Cultural Theories and Tourism - Essay Example

? International Hospitality Management Question Introduction Culture is combined mentalities that differentiate members of specific group from the rest of community therefore national culture is a collective way of thinking of group of people within national boundaries. Cultural factors include way of life, norms, morals and customs of a group of people. According to Clark (1990, P.66), national culture is the principal personal characteristic that is found among the populations of the country or companies and the originations that operates across the boundaries must align themselves with the cultures of the country they work in. However, Boonghee at el ( 2011,P.194) argues that a organization should not set its strategies based only on the national culture especially for product that are designed for individual users since individuals may show different cultural behaviors from the behavior perceived at national point. This is more common in countries that have population that has different cultural practices and backgrounds. National culture concept is more applicable in societies and nations studies but in business perspective individual consumer culture very important and company’s strategies can be valuable if it’s developed and implemented at individual consumer level. Tourism industry is complex business with both goods and services being sold together by different companies (Manrai and Manrain 2011, P. 25). Consumer’s decisions are influenced by different factors such as community, cultural, emotional and personal preferences but cultural factors are the most influential of all (Manrai and Manrain 2011, P. 25).This paper will critically analyze relevant cultural theory to the international hospitality industry. Cultural theories and tourism Tourism industry is a global business entity that involves travelling of tourists across countries boundaries as well as companies operating in more than one country that is affected by economic and non economic factors (Cho 2010, P 307). With developments of international tourism, companies are strategizing to have multicultural image to be able to compete internationally and attract customers from different backgrounds (White at el 2011, P.325).Tourism research is paying more attention on the national culture and its effect on consumer decision as the global growth in tourism is on the rise (Litvin at el 2004 p.29) Understanding cultural factors and preference can help a company tap into international market since tourism is affected by the cultural practices of both the tourist and the tourism company. Competitive advantage can be achieved when companies provides services that are related to customer preferences ( Kaze and Skapars 2011, P.40) since tourism is associated to artistic aspect of purchaser as well as national culture as an influencing factor of buyer’s behavior. Nationalized artistic values are produced by both the traveler and the service provider or their employees (Kaze and Skapars 2011, P.42) thus the tourism destination may differ giving the customer competitive advantages due to various options available for them. Despite the fact that common global culture is emerging due to free interaction of people from all over the world and use of internet, successful companies must align their marketing strategies with the trends of the home market they operate in (Banyte and Miezeliene 2007, P.292) Hofstede's Cultural Dimensions Hofstede is a known in studies of cultural behaviors since he developed the scopes of culture in relation to business across different countries (Manrai and Manrai 2011, P. 26). Hofstede theory describes the effects that culture has on staff ethics, customer’s actions, marketing and tourism both in local market and internationally and has been recognized in understanding of cultural behaviors across boundaries. The theory has five elements as cited by Manrai and Manrai (2011, P. 25) as power distance, confusion dynamism, masculine versus femininity, individual versus collectivism, and uncertainty avoidance. Power distance explains the degree towards which less influential members of a company, society and establishment in a country trust power is unevenly distributed (Boonghee at el 2011, P.194). He Focuses on uneven distribution of power measured in terms of the authority one person has over the rest which the population in that country believes is the way it should be. Individual versus collectivism focuses on the level in which people believe they are expected to support and be supported by the people who are related to them as a family or a group they belong to. People feel that for them to be members of a certain group they must benefit from hat group to remain there. It emphasis on how dependent are people on each other in a group or an organisation (Boonghee at el 2011, P.194). Masculinity versus femininity element focus on the level at which society is favorable to domination, boldness and achievement of things against culture that is more favorable to people feelings and superiority of life. It is a circumstances where principal ideals of society such as wealth, achievements and possession against the principal values of humanity being supporting one another and superiority of life ( Boonghee at el 2011, P.194). Uncertainty avoidance is the level in which people believe they are endangered by unsure situation and they have come up with ways and establishments to counter those unknown circumstances ( Boonghee at el 2011, P.194).It is a situation where people choose known circumstances over the unknown circumstances. Confusion dynamism was developed later and is also referred to long term as opposed to short term orientation (Manrai and Manrai 2011, P. 27). It pays attention to the future, the earlier period and current times. Business managers should understand that population in a certain company act differently to similar situations depending on their understanding and this is most common when working in multinational companies with employees from different countries. A tourism company operating in different countries should evaluate the cultural differences in different countries to improve their efficiency. In tourism industry customers may behave differently in various stages namely prior to travel, when travelling and post travelling in relation to Hofstede's Cultural Dimensions (Manrai and Manrai 2011, P. 27). Tourism is a multifaceted business involving a complex decision making process relating to buying and utilization of its products and services that can be divided into five steps identified as need identification, obtaining and gathering of the required information, assessment of the available information which involves choosing the preferred option, making a buying and utilization conclusion that involves buying transaction judgments such as companies choice, how often will be the purchase and destination choice. Finally making after sale services consumption decision for example the value of the services, if to change the company in future or stick to that particular company among other decisions (Manrai and Manrai 2011, P. 28). The consumers in tourism industry have to make several decisions prior, during and after consumption based on availability of resources or finances to purchase the products, individual and common factors, leisure needs, and safety of travel and purpose of travel. After evaluating the pros and cons of travelling, the consumer will have to decide on the products and services to take up and the company to use as the service provider. A tourist may opt to take a structured package from the service providers or may involve the service provide such as travel agents to develop his or her owned preferred package. In most cases the customer will have to consult a tour company due to the complexity of tourism especially when travelling a cross different countries For the customer to be satisfied on the aspect of tourism that is form of travel, tourist attractions, foodstuff, where to stay, transportation and recreation activities must well planned and coordinated (Manrai and Manrai 2011, P. 33) Hofstede's Cultural Dimensions are applicable in tourism. Motivational to travel is based on various needs such as recreational needs, social needs and psychological needs. The cultural dimensions are relevant to the need to travel since cultural principles persuade all phases of individual life including factors like lifestyle and motivation (Manrai and Manrai 2011, P. 31). Personal motivation influence travel decision and travel experience. For example studies shows individual tourist is likely to prefer uniqueness while as collectivistic traveler is for a family group. Depending on the stages of life people can sort travel services as a group especially in societies with collectivist traits thus collective advantages for example company team buildings, college excursions and school trips. Travel threats and safety are individual concern related to cultural and social factors as well as country’s concerns to its citizen displayed when there are securities alerts are issued by government regimes thus affecting international tourists and uncertainty avoidance principal is applicable (Manrai and Manrai 2011, P. 31). A company targeting to engage customers from across border must put in consideration their national cultures and how the groups feel in unknown or known situations. Uncertainty avoidance is closely related to international business as customers’ way of handling risks and more specifically to international traveler who may engage external forces to reduce the risks such as loss of cash, poor services, injuries or loss of life among other losses (Litvin at el 2004 p.31). For example a comparison between German and Japanese show that Japanese who are uncertainty avoiders relate to the cultural theory compared to German who have lower uncertainty avoidance characteristics. During the decision making process in regard to choosing a destination and tourism services providers, the customer gather information from different sources one them being the internet. Most services providers have website as a marketing tool with their products and services. Custom and value of the tourist groups can also be understood from online through their websites. Artistic values on the website has been studied and most f them contains different elements of cultures such as power distance, confusion dynamism, masculine versus femininity, individual versus collectivism, and uncertainty avoidance. Website that depicts local values meet customer needs and has positive impact on the destination or company it represents ( Moura, at el 2012, P 43). Companies’ profitability depends on its employees at all levels of management. Decrease in trade obstacles, enhancement in flow of funds and immigration of people allows companies to employ local people as well as expatriates (lingeberzins 2011, P. 69). Employees in a tourism company work across political cultural and country borders (Prokkola 2010, P.223) and they must work together as a team despite their background differences since this help to pool together wide range of experiences and talents thus improving their outcomes. A company manager may experience challenges when interacting with and managing staff from different backgrounds and must given proper training on handling his staff. The manager must go through the stages of adapting to the new country that include celebratory stage, ethnicity distress stage, correction stage and mastering stage after which effectiveness is achieved (Dewald and Self 2008, P. 353). For a company to have competitive advantages it must harmonize its operation among the staff and this is related to power distance element of culture. Marketing strategy of the company should be also being aligned to the social behaviors of the target population. Conclusion Tourism is a complex business that involves making critical decision before the purchase in order to get the preferred value for the cost incurred. The decision is influenced by individual traits such as social need, physical and psychological needs, and recreational needs and as well as group needs if it involves a group of people. All these needs are related to cultural values and beliefs of the people involved both as the tourism, the organizing company and the communities around the tourists’ attraction sites. Tourism companies should strive to match their products and services and the preferences of their customer in order to gaining their loyalty. Therefore the impacts of national cultures on the international tourism can not be underestimated when developing a business marketing strategy. However national cultures is not the only factor to consider when setting up an international tourism company since obtaining and maintaining customers involve also the service and products offered, relationship between the customers, individual customers cultural values and employees of the services providers as well their country of operation. Customer decision is dependent on availability of funds. A good company strategy should pay attention to all factors affecting its profitability. Question 2 Introduction Raffle hotels and resorts is an award winning international company operating chains of luxurious and uniquely designed hotels across the world with each hotel having a distinctive feature. The company started is operation more than 125 years ago in Singapore (raffles. Com 2013) and from Singapore, the hotel has entered into various cities such as Dubai, Paris, Seychelles among others with an exceptional theme and offering special and amazing adventures experience to its customers (raffles. com 2013). It’s owned by Fairmont Raffles hotels international that has about 98 establishments with two other unique brands: Fairmont and swissotel. Raffles emphases on enhancing customer’s experiences by providing unique and personalized services and is placed as one of the best hotels globally. Due to their design most of them have also been upgraded as marvel of the world and tourist attraction due to their distinctive physical features. For example the raffles hotel in Dubai that has dazzling shapes of pyramids resembling the ancient pyramids of Egypt and a botanical garden. Raffles caters for visitors who visit different cities for leisure and business by offering world class services with the aim of creating lasting relationships with its customers and ensuring customer loyalty (Eduunu 2011). This paper critically analysis the strategy of Raffles hotels and results. Global strategy The group has strategy to open hotels and resorts in other cities in the world such as turkey, Indonesia and china thus increasing its customer base. The hotel aims at attracting high class visitors who desire and can afford superior things in life and a unique treatment away from home. The location of their hotels is strategic with the target consumers since they are found in central business centers and other high end areas like islands, captivating beaches, near natural sites or golf courses (Eduunu 2011). Their strategy is to provide excellent services that add value to its customer to ensure the will seek their services in future and are referred to as resident. The company has also implemented an online booking and reservation solution to simplify its operations, regulate tariff and inventory reports across all its online distribution points (EZYeild, n.y.). The solution allows the establishment to manage rates, availability of the rooms and records thus eradicating physical data entry and administration and thus increasing accuracy. The growth strategy of the raffle hotel has evolved over a long period of time. Initially the hotel use to acquire historical buildings, renovate and develop them to luxurious hotel but in recent times the company is also acquiring modern structures for example the Dubai Raffle hotel at a prime business centre. The focus for growth now is through acquisitions and the final decision is made by parent company whose aim is to grow on upper end and luxurious segment. Management issues Currently the three brands that are owned by Fairmont Raffles hotels international now linked and have a strategy to win the global market, and build a reputable (Temporal n.y) .The brands have established management team to run then as one entity. Following the merging of the management and streamlining of their operations, consumers are able to get superb services from the company (Fairmont Details Growth Strategy 2007). The streamlining of the management allows consolidation of resources that were being used for marketing and driving sales in the separate brands to one mega brand thus ensuring proper marketing strategies. Merging also brings together experts from different brands who brings with them different talents and experiences, this increases effectiveness (Fairmont Details Growth Strategy 2007). However the merger is only at the management levels while each brand still retains its identity. His arrangement method can affect the effectiveness of hotels since each has different target market. For example, the target customers for the raffles are individual people while that of swissotel are group business groups. The other challenge is ensuring that each brand retains it’s identify. Raffle hotel management is faced with the challenge of having two points of power that is at the brand level and from the main company (Fairmont Details Growth Strategy 2007) The management should also develop a strong marketing strategy for their brands to ensue continuous business even during hard economics times bearing in mind that hotel business depends on tourism industry that is affected by the economy (Sun 2011 P. 270). Raffle hotels have diversified to lower cost accommodation because the fill long-term profitability cannot be sustained by only few high end consumers. However this should not compromise the services provided by the high end establishment (Sun 2011 P. 271). Hotel industry should ensure that the visitors feel satisfied with their services; however the Raffle hotel is faced with challenge of high staff turnover. To ensure the company attract quality staff and retains them , the human resources department should ensure it offer them good working condition by offering them bonuses and incentives depending on their period of employment( Sun 2011, P. 271). For the hotel to operate effective there is need for more effective and dynamic strategies in human recourses management, information technology and marketing. According to Inseadknowledge, (2010) raffle hotel goal is to build a strong brand that fits the needs of the market to increase effectiveness. Conclusion Raffles hotels are world class international tourism services provider that target high end customers that visits their area of operation for business and leisure with the aim of proving exclusive services. It has plans to expand into new areas to increase its presence globally. The hotels have a strategy of customer retentions and believe that customers should get value from their services especially accommodation. Their market segmentation is upper end users while the other brands have different segment therefore the hotel must ensure that its distinctive uniqueness is not affected. Raffle hotel is a unique brand and with the management of Fairmont hotels integrated the Raffle hotel management should align ensure that it continues to provide the extraordinary services to its customer to ensure loyalty of their customers and attract new customer in a competitive environment that can be affected be economical and political. Reference Banyte, J and Miezeliene, Z 2007, 'Expression of cross-cultural differences in negotiations: the case of negotiation activity of Lithuanian tourism agencies', Economics & Management, pp. 292-303, Business Source Complete, EBSCOhost, viewed 11 April 2013. 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