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In 1985 Emirates Airlines was established by Dubai Government with just two aircrafts. Today Emirates has 83 aircrafts files to 78 destinations in 55 countries worldwide. It has a large number of cabin crews from 95 nationalities. It recently made an aircraft orders worth more than $ 26 billion for 45 Airbus A380, which makes the company the world’s largest purchaser of Airbus’s super-jumbo. (About Emirates)

Emirates Airlines recently becomes one of the fastest growing airlines and the fifth-most-profitable airline in the world. It has been growing by more than 20% a year since the last 17 years making a profit of $637 million in 2004-05. (BBC News)

Emirates Airlines is committed to achieve its mission, namely “offering consistently high-quality value-for-money service and to be the best airline on all of its routes”. Accordingly, it is known as an innovative and customer-oriented provider of advanced services, such as offering personal entertainment system in all classes, 18 TV channels, 22 audio channels and online booking service which enables customers to book, search for flights and choose seats. (About Emirates)

Because of that excellence, it gained over 280 international awards, such as the prestigious CAPA airline of the year award 2005 by the Centre for Asia Pacific Aviation.

The airline industry is affected by political situations, namely wars and terrorism. For instance, terrorists’ activities in different areas globally, namely USA (11th Sep), UK, Lebanon and Qatar made the regions unattractive for tourists and business travellers and reduce the passenger’s traffic.

The political instability affected businesses between airlines in Middle East and the world by facing a difficulty to join any international alliances with any of the airlines leaders such as American Airlines. (Growth phenomena, Nora & Byman)

Economical factors

One of the factors behind any success airlines is having modern airports supported with latest technology to meet customer’s requirements. UAE for example plans to invest in developing its main airports in Abu Dhabi and Dubai. The UAE’s total investments on airport development over coming 20 years will exceed Dh 71 billion.

The benefits of developing airports are: enhancing economy, reducing depends on oil revenues by moving into new sector (tourism), increasing tourists’ number and thereby driving profits to airline firms. Globally, alliance is considered as the main factor of many airlines companies success as it reduces the operation costs.

Social factors

Some of those factors are: increasing world’s population, tourists and number of educated people. For instance, the population is growing globally, in UAE the population in 2002 was 3,754,000 people and reached to 4,320,000 in 2004, this is because UAE is a multicultural country. As the number of expatriates is increasing, airlines firms’ profits will increase, because those expatriates need to travel to their homeland sometime. Additionally, many diseases influence the population in many courtiers, like Bird Flu, those killer diseases affect airline industry since they reduce population’s level. (Economic Development)

Technological factors

The new technology affected airline industry negatively and positively. For example, the technology of teleconferencing reduced the need for face to face business meetings which affects on the number of business travellers and on the sales of business tickets. However, e-booking system makes the reservation easier and save many expenses such as reducing the printed tickets. (Current State)

There is a growth in internet usage worldwide. In the UAE, internet accounts are likely to grow from 251,000 in 2001 to exceed 600,000 accounts by 2006. Thus, local airlines industry should provide online services to get competitive advantage ex. Emirates Airline. (UAE to remain on top in Arab Internet market)

Internal Environment
SWOT analysis
Strengths

Member of the Arab alliance, known as Arab Air Carriers Organization promoting cooperation, safety standards among Arab airlines (Arab Air).

First airline in Arab World that offers online booking service.

Offering long-haul flights, like from US to Dubai.

Offering self check-in service for customers at Dubai airport (Emirates expands).

At Dubai Air Show 2005, Emirates made an aircraft order of 45 Airbus by 2012 making it the world’s largest purchaser of Airbus’s super-jumbo.

Providing employees with training, rewards and performance programs, thus reducing labour costs and increasing employees’ loyalty (People).

An official sponsor of 2006 Fifa World Cup, which will increase its brand awareness.

It has its own Frequent Flyer Program known as Skywards Miles that shared with Sri Lankan Airways.

It has recently chosen Dexterra Mobile Platform to enable front-office mobile solutions that will enhance customer service interaction (Unisys).

It offers training service to other airlines in Middle East which increase its profit.

Weaknesses

High Operation costs due to huge investment on buying aircrafts and implementing new technologies.

Known of its high prices of tickets comparing to other airlines.

Not a member of any global alliances (UAE).

It doesn’t have a hub in Abu Dhabi airport (capital of the UAE).

Young airline that was established in 1985

Opportunities

The income per capita is growing in UAE.

Lots of investments will be made by the government of UAE for developing main airports in Dubai and Abu Dhabi.

There is an overall growth in the population of the world and in UAE.

World Travel & Tourism Council forecasts that there will be an annual growth in the number of UAE tourists.

There is an expected growth in internet users’ worldwide and in UAE.

Aviation events such as Dubai Air Show promotes for Middle East airlines among other participates worldwide airlines and show the growing of aviation industry in Middle East.

Threats

It is located in politically instable region and the terrorism activities have been increased in Middle East recently.

Increase of aviation security costs and insurance which increase the operational costs of airlines.

The increase of the fuel prices which raise the operational costs.

The airline industry might face losses of around $ 3 billion if the oil prices did not reduce (IATA).

New entrants and the raise of low cost airlines.

The e-ticking system can be abuse by the hackers or it might be crashed by viruses, this will damage the company database and will cost a lot of money.

Passengers can be a threat to the company, as they have a strong power in the airline industry.

The natural crises such as the earthquake and hurricane. As mentioned by Al-Arabia channel, Dubai is threatened by an earthquake (2005). This will affect the tourism in this region, which will reflect in the Emirates airline.

There is a possibility of rapid spread of new acute diseases such as SARS and Bird Flue that affect tourism and airlines.

Strategic planning models

There is no one perfect strategic planning model for each organization. Each organization ends up developing its own nature and model of strategic planning, often by selecting a model and modifying it as they go along in developing their own planning process. The following models provide a range of alternatives from which organizations might select an approach and begin to develop their own strategic planning process. An organization might choose to integrate the models, e.g., using a scenario model to creatively identify strategic issues and goals, and then an issues-based model to carefully strategize to address the issues and reach the goals.

The following models include: “basic” strategic planning, issue-based (or goal-based), alignment, scenario, and organic planning.

Model One – “Basic” Strategic Planning

This very basic process is typically followed by organizations that are extremely small, busy, and have not done much strategic planning before. The process might be implemented in year one of the nonprofits to get a sense of how planning is conducted, and then embellished in later years with more planning phases and activities to ensure well-rounded direction for the nonprofits. Planning is usually carried out by top-level management. The basic strategic planning process includes:

Identify firm’s purpose (mission statement)

Select the goals your organization must reach if it is to accomplish your mission

Identify specific approaches or strategies that must be implemented to reach each goal

Identify specific action plans to implement each strategy

Monitor and update the plan

Model Two – Issue-Based (or Goal-Based) Planning

Organizations that begin with the “basic” planning approach described above, often evolve to using this more comprehensive and more effective type of planning.

Organizations that begin with the “basic” planning approach described above often evolve to using this more comprehensive and more effective type of planning.

Summary of Issue-Based (or Goal-Based) Strategic Planning

(Note that an organization may not do all of the following activities every year.)

External/internal assessment to identify “SWOT” (Strengths and Weaknesses and Opportunities and Threats)

Strategic analysis to identify and prioritize major issues/goals

Design major strategies (or programs) to address issues/goals

Design/update vision, mission and values(some organizations may do this first in planning)

Establish action plans (objectives, resource needs, roles and responsibilities for implementation)

Record issues, goals, strategies/programs, updated mission and vision, and action plans in a Strategic Plan document, and attach SWOT, etc.

Develop the yearly Operating Plan document(from year one of the multi-year strategic plan)

Develop and authorize Budget for year one(allocation of funds needed to fund year one)

Conduct the organization’s year-one operations

Monitor/review/evaluate/update Strategic Plan document.

Model Three – Alignment Model

The overall purpose of the model is to ensure strong alignment among the organization’s mission and its resources to effectively operate the organization. This model is useful for organizations that need to fine-tune strategies or find out why they are not working. An organization might also choose this model if it is experiencing a large number of issues around internal efficiencies. Overall steps include:

The planning group outlines the organization’s mission, programs, resources, and needed support.

Identify what’s working well and what needs adjustment.

Identify how these adjustments

Model Four – Scenario Planning

This approach might be used in conjunction with other models to ensure planners truly undertake strategic thinking. The model may be useful, particularly in identifying strategic issues and goals.

Select several external forces and imagine related changes which might influence the organization, e.g., change in regulations, demographic changes, etc. Scanning the newspaper for key headlines often suggests potential changes that might affect the organization.

For each change in a force, discuss three different future organizational scenarios (including best case, worst case, and OK/reasonable case) which might arise with the organization as a result of each change. Reviewing the worst-case scenario often provokes strong motivation to change the organization.

Suggest what the organization might do, or potential strategies, in each of the three scenarios to respond to each change.

Planners soon detect common considerations or strategies that must be addressed to respond to possible external changes.

Select the most likely external changes to effect the organization, e.g., over the next three to five years, and identify the most reasonable strategies the organization can undertake to respond to the change.

Model Five – “Organic” (or Self-Organizing) Planning

Traditional strategic planning processes are sometimes considered “mechanistic” or “linear,” i.e., they’re rather general-to-specific or cause-and-effect in nature. For example, the processes often begin by conducting a broad assessment of the external and internal environments of the organization, conducting a strategic analysis (“SWOT” analysis), narrowing down to identifying and prioritizing issues, and then developing specific strategies to address the specific issues.

Another view of planning is similar to the development of an organism, i.e., an “organic,” self-organizing process. Certain cultures, e.g., Native American Indians, might prefer unfolding and naturalistic “organic” planning processes more than the traditional mechanistic, linear processes. Self-organizing requires continual reference to common values, dialoguing around these values, and continued shared reflection around the systems current processes.

General steps include:

Clarify and articulate the organization’s cultural values. Use dialogue and story-boarding techniques.

Articulate the group’s vision for the organization. Use dialogue and story-boarding techniques.

On an ongoing basis, e.g., once every quarter, dialogue about what processes are needed to arrive at the vision and what the group is going to do now about those processes.

Continually remind yourself and others that this type of naturalistic planning is never really “over with,” and that, rather, the group needs to learn to conduct its own values clarification, dialogue/reflection, and process updates.

Be very, very patient.

Focus on learning and less on method.

Ask the group to reflect on how the organization will portray its strategic plans to stakeholders, etc., who often expect the “mechanistic, linear” plan formats.

Managing risk

Risk management is a process used to avoid, reduce or control risks. Some risks can be insured against, others cannot. Organisations deal with their insurable risks but can be applied to all risks. Ignoring the risks which apply to hospitality and tourism business activities or the events business have planned could impact on the following:

the health and safety of employees, customers, volunteers and

participants

reputation, credibility and status

public and customer confidence in the organisation

financial position

plant, equipment and the environment

A systematic approach to managing risk is now regarded as good management

Practice. Following is the best example from International Hilton Group (IHG).

Process and framework

IHG has an established risk management process and framework embedded in all regions. The long-term strategic goals are aligned with the IHG core purpose Great Hotels Guests Love and include these key elements:

safety and security of guests, employees and other third parties

brand strength supported by operational excellence in risk management at all hotels and corporate locations

Maintenance and promotion of the reputation of the Company.

Our approach has been to enable and support hotel owners, staff and corporate functions to manage risk effectively. This is accomplished by giving them a systematic approach and framework to follow and by providing them with tools to do the job.

The Risk Management function aims to share specialist knowledge and capability globally.

Safety and security in hotels

A strategic framework for hotel safety and security has been designed for owned and managed hotels and is illustrated below showing the identified groups of risks and describing the management activities carried out to mitigate the risks.

The red wheel illustrates the groups of risks which IHG’s risk managers around the world work on with IHG general managers and their management teams in order to minimise the risks and keep the hotels safe.

Over the years we have developed risk management strategies to assess and treat individual types of risk. This has involved developing policies, standards and guidelines, raising awareness levels, training staff on the controls and systems which have been developed for their use and reviewing and reporting upon progress and continued risks. These management activities are represented by the purple wheel.Hotel safety framework

Security risks, particularly the threat of terrorism, have increased. In recent years, IHG has developed an increasingly sophisticated response that is intelligence-led and risk-based. The security risk environment is highly dynamic and needs to be managed both centrally and locally in hotels. In common with all risk strategies, there are three elements that must be developed and maintained: physical and technical systems, people capabilities and processes and procedures.

Corporate risk management

The management activities shown above are being adapted and applied to manage corporate risks. This initiative is led by the Executive Committee, facilitated by the Risk Management function and integrated with quarterly strategic reviews.

IHG’s Risk Management function has recently reviewed the way in which corporate risk and the major risks to IHG are managed and are seeking to develop a framework to improve risk management capability further, represented diagrammatically below:Corporate risk management

Each year, risk identification workshops are run with the senior IHG management. The output is a ‘Group Risk Register’, divided into areas of accountability for each member of the Executive Committee.

The Executive Committee uses the findings to identify the major areas of risk for IHG and to assign accountability for cross-functional leadership between them. The Executive Committee prioritises and co-ordinates efforts to optimise the management of major risks to IHG.

Risk ‘owners’ then identify existing controls as well as the ability, benefit and cost to improve them. This work is documented in Risk Action Plans that support the risks that are reported in the Group Risk Register.

Executives review the risks at quarterly strategic reviews as part of their business review with the Chief Executive and strategy team. Global Risk Management also submits periodic incident reports and two major reports each year to the Executive Committee and the Board on hotel safety and security as well as a further report on the major risks to IHG.

The Internal Audit function is separately responsible for providing assurance across the Group. They report their findings to the Audit Committee. This ensures separation of duties between the Risk Management and Internal Audit functions and hence supports good governance.

The Board is ultimately responsible for the Group’s system of internal control and risk management and for reviewing its effectiveness. In order to discharge that responsibility, in 2008 the Board considered the most recent Major Risk Review which involved extensive consultation throughout the business.

Strategy and ethics

The hospitality industry is made up of many companies who are run by business people. Business people who put short-term profits ahead of concern for the long-term health of the company or who make additional profits by failing to spend the money necessary to handle toxic waste or pollution resulting from the manufacturing process, are not professionals and harm the reputation of the industry as a profession . The scandalous behaviour of some business leaders in the past decade has damaged the reputation of business with the community. The former “what is good for business is good for the country” has been replaced with a virulent distrust of big business.

Corporate social responsibility requires organizations to demonstrate responsible business conduct that does no harm in the marketplace, in the workplace, in the community they operate in, and to the natural environment. The actions of business impact the local, national, and global community, so businesses have a responsibility to ensure that the impact is positive.

Corporate Social Responsibility also involves “achieving commercial success in ways that honour ethical values and respect people, communities, and the natural environment”. There is no universally accepted definition of CSR, but most of the definitions have to do with business having a positive impact on the community and meeting or exceeding public expectations of good corporate citizenship.

Ethics in Tourism

Ethical principals apply to all individuals, communities and societies; they also apply to all the bodies in tourism in their respective specific roles. This entails both rights and responsibilities. Concrete and specific ethical standards for behaviour and practises in tourism must follow the broad principles as outlined here.

Solidarity with those who are directly and strongly affected by tourism and who suffer from unjust structures connected with tourism, and solidarity with those who need material or political and philosophical support in defending their interests and rights which are threatened by tourism development or which are ignored in decision making processes;

Justice in a world tourism order, an aim which intends to change all structures of injustice that exists in the fields of economics, politics, social and cultural life;

Respect of diversity in the various areas of life – societies, environment, cultures, religions and politics – which calls for sensitivity to difference and the practice of tolerance.

Authentic information for all people involved or interested in tourism. Such authentic information is a basic need for a just world tourism order. This places a particular responsibility on the media to be objective, fair and truthful when reporting on tourism. Professionals engaged in tourism education should also promote need for authentic research and information to develop sensitised and aware personnel in tourism.

In order to improve the present situation in tourism and to minimize its negative impacts, firms must urge all (nation) those involved to contribute the best of their knowledge, abilities, and skills towards a tourism that is in line with these ethical principles.

The tourist’s board must involve the governments, other public authorities, decision makers and professionals in the field of tourism, public and private associations and institutions whose activities are related to tourism, tourists and local communities to adopt the realistic principles and work towards the mutual objectives.

Strategic VS operational conflicts

Just like any other business, Tourism Business planning always have a ‘strategic’ and an ‘operational’ element to position the strategies. In order to make the intangible and highly sensitive industry firms must be able to balance the different roles and utilize strategic and operational plans.

A Strategic Plan is an organization’s summary of the development process and the presentation of core directions

An Operational Plan is an annual work plan explaining how the goals of the strategic plan will be implemented and what budget and processes are required.

Strategic planning helps the organisation to pull back the lens, get a big picture view and consider future scenarios. It gives you the best opportunity to maintain control, avoid serious pitfalls and capture opportunities. Thinking strategically about business involves creating a vision for where you want to be in 2, 5 or 10 years, Strategic planning is not just for big companies and has benefits no matter what the goals. The defined goals might include increasing the sales or market share. Goals may also include environmental and sustainability targets or to sell the business.

Operational planning focuses tightly on the day to day operations with no more than a 12 month cycle. Depending on the farm’s activities, the manager might want to further break things down to daily, weekly, monthly or seasonal active. Operational planning focuses on adjusting and developing controls, increasing efficiencies and reducing time and investment.

Conclusion and Recommendation

The airline industry is a huge market as there are 900 airlines’ companies internationally with total of nearly 22,000 aircrafts, nevertheless it has a low growth rates as it is in its mature stage of life cycle. (The economic & social benefits of air transport).

For any new entry the airline industry is considered to be unattractive, because the demand is low, the competition is strong and the operation costs are increasing. However, for Emirates Airlines it is attractive as its strategy and market position creates a good defence against its competitor. For example, it created a strong brand name and customer loyalty in the market by implementing the latest technologies in its services to be positioned as a pioneer in the airline field. It also achieves high profits yearly as it focuses proficiently to enhance its market position by differentiating in its strategies that would be used to attract customers such as flyer frequent program.

Also, it has many chances to overcome with all the obstacles that might occur and affect the airline industry such as political or economical problems, etc. as it is a member in Emirates Group which enables sharing resources and reducing the company’s expenses, thus leading the company to protect its position in the market.

Overall, Emirates has a great market position plus it’s a profitable airline which is measured as a competitive advantage, since it has the opportunity to compete and expand its business to gain higher profits.

Emirates Airlines adopts differentiation generic strategy to gain a competitive advantage amongst its competitors by offering the highest quality services in order to be the best company in the market and differentiates from its competitors. For example, Emirates airlines was the first airline that offered TV screen for all aircraft’s classes. Also it was the first company in the Middle East to serve the e-ticketing.

In addition, it gained a competitive advantage by focusing in new segments in the market. For instance, it provides another airline companies such as Qatar Airways with training courses by using the most modern machines, called plane simulator to be the only company in the Middle East that offers such service. The aim of such changes is to be the leader in industry by increasing the brand name awareness regionally and internationally which will increase the demand and the profit as well.

As the Airline industry is in the maturity stage, there is a strong competition between airline firms. Each firm should use offensive strategies besides doing analysis for internal and external factors that may affect its position. The research and analysis for Emirates airlines address following recommendations:

The operational cost is increasing due to huge investments of Emirates on aircrafts and services and increase in fuel prices. Emirates should reduce the costs by making operational improvements, namely improving maintenance processes, maintaining high aircraft utilization and making effective flight scheduling. It could also be reduced by investing technology in distribution channels to reduce labour costs.

In response to the threat of low cost airlines, Emirates shouldn’t lower its fares after years of offering advanced services, instead it has to offer new low cost brand as a subsidiary of Emirates group serving economic travellers who are now customers of new low cost airlines, thus expanding the market share.

Extending routes is recommended especially there is a growth in tourism UAE. There are main regions in the world that Emirates do not have routes in, namely Canada, It has to extend destinations worldwide (especially attractive areas). Joining a global alliance enables increasing its destinations, offering more fare options for customers helping to solve problems of new low cost airline.

Investigating technology is recommended for improving customer service and Emirates has to sign contract with an e-business company that offers airlines technology solutions.

Generally, Emirates should do analysis for internal and external factors and its competitors and develop new strategies to stay competitive in the maturity stage.

Emerging Issues of Tourism Industry in Netherlands

A. INTRODUCTION
Tourism in Netherlands:

Tourism is an integral part of Netherlands. Tourism has contributed a lot to the economy of Netherlands. North Holland and South Holland are the famous provinces in Netherlands for Tourism. NTBC which is the “Netherlands Bureau for tourism and conventions” has taken some initiative to increase the marketing and the promotional strategies to maximize the tourism. Despite the fact that Netherland provides good landscape the adventure tourism has not developed well in Netherland. It is hence a very important thing to clearly know about one’s own policies so Netherland has to focus more on their strengths and their important points to develop their position in the tourism industry. Cultural tourism is not there and it should be developed because cultural heritage is very important in Tourism which can lead to the tourism in Dutch industry but it can only be possible due to the help of the organization which handles the heritage. Other big issue of the tourism industry in Netherland is the use of marijuana which is the drug tourism. It has indeed brought loss in Netherland Tourism industry. Many coffee shop owners offered weed to the foreign tourist and they even fought and said that due to the ban on the weed offering they had a loss in their business (Cecilia, 2013).

The Aims and Objective of this research
Evaluate & manages full event plan.
Analyze complexities in event management.
Making SWOT analysis in terms of environmental development.
Analyze the service quality for event management.
Analyze risk management for events.
Implement SERVQUAL Model for quality of service in events.
Critically Evaluation of Tourism Industry in Netherlands

According to the World Economic Forum’s annual Traveling & Tourist Competitiveness Report which was introduced in the Global Tourist Forum (GTF) in Amsterdam; Netherlands and a few additional nations ended up regarded as the best situation which intended for establishing the tourism and also traveling industries. Tourist often performs an important part in the economy of Netherlands and it performs exactly the same part within Europe. Although, it is arranged by the economic problem in Netherlands, due to the global economic recession. Tourists come to Netherlands to its natural beauty, nevertheless using the continuing strike in several areas of Netherlands; that leads to this progress of vacation in Netherlands nowadays (Remington, 2013).

Our report has measured the different factors that make it beautiful to make that tourism more beautiful along with the tourism industry of Netherlands, according to Jennifer Blanke, director and Economist with the World Economic Forum’s Centre for Global Functionality along with Competition (Remington, 2013). “The best ranks countries Switzerland, Italy, Belgium along with Austria indicate the importance associated with regulatory frameworks along with support organization, coordinated using world-class tourism along with carrying different facilities, as well as a concentrate on rising natural and human resources for growing a place that may be beautiful to make this tourism along with travel sector. Domestic tourism has been carried on struggle through 2013 while Dutch people continued to be remained concerning their particular financial short-run outlook. This specific negative mind-set intended that consumer would just weren’t really wanting to guide domestic tours as many recommended for you to guide reduced, less prices trips plus some made a decision to not to book any tour (Dwyer, Mellor, Mistilis & Mules, 2000).

This kind of research with the cross-country with the drivers regarding competition inside travel and leisure as well as traveling offers helpful relative fine detail to create organization decision and to fit way of measuring to be able to governing bodies having to improve his or her travel and leisure as well as traveling environments. The particular search rankings are entirely in connection with the Take a trip & Tourist Competition Listing (TTCI) during which practically all around 139 places insured. While in 2013, accommodations in the Holland showed the primary actual signs of significant recovery (Remington, 2013). Through the first couple of quarters of 2013, accommodations nonetheless experienced bad expansion while both household in addition to inward bound tourists ended up tentatively to be able to e-book standard hotel rooms in addition to always been serious typically inside particular specials. In addition, the particular bad buyer sentiment between household vacationers recommended in which accommodations continuing to be able to struggle in the first 6 months of the year. Even so, in the second half 2013 there have been constructive signs while the volume of hotel bookings has increased, while it thought this was mainly because of better need between inward bound tourists rather than the domestic tourists (Dwyer, Mellor, Mistilis & Mules, 2000).

Critically Evaluation of Cultural Tourism in Netherlands

When people are free from its routine work, study, Spectating and sleeping individual are to make choice about what an individual like to do in their free time. The tourism services are the only services which are being offering all over the world (Moore, Cushman, Simmons, 1995). Netherlands has been considering the most important tourism region across the world. With the reference of UNWTO in 2006 has stated that around 55 percent of tourists across the world has visited the Netherlands which makes the figures around 475 million. Which means Netherlands has the strongest arms over the urban tourism as because Netherlands has been considered the most beautiful and attractive destination for tourism. Currently, Netherlands has been the biggest tourism spot for tourist in summers. Therefore, coastal and mountains are the segmented and most vulnerable for the change in the environment as Mediterranean has been the most attractive and beautiful or popular region for tourism. According to the stats and it has been shows that the Netherlands has been the most popular spot for visitors and tourists which attracts around more than 120 million visitors each year which are the world’s largest international flow for tourists around the world. Which also resulted in big business growth, every year the economy has been inflate due to the hue growth in tourism industry which inject around 100 billion Euro’s in their economy with this tourism.

Although a lot of research possess pointed out that one ethnicities are visible using firms, there are just couple of research completed about eco-tourism parts along with little has been completed to be able to evaluate exactly how these kinds of ethnicities possess affected the particular efficiency of such tourism industries (Schein, 1990). Conceptualizing organizational culture as the ideals along with methods used in a corporation along with contemplating tourist achievement since intangible efficiency we conducted the survey of tourist location staff situated in the tourist spot

According to (Simmons, 1995) urban tourism has been one of the world largest industries which are growing significantly. An arrival of international tourism worldwide has been grown to 35%. According to one research Europe (Netherlands) has been the bigger funds generator outbound international tourism. According to one research conducted recently, according to researcher in richer countries working hours is steadily decreasing and amount of leisure timings increasing and this trend would remain continue and many people would looking forward to leisure activities. According to WTO report it has been stated that due to this activities there has been a great chance that impacted world economy in recent years and implications of tourism is been taking place (Moore, Cushman, Simmons, 1995).

The purpose of Leisure and tourism industries is to provide their applicants a pleasant experience. Customer’s expectations are getting higher in what they want from leisure and tourism service provided companies (Moore, Cushman, Simmons, 1995). Making decision about how to build up leisure and tourism facilities which needs to consider not only effective and successful ways of completing needs and wants of an individual’s but also but impact of new development may have on the local and community and environment (John Tribe, 2011).

Societal Tourism

Travel and leisure has contributed an excellent total this financial and also interpersonal well-being of the country. Urban Travel/Tourism and leisure incorporates a specific relevance within Travel and leisure which reports a widely recognized and also thriving because contemporary days. Because urban centers are widening and also rapid urbanization has been going on with regard to recent many years, for that reason, it’s increased traveler actions. This specific is among the elements which bring about on the extension associated with elegant tourism in the world. By and large, Downtown Travel and leisure has been examined on the financial standpoint and also earnings in the Traveler marketplace has been this center point of those unfortunate. However, this researchers and also professionals in the field have commenced observing this on the other viewpoints also.

Problem in Urban & Cultural Tourism

The challenge regarding areas as well as heritage has always been to offer a special, particular, as well as participatory tourist knowledge that may provide with it work as well as economic improvement regarding investment decision inside numerous endeavors. The challenge will be additionally difficult by the call to sustain the type with the group and its particular national sources, offer you a genuine knowledge, and respect the particular cultural as well as national standard of living with the host group even while guaranteeing the particular durability as well as authenticity with the tourist product.

The actual supervision has been associated with the history which has been usually seen as a complex method which in turn had to match several storage and also professional demands. The actual advantages has been associated with travel concerns within just history learning resource management and has produced the procedure more stressful, which has a brand-new group, occasionally, inconsistent forces. Although historical sites and also residential areas search for and also pleasant visitors, in addition, they have to endure lots of the adverse impacts associated with travel task. This issue associated with Push provides a watch into the exercise and also difficulties associated with cultural tourism in Netherlands. Most of these difficulties reflect, now and again, what is taking place in the rest on the globe. Dutch resources for history learning managers and also residential areas nonetheless possess lots to find out about travel and also how the biggest industry on this planet may benefit the actual supervision method.

Health and Safety Issue

The particular customer need to be familiar with standard health and safety law which addresses the protection associated with buyers and also personnel in pleasurable and also tourist establishments. The particular customer will likely need to focus on precisely how employees and also site visitors are usually covered by means of all of the using Acts/Regulations (or while amended),

Activity Centre’s (Young Persons’ Safety) Act, 1995

Children Act, 2004
Health and Safety at Work Act, 1974
Fire Precautions Act, 1971
Control of Substances Hazardous to Health (COSHH) Regulations, 2002.

The actual choice for candidate to have an understanding of, and be able to implement familiarity with, safe practices in several doing the job circumstances, like, for example, any preparing food setting. The actual choice will have to recognize possible dangers and also how they may be was able securely within these kind of doing the job circumstances.

Conclusion and Recommendation

Conclusion

As it has been mentioned in above review that tourism can affect country’s economy and with the help of this we can generate more funds which plays bigger role in the economy According to the survey which was conducted by WTO and according to it, following are the few stats which showing facts of different countries earnings. According to reports Europe is the most generator of funds from outbound international tourism, stats are as follows, America generated 22% of expenditure, followed by Asia Pacific 21%, and in the end Africa and Middle East 3%.

How people choose leisure time activities according to what expectations and needs and wants does service providers companies taking that fact into their notice as satisfying customers is the essential part of making business in right path. How consumer select their required destination and, on the basis of what preferences. Every customer has its own preferences and service provider companies take good care of this by offering them good and nice packages which would fulfill its customer needs and wants. As it is mentioned earlier that services of leisure and tourism companies cannot go through without their customers. Successful companies offering services of leisure and tourism must assure that their customers are satisfied with their services offering. Service provider companies must need to satisfy their customers in order to increase their good will.

Recommendation

The irresistible human being want to travel, explore, along with gain completely new experiences will certainly underpin reliable worldwide expansion throughout travel along with vacation, despite completely new carbon along with aviation fees. Globalization will carry on and push business owners for you to giving up household lifestyle for travel, despite expansion connected with teleworking along with digital teams. Small business vacation will mature on a yearly basis in the future 20-30 years, power by means of expansion within growing market segments, though vacation inside the EU along with the US will fairly static. Dutch federation interior as well as worldwide traveling by plane will likely mature easily. Parts of Europe will symbolize over 47% on the worldwide economic climate within Acquiring Electric power Parity by means of 2015.

Reference

Arcodia, C., & Reid, S. (2005, January). Event management associations and the provision of services. InJournal of Convention & Event Tourism(Vol. 6, No. 4, pp. 5-25). Taylor & Francis Group.

Eckerstein, A. (2003). Evaluation of Event Marketing.rapport nr.: Masters Thesis, (2002).

Kose, H., Argan, M. T., & Argan, M. (2011). Special event management and event marketing: A case study of TKBL all-star 2011 in Turkey.Journal of Management and Marketing Research,8, 1-9

O’Neil, M. A., Getz, D., & Carlsen, J. (1999). Evaluation of service quality at events: The 1998 Coca-cola Master Surfin g Event at Margaret River, Western Autralia.Managing Service Quality,9(3), 155-166.

As one of the largest industries, tourism has had an average annual increase of 6.6 per cent over the last half century, with international travel rising continuously and alternative tourism having a main role in this transaction. Nature-based tourism and ecotourism, with accepted definitions through tourism industry will be discussed in this report. Uniqueness and differences of ecotourism from mass tourism will be explained and benefits of ecotourism will be referred as well. An ecotourism destination; Galapagos Islands will be briefly introduced and the strategies being implemented in the specific destination will be indentified. Ecotourism is significant, special nowadays for the environment, the culture and also for the economy. So, what is the future of ecotourism? Will the efficient use of the natural resources and heritage of Galapagos Islands be a sufficient factor to maintain the importance of ecotourism? The future will be discussed as well.

Tourism is a complex sector with many challenges and chances at the same time. I‘ attempt to define tourism and to describe its scope fully must consider the various groups that participate in and are affected by the tourist, such as the tourist, the host community, the government and the businesses providing the product. Charles R. Goeldner defined tourism (2009): ”Tourism may be defined as the processes, activities and outcomes arising from the relationships and the interactions among tourists, tourism suppliers, host governments, host communities, and surrounding environments, that are involved in the attracting and hosting of visitors.” Tourism as an industry deserves significant criticism, not least because in many cases it contributes to the decline of natural areas. A form of tourism inspired by the natural history of an area is ecotourism. Travelling to locations full of natural resources for enjoyment, which at the same time protects the fauna, flora and the ecosystem, as well as the people. Below a more formal definition of ecotourism and nature-based tourism is delivered by Goodwin (1996: 288):

” Nature-based tourism encompasses all forms of tourism-mass tourism, adventure tourism, low impact tourism, ecotourism- which we use natural resources in a wild or undeveloped form- including species, habitat, landscape, scenery and salt and fresh-water features. Nature tourism is travel for the purpose of enjoying undeveloped natural areas of wildlife.”

” Ecotourism is low impact tourism which contributes to the maintenance of species and habitats either directly through a contribution to conservation and/or indirectly by providing revenue to the local community sufficient for local people to value, and therefore protect their wildlife heritage area as a source of income.”

Furthermore, someone could say that ecotourism is an educational travelling that provides great knowledge to its participants. The practices of ecotourism are mentioned below:

Green Tourism, Alternative Tourism, Endemic Tourism, Wildlife Tourism, Adventure Tourism, Geotourism, Nature-based Tourism, Responsible and Sustainable Tourism.

1.2 The importance and the role of the sustainable tourism in eco tourism.

Sustainability is generally an ambition of tourism to have the lowest impact in economy, environment and culture as well. Sustainable development has been proposed as a model for a structural change within society. Sustainable tourism is an extension of the new emphasis on sustainable development (Sadler: 1992). One of the first strategies on tourism and sustainability emerged from the Globe ’90 conference in British Columbia, Canada. At this conference representatives from the tourism industry, government, non-governmental organizations (NGOs) and academe discussed the importance of the environment in sustaining the tourism industry, and how poorly tourism developments, that attract the visitors, destroy the quality of the natural and human environment.

To Tourism Concern (1992), sustainable tourism is:

”Tourism and associated infrastructures that, both now and in the future; operate within natural capacities for the regeneration and future productivity of natural resources; recognize the contribution that people and communities, customs and lifestyles, make to the tourism experience; accept that these people must have an equitable share in the economic benefits of tourism; are guided by the wishes of local people and communities in the host areas.”

Eco tourism is a small, though growing industry. There is much faith in the work that eco tourists do and they face a lot of problems and challenges in achieving a sustainable development. Sustainable tourism includes specific practices such as the carrying capacity, the visitor impact management, the visitor activity and the limits of acceptable change that are used in protected areas.

It is essential to note, here, that if these strategies are implemented successfully sustainable tourism will provide historical development and will increase the environmental awareness. Sustainable development and eco tourism are two terms that match together and try to create a guideline for successful tourism in the eco destinations.

1.3 The importance of ecotourism

The principles ecotourism serves are defined by many sociologists the last years and acknowledge the importance of ecotourism. Firstly, ecotourism minimizes the negative impact to the environment and to the local people. Ecotourism provides a big amount of environmental and cultural awareness to both visitors and hosts. The support of human rights is another principle important to mention. Ecotourism provides direct benefits in economy of the local people and improves the sensitivity of the locals for the environment, culture and heritage. Ecotourism provides benefits to both hosts and local people. Ecotourism generates foreign exchange for the country and injects capital and new money into the local economy.

Ecotourism often takes travelers to undiscovered areas where nature still exists with no transformation at all. It gives to the visitor the advantage of education and discovering new places that are far away from the usual trends. Educational ecotourism offers to the tourists the privilege of being aware of the danger they may cost to the environment, in order to protect it. Resorts and hotels around the world started to go green by reducing their energy use and investing their money to eco friendly products. Ecotourism also protects the threatened wildlife of the ecosystems by bringing local and worldwide awareness. As ecotourism works in a location, it respects the people’s culture and values. It provides a chance for relaxation and exploration and evaluation of self.

2.0 Emerging Issues of ecotourism of Galapagos Islands, Ecuador.

2.1 Brief Introduction of Galapagos Islands

An eco – destination that features inspiring stories about destinations and provides great travelling experiences.

The Galapagos Archipelago is a cluster of some 13 volcanic islands and associated islets and rocks located just under the equator, about 600 miles (1000km) west of Ecuador in South America. The oldest of the islands are about 4 million years old and the youngest are still in the process of being formed. These Islands that tourists visit on Galapagos cruises are considered to be one of the most active volcanic areas in the world. About 95% of the islands are part of the Galapagos National Park system, with the remainder being inhabited by about 14,000 people in four major communities (Puerto Ayora, Puerto Baquerizo, Puerto Villamil and Floreana).

The Galapagos National Park Service and the Charles Darwin Research Station jointly operate the islands. The Park Service provides rangers and guides, and is responsible for overseeing the many tourists who visit each year. The Darwin Station conducts scientific research and conservation programs. It is currently breeding and releasing captive tortoises and iguanas. This group of 13 mayor islands and dozens of smaller islets and rocks – all the result of volcanic activity – certainly appear to be out of this world. They are, in fact, an unpredicted wilderness, filled with extraordinary populations of unique species, which have developed apart from humans and their dominating influence. In an effort to preserve the islands as they were centuries ago, the Galapagos have been declared a World Heritage Site by UNESCO. An eco tourism destination with rich heritage and great experiences to offer.

2.2 Presentation and evaluation of ecotourism strategies implemented by Galapagos Islands

Ecotourism was already practiced since the 1960’s in the islands, with two Ecuadorian inbound tour operators based in Quito, working together with an American outbound operator. The number of vessels was small, two cruise boats, twelve passengers 39 sailing vessel and a sixty-passenger luxury liner. At the same time the companies worked very closely with the Darwin station and the National Park. During the 1970’s tourism infrastructure grew slowly, but from 1974 to 1980 it had a boom that almost double folded the amount of visitors.

The foreign owned floating hotels represents the major activity and they are the strong economic and political influence for the islands. The principles or guidelines for Ecotourism projects in the Islands began to develop in the international arena in the 1990’s.

Internet search engines were used to identify ecotourism cruise operations in the Galapagos Islands using the search times “ecotourism” and “Galapagos Islands.” “Adventure” tours and “nature” tours were not used as search terms. As of November 1, 2009, fifteen company websites identified themselves as “ecotours” in the Galapagos Islands. That showed a big movement through internet for the development of tourism in Galapagos Islands.

Education of the local population and visitors in the natural history of the Galapagos is a goal of the Station and the Park and programs are conducted in the Islands and on the mainland. An intensive course for naturalist guides, which is required to supervise visitors to Park sites, is conducted annually. Educated bilingual naturalist guides and auxiliary guides are taken place at Galapagos Islands, offering valuable information and help to visitors.

Firms are acknowledged to be important actors involved in the deployment of resources available to a tourism destination. In turn, successful tourism firms can contribute to building the competitive advantage of tourism destinations through affecting a destination’s tourism product or service. The present study analyses business performance in urban tourism using networks and entrepreneurial perceptions over a city’s asset base as a framework of competitive performance. Business performance is measured in terms of productive efficiency-that is, technical and scale efficiency. Results indicate that networks and entrepreneurial perceptions of a city’s asset base constitute important determinants of the successful operation of tourism businesses.

INTRODUCTION

Tourism has developed into one of the world’s most important industries, with more than 846 million international tourist trips globally in 2006 (World Tourism Organisation). It is also one of the fastest-growing sectors of the UK economy, worth ?85 billion in 2005 and employing some 2 million people (Star UK). As a result, tourism is associated with the injection of revenue into national, regional and local economies.

Ref: www.forestresearch.gov.uk/fr/urgc-7EEGJR

Urban Tourism: The Visitor Economy or Growth of big Cities, Christopher Law examines the relationship between tourism and urban areas. He distinguishes between primary and secondary, and additional elements of city’s tourism resources. Primary elements provide the reasons why tourists use to visit cities. Secondary elements is accommodation and shopping as well as more elements like transportation or tourist information are also very important for the success of urban tourism, but they are not the main attractor of visitors.

Urbanisation and process of acute city growth due to high productive economic activities around the city, often at the expense of rural and agricultural hinterlands, is largely a product of the 20th Century particularly in the wake of the Industrial Revolution and the arrival of Automobile Industry.

‘Globalization’ is promiscuous, controversial word that often obscures more than it reveals about the geographical, environmental, economic, political, social, and cultural changes. It is good used to denote a multi centric, multi scalar, multiform, and multi causal process, which has much less of explanting and more of explanandum. In recent analysis globalization has found to be about place and scale. This argues is that infiltrating of globalization to cities and identities as challenging paradigm.

According to Castells (1993:247), cities are inherently composite entities. That is why they are the result of changing structural determinants interacting with multiple specificities rooted in history. Capitalist to make a change since the crisis of the 1970s has produced the latest structural determinants, collectively termed globalization, which have created new world cities (Friedmann, 1986) or global cities (Sassen, 1991). However this is only part of story. In addition, the historical and cultural characterizing are not constants; their efects on city development alter as changing economic and political bring forth new meanings for old practices (Taylor & Hoyler, 2000).

In urban planning area it is often difficult to track the origin of some concepts as in the sciences. Theories and ideas are often products of collective to try. It would be very difficult to identify who used the term “globalization” for first time. According to Waters whose book titled Globalization is fine primer, Robertson was one of the early users of term (Robertson, 1983; 1992).

The topic Globalisation and the attendant challenges for politics, economics, culture and humanity in the human society has become a source of big concern for religious leaders and leader of thought around the world. Now when joined with the actuality of Urbanisation and Post Modernity, the challenges become even more typical.

The invention in modern communication technology with emergence of the computer or internet, which have defeat space and contract the world to a global village, the globalisation of the economy and industry, by which a few countries are growing ever more affluent, while the fortunes of the number of people are ever worsening.

That is why the phenomenon of internationalisation as well as urbanization and post-modernity which in many ways influence how people live and relate, should be a matter of concern to leaders of the Christian Church. In this matter therefore we shall think carefully about what the world was like before the era of globalisation and what globalisation has brought upon morality – the good, the bad and the ugly aspect of the fact. We should look at the rising trend in urbanization and what challenges it sets to wholesome human existence. Then we shall look at the complex originality of post-modernity and how it challenges our religious, spiritual and social values. We shall then discuss the way

Urban tourism is the group of tourist resources or activities situated in towns and cities and offered to visitors from elsewhere.

Historic attributes of buildings, neighbourhoods’, and special landmarks emphasize the local character of an area. Historic districts are normally very pedestrian friendly with a mix of attractions and amenities that are not so complex.

Not matter if it is for transportation or entertainment, urban waters have always attracted people out of need or pleasure.

Convention Centres and Exhibitions are mostly called as one of the staples of city tourism. In some cities, up to forty percent of those staying overnight have come for this type of business tourism.

Festivals and Events have become a popular means for cities to boost tourism. They range in size and number from one time events like the World Exhibition or the Olympics to annual events like Folk Music Festivals or Gallery Nights.

Friendliness is also one of the most important cultural features of the tourism industry. Professionalism and excellence of service provided to visitors begins with friendliness. Key factors in visitor’s decision to visit a place are friendly, hospitable people.

MAIN BODY

NEW YORK – In his essay “Taming the Bicycle,” Mark Twain cautiously recommended bicycling: “You will not regret it, if you live.” That has always gone doubly for biking in New York. But the city has undergone a two-wheeled makeover. In the past four years, the New York City Department of Transportation has added more than 200 miles of bikes lanes. The number of cyclists has increased 80 percent in the past decade. The city’s goal is 1,800 miles of total bike lanes by 2030.

Earlier this year, National Geographic Traveller magazine did something that might once have been unthinkable: It ranked New York the second-most bike-friendly city in the country, after Portland, Ore. While biking has exploded for New Yorkers, tourists are quietly following. It is, after all, a great way to experience a new place: Faster than walking so you can cover a lot of ground, but far closer to your surroundings than a car.

In New York, it can be dizzying: rolling past Washington Square Park one moment, breezing along the Hudson River the next. In a city where freedom of movement can often feel gridlocked, on a bike, one sails through the throngs. Musician and New Yorker David Byrne wrote in his 2009 book “Bicycle Diaries” that riding through a city “is like navigating the collective neural pathways of some vast global mind.”

The “neural pathways” of New York, though, are often strewn with potholes, aggressive drivers, unobservant pedestrians and – often the worst of all – pushy cyclists. New York has been significantly tamed when it comes to biking, but it isn’t exactly Amsterdam.

Nevertheless, tourists, having long endured double-decker buses and plodding ferries, are understandably looking for a new vantage point. A number of tours have sprung up and found visitors willing to strap on a helmet.

www.msnbc.msn.com/id/39536483/ns/travel-destination_travel/

Tourism in the United States is a big industry that serves millions of international and domestic tourists. Tourists visit the US to see natural wonders, historic landmarks and entertainment venues. Americans seek same attractions, as well as recreation areas.

Tourism in the United States grew vastly in the form of urban tourism during the late nineteenth and early twentieth centuries. By the 1850s, tourism in the United States was fully established both as a cultural activity and as an industry. New York, Washington, D.C. and San Francisco, all main US cities, attracted a huge number of tourists by the 1890s. By 1915, city touring had marked significant shifts in the way Americans perceived, organized and moved around in urbanisation.

Democratization of travel takes place during the early twentieth century when the automobile changed travel. Similarly air travel changed travel during 1945-1969, contributing greatly to tourism in the United States. By 2007 the number of international tourists had reached to over 56 million people who spent $122.7 billion dollars, setting an all time record.

The travel and tourism industry in the United States was among the first commercial casualties of the September 11, 2001 attacks, a series of terrorist on the US. Terrorists used four commercial airliners as means of destruction, all of which were collapsed in the attacks with 3,000 casualties.

In the US, tourism is either the first, second or third biggest employer in 29 states, employing 7.3 million in 2004, to take care of 1.19 billion trips tourists took in the US in 2005. As of 2007, there are 2,462 National Historic Landmarks (NHL) recognized by the United States government. As of 2008, the most popular tourist attraction in the US is Times Square in Manhattan, New York City which attracts approximately 35 million visitors.

New York, Washington, D.C. and San Francisco, all big US cities, attracted a huge number of tourists by the 1890s. New York’s population raise from 300,000 in 1840 to 800,000 in 1850. Chicago experienced a dramatic increased from 4,000 residents in 1840 to 300,000 by 1870. Dictionaries was first published the word ‘tourist’ sometime in 1800, when it was referred to those going to Europe or making a trip of natural wonders in New York and New England. The absence of urban tourism during the nineteenth century was in part because American cities lacked the architecture and art which attracted visitors to Europe. American cities try to offend the sensitive with ugliness and commercialism rather than inspire awe or aesthetic pleasure. Some tourists were fascinated by the vast growth of the new urban areas: “It is a big thing to watch the process of world-making; both the combination of the natural and the conventional world,” wrote English writer Harriet Martineau in 1837.

By 1915, city touring had marked remarkable shifts in the way Americans aware, organized and moved around in urbanisation. Urban tourism became a earning industry in 1915 as the number of tour agencies, railroad departments, publishers and travel writers grew at a fast pace. The expense of pleasure tours meant that only the minority of Americans between 1850 and 1915 can be experience the luxury of tourism. Many Americans moved to find work, but few found time for enjoyment of the urbanisation. As transportation facilities improved, the length of commuting decreased, and income rose. A growing number of Americans were able to afford short time vacations by 1915.

During the first four periods of the twentieth century, long-haul journeys between large American cities were fulfilled using trains. By the 1950s, air travel was part of every-day life for most of the Americans. The tourism industry in the US experienced remarkable growth as tourists could travel almost anywhere with a fast, reliable system. For some Americans, a vacation in Hawaii was now a more regular activity. Air travel has been changed most of the thing from family vacations to Major League Baseball, as had steam-powered trains in the nineteenth and early twentieth centuries.

File:US International Arrivals 1997-2007 chart.png

Forecast tourism

(in thousands)

Origin

2007[27]

2008[27]

2009[27]

2010[27]

2011[27]

Canada

16,691

17,274

17,847

18,409

18,960

Mexico

13,717

14,127

14,529

14,921

15,304

Europe

10,951

11,407

11,822

12,230

12,632

Asia

6,348

6,710

7,050

7,390

7,730

South America

2,166

2,267

2,367

2,466

2,564

Caribbean

1,277

1,316

1,355

1,394

1,431

Central America

737

768

798

829

860

Oceania

804

838

872

905

937

Middle East

600

622

644

666

688

Africa

270

282

294

306

317

www.zaped.info/Tourism_in_the_United_States

New York’s food culture, influenced by city’s immigrants and large number of dining patrons, is diverse. Jewish and Italian immigrants made city famous for bagels, cheese cake and New York-style pizza. Some of 4,000 mobile food vendors licensed by city, many immigrant-owned, have made Eastern foods such as falafel and kebabs standbys of about the same age New York street food. The city is home to many of finest haute cuisine restaurants in the United States.

Sporting events are tourist events. Major places include Yankee Stadium, Citi Field, and Madison Square Garden. Street fairs and street events like the Halloween Parade in Greenwich Village and New York Marathon also attract tourists

Environmental issues in New York City are affected by city’s size, density, abundant public transportation infrastructure and location at the mouth of Hudson River. New York City also plays an important role in national environmental policy because of its size and position or wealth.

New York’s population density has been environmental benefits and dangers of the city. It facilitates the biggest mass transit use in United States, but also concentrates pollution. Gasoline consumption in the city is at the rate the average was in the 1920s, and greenhouse emissions are a fraction of the national average.

The direct effect is the at the time benefit to persons and companies state away giving goods or services to travellers. Indirect effect is the secondary benefits to suppliers of goods and services to the state away indulged companies. For example a food wholesaler giving goods to a restaurant, the model is careful not to include from the impact calculations.

The study entrust the making of a tourism monitoring unit by the US government to regulate the operation of industry as far as the areas of bio-diversity, culture and environment are concerned. The unit, once made should analyze properly and carefully control the negative impacts. It notes that, infrastructure should be better, insecurity weeded out that is likely to scare tourist away and bettering of tourist facilities like large hotels. It also notes that tourism that involved a number of countries and leaves most of the economic benefit outside country be should be discouraged.

Ecotourism is responsible travel to damage, pristine, and usually saved areas that strive to be low impact and small scale. Its purpose is to educate the traveller; provide funds for ecological conservation; state away beneficial for the economic development and political empowerment of local communities; and cultivate respect for different cultures and for human rights. Since the 1980s ecotourism has esteemed a critical endeavour by environmentalists, so that future generations may be experienced directed relatively untouched by human intervention. Several university programs use this technique as the working definition of ecotourism.

Normally, ecotourism focuses on voluntarily, or volunteerism, personal development and environmental responsibility. Ecotourism typically committed to travel to goals where flora, fauna, and cultural heritage are the primary attractions. One of the destinations of ecotourism is to give tourists seeing into impact of human beings on the environment, and to cultivate a greater appreciation of our natural habitats.

Responsible ecotourism contains programs that compress the negative aspects of conventional tourism on the environment and augment the cultural completeness of local people. Therefore, in addition to calculating environmental and cultural factors, a constituent part of ecotourism is the promotion of recycling, energy efficiency apartment, water conservation, and creation of economic chances for communities. For these reasons, ecotourism often supplication to environmental and social responsibility advocates.

ECONOMIC NEGATIVE IMPACT

Increases price of goods and services

Increases price of land and housing

Increases cost of living

Increases potential for imported labour

Cost for additional infrastructure (water, sewer, power, fuel, medical, etc.)

Increases road maintenance and transportation systems costs

Seasonal tourism creates high-risk, under- or unemployment issues

Competition for land with other (higher value) economic uses

Profits may be exported by non-local owners

Jobs may pay low wages

ENVIO|RNMENT NEGATIVE IMPACT

Pollution (air, water, noise, solid waste, and visual)

Loss of natural landscape and agricultural lands to tourism development

Loss of open space

Destruction of flora and fauna (including collection of plants, animals, rocks, coral, or artefacts’ by or for tourists)

Degradation of landscape, historic sites, and monuments

Water shortages

Introduction of exotic species

Disruption of wildlife breeding cycles and behaviours

SOCIAL AND CULTURE NEGATIVE IMPACT

Excessive drinking, alcoholism, gambling

Increased underage drinking

Crime, drugs, prostitution

Increased smuggling

Language and cultural effects

Unwanted lifestyle changes

Displacement of residents for tourism development

Negative changes in values and customs

Family disruption

Exclusion of locals from natural resources

New cliques modify social structure

Natural, political, and public relations calamities

A goal of developing the tourism industry in a community is maximizing selected positive impacts while minimizing potential negative impacts. First, it is essential to identify the possible impacts. Tourism researchers have identified a large number of impacts. Grouping the impacts into categories shows the types of impacts that could result from developing tourism in a community

Tourism can be improved the quality of life in an area by increasing the number of attractions, opportunities, and services. Tourism offers resident’s offers to meet people, make friendships, learn more about the world, and to show themselves to new perspectives. Experiencing different cultural practices rewarding experiences broadens horizons, and increases seeing and appreciation for different an approximation to living. Often, decreasing interest in host cultures is resuscitated by reawakening cultural heritage as part of tourism development, which use to increases demand for historical and cultural. This interest by tourists in culture and history gives opportunities to help in maintain of historical architecture. By learning more others, their differences became less threatening and more interesting. At the same time, tourism often popularizes bigger levels of psychological satisfaction from opportunities made by tourism development and through interactions with who is going to travel.

CONCLUSION

For clarity, the tourism elements presented in this article have been largely treated separately; however, it is important to point out that there is a high degree of interrelatedness among the elements. They are being developed by cities for a variety of reasons including portraying a positive image, attracting visitors, and stimulating the urban economy.

In the present, some of most popular tourist places in Europe are the big cities. We can say that these are compulsory places for tourists and can be considered advertisements for the respective country. Big towns are important for tourism because they are residences of national or regional governments, possesses monuments and important buildings; they are places which host important events and various ceremonies. They are business and commercial centres, host night life and provide multiple possibilities for fun. They are preferred because they provide a large variety of entertainments and full services in a relatively small area.

However, towns must invest in all or in most of the components that make up the tourism area. It is not enough to invest in one or two components. The main quality of urban tourism does not consist in the fact that the existence of a big concentration of tourists cuts down the costs or increases the business efficiency, but in the fact that a large variety of services is necessary for a limited space, which is very attractive for tourism consumers.

Sustainability interfaces with economics through the social and ecological consequences of economic activity. Sustainability economics involves ecological economics where social, cultural, health-related and monetary/financial aspects are integrated. Moving towards sustainability is also a social challenge that entails international and national law, urban planning and transport, local and individual lifestyles and ethical consumerism. Ways of living more sustainably can take many forms from reorganising living conditions, reappraising economic sectors (perm culture, green building, sustainable agriculture), or work practices (sustainable architecture), using science to develop new technologies (green technologies, renewable energy), to adjustments in individual lifestyles that conserve natural resources.

BIBLIOGRAAPGHY

Castells, M (1993) “European cities, the informational society, and the global economy”, Tijdschrift voor Economische en Sociale Geografie, No. 84, pp. 247-257.

Friedmann, J (1986) “The world city hypothesis”, Development and Change, No.17, 69-84.

Robertson, R (1983) “Religion, global complexity and the human condition” in absolute values and the creation of the new world, Vol. 1, New York: International Cultural Foundation.

Sassen, S (1991) The global city. New York, London, Tokyo, Princeton: Princeton University Press.

Taylor, P J and Hoyler, M (2000), “The spatial order of european cities under conditions of contemporary globalization”, Tijdschrift voor Economische en Sociale Geografie, Vol. 91, No. 2, 176-189.

http://www.forestresearch.gov.uk/fr/urgc-7EEGJR

http://www.msnbc.msn.com/id/39536483/ns/travel-destination_travel/

http://www.zaped.info/Tourism_in_the_United_States

Price elasticity of demand and income elasticity of demand. (Ryan air & British Airways Data)

How are ‘low-cost carriers’ such as Ryan air able to achieve cost savings? Fixed costs and variable costs.

Critical analysis of the issues involved in the following article: ‘ BAA Airports: Notice of release of interim undertaking’

Conclusion

Bibliography

Introduction

Ryanair isaˆ¦aˆ¦aˆ¦.

British Airways isaˆ¦..

This document reports the findings of a review of the economics and business literature on empirically-estimated own-price elasticity of demand for air travel for Ryan air and British Airways. It refers to the data on page two of the assignment handout to both above airlines to illustrate and explain the concepts of price elasticity of demand and income elasticity of demand.

The purpose of this study is to report on all or most of the economics and business literature dealing with empirically approximate demand functions for air travel and to collect a range of fare elasticity measures for air travel provide in the data on the second page of the assignment topic and provide some judgment as to which elasticity values would be more representative of the true values to be found in different airline such as Ryan air and British airways, furthermore will evaluate the accomplishment of cost savings of Ryan air through fixed costs and variable costs as well as writing a critical analysis the article on BAA Airports: ‘Notice of release of interim undertaking'(mmc.gov.uk, 2010).

Price Elasticity of Demand and Income elasticity of demand in the context of air travel demand: (Ryan air & British Airways)

We identified two distinct prices for air travel which are price elasticity of demand and income elasticity of demand from the case study for air travel demand which should distinguish among prices for: Low cost carrier (LCC) example of Ryanair and Full Service Carrier (FSC’s) example of British Airways; business and leisure travel. Accordingly, to examine the sensitivity of the demand for air travel to its price, separate analysing of the price elasticity of demand is gathered for each of these two distinct markets.

Price Elasticity of Demand

Dunnett, A. (1988: 260) define Price Elasticity of Demand as a numerical value which describes the degree of responsiveness of demand to changes in prices.

In addition Sloman (2005) believed that the demand for a particular good or service depends on a variety of factors. Key influences include, the levels of consumer income, the price and quality of the services in question and especially services that are close substitutes.

As a general rule, once other influences on demand stay unchanged, a higher price for a product leads in a lower quantity demanded. However, the price responsiveness of demand varies from one good to another and from one market to another (FitzRoy et al, 1998). Since the availability of alternative modes of transportation that are reasonably close substitutes for air transport such as low cost airlines like Ryanair diminishes with distance travelled, it is expected that the demand for air transport will be less elastic for longer flights typical example of British airways with is a FSC’s than for shorter flights typical example of Ryan air.

Just considering an example where Ryanair (a low cost airline) flight’s to

Milan from ?49.99 return and British Airways from ?628 return. The

problem though with Ryanair is that you can find this cheap ticket if

you book it about it well in advance. But if we try to book it on the same day

before your journey the price has gone up at ?179.99 return when British Airways price will be still remaining the same until a week before your journey. Further, international travel tends to be widening over more time than domestic travel, so that the airfare is a smaller proportion of overall trip costs, which makes international travel less sensitive to changes in ticket prices. In addition, leisure travellers are more likely to postpone trips to specific locations in response to higher fares, or to shop around for those locations offering more affordable fares. Consequently, it is expected that the demand for air transport for leisure reasons will be more elastic than business travel who usually travel with FSC’s. According to Anthony et al (2000) Ryan air prices management is systematically offering different prices to different customer segments in response to demand whereas (Kimes, 1989) suggests that the team in charge of yield management need to identify how changes in price will affect their customers. Within the airline industries customer demand may be higher on week ends, during summer months, or at particular times of a day, (Belobaba, 1987). Managers must be able to forecast time-related demand so that they can make effective pricing and allocation decision to manage the shoulder periods around high demand period. However the corporate business traveller during the week becomes a leisure traveller when on holiday or at week-ends. Different occasion find the same consumer having different expectation and needs, (Buttle, 1986). Such a concept is termed elasticity of demand.

According to the Data from the case study downloaded from Ryan air website, the price of the flight is far more higher than the price of the flight on other following days of the week day. However, when approaching the end of the week-end or school holiday, there is a huge demand and the increased demand drives the price up again as customer are returning from their vacation or family are going on holiday. Closer to the date and time of the scheduled service, the price rises, on the simple justification that consumer’s demand for a flight becomes more inelastic the nearer to the time of the service. The low cost airlines such as Ryan air follow the pricing strategy outlined above. Customers booking early with carriers such as Ryan air will normally come across lower prices if they are ready to commit themselves to a flight by booking early. This gives the airline the plus of important how full their flights are likely to be and a source of cash-flow in the weeks and months prior to the service being provided. People who book late often regard travel to their planned destination as a need and they are therefore likely to be prepared and able to pay a much higher price very close to departure. Airlines call this price discrimination yield management – but despite the consider name, at the heart of this pricing strategy is the straightforward but important concept price elasticity of demand.

Ryanair has a seat pricing policy that causes fares to rise as a flight fills up (Ryanair.com, 2010). Following theory of supply and demand, if customer wants a seat so badly, they will pay more for it than otherwise.

Income Elasticity of Demand

It is defined as numerical values which describe the responsiveness of demand to a change in consumer incomes. (Sloman, 2005)

Because of the recession, demand for low cost flights grew rapidly as family with higher income who were travelling with FSC’s before would prefer low cost than traditional airlines and some current low cost customer with low income may prefer domestic flight or would just prefer not to travel by air.

In air travel, FSC’s are essentially joint products consisting of differentiated service bundles that are identified by fare classes. However the yield management systems employed by FSC’s also create a multifaceted form of inter-temporal price discrimination, in which some fares (typically economy class) decline and some increase (typically full-fare business class) as the departure date draws closer. This implies that ideally, empirical studies of air travel demand should separate business and leisure travellers or at least be able to include some information on booking times in order to account for this price discrimination, and that price data should be calibrated for inter-temporal price discrimination: for example, the use of full-fare economy class ticket prices as data will overestimate the absolute value of the price elasticity coefficient. Within the set of differentiated service bundles that comprise each (joint product) flight, the relative prices are important in explaining the relative ease of substitution between service classes. Given the nature of inter-temporal price discrimination for flights, the relative price could also change significantly in the time period prior to a departure time.

In particular changes in real income and the prices of substitutes or complements will affect demand. Alternative transportation modes (road and rail) are important variables for short-haul flights, while income effects should be measured for both short and long-haul.

Oum et al. (1992) provide valuable tools that occur when evaluating the demand models. Air travel demand can be affected by changes in the prices and service quality of other modes. For short-haul routes (markets) the relative price and service attributes of auto and train would need to be included in any model; particularly for short-haul markets such as low cost airline. Failure to include the price and service attributes of substitutes will bias the elasticity. For example, if airfares increase and auto costs are also increasing, the airfare elasticity would be overestimated if auto costs were excluded. The entry of low cost carriers leads to lower fares for a subset of traffic and competitors will offer a supply of seats to match these fares. Lower average fares should lead to lower demand elasticity estimates, while increases in the number of competitors in the market will lead to higher demand elasticity estimates.

How ‘low cost carriers’ such as Ryan air able to achieve cost savings? Fixed Costs and Variable Costs.

Ryan air’s business model is focus around its general low cost philosophy. That is Ryan air attempts to cut all non value adding activities as it strives to drive costs down to the total minimum. Below are typical examples how it drives it’s downwards which include selling directly to its customer over the internet or over the phone rather than via agents and middlemen, thus saving commission cost and administrative cost. Ryan air is a ticketless as most of it customer buy over the internet, in return for a booking reference that is exchanged at the checking counter at the airport for a boarding pass.

The airline has no in flight meals which is a cost saving measure that cannot be much inconvenience to its customer since all Ryan air flights are short haul. Nevertheless has subcontracted catering services on its flights where customer can buy an in flight meal and drink should they wish which is another way of driving price. Cabin crew double up as cleaner and this helps Ryan air to promise a turnaround time at any airport of 30 min rather than 45-60 min that has FSC’s been the norm.

Another cost cutting device, is the typical example of the UK smaller airports such as London Luton, cheaper to fly to from than bigger airports such as Heathrow which it is use at least as its base as they are less congestion and facilitate turnaround times for aircraft to be a lot shorter.

Fixed Costs

Fixed Costs are defined as the Total costs that do not vary with the amount of output produced (John, S. 2005:82)

Ryan air as a LCC operate in the environment of high fixed cost, fixed capacity in the short term, a perishable product and seasonal demand. Virtually all of airline’s costs can be considered fixed. The cost of the capital tied up in the plane, the fuel it take to fly the route, the crew it will take to staff the ground and flight operations insurance, rent, etcaˆ¦ All these cost are fixed once the company decides to fly a particular route and the variable costs associated with serving another passenger on the flight are figure lively peanuts.

Ryan air generates sufficient revenue through ancillary services such as car rentals, accommodation, currency, travel insurance, transactions, refreshments, to cover variable costs and offset at least some fixed cost. Management believes that providing these services through the internet allows Ryan air to increase sales, while at the same time reducing costs on a per unit basis.

Variable Costs

Variable Costs are defined as the total costs that do vary with the amount of output produced (Sloman, 2005: 82)

The relatively low variable costs associated with many capacity- constrained Ryan air allow for some pricing flexibility and give operators the options of reducing pricing during low demand times.

Ryan air always seeks for low variable costs. Below are factors that help Ryanair to maintain a low variable cost:

One type of aircraft, management believes that its strategy of limiting its fleet primarily to three variants of a single type of aircraft from a single manufacturer enables it to limit the costs associated with personnel training, maintenance and the purchase and storage of spare parts, as well as affording greater flexibility in the scheduling of crews and equipment.

Pricing is based strictly upon revenue maximization process that matches the aims and objectives of prices elasticity of demand

Internet booking which cut paper and administrative costs

No airport sales offices/ no cancellations

Charging a surplus for excessive baggage

Maximization of seat capacity per plane

Use of less expensive airport as ‘Ryan air been offered incentives is a controversial one’ Ryan air director of communications. Ryan air further endeavours to reduce its airport charges by opting, when practicable, for less expensive gate locations as well as outdoor boarding stairs rather than more expensive jet ways. Ryan air has entered into in agreements on competitive terms with third party contractors at certain airports for traveller and aircraft handling, ticketing and other services that management believes can be more cost resourcefully provided by third parties. Management attempts to obtain competitive rates for such services by negotiating multi-year contracts at prices that are fixed or subject only to periodic increases related to inflation. One of the typical example is the price of aviation fuel which is directly related to the cost of oil but Ryan air control this through hedging.

All these factors listed above contributed to a low variable cost of Ryan air, a key component in any successful yield management system and provide an opportunity for leverage against its major competitors.

Critical analysis of the issues involved in the following article: ‘BAA Airports: Notice of release of interim undertaking’

Ecotourism is responsible travel to perfect and usually protected areas. With the purpose to teach the traveler, supply capital for ecological conservation and ensure economic development and political authorization, it also promotes value for different cultures and for human rights. Countries in Africa are now focusing on tourism as a cause of growth and diversification, but with limited policy guidance from most donors, despite the sector’s potential. Ecotourism has become one of the fastest-growing sectors of the tourism industry, growing annually by 10-15% worldwide (Miller, 2007). One definition of ecotourism is “the practice of low-impact, educational, ecologically and culturally sensitive travel that benefits local communities and host countries” (Honey, 1999).

South Africa as one of the countries in Africa is obtaining considerable economic remuneration from ecotourism, although negative consequences including removing people from their homes, infringement of fundamental rights, and environmental hazards – which according to Miller far outweigh the medium-term economic benefits (Miller, 2007).A great amount of money is being exhausted and human resources are continually being used up for tourism in spite of the negative effects, and a larger amount of money is put into public relation campaigns to dissolve the criticism from the locals and public.

Tourism directs resources away from other schemes that could possibly supply maintainable and realistic results to pressing social and environmental tribulations. “The money tourism can generate often ties parks and managements to eco-tourism” (Walpole et al. 2001).However there is worry concerning the changes in land-use rights, false hope in the delivery of community benefits, damage to the environment and plenty other social impacts. Indeed it’s an argument to consider eco-tourism as neither ecologically nor socially beneficial, but it is still a strategy for. Indeed many argue repeatedly that eco-tourism is neither ecologically nor socially beneficial, this is somewhat true but it too persists as a strategy for preservation and growth.

“WTTC/WEFA forecast that tourism and travel would account for over 11% of GDP in Sub-Saharan African countries in 1999 and has a growth rate of over 5%.” The tourism system has tremendous financial and political influence. It is said that Funding could be used for field studies aimed at finding alternative solutions to tourism and the diverse problems Africa faces in result of urbanization, industrialization, and the over exploitation of agriculture (Kamuaro, 2007). Tourism has has become the source of conflict regarding the control of land, resources and profits made. It has therefore caused harm to the locals and the topic of profit distribution is one that’s not desired as it leads to

At the local level, ecotourism has become a source of conflict over control of land, resources, and tourism profits. In this case, ecotourism has harmed the environment and local people, and has led to conflicts over profit distribution.

In a perfect world more efforts would be made towards educating tourists of the environmental and social effects of their travels. Very few regulations or laws stand in place as boundaries for the investors in ecotourism. These should be implemented to prohibit the promotion of unsustainable ecotourism projects and materials which project false images of destinations, demeaning local and indigenous cultures. Tourism is often considered volatile. As a global industry, all destinations face the heightened risk of terrorist attacks, which, together with civil strife, war and natural disasters, can terminate demand for the product for a prolonged period. Crime and poor public health standards in a specific destination can greatly reduce demand for an indefinite period after it is evidenced. There are some advantages to Tourism.

Tourism is labor intensive with some two employees required per hotel room in developing countries, depending on the type of hotel and local skill levels. Comparisons of investment costs per job in tourism compared with manufacturing, presuppose that countries have a free choice between these alternatives, as well as comparable market entry for each activity. Nevertheless, there is some evidence that tourism is more labor intensive than manufacturing and employs a higher proportion of the low skilled and women. Only in a few small, resource-rich developing countries will the opportunity cost of such labor equal the wages payable in tourism.

An often-neglected facet of employment in the sector is that tourism, in fact, creates “good jobs”. Physical working conditions are healthier and safer than in sugar cane, mining, logging and, often, manufacturing, among other economic activities. But, also, hotels and tourist services create jobs such as waiters, maintenance engineers, and drivers, which are relatively well paid, particularly when supplemented by tips. Finally, it appears that tourism can generate more than sufficient taxes to compensate for public investments. Although, it is said that the negative effects of tourism outweigh the positive ones. There seems to be a lot of resentment and feelings of inferiority amongst the locals.

The government should have to choose one over the other (and the priority should be the culture and the people over financial revenue). Even if it means less money will be received from tourists by portraying a culture like that of the Philippines. The government cannot attempt to do both. One of the real issues in tourism everywhere in developing countries is how to extend the benefits to the poor and to local communities.

Although ecotourism is intended for small groups, even a modest increase in population, however temporary, puts extra pressure on the local environment and necessitates the development of additional infrastructure and amenities. The construction of water treatment plants, sanitation facilities, and lodges come with the exploitation of non-renewable energy sources and the utilization of already limited local resources. Aside from environmental degradation with tourist infrastructure, population pressures from ecotourism also leaves behind garbage and pollution associated with the Western lifestyle.[17] Although eco-tourists claim to be educationally sophisticated and environmentally concerned, they rarely understand the ecological consequences of their visits and how their day-to-day activities append physical impacts on the environment. Ecotourism is now also considered to be playing a role in this depletion. While the term ecotourism may sound relatively benign, one of its most serious impacts is its consumption of virgin territories (Kamuaro, 2007).

These invasions often include deforestation, disruption of ecological life systems and various forms of pollution, all of which contribute to environmental degradation. In some cases, the resentment by local people results in environmental degradation. As a highly publicized case, the Masai nomads in Kenya killed wildlife in national parks to show aversion to unfair compensation terms and displacement from traditional lands.[ One of the most powerful examples of communities being moved in order to create a park is the story of the Masai. About 70% of national parks and game reserves in East Africa are on Masai land (Kamuaro, 2007). The first undesirable impact of tourism was that of the extent of land lost from the Masai culture. Local and national governments took advantage of the Masai’s ignorance on the situation and robbed them of huge chunks of grazing land, putting to risk their only socio-economic livelihood.

Ecotourism often claims that it preserves and “enhances” local cultures. However, evidence shows that with the establishment of protected areas local people have illegally lost their homes, and most often with no compensation (Kamuaro, 2007). Pushing people onto marginal lands with harsh climates, poor soils, lack of water, and infested with livestock and disease does little to enhance livelihoods even when a proportion of ecotourism profits are directed back into the community. The establishment of parks can create harsh survival realities and deprive the people of their traditional use of land and natural resources. Ethnic groups are increasingly being seen as a “backdrop” to the scenery and wildlife.

While governments are typically entrusted with the administration and enforcement of environmental protection, they often lack the commitment or capability to manage ecotourism sites effectively. The regulations for environmental protection may be vaguely defined, costly to implement, hard to enforce, and uncertain in effectiveness. The increased contributions of communities to locally managed ecotourism create viable economic opportunities, including high level management positions, and reduce environmental issues associated with poverty and unemployment.

Because the ecotourism experience is marketed to a different lifestyle from large scale ecotourism, the development of facilities and infrastructure does not need to conform to corporate Western tourism standards, and can be much simpler and less expensive. There is a greater multiplier effect on the economy, because local products, materials, and labor are used. Profits accrue locally and import leakages are reduced.[19] However, even this form of tourism may require foreign investment for promotion or start up. When such investments are required, it is crucial for communities for find a company or non-governmental organization that reflects the philosophy of ecotourism; sensitive to their concerns and willing to cooperate at the expense of profit.

In conclusion, Ecotourism and Tourism in Africa as a whole should be reconsidered. The depletion of natural resources and cultures is a drastic change that’s most of the time now worth the finance and is irreversible. The bad outweighs the good and Tourism should be accepted and its effects should be reduced.

The internet has provided opportunities for travelers to book their travel directly online thereby circumventing the traditional travel channels i.e. travel agencies. Nowadays even airlines have started encouraging travelers to book tickets directly on their websites thus avoiding having to pay 10% commission to the travel agents. Thus it has made it an urgent need for traditional travel agents to find new methods and strategies to stay in business (Yamanouchi, 2004).

While serving as an intermediary channel between travelers and travel service providers, what the internet has done is to eliminate the relevance of the traditional intermediary (travel agents) or at the very least make that traditional role very different in today’s practice (Taylor, 2003). Today, would-be travelers can arrange for their own travel by booking straight from the providers themselves via the internet (Law, Leung & Wong, 2004). Online travel websites more or less eliminates the need for traditional middlemen, who as Law, Leung & Wong (2004) notes; are debatably on the verge of extinction.

Internet mediation may ultimately lead to disintermediation of travel agencies since the travel service and product providers can sell their services and products directly to the travel clientele. Yet, the internet and its travel websites does not portend only doom for the travel agents. Travel agents still have the advantage of providing personalized services especially in offering advice to travelers with a personal touch. This ability to make services personal will guarantee that the role of travel agents remains secure. (Law, Leung, & Wong, 2004).

The internet has become a distribution channel in the travel industry such that the role of traditional intermediaries like travel agents has also changed. Yet rather than be patients of the internet, travel agents have seized the opportunity to employ the internet in their daily operations. Travel agents are using the internet to market themselves and to advertise their services. They are also offering some of their services online (Vrana, & Zafiropoulos, 2004).

The travel agents themselves have found it easy to make arrangements and bookings over the internet for their clients thus reducing their operational costs. The internet adoption among travel agents has made their services more efficient and timely and gaining a reliable means of communication with their contacts and clients (Vrana, & Zafiropoulos, 2004).

Literature Review
How Travel Agencies Take Advantages of the Internet and Avoid Its Negative Effects on Their Business

Travel agents are nowadays using the strategy of ‘If you can’t beat them, join them’. They have started using the internet to their own advantage by using the internet to market their own services online and by contacting travelers via their own websites. They also provide services that travel sites cannot provide like personalized services and complex travel arrangements and iteneries (Vrana, & Zafiropoulos, 2004).

Travel agencies also nowadays focus more on building lasting relationships rather than trying to maximize their profits. They do this by providing quality personalized services. This is a strategy adopted by most travel agencies in Japan (Zhang, 2004).

By so doing, travel agencies are today exploiting the internet opportunities such as virtue communities, to build what travel websites cannot, personalized relationships with clients (Maurer, 2002). This way, they can exploit the benefits that come with the internet, and avoid losing their role in mediating travel, by making their services uniquely personalized. Travel agents form networks, create newly branded travel services, exploit the internet to market themselves, get specialist packages and products unveiled by online agencies and seek to provide consumers with competitive deals if they have to survive (Downes, & Legg, 2006).

Why People Book Over the Internet

Customers mainly book over the internet since it is convenient, cost saving, and resourceful. It is more accessible and less expensive. Travelers also can compare the various rates offered by different service providers and thus make a much more informed choice. Online service providers offer more competitive rates and better discounts due to the low operational costs. Customers can also access extensive amount of information on the internet. It is also very useful for working professionals who do not have time to go and meet travel agents to make their travel plans when they can just do their booking when they are at work or at home (Heung, 2003).

Customers also have the opportunities of learning more about the places they are visiting from the internet and thus able to book hotels online. The bottom line that one is able to make all arrangements needed before traveling without involving any intermediary as long as he or she has access to internet. The advent of internet has also been coupled with people acquiring personal computers and internet providers thus bringing the technology closer to the people (Lewis, Ira, Semeijn, Janjaap, Talalayevsky, & Alexander, 1998).

Why People Book with Travel Agents

The main reasons why customers book via travel agents are the security concerns (credit card scams), interpersonal communication i.e. face to face transactions, human contact in transactions, and ability to make custom made travel packages as opposed to by travel websites (Vrana, & Zafiropoulos, 2004).

Travel agents are able to make all arrangements for their clients unlike in travel websites for example hotel bookings, sightseeing bookings, airport drop and pickup, and flight tickets, something they might not be able to or might lack the time to do (Buhalis, & Licata, 2002). Most clients who go to travel agents are also those who want to build relationships with their travel facilitators and those who need the guarantee of human element in transactions (Cheyne, Downes, & Legg, 2006).

There are some circumstances where by customers are left with no choices other than using the agents. This happens mostly in situations whereby one has to pass through different destinations. It is very hard to do several online bookings when one is traveling as it means dealing with many different entities. When one has to pass through different destinations, it is easier to use the international agents who have offices in different places around the world. By doing this one is able to deal with one company because he just have to state his or her demands to the agent and all his needs will be taken care of. (The Travel Insider, 2010).

Repeat Clients in Online Booking

Customers will go to the same website and online portals or directly to particular service providers using the internet if such providers have created brand name of products, built global marketing, have lower cost due to discounts, facilitates labor saving means and if they have standardized processes, products and service delivery (Vrana, & Zafiropoulos, 2004). Improved service delivery and competitive website features are the main ongoing preferences for online service providers in Hong Kong (Chu, 2001).

Another reason why customers repeatedly use one online service provider is that they were initially satisfied with the service that was provided and do not want to research another serviced provider (Cheyne, Downes, & Legg, 2006).

Repeat Clients for a Travel Agent

Customers mainly repeatedly book via travel agents due to the relationship that they have built with that travel agent (Vrana, & Zafiropoulos, 2004).

Therefore travel agents in Japan are using this strategy of building lasting relationships with customers to improve business rather than just focusing on maximizing profits by trying to attract more customers (Zhang, 2003).

If a customer is satisfied with a travel plan that a particular travel agent has made for them they prefer using the same travel agent to make all their future travel plans. Therefore providing good quality service also generates repeat clientele for travel agents (Wyne et al., 2001).

Demographics Characteristics that Predetermine Online Booking and that of Travel Agency Booking

The choice of internet and travel agent booking is influenced by sex, age, education, income, and occupational characteristics of customers (Furr, & Bon, 1998). Studies indicate that internet bookings are mainly made by females aged between 21 and 30, educated and earning high incomes and working in education related professions who prefer commercial lodgings during travel and who predominantly prefer to travel by air (Heung, 2003).

On the other hand the demographics of non- internet travel agent users is mainly married men traveling with families on a long vacation from medium earning brackets aged between 36 to 45 years. This is mainly because when traveling with families travel agents can provide much more extensive information on the types of hotels and which types of hotels offer certain types of services and also they provide information on the different types of sightseeing options and which one would suit the family’s requirements best (Heung, 2003).

Effects of Airlines on Internet Bookings

The industry of travel agency involves communication and processing information of its clients. Initially, the agencies had access to details of flights so the customers had no alternative. The fact the airlines are able to do their advertising online and directly to the customers and the customers are able to apply for their travel tickets online has affected the travel agencies a lot. It is also of paramount importance to note that airlines have realized this trend and have thus reduced fares, as they no longer pay the commissions they used to pay the agents (Bennett, Marion, Lai, Chi-Wen, & Kevin, 2005).

The customers needs have also changed significantly in their demands due to the development in IT since one is able to learn all the exotic places there are to visit at the touch of a button. It is more convenient for a customer to do his or her research at the convenience of his or her sitting other than going to an agent. It is worthy noting that it is cheaper to book online since one will be dealing with the airline directly without involving an intermediary. The airlines are also happy to serve their customers directly for they will be able to understand their needs more. The advent of the internet technology gave the airlines an opportunity to be close to their clients and they realized that the need for an intermediary is not that important. (Frias, Rodrigueza, & Castanedaa, 2008).

It is important to note that a minute means a lot in the amount one may pay for an air ticket since the fares change from time to time. When one is passing through many points, it is less demanding to use the agent for they will be able to fix his or her time according to the lowest fares possible. By doing this you end up saving money and time since you will be having someone who will be taking care of your travel plans. When one is doing booking, it is important to do research so as not end up paying more than what he would have paid through an agent (Farooqui, 2010).

Refernces

Bennett, Marion; Lai, Chi-Wen Kevin (November 2005)The impact of the internet on travel agencies in Taiwan http://www.ingentaconnect.com/content/pal/thr/2005/00000006/00000001/art00002

Buhalis, D., & Licata, C. (2002). The future of eTourism intermediaries. Tourism

Cheyne, J., Downes, M., & Legg, S. (2006). Travel Agent vs Internet: What influences travel consumer choices? Journal of Vacation Marketing. 12(1), 41

Chu, R. (2001). What online Hong Kong travelers look for on airline/travel websites? International Journal of Hospitality Management. 20(1), 95-100.

Farooqui, S. (2010, April 20). Travel Agent and Internet Marketing – Impact, Benefits, and Planning. Retrieved June 9, 2010, from http://ezinearticles.com/?Travel-­Agent-­and-­Internet-­Marketing-­-­-­Impact,-­Benefits,-­and-­Planning&id=4141656.

Fields, J. (2007). Great weather, deserted beach, wonderful holiday. The Sunday Herald. March 25.

Frias D. M, Rodrigueza M. A., Castanedaa J. A,(Feb 2008) Internet vs. travel agencies on pre-visit destination image formation: An information processing view , Retrieved June 09,2010, from http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6V9R-4NKJ174-1&_user=10&_coverDate=02%2F29%2F2008&_rdoc=1&_fmt=high&_orig=search&_sort=d&_docanchor=&view=c&_searchStrId=1364306231&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=192643fd560ef019b68e8e8f888325e2

Heung, V. (2003). Internet usage by international travellers: reasons and barriers. International Journal of Contemporary Hospitality Management. 15(7), 370-378

Law, R., Leung K., & Wong, J. (2004).The Impact of the Internet on Travel agencies. International Journal of Contemporary Hospitality management. 16(2), 100 – 107.

Lewis, Ira, Semeijn, Janjaap, Talalayevsky, Alexander(June 22 1998) The impact of information technology on travel agents. Retrieved June 09, 2010 from http://www.allbusiness.com/technology/695794-1.html

Machon, N. (2008). “High-street travel agents are losing out to their online rivals (Survey)”. New Media Age. Available at http://www.nma.co.uk/opinion/analyst-speak-high-street-travel-agents-are-losing-out-to-their-online-rivals/39912.article

Management. 23(3), 207-220.

Maurer, E. (2002). Internet for the Retail Travel Industry. London: Delmar Cengage learning.

Monaghan, K. (2006). The Travel Agent’s Complete Desk Reference. New York: The Intrepid Traveler.

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Vogel, H. (2001). Travel industry economics: a guide for financial analysis. Cambridge: University of Cambridge Press.

Vrana, V., & Zafiropoulos, C. (2004). Tourism agents’ attitudes on internet adoption: an analysis from Greece. International Journal of Contemporary Hospitality Management. 18 (7), 601-608

Wyne, C. Et al. (2001). The impact of the Internet on the Distribution Value Chain: The Case of the South African Tourism Industry. International Marketing Review. Vol. 18 (4). pp. 420 – 431.

Zhang, Z. (2004). Organizing customers: Japanese travel agencies marketing on the Internet. European Journal of Marketing. 38(9/10), 1294-1303

Introduction

The hospitality industry is one of the most important industries globally since it generates billions of dollars across the world. This industry is large and it indirectly and directly employs staff in different professions including hotel industry, tourism industry, air travel industry and other industries. The hospitality industry mainly relies on disposable income of clients and presence of leisure time since many services in this industry are enjoyed during leisure time (Beaver, 2002). This industry is an important revenue earner in different economies especially those which rely on tourism as a major source of government revenue. However, the hospitality industry is a very sensitive industry which thrives on economic and political stability of various destinations and economies. Political and economic instability has a direct adverse effect on this industry and may lead to drastic revenue losses by such economies (Clifford, 2008).

It is therefore important to analyze this industry in relation to available opportunities and present threats in order to predict future trends. This paper will assess the future trends in the hospitality industry. The available opportunities and present threats will be used to ascertain these trends. The paper will focus on both a global approach and an approach from the United States business environment. Recommendations on what should be done to improve the future of the hospitality industry will also be given. The discussed issues will be summarized at the end.

Future trends
Short term decline of industry due to economic crunch

The hospitality industry is one of the most affected industries as far as the global economic crunch is involved. This industry relies on disposable incomes of families and due to the effects of the crunch; people are no longer able to afford holidays and leisure activities. Almost all countries experienced adverse effects of the crunch and the tourism industry was one of the most affected. For instance, tourism in Europe declined by over 5% over the past three years, due to effects of the financial crisis (Theobald, 2008). In the US, the industry declined by 3% in terms tourist arrivals. Worldwide, the tourism industry declined by an average of 4% over a similar period, which translated to 880 million tourists (John, 2010). Although many economies are struggling to reduce the effects of the crisis, the hospitality industry will be among the last to enjoy the benefits of massive financial injections to economies by governments. This is because services in the hospitality industry are considered luxuries by many households and luxuries are the final needs satisfied by rational beings after all other needs are exhausted.

Long term growth due to massive investments

In the long run, the hospitality industry is expected to grow largely due to the massive investments which are being undertaken around the world. One of the destinations where there is heavy investment in the industry is the Middle East and specifically Dubai. Billions of dollars have been invested in Dubai with the purpose of developing infrastructure needed to make it a world class destination. Investment in hotels, properties, golf courses, transport, buildings, cultural museums and other tourist attractions have been realized in recent years. This includes the worldaa‚¬a„?s tallest building and a seven star hotel (Conrad & Alison, 2009). Other governments which rely on tourism as an industry for revenue collection have also made massive investments. This shows that in the long run, consumers will have a larger variety of leisure activities to choose from, which will encourage the growth of the hospitality industry.

Implementation of total quality management

There has been a gradual improvement of service provision in the hospitality industry due to the implementation of total quality management. This strategy involves improvement of the quality of services provided to increase efficiency, reduce costs and meet the needs of all stakeholders in the industry. The Malcolm Baldridge Awards introduced in recent years has helped improve quality of service in this industry since it targets total quality management of firms in the industry (Christine, 2006). The Ritz Carlton hotel was one of the first to win the award, and to set new standards in provision of service in the hotel industry. Many firms in the hospitality industry have recognized the importance of improving service provision due to intense competition and market awareness of products offered. The improvement of service provision is likely to encourage the growth of the industry in the long run.

Potential threats and opportunities

There are various opportunities which can be exploited in the hospitality industry. There are also various threats to this industry and these should be mitigated to ensure the industry is successful in the long run. These opportunities and threats will be discussed below;

Opportunities

The major opportunity in the hospitality industry is investment in infrastructure needed to fuel the growth of the industry and target new and emerging markets. It has been discussed that many governments and private firm are investing in the industry especially in the Middle East. It is important to encourage consumers to demand such services if the effects of the global economic crunch are to be mitigated. This can be done through providing markets with unique services which were previously not offered and reduction of product prices to encourage local tourism in different countries (Jacques, 2000). Local tourism has a very large potential in many destinations, although it is underexploited in most cases. Packages which encourage local tourism should be developed and services which meet local needs made available in order to enable long term growth of the industry.

Threats
Global economic crisis

One of the greatest threats to the future of the hospitality industry is the global economic crunch. The global economic crisis has led to reduction of the growth and development levels of most economies. This crisis has also led to massive unemployment and reduction of the disposable income of many families (Lennon & Malcolm, 2008). It was previously discussed that the hospitality industry thrives on disposable income of clients and presence of leisure time. The global economic crunch has reduced the disposable income of families. It has also led to reduction in leisure time since many employees strive to work for longer hours in order to earn higher salaries which can mitigate effects of the crisis. The reduction of incomes and leisure time has led to a decrease in purchase of services in the hospitality industry by consumers. Fewer people are able to travel for leisure or have meals at restaurants and hotels since they consider these services to be luxuries. Unless adequate steps are taken to reduce the effects of the global crunch, many firms in the hospitality industry may face losses in the long run.

Implications of the trends on hospitality industry

The implication of these trends in the hospitality industry is a short term decline and a long term growth of the industry. Although the industry has declined recently due to the effects of the financial crunch, there is potential for growth in the future due to massive investments and consumer awareness of products offered. However, the private sector and government have a responsibility of cooperating of this growth is to be achieved. Massive investments, innovation of unique services and consumer awareness of products offered is key to achieving this growth. It is important to make the following recommendations if long term growth of the hospitality industry is to be achieved in future.

Recommendations
Government interventions

There are various government interventions which should be implemented if the hospitality industry is to grow and develop in future. Government interventions should mostly involve measures which stimulate economic growth and development as well as the creation of an environment which encourages the growth of the hospitality industry (Cooper, 2005). This includes a financial package which is geared towards encouraging more public investment and economic stability of firms especially during the current global economic crisis. It should also involve development of infrastructure which will ensure that the hospitality industry is able to meet the diverse needs of clients.

Product differentiation

Product differentiation is important in meeting unique market needs across different environments. It involves developing unique products to meet diverse needs in different environments. Firms in the hospitality industry should undertake research on market needs and develop products which meet unique needs across different environments (Wilkerson, 2003). This will ensure that customersaa‚¬a„? needs are satisfied and they remain loyal to providers of such services. In turn, the hospitality industry will enjoy long term profitability.

Terrorism has deep history since the cold war but this issue became most salient after terrorist attacks in September 11 2001 and July 7 2005. According to U.S department of state (2002), more than 3000 people of different nationalities were killed in the terrorist attacks in September 11, 2001. These attacks were the conspicuous example of terrorism on global level. Terrorism affects businesses around the world in both the long term and short-term. Czinkota (2004) cited that terrorism influenced long-term karma of entire industries, for example tourism, retailing and manufacturing industries. There are number of definitions of terrorism, which are complex and deliberate different dimensions. Alexander et al (1979) define terrorism as “a threat or absolute use of enforcement and inclemency to achieve a political goal bye means of intimidation fear, and coercion”.

The beginning of 21st Century changed the world drastically and the first reason behind this was the incident, which occurred on September 11 2001. The devastating terrorist attacks on the World Trade Center in New York. On this date, the whole world came into shock when America was under attack. The second incident, which happened on 7 July 2005 in London added fuel to fire. As both these countries are the main economies of the world, these incidents had a hue impact on businesses all around the world.

In this assignment, we will try to find the overall impact of these incidents left on the United Kingdom businesses. We will also focus our attention on the changes and new developments which happened, after these two events, in UK organizations.

This threat of terrorist attacks poses a continuous atmosphere of risk for all businesses in UK. This risk itself creates extension for treatment of risk in management theories. The majority of management literature theories adopt the term ‘uncertainty’ as a factor of unpredictable environment, which may influence the performance of organization in certain ways. The environment effected by terrorism also has a factor of unpredictability in it.

2. Effects of terrorism on UK economy and businesses:

According to the European Commission 2001 report, terrorists direct their attacks against businesses for more than any other target. Terrorism can bring any organisation or economy to its knees because of its fear and businesses fear for more attacks may happen, so they afraid to operate as normal. Increasing cost of security and putting new systems in place can cost huge amount of money to businesses ultimately decrease in the market value of businesses? Terrorism has its massive effects on UK economy and business activities. It affects deleteriously on businesses strategies and most businesses operating in the effected areas gets impact from the thrust of government policies to quell terrorism.

Businesses internationally and locally are particularly affected by terrorism because when incidents like 9/11 happen, it disrupts the supply chain and disturbs business activities in addition to interrupting information flows. It also effected on the industrial demand as well as consumer demand. This falling demand may have different outcomes which may comprises of losses of customers contracts, customer trust, reduced share of the market and a significant decline in sales, all of which could lead to business failure. For example according to the report of BBC 22 July 2005, Bombs will cost just UK tourism alone; ?300 million.

Terrorism has direct effect on UK organizations, somehow indirectly affects on buyers, which definitely declines in buyer demand creates unpredictable shifts, interruption in supply chain, disruption in the flow of policies, regulation and also has a wide impact on the macroeconomic factors of the country. Czinkota et al (2004) cited that over all every factor in economy gets the impact of terrorism and definitely responds to the action of terrorism. Modern terrorism is particularly onerous, because of characteristic of its time. The impact of terrorism on macroeconomic is crucial, customers feel themselves in stress and some kind of continuous fear, which definitely effects the spending patterns.

When terrorist attacks happened in New York and London, they affected businesses in a direct and indirect way and disrupted the economic process. Both of these attacks were on the main economic cities of the world trade. To make the effects of the terrorist activities stronger, terrorist groups targeted public and private organizations. Businesses are more attractive target for terrorist as their presence is everywhere and their aftermaths are deeper on society and on the economics.

2.1 Direct effect of terrorism on businesses:

Direct effects of terrorism comprise of instant and immediate consequences of terrorism. According to London Chamber of Commerce and Industry 2005 report, after the World Trade Center attacks, the IFM downsized its forecast of UK economic growth by 0.6% from 2.4% to 1.8% and according to Office of national Statistics data UK actual growth was 1.6%, which was weakest economic growth for more than a decade. According to the Institute of Directors report in 2002, after New York attacks 20% of private organizations had increased business security, 52% of organizations carried regular risk assessment to assess their vulnerability to attack.

The effects of 7th July 2005 London bombings on UK organizations was even severe than the September 2001 attacks. The business confidence in London has slumped to the lowest levels not seen since the eve of Iraq War 2003. Number of UK organizations was expecting that the economy will improve in coming year but a dramatic slump given the -16% balance seen in the first quarter of the year. In August 2005, The Bank of England reduced Interest rates by one-quarter percent to improve economic conditions. The attacks brought bad time for the London not just in seasonal but economic term as well. According to Time Online (2005) UK’s economic growth was seen to be the weakest since 1993. Many organizations respondents reported that their employees were scared to travel on public transport and preferred to travel by cars or taxies which lead to increased travel costs. For the people and organizations, which effected individually the loss was quite tragic. Moreover, direct effects include sudden increase in cost of product, decrease in production and output of firm, and loss of valuable human capital.

2.2 Indirect Effect:
2.2A Change in consumer demand heterogeneously:

While the indirect effects of terrorism in UK include prominent decrease in buyer demand, unplanned shifts and negative interruption in supply chain. Its also compel authorities towards the new policies and their immediate implementation. Indirect effects also include foreign relations of the UK organizations and country’s governments, which affects trade. According to Loewenstein et al (2001) specifically indirect effects contains demand of consumer that may interrupt the deal of purchase or supply. It is evident that industry operates according to the demand of buyer. This is infecting a widespread of common fear of individuals, which in results decline in demand of industrial goods. Daniel Steel (2008) narrates that economic research also has roots in correlation and among behaviour and emotion. The negative emotions like state of fear definitely effects consumer behaviour, even after the happening of those events

Czinkota et al (2004) narrated that there may be need of making of policies, laws, and regulations for public and private organization in reaction to these terrorist attacks. Whilst these actions are intended to improve security conditions, they also cause delays in efficient business operations.

2.2B Indirect effects on organizational operations:

The other indirect effects of terrorism on UK organizations was discontinuity in supply of essential goods, services and resources and sometime unplanned shifts. These problems cause serious impact on the operation of organizations. In July 7 London terrorist attacks on local transportation and logical system (supply chain) effects badly on businesses around London. Due to suspension of supply chain all businesses struggled and also decrease in efficiency of organizations. It is common problem, while in terrorist attacks, the short-term shortage of services, good, input raw materials and components occurs; it took certain time to recover from this kind of shortage.

2.2C Macro economic phenomenon:

The macro economic phenomenon of London and New York terrorism was visible decline in per- capita income, decrease or sudden change in stock market value and increase in unemployment. Such trend affects the UK economy and consumer expectation. The long run impact was decrease in export and declines in GDP and tax revenues and the living standard of people.

3. Dealing Terrorism Shaped BCCM Planning:

In this part we will critically analyse the different management approaches and strategies, which could be helpful for organizations to deal with the global crises like September 11 2001 and London Bombing 2005. In this part of the assignment will evaluate performance and adaptation of suitable strategy by organizations on different kind of business activities and scrutinize the different business strategic views, which an organization can adopt for minimizing the effects of terrorism. We will also discuss different ways that organizations can benefit in term of increase in profit and minimise the impact of terrorism. With the threat of terrorism, organizations have to focus on the particular resources which are available to deal with these threats. Except terrorism, there are some other threats (financial and non-financial) which are also effect the organizational performances at the same time, organizational management have confine resources and mental steam to deal with effects of terrorism.

3.1 General strategy:

According to Alexander Dean C (2004), terrorism is a possibility, or it leads toward appearance of other possibilities. This kind of act effects producer and as well as consumer psychology, its behaviour of consumption and its buying patterns. The impact of terrorism effects specifically in economic, industrial, political and legal context of external environment.

3.2 Consider Terrorism as a factor while planning:

Within the significant increase in risk of terrorism and uncertainty in the field, now all UK organizations are making policies or developing future strategies by considering terrorist threats. Organizations also need to include terrorism as a risk factor; selecting and targeting the potential threats and indentifying the different sources of threats are the most important tasks for organizational managers, while developing future strategies to grow and run the business locally or globally.

3.3 Sourcing, production and distribution:

By considering the operation of the organization in value chain that directs it toward production of products and their development. Increasingly most of the UK organizations are getting their supplies from all over the world. The bitter risk of terrorism affects the internationally complex system of value chain. Mostly terrorist groups attack on the sites of organizations and their logistic system directly or indirectly. The indirect impact of terrorism is the imposition of new rules and regulations, which emerges suddenly in the reaction of attacks by the government sectors which cause disruption in value chain movements. Due to the negative interruption in supply chain, it causes difficulties for organizations to fulfil the production orders and customer demand.

Due to tight security regulations at borders of all countries, a lot of the businesses have difficulties while fulfilling their operations. For example, Royal Mail suspended vehicles from moving between central London sites and in and out of London for the bulk of the day in July 7 2005. At least 25% of UK’s mail move through London every day even if the final destination is elsewhere. The distribution and logistics are one of the most important direct and in direct impacts of terrorist attacks on UK organizations, that’s why this became the duty of senior managers to incorporate the risk of supply chain in their future planning.

Mentzer (2001) cited that most of the organizations have established system of value chain, which may helps organizations in getting raw material and goods from their suppliers and necessary components from all over the world. This is common practice for various organizations, due to globalization decrease in trade barriers and a secure supply chain infrastructure and advance telecommunication sources. The risk of terrorism is a major threat and challenge for the supplier organizations. As long as the organizations are expending their businesses around the world, the impacts of risk are also increases on the operations of the organizations. Accordingly, organisations have to plan the arrangements to reduce the thrust of terrorism and its consequences on the supply chain structure of companies. According to Ghemawat and Del Sol (1998) overall the companies focuses themselves to find out the other possibilities in order to make available the supplies for dealing in the competitive environment in the emergent of risky conditions. Flexibility directs towards versatility, which is a potential to act alter activities and apply adapted activities, for fulfil the need of the specific situation.

3.4 Consequences of terrorism on Pricing:

Organizations have to change price plans according to change in environment. Pricing is one of the fundamental factor which effects with the impacts of terrorism. For example in UK after Terrorist attacks, the insurance rates charged by insurance firms in big cities (like London, Manchester) where terrorist attacks occurred or had a higher chance of occurring, were much higher compare to small cities. Transportation companies may also charge a higher rate for carrying goods from or to risky areas. Similarly, uncertain environment of business pulls organizations to think about their pricing strategy.

The sudden effect of terrorism is increase of necessary products like oil and food supplied etc. because of their shortage. Transportation companies charge higher fairs because of high risk to move into that area. Organizational management have to keep in view uncertainty while defining and developing the pricing strategy. The situation of commodity market is relatively different, where prices may fluctuate quickly with the flow of information, the price must soften in for those commodities.

3.5 Global strategy vs. multi domestic strategy:

All UK organizations those who adopted multi domestic strategies had relatively less impact of terrorism of 07 July 2005 and 11 September 2001 terrorist attacks than those adopted global strategy. As far as the risk and fear of terrorist attacks increases, the theories emphasise more on multi domestic strategy in contrast with global strategies, which establish more meaningful ways to deal with uncertainty. According to Ghemawat and del Sol (1998) some of the resources may reduce the flexibility of organizations which in results cause interruption in performance of the business internationally, these resources are highly location specific and according to the demand of local markets.

4. Conclusion

London is an economic centre and making the capital safer to do business in should be national priority for the Government. Different research suggest that London business community is not safer than it was before 07 July 2005 attacks. According to LCCI report, majority of UK organizations still perceive that there is very high risk of terrorist attacks in London again. This perception has fallen since last year and more than half of UK organizations have contingency plan in place to deal with terrorism effects on business.

Studies show that the economic impact on UK organizations has not been as severe as initially feared. Many organizations resumed services on 7 July 2005 and next day they started delivering as normal. Many organizations, those who had no contingency plans, started work to have one and other started to update their existing plans to minimise the effects of these attacks.

However many UK organizations revealed that 9/11 and 7/7 terrorist attacks had vary little tangible impact on them and business confidence had affected for the short period. However, it had huge impact on very important sector of London economy such as tourism, transport (trains and airlines) and retail sector.

UK employment market has not increased since 7th July 2005 attacks but employment terms were already bleak in London before attacks. Many organizations were expecting unemployment would increase in coming years before July 2005 attacks. Nevertheless, in reality London economy shook off the impacts of 11 September 2001 and 7 July London terrorist attacks.

It is evident from history that an unexpected and lengthy critical situation affects performances of organizations. The terrorist attacks in London and New York gave deep shocks to the businesses. Sometimes messages from these terrorist groups, that they can attack anywhere with extremely harmful weapons, results in businesses losing confidence and increased costs to the businesses and economy. Many organizations still have fear of terrorist attacks on the businesses although the UK government is trying to protect the public and private organizations. The targets of the terrorist are usually both kind of locations, public buildings like agencies etc, and private sector like business offices of staff of companies. At present majority of organizations are well prepared for any sort of sudden and unexpected terrorist event compared to July 2005.

The basic purpose of this study is to identify the impact of terrorism on businesses and how BCCM planning can help UK organizations to reduce the impact of terrorist attacks. For minimizing the impacts of terrorism managers develops different kind of strategies and sometimes managers can easily recover loss and can get continuous increase In profit if they choose right strategy for pricing in the response of terrorist attack.

5. Recommendations:

All organizations need to provide educational programs to all staff regarding terrorism and help them to prepare themselves for unexpected events like terrorism.

Government needs to provide intelligence support to help deal with terrorism effectively.

Businesses need to strengthen the relationship between themselves for detecting and fighting terrorism.

To encourage organizations, government need to offer disaster recovery loans and other loan guarantee programs to help organizations to recover form destruction of terrorism.

As the threat of terrorism increasing, so while evaluating international and domestic marketing strategies, managers have to consider effects of terrorism on businesses. In order to targets markets managers have to select those markets and industry zones where the threat of terrorism is at lowest or comparatively less effected.

As the rapid increase in the risk of terrorism, it is necessary for organizations to discover and develop the methods of supply chain and other channels of distribution, and adopt new strategies for logistics related channels.

For long term, prospective organizations may bring diversification in their supplies, by increasing in the number of supplier.

The hospitality industry is in the waist of venturesome ,verdicts .there are two challenges , which are effecting hospitality industry, the first challenge is globalization and second one is economical recession.

Hospitality industry is hit by the global financial crisis, mostly tourism is involved with money, during economic recession, people don’t like to spend much money for entertainment, they are started to think for saving money for basic needs like food shelter and family necessities.

Any way because of recession hotel industry is in risky position, according to economical data the hospitality industry need, find away to bring normal position.

Organization Background:

Marriott is most popular and leading hotels in the world, first Marriott was opened by J Willard and Alice S Marriott, in Washington D.C (U.S), in 1927.also Marriott has more than 2800 properties, almost in 70 countries.

Marriott planning to open more hotels and resorts different places in different countries. they plan to target the business strategies; Marriott developed the” courtyard by Marriott concept” approach to new product development. Marriott gives customer card (for regular customers) it gives 30%discount on the bill. The major in come for the hotels is from rooms Marriott is very good at there.

1. Events: Weddings and meetings: Marriott gives different types of packages for the weddings, Marriott is one of the best places to celebrate the weddings, and Marriott provides special accommodation for the couple, Marriott gives more facilities for sports, it’s provided the golf court in Resorts, They provide number of banquet facilities with, qualities service. They main theme is give good service to the customers and build-up the business strategy.

2. Inquiries: Marriott hotel handles the business inquiries from all over the world, Marriott’s human resources is exhausting survey of local market requested by U.K hotels in U.K. local knowledge of local staff is most comprehended for the local inquiry.

Rationale for the chosen topic:

In this research on proposed topic due to my previous working experience in hotel Marriott, Hyderabad, India, there my position was a supervisor, during that time, my hotel was affecting by the economy crunch, not only that hotel but almost all hotels were facing same problem, the business has been getting down.

The human resources were having more problems, instead of taking new staff, they were using same staff for extra work, they cutting the jobs, and decreasing the salaries. And there were more competitions between other hotels, Therefore this topic persuade to research on the specified objective below.

Research objectives:

The research objective is to critically investigate the affects of global recession on the tourism and hotel industry, in this process how hotel industry seek away from recession.

The research objectives are listed below:

1 .The first objective is to recognize the several challenges, lying in hotel industry.

2. The second objective is resolving the different, solutions to economic recession and constructs the intensity.

3. The third objective is to produce several strategies, which is allocated in the economic recession challenges, with another shove.

Research questions:

This proposed research aims to answer the following questions: How can the credit crunch and recession change the hotel industry as a whole? Answering the above question will lead to the subsequent questions like: How would the Hotel Marriot take it up as a challenge? And what steps would it follow to overcome the recession? Why and how are they planning to reduce the accommodation tariffs? What are the reasons for the credit crunch and recession? And finally what procedures would they put in place in order to overcome the present recession?

Literature Re-view:

In this recession period competition started between the hotels, the competition is depend on, quality of restaurants and type of acommbidation and tariff ,hotel Starwood, Hilton, Inter Continental, the Accor groups are the main competitors for Marriott hotel.

“In recent years the global tourism and hospitality industry has experienced many serious crises and disaster, including terrorist attacks political instability, economical recession”. Ref: (Boniface and Cooper, geography of travel and tourism 476).

This proposal agree the above article ,according to author ,the hotel and tourism industries has been reaching problems with political and economical recession.

The economy is depending up on the state, when the economy is decreased the recession will happened. People taken the more loans and houses on mortgage, they couldn’t know whether they can return or not, during the economy slumps they were unable to return the money to banks, at the same time the banks are started to get loses, hence the recession started.

After 9/11 attack the hotel industry has suddenly changed, they have lost major part of income.

Hotel industry is depended with luxury and expensive, during recession people have started to change their thinking’s, as enjoyment is just part of life, instead of spending money for enjoyment they started saving money to important necessities. And people have no money, most of the employees are losing their jobs, they just scaring about their future.

During the recession the hotels has been facing more problems, because they can’t afford the own money to run their business, and banks are not lending the money to any, business organizations.

“Unfortunately, the growth in the U.K sector has not been matched by the provision or detailed analysis of information sources. Typically supply side statistics are usually limited to room stock, where as demand side statistics are usually confined to occupancy percentage”. Ref: (Paul, A. Phillips hospitality management 147-154).

According to author the hotel business is depended with occupancy percentage, when the room Occupancy rooms high automatically the profit would be high. According to research above statement shows, credit crunch and economical recession.

Credit crunch: where the low money to lending for business and interest rates are very high is called credit crunch. During the 2007 their for successful business, most of the business consumers facing more problems by credit crunch. Banks are scared to give loans for business, at the same time, customers also not depositing their money in banks, because the customers also fearing about credit crunch and they are keeping money with them. And high rates of interests also struggling business companies, no chance to start big business organization hotels. So credit crunch is affecting the major hotels.

“Although hotel insolvencies have increased by over 150% from the end of 2006 to October 2008 there will be further failure in 2009 when the full impacts of reduced demand will be felt”. Ref: (Stephen Broom, Financial Times, nov23, 2008).

According to author, Hotels are loosing their profit by offering low rates of acommbidation; Marriott has been getting down the over all profit.

People taken the more loans and houses on mortgage, they couldn’t know whether they can return or not, during the economy slumps they were unable to return the money to banks, at the same time the banks are started to get loses, hence the recession started.

During the recession the hotels has been facing more problems, because they can’t afford the own money to run their business, and banks are not lending the money to any, business organizations. Hotels are loosing their profit by offering low rates of acommbidation.

“Assesses changes occurring in the UK hotel market during 1997 and relates these to current and predicted future developments. Identifies the key issues affecting supply and demand, competitive success and likely impacts and influences on the UK market during 1998”. Ref: (Trevor Ward, Contemporary Hospitality Management 270-273).

According to Ward the key issues are raising on product and demand , most of the hotels following same way, just they decrease the room cost, they aim to attract the customers in the recession by the same way they has been gaining loses.

“The general economic factors also affect the hotel industry, bad whether, the credit crunch and a decline in job, work against the industry as holiday travel is curtailed or eliminate”. Ref: (Roo Sadegi Financial Times, n.d.).

According to Roo, the hotel industry is affecting by whether and economical recession, most of employees are losing their jobs during the recession. It is hardly affecting the industry, employers also, not interesting to recruit the new staff, why means they are unable to pay wages to staff, so they are cutting jobs frequently. Not only in U.K most of countries affecting by economical recession.

Data collection method:

1. Primary data collection method

2. Secondary data collection method

Primary Data Collection Method:

This primary data contain in-dept interview with the assistant general manager of hotel Marriott and customers, the interview for manager will be conducted by telephone, and whole conversation will be tape recorded.

This interview estimated to between half an hour to an hour, questions will be prepared advance in a particular schedule. The questions will be having clear idea about area, what we have to cover. This is research of process is devolved by (Gill and Johnson 1991).

Secondary Data Collection Method:

Information will be gathered through online, books and news papers. This research proposal contains more information from online because no much literature about this research (Saunders, Lewis and Thorn hill). The data collection methods give brief idea about above research proposal.

Methodology:

Research methodology performs the important function in explaining the type of research strategy that the researcher may assume pass leading a research and it clarifies how the research is departing. The research is very important so it has main intention as information of the examiners, examine and normal (Jankkowicz, 2005). It explains how data would be collected, and gives idea about which methods to be used.

As the principal indented of the researcher is to ”investigate the affects of global recession on hotel and tourism industry with hotel Marriott, allocate access would be principally inductive in character. The data collecting method in-depth interview (Saunders, Lewis and Thorn hill, 2007), this interview will not be the prepared questions, it will be according participant, and would be very clear ideas (Alyan Bryman, Emma Bell, 2007).

Data Analysis:

The research process contain both qualitative and quantitative data analysis approach, this is developed by (Saunders, Lewis and Thorn hill, 2007), data gathered through, in-depth interviews in telephone. This research will developed, based on grounded theory, use of this proposal is data analysis could carry out in a minor formalized.

This research could also create of the data management, statistical analysis software such as statistical package for the social sciences (SPSS). This software is admittance from the center; it will be used great full presentation of graphs, tables.

Resources Requirement:

For this research proposal, required largely from on-line. And need library facilities for declared copies, books and literature Re-view. Even tough, its not obtain much literature review. The beginning of the ground work will presume the comprehensive utilize of telephone amenities. It is primary proper to the lengthy way to approach into Hotel Marriott and models supply by the organization. Following interviews of customers also carried by telephone or internet rely on the interviewees` priority.

Time Scale:

Table: Gantt- Chart (Feb 20th to Apr 29)