Globalisation in Different Sectors of the Travel and Tourism Industry - Research Proposal Example

Globalisation in different sectors of the travel and tourism industry from hotel chains to the UK’s leading tour operators Research Proposal a. Title Globalisation in different sectors of the travel and tourism industry from hotel chains to the UK’s leading tour operators b. Reasons for choice of the specific topic In modern commercial markets, the survival of companies in all industrial sectors is a challenging target. More specifically, because of the expansion of globalization around the world, firms are facing the dilemma to retain their traditional practices or to adapt their strategies in the principles and the techniques proposed by globalization. Moreover, it has been proved that the performance of firms within the particular industries is closely related with globalization; the firms that have not ‘adopted’ corporate techniques proposed by globalization face severe difficulties to reach the customers in order to achieve a specific level of profit. There is also the opposite view, that globalization has not offered the advantages supposed to and that many of the firms that have been influenced by its principles still struggle to survive in their market. Regarding the above issues, it has been supported by Sethi (2002, 89) that ‘a strong argument can be made that globalization and the unrestricted flow of capital, goods, and services lead to the creation of wealth and prosperity among all participating nations’. Travel industry has been traditionally a sector with specific interest internationally. More specifically, the particular industry has been considered as a crucial sector for all national economies around the world especially in countries where tourism is well developed leading to significant profits. Under the above terms, the role of globalization in the development of travel industry worldwide should be examined thoroughly in order to evaluate the potentials of the specific industry for future growth and the level of its dependency on globalization. It should be noticed that the fact that travel industry refers usually in areas all around the world, cannot lead to the assumption that the particular industry is influenced heavily by the globalization. For this reason, the examination of the particular topic was considered to be a good chance to identify and evaluate the level of influence of globalization in travel industry as it can be differentiated in accordance with the national business principles in countries worldwide. c. Plan c1. Aims, objectives and parameters The methods used by globalization when intervening in the travel industry of Britain are going to be the main subject of current paper. The reference to the specific country has been decided because of the significance of the particular industry for the British economy. On the other hand, because of the geographical position of Britain, the country has been traditionally considered as a significant ‘basis’ for tourism around the world. Moreover, the development of financial and retail sectors have helped towards the increase of investors and consumers from all countries around the world. In this context, the relation of the local economy with globalization should be monitored in order to come to specific conclusions for the prospects of the British economy in the future. Regarding this issue it has been noticed by Ulijn et al. (2000, 293) that ‘a global economy requires business organizations to cultivate their international holdings by respecting the national differences of their host countries and coordinating efforts for rapid innovation’. In the case of Britain, the intervention of globalization in the local travel industry could help to identify the elements of globalization that have helped towards the increase of the performance of the particular sector throughout the years. Under the above terms, current paper will refer to a series of issues, like the following ones: a) which is current level of development (performance) of British travel industry, b) are there any standard practices followed by businesses in the particular sector? c) which is the position of British travel industry in the international market and d) Which are the prospects for the performance of British travel industry in the future? c2. Methodology Current paper will refer primarily to the literature published for the travel industry with a specific reference to the British travel industry. The views stated by the theorists in the particular field are going to be combined with a series of data retrieved through the use of similar empirical studies. Statistics and other figures related with the issue under examination are also going to be used in order to support the views stated in current paper. Primary research is also going to be ‘engaged’ in order to acquire data presenting current business practices in firms operating in British travel industry. Through this tool of research, the personal views of customers will also be retrieved and evaluated in order to help towards the improvement of the conditions held in the specific area of the British market. The use of all material described above can guarantee the validity and the credibility of all assumptions formulated in relation with the issue under examination. c3. References Charles, T. A., Hofstede, G., Mueller, C. B., Deusen, C. (2002). What Goals Do Business Leaders Pursue? A Study in Fifteen Countries. Journal of International Business Studies, 33(4): 785-900 Cooper, C., Wahab S. (2001). Tourism in the Age of Globalisation. Routledge. London Hugenberg, L.W., Lacivita, R.M., Lubanovic, A.M. (1996). International Business and Training: Preparing for the Global Economy. The Journal of Business Communication, 33(2), 205-217 Sethi, P. S. (2002). Corporate Codes of Conduct and the Success of Globalization. Ethics & International Affairs, 16(1): 89-104 Ulijn, J.M., Duill, M., Robertson, S.A. (2004). Teaching Business Plan Negotiation: Fostering Entrepreneurship among Business and Engineering Students. Business Communication Quarterly, 67(1), 41-51 2. The research plan The examination of the issue will be begin by gathering all necessary material through research in the relevant institutions and organizations. The British travel industry is also been examined in relation with the performance of the private firms operating in the particular market. Data from both the above sources (public and private sector) are going to be collected and evaluated appropriately. More specifically, the data and information retrieved through the research are going to be examined thoroughly in order to decide on their appropriateness for the specific subject. The evaluation of the material gathered is going to take place subsequently trying to identify the similarities and differences between the firms that operate in the particular market. The development and the analysis of the material gathered will take place at a final stage trying to combine the views of theory with the results of the empirical research (if not any, then relevant results are going to be presented through similar studies and ‘experiments’. The method used for the research in current paper, i.e. the questionnaire has been considered to be a significant ‘research tool’ presenting the views of all parts of the specific industry, i.e. of entrepreneurs and customers. 3. Literature Review The role of globalization in the travel industry worldwide has been examined primarily by Chung (2002, 289-290) who found that “geographers generally agree that globalization should be viewed as a set of mutually constitutive tendencies comprising both material processes of transformation and counter movements, and contested ideologies and discourses that operate across a variety of geographic scales”. On the other hand, it should be noticed that the implementation of practices of globalization within a particular corporation needs to follow specific schemes trying to prove the particular relation with the relevant industrial sector. The role of globalization in the development of the business performance is presented extensively in the work of Mueller (1994, 407) who came to the conclusion that “several aspects of work organization, government policies and training arrangements have changed substantially over the last decade or so, and multinational companies have been effective in diffusing best practices across borders: one implication is that organizational and globalization effects may complement or even counteract the societal effect”. In other words, globalization can strongly affect the effectiveness of business practices and for this reason it would be necessary for any relevant scheme to be reviewed in advance in order to identify possible reasons of inappropriateness for a particular organization. Towards this direction the study of Charles et al. (2002, 984) showed that “perceived goals of successful businesspersons show that the national component in goals is real and robust; there are no globally universal business goals”. The above views can lead to the assumption that “it is ‘vital for international business representatives to understand the host culture; they must be aware of traditions, rituals, myths, attitudes, and beliefs held about a variety of issues and behaviours in order to respond in an acceptable and culturally sensitive manner” (Hugenberg et al., 1996, 215). For British firms - belonging to the travel industry - that operate abroad, the adaptation of the traditions held in the country of origin to the local ethics is necessary. From another point of view it has been proved by the study of Cooper et al. (2001, 6) that “cultural differences between individual tourist destinations will continue to play an important role, among other factors, in the choice of a holiday destination; however, a transcending global cultural understanding might eventually emerge cutting across various cultural diversities with each having its local flavour”. The intervention of globalization to the business activities of British firms belonging in the travel industry cannot be denied. However, specific principles should be followed when the principles of globalization are applied in the particular industry trying to keep the national traditions even when operating abroad. 4. Presentation of findings In accordance with the results of the survey conducted in relation with the issue under examination, the following trends were measured in the British travel industry: a) the majority of tourists prefer the traditional methods of booking, b) there is a growing trend for use of the Internet in communicating with firms operating in the travel industry, c) prices are formulated in accordance with the trends of the national economy rather than the international financial and political changes and d) firms operating in the area are mainly of small and medium size. On the other hand, it should be noticed that there is no particular preference for firms that are known globally. In most cases customers seem to prefer the firms that operate in the local market rather than those operating in the cities or only in the Web. 4. An evaluation of the project The investigation of the influence of globalization in the travel industry in Britain will help to understand better the business culture applied in the particular country with a reference to the specific industrial sector. The trends of the market and the customer preferences regarding this activity will be also measured in order to be used as a critical indicator when examining the development of other industrial sectors within the British market. At a next level, the principles of globalization will be examined as of their effectiveness. From a first point of view, globalization seems to be an unavoidable choice for businesses around the world. However, the presentation of the performance of firms operating in the British travel industry will prove that globalization cannot offer significant advantages apart from improving the ‘image’ of a firm in the international market. Even in this case, the results of this improvement should not be considered as guaranteed regarding the financial performance of the firm in the short or the long term. Bibliography Cleverdon, R. (1998) Vision 2020, Madrid: World Tourism Organisation Hall, D., Richards, G. (2000). Tourism and Sustainable Community Development. Routledge. London Keller, P. (1996) Globalisation and Tourism, AIEST Tourist Review, 4. and AIEST Editions, 38, Switzerland: St Gallen Mathieson, A., Wall, G. (1982) Tourism: Economic, Physical and Social Impacts. London: Longmans Pearce, D.G. (1995a) Tourism Today: A Geographical Analysis, 2nd edn. Harlow: Longman Uysal, M. (1998) ‘The determinants of tourism demand: A theoretical perspective’, in D. Ioannides and K. Debbage (eds) The Economic Geography of the Tourist Industry: A Supply-side Analysis. London: Routledge, pp. 79-95 Read More