Operations management in the tourist industry
Operations management consists of those activities which are involved in planning, controlling and transformation process of a particular product or service. At the very beginning Operations management was only considered for the manufacturing industry but with the flow of time it’s now a job of service sector too. English Riviera Tourism Company is a service provider company. This company performing it’s operation management through-
Planning of operations- ERTC has a grand plan of running its company. Their main strategy is ‘Turning the tide for Tourism in Torbay’. Mainly providing services within a range of local areas which mainly made up of Torquay, Paigton and Brixham as they are also working as a promotional tools for this company. The scenery of Bay is very much heart touching, ERTC is ensuring the standard tourism service for their visitors to enjoy this beautiful scenery. In 2012, it served nearly 997,000 visitors from UK.
Management of these operations- As their main object is to provide quality services. They are managing their operations by this steps a) Providing adequate holiday accommodation, and also b) accommodations for local community c) accommodations available in every seasons.
Quality management- English Riviera Attractions Partnership consists of: Paington Zoo, Living coasts and Peigton Pier. As they are attractive partners which represents the quality of this company. They are also awarded for ‘Fine dining’. They are also ensuring the leading position of ERTC.
1.2
Operations management was mainly for manufacturing industry. At this time it’s also a part of service industries. As manufacturing products are tangible and services are intangible that’s why both the operation managements are differ from each others.
ERTC providing services to tourists, their main planning objective is to get attention of the tourists. On the other hand, a manufacturing company tries to produce a quality product according to buyer’s need which means their main planning program consists of producing quality product.
In an operation management of service company facilities have to be given as they had announced. ERTC is providing standard facilities to its serving areas.
When it is product, customers can also learn about the facilities through using the product.
In service business owners always expends lots of time in selecting location, layout. Badly selected location will be a threat for a tourism company. Easy communication with the customers is also a matter of consideration. ERTC is providing online services to get tourists from all over the world. As it also has a commitment with some rewarded partners? Partners are also working as a promotional partner for this company.
Product producers concentrate on the layout of the place where they will produce the product. Comfortable layout helps producer to produce products as the demand of the customers.
Capacity planning of a manufacturer is easier than a service provider. ERTC can’t be able to store their service to meet the future demand.
1.3
Managerial functions mainly define as a combination of planning, organizing, staffing, coordinating and controlling. ERTC’s operation can also be related to these managerial functions. As this companies operations are related to planning, organizing customers, employee people and coordinating and controlling all the activities through a proper analysis.
ERTC is mainly a Torbay’s major industry. It’s running with a plan ‘Turning the tide for Tourism in Torbay’ . They are providing their service through ensuring modernism, improved standard, playing with strength, wide promotions. This company is organized by- The chair, the board, the co-opted advisory panel, the chief executive officer. As it’s a company having partnership it get the opportunity to increase it’s investment and engaging more trained stuffs for the companies betterment. Coordinating function is done through controlling all the previous activities. ERTC needs maximum customers’ appreciation for coordinating all the plans. To turn the main strategy into reality they have to monitor the feedbacks of all single steps. They are also trying to involve their customers in this process. So, they provide a ‘promotional printed literature’ every year. This is designed not only to influence the existing customers but also the potential customers. This guide contains over all details of a specific year which a customer wants to know before booking. Visitors also get the chance to connect through the internet. By analyzing the current situation of ERTC the controlling result can be like this- value of tourism in torbay’s economy has to be increased, repositioning the company, providing uniform platform, increase in employment, creating cost effective services, addressing the key objects.
1.4
Creating customer value and competitive advantage is very much important for a tourism company. As operations management consists all the activities of a company it can help to get these two important things. Actually, customer value is a matter which can be obtained through satisfying a customer. ERTC is maintaining its business-
As a partnership company
Ensuring standard service
Focusing on the beauty of Bay
Proper evaluation system.
Introduced special app
Maintain international media coverage and personal relation.
They have to serve over 3million people in a year.
Also having their marketing activities through you tube, twitter, Facebook.
All these activities are enough to get customer satisfaction which leads to customer value. Customer value helps to have a long term customers. Being a brand of tourism industry ERTC has also some competitive advantages. Marketing activities of any company also a part of operations management. ERTC’s marketing acts are-
Developing an attractive website.
Producing annual officials.
Coordination of advertising nationally.
Supporting the management
Both online and offline marketing
Producing various articles as offline marketing tool
Promotional activities by promotional partners.
Rewarded as a best company many time.
Again market segmentation of this company is also creating a great opportunity of having competitive advantages. They targeted their market on the basis of-geography, demographics, families, couples and business conferences. South west is generating most of the visitors and this place includes their segmentation. People belongs to over 50s are more attractive group of customer because they are the growing number of people having lots of leisure time with disposable earnings. This company can earn competitive advantage through having a great plan for this market.
TASK-2
2.1
System design consists of the process of a specific subject which helps to collect data, interfaces and brings details to obtain an ultimate object. It has a respected role in business sector. System design can be done in several forms-
Architectural design
Logical design
Physical design
Physical design is very much applicable for tourism industry. It needs- requirements of input, requirements outputs, Storage requirements, processing requirements.
Process design carries those documents which ensure the information of the documents are capable of fitting the design.
ERTC’s system design shows the overall plan of this company. Its system design is given below-
Running with the strategy ‘Turning the tide for Tourism in Torbay’
Working as a partnership company
Increasing value of tourism in the economy of torbay
Increasing return on investment
Introducing the beauty of Bay
Creating cost effective services
This company’s system design is made to satisfy the tourists and get brand image. Total document of the overall system design will let us know whether this design is applicable or not. By analyzing this system design it is found that, customers are appreciating the partnership system, it helps to gain reliability from the customers, its attractive partnership also creating a promotional scope. All these are producing great process design of this company. This design says whether all the process are able to turn into real or not. ERTC’s process design has already started proceeding the tasks.
2.2
Implementing new or significant production or service providing method is known as process innovation. Introducing new or improved form of previous service state as a product development. These two jobs are very important for a tourism industry.
Innovation is considered as a power of a particular industry. It is the way to be updated in a market. Maintains competitive advantages, increase efficiency and effectiveness. As need of a customers is changing and to cope with this changes innovation is very much important. Even innovation can be brought through renewing marketing activities. Every company normally use same marketing tools so it can be made different by innovating some new process. Innovation is also important because it is the only way of making differences with the competitors.
ERTC is proving various innovated services and processes-
Up- to-date with some new technologies.
New visitors can get information from the website.
One very useful innovation in this company’s process is providing yearly prospectus.
Lunching new town sites.
Introducing shared marketing tools.
Embedding on others website.
Providing newsletter.
This process innovations are helping this company to serve its service all over the world. In this modern day it’s mainly focusing on modernism which is the only to get customer satisfaction. ERTC is getting changed according to their time or season of providing services. Strategic innovation doesn’t cost most. To catch more customers they provide free maps to the visitors.
2.3
Logistics is the complete flow of goods from the beginning to the consumption of the product. It mainly contains physical items. It describe the production process and distribution process of a particular product. Logistic process involves-
Handling materials
Production
Packaging
Inventory
Transporting
Warehousing and
Security.
In Tourism Company Such As ERTC also have the process of logistics. Servicing companies use logistics as a process of planning, controlling, realizing and monitoring. Supply chain refers the global vision of logistics. It can be defined as a process involves all the companies related to handling, transferring or distributing the finish product. Tourism industry is producing services for customers, it needs no physical transferring of services. So, for bringing customers they are taking many marketing steps which are creating different supply chain.
ERTC is providing services through online and offline processes which are generating quality and bookings. Online marketing is mainly used to cover the new generation of travelers. They already have developed their own website. Also using YouTube, twitter, Facebook etc. As there are no presences of a salesperson in online marketing, the website or marketing tools have to be lucrative to the customers. Offline communication has a great effect on customers but now a days it’s declining. ERTC is producing an annual guide as an offline marketing tool containing all the details of this company. Personal relationship and branding are powerful tools for increasing interest of customers.
TASK-3
3.1
The ERTC is continuing to invest locally, regionally, nationally in research market to have an standard Operational performance. Standard of something means a particular level where a company has to reach or its way of measuring the improvements.
ERTC, as a renowned tourism company has some standards for its own. These are as following-
Main three-
Increase the number of visitors.
Expanding the value of tourism in torbay’s economy.
Re positioning the English Reveira.
Others-
This company has the responsibility to perform the marketing activities for English Reveira. But their whole plan is to get the ‘Turning the tide for Tourism in Torbay’ strategy.
ERTC is working to ensuring the standard of services
Getting modernism
Having contracts with other brands
Showing the spectacular natural beauty of Bay
Local tourism businesses are working with it as a promotional partner.
Increasing investment on marketing sectors.
All these belongs to operational management which are helping managers to perform their job with a particular standard. This system cooperate an organization to work with a specific plan. This job of coordination is done by the employees, managers or customers also. And then gaining objectives become easier. Committing with other brands is a great initiative to get maximum market converges. They are working as a promotional tools for ERTC. These partners also have a specific standard while promoting ERTC. So, importance of a specific standard can be seen in reality.
3.2
ERTC mainly collects information or feedbacks from the customers. They also get feedbacks from the promotional partners. Feedbacks are the statement about something from a person who already has experienced or monitor that thing. Both are very effective way of collecting feedback.
Some feedbacks from customers are given below-
“They are great ambassadors for the
Bay and we really owe them all a big thank
you from all of us in Guesthouse Land. Keep
up the good work and keep selling the Bay
just the way you are doing.”
Garry and Debbie Midmer
The Shirley, Torquay
Other customers also said that they are very much supportive. Promotional partners also share their opinions, ERTC’s website is very much communicative, remained the beauty of the Bay, abroad promotional acts increasing dividends. ERTC also introduced an special app which created opportunity for all the interested people for being up to date. Both customers and promotional partners are appreciating the strategy ‘Turning the tide for Tourism in Torbay’. Through comparison the feedbacks ERTC needs to take following corrective activities-
Should focus on operation into three main areas.
Operations of cell center
Developing significant alternative websites
Providing more information about marketing channels.
Following the national quality standard to ensure the quality of the service.
Avoiding incomplete information.
Arranging events for special festivals.
Moreover the company has to develop a plan how it can serve its customers in a cost effective way with the changing needs. This company is providing nearly 8,800 jobs within the resort. All the job holders are influenced to share their feedback and correction methods.
3.3
Operational system is mainly run by the employees of a company. With the growing number of competition British tourism is facing challenges. Employees are the direct monitor who can define the lacking of a company. In service industry employees direct monitoring result is very much effective for a company. ERTC is also doing the same thing. They get some points which are pointed by the employees.
Wow factor is absence in English Reveira tourism product. And they are not considering modern enough to buy. This company also needs some creativity in product development to get new customers. Needs focusing on year round opportunity. ERTC also get some controlling suggestions from its employees, they mainly suggested some opportunities. These are-
Maritime leisure – Torbay can be an icon of worldwide if it starts doing something on tha basis of water.
Developing torbay weeks
Developing experiences based on water
Promoting maritime through central destination marketing.
Improving retail offerings
Bringing ‘Agatha Christie theme’ for adding glamour
Arranging festivals in different events.
Global geopark can be introduced by this company. Creative promotion and positioning will create enormous offers. Running an event during special festivals. This will also work as promotional act. As of course it will focus all possible cultures remaining the local area.
3.4
Effective management system consists all the managerial activities of a company. Well planned system will give the opportunity to gain competitive advantages which actually a power for a company against competitors. Competitive advantage means gaining such kind of attributes that helps to perform jobs successfully and make some differentiation in contrast of competitors.
As we have already seen that managerial system made up of planning, organizing, stuffing and controlling. ERTC has established a well planned managerial system. First of all they developed a strategy ‘Turning the tide for Tourism in Torbay’ focusing mainly the Torbay. Relating strategic economic development, other delivery organizations, strategy and advice all these are done by the chair, managing director and other organizers. Member of this company is made up of private and public sectors which brings a balance. The over activities are also controlled by the authority. As ERTC found some results of controlling-
Arresting the decline of visitors’ number.
Increase in employment
Developing a compelling brand.
Coordinating and monitoring effective marketing strategies.
Funding for tourism marketing
Expanding the facilities
Developing online and offline questionnaire to know him statements of the customers very frequently. This will also help to get new ideas or steps from them.
These are the main thing which have to be implemented. Quality of service also has to be increased. To increase tourists for ERTC effective destinations management is required. Outputs of investments represent the ultimate situation of a company so this element should also me measured while controlling. All the controlling steps will create competitive advantage for this company.
