Tourism Destination Quality Management - training material - PART 1. The material has been developed by PhD Heli Tooman - Pärnu College, University of Tartu, Estonia. The material has been developed with partial EU funding in Leonardo da Vinci -funded project Quality Boost for Tourism.

1. 1. What does quality stand for?
! Topics:
! The concept of and discussion about quality.
! The principles and models of quality management.
! Practical work:
Heli Tooman, Ph.D. ! What does quality stand for?
! What does tourism destination quality management stand for?
Tourism Destination
Quality Management 1
Quality Boost for Tourism
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Problems of Estonian tourism quality
The current state of Estonian tourism, Most common problems:
its tendencies, pros and cons
! The Estonian Tourism Development Plan for 2007-2013 sees
quality development and creating a quality system for Estonian ! Lack of customer focus, often inadequate and shaky service quality
tourism as one of its priorities. ! Insufficient motivation and orientation on service
! In order to boost the competitiveness of Estonia as a tourism ! It is often difficult to find qualified and motivated workforce
destination in Europe the quality of tourism products and ! Not enough high-class and flexible training possibilities
services must be raised. ! The uniformity of tourism products
! Entrepreneurs’ limited sense of quality and process focused management
! Entrepreneurs’ insufficient focus on business
NB! Take a look at the data of Enterprise Estonia Tourism
! Entrepreneurs’ insufficient experience in marketing and provision of services
Development Centre, The Bank of Estonia and Statistics
Estonia! ! Insufficient focus on servicing employees
! Insufficient cooperation on all levels
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2. Problems of Estonian tourism quality
Problems that are less talked about: The importance of tourism quality
! A narrow grasp of tourism and its impacts on the ! Tourism as an economic field is extremely sensitive about quality.
economic, social and cultural environment and the Visitors that have been disappointed in one tourism product or
reputation of the destination experience are likely to blemish the reputation of Estonia as a
whole
! Insufficient knowledge of tourism products as ! The opportunities for travelling are broadening – people will not
wholesome visiting experiences, the development visit a destination or tourism establishment of poor quality twice
mechanisms and effects of their quality. nor will they recommend it to others
! Viewing tourism and tourism quality through the ! Tourism is a vastly changing and developing economic field. Both
perspective of tourism enterprises rather than tourism developers (politicians and decision makers) and
destinations entrepreneurs must be aware of and follow the trends when trying
to boost the competitiveness of tourism destinations and giving
! Insufficient cooperation between public, private and the products their competitive advantage.
third sector
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The token of Estonian
tourism Quality – inevitable or just trendy?
! We all have heard the word
! Any token does not work! ! Most of us talk about it
! The sign of Estonian tourism ! Many of us do not understand it
can only be a service culture ! Many of us are aware of its seriousness
based on sincere hospitality
and excellent quality but also ! Many of us do not know what should be done
the skill of sending a right ! Many of us understand, know, do and have succeeded
message to the potential
visitor.
! We have no better alternatives
than this!
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3. Practical work 1
What does quality stand for? Quality – aiming for perfection
! Group work (15 min for preparation)
! Pick one of you as a secretary and one as the presenter of
the work
! Write down all the words that in your opinion associate
with the word “quality”
! Assort the words logically
! Present your work
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What is quality? Values
Quality is the relationship between requirements and the ! Values are the main ideas of preference in situations where two or
actual performance. It is the difference between what we more ways of action are possible.
expect and what we get. Quality helps us tell the ! Money is worthless when it comes to basic values. Such values
difference between good and bad, tolerable and together with human needs and desires represent our specific
expectations and requirements
intolerable, the ones lagging behind and the ones on the
For example: When protecting a human life is considered to be a
top. Quality is based on values and it is expressed by value then it is expected that all products and services include
variety. precautions. Products and services we receive are a value to us if
(Towards a EuropeanVision of Quality – The way forward ) they are useful and apt to our basic values.
Source: Towards a EuropeanVision of Quality – The way forward
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4. Values Values
! Secondly, value has a meaning when it is used for ! Thirdly, quality itself can be seen as a value. Different societies and
bargaining when something is received in exchange for social movements in human history have created and declared
something else, money for example. values such as freedom, individuality and respect for fellow
citizens.
! Products and services that we receive are a value to us ! Similarly to that the movement of quality has also expressed and
when they are useful and apt to our basic values. promoted certain values:
! Most developed countries have learned that by declaring that ! Goodness in everything,
they compete with higher quality rather than lower prices they ! The ethics to give one’s best and expect only the best,
can ask higher prices for excellent quality. respecting professionalism, beauty and skills.
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Quality values Quality values
Customer focus. Constant improvement
! Constant improvement means that the ideas and
! Businesses exist to serve clients and public institutions to
standards that steer the procedures are not everlasting.
serve citizens. They must be subject to critical judgement and
! Focusing on the client (“client in” instead of “goods out”) challenges that are based on observation and feedback.
means recognizing variety and competition. Existance ! Organizations are not machinery managed top-down but
depends on successful functioning that is decided upon living organisms.
! It is important to rope all employees in for quality –
by clients. quality is everybody’s business.
(Towards a EuropeanVision of Quality – The way forward )
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5. The philosophical and practical
Quality values perspectives of quality
! Sustainable development – social, economic and environmental ! The philosophy of quality brings up two questions:
sustainability ! How do we know what quality stands for? and
! Management by realities ! Who are “we”?
! According to the Western scientifical tradition quality is based ! Quality is a human perception that only exists in role play:
on observation, measurement and perseverance ! client-producer: economic and mercantile quality
! Considering the finiteness of measuring intellectual and ! citizens-power: the quality of governance
especially human emotions, quality management should be ! Organizations or parts of them – the environment they act in:
based on facts, analysis and testing organizational quality
! Management based on facts means that information must move
freely.
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How do clients know
what quality is? A quality person
! Client is and actor in three roles: the selector, the payer and the ! A quality person supposedly prefers:
user. ! a flawless product or service to one with flaws;
! These roles are connected internally but they have intersections in ! a comfortable product or service to an uncomfortable one.
a wider perspective as well: ! A quality person is also looking for quality outside mercantile
! client as the elector is linked to the institutional framework deals – in every aspect of human relations. This is why values can
such as the open market, financial freedom and the law of not only be considered from the economists point of view but the
contract; views of philosophers must also be taken into account.
! client as the payer is linked to economic prudence and property
transfer;
! Client as the user stands for consumption value, usage and its
possible external impact.
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6. Quality as an economic concept Actual quality
! Quality as an economic phenomenon – client’s idea of mercantile ! If the quality of the exchanged product is limited by visible and
value as the motivator of demand has existed for as long as people measurable properties, the product becomes an immanent
have manufactured and traded. element of economics and trading (i.e. not going beyond this
world)
! It is most eminent in the conditions of the open market where
! There is also another area of application that could be called
clients are able to apply their right to choose between several
transcendental quality. One could say that quality is not the spirit
alternatives. (expectations) nor the matter (the product that met the
expectations) but a third, independent state that can not be
defined but you know it when you see or experience it.
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Transcendent
Transcendental Actual quality
! Transcendent - something that exceeds the boundaries of cognition, ! In market economy clients have the freedom to prefer whatever
something in itself. Its antonym is immanent, cognitive.
they like both in transcendent and immanent category.
! Transcendental - something pre-cognitive. “Immanent” is the antonym
for this well. ! For the manufacturer of products and services the question
! The duality “transcendent-immanent” is on horizontal, on the same becomes extremely practical: information about what is
level, together they evolve and together they dissolve, one is hidden and considered as quality must be gathered and turned into plans that
the other one visible, one is the shadow and the other one the light.
lead to outputs which then can be set against initial goals.
Transcendent: 1. Surpassing others, preeminent or supreme. Exceeding or surpassing
in degree or excellence 2. Lying beyond the ordinary range of perception. Beyond
and outside the ordinary range of human experience or understanding; "the
notion of any transcendent reality beyond thought"
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7. Service culture as a value The definition of service culture
! Modern people live and work in the conditions of a service society ! What we need is an organizational culture labeled with service
where one of the characteristics of culture is a civilized service culture, a “culture” where good service is recognized and where
culture that presupposes civilized competencies. the servicing of both internal and external clients is considered
a natural way of life and one of the principal values of every
! Service culture as a value can thus not be excluded from quality person.” (Crönroos 2001)
values. Both the visible/immanent and the transcendent aspects
belong under it. ! In an issue from 1990 the last word from that definition was
“norm”. What has changed since then?
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How can an entrepreneur know what is How can a manufacturer know what is
considered quality? considered quality?
! Flawless manufacturing as quality is also known as ! The qualities of conformance and function are tied to the
conformance quality. production and planning of goods and services. The
growing competition in the market of customers has
! The quality of plans and drafts brings out the other
again brought up a third aspect – customer’s quality.
aspect of quality also known as functioning quality.
! This point of view in its drastic form suggests that quality
! Quality is based on the high quality of a plan or draft.
is anything that is considered quality by the client.
! The functioning quality includes the scientific and technical
Several marketing methods are used to acquire that
progress of mankind but it also brings along serious restrictions
information.
since it presupposes that citius, altius, fortius is always the best
way.
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8. How can a manufacturer know what is
considered quality? Organizational quality
! Customer’s quality has improved the lives of people in ! How should an organization be shaped, maintained and
many ways but it also comes with serious restrictions. managed so that it would produce a qualitative product or
! Excessive customer focus leads to shortsighted commercialism service not only once but constantly; not only in simple but
and brutal price competition. This is why the client’s freedom of also in changing circumstances and conditions.
choice has been restricted by laws – this kind of approach could
be taken as the quality of a party, a system or the environment.
! Party quality can be looked at as a relationship between client
satisfaction and its general consequences.
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What does service quality
A complete quality teddy consist of?
According to the modern theory and practice the necessary The Nordic school: Grönroos – Gummesson’s integrated quality
efforts for inducing quality can be depicted as a huge teddy model (1987):
bear: ! The quality of service design, production and distribution
! the big belly representing professional skills, ! Technical quality. What will the client get?
! the feet representing the economic and esthetical aspects of
! Functional quality. How will he get it? The quality of service
quality,
process and relations.
! the hands the technical management of quality,
! Image, expectations and experience
! and finally the head that stands for the philosophy of quality.
! These elements make up the quality perceived by the client, his
satisfaction
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9. What does service quality consist of? Quality management
The Northern-American school: Zeithaml, Parasuraman ! Quality management is the process of giving promises
and Berry (since mid 1980-s) – service quality is the and fulfilling them.
difference between client’s expectations and experience
! The most important principles of quality management
! The most common model for measuring and evaluating
are: customer focus, the inclusion of people, process
quality is SERVQUAL (1988, the last version from 1995)
based approach, a systematic approach to management,
! It is adapted to the field of tourism: HISTOQUAL (1996,
historical buildings-specific), LODGSERV (1991, housing industry),
continous betterment, fact based decision-making,
HOLSAT (1998, health resorts, recreation grounds), DINESERV mutually beneficial relations with partners.
(2001, restaurant industry) • Oakland, J. S. (2006) Total Quality Management. Theory and
Practice. Tallinn: Külim, 483 p.
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Deming’s wheel of continuous betterment:
PDCA: P plan, D do, Building quality dwells from client
C control, A act!!!
! The voice of client is listened to, the importance of
client’s expectations is weighed, necessary connections
are found and adapted to the previous when building
quality.
! There is no point in talking about quality when there is
no customer and process focused approach to quality.
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10. Quality plan is based on a thorough
Quality plan self-evaluation
! Quality plan is a document that states by whom, when and which ! A quality plan cannot evolve from nothing or come into
procedures and associative processes must be applied to different being only from the ideas and thoughts of a leader
projects, products, services or contracts ! Quality planning starts from self-evaluation where all
! Quality planning is a part of quality management that focuses on employees must be included in.
putting up quality goals and defining the necessary processes and
resources that are needed to reach them.
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Self-evaluation
Criteria 1 Leadership Self-evaluation
Criteria 1 Leadership
1.1. Vision and mission have been worked out and stated in the 1.5. The organization has defined all the important parties
organization 01234 01234
1.2 Values (value judgements) and the good wills of practice have 1.6. The organisation includes all parties in working out its vision,
been worked out in the organization 0 1 2 3 4 mission, values and goals 01234
1.3 Strategic and functional goals have been defined in the 1.7. The organization forwards its vision, mission, values, strategic
organization based on vision, mission and values 0 1 2 3 4 and functional goals to all its parties 0 1 2 3 4
1.4. The strategic and functional goals of the organization are 1.8. The organization adapts vision, mission and values to the changes
connected to action plans and processes 01234 in external conditions 01234
1.9. Employees of the organization are supported in achieving their
goals and fulfilling their plans in order to achieve the long-term
goals of the organisation 01234
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11. Self-evaluation:
The starting points for evaluation Other self-evaluation criteria
O – Activities have not been started (no such activity). There might be some ideas
2. Employees – how does the organization lead, develop and open up
but no actions have followed. the potential of both employees as individuals and of teams and
1 – A little progress, there is little proof of planned actions/approaches (P – plan, plans actions in that field.
planning), there is occasional evaluation/control over the results achieved 3. Resources – how does the organization plan and manage external
2 – Considerable progress, clear proof of actions/approach having been planned in
advance and put into practice (D –do). There still are some aspects that have not and internal relations and internal resources (finances, assets,
been considered. materials, gadgets)
3 – Actions/approach have been planned, put into practice and overlooked (C – 4. Processes supporting the client’s journey – how does the
check). There are regular reviews of moving towards the goal but still some
aspects have not been considered. organization plan, manage and better its processes in order to
4 – Complete functioning, all aspects have been considered. Actions/approach support its clients’ journeys
have been planned, put into practice, overlooked based on data comparison and
corrected if needed (A – act, correcting activities) and integrated into the
functioning of the organization
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Other self-evaluation criteria Defining areas of improvement
5. Outcomes: ! Important areas of improvement can be defined as a result of the
1) Clients – what are the results concerning the external clients of self–evaluation. It is advisable that defining them would take place
the organization (feedback, client satisfaction etc) by consensus, this means that everyone would have a chance to
speak out. Areas of improvement that get the most “votes” will be
2) Employees – what are the results concerning employees (general
satisfaction, managing satisfaction, working conditions, focused on.
inclusion, motivation etc), staff turnover, developing skills etc ! Logic – you can’t do all at once! Some areas are far more
important than others!
3) Sustainability – what are the results concerning the financial
sustainability of the organization in the following areas: ! Certain goals will be set in order to improve the chosen areas and
economic, social and environmental a detailed plan will be formulated (actions, dates, people
responsible for them, control mechanisms etc)
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12. The Integrated Model of Service Quality
Models for evaluating quality (Parasuraman et al 1985)
! The basis of the management quality award (EFGM) is the existance of causal
connection between the quality of management and long-term success. It is the
basis for the national quality awards of 23 European countries, including
Estonian Quality Award. www.efqm.org; www.ejk.info
! Balanced scorecard. A system for communicating strategy and measuring
success that measures financial, client, process and learning aspects. Many
global companies (Hewlett-Packard, IBM, Mobil, Shell, Texaco) and also
Estonian companies (Tartu Õlletehas, AS Andmevara), Estonian Government
Office, Enterprise Estonia, Tartu University etc from the public sector
www.balancedscorecard.org
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How to use this wisdom of quality in tourism Tourism product is a wholesome visiting
destination quality perspective? experience
! All the previous information was mainly about the quality of
companies and products. ! A tourism product usually consists of different services: transport,
accommodation, meals, events, sightseeings and activities, but also
! The quality programmes used in Estonian tourism are company or infrastructure, hospitality, atmosphere and other hardly detectable
product focused components.
! If and why is there a need for a wider perspective in relation to the ! All tourism services can be sold whether as independent services
broadening of the concept that a tourism product is a wholesome or as a combined package. This means that tourism companies
visiting experience? together with many connecting companies and organizations are
! In the Estonian National Tourism Action Plan (2006) the following mutually dependent. Each of them illustratively “produces” their
definition for tourism product has been given: share of a wholesome visiting experience a.k.a. a tourism product.
! Tourism product is a wholesome visiting experience that ! What else in addition to the aforementioned affects the visiting
consists of different products and services that a visitor experience in a destination? Remember – a visitor perceives the
consumes during his/her trip. whole thing, he is not imprisoned in one or the other enterprise.
What does he rely on when assessing tourism destination quality?
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13. How to understand the quality of Pracitical work 1
tourism? What does tourism destination quality stand for?
! Tourism quality is a complex and faceted phenomenon that is ! Group work (15 min for preparation)
perceived and evaluated by the client through several factors,
including: ! Pick one as a secretary and one as the presenter of the
! the quality of destination (a very wide concept – destination work
country, region, city, county etc + many other factors); ! Write down all the words that in your opinion associate
! the quality of accommodation, transport, food, services etc
with the word “tourism destination quality”
! service quality throughout the whole journey
! the feeling you have after a visiting experience and so much ! Assort the words logically
more ! Present your work
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Topic 1 test questions
! What is quality?
! What are the problems of Estonian tourism quality?
! Why has the need for more attention on tourism quality appeared?
! What are quality values?
! Which factors make up quality perceived by people?
! What do the words immanent and transcendent quality stand for?
! Why does the philosophy of quality set the following questions: 1) How do we know
what quality is? and 2) Who are “We”?
! How do you characterize a Quality Person?
! What does quality management stand for?
! What is the Deming Wheel?
! What does service quality consist of?
! Why is it important to start quality planning from self-evaluation?
! How are the improvement areas of quality chosen?
! What are the most common quality evaluation models?
! What does tourism destination quality stand for?
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