required, and customers loyalty in existing luxury brands are already high which is proved by the high prices the consumers are willing to pay for a hotel room. In the budget or midscale segment, new entrants could attempt price penetration but the sustainability of the business could be unfeasible if consumers’ choices are dependent on the pricing only (Graf, 2011). Generally the threat of new entrant is fairly low, but could increase if there is liberal trading policies and high concentration of the industry in the particular location. But once a new entrant decides to take the high risk of entering the industry and has the ability to innovate and make differentiation in products and services, they will aggressively pursue market share to cover the high fixed cost invested (Matovic, 2002), raising the competition level in the industry.

2.2 Threat of substitutes

Porter (1980) has also identified the threat of substitute in increasing intensity of rivalry. Substitutes give consumers more options often with better prices or value in achieving the same basic needs or wants. Substitutes are often not identified as primary rivals, making them difficult to be anticipated by firms (Magretta 2012). The presence of substitutes limits the profitability of firms by placing a ceiling in prices and increase price elasticity of the hotel product (Porter, 1980). When the pricing factor is considered, threats are formed when substitutes offer lower prices for the similar product, offer better quality products with a slight increase in price and when lower quality of products is provided with a significant drop in prices (Lewis et al., 1989).

Technological advancement supported by the high speed of internet has posed significant threat to the meeting and conference facility of a hotel which are the main revenue source of business hotels with the availability of teleconferencing. Many corporate companies would consider teleconferencing to be an ideal choice as it eliminates the high cost incurred for flight tickets, lodging and rental of conference facilities and equipment as well as the time consuming trips (Leocha, 2009). Other potential substitutes for the business traveller segments could be corporate guesthouses and long stay hotels (Regal Wing, 2011) whereas leisure travellers could opt for cheaper alternatives such as rented apartments, informal lodging with friends or families, RVs, camping, simple capsule hotels or make plans for overnight rides by long hour flight, train or bus. Business of airport hotels are also affected by the availability of sleeping capsules and rooms in airports (USA today, 2009) which removes the need of transit passengers to rent day rooms in hotels.

However, threats of substitutes in upper-scale luxury hotels are relatively low because consumers of this segment demands for exceptional comfort along with exclusive service standards, amenities and recognition which typical substitutes could not meet (Griffin et al., 1997). There are many substitutes in the hospitality industry except for the high end hotels. The author concludes that the overall threat of substitute is moderate as the availability of substitutes is very dependent on the location of the hotel and consumer preferences as hotel provides more comfort, convenience and security compared to the substitutes.

2.3 Power of suppliers

The power of suppliers has direct impact on the profitability of hotels as it controls the input of the hotel which is vital for the operations of any hotel and provides flexibility to a hotel to give surplus to their customers. The hospitality industry is considered a matured industry (Martel 1974) and there are many suppliers who are readily in the market (Kim and Oh, 2004; Olsen and Roper 1998). Hotel suppliers include outsourced firms providing operational services such as accounting, maintenance, security, promotion and storage (Burt and Pinkerton, 1996) or even off-premise laundry services.

Real estate agencies are important suppliers when hotels are planning their pipelines and there are many which are available and competing for businesses from hotels as the investment is very huge. With active mergers and acquisitions in the industry, many hotel chains are actually affiliated with real estate companies such as Hilton Worldwide, La Quita Inn and Motel 6 being acquired by Blackstone group with active real estate businesses (Wikipedia, 2012) eliminating the need of suppliers. However, power of a particular supplier would be high if hotels are searching for unique locations.

Another main input of a hotel would be the employees. With the development of hotel schools and relevant courses, many qualified personnel are available for management trainee programmes and further contribute to the hotels. Hotels are often given credit to the ability to reduce unemployment rate of an area, proving that the ratio of supplier to firm is higher (Hassan, 2000). However hotels face the issue of shortage in manpower during peak seasons due to the employment strategies of hotel establishments to have a core of full time employees and employ casual and part-time labour to meet fluctuation of demand (Lufferty, 1998). The nature of part-time employment results in high turnover rates and high training resources.

A centralised supply management system and is often integrated across brands of major hotel chains, giving strong negotiation power to the hotel, making business from hotels indispensable to suppliers (Cox, 1999). With the vast growth of the information technology sector, there are many property management systems without significant product differentiation for hotel chains to choose from, thus giving hotels high buying powers. Another plus point for hotel groups is the practice of vertical integrations and the opportunity of backward integration (Lafferty and van Fossen, 2001) by owning own real estate agencies, manufacturing plants and hotel schools such as the Accor training academy. Summing up the relevant facts shows that the power of suppliers in the hospitality industry is low.

2.4 Power of buyers

The hospitality industry has many buyers including corporate companies, travel agencies and individual travellers or the user itself. Price sensitivity of buyers depends on the hotel segmentation (Go and Pine, 1995). Buyers of budget hotel segments are generally more price sensitive than those of the luxury segment who appreciates higher quality of services rather than affordability. Switching cost of buyers could be increased through loyalty programmes which provide more value and benefit to buyers as a reward of repetitive patronisation (Kandampully and Suhartanto, 2000). Corporate and travel agent discounts are also given reduce the power of buyers to switch their suppliers (Jones et al, 2007). Buyer power has increase through distribution channels of hotels in the internet. It gives buyers access to information and reviews of different hotels available and compare them instantly (Law and Hsu, 2005).

Gu and Canoon (1998) suggest that buyer power could be subject to seasonality depending on the availability of disposable income and leisure time or the geographical factors of the location such as weather, and hotels implement yield management to gain maximum profitability with considerations of these factors (Burgess and Bryant, 2001). During peak seasons when there is an undersupply of rooms and lower price elasticity, hotel products would be sold at rack rates, decreasing buyer power of price negotiating. In contrast with low season and periods of slow economy growth where hotels strive to fill up occupancy to achieve minimum profit to breakeven, buyer power will increase significantly with attractive packages of value and choice of accommodation in the available hotel chains (Kandampully and Suhartanto, 2000). In summary, the power of buyers in is moderate depending on different circumstances.

2.5 Rivalry among firms

The level of competition within existing firms in the hospitality industry also affects the profitability of firms (Porter, 1980). Despite the uncertainty in economy, the tourism sector is showing steady growth and remains strong across the globe. It is forecasted that at the end of year 2012, there would be 1 billion international tourist arrivals globally. Growth is shown in every region, with comparison with the previous year, Asia Pacific showed the highest growth of 8%, Africa with 7%, America with 5%, and Europe with 4%, Middle East only showed growth of 0.7% as the region is still recovering from the effect of the Arab Spring (UNWTO, 2012).The growth in tourism increases the demand in the lodging industry therefore encouraging international hotel chains to develop strategic planning to accommodate the tourist by the expansion of their brands in potential markets (Lafferty and van Fossen, 2001). Expansions can be done rapidly with the trend of franchise licensing and management contracts (Chen and Dimou, 2005).

The hospitality industry involves many firms including international and domestic hotel chains ranging from luxury, full service, mid-scale, boutique and budget hotels to accommodate needs of different customer segments. Main international chains found around the globe would be The Intercontinental group, Wyndham Hotel Group, Marriot International, Hilton Worldwide, Accor group, Choice hotels, Best Western, Starwood, Carlson and Global Hyatt with growing numbers of room each year. The hotel industry performance outlook of 2012 provided by tripadvisor shows that 58% of global hotels believe that their firm can gain more profitability in future. Survey done by Travelocity shows that 76% of consumer are planning to spend more on travelling and 53% of consumers are planning to travel more compared to year 2011. This implies a positive growth in the hospitality industry (Marketing chart, 2012).

The nature of the hotel business shows the need of international expansion to meet demands with wide dispersion of geographical spectrum (Matthews, 1997) as the carrying capacity is fixed and the services provided by hotels can only meet the demand of consumer if it is present in the location. Firms such as international hotel chains operating in the same location have market similarities as they share the same sets of market (Chen, 1996). They compete for the same resources or customers and face the same constraints affected by the external environment. Location is the key determinant of one’s rival as the role of a hotel is to satisfy the guest need to get accommodation at that specific area. The strategic decision in deciding the geographical location of a hotel is very crucial as it is the attribute of a hotel that is fixed the fixed cost incurred is very high and (Matovic, 2002). Hotel chains develop in the same location to justify the attractiveness of the area thus reducing the perceived risk of investment by managers (Markussen, 1990). Go and Pine (1995) argues that product segmentation which includes pricing and level of facilities should be considered while determining primary rivals but pricing is highly variable and the change in pricing could cause the hotel to meet new competitors and increase the number of competitors (Roginsky, 1995) therefore damaging the profitability potential of the industry.

Rivalry is often high with firms existing in the same strategic group. Pearce and Robinson (2009) stated that a strategic group would consist of hotels with similar competitive strategies and market positioning; while Hatten and Schendel, (1977) propose that members of an industry can be classified into groups of similar strategy and structure. They have the same distribution channel, features of products and services provided, target market, and identical technology advancement. Strategic groups can be identified by comparing the competitive characteristics of firms by using almost a hundred possible variables (Ketchen et al. 1993) such as the quality range, geographic coverage, degree of service offered and degree of vertical integration. Firms that are present in the same strategic group are identified as a close rivals, assisting managers in constructing competitive strategies and allocate resources efficiently to be ahead of rivals (Matthews, 2000). Structural similarities of firms in the same strategic group cause them to be affected in the same way by external environmental changes and competitive strategies within the group.

Imitation of strategies can be easily done within the same group which is supported by the institutional theory that shows the occurrence of similar competence between firms (Selznick, 1996) under the same internal and external environment causing isomorphism (Oliver, 1988). Isomorphism is the condition when firms competing in the same population share same characteristics. The environmental forces have mimetic influences on hotels (DiMaggio & Powell, 1983), where the successful chain is often imitated by the rest to reduce uncertainty the need of investment in their own market research. Obligatory action also causes imitation, March (1981) quoted that ‘obligatory action happens when enough firms do things in a particular fashion, it becomes the norm and from that point on, things are done that way without conscious thought.’ Caves and Porter (1980) suggest that the existence of strategic groups gives an advantage to members of a strategic group by creating a high entry barrier to new entrants because of the saturation of competition within.

Besides the factors mentioned above, rivalry among firms are intensified due to the high exit barriers (Dess et al, 2004) associated with significant capital investment as well as the high exit cost such as the depreciation cost of fixed assets, severance pay for employees and compensation cost for breach of contracts with suppliers and buyers. Exit barriers are especially high for large hotel chain with multiple locations, extensive interconnection with different suppliers and buyers, and large pool of employees. The high amount of sunk and exit cost pressures the exit- prospective hotel to keep its market share and continue running the business along with the implementation of new strategies in hope to revive the performance of the hotel and maintain the employment of the large labour force involved.

Perishable products offered by hotels create the urgency in selling the product as soon as possible to capture revenue, elevating the competition especially during off-peak season with oversupply of rooms (Matthews, 1997). For leisure travellers who do not travel frequently and has no brand preferences, the switching cost is very low or almost nothing as they would be attracted to any hotel chain which gives more perceived value or has lower price without considering the brand of the hotel chain, making them a potential customer for any hotel chain (Kandampully and Suhartanto, 2000). Hotel products have very limited potential of differentiation because the basic need of accommodation and shelter for tourist could easily be met and strategies of one hotel could be easily imitated by the other because of the lacking in patented knowledge and technology (Dunning & McQueen, 1982). Weighing the factors and reasoning contributing to the rivalry among firms, the author suggest that this is the strongest force in Porters five forces affecting level of competition in the hospitality industry.

3.1 Conclusion

Given the analysis in the many competitive forces found between rivals, the author suggests that the intensity of rivalry among firm is strong but not to the brutal stage yet. Although growth in mature industries such as the hospitality industry is generally slower, the emergence of complement products such as cheap flights and additional frequent routes has facilitated tourism growth therefore benefiting the hotel businesses (Rey et al., 2011). Development of outbound tourism in emerging BRICS (Brazil, Russia, India, China, Africa) countries and other Asia Pacific region which is expected to capture 29% of total international tourist arrival in 2030 (UNWTO, 2012) encourages the growth of hotel pipelines, giving the hotel business a very good prospect of the future. The hotel industry is also a multi-billion dollar industry with signs of rebound due to the healing economy (Hotel News Now, 2012) with large hotel chains co-existing enjoying great amount of profitability especially with the increase growth in the tourism and motivation in travelling. Furthermore, although many hotel chains exist in the industry, different hotels define competitors with different criteria such as segmentation, price and proximity (Whitla et al, 2007) depending on its strategic group.

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With the following information I have been asked to examine

You are an established Tour Operator offering worldwide, long haul programmes that feature Africa, The Caribbean, Dubai, The Far East and North America. Each programme uses a variety of methods of transportation,

With air being the principle method. You also use local rail and ferry connections and coaches are used extensively for both touring and transfers. It is an accepted fact that major accidents and incidents can occur during the operation of a programme.

Task 1

Describe the major accidents and incidents that could occur throughout the duration of the programme described above.

Task 2

Produce a detailed and systematic Emergency Plan that can be put into action to deal with any major accident and/or emergency.

Notes

You should produce one generic plan that is capable of being implemented for all situations. Do not produce separate plans for each of the accidents and incidents identified in Task 1 above.

Your plan must be comprehensive and include contact and staffing requirements, in addition to the actual plan of action.

Table of Contents ? Page no.

OBJECTIVES: i

INTRODUCTION 1

WHAT IS TOURISM AND TOUR OPERATION 1

Task 1 3

1.1 Activities in tour packages. 3

1.2. Tourism and Transportation 4

1.3.Accidents in tourism 5

1.3.1. Accident Due to Natural phenomena

5

1.3.2. Accident in the Transportation

6

1.3.3.Accidents due to Activities

6

1.3.4.Biological 6

1.3.5.Accident made by man

7

1.3.6.Common Accident

7

1.4.Result of accident 7

Task 2 8

2.1.Planning for Accident 8

2.2.Identifying the main accident and develop an action plan for those accidents 8

2.3.Give necessary training for staff and information for travelersStaff. 11

2.3.2.Information to Clients 12

2.4. Implementing and monitoring the plan 13

INTRODUCTION
WHAT IS TOURISM AND TOUR OPERATION

According to the World Tourism Organization Tourism can define as “The Activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”

Tourism is “the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs” (Mathieson & Wall, 1982, p.1)

Tourism has not been defined universally because it is hard to define if tourism is

an industry and what factors make a person traveling a tourist. “All tourism involves

travel, yet not all travel is tourism” (Mill & Morrison, 2002, p. 1). What this is saying that

you need to go somewhere to be a tourist yet you can go somewhere and not be a tourist,

simply by visiting family. Travel refers to the act of moving outside of one’s usual

environment for business or pleasure

Tourism industry can divide into 3 main categories. These categories are depending on the type of the travel.

Domestic tourism

When People travel within their own country come under this section

Incoming or inbound tourism

When people entering the country in question from the home country, this is a type of international tourism

Outbound tourism

When people travel away from their home country

As we discussed earlier there are some main requirements that a traveler seeks when travelling takes place. Some of them are

-Accommodation

-Travelling Assistant

-Information Assistant

In order to assist with the travel arrangements, specialized travel services providers comes in to action. They are called tour operators, a tour operator typically combines tour and travel components to create a holiday package for a individual or for group of people.

Sometimes there is confusion over the difference in functions of tour operators and travel agents. Tour operators are the organizers and providers of package holidays. Who makes contracts with hoteliers, airlines and ground transport companies then finally print brochures and advertise the holidays that they have assembled.

Travl
Agency

Cultural Sites

Natural Sites

Destinations

Cultural/Social

Events

Ground

Operators

Ground

Transport

Resturant

Transport to/From

Destination

Accomodation

Tour

OperatorTravel agents give advice, sell and administer the bookings for number of tour operators. As by definition, tour operators design packages, maintains the relationship between the other parties.

Consumer

The Package holidays offered may cover a wide range of destinations, both national and international, and can cover a variety of holidays, such as cruises, adventure, touring, winter and summer destinations.

Task 1

Describe the major accidents and incidents that could occur throughout the duration of the programme described above.

Tourist destination is the most important component in a tour package. This helps tour operator to attract tourist for their packages. Following are some of main tourist destinations tour operators use to attract tourist for their tour packages

1.1 Activities in tour packages.

Based on the type and the requirement of the consumer tour operator creates a packages. If the tour package is based on adventure tourism it will mainly consist of activity based tour itinerary. These activities are based on the tourist location they visit. As an example tour package in Africa includes a safari tour, in Dubai shopping and also safaris in deserts etc.

Following are some of main activities that include in a tour package. These activities can be change by demand of travel group. And also it is tour operators responsibility to arrange these activities with safety measures.

Safari tour

Surfing

Rafting

Horse riding

Hiking

Nature walks

Hot air balloon

Helicopter tours

Bridge jumping

Diving

Whale watching

Cruising

Historical Places Visit

Group Events in hotel

Shopping

Cultural event

Boat Riding

Another adventure events

1.2. Tourism and Transportation

Transportation is the method using for travel one place to another. Travelling is main part of any kind of tourism. No tourism take place without considering about transportation. There are four main transportation methods used when it comes to travel and tourism, they are air, road, sea and railway. Most of tour operators used following methods of transportation heavily for their travel arrangements.

Air :- Aviation

This is the most common method use for transportation within the tourism industry. This can be divide in two ways. International and domestic travel. Tour operators get this service through the travel agents.

Ground:- Coaches and Rail

These are the two methods tour operators used to travel tourist in the ground. Most tour operators manage their own coaches services with well manage staff. If not they get the service from travel agents. Depend on the size of the group coaches can be varied.

Railway is mainly managed by rail companies. They provide scheduled service within the home country. Tour operators may reserve seats for tourist group and use this service.

Sea :- Ships, Ferry

This is the transport method heavily used when people travel in the water. Ships and Ferries provide link between group of islands, or islands and a larger land mass. Tour operators get the service through the cruise or ferry operators for their packages.

1.3.Accidents in tourism

An accident is a specific, unexpected, unusual and unintended external action which occurs in a particular time and place, with no apparent and deliberate cause but with marked effects. It implies a generally negative outcome which may have been avoided or prevented had circumstances leading up to the accident been recognized, and acted upon, prior to its occurrence.(Wikipidea )

As described above even in tourism there is a big possibility to take place an accident during the tour program. Following are some major accident that could happen in the tourism industry. These accident can be divided in to several section depend on the accident type and location it happens.

1.3.1. Accident Due to Natural phenomena

It’s a common fact that natural phenomena cause huge accident and damages to tourism industry. As an example Tsunami in 2004 December results number of deaths in the coastal area including tourist who were there at the time when it happened. Following are some of natural phenomena identified around the world

Earthquakes

Flood

Landslides

Erosion

Fire

Storms

1.3.2. Accident in the Transportation

When tour operators creating packages as described above they use various method of transportation to travel tourist. Following are some accidents that can take place while transporting passengers,

Air accidents

Sea accidents

Rail accidents

Road accidents

1.3.3.Accidents due to Activities

As we described in this article travelers are participating various kind of activities in the event. Due to these activities traveler can face to these type of accidents.

Animal Attacks

Pool Accident

Beach accident

Falling down

Overturn Boat

1.3.4.Biological

Also there can be certain incidents that a traveler may face with following types of accidents,

Communicable diseases

Food hygiene

Illness

1.3.5.Accident made by man

In a destination there can be sudden attracts or picketing that a traveler might face in to, some of them are

Political Reasons

Incident investigations

Terrorist attacks

Tour operator goes bankruptcy

1.3.6.Common Accident

Apart from all other following accident can happen to anyone including tourist at any time in anywhere,

Meat with a robbery

Lost in the way

1.4.Result of accident

Accident always brings up the bad result. Following are some of results can occur due to an accidents in the middle of travel package.

Dead of one or more in a travel group

Injured of one or more in a travel group

Trip Cancellation

Group stuck in a location

Illness of one or more group members

Delay from a schedule time

Economy problem of group members

Lost baggage.

Task 2

Produce a detailed and systematic Emergency Plan that can be put into action to deal with any major accident and/or emergency.

As describe in above accidents are unpredictable and can occur anywhere at any time of the day. Since there are many great risks involved in tourism accidents it is commonly understood there should be proper measures take before those types of incidents take place. By which will ease the situation and avoid the panic among others.

2.1.Planning for Accident

It is tour operators responsibility to give safety for their travelers till the end of their journey. Using good plan to response for accident can prevent or minimize risk for travelers. In this section we are talking about how to create a common plan to face above mention accidents.

An emergency plan it can be divided in to three main section.

Identifying the main accident and develop a action plan for those accidents

Give necessary training for the staff and information to travelers.

Implement the plan and monitor the progress

2.2.Identifying the main accident and develop an action plan for those accidents

In this step tour organizations must try to identify and narrow down what are the possible accident that can take place in a destination and how to develop an action plan for those. Priorities for the action plan can be changed depend on the tourist destination. As an example tour operator must give enough measures for accident related to animal attacks, communicable disease or food hygiene on trip in Africa but less in Dubai. As we design a common plan for all of those identified potential incidents we need to bring forward the most suitable emergency plan that covers most of the accidents that can happen in destination.

Following are the main points that need to be considered to complete in this step. The outcome for each point can be changed according to the destination.

Point 1:- appoint a person who can be in charge when accident occurs.

Every tour operator must have one or several people in charge to manage an event of emergency. Each group or individual must have a responsible person to lead them, in this case basically a guide can be used to do both guiding, that is part of the service a tour operator provide and in an accident to act as a trained helper by giving proper prior training to him/her

Point 2 :-appoint a member or members from staff to response when accident occurs

One or more members must be included in the response team. Each of them must be given different tasks, response team must consist of following members to support in the event of emergency

Communication

This members responsibility is inform the head of the team first and then if required to travelers if emergency occurs

Supportive

This member responsibility is to check equipment, records and other thing are safe and in order.

Fist aid support

This one is responsible for first aid support to travelers in the event of emergency.

Tour operators must identify or train current staff before members select team or appointing them to act in an accident

Point 3 :-Information is very important for every emergency plan. There for following information must include in the emergency plan. These details can be changed depending on the tour destination.

Emergency assembly sites

When an event of accident tour operator must provide separate safe site to assemble for the travelers. As an example if the hotel met with fire put travelers to another hotel.

Evacuation route

Always must have a backup route to travel for destination. Then travelers can avoid a place where possible to meet with accidents. As a example avoid flood areas.

Staff contact details

Every action plan must have contact details of every member in the response team as well as the important numbers of tour operator company staff.

Emergency contact numbers

In this section must have the numbers we can get help from in the event of emergency. As an example Police, Fire Department, Hospitals

Warning message receivers

In this section we are keeping a person or an organization where we can get further information regarding events of an accident or situation. As an example contact details of whether department, local police station.

Point 4 :- To reduce the impact of an accident tour operators must provide sufficient equipment to travelers. In this point emergency plan list down the equipment needed for a emergency

First aid kit

Fire distinguish

Life jackets

When first step is completed tour operator must come up with basic plan to meet up with the accidents. It will list down all the actions and details that they must be prepared for in an event of an accident. Following table show a sample of the outcome of first point. Using this information tour operators can minimize or prevent the effect of accident to travelers. This emergency plan must be given and communicated well with every tour guide who coordinates the travel group.

Emergency Plan for Tour operator aˆ¦aˆ¦aˆ¦aˆ¦.for destination aˆ¦aˆ¦aˆ¦aˆ¦..

1

Head of responsible

2

Teams

Name Contact Number

Communication

Support

First Aid

3

Information

Emergency assembly sites

City Site

aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦. aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..

Evacuation route

Destination Evacuation Route

aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦. aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..

Staff contact details

Name Contact Number

aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦. aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..

Emergency contact numbers

Department Number

aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦. aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..

Warning message receivers

Department Number

aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦. aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦..

4

Equipment

Type No

First aid kit

Fire distinguish

Life Jackets

2.3.Give necessary training for staff and information for travelersStaff.

Even though tour operator makes a good emergency plan they need to involve the two parties that face the real situation. Those are staff and travelers. In this step main consideration is how to train the staff to face for accident situation and provide necessary information and assistance to the travelers.

2.3.1.Staff Training

When it comes to staff training company must decide what kind of training is needed. Also company need to decide who, where and when these training to be conducted. Following are some of the trainings that members of the emergency plan must undergo to act wise and confidently in an emergency.

Basic training

Every staff in the organization must have an idea about emergency procedure within the organization. In this training all the staff will be trained about current emergency procedure in the organization. Following are some sections that are need to cover in this training

Information handling

Evacuation practice

Basic first aid training

Specialist training

When selecting staff for the team, like first aid, communication, etc they need separate specialist training in those fields.

2.3.2.Information to Clients

Before the tour starts tour operator must give information to travelers how to act when an emergency. Following are some important information that can provide to the travelers.

Where is evacuation Places

To whom they must inform when an emergency, like fire, illness, suspicions act. Also the contact details of staff in charge

Where are the equipment to use when an event of emergency

Apart from that it always good to display these information where ever possible to see to both staff and travelers. Company can use following methods to display information

Handouts

Display Boards

Operation Manual

2.4. Implementing and monitoring the plan

After above preparation tour operator must put this plan in to practice. Even through act perfectly right in company create emergency plan, does not entirely mean everything will work without any problems according to plan when in real situation. However it will help people in charge to practice and memories the things they need to do in an situation all though it always create problems when put these plan into practice. So tour operator must monitor the plan regularly and do the necessary changes to the plan. As an example if new evacuation point is created those details must update in to the plan or a member of an emergency plan leaves the operator new one should be appointed accurately.

Anyhow creating an emergency plan that will be perfect for all incidents is like a never ending loop. It always goes in a circle. If there is something new or someone new comes in we need to change the plan accordingly that mean we cannot create emergency plan once and for all and use it, we need to keep on adding changes and monitor it constantly to make it accurate and effective. By implementing this kind of method can have a most reliable emergency plan for the operator.

Training/ Information to staff and client
Implement and Monitoring Plan
Making Emegency
Plan for Accident
CONCLUSION

Accidents in tourism is never a new or surprising thing to anybody, although accidents are common in this sector as many other sectors, tour operators must take enough precautions to minimize the impact of the accident as it will destroy the business they are involved and as well as the future of the industry, there for it is very vital to identify accidents that can occur during a tour programme and take appropriate steps to minimize these accidents and impact on those to the consumers, one generic way is to plan and implement emergency plan that covers most of the accidents and incidents that can take place while at a tour. For this, it is very important tour operator provides relevant training to the staff who are in and provide accurate information, facilities and support to minimize the impact on an accident to both consumers and to the industry itself.

This paper is a research on the factors that have influenced growth in the boutique hotel sector, demonstrating that boutique hotels have become a popular alternative to five star properties. The study methods included a review of the literature and surveys of boutique hotel guests.

Location, high quality, uniqueness, services provided and the personalized levels of service offered the top five attributes attracting guests to these hotels. The growth of the boutique hotel sector may be because of hotel clients looking for alternatives to standard and more traditional accommodation. This paper will investigate the growth of the boutique hotel sector and the factors that influence the consumers’ decision to purchase this type of accommodation.

Introduction. Origin of boutique hotels.

1980’s were the time of the construction boom in the hotel business. Thus, only during 1980-87, the number of hotel rooms in the USA increased by 40%. Economic globalization has not bypassed the hotel industry: nowadays, mergers and acquisitions no longer involve just individual hotels, but the entire hotel chains. Huge international hotel groups are created, such as “Bass Hotels & Resorts”, “Starwood Hotels & Resorts”, and “Carlson Hospitality Worldwide” (Keeps 2006).

At the same time, hotels are becoming more and more comfortable, offering guests new services that previously simply did not exist or were accessible only to guests of 5-star hotels – spacious apartments, cable TV, high speed internet access, recreation complexes, and guaranteed security. But it turns out that the modern consumer is not enough satisfied with what traditional hotel give him; he needs now more than reliability and the program of “earning points” (Bender, 2009).

While the giants of the hospitality industry excelled themselves in the struggle for the customer, constructing mega-hotels – the most spacious, highest, most expensive, with a set of all conceivable service, they have lost the most perspective clientele: relatively young business travelers aged 25-45, rich and tending to everything unusual. Hotel giants are now challenged by small privately-owned hotels, each of which has its own unique style. By analogy with small shops, selling things from well-known designers, these hotels received the name of “boutique hotels” (Bender, 2009).

The first hotel of this format appeared only in the early 80-ies of the 20th century. It is believed that the first boutique hotels – sometimes referred to as design hotels (design hotels or lifestyle hotels) – opened their doors in 1981 on two continents simultaneously: “The Blakes Hotel” was opened in London, South Kensington, sponsored by a former actress, now a famous designer and hoteliers Anouska Hempel, and “Bedford” in San Francisco, located on Union Square. Subsequently, this hotel has become a part of a network of boutique-style hotels exclusively under the administration of one of the most famous players in the market – Kimpton Hotels & Restaurants (Boutique Hotels On The Rise).

In 1984, three years later, the first object named “Morgans” which officially gained the status of a boutique hotel was opened in New York by the famous hotelier, developer and designer Ian Schrager, who is now considered a trendsetter on the market of boutique hotels (Bell 2008).

Definition and Features of a Boutique Hotel

A boutique hotel is a type of accommodation which can be called the embodiment of a design idea of modernity. Taste, luxury and exclusivity are the basic ingredients for the success of a boutique hotel. Further, the paper covers the main components, making up the notion of a boutique hotel (Boutique Hotels Defined).

First of all, a boutique hotel is usually a small hotel, the number of rooms in which rarely exceeds one hundred. The average number of rooms usually reaches 20-30 apartments. According to some experts, the maximum number of rooms in a boutique hotel should not exceed 150, because only in this case, the service may be personalized. They believe that the main feature of a boutique hotel is its chamber character and some mental connection between the clients of the hotel and its staff (for example, in some hotels the staff should know all the guests staying at the hotel by name). Others, including the founder and CEO of “Ian Schrager Hotels” Ian Schrager, believe that the key to the boutique hotel is not a small number of rooms and personified service, but the opportunity to involve the guests into a special atmosphere, influencing all their senses through architecture, design, colors, light and music. For example, these are the main peculiarities of Schrager’s boutique hotels “Paramount Hotel” (597 rooms) and “Hudson Hotel” (1000 rooms) (Bell 2008).

The word “boutique” also determines the degree of comfort and uniqueness of the hotel service. A boutique hotel is primarily a unique interior design. A boutique hotel is not necessarily trendy, but is always stylish. The design of a boutique hotel is often strictly kept within one theme: English aristocratic gloss of the late 19th century or ultra-minimalism, for instance. Nowadays, certain interiors for boutique hotels are developed by the leading representatives of the world’s design art, from Philippe Starck to Christian Lacroix (Craig, 2010).

Special services offered today by boutique hotels form another quality that makes them special. Services provided by various boutique hotels are typically exclusive. For example, the boutique hotel “Benjamin” in New York takes care of guests’ domestic animals; “Manor at Ngorongoro” at the foot of the volcano Ngorongoro in Tanzania offers an exciting excursion to Maasai tribe’s encampment. Classic services of VIP-tourism and boutique hotels also include helicopter transfer or jacuzzi with champagne. The main task of a boutique hotel lies in bringing individuality, sometimes at the maximum level. The style, intimacy familiar to the guests, and palpable contrast to other hotels – these are the characteristic features of a boutique hotel, which is an ideal place for customers looking for a hotel where they can relax and all their wishes will be fulfilled quickly and accurately (Craig 2010).

That is why sometimes boutique hotels are based on old castles or old hotels, i.e. places which have their own history and heritage, providing special individuality of boutique hotels. For the same reason, boutique hotels can often be located in places not originally intended for tourists. Today, they are opened on the territory of former factories, abandoned farmsteads and even aircraft hangars. At the same time, while creating a hotel, designers often try to preserve the atmosphere of the previous premises in order to make the guest feel special. Thus, the customer of a boutique hotel can feel like a character of a fairy-tail, adventure novels, detective or love story (McIntosh & Siggs, 2005).

All the boutique hotels in the world can be divided into 2 groups: urban and resort hotels. Having much in common, these groups still have significant differences. For example, in urban boutique hotels, one of the key factors for success is the location. The hotel must be located in a “landmark” city and preferably in the most popular part of it. The location is determined not only by the concept of convenience, but also by the presence of stylish and trendy neighbors. That is why lots of boutique hotels are located in cities like New York, Miami, London, Paris, and Los Angeles, although recently there emerges a trend of opening boutique hotels in smaller cities with the great potential for future development (Hachisu 2008).

Another situation concerns resort boutique hotels. The hotel’s location is also important here, but fashion placements are often hidden from prying eyes and seek to create a chic and exceptional comfort far away from the civilization, e.g. on remote islands or in wild jungle. Moreover, the more difficult is the road to the hotel, the more stylish and fashionable it is considered. While urban boutique hotels are often full of technical gadgets, from banal DVD-players to exotic electronically controlled beds, resort boutique hotels tend to provide recreation in isolation from technologies; and the lack of phones or TV-sets in the room is not some sad omission, but the deliberate technical asceticism. And this is not a complete list of differences (Lim & Endean 2009).

Another feature of a boutique hotel is that its main target audience is represented by people aged 20-50 with average or high income. The cost of living in a boutique hotel due to its uniqueness is often really quite high. Typically, each room of a boutique hotel is unique and each one has its own price. Today the lowest level of prices per room in a boutique hotel is about 200 Euros per day. This price level is valid for the boutique hotels of Europe, particularly Paris, Barcelona, Florence, Moscow, Istanbul or Rome, as well as for hotels in New York, Mexico City and Buenos Aires (Aiemens 2008).

Thus, by analogy with the trading format, a boutique hotel should be small, should offer high quality services, and provide individual service. Therefore, it should be classified as a five-star or luxury hotel. In addition, such hotels, obviously, should be unique and have impressive interiors. At the same time, there are no single international standards managing the procedure of designation of an object to the class of boutique hotels, so each operator interprets the word in its own way. Today, one can find five-star (ecological “Vida Sol e Mar” in Brazil) and three-star (“Rockhouse” villas in Jamaica) hotels, as well as hostels (“Rooms Deluxe” in Valencia, Spain) among the “boutique” hotels (Parker, 2006).

However, there still exist some characteristics allowing hotel owners to refer to the status of “designer” or “boutique” hotel. For example, when selecting objects for the “Mgallery” network, the hotel chain “Accor” outlines the following conditions: 1) the building and (or) the hotel should have its own history, 2) it should have an outstanding location, known for its unique concept, 3) it should be exclusive in its interior design and (or) the exterior (architecture), 4) it should prove personalized services (The Complete Guide To: European boutique hotel).

It seems that the absence of strict standards, allowing the inclusion of an object to the “boutique” format, opens up great opportunities for operators. Each hotel with small number rooms and apartments should strive to become a boutique hotel, which would sound nice and expensive. In addition, the “individuality”, which is perhaps the only more or less general criterion for this format, can hide the mismatch with the classical standards of hotels in relation to the amount of apartments and range of services (The Complete Guide To: European boutique hotel).

But for some reasons, the hoteliers do not hurry to declare their objects as “designer” or “boutique” hotels. In fact, the status of a boutique produces too many obligations, and it is sometimes easier to position the hotel as a mini-hotel and get free of special obligations to guests. In general, it is rather expensive to build a boutique hotel and it is rather difficult to create a special atmosphere. Thus, boutique is a complex of feelings the hotel wants to give to its guest. The service and staff form the desire to always return to this hotel. At the same time, every privilege entails responsibility (Parker 2006).

Difference between Boutique Hotels and Hotels

That is true, that the majority of population has already got used to the term of “hospitality industry”, and the contemporary hotel business is really a powerful industry. But the question is if the contemporary “industrial” approach compatible to the very notion of “hospitality”, the warmth which is so necessary for the guest exhausted by the current stressful life and willing to feel the same comfort and convenience far from home. And though the competitors accuse “boutiques” in the aggressive behavior on the market and even give them the nickname “boutique terrorists” (the term belongs to John Jarvis, the Head of “Jarvis Hotels”), the secret of their success is rather in their capacity to revive the forgotten “art of hospitality” (Keeps, 2006).

A little more than a decade passed since the time when the American hotelier Ian Schrager first formulated the concept of the “boutique” hotels, and now “boutique” hotels can be found in major business centers in the world – New York, London, Paris, Sydney, Los Angeles. In the vast metropolis, where life is humming 24 hours a day, they are the oasis of peace and comfort (McGinnis 2004).

Generally, boutique hotel differ from the dull monotony of branded hotels with their creativity and imagination both in interior design and style of service. But returning to the previously given distinctive features of the boutique hotels, it is worth noting that sometimes everything regarding them is mistakenly reduces only to the design, but boutique hotels are not only design. Surely, exclusive design primarily determines the individuality of the hotel, but it is designed to help sell the hotel once or twice; later the guests will need something more. And this “something more” is individuality, distinguishing these hotels from just branded ones (Lea).

Saying “boutique hotel”, one always involves the notion of individuality in everything: not only and not so much in service and personification of the customer, but rather in architecture, staff, and atmosphere. According to Ian Schrager, boutique hotels are “subversive. The idea is to do something contrary, something that violates the status quo, and as long as it is well executed it works. If it’s not well executed, then it’s just trendy” (Boutique Hotel Resort Trends).

Compared with other hotels, boutique hotels have one more difference, but rather an advantage in terms of economy. Sometimes, boutique hotels may not spent money on the creation and maintenance of such expensive components, as a restaurant or conference hall. Despite the fact that the boutique hotel may successfully exist without them, the establishment of such services can bring significant additional income to the hotel. So the hotels sometimes rent such premises themselves or provide rent to some other organization (Yanos, 2008).

Besides, the statistics of visits of boutique hotels shows that they have a considerably higher percentage of customers’ return, compared with industry averages. This allows them to better survive in the hard times of economic crises and recessions. Nevertheless, boutique hotels have to constantly monitor the changing market, consumer tastes, fashion trends in the field of hospitality, in order to maintain their competitive advantage and continue to be in the forefront of the market (O’Neill & Mattila, 2010).

Reasons for growing popularity of Boutique Hotels

Experts believe that one reason for the stunning success of boutique hotels are the changes in the customer base of hotels: with the rising living standards the number of rich young clients who travel a lot has increased; they get bored of the monotony proposed by standard hotels and are looking for hotels, which would give them a sense of not only physical but also spiritual comfort (Boutique Hotels Magazine, 2009).

Of course, all of the above does not mean at all that the era of large branded hotel is coming to an end. This is evidenced by the success of giant companies like, for example, “Hilton London Metropole”, which focuses on the congress market, having 1,073 rooms and 39 halls, 2 of which can accommodate 1900 people each, and another – 1300. Its competitor for the title of Europe’s largest hotel is Berlin “Estrel Residence & Congress Hotel”. These hotels, built in the late 1990’s, in no way resemble a “conveyor for sleeping”. Elegantly eclectic, they are different in functional comfort and technological perfection. And the results are explicit – their load rarely falls below 90% (Bender 2009).

The success of such hotels suggests that the needs of the people are changing, and those who want to succeed in the hospitality business of the 21st century, must take into account that the marketing approach to identification of potential customers by demographic characteristics (age, sex, nationality, socio-economic status) is out-of-date now, since these characteristics do not determine the person’s inner world, his desires and needs (McKinney, 2008).

Psychography, which studies the values a certain person is committed to, the feelings that he experiences, his vital interests, and all the things that truly characterize a person, must now form the basis of marketing strategy.

According to Chip Conley, the president the chain of 16 boutique hotels “Joie de Vivre Hospitaliry”, hotel owners should realize that their task is not just to provide people a place to sleep, but to help them implement their dreams. Three days stay in our hotel makes a customer feel a bit more refined, artistic, and intelligent; it even changes one’s manner of speaking. And we win the competition, because we give our guests a unique opportunity to experience their personal uniqueness (Bell, 2008).

The growth of supply always, including the hospitality market, leads to increased competition. The ruined hotels have been acquired by more successful competitors; some of them have themselves asked for that. Surely, in sharp competition for independent hotels it has been more difficult to survive. Life has pushed hoteliers to “chain reaction” (Bender 2009).

Today, fans of the world’s most famous chains can find their favorite hotel in any corner of the world and be at the same time sure that the facilities and furnishings, a set of services, the food, and even the staff uniforms are almost identical in all the hotels of the chain – whether in New York or London, Mexico City or Paris, Moscow or Singapore (Bender 2009).

The unification surely gives the brands significant advantages in the fight for the customer compared to independent hotels, which keep their individuality. Many people are afraid of the unknown. Using the services of a hotel with a famous name, the client having lived in the hotel of the chain is quite aware of what awaits him, and as a consequence, the choice of the hotel is based on the previous positive experience (Bell, 2008).

Originating as small independent companies, managed by private entrepreneurs or small companies, boutique hotels have changed over time and are now represented among the major hotel operators. First separate chains appeared consisting solely of boutique hotels (for example, “Bvlgari Hotels and Resorts”, created with the participation of Luxury Group, a division of Marriott International Company that also managers hotels “Ritz-Carlton”; networks of “SLS Hotels” and “Joie De Vivre” hotels), and then the majors of hospitality market, seeing the success of these hotels and noting the faster growth of income, including rate RevPAR, as compared to conventional network hotels, decided to enter the market of boutique hotels and recapture market share themselves. Among the most striking examples of the recent period are “W Hotels” managed by the well-known international operator “Starwood Hotels and Resorts” (McIntosh & Siggs 2005).

Design Hotel, originally conceived as an alternative to the standard objects of classical hotel chains, today themselves unite in networks: “Boutique Hotels & Resorts International”, “Small Luxury Hotels of the World”, “Select Hotels & Resorts International”, “Relais & Chateaux” are just some of them (Lea).

Investors and Boutique Hotels

Researches carried out by audit firms show that the niche of boutique hotels is very promising from a commercial point of view. Thus, for 6 years, from January 1995 to November 2000, the demand for the rooms in boutiques has increased by 14%, whereas in the traditional branded hotel deluxe it grew by only 4%. The average load in boutiques in 2000 was 74%, which though slightly, only by 1-2% but exceeded the load of luxe hotels. The average room prices (ADR) in the boutiques by the end of 2000 was $ 210 compared with $ 150 in luxe hotels. And RevPAR (Revenue per average room) in the boutique in this case was $ 160 versus $ 118 in luxe hotels (Craig, 2010).

Hotels, owned by Ian Schrager and Bill Kimpton, a chain of hotels “Joie de Vivre” (“Joy of Life” – a meaningful name), and finally the hotels W, created by Starwood Hotels & Resorts, are rapidly filling America, going beyond its borders – recently, the first “W” boutique appeared in Sydney. Interestingly, the hotel was rebuilt from the former wool storing warehouse. Today, the “W” chain includes 16 hotels, 5 of which are in New York. Hotels of the chain are characterized by rather small size for America, unique architectural and design solutions, and exquisite service, which allows them to attract a variety of important clients including the stars of show business (Boutique Hotels On The Rise).

The services proposed to the guest deserve a special mention. Apart from conventional high-quality hotel services like round the clock room service, guest parking, strong rooms for storing valuables, health center and meeting rooms, they offer a service which is not found anywhere else, except “W” hotels – the so-called “Whatever/Whenever” service, which implements literally any desire from a ticket to a fashion show to champagne bath (McKinney 2008).

Life has confirmed the correctness of the chosen strategy of Starwood – in 2000, 12 “W” hotels gave 15% of all incomes of the giant group, and it was not due to gaining over the clients from Westin and Sheraton, also included in the Starwood Group. The nearest plans of Starwood include bringing the number of “W Hotels” to 50-70, going beyond North America (McKinney 2008).

Boutique hotels have become a very fashionable trend in the hospitality industry. Investors want to build them, travelers want to stay there, travel news commentators praise their advantages. But how popular are they among owners? How profitable are boutique hotels compared to other hotels of the class? To answer this question, the company PKF Hospitality Research (PKF-HR) conducted an analysis of revenues, expenses and profitability of boutique hotels that provided their annual reports to the annual study of trends in the hospitality industry. The sample involved only hotels that provided data for all years from 2000 to 2006 (Lea).

For the analysis the boutique hotels of famous brands and independent hotels were selected. In 2006, selected boutique hotels had an average of 166 rooms with occupancy 77.3% and the average price $ 223.23. For comparison, independent hotels were taken by an average of 244 rooms with occupancy 71.8% and the average price $ 140.84 (Yanos, 2008).

From 2000 to 2006, boutique hotels showed a steady growth of the following indicators: occupancy, average daily rate (ADR) and revenue per average room (RevPAR). For seven years, boutique hotels achieved the increase in RevPAR by 162.6%. This was the result of occupancy increasing by 106.1% and ADR by 154.4%. In 2006, income from hotels’ restaurant service was 23.5% of the total income. This is lower than the average number for the industry – 26,7%. Nevertheless, the total revenue of boutique hotels was by the record 56.1% higher than the average for the United States. It should be noted that some of the boutique hotels rent restaurants to other companies, which reduces their share in total income. But the expenses of boutique hotels are also higher. From 2000 to 2006, the expenses of boutique hotels were about 55% higher than the average in the U.S. (Yanos 2008).

Despite the high rates in the period from 2000 to 2006, the profitability of this segment varies widely from year to year. In good times boutique hotels reach record levels, but the decline in the industry in 2001-2003 affected them more seriously (Yanos, 2008).

From 2000 to 2003 the average U.S. hotel revenues decreased by 15,1% and return by 36,2%. Boutique hotels had the same indicators decreased by 25% and 52.9% respectively. On the contrary, from 2004 to 2006, boutique hotels recover from the recession quicker than the rest of the industry. Their income increased by 36,6% and operating profit by 75,5%. Restoration of most ordinary hotels was more gradual: 26,7% and 45,8% respectively. Unstable rates of boutique hotels may be partly related to their predominantly urban location. Largest cities suffered most from the recession, but recovered quicker. Boutique hotels have to pay for their high performance by its instability (Yanos 2008).

The first generation of boutique hotels had many similar characteristics. They were often housed in historical buildings a few blocks from downtown. Thanks to tax rebates for the restoration of historic buildings they could keep costs at a manageable level and redirect most of the money to the interior design. Moderation in construction costs, along with outstanding market performance creates opportunities for return of investment (Hachisu, 2008).

But in recent years, boutique hotels have mainly been built anew without the charm of antiquity, which is associated with boutique hotels. On the contrary, they thrive because of their modernity, fashionableness, style and technological equipment. As a result, construction costs increase, but get balanced by traditionally high rates in this sector (McGinnis, 2004).

The new wave of boutique hotels makes emphasis on the modern surrounding, high-tech electronics, thought-out selection of works of art and fashion individual features, such as living-rooms in the network of “W Hotels”. An example of a new generation of hotels may be the “W Hotel” under construction for the 225 rooms in Hoboken, New Jersey, located on the bank of the Hudson River opposite to Manhattan (McGinnis, 2004).

The project appeared back in 2001 when brothers Michael and David Barry from Applied Development proposed to build a hotel and residential building of the “W” in Hoboken, which was then just beginning to develop. And now the construction of 26-storey building is at full swing. In December, when the hotel opens, visitors will see the beautiful panorama with views of Manhattan, a bar with fireplaces and room for parties for 500 people. Occupancy perspectives now seem more serious than before – five Manhattan “W” hotels are often overcrowded. Hoboken is only the beginning. It is planned to open “W Hotel” in Oak Brook, Illinois, in La Jolla and Huntington Beach in California and in the Coconut Grove in Miami (O’Neill & Mattila 2010).

The largest independent network of boutique hotels Kimpton, which appeared in 1981, has recently opened “Palomar Hotel” in Arlington; it’s their third hotel in northern Virginia, in the suburbs of Washington, where they own seven hotels. The plans of Kimpton include the further development of the network in the province, for example, in Chantilly, Virginia, 25 miles from the city. Nine of the forty-two existing hotels Kimpton are located in the suburbs (O’Neill & Mattila 2010).

Recently new hotels have been opened by the brand “Hotel Indigo” owned by InterContinental in Newton, Massachusetts (near Boston) and in Fishers, Indiana (near Indianapolis). Half of the 17 existing and half of the 62 planned hotels “Hotel Indigo” are suburban, mostly near the prestigious shopping, business and residential centers. The main reasons for locating design hotels in province are as follows:

Tourists are tired of traditional hotels. Business people and young people are especially demanding. For markets where luxury “W” is not required, Starwood formed a network of mid-market hotel segment “Aloft”. The first one will open this year in Lexington, Massachusetts, 10 miles from Boston.

Suburbs are developing. Local business is developing, and large retail chains such as Ikea, Pottery Barn and Target are helping to clear the way for democratization of design.

The cost of land in major cities is growing. It is more profitable to open hotels in the suburbs, where land and construction are cheaper. In addition, there is less competition (Yanos, 2008).

So far, these hotels are mainly being opened in the suburbs of the 25 largest U.S. cities, where one can raise the price higher. And most of these hotels belong to the networks with limited services and no restaurants, such as the “Holiday Inn Express”, “Fairfield Inn”, “Hampton Inn’ and “La Quinta” (O’Neill & Mattila 2010).

In promoting and advertising boutique hotels, it is necessary to remember that these hotels are visited not because they are convenient or comfortable, but, primarily because they are fashionable and prestigious. Therefore, promoting a boutique hotel, like in the case of many other products on the market, where it is not the product but an image which is sold, should be done appropriately. The main task is, as marketing expert say, sending a message. This message in the case of boutique hotels is more important than ever. No matter what it would be: the formation of a special aura of the hotel connected with its location or atmosphere, or a beautifully presented history of the hotel; the main thing is to create a smart and unique product that is then necessary to properly convey to the audience, using various channels: direct marketing, media and public relations, profile travel agencies (O’Neill & Mattila 2010).

Conclusion

Thus, small exclusive boutique hotels have become more popular among affluent travelers, than the major hotel brands. In contrast to the well-known and comfortable hotels, peculiar with their uniformity, boutique hotels can offer an individual approach to the customer’s interests. In addition, nowadays there is a growing demand for luxury and extra comfort among the tourists, while each boutique hotel is the only one of its kind, allowing guests to feel their uniqueness and belonging to the higher strata of society (Parker, 2006).

The owners of hotel chains do not disregard such a promising market. Furthermore, according to findings by researchers from the hotel school at Cornell University, independent hotels have practically no chance to compete with hotel chains. Nowadays, realizing the dominant advantage of boutique hotels, the hoteliers have started creating chains of boutique hotels, which are supposed to have promising future (Aiemens, 2008).

PKF Hospitality Research predicts a relatively stable situation for the next few years. No significant jumps up or down in the hotel industry as a whole, occupancy rates and tariffs is not expected. Given the mobility of economic indicators of boutique hotels, it will be interesting to see how they will show themselves in a stable situation. According to PKF-HR, boutique hotels will continue to demonstrate high levels, but without previously observed strong deviations (Parets 2004).

Rio de Janeiro is the second largest city in Brazil, the third largest urban area in South America and the main tourist destination in the Southern Hemisphere, being the first South American city to ever host the event is a great responsibility. The population of the city of Rio de Janeiro, which has an area of 1,182.3 square kilometers, is about 6,100,000. The population of the greater metropolitan area is estimated at 11 to 13.5 million. It was Brazil’s capital until 1960. In 2009, Rio was elected to host the summer 2016 Olympic Games, winning the election against Chicago, Madrid and Tokyo. The sports competitions will take place on Barra da Tijuca situated on the west side of the city, Copacabana on the south zone, and Maracana and Deodoro on the north side. It may be considered a great accomplishment for the city, however some may disagree that Rio de Janeiro is not fit and does not have financial and secure conditions to be the main focus of the world in 2016. This essay might be of great interest to the people living in Rio and sports fan all around the world planning on watching the Olympic Games, as it describes mainly the city’s geography to host the games. Also this topic might be of interest to people that question if Rio can successfully host such a big event without any casualties and will the city in general benefit from being the center of attention worldwide. The topic is also important for the city which has started planning and making budgets, looking forward for being a successful host, a great amount of money must be invested in long term repair in stadiums and general sports facilities as well as security. Brazilian people are also known for having a great passion for sports and there was a big celebration when Rio was announced to host the games as people want to show the world that Rio is capable of holding such an important event. Controversies regarding Rio being the host for the Olympic Games arise as the city is constantly regarded as un-safe due to the high rates of criminalities and drug dealing taking place in the “favelas” or shanty towns. It is also worth writing about how Rio can benefit from all this development and planning as well as tourism generated from the Olympic Games as other controversies state that the money spent in investment for hosting should be instead invested in education and the economy of the city for further development. The topic will be more focused on how will the city invest on long term plans and solutions to problems, how will the event be evenly distributed through Rio and how will it be good for Rio in the future. Rio de Janeiro may be considered then most “challenging” city to judge and make a prediction if it has the capacity of hosting the biggest sports event in the world. Barcelona, Sydney, Vancouver, and London are considered to be more developed as they are located in More Economically Developed Countries and have more developed infrastructure as well as taking efficient anti-terrorism methods.

Although the city is considered a great tourism tropical destination, studies reveal that the city lacks infra-structure, educational means and is affected by great poverty with a large number of the population living in slums. Due to these facts, a part of the population demanded the money to be invested in those means helping the city develop, instead of building sports facilities. It is also estimated that by 2016, the whole nation is capable of eradicating extreme poverty, however for this to happen Brazil must maintain its developing process shown in the last five years. Counter claims may argue that the Olympic Games will bring an excessive amount of profit due to tourism and sponsoring as well as jobs being generated (the city also show significant amounts of unemployment). The government however states that all security and geographical issues were presented to the Olympic committee and was approved almost unanimously, being confident in the long term plans as seven years of preparation seem enough. Another research, states that Rio will manage to achieve a target made by the UN that states must decrease levels in poverty by 50%. There is a lot of statistical data that implies that Rio de Janeiro will manage to achieve sustainable levels of economy, and poverty by the end of 2016, however measures must be taken and the process of development shown in past years must be maintained. 50% of the events will take place on Barra da Tijuca, which is a developed area, with less poverty and almost no slums as well as a wide space and facilities built from the Pan-American games. The transport system is also well developed with a network of trains, buses and subways linked to other sides of Rio where other events are going to take place. Promises were made to the Olympic committee that the Guanabara Bay and Rodrigo de Freitas Lagoon will be cleaned sp water sports can be held. A bullet train linking Rio de Janeiro and Sao Paulo was also presented to the committee which will play a big role in the transport system if introduced before the Olympic games.

Recent researches and statistics show that there are more than one thousand favelas spread through out the city with the majority of them being located on the north side (Zona Norte). Also a statistical map indicates that 20 to 30% of the population living in Brazil, live in a slum. This can be significant data while analyzing the city for hosting the games as each slum is dominated by drug dealers and criminality and safety around them can become an issue for the development of Rio until 2016. For the development to be maintained, the city must invest in a crucial factor which is safety. Safety is considered weak in almost every event held although casualties regarding them are rare. For the games to be hosted in the north zone of the city for example, which is considered to be one of the highest rates of criminality in the world due to drug dealing and poverty, long term measures must be taken. An example of long term plan by the government which already started to be implemented in 2009 is the UPP (Unidade de Policia Pacificadora) is a unit of the military and civil police designated to eradicate and exterminate drugs and arms. The UPP have been very successful just recently where a total of eight slums have already been pacified and are controlled by the government. The police which also have a history of corruption within the state, trading with dealers have been mobilized to end illegal dealings in the slums, with the intention of offering more safety by 2016. This method seems like the most appropriate measure in increasing the security issues of the city, and if it continues to develop and spread throughout the city a significant increase in safety will be applied to the event. The UPP would greatly help the city in the developing process for hosting the Olympic Games as studies made reveal that if every slum in the city is occupied by the government, an increase in 20% of the PIB (sum of financial production) which would represent 38 billions reais for the development of the city as well as an decrease of about 80% of criminality. This is the most efficient method of violence contingency shown and is the key for offering security during the Olympics, however it is a very hard task and taking into consideration past government activities, it will take probably more than seven years for it to be implemented with success. In almost one year that the UPPs were implemented a huge profit and efficiency was achieved with a significant decrease in violence in the surroundings, so in seven years of preparation for the Olympic Games, the governor of Rio Sergio Cabral guarantees that the project will continue. However the government must not forget a big threat to security of Olympic Games, which is international terrorism. Therefore a certain amount of training is necessary and constant monitoring.

Looking at the recent past, Rio de Janeiro has hosted an important event similar to the Olympic Games which was the Rio 2007 Pan-American games, and no problems were faced. The money was well invested and the games were a success by generating jobs ad tourist attractions. However the Olympic Games are a much bigger event with a wider variety of activities therefore more space and planning must be taken into consideration. On the contrary of some people may think, the developing process to host the games can bring even more benefit and help the city show a significant growth internationally, as even more jobs can be generated as well as tourism. However, Rio currently really needs investment in security and education, so how can it benefit by hosting the games? Firstly, the Olympic Games further increase the world’s awareness of the city. In Beijing, China, for example the number of headquarters for multi-national companies and large-scale domestic enterprises has multiplied ever since Beijing started its Olympic preparations. The preparations for the Olympic Games can also help update the functions of the city such as environment, transportation and infrastructure. Taking Beijing as an example, the Olympic introductory work will also ease the city’s economic growth. Beijing’s GDP rose to 102.6 billion dollars in 2006, twice as much as in 2001, as its GDP per capita exceeded 6300 dollars, also twice as much as in 2001. With this significant increase in the economy of the city, the number of tourists in Rio which is already very big may increase by more than 1.5 million. Another good past example, in the Winter Olympic Games in Vancouver, the benefits have been projected to be $10 billion. Another fact which can cause a great impact against Rio for hosting the game is the fact that the city is one of the 12 chosen to host the 2014 FIFA World Cup, and is considered to be “not in the right path” by the FIFA. Brazilian venues are falling behind schedules and little work has been carried out in the last 25 months after the announcement, constructions and general repairs are late. Inspections have been held and it is proven that Rio along with other cities has not met the deadlines of repairing stadium which are the main attraction of the World Cup. Upgrades in the main stadium are yet to start and are still lingering, which sounded an alert to the FIFA that Brazil is already late. Rio has managed to successfully host a World Cup in 1950 although conditions and requirements were less strict, and maybe with all these upgrades, constructions, jobs and increase in security for 2014, some of it may in fact be useful for the Olympics two years later. The city will gain infra-structure and general increase in security and sports facilities with the world cup in 2014.

Generally, not only in the case of Rio, revenue is generated for national companies, the image of the city worldwide is improved and the flow of tourism is improved. But accelerated growth necessary in hosting the Olympic Games disrupts the long term town preparation of the city and cause long term negative effect. On the other side there are the costs for developing facilities necessary to host different sports, as well as the financing for the “Olympic village” were the athletes must stay, with a significant amount of money being invested in transportation and security. However if the money is invested in schools, hospitals or other public, employment could still be created, sometimes even more and are considered permanent institutions. After the Olympic Games, sports facilities will have obviously less value will be less used and not so significant in helping the city and economy to develop. The employment and part of the benefit brought by the Olympic Games may be considered rather temporary as well as few significant long term growths linked with the games. Although there is a temporary boost in the output of the economy, in the long term there is barely some change. Therefore these “temporary” and necessary changes to host the Olympic games, can be of great use long term for example security. As the city invest on security and decreasing levels of criminality for the games, it helps to exterminate an old problem of the city which is the criminality. There are counter claims for this argument as all these improvements for changes including the UPPs are temporary and monitoring may decrease shortly after the Olympic Games. In the end, the money spent by tourists during the games might not be sufficient to cover all costs even if they bring benefit to the city. Especially Rio needs to invest in public institutions and education, more than Vancouver and Sydney for example. Although there are major problems and uncertainties a list of benefits can be made such as: with world class facilities built future events may be held, new construction project generating jobs, spectators, sponsors and broadcasting make the city “the center of attention worldwide”, powerful “marketing tool”, increase reputation resulting in a long term benefit for economy, international recognition and etc. The country itself still needs to study how to do permanent public policies as no strategic planning happened in the Pan-American games. In the case of Rio, which still faces cases of prejudice and stereotype against low class civilians, jobs being generated can really fix an old problem in which people living in shanty towns face unsuitable living conditions, no access to sewage disposal and clean drinkable water with high levels of crimes, unemployment and low incomes.

Just recently, a very serious case of flooding took place in Rio. A natural disaster is a rare however alarming event in which developed cities are supposed to be prepared for. Rio de Janeiro is expected to cope with any sort of situation; however in April 2010 the city faced the biggest flood in the history of Rio with an astonishing 288mm of precipitation in less than twenty four hours. A total of 95 people were confirmed dead mainly as a result of land slide and, of course, became news headline worldwide. It became clear that Rio did not support an appropriate infra-structure and was not prepared for such a disaster. The poverty surrounding the city was also highlighted as land slides in shanty towns killed and injured dozen of people, as well as interrupting several activities during two whole days. The government however states that it is impossible to maintain a controlled situation with such a huge amount of precipitation which was never seen before and especially when Rio is still going through a big process of development. International repercussion is common as it is clearly a matter of safety, and the spectators and athletes waiting so long and traveling so far for such an important event wants safety. Methods of future flood prevention are being studied, such as the creation of flood plains, winding streams and levees. Each method can contain drawbacks and a huge amount of effort however a good way to prevent future accidents.

Rio’s Demographic transition model can be seen above with the central business district in the middle and a large area of “Favelas” in the surroundings. It is clearly not balanced and the games will be held around the CBD with a few exceptions through “B”. Below an urban morphology and characteristics map of Rio de Janeiro can be seen as the higher class districts and CBD is concentrated near the coastline with the suburbs in the rural area.

As a conclusion, Rio de Janeiro has the conditions to host the summer Olympic Games with success, however it may not bring the expected amount of benefit. Seven years of planning and introducing extreme measures to overcome major problems in the city will not be a problem. Significant increase and development regarding security, and economical growth in Rio de Janeiro has been shown in recent studies. Just recently Rio has hosted a big sports event which was the Pan-American games with great success and no casualties bringing even some benefit. The population in general has been very excited with the decision of the city for the host as it is already a tourist destination and improvement for the games will help the city in the future. However Brazilians in general shows great passion towards sports mainly soccer and shows great enthusiasm and cooperation when the result for Rio being the host was announced, and as a result can forget about some major issues the city need to take care of as a part of its development before making such a big investment for an event such as the Olympic games. In order for a conclusion to be made the goals for the city must be analyzed first. So, is it good for the city to organize the Olympic games? For example Vancouver and London which are already considered developed and share a good outside image, having few ambitions and determination for growth may not achieve such a great improvement in their image and economy, and sports facilities and changes might be made redundant. However cities in development like Rio and Beijing may have the ambition of showing their development and improving their image and showing the world they are competitors to host other future events. Even internationally, it is questioned if Rio can host the Olympic Games, due to security reasons as one week after the announcement, fourteen people were killed and a chopper was shot down on a operation in a favela. However there is the argument that Brazil is not affected by terrorism, like London for example. For a successful prediction to be made if Rio can host the Olympic Games, the past major event hosted must be analyzed, which is the Pan-American games in 2007. The same argument that was used in the Pan-American games were used to convince the Olympic committee, that it was Brazil’s turn to show what is it capable of, one of the 10th largest economy in the world and a population that have and indefinite passion for sports. The aftermath of the Pan-American games did not quite show any transformation into a more modern, international and safer city. Promises were also made in 2007 that criminality would decrease, a new road system (“via light”) and 55km of subway lines would be introduced as well as cleaning up the Lagoon located in the centre of the city and finally the Guanabara Bay, whose smell assails visitors driving into town from the international airport. Although hundreds of millions of dollars have been spent, the unpleasant smell persists and the bay remains a foul-smelling spot on the landscape. Chico Alencar, a respected Congressman from Rio and also a researcher for the enormous overspending at the Pan-American games revealed that the games ended up costing much more than the original estimate (about 180 million US dollars) and none of it was used to built the promised infrastructure projects. After the Pan-American games, the city came back to its original “mess” although a four week celebration was given to the people and athletes, and the same problems faced back in 2007 might be the same in 2016 but the sports event is even bigger. Therefore there is a tendency that Rio will spend even more money on this bigger event, maybe halting the development of other areas in need. Brazil in general needs to learn from its past mistakes and areas of society must unite for no overspending. Finally, other questions rises when analyzing if Rio can host the Summer Olympic Games and can it benefit from it such as: Can Rio learn from past mistakes (Pan-American games)? Can the city keep its promises for development? Will the infrastructure provided be sufficient for hosting such a big international event? Will current issues such as security be a problem and can the city overcome it? These questions are still left unanswered, but Rio has been given a chance to prove critics wrong after an almost unanimous decision against more developed cities.

Read more: http://www.time.com/time/world/article/0,8599,1926094,00.html#ixzz0k9Ts0zcY

http://geographylost.blogspot.com/2007/03/rio-de-janeiro-wish-i-had-found-this.html DTM maps

http://en.wikipedia.org/wiki/2016_Olympics

http://en.wikipedia.org/wiki/Rio_de_janeiro#Geography

http://pt.wikipedia.org/wiki/Favela

http://pt.wikipedia.org/wiki/Ficheiro:Urban_population_living_in_slums.svg fatos e figures de favela

http://www.sober.org.br/palestra/12/11O481.pdf

Indice de Pobreza pode ser erradicado do Brasil em 2016

http://www.ipea.gov.br/sites/000/2/comunicado_presidencia/100112Comunicado38.pdf – prediction brazil 2016 vai acabar pobreza

http://mercadoetico.terra.com.br/website/wp-content/uploads/2009/03/grafico1.gif – meta onu

http://mercadoetico.terra.com.br/website/wp-content/uploads/2009/03/grafico2.gif

VEJA RIO magazine – “Operacao Favela Livre”

http://en.beijing2008.cn/news/official/preparation/n214180326.shtml pequim

http://minimaxblog.com/2010/03/costs-and-benefits-of-hosting-the-olympic-games/ costs benefits

http://goodpoint.elc.polyu.edu.hk/print_list.php?mapid=2244

list of benefits

http://www.rio2016.org.br/pt/Rio2016/

http://oglobo.globo.com/rio/mat/2010/04/06/rio-vive-pior-enchente-da-historia-916261532.asp flood

http://www.telegraph.co.uk/sport/football/world-cup-2010/teams/brazil/7686639/World-Cup-2014-Fifa-sound-alarm-as-Brazilian-venues-fall-behind-schedule.html world cup

This mini report aims at providing valuable information on the chosen research topic of sustainable tourism. The report aims at looking deep in to the topic by drafting the core literature of the topic followed by methodology and some finding and conclusion.

This report reassess the growth of the term, commencing with a debate of the confusion arising from the vague and contradictory definitions of the concept, and the need to differentiate between sustainable tourism and the development of tourism on the main beliefs of sustainable development. The paper then re-examine the green focus of consultation of sustainable tourism and disagree for the need to ensure that the impression incorporates and is functional to the human environment as well as the physical environment. Concentration then moves to effort of haulage capacity, organize of tourism development, and the implication of the term to mass or conservative tourism. Last but not the least, the mini report concludes with a discussion of the prospect way of sustainable tourism and the probability of expansion moving in this direction.

Tourism in the current millennium, correctly managed, has the latent to partake in, revolutionize and recuperate the societal, political, cultural, as well as the ecological magnitude of people’s potential lifestyle. In this new era, one of the maximum purposes of this policies and philosophies of tourism will be to cross-examine the cultural, economical, political as well as environmental reimbursement of tourism for the people, destinations and countries in order to prolong a healthy lifestyle (Edgell, 2006) Moreover, sustainable tourism can certainly become a major vehicle for realization of mankind’s uppermost ambition in the mission to attain affluence while maintaining social, ecological and environmental veracity (Edgell, 2006).

As such there is no particular definition of sustainable tourism. Complementing this, (Swarbrooke, 1999) mentions that sustainable tourism can be defined as the type of tourism which is ecologically practical but does not destroy the resources on which future tourism depends remarkably on the bodily environment as well as the social structure of the multitude community.

Aims and Objective

To review the topic of sustainable tourism

Measuring the growth of sustainable tourism and answering the research question of is sustainable tourism consistent.

Literature Review
The tourism Industry

The tourism industry today has reached a considerable level in terms of profits, number of tourists at varied destinations etc. In addition, the tourism sector has grown tremendously in the last decade providing visitors with a ur plus of destinations to visit. There have also been different types of tourism that have been developing namely, sports tourism, animal tourism, destination tourism, etc. Moreover, the type of tourism in the current lime light has been sustainable tourism as this is now playing a vital role in environmental issues (Edgell, 2006). Furthermore, details about sustainable tourism have been mentioned in the report further.

Sustainable Tourism itself

One of the main problems with the idea of sustainable growth is the method in which the solitary word ‘sustainable’ has been useful to a diversity of performance pedestal on the supposition that it takes with it the ideological and theoretical inference of the thought (Harrison 1996). In the case of tourism, the effect has been the exterior and prevalent espousal of the term ‘sustainable tourism’, repeatedly devoid of any shot to define it (Hunter and Green 1995).

In the situation of tourism, an apposite classification of sustainable tourism is ‘tourism in a form which can continue its practicality in a vicinity for an indistinct period of time states (Butler 1993). Tourism at places such as Niagara Falls, London, Paris or Rome, is extremely sustainable. It has been winning in that place for years and depicts no cipher of declining. With such a definition, the importance is on the preservation of tourism, but in most issues, tourism is rival for capital and may not be the top or wisest use of possessions in these locations in the future..

The above mentioned definition, though, is not what is usually unspoken by the term ‘sustainable tourism’. Somewhat, relying on the present literature, what is in general meant by that term is as follows: tourism which is developed and maintained in an area in such a mode and at such a extent that it leftovers practical over an unlimited epoch and does not mortify or adjust the environment in which it survives to such a level that it proscribes the triumphant expansion and well being of performance and processes. (Butler 1993)

The dissimilarity between these definitions is not just a theme of semantics. The meaning of sustainable tourism above mentions very modest about something except the future of tourism. Wall (1996) has noted, a single sectoral approach, a little that is at odds with the thought of sustainable growth, which by its extremely environment is holistic and multispectral. Thus sustainable tourism is not unconsciously identical as tourism urbanized in line with the philosophy of sustainable advance. As long as it is this way, then haziness and uncertainty will go on. Therefore the need to label the type of tourism being intentional or developed beyond the catch-all of ‘sustainable’ is therefore critical, if information about the sustainability of tourism is to be long-drawn-out.

Major issues in Sustainable Tourism

The key term in this concept is the one of restrictions. However much proponents of growth may disregard the detail, implied in the impression of sustainable progress is the thought of confines. In the case of tourism, this is usually articulated in terms of numbers of tourists; though implied in this is the linked infrastructure development and scenery modifications.

While accepted wisdom on carrying capability has been tailored really since the 1960s, researchers were looking for the ‘magic number’ of guests who could be put up at a specific spot, the distress of volume still remains (Butler 1996). though it is by and large traditional that numbers unaided are not an fully pleasing measure of the belongings of tourism, there is hesitation that, in approximately all tourism contexts, there is a utmost figure of tourists who can be productively house.

The detail remains, but, that in approximately every imaginable context, there will be an higher limit in provisos of the information of tourists and the quantity of advance associated with sightseeing that the target can withstand mentions (Shipp 1993). Once these echelons are surpassed, by and large in undesirable form. The environment of tourism itself modifys, the natural world of the purpose changes, the attractively and therefore the feasibility of the purpose declines, and tourism becomes no longer sustainable in its original form. If overeat and overdevelopment continue unabated, then any form of tourism may become indefensible in that location (Butler 1991; Cooper 1996; Zanetto & Soriani 1996).

‘An input part of scenery aim for sustainable tourism is the establishment of the tourism carrying faculty of a destination area’ (1996). In fact little, development suggestions classify or advise such restrictions. If sustainable increase ethics are incorporated in expansion plans in everything more than name barely, they are as a rule understood in indistinguishable terms which are long on sentiment and short on details.

This is describes, in part, by the detail that researchers and policy makers in tourism have never grabbed the agitate of haulage capacity or confines and have never fashioned measures that could be used in such contexts (Butler 1996). The burning necessitate to take such steps at the local altitude as well as at new superior levels of government has been harassed more strongly just (Coccossis &C Parpairis 1996; Johnson and Thomas 1996).

Methodology

The research methodology enables the researcher to collect the significant and relevant data for a particular research. In order to understand the recent developments in sustainable tourism, a secondary research has been conducted. Data in this research has been analyzed using graphs and charts. Some of the data is also presented in the discussion format to get the deeper knowledge. Moreover, secondary data included google books, academic articles as well as research journals in order to find accurate and precise data. Industry professional interviews were also considered.

Findings and Conclusion

In trying to identify where the state of the art of current research on tourism in the context of sustainable development stands is rather difficult. There is now a sizeable body of literature on this subject, which is growing rapidly. The topic has even resulted in the appearance of a journal {Journal of Sustainable Tourism) devoted to this field. A great deal more research by geographers and others has been conducted and is just reaching the publication stage (Pigram &c Wahab 1997; Hall &C Lew 1998; C. Becker, University of Trier, personal communication). Thus one cannot conclude simply that there is little written and that much remains to be done, nor can one argue that the key questions have been resolved. Although a great deal has been written, particularly in the last 5 years, I feel that much research does still remain to be undertaken. The key problem, in my mind, is the current inability to define to the satisfaction of all, or even most, of the stakeholders in tourism, exactly what is meant by ‘sustainable tourism’. As noted above, this remains a major problem and, because ambiguity exists, almost any form of tourism can, and often is, termed sustainable. Related to this fundamental issue is the question of how sustainability might be monitored and measured if and when a satisfactory definition of sustainable tourism is established and accepted. It is clear that current research in all disciplines involved with tourism has not really tackled the problem of monitoring the effects of tourism in any context. Despite the real need to benchmark and monitor, first called for many years ago (Mathieson 8>C Wall 1982), such efforts have, by and large, been at best sporadic and non-systematic. Given the hype that exists in industry and political circles to persuade people that much is being done to achieve sustainable tourism, there is implicit, if not overt, opposition to research that might show that very little new or existing tourism development is sustainable, or at best that a decision on its sustainability cannot be made for many years to come. Also, many proponents of the idea of sustainable tourism seem unwilling to accept that, because an operation calls itself sustainable, it may not be so in reality. To assess the real impacts of tourism and the level of sustainability achieved requires in-depth longitudinal research and environmental, economic and social auditing. This requires stable funding and a willing- ness on the part of researchers to commit to a research programme for a considerable period of time. There is very little evidence that this sort of commitment currently exists and good long-term research on sustainable development in tourism or any other field is extremely scarce (Wall

1996). One can argue, therefore, that the greatest research need is to develop measures of sustainability and to apply these to existing and new forms of tourism development to help determine what affects sustainability and how it can be achieved; in other words, to operationalize the concept and evaluate it in operation. This is far more complex than it sounds because, as discussed above, a multi-sectoral approach is essential, and this requires much more than simply estimating the direct effects of tourism on the physical and human environments of destination areas.

Even when the elements and processes of sustainability are identified and understood, there is still no guarantee that it will be practised in destination areas. It will be necessary, if sustainability is to be achieved, to ensure that all stakeholders are willing participants in the process. If the industry, at all scales, cannot be persuaded that it is in its own direct interest to commit to some principles of sustainability, then efforts ofother stakeholders will have little effect. If the public sector is not willing to educate and, if necessary, enforce sustainable policies and actions, then few are unlikely to follow them. Simply listing appropriate actions and strategies and calling for their adoption (Table 2), as some governments have done (Tourism Canada 1990), is but a first step – specific action and enforcement are necessary as well. If local residents cannot see the short-term as well as long-term benefits to themselves of sustainable policies, they will subvert or ignore them. Finally, if the tourists themselves do not enjoy or anticipate satisfaction from sustainable forms of tourism, they will not participate and not visit destinations geared to offer this type of tourism. One of the other tasks facing researchers, if they wish to ensure the application as well as the understanding of sustainable development of tourism, is to find ways to ensure the necessary policies and actions are acceptable to all stakeholders in tourism. Simply saying that all is well and that sustainable tourism is the way of the future because there is a growing interest in the concept will not ensure its adoption or success. At present, there is a disturbing tendency, in the desire to promote sustainable tourism, to claim that any small-scale, environmentally or culturally focused form of tourism is sustainable, particularly where it is developed by or for local residents. In the absence of accurate and reliable indicators and monitoring, one cannot comment on the sustainability of any enterprise until many years after its establishment, and only then, after comparing its operation and effects, to the state of the environment at the time of its establishment. Given that the term sustainable development did not enter the lexicon until 1987, it is still too soon to say if anything created since then is truly sustainable or not.

Cruise Tourism is one of the major growth areas of world tourism Peisley, 1992; Hobson, 1993; Cruise Lines International Association, 1995. According to the Economist Intelligence Unit:

There seems little doubt that, by the turn of the century, cruising will be firmly established as one of the world’s major tourism industries with significant markets in North America, the UK, Europe and Asia. The total number of annual passengers will have reached 8 million plus –

Cruising is the fastest-growing sector of the international holiday scene (The Passenger Shipping Association, 2003). Cruise tourism can be defined as the use of ships for pleasure cruising and not merely for transportation (UNWTO, 1997). Ocean and coastal cruise tourism is unique in the manner in which it provides a combination of transportation, accommodation, entertainment, retail and destination services. Cruise liners can be regarded as floating resort facilities, which have the major advantage of seasonal repositioning.

From its predominantly Caribbean base, cruise tourism has spread across the world, increasing ports of call in all regions. As well as this, river and canal cruising has grown rapidly, particularly in Europe and China. The cruise industry is growing, expanding and accessing new markets by, in part, bringing into reach a diversity of popular and successful destinations that are new for cruise tourism, by exploiting previously under-utilised ports (Younger, 2003).

2.1.1 The cruise industry

The growth of the cruise market throughout the world, and perhaps more notably in the United Kingdom (UK) has been one of the most remarkable phenomena of the 1990s (Wild & Dearing, 2000). The cruise industry is the fastest growing segment of the travel industry – achieving more than 2,100 percent growth since 1970, when an estimated 500,000 people took a cruise. Industry estimates are that 13.5 million people took a cruise vacation in 2009, with a total of 14.3 million passengers forecasted to sail in 2010. (Cruise Lines International Association [CLIA], 2010).

In early 2001, 64 new and larger capacity ships were in production, expanding passenger capacities by 35%. More than 50% of these ships are dedicated to the United States tourism market and are now operating throughout the Caribbean (Sparrow, 2004). The cruise industry’s growth is also reflected in its expanding guest capacity. Nearly 40 new ships were built in the 1980s and during the 1990s, nearly 80 new ships debuted. By the end of 2009, over 100 new ships were introduced since 2000, with 12 new vessels on the way for 2010. (CLIA, 2010)

These new vessels carry more passengers, more crew, generate more waste and consume more goods and services.

2.2 Theoretical Framework

According to Weaver and Oppermann (2000), tourism is a complex phenomenon involving many actors and interactive factors. Some of the actors are tourists, tour operators, cruise lines and airlines. To be able to understand the complicated nature of the tourism industry, a system based approach is suitable. Leiper’s tourism model can be used as the theoretical framework as it views tourism as a form of a system in which there is an operational structure built up of interacting components. Leiper who was an early supporter of the adoption of a systems approach towards understanding tourism defined tourism as:

. . . the system involving the discretionary travel and temporary stay of persons away from their

usual place of residence for one or more nights, excepting tours made for the primary purpose

of earning remuneration from points en route. The elements of the system are tourists, generating

regions, transit routes, destination regions and a tourist industry. These five elements are

arranged in spatial and functional connections. Having the characteristics of an open system,

the organisation of five elements operates within broader environments: physical, cultural,

social, economic, political, technological with which it interacts.

The components of the tourism system are shown in the model below (fig 1.1). This whole tourism system approach helps to organise our knowledge about tourism and its relationship with cruises. Leiper’s approach was to try and understand destinations, generating areas, transit zones, the environment and flows within the context of a wider tourism system rather than seeing them as separate independent entities.

In the model there are three interactive components: (i) the tourism generating region, (ii) the destination region and (iii) transit routes which link the two regions. It is evident that transport forms an integral part of the tourism system by linking the tourist generating and destination regions together. Collier (1994) classifies tourism transport on several bases (e.g. public or private sector transport, water/land/air transport; domestic and international transport and mode of transport). Cruise tourism is considered as a system in which cruisers and operators are major actors. The tourism-generating region and the destination region are linked together through cruising which is also a tourism product. This makes cruise ships a unique form of tourism transport. People go on a “cruise” more than they go to a place. And yet their major competition is not other forms of transport but real places. As Morrison et al. (1996: 15) put it:

Instead of competing with the airlines, the cruise lines have become their

partners and now compete with destinations, resorts, and other vacation

alternatives. The cruise ship itself has become a floating resort providing the

maximum possible leisure and entertainment facilities.

However Leiper’s model has been criticized for being simplistic (Prosser, 1998). Prosser provided a more detailed model that, he claimed, represents more effectively the inner complexities of the tourism environment.

2.3 SWOT analysis for Mauritius

SWOT is an acronym where the letters stand for Strengths, Weaknesses, Opportunities and Threats. It is a commonly used analytical tool in business environments that has become firmly established in the literature of strategic management (Evans, et al. 2003). A SWOT analysis is a useful way of assessing the situation that a destination faces in its effort to develop cruise tourism.

. According to Weihrich (1982), the SWOT analysis is the process of analysing organisations and their environments based on their strengths, weaknesses, opportunities and threats. This includes the environmental analysis, the process of scanning the business environment for threats and opportunities, which is considered as external factors, and the organisational analysis, the process of analysing a firm’s strengths and weaknesses as internal factors.

Internal factors
Strengths
Weaknesses

A strategically located port in the Indian Ocean

Capacity and Infrastructure constraints- too few berths

Safe and wonderful tourism destination

Cyclonic period during the months of November to May

Pleasant climate practically whole year round

Nautical constraints- For many big cruise vessels at the same time

Variety of land-based and water-based attractions

Poor maintenance of beaches and attractions

A great variety of cultures

Low awareness in the market about cruise tourism in Mauritius

Relatively good basic structures(hospitals, roads) and a good transport system

Mauritius considered as an expensive destination and not within the reach of many

World class quality services by Tour Operators, Hotels, Restaurants, and Travel Agents.

Poor service at the port and untrained staff

Minimum formalities on arrival of cruise vessels

Poor road links to certain location and place of interest

Lack of industry cohesion

No strategic plan at MPA and MOT level

External Factors
Opportunities
Threats

Estimated two million tourists by the year 2015

Seasonality of the industry

Brand name- ‘Ile Maurice un plaisir’

Threats by terrorists and Somalian Pirates

The cruise market Potential is strong for Regional/ International growth

Competition from other exotic tourism destinations

Improvement of physical infrastructure including adequate parking facilities at places of interest and other recreational areas

Likely increase in oil prices affecting cost of travel

Political stability of market of origin

Economic uncertainty- late bookings and close-to-home cruises to avoid expense on flying

Air network expansion facilitating Fly-cruise concept

Strong growth of European demand (German, French and Spanish markets)

2.4 Sustainable development issues of cruise tourism:

Although a relatively new phenomenon, tourism has become one of the world’s largest industries in recent years. According to the World Tourism Organization (WTO, 2004), “sustainable tourism development meets the needs of present tourists and host regions while protecting and enhancing opportunities for the future”. In 2008, International tourism arrival reached there were 922 million worldwide, with a growth of 1.9% as compared to 2007. (WTO)

Given its total significance, it is not surprising that the tourism industry has a substantial environmental impact. In particular, tourism development is associated with environmental problems like deforestation, soil or beach erosion, and coral ecosystem destruction. Since tourism development also tends to result in rapid urbanization, it can contribute to such problems as increased air and water pollution, as well as inadequate solid waste management (Baver and Lynch 2006, 5). The scale and gravity of these impacts tend to be amplified in the Caribbean, where the environment comprises some of the most fragile ecosystems on earth, including beaches, coral reefs, and tropical forests (Lynch 2006, 158).

‘When sustainable tourism has been applied to the industry, more emphasis has been given to tourism’s effects upon the environment and economy, rather than to factors related to its effect on communities’ (Hardy et al, 2002: 491)

Cruise tourism is currently going through a period of revival with new vessels being launched and sailing to ever more exotic places.

Criticisms

Hunter (1997) argues that different interpretations of sustainable tourism are appropriate urder different circumstances. The study of sustainable tourism should not be a rigid framework, but an ‘adaptive paradigm which legitimizes a variety of approaches according to specific circtimstances’ (Htinter, 1997: 851).

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

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

2. Review on the Strategy Used by Premier Inn

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

2.1 Marketing Strategy

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

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

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

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

2.2 Operating Strategy

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

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

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

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

3. Evaluation on the Strategy Used by Premier Inn

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

3.1 Political Factors

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

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

3.2 Economic Factors

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

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

3.3 Social Factors

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

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

3.4Technique Factors

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

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

In general, we think the strategy used by Premier Inn is very appropriate under the current situation. But the problem is that it is too much reliance on the international tourist industry. Once the outbreak of the economic crisis, this mode of operation is very dangerous and company may get into trouble. Actually, the domestic business and conference market is a buoyant sector for hotel (1996); meanwhile the economic gradual recovery will help to stimulate the hotel market. So Premier Inn should make some strategies to attract these potential consumers.

4. Conclusion

In this paper, we focus on the strategies used by Premier Inn after the serious economic crisis. The article mainly analyzes the marketing and operating strategies with PEST analysis in the current situation. In general, we consider that Premier Inn has adopted appropriate strategies to boost its development. But the problems in the strategies were pointed out. In the author’s opinion, Premier Inn should pay more attention on its domestic market.

Ecotourism can be seen as a solution or contribution to the problems related to environmental conservation, and also as a threat. This is because by promoting the integration of locals and tourists to areas of high ecological value, such as natural reserves and forests, fauna and flora of these sites may be affected negatively. In addition, ecotourism promotes the development of infrastructure and facilities that protect the activity, such as gazebos, trails, eco-lodges, among others. Similarly, it is critical that only promotes local economic development. On the other side, ecotourism activity helps keep wildlife healthy. Some places, like the Galapagos Islands, ranches in Namibia, wetlands in Brazil, among others, thanks to tourism and what derives from it, residents of such places are motivated to work for conservation, in the way to keep a tourist activity.

Ecotourism is more than people visiting a new place, it has to do with the environment and the activities in which a person involved that may harm the environment.

There are some objectives that were implanted with ecotourism:

First of all, the most important aim that emerged from the implementation of ecotourism is that travellers need to be more aware of the environment and damage, their actions as travellers and members of the society on earth.

The main objectives are to minimize the potential environmental impact on natural and cultural environments of sites visited. Generate awareness about the nature and care. Tourism experiences that are favourable for visitors and locals.

Funds arising from these tourist activities to the preservation of the place are one of the ends sought to ecotourism, thus establishing the basis for the maintenance of ecological tourism and growth. Funds like these can improve economic development that can lead of having more activities and ways that tourists could use and admire the nature of the land without destroying it.

Another factor that usually does not consider is that ecotourism is a source of income for civilizations not too close to the cities. Usually, they have the same attraction for a city because in reality, there is much to do in a forest or something. But nature has much to offer as well. So if the countries with the special nature can find activities that the public would like to participate, visit the site and those who live there are going to collect the benefits of nature.

UN acknowledges in its report “World Resources 2002”, “for the most part, nature tourism fails to meet the ideals of social responsibility implicit in this definition”.

It also ensures that “you may travel destinations and are marketed as ecotourism opportunities to focus on providing accommodation to the environment more favourable to community development, conservation and tourism education.” Therefore, the reality of these trips is that they can sustain ecosystems and degrade at the same time. Given that the majority of ecotourists come from North America and Europe and most destinations are in the developing world would be doing a damage to these countries if they do not get that nature tourism is compatible with conservation.

But the UN also recognizes that “even some of the ecosystems that are carefully managed under the principles of ecotourism are showing signs of degradation.” To illustrate the dangers that ecotourism can lead to natural ecosystems, the UN report takes the example of the Galapagos Islands, a natural paradise and the nerve center of biodiversity. Not surprisingly, half of birds, 32% of plants and 90% of the reptiles that live there do not exist anywhere else in the world. At first glance, the report says, the Galapagos Islands exemplify the promise of ecotourism. Each year the archipelago attracts over 62,000 visitors who pay to dive and walk among the 120 volcanic islands and ecosystems, among other exotic species, contain the turtles are named for the islands.

According to UN figures, tourism in Galapagos produces up to 60 million dollars a year and is the source of income of 80% of its residents. Since 1970, the number of visitors has increased tenfold, helping to expand the resources of the park service to Ecuador and create a model of ecotourism high quality and low impact. However, when things look closer displayed the consideration involved.

Thus, the permanent population of the islands has tripled in the last 15 years due to the arrival of immigrants seeking work in the tourism economy of the islands, which also leads to increased pollution and exploitation of fisheries resources. And, contrary to the purport ecotourism, it is estimated that only 15% of the capital that is entered from tourism goes directly to the Galapagos economy. In some cases not even a single pound reinvested in conservation and tourist park management, but that money goes to government treasury or at the hands of corrupt officials of the park.

Ecotourism Impacts

The impact of ecotourism is not only economic, but socio-economic, since it involves the communities. The achievements in the economic order can even benefit communities and areas of the country that usually are depressed from the position of economics and finance, but have very specific natural resources and with hospitable people, traditions and very special charms.

Ecotourism is also a channel to link the activities of local governments or municipalities with other state and society as a whole, but also engages the municipality with the outside world, thus breaking the isolation internal and external know yet many of our communities. In the United States of America, for example, has realized that without direct intervention by local governments is impossible to develop ecotourism. Recall that in this vast country emerged from the beginning of the twentieth century, the first spaces and protected natural areas that would become national parks, without which they would have lost significant wealth who today are usufruct by the communities living in the vicinity .

In short, ecotourism is an important ingredient to strengthening cultural identity.

The close links we forge between everything that defines us as people, that is our way of life and production, our culture, our identity, and nature is what will make us turn this activity called eco-concrete manifestation of that symbiosis, as a social practice that opens new horizons in today’s changing world, where the features that differentiate us from other countries are put in evidence and become thus a unique appeal to attract new tourists and stimulate us.

In short, ecotourism combines natural resource management, environmental protection and land to productive action of society, generating jobs, income and new procedures, forms and techniques of living and working in areas rural and urban areas.

As such, ecotourism is an economic activity, environmental and cultural battle against the scourge of poverty, social exclusion and the exodus that started the inhabitant of a town of traditions, and why not, to overcome their limitations along with its people. Ecotourism development contributes to motorized, national and local, comprehensive and sustainable.

Devastating effects from ecotourism

Several studies reported any adverse effect on Environment ecotourism course offerings.

The “ecotourism’s” offers may be generated in many cases more harm than good for environmental conservation, according to recent scientific studies on various tourist destinations in the expanding mode that is presented by defining as environment-friendly and lovers whose main customers are reported in Nature.

For example, orcas living in the United States coast are struggling to communicate with the noise generated by boats full of tourists looking to find out, as reflected in a study by the University of Durham (United Kingdom) and the Whale Museum in Washington and published in the journal Nature.

As the number of killer whale watching boats has been increasing over the past decade – currently 72 commercial ships and 22 small private boats surrounding the whales every day – the length of calls of these animals has also extended in an effort to overpower the engine noise. The calls have duration of approximately 15% higher when the number of vessels is higher.

Also, the British magazine New Scientist ‘reported that the presence of tourists in natural environments of species such as polar bears, penguins, dolphins and many types of birds in animals generated nervousness situations that begin to result in difficulties chronic for playback.

The impact of human presence in the natural environment of animals may seem a priori mild or nonexistent. However, small changes in animals – such as rapid heartbeat, changes in hormone levels and alteration of eating habits – are raising fears of long-term survival of certain species.

A team from the University of Auckland (New Zealand) has observed the dolphins along the coast of New Zealand since 1996 and has found these marine mammals reach a state of frenzy by the presence of the boatloads of tourists, reducing or virtually eliminating its quiet time.

Also, Canadian researchers at the University of Manitoba have reported the saturation of photographic tourism with the polar bears as protagonists. The presence of tourists in the bears’ habitat during the months of October and November produces irreversible condition for the animal, because in those months is bound to an almost total rest to preserve a surplus of body fat.

Other examples of the undesirable consequences of ecotourism are the lower the weight of the baby penguin, and therefore less chance of survival in areas with presence of travelers – because the parents neglect their offspring feed to be entertained by tourists -, reproductive problems experienced by some types of pheasants in the Amazon, where it was found that only 15% of nests containing a baby in the areas visited by tourists, compared to 50% in regions fully protected.

Though casino was their major way to earn revenue because of high gamblers addict all over the world, both of these resorts also added wide varieties of attractions and amenities for tourist attraction such as skypark, universal studios Singapore, celebrity chef’s restaurant, museums, convention and exhibition centre, floating pavilion, etc. to attract not only the gamers but also families and children’s.

In total both the resorts offer 33,500sqm of MICE space and more than 4000 hotel rooms.

Attractions helped in many ways such as:

Universal Studios Singapore- welcomed 13.2 million visitor and 22.3 billion tourism receipts last year (STB 2012).

Both resorts support more than 40,000 jobs throughout which includes wide number of sectors such as retail, F&B and transportation. Approx. 22,000 employees have been hired by these integrated resorts (Michael 2012).

Both the IR hope to achieve 17 million visitors a year and generate about US $21 billion by 2015 (Katie 2011).

Singapore’s both integrated resorts have a total development investment of more than S$13 billion (Iswaran 2010). The IR helped to broaden the range of job and career opportunities for Singaporeans with the bulk of jobs in for them in areas such as theme park operation, retain and Food and Beverage, etc.

Both the resorts plan to continue re-invest and enhance their attractions to appeal to visitors an visitorship trends, benchmarks with respect to similar international attractions, industry standards and so on (Israwan 2011).

Since both these resorts have done wonder full things for the people as well as tourist such as giving jobs to locals or providing attractions to tourist it also have negative impact on society as gamble addicts are borrowing money from loan sharks and when they are unable to repay the loan money they abandon their wives and children so as to feed their gambling addiction that leads women into forced prostitution to feed their kids (Dinah Lee-Phua 2011). Gambling leads to bankruptcy, imprisonment, family violence/breakdown.

Economic Impacts: Singapore’s decision to build casino-based destination resorts was in part based on that argument, that the country could not ignore the potential economic significance of the IRs as it will not only boost the tourism industry, increase jobs but also the investment of billions of dollars to the economy; in other words growth, as opposed to stagnation (Wong, 2005).

Singapore’s economy is diversified and is not based solely on tourism or the IRs but the income certainly could be useful. Such revenue for the state or country could be used to develop infrastructure and superstructures; essentially an economic development tool for the state or country as a whole.

One of the other reasons that states or territories decide to legalize gambling and thus

build casinos is to attract tourists to the area. These tourism products can complement and enhance the other tourism products and thus motivate tourist to the state or territory.

Tourism is one of the key sectors that contribute to the Singapore economy. The goal is to achieve SDG$30 billion in tourism receipts with 17 million visitors by

2015 (STB, 2010).

Proponents of casinos or casino-based resorts argue that the gaming element will increase tourism numbers. When Singapore legalized gambling, it was to increase the demand for and motivate tourists to the island state (Remesh,

2010).

Casinos had to be part of the tourism product to be of significant economic value (Eadington, 1999).

Families could be attracted to such places and there will be reason for the adults to stay longer. Going by the revenues that Macau received, the argument might be valid.

The demand for non-gaming products, services and amenities will subsequently go up; in essence, the casinos could be for the greater good because on the whole the economy will be better off and thus the majority of the people within the gaming jurisdiction will benefit.

Social Impacts: When the decision is made to legalize gambling, a state or country will experience not just positive impacts but negative social impacts as well. Petty theft and fraud linking casino employees have arisen. Traffic jams have increased, and environmental conditions have deteriorated. Consumer spending is neither reduced nor substituted. Bankruptcy, suicides, depression, lowered productivity and crime like fraud, are most prevalent with gambling.

As if costs to the community like suicides, bankruptcies and lowered productivity are not enough, 5 to 10 other people were affected for every single problem gambler, (Australian Commission, 2009). The carrying capacity of a region could affect how the locals perceive the tourists within the gaming jurisdiction. There was no conclusive evidence that crime increased as a result of the casinos. Crime rates were contained in the initial opening of the casinos due to the increase in staffing by the local law enforcement agencies. However this increase in staff could not be sustained and as a result crime rates increased over time due to the casinos. Increase of child abuse may also occur due tom negligence of guidance from the parents addicted to gambling. As parents who lose money on gambling table often end up taking their frustration out on their kids or abusing them physically.

Problems of borrowing from loan sharks are seen in Singapore due to high addiction of gambling. This happens due to people losing everything on gambling table thus deterioting them financially and forcing them to borrow more from loan sharks.

They were also concerned that casino’s would escalate gambling addition of locals, which would create financial difficulties for families and hence effect the Singapore economy altogether. Family harmony would be affected, while the good Singapore work ethic would be compromised. Social ills would also resurface (Withiam 2011).

Resort World Sentosa has led to damaging of environmental effects on the country’s physical resources, ecological resources and terrestrial ecosystem. It has also resulted in the habitat destruction, removal of airshed, soil erosion, loss of biodiversity and water contamination (EIA Abhineet 2011).

Bellagio is a luxury resort and casino in Las Vegas in Nevada. It is owned by MGM Resorts International and is famed for its elegance. It has total of 3,950 rooms with three different towers and is home to the most watched and famous “Cirque du Soleil” aquatic production commonly referred as “O”. It was opened on October 15 1988 and the total cost was approx US$88 million. It has number of attractions such as Gaming room, Fountains of Bellagio, Conservatory and Botanical gardens, Gallery of Fine Art, etc. with number of famous restaurants such as Le Cirque, Circo, Picasso, etc.

Political Impacts: as we all know that Las Vegas is famous for casino’s and has lot of casino at a stretch but for it to operate smoothly the casino are to updated with latest trends so as to keep up with the laws in a timely manner. Bellagio has a casino license and runs over more than 50 slot machines and more than 10 tables so as to pay a certain amount in tax per table in a month so as to not violate any laws.

Economic Impacts: The casino creates jobs and reduces the level of unemployment. It contributes to improvement in community and infrastructure mainly in the transportation side as well as reducing public spending. The casino development has been targeted where economic development benefits the community and jobs scarcity has been reduced (J.P.Girard 2001). With Bellagio casino being so big it has helped the locals of Las Vegas and also the foreigners to earn their livelihood by working in the casino. Because of gambling, Las Vegas has shown impressive job growth, developed into a major city with a low tax burden that many state and local governments look at with envy, and has spawned significant private and public sector investment. However society would only support this if the benefits outweighs the costs.

Social Impacts: But also it has affected the economy as local residents who used to travel outside of the region and gamble now stay within the region. Local residents who used to go to restaurants now spend their money in the casino. Then the casino has no net economic benefit. Tourists who used to spend money on other activities within the region now go to a gambling facility within the region. Still casino plays an important part on society as Bellagio Las Vegas is a testament of the powerful ability of gambling to foster economic development. But casinos leave a negative impact on society causing increase in traffic congestion, increased gambling addiction, drug use and prostitution. Tourists from abroad spend more time and money within the region. It was noted that alcohol and drug use increased between gamblers due to their loss in the casino or for people seeking treatment for gambling problems. Family breakdowns and mental health issues such as depression, psychiatric disorders, past histories of sexual or physical abuse and low self-esteem were found among the gamblers. Due to high addiction of gambling there has been an expenditure growth in casino industry than the growth in personal income (Ricardo 2008). It has been researched and proved that profound gamblers often suffer from profound marital difficulties. Gaming has jeopardized the quality of life of individuals and families in past (Burke 2003). A lot of financial difficulties involving money, laundering, paying high interest rates on debts and suicide have been seen so far.

Technology: helps Bellagio to offer more luxury, better customer service and an overall increase in customer satisfaction. Fast and easy communication service provides Bellagio with a competitive advantage compared to other hotel. Bellagio’s website helps the customer to give information about the latest happenings anywhere anytime. Bellagio has full range of services on their website such as customers can take virtual tour, see the rooms and make the reservation online.

Environmental Impacts: a casino usually generates about 20,000 to 30,000 customer vehicles and 6,000 or more employee vehicles each day leading to air pollution due to increased traffic. With a casino comes a heavy parking demand and more congestion. It draws down scarce groundwater and also threaten endangered species. Correcting all this cost between $5.5 to$7.7 million per year leading to waste of money and resources.

Though Las Vegas is commonly known as Sin City so the crime rates are expected to be high. It was noted that last year fall the crime rates including shop lifting, stealing of casino chips, etc. increased a lot due to proper security management. It was reported that last year December 14, Anthony Michael Carleo stole $1,500,000 worth of Bellagio chips from Bellagio casino and was sentenced to 35 years of imprisonment last month (Pitt 2012). So Bellagio took this this really seriously and did a stringent screening and drug test on its employees to reduce internal threats. It was also noted that there were fake Bellagio chips being sold in the local market at a reasonable price that attracted lot of people and those people even had links with the security guards of the casino so as to take the chips inside (LAPD 2008). So as to avoid all this in future a proper security system was installed in Bellagio that had its eye everywhere. Systems such as 24 hours monitored security alarm, smoke alarms in all non-smoking rooms were installed to ensure the safety of the hotel as well as the customers. Every corner of the casino had a camera with 2 control rooms to look out for thief and to ensure safety of everyone there. There was 24 hours security and the security came from the best security department in USA. Bellagio used proper safety measures in case of emergency such as fire, accidents, deaths, etc. by keeping proper safety measures such as medical kit, qualified doctors in the house, etc. with all such steps/measures.

Mixed use development simply involves the addition of residential units to a standard resort concept as a part of a sometimes rather dubious way to finance the whole development (Philip 2009). Bellagio has been using it for years now and everytime when possible tries to upgrade it. It provides customer with a variety of accommodation styles, sporting and leisure activities, security, a lifestyle living experience. Bellagio attracts lot of its customer via the casino as it is home to many professional poker players due to high table limit including high stakes and also because it holds world poker tournament as well. But it does not only attract the gamblers it also succeeds in attracting non-gamblers, family and children while using mixed use development concept as it has a very famous show “O” by Cirque du Soleil as it has international cast of world class acrobats, divers, swimmers performing on water to create a breath taking experience for its customers. Fountains of Bellagio that is set in 8 acre man-made lake with 4.500 lights and have lot of performance for the people to enjoy at night. The conservatory and botanical gardens is a must watch as it shows five seasonal themes such as Chinese new year from January to march displaying the bromeliads and orchids as well as animal of Chinese zodiac, spring displaying varieties of tropical flower, summer, fall and winter. Along with all this Bellagio has also focused on relaxation and fitness for its customer by providing variety of spa packages along with fitness centre. It is home to many golf lovers and those who wants to learn golf can learn at a reasonable rate at Bellagio with different courses available for different needs. Bellagio is famous in Las Vegas for its nightlife as it has many bar, lounge and clubs for party animals to enjoy the sin city and have a memorable time. Bellagio offers high range of exclusive shops for gifts, accessories, jewellery and fragrances and is a must shopping place for ladies. Though Bellagio use a mixed use development concept but it also takes care of the environment by using reclaimed water and on-site power generation plant and has also constructed a 5.300 space parking garage for the employees as well as customers so as to avoid traffic congestion.

In today’s date it is very important for any hotel to develop sustainability plan in order to survive in the market and stay ahead of its competitor. Bellagio is committed to conservation efforts that support living in the desert. These practices extend beyond Bellagio and reach the local community by educating employees about conserving natural resources at home as well as partnering with local, eco-minded organizations (Drew 2007). Bellagio is using $70 million alone to refurbish all the guest rooms so as to make it more attractive for the guest and they are changing everything in their restaurants to the exteriors of the hotel. Bellagio has achieved sustainable development and will keep on achieving it by following four most important steps towards sustainable development that is to guide and be guided by a clear vision of sustainable development and goals to achieve highest ranking among all hotels. It reviews the whole system as well as its parts considering the well-being of social, ecological and economic systems, their state as well as the direction and rate of change of that state, their parts and use of these parts. It has adopted a time horizon long enough to capture human and ecosystem time scales to know what they want to achieve and how they want to achieve and also what’s best for their customers in terms of needs, necessities, etc. they take in the advice of their customers very seriously to make themselves better and also to outbeat the rest of the hotels. The employees are well trained and educated and provide ongoing support in the decision making process. Bellagio has been home to many events in the casino as well as in the clubs or lounges and has also been shown in many movies. They have kept this tradition alive by calling someone or the other every year to perform in their hotel and this year also they are doing the same but on a large scale as they are inviting the Korean pop dancer/singer PSY to perform in their casino on February 23rd starting around 9 pm and there would be lot of songs sung by him and his world famous song Oppa Gangnam Style. Tickets are going at &100, $200 and $300 with lots of surprises for the guest and there would be lot of games as well and the winner will get an autograph t-shirt by PSY himself and an opportunity to dance with him on the stage created in casino. Thus all this helps and will keep on helping the Bellagio hotel to remain on track and be one of the top most preferred hotel of Las Vegas in near future also.

Marketing is a prime asset of any companies in today’s market. Marketing department is the backbone of any companies any d if the company doesn’t have this can be called handicapped. It context to a hotel it also a has vital role, as the hospitality is a fast growing industry and has tough competition everywhere; so it is very important to be ahead of the competition. In this context marketing plays a fatherly role. Marketing department is the area which comes in contact with the customers and tells about the product and the services provided by the hotel and compare it with its competition. During this project the author has given the introduction and importance of marketing about marketing in comparison to a hotel.

A brief about taj hotels palace and resorts has given in relation to its history and segment of customers served. The main objective of this particular project to learn, analyze and propose solutions wherever required to the various marketing strategies undergone by the “Taj Palace, New Delhi” hotel and also giving the reason for the proposed solutions to it.

This project would also allow the author to know and learn about the city and would also allow the author to understand about the hospitality trends in the city. It would also help the author to understand the competitors of “Taj Palace, New Delhi” and providing significant reasons and facts for supporting the reasons of the provided solutions and suggestions.

This will also help to learn about the city and will learn what the trends of hospitality in the city are. It will help to learn what strategies are the competitors of “Taj Palace, New Delhi” to compress it competition.

Marketing: An Introduction

“For a business not to advertise is like winking at a girl in the dark. You know what you are doing but no one else does” – Stuart H. Britt, US advertising consultant

Marketing is a social and managerial process to obtain they need and want through creating and exchanging products of what they need. Kotler defines marketing as “The key to achieving organisational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.” marketing today helps in understanding the psychology of customers so that products can be innovated accordingly. . In the Hospitality Industry, leaders like the Taj Hotels Resorts & Palaces, Marriott International, Hilton, Hyatt, etc are increasing their market share at the expense of smaller chains and independent operators because they possess a thorough understanding of marketing which is essential to ensure steady flow of customers.

Marketing involves the following questions:

How to find the right customers?

Different products?

How does one reduce cost of customer acquisition?

The scope of marketing is quite broad. The implication is that the firm uses to acquire customers and manage the relation with them. The Kotler definition encompasses both development of new products and services and their delivery to customers. Marketing expert Regis McKenna expressed a similar viewpoint in his influential 1991 Harvard Business Review article “Marketing is everything.” McKenna argued that because marketing management encompasses all factors that influence a company’s ability to deliver value to customers; it must be “all-pervasive, part of everyone’s job description, from the receptionists to the Board of Directors.”

The Importance of Marketing in Context to the Hospitality Sector

Marketing is one of the most important tool in the in the hospitality sector as well as other sectors which plays a major role. In other industries selling of products are sold is marketing but in the hospitality sector it is sold with a slight variance. In a hotel it is not the product it is the service that is provided to the guest. Both service marketing and goods marketing start with a crucial need – identification and product design functions; goods generally are produced before sold and services generally are sold before produced. Service industry has less influence on comparison with the other industries. The influence is slow comparison to the industries. The customers who have not witnessed the product may have a different opinion. Good’s marketers may be able to move prospective customers from brand awareness to brand preference with packaging, promotion, pricing and distribution whereas service’s marketers usually cannot.

The services provided in a hotel are intangible. This type of service makes it more difficult to describe the services provided to the customers so the customers can only feel the services. Customer’s perception of risk tends to be high for services because services cannot be touched, smelled, tasted or tried on before purchase. Customers can try a new product like a test drive of a car but to experience the services of a hotel he has register as a guest in the hotel. Service marketers can create brand awareness and induce trial before the sale, but they demonstrate benefits and build brand preference most effectively after the sale. Superior service can only be felt it can’t be packed and given to customers.

Introduction to Taj Hotels Resorts and Palaces

Indian Hotels Company Limited (IHCL) is a subsidiary of Taj Hotels Resorts & Palaces which is a part of the TATA Group which is Asia’s largest group and one of the finest and the oldest companies of India. The first hotel built by Taj was Taj Mahal Palace built in 1903 and it was built because Indians were not allowed to stay in prestigious hotels and not allowed in clubs during the British rule. This lead in the foundation of the Tata Group by Mr. Jamsetji Nusserwanji Tata. The hotel alone stands for more than a century.

The main development of the group started in the 70’s under the leadership of the then Chairman and Managing Director, Mr. Ajit Kerkar. In the starting came the Rambagh Palace in Jaipur. They started with the concept of converting century old palaces into hotels, which is now USP of the Company. During the years many more hotels like Taj Coromandel and the Fisherman’s Cove, Fort Aguada Beach Resort were built. In the 80’s the company came up with two more hotels in the capital city and Bangalore. These hotels are ethnic in nature and they are setup according to international standards.

The Taj is symbol of hospitality in India and completed 100 years in 2003. Till date the company has 78 hotels including resorts and palaces. Out of which 18 are abroad which are in Malaysia, United Kingdom, United States of America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. In India it has 60 hotels across 45 locations like Delhi, Mumbai, Calcutta, Chennai, Goa etc. as the brand holds such diverse network it symbolises Indian hospitality in India and Abroad. The Managing Director, R.K. Krishnakumar says “The vision for the Taj Group is for it to be a select chain, present globally. Asian, perhaps in character, but absolutely international in terms of systems and processes and with a strong West European focus. The way forward was to make sure that the entire Taj team is imbued with the missionary zeal to sell the brand.” The Taj caters all types of hotels like luxury, business and premium. Amongst the clientele, international travellers form the bulk of the market for the Taj particularly in the metros. Even the profiles of the Indian customers are changing with time.

Categories of Taj Hotels

Taj Hotels Palaces and Resorts is an international hospitality group with strong roots in India. For the past 100 years they had build their own reputation on legendary properties, unparalleled facilities and impeccable service. They operate in the luxury, premium, mid market and value segments of the market through their following brands:

Taj (luxury full-services resorts and palaces) is their flagship brand for the world’s most discerning travellers seeking authentic experiences given that luxury is a way of life to which there are accustomed. Spanning world renewed landmarks, modern business hotels idyllic beach resorts, authentic Rajput palaces and rustic safari lodges ,each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way to create experiences and lifelong memories.

Taj also encompasses a unique set of iconic properties rooted history and tradition that deliver truly unforgettable experience. A collection of outstanding properties with strong heritage as hotels or palaces which offer something more than great physical product and except cal service. This group is defined by the emotional and unique equity of its iconic properties that are authentic, non-replicable with great potential to crate memories and stories.

Taj Exotica is their resort and spa brand found in the most exotic and relaxing locales of the world. The properties are defined by the privacy and intimacy they provide. The hotels are clearly differentiated by their product philosophy and service design. They are centred on high and accommodation, intimacy and an environment that allow its guest unrivalled comfort and privacy. They are defined by a sensibility of intimate design and by their varied and electric culinary experiences, impeccable service and authentic Indian spa sanctuaries.

Taj Safaris are wildlife lodges that allow travellers to experiences the unparallel beauty of the Indian jungle amidst luxurious surrounding. They offer India’s first and only wildlife luxury lodge circuit .Taj safaris provide sustainable ecotourism model.

Premium Hotels (premium full-service hotels and resorts) provide a new generation of travellers a contemporary and creative hospitality experience that matches their work-hard play-hard lifestyles. Stylish interiors, innovative cuisine, hip bars and a focus on technology set these properties apart.

The Gateway Hotel (upscale/mid-market service hotels and resorts) is a pan India network of hotel s and resorts that offers business and leisure travels a hotel designed, keeping the modern nomad in mind. At the Gateway hotel people believe in keeping things simple. This is why Taj hotels are divided into 7 simple zones stay, hangout, meet, work, unwind and explore.

Ginger (Economy Hotels) is their revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and affordable are hallmarks of this brand targeted at travellers who value simplicity and self service.

Client profile

Taj hotels have a client profile consultation service provided wherein they diagnose the clientele needs and with that information they try and provide the required facilities to their customers. Generally Taj concentrates on the upper class of the society who can spend lavishly on the luxury provided.

Vision

The Taj group hotels commit itself to the overall improvement of the ecological environment, which all the people are a part of.

We recognize that we are not owners but caretakers of the planet and owe it to our children and future generations of humankind.

It is our endeavour not only to conserve and protect but also to renew and regenerate the environment in which we live and operate.

Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities.

We will partner and engage with our environment through EARTH:

ENVIRONMENT AWARENESS AND RENEWAL AT TAJ HOTELS. For us earth is not a program, nor a process, it is a way of life.

Mission

Embrace talent and harness expertise to leverage standards of excellence in the art of hospitality to grow our International presence. Increase domestic dominance and create value for all stakeholders.

Earth

In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate environment management in all business areas Taj hotels and resorts and palaces presents EARTH (ENVIRONMENT AWARENESS AND RENEWAL AT TAJ HOTELS) a project which presents and indicates the conscious effort of one of Asia’s largest and finest group of hotels to commit to energy conservation and environment management. EARTH has received certification from green globe the only worldwide environmental certification program for travel and tourism.

Taj values

PEOPLE DIVERSITY, INTEGRITY AND RESPECT
PASSION FOE EXCELLENCE
EXCEED EXPECTATIONS
INNOVATIONS
SENSE OF URGENCY AND ACCOUNTABILITY
JOY AT WORK
Taj promises

At the Taj group their commitment is to service excellence is rooted in our two guiding principles. One of Taj key priorities is to empower the people to deliver on their legacy of impeccable service3.

Four steps of service are:-

A warm and sincere welcome. Use the guest name, whenever possible.

Fulfil guests need and provide anticipatory service.

Defect free products and services.

Fond farewell using the guest name, whenever possible.

The following philosophy is a summary of our beliefs and values towards our employees.

Introduction to Taj Palace, New Delhi

Taj palace one of the most popular 5 star hotels to stay in Delhi it provides one of the best and marvellous international facilities and world class services to the guests. It has 461 rooms which attracts a majority of big shots of the state and government officials. Top business tycoons love to stay in the hotel during their business trips. The hotel is located is Sardar Patel Marg, Diplomatic Enclave near to Dhaula Kuan area. The national and international airport is just a 10 mins drive from the hotel.

The hotel has 12 banquet halls with world class facilities for all kind of functions like meetings, seminars, weddings and casual parties. The capacity of the hall is around 700-1000 guests. The hotel provides all kind of recreational activities for its guests. The hotel look is all n different in the area. It is a perfect embodiment of all the qualities associated with Taj hotels, Resorts and Palaces.

The luxurious and fabulous rooms are mainly divided into 7 categories superior rooms, deluxe rooms, Taj Club rooms, Executive suite, Grand Luxury Suite and Grand Presidential suite. The Grand Presidential suite is one of the rooms in the city in comparison to its competition hotels. The rooms have different views available as per the guest continence like garden view, pool view and city view.

The hotel serves fantastic food in its 4 different restaurant specially the award winning Oriental express which provides excellent luxury and services to its guests and itself is one of the best restaurants in the city to dine in.

Competitors of Taj Palace, New Delhi

Though Taj Palace is well reputed hotel it faces tough competition. As the hotel is situated in Delhi which is the Metro city and the capital, there are many other five star properties of Taj and other brands, these hotels provide tough competition because they provide the same services in comparison with the hotel as they have market share with them. The Hotels providing immense competition are:

ITC Maurya Sheraton, New Delhi: it is a 440 room property and it the main competition to the hotel as it is the nearest situated hotel. It is a Welcomgroup property and it provides world class facilitates to its guest. It is one of the most popular hotel for dinning in the city because of its world famous restaurant BUKHARA which specialise in North West frontier cuisine. The hotel truly creates magic on the hearts and the minds of the travellers with its luxury accommodation and its state-of-the-art facilities and warm hospitality.

Hotel Hyatt Regency, New Delhi: located in the area of Bikaji Cama Place in South Delhi, this 520 room property provides state-of-the-art services to its customers and is one of the well reputed hotels in the area. This particular hotel provides a very tough competition to its competitors. The hotel provides all types of rooms from the poolside facing to executive rooms to The Presidential Suite. The interior of the hotel is bed-lighted with selective traditional art work, elegant furnishing, artful antiquities blended with some fabulous service provided by the well trained staff.

Le Meridien, New Delhi: Situated in the Raisina Road, with its proximity to the shopping, commercial and cultural center act as a potent factor for this particular hotel. This Hotel a part of a very well reputed brand Le Meridien group of Hotels, is one of the most popular hotels present in the city. This 355 room property provide all types of rooms to its travellers from Deluxe to the presidential suites with all types of facilities ranging from in-room safe to high speed internet access in its rooms. Its Food and Beverage outlets providing different cuisines such as the Golden Pheonix (Chinese cuisine), Pakwan (North Western Frontier Cuisine), the Pierre (French Cuisine), Henri’s bar and Aloha bar gives this hotel and extra edge and gives a tough competition to the taj palace.

The Oberoi Hotel, New Delhi.-The hotel reflects a nice blend of tradition and contemporary sophistication. The hotel is situated near to the city center, business, commercial and shopping districts. The hotel has a prestigious golf course on one side and on the other side it has a Humayun’s tomb. Placed in the Dr. Zakir Hussein Marg, New Delhi, it is roughly 20 mins. Away from the airport. It has been awarded as the “Best Hotel in Delhi” and “Among the Top 100 Hotels in the world” by the Institutional Investor, 2009 the world’s best Hotels. This hotel has also being awarded with a number of other awards also such as “The best hotel in Delhi” by TTG Travel Awards, 2009 and “Amongst best hotels and Resorts in the World” by Forbes Traveller 400- the world’s best hotels and resorts 2009. This 350 room property provides all kinds of world class services to its travellers and hence is the biggest threats to the taj.

Shangri-la-Eros Hotel, New Delhi: It is most centrally located hotel in the city. The hotel is situated in Connaught place which is like the lifeline of Delhi as the Business, Commercial and Shopping District definitely makes it one of the preferred hotels for the guest to stay into. It is 17 floor hotel which has 350 luxurious rooms which target both business and leisure travellers and is definitely popular 5 star property in the city. It is a very famous food and beverage out known as “cafe uno” along with other outlets is famous among the guest who comes to the city.

Taj Mahal Hotel, New Delhi: It is one of the distinguished properties in the capital city. It is the sister hotel of Taj Palace. The hotel is located in the lutyens residential place in Delhi. It is a landmark by itself. . Although it is located a bit far away from the airport approximately 40 mins., but is near to the bustling city center, Connaught Place, Pragati Maidan, Government Offices and Diplomatic Missions. This 294 room property also has been awarded as the “5 star diamond award” by “American Academy of Hospitality”

Radisson Hotel, New Delhi: This 5 star property in the National Capital Region, located less than 5 km from the Domestic and International airport of Delhi and the near to the business hub of Gurgaon, The Radisson Hotel is truly one of the easiest ways in which one can make its trip to Delhi a memorable one. The Radisson Hotel simply oozes luxury and promises its guest a stay with an experience of a lifetime. This 29 room property also gets an edge with its five Food and Beverage services; specially one of the famous Restaurants in Delhi i.e. “The Kabab Factory” truly gives an edge to this property.

About The Capital City

Delhi is capital city of India and is the largest metropolis by area and second largest by population. It also stands 8th in the world largest metropolis with more than 12.25 million inhabitant in the territory and over 15.9 million residents in the NCR (national Capital region) which includes Noida, Faridabad, Gurgaon and Ghaziabad. It is a modern city which has a history all around it. A tour of Delhi provides the visitors with much to see and admire ranging from the Mughal monuments to Modern Malls, from Traditional arts and crafts to trendy fashion shows. Delhi is a city which combines the historic and the modern in a unique way.

Delhi was the second most visited place after Andhra Pradesh with increase in foreign tourist to 2.3 million in the year 2008 as compared to 2.01 million in the year 2007 and 1.9 million in 2006.It became the capital of India in the year 1911, after the British East India Company gained control of India during the 18th and 19th century and George V. the head of the East India Company decided to move back to Delhi and it announced it as the capital city of India. It was when the India gained independence from the British Rule, New Delhi was declared as its capital and seat of the government. New Delhi houses important offices of the federal Govt. including the parliament of India.

With the estimated net State Domestic Product of the Fiscal Year of 2007 of Rs.1.82 billion (US$24.5 Billion) in nominal terms and Rs. 3,364 billion (US$69.8 billion), Delhi is the largest commercial center in Northern India. Delhi had a per capita income of Rs. 66,728 (US$1,450) in 2007 at current prices; it is the third highest in India after Chandigarh and Goa. Delhi has the largest and one of the fastest growing retail industries in India, because of which land prices are booming and it is currently ranked at 7th most expensive office hotspot in the world with prices at $145.16 per square foot.

Along with its contribution in the economy, Delhi plays a significant role in being one of the hot tourist destinations in India because of numerous historical monuments present in the city. This can be seen with the example of many monuments of significance found in the city. With the Archaeological survey of India recognizes 1200 heritage buildings and 175 monuments in Delhi as national heritage sites. With the presence of the three worlds heritage sites i.e. The Red Fort, Qutub Minar and Humayun’s Tomb along with the architectural marvels like the Jama Masjid which is India’s Largest Mosque and India Gate gives as extra edge of attraction for the tourist in Delhi.

S.W.O.T. analysis of Taj Palace, New Delhi

SWOT analysis is divided into 4 parts

Strength

Weakness

Opportunity

Threats

Strengths

It has the largest convention center which can handle 700 personals at a single point of time.

The Orient express restaurant, one of the popular restaurants in the city, adds as an promoter to the hotel and helps in generating extra revenue.

The hotel is located in one of the prime locations and is very near to the airport which is a 10 min drive. As it is centrally located so it has a well connectivity with the city. Hence, easy access to travellers.

The rooms are divided into many types and also give the guests of option of different views as per guest connivance like pool view, garden view and city view.

For a pick up and drop facility the guest has an option of one of most luxurious car that is JAGUAR.

The 12 banquet halls can accommodate different types of function at the same time and which generates good revenue for the hotel.

Its spacious rooms give a full luxury experience with some extra luxurious options as per convenience of the guest.

It has the largest convention center which can handle 700 personals at a single point of time.

The Orient express restaurant, one of the popular restaurants in the city, adds as an promoter to the hotel and helps in generating extra revenue.

Weakness

The lighting in the lobby gives it a very dull look which creates a dull atmosphere in the lobby and for the guest who enters the hotel for the first time.

The parking area in the hotel is very less which generates problem during high occupancy and banquet functions.

Staffing of the not adequate which again is a problem during high occupancy.

It is located in an area in Sardar Patel Marg, which faces a massive problem of traffic jams which does keeps the traveller waiting on roads and hence, leads to reducing the curiosity of the traveller for visiting the hotel.

Less aggressive promotional activities taken place by the hotel in order to promote their product which in turn looses out its customers.

In comparison to its competitors the food and beverage outlets are very costly which again a drawback for the hotel.

The Oriental Express restaurant mostly invites the guests to the restaurant instead of allowing the walk-ins.

Opportunities

To promote and generate more revenue the hotel should be more aggressive in the promotion of the hotel. To promote the hotel some activities like food fest and exhibition can be held to promote the hotel.

The hotel should promote its food and beverage outlets to give stiff competition to its competitors for e.g. the oriental express which is a very famous restaurant should be promoted to give a good competition to ITC Maurya Sheraton’s Bukhara and generate more revenue.

Different schemes related to room tariff should be made and be promoted so the occupancy be increased and generates more revenue.

Contractual staff can be increased in order to provide efficient service to its guests during peak seasons.

The parking area should be improved so that it gives convenience to guests which are a problem in the food and beverage outlets.

Walk in guests should be allowed in the main restaurants like Oriental express so that it helps in increasing the revenue of the hotel.

Threats

There is a very tough competition of well known 5 stars in the city along with the upcoming hotels not only in the city but also in the NCR area are a big threat to the Taj Palace.

The hotel should be more aggressive in promoting the hotel in the area of food and beverage and the aim should be eating up the market of is competition hotels.

The food and beverage staff is not adequate which leads to customer dissatisfaction and leads to less revenue.

There should be a specialized restaurant in the hotel as it is the latest trend in the hotel industry like its competition hotels has such as the Bukhara by the ITC Maurya Sheraton Dakshin by Sheraton, New Delhi Hotel aims at eating up the market demand of the Taj Palace hotel, which indirectly reduces the revenue of the hotel.

Next door property by the ITC Welcomgroup i.e. ITC Maurya Sheraton aims at eating up the market share of “Taj Palace. New Delhi”

Marketing strategies taken by Taj Palace, New Delhi

The market strategies are mainly divided into 3 parts mainly

Segmentation

Targeting

Positioning

Market Segmentation

Different marketing strategies are being used to promote the hotel and generate the max revenue where market consists of buyers, the buyers always by many reasons like needs, wants, locations, buying attitude and buying practices. For eg the needs and wants of the customers of a hotel in Goa will be different from the needs and wants of a guest in Cochin.

The Taj Palace is a luxury hotel by categorization, if the geographical segmentation is taken then the hotel mainly aims to target all the leisure guests who visit the city as the hotel is near to the airport is also tries to cater all the business clientele who comes on business trips in the city and it also try to take in the function of these guests like business meetings, seminars and conferences.

Taking the local crowed into consideration Taj Palace, New Delhi hotel tries to attract guest by providing them also with facilities of 12 banquet halls which can be used simultaneously and with 4 different types of Food and Beverage Outlets. It mainly aims at capturing the customers with upper and upper-middle classes i.e. mainly tourist or businessmen.

Targeting

The main target market has been set up by Taj Palace; it mainly aims at leisure and business clientele. As the hotel is situated the capital city the so the tourist who mainly visits the city are business and leisure. The leisure clientele will visit the city because of its history and historic monuments in the city which is a major attraction among the tourist.

There are significant offers and packages provided by the hotel to attract the customers. They are mainly seasonal packages. They also try attracting the local by its four restaurants and twelve banquet halls which can cater 700 guests. It also aims at meeting the standards of the company with the fact of satisfying its customers and generating maximum amount of revenue. Over the years Taj Palace Hotel, New Delhi has been able to meet the objectives by generating maximum revenue by maximum guest satisfaction.

Positioning

“Taj” as a brand name in India which is something which is being accepted by the people of India as something with which they can associate themselves. It gives them a feeling of warmth and harmony to associate and a sense of pride in using the services of this brand. “Taj Palace Hotel, New Delhi” takes this as the opportunity to attract the travellers and guest to its hotel. This helps in attracting the local crowed as well as the domestic travellers towards the product they offer. With the name “Taj” which is associated with this hotel it helps the hotel in taking up the advantage to attract the foreign travellers who intend to stay in India and it is one of the branded hotels i.e. “Taj Palace” with which they associate India with, especially when it comes down to staying in Delhi. Delhi being the Capital of India and “palace” as a word associated with the brand name “Taj” creates a psychological effect in the minds of the customers and hence it helps in increasing the revenue for the hotel.

Along with its rooms and extra facilities provided by the hotel, the Food and Beverage outlets such as the “Oriental Express” provided by the hotel have been welcomed by the locals as well as travellers. This helps in creating a well planned and a good promotional tool in creating the psychological effect in the minds of the customers and helps in create repeat customers and hence generating revenue.

Critique by the author on the Marketing Strategies

The position of the hotel is that it is well accepted by the local crowd and the visiting guests. The hotel is also well settled because it is now operating for many years and it is clear about its target market. The Taj Palace is one of the land mark hotels in the city and has been publicized at a very good rate and has been able to capture the market since a long time.

The current scenario in the hospitality industry in the capital has completely changed, from the time the hotel was setup. Now there are a lot more 5 stars in the city which has given a stiff competition to Taj Palace and these hotels are eating up the market share of the hotel.

If we compare the promotional strategies of Taj Palace with its competition it is clear that its competition is much ahead than Taj Palace. Activities like food festivals or using media as the source of promotion is very less. Even the sister hotel Taj Mahal is much ahead than Taj Palace. Significant difference in the market positioning of the hotel has been seen over the years