Special Interest Tourism - Management Issues


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Special Interest Tourism - Management Issues

  1. 1. The International Travel College of New Zealand 1 Special Interest Tourism Unit #13 Learning Outcome 4 Management needs and issues of special interest tourism
  2. 2. The International Travel College of New Zealand 2 Definition of Management • Management in all business and organizational activities is the act of coordinating the efforts of people to accomplish desired goals and objectives using available resources efficiently and effectively. • Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. • Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Wikipedia
  3. 3. The International Travel College of New Zealand 3 ‘Branches’ of Management • Human resource management • Operations management or production management • Strategic management • Marketing management • Financial management • Information technology management
  4. 4. The International Travel College of New Zealand 4 Principles of Management • Business interests that are interlinked together in the production and delivery of tourism products operate for profit (with the exception of charity based tourism) • To achieve the profit object they need management to get things done. • Management is about harnessing the organisation’s resources (especially people) to create services, outcomes in line with what the tourist requires as a consumer. • Tourism business are often organized internally into specialised functions: marketing, sales, management, accounts • This horizontal form of organization provides a structure for employees5 • Companies also organize vertically into a hierarchy, characterized by differing levels of power, authority and status.
  5. 5. The International Travel College of New Zealand 5 Hierarchical Management Structure • Within tourism organizations managers are often grouped by level : • Frontline staff • Team leaders • Middle manager • Senior management team • Chief Executive Officer (or MD) Front-line staff Team leaders/Supervisors Middle managers Senior management team Chief Executive Officer/MD
  6. 6. The International Travel College of New Zealand 6 Functional Management Structure • Managers can also be classified according to functional roles. • Functional managers eg accounting, research, sales • Business unit or area managers eg managing a group or georgraphical area • Project managers – managing specific projects
  7. 7. The International Travel College of New Zealand 7 The Purpose of Management in Tourism Organisations In the private sector the key purpose of any manager of a business is: Profitability: through higher output, better service, more sales, new customers, cost minimization In the public sector other goals may include liaison, raising public awareness, activities for the wider public good plus: • Efficiency: for all managers -whether private or public sector, they need to reduce expenditure and inputs (costs)_ whilst achieving more cost effective outputs (outcomes, sales etc) • Effectiveness: achieving the desired outcome, which may not necessarily be a profit-driven motive.
  8. 8. The International Travel College of New Zealand 8 Key Management Tasks • Planning: goals are set out and the means of achieving the goals are recognized • Organising: the work functions are broken down into a series of tasks and linked to some form of structure and the tasks assigned to individuals. • Leading: motivating and influencing staff so that they perform their tasks effectively in the achievement of organizational goals • Controlling: the method by which information is gathered about what has to be done and when by. • In managerial decision-making, two elements have to be balanced: technical skills and human skills. • The balancing of skills is often underpinned by an ability to communicate effectively and confidently with others, as well as an ability to lead and motivate people. • Managers also need to possess Cognitive skills (enables managers to formulate solutions to problems) and • Conceptual skills: -allows people to take a broader view and consider links with other areas of the business
  9. 9. The International Travel College of New Zealand 9 What do tourism managers manage? Three principal management functions that dominate: • Marketing • Operational issues • Human resource management These three management areas are highly relevant in a service industry where the service output is intangible.
  10. 10. The International Travel College of New Zealand 10 Managing operational issues in tourism businesses • Operational issues traditionally dominate the focus of most tourism organizations. * the seasonality of tourism operations: * the recruitment of the right number and caliber of staff * resourcing the activities for only part of the year * ensuring high levels of customer satisfaction during high season when staff and resources are fully stretched. • Managers working ‘in resort’ or at the front line need to develop good delegation skills in order to maintain high service levels.
  11. 11. The International Travel College of New Zealand 11 Operational management key areas • Capacity: understanding the ability of the organization to produce appropriate levels of service. (ie ‘do we have the capacity to take an additional 100 visitors on our city tour today?’ • Standards: maintaining the benchmark industry standards, ie how long is considered ‘ok’ to wait for a flight, or how long should a customer expect to wait to check in at a hotel. • Scheduling: the planning of work and use of the organization’s physical and human resources. Ie work rotas, tour bus maintenance and operational schedules • Inventory: the organizations ability to meet upply and demand. Ie hotel rooms, seats on a tour bus, cycles available in resort • Control: ensuring the operations are managed in an efficient and systemic manner. This brings the planning, preparation and readiness inherent in the four functions above into action.
  12. 12. The International Travel College of New Zealand 12 Managing Service Provision Tourism can be conceptualized as a client purchasing ‘the skills, service and commitment of a range of human contributors to the experience that they are about to embark up on’ highlighting the importance of human resource management (HRM) issues and the challenge this poses for tourism managers. Baum (1993)
  13. 13. The International Travel College of New Zealand 13 Human resource issues and service delivery • Demographic issues related to size of available pool of employees and labour shortages • The tourism industry’ image as an employer • Cultural and traditional percepts of the tourism industry • Rewards and compensation for working in the sector • Education and training • Skill shortages at the senior and technical levels • Linking human resource concerns with service and product quality • Poor manpower planning • A remedial rather than proactive approach to human resource issues Baum (1993)
  14. 14. The International Travel College of New Zealand 14 Managing Human Resource Issues: Scope and extent for busineses • A critical awareness of the scope and nature of the labour market • The design of jobs • Recruitment, selection, appointment and retention of staff • Induction, equal opportunities, training and development • Evaluation of staff performance • Salaries and incentives • Employment termination, grievance and dispute • Industrial relations and employment law • Motivation of staff Baum (1993)
  15. 15. The International Travel College of New Zealand 15 Cooper et all (1998:458) wrote: It is clear that for the tourism industry to function well it needs a well-educated, well- trained, bright, energetic, multi-lingual and entrepreneurial workforce who understand the nature of tourism and have professional training. A high quality of professional human resources in tourism will allow enterprises to gain a competitive edge and deliver added value with their service.
  16. 16. The International Travel College of New Zealand 16 Tourism and Innovation: Challenge for Tourism Managers Innovations can be divided into: * Introduction of a new product/service * Introduction of a new method of production * Opening of a new market * New source of supply of raw materials * Creation of a new type of industrial organization • Human factors, environmental factors and external factors can induce innovation • But is management necessary to encourage motivation? • Or will it occur without the influence of management? • Managers need to understand the role of innovation and its potential to improve business processes and add value to the business. • Tourism is reliant on new ideas, experiences and destinations for the generation of new product ideas. • ‘Pioneer adopters’ embrace innovation and the change it may induce • ‘Innovation laggards’ hold out against innovation and change until the majority of the workforce accepts it. • Niche tourism is one outcome of the innovation process in the tourism industry
  17. 17. The International Travel College of New Zealand 17 Pressures for tourism to change: • At a global scale consumer attitudes towards tourism are changing • Concern over the self-destructive nature of tourism causing visitors to question the impact of where they travel • Greater consciousness of the effects of tourism with both consumer and tour operators • Slow process of change • There will always be a role for ‘mass’ tourism • At upper end of the market there is greater demand for environmentally sensitive and conservation-oriented niche products • Providers are beginnings to recognize these consumer tastes
  18. 18. The International Travel College of New Zealand 18 Offer factors affecting tourism trends: • An ageing travelling public • New social trends • New outbound markets • Crises and disasters • Technology • Climate change • New business trends eg. hypercompetition
  19. 19. The International Travel College of New Zealand 19 Management Issues for Special Interest Tourism Providers: • How to attract and retain specialist staff? • How to find suitably trained staff to work in seasonal conditions? • How to deal with seasonality generally? • Where to accommodate staff in tourist destinations? • Establishment and maintenance of effective communications systems: internet, cell phones etc • How to position field staff cost effectively, in the correct time frames, and return them at the end of the season? • Acquisition of relevant visas, work permits and associated documentation for staff • Ensuring that the tourism operation impact on local people, resources and environment is minimized • Where to source equipment locally on an ongoing basis • Sourcing suitable premises, accommodation and transport arrangements • Developing and maintaining ongoing safe health and safety practices • Risk identification processes to identify operational risks and develop risk minimization strategies • Developing effective working relationships with local people • Ensuring cultural differences are dealt with appropriately • What measures can be taken to avoid exploitation of local populations? • Establishing and working within relevant laws and regulations and securing appropriate permits and licenses • Developing effective working relationships with essential business partners and agencies • Establishing operable contingency plans for disasters and emergencies • Maintaining appropriate cash flow and profit levels • Ensuring high levels of customer satisfaction is established and maintained through all operational conditions
  20. 20. The International Travel College of New Zealand 20 Organizational and Support Logistics involved in Special Interest Tourism • Logistics is the ‘management of the flow of resources between the point of origin and the point of consumption in order to meet some requirements.’ In other words, getting the right resources (people, vehicles, food, equipment etc to the right place on time! • The resources managed in logistics can include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract items, such as time and information. • The logistics of physical items usually involves the integration of information flow, material handling, production, packaging, inventory, transportation, warehousing, and security. • The minimization of the use of resources is a common motivation and management issue in tourism. ie it’s a better use of resources to use less petrol or use a smaller vehicle when taking visitors on a tour.
  21. 21. The International Travel College of New Zealand 21 Typical logistics issues in SIT • Transport – shortage of vehicles, the wrong vehicles, roads impassable or dangerous, • Personnel – shortage of skilled drivers, guides, translators, field workers • Accommodation – shortage of hotels at the right standard, overbookings, price fluctuations, high levels of complaints leading to customer dissatisfaction • Resourcing – finding the right level of the right resources at the right time and at the right price • Local relationships – difficulties in communicating with local providers, cultural barriers, social relationship issues, gender related issues in Middle Eastern cultures • Communications: lack of or unreliable internet, no cell phone coverage or patchy coverage, shortage of printers or printer ink. • Safety and security – political instability in the area, civil unrest, poor policing and high crime or violence • Equipment – insufficient levels of gear, poor quality, losing gear, breakdowns and shortage of repair facilities
  22. 22. The International Travel College of New Zealand 22 Impacts of tourism on a host destination • Socio cultural • Environmental • Economic