3. What do we mean by operations?
The services that are provided by organisations is the operations function of an organisation.
The operations of a company rely on a team of people providing the overall service, and not all of
whom we will meet.
If you work for the organisation that is creating/delivering these products/services, you will interact
with a wide range of departments, e.g., HR, IT etc.
This emphasizes the significance of the interrelationships between the different activities and
processes within an organisation.
Operations management is:
‘The activity of managing the resources and processes that create and deliver services and
products to meet the needs of the organization’s customers’ (p.2).
Fallen et al., 2016
4. What is
tourism
operations?
Complex and comprise a number of smaller sub-operations.
Tourism organisations do not operate in isolation and they are dependent upon
other organisations in order to function.
Tourism operations is multi-dimensional.
The characteristics of tourism can present challenges to the organisation’s
operations:
• Simultaneous production and consumption (the producer and consumer meet
in the same space and/or time)
• Heterogeneity (challenging to create a homogenous service experience due to
the inconsistences between different service providers (staff) and different
customers)
• Intangibility (the service ‘product’ is an experience rather than a tangible good)
• Perishability (services cannot be stored)
There is a growing demand for exclusive, unique, authentic and co-created
experiences, which present an opportunity for tourism operations.
Fallen et al., 2016
5. What is aviation
operations?
• Equipment manufacturers (aircraft,
engines etc.)
• Airports (inc. ground handling
• Air navigation and traffic control
services
• Airlines
Holloway & Humphreys, 2016, p.398
6. PESTEL
Operations are also guided by:
• Governmental and regulatory bodies.
• The constant development of technology.
• Environmental factors, which can emerge without prior warning.
• Threat of terrorism.
Fallen et al., 2016
7. References
Fallon, P., Robinson, P., and Cameron, H. (2016).
Introduction: Travel and Operations Management.
In P. Robinson, P. Fallon, H. Cameron and J. Crotts
(Eds), Operations Management in the Travel
Industry (2nd Ed) (pp. 1-13). Oxford: CABI
Publishing.
Holloway, C., and Humphreys, C. (2016). The
Business of Tourism (10th Ed). Harlow: Pearson
Education Ltd.
The textbooks used in this lecture and suggested
reading can be found on Reading Lists Online (RLO),
which you can access via BB>Support
Resources>RLO.
8. Module overview / content
You will learn about the key issues that commercial tourism businesses and airlines face in relation to the operation
and management of their services.
The module will take a problem focused approach using case examples in which students will be able to understand
the business considerations, processes, practices and ways in which companies deal with operational issues. For
example:
• Integration between tourism and aviation services.
• How tour operators develop, cost and price new tour products for market and how they manage their supply
chains (e.g., destination service suppliers, transport and accommodation).
• The principles of airline fleet planning, route development and scheduling flights.
• How tour operators and airlines manage their distribution systems (e.g., operational and strategic partnerships).
• Implementation and challenges of sustainable practice in tourism and airline operations.
9. Learning
outcomes
Demonstrates understanding and ability to
apply and critique theories, processes and
practices in developing and implementing a
range of tourism services.
Demonstrates and applies knowledge and
critical understanding of the successful
application of key aspects of airline
operations management.
Demonstrates ability to analyse, critically
evaluate and present solutions to supply
chain and distribution management issues
for tourism service operators and airlines.
12. Assessment Task 1
Assessment Title Critical Assessment of Tourist Behaviour
Individual/Group Individual presentation (pre-recorded)
Word Length 10 mins
Weighting 30%
Submission Date Please submit your recorded presentation via the submission point on the
module Blackboard site by 9th March 2023.
In-Module Retrieval Yes. Submit online via Blackboard on Thursday 9th March 2023.
13. Assessment Task 2
Assessment Title Business Proposal
Individual/Group Individual
Word Length 4000 words (+/- 10%)
Weighting 70%
Submission Date Submit online via Blackboard by 3pm on
Thursday 4th May 2023.
In-Module Retrieval Yes. Submit online via Blackboard on 4th May
2023.
16. Tourism
grows 4% in
2021 but
remains far
below pre-
pandemic
levels (72%
down)
• Pace of recovery remains slow and uneven across
world regions due to varying degrees of mobility
restrictions, vaccination rates and traveller
confidence.
• Europe and Americas recorded strongest results in
2021 (+19%).
• Caribbean saw the best performance (+63%), which
some destinations exceeding pre-pandemic levels.
• Southern Mediterranean Europe (+57%).
• Central America (+54%).
• North America (+17%).
• Central Easter Europe (+18%).
• Africa (+12%).
• Middle East (declined 24% compared to 2020 and
declined 79% 2019/pre-pandemic).
• Asia and Pacific (declined 64% compared to 2020 and
declined 95% 2019/pre-pandemic).
See the WTTC report for further information
UNWTO, 2022
17. Prediction for
2022-2023
• Some predict a rebound during the third quarter in
2022, others think that 2023 is more likely.
• International arrivals are predicted to return to pre-
pandemic (2019) levels in 2024 or later.
• A rapid and more widespread vaccination roll-out and
lifting of travel restrictions will enhance the recovery
of international tourism.
• International tourist arrivals predicted to grow 30%-
78% in 2022 compared to 2021, but this would still be
50%-63% below pre-pandemic levels.
• Omicron variant could disrupt the recovery and affect
traveller confidence in early 2022 as countries re-
introduce travel bans and some countries remain
closed, mostly in Asia and the Pacific.
UNWTO, 2022
18. Outlook for 2022 and
Beyond
• The economic environment could also effect recovery: surge in oil
prices, increase in inflation, rise of interest rates, high debt volumes etc.
• Domestic tourism drives recovery of the sector (domestic rediscovery),
including travelling close to home, open-air activities, e.g. nature-based
and rural tourism are major trends and will shape tourism in 2022.
• 1 in 4 people are now staying longer than 10 days when travelling
domestically, compared to 4.5 days in 2019.
• Staycation becoming workcation. 40% of travellers are willing to
quarantine prior to their holiday if they can stay longer and work
remotely (terms widely used for this include bleisure, workcation,
flexcation).
• See the WTTC report for further information on domestic tourism per
region of the world.
UNWTO, 2022; WTTC, 2021
19. Consumer choices 2022 and Beyond
• Travellers are less willing to book in advance and are increasingly seeking
flexible bookings.
• Travellers are seeking less crowded and less-known destinations and to
support local communities through their travel. Increase in sustainable
travel, philantourism and rural tourism.
• Strong preference for nature-based/outdoor destination, e.g., beach,
lake, mountain or desert.
• Choices consumers are making about how to live their lives are impacting
how they choose to travel.
• Consumers are paying more attention to their impact at home on
the environment and want more sustainable forms of tourism.
• 83% of global travellers make sustainable travel a priority in the
future.
• 84% plan to reduce their waste and recycle plastic when visiting a
destination.
• Increase in consumers choosing flights labelled as a Greener
Choice (lower emissions) on Skyscanner.
WTTC, 2021
20. Wellness Travellers 2022 and Beyond
• The Wellness Tourism Association found
78% of global travellers included
wellness activities in their holidays.
• Secondary wellness travellers, where
wellness experiences are part of their
leisure or business trip but not the
primary reason, account for 89% of
wellness trips.
• Because consumers are blurring the
lines between business and leisure
travel, they are becoming more aware of
and search for self-care and wellness
activities to cultivate healthier lives.
WTTC, 2021
21. Millennials and Generation Z’s 2022 and
Beyond
• Millennials and Generation Z’s show a greater
willingness to travel.
• They also have money saved post-pandemic.
• This group are predominately booking
through phones, compared to other age
groups.
• Social media and digital marketing are more
powerful on this age group. They seek
engaging and interactive content when
making travel decisions.
• Average travel expenditure is expected to increase
in the short term.
• This may include luxury trips and more
tailored trips
• Long-term, this is expected to revert.
WTTC, 2021
22. Online travel
sales,
including
mobile sales
were
predicted to
increase in
2021
• Mobile sales will account for 50% of all online
sales by 2021 and they will be the driver of the
recovery process.
• Yet only 41% of travel companies have an app.
• Euromonitor’s Digital Consumer Survey revealed
that customers:
• Used search engines to get the best deals
(58%).
• Travel decisions are based on family and
friend recommendations (55%).
• Easy site navigation (47%).
• Digital wallet checkout (43%).
Euromonitor International, 2020
23. Consumer Trends
Accelerating
• Domestic tourism
• Adventure tourism
• Nature-based tourism
• Beach holidays
• Wellness tourism
• Luxury holidays
• Camping/eco-pods
• Rental accommodation
• Digital and mobile
• Families, Gen Z and Gen Y are driving growth
• Greater interest in companies who have social and
environmental interests and treat their employees well.
Declining
• Long-haul
• Unsustainable forms of tourism, e.g., mass tourism
• Meetings, incentives, conferences and exhibitions
(MICE)/corporate business
• Baby boomers
• Unsustainable modes of transports, e.g., mega cruises/super
jumbos
Euromonitor International, 2020
28. International Tourism
Trends 2019
International tourist arrivals grew by 4% in 2019.
Slower growth than 2018 (6%) and 2017 (7%).
Likely as a result of Brexit.
Growth in international tourist arrivals continues
to outpace the economy.
Regions: Sub-Regions:
The Middle East (+8%) North Africa (+9%)
Asia and the Pacific (+5%) South-East Asia (+8%)
Africa (+4%) Southern and
Europe (+4%) Mediterranean
The Americas (+2%) Europe (+5%)
Caribbean (+5%)
UNWTO, 2020a
29. Consumer
Travel Trends
Travel ‘to change’: Live like a local, quest for
authenticity and transformation.
Travel ‘to show’: ‘Instagramable’ moments,
experiences and destinations.
Pursuit of a healthy life: Walking, wellness and
sports tourism.
Rise of the ‘access’ economy
Solo travel & multigenerational travel as a result of
aging population and single households.
Rising awareness on sustainability: zero plastic and
climate change.
UNWTO, 2019
30. UK Air Travel
Demand
June 2018 –
June 2019
• Over half (56%) of UK adults travelled by air
• Almost one third of passengers flew domestically
• Most passengers (71%) travelled to Europe, then
the UK (32%) and outside of Europe (29%)
• Long haul passengers are willing to pay for a
better flying experience
• Regular flyers tend to be 16-34 years old and in
the highest socio-economic groups
Mintel, 2019
31. IATA COVID-19 Survey
IATA commissioned a survey of recent travellers to find out about the impact of COVID-19 on passenger perceptions of the industry as well as expected traveling
behaviours. The main purpose of the study was to better understand what passenger trends to expect in the near future which would help shape guidelines for the
industry recovery.
This survey was conducted in four waves to understand changing travel behaviours and explore newly emerging trends in responding to COVID-19.
A report and a ‘highlight’ report for each of the first three waves can be found with this week’s lecture and by clicking on this link:
https://www.iata.org/en/publications/store/covid-passenger-survey/
Each report outlines the perceptions of different traveller groups:
• Travellers from different countries
• Business and leisure travellers
• Passengers willingness to fly again once COVID-19 is declared contained.
IATA webinar Reshaping the passenger experience – the voice of the consumer discusses this survey (18-29 mins). A link to this can be found in this week’s learning
materials folder.
32. ABTA: Webinar on consumer sentiment towards travel
www.abtaknowledgezone.com
Register using your student email address. You will be prompted for a partner number. The
Partner number for Sheffield Hallam is 743.
• Starts with a discussion on how COVID has and will impact the travel and tourism sector.
• From approx. 6min the focus is on the importance of customer service as customer
satisfaction positively impacts a company’s profitability. It discusses how other sectors
are better at this than the T&T sector. The impact of COVID on customers satisfaction is
discussed and what they believe the future trends of customer satisfaction are in terms
of customer needs, preferences and behaviours. They suggest that T&T companies need
to prioritise long-term service rather than short term profitability.
33. ABTA: Webinar on consumer sentiment
towards travel
• 21.30 mins into the webinar
• UK Customer Service
Institute State of the Nation
Report, July 2020. A copy of
this report can be found with
today’s lecture materials.
34. ABTA: Webinar on consumer sentiment towards
travel
32 mins into the webinar:
• Global Index go through their report (see BB) which examined the state of travel post-
COVID. Specifically, how tourist behaviour in Europe has changed and what consumers’
future travel plans are likely to be.
• For example, travel post-lockdown is a priority, particularly long-haul; travellers are
becoming more optimistic, but half of people are still choosing to delay their holiday
plans; the government plays a huge role in giving consumers confidence and
reassurance; consumers are more aware of their impact on the environment and a
company’s sustainability is a key factor in their travel purchase decision; consumers are
spend a lot of time researching future holidays, looking at travel review sites, images and
blogs online, checking prices etc.
35. Homework
Become familiar with the first assessment.
You will have a chance to work on this during the seminars.
For your upcoming seminar – watch the videos and lectures
from the link below.
Follow the link below and read through the current
data on consumer trends and demands from trade
associations such as ABTA,UNWTO
https://libguides.shu.ac.uk/hosptourevents
36. Related webinars and lectures to watch
from Blackboard before the seminar 1
Webinars:
• Euromonitor: Travel 2040: Sustainability and Digital Transformation as Recovery Drivers
• IATA: Reshaping the passenger experience – The voice of the consumer
• ABTA: Consumer Sentiment Towards Travel
• ABTA: Consumer Attitudes Towards Sustainability Post COVID-19
Lectures:
• ABTA: ABTA and Sustainability
• ABTA: The Future of UK Travel....COVID-19 Edition
A link to the Euromonitor and IATA webinar can be found with this week's learning materials folder.
A link to the ABTA Knowledge Zone, where all the ABTA materials can be found, is provided in BB>Support Resources.
37. References
ABTA (2020).. Consumer sentiment towards travel [webinar]. Retrieved from
https://www.youtube.com/watch?v=9zvicBLd2fc&feature=emb_title
Euromonitor International (2020). Travel 2040: Sustainability and Digital Transformation as Recovery Drivers. Retrieved from
https://go.euromonitor.com/wb-video-travel-2020-travel-
2040.html?utm_campaign=WB_20_08_18_REC_Travel_2040&utm_medium=Email&utm_source=0_Auto-Response_Email
IATA (2020). COVID-19 Passenger Survey. Available from: https://www.iata.org/en/publications/store/covid-passenger-survey/
Mintel (2019). Airlines – UK – August 2019. Retrieved from https://reports.mintel.com/display/920574/
United Nations World Tourism Organisation (2019). Tourism Highlights 2019. Retrieved from https://www.e-
unwto.org/doi/pdf/10.18111/9789284421152
United Nations World Tourism Organisation (2020a). Barometer January 2020 . Retrieved from https://www.unwto.org/unwto-
world-tourism-barometer-data
United Nations World Tourism Organisation (2020b). Barometer August 2020. Retrieved from https://www.unwto.org/unwto-world-
tourism-barometer-data
United Nations World Tourism Organisation (2021). Barometer January 2022. Retrieved from
https://www.unwto.org/taxonomy/term/347
World Travel and Tourism Council (2021). Trending in Travel. Emerging consumer trends in travel and tourism in 2021 and beyond.
Retrieved from https://pages.trip.com/images/group-home/2021_Trending_in_Travel_EN.pdf
These resources can be found with today’s lecture slides or in the ‘Support Resources’ section on BB (i.e. a link is provided to all
the UNWTO’s and ABTA’s resources)
38. Further
reading
ABTA (Association of British Travel Agents) reports that outline the
holiday habits and trends of British travelers:
https://www.abta.com/industry-zone/reports-and-publications
UNWTO (n.d.). Glossary of tourism terms. Available
from: https://www.unwto.org/glossary-tourism-terms
Editor's Notes
Caribbean saw a +63% growth rate which was higher to its pre-pandemic levels.
Overall Europe and America did good in 2021 with +19% hike in tourist.