Marriott International: An Analysis

Marriott International has culture and tradition of innovation, service and leading performance. Marriott International has achieved competitive advantage over the other competitors through three conceptual frameworks: Porters Five Forces approaches, the resources based approaches and the rational approach. Through this approaches Marriott International has identified the source of competitive advantage. This report is primarily based on explaining how the Marriot International Inc. has successfully managed the strategic moves and competing with the strong rivals in the hospitality sector. This report also critically evaluates the strategic moves, competitive strength, internal and external environment of the company.

Introduction
Marriott International is a leading operator, franchisor, and licensor of hotels, corporate housing properties, and timeshare properties under numerous brand names at different price and service points. It has more than 3700 properties worldwide. It is expanded to 73 countries and have 18 brands. Innovation, service and leading performance is always the key priority of Marriott International. Fortune® magazine has included Marriott International in the most admired company in lodging industry and also as one of the best places to work. This report critically evaluates the Marriott International’s strategic profile. (Marriott International Inc., 2012)
History

Marriott International has categorized its glowing history in 4 groups; period between 1927 to 1956 is known as early years, growth years are between 1957 to 1985, modern years are between 1986 to 2011 and the years ahead is 2012 and onwards.

Marriott was founded in 1927 by J. Willard Marriott and his wife in Washington D.C. as a root beer stand. Due to the humid summer of Washington D.C. the Hot Shoppe gradually became the popular place to get cool drinks to quench the thirst. For winter season hot Mexican dishes like tamales, chili, and tacos were the profitable items. In 1929 Hot Shoppes was incorporated in Delaware as Hot Shoppes Inc. Hot Shoppes went public in 1953 by opening its first hotel, the Twin Bridges Marriott in Arlington, Virginia. Marriot did its first international expansion in 1966 by acquiring an airline catering kitchen in Caracas, Venezuela. Marriott became Marriott Corporation in 1967. Cruise lines were added to Marriott Corporation in 1971 and in 1972 J. W. Marriott, Jr. the son of JW Marriot Became the CEO. Farrell’s ice cream parlors became the part of Marriott Corporation in 1972 and also two theme parks near Chicago and San Francisco came to operation in 1976. In 1977 Marriot Corporation became a billion dollar company. In 1982 the company acquired Host International and opened first Courtyard hotel in 1983. In next year company entered in the vacation timeshare and senior-living market.

In 1987 Marriott entered in the lower-moderate lodging segment by acquiring Fairfield Inn and Residence Inn. Again in 1993 the company once again broke down into Marriott International and Host International. In the year of 1995 Marriott International acquired Ritz Carlton Hotel Company. Marriott International introduced Marriott Executive Residence, Towneplace Suites and Fairfield Suites in 1997 by acquiring Renaissance Hotel Group. In 2006 Marriott International announced that all Marriott establishments in US and Canada are non-smoking zone. Marriott has very colorful past and it grew old with innovation and on the other hand it focused more on mergers and acquisitions. In the modern years Marriott International opened the first Bulgari Hotels & Resort property in Milan, Italy. In the year of 2008 The Edition brand was introduced. Marriott International continued its growth in 2009 as well. In this year company launched Autograph Collection, which is a luxury and upscale independent brand hotels. In the year of 2012 Marriott International got its third CEO, Arne Sorenson in the company’s history.

Strategy Management

According to the Bill Marriott, “Sustainability means being good corporate citizen and environmentally steward and promoting economic growth, diversity and inclusion in our communities worldwide.” Marriott International is growing bigger every day. Marriott International is focusing more on Asia, Africa and Middle East in these days.

Marriott International has well planned strategies like New Generation Travelers, Brand Distinction, Portfolio Power, Technology Leadership, Owner Preference and Global Growth. These strategies are formulated to compete with the rival chains. Beside these strategies Marriott International has CSR strategy known as ‘Spirit to serve our communities,’ which is social approach to stay ahead from the competition. Company has strategic management program to catch up with latest trend and development in the marketplace.

Marriott International developed great room lobby experience for the Next Generation Travelers in 2007 and is expanded to 190 countries of the more than 500 Marriott hotels and resorts. Company has planned to expand this program to more than 80% of Marriott properties worldwide with in 2015.

Marriott International is also trying to minimize its labor costs in its corporate offices despite the greater expansion of the company itself. There will be altogether 100 hotel in India alone within 2016. In china Marriott planning to open new hotels in faster pace than the rival hotel chains. The economies of China and India are somewhat slowing down but the travel and tourism industry is still growing in the positive speed and Marriott International wants to capture the growing market travel and tourism by adding new rooms.

MISSION AND VISION STATEMENT

Marriott International does not have a mission statement; rather, it has a vision statement which is “To be the #1 hospitality company in the world.” (Marriott International Inc., 2012)

INTERNAL AND EXTERNAL ENVIRONMENT:
SWOT Analysis

Strengths

Weaknesses

Large Expansion of Brands

People’s business

Geographic Presence

Global leader

More franchise

Website and Social Network

Focused divestiture Efforts

Attract and retain employees

Culture retention against the identities of the brands

Brand Equity

Strong Internet presence

Adequate IT solutions

Over-reliance on US market

Over dependence on luxury brands

Lack of low-cost lifestyle brands

targeted by fundamentalists or extremists

Opportunities

Threats

Emerging Asian Travel and Tourism Markets

Trend of low-cost market

Distinction amongst hotel service offered

Environmentally and Family Oriented

Decrease of cost of real estate in the USA

Eco-tourism

Timeshare not popular anymore

Economic Recession = lower consumer spending

Boom of Economy Hotel Brand

Political instability

Terrorism

PEST Analysis

External environment needs to be analyzed in timely manner in order to be competitive on today’s market place. The environment is changing all the time and company must be responsive to the changing environment. To take effective actions. PEST is the effective tool to analyze external environment of the organization. Marriott International is the leading hospitality management company. Its political, economic, social and technological environment analysis are as follows:

Political Environment

Marriott International has recognized the value of laws and regulations of the individual nation and acted accordingly in the past and present. The political scenario in each country is different and must be addressed properly. Marriott has followed protocol designed by the individual nation like; no smoking policy, non-fat food, low calorie diet etc.

Economic Environment

The growing economy of the Asia and other developing region is motivating Marriott International to invest more in these areas. On the other hand, the increasing price of gasoline is encouraging Marriott International to focus on clean energy and to be more environment friendly by decreasing the use of synthetic fuels, which also helps in controlling the cost of the operations

Social Environment

People today like to travel and explore new places. Marriott is extending travel network in America, Europe, Australia, Asia and Africa. Visiting friends and family abroad today is very easy due to the advancement in transportation system. Marriot International must recognize this market and develop plan to attract these markets.

Technological Environment

The world today is like global village. Technology is connecting the world and gathering the people in one place. People travel today more frequently than in the past. Reservation, payment, check in and check out can be done seamlessly. Marriott International has adopted technological innovation in faster pace than the competitors. Technological and innovation is the key priority of Marriott International.

3) FORCES OF FRAME WORK

Buyer Power

The buyer power in the Hospitality industry is moderate. As the Marriott International has strong brand recognition, it can attract new guest easily with little effort of marketing and promotions. The company can also keep its repeat business because the switching cost or risk for the guest is uncertain. Marriott International is providing quality service consistently and giving the best experience to its guest at all level.

Supplier Power

The supplier power is moderate for Marriott International as the supplier power in Hospitality Industry is fragmented. Property owners, developers, architects, real estate companies, marketing firms, law firms and information technology service and equipment suppliers are some example of supplier in the industry. Suppliers are in different shapes and sizes. Food and beverage supplier, utility supplier and labor supplier are also key player, as they are major stakeholder in minimizing operational cost of operation.

Threat of New Entrants

Threat of new Entrants for Marriot International is considerably high due to the substantial growth in hospitality industry in past few years. The unfavorable economic condition of some European countries also have lowered the value of land and real estate and it is very likely to attract new entrepreneur in the hospitality industry. The economic growth in South Asia and Asia Pacific is also maximizing the threat of new entrants.

Threat of Substitution

Threat of substitution for Marriott International is low in the developed nations and premium market place. In developing nations, the threat of substitution is high due to the innovative concepts in travel and tourism industry like; homestay campaign, camping, informal visit to friends and family. There is a threat of substitution but we cannot compare the service level provided in the informal sector with the Marriott level of service.

Degree of Rivalry

The threat of rivalry in the hospitality industry is moderate for Marriott International. In hospitality industry, key players are large branded chains. Marriott is facing strong competition from the other same sized chain brands but it is gaining its competitive advantage through the diversification of business in specialized segments. Marriott is expanded in 73 countries and has 18 brands which is the main reason that Marriott is ahead from its competitor. Beside this, Marriott’s strong brand equity, strong commitment for guest satisfaction, consistent and quality service is helping Marriott to stay ahead from its rivals.

RESOURCES AND CAPABILITIES

Marriott International has a strong presence in the hospitality market due to its efficient operation, effective marketing, specific market segmentation by diversification of revenue and economies of scale on operations. Marriott is capable of managing all of its operations on its own. Strong commitment to service and guest satisfaction is Marriott’s priority. Satisfied investor and shareholders, motivated employees in all level, strong corporate culture is driving Marriott International in the right track of its journey to more satisfied guest, motivated employees and prosperous owners and shareholders.

DECISION MAKING
CRITICAL THEMES
CONCLUSION

Environment Of Kamat Hotels

Kamat hotels are a new chain of luxury business hotel in India promoted by KHIL (kamat hotel India ltd). Kamat hotel began as a single landmark namely VITS Mumbai, located near Mumbai international airport, but is now recognized all over the India as the symbol of true Indian hospitality. KHIL is a pan-India network of hotels that offers business and leisure travelers a hotel designed for the modern nomad. The hotel promises a whole new experience of tranquility and total wellness proposal. Called the jiva spa, it is a unique concept, based on a mixture of heritage, wisdom and the Indian philosophy of wellness and well being. All hotels built with similar infrastructure are four star hotels which consist of 200 rooms and aims to give prospective customers, a “total experience of hospitality”. Each hotel has a six banquet halls, a conference hall and fitness clubs complete with sauna and steam bath are open in the lobby area.

KHIL is well known for being environmental friendly. It has won many awards like environmental champion, global ecotel, regional direct tourism award and pata (pacific Asia travel association awards), hotel and catering international management associations (HCIMA) best environmental policy 2000, India chapter environmental award for 2001 on the hotel excellence category. In 2009, VITS achieved excellent profitability based on the trend of rising demand for suitable accommodation in the city of Mumbai.

Based on its early success, KHIL has expanded heavily in India, opening new branches in more states like Ahmadabad, Aurangabad, Baroda, Gujarat, Hubli, Kolhapur, Nagpur, Nasik, Pune, Sholapur, Surat and it is expected to add twenty more branches in the next five years.

With the rapid expansion of Indian economy, budget and mid market hotel segments are fast expanding as more business people travel and look for short pleasant stays. The group also introduced tours and travels in 2010 and was engaged in marketing of destination and package tours. KHIL along with its flagship hotel, VITS are well positioned to meet the increase in travel activities and is set to benefit fully of this market expansion.

The restaurants, known for their top quality food, attract high number of middle class families for breakfast, lunch and dinner. However limited capacity of its butchery and bakery cause delays in periods of high customer turnout and often leads to customer complaints

KHIL group employees are gentle, skillful, and knowledgeable and are given certificates of honesty which keeps them motivated and loyal.

But Management at VITS has been very poor at embracing Technology to help them in their daily task or for the benefit of their customers. There is no Wi-Fi installed on the premises, and internet connections are slow. Management have not upgraded their software but have stuck to their “PMS” i.e. (property management system) while their competitors are already using Opera or Fidelo, softwares which are faster in performance and standards.

Using the stakeholder model, this paper will assess the strengths and weaknesses of VITS and then analyses its external environments using Porter’s 5 forces model and PESTEL. This will give us a proper indication of the hotel’s position and will conclude by coming up with workable proposals for VITS.

2.0 Analysis of the internal environment
2.1 Stakeholder model
2.1 Stakeholder

An individual, group or business with a keen interest may be positive or negative in an organization success are known as stakeholder. They are concerned with an organization to deliver an intend result and also to meet its financial objectives generally stakeholders are of two types they are internal “within the organization” and external “outside the organization”. Stakeholders are shareholders, employee, suppliers, customer, financial institution, government and society. A stakeholder is usually stands to gain or lose depending on the decision taken or policies implemented.

2.1.1 Importance of stakeholder

Stakeholders are very important persons who in fact control the organization and the success of the organization lies in their hands. The participation of stakeholders in an organization is from the beginning of the organization. Stakeholder analysis is a technique which is generally used by an organization to identify the importance of key people, groups of people or stakeholders which influence the success of an organization. It is an important process because if we find the needs and interest of stakeholder than it become easier for an organization to achieve its goals. This can be done by an individual or by a team. The analysis helps us to determine the influence and power that each stakeholder has. If we know the most powerful stakeholder than it is easy for an organization to gain support in order to gain success. We can implement stakeholder to an organization in three steps they are {1} identifying the stakeholders, {2} prioritizing the stakeholder and {3} understanding important stakeholder opinion and interest.

2.1.2 Shareholders

KHIL hotel’s formally reports to their shareholders twice a year when it releases its results. This comes amidst great media and specialized press speculation as KHIL is known to be a star performer. Shareholders have over the past 5 years, constantly been rewarded with dividends to the tune of 21% per annum after tax every single year. They generally hold meetings with their shareholders and stakeholders to keep them informed about the progress of business and future plans for the group.

2.1.3 Employees

KHIL hotel’s places great importance on communication about its business and performance to their employees. They follow a program of effective staff training to understand the purpose and goals of hotel management strategies and deliver on the organization’s sustainability objectives.

2.1.4 Suppliers

KHIL supports local suppliers and promotes responsible business practice. Given the strength of their bargaining power they can source produce at a very competitive price which helps them on profitability. Supporting local suppliers wherever they are also helps them to build good relations with the community whom they support. Suppliers are very supportive of KHIL and have been working with them ever since they started business.

KHIL welcomes feedback from their suppliers which helps them to better understand how they are performing against their peers and they get a clearer picture of risk.

2.1.5 Customers

KHIL has mastered guest relationship through constant interaction and feedback from them. They offer top quality service which is known and appreciated by customers. This is what has built the KHIL brand as they are known for the unique experience they offer customers. KHIL charges them a slightly premium price but which customers do not complain about as they feel pampered. Customer feedback lies at the center of their strategy. Customers recommend the hotel to their friends and word of mouth spreads. Feedback and adaptation to customer requirements have kept them ahead of competition and rising up to end increasing guest demands. They have mastered the art of proactively engaging with their guests to understand and anticipate their requirements.

2.1.6 Financial institution

KHIL works and is supported by the biggest and the best financial institutions like the State Bank of India, Baroda Bank, ICICI, and private investment funds. Gathering funds for expansion and development is not a problem because of the support as KHIL has always lived up to expectations of financial institutions and has never defaulted.

2.1.7 Government

KHIL relies on both central and local government provisions. Statutory and regulatory sanctions of authorities are required for approval of restaurant and bar licenses. As such it is in its best interest to stay within the legal provisions. Both central and local governments are very supportive of KHIL’s investments as it creates wealth, jobs and supports to local communities. KHIL is a major benefactor of government’s incentive schemes and low interest investment funds and this helps to expansion. KHIL does not fail on taxes, levies, duties, company or municipal taxes. KHIL has provided for Rs 1, 63,17,4381/ for the current financial year for different taxes and no dues are pending.

2.1.8 Society

KHIL, since the very beginning is a major supporter of social development. This is a reason why communities welcome its developments. The group supports sustainable livelihood as an underlying principle of their social initiatives. In order to improve the quality of life of villagers who live around the hotel KHIL helps them by providing solar lighting, health, hygiene and nutritional support for children and women, drinking water facilities and educational support. They provide hotel related artisan jobs for them like making candles, dusters, staff snacks and stationery.

3.0 Analysis of the specific external environment

I will use Porter’s five forces to analyze KHIL’s specific external environment.

3.1 Barriers of entry

Barriers of entry in the hotel industry are very high as lots of investment goes into initial infrastructure and getting initial customer support. Credit facilities to tour operators and other agents supplying customers result in cash flow issues which very often cannot be supported by new entrants as they rely heavily on loans.

3.2 Availability and substitutes

The substitutes exist when the alternative product with lower price and better performance for the same product. Likewise the Kohinoor provides the spa at the low cost compared to KHIL which reduces the potential sales volumes of KHIL. There are a lot of price variation between KHIL and the Kohinoor hotel service, which leads customers to feel that KHIL is at times over priced. The Kohinoor have various rates and tariffs, a good brand image and the hotel chain currently operating different services like spa, boatels, resorts, city center and heritage hotels.

3.3 Bargaining power of suppliers

The suppliers consist of all the sources of input that are needed to provide a goods and services. KHIL has good supplier support but is at a disadvantage against competition as it has a tendency of buying because of the long standing friendship they have with suppliers who supported them initially. Very often this plays against price and quality. Furthermore large quantity items are tendered and bought on price which often plays against quality.

3.4 Bargaining power of customers

The hotel industry is a very competitive one and having invested in its fixed assets, hotels want to recoup their investment as quickly as possible. They are ready to offer discounts the whole year to attract and keep customers therefore reducing margins. Availability of substitutes such as the Kohinoor improves the bargaining power of customers and they can put even more pressure on margins and volumes.

3.5 Competitive rivalry

KHIL has several good challengers like the Kohinoor, Continental and the Mirador who are competing in similar market with similar offerings. The Kohinoor has 200 rooms, excellent conference facilities, multi cuisine restaurants, bars, health clubs, and 24 hours coffee shop, doctor on call, is situated in the main business area of Mumbai and is close to the international airport. These facilities are similar to KHIL’s and reason why they are strong challengers. This has the overall effect of reducing both revenue and profitability.

4.0 Pestle analysis

Pestle analysis is the useful tool to understand the clear picture of the environment in which the organization lies and to find the opportunities and threats that lies in the environment they can be express as the Political, economic, socio cultural, technological, environmental, and legal factors affect an organization’s external environment which in turn affects an organization by offering it either opportunities to progress or threats to regress. it is also used as a generic orientation tool to find out about the organization or the product is in the context of what happening inside as well as outside of the organization.

4.1 Political environment

One of the political environments for the organization was the “times of India” (it is a well known newspaper) by Rachna sigh, Jaipur in a bid to attract the international tourists is gearing up with a host of new properties across the different segments.

Some of the industries like hotel and tourisms are the backbone of any competitive world. But government charges a huge tax from the hotels which are stars or are in the luxury category these organizations has an impact with the government or the political changes that occurs. If the government takes even a small steps if affect the hotel industries. It’s getting huge incentives and the state governments are supporting them in their development. But now Indian hotels are planning to expand in the economic crunch time.

The terror attack on the city (Mumbai) renowed hotels like the taj hotel and the oberios had brought into concerns and facing the hoteliers with a drop in foreign travelers to India i.e. the terror attack is one of the threat for hotel industries.

4.2 Legal factor

In recent years, government has brought significant changes to the legal framework to facilitate investment and doing business. Several incentive schemes have been introduced to increase investments. Laws that directly impact on the hotel industry are the Hotel development incentive bill, tax holidays of up to 2 years to new investors in the hotel sector, fairer health and safety laws and less stringent employment laws that were acting as limitations to investment. This has led to a lot of development as investors have easy access to funds and are supported by incentives. These new business friendly frameworks have largely helped groups like KHIL to invest further and adopt expansion strategies.

4.3 Economical environment

The India economy hardly suffered from the international financial crisis. This is because the Indian system rests on a controlled and sound financial system in the country. The economic environment includes GDP, interest rates, inflation and exchange rates, economic growth, taxation amongst others and it determines disposable income. While larger number of tourists will flock to India for its beauty, history and heritage, Mumbai the financial capital will keep bringing in business people from around the world therefore offering an incessant flow of customers to hotels like the KHIL group to prosper.

4.4 Social environment

Changes in social trends also have an impact on the demand for a firm’s products and offer. Organizations have to respond by constantly adopting their products to new customer trends and demand.

This is what KHIL has constantly been doing especially with its unique feedback system. Feedback from customers has also explains why KHIL has more single room than double rooms.

4.5 Technological environment

Indian is one of the most advanced technological nations of the world and businesses are well aware of progress in the field of technology and its enduring impact on processes and the reduction of costs.

KHIL has not taken technology on board though most major customized products are valuable.

4.6 Environmental factors

The growing desire to protect the environment is having a great impact on many industries such as travel industries. Environment protection creates business opportunities and KHIL is well ahead of competitors in this field. To respect local legislation, all hotels of the group are built after an environmental impact assessment and this creates harmony with the community.

5.0 Swot analysis

Swot analysis is the most important tool for audit and analysis of the overall strategic position of business and its environment. Basically it is the foundation for evaluating the strength, weakness, probable/likely opportunity and threats from the external environment. It also views the positive as well as negative factors inside and outside of the organization which affect its success. So these are the four factors applying to the property to know about the property in details the strength, weakness, opportunities as well as the threats of the KHIL hotels.

5.1 Strengths

Strength is the qualities which helps an organization to achieve its goals. Generally strength are beneficial aspects of the organization which includes human competence, process capabilities, financial resources, product and service, customer goodwill and brand loyalty.

Strength of KHIL

Competitively priced for value they offer

Situated near the international airport and few kilometers away from the domestic airport

Is a very convenient alternative for layover guests are those whose flights have been cancelled or delayed

Has preferred partner status with airlines

Affordable luxury venue for SME’s for their Meetings, Incentives, Conventions and Exhibitions

Highly perceived as a environmental friendly hotel

Recognized name for fine cuisine and value for money accommodation

Loyal, honest and per formant employees

Appeals to local middle class families looking for a night out

5.2 Weakness

Weakness is a limitation, or the defect in an organization that will keep it away from achieving its goals. The weakness are of different kind like huge debt, high employee turnover, complex decision making process, narrow product range and large wastage of raw materials.

Weakness oh KHIL

Situated off the road it may see significant impact on FIT guests (free individual traveler)

Fails to handle larger crowds and sister hotel Orchid is no substitute

Business centre is to small and no WI-FI zone yet

Trailing on technology on its processes and still using Whitney rack system

Swimming pool located next to the restaurant plays against privacy

5.3 Opportunities

An opportunity is a kind of favorable situation in a firm environment. It is usually a trend or an overlooked need that increase demand for a product or service and allows the organization to enhance its position.

Opportunities for KHIL

Upcoming cricket world cup jointly organized in India, Bangla Desh, Sri lanka will attract guests

Event can be used to showcase of value offered to enhance reputation

Bus service or the special cabs for the fans to the stadium in and around the world cup venues

Targeting opening in new or developing business hubs like Bangalore

5.4 Threats

It is an unfavorable situation which may occur in an organization environment and which may harm the business or its strategy. They are uncontrollable when the threat comes, the stability and survival can be stake.

Threats for KHIL

Security especially in the wake of terrorist attacks

Competitor response from Kohinoor, Continental and Mirador

6.0 Conclusion

As each and every organization has strength, weakness, opportunities, and threats the kamat hotel also have these factors but they can find out by doing the swot analysis to the organization to its internal and external factor so that one can obtain it and can control the system in a practical way. It can work according to its objectives by allowing an easy way to attain its profit growth.

7.0 Proposal

The KHIL hotel’s should plan and perform their work to achieve their goals and the information and explanation that are considered are necessary to work on them that they need to improve a lot like increasing the rooms in the hotel because of its they are facing the problems when there is an event in India most of the foreigners visit to India because of lack of rooms its losing its business so if it works on it then it will achieve a great success.

These are needed to upgrade to an improved integrated management system as it would help reduce the amount of paper work. It would also reduce the work of night auditor and reception staff as they would not have to verify every bill every time guests checkout.

Visiting Interlaken – City of lakes and mountains

Interlaken – City of lakes and mountains

Hallo (Hello in German)!

Interlaken is a small Swiss city set in the middle of two beautiful lakes, Lake Brienz and Lake Thun. It lies in the centre of the glorious Jungfrau region comprising of the legendary Monch, Eiger and Jungfrau mountains. Interlaken is the perfect place to stay for anyone who is visiting Switzerland due to its proximity to most of the tourist destinations and also other famous Swiss cities. Famous cities like Bern, Lucerne and Montreux can be visited as day trips from Interlaken. Turquoise lakes, pretty waterfalls and majestic snow capped mountains combined with an opportunity for adventure sports like sky diving, paragliding, bungee jumping and river rafting is what makes Interlaken an attractive and a unique destination in Switzerland. Interlaken is the perfect example of a place where beauty meets adventure!

Best season to visit Interlaken

Interlaken and its surrounding areas have something nice to offer throughout the year. Summer, from June to August is the peak season. With pleasant temperatures, clear skies, beautiful views of snow capped mountains, lush green surroundings and opportunities for adventure sports it is also the best time to visit Interlaken. But quite obviously the prices go up and it can get crowded during these months. Autumn from September to November is also a good time to visit, especially the months of September and October. The crowds start thinning but the temperature is still pleasant and you can visit all the nice places. Winter, from December to March can be avoided by most people except for ski enthusiasts. It is the perfect time to ski in the Jungfrau region. Spring, from April-May is yet another beautiful time to visit Interlaken. Days are cool and sunny and nights cold but not chilly. Skies start clearing up, hiking trails start opening up, flowers start blooming and it is a very pretty sight.

Highlights (Things to do)

Ride the highest railway in all of Europe to reach the Jungfraujoch peak, which is probably one of the most beautiful views you will see in your life! Do not forget to sit and relax in one of the restaurants in Top of Europe enjoying the view.
Visit the Sphinx Observatory situated above Jungfraujoch, overlooking the infinite snows of Aletsch Glacier.
Ski on the famous slopes of Jungfrau located with a backdrop of Eiger, Monch and Jungfrau peaks.
Dine at Piz Gloria, a revolving restaurant situated at the summit of Schilthorn in the Bernese Alps, which was a set for one of the James Bond movies.
Cruise the beautiful Lake Brienz, nestled between the snow-capped mountains, tall cliffs and pretty waterfalls. Take a stroll in the picturesque and charming lakeside villages in the hop-on hop-off cruise.
Hop on a Lake Thun Cruise to enjoy some charming vistas around and explore the beautiful oberhofen castle situated on the banks of the lake.
Climb the Brienz-Rothorn railway and experience the vintage steam train ride that starts from Lake Brienz and reaches up to the mountains of Brienzer Rothorn, passing through a variety of landscapes including forests, meadows, pastures and finally the Bernese Alps.
Make a day trip to the charming historic old town of Bern city.
Try Sky diving in Switzerland! At Interlaken, adventure meets beauty and that’s what makes it a must try when you are in the city.
Go Paragliding to enjoy the incredible views of the Bernese Alps at a much slower pace.
Experience Night Sledding with Swiss Fondue at Interlaken during winter.
Indulge in some Lutschine River Rafting with a view of the Alps!
Participate in the world’s most popular mountain marathon, Jungfrau marathon! Interlaken being the starting point and Kleine Scheidegg the end point, the route includes all the beauties in the Bernese Oberland of Swiss Alps.
Ride the Golden Pass line from Interlaken to Lucerne which traverses through Brunig Pass.
Take a stroll or ride the horse-drawn carriages at Hoheweg Street, the heart of Interlaken.

Hotspots (Things to see)

Jungfrau

Jungfraujoch: Ride the rail from Interlaken to the peak of Jungfraujoch which is a 2 hour journey and traverses through the mountains of Eiger and Monch. If you gasp at the fantastic views the train journey offers, then hold your breath when you reach the top! You are now on the highest point of Europe. Dine in one of the restaurants in ‘Top of Europe’ overlooking the mighty Jungfrau peak with the feeling of being on Top of the World!
Sphinx Observatory: An astronomical observatory that is situated above the Jungfraujoch is a sight to see. The observatory is not open to public, but it has a viewing terrace which is open to public and offers incredible views of the Aletsch Glacier.
Aletsch Glacier: The largest glacier in the whole of Alps, Aletsch Glacier is truly a nature’s jewel and a UNESCO World Heritage site. Ride the cable car to Bettmerhorn or Eggishorn and soak in the beauty of the place. There are some interesting hikes as well for adventurous people.
Ice Palace: There is a very good chance that all the viewing platforms up on Jungfraujoch are crowded. Take this time to visit the Ice Palace consisting of interesting sculptures made of ice which includes animals, birds, furniture and a bar!
Kleine Scheidegg: While going to Jungfrau, one has to cross the Kleine Scheidegg station and it is recommended that you make a stop here! Located below the mountains of Jungfrau, Monch and Eiger, it is at this place where you come face to face with the awe inspiring Eiger peak. Views are amazing and a lot of hiking trails also begin from Kleine Scheidegg.
Schynige Platte: Vintage train, open carriages, breathtaking views of the Bernese Alps throughout, beautiful alpine gardens and finally a lunch/dinner at the Mountain Hotel! This is what a train ride to the Schynige Platte has to offer.

Lake Brienz

Lake Brienz Cruise: A themed cruise on the Lake Brienz like a Swiss Dinner or a Fish & Jazz Cruise is the best way to explore the lake and its neighboring areas. Explore the tiny beautiful village of Brienz and do not forget to take home some souvenirs. You can also opt to get down at the Brienz village and take the scenic ride in Brienz Rothorn Railway.
Giessbach Falls: Ride the beautiful turquoise lake to reach the thundering Giessbach falls.

Lake Thun

Lake Thun: Take a cruise on Lake Thun and make sure you stop at Saint Beatus Caves and Oberhofen Castle.

Lauterbrunnen

Isenfluh: Isenfluh is a charming tiny mountain village away from all the major tourist places and located very near to Interlaken. Unspoilt and untouched, this beautiful Swiss village also offers enchanting views of Grindelwald and Lauterbrunnen valley and of course the world famous Bernese Alps. Take a cable car up to Sulwald to enjoy these views.
Staubbach Falls: There are 72 waterfalls in the valley of Lauterbrunnen and Staubbach falls is one of the highest and spectacular ones of those. Easily accessible, the view of the falls is nothing short of spectacular. You can also climb up to the falls and take in the beauty of Lauterbrunnen valley from the top.

Unterseen

Aare Sluice Gates: Take a stroll in one of the Aare Sluice Gate located on the borders of Interlaken and Unterseen. The blend of mountains, hills and the charming old town of Unterseen combined with the turquoise waters of the Aare offers a pleasantly beautiful atmosphere.
Unterseen Stadthausplatz: The town hall square with its modern buildings, restaurants and boutiques is a nice place to spend the evening.

Harder kulm

Harder Kulm Panorama Restaurant: Ride the funicular to the mountains high up where a pretty restaurant and charming views await you. Look and admire the elegant Eiger, Monch and Jungfrau peaks from a completely different angle while indulging in a Swiss fondue!
Two Lakes Bridge: Situated very close to the Harder Kulm Restaurant, the bridge offers remarkable views of Lake Brienz and Lake Thun along with the mountains of Eiger, Monch and Jungfrau.

Beatenberg

Niederhorn: Enjoy a beautiful ride from Interlaken to Beatenberg from where you can take the cable car to the peak of Niederhorn. If you think that the ride to the peak is very scenic, you are in for some surprise when you reach the peak. The view of Lake Thun and entire Bernese Alps is simply mind blowing! It also offers orientation hikes with 3 trails of varying levels.

Shopping in Interlaken

Head to Hoheweg Street for any kind of souvenir shopping. From the famous Swiss Cuckoo Clocks to Swiss chocolates, watches, knives, cow bells and liquor, you can find it here.
For local Swiss crafts, wooden crafts and handicrafts, head to the village of Brienz.

How to reach Interlaken

Interlaken has no airport of its own. The nearest airport is located at Bern which is 45 minutes from Interlaken. It has 2 main railway stations, Interlaken West and Interlaken East (Ost). Both of them are well connected with trains from all major cities of Switzerland. There are also trains from Paris, Frankfurt, Milan, Vienna and Salzburg to Interlaken. It is also well connected to other Swiss cities through buses. One can also drive in to Interlaken as there is a well maintained highway/autobahn that connects the city with all major Swiss and European cities.

How to get around in Interlaken

The city is so small that it can be covered on foot and is probably the best way to get around and explore.
Hiring a car from a good car rental agency will be helpful since most of the attractions are at a distance from the city.
You can also rent cycles, motorbikes or mountain bikes for an adventurous ride.
Public transport consists of local trains and buses which are well connected to places in and around the city.
Hiring a taxi is also a good option to travel around the city.
Ride in the horse-drawn carriages especially in the Hoheweg Street for a more romantic holiday!

Top areas in Interlaken

Interlaken City Centre: Heart of the city, close to all the places and stations, City Centre is a good place to stay. You can also find some nice souvenir shops nearby.
Hoheweg: Favorite hanging place for tourists and locals alike, Hoheweg Street is filled with restaurants, cafe’s, hotels, shops and boutiques.
Beatenberg: Enjoy a quiet stay at Beatenberg Village while in Interlaken and enjoy nice views of the mountains and lakes around.
Wilderswil: Another village located in the municipality of Interlaken, Wilderswill offers good stay options with nice views.
Unterseen: A very pretty village that comes with history and attractions of its own is one of the preferred places to stay for people from all over the world.
Matten: You can find hotels for cheap rates in Matten and the views can just not go wrong in any of the mountain villages neighboring Interlaken.
Lauterbrunnen Valley: Beauty of Lauterbrunnen is already well-known. A stay amidst this beautiful valley could just add more charm to your Swiss holiday.
Murren: It is a quiet, cozy, charming mountain village located at the base of Schilthorn.

Danke (Thank You in German)!

Visiting Innsbruck – Gem of Tyrol! Popular destinations

Innsbruck – Gem of Tyrol!

Hallo! (Welcome in German)

Innsbruck, the capital city of Tyrol is located in the middle of the Alps making it an awesome location for a vacation! It is most famous for its largest ski resort and has hosted the Winter Olympics twice. The name Innsbruck means ‘the bridge over the inn’. Innsbruck, which brings back pictures of snow and skiing between the Alps, is the perfect place to ski with spectacular surroundings. It is a paradise for a person who loves snow and skiing! The beautiful surroundings with snow clad mountains make it a perfect Alps getaway location.

Best Season to Visit Innsbruck

Innsbruck, being located in Central Europe enjoys a Continental climate with cold and snowy winters. The temperature during winter nights can go below -10 degree Celsius. During the fall season, hotels are cheaper, but you will miss the best part of the surroundings as they are without snow and without skiing. Spring lasts for a short time with slightly warmer days and cool nights. Summers (June to August) in Innsbruck are quite unpredictable with sunny, rainy or hot days and with a huge range of temperatures. However, the summer months are the main tourist season.

Highlights (Special things to do in Innsbruck)

Explore the beautiful 16th century Renaissance castle Schloss Ambras that is located on a hill.
Visit the city’s famous symbol the Golden Roof (“Goldenes Dach”), which was earlier used by the emperor and his wife to watch the festivities.
Ride the cable car to the Patscherkofel mountain ski area with stunning landscapes all around.
Ski jump at the Bergisel Ski Jump. This has to be one of the top things to do in Innsbruck.
Hike along the mountain trails soaking in breathtaking views of snow clad mountains at the North Park.
Spend a leisure afternoon at the Botanical Garden where nature is at its best!
Spend an entire day at the various city museums – Alpine Club Museum, Anatomical Museum, Tyrolean Folk Art Museum and several others.
Stroll along Maria-Theresien-Strasse to best experience the city.
Watch a spectacular musical or opera performance at the state theatre Tiroler Landestheater.
Visit the Alpen zoo located by the hill with alpine animals, birds and other rare animals.

Hotspots of Innsbruck

Maria-Theresien-Strasse: This is the most famous place in the city for shopping, restaurants, cafes, pubs or just to enjoy a stroll with friends and family. Kaufhaus Tyrol , 6 floors of exquisite shopping paradise is located here. The architecture of the surrounding buildings with snow clad mountains in the background gives a different feel to the city. It is a perfect place to enjoy the beautiful surroundings at the courtyard cafes. This is not a place to be missed on your Innsbruck holiday!

Schloss Ambras: The most popular tourist attraction in Innsbruck is the Ambras castle (Schloss Ambras in German). This castle has an interesting collection from the sixteenth century that includes silk paintings, rhinoceros horn goblets, bronze works, glass porcelain and ivory figures. The gardens here are beautiful with small waterfalls and forest trails.

Bergisel Ski Jump: This is a place you cannot miss in Innsbruck. It is located on a hill and offers an unforgettable experience to ski while being surrounded by the most beautiful landscapes. If you visit at the end of January/February, you can watch the International Four Hills Tournament and other snowboarding competitions here. There is a tower restaurant and a museum here that offers great views of the beautiful snow clad mountain landscapes.

Patscherkofel: A famous Alps mountain ski area, Patscherkofel is one of the best places to ski. Few of the Olympic events in the past were held at the Patscherkofel ski area. It is an unbelievable snow clad mountain that offers a panoramic view! The cable car to reach the top offers stunning views on the way.

Shopping in Innsbruck

Kaufhaus Tyrol is the most famous shopping destination in Innsbruck with 6 floors of an international shopping experience. DEZ Einkaufszentrum is very popular with the tourists as it was the first shopping arcade in Austria with over a 100 stores and restaurants and cafes. Swarovski Kristallwelten is one that cannot be missed even if you do not want to shop. The entrance to this place is a waterfall from a giant face with crystal eyes; there is a museum and a store to buy the world famous Swarovski crystals or jewelry or articles made of crystal. You can buy souvenirs, crystals and other porcelain artistic items in the old town. The old town is the best place to in indulge in authentic and artistic local shopping. Maria-Theresien-Strasse is known for its shopping as well as restaurants and cafes.

How to reach Innsbruck

By Air – Innsbruck Kranebitten Airport is the largest airport in Tyrol and it is well connected to all major cities in Europe with regular flights. There are seasonal flights to/from UK, Hamburg, Netherlands and Berlin. Munich Airport is 2.5 hours from Innsbruck; there are buses and vans available from the airport to Innsbruck. Ensure to book a minivan in advance if you are carrying ski equipment.

By Train – Innsbruck is well connected by trains with other European cities. You can take a train from any of the nearby airports to reach Innsbruck. Most tourists travel by train from Munich, Venice, Vienna, Zurich and Graz; there are train services to/from other European cities as well. The Austrian train services Osterreichische Bundesbahnen (OEBB)operates to the suburbs and other cities in the country. The main train station is in South-Tyrolean Square in the Innsbruck City Centre. Ensure to check for available discounts – you can get 50% discount with OBB Vorteilscard, 25% discount with rail card if you travel from another country and a special discount if you are under the age of 26.

By Road – You can drive to Innsbruck via autobahn motorways A 12 or A 13. It is easy to drive to Innsbruck due to its location between the valleys. You will have to pay toll charges on both motorways; they are well maintained and make it easy to drive to Innsbruck.

How to get around in Innsbruck

The best way to explore Innsbruck is by walk or by bicycle. The city center and nearby places are within a few minutes by walk and this is the best way to enjoy the beautiful landscapes. You can drive within Innsbruck but it is difficult to find parking for long durations and hence not recommended. The public transportation in Innsbruck is efficient and connects all areas. The tickets are valid on buses, trams and trains within Innsbruck. There are 4 tram lines with 2 connecting the villages close by. Buses operate to the major tourist attraction areas and are scheduled and regular. S-bahn is the suburban train service that connects the city, towns and villages close by. Innsbruck Card promoted by Innsbruck tourism provides free entry to some of the tourist attractions including the Alpenzoo and public transportation; you can avail the card for 24, 48 or 72 hours.

Top areas in Innsbruck

Pradl – A very popular village in Innsbruck, Pradl is famous for its theatre Pradler jousting. The area is connected by tram and is easy to commute to and from the city center.

Natters – Most famous for Lake Natters, Natters is located by the mountains. It is a village with a lot of history from the sixteenth century. It is a beautiful little village that makes for a quiet vacation with beautiful landscapes.

Amras – Located on the motorway, Amras is well connected by tram and bus services. Amras is most known for its castle, gardens and parish. The village has a lot of chapels and is a perfect place for a leisure stroll with beautiful landscapes around the village. There are a lot of hotels available at reasonable prices in Amras. The famous shopping center DEZ Einkaufszentrum is located in Amras.

Natters – This is a beautiful town in the Wipptal valleys that is most famous for its ancient buildings, which take you back to the sixteenth century.

Hoetting – Hoetting is a beautiful small town in Innsbruck which is well connected by train and bus services. The town has several ancient churches that are worth visiting; the beautiful landscapes around add a scenic touch to the church buildings. The town also has Hunger castle and Hofgarten which attracts more tourists.

Hofburg – This area is known for its palace and is a prominent cultural building in the country. The palace has a lot of ancient history with a beautiful Gothic hall and courtyard. The Apline Club museum is located in the vicinity.

Lans – This area is most known for its skiing area, recreational center and Lanseree Lake. It offers the most beautiful surroundings with only about 1000 habitants. It has a lake that is preferred by tourists who want a quiet leisure vacation amidst pristine nature. You can play golf amidst the mountains and the lake. Lans is a beautiful place for a vacation either during summer by the lake or during winter by the snow clad mountains.

Danke! (Thank You in German)

Innovation systems in tourism

Abstract

This paper will talk about innovation system in tourism development by introducing an innovation model to attract tourism to destination. The model called attractor-based innovation system that is included different parts such as attractor, scene, scene-maker, scene-taker and the arrangement between tourist and other firms. The aim of the study is to scrutinize how the innovation system in tourism can promote tourism firms and extend an attractor-based tourism innovation system in the destination. The paper will examine implementation of such an innovation system in two examples of destinations around the world. The connection between scene-maker and scene-taker will investigate to realize the creation of local networks. The tourist development could depend on the connection between tourism and attractor-based innovation system in the region.

Introduction

Tourism industry is growing faster and faster every day and innovation system plays an important role in tourism development. In this paper, I introduce a model that called attractor-based innovation system that is included different parts such as attractor, scene, scene-maker, scene-taker and the arrangement between tourist and other firms.

The innovation system focus on service products, market change, customer behavior and changing the processes, for instance replace new goods, services, organizations etc. The concept of innovation may focus on the process change although process will be connected to innovation systems.

“Innovation refers to the process of bringing any new, problem solving idea into use. Ideas for reorganizing, cutting cost, putting in new budgetary systems, improving communication or assembling products in teams are also innovations. Innovation is the generation, acceptance and implementation of new ideas, processes, products or services… Acceptance and implementation is central to this definition; it involves the capacity to change and adapt” (Hjalager cited in Kanter, cited from Hall & Williams Hall and Williams, 2008 C.M. Hall and A.M. Williams, Tourism and innovation, Routledge, London (2008). ,2008, p 5).

It has been investigated that innovation hypothesis promoted in connection with manufacturing segment can be implemented to service segment for instance tourism. Service innovations are seldom R&D (Research and Development) based, but running by applied experiences. Innovation in services is incremental which means services and processes are rarely changed. Usually, the process of innovation for service firm is lesser than manufacturing firm because of smaller standard size.

I will investigate that scene-taker as an organization and entrepreneur make an essential role in innovation systems in developing the scene. The purpose of the research is how the tourism innovation system may promote the development of tourism firms.

Literature review

It has been discussed that innovation hypothesis developed in connection with industrialized sector might be utilize in service sector for instance tourism industry (Gallouj, 2002; Vermeulen, 2002). There are some general features for service innovation in tourism, which depends on type of innovation in manufacturing sector (Boden and Miles, 2000).

Innovation in services is coming to flexible aspects of innovation rather than practical manufacturing innovation. For instance, organizational and natural innovation is focusing on social issues rather than technological innovation in industries (Tether, 2005; Gallouj, 2002).

However, innovation may depend on organizational change that related to association between complexes of firms, it also needs support from stakeholders (Sundbo et al., 2001).

However, services and manufacturing have similarities in their basic structure for innovation system, for instance, innovation in product and process are more incorporated in services and service firms are structuring the innovation activities that mean they develop research and development sector. Service innovations are more focusing on developing Information Technology (IT) for service firms (Miles, 1993).

I need to give clear definition of tourism in this part. ”Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes.” (Mattsson, Jan , Sundbo, Jon and Fussing-Jensen, Christjan cited in WTO, 1991)

I need to clarify the meaning of tourism firms. According to Leiper (1999) ”The tourist industry consists of all those firms, organizations and facilities which are intended to serve the specific needs and wants of tourists.” Developing research for tourism innovation has been limited. Hjalager (1997, 2002) has investigated innovation development in tourism sector and he has concluded that innovation policies must focus on other sectors, which are supporting sustainability concept.

Poon (1990, 1993) has investigated diffusion of innovation in tourism sector and he examined the development of small firms in tourism. Sunbo (1998) and Jensen (2001) have studied the possibility of using network for small firms in tourism sector and they concluded that small firms in tourism part are less innovative than small firms in other sectors.

Product and process innovation related to change in the product or process chain, which represent new products to customer or new service in specific destination or enterprise. In customer purchase decision, product and process innovations might play a significant role in tourism sector (Hjalager, 2010).

Process innovations refer typically to backstage initiatives that aim at growing efficiency, production and flow. Technology investments are the anchor of typical process innovation, occasionally in mixture with reengineered layouts for manual work operations. Information and Communication Technology (ICT) has been the base of many process innovations in current decades, and it has involved a major strand of research interest with its own agendas and institutions (Buhalis & Law, 2008).

For instance, process innovation can be established permeating into visitor attractions for the targets of crowd organize. Process innovations which address energy consumption and climate impacts are on the future program for many types of tourism enterprise and not least transportation (Peeters, Gossling, & Becken, 2006).

Experts have considered science and technology as driving forces for innovation, but they recognize environmental factors such as market changes and political issues as contributors. It has concluded that market demand is a major point-de-fix in typical tourism research, and is clearly considered the single most significant driving force for innovation ([Buhalis, 2000] and [Hall and Williams, 2008]).

Process innovations occur broadly in tourism. With an example from winter sports that scrutinize how ski lift capacity is a serious factor in process efficiency and that selection of technology for that reason is critical. Airports implement a variety of technologies that guarantee the mobility of people, baggage, goods and information, in order to improve the challenges of transportation. During recent years, and for a number of purposes, new types of technology have entered airports, for instance, iris-recognition and X-raying ([Cydesdale , 2007] and [Sheller & Urry, 2006]).

According to Pine & Gilmore (1999), “Experiences are a fourth economic offering, as distinct from services as services are from goods, but one that has until now gone largely unrecognized.” “Goods are tangible products that companies standardize and then inventory and services are intangible activities performed for particular client.” (Pine & Gilmore, 1999, P: 2-9)

The concept of innovation system emphasizes the innovation and learning features of the systems. Usually, a system engaged in a type of cluster, special firms, public institutions and other actors that are participate in an interaction system (Porter, 1990; Maskell, 2001). In this system, knowledge is diffused and association recognized, in cooperation enhancing the innovation activities of the firms involved. The innovation system might be considered as a learning system ( Maskell, 2001).

The common notion of an innovation system as performed to the tourism segment suggests a system that is more insecurely coupled than in industrialized and other services (Jensen, 2001; Jensen et al., 2001; Hjalager, 2002) and might more properly be termed a network.

However, the notion of an attractor-based innovation system in tourism sector that I will recommend in this paper is different from the common innovation system approach performed to tourism. It is more precise since it identifies an obvious originator of the innovation system for instance the attractor and the scene-maker and it introduce development process in the model for instance a scene-taker taking over from the scene-maker and making local networks. Accordingly, an attractor-based tourism model is one example of the common innovation system in tourism sector.

After reviewing literature related to innovation system in tourism, the aim of the study will be to expand an innovation model in tourism that has been called attractor- based innovation system. It will continue by investigating two case studies around the world. I have chosen them since I could easily find out the attractor in the cases. I will carry on by introducing different mechanism of the model. The study will focus on investigating the operation of such an innovation model in the long term according to economic and social aspects. I propose to make a comparative analysis between the cases and investigating the operation of the model in different situation and in variety of destination.

Introducing an attractor-based innovation system model

The tourism development, which is, growth in proceeds and revenue and qualitative regeneration, needs innovations. The tourism development in a region may not exactly belong to innovation by a particular tourism firm. Somewhat, it can be dependent on other surrounding factors in the particular area. This geographical area may not, be seen absolutely as a special destination.

However, the purpose of the study has not been to investigate destination’s features, but in the tourism innovation systems such as the attractor – based innovation system must not be limited to just one destination. According to destination’s meaning, the system can be physically dispersed to comprise several destinations or only a part of a destination.

In order to investigate the model I need to focus on both innovation and entrepreneurship. The entrepreneurs develop the innovative courage and the essential structures, procure the knowledge and maybe project capital. Therefore, entrepreneurship is the main requirement for innovation. A community entrepreneur could be defining as a social leader who is constructing networks in the best way.

According to figure 1, the model of attractor-based tourism innovation system is constructed: attractor, scene, scene-maker, scene-taker and cooperative networks between the scene-taker and tourism firms. I will focus on one purpose of the model that called scene-taker, who plays an important role to maintain the system. Nevertheless, I will carry on by explaining components of the model.

The attractor is defined as an event, movement, association or the like that absorbs people to the destination. Attractors generate attention; it is not necessary for them to have special connection with tourism. For instance, the head offices of a famous business or a famous sporting event like

(Mattsson, Jan, Sundbo, Jon and Fussing-Jensen, Christjan, 2005)

The Olympic Games generate large numbers of visitations. Another example could be a music festival in special destination in limited time that we call it cultural or entertainment event.

The attractor transformation happens when it is connected to a situation, what I have called a scene. It includes giving the attractor a clear place and identity in the destination. The main framework for the whole experience of visitors may happen when the attractor is transfigured into a scene. Therefore, the scene is a symbol for the way the attractor integrated with its surrounding situation and conceptualized.

The scene-maker is the person who is creating the scene and he investigates the possibilities of applying the attractor for improved visitation. Since the scene-maker establish and conceptualizes the scene, he can be an innovator. He could be an entrepreneur, he may not maintain the scene and he may not be part of tourism section or he may not profit from the generated scene individually. The scene-maker can be an individual, or an organization, a personal firm or a community.

A scene-taker is a part of model’s function, which can be an individual, a personal firm or a community that is capable to take over and continue from that of the scene-maker. The scene-taker has entrepreneurial personality no matter even if it is a person or an organization. The scene-taker is determined and efforts to maintain the scene. The Scene-taker’s operations may make profit for personal tourism firm by becoming component of a collaborative network rising on the scene.

Propositions connected to model of attractor-based tourism innovation system listed below:

All components of the model must be present to ensure economic and social viability.
The scene-taker is the most crucial function.
A scene must have been created before the transition from the scene-maker to the scene-taker can take place.
If a scene-taker is present, tourism firms get more business if they make an active effort to utilize the scene.
Successful utilization of the attractor (positive effects economically or socially) requires innovation in the tourism firms.
Successful utilization of the attractor (positive effects economically or socially) requires a collaborative network between the tourism firms.
Conservatism of tourism firms in relating to local firms in other sectors impedes attractor utilization.” (Mattsson, Jan, Sundbo, Jon and Fussing-Jensen, Christjan, 2005)
Case studies

I have chosen two case studies which are called James bond island in Thailand and the Book town Hay-on-Wye in United Kingdom. I will explain two cases to understand function of the innovation system and relation between scene-making and scene taking parts. The main reason for case selection was the attractor entity. In the case of Hay-on-Wye, an entrepreneur develops his idea to become a traditional trader. Accidentally he became an owner of the big book collection. Therefore, he started to sell second-hand books and he made the city like book town. He became a major book trader and he promoted the proposal of book towns worldwide. In the James Bond Island case, a local tour operator got used the name of James bond as a trade name for boat trips to this island in Thailand. He used the reality that a scene in one James Bond film had produced in this island. The following data according to cases and respondents opinion has been collected.

According to table 1, we understand how the model according to proposition dealing with economic and social condition. Data collected according to interviewing respondents and they were asking to talk about specific incidents relevant to different parts of model. Respondents must have experiments about events that they were asking about that. The focus was on the connection between events, attractor and other parts of model. For instance, events on how the scene-maker produced the scene from the attractor and relevant to the events situation shifting from scene-maker to scene-taker.

Examining the prepositions

According to preposition 1, an attractor-based model has had positive result in both cases that means attractor as the main part of the model has made business improved. According to preposition 2, the model has had positive effect. The scene-taker can be an individual or organization that in both cases has been an entrepreneur. Relevant to preposition 3, which is focusing on shifting from scene creation to a scene-taker has been successful in both cases. Therefore, in James Bond Island and Hay-on-Wye a scene has been created. According to preposition 4, the positive activity of the firms has not relied. Regarding proposition 5, for the case of James Bond Island, the innovation actions of tourism firms has been positive and in the case of Hay-on-Wye there is no innovation action. About preposition 6, in both cases there is shared association between tourism firms but no connection between tourism firms and other firms. In conclusion, the preposition 7 which in conservatism within tourism firms and other parts have been positive in both cases. Therefore, the scene-taker has a significant effect in innovation system. Innovation depended on positive effect of the attractor in the model.

Conclusion
Bibliography
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Infrastructure Development In The Tourism Industry Tourism Essay

Literature review concentrates the theoretical framework for what is tourism and what is meant by infrastructure development in tourism industry. In this way, this section analyzes possible infrastructure facilities that are causing for development in tourism industry

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

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

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

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

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

simply be visiting family. Travel refers to the act of moving outside of ones usual

Tourism in Sri Lanka contributes significantly to the counties economy. Today more than 150,000 people directly or indirectly depend on this industry. Therefore, there should be clear understanding and policy to make tourism more sustainable and economical to the country whilst attracting many visitors. There are many activities that occurs when people travel (Mill & Morrison, 2002). This includes planning the trip, traveling to the destination, the activities the traveler undertakes as part of the trip, the interactions between the visitor and the host destination.

A destination is first and foremost the important thing for tourism. There should be a place for people to go before anything else can happen. A destination must have an attraction and all the needs of a tourist, such as hotels, activities, and transportation which leads to the demands of tourists. Not only must there be a place to travel but also a place that people will want to visit. (World Tourism Organization, 1975)

And this is where the infrastructure comes to consideration. What is infrastructure at a destination?

Definitions of Infrastructure

In 1983 report, the Congressional Budget Office (CBO) defined “infrastructure” as facilities with “the common characteristics of capital intensiveness and high public investment at all levels of government. They are, moreover, directly critical to activity in the nation’s economy”

The Council established by P.L. 98-501 provided yet another definition of

“infrastructure.” The Council’s report characterized “infrastructure” as facilities with

high fixed costs, long economic lives, strong links to economic development, and a

tradition of public sector involvement

Tourism infrastructure is a component of regional tourist product. Infrastructure is comprised of basic devices, buildings and service institutions, whose existence is crucial to the proper operating of economy and society. Infrastructure is divided into

aˆ? Technical, including basic devices used in transport, communication, gas, heat, power and road industry, etc.,

aˆ? Social, including devices and institutions connected with education, culture, science, health, physical culture and tourism, public administration[1] [Gaworecki., 2003]

Nevertheless, it is a must for any destination to maintain proper infrastructure facilities to attract tourist to the area. Without the basic infrastructure facilities no touristic activity can take place. Therefore, in order to promote a destination first of all there should be proper infrastructure facilities.

Sri Lanka has a huge potential for tourism development with the prospect of peace looming. Opportunities will be presented to open up areas that were previously inaccessible to the industry. Like promote North & East province of Sri Lanka as a leading tourism destination and a Gateway to South Asia. This will include providing diverse tourism experiences and exploiting resources that have been underutilized by the sector so far. Which will generate foreign exchange and also it will enhance the livelihood of the people in the province. To fulfill this mission there must be proper infrastructure in the region. By facilitating those basic infrastructure will enable more visitor friendly environment and by which more tourists can attract to the area.

Below are some charts which shows accommodation capacity in all over Sri Lanka and tourist arrivals to the country from 1999 to 2009

Accommodation Capacity (Graded) 1999 to 2009

Official Tourism Receipts (Rs.mn) 1999 to 2009

Tourist Arrivals 1999 to 2009

Summary

This chapter has provided the literature for this study. At the very beginning concept of tourism and infrastructure were defined. Afterwards effects of infrastructure were discussed thus poor infrastructure can lead to negative consequences. Subsequently measurement of infrastructure has been presented. After that it describe the survival of the tourism industry is based on the development of the infrastructure development. Furthermore infrastructure development will improve the quality of the life of the people in the said region.

Information Technology In The Tourism Government

Involving information and communication technology on a range of modern methods and techniques used to simplify a particular activity and lifting tool, a group gathered the necessary equipment to process information and circulation of computers and software and hardware for saving and retrieving and electronic transport across wired and wireless means of communication in all its forms and different kinds: written, audio and video, which enables two-way communication and teamwork and provide transmission of the message from the sender to the recipient; through closed networks and open; and globalization has allowed information and communication technology to benefit from services a four-Twenty hours (24 h / 7 days), from any point on earth, especially with the spread of electronic financial settlement of transactions on Line.

Nowadays technology involves every aspects of life. One of these aspects is tourism. People who work in tourism sector use technology to execute their work. Technology helps to distribute information about different places for tourism. Tourists can gain information from the internet and know the accurate things to decide the best places to visit. Technology makes the work easier related to the tourists need like hiring cars, getting rooms and tickets. It becomes very easy register your information online. Tourists will have more time to enjoy themselves because their information has been already registered online. Tourism use technology to make records about their usual customers to know their favorite food, places and activities to attract them to come again.

Briefly this issue will discuss the concept of Information technology in tourism industry and will cover those main points:

Concept of information technology.
E-Government.
Information Technology and Tourism.
E-Tourism.
The importance of e-tourism and its impact on national economy.
Tourism applications.
Government internet website
Information Technology?

Information technology mean possessed the manufacture and storage and dissemination of information by a microelectronics-based computing and communications. When we say Information technology that means, computer programming, internet, computer engineering, and technician and so on. All of that make big change in tourism industry so; the government should use this technology to be number one in this sector.

E-Government:

The common definition of e-government as a network of computer systems that enable public access to a large number of government services and transactions automated, online or through other electronic letters . The intellectual and political content of the e-government, and historical and cultural context that led to it.

The concept e-government integrated mean the effective use of all information and communication technologies in order to facilitate the daily administrative operations of the government sectors.

We can say in light of the foregoing that the electronic government in terms of the concept is: the environment where it is information be for all by easy way

IT and Tourism:

Because the tourism industry is rapidly changing and evolving. It was necessary to use information technology to keep pace with the evolution in the world and is noted on this basis that the tourism market has been affected a lot of this technology over recent years has been known an exponential growth in e-tourism Through the Internet.

The countries which used the e-government and considering tourism as one of main economic recourse faces to use technology in this sector and this helped to appearance of the concept of E-Tourism.

E-Tourism:

Appeared a few years ago the concept of e-tourism, and dealt with many international organizations of different applications and their impact on increasing tourism growth, especially in least developed countries, which constitute the tourism revenues, a large proportion of GDP. Has contributed to further spread the concept and applications of various factors such as high proportion of the contribution of e-tourism in the total international e-commerce, and the resulting integration of this concept in the institutional structures of the bodies involved in tourism from the reduction in the cost of tourism services provided and thus prices, and the development of tourist product submitted in the development of new touristic activities consistent with the different segments of tourists, as well as increasing the competitiveness of tourism enterprises, and the consequent increase in the value added of the tourism sector in the national economy.

We can say the e-tourism is “Pattern of tourist transactions are executed through the use of information and communication technology.

The importance of e-tourism and its impact on national economy

The importance of e-tourism, which provided huge benefits for both providers of tourism services for tourists or tourists themselves , which contribute to overcome traditional barriers in the typical tourist transactions, and most important of these benefits :

1. Facilitate the provision of information, which depends on tourism industry.

When we use the technology it is will be easy to get information about tourism destination.

2. Reduce the cost of tourism services provided.

Because the services provided online with lees price and time .

3. Ease of product development, tourism and the emergence of new tourism activities in accordance with the different segments of tourists.

That happen when we use the technology to know what tourists need and what his her opinion about certain destination.

4. Increase the competitiveness of tourism enterprises.

That depends for how we use the Information technology in our work .

All of that helped to increase the benefit of tourism in national income so; the use of information technology is strategic choice and necessary.

Tourism applications:

Before tock about tourism applications in IT sector we should know who use the IT. In general we can divide them to four groups which are:

Tourists:,
Travel agents.
Service providers..
Tourism offices.

In tourism we use information technology in airlines, hotels, car rent, Tourism offices and travel agencies.

The government use information technology in several way s for example, marketing research, promotional plan and exchange the information between the countries and so on.

Also the government use computers, Mobil phones, and satellites to control and administration the staff and the process in easy ways.

Government Internet Website

It is the biggest and useful part of information technology and the government use it to promotional the country and market it in good ways.

This website provides all information for all and it easy to access and get what you want about the country so, that will be increase the number of visitor.

Moreover the government uses the internet to provide direct services like, reservation, tickets and other things.

Conclusion:

In conclusion, I can say the information technology effect the tourism industry in different ways and change day by day. Also the exact impacts are far from clear, the future of e-tourism. In the end of this report we can see the important of information technology in tourism sector and who it is affect it. In my opinion the information technology becomes the important issue and I have the right to say no live without information technology.

Information Technology In Marketing Of Tourist Destination Tourism Essay

Information technology is becoming more and more the crucial element of everyday life. It is widely used in business activities, as well as in leisure time at home. This also applies to tourism as a form of human activity. Tourist enterprises are significantly using information technology for marketing purposes. This applies to the field of support in marketing decision making as well as the field of communication and sale. However, for the purpose of marketing, information technology is used in tourism by public sector, specifically by national, regional and lokal tourist organizations dealing with marketing for their areas (countries, regions, places) as tourist destinations. Thus this paper takes into consideration the possibilities of the use of information technology in tourism destination marketing. Explained are various information technologies, applied in tourism and their present and potential role in the marketing of destination is assessed. Defined is the term of electronic market, together with electronic marketing as marketing activities carried out on electronic market with the assistance of information technology. The need to incorporate electronic marketing in the whole strategy of tourism destination marketing is also pronounced. For this paper relevant literature was used, mostly from the field of marketing, but also of other economic and historic methods.

Keywords: marketing in tourism, marketing strategy, tourist market, information technology, electronic marketing, destination marketing systems.

INTRODUCTION

For successful and efficient business in an environment characterized by dynamism, information and globalization, it is necessary to be flexible and react quickly to any changes on the market. Such company`s reaction may be only the result of continuous, rapid and accurate flow of information enabled by information technology and information systems. In industrialized countries, information and knowledge represent a new base of overall operation, present in all spheres of production, tourism, trade and services, to non-economy and state administration.

Continuous development of information and communication technologies during the last decade has had a profound implication on tourism. In the modern business conditions, for enterprises in tourism, it is important to consider two forms of technological competencies in order to achieve competitiveness. These are the areas of computer technology and communication technology.

Computer technologies include achievements in the field of hardware, software, etc.. Achievements in the field of hardware provide almost limitless opportunities for the development of software programs designed to solve any problems. Communication technologies enable solving the problems of transfer of information. Message transmission rate is continuously increasing.

Application of ICT in enterprises in the tourism, digitize all processes in the field of tourism, catering, travel, etc.. Also, these technologies affect all business functions in the tourism industry: sales and marketing, finance and accounting, procurement, research and development. At the tactical level, this includes e-commerce and application of information technology (IT) to maximize efficiency and effectiveness of organizations in the tourism industry through the reduction of operating costs and communications costs. In addition, IT enables more effective strategic decision making through improved management processes, control procedures, more efficient response to changes in the environment and similar. Constant interaction with customers and partners helps to be more flexible and competitive in pricing, which can increase the yield of the company. Sales control enables company to adjust products and prices to the requirements of consumers, as well as to initiate promotional companies and similar, in the quest to maximize sales.

The efficiency of the tourist economy of a country or destination will largely depend on the total computerization of business enterprises in tourism, and the availability of tourism products presented through the modern computer technology. The effects of the implementation of information technology are numerous and primarily relate to better information and faster transaction, to significantly improving operations in many areas on the tourist market.

1. CHARACTERISTICS OF TOURISM DESTINATION MARKETING

Tourism is a complex, open system which is composed of set of subsystems and their interaction of resulting socio-economic and natural phenomena and relationships. Its subsystems, themselves are composed of a set of own elements such as: system of holders supply (accommodation facilities, restaurants, airlines, retail trade, built attractions, activities, etc.) subsystem intermediaries (tour operators, travel agencies), subsystem of business associations and chambers, a subsystem of the public sector (state authorities responsible for tourism, national, regional and local tourism organizations, tourist information centers, etc.) a subsystem of tourists (consumers), a subsystem of residents (both because of the importance of their attitude towards tourists as well as user of the same facilities and services), as well as related services subsystem (guide service, educational institutions etc.).

Tourism is an activity that involves movement and stay of people in such places that are not places of their permanent residence. They visited other countries, religions, settlements, and this is called by a name aa‚¬” a tourist destination.

Since there is no place on earth, which tourists do not visit, it should be emphasized that, in the context of modern tourism, a place can become a destination only as a result of two sets of related activities: the development of facilities designed for meeting the needs of tourists who visit the destination and the existence of the destination marketing activities such as the tourists offers in places where it is needed.

Marketing in tourism is management philosophy by which holders of tourist and business policies tend to create and maintain the target group of tourists through the identification and (effective and efficient) trying to meet their needs, and on that basis to achieve their organizational goals and social interest.

Today in the international tourism, countries, regions and cities are competing as a destination, not just companies. Marketing of products of tourism destinations can not be left only to the enterprises because they are not usually capable to support independently, financially or otherwise such efforts. For this reason it is necessary that such activities are done by Tourist policy holders, and various state bodies which are responsible for tourism (such as public sector). But we should not underestimate the role and importance of the various initiatives of the private sector.

The development of mass tourism has threatened and somewhere damaged not only natural but also man’s total environment. It is necessary to take into account the long-term interests of society (ie, destination) and preserve the environment (natural, socio-cultural and other) so that the tourist destination would not become a victim of its own development. Therefore, the application of marketing in tourism assumes the acceptance of concept of socially responsible marketing.

Marketing in tourism, in general, has a number of specific details that are related to tourism as an activity. These are: intangibility of services, their connection with those who provide them, variability of quality, the impossibility of their storage, significant time distance between the decision to purchase and own consumption, often weak loyalty to the brand, focusing demand to offer, seasonal concentration of demand, its heterogeneity and flexibility, heterogeneity and inelasticity as well as high risk in buying their product.

It should be said that besides the numerous features of marketing in tourism in general, a tourist destination carries additional specifics that arise from the following characteristics: Tourist destination, regardless of physical covers, usually has a multifunctional character; spatial coverage tourist destination, that is seen by tourists, often differs from the one that is seen by the destination authorities; It may happen that some sets of objectives of public and private sectors do not overlap or that they are in conflict; the destination method of using the product differs substantially from the use of any product or services, and finally, those who manage the destination (which is the public sector), have little or no control over the various elements of the tourist destination.

Specific services include marketing and use of specific marketing concepts, besides the one related to the four marketing mix instrument. It is about internal marketing and interactive marketing.

Destination marketing organizations (DMO) can implement internal marketing on three levels: the micro level, ie. within the DMO, where the main target audience is the personnel employed in the DMO, then at the level of tourist activity, where the “target” is the employees in the industries of tourism and finally at the destination as a whole, where the target audience is the residents. Talking about interactive marketing opportunities the implementation of these activities is smaller than in the case of internal marketing. It is of great importance for the marketing of a tourist destination to maintain and improve the relations with tourists that are usually committed towards attitudes and behaviors of service providers. Interactive marketing has its place in the domain of tourism information centers and checkpoints, through constant contact, by providing information, assistance and in processing complaints.

2. INFORMATION TECHNOLOGY IN DESTINATION MARKETING

Information technology, by itself, can not be a source of lasting competitive advantage of tourist destination. It may contribute hardly to the competitive advantage through its impact on strengthening the microeconomic basis of competitiveness which consists of human resources, physical infrastructure, administrative infrastructure, information infrastructure, scientific and technological infrastructure, developed domestic market and competition, sophisticated and demanding request.

In the marketing of tourist destinations, its application is found in a large number of information technologies: teletext, videotext, information kiosks, computer reservation systems, global distribution systems, destination marketing systems, databases, expert systems and the Internet.

2.1. Teletext

Teletext is a technology of one-way broadcasted information through continuous transmission of groups of information in cycles from one center, along with broadcasted television signals. The idea of this invention was patented in early seventies in the UK, and the idea was to free the lines of TV signal which were not used for transmission of video signals and to assert an additional digital signal. The digital signal carries the information presented in the form of numbered pages, which can show text and images. Decoded information in order to be read on screen requires TV with decoder. Pages of information are broadcast in cycles, and the user, with the help of the keyboard, select the desired page. The disadvantage of Teletext, in this regard lies in the fact that it must wait until the desired page appears in the broadcast cycle. This limits the capacity of several hundred pages which means that the selection and detailed information are limited.

For the purposes of the tourist industry, the home information system, can provide updated information, such as weather forcast, traffic conditions on roads, time of departure and arrival of aircraft and trains etc.. Besides this, there is the possibility to make a purchase, for example, which means to buy the package of tourist arrangements and to buy for it by the phone with the credit card. This is particularly suitable for the package of arrangements that are unsold just before the start of travel.

2.2. Videotext

Videotext is an electronic system for sending information and messages that allows two-way communication, usually by telephone, with the information shown in the form of text or graphics on a custom TV or some other terminal such as personal computers.

Videotext services are used both in private and in business purposes. Some of the information can be obtained via videotext services include: news and weather, training or education at home, tourist information, catalog sale. Besides this, videotext can be used to perform the reservation of tickets, cinema, various calculations (eg calculation of interest), then to send messages between users.

Videotext can be publicly accessible or private, or restricted to private users (so-called closed-user group). Publicly available videotext was developed in many countries. Travel agencies, particularly in the UK, often use videotext. Thus, the British passenger agents, through any of the existing videotext system, can get information about departure and arrival times, and prices of all major air and ferry companies, and prices on the rent-a-car services, the remaining places in charter flights and the remaining package information on visas, exchange rate etc..

Videotext in the tourism industry is far more used to getting information rather than booking. When it comes to usual travel (leisure travel) especially the package in the UK, in most cases, these products can be booked on-line exclusively through videotext. On the other hand, in Germany, for example, tour operators in this regard are less restrictive, and through videotext book only a few percent of the package arrangement. Booking services for business travelers, for the most part use the computerized reservation systems, airlines and system-START Amadeus.

France is the only country in Europe (and in the world) with the wide use of videotext system in business and private purposes, with <> device in millions of offices and homes. A study done for the French national telecommunications company and the Ministry of Tourism in 1991, has shown that the use of <> for collecting information on tourism services among its customers is popular, although lagging behind the brochures and information presented by travel agencies.

2.3. Information kiosks

Development in the field of information technology has led to the appearance of information kiosks. It is the kind of information system for the independently access of the client and autonomously usage. New generation systems are of multimedia characters, consisting of computers, speakers, keyboard (required if your monitor is not the type of touch-screen), CD-ROM drive, sometimes the small printer and stored in robust housing. They are usually set in the hotel lobby, shopping centers, at the airports, bus and railway stations and on similar places. Users (tourists) can freely approach and use it to get the specific information (through text, images, video and sound), and to book the accommodation. The features of information kiosks are: [1]

Good balance in the use of different media,

Good quality content,

Simple but clear and understandable organization of content,

Consistency in the way the material is fragmented, connected and presented on the screen,

Consistency in the presentation of different functionality and

It links clearly the meaning and function (sometimes with explicit explanation).

Information kiosks have also disadvantages. There may be negative impacts on the environment (noise and general excitement). Availability / accessibility of kiosks may depend on the working hours where they are located. Also, the frequency locations lose their privacy in obtaining the information through the kiosks, as passers and those waiting in line for the kiosk can see (and hear) the information that is broadcasted across the screen of the kiosk.

In any case, information kiosks are widespread in tourism information technology and are devoted to the visitors on the destination. Their function is to inform the tourists and persuade them to stay longer in the particular destination as well as to spend more money there.

2.4. CD-ROM

CD-ROM (Compact Disk Read Only Memory) system allows the laser compact disc to store colored recordings: hotel, gallery, landscapes, cities etc. and to display them by color-screen personal computers that are installed in travel agencies. This new technological innovation is often called “electronic brochure”. It allows potential tourists to view any selected destination or partial tourist products and facilitate a decision on purchase. Electronic brochures can be made by national and regional and local tourism organizations, tour operators, hotels, owners of computerized booking system CD-ROM (or video disc) is very suitable for mixed use with videotext system. Namely, videotext has access to large databases that are updated continuously, but is limited to their text and simple graphic display. On the other hand, video-disc is inflexible from the point of updating the information (once registered the information on laser compact disc can not be deleted), but the possibility of displaying static and moving images of high quality and sound. Thus, for example tourists` travel agency or tourist information center can require hotel accommodation in a particular destination. Videotext on its page gives information on pricing and availability but the image of the hotel, room etc., are shown by a video-disc.

2.5. Computer reservation systems, tourism enterprises (CRS)

Reservation systems are the most important element in the system of distribution of tourist services. Their formation is the result of the desire of management in tourism enterprises to establish pre-booking system, which, with price changes and the formation of waiting lists, is one of the techniques of controlling demand in the short term, without changes to the offer. In addition, the reservation system enables organizations whose resources are not limited to better demand and accordingly to that it takes steps to increase supply. Also, CRS enables providers of tourist services to maximize capacity utilization through price changes and rearranging the package of services, and sometimes through the transfer (redirect) consumers with the products whose demand exceeds the offer to those with weaker demand.CRS may be organized in one of three ways: [2]

aa‚¬? As manual (manual) system, where the requirements are taken by the phone, and then enroll in these special books, diaries, and tables;

aa‚¬? As a computerized system where the requirements are also received by phone, but all records of the reservation is processed and stored on a computer;

aa‚¬? As a fully automated computer reservation system, for which agents have directly access (on line) from terminals in their offices and perform booking.

2.6. Expert systems

Expert systems have found their first application in a highly structured problem solving in science and engineering. In the field of tourism about they appeared during the mid-eighties of the last century, when it began with the development of prototypes of these systems for operational and physical management of tourist companies, especially for airlines and large hotels. Expert systems contain the knowledge of experts in such form to enable them to bid for specific problem solutions or make intelligent decisions. Expert system should have the ability to explain and justify its conclusion, as well as the ability to do data on actions with uncertain consequences. Characteristic of these systems is that they are able to remember the good solutions and include them in the bank of knowledge for later use in solving other problems. For management purposes, the adoption of such systems and learning about them are essential.

The relatively recent literature, which covers the area of application of information technologies in tourism, began to till the issue of application of expert systems in advising tourists in selecting the most appropriate destination. Expert systems in this regard could be used as agents of assistance (travel counselors) in providing assistance to tourists in the choice of destinations and services in total. The tourists can find the same application but without the agent.

What are the prospects in the area of application of expert systems in destination marketing? Apart from the expert systems which should help in the selection of one, the most suitable destination between multiple options, which in this case are (controlled) means of marketing, there remains the possibility of applying for a narrower or wider destination, in order to assist in choosing the best routes and itineraries, and according to preferences of tourists, regardless of whether the tourists had direct access or through an agent. Expert systems have not had wide application in this area or agents in the area of assistance in giving advice to tourists. The reason for doing this, is a great complexity in modeling preference for intangible products and expand of the scope of influence on decision-making process. The immediate future will not bring significant changes in this regard. We should expect the first concrete attempt to introduce expert systems in travel agencies, while the process of implementing the expert system with direct access will go slower except, perhaps, over the Internet.

2.7. Tourist information systems on the Internet

The rapid development of Internet at the end of 90 years has brought a revolution in tourism. The Internet has moved the gap between consumers and businesses and it enables interactive communication and trade. Tourism has always been a complex activity, which is based on a partnership between the individual organizations within a defined system of values. Distribution channels in tourism include the number of stores which include travel agencies, tour operators and other organizations. B2B Internet commerce has enabled many organizations in the tourism industry to redesign its business operations and expand their business models.

We can say that almost every serious company in the tourist economy in the developed countries, has its own website. This applies to the airlines, hotel chains, RAC companies, railways. But in less tourist companies that are seen on the Internet as a relatively inexpensive medium for getting the international market. It is interesting to note that due to the relatively rapid acceptance of the Internet by the tourist customer and there occur authors who speak of the end of the tourist agencies and the absence of the needs of their mediation. As well as it shows the need of the agencies to get know its customers, and the profile of the tourists (in fact develop Database marketing) so not to remain without them.

With the new information technology, especially Internet, Marketing department is changing rapidly in five fronts: [3]

From mass marketing to database marketing. Given that companies tend to all aspects of the organization work smarter, making more with less, the cost of unsuccessful advertising will grow. For these reasons, marketing experts must, use the technology of data gathering to target more precisely desired segments of their propaganda. This involves collecting more customer information and customizing the message by using the information needs of the target audience and to make the differentiation between products and services.

From mass media to interactive media. Customers increasingly want to choose when, where and how to meet the holders offer. This means addressing the individual needs of clients and services in a way that the client prefers. Interactive media will play a critical role in this process and it should be involved in marketing strategy at the first opportunity.

From the market share to the relationship wealth. Since marketing departments can serve rather than sell their performance should be measured differently. The emphasis will be on the wealth of relations with consumers, rather than just the market share. To be effective, this transition must be strongly communicated to all levels of the company.

From sales to service customers. Marketing no longer means to convey your message to the widest possible audience. It means to take care of customers. It moves into production, logistics, customer service centers, help desks, helping to remove barriers in the way of sale to consumers.

From technologically sophisticated to the most creative. The Internet was not for many marketing departments important thing but it was an interesting thing. Today, it is a basic requirement in all marketing strategies. In the past, the best marketing experts, they were most creative. Today, the best marketing experts are those who are most technology sophisticated. The importance of creativity remains, but the importance of having technologically sophisticated use of marketing, gives opportunities for geometric growth.

Internet is not used only for tourist information, but also for sale. Association of American hotels and motels (AHRMA) points out that electronic sales service accommodation over the Internet beginning of the XXI century has reached a value close to 3 billion USD. [4]

All important tourist destinations of the world have their presentations on the Internet (or more accurately on the Word Wide Web). It is a medium that no one wants to drop in their marketing activities.

Our country is connected to the Internet from 1996. year. Since then a number of tourist companies, as well as some destinations, develop their presentations on the Internet. Yet it is increasingly used to collect different information in order to find new content, for monitoring communication, for creation and design of tourist services.

CONCLUSION

From the standpoint of marketing tourist destinations, teletext and videotext have almost no potential. CD Rom has been a traditional marketing tool known as “Electronic brochure”, although a number of destination presentations on the CD Rom suffer from the stereotype views. Information kiosks are designed for those who have already visited the destination, in order to extend their stay and increase consumption. In that sense, it is a widespread technology. Computer reservation systems, tourism companies, including global distribution systems, are oriented to increase the efficiency of sales, therefore the transaction. Therefore, the weak interest for a marketing destination is expressed. Many of the destinations marketing organizations (DMO) with the construction of destination marketing systems make their destination more accessible electronically. Experiences are different, and it is obvious that we should wait with giving the final score. Database of visitors can be a solid foundation for database marketing. In fact, it is necessary to set up and develop a coherent system of collecting data on visitors, in cooperation with the private sector (eg tourism industry). Expert systems, for now had wider application in the area of destination marketing, and the first attempts will be related to the operation of travel agencies. The Internet probably carries the greatest potential, particularly because of the possibility of combining with other information technologies. Destination marketing organizations is already using the Internet for their activities. Despite its limitations, it is certain that the Internet will have a significant place in integrated marketing activities of tourist destinations.

Influences On Air Asia And Its Evolutio

Air Asia, the market leader of low cost carriers in Asia, shown on the good record of bringing about innovative idea into the industry. The industry itself, especially in the Asian region, is observing a higher growth rate of passenger and profitability. The report examines the organization’s key business structure and operation, products and provides summary analysis of its key revenue lines and strategy. The analysis looks at the impact of external and internal factors on the organization, and evaluate it responses. Essentially SWOT and PESTLE analysis provide a simple framework through which strategic options can be identified in which Air Asia operate. The SWOT process will start by examining the strengths of the Air Asia of today. One of the most dominant strengths possessed by Air Asia is the adding of new Airbus A320 aircraft to its fleet. Airbus A320 gives Air Asia the largest, youngest and most modern fleet in the region. Another strength of Air Asia is the upgrading of the online booking system, in which will offer the ability to passenger to check in online and printing out boarding passes. An opportunity available to Air Asia is fastest growing market in China and India. Both countries give a huge opportunity for Air Asia to expand its business in the region. In the threat part of the analysis is concerned with identifying parts of the Air Asia that might affect its business performance. In recent years a whole class of low cost carriers such as Singapore’s Tiger Airways and other airline carrier coming into the market. PESTLE analysis is to conduct an environment analysis in the context of Air Asia international business operations, describing the major variables involved and the impact of the specific threats and opportunities confronted by Air Asia.

The second part of the report is trying to analyze the policies and decision making will be influenced by those human capital and information technology involved. Air Asia has locked a partnership with CAE for mutual benefit where CAE will provide pilot training for all of Air Asia current and future pilot in the region. Air Asia also has locked a partnership with its IT vendor which can constantly improve the system and offer a wide range of distribution channels to make booking and traveling easier for its guests.

iv

Air Asia has built the Air Asia Academy to develop high quality manpower in ensuring seamless business growth. It operating results underscore two major highlights. The first is how effectively the employee worked to meet customer needs and the second is how well the team manages the robust capacity growth. A number of positions are normally improved to increase its competitive advantages and proficiency, which enables Air Asia to achieve and maintain the business growth. The area of improvement included service, strategic alliance and product improvement.

v

INTRODUCTION

Air Asia is most popular and profitability organization since Air Asia introduced its low fare, no frills concept in December 2001. Dato’ Tony Fernandes, who introduced the first budget no frills airline, Air Asia, to Malaysian with tagline “Now everyone can fly”, Air Asia’s philosophy of low fares is aimed to make flying affordable for everyone (AirAsia.com 2008). It is also aims at making travel easy, convenient and fun for its guests. The airline now flies to over 48 destinations in Malaysia, Vietnam, Myanmar, Cambodia, Thailand, Indonesia, Macau, China and Philippines (AirAsia.com 2008). Air Asia formed two successful joint ventures in Thailand through Thai Air Asia, and Indonesia through Indonesia Air Asia in 2004. Where Air Asia holds 49% stake in both companies. Now, Air Asia expanded its fleet from the original two to twenty eight, and revolutionized air travel in this country by offering incredibly low airfares through its innovative sales channel (AirAsia.com 2008). To date the Air Asia group, has carried over million passengers per year.

In the history of Air Asia, we can identified how diligent and smart of Dato’ Tony Fernandes to operate to be ultimately constructed by external and internal factors on strategic planning to ensuring alignment during implementation of organization success. We all know Air Asia, the heavily indebted subsidiary of the Malaysia government owned conglomerate, DRB-Hicom, was losing money big time. Instead of starting from scratch, Prime Minister Tun Dr. Mahathir Mohamad advised Fernandes to buy an existing airline instead (Wikipedia 2008). Fernandes mortgaged his own house and sank his savings to acquire the company, comprising two ageing Boeing 737-300 jets. Air Asia was acquired at RM 1.00 with liability of over RM 40 million worth of debts, and transformed it into an industry player (Wikipedia 2008).

For what happened on this date in history, coming just after the September 2001, undoubtedly the worst day in the history of commercial aviation when nobody wanted to fly, everyone scoffed at his idea, predicting that the company would fail miserably.

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Yet, just one year after his takeover, Air Asia had broken even and the debt was paid off. For the year to June 2002, a RM 30 million net profit was recorded on revenue of RM 310 million (Wikipedia 2008). Why it happened? What is well made decision to enables Air Asia to achieve and sustain a competitive advantage?

The world has changed. Organization has had, and is having significant effects on the way how to make better decisions in organization. Policies and decision making are inherently concerned with the future. Because of this the organization is often concerned with assessing in the future as an input to developing organization strategic plans. This is particularly true in the area of environmental analysis in organization planning. The development of strategies inevitably involves choice between alternatives strategies and hence the need for analysis and decision making.

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A. Task 1
INTERNAL INFLUENCES ON AIR ASIA
2.1 Organization Vision and Mission

Organization vision commonly provides a clear indication of the overall purpose of the organization. It will describe the main activities of the organization and the position or standing that it wishes to achieve in the future. Organization vision of the Air Asia is to continue to be the lower cost short haul airline in every market its serve, delivering strong organic growth through offering the lowest airfares at a profit (AirAsia.com 2008). It is important that the vision stretches the organization but it must be realistic.

2.2 Organizational Structure

The structure of an organization refers to the patterns of relationships among positions in the organization and between individual members of the organization. Its will help to define the tasks that people do, the allocation of the responsibility and authority, the roles that people play and the relationships between them. The organization structure and principal operating of Air Asia include three executive vice presidents, for operations, commercials and people, serve under the CEO and the deputy CEO. The senior manager of the network operations, who contributed most of the information in this article, reports to the executive vice president of operations (Idris, 2007). In general, the organization structure of Air Asia also included flight crews, which people responsible for the operation of the aircraft, such as pilot and flight attendants. Ground crew, people will responsible for operations at airports. They are include gate agents, ticket agents, flight dispatchers, baggage handlers, electric system technicians, passengers’ service agents and airframe and power plant technicians.

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2.3 Organization Policy

The main organization policy of Air Asia is its will provide reliable airlines services to its customers through its various divisions, according to the requirement of customers and in compliance with statutory regulations and industry norms. Therefore, it’s emphasized in leanest cost structure; maximize shareholders’ value; safety; passion for guests’ satisfaction; transparency and human capital development (AirAsia.com 2008). The various divisions will formulate quality objectives for achievement of his policy and strive to continually improve the quality of service by periodically upgrading the knowledge and skills of its personnel.

2.4 Business Strengths

One of the best known frameworks done by Air Asia is offering the low airfares in the region. This concept is main focus to lower cost perpetually. As business environments become more competitive and in some cases more volatile, business organization have become more concerned about the “price”. No matter how clearly history we know, there will be time again when we have to engage in a price war. Therefore, if the airlines get the passenger to their destination on time at low airfares, people will fly the airlines. That was why Air Asia introduced the first budget no frills airline, to Malaysians with the tagline “Now everyone can fly” (Wikipedia 2008). And that is why it is main focus to lower cost perpetually, so that it can evade and fend off any sort of irrational competition.

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2.5 SWOT Analysis

SWOT analysis can play a valuable part in any strategic planning, it provide a simple framework and common language through which strategic options can be identified.

Strength

Pioneer in no frills airline services in South East Asia.

Cheap rate of flight.

Convenience of passenger to purchase air ticket online.

Recently purchased Airbus A320s making it largest customer of the type.

World class airport facilitate travel. E.g. Kuala Lumpur International Airport

Weaknesses

Reliance so much on computer for booking and for the storing of information could be risky due to failures and viruses.

Marketing primarily focused on ASEAN market.

Underdeveloped distribution system.

Ineffective use of horizontal distribution alliances.

High fuel prices.

Opportunities

Able to penetrate many ASEAN market and Western market.

Airbus A320s enable Air Asia to carry more passengers.

The coming Beijing Olympic game 2008

Proximity to large and growing Asian markets, such as India and China.

International campaign launch to promoting Malaysia. For example Visit Malaysia 2007.

Threats

Competition from Singapore’s Tiger Airways and other airlines carrier in South East Asia.

Changing patterns of buying behavior.

Deteriorating of Air Asia service base on many complaints.

Terrorism threat.

Legislation could impact.

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The strong market share in South East Asia is one of the strategic advantages as it will be the springboard for Air Asia future expansion, growth and profitability. One of the most dominant strengths possessed by Air Asia is its ability to follow the changes in a market that is continually changing. For example, Air Asia seeks to purchase new Airbus A320 aircraft to its fleet. As the number of Airbus A320 aircraft increases, it will be able to cater the largest customer and providing bigger seating capacity, wider aisles, greater comfort and a quieter ride. An opportunity available to Air Asia is fastest growing market in China and India, and the coming Beijing Olympic game 2008. By having a large market it gives a huge opportunity for Air Asia to expand. However, even with the best strategies in place threats can occur from unexpected directions. For example, 9/11/2001 attack on the World Trade Center. Many people are still reluctant to fly and market swings away from airplanes. Another threat to Air Asia is new competitor emergence in the airline market, such as Singapore’s Tiger Airways and other airlines carrier in South East Asia. This might affect the business outcome of Air Asia. Therefore, how the business is performing and copes with the issues is important to the organization move forward.

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EXTERNAL INFLUENCES ON AIR ASIA
3.1 PESTLE Analysis
3.1.1 Political

PESTLE analysis assumes that the success of an organization is dependent on the way in which the organization manages its interaction with its external environment (University of Sunderland, 2005). The environment presents the organization with series of challenges, risks and opportunities. Such a business would clearly be affected by changes in the political environment. One of the most obvious aspects is some governments attempt to control the industry sector and may impose conditions to protect the local industry for barriers to new entrants. Therefore, in order to ensure smooth growing, Air Asia must analysis and aware the local political stability and governmental function.

3.1.2 Economic

Economic trends such as changes in net disposable income levels could also influence the business performance. If disposable income declines the clearly the effective demand is likely to go down. Since the economic crisis in ASEAN on 1997, an individual cannot afford to pay a higher rate had ever traveled in a plane. However, Fernandes believe Malaysian travelers would embrace a low rate air service that will save them time and money, especially in a tight economy. That was why he copied one of the worlds most successful no frills carrier’s concepts, Ryan air out of Ireland (Wikipedia 2008). Finally his has to be recognized that one of these strategies will be success in the business as a whole.

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3.1.3 Socio-Cultural

Socio-Cultural changes are often long term in the impact but should be monitored all the same. Shift in values may for example affect general attitudes towards traveled in a plane, and changes in business environment with which people can find the best choose of employment in other countries. Attitude changes and demographic changes will change the market as well. Therefore, low airfares promote by Air Asia will delivering strong growth in airline market share.

3.1.4 Technological

Technological change may affect the business outcomes in many ways. Simple issues such as the development of internet online booking system launch by Air Asia in recent year. This made Air Asia offer the ability to check in online and print out boarding passes online (Wikipedia 2008). There may influence the size of the potential market and the number of people able to travel to other countries. Increasing access to the internet may change the way in which the customers can booking the air ticket immediately, neither to wait long queue in the counter. Potential customers may also have changed expectations as a result of experiencing new technology. As a result, improved channel distribution has meant that, increasingly, customers are exposed to, and aware of the products in other parts of the world.

3.1.5 Legal

The legal framework of a country influences organization strategy through its laws regarding such areas as industry regulation, employment conditions and so forth. However, in today business world, Air Asia needs to take into the consideration in an environment of complex law and regulation. Similarly any general legislation that affected taxation or employment would affect the business outcomes and could affect profitability. Moreover, government bailouts for competitors may lead to unfair competition.

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3.1.6 Environment

Changes in the physical environment, roughly viewed as comprising the natural and man- made environment, affect our daily lives and the functioning of the organizations. In western countries, pollution has become an important political issue and legislators are elected as member of green parties (Media 2008). Indeed, in many countries, the strength of the environmental movement has led to strong legislation affecting organizational production system and products (Media 2008). Air Asia needs to consider the environmental impacts of its strategies and take into account a broader range of interest group. For Example, reduce fuel consumption and energy. In addition, high utilization of resources is enforced to minimize wastages (AirAsia.com 2008).

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B. Task 2
KNOWLEDGE MANAGEMENT AND THE LEARNING ORGANIZATION
4.1 Training and Development

Training and development will concerned with the provision of learning, development and training opportunities which ensure that the employee has the skilled, motivated and committed it needs now and in the future. Air Asia stresses the training and development of the staff to keep abreast with changes. The normal one week on the job training is given to new employees. Training is ongoing for three months within the period of probation. Employee skills and knowledge will be upgraded with ongoing course using Air Asia’s academy (Idris, 2007). It ensures that the employee has the skilled to handle multiple jobs in the organization. For example, the cabin crews are not only serving passengers on board but do multiple tasks such as ensuring passengers’ safety, helping passengers, and ensuring cleanliness of aircraft interior. The training will help the employee to facilitate change in the external and internal environments, in which they are trained to learn new skills and develop new abilities, to respond to these changes in the organization.

4.1.1 Decision Making – Developing Human Capital

Air Asia will partners with Canadian Aviation Electronic to build an aviation training centre of excellence and selected Kuala Lumpur as the location for its Southeast Asian training hub. Air Asia has locked a partnership with CAE for mutual benefits where CAE will provide pilot training for all of Air Asia current and future pilot in the region (Mywire.com 2008). These will demonstration of excellence in improving the training quality and human capital development within Air Asia. Partners with CAE will help the organization to develop high quality manpower in ensuring seamless business growth.

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4.2 Human Resource Management

In order to remain high quality manpower in ensure seamless business growth. Air Asia needs to revamp and rethink conventional recruitment strategies to achieve and sustain a competitive advantage. Attracting the right people has never been harder. Indeed recruiting and retaining talent is organization’s biggest challenge. Its all well and good operating in a dynamic economic climate but with high attrition rates, inevitable in such competitive times, many are struggling to find the right people to keep up, let alone get ahead. People management is a strategic priority for Air Asia, especially at a time when the organization is rapidly evolving and expanding horizons. Air Asia needs to have the right people for the role, and then to build those into a strength and knowledge, in which to lead the organization becomes a major market player.

4.2.1 Decision Making – Recruitment

Air Asia believes that investing in people ultimately brings the greatest return. It continued to recruit the overwhelming majority of its talent internally. With over 5,000 employees across eleven countries, Air Asia is blessed with a multi-pool talent and dedicated to hiring and maintaining a workforce of well trained, reliable and safety focused employees at all level of the organization (AirAsia.com 2008). In addition to corporate programs for existing employees, an active recruitment program is in place to attract and retain qualified individuals from all trades and professions. The primary goal is to increase the number of young potentials in the organization and to develop the Air Asia employer brand (AirAsia.com 2008).

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4.3 Information System

The information system has had a greater impact to display the products that can be seen worldwide especially useful for linking Air Asia with customers or business partners. It provides a worldwide distribution channel for information and ability to link market demand to production planning, and helps the management to communicate quickly with those at lower level. Air Asia have became the first in the world to introduce SMS booking where customers could book their seats, checked flight schedules, and obtain the latest promotional announcements through their mobile phones (Idris, 2007).

4.3.1 Decision Making – Technology

Air Asia keeps introducing innovative ways for online booking and ticket sales. It has locked a partnership with its IT vendors for mutual benefits where Air Asia can constantly improve the system while IT vendor learns to create innovative products according to customer requirements. It offers a wide and innovative range of distribution channels to make booking and traveling easier for its guests.

4.4 Management Policies

Policies are fundamentally statements of an organization’s intentions relative to their strategic aims. Air Asia mission is to continue to be the lowest cost short-haul airline in every market its serve, delivering strong organic growth through offering the lowest airfares at a profit (AirAsia.com 2008). In order to strive to achievement of the mission and values, the following core value have been a guide for their action, extracted from (AirAsia.com 2008):

i) Leanest Cost Structure

aˆ? Efficient and simple point to point operations

aˆ? Attracting and retaining hardworking and smart people

aˆ? Passion for continuous cost reduction

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ii) Maximize Shareholders’ Value

aˆ? Resilient profit growth through our lower cost base

aˆ? Expansion of the Air Asia network in a prudent and disciplined manner

aˆ? Invest and enhance the Air Asia brand to increase investors’ returns

iii) Safety

aˆ? Comply with the highest International Aviation Safety Standards and practices

aˆ? Keep operations simple and transparent

aˆ? Ensure the security of our People and Guests

iv) Passion for Guests’ Satisfaction

aˆ? Maintain simplicity in every application

aˆ? Practice the unique and friendly Air Asia experience at every opportunity

aˆ? Recognize the linkage between guests’ satisfaction and long-term success

v) Transparency

aˆ? Transparency in decision-making and information sharing

aˆ? Optimum disclosure – higher than industry norms

aˆ? Timeliness in disclosing information

vi) Human Capital Development

aˆ? Invest in both hard and soft skills

aˆ? Recognize all our People as contributors to our success

aˆ? Reward excellence and individual contributions

aˆ? Maintaining one brand across the Group

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4.5 Effectiveness of Chosen Strategy

According to Air Asia Annual Report (2007), Air Asia today has indeed highlighted by robust growth, record profits, industry leading performance and award winning standards. It humble beginning took flight six years ago, and after 24 consecutive profitable quarters later, Air Asia are now the highest profit margin airline in the world. This can be seen in Figure 4.1. In recent times, the sales of Air Asia excess of RM 1.6 billion, a presence in eleven countries and more than 5,000 employees. Earnings continued to improve thanks to robust passenger growth and improved margins in all business areas.

Figure 4.1: The Most Profitable Airline in the World Air Asia

Source: Air Asia Financial Report 2007

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As shown in Figure 4.2, Air Asia recorded revenue of RM 633 million for the quarter ended 31 December 2007. These indicate that 43% higher than the revenue of RM 443 million recoded in the quarter ended 31 December 2006. Its net income improved by 73% to RM 246 million as compared to the net income of RM 142 million achieved in the previous quarter.

Figure 4.2: The Superior Growth with Expanding Profits

Source: Air Asia Financial Report 2007

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In the past five year, Air Asia has maintained unwavering focus and discipline in the low cost model. In the process, it have invested significantly to build a solid foundation and to create a platform for sustainable growth. Air Asia has built the Air Asia Academy to develop high quality manpower in ensuring seamless business growth (AirAsia.com 2008). It operating results over the past year underscore two major highlights. The first is how effectively the employee worked to meet customer needs during the highest demand for air travel it has ever experienced. The second highlight was how well the team managed the robust capacity growth. Air Asia corporate strategy and strategic investments have yielded positive results. In year 2007, it unit cost is the lowest reported in the world and it profit margins are among the best (AirAsia.com 2008). Just imagine what Air Asia can achieve in the future.

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4.6 Area of Improvement

Policies and strategies effectiveness is a source of competitive advantage for Air Asia turn into their strength across a range of different product markets. A number of positions are normally can be improved to increase its competitive advantages and proficiency, in which enables Air Asia to achieve and maintain the business growth.

4.6.1 Service

Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations. How customer expectations are the standard against which service is judge.

That’s the mission. Therefore should understanding customer needs and expectations. In recent years, one of the most obvious aspects of Air Asia done is upgrade their online booking system and payment system to improve efficiency. This will enhance customer satisfaction, and achieve continual improvement of its performance in pursuit of organization objectives. But unfortunately, baggage does not always arrive at its intended destination. Or, if it does, it might turn up damaged or with something missing still always happened. So, how to trace the missing baggage in short period and minimize a similar case happened again. It can help Air Asia to improving the quality of products and services provided to the customer.

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4.6.2 Strategic Alliance

Air Asia introduced a first direct B2B engine to its agents in Asia, through one of its strategic partners, Citibank. The agents make immediate payment via a virtual Air Asia credit card through the internet based real inventory booking engine (AirAsia.com 2008). The question is why; it’s formed up the strategic alliance between the parties? The popularity is business growth and get in on opportunities.

The strategies adopted in a specific market. A gap emerges between what organization goals would like to achieve and what it can do with available resources and capabilities when comparing the threats and opportunities in the environment with an organization’s strengths and weaknesses. The gap can be bridged by the alliance. For example, in order to compete on a global scale and at the same time maintain its independence, Air Asia must make alliances in partnership together with others countries to use facilities, produce components and distribution channels to meet a critical business need.

In year 2004, Air Asia formed two joint ventures in Thailand through Thai Air Asia, and Indonesia through Indonesia Air Asia (AirAsia.com 2008). Why? Because Air Asia able to extend its marketing reach and build credibility with a particular target market. It’s also giving the opportunities to access needed information and greater resources including specialized staff and technology, increase sales in an existing market and enhance technological capabilities through research and development underwritten by more than one party. Another approach is once business is established it has provided the Air Asia with the opportunity to gain new capacity and expertise.

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4.6.3 Product Improvement

Product improvement is the result of consistent, deliberate effort to move the developing organization to a higher level of capability. Product improvement entails developing and launching new products for sale in existing markets (Condensed GSAM Handbook, 2003). It also requires a planned and guided path to excellence, reaching various levels of improvement as intermediate goals along the way such as products with additional features, different packaging, different quality levels etc.

For example, Air Asia Go Holiday and Air Asia Tune Hotels which offer travelers a comprehensive package. Many budget travelers prefer to book their airline tickets and hotels together and Air Asia will offer its customers the facility of making room reservations online as they book their flights. In other words, the product will be improved as a natural consequence. So, eventually have hotels in all Air Asia destinations are part of the areas for improvement. This means understanding and responding to customer needs is the key to success in the increasingly competitive advantages. Making our customers happy is important because it translates to an ongoing relationship, whether travel is business or pleasure, which in turn is loyalty.

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5.0 Conclusion

Since Air Asia entry the market, it is rapidly becoming the most popular airline and profitability organization. Why? Because it focuses the strategic analysis on ways of promoting and developing the product ranges. But no business can consider always sustain a competitive advantage without carefully analyze the primary internal and external influences to which the business environment is subject. However, Air Asia will need to understand what is currently happening in the operating environment. What strategies are being adopted by competitors? Are new entrants coming into the sector? How are the markets moving? Therefore, PESTLE and SWOT analysis have been the most usefully tools for looking consideration of the business environment. Likewise Air Asia will need forecasts of what is expected to happen in the future and the business strengths that could be exploited. This will bring it’s the competitive advantage to the business environment. Therefore how the business is performing and copes with the issues is important to its move forward.

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Individual Assignment The Introduction To Hospitality Tourism Essay

Hospitality is the relationship between guest and host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers, resorts, membership clubs, conventions, attractions, special events, and other services for travelers and tourists. Hotel, motels, inns, or such businesses that provides transitional or short-term lodging, with or without food. The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry.Hospitality also means providing services and welcoming strangers without expecting anything in return. Here if you see and redefine the words Hospital and Hospitality it will give you the same answer. In Hospital a Doctor takes care of a Stranger who comes to him without knowing who is in front of him with his physical problem and expects that he will be taken care properly without any doubt.

The patient expects that the right type of treatment is given from the time he comes to the Hospital till he is discharged. Same is with Hospitality. When a strangers walks in who is your Guest he expects a proper welcome with a smile and he is taken care with Proper accommodation, Food and Beverage till he checks out. The stay must be memorable and he should feel fit and fine with the services provided.

Question 1

1.1Define the term Hospitality Industry and give examples, advantages, and disadvantages of their use in the hospitality industry?

The hospitality industry is a huge and famous industry in this world, and there are multiple areas in this industry. This industry is specialized by training. This gigantic sector includes tourism and tour, traditional hospitality industry such as resorts and hotels, motel and a range of other hospitality services. ( Johnston, 2010). Because of this industry is famous so there is several advantages in this industry. But if we look deep through this industry also got some disadvantages also.

The advantage of hospitality industry is that, they afford to provide the full service to their customers. For example, many hotels or resorts are around-the-clock, provide 24-hour operations and staffs are required to work varied shifts and extended hours for their customer satisfaction. Its means they provide the services for their clients all the time. Without bothering the time of the clients ask for the service. For example if any of the clients need foods or any other service at midnight means they can provide all the service to them without any further adore.

Besides that, this industry also provides other services such as tour and tourism beside provide only the accommodation service. Mostly the resort department will provide this as their service. It is because mostly the resorts will located at beach site waterfall site. So the people those who are go there can enjoy the beach site by staying there for 2 days or more than 2 days. In this situation, the industry helps their client to enjoy the nature by staying at beach site. The resorts also sometimes will build at jungle site. Those who is interest for stay in jungle for get any deferent experience they can go there and stay there and at the same time can enjoy the jungle life.

The hospitality industry is famous for accommodation sector. They provide this sector with multiple categories. For example five star hotel, four star hotels, and three star hotels and so on. So those who are afford to pay the high fee they will choose their standard level hotel such as five star or four star hotels and those who are not afford to pay more fees only for the accommodations for a short period time will choose the lower level hotels. So its shows that this industry provide hotels for all the people according to their living standard.

Then glamour myth also a advantage of the hospitality industry. Is means the hotel industry offers you the chance to meet rich, famous and interesting people. So we can meet them at the place where go for rest but at the same time it brings benefit to us. Can get meet any famous person or any important person who are in the same carrier with us. For example, if I’m a business person I can get to meet any other business person who is carry on the same business with me, so I can develop my business very well and famous.

At the same time they can include scientists attending in-house conferences, foreign tourists, local business people and ordinary everyday citizens. Although you might be able to tell your friends that Hollywood’s hottest stars are staying in your hotel, you’ll probably have to stretch the truth a little to say that you actually talked with them. Celebrities might chat with you like an old friend, out of politeness, only when ordering room service, or not at all. Some may be jovial and even invite you for a drink, while others will treat you with the cool and fun.

Furthermore the hospitality industry provides the standard living for their client. They provide services with the standard level such as the rooms that they provide the foods that they provide. They provide the rooms with full furniture and all the equipment. So the client will happily can enjoy all the service of them. So they will satisfy with their service and may be the loyal to the particular hospitality industry. With the advantages of hotel Industry come the disadvantages too. The disadvantage of this industry is long and odd hours. This means that if the client or customer of that particular hotel doesn’t like early starts or late finishes, then the hotel industry may not be help them. They may make late to help the client purposely.

Besides that, pressure, high standards and deadlines also a disadvantages of the hospitality industry. Working for demanding clients and management is not the downside of working in hotels – for it is what the industry is all about – but you may find that the pressure of guest and management expectations are more stressful than you ever imagined. Pressure and deadlines are intrinsic elements of the industry and the best hotel workers thrive on conquering the challenges and obstacles placed in the way of personal and company objectives.

Culture problem also consider as a disadvantage of this industry. Most of the hospitality industry provides their service with the western style but it not suitable for all the clients of them. For example we can take the Malay religion, they cannot eat all the food especially pork at all and they can eat only ‘halal’ food so they face some problems. Then also must prepare with at least a special hall for their praying. Because Malays must at the correct time and must carry on the prayer at the special venue which is called as ‘surau’ if there don’t have mosque.

So some of the hotel or hospitality management sometimes never provides or forget to prepare all this things to them. Besides Malays, in our country the Indian are sometimes will carry on the vegetarian. So the hotels must prepare the vegetarian foods for them. But they never provide this sometimes. So the clients need to go out site of the hotel for find the foods for them. This shows that the hospitality industry never give important for their clients.

As the conclusion, the hospitality industry provides the good service for their client with their variety service. But still this industry needs to improve their service to archive the target of their industry. if they improve all this the customers will get happy and will enjoy with service.

Question 2

2.1: Find out the factors that affecting travel and tourism. Explain in detail?

Tourism comprises the activities of persons travelling to and staying in places outsides their usual environment for not more than one consecutive year for leisure, business and other purposes. The word staying suggests that tourists stay at least one night. However must acknowledge that day visitors make a huge contribution to the tourist industry and some regions and organizations choose to include day visitors in statistics. It is acknowledged by the World Tourism Organization that tourism is the fastest growing economic sector, bringing foreign exchange earnings to countries and creating jobs. Jobs are not only created directly in tourism but in related industries, for example in construction. Much tourism development occurs in developing countries, bringing economic opportunities local communities. There are several factors that affecting travel and tourism industry which influence the industry.

The first factors that affect this industry are technological factor. Nowadays the technology develops very well. So also develop in travel and tourism. The growth of e-commerce and new transportation affect the travel and tourism industry. Nowadays the travel system develops well for example the buses that use nowadays is full of air-condition service, with video and audio system. Travel and tourism has always been an industry that has made extensive use of new technology equipment. Central reservation system (CRS), the use of computers in travel agencies and sophisticated databases for marketing purposes are now ordinary. Increase in competition within the industry will force organizations to use new technology to the full. New developments in transportation make extensive use of new technology, for example the Channel Tunnel, the advances in aircraft design and opening up new long-hall destinations. Then more develop bus is super VIP bus. This is consisting of all the service to the passengers. So the passengers can enjoy the traveling period.

Furthermore, another factor is, the technology develops until the passengers or the customers can get the information of the travel and tourism industry in internet. The particular agency will update all the information in web so the customers can check easily all the information about their tour and can easily contact to the particular agency. This makes the agency famous among the people because all over the world can access their information and can consider to the particular agency. At the same time also help the customers to get all their information in detail and faster too.

Cultural and environmental factors also affect the travel and tourism industry. In the 1980s saw the emergence in Britain of a greater environmental awareness and a society that was beginning to take its health and fitness seriously. These factors are likely to remain important influences on travel and tourism developments in the future with so-called ‘green issues’ high on the agenda. The political aspect also affects this industry. The security concerns over travel have had a serious impact on the travel and tourism industry. Which are leading to increased business failures in certain situation if the government never invent in this industry. The government must provides all the services to help the industry such as prepare a good road for travel and railway tracks for the rails travel so the travel and tourism industry can easily can safely travel.

Then the choice of destination also affects this industry. Most of the customer likes to travel for a famous and enjoyable place. So they must bring out the travel and tourism to a famous popular place, which got a high demand among the people. Then choose of place should be according to the age group. If want to carry on a travel and tourism, must be a place where got a lots of fun and entertainment but if want to carry on for veterans means place should be suitable for them. So they can enjoy the travel with fullest and the affect also will be the positive type. Other than age group category there got other group category also, such as leisure customers, business customers, independent travelers, package holidaymakers. So the travel and tourism must be carrying on according to deferent types customers.

Besides that, the rule and regulation also will affect the travel and tourism industry. The travel that’s going to carry should be following the all the rules and regulations that the government stated and the particular place stated. So it will never affect the customers of them. For example, if the tourism place stated that cannot brings camera or video inside means they should tell earlier to their customer so they may follow the rules and will not affect the agency also. If not the agency may affected because did not follow the rules and regulation. While the customers’ also wont respect to the agency. At the end the customers won’t support for the particular industry.

The travel and tourism that going to carry on also should be suitable for the season. Because the customers are always like to travel to different destination in a different season. So should carry on the correct travel and tourism event at the correct season. If not it will affect alt the industry. The customer may not will support the agency because they are not giving what they want and they won’t satisfy with them at all. At last the food and beverage also will affect the industry, even is not a big issue and important in a travel and tourism industry. The foods that they provide to the customers should be good foods which is not expired or spoiled. If not the customer may get anger with their service and will get disappointment with their service. So if a travel and tourism industry wants to be success means, they should consider all the element of the travel and tourism. And must prepare earlier for everything with full of good service for their customer’s satisfaction.

Conclusion

http://t3.gstatic.com/images?q=tbn:ANd9GcSbpXEn1MNc3WlR1eNL_Y7lEYmix5zdVH5pPapH0B3n3gHJT1lhAs the conclusion, we have learnt about the meaning of hospitality and the stages of hospitality industry development from traditional to advanced stage and learnt that hospitality management means how to cater for people in a friendly and cheerful manner to enable the guest appreciate in services. Besides that, we have learnt about the meaning and the importance of housekeeping Department in hotel, motel, guest how we have learn about the interdepartmental co-operations among various departments of the hotel and the importance of hotel industry in our society. Furthermore, we also learnt the meaning and types of non-commercial hospitality management and the type of organization that is available. Lastly we have learnt and understood the meaning of the layout in hospitality industry and the necessary and important factors to consider when plan to establish this industry.

Bibliography

Website address

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