Tourism, Leisure or Events Organisations in Attempting To Improve Service Quality - Essay Example

?You Are Required To Critically Evaluate the Strategies That Could Be Adopted By TWO Tourism, Leisure or Events Organisations in Attempting To Improve Service Quality Executive Summary The tourism industry has developed in an enhanced manner due to increased demand in this sector worldwide. In this paper, two tourism companies have been discussed which include the GTi Travel Goup and Thomas Cook Group plc that provide tourism services in the market segment of the UK. In this regard, certain strategies are recommended to the companies with the motive of improving their performances substantially. Moreover, these strategies will assist these two companies in improving their brand image as well as to develop their offered service quality. Table of Contents Executive Summary 2 Table of Contents 3 1. Introduction 4 2. Critical Evaluation of Strategies 5 2.1 Positioning Strategy 5 2.2 Communication Strategy 6 2.3 Supply Chain Management 8 2.4 Human Resource Management (HRM) 10 3. Conclusion 12 4. References 13 5. Bibliography 16 1. Introduction Tourism is determined to be one of the largest industries worldwide and it is also considered to be one of the major elements towards the development of economic conditions and employment opportunities for both developing and developed countries. Service quality in tourism industry is considered to be a vital factor in order to acquire competitiveness in the provided services. The main objective of service quality is to determine the expectations as well as the preferences of customers and to provide services in accordance with their needs and preferences (Mohamed, 2006). The GTi Travel Group is one of the principal companies in tourism sector for overseas visitors in the United Kingdom (UK). The company is recognised to provide professional as well as value for money services for overseas visitors. In this regard, the international visitors are able to have a better outlook of Europe and Britain and the tour packages of the company range from one to thirty days (GTi Travel Group, 2013). Thomas Cook is a travel company in the UK and it is developed with the merger of MyTravel Group plc and Thomas Cook AG. It is one of the renowned tourism companies with having customers of around 23 million who travelled with the group in the previous year i.e. 2012 (Thomas Cook Group plc, 2013). The paper intends to discuss the strategies which could be adopted by GTi Travel Group and Thomas Cook Group plc with the intention of enhancing their service quality. 2. Critical Evaluation of Strategies The strategies that can be adopted by the GTi Travel Group and Thomas Cook Group plc are required to be analysed with the intention of determining the actions undertaken in order to improve the performance of these tourism companies with regard to service quality. These companies are identified to be famous packaged tour offering companies in the UK. In keeping with changing scenario of the global industry, the aspects of customer satisfaction, customer relations, service design and most importantly service quality have gained immense significance. Therefore, companies such as GTi Travel Group and Thomas Cook require to ensure that they abreast with requirements of the customers with superior quality of offerings. In this regard, the recommended strategies are described as follows: 2.1 Positioning Strategy The GTi Travel Group can adopt a positioning strategy with the objective of improving the brand image as well as competitive position of the company in the UK tourism market. The positioning strategy comprises three methods which include market analysis as well as internal analysis along with competitor analysis. In this regard, the GTi Travel Group should analyse the market conditions with respect to the preferences as well as needs of customers with regard to destinations (Alford, 1998). It has been recognised that the demand for the services offered by tourism companies has increased considerably in recent times. With the increase in the amount of disposable incomes of a large section of consumers, the growth has enhanced manifold. However, still the consumers’ generally demand better tourism packages at reasonable rate. Therefore, the company in order to maintain better customer relations along with providing superior customer satisfaction should also perform an internal analysis with regard to identifying its strengths to provide better services to consumers’ at best possible price (Lohmann, 2004). The company is experienced as well as it offers services according to value for money. Additionally, the company is also required to analyse its competitors and ascertain a price in accordance with which it will be able develop an enhanced competitive position in the tourism industry. This analysis will enable the company to attract more customers as well as offer services in accordance with the requirements of the customers. The facet of service design equally needs to be provided significance by the company within its positioning strategy as it is an evident fact that a lack of consideration towards developing an efficient service design can result in creating gaps. The gaps in service design generally emerge for a tourism service providing company in the periphery of meeting up with the customer needs as well as expectations. Thus, minimising especially the knowledge gap and delivery gap should be high on the priority list of the company (Electronic Commerce Group, n.d.). A focused consideration towards all these factors within a part of positioning strategy will facilitate the GTi Travel Group in obtaining a better position in the UK market segment. However, the positioning strategy may decrease the level of profitability in the initial year owing to the requirement of providing better services at lower prices at certain instances (Alford, 1998). 2.2 Communication Strategy GTi Travel Group can further adopt a better communication strategy with the motive of creating enhanced awareness of the tour packages as well as destinations which are to be provided to customers. In this respect, the company can adopt advanced communication strategy with the aim of performing its business operations effectively in such a competitive tourism market environment. The company should adopt integrated marketing communication (IMC) strategy which will assist it in conveying its messages to customers in a proficient manner. In this regard, the company is required to acquire effective promotion techniques such as advertisement, hoarding, magazines as well as online advertisements with the motive of creating better awareness of the company amid customers. Through this measure the customers would also be able to acquire all the relevant information about the company in a convenient manner (Cornelissen, 2003). The IMC will assist the company is using the communication effectively with the purpose of reaching potential customers and conveying its message proficiently. This strategy will also facilitate the company in developing better public relations as well as in creating awareness in relation to the tour packages and promotional offers proposed. Furthermore, with the assistance of this strategy, the company will be able to efficiently develop its brand image in different market segments along with attracting a huge number of customers. Therefore, the incorporation of a communication strategy will assist GTi Travel Group in retaining more customers as well as to acquire better competitive position in the marketplace. However, it is required to allocate funds or financial resources in order to accomplish the objectives of the communication strategy in an effective manner. In this respect, the company will have to bestow sufficient funds for this strategy which will be an additional cost but this strategy is important for future success of the company. Contextually, the budget of communication strategy is required to be devised in an appropriate manner so that its profitability is not much affected (Kulluvaara & Tornberg, 2003). The communication strategy will facilitate GTi Travel Group in reaching its target as well as its potential customers proficiently. Moreover, this strategy will also assist the company in conveying messages as well as in acquiring the preferences of the customers. In this respect, the company will be able to offer services in accordance with the requirements of customers, Furthermore, the company with online facility will be able to sort out the queries of customers rapidly along with developing a better relationship with them through direct public relations. Subsequently, the company will be able to provide enhanced quality of services to customers (Cornelissen, 2003). 2.3 Supply Chain Management The emerging competitive market environment has provoked the tourism companies to adopt strategies as well as devise plans in order to perform in a better competitive manner. Moreover, the tourism companies have initiated plans with the intention of improving their growth along with making a better expansion of their business. In this regard, Thomas Cook Group plc is required to adopt supply chain management (SCM) strategy with the aim of ensuring better growth as well as expanding rapidly its tourism business. Thomas Cook Group plc is observed to be acquiring a good image in the tourism market in the UK which adds an added advantage to the company. The company should adopt SCM strategy with the objective of providing better satisfaction to customers from services as well as products offered. In this respect, the SCM strategy will facilitate the company in acquiring better suppliers of tourism products in terms of restaurants, hotels as well as club memberships among others. In this context, it can be said that through this measure the company will be able to obtain more customers by providing attractive services as well as products which are rendered to customers (Zhang & et. al., 2009). The SCM strategy will facilitate the company in providing better accommodation, foods and crafts, transport as well as destinations. In this regard, accommodation is considered as an important factor for improving the demand of the company. The customers are required to be provided with better hotel facilities which are conveniently accessible. The customers should also be provided with quality local food items as well as crafts which are demanded by them. It will certainly facilitate to reduce the service quality gap. Moreover, the customers are required to be provided with enhanced transportation facilities. In this concern, the transportation facilities to be bestowed should be convenient as well as economical. Furthermore, the destinations should be appropriate as well as of enhanced quality for ensuring better customer satisfaction (Spasic, 2012). Therefore, the SCM strategy will facilitate Thomas Cook Group plc in providing quality services to customers through better accommodation as well as transportation facilities. In this respect, the company will be able to render augmented quality of services along with meeting the demands of the customers in an effective manner. However, the company may face certain issues with regard to quality standards as well as unethical practices along with costs of tourism products offered. The company might not be able to maintain the quality of services offered owing to the variations in the utilised hotels and transportation facilitates as well as the standards of local food items served to the customers. Nevertheless, this strategy will enable the company in providing enhanced quality of services to customers (Keating, 2008). 2.4 Human Resource Management (HRM) Thomas Cook Group plc is required to adopt a well-structured HRM strategy with the intention of developing improved policies with regard to employment as well as people management. In this respect, the company with an advanced HRM strategy will be able to formulate better policies with regard to recruitment, training, employee motivation along with managing the workforces of the company in an efficient manner. The company is required to devise plans in order to recruit appropriate people as well as to train those people with the motive of improving their skills. The HRM policy of the company should be formulated in such a manner which will enable it in managing its human resources proficiently (Baum, 2006). The company with a developed HRM strategy will be facilitated with the opportunity of ensuring a better maintenance of personnel. The recruitment as well as the selection procedure will enable it to recruit appropriate individuals on the basis of their skills as well as personality. The HRM policy of the company should also provide better training facilities to employees with the objective of polishing their skills or potentials as well as motivating them to perform their operations in an effective manner. Moreover, the training facilities will also assist employees in cultivating better cultural aspects as well as teamwork. Additionally, the employees should be provided with enhanced appraisal support in order to motivate them and reduce the turnover rate. All these aspects will facilitate the company in retaining skilful employees as well as motivating them to perform their operations in a proficient manner (Arlt, 2006). In this context, it can be comprehended that the employees of Thomas Cook Group plc will be able to perform their operations in an effective manner. Moreover, the services rendered by the employees of the company will assist in retaining as well as enhancing the service quality of the company. In this regard, this strategy will enable the company to build competitiveness as well as improve the proficiency of employees. The company will also be facilitated with the opportunity of structuring the workforces effectively (Cho, 2012). However, there may occur certain shortcoming within this strategy with regard to training imparted as if the employees are not properly trained then there will be a loss in terms of financial resources as well as time which are devoted in the training programs. Moreover, the turnover of employees will also affect the performance of the company (Chang & Chang, 2008). 3. Conclusion The tourism industry is observed to be improving in an immense manner due to increased demand in this sector. Moreover, the tourism industry is demonstrated to be the largest industry which facilitates in developing the economic conditions of countries and providing significant employment opportunities. There is a huge competition in different market segments amid tourism companies and these companies are required to formulate appropriate strategies or plans in order to perform their business operations in an effective manner. In this respect, the tourism companies should formulate proper strategies with the intention of providing better satisfaction to customers as well as ensuring topmost service quality. Additionally, the tourism companies are required to develop better relation with customers for improving their performances. In this concern, the two tourism companies i.e. GTi Travel Group and Thomas Cook Group plc are provided relevant recommendations to incorporate certain strategies with the motive of improving their performances as well as their brand image. These strategies will further enhance the quality of services which are offered by these companies with regard to tourism products. Furthermore, these strategies will facilitate these two companies in offering services as well as products in accordance with the requirements of customers. 4. References Alford, P., 1998. Positioning the Destination Product-Can Regional Tourist Boards Learn from Private Sector Practice?. Journal of Travel & Tourism Marketing, Vol. 7, No. 2, pp. 53-68. Arlt, W. G., 2006. Human Resource Management and the Tourism and Hospitality Industry: An Introduction. Chapter 1, pp. 1-25. Baum, T., 2006. Human Resource Management for the Tourism, Hospitality And Leisure Industries: An International Perspective. Cengage Learning EMEA. Chang, C. & Chang, W., 2008. Internal Marketing Practices and Employees’ Turnover Intentions in Tourism and Leisure Hotels. The Journal of Human Resource and Adult Learning, Vol. 4, No. 2, pp. 161-172. Cho, V., 2012. Human Resource Management in Tourism and Hospitality Industry-Using Situational Interview Based on Person-Organization Fit. J Tourism Hospit, Vol. 1, Iss. 2, pp. 1-3. Cornelissen, J. P., 2003. Change, Continuity and Progress: The Concept of Integrated Marketing Communications and Marketing Communications Practice. Journal of Strategic Marketing, Vol. 11, pp. 217-234. Electronic Commerce Group, No Date. Service Design, Management and Composition: Services Marketing. Objectives. [Online] Available at: http://www.ec.tuwien.ac.at/~dorn/Courses/SDMC/Marketing.pdf [Accessed March 03, 2013]. GTi Travel Group, 2013. GTi Travel Group. English. [Online] Available at: http://travelgti.co.uk/ [Accessed March 03, 2013]. Keating, B. W., 2008. Managing Ethics in the Tourism Supply Chain: The Case of Chinese Travel to Australia. International Journal of Tourism Research, Vol. 10, pp. 1-6. Kulluvaara, C. & Tornberg, J., 2003. Integrated Marketing Communication and Tourism. Social Science and Business Administration Programmes, pp. 1-50. Lohmann, M., 2004. New Demand Factors in Tourism. The Consumer in a World of Change. [Online] Available at: http://www.ectaa.org/LinkClick.aspx?fileticket=y8qguk%2FjvyI%3D&tabid=103 [Accessed March 03, 2013]. Mohamed, G. A., 2006. Service Quality of Travel Agents: The Viewpoint of Tourists in Egypt. Tourismos: An International Multidisciplinary Journal of Tourism, Vol. 2, No. 1, pp. 63-87. Spasic, V., 2012. Integrating Sustainable Tourism in Tour Operators’ Supply Chain. Singidunum journal, Vol. 9, No. 1, pp. 60-66. Thomas Cook Group plc, 2013. About Us. Overview. [Online] Available at: http://www.thomascookgroup.com/about [Accessed March 03, 2013]. Zhang, X. & et. al., 2009. Tourism Supply Chain Management: A New Research Agenda. Tourism Management, Vol. 30, pp. 345-358. 5. Bibliography Butnaru, G. I., 2009. The Quality of Services in Tourism and In the Romanian Accommodation System. Anale, pp. 252-269. Ongori, H., 2007. A Review of the Literature on Employee Turnover. African Journal of Business Management, pp. 49-54. Prideaux, B. & et. al., 2006. Managing Tourism and Hospitality Services: Theory and International Applications. CABI. Sekajja, F., 2006. Customer Service Quality Strategy in the Tourism and Leisure Industry: A Case Study of Mkabati Nature Reserve. Bitstream. 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