Transcript of Special Interest Tourism - Management Issues
- 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. 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. 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. 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 organisations 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. 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. 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. 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. 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. 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. 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.
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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
organizations 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. 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. 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)
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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)
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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. 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
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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
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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
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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
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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 its a better use of resources to use less petrol or use
a smaller vehicle when taking visitors on a tour.
- 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. The International Travel College of New Zealand 22 Impacts
of tourism on a host destination Socio cultural Environmental
Economic