Success and Sustainability in International Tourism Management - Term Paper Example

International Tourism Management By Location International Tourism Management Introduction Managing the tourism sector requires multiple strategies. There is no one strategy that is well equipped to handle all the duties and expectations that come with the name international tourism management. Discussed below are some of the strategies that would be employed to attain success and sustainability in the field. To attain sustainability, the discussion highlights ecological social and economic aspects that international hotel managers should be sensitive to. Social Aspects Corporate Social Responsibility Tourism Tourism management degree holders have a perception that they are the professionals in the management arena. However, scholars hold the view that to the profession requires specialised skills and knowledge, continuous education and be good to the society and community. According to Roberts (2007), corporate social responsibility (CSR) entails responsible business conduct causing no harm in the workplace, marketplace, the natural environment as well as the community they operate in. In the tourism sector, it would mean that it is the local, national and global community. CSR is not only vital in promoting business operations but also creates harmony and respect between the business and the community. CSR benefits To the business, CSR looks to ensure that the organisations keep on making profit while ensuring that her future is safe. Tourism industry’s management ought to understand that CSR, reduces general operational costs while improving the firm’s reputation. By extending services to the community, the firm’s dignity rises, resulting to not only a competitive advantage but also access to investment and funding opportunities. Notably, most NGOs prefer funding projects that improve the society’s welfare. Corporate social responsibility in the tourism industry is not a choice; it is a business obligation (Lyn 2009). To the society, CSR increases welfare as well as building a liking for the firm. Going green initiative, maintained by a firm via CSR improves he ecological conditions of the society. The result is reduced health hazards, better working conditions as well as better services and safe products. Involvement in charitable fundraising can improve the society’s education and possibly create equal opportunities. How CSR works According to Lyn (2009), tourism managers who focus on short-term profits at the expense of the society and the environment are doomed to fail. For sustainability, a business ought to ensure that there is a bottom line that measures environmental, economic and social profits and losses. That goes a long way at maintaining customer loyalty as well as attracting others. Managers should go a step further from writing it on paper but ensure they implement it. The long term success of the tourism sector is dependent on the society. Categorically, society and business are dependent on each other. CSR ensures that both the business and the society are satisfied with the business operation. CSR can take many forms ranging from ‘going green’ to offering charity to the community. Notably, CSR advocates for ethics in business as the core objective rather than profit maximization. As a result, international tourism managers should promote and maintain activities that ensure there exists a healthy relationship Draw backs Profit maximization remains the core objective of any business and CSR does not counter that. As matter of fact, firms that embrace CSR policy can only offer donations to charity if and only if they realize extra profits. Donations reduce shareholders benefit. Secondly, to maintain a high reputation, firms may consider luring the media with their positive CSR strategy to cover their bad operations. Note that CSR only creates a good image and not necessarily quality products. Moreover, given the good image of CSR, firms may persuade the government to reduce regulation claiming that some legal constraints retard CSR implementation hence reduce improvement in social welfare. Quality Management in the Tourism Industry Crosby is remembered for his work in which he stated and explained that; quality is free (Crosby 1979). In it, he explains that as a manager, one has to do something right and thus there will be no need to fix it. This should apply to both large and small organisations. The approach should be borrowed and applied in the tourism management sector. The quality of products and services in the tourism industry should have the ability to satisfy the needs of a consumer. In accordance to the above, tourism and hospitality managers should focus to total quality management. Quality will be the core of organisations management. The challenge that the managers would probably face is the fact that quality is both subjective and objective. It means then that to consumers, their definition of quality may vary from the organisational definition of quality. In attaining quality in the tourism sector, the international tourism managers should seek to ensure that the products and services satisfy all legitimate product and service requirements, needs and the consumer expectations. It should include an acceptable price which should conform to underlying quality determinants such as harmony, safety, security, hygiene, transparency, authenticity and accessibility of the tourism activity that is concerned with its natural and human environment. International tourism managers have a mandate of delivering total quality management (TQM) through understanding and implementing gap model of service quality, quality and visitor experience, quality of service, quality of experience, tourism quality standards as well as the key elements of integrated quality management. The general concept in quality should be identifying that quality is best measured by customers (Crosby 1979). Therefore, the industry should target to satisfy customers thus acquire their loyalty. That will act as strategic management which focuses on current and future profits; sustaining. Environmental Aspects Green Tourism Strategy for Sustainable Tourism Of the carbon emissions recorded worldwide, the tourism industry contributes to 5 % of the total in which case the hotel sector contributes to 20 % of the 5 % (Young 2014). In this approach, tourism managers have to develop sensitivity towards the global cry. It follows then that there is growing importance to minimise the environmental impact of their operations which means a reduction of carbon footprint. Until modern times, the tourism sector had been reluctant. However, various tourism firms and businesses have stepped up. Red Carnation Hotels and the Tread-Right have joined hands with around 25 global hospitality companies. They are inclusive of the World Travel and Tourism Council (WTTC) and the International Tourism Partnership (ITP). In the teaming up, the managers developed a consistent and clear method that would calculate, define and measure the impacts of staying or holding a meeting in a hotel. The leaders in the industry then came up with the Hotel Carbon Measurement Initiative. With such an approach listed above, the tourism sector demonstrates a desire to go green. The approach contributes to corporate social responsibility. Further still, it is an approach that would ensure that natural resources are preserved. The tourism industry benefits massively from natural resources including wild animals that are feared to go extinct in the near future due to carbon emissions; An animal like the White Rhino. Therefore, by adopting a go green initiative in the sector will ensure that the industry can be sustained for future generations. Going back to the Hotel Measurement Carbon Initiative, hotel leaders ought to join hands in creation of a single way that in which there should be a determined way to calculate the carbon footprint and a positive and consistent way to keep communicating the impacts (Young 2014). The initiative was in two phases, the first focused on producing methodology and guidelines while the second endured at revisiting, testing and refining the methodology while still working with stakeholders in ensuring that there was engagement. While such initiatives may exist, tourism have mandate to proceed and encourage their competitors, employees and external customers in ensuring that the initiative receives adequate support. Tourism managers have to be sensitive to such developments. They should reach to the information and ensure that they are part of such plans. That will help in the reduction of the 5 % carbon emission noted in the tourism sector. Economical Aspects Supply Chain Management in the Tourism Industry In the tourism sector, this consists of suppliers of all services and goods going into the delivery of tourism products targeted for consumers. It does not really matter whether or not they are openly steered by tour operators or agents or suppliers. In the industry, it is critical that the chain operates via business-to-business relationships. The supply chain management in addition to ensuring sustainability performance improvements should also work to ensure financial performance in which there are attempts to advance business procedures of each supplier in the chain (Tigu & Calaretu 2013). In tourism chain management, implementing sustainable requirements in the accommodation departments is much easier and turns out to be most difficult in the transport sector. For sustaining destination sustainability, the efforts require wide and broad partnerships with stakeholders despite the fact that it would take more time to implement. In adopting good tourism practices for this kind of supply chain management, the benefits include amongst others clients retention, increased revenue, remaining competitive in assessing and responding to opportunities and risks in the market, risk management and legislative requirements leadership, enhancing staff performance, protecting the key assets of a business and lastly a notable enhancement of reputation and brand value of the tourism industry (Tigu & Calaretu 2013). Financial Strategies in Hospitality Management and Their Impacts on Profitability and Efficiency The decision making process in the hospitality industry is complex in nature. The decisions made at managerial level go a long way in impacting internal and external environments of the industry set up. The external environment in itself is constantly changing and affects the strategies adopted by hotels. Competition in the industry has been sprouting on a daily basis. As a result therefore, maintaining market relevance through profitability and efficiency in delivering customer-focused services and products is essential. As a result, an international hotel manager should be equipped with skills in financial performance measurement, budgetary practice, cost analysis, pricing and revenue yield management. Financial Performance Management The tourism industry has been at the centre of the business globalisation. In this approach, the modern departmental managers such as hotel managers, should understand the performance analysis mechanisms such as Economic Value Added (EVA), Refined Economic Value Added (REVA) and Market Value Added (MVA) (Hu et. al 2013). With such background, the manager could organise and plan tourism firms towards profitability. Budgetary practice In tourism industry, organisations produce budgets with the key objective being to aid planning, control and performance evaluation. The budgets are key performance indicators in hotels, parks, and other facilities in the tourism industry. Business profit and efficiency in delivery of customer service in highly influenced by various budget allocations. Being able to prepare a realistic budget is the major root for planning in the hotel and tourism management. Cost Analysis A stochastic cost frontier model could be used in analysing panel data and then make estimations on cost efficiency for most tourism related firms. In avoiding such, focus is mainly on differing business models in the firms together with internal management. However, that is not sufficient in itself. More should be done analysing cost efficiency. While the market is generally competitive, tourism firms can reduce their input costs with up to 8.85 % as observed in Taiwan. This is concluded from the findings that the international tourists’ hotels’ recorded an average cost efficiency of 91.15 % from 1997 to 2006 (Hu & et al, 2008). Pricing Tourism management may adopt pricing to act as one of the key marketing strategy. Lower-quality competitors can gain benefits through market co-location from higher-quality competitors. In relation therefore, hotels with lower-costs which include midscale and economy hotels benefit from price premiums by co-locating to markets where the larger proportions of firms pursue a higher-quality strategy adopting differentiation such as upscale and luxury hotels. Revenue and Yield Management The tourism industry traditionally manages their yields by maintaining a balance between supply of perishable room nights which is against demand through manipulation of the time and price consumption (Hu et. al 2008). European hotels mainly apply three yield management techniques. They are, charging of higher prices on intermediary channel on the basis of market demand, variation of room rates on the basis of market demand and closing or opening of intermediary channels through the advice of market demands. Cities such as Barcelona and Amsterdam adopt more professional pricing management thus higher adoption of the varying in price in response to market demand. This is however not influenced by hotel’s size or the rating it has by considering the stars (Hu et.al, 2008). Understanding such concepts is critical for international tourism management. Conclusion The responsibilities and mandates that international tourism managers are expected to deliver on are massive, complex and dynamic. To attain success, the manager thus requires vast skills and knowledge. The skills and knowledge should then be applied in the industry. In modern, each business has been faced with the challenge of acting towards the welfare of the society. To that accord therefore, the industry has to ensure it is still sustainable through actions of carbon emission control and corporate social responsibility. For the image of the organisation as well as sales and profit, the industry focuses towards the customer satisfaction thus investing in quality that pays back. Financial management skills are also critical in delivering success in the industry. To wrap it up therefore, industry managers have a duty to revisit every aspect of service or product delivery which includes the suppliers, government and the employees amongst others. Bibliography Crosby, P. (1979). Quality is free. New York: McGraw-Hill. Hu, J. et al. (2008). A stochastic cost efficiency analysis of international tourist hotels in Taiwan. International Journal of Hospitality Management 29 (20) 99–107 Lyn, C. (2009). Corporate Social Responsibility in the Hospitality Industry. Arizona: Northern Arizona University. Roberts, P. (2007). What is corporate responsibility? Hospitality, (6), 54-55. Tigu, G. and Călăreţu, B. (2013). SUPPLY CHAIN MANAGEMENT PERFORMANCE IN TOURISM CONTINENTAL HOTELS CHAIN CASE. Amfiteatru Economic, [online] XV(33), pp.103-114. Available at: http://www.amfiteatrueconomic.ro/temp/Article_1178.pdf [Accessed 9 Nov. 2014]. Young, I. (2014). Public-Private Sector Cooperation: Enhancing Tourism Competitiveness. Annals of Tourism Research, 29(2), pp.573-574. Read More