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The Savoy hotel is a luxurious hotel in the heart of Britain, which is located on the Strand in the City of Westminster in central London.

In 1989, the hotel opened by impresario Richard D’Oyly Carte. It was the first Savoy Group of hotels and restaurants, which introducing electric lights in all over the hotels, electric lifts, bathrooms including expensive furniture’s, hot and cold water facilities and many other innovations.

The hotel became most successful venture for Carte’s. Its bands Savoy Orphans and Savoy Havana Band became famous with entertainers included George Gershwin, Frank Sinatra, Lena Horne and Noel Coward. They have some famous guests as well, which included Edward VII, Enrico Caruso, Charlie Chaplin, Harry Truman, Judy Garland, Babe Ruth, Laurence Olivier, Marilyn Monroe, John Wayne, Humphrey Bogart, Elizabeth Taylor, Barbra Streisand, The Beatles and many more.

In 2005, The Savoy Hotel was sold out and is now managed by Fairmont Hotels and Resorts. It has been called “London’s most famous hotel” (Prynn J. 2009). They are most prestigious and opulent hotel including 268 rooms and there is panoramic view of Themes River across the hotel.

In 2007, The Savoy Hotel was close down for their extensive refurbishment, which budgeted was about ?100 million. The hotel conducted a sale of 3,000 items of its famous furnishings and memorabilia. (Davis M. 2007)

In 2010, The Savoy hotel was reopened their business and providing good quality service. The ownership and management of the Hotel with The Berkeley, The Claridge’s, and The Connaught remain unchanged

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1. Situation Analysis
1.1 Analyse the roles of public, private and voluntary sectors in tourism and hospitality?

The public sector in tourism and hospitality industry plays important role in the development of small businesses. This sector is highly important in micro sector development of the industry. The services of public sector of the tourism and hospitality industry include strategic directions that are important for the overall coherent development of the industry (Teo, 2003).

The private sector of the tourism and hospitality industry plays important role in the active and passive development of the industry. This sector plays important role for transforming money from one country to the other. This sector is highly important for the economic development of tourism and hospitality industry (Teo, 2003).

The third sector of tourism and hospitality industry is voluntary tourism which refers to paid activities such as formal businesses (Teo, 2003). This sector play role in terms of local communities such as difficulties regarding resident involvement.

1.2 Evaluate a range of different tourism and hospitality sectors and the organization that operate within them

The tourism and hospitality industry is very broad industry which also includes service sectors such as restaurants, logging, event management, theme parks, transportations and other additional fields. The tourism and hospitality industry accounts for several billions across the world which depends on the disposal income of customers to facilitate them in leisure time. On the other hand, hospitality sector of the tourism and hospitality industry such as hotel, restaurant and other groups may also be included.

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On the whole, the tourism and hospitality industry can be divided into eight major segments. These are:

Accommodation

Events and Conferences

Adventure Tourism and Recreation

Tourism Services

Attractions

Transportation

Food and Beverage

Travel Trade

Analyze stakeholders roles within tourism and hospitality industry

The individuals, organizations or groups that have interest or stake in an organization are termed as stakeholders. Practices of organizations can have long lasting impact on the interests of stakeholders. Therefore, it is very important to analyze the interests of stakeholders. In tourism and hospitality industry, the organizations or individuals who have put capital or efforts in the establishment or development of the industry can be referred to stakeholders of the industry. In addition to this, different stakeholders in private and public sector organizations in tourism and hospitality industry can exist (Belinda, 2008). Businesses in tourism, government and communities can have stake in the tourism and hospitality industry. Tourists cannot be considered as actual stakeholders of the tourism and hospitality industry because they do not make significant money through this industry. On the other hand, they can influence the practices of the tourism and hospitality industry because they are involved in the industry from different aspects. Some of the stakeholders of the Savoy Hotel are as follows:

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Government:

The most important stakeholder of the Savoy Hotel is government because policies and regulations of the tourism and hospitality industry are shaped by the government. In context of overall tourism and hospitality industry, government influences the practices of organizations in following respects (Belinda, 2008):

By consultation with the private sector and other communities, it plans the policies of the tourism industry

It ensures that the organizations in tourism and hospitality industry follow the planned policies and regulations

It provides support in financial terms and guidance to the companies in tourism and hospitality industry

It ensures that stability and law and order situation of the country for attracting tourists

Industrialists:

Industrialists are also very important stakeholders of the Savoy Hotel. Industrialists include travel agencies, organizations in the industry, and transport agencies. The organizations in the tourism and hospitality industry include hotels, restaurants, and shopping centers. The practices of all these organizations can affect the operations of the tourism and hospitality industry, as a whole. Industrialists can have following interests in the tourism and hospitality industry:

To make investment in the tourism and hospitality industry

To market their products and services in different organizations in tourism and hospitality industry such as hotels, restaurants and shopping centers

To influence the companies for promoting their products and services

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Customers/tourists:

Customers or tourists are also important stakeholders in the Savoy Hotel. This group of stakeholders demands value, quality and high customer care. These are the major source of money for the organizations operating in the tourism and hospitality industry (Belinda, 2008).

Employees:

Employees are the internal stakeholders of the Savoy Hotel. They have high level interest in the internal policies of the tourism and hospitality industry. They demand quality work environment, job security, compensation and truthful communication in the organizations (Belinda, 2008).

Local Communities:

In Savoy Hotel, local communities are important stakeholders. This is because they attract tourists and impact on their intentions of visiting a particular place. They can have stake in the tourism and hospitality industry in terms of job security, environment protection, promotion of local products and services and promotion of local culture and values.

1.4 Analyze the nature of changes to the structure of tourism industry over last 15 years?

Over the last fifteen years, several changes have occurred in the Savoy Hotel.These changes may include:

change in oil prices which led to changes in charges of fuel in airlines

Increased capacity of aviation on different routes which attract tourists to the tourism and hospitality industry

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low international airfares and cheap packages of travel with discounts which attract tourists towards the tourism and hospitality industry

Trends in consumer demographics which change the behavior of customers for tourism

law and order situation in different countries

Terrorism factor which reduces the tourism in certain countries

On the whole, trends in demographics of customers impact the consumer behavior in the tourism and hospitality industry. It is important for the Savoy Hotel in the tourism and hospitality industry to make important steps regarding strategic management relevant to these changes. Organizations should make relevant policies to attract customers.

Marketing Report
2.1 Analyse issues around sustainability and sustainable development in tourism and apply management strategies accordingly

The sustainable issues in the Savoy Hotel refer to the environment protection. It is important for the hotel to apply certain policies regarding these issues to resolve the problems and disagreements. In the global context, the sustainability issues are very important. Organizations need to develop relevant strategies regarding the sustainable development. On the long term basis, organizations need to develop local as well as global strategies for attracting customers and ensuring sustainable development.

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This is because of integration of sustainable issues across the world.

There are many issues in local context which may impact the sustainability in global aspects. Therefore, hotel should integrate their local and global strategies for ensuring sustainability in global tourism and hospitality industry.

2.2 Evaluate certain ways in which tourism can be managed in a sustainable way with reference to given examples

There are three major ways through which sustainability issues in global tourism and hospitality industry. These are:

Resource based tradition: In this method limitations to growth in hospitality industry are evaluated in resource context

Activity based tradition: This refers to the transformation of hospitality industry on dynamic activities

Community based tradition: This refers to the integration of resources and activities in the hospitality industry

2.3 Apply principles of corporate social responsibility to a chosen tourism business

The corporate social responsibility refers to the commitment of the business to ethical and economic development. In Savoy Hotel, corporate social responsibility issues are highly important. These issues relate to the health and safety conditions. Moreover, commitment towards employees, customers and shareholders are also included in this context (Bhattacharya, 2011). The Savoy Hotel needs to be commitment towards environment in broad sense to fulfill its responsibility towards society.

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On the whole, Savoy Hotel needs to show its responsibility towards following sectors:

Workplace

Community

Marketplace

Environment

Market Research
3.1 Apply PESTLE analysis to describe the main trends in global tourism industry

A business tool that evaluates the different factors of external environment of an organization is termed as PESTEL analysis. This tool analyzes the political, environmental, social, technological, legal and economic perspectives of the environment in which organizations operate. In perspective of tourism and hospitality industry, this tool determines that whether the industry is suitable or not for investment (Miriam, 2011). The PESTEL analysis of global tourism and hospitality industry is as follows:

Political Factors

Political factors refer to the extent to which government impacts the operations of the organizations in the tourism and hospitality industry. The important political factors such as health protection laws, tax rates, law and order situation and political stability can influence the Savoy Hotel in the tourism and hospitality industry. In the global context, political situation in the Middle East can impact the tourism. Moreover, in countries like Afghanistan and Pakistan, where terrorism threats are high, tourism and hospitality industry is declining.

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Economic Factors

Economic factors can also the operations of the tourism and hospitality industry. These factors can influence the revenues and expenses of the hotels operating in the tourism and hospitality industry. The prices of products, raw materials and inflation can impact the industry. Rates of interest and exchange rates can also influence the hotel as well. Financial downturn in the world decreased the purchasing power of the customers and tourists. In this way, overall revenues of the Savoy Hotel were impacted in that financial crisis.

Social Factors

Social factors may have long lasting impact on the practices of organizations in the tourism and hospitality industry. Health conscious behavior of customers may impact their purchasing behavior in the hotels and restaurant segment of the tourism and hospitality industry (Butler, 2004). Culture and religious practices of people in a particular country may also impact the practices of the Savoy Hotel in tourism and hospitality industry.

Technological Factors

Technological practices impact the demand and supply factors in the tourism and hospitality industry. Technological efficiency in the tourism and hospitality industry may enhance the demand. If the food technology is efficient in the tourism and hospitality industry, organizations in the restaurants and hotels can have high demand from customers. Organizations can prepare food quickly to meet the demand. Technology may also impact the relationship of hotels with the customers. Efficient technologies can impact customer relationship management in the Savoy Hotel.

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Environmental Issues

There are several environmental factors which influence the practices of hotels in tourism and hospitality industry. Packaging decisions are the major considerations in the tourism and hospitality industry. The practices of organizations in the tourism and hospitality industry which cause pollution may impact the image of the organizations in global context. Global warming, climatic conditions in different regions can also influence the practices of Savoy Hotel in tourism and hospitality industry.

Legal Issues

There are many legal issues which impact the policies of tourism and hospitality industry. Rules and regulations regarding food practices can impact the hotels in restaurant sector of the tourism and hospitality industry. Laws regarding operating business in a foreign country can also impact the operations of hotel in the tourism and hospitality industry.

3.2 Distinguish between the elements of macro and micro environment

The macro environment of an organization is a broad environment which aims at the investigation of major issues. This environment is basically refers to PESTEL environment analysis that allows the researchers to focus at the factors which impact a business in external and broad environment context. These factors may include economic, social, technological, political, environmental and legal factors. These factors impact the hotel in different contexts. It is very important for the hotel to adapt to these factors in an effective manner. The results of PESTEL analysis allow the organization to see the factors where its strengths can be capitalized.

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Micro environment refers to a small environment which aims at investigation of a research problem in a small perspective. This environment refers to new patterns of organizations. This environment may include internal and small external environment of an organization. Internal environment may include employees and management. On the other hand, external environment may include suppliers, customers, and competitors. Both types of environment are highly important for the hotels to see their effectiveness for the operations of the business.

3.3 Analyze the effects of macro and micro environmental factors on tourism organization

Political factors: Improvement in the trade barriers and opening of new tourism avenues can enhance the scope of Sovay Hotel for tourism (McKercher, 1993)

Economic factors: Low bargaining power of customers and clients reduce the tourism revenues of Savoy Hotel.

Environmental factors: high concerns of environment such as pollution influence the Savoy Hotel to meld its practices in environment friendly mode

Legal factors: Laws and regulations in tourism industry impact the Sovay Hotel to mold its practices according to laws

Social factors: behaviors of customers towards healthy food impacts the policies of Sovay Hotel to offer healthy food to customers

Technological factors: improvement in technologies and transportation influence the Sovay Hotel to reframe its practices for attracting customers and tourists.

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Sustainability & Corporate Social Responsibility
4.1 Evaluate the stages of market research process
Defining the Problem or Need:

The first stage of the market research process is defining the problem or need. Before conducting the market research, the Savoy Hotel in the tourism and hospitality industry need to identify the main problem or need of the research. They need to conduct investigation to discuss the need of conducting research and define the problems of the organizations. This stage defines the problems or issues that prevail in the organizations and hinder its performance. In order to find the solution of the problems, research is conducted.

Deciding the researcher

After defining the problem or need of the research in the hotel, the next stage is to decide about the researcher who will conduct the research to resolve the prevailing issues. This stage refers to the formulation of analytical framework or methodology for conducting the research. The researcher creates case studies of the hotel to make exact framework for the research.

Deciding the methodology

After defining problem and researcher, the next step is to decide about the methodology of the research. This stage refers to the exploration of different methodologies and frameworks for conducting research. These frameworks may include interview, survey or secondary data. It is very important to decide appropriate methodology relevant to the need of the market research. Relevant methodology aims at finding exact solution of the prevailing problems of the organizations (Baker, 2000).

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There can be qualitative or qualitative methodology for conducting the research. In qualitative methods, discussions are conducted with the relevant members for finding the solution of the prevailing problems. Qualitative methodology refers to the investigation of the problems in theoretical manner. On the other hand, quantitative methodology aims at finding the solution f research problems in quantitative terms. This methodology aims at investigating the research problems in numeric terms. Survey is the best tool for conducting quantitative research. There is another methodology which is used to conduct market research. This methodology is mix f qualitative and quantitative methodologies. Many researchers suggest that mixed methodology is effective for finding the justified and logical answers of research questions.

Data Collection Process

After deciding the research methodology and researcher, the next stage is the data collection process. At this stage, research design is produced for the research. This stage defines the appropriate framework through which research is planned. Aims and objectives of the research are defined at this stage of market research (Saunders et al., 2009). This stage defines that what type of data is to be included in the research. Basically, there are two types of data i.e. primary and secondary. Primary data is the data which does not exists in the earlier records. This type of data is collected for the first time. This data is the most fresh and recent data. Researchers need this data to find the solution of problems. The advantages of this type of data are low biasness, relevance and logical results of research problems. On the other hand, secondary data is the data which exists in the earlier records. This type of data exists in the books, articles and other data bases. Researchers include this data in the research to investigate the issues in theoretical terms. In order to investigate the research problem through secondary data, researchers study existing theories and models regarding the problem.

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This data is easy to collect. There are specific tools for collecting primary and secondary data. In order to collect primary data, survey, interview, focus group discussions or observations are used.

On the other hand, secondary data can be collected through books, articles, newspapers and reports. Whatever the data is, the important consideration is to adopt relevant data tool which can investigate the research problem in effective manner.

Data Analysis

After collection of data, the next stage is to analyze data to find the answers if research questions in an effective manner. At this stage, data analysis techniques are discussed and decided. Data analysis must be relevant to the aims and objectives and research methodology. If data analysis technique is irrelevant to research methodology, justified and logical answers of research question cannot be obtained. Before analyzing data, it is important to present data in tables and appropriate transcripts so that reader can get deep insight of the research. Data analysis must be very effective so that relevant individuals can get benefits from the research findings. If analysis is not appropriate, management cannot get benefit from the market research to decide the solution of problems prevailing in the organizations.

Conclusion and Presenting the Report

The last stage of market research process is presentation of data and conclusion. This stage is highly important for the researchers as well as for management who are responsible for deriving answers of research questions. It is very important for the researchers to present the findings in an effective manner so that management can take decisions regarding the prevailing problems in the organization. The researcher needs to communicate the findings of the research in an effective manner.

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In market research, management does not take interest in the details of the research process but takes high interest in the findings and conclusion. This is because management has to take decisions regarding prevailing organizational problems. Therefore, if findings are not presented logically and effectively, management’s effectiveness in decision making is impact. It is very important for the researcher to present logical and justified recommendations regarding the research problems so that management can take help in decision making.

4.2 Provide a justified proposal for a suitable market research plan for a given organization

For the Savoy Hotel, following research plan is proposed in the following stages:

Aim and Objectives

Data Collection

Data Analysis

Results and Conclusion

Recommendations

In analyzing services provided by Savoy hotel elegant decor services with stylish Italian architecture for key attraction has been provided. The Florence atmosphere with classic marble and mosaic bathrooms with enjoyable and exhilarating experience attracts customers all around.

4.3 Understand the difference between qualitative and quantitative research and evaluate when each might be appropriate

Qualitative research is basically exploratory research which aims at obtaining reasons, motivations and opinions regarding the research questions. This type of research is conducted through development of hypothesis in quantitative terms (Saunders et al., 2009).

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This research is used to discover the thoughts, trends and opinions regarding a particular research problem. Qualitative research methods investigate a particular problem in theoretical terms; there are different methods which are used to conduct qualitative research. These methods may include semi structured interviews, observations and focus group discussions. In order to conduct qualitative research, small research sample is selected from the entire population.

On the other hand, quantitative research codifies the research problem through numerical data which can be converted into appropriate statistics. This research method is applied in market research to identify the attitudes, behaviors, opinions and suggestions in quantitative terms. The aim of this type of research is to generalize the results on a large sample (Russ and Preskill, 2001). Quantitative research is used to uncover the aims and objectives of the research in quantitative terms. There are several methods through which quantitative research can be conducted. These methods may include surveys, face to face interviews, website interceptors and online polls.

This type of research focuses on quantities and numeric for finding the solution of research problems. On the basis of statistics and numeric analysis, quantitative research finds the answers of research questions. On the other hand, qualitative research focuses on qualities such as behaviors and attitudes in real manner. The results of qualitative research are presented theoretically rather than numerically (Russ and Preskill, 2001). Quantitative research is applied at the scenarios where aim is to generalize the result on a large population. On the other hand, qualitative research methods are applied on the scenarios where aim is to discover problem in an organizational setting and find solution of problems.

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4.4 Evaluate different research methodologies based upon a given scenario

There are different types of research methodologies which are implemented on particular scenarios. Each research methodology focuses on particular aims and

objectives (Saunders et al., 2009). Some of the research methodologies are as follows:

Quaitative research

This is first type of qualitative research methodology which refers to investigation of the research problem in theoretical terms. This type of research methodology aims at investigation of research problem in words. In social sciences, qualitative research is conducted. This type of research is conducted in a natural setting so that researchers can get deep insight of the research problem.

Quantitative research

The second type of research methodology is quantitative research which is used to determine the relationship between different factors. The nature of relationship is quantitative.

Mixed research

Mixed methodology refers to mix of qualitative and quantitative methods. This type of research methodology is recommended by the researchers for finding logical and justified answers of research questions.

Action research

This research model refers to studying a particular problem and accomplishing its aims at the same time (Saunders et al, 2009).

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Conclusion & Recommendation
Explain each of the 7PS and apply them to a chosen organization
Product:

The Sovay hotel offers services to customers with hotel, restaurants and accommodation service that manage business activities in effective manner.

Hotels

Restaurants

Spas

Amigo

BocconiRistorante

Browns Hotel

Browns

Lincontro

Charles hotel

Augustine

HIX Mayfair

Hotel De Russie

Verdura Golf and Spa

Verdura Golf and Spa

Verdura Golf & Spa Resort

Rocco Forte hotel

Parioli

The Balmoral

Villa Kennedy

Rocco Forte Hotel

Hotel Astoria

Astoria

Gusto

Rocco Forte hotel

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Price:

The price of room, suites and halls varies with consumer demand.

The Edwardian Elegance Suite package

785 ?

Every ones an original winter offer

300?

Savoy festive package

395?

Savoy Splendor

295?

Savoy Suite Treat

775?

Sundays at the Savoy package

250?

Bed & breakfast package

305?

Cabaret Theatre package

540?

Impression package

495?

The Savoy element package

825?

Top hat theatre package

465?

The variance in prices in accordance with consumer demand present effective ways of accommodation, theatre package, dinner manage global event and meeting solution.

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Placement:

The strategies regarding placement are as follows:

Savoy family Suite

One king and two twin beds

Junior Suite

One king bed

Deluxe Junior Suite

One king bed

Savoy Suite

One king or one queen bed

River view junior suite

One king bed

Edwardian Suite

One Queen bed

Art Deco Suite

One king bed

Art Deco two bedroom suite

One king bed

River view deluxe suite

One king bed

Personality Suite

One king bed

Personality Art Deco Suite

One king bed

Promotion:

24 hour Butler service, tea and coffee service, Audio i-pod service, unpacking service of arrival, fresh flower, daily news paper , magazine selection, leather desk manage to gather effective promotion services. In perspective of consumer demand dining , meetings and activities were offered. Global event and meeting solutions relevant to prestigious revenue services, divine dances with family oriented, personal or signature packages entertain customers.

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Fairmont Gold

Guests, honor bar, relaxing comfort , continental breakfast services were offered

Family travel

Mayan, Hawaiian culture with resort, games and museum attractions were offered

Fairmont Golf

Luxury, lodging and property facility for elegant accommodation

Fairmont gift cards

Award winning restaurants, denomination and currency spas

Celebration life

Favorable places for positive celebration of life experience

Physical Evidence:

The services of hot

Part I

Phuket or Phuket Island is located on the west coast of the Andaman, part of the Indian Ocean. Phuket is one of most important travel destination of Thailand. It has natural beauty surrounded by the beach and mountains. Features like a powder white sandy beach and the beautiful blue waters known as “Pearl” of the Andaman Sea.

Phuket has all facilities needed, Phuket international airport which is ready to facilitate traveler from all around the world.

Nowaday, Phuket is heart of Andaman coast traveling which is waiting for many millions of local and foreign visitor to see it.

Phuket, an area approximately 543 square kilometers or 339,375 rai, the province is the 75th largest in the country or second smallest of the country after Samutsongkhram province. However, it is the largest island of Thailand, length of the island from north to south about 48.7 km and the widest measurement from east to west and approximately 21.3 kilometers.Island surrounded by the Andaman Sea with over 30 of large and small islands in its territory.

The word “Phuket” had been distorted from the Malayan “BuGit” which means mountain and the original use of the word “Phukej” which in the language of the Tamil people means “Glass Mountain” is the term used for the Tamil people calls “Mani Klam”. Besides, Phuket also has other names from the past such as LeamTakoh Jungceylon Silan Thalang and Thungkha etc.

Phuket is a long historic city. In the past, formerly part of the Kingdom of Pornlink. Until Sukhothai age, it became a part of Takuapa town. The island had a reputation as a land of rich tin mines because the tin is the most in the country. The prospect of long-excavated over the past 500 years, the city was a small town at Thalang with Thai nobleman stayed and protected interests from trading with foreigner. In addition to mining, the rubber plantations, coconut orchards and fishery were found commonly in the island.

Later in the year 2328 meet the reign of King Rama I, a war had caused the army and Myanmar army troops had invaded into the lands west beach in Thailand from Ranong Chumporn Chaiya to Nakhonsrithammarat. While the Bangkok’s armies were in battle at Kanchanaburi, cannot move troops to help out right away. Myanmar had hit Takua Pa and Takua city and camped around Thalang city and wait to hit Prachuap. At that time, Phraya Thalang (Phaya Pimon Alya Khan) passed away recently and had not set a new ruler yet. His wife Madam Chan and sister named “Muk” were gathering troops and inhabitants. Help set up two large camps to protect city. Myanmar troops can’t break through the camp, a month passed and no foodstuffs supplied to Myanmar troops and withdraw all troops finally

Bravery of them in this was courage and great benefits to the nation. So King Rama the great ordered Royal decoration for the lady Chan as “Thao Thepkasattri” and Muk as “Thao Srisoonthorn” It is pride to the citizens of Thalang until today.

Later, during the reign of King Rama 5, he gathered the western seaside towns and named as “Territory Phukaj” and the year 2476 has been canceled territory system then changed to “Phuket Province” since then.

Today, Phuket province is divided into 3 districts named Muang Thalang and Kathu.

State its mission, vision and major goals.
Mission Statement:

“Phuket will deliver the best leisure experience as well as the fresh of natural environment. As the center of diversified sanitarium and wellness tourism place, people visit Phuket to escape from confusing life stress or illness and its life can be recovered here. Phuket experiences will bring people back to good”

Vision Statement:

“To make Phuket and perimeter province the world’s choice of relax and revitalize”

Major goals:

To drive the strategy of the Phuket province, development goals are set as following

1. Become a center for world-class marine health tourism destination.

2. To raise the quality of life of people and maintains its unique identity of the local culture.

3. Management and utilization of natural resources and environment to keep it balance and sustainable.

Analyze challenges and developments in relation to its marketing.

Phuket is one of the global most attractive travel destinations for many years and it has been developing in term of facilities, commercial and sightseeing. These are good to facilitate and support the traveler to visit Phuket conveniently. However, the environment of Phuket has been decaying gradually. The famous Pathong beach is crowded by booths shops and people caused dirty and garbage around the length of beach that reduce the beauties of Pathong in nowadays.

The rapid change of city also lead the number of criminal and robber increasing in recent year and it has been concerned with the security of traveler both Thai and foreigner.

Challenge for development of destination marketing is how to sustain Phuket name in term of its intrinsic beauties with charming culture of Thailand and create more attractive place continuously. The opportunity of developing Phuket to successful travel destination is not only create reputation to single Phuket itself. Group of provinces around Phuket can make attractive places portfolio bigger and various.

Development of Phuket in the past, it had been developed along with the group of city side strategically. And link in upper south provinces as well as national and international which can say that Phuket has changed in a certain level. The situation of a growing trend of tourism growth in Asia Pacific continued. Thereby enhancing opportunities for Phuket Using the existing base support various development opportunities that will occur in accordance with the following situation.

World-class tourism reputation.

Economic growth and significantly increasing of investment in the tourism and healthy and Elderly.

Linked to regional and international development (Development of travel industry also improves the standard of local products services and educations).

Development of tourism and fishery industry.

Government supports strategically.

Alert of global environment concern quality of life and sustainable development.

To grasp existing chance, Phuket may position itself as health spa or health resort. Forest and beach resource of Phuket are attractive enough for normal travel and it can be developed typically with the development of the whole country but Phuket can differentiate itself and benefit from its natural resources and sightseeing. Revitalize spa or resort that target to people who escape from disorder of metropolitan, stress or in recovering from treatment of sickness can be good story to communicate to target visitors.

Solid direction must be set and roadmap should be launched from government sector. Roadmap must gathering idea from entrepreneur around Phuket and provinces around. The group of leading resort and hotel in must be selected and pioneers to the projects as well as other investor who are professional in field of health spa or sanitarium.

Explain the destination’s marketing strategies.
Background

Phuket is one of the most famous tourist destinations and has undergone rapid and investment of international healthcare. Phuket can now offer the highest standards of welfare and medical care, blended with Thai hospitality. The principle of the health service with world-class hospitality warm and charming Phuket is conducive to health and wellness destination in the world. There is more to Phuket than its white sand beaches, fantastic bargain shopping, water and land sports and entertainment.

Phuket hospitals provide patients access to highly qualified medical personnel. We emphasize that this international accreditation of key factors of success and a guarantee of our commitment to the best of medical services.

The rapid changes in our world today lead us to the era thorniest issue. The world has changed, both positively and negatively, and development are most afraid of our humanity is the development of the disease. In short, if I may say, the disease has no barriers; people living anywhere in the world would have the chance to experience any kind of illness or disease. And most of the time, the disease can be cured for the license period. With this belief, Phuket is the best place for medical treatment; we have the edge when it comes to the availability of services. And you found that there was no time to queue or a long wait for medical treatments in Phuket.

Situation Analysis

In Thailand, health tourism is just in the early stage and trend of growth is vague without any direction from government. However, opportunity of dramatically growth is exist, from many important factors such as attractive resort town, good standard of medical services and lower cost of living. Therefore, global trend of wellness tourism is growing but Thailand is still laggard, big chance to fulfill demand of patient or retire people from developed country.

SWOT Analysis
Strengths

Tourism resources are uniquely beautiful and diverse world-renowned.

Appropriate and isolated location.

A strong and diverse economic base.

The availability of infrastructure and service facilities.

Have a unique culture.

High standard of wellness and medical services.

Low cost of living and medical services expense.

Weaknesses

Security and tourist exploitation.

Participation of citizens and public mind.

Control and maintain standards of service.

Dependence of foreign workers.

Appearance of a natural earthquake risk area the tsunami.

Language and Culture Barrier

Lack of medical staffs.

Opportunities

World-class tourism destination.

Economic growth and investment in tourism, health and the elderly.

Traveling Thailand is strongly support from government sector.

Threats

Uncertainty of local political situation.

Instability of global economic.

International terrorism, international conflict and epidemic disease.

Obsolete of laws and regulations.

Destination’s marketing strategies of Phuket could start from its own resources, people and culture. This to set the whole picture of culture and leisure experiences occurs spontaneously. Main strategies

Assign strategic tourism of Phuket Pangnga and Krabi. Position and the definition of each provinces must stated obviously and use to communicate to target visitors.

Development competitive capabilities of Provinces, defines each one clearly and develop core capability, resources and commitment of local community.

Encourage local people to help promote their hometown to visitor. Sponsor local merchant or facilitator doing business at their place rather than move to Bangkok.

Recommendations for this destination to pursue in the future.

Phuket is normally well known in global travel destination from its quality beach resort and natural sightseeing. Target of bringing health conscious people to take an interest to Phuket is just to boost up communication of new story in health spa and sanitarium for patient and elder.

The plan of doing this could be implemented by government and put into national development in tourism sector and keep monitoring the result and success rate among investor. Serious support from Thailand Authority of Tourism (TAT) is needed, new investor or existing player in resort industry may be supported in monetary promotion or tax policy.

The uncertainty of local political is one of major obstacle to future and influenced to sustainable development of Phuket’s destination marketing. Different policy of different political parties may lead the development of Phuket and TAT policy support to the plan out of track. This might extremely influent decision of investor at first as well.

Comment on your learning from studying this destination and preparing the project.

Major sources of studying this destination are from internet and secondary data collected by TAT. Phuket is one of most interesting Thai travel destination and in focus of many study therefore information are not so difficult to find. The specific type of data to manipulate is the structure of process in government and it support that needed to counted on the project. Data is complex and hard to exactly verify how to get the real direction of organization under any political control.

Part II
You are requested to draft a NEW strategic plan for the selected case, not to show or analyze the existing one. At least 8 pages
Strategic Tourism Business Plan

Select tourism products (spa)

Do the external environment analysis:

-Society (POlitical, Economic, Technology, Socio-culture, International influence)

-Task (customer, competitor, supplier, workforce, laws and regulation, shareholder)

Do the internal environment analysis:

-Structure, culture, resource (organization structure, business owner, shareholder, board of mgt, org culture, staff, techno and appliances)

Do the product benchmarking with one competitor

Do the product and market positioning: SWOT, segmentation

Set the corporate direction (vision, mission, goal, objective)

Design/suggest tourism business strategies

-(Corporate(growth,stability, retrenchment strategy)/

-Business(promotion mkt, product, priceing, /

-Functional Level Strategies(HRM) )

Six Senses Destination Spas are dedicated to transforming the lifestyle of its guests through a complete immersion into healthy and mindful living. They offer structured and personalized programmes that blend holistic fitness activities, organic fishetarian and raw foods cuisine, wellness education, self-discovery classes, relaxation and renewal. Preventative wellness is a fundamental component, combined with sound nutritional and naturopathic knowledge, which provides guests with the ability to consciously support their health and longevity, overcome and alleviate stress, and live a more healthful life, www.sixsenses.com/Six-Senses-Destination-Spas/index.php.

Six Senses Destination Spas is located in Karon beach where the sand is white and clear view of seaside while slightly people have water activities around because it is danger zone of windy and high level of sea wave.

The goals of the company are first to be profitable and introduce healthy course and program that is effective and create buzz among group of health conscious people which help create spa brand recognition.

Vision

Become leading combination on medical and beauty spa to meet the needs of clients in health and beauty by merging the Thai traditional know-how and modern medical innovation by the year 2015.

Mission

Set new standard of value added spa by blending folk wisdom together with modern science of treatment and science of beauty with professional medical team to increase customer satisfaction. Total solution of healing and treatment will be the top of program that prospects customer looking for not only local customer but also in global market.

Objective

To create a unique Thai spa massage and special therapist for global market.

Report more than 10 million sales revenues by end of first year.

Maintain average 25% of profit after tax after 2 years of operation.

Maintain client return rate not less than 60% at the end of second year.

Become very first choice of destination spa among potential target by end of first year.

External environment analysis
OPPORTONITIES

The distinctive traditional Thai massage and the outstanding Thai hospitality presented through the well-trained therapists

As for the government, it has been doing its utmost in promoting Thai spas. For example, Thailand is scheduled to hold “ISPA Asia Pacific Conference & Exhibitions” in 2006, which, according to Watchara Phannachet, Deputy Minister of Industry, will be beneficial to the economy in general. Moreover, the government has provided training to personnel in the spa industry to enhance the standards of Thai spas. The Thai Spa Association and the Thai Spa Operators Association were set up to bring together all those involved in the local spa industry to steer Thai spas in the same direction, http://www.thaispaassociation.com/

In 2004 the Thai government implemented a policy to develop Thailand into a health service centre. The strategy is to make Thailand the centre for health services in Asia by the year 2010.

With the Thai governments’ promotion of Thailand as the “Healthcare hub of Asia”, and “Tourism Capital of Asia” the future outlook for the Thai tourism industry seems promising. The continuous increasing number of visitors and the growing demand for health related treatments, it is anticipated that Thailand is a potential market for Danish suppliers of equipments, products and accessories for the hotel, spa and health related sectors.

As people decide to change their habits and pursue healthier lifestyles because Higher rates of heart disease, increases in the incidence of cancer, record numbers of clinically obese people, and various other health scares have all drawn attention to the need for healthy lifestyle choices. Additionally, as modern medicine has progressed, doctors and scientists have greatly expanded their knowledge of the human body, exposing many health risks that were previously unknown. One-hundred years ago, doctors touted excessive sun exposure as beneficial, and heroin/cocaine combo sets, complete with syringes and needles, were sold in department stores. It is now common knowledge that too much sun can cause skin cancer, smoking can bring on any number of painful deaths, and eating a bit too much ice cream can pack on the pounds, increasing the risk of diabetes and heart disease.

Last 1-2 years ago, most of spa businesses were open in hotels and resorts. This caused consumers some inconvenience to receive service and services fees of spa located in hotel or resorts are relatively higher than stand alone spa in the similar standard and quality. From premium price of spa in hotel forces those to focus on only hi end segment of customers. Therefore, stand-alone spa business which can offer high quality and charge at medium or medium high can fulfill large demand on the market. There are approximately 40% annual growths from a space of market conditions, most of which are open for not super premium like offering in resort and hotel.

Support from government is also in form of source of funding which easier than in the past and cost of finance is decreasing from the trend of global interest rate.

THREATS

The intense competition in the market, data from 585 spas operating in Thailand state that 51% were day spas and 49% were destination spas co-located with accommodation.

In the first stage of spa operation in Thailand, it is always available in major hotels and resorts but spa business is highly popular among consumers in recent day. Enabling the investors and entrepreneurs to start businesses as stand-alone and this kind of spa are increasing everywhere in Thailand leads to high level of competition.

And substitute of spa products that help relieve stress, or healthy are also abundant. Generally, consumers can find products or services likes a fitness center in office buildings stand-alone or even in retail center, massage services are plentifully available in common commercial building. Other substitute is activities which people can join with no cost likes aerobic, running or bicycling in Public Park. Consumers have many choices in selecting the service by certain activities, those can be done without cost or very cheap to pay and people can access this kind of activity easier than spa in additional.

A newcomer in the spa industry is medical spas. The primary purpose with medical spas is to provide comprehensive and complimentary therapies and treatments. Treatments primarily offered by medical spas are laser surgery, colon therapy, weight control, and various diagnostic packages aimed at analyzing one’s individual health situation.

Problems perceived by the tourists as medical spa may only be using the old science of treating diseases such as Treatment with acupuncture actually, the Spa will not only do that. It is very meaningful medical spas

Investment and operating cost factor, the most recent import figures are collected during 2004, where 80% of the medical and health related equipment was imported. The main suppliers are USA with 40 percent of the total exports, followed by Japan (17 percent), Germany (14 percent) and UK (7 percent). In 2004 the Thai medical equipment market was worth approximately USD 371 million (Baht 14,270 million or DKK 2,261 billion). With positive expectations for the healthcare sector it can only be assumed that the value of the equipment market increases considerably in the future.

Bargaining power of suppliers of products used in spa services is also rather high. Products such as heat and bowl system Jacuzzi sauna and steam room are mainly component in spa business but this group of products is needed to supply from international vendor then import through few local distributors. So this problem can flatten choice of quality product for a small business operator or new comer, http://www.wikinvest.com/concept/Health_%26_Wellness

Internal factors analysis
STRENGTHS

Results-orientated approach is the way Six Senses Destination Spas proved to customer. After customers experience our program, they trend to invite friends or relatives to try too. This is the way to sustaining existing customers and attracting new customer to the business.

A well-researched of each Thai traditional program to make sure the benefit and avoid negative affect possibly happened to customers. This to prevent unexpected negative result and also enhance product development dimension of Six Senses Destination Spas, long-term focusing.

Experiences and good attitudes of staffs recruited is crucial, not only giving intensive training to new staffs and periodically training to update existing staffs for long term development but also looking for new staffs who are ready with experiences and attitudes toward spa services.

WEAKNESSES

High operation cost associated with spa components, equipment maintenance and payroll which reflect capability of both operation staffs and medical staffs. However, Six Senses Destination Spas can’t avoid these kinds of cost because it will keep the business on top among other spa operators in the industry.

The capability to services in limited volume of customers. As the need of highly trained staff and specific equipments, limitation to number of services offering daily may not flexible enough if demand of Six Senses Destination Spas increase too quickly.

Limited area coverage. As planned to locate on Karon beach area, coverage area of business that customers may looking for accommodation or resort around our place as well.

Product benchmarking with major competitor

The main competitor who is offering luxurious range of beauty and health spa service in our sight is “Let’s Relax Spa”.

Let’s Relax day spa was established year 1998 in Chiang Mai City. As we continue our excellent services, our valued clients tremendously spread the news of our exceptional services of our professional therapists. Therefore, as part of our gratitude, we make it a point to grow each day to serve you better and to suit your every need from treatments to branches. Let’s Relax now has 6 day spas conveniently located throughout the kingdom, Chiang Mai, Pattaya, Phuket and Bangkok. www.letsrelaxspa.com/index.php?p=aboutus

Strengths of the above services are offered: the proximity of the service of luxurious spa chain, prime location (Bangkok, Chiangmai, Pataya and Phuket) and name recognition. The weaknesses of these competitors are the general lack of promotion and penetration in international market.

Our competitive advantage is wide open, and gives us the opportunity to service a large population that is not currently well served. When you include our service works energy.

Competitive Profile Matrix (CPM) to reveal the competitive dimension of Six Senses and Let’s Relax

Product and market positioning

Six Senses Destination Spas will automatically position itself as one of the best health spa in Phuket and Thailand southern area as well as among global spa arena. Bearing in mind that none of the other competitors can offer exact range of services we will, or that their staffs can be capable and trained like ours, and there are no health salons of our kind in the area, we will be able to provide services to some of Phuket population are not being exploited.

There are no exact competitors, and some nearby competitors in Phuket and its perimeter. Six Senses Destination Spas also have corporate due with premium travel agency and higher grade credit card issuer.

Market Segmentation

Our target market will be divided by beauty spa and health spa. Beauty spa customers will be all ages and sexes, since health spa is relatively associated with specific group of customer especially elders. We anticipate that the beauty spa salon will also affect health salon happen in the same way. Thusly, our target market segments will be male and female professionals and retirees, age from 28 years, with individual incomes above THB 60,000 or household income above THB 200,000.

Design/suggest tourism business strategies
Business and marketing strategy
Main strategies

1. Focusing on brand awareness by using advertising.

2. Facilitate customers to access our place by building network and transportation from major location in Phuket.

3. Building community relationships and word of mouth through the unique service and quality, friendly and supportive, and to establish the absolute reliability of our services.

Promotion Strategies

Our promotion strategy has two components

Promotion of the first phase will focus on advertising, during and six months after our opening.

Advertising in second phase will focus on all integrated communication and advertising in the long term and maintain awareness of brand and keep feel of top health spa in one of the best destination of the world.

First phase

Advertisement

We will use local newspapers, local radio and magazines of social health, local, local television, mailings to all households in the immediate five mile radius, and mailings to all local affairs to premium wellness database.

Internet

Selective with related content website and our alliances will be used to penetrate international target customers.

Alliances

Services profile of Six Senses Destination Spas will be placed on our alliances resort hotel and hospital. Some real premium travel agency will be offered with our privileged services to its customers.

Second phase

Advertisement

We will continue to place advertisements in local social and health magazines this year. Mail-outs will be done again to both our customers and follow database a year later after the opening. Radio and television will be when we have special sales in the most stressful times of the year. Television ads are not certain, we will evaluate effectiveness before implementing other case by case.

Internet

We will continue to have a comprehensive website. After six months, and certainly after the first year, we will evaluate the viability of having the target clients of advertising on our site, and vice versa, we will evaluate the viability of advertising on the target customers of our websites (if applicable).

Social network such as facebook and twitter will be implemented after a year or when we have build customers base to create connectivity among experienced customers and this might form and spread out our reputation of services to the network easier.

Alliances

This type of advertising will be done as soon as we have grown beyond our threshold of profitability. We will also form alliances with an advertising company with whom we share common business objectives. We will also implement mutual benefits with our neighbors and restaurant business that will contribute to the local visibility. Advertising promotions with some restaurants will also be discussed.

In general, negotiation mean bargaining process between two or more parties seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict (Business Dictionary.com). According to Fisher & Ury in their book Getting to YES: Negotiating Agreement without Giving In, negotiating is a basic ways in getting what you want from other peoples (1981). While in Oxford Dictionary, negotiation mean discussion aimed at reaching an agreement. In Women Are Getting Even (WAGE) website, they interpret negotiation as conversation between two parties in order to make an exchange. According to Rusk (2006), the meaning of negotiation is “discussion intended to produce an agreement”. It also can be referring as common solutions that used to make a decisions and settle down the problems (Moore, 2012), a process which is two or more parties attempt to agree on the rate of goods and services that they exchange (Robbins & Judge, 2003). Conflict and negotiation are a fact of everyday work-life, yet it often produces anxiety (Cutts, 2012).

The UK Border Agency has announced that there are still technical problems with online booking service (Kelly, 2012). This statement shows that sometimes online booking faced a problem such as lost record (Kirschbaum, 2009), security issues (Fane, 2010) and technical issues (Scoot, 2012). There are problems that faced by customer when they used online booking system. Despite the fact that all the respondents (except for one) use computers almost every day, 14% believe that booking online is not securing in general (Bogdanovych et al, 2006). Conflict happen because of these problems. Conflict happen when people did not agree with the issue, it will create a friction or tension between that individual or groups (Nahavandi, 1999). Negotion is a process that examining the facts of situation, exposing the interest of both parties involver and bargaining to solve the conflict as many as possible (Moore, 2012). Negotiation permeates the interaction of almost everybody in the organization (Robbins & Judge, 2003). According to Lucas (2008), conflict might occur because of differing perception, inadequate or poor communication and also contrary expectations. These problems often happen when dealing with customer especially in travel agency. In tourism industry negotiation is an important process to gain a mutual agreement of something, especially to travel agencies. It is crucial for them to confirm what their customer wants and need. Through negotiation conflict between travel agency and customer can be reduced. Negotiating through areas of conflict can often lead to win-win situations agreeable to parties, reducing ill felling and conflict (Queensland Government, 2011). Travel agents have the negotiation power because they have maximum choice to offer to their clients (Travel Cafe Inc 2011). This means they have variety of choices that they can get from their travel suppliers and they can give us the best deal with best value of possible. Online booking lack of firsthand knowledge and rarely gives customer opportunity to speak with someone knowledgeable about service that they are booking (Morelock, 2012). The clients and travel agents can assists us to get what we want in our vacation.

Online booking allow customer to make all travel plans on the internet means they can do it any time of the day or night at home or while they’re on their lunch break at the office (Oakley, 2012). It is true when we are doing booking online we can make a booking everywhere and anytime but we cannot negotiate the price of the tourism product that we wish to book. If we are negotiating with travel agents, we have the chance to get lower prices as possible. Price negotiation usually occurs during purchasing of materials or supplies (Francois, 2012). For example, if a travel package to Cameron Highlands costs about RM300 for two nights, the clients can negotiate the price lower and can get around RM250. With negotiations, both parties will receive their own benefits and it is a win-win situation (Rusk, 2006). When customer asks an agent to negotiate, means customer are essentially asking the agent to subsidize their vacation (Brock, 2009) but through online system, customer had no change to negotiate with an agent because the price is fixed. The Marriott International, Hilton Hotels, Sheraton Hotels & Resorts and others was charged in San Francisco Federal Court on charges conspired to use their market dominance to fix the hotel prices with travel websites like Travelocity, Booking.com and Expedia, a subsidiary of Priceline.com From this case we can see that customer cannot negotiate the price because the price is fixed. The aim of the negotiations is to decide the price that is acceptable for both parties (Francois, 2012)

From price negotiation process it becomes bargaining process. Negotiations commonly follow a process of “positional bargaining” (Cutts, 2012). Oxford Online Dictionary give two interpretation of bargaining, the first is an agreement between two or more people or groups as to what each will do for the other. The second is a thing bought or offered for sale much more cheaply than usual or expected. There are two types of negotiation which are distributive bargaining and integrative bargaining (Robbins & Judge, 2003). Distributive bargaining also called claiming value, zero-sum or win-lose bargaining is a competitive strategy that is used to decide how to distribute a fixed resource such as money (Spangler, 2003). Honeyman (2012), interpret intergrative bargaining as one of platform which party try to understand interests of another party, on the expectation that it will helping the opponent to create solution as responsive its own concerns. According to Tewart (2012), many times people say they don’t like to negotiate (bargaining) yet, they still shop around and never pay full price. The word bargaining here does not only mean price negotiation, it is a much differentiated and broader term (Management Study Guide, 2012). Customer also can bargain to build his or her own trip with or without help from a customer care executive (Agarwal, 2012), asking whether travel agency offer travel insurance (trip – Travel Responsibility Informed & Protected, 2012) and a customer can seek redress under certain circumstances commonly referred as the right to repair, replacement or refund (Government of South Australia, 2011). These are things that customer can bargain with travel agencies.

The freedom of customer is restricted when they make booking through online. Customer cannot confirm their specific requirement when make the online booking through the hotel reservation system (Vyas, 2010). For example, when they make booking through hotel reservation system, if they have something that they don’t understand, no place for them to raise the questions. According to Lloyd, booking online doesn’t have individual to deal with booking process, it leaf to customer to read and understand the complicated terms and conditions. One of the advantages of booking direct with the hotel, by phone or email, is that customer can request a specific room of the hotel and they cannot normally do that online or with an agent (Trend, 2010)

According to Tewart (2012), most people act in their best interest and most people who say they don’t like negotiating, actually still want to. This statement show that customers still love to negotiate and online booking system prevent them from doing it. Negotiation is needed in order to secure the resources required for successful project completion (Evans & Lindsay, 2008). Through negotiating win-win solutions with customers it will not only give your company the best chance to succeed but will also create relation between customer and your company for future sales opportunities (Douglas, 2003). Negotiation also can increase clarity about the problem, can lead to innovative breakthroughs and new approaches, involvement in conflict can sharpen approaches to bargaining, influencing, competing and also can focus more attention on basic issues and lead to solution (Wertheim,1996)

Vyas, J. (2010, August 10). Disadvantages of booking online on travel portals. Retrieved from http://ezinearticles.com/?Disadvantages-of-Booking-Online-on-Travel-Portals&id=4832401

[Web log message]. (2012). Retrieved from http://www.wageproject.org/files/neg.php

Queensland Government , Department of Employment, Economic Development and Innovation. (2011).Negotiation skills. Retrieved from website: http://www.skills.business.qld.gov.au/running/1172.htm

http://www.businessdictionary.com/definition/negotiation.html

Oakley, R. (n.d.). The advantages of online reservations. Retrieved from http://traveltips.usatoday.com/advantages-online-reservations-63078.html

Lucas, R. W. (n.d.). Responding to conflict with customers. Retrieved from http://www.selfgrowth.com/articles/Responding_to_Conflict_with_Customers.html

Lloyd, M. G. (n.d.). Advantages and disadvantages of an online booking system read more: Advantages and disadvantages of an online booking system | ehow.com http://www.ehow.com/info_8780323_advantages-disadvantages-online-booking-system.html

Johanson, M. (2012, August 21). Travel websites, hotels accused of price-fixing. Retrieved from http://www.ibtimes.com/travel-websites-hotels-accused-price-fixing-751937

Brock, C. (2009, July 13). Negotiating rates and fares with travel agents. Retrieved from http://ezinearticles.com/?Negotiating-Rates-and-Fares-With-Travel-Agents&id=2603163

Tewart, M. (n.d.). People still love to negotiate. Retrieved from http://www.expressyourselftosuccess.com/people-still-love-to-negotiate/

Trend, N. (2010, February 11).http://www.telegraph.co.uk/travel/columnists/nicktrend/7213438/hotel-booking-should-you-use-an-online-agent-or-go-

Bargaining power of customers. (n.d.). Retrieved from http://www.managementstudyguide.com/bargaining-power-of-customers.htm

Top questions to ask your travel agent. (n.d.). Retrieved from http://trip.ustia.org/safety/articles/1233/top-questions-to-ask-your-travel-agent/

Government of South Australia, Business, Industry and Trade Department. (2011). Refunds to customers. Retrieved from website: http://www.sa.gov.au/subject/Business, industry and trade/Starting and managing a business/Running a business/Selling to customers/Sales practices in your business/Refunds to customers

Cutts, R. N. (n.d.). Using principled negotiation to resolve workplace issues. Conflict Management, 3. Retrieved from http://nl.walterkaitz.org/RNicoleCutts_PrincipledNegotiation.pdf

Spangler, B. (2003, June). Distributive bargaining. Retrieved from http://www.beyondintractability.org/bi-essay/distributive-bargaining

Spangler, B. (2003, June). Integrative or interest-based bargaining. Retrieved from http://www.beyondintractability.org/bi-essay/interest-based-bargaining

AGARWAL, S. (2012, October 08). Want to make your own travel itinerary? here are few portals that will help you. The Economic Times. Retrieved from http://articles.economictimes.indiatimes.com/2012-10-08/news/34322860_1_travel-agents-travel-itinerary-travel-hotspot

Francois, C. (2012). What is price negotiation?. Retrieved from http://www.wisegeek.com/what-is-price-negotiation.htm

Nahavandi, A. & Malekzadeh, A.R. (1999). Organizational Behavior: The Person-Organization Fit (ch. 13). Upper Sandle Ridge, NJ: Prentice Hall.

Roots Corporation Limited is a wholly owned subsidiary of the Indian Hotels Company Limited. IHCL is a part of the Tata Group of companies, which is Indias premier business house.

On December 24, 2003, RCL operated the first of its kind category of ‘Smart Basic’ hotels across India. RCL develops and operates a fast expanding chain of economy hotels across India under the “GINGER” brand.

The ‘Smart Basic’ concept created a revolution in the Indian Hospitality Industry. These hotels are termed as GenNext category of hotels. GenNext means generation next, i.e., these hotels are completely new concept, which has changed the outlook of hospitality industry in India. They signify simplicity, convenience, informality, style, warmth, modernity and affordability.

The concept of Ginger hotels was developed in association of renowned corporate strategy thinker Dr. C.K. Prahalad and the hotels have been inherently designed and established by IHCL.

The first of the Smart basics hotels was launched in Bangalore and was called as IndiOne. First, they completed the test marketing and subsequent fine-tuning of hotel facilities and services of IndiOne then rolled out the concept across India. Now the category of hotels has been launched with a new name “Ginger Hotels” which is in accord with the fresh, simple and stylish world of Smart basics.

The ginger Hotels are built in such a way that they meet the key needs of today’s travellers at affordable rates. It follows the concept of “Smart Basics” which is a ‘philosophy of providing intelligent, thought out facilities and services at a “value” pricing and reflects the new spirit in which people live and work today.

Ginger Hotels target middle-income group people with increasing disposable income. This class likes to spend on travel but not on luxury accommodation, they look for accommodation, which can provide value for their money. All they want is a clean, secure and hygienic accommodation at affordable prices.

Ginger Hotels follow generic strategy of growth in which they focus on the cities which has already experienced significant growth. Such cities generally show growth in certain business activities like population growth rates, tourism and convention activities, air traffic volume, local commercial real estate occupancy and retail sales volume. These cities tend to have strong demand for hotel facilities and services.

They invest in hotels that are situated near both business and leisure centres which tends to create great demand for hotel services and enables them to attract both weekday business guests and weekend leisure travellers.

They have a separate team consisting of members from finance, marketing, development and hotel management departments who assess the financial return of every new investment that the group decides to make and the team clears only those projects that they find are financially viable and which would provide them profitable returns. They target markets that do not have wide seasonal fluctuation in occupancy and focus on small entrepreneurs, traders etc.

Ginger has the first mover advantage. Looking at the increasing cost trends in real estate market in the last few years. Ginger Group of hotels lease out the area, building, or takeover some non-branded hotel, in this way they save significant amount of cost and time and moves into the market early which helps them in capturing significant market share ahead of its competitors. The company has identified over 80 cities and intends to focus more cities in the future. In order to increase their customer base, the company intends to continue growing organically in the existing cities in which they operate by selectively establishing more ginger hotels. The Indian Hospitality Industry is highly competitive and fragmented. Ginger hotels compete with three star full service hotels from unorganised sector. Earlier ginger hotels were the only branded three star hotels from the organised sector but the competition for ginger hotels have grown significantly after the announcement by newer international and local hotel companies to set-up hotels across the country in the value segment. Some of the potential competitors of ginger hotels are Lemon Tree Hotels, Ibis (Accor), Keys (Bergruen Hotels), Hilton, Garden Inn Hotels (DLF) etc.

Initially Ginger Hotels leased land in order to build hotels but now they are doing things differently – from building a hotel on the top of a shopping mall and redeveloping an existing property.

Ginger Hotels provide similar services that a normal hotel provides like rooms with T.V>, fridge, tea/coffee makers, laundry, restaurants, Wi-Fi connections, meeting rooms, business centres, Gyms, Car rental services, Doctor on call, Currency exchangers etc. The manner in which these services are provided differentiates it from other normal hotels. The tag line of Ginger hotels is “PLEASE HELP YOURSELF” which means most of the services offered have to be carried out by the customer himself. There are no room services or bellhops this strategy adopted by ginger, benefits customers and the hotel, customers, can save upon the tips, which otherwise they would have to pay for room services and hotel can save upon the cost of human resource. Most of the services have to be carried out by the guest himself like while checking into the hotel a guest does not need the assistance of the reception counter as ginger hotels have Self Check-In Kiosk. In addition, there is “Give n’ Take” Counter that the guest can use to deliver used clothes for laundry. There is an ironing room in every floor of ginger hotels. Further are water dispensers on each floor. Ginger hotels also have round the clock vending machine to provide with packed snacks and hot/cold beverages irrespective of the working of the restaurant. In addition, a vending machine to supply other things like toiletries, combs, toothpastes, soaps, mosquito repellents etc. ginger has outsourced food and beverage partners operating on a revenue share model. They have introduced facilities like SMART wellness, which is Ayurvedic wellness facility for business travellers at a low cost. In addition, SMART sleep that includes posture-pedic mattress for absorbing and redistributing pressure from the body weight. In future Ginger Hotels intends to develop its own merchandise range that will be offered in hotel and on the website. The size of the room in the hotel is kept small around 180 sq. Feet as compared to 250-400 sq. Feet of premium hotels. The concept of “Help Yourself” has helped the company in operating the hotel with just 25 staff members as compared to premium hotels where they employ around 250 people. The room charges range from Rs. 999 to Rs. 3000, which is quite affordable. All this practice has helped them to cut their marketing costs significantly.

Early Mover status and establishes regional operational and synergy has enabled ginger to develop and operate its hotels efficiently and successfully. Ginger Hotels offer standardised products and maintain uniformity of hotel chain. They have come up with unique product features consisting of design, appearance, decoration, colour that attracts the customer’s attention. The company has developed a record of accomplishment of expanding the business operations through organic growth and maintain high quality, also achieve their financial target. Since there is a shortage of Human resource in ginger hotels, they have adopted a flexible and robust IT system in collaboration with Tata Consultancy Services, which is a company- wide seamlessly, integrated IT system developed by SAP.

Ginger hotels has a unique value proposition that appeals the middle class budget people and makes it a flourishing business. If we look at the Indian Hotel Industry, there are certain strengths or favourable factors that contribute to the prosperity of the company in the industry. Ginger hotels are associated with low cost airlines and low cost mode of transportation thus providing a low price better quality accommodation. Apart from this Ginger hotels are located near railway stations and bus stops and are situated in places, which can be beneficial for both business people and tourists. They are mostly located in the city with less seasonal fluctuations in accommodation. Most of the employees are outsourced thus ginger maintains a low amount of staff as the hotel does not offer any room service thus it helps in providing cost benefit. Ginger hotels also provide all basic amenities like gym, ATM, Wi-Fi etc. that helps the hotel in maintaining its standard and quality. This brand is very fresh and simple. It gives a new feeling as expected by the new emerging middle-income group in the country. Ginger relies on regional advertising rather than spending on national campaigns thereby cutting significant amount of cost and successfully building a brand. They have also been able to gain a lot of reputation by being a part of Tata Group, which is a pioneer in the Indian market. Another aspect of their brand strength comes from their holistic value. They have also taken a great consideration for disabled people by designing the last room in the hotel especially for them. They are budget hotels and operate on low cost. They have the ability of spreading themselves quickly across the county in just span of 8 years they have opened up around 40 hotels across the country. The brand Ginger has become very successful hotel chain in India by achieving the occupancy rate of 80%.

As Ginger Hotels enjoy certain advantages and strengths they have to face various threats and weaknesses. Ginger hotels is unable to attract higher-middle class and upper class who look for more luxury and services and ginger being a budget hotel does not provide much services. Since ginger is economy chain of hotels, they have a high employee turnover due to limited scope and remuneration provided by the group. This makes ginger incur huge costs by training new employees repeatedly. Ginger comes under the category of three star hotels and it has to face a tuff competition from the local hotels of unorganised sector that are even cheaper and provide services. Apart from these local hotels there are many new brands which have announced their desire to enter the budget hotel segment thus providing more competition to ginger hotels.

There are always two faces of a coin, same is the case with ginger hotels, if there are strengths, weaknesses also prevail.

Ginger is characterised by a high turnover of frontline staff, rapid, growth and dispersed location. Ginger’s ability to attract good talent and retain employees is critical for their growth strategy and that people are critical to maintaining the quality and consistency of its services and thereby their brand and reputation. Ginger has outsourced most of its activities only 8 to 9 managers per hotel are on the rolls of ginger rest other facilities like kitchen, restaurant, and backend maintenance are outsourced.

Ginger has 175 permanent employees. Ginger hotels have collaborated with various hotel management schools to develop talented students who can meet the rapidly growing demands of the company. The company uses a multi- step recruitment process for retaining and recruiting the best talent. Ginger has implemented extensive training programs and periodic tests for managerial and other hotel-based staff primarily through training partners. They provide various career advancement opportunities to their employees. Ginger hotel organises a two-month extensive training period for new unit managers during which they receive training in managing all core aspects of the hotel operations and they get familiar with the company culture and philosophy. Ginger group also conducts timely web based tests to assess the knowledge and skills of the workers. The company uses performance linked compensation structure, career oriented training to motivate its employees.

Even after having such an extensive human resource strategy. Ginger hotels face various challenges as it mainly operates in smaller non-metro cities where the employees are less exposed to new technology, comfort and modern amenities, it becomes a difficult task for the company to gear up the employees upto the standard of ginger hotels. Designing a system to recruit right kind of people and provide right training to employees is a difficult question for ginger hotels as the development inputs are different for different locations. Additionally acquiring professionally qualified employees in remote areas and non-metro cities and retaining them is an area of concern. In order to retain the employees, ginger has come up with various measures so that employees can get additional value in terms of non-monetary rewards like developing employee competencies by providing certifications etc. but consistently ensuring this across all the locations is a big challenge. Ginger uses unconventional recruitment process as conventional recruitment becomes very expensive for the group. They have created a portal called [email protected] from where almost 48% of the company’s recruitment takes place and rest of the recruitment takes places through referral programmes in which existing employees refer a new employee and if the referred person gets selected the referrer gets reward in this way the company satisfies both the existing and new employees. They have also merged with various management schools and employees go to colleges and collaborate with them by linking with their syllabi, they call students for get together and use students as summer interns so that they build relationship even before the recruitment starts. They try to keep their staff motivated by giving them a chance to learn new things and upgrade their skills. Since they are budget hotels so they choose e-learning initiatives to cut costs. They have in house training, induction and e-learning modules based on customer feedback systems. The compliance with quality standards are monitored through both scheduled and unscheduled visits, periodic tests and reviews at each hotel. In addition, the practice of mystery audits and of tracking customer comments through guest comment cards, allows ginger to improve its services and facilities at each hotel.

Ginger’s corporate marketing and advertising strategies are designed to enhance consumer awareness and preference for the ginger brand as offering the value, convenience and comfort in the economy hotel segment in Indian Hospitality industry. Ginger has to reshape the customer expectations, as still Indian customers are uncomfortable with the concept of smart basics and self-service. Each day they have to entertain many customers who enter the hotel without knowing what to expect. Customers often complaint about services which are not provided by the ginger hotels. However, creating awareness for ginger brand is a difficult task to perform, as ginger is a budget hotel, as its business model does not allow huge expenditure on media and promotion. Nevertheless, even after facing various challenges. Ginger has been able to respond effectively to the changing dynamics and economies of the Indian Hospitality Industry. With the continuing expansion across the country, customers are now seeing a greater value in ginger hotels. Ginger CEO Prabhat Pani said,” Ginger hotels, like any other Tata enterprise, would continue to be driven by respect for people and nature, and would like to epitomise environment-friendliness and social responsibility in all aspects of business.”

Geographically, the Galapagos Islands belong to The Equator, and are situated on the Pacific Ocean near Central America. Its an archipelago composed of 41 volcanic islands. The islands have a population of slightly over 30,000 inhabitants.

Historically, the Galapagos Islands were officially discovered by the bishop of Panama, Tomas de Berlanga in 1535. Until the 17th century, the islands are used as a natural water tank and food. What people can find is not only drinking water but also animals in particular tortoises. Unfortunately, lots of animals were used as food and some species were killed off definitely.

In 1835, Charles Darwin explored the archipelago. Surprised by the specific fauna of the islands, he studied particularly the geology and the biology on the islands. Thanks to his observations made, he published his first study on the origin of species and the natural selection.

Between the 1920s and the 1930s, a wave of European settlers arrived in the islands. By 1934, laws on the protection of the archipelago were promulgated. However, because of the World War Two, some species were exterminated.

The archipelago officially became a National Park in 1959. At that period, Darwin foundation was created in order to get funds for the conservation of the islands.

Tourism started toward the end of the 1960s. Today, thousands of millions of people visit the Galapagos Islands each year.

They are the first site in the world that became a listed UNESCO World Heritage site in 1978. Furthermore, in 2007, UNESCO put the Galapagos Islands on the list of “WORLD HERITAGE IN DANGER” because of the environment threats (mass tourism, overfishing, invasive species…). In 2010, they have been removed from this list thanks to the significant progress made by Ecuador.

The question that could be asked: what role has tourism played on the Galapagos islands?

This study on the Galapagos Islands is divided into three main points.

First of all, it will be focusing on the impact of tourism, positive as well as negative, on the islands. Then, it will talk about the management of tourism in that protected area. To finish, it will be discussing the role of eco-tourism in the Galapagos Islands.

The Galapagos Islands, where Charles Darwin developed his theory of evolution, are at risk of being ruined by tourists. Indeed, animals are disrupted by large numbers of tourist abandoning their babies and eggs including the famous giant tortoises.

It’s a disaster for all fauna on the Galapagos Islands but as well a real risk for the flora. There are so many species on the islands and in the surrounding waters that are now considered critically endangered, while another ninety have been officially declared as vulnerable. In the last five years, more than 100 new plants species have been introduced. Some species of the giant tortoise and the Galapagos mouse have disappeared completely. When visitors are coming to the island they bring with them spores or insects, which can be dangerous for native species. For example, they brought the mosquito of Malaria, who can kill many birds.

People are thinking that the Island isn’t disfigured by the impact of mass tourism but this is the saddening observation of the latest years. Facts are here and nobody can do anything now. The damage is done. The Galapagos need tourism but in the same time, tourists are damaging the Islands.

Tourists need services such as hotels and resorts. They want the same thing they can find everywhere with the Galapagos landscape. They ask for tourist information centres and guides on the islands. These demands are creating a large part of employment on the island.

They need transport and airport, which has required the setting up of many buildings. The land used to be a magnificent forest and it’s now transforming in small urban areas like everywhere in South America. The Galapagos were concreted like Benidorm in Spain. The concrete spoiled the Spanish’s East coast. For example forty years ago, people could go only by local supplies boat, but today there are up to 5 flights a day or cruise ship.

The government decided to create a highway all around the main island. After a few years of intense urbanism, traffic congestion and a high density of people coming to the tourist attractions, tense relationships took place with local people.

Finally in 1997, after years of governmental mismanagement, crucial decisions were made. UNESCO and all the actors of the Galapagos’ political life decided to create several laws to calm down tensions on the archipelago. They gave priority to the preservation of the ecological system and the biodiversity. The sustainable development on the islands has been one of the most important points of the law. Rising the standard of living for local inhabitants has been implemented. Integrated management’s resources have been created to help people.

The main goal of this driving change and law was set up to favour a peaceful climate on the Galapagos Islands. We know that a good political situation is essential for the tourism industry. Locals and tourists have to progress a great deal together. In the same environment, they have to live together and change their mind. That’s the real impact of tourism in The Galapagos Island.

The development of tourism in the Galapagos Islands has caused numerous changes both on the economic and on the environmental point of view. Over the years, the impact of tourism has become increasingly one of the main preoccupations on the future of the archipelago. The popularity of the Galapagos Islands attracts lots of tourists. However, this massive influx of visitors is presently a threat to the ecosystem because some people don’t have concern for our environment. Therefore, though tourism remains the main economic activity in the archipelago, the implementation of rules was necessary to manage tourism in order to ensure the preservation of the Galapagos Islands.

The Galapagos National Park is the main attraction of the tourists but is submitted to strict rules. Created by the government of the Ecuador in 1959, it aimed to the preservation of wildlife from human influence. Currently, one of the main concerns is the flow of tourists within the islands. In order to reduce the negative impact on the environment, the government has set up a management system in protected areas.

In 1973, the Management Plan of the Galapagos National Park fixed a limited number of tourists to the islands but over the years the number of visitors has increased. Looking at the rise of tourists, that measure wasn’t efficient and so has been reviewed in 1996 focalizing more on the capacity of a site. The capacity is characterised by several parameters such as the time spent in during a visit, the area available, climateaˆ¦

Before their departure to the islands, visitors receive information about the conservation of the islands and are notified of the appropriate behaviour to adopt over there. Once arrived, tourists are strictly controlled; making sure everything is in accordance with regulations.

During the visit, tourists are accompanied by a certified guide. Guides play an important role in park management. They have attributed a small group with a limited number of people (by boat or on the terrestrial visitor sites). Their main role is to ensure no one infringes rules and respects the wildlife. Tourists are required to stay on marked trails and are not allowed to disturb fauna and leaving trash. Guides have to pay attention to it to avoid damages on the environment. Guides have to make the tourists realise the importance of such rules by providing information on programs carried out by the Galapagos National Park in order to respect the environment.

The Management Plan allows tourists to visit only at selected sites in the National Park and at a small capacity. The visit is authorised in small numbers so that the wildlife and the environment are preserved. The conservation of the islands involves all tourists; they must pay high fees before entering in protected areas.

In addition, the Galapagos National Park Service manages the number of people visiting the sites by establishing a specific and “fixed itinerary” for ships which transports 20 customers or more. The control of tourism is done as well on land as on sea. Different standards are monitored: itineraries for visits, naturalist guide’s qualifications, the quota of passengersaˆ¦ All these factors must be conformed to the legislation.

The role of visitors is a key point in the management of tourism. Managing visitors consists in controlling the identity of each one (once arrived on the islands, tourists provide their personal information: age, nationalityaˆ¦). Then, the monitoring is also focused on reports made by the guides about visits (number of tourists, duration of the visit…).

One of the main challenges for park managers would be to regulate the flow of tourists by implementing a monitoring system.

Tourism in the Galapagos Islands must continue to attract visitors in terms of education, personal experience and awareness. However, it has been necessary to put some limits to regulate in an easier way the activities within the islands.

At last, tourism in the islands is considered as Ecotourism. Ecotourism is defined by TIES (The International Ecotourism Society: a non-profit organisation dedicated to promoting ecotourism) as “responsible travel to natural areas that conserves the environment and improves the well-being of local people.” (TIES, 1990)

The Galapagos Islands have been an ecological destination for 30 years. With hindsight, we can see the benefits of ecotourism in two major domains: environment and economy.

First of all, it is clear that people need to work to live, but farming and industry have a high impact on the conservation of the environment. Therefore, Ecotourism has been a way to allow people to work while preserving and protecting the nature. This kind of tourism is educational: it teaches people how to live with and be more aware of the surrounding environmental wealth. As a fact, endangered habitats and biodiversity are conserved because both tourists and local people understand the importance of their impact on the environment. The Ecotourism has permitted tourism to continue and progress in the Galapagos Islands, even if its biodiversity is very protected, thanks to a very strict conservation policy, rules and controls. The low-impact tourism developed in the Galapagos has benefited the islands. As a matter of fact, Ecotourism provides financial motivations that encourage local people to protect the environment and work for it.

On an economic point of view, Ecotourism has contributed to raising the quality of life of the natives. It enabled that money spent by tourists (around $1000 per tourist for 2 weeks, so much more than a recreational tourist) goes directly to the locals and not to international companies. This money is reinvested to both increase the standards of living and to finance the Galapagos National Park, in the way to conserve the biodiversity. Generally, in poor countries, the primary resources permit to survive (water, minerals, trees) but Ecotourism in the Galapagos Islands has provided an alternative source of incomes. Indeed, tourism expenses encourage local people to seek for a sustainable job: guide, cleaner, waiter, security, boat owner. Finally, the employment generated by the Ecotourism ensures that fewer people leave for cities.

To sum up, the Galapagos Islands example shows that Ecotourism requires a very well balance between economy and environment.

There is a real correlation between conservation and development in the Galapagos Islands. As a matter of fact, tourism has a significant impact on the environment, because of the entire town planning it needs, the pollution, the noise, and the constant increase in the number of tourists. To manage this, many rules have been settled to restrict that. Ecotourism was the best way to reduce the environment damages caused by the tourism while keeping an important source of revenue. However, Ecotourism should not become an important economic industry. If so, it will not be called “Ecotourism” any longer.

The history of Hard Rock Cafe headquartered in Orlando, Florida began from July 14, 1971 by the appearance of a modest cafe in London, England. Hard Rock Cafe’s founders are Isaac Tigrett and Peter Morton, two enterprising and music-loving Americans. And, 1982 is the time for HR’s expansion when 2 owners decided to develop their own HRC in many different places. After some transitions and acquisitions, HR International now belongs to the Seminole Tribe of Florida with over 171 venues in more than 52 countries around the world, including 134 cafes and 15 Hotels/Casinos, live music venues, and a huge annual Rockfest concert.

Differing from other corporations, HRC’s awareness of the brand appeared at start-up and throughout the development process. Hard Rock Cafe model is typical of the method of construction products by topic – a brand new marketing tool. Hard Rock Cafe is a mixture of experience, style, entertainment factor, sharing awareness and ultimately memories storage. This is the key factor leading HRC’s present success.

With rock ‘n roll sensibility – A HR birthright- demonstrated by USD million valued collections of memorabilia, service philosophy “Love All – Serve All” and operations under the banner ‘Save The Planet, Hard Rock Cafe – the core of HR International entertainment and leisure company- will definitely continue to successfully expand the Hard Rock Brand. Kuala Lumpur (Malaysia) and Ho Chi Minh City (Vietnam) are considered exotic and far-flung locales of HR system. In 2011, Hanoi (Vietnam) is one of eight venues of HRC coming into being.

I. THE OPERATIONS MANAGEMENT STRATEGY OF HRC

From a modest cafe in London, HRC now occupies over 171 locations in 52 countries. This success has been achieved by changing from a “themed” restaurant into one participating in what is now called the “Experience Economy”.

Working in service industry, HRC’s products are services and they are intangible.

OM always plays an important part in service area. HRC understands this and uses OM effectively to get access to their target – serve guests with unique experiences at each as well as every cafe. This is found through its mission of “To spread the spirit of Rock ‘n’ Roll by delivering an exceptional entertainment and dining experience. We are committed to being an important, contributing member of our community and offering the Hard Rock family a fun, healthy, and nurturing work environment while ensuring our long-term success”.

In service industry, strategy is basically OM strategy.HRC uses “Multi-Domestic” strategy when using its (US) domestic model globally, and using franchising operations when it makes sense to do so. (Half company, half franchise). This may includes using the use of joint ventures or subsidiaries. Franchises are used when it is decided “that local ownership will bring a unique capability, or local conditions suggest there will be an unusual or difficult implementation”. In order to access the competitive advantage (Strategic Differentiation, Low Cost, and Response). Although HRC has no normal competitors, a lot of its rivals are from experience that tourists can experience. HRC selectively applies 10 OM decisions, contributing to remarkable achievements. This results in 92% name recognistion all over the world, putting HR in the top 10 of all restaurants.

1. Product and Service Design

With the philosophy ” Love all – serve all”, HRC provide guests with experience, not meals simply. Here, the chefs modify menu from classic American – burger & chicken wings- to include higher-end items (stuffed veal chops, lobster tails). They also analyse and test the meals as well as review the menus to make sure the food is well qualified and delicious enough to serve their guests. Because HRC orients to differentiation for making competitive advantage, the menus as well as food is usually changed. Also, HR is adding a new emphasis on live music & redesigning its restaurants to accommodate the changing tastes.

2. Quality

Differing from product, service’s quality is affected by many subjective standards. It is not easy to set up a general level of quality. This requires a serious effort to get a success. With a chain of over 171 locations in 52 countries, HRC has nowadays retained many brands. HRC realises the importance of total quality; therefore, each staff or each meal is strongly focused. The staff must be well qualified. They also make research on food, taste or suppliers. Many surveys about quality have been regularly done based on the feedback or comment sheet from guests. They aim at the most perfect quality by using the scorecard of a one to seven scale. If the scores are not a seven, this means a failure. They are happy to receive the comments from guests, even the complaints by which they can improve the services. That is the reason of the slogan “We’re going to reap the benefits of the efforts that we put into it, so in the end, the love you take is equal to the love you make”.

3. Process and capacity design:

Because “Customer may be directly involved in process design and Capacity must match demand” (service with 10 OM decisions – Heizer & Render), HRC puts guests at the heart of operations and staffs always try their best to satisfy guests. Scheduling the large staff of bartenders, cooks and waiters, waiteresses is done based off of tracking sales. The schedule can be modified for being suitable with job character, seasonality and guests’convenience for the purpose of efficiency. Everyday, HRC serves about 100,000 meals with appetizers, salad, sandwich, sides, burger, entries and desserts.

4. Location selection:

In service industry, location must be near customers. That is why HRC chooses the best venue at the center of each city to locate. Location is a key factor in service business. It is the prerequisite condition making or breaking business strategy. At HRC, location is considered one of the most essential OM decisions done by Oliver Munday – HR’s vice President for cafe development. Before opening a new HRC, Mr. Oliver Munday travels a world to pick up a country for HR’s next cafe, select a city, and find the ideal site and then negotiates the deal. After that, he works with architects and planners and stays with the project through the opening and first year’s sales. Usually, Mr. Oliver Munday looks at several factors with a global view when considering a location. Some of them are: political risk, currency risk, social norms, brand fit, social costs, business practices. And, an extensive research checklist is applied. They pay attention and make a trend analysis of Demographics, Visitor Market,Transportation, Restaurants and Nightclubs ( a selection in key target market areas), Political Risk, Real Estate Market and Hard Rock Cafe Comparable Market Analysis. Depending on the result, HRC will finalise the business model, joint-ventures, subsidiaries or franchise on the way to set up a unique base.

With 75% guests are tourists, most of HRC are located in central areas having congregated nightlife. The location decision is at least a 10-15 year commitment. Also, Break-Even Analysis is used to help decide whether to build the purchased land, or to remodel an existing facility. Currently, Munday is heavily looking into global expansion in Europe, Latin America, and Asia. As estimated, there are 8 HRC that are coming into being in 2011, including Hanoi, Vietnam, helping to increase the total revenues to nearly 180.

5. Layout design:

In service industry, layout is another important element, contributing to improving product & production. After locating, depending on reality, HRC will decide the layout design. Sometimes, they purchase the land to the venue. Sometimes, they just remodel on the base of rent land. HRC takes a great deal of time for this work from exterior to interior. The outline must be attractive while decoration is at the aim of drawing the attention of guests. The bar, furniture, lighting system, sound and circulation are at the guests’ comfort. Meanwhile, the working station as well as kitchen, food area makes staff easy to operate and serve guests at soonest. Moreover, retail shop together with memorabilia creates a deep impression by a unique way that can not be found anywhere else. All of them bring the guests a special atmosphere of living in Rock’n’Roll world.

6. Human resources and job design:

Being aware of the role of human resource which is critical in service, especially in experience economy, HRC is always careful of recruitment as well as training. Applicants to HRC have to meet the criteria of appearance, positiveness in attitude, high self-motivation and interest in serving and sharing experience. In addition, they are required to be skilled at work and passionate about music as well. Being a staff here, everybody passes Rock 101 – a 2-day training course for basic service skills and with a rock’n’roll spirit. Job-oriented interactive CDs covering kitchen, retail & front-of-the-house service is the content of HRC’s training programme. HRC tends to the strategy “building a culture allowing for acceptance of substantial diversity and individuality”, there is no discrimination at HRC. The promotion and employee policy are also strongly focused and equal to all staffs. With value system “to bring a fun, healthy, nuturing environment into the HRC culture”, the staff is the element conveying the rock’n’roll soul, making atmosphere alive and bringing exceptional experience to the guests. That is the reason why HRC is said to have the competitive advantade through its human resources.

Besides those decisions above, HRC also pay attention to supply-chain, Inventory, scheduling and maintenance management. In order to have food served with freshness and high quality, HRC chooses the qualified suppliers and regularly work with them. At HRC, they set a schedule relying on business sales, revenue, events, seasonality, sales forecast and business trend analysis…to make sure they are always at service. The most important inventory management is for memorabilia collections valueing over US$ 40 million with more than sixty thousand pieces decorated at all HRC. No matter what the large number of memorabilia, HRC effectively manage from a distance. They know well the name of every memorabilia, how many of them at each HRC and where to put. The maintenance of memorabilia is done at Orlando every 5-7 years; hence, their valuable and largest Rock’n’Roll collection is in good condition all the time.

In addition to OM decisions applied, HRC global strategy can be successful thanks to good forecasting. Hard Rock doesn’t limit its use of forecasting tools to sales. Depending on the application, Hard Rock makes long-range, intermediate-term or short-term sales forecasts conducted each month, by cafe, and then aggregated for a headquarters view. The daily forecast is further broken into hourly sales. The point-of-sale system (POS) is at the centre of the sales forecasting system. Computerized scheduling software is used and then they compare the actual sales to forecast to calculate the variances, find out the reason for improving. A 3-year weighted moving average is applied to cafe sales, multiple regression is found in Hard Rock’s menu planningaˆ¦Effective forecasting helps HRC be at good service, contributing to its successful Operations Management.

In brief, selective application of 10 OM decisions with forecasting brings HRC with a competitive advantage, differentiating HRC from other cafes. This puts HRC firmly in the service industry, especially in experience economy which is so attractive but with a variety of difficulties and challenges as well.

II. THE OPERATIONS MANAGEMENTS CHALLENGES AND OPPORTUNITIES FOR HARD ROCK WHEN CONSIDERING AN EXPANSION OF ITS BUSINESS INTO HANOI

Continuing with the success in expansion, HRC first appeared in Vietnam in 2009 by franchise done by Viet Thai International. That is HRC located in Kumho Plaza, right at the heart of Saigon, the biggest and crowded city of Vietnam. After over one year of operation in Saigon, Vietnam HRC step by step gained some success with remaining musical sensibility demonstrated through Rock’n’Roll and valuable memorabilia collection. At the moment, there are a variety of bars, restaurants, cafes and even hotels in this city; nevertheless, HRC is still considered highlight. Of course, the subjects of HRC is not massive, but selective. Their guests are basically hi-end, rich, sophisticated and with high musical taste or foreigners, tourists. They come to HRC not for a drink or a meal only but for a mixture of experience, style, entertainment factor, sharing awareness and ultimately memories storage.. On the way to development, one more HRC is being estimated to come into being in Hanoi – capital of Vietnam. It is no doubt that HRC will face many challenges.

Hanoi is the Vietnam second largest in population (6.5 million people) with imbalance between urban and rural, urban and suburban. Hanoians are not so -going, and open-minded as the southern people . They live traditionally and somewhat strict, conservative in accepting anything new or strange. This is the obstacle to HRC with experience way which seems still new to Vietnam. Besides, there are a lot of hotels, bar, restaurants, entertainment centers, shpping mallsaˆ¦, even modern venues invested by foreigners that are regarded as competitors of HRC in experience economy. The limit of Hanoi is at the lack of aiport. Until now, Noi Bai is the only one airport and very far from Hanoi’s center (40 kilometres), the roads are not bad but not well synchronised yet, making some obstacles to transportation. A variety of restaurants, bar, nightclubs are existing and working in this city, which are competitors sharing the market in experience industry. The competition is more and more intense. About the Real Estate Market, it shows a bad fluctuation with unreasonably high price. Hanoi’s land is grouped into highest market in the world, bringing the difficulty in investment. Also, the aftereffect of global crisis leading the decrease in hi-end people, including tourists with high affordability. According to official staticstic, in 2010, the number of hi-end tourists coming to VN downs around 15-20 %. Some foreign offices temporarily close or reduce staff. The local people tend to cut the bugdet for entertainment. Therefore, a luxury environment like HRC will be much damaged in quantity, to some extent.

However, it is apparent to access many opportunity for HRC when deciding to expand into Hanoi.

The first opportunity is the demographics. The population of Hanoi is big at 6.5 million, the number of people with high affordability are younger and younger. They will be easy at receiving the new features like an experience. A number of Hanoians seriously and like to take the form of a space so luxurious and unique can be a choice to express status, their level. Hanoi is the capital, the fix number of foreigners ling and working here is great. Many restaurants, hotels, bars, convention centersaˆ¦that are well qualified to serve a number of passengers. Embassies, foreign companies, NGOsaˆ¦are majorly located here. And the big number of tourists and businessmen come here. And, many events, MICE activities are firstly chosen to organised here. With 75% of HRC is tourists as statistic, Hanoi is at this advantage. Also, the economic indicators are not too bad, even during the economic downturn, promising a benefit for HRC when living standard is enhanced and more guests coming to this cafe.

The next opportunity is created by the differentiation strategy. Although there are a big number of hotels, restaurants, bar, shopping malls or entertainmnet centers, nothing is prominent and highlighted. HRC with the unique features by chain tradition will actually attract customers.

In addition, the transportation in Hanoi is more and more improved. Hanoi is the hub of northern region, the link of cities, provinces in North. Except from the lack of synchronisation in roads and a bigger airport with bigger capacity, the transportation system is relatively good. Noi Bai – an international aiport with a history of 33 years and a capacity of 10 million passengers per year with many airlines (VNA, China Airline, Singapore Airlines, Jetstaraˆ¦) and direct flights to abroad. Hanoi also has famous river right at the middle of city and a railway station that is not far from the center. These are conveniences!

Hanoi also brings HRC another opportunity of safety. Vietnam is considered one of 10 safe destinations. Everyone can be sure about the political risk in our country. A stable and unified political regime together with a high security can definitely bring the bright prospective of business.

Hanoi with high living standard, a great number of local people are able to highly afford, having high requirements in musical taste and quality. Here is the cradle of rock with a large number of fans. As a result, HRC with Rock’n’Roll sensibility can fully meet their needs and favourite.

Moreover, HRC first came to Vietnam by Franchised done by Viet Thai International in 2009. Viet Thai International is a successful corporation in Highlands cafe chain. It is evident that HRC can continue experience in doing operations in cafe in particular and in experience industry in general.

HRC has been having strong brand and reputation.

In brief, with a lot of opportunities analysed above, it is clear that HRC makes a decision of expansion to Hanoi is reasonable. And, it is no doubt that HRC will continue their success if they remain faithful to system’s spirit – The Rock’n’Roll sensibility so that guests come here not for just a meal or a drink, but a mixture of experience, style, entertainment factor, sharing awareness and ultimately memories storage. This is the feeling that can not be found anywhere except HRC chain, until now.

=> Choose central district (Hoan Kiem) at Vincom Plaza

Genting Malaysia Berhad was once known as Resort World Sdn Bhd, which was a share limited private company, incorporated under the Companies Act 1980, on 7 May 1980. The name was changed into Resort World Bhd from 1989 – 2009, being a public company and lastly known as Genting Malaysia Berhad. In 1989, Genting Malaysia had become an entire gaming, hotel and resort-related operations company. Shares of Genting Malaysia have been listed on Bursa Malaysia since 22 December 1989. Genting Malaysia has involved in leisure services and hospitality business field for over 45 years, such as theme parks, gaming, hotels, seaside resorts and entertainment. It has a loyalty card programmed named “Genting World Card” which contains over 3.3 million members alone in its Malaysia’s operations.

The top business in the company is Resorts World Genting. It is a great place for family leisure and entertainment resort. It was situated at the top of Genting Highland and having around 19 millions of visitors annually for the past five years. The resort there has six hotels which are Highlands Hotel, Resort Hotel, Theme Park Hotel, Maxims Genting, Genting Hotel and First World Hotel. There 10,000 over rooms prepared for the visitors time by time. Theme parks (including outdoors and indoors), dining restaurant, mega shows and many more entertainment are all ready at one location.

Genting Highlands Resort was voted the World’s Leading Casino Resort at the year 2005, 2007 and 2008 and Asia’s Leading Casino Resort from 2005 to 2008 by World Travel Awards. Located close to Resorts World Genting, the operating business of Awana Genting Highlands Golf & Country Resort too owned by Genting Malaysia. It has two chains named Awana Kijal Golf, Beach & Spa Resort and Awana Porto Malai located at Terengganu and Langkawi subsequently, which are both two beautiful seaside. First World Hotel has won the world’s largest hotel with 6,118 rooms as recorded in the Guinness World Records and Ripley’s Believe It or Not. Genting Malaysia did an equity investment on the Star Cruises Limited (the leading cruise operator of Asia Pacific) by 19.3%.

Organizational Chart

Genting Malaysia Berhad is a profitable organization. It’s common purpose as others companies is to unifying its people and forces. It coordinated their workers to work together for a common purpose – to give the best services and entertainment to customer as possible. With the organization division of labor function, it leads to greater efficiency in their workers performance in different categories and fields. Furthermore, an organization chart shows the hierarchy of authority through the chain of command (from the command from the board of authorities to the presidents and lastly to the workers). Genting Malaysia Berhad is accessing the wide span of control as shown on the chart above; every department was under the control of a chairman/chief executive- Tan Sri Lim Kok Thay. Next, this company has fallen on the functional structure. The workers are all grouped under the categories of similar work specialties to ease the management of the whole organization’s operation. Every department has their own specialized professionals in order to carry out the task given. On the same time, Genting Malaysia Berhad is a mechanistic organization. Its authority is centralized and employees are closely supervised in carrying out every specific job. For examples, reports are needed for any operations carried out. With the centralized hierarchy of authority, any instruction given by the chairman needed to be followed. True too that there’s a lot of rules and procedures set by the company to obtained disciplined workers. For instance, letter must be written for requesting a lift and workers are needed to give reasons for why are they late and hand in a formal letter after that. Specialized task is a must for every department in order to run the organization smoothly. In the other side, it would be something special that in a mechanistic company, it has a wide span of control and flatter structures. Genting Malaysia Berhad undergoes differentiation as the organization are somehow operating under their own functions and do not need to work together to achieve the same purpose. It has a large organizational size as there are approximately 19,000 of full-time employees working under their organization.

Chairman & Chief Executive
Tan Sri Lim Kok Thay
Deputy Chairman of the Board
Tun Mohammad Hanif bin Omar
Director
Tan Sri Alwi Jantan
Director
Mr. Quah Chek Tin
Director
Teo Eng Siong
Director
Tan Sri mohd Zahidi bin Hj Zainuddin
Director
Tan Sri Clifford Francis Herbert

Senior Vice President- eService & Rick Management

Mr. Thomas Ng Seng Siew

Senior Vice President- Human Resources

Mr Eddie Teh Yong Teng

Chief Financial Officer

Ms. Koh Poh Yong

Executive Vice President – Resorts Operations

Dato’ Kevin Sim Kia Ju

President & Chief Operating Officer

Dato’ Lee Choong Yan
Senior Vice President – Finance & Corporate Affairs
Mr. James Koh Chuan Seng
Senior vice President – Hotel Operations
Mr. Edward Arthur Holloway
Senior Vice President- Casino & Security Operations
Mr. Lim Eng Ming
Senior Vice President- Public Relationship & Communications
Dato’ Anthony Yeo Keat Seong
Senior Vice President- Casino Operations-
Mr. Aaron Chia Khong Chid
Senior Vice President- Casino Marketing
Mr Leow Beng Hooi
Planning and Strategic Management
Basic Strategies used to respond to uncertainty

The Genting Group was found in 1965 by Malaysian entrepreneur the late Tan Sri Lim Goh Tong. The group has over 26 years of experience in developing, operating and marketing casinos and integrated resorts in different parts of the world. This company is using prospector strategies to do their business.

Genting group has more than 26 years of experience in developing, operating and marketing casinos and integrated resorts in different parts of the world, It also includes the Americas, Australia, Malaysia, the Philippines, Singapore and United Kingdom. Genting Highland is the only one legal casino in Malaysia. It has been voted Malaysia’s leading corporation and one of Asia’s best managed multinationals. The group’s integrated resort is Resorts World Genting, formerly known as Genting Highlands Resort.

Genting Group is respond in prospectors. Although their main activities are casino and theme park but this company try to develop in others part. Genting Group starts to open concert shows, Strawberry Farm, food & beverage and retail shopping in Genting highlands Resort. It is one of the most popular tourist destinations in Malaysia. The Genting Group has since expanded and diversified into other activities including plantations, properties, power generation, oil and gas, e-commerce, information technology and biotechnology. This company brave in trying new things and will not let its product stop on a point.

Genting Highland Resort is under Genting Group, it always show the prosperity of Malaysia during public holidays. To be a successful company, Genting Group must find an efficient and effective strategies to run a its own company .The Genting Group are responding in prospectors as their company basic strategies. It means that Genting Group will bring more services to customers and do the best in future.

Establish Vision and Mission
Mission

The purpose of Genting Group are :

1. Always care in changing demands of their customers and excel in providing quality products and services to satisfy customers wants.

2. Promise to innovation and the utilization of new technology to achieve competitive advantage.

3. Be responsible in generate a rational return to their shareholders.

4. Emphasize in personnel policies which recognize and reward performance to make them better. Encourage contributions of employees and provide proper training, development and opportunities for career advancement.

5. Be a responsible corporate citizen, always increasing corporate governance and transparency.

Vision

The Genting Group wish to be the leading multinational corporation committed to increase value of shareholders and keep maintaining long-term sustainable growth in their core businesses.

SWOT ANALYSIS

Strengths

In 1997, Genting Highlands resort has launched a Skyway cable car which was further boosted its facility attraction. The Genting Skyway acquired the “World’s Fastest Mono Cable Car System” with a speed at most 21.6km per hour and the “Longest Cable Car in Malaysia and Southeast Asia”. In fact, a lot of transportation is available, such as rental car, taxis, express bus, limousine coaches, shuttle services, or charter helicopter.

Genting Highlands Resort possesses five hotels, namely Genting Hotel, Highlands Hotel, Resort Hotel, Theme Park Hotel and First World Hotel and two apartment blocks, Ria and Kayangan Apartment at the hilltop and Awana Genting Highlands Golf and Country Resort. All these hotels are offer comfortable housing and delicious cooking. Besides, large shopping malls are there for the visitors to grab anything that they wish for.

Today, Genting Berhad is a multinational corporation in Malaysia that has been recognized by various organizations for its typical leadership and management. Besides, Genting Berhad was acknowledged as the No.1 Leading Company Street Journal 200(formerly Far Eastern Economic Review 200). Genting Berhad was also rated No.1 in Malaysia and No.2 in Asia for Overall Best Managed Company for the Decade by Asia money and No.5 in Best Corporate Social Responsibility.

Furthermore, Genting is a good choice for a stroller family and children because of the present of outdoor theme park and indoor. The theme parks offer unique experience of snow villages and haunted adventures that can satisfy every pleasure seeker. Foe the cyber addict, Genting provides the most up-to-the-minute cyber games in the cyber. In addition, the casino in Genting which is the only legal casino in Malaysia is the most attraction to the adults because all the popular gambling games are provided included Chinese games.

Weaknesses

Next, one of the businesses running in Genting such as casinos can only participated by non-Muslim because it locates in an Islamic country. Therefore they lose a large amount of customer.

Lastly, in order to provide the best goods and services, the equipment of the hotels, and the safety plan to make customer feel convenience, their cost to run out these services is large.

Opportunities

Geographically, Genting Berhad located in a peak of Titiwangsa Mountain, with an altitude of 2000 meters above sea level. Genting is surrounded by a flourishing green forest in its valley, the characteristic feature of equatorial region. The distinguishing feature of Genting is the soothing temperature which in between 16 to 23 degree. The climate is usually refreshing and cold, habitually cloudy and misty; therefore it provides a natural feel of air conditioning. In addition, the scenery from the peak offers an unforgettable experience of enchantment. These virtues attract the native crowd which offer them peacefulness that lack in the dusty city. These benefits will attract the tourist and foreigners come over and increase their revenue.

Besides, Genting locates within Titiwangsa Mountains and between states of Selangor and Pahang of Malaysia that is accessible by car. For example, we have to spend an hour to reach there from Kuala Lumpur. Alternatively, we can choose the cable car called Genting Skyway (3.38 km) which is used to be the fastest in the world and South East Asia’s longest gondola lift. It is leads to the population growth in Pahang increased from 1288376 to 1534800 since year 2000.

Threats

Firstly, Genting have to face the risk of landslide because its company located at the hilltop. For example, theme park and casino are running at the hill. Due to the Genting’s location, government has no budget to build them an electrical source and water. So, the company has to make it by themselves.

Besides, gambling is a high profit business. So, a lot of competitors of Genting Company, for example China and Singapore want to open a legal gambling as well as the hotel for the gamblers to attract them. If the scenario is as mentioned, the profit which is originally can earn by Genting Berhad around the South Asia, now has to divide into several parts.

The Casino de Genting is a support for the Malaysia government and it is also a threat. Genting supported government partaking in the casino industry is restricted, it will be a chance for them to divert investments in other Asian country with more open gambling laws such as the Philippines is a good location to choose. So, Genting Berhad will lose the opportunities from government. Hence, the revenue of Genting might be decline.

Besides, the price and services that charge to the customers is higher than normal company because of the company located at the hill. The cost to run out the goods and services at the hill is also high.

Grand strategy

The grand strategy used by Genting Berhad is growth strategy. It helps them to become one of the largest conglomerate companies in Malaysia. It provides detailed information about Genting’s first few years, and the effects of the company’s founder Tan Sri Lim Goh Tong entrepreneurship and leadership. Since then explore how Genting extended to a variety of related and non-related business, as a strategy to expand its business operations in the domestic and international markets. It also details the growth strategy by the industry in each entry.

Moreover, The Genting Berhad is a major player in Asia, but the owner of the $ 5.5 billion Resorts World Sentosa in Singapore is seeking global growth with key investments in the U.S. Genting recently paid $236 million for nearly 14 acres on the Miami waterfront. There are nearly 30 years of casino experience in hotel management, industry veteran, has joined Genting Singapore in 2010 to set up the casino’s marketing team, in its flagship property, Resorts World Sentosa – the city-state licensed casinos.

On the other hand, Genting Berhad is eyeing casino opportunities in the highly regulated Japan or South Korea after building up a war chest of more than RM13bil to fund its expansion programme. RM13.2bil of Genting Bhd’s cash and cash equivalents on December 31, 2011 (fiscal 2011) RM11.9bil bank balances and deposits, money market instruments, while the remaining RM1.3bil. It can also produce more cash flow each year more than RM500mil. The Group has considerable stash funds to finance its expansion plans, but obviously, this is not complacent to rest on their laurels, it has just announced plans second problem in Singapore permanent securities, in order to raise more funds.

In conclusion, by using the growth strategy, Genting Berhad able to produce high quality products, good performance and provide the best service to customers.

Competitive strategies

The competitive strategy used by Genting Berhad is differentiation strategy. This competitive strategy is to offer products or services that are unique and directed to customers who are price insensitive.Genting Berhad is well-known and has wide market.Genting Behad has a large target.

Five Peak Resort – Hotel, Genting Hotel, Highlands Hotel, Resort Hotel, Theme Park Hotel, First World Hotel in 2004, compared to the overall average of 84% occupancy rate and average room rate of RM89, 77% and RM78 respectively 2003years. During the year, the Group continues to enhance its products and facilities, in order to attract new and repeat resort visitors. Genting Hotel, two floors were converted to the motto of the club was originally called the elite club. This “hotel within a hotel” concept features two villa suites, 50 suites, 11 executive suites and 39 executive suites, business center upgrades, private VIP check lounge and a unique dining and entertainment facilities . These contemporary designed private suites offer luxurious amenities and state-of-the-art in-room facilities as well as personalized butler service, designed to premium guests and business travelers.

The geographical reach of the Internet enables distant competitors such as what Singapore and China want to do, where they want to open a gambling area for gamblers as well as the hotel to bring competition into the local market, or even an indirect competitor to compete more directly with Genting Company. However, Genting Highland is under individual land, so it doesn’t have any problems since it is a monopoly type of company.

There have own websites and other IT facilities, such as hotels, gambling machines, Genting World Co., Ltd. to expand its products and services, and to provide new products, to provide a differentiated product, depending on the target market. For example, the First World Hotel is a high-end market of the mid-market customers, Genting Highlands Resort. Through its Web site, customers can choose what is the best product to suit their taste and budget.

Genting World Card members can get more loyal members and reward them with valuable advice and privileges as long as the use of the card any the Genting products and services.

In conclusion, Genting is using differentiation competitive strategy in their business. By using this strategy, they can keep improving their service and get the competitive advantage in future.

Recommendation
Recommendations on utilizing the strengths of Genting Malaysia Berhad

For strength, Genting Company should enhance the security measures in their transportation facilities. As people know, Genting is very well-known with Skyway cable car which is known as the “Longest Cable Car in Malaysia and Southeast Asia” .But however, some people will insist to drive there rather than utilizing the cable car. This because people will assume that the Skyway cable car is not really safe as the security measures are not strong enough to support their weight .Hence, people will choose not to utilize the facility.

For the second strength, Genting Company possesses many hotels to attract customers. Besides comfortable housing and delicious food, Genting Company should build in more entertainment corners for their customers. For example: gym room for customers to work out meanwhile to release stress, coffee room to give customer a small corner to relax and interact with each other, spa that allows customers to enjoy and release themselves, swimming pool and so on. All these facilities will definitely attract more customers to come over.

In addition, Genting should use their names of becoming the 1st Leading Company Street Journal 200(formerly Far Eastern Economic Review 200) to become the 1st company in the world instead of Malaysia. Genting should eventually improve their leadership and management to achieve the goal. For example, Genting Company should give their workers more training and therefore self development of every worker may occur.

The location where Genting Company has now is totally a good strength for their company to attract customers. The flourishing green forest around them and the soothing temperature in Genting is one of the main attractions of Genting. To attract more people for coming to Genting, Genting Company should enhance the great environment that they already had now. Genting Company should emphasize more on the environmental problem so that the environment will always be the one who can attracts customers to Genting.

Moreover, Genting is the best choice where every people can go no matter the young or the old people. For young people, they can enjoy the theme park to the extreme high level while for the elders’ one, they can pay a visit to the casino .The casino is one of the legal casino in Malaysia and hence Genting should eventually upgrade it to attract more customers to come over . As a result, Genting should employ more workers to work in the casino and give them some intensive training to show their professionalism to the customers.

Recommendations on utilizing the opportunities of Genting Malaysia Berhad

The weather in Genting is one of the best opportunities among all the others which eventually attract people to Genting. The cold weather in Genting is rarely found in Malaysia and even other places which are not higher than 26 degree Celsius and not lower than 14 degree Celsius. This perfect weather makes people wanted to pay a visit to Genting for entertainment due to the hot weather in Malaysia or extremely cold weather in other places.

Besides that, the location of Genting also becomes one of the opportunities for Genting. Genting locates within Titiwangsa Mountains and between states of Selangor and Pahang which is not that for from every state so that people from every state are able to come over. Moreover, the location is accessible by car which gives another convenience for people to come over. As a result, people can easily travel to Genting as they want due to the convenience that Genting have.

Recommendation to overcome weaknesses of Genting Malaysia Berhad

As we analyzed, the first weakness of this company is one of the business running in Genting like casino is not suitable for non-Muslims. There is no certain ways to cure this weakness as it is related to religious issue. Meanwhile, Genting can set up more business centre which suits everyone even every religious to replace the loss of customers and income.

Large costs to run out the best goods and services are also one of the weaknesses for Genting. Genting should try to adjust their internal and external expenses to save for other usage. For example, they can find some company to sponsor their costs for certain activities such as live shows and concerts. It can reduce the burden for Genting.

Recommendation to overcome threats of Genting Malaysia Berhad

As stated in the SWOT analysis, the first weakness is the risk of landslide because Genting is located at the hilltop. To overcome this weakness, a retaining wall should be built. A solid, well-designed retaining wall should made by strong and reliable materials. The stability of the wall can increase by the drainage materials behind the wall. Besides that, a diverting debris pathway can also prevent landslide. It can create with the help of retaining wall.

Besides, the next threats are the new entrants from foreign countries such as Singapore and China. To counter this threat, it is crucial to stress out the competitive advantage having by Genting which is the weather and location. For those new entrants, they may not have the unique weather that Genting has. So, the competitive advantage of Genting needs to be stressed that it is a best place to have the theme park excitement and accommodation hotel with the cold weather as its located at the hilltop. Apart from this, Genting seems to have a good and strategic location. This is because it is located almost the middle of Peninsular Malaysia. The important thing is, Genting is a place that would not miss out whenever tourists visit Kuala Lumpur because it is very near.

Lastly, the price and services that charge to the customers is higher than normal company. This may lead to decrease in consumption by customers. In order to overcome this problem, Genting should consider adjusting the fees and charges. They can try to conduct some special activities with lower charges or promotions during holidays or specific festivals to attract customers in order to increase revenue. As a consumer, people will be easier attracted and tend to spend more when these activities with lower prices is conducting. It also purposely will increase company’s profit. Genting should also take note that high prices of goods and services will reduce the demand from customers.

Conclusion

In conclusion, the attraction of Genting Highland is known as the ‘Fun City above the Cloud’ due to the refreshing weather. Genting Group comprises four listed entities such as Genting Malaysia Berhad, Genting Plantations Berhad, Genting Singapore Plc and Genting Hong Kong Limited. According to the latest information, in December 2006, Genting Group won the tender in obtaining one of two Singapore casino licenses to build a resort, called Resorts World Sentosa, which is under Genting Singapore. The project is to create a symbol major tourist attraction for the booming Asian tourism market. In 2007, Genting Plantations try into biotechnology to develop complex genomic processes and naturally occurring processes for alternative energy resources through an equally owned joined venture with “Synthetic Genomics”. In September 2010, Genting New York won a bid to build a racino at Aqueduct Race Track in New York City, this is the first step of a planned expansion in the United States. In June 2011, Genting UK was awarded a casino license for a 55,000 sq-meter mixed-use facility in Birmingham. The development is in partnership with the NEC Group. In Malaysia’s Leading 100 Graduate Employers Award 2011, Genting Malaysia Berhad is one of the Top 10 Leading Employers and also becoming the Winner in Leisure, Travel and Hospitality Sector which is awarded by GTI Media and trendence Institute. In the Malaysia 1000 Awards, Genting Malaysia Berhad has been awarded the Industry Excellence Award – Hotel Sector 2010/2011 by BASIS Publications House Sdn Bhd & Malaysia National News Agency (BERNAMA).

Genting Group is making Malaysia major in offers a wide range of facilities, entertainment, and others. Besides that, Genting Group has almost US$46 billion at 31 May 2011 in combined market capitalization. Genting not only popular in Asian, it also has a lot of product spread all over. Without doubt, Genting is a good image company.

Reference and Appendices

http://www.gentingmalaysia.com/malaysia_workplace.htm

http://www.genting.com/groupprofile/rwb.html

http://www.gentingmalaysia.com/profile.htm

http://www.gentingmalaysia.com/bod.htm

http://www.theofficialboard.com/org-chart/resorts-world

http://nurinabalqis.tripod.com/id14.html

http://essaysforstudent.com/Business/Genting-Group/5284.html

http://www.reportlinker.com/p0794400/Genting-Malaysia-Berhad-Company-Profile-and-SWOT-Analysis.html

http://ebookbrowse.com/genting-berhad-swot-analysis-bac-pdf-d275936981

This chapter assumes a literature review of the conference industry. It begins by establishing the scene of conference through the history and origins of industry, and a reflection about industry structure. Furthermore a review the industry growth is taken into consideration. It follows with a close examination of conference impacts such as economic, environmental, technological, social and cultural, also a consideration on employment generation. Finally, it analysis the future challenges of the conference industry.

2.2 The history and origins of Conference Industry

Conference has been existed for a long time as there have been people, the meeting has been happening. Researches and investigations of ancient cultures, archaeologists have found evidences of primitive ruins that has been used by people to meet and to discuss interests, or either celebrations (Spiller, 2002 p. 3).

A launch event of contemporary conference was held from June 1814 to September 1814, called Congress the Vienna. The purpose of Congress de Vienna was to establish the territorial divisions of Europe at the end of the Napoleonic Wars, and representatives included all of the major world powers of the day (Rogers, 2008; Davidson and Cope, 2003). Industrialisation spread throughout the Western Europe and America during the late nineteenth and early twentieth. The development of industry and commerce increases the need of meeting between businesspeople and professionals, aimed to discuss and exchange ideas (Spiller, 2002 p. 5-6).

The origin of the conference industry is very recent, hardly 50 years of age in North America and Europe, in addition in the most rest of the world still very younger. However, conference and meetings of people have happened since early days of civilisation progress (Rogers, 2003). Nowadays, conference sector is believed to be one of the most lucrative and attractive sector of tourism industry, despite partly to the high economic benefits for the hosting community (Crouch and Louviere, 2004). The conference sector of the business industry is valued in a hundreds of billions of pounds per year on a global scale (Rogers, 2003).

Since earlier 60’s, conference sector has been supported by investments received in the whole infrastructure, helping to a steadily growth during the 90’s, which was a decade with one of the highest sustained investments recorded. Even if the industry is maturing fast, due to its vigorous, a lack of some necessary description needs to be more established, such as appropriate training and education structure, and well-defined terminology. The conference industry has to address these weakness to claim a deserve position (Rogers, 2003).

2.3 The Suppliers

In response to an extensive and diverse demand for meetings and conferences of all kinds, suppliers have to offer a wide variety of services, facilities and infrastructures to attend the great variety of events (Davidson and Cope, 2003). These have augmented in diversity and quantity, at the same speed the industry has grown over the past 50 years (Rogers, 2003). However, quite few of these suppliers are committed to the conference industry only (Rogers, 2003; Leask and Spiller, 2002). Rogers (2003) has separated the industry’s supply into three leading type of venue as subsequent.

2.3.1 The Venues

Venues are the places where business tourism events take place, in theory almost any type of building could be promoted as a conference venue (Swarbrooke and Horner, 2001). Additionally in Britain there are over 3500 venues supported as suitable for meetings and conferences (Rogers 2008).

However, according to Leask and Spiller (2002), for venues develop an input of the conference industry, they should have certain characteristics, such as offers a purpose-built facilities that present multiple usages, flexibility in their design and having suitable lighting system and breakout space. Nevertheless, Rogers, 1998 and Leask and Spiller, 2002 emphasis that many venues such as hotels, academic venue and unusual venues do not focus on the conference segment entirely. The figure below represents an analysis of the different types of conference venues in the UK.

Figure 2.1 Analysis of the UK’s conference venues and type

Source: Adapted from British Association of Conference Destinations (BACD) in Rogers, 2008.

2.3.1.1 Hotels

Despite the increase of many different forms of venue, hotels are predominantly vital to the corporate market sector, creating around two-thirds of all conference venues (Rogers, 2003; Davidson and Cope, 2003). The advantages of holding an event in a hotel are that guests can easily walk to the meeting rooms, which costs for transportation can be avoided (Allen, 2000). A vast range of hotels can both offer accommodation and quite a few conference and meeting-style facilities (McCabe et al., 2000). Rogers (2003) come across that hotel represents two third of all conference venues, being mainly significant to the corporate market sector and the main types of hotel active in the conference market are showed in the table below.

Table 2.1 Main types of hotel active in the conference market
Hotel
Characteristics
Central business district hotels

A hotel located in the central business district of the town tends to be business-oriented, provides quality conference and meeting facilities and capable to handle corporate business. Additionally, hotels located close to large conference centres are also able to provide delegate accommodation whilst major conferences are hold. For several companies, the central location of venues is very attractive, as they comprise an effortlessly access to business offices, restaurants and entertainment.

Resort hotels

These types of hotels are liable to be popular for the reason that they are situated in advantageous locations with both recreational and sporting facilities in close proximity, therefore to provide an opportunity for delegates to include extra pre-and- post conference activities. In many resort hotels, the conference sector recompense the seasonality of the leisure tourism, and is acknowledged as a high-spend and high-yield business.

Airport hotels

Airport hotels have the prospective contribution of an additional time-saving advantage, were originally most has been built to lodge clients staying for a night, who those having a stop before, after, or in between flights. However, many companies are increasingly use them as a cost-effective way of provide a meeting for delegates travelling from between state. Also airport hotels are growing in popularity for the reason that many people are using low-cost airlines. Despite from the benefits of competitive price, convenience, and location they also provide excellent choices of meetings and conference rooms and supporting business services.

Source: Adapted from McCabe et al., 2000; Rogers, 2008; Davidson, 1994; Lawson, 2000; Gosling, 2003.

2.3.1.3 Purpose-built conference centres

Purpose-built conference centres can be residential and non-residential, usually provides designed areas to host meetings and conferences of large numbers of people, sometimes including an exhibition. In additionally, they normally provide halls with appropriate infrastructure to hold exhibitions and trade shows, some large rooms for plenary sessions, variety of meeting rooms, breakout areas, banqueting facilities, a business centre, offices and administration space. They also provide catering facilities simultaneously with a trained professional meetings and conference team to hold the event (McCabe et al., 2000; Davidson and Cope, 2003).

Furthermore, it is argued that the future for purpose conference venues is bright (Whitfield 2007; Lau et al., 2005; Litvin, 2003), in addition, a conference venue plays an important responsibility in recovering the destination’s economy as well as recuperating its neglected areas (Lawson, 2000; Laslo and Judd, 2004; McNeill and Evans, 2004; Clark, 2004; Fenich, 1992).

It become visible the reason why many destinations around the world are investing in the expansion or development of their convention facilities (Laslo and Judd, 2004), and it is identify that the conference industry offers a variety of opportunities at all possible levels, national, as well as organisational or individual (Getz 2005).

2.3.1.4 Academic and civic venues

An increase number of academic venues, such as universities, colleges and public schools, which are investing in the construction of quality conference facilities and accommodations, are available throughout the year during the students holiday, (Walker, 2004; Rogers, 2008). Although Rogers (2008) complete saying that many of those accommodations are equivalent to considerable 3-star hotel standards.

As can be seen in McCabe et al. (2000) the cost of accommodation in academics venues are liable to be inferior than in hotels, and consequently they tend to be mostly attractive to some non-profit organisations and associations that have limited budgets. In many places civic venues include council chambers and committee rooms, town halls and other civic facilities are also available for external hire (Rogers, 2003).

In UK, academic venues particularly universities are playing a considerable responsibility in both responding and stimulating to the growth of the conference and meetings market, despite the fact that earning income for educational establishments (Davidson and Cope, 2003).

2.3.1.5 Unusual venues

Unusual venues have been characterized as involving an ample range of facilities that are used for conference and meetings, including art galleries, museums, historical houses (Leask and Hood, 2000 in Davidson and Cope, 2003). In additional, cultural and entertainment venues, such as theatres, sporting venues, television studios; tourist attractions, such as historical sites, theme parks, castles and heritage centres as well as transport venues, including cruise ships, ferries, steam trains and canal barges can also be included as an unusual venue (Rogers, 2003).

The attraction of those venues is that they can provide an event with a special appeal, which can create it memorable experience for delegates. Although some venues have high-quality conference and meeting facilities, others can be more limited in this aspect, however the setting in which the event is being organized tends to recompense for such limitation (Rogers, 2008; Davidson and Cope, 2003).

As far as most of venue types has been highlighted. The table below compare the advantages and disadvantages of those venues. Different factors regards as the conference and meetings been hold in a high quality from the corporate sector’s point of view and better value for money from the association’s points.

3.1 Advantages and disadvantages of venues
Type of venue
Advantages
Disadvantages

Hotels

Everything under on roof All inclusive quotes Airport hotel: time saving

Mixing leisure and business guest Can appear to frivolous Unsuitable for large events Lack of flexibility with syndicate rooms, etc.

Purpose built-conference centres

Space for large events Extensive range of technology available, plus technical know-how Many offer exhibition space

May not always be suitable for the growing number of smaller events No on-site accommodation

Universities

Good value for money Learning ambience Everything on site Ancient/modern styles Range of sizes of meeting rooms

Lack of comfort and facilities May be limited to holiday periods Large sites – problems of orientation between buildings

Unusual venues

Memorable, novelty value Cruise ships: all-in prices

Limited by design restrictions due to primary function Unlike to be used several times by same client – novelty value fades No on-site accommodations

Source: Davidson and Cope, 2003
2.4 The Growth of conference industry

The industry has experienced outstanding growth from 1960’s due to a number of features from the demand and supplier sides. Regards a larger demand for conferences and meetings, various specific aspects has contributed to the industry development. Such as the growth of multinational corporations, expansion of government and quasi-governmental organization has brought the need for meetings in a public and private sector (Spiller, 2002 p. 5-6; Lawson, 2000; Davidson and Rogers, 2006).

The conference industry is growing and maturing very fast, it is youthful and vibrant. In America and Europe it is hardly 50 years old and even younger in the most part of the world. Nowadays the industry itself claims to be the world’s largest, helped with international investments in large scale infrastructure projects have been undertaken all through Asia and Pacific, East European countries such as Czech Republic and Hungary, in a number of African countries, in the Middle East (Rogers, 2008).

The growth of the industry is demonstrated in Rogers (2008), the evaluation of the industry’s major trade shows, which is held in Barcelona. The European Incentive and Business Travel and Meeting Exhibition (EIBTM) shows that in 1988, 54 countries were represented as exhibitors, the exhibition was held in Geneva; in 2005 the numbers has doubled to 95 countries held in Barcelona. Although, the number of visitors in the same period increased from 2850 in 1988 to 5689 in 2005.

2.5 Impacts of conference events

Positive and negative impacts can be generated by the conference industry. The conference sector has been generally accepted for it is high-yield, year-round market and the possibility of gathered substantial economic gains that characterize the main motivation for many destinations to follow the conference market (Davidson and Rogers, 2006).

Employment Generation

Stimulation of Investment

Contribution to Government Revenue

Foreign Exchange Earnings

Positive ImpactsAccording to McCabe et all (2000) the conference sector is an important generator of tourism expenditure, foreign exchange earnings, investment and employment. The figures below show the positive and the negative impacts of the conference industry.

Figure 2.1 – Positive impacts of the conference industry
Source: Adapted from Davidson and Rogers, 2006

The figure above reviews some of positive impacts that conference industry can generate to the community development. In additionally, it can be see that conference sector is well accepted for a high-yield year around market boosting substantial economic gains (Davidson and Rogers, 2006).

However, while the positive impacts of conference are normally noticeable and progressively more claimed by the conference industry itself, a number of unfavourable effects related to hidden cost of developing and operating conference industry and affects the host community (Rogers, 2008). The diagram below represents the negative impacts of the conference industry.

Negative
Impacts
Infrastructure
Costs
Promotional
Costs
LeakageFigure 2.2 – Negative impacts of the conference industry
Source: Source: Adapted from Davidson and Rogers, 2006
2.5.1 Economic impacts

The conference industry has been considered as the healthiest and well growth-orientated segment of the tourism industry. Business people and professional travel all throughout the year to attend conferences and meetings, affecting considerably in particularly tourism and hospitality industry. The reason is the need of those participants to meet, eat and sleep. However, many other direct impacts can be seen, such as cultural and sporting activities place, tourism attractions, restaurants, local shops and transport facilities (McCabe et all, 2000).

The conference market is critically in nature and vulnerable to change in the business environment. The current slow-down in the global economy and recession can decrease numbers of conference and meeting activity (Weber and Chon, 2002).

2.5.2 Environmental impacts

The value of the environment is vital to the successful performance of the conference and business industry (Rogers 2008). Constructive environmental impacts at basic levels, towns and cities hosting conferences need to ensure that the physical environment is maintained in a clean, tidy and healthy condition. Delegates will be expecting to find conference localities at least clean and attractive, and this is particularly when there is a motivational component to the conference (Davison and Rogers 2006).

Davison and Cope (2003) say that customer concern in excess of possible and actual unconstructive impacts of mass tourism ahead the natural, built and human environments of purpose is achieving importance. Business Travel have an effect on towns and cities where conventions and exhibitions take place, open the city’s potential for professional and business location and development. These are the causes why almost all big cities have situated convention centres in close combination to a high-amenity, creating a good impression to delegates. However, awareness groups are placing increasing force for conference industry to bring in more environmental consciousness.

Moreover, Swarbrooke and Honer (2001) say that there are important certifies that conventions and exhibitions centres are functioning in an environmentally friendly approach, and supporting environmental schemes.

2.5.3 Technological impacts

The future of the conference industry has a midpoint on the technology issues; the concern is if the advantage technology such as videoconferencing, virtual trade shows and webcasting will replace the need of face-to-face meetings (Weber and Chon, 2002).

However studies suggest that has been a slow reluctance to establish state-of-the-arte technologies, simply because it often comes without adequate training staff and suitable backup support by the IT providers in difficult circumstances (Weber and Ladkin, 2001 in Weber and Chon, 2002).

Thus, according to McCabe et al. (2000), the significant communication services that are available to organisers and participants of conference events are showed in the table below.

Table 2.2 Communication services

SERVICE

CARACTERISTICS

videoconferencing

an electronic medium that transmits the picture of the speaker, product, or explanatory graphics

teleconferencing

enables sharing of ideas in real time with enhanced audio and graphics

electronic data transfer

allows transfer of large amounts of data between computers separated by long distances

Facsimile

enables quick and accurate transmission of large documents

virtual exhibitions

computer simulations and human computer interfacing, this takes place through a combination of visual, audio and kinetic effects

Source: Adapted from McCabe et al., 2000; Medlik, 2003; Rogers, 2008.

Furthermore, it is clear that information technology (IT) can be generate massive benefit for those who operating function of conference organiser and the conference venue itself, also can be noticed at operational, tactical and strategic level, Consequently, it appear that the technology, predominantly the Internet, have substituted the traditional conference diaries or filing and paper trail systems (McCabe et al., 2000).

2.5.4 Social and cultural impacts

Different generation are emerging into the conference industry, those who having grow up and spending much time on the PC and using email. They are bringing very different approach to communication and require a different learning style (Weber and Chon, 2002).

Another issue related to social impacts are the trend toward an aging population. An increase number of people are chosen to retired early; also many of those may decide to engage in associations (Weber and Chon, 2002).

2.5.5 Employment

The industry creates an increase level of business and improvement of employment opportunities. It is seen as an attractive employment area for those who may become employees for the first time or a looking for a carrier change. It is view as dynamic industry and one that offer many career opportunities and the expectation for fast career development. The industry is responsible for a significant part of the jobs found in the transport and hotels sector, such as specialist conference professions related to the suppliers (McCabe et all, 2000; Davidson and Rogers, 2006). However the industry is not resistant to the high staff turnover and shortages in labour supply found within the tourism and hospitality industry (McCabe et all, 2000).

Fenich (2005) claims the employment benefits of conference industry can stimulate construction or renovations of hotels, restaurants, retail units and entertainment facilities. Because of the stimulus a range of skilled and unskilled job opportunities are created For example, these would include meeting planners and marketers, hotel and convention sales, and promotion staff, secretarial and business services, catering staff, retail clerks, taxi drivers and security staff etc. The impact of employment may vary between cities, town and countries due to the structure of the economy.

2.6 The future of the conference industry

Predictably, many people outside and inside the conference industry attempt to forecast the industry’ growth, and whether in the years it will experience growth or decline, even through many issues can be come across due to unpredicted circumstance those can affect conference industry (Rogers, 2008; Swarbrooke and Horner, 2001).

The present slow-down in the global economy and recession has the potential to diminish conference and meetings activity in the future. Many others factors impact the current growth and health development of the segment such as social, economic, technological and environmental trends (Rogers, 2008; Weber and Chon, 2002).

2.6.2 Social trends

In terms of social trends, changes happen into the work population, including an increasing number of women’s conference delegates, older delegates or coming from diverse cultural, ethnic and religious backgrounds. Additionally, many employers are developing a wide range of work-life options, for example tele-working or taking portfolio careers (Rogers and Davidson, 2006)

Different generation are emerging into the conference industry, those who having grow up and spending much time on the PC and using email. They are bringing very different approach to communication and require a different learning style. Another issue related to social impacts are the trend toward an aging population. An increase number of people are chosen to retired early; also many of those may decide to engage in associations. All these social trends are going to have several implications for the conference industry (Weber and Chon, 2002; Rogers and Davidson, 2006).

2.6.3 Economic trends

Despite on-going divergences and continuous intimidation of terrorist attacks worldwide, the global economy should continue to recover over the next five years, which is excellent news for the conference industry as it clearly depends on the worldwide economic situation (Davidson, 2004). In addition, the economies of Central Europe maintain expanding; Western European countries will fairly certainly experience an augment in business travel from the new EU member countries (Rogers, 2008).

The expenditure on business travel and tourism in Europe, according to the World Travel & Tourism Council reached $190 billion in 2003, representing 39%of the worldwide total of $488.8 billion. Although, is expecting an increase spending on business travel in Europe by approximately 75% over the next 10 years, reaching by 2013 roughly $ 330 billion (Mintel, 2003).

2.6.4 Technological trends

The 21st century is involved especially about Information and Communications Technology (ICT) Buhalis (2008). Technological trends will continue to develop at the remarkable speed. It will contribute to the industry offering important prospective and benefits to buyers, suppliers and intermediaries (Rogers, 2008)

However, the industry has been using ICT for many years, with e-mail and the Internet. Conferences organisers can take advantage to reach potential delegates by using email addresses or to set a web site related to the event, conference or exhibition. Nowadays, registration for various events can be possible done on-line, permitting the organisers to be and keep the web information up-to-date, also contact any delegate by their email addresses (Davidson et al, 2002; Buhalis, 2008).

By the end of this decade, the conscientious for cost saving and efficiency in distribution will affect the industry (Davidson and Rogers 2006). The preferred distribution channel for making reservations, check in, registration to a conference also many other forms of business travel will be done by the internet (Cline, 2001). A report from IBM business consulting service, forecasted that on-line travel bookings would roughly double between 2004 and 2007 (O?Connor and Piccoli, 2003).

The future of the conference industry has a midpoint on the technology issues; the concern is if the advantage technology such as videoconferencing, virtual trade shows and webcasting will replace the need of face-to-face meetings. However studies suggest that has been a slow reluctance to establish state-of-the-arte technologies, simply because it often comes without adequate training staff and suitable backup support by the IT providers in difficult circumstances (Weber and Chon, 2002; Weber and Ladkin, 2002).

6.4.5 Environmental trends

The value of the environment is vital to the successful performance of the conference and business industry (Rogers 2008). Constructive environmental impacts at basic levels, towns and cities hosting conferences need to ensure that the physical environment is maintained in a clean, tidy and healthy condition. Delegates will be expecting to find conference localities at least clean and attractive, and this is particularly when there is a motivational component to the conference (Davison and Rogers 2006).

Firstly, considering the damage of environmental issues like global warming, carbon emissions and others cause to the planet. Swarbrooke and Horner (2001) criticized negative impact on the environment, particularly in terms of transport sector. For example, pollution and fuel costs of air travel and the use of private car to take the business traveller from one destination to another. Regarding International legislation, airlines have already done a lot to reduce their environmental impacts.

Davison and Cope (2003) argument saying it is obvious that the majority international business journeys are made by air, the extremely polluting form of transportation. Aviation is identified to be the highest increasing source of greenhouse gas emissions and key donor to climate change. They also criticize the police of aircraft and aviation fuel an airline tickets are zero rated for value-added tax (VAT), this means that society contribute is subsiding air transport.

It should be discuss how those issues are becoming usual worries and challenges inside conference and convention industry (Rogers, 2008). Cassar (1995) mention the environmental concern will continues indoors the conference venues. It is essentially how about venues can congregate their responsibilities to anxiety for conferences and exhibitions.

The positive environmental impacts generate the desires for municipalities to preserve eminence of their built and natural environment, the conference industry in addition has the potential to produce beneficial results on the environment of destination by contributing to environmental development and conservation. The conference industry has as well added large appraise to urban conservations programme, particularly during the replacing into conference centres of buildings that perhaps have been destroyed. Innumerable examples of architecturally precious buildings have been saved by their renovation into conference amenities (Davison and Rogers 2006).

Human Resource planning has been criticized as speculative and over-mathematical. Nevertheless, proponents argue that rather than attempting to predict the future, the value lies in challenging assumptions and stimulating thinking.

Human resource planning has been recognized as an undeniably important process in organization from the past. To mention about the statement above, it represents that human resource planning has focused more on quantitative and missed the qualitative part. In other words, most managers in organizations relay on theories and statistics over their own opinions and observations.

In the introduction, there are 3 main parts which consist of the original development of the plan, about the nature of the hospitality business and how this distinctive industry affects human resource planning.

Afterwards in the main body, there are the analysis of forecast demand and supply which are the most important steps in human resource planning.

As soon as employees are considered as human capitals to an organization, human resource management started to develop. Despite the word “human capital” is used, people are still tcomplex objects that have feelings and psychological needs that are unlike tools. And those needs and feelings can be analyzed and fulfilled through psychologies and theories. In order to utilize this capital in the organization, first and foremost, it is important to have better understandings about them.

The whole Human Resource planning is an evolving process as it is a part of Human Resource management; it is an evolution from scientific management developed in the late 19th century by Frederick Winslow Taylor and the System Theory by Niklas Luhmann. The concept of HRP was drawn upon from these classical approaches, thus the core consideration while developing a HRP is theory-based, as the guidelines and the framework are set. These approaches were sufficient and commonly used in the late 19th and early 20th century as the majority of the workforce was engaged in productions and factories.

And yet the contemporary human resource planning is facing a lot of challenges and instabilities such as demographic and political changes, intense international competitions, expensive and rapid development of technologies, and rising demand of customers. Because of all of these changes and development, they have shifted the nature of Human resource planning from being just plain predictions to including personal assumptions and thoughts in order to prolong the ‘life’ of HR planning.

The relationship between profitability and employee engagement

According to a workplace research done by the Gallop Organization, they conducted a survey in 2003 showing the relationship between profitability, guest satisfactions and employees recognitions within a corporation. The result of the research showed that corporations have more opportunities of achieving their goals by recognizing the employees when they met the goals that set with the supervisors or managers. Moreover, guest loyalty and engagements are also increased when employees are more committed to their work and corporations. The research also found that the commonness between successful organizations from the rest is that they had great managers who did a good job at selecting employees with the right skills and abilities to fulfill the role, developing employees’ strengths and skills, and creating the motivational environment.(Macaleer, Bill; Shannon, Jone, 2003)

Furthermore, as one of the characteristics of hospitality industry, the quality of services is perceived by guests at the point that the service is delivered, so the moment of truth lies largely on the commitment and involvement of the staff. (S.E Jackson, R.S.Schuler, 1990)

In other words, in order to meet organization’s goals, a comprehensive and effective Human Resource planning is a potent element. Hospitality industry is an extremely competitive industry in terms of revenue and market share, and by seeing the potential of increasing revenue by employees engagements, managers have to come up with more complex and non-traditional planning in order to survive from the fierce competition and to be able to retain the key individuals. To add, being traditional here means being too rigid, quantitative, and statistics-oriented.

Therefore, the traditional bureaucratic, task-driven, and over theoretical planning is not efficient anymore. Managers tend to be more dynamic during the planning process since they are required to be proactive and sensitive towards environment changes so as to make adventurous assumptions to keep up with the uncertainties.

Moreover, a well-planned human resource planning can also be the competitive advantage for the organizations in the sense that the Human Resource plan has fully done its job by generating revenue with the most important assets of companies or organization, the labor. Like the usage of Delphi method in forecasting demand and replacement chart in forecasting supply that will be mentioned later in the paper.

Balance of methods in forecasting Demand

In Human resource planning, there are two critical factors to be forecasted which are the demand for employees and the supply of employees.

The first sketch to draw is to forecast the demand. In order to do so, there are two different methods, and these are objective statistics method and subjective judgmental method. Although forecasting demand involves two completely different methods to look into, both methods are inevitably interrelated during demand forecasting and more importantly both should be balanced in order to determine the most accurate amount of people needed in the organization. A combine of forecasting methods can maximize accuracy and minimize errors. (J.Scott Armstrong, Kesten C. Green, 2009)

The two general types of forecasting are called Top-down forecasting and bottoms-up forecasting. General speaking, these two methods are to gather the relevant information to forecast the demand for employees.

According to Robert H. Woods(2006), top-down forecasting depends on quantitative or statistical approaches, while bottom-up forecasting is based on the experience of the managers. In another words, it can be described as an objective method and subjective method.

The word demand refers to rather characteristics of the particular job such as responsibilities, skills, and abilities. In spite of the fact that forecasting demand involves more towards soft factor, however, it does not necessarily mean that forecast demand should be based only on qualitative assumptions.

For example, if there is a hotel organization that starts at the very beginning, then it is impossible for the manager in the new company to forecast the demand since he or she has no experience and there is no history of the company to review. Therefore, during human resource planning, and when it comes to the first step to forecast the demand, it is crucial to have the same amount of importance on the core of organization, hard factor, and as well as the behavioral culture of organization, soft factor, in order to find the suitable employees for the particular job positions.

Without knowing the statistics and history of the organizations, it is hard to forecast demand correctly. Otherwise, the forecasting will turn out to be only subjective guesses, whereas the forecast isn’t accurate and reliable, and vice versa.

If the manager only depends on the hard factor without managerial judgment, then it will also bring about the case when the business miss the key impact on success since recognition on softer issues have been increasingly important. As far the softer issues, there are included with employee behavior, employee attitude, motivational of employee, business objective, and organization culture.

Delphi Technique

Apart from bottoms up and top down forecasting, there is also a method called Delphi technique that has been used more recently. It is a forecasting method that combined the quantitative and qualitative aspects to analyze the current demand of business with historical statistic data to determine on the future trends. It is a way to decide the demand forecasted by various number of experts’ judgments. It is true that a decision based on a number of people is a lot more unbiased and fair than only one person’s personal assumption. Therefore, the Delphi technique can be described as a combination group communication that lies on the real value of forecasting demand and that meets the purpose of human resource planning which is to hire the right qualified people the most. Talking about the evolution of human resource planning, the amount of importance has been getting more recognized on soft factors, as the human resource function has also evolved from the scientific management, personnel management and into human resource management eventually.

However, it shows that not only the speculative forecast based on quantitative soft factor is needed to take consideration, but also the qualitative assumptions and stimulus thinking from managers as well in order to have the balance to forecast demand accurately. Judgmental data should collect in a systematic manner and act as inputs to the quantitative models, instead of solely used as adjustments to the output, and that are proved to be the most effective by Armstrong and Collopy (1998).

After the forecasting demand, the next step is to forecast the supply. Since it is deeply interrelated with forecasting demand, it is inevitably important to follow the step one by one. During the human resource planning, if the demand is forecasted without the consideration of both objective and subjective aspects, then there will be nor right supply for the organization, which means that the company will not able to predict the right number of employees they need.

Forecasting the supply

As soon as the decision for demand is forecasted, the organization has already a clear and basic number to follow of how many people do they need and at what skill level. (L.S. Kleiman, 2004). The crucial challenge for forecasting supply is whether the result of demand forecasting is accurate, as the demand forecast is the base of the pyramid, if it was not build correctly, the pyramid is very likely to fall.

The supply refers to the number and typical of people available for the specific jobs. There are two sources generally when it comes to forecast supply, and that is to forecast internally and externally. Internal resource is used primarily and considered to be the most crucial and most available. (Bechet & Maki. 1987;Miller, 1980)

Both quantitative and qualitative techniques are available for supporting the forecast of supply.

Internal supply forecasting: Judgmental techniques

Internal supply forecasting starts with the judgmental technique by creating employee’s skill inventories and replacement chart to look for the suitable personnel for the specific job and while the statistical technique is used mostly in large organization is Markov analysis. (Dyer, 1982; Piskor & Dudding, 1978)

The latter is less commonly used in small organization because this technique requires the organization to have an extensive record keeping procedure and system. Whereas, the judgmental techniques has been developing rapidly into a more computerized system called Human resource information system. Proven that judgmental technique is more useful here.

External supply forecasting: Statistical Technique

External supply is a challenging criterion as it involves a lot of instabilities and uncertainties that is outside the organization environment. There are so many details to pay attentions to; therefore quantitative analyses are essential components in this step.

Higher education in Taiwan is divided into 3 levels, junior college, college and graduate school; each of the colleges has different numbers of academic years of 2 years, 4 years and 3 years respectively, thus, there will be three different figures of manpower supply from collages in Taiwan every year. Moreover, not all the graduates are joining the labor market right after graduation. Junior college graduates go to collage continuing their study or study aboard; female graduate may stay at home and become housewives. If the organization is planning to fill up the vacant with fresh graduates, they then need to look at the percentage that the Department of Statistics of Taiwan and calculate the exact amount of supply available in the market.

Furthermore, the correct quality of supply is also another consideration that is taken into account, so the courses of that the colleges are given are adopted as criteria as well. (C. Kao, L.H Chen, T.Y. Wang, H.T. Lee, 1997). A huge amount of numbers and statistics are collected for further analyses. The quantitative technique is emphasis greatly during external supply forecasting.

Same as in demand forecasting, the emphasis is on the balance between 2 methods of quantitative and qualitative. The same applies to supply forecasting, as using qualitative method to be the primary internal supply forecast method and using quantitative method in external supply forecast. The final result is the integration of both methods.

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Does the industry need it?

Human Resource planning is definitely needed in hospitality industry; in fact, it is needed in all types of business and industry if their primary concern is being successful and profitable. HR planning is the process to bring the organization to where they want to be from where they are.

Human Resource is an important department in hotel business, develop a HR plan is one of their major responsibilities. Labor cost is the number one expenses in hotels, because there are so many items and activities related to labor, for examples, training programs, orientations, evaluations and appraisals, a carefully planned HR planning can as well reduce the unnecessary labor cost. (G. Kumar, 2010)

Conclusion

Human resource planning is a relentless process as the business is going.

Planning won’t be effective without creativities and boldness to make adventurous assumption as we have mentioned in the text. Since human resource planning is mainly all about people, it should be included human factors as well.

The ideal planning is the balance between quantitative and qualitative while forecast demand and supply. Although the discussion is continuously going on the issue about the two different ways to organize the human resource planning, both are deeply interrelated with each other proven by the research that is written in the text.

Therefore, it can not fulfill the main objective of organization if there is no balanced amount of recognition on both methods to organize the human resource plan.

To conclude, during human resource planning, both hard and soft factors are equally important and essential in order to meet the main purpose of human resource which is to hire the right people to the right position at the right time.

Comprehensive project report is part of the MBA sem 3 and 4 curriculum. Under which 2 students in one group are supposed to study one industry and so we have selected TOURISM INDUSTRY for our study.

Tourism Industry is one of the fastest growing industries in the world with an average GDP of 11.6%. Changing lifestyle of the people because of a sudden increase in their income levels accredited to the opening up of the economy and Multinational Corporation has led to the steep growth of tourism industry in India. Tourist’s attention is shifting from established destinations such as European countries to emerging destination such as Asia-pacific countries. Travel barriers have been broken and there is a flow of free trade. Tourism has become multiple activates focused with the integration of shopping and recreation, entertainment and education and culture and business center development.

Tourism Industry is deeply affected by the social, technological, economic factors. All these factors have been given their due credit in the project. Economy being the bloodline of any country has been devoted a major chunk in the study of these factors followed by social and technological factors. Government policies provide a basic framework, which minds and controls every industry. Therefore, it has to be studied so that not a single factor remains untouched.

For the development of any industry the basic infrastructure facilities are very important. Indian railway is the world’s largest network under a single management. The railway is one of the facilities required for tourism besides aviation, telecommunications and accommodation.

Tour operators and travel agents perform the role of a liaison and a catalyst too in this industry without whom it is very difficult to operate.

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As we know that tourism industry of India is growing at a very fast pace so in this we have project also deals with the current scenario and the challenges faced by the tourism industry of India.

A few suggestions about development of tourism in India have been market in the project such as planning, organizational structure, business process reengineering, information systems, operations management, marketing strategy formulation, environmental impact assessment and project management.

GROWTH AND EVOLUTION OF TOURISM INDUSTRY IN INDIA

The fall of Roman Empire resulted into downfall of tourism, at least till the end of Middle East. The available facts reveal that Roman evinced interest in visiting temples, shrines, festivals and baths for health and amusement. The contours of Development underwent radical change at least till the 15th century. The trade and commerce along with religious activities gained the momentum but till the beginning of industrial revolution, tourism continued to remain the matter of pilgrimage. Of Course a number of developments took place between 15th and 18th centuries. Specially In the industrial world which raised the significance of specialization or expertise for excelling competition. This motivated the elite of the society to go abroad for enriching the knowledge, speeding up the learning cycle developing the excellence and making possible cross fertilization of thoughts and ideas. By the turn of 19th century, we find multifaceted development in transportation, communication and, technological sophistication, which energized the process of industrial transformation. The tourism started developing as a business and the professional Travel agents started taking part in the process. With the beginning of the 20th century the process of invention and innovation stated gaining momentum which made ways for the development of infrastructural facilities and further added new dimensions in tourism business. No doubts, the World War I and World War II obstructed the flow of development but the second half of the 20th century proved to be golden age, since almost all the countries of the world started patronizing tourism as an important economic activity.

Thomas cook was of the view that beauty is for the people. The opinion of Mr. Cook generated new dimension in the tourism business, which paved copious avenues for development of tourism as an industry. We can’t deny that since the time immemorial travel has been first choice of masses , the qualitative improvement in the process could take place with the participation and co-operation of leading global organization , such as WORLD TOURIST ORGANISATION, PACIFIC AREA TRAVEL ASSOCIATION, INTERNATIONAL UNION OF OFFICIAL TRAVEL ORGANISATION or so With the development of a broader concept, the essence of Tourism further distilled and it was more holistic approach because in the general theory of tourism, Walter Hunziker and Kurt Kraph (1942) considered it both a human As well as economic activity. In 1974, Burkat and Medlik again brushed up this approach since they viewed tourism as a composite phenomenon embracing a whole range of different relationship between traveler’s and the host population.

The intensity foreign exchange requirement was found at its peak and the tourism appeared to all of them an important source to be tapped optimally. In the face of succulent benefit, the developed, less developed and even the Developing countries started assigning due weight age to the tourism industry in their national development agenda. We agree with this view that with tremendous Socio-economic potential, the tourism industry is considered to be an economic bonanza which paves avenues for the Development of a number of allied Industries, such as hotel, communication, banking transportation, trade and commerce or so. In addition, we also consider tourism a potential source for making possible world peace through mutual appreciation and international understanding.

In the Indian perspective, we find Seventh Five Year Plan as watershed in the Development of tourism industry. For the first time, the vast potential of tourism as a foreign exchange earner and generator of employment opportunities was recognized.

Several policy initiatives were taken to develop the tourism sector In the development of tourism, the public sector has made a significant contribution. Of late, the industry is equipped with a reasonable infrastructural base and is poised for a self-sustained growth. The future growth of tourism is required to be activated with the support of the private sector. The strategy for the development of tourism is required to be designed on the basis of low-cost economy, higher level productivity, efficiency in the use of infrastructure and sophisticated tourist facilities.

The tourism industry bounced back from the global economic slowdown of last year with 2011 poised to show a positive growth number. As a matter of fact tourism is one of the largest industries globally, both in terms of size and employment ($5.4 trillion and 8.6 per cent of the global workforce.)

Indian tourism industry contributes 6.4% of total GDP. This compares to 3.3% for automotives manufacturing, 4.5% for education and 3.7% for the mining industry. So INR 6.7 billion is contributing from tourism industry in India.

PRODUCT PROFILE

1. Holiday as a Base – Mass Market, Popular Market

2. Demand as base – Primary, Secondary opportunity

3. Geography as a base – Cities, Provinces, Regions, Countries

4. Psychography as a base – Lifestyle, Personality Motive, Product, Knowledge.

5. Demography as a base – Age, Sex, Occupation, Class, Religion.

6. Socio-economic of base – Rich, Poor, Rural, Urban, Literate, Illiterate

7. Purpose as a base – Business Travel, Cultural Tourism, Common Interest

8. Age as base – Kids, Teens, Youths, Young, Married, Single.

The holiday base focuses or attention on the fact that long-distance tours require availability of more leisure hours. The holiday market is classified in terms of demand. The different categories are, the mass market, the popular market and the individual holiday market. The mass market involves largest number of- vacationists who generally travel in long groups. They prefer all-inclusive tours. The users belong to the conservative group in which we find skilled and semi-skilled workers, blue-collar employees as the potential users. The users are generally class one and class two groups, pensioners and retired people. The individual holiday market involves “social group-A7 like corporate chairman and senior executives. We find an apparent change in the behavioral profile of different categories in the holiday base. Another base is purpose in which we find business travel market, cultural tourism market, common interest tourism market and conference and convention.

The demand base classifies markets into primary tourism market, secondary tourism and opportunity tourism. The geographic base includes lifestyle, personality, motives, product and knowledge. The demography base covers age, sex occupation, class and religion. The socioeconomic base makes classification like rich, poor, rural, urban, literate and illiterate. The age-base classifies markets for kids, teens, youths, young married and old people market.

The aforesaid small segments simplify the task of tourist professionals. They know about the changing needs and requirements of different segments and innovate their strategic decisions accordingly. The development of marketing resources in tune with the changing levels of expectations make the ways for the stimulation of demand and simplify the task or marketers. It is in this context that we need to segment the market for the different allied industries helping the tourism industry in many ways.

Designing a Package Tour

In the process of formulating a sound product strategy, there are a number of factors to be given due attention. The designing of a package tour occupies a place of outstanding significance. For the profitable marketing of tourism services, it is pertinent that the different components of product are managed in a right fashion. This gravitates our attention on the offering of a package holiday product which necessitates management of the following factors.

Destination

The development of destination or tourist sites has a far-reaching impact on attracting the tourists. It is essential that destination or the tourist sites are easily accessible. This necessitates safe, fast and reliable transportation facilities hither and thither the tourist sites. To be more specific for promoting world tourism or attracting the foreign tourists, it is essential that the flying time is made proportionate. The site should be clean, the beaches should be sandy, sun-shine should be certain, the entertainment facilities at the site should be of quality the site should be safe to walk about, the local people should be friendly, the tour operator, the travel guides and others should have competence of speaking English and other regional languages. These facilities at the destination would add attractions.

Management of Airport

While managing the tourism product, the airports are required to be managed carefully. The airport should be local and convenient. The arrangement for car parking should be safe and adequate. It should not be congested but it should be spacious. In addition, the shopping facilities should be duty free. The airport should be clean and the vehicles should be available so that tourist doesn’t face any trouble. Besides, the security arrangement should be tight to protect the passengers and their valuables. The aesthetic management occupies a place of significance in the very context.

Airlines

The flights should maintain the time schedule otherwise a dislocation may invite multifaceted problems, not only to the tourists but even to the airport authorities. The services should be reliable, good and polite. The sophisticated modern aircrafts of new generation should be included in the fleet to attract the tourists. The safety record should also be up to mark to remove the fear psychosis or psycho-fobia.

Road and Rail Transportation

For the tourists preferring to travel by buses of railways, it is significant that the stations are well managed. The booking and reservation counters should be managed scientifically. The enquiry should be controlled by efficient and well behaved staff. The safety arrangement should be adequate to counter the law and order signposts should be positioned at right places to help the travelling passengers.

Hotels

For managing the hotel services, it is essential that we are also careful to the hotel accommodation facilities. It is pertinent that hotels are easily accessible to the tourist sites or beaches or shops. The hotel personnel trustworthy and competent enough to speak English and other regional languages. They are supposed to be friendly. The management of facilities at hotels need due care. Though the standard of services, amenities and facilities depend upon the grade of hotels still it is essential that hotels offer the promised services to the users. The gap between the services-promised and service-offered should be – bridge over. The hotels should be well maintained, the decor should be attractive; possibly a fair mix of eastern and western culture, the atmosphere should be calm and quiet; specially at the night time, public rooms should be adequate in number, the swimming pool should be neat and clean where inflow and outflow of water should be scientific to protect the danger of water contamination or pollution. There should be bar with good range of drinks.

The bedrooms should be spacious in which balcony facilities should be made available. The childcare services should also be made available. Particularly at the beach resorts, the sea view should be possible with all rooms, in-room telephonic services should be available, in, and room-TV should be provided. There should be adequate cupboard space. The hangers should be attractive and artistic, toilets should be neat and clean and well equipped with east and west provisions. The lighting and ventilation arrangements should be adequate. The intensity of light at different points should be given due weightage. While managing hotels, the restaurants and cafeterias also need due care. The restaurants and cafeterias should be well managed. The food and drinks should have taste-orientation. The varieties of meals and drinks should be available. The seating arrangements should be comfortable, the meal should be flexible and the hotel personnel should be polite and friendly.

Resort Representatives

Regarding representatives of resort, they should be-knowledgeable friendly, accessible and competent.

Miscellaneous

In addition, the fellow travelers should be like-minded. The main thing is to make the tour pleasant and memorable. If the tourists have companionable fellow travelers, the journey would of course remain memorable.

The aforesaid facts make it clear that being an amalgam of a number of industries and services, the tourism industry is known as a multi-segment industry in which the designing of a package which proves its instrumentality as a motivational force is found a bit difficult and challenging. It requires professional excellence so that we are in a position to assess the changing levels of expectations of the guests/tourists and all the required amenities and facilities are made available to help tourists to go to the destination, to enjoy and to come back safely. The tour operators and transport operators bear the responsibility of formulating a package tour and therefore they should have world class professional excellence to know and understand their changing needs and requirements.

The services are related to a number of industries managed by others and therefore, the tour operators and transport operators managing the affairs should make it sure that whatever the promises they have made on behalf of hotels, airways,’ railways, roadways are not to be distorted. This is likely to project the image of tour operators and therefore a gap between the services-promised and services-offered would make the task difficult. It is against this background that designing of a package tour occupies a place of outstanding significance and all the allied industries making the package are required to be careful that they are not inviting degeneration.

DEMAND DETERMINATION OF THE INDUSTRY

You should know this fact that India is such a country which is rich in beautiful and amazing places. Some places are god created whereas some are manmade. But in spite of having unbeatable tourism potential, lesser number of tourists visit different destinations of India for which it is known. Though Government authorities are continuously paying attention towards the growth of the tourism industry but still it is lacking the attention of a good number of travelers. It is a fact that tourism industry is contributing a large amount to the total GDP of the country so governments want to attract a good number of tourists to India. But Indian tourism is lacking a good number of tourists. This may be due to various reasons. Some of the important reasons are:

PRICE:-

While time and price are self-explanatory, pricing is an art in itself and

requires careful study as part of corporate policy. Price is the most powerful single variable in the marketing mix. But it does not operate in isolation. Value for money, albeit at different levels, is imperative. The product must be in demand or fashionable. It may be in short supply. Competition can be weak or strong, affecting achievable rates.

The wide variety of airline and hotel rates for basically the same product at different times and conditions of sale reflect these characteristics. The market may be very price sensitive, as in the case of traffic from Northern European urban areas to Mediterranean beaches where there is a strong competition and a wide choice. There are also resorts and their establishments offering exclusive attractions, justifying a premium price. Price discounting and discrimination, and segmentation, in the market has always been a feature in travel services. The historic rule is to charge

what the market will bear. The product is highly perishable and cannot be

stored. It is necessary normally to appeal to a number of different

segments. The railways invented first-, second- and third-class travel on

‘scheduled services’. When capacity exceeded demand, excursions and

package tours were invented, the purpose being to sell to capacity and

maximize the yield or return. Prices can be lowered segment by segment.

But the marketing task is to ensure that cheap traffic does not drive out

or invade the higher price and regular clientele. Airlines, for example,

offer Saturday night stopover fares at half or less than full fare, on the

assumption that full fare paying travelers, notably business travelers, will

not stay over the weekend. In times of crisis or recession, special rates apply. In fact, recession has always been the mother of invention in tourism, giving rise to new initiatives that created new movement.

Packages, cruises, specialist tours are all examples. Indeed many hotels have created events to attract business. Tactical plans must be highly flexible, short term and changing to meet the

varying ‘tides’ in demand, especially seasonal change. Economic and

political ‘perturbations’ usually unexpected, can alter trade suddenly and

sometimes with great force. Currency devaluation, the Gulf War and the

severe recession of 1991 in world markets are examples.

The strategic plan with its long-term marketing implications needs

consideration with the development plan. As marketing has a key role in

product formulation the plan must select market segments. For example, it may give priority to quality and higher priced services, which will affect the investment in equipment to provide luxury items. It will be important to select segments that fit together. At a later stage in preparing the marketing plan, a detailed product/market match exercise will be necessary.

The early resort promoters understood the selective approach very well.

There were from their inception select resorts, usually quiet, small and

patronized by the ‘upper classes’ and higher spenders, and large, gregarious resorts which were popular centers for ‘lower class’ visitors.

THE SUPPLY DETERMINANTS:-

There are supply determinants, ranging from absolutes such as under- or

overcapacity to infrastructure weakness, e.g. transport bottlenecks and

health and security dangers or political instability. Such factors can seriously

limit or even destroy for a time a tourist destination’s reception capacity. The

marketing plan will take such factors into account.

SEGMENTATION AND MOTIVATION:-

Two key aspects of the third demand determinant – consumer preference –

need careful study. Indeed the success of the whole marketing operation

depends on this. They are segmentation and motivation.

Tourism’s mass expansion takes many different forms. It is a heterogeneous

not a homogeneous movement, made up of many different types of

traveler, seeking a wide range of tourism products. Thus the mass

movement divides up into a number of segments, each differing from the

others and needing a separate approach in sales, servicing and product

provision.

There are many possible divisions and subdivisions which can be made

usefully in planning, but essentially the segmentation task is to identify

specific groups in the travelling population interested in the same type of

facility and service. The group identified must be large enough to warrant

separate marketing or production attention, to make a specialist approach

profitable. It must also be possible and practical to reach this section of the

population in an effective way. This means that the group should not be too

dispersed, and that there should be efficient media and distribution

channels enabling the producer to reach the customer at a reasonable

marketing cost. There are a number of criteria and categories in segmenting the total market.

POOR ARRANGEMENTS OF TRANSPORTATION FOR THE TOURISTS:-

Even after making lots of effort in improving qualities of the comforts for the tourists, it is said that the transportation system still requires to be improved. Tourists from outside India want to enjoy their tour with comforts in all respect and they are ready to pay for all these facilities. So it is essential to offer the best transport facilities for the tourists in order to attract more and more tourists.

NON-STANDARDIZATION OF FARES AND RATES:-

There are not any standard fares and rates for the transportation. Due to this tourists face lots of problem. Most of the travel agencies want to earn more and more especially from the tourists outside India. This ultimately gives a bad impression of India on outsider.

IMPROPER MAINTENANCE OF HERITAGES:-

With the advancement of tourism industry in India, numbers of heritages and resorts are built at different destinations in order to avoid inconvenience to the tourists. But most of the heritages are not maintained properly and these things are disliked by the tourists especially from outside India.

LACK OF SECURITY AND CHANCES OF HARASSMENT:-

If we talk about the security of the tourists, it is little bit weak. We can’t say with full confidence that the tourists who tour to India are secured completely.

LACK OF TRAINED AND PASSIONATE PROFESSIONALS:-

Due to lack of trained and passionate professionals, tourists don’t enjoy and get satisfied fully.

LACK OF PROMOTIONAL STRATEGIES:-

Indian tourism must adopt a good number of promotional strategies which will help in attracting a large number of tourists.

ABSENCE OF HYGIENIC AMENITIES IN THE RESORTS AND HOTELS:-

Though there are numbers of hotels and resorts but most of them lack in hygiene especially in the basic amenities which they offered to the tourists.

PLAYERS IN THE INDUSTRY
TOURISM COMPANIES
MARKET SHARES

Prime Travels

Thomas Cook India

SOTC tours

Cox & Kings

Club Mahindra Holidays

Kuoni Travel Group, India

Galileo International

Goodwind Travels Pvt. Ltd

Airtravel Enterprise India

Compass Tours India

KEY ISSUES AND CURRENT TRENDS

Tourism as one of the important foreign exchange earning industries has manifested great potential of growth under liberalized Indian economy. To attract the foreign tourists in India, liberal policies and reduction in taxes along with a comprehensive package for attracting tourist and foreign investment are the need of the hour. There is also a need to increase the government’s role in promoting India as a brand. Just like exports and other sectors, tourism will grow only if the India brand is established in the global market. Hence, we must have an open mind on alliances with other countries, which might help in adopting better promotion strategies, marketing, services and packaging. Only overall growth can help in improving revenue generation, which needs to grow in line with the additional capacity being setup by the hospitality industry.

Present Position of Tourism Industry in India:-

It may be mentioned here that the Government of India had no Tourism Policy for more than forty years since the initiation of planning in the country in1951. Consequently, no efforts were made to lay down any sort of infrastructure for the promotion and development of tourism industry in the country. As a matter of fact, the country, after independence, had to pay serious attention towards increasing food production and laying down infrastructure for industrial development. On both the fronts, the country made tremendous progress and became leader of the developing nations. In order to achieve targets of faster economic growth, a number of Public Sector Enterprises were set up including India Tourism Development Corporation. However, no worthwhile progress was made in developing tourism in accordance with tourism potential of the country. It was only in 1992 that a tourism policy was laid down by the Government of India.

As far as total revenue to the Government of India is concerned, tourism is the third largest source of foreign exchange earnings to the country after garments, gems and jewelry. India has tremendous potential to earn more foreign exchange because it has a huge and diverse potential for tourism ranging from pilgrimage tourism, beach tourism, eco-tourism, spiritual and health tourism to leisure and adventure tourism. The amazing diversity offers tourists everything they want to enjoy from a holiday but still we could not capitalize on the huge variety of amusements offered by our country. In order to attract the influx of tourists in the years to come, the Government of India has allocated US $590 million for the tourism sector for the period of 2002-07. While the global tourism market has shown negative growth, tourist arrivals in India have improved a little in the recent past. This is a positive indication but much more can be done to promote inbound tourism in India. In brief in India, the tourists feel insecure and irritated on account of unwanted paper work, time consuming compliance of various rules and regulations, customs and immigration formalities, currency convertibility, beggars, tipping, bargaining, environmental pollution, transport problem, high rates and taxes etc. Beggars are such a nuisance that they are visible almost at all tourist spots, hotels, shopping centers, markets, monuments, places of worship, railway stations and bus stands. They constantly follow the visitors and there have been occasions that the tourists are so much irritated that they cut short their visits, shopping and spending. The tourists, thus, ignore India to avoid hassles and prefer other destinations where the specter of poverty and its manifestation like begging do not spoil their holiday spirit. Thus, India’s third largest foreign exchange earning industry is beset with a large number of problems. These problems have been examined in greater details in the pages that follow.

RECENT CHALLENGES OF TOURISM INDUSTRY IN INDIA:-

During the last few years tourists have witnessed good amount of violence and killing almost in every country including India. Kashmir, historically known as ‘Heaven on the Earth’, appears to be deserted on account of terrorism and violence. A large number of tourists, who used to visit and stay for a longer period in the Kashmir valley, do not tour the State of Jammu & Kashmir for fear of violence and aggression. The business travelers also schedule their business trips only when it is absolutely essential. In fact, terrorism and violence have become the first and the foremost problem for tourists everywhere and India is no exception. The problem has assumed such alarming proportions that the world community must find its last in solution. The injustices done to the people in various parts of the world have result in great damage to tourism industry all over the world Tourists, especially of the developed countries; have been avoiding such destinations where there is any chance of violent activities against them. The problem has become so acute that the Governments in UK and the USA, in the recent past, had to issue travel advisories to their tourists. Though these travel advisories were, later on, withdrawn but the damage had already been done. India is not a preferred destination now for most of the Western tourists who spend, from our standards, a lot of money on tourism. Tourists are also irritated on account of unwanted paper work, time was the compliance of rules and regulations in India. In addition to customs and immigration formalities, language barriers are also the major problems faced by the foreign visitors. The difficulties of entry and exit too spoil half of the holiday charm. Again, our poor infrastructure, shortage of packaged tours, lack of connectivity between places, lack of transportation, our failure to create mass awareness throughout the world, polluted environment, discriminating economic and social behavior, inadequate and inexperienced staff, uneasy current convertibility and lack of multi-linguistic guides come in their way of pleasant tour and make the foreign tourists reluctant to come to India.

PEST Analysis

The Indian tourism industry has seen rapid growth in the last few years. Before any kind of analysis is undertaken, it is important to find out what are the main environmental influences that have lead to this growth and how the extent to which the changes are occurring. This is important because the change in these factors can have significant effect on the way the industry performs.

These environmental influences can be analyzed by using the PEST Analysis. The PEST Analysis within its parameters indicates the importance of the political, environmental, social and the technological changes on the industry.

a) Political / Legal Political

The political factors are the main force of the industry. The Indian tourism industry is built on the ba