Key Success Factors in Tourism Industry - Example

Running Head: Operations Report Operations Report Name Course Lecturer Date Table of Contents Table of Contents 2 Executive Summary 4 Business and industry 5 Description of the business 5 Current and future trends 5 Key driving forces 6 Key success factors 6 Product/ Services 6 Product lines and attributes 6 Area of differentiation 7 Operations Plan 7 Operations objective 7 Physical presence 8 Location 8 Premises 8 Layout 9 Facilities and maintenance 9 Processes and supplies 10 Product/service process 10 Materials 10 Suppliers 11 Inventory management 11 Managing seasonal variations 11 Regulations 12 Human resource planning 12 Employees and positions 12 Work schedule 12 Full-time employees 12 Training 14 Remuneration 14 Legal requirements 15 Operational feasibility 15 References 16 Executive Summary The intended company will operate in the tourism industry offering a variety of services related to tour and travel. Online travelling excursions and registration and video conferencing are some of the current trends in the industry. Optimal balance between price and quality is the key future trend. Increase in family income, reduced air travel costs and high retirement rate are driving forces in the tourism sector. Key success factors in this industry are competent personnel, effective planning and extensive marketing. Product differentiation is vital in the tourism sector because so many firms are operating in it and competition is so high. Besides a description of the business and industry, the report will include operation objectives, physical presence of the business, facilities and maintenance, processes and supplies, human resource planning, regulations and legal requirements and operation feasibility. Business and industry Description of the business The business will be a tour and travel firm, which will operate in the tourism industry. It will offer services like accommodation, facilities, meals, car hire and transport services to holiday destinations and other places, hiring of tents, swimming pool, boat riding and flight booking. By offering a wide range of services, the firm will be able to have a wide customer base since it will cater for almost all tourism related needs. The booking of flights for our clients will be done through collaboration with one of the best airlines. Current and future trends According to Hall (2005), the tourism industry is one of the fastest growing industries and a lot of innovations are being put in place. One of the current trends in this industry is the use of online travelling excursions where people book for tour packages online. In addition, online registration is present in this industry and is aimed at updating potential clients on upcoming events or trips. Moreover, facilities to tourists such as spa credit, gift cards and complimentary dining as well as video conferencing are among the current trends. One of the future trends in the tourism industry is an optimal balance between price and quality of the services as well as products being offered. More so, eco-luxury travel is without doubt finding its location in this industry. Another future trend in the industry is traveler-centric buying. The provision of exotic travel and tailor-made experiences is also coming up. The tour and travel sector has a lot of opportunities in the industry hence my business idea is very relevant (Hall, 2005). Key driving forces Increasing family income is the dominant driving force in the tourism industry since families are in a position to save money to go for holidays. Additionally, the mounting percentage of retired employees is a major force in the industry since such people have a lot of time as well as finances to spend. Furthermore, air travel costs are going down because of competition between several airlines operating in the country thus people from low and middle classes can afford to take flight to tourist destinations. A craving to explore the world is also a key driving force in the industry (Conrady, 2007). Key success factors The success of a company in the tourism industry will depend on several aspects. Having qualified experienced and hospitable employees is a key success factor in a tourism venture since high quality services and products will be guaranteed. Moreover, extensive marketing is vital in the tourism business so as to create awareness of the services and the products the business is giving to potential customers and to remind the current customers on the same. Effective planning is also a major success aspect in the industry since it enables business activities to be carried out in an organized and effective manner (Sharma, 2005). Product/ Services Product lines and attributes The business will be more of service oriented than product oriented. It will offer accommodation services including breakfast to both guests on full board as well as those who will be visiting different leisure joints during the day and come back to sleep at the business rooms. A big assortment of meals will also be available. Car-hire and transport services will also be available for guests to visit animal parks and other places. The firm will also have conference facilities for holding seminars and dinner parties by other organizations. Moreover, there will be a variety of tents with different sizes that will be particularly targeted at guests who like spending time in the wilderness with family members and friends. Since the firm will be near the beach, boat riding services will also be available for our customers. Lastly, booking of flights for our customers as per their destinations will be done so as to make travelling easier by ensuring that the customers travel on time. With all these services, the firm aims at ensuring that each customer’s interest is catered for an overwhelming holiday experience. Area of differentiation Singh (2008) argues that, there are so many businesses operating in the tourism industry and product or service differentiation is important. Our first area of differentiation will be meals. Chefs with different experiences in the food industry will be employed to ensure that all types of meals are available since we expect guests from all parts of the world. Additionally, boat riding and conference services will be offered for free to all the guests who will be at the premises on full-time. Moreover, a return air ticket will be included in all other service charges at a discounted rate with a free transport from and to the airport. All these will give the business a competitive advantage over its rivals. Operations Plan Operations objective The business’s core objective is to be able to provide the best tour and travel services to all sorts of customers from different parts of the world at affordable rates by giving discounts to them. The firm aims at giving its clients the value of their money through quality services and products. Another objective for the firm is to present its guests especially foreign guests with a home feeling and exotic holiday experience through enhanced hospitality and wide variety of meals be it Indian, Australian, Chinese or African dishes. In addition, the business aims at ensuring that cases of missing flights by their guests are minimized hence it will be doing flight-booking for their guests. Physical presence Location Coastal regions are one of the best locations for hotels and other leisure businesses. The tour and travel firm will be located at the coral coast region near the Ningaloo-Shark bay. The main advantage is that, it has a shoreline which will facilitate boat-riding and a natural swimming ground for the guests. Sun-bathing will also be made possible during summer. Moreover, the firm will be have a water-front since it will be facing the ocean a situation which will give the place a natural setting and cool breezes especially in hot weather. In addition, while at Ningaloo, guests can easily visit Francois Peron National Park to see wild animals and conduct bonfires since it is near. Furthermore, Ningaloo reef’s yearly coral springing attracts humpback whales, manta rays, dugongs and whale shark which is the largest fish in the world hence tourists will have the chance to see it. The only disadvantage of the location is the risk of being attacked by the shark and whales. This location has several advantages that make it a perfect location for the tourism venture (Australia Coral Coast, 2012). Premises The premises will be bought after a thorough examination of the several premises that will be available. The cost of the most appropriate premises that will enable the business to offer its intended services and products will be approximately $ 1.9 million. Once the premises are bought, several alterations will be made to reach the required standards. Purchasing is considered the best option because construction is very costly in terms of funds and time. With leasing, renovations may be restricted by the owner of the property hence the original set up may not measure up the required standard (Property Wire, 2012). Layout Entrance Parking area Offices Conference Hall Rooms Shoreline Bar and Restaurant Kitchen Hotel Garden Swimming Pool The premises layout is considered as very appropriate in enhancing production efficiency as well as fast and efficient service delivery. The offices are located near parking area so that guests may be received and be attended to by the receptionist as soon as they arrive. More so, the kitchen is situated close to the restaurant and bar for easy delivery of food and drink orders for the guests. Facilities and maintenance The firm will buy a standby generator which will be used for lighting during power shortage which will cost around $ 2,000. A lawn mower going for about $ 650 will also be necessary for trimming grass in the garden. Moreover, a washing machine will be bought at $ 750 for washing beddings and towels for rooms, table-cloths, curtains and staff uniforms. The offices will need six computers, six printers, a scanner and photocopier which will cost around $ 6,300. A public address system will be purchased for use during conferences it will cost $ 3,000. Maintenance and servicing needs of all facilities will be reported to the maintenance department who will then attend to them where possible or call specialists to attend to them (Ryan, 2003). Processes and supplies Product/service process Barman Customer Waiter Chef In the product/service process, a customer will give the waiter his order whether it is for drinks or food. Once the waiter receives the order, if it is for a drink, he will take to the barman while if it is food, it will be taken to the kitchen. The waiter will then receive the drink from the barman or food from the kitchen people and take it back to the customer. Materials The materials that the business will require may be categorized into fuel, stationery, food stuff, drinks and rooms accessories. Under fuel, cooking gas will be required and diesel for the generator and lawnmower. Stationery includes receipt and invoice book, staples, office pins, printer ink and pens. Food stuff will comprise of vegetables, fish, chicken, beef, and fruits among others. Drinks will comprise of alcoholic drinks, mineral water and soft drinks. Room accessories include washing detergents, toilet paper and bathing soap. Suppliers Several suppliers will be approached regarding the supply of different materials. The choice of the best supplier will be based on price, quality of materials, location and consistency of supply. An aggregate of the four aspects will be estimated. Payment agreement with the suppliers of drinks and some of the foodstuffs for a credit period of one week will be made. Also, the supplier has to agree to delivery what is ordered at the premises. Inventory management Different ordering times will be set for different materials. Drinks will be ordered on a monthly basis. Orders for food stuffs will be made twice per month this is because some foods like beef and fish tend to change taste once they stay in the freezer for long. Safety stocks for both drinks and food stuff will always be maintained to cater for any abrupt demand from unexpected visitors. In order to avoid overstocking and damage, a maximum stock level will be kept. A minimum stock level after which reordering will be made will be maintained to avoid running short of some items (Andrews, 2007). Managing seasonal variations The tourism business is highly affected by seasonal variations. Strategies for dealing with these variations are paramount. During winter, it is very cold and most guests prefer being indoors and taking hot beverages. As result, the business will ensure that, hot beverages and food are adequate to cater for the situation. The firm is also planning to introduce sports like ice-skating for the guests during winter. In spring, temperatures are so high and thus the business will have cold drinks and water in plenty. Regulations The firm has to be registered under the Companies Act and a business license from the municipal will be needed so as to commence the business. In addition, the business needs approvals from the health ministry because it will be dealing in food stuff. Moreover, environmental approval will also be needed due to matters concerning waste disposal (Mak, 2004). Human resource planning Employees and positions A total of forty five employees will be hired as follows; general manager, relations officer, finance controller, accountant, account’s clerk, receptionist, two cashiers, two drivers, ten waiters, two chefs, four cooks, ten room attendants, swimming pool guard, three grounds men and five security officers. All employees will be employed on a fulltime basis except chef and cooks, waiters, cashiers and room attendants who will work in shifts. The employment sources for all positions will be the human resource department. Work schedule Full-time employees Day Time Work schedule for employees on shift The employees that work on shifts keep on changing from day to night shift meaning there are no specific employees who work during the day while other work at night. Training All the employees who will be employed will be professional in their respective fields but extra training will be done on customer service since the business will be dealing mostly with handling customers. Management training will be offered to the manager and the financial controller. Employee performance will be assessed using customer feedback on quality of service and efficiency in discharging duties in each position. Remuneration A basic salary for each position will be given based on a compromise between the human resource department and the employee. Then different rates for house, transport and medical allowances will be given on each position. Monthly contributions to the national security and hospital insurance fund will be deducted from the salaries. The firm’s remuneration is a favorable one since it considers the welfare of the workers. Legal requirements The main legal requirement in relation to employment of workers is minimum wage compliance. In order to ensure that the requirement is met, the firm will give salaries and wages that are above the needed wage level. The other requirement is certificate from the public health ministry for the employees who will be handling food. The firm will sign a contract with a nearby health centre where the workers concerned will go for checkups and get medical permits (Simpson & Simpson, 2011). Operational feasibility From above, the business idea is technically feasible because the firm will have the necessary human resources and finances to effectively run the business. Success in the tourism industry is highly dependent on the competence of workers in dealing with customers. More so, all the necessary equipment is available a feature which enhances the feasibility of the idea. Generally, I have the capacity to operate the business since adequate planning is in place and all the necessary resources are available. References Andrews, S. (2007). Introduction to tourism and hospitality industry. New Delhi : Tata McGraw-Hill. Australia Coral Coast. (2012). Shark Bay - Ningaloo National Landscape. Retrieved May 8, 2012, from http://www.australiascoralcoast.com/attractions-events/natural-wonders-of-the-coral-coast/shark-bay---ningaloo-national-landscape Conrady, R. (2007). Trends and Issues in Global Tourism. Springer. Hall, C. M. (2005). Tourism, recreation and climate change. Clevedon: Channel View Publ. Mak, J. (2004). Tourism and the economy : understanding the economics of tourism. Honolulu : University of Hawai'i Press, cop. Monczka, R. M. (2010). Purchasing & supply chain management. Hampshire : Cengage Learning EMEA, cop. Property Wire. (2012, April 19). Coastal Real Estate Prices Up in Australia . Retrieved May 8, 2012, from http://www.nuwireinvestor.com/articles/coastal-real-estate-prices-up-in-australia-59091.aspx Ryan, C. (2003). Recreational tourism : demand and impacts. Clevedon: Channel View Publications. Sharma, K. K. ( 2005). Tourism and development. New Delhi : Sarup & Sons. Simpson, B., & Simpson, C. (2011). From Heritage to Terrorism:Regulating Tourism in an Age of Uncertainty. Taylor & Francis. Singh, L. K. ( 2008). Ecology, environment and tourism. Delhi : Isha Books. Sutherland, J. (2008). Essential Business Studies for Aqa As Le. Folens Ltd . Read More