Chapter 1 Flashcards
Eight major industry sectors
- Accommodation
- Transportation
- Tour operators
- Tour wholesalers - inbound and outbound
- Attractions and theme parks
- Retail travel agents
- Information services
- Exhibitions, meetings, and events
Four identified segments of the
Hospitality Industry
- Food and Beverages, commonly called F&B
- Travel and Tourism
- Lodging
- Recreation
Three Aspects of Tourism and Hospitality
Industries;
- The Environmental (Environment Aspects)
- The Economic (Economy Aspects)
- Social Dimension Aspects
(Society Aspects)
The general understanding of people when the word
environmental sustainability is mentioned is limited to the
protection of the natural and physical environment.
Environment Aspects
Environmental Aspects has 5 description may help in understanding these nuances:
- Natural Resources
- Natural Environment
- Farm Environment
- Wildlife
- Build Environment
This refers to clean air, land, and
water in oceans, rivers, lakes, and seas.
Natural Resources
This refers to the natural landscape,
including natural forests, mountains,
rivers, lakes, and other regional
environmental uniqueness such as
geysers, rapids, clusters of hills, rock
formation, and the like, that is a magnet
for tourists.
Natural Environment
This refers to the altered environment
where man has made his mark and
improvements such as eco farms,
agricultural ecosystems, agriculture resorts
and landscapes, man-made forests,
grapes vineyard, fruit plantation, and
aquatic farms.
Farmed Environment
This refers to the land-based and water-
based living organisms, flora, fauna, birds,
insects, fish, and marine life.
Wildlife
This refers to the architectural
environment, heritage buildings and
structures, old villages and century-built
townscapes, old transport infrastructures
Build Environment
This can be rooted in the clear
effects of tourism footprints in the lifestyle and
resulting profile of the local communities, the arrival
of tourism in a local community,
Society Aspects
Often given little attention
compared to the other issues. Perhaps it is the
financial benefits of tourism and hospitality
enterprises are more evident than of its social
and ecological cost.
Economy Aspects
Enterprises in the tourism and hospitality area
benefits the community on the following economic
parameters:
- Employment generation
- Enterprise creation
- Increase in disposable income
- Increase in the propensity to save
- The influx of foreign investment
Green Ideas in Tourism
- Energy (e-vehicles, solar powered amenities)
- Water (quota limits in aqua sports, protected diving sites)
- Waste (edible cutlery, recycling, all biodegradable)
- Biodiversity (retro-fitting on built tourism, protection of sites
for ecotourism)
Green Ideas in Hospitality
- Energy (solar powered hotels; camping; homestays)
- Water (re-using towels and bed covers)
- Waste (waste management; materials recovery,
refurbishing of furniture and fixtures)
+ Biodiversity (farms-to-market food; organic menu; no-meat
days)
ROLE OF TOURISM AND HOSPITALITY
ENTERPRISES ON THE SUSTAINABILITY
AGENDA
- Sustainable use of natural resources in production processes and in-service provision
- Sustainable consumption of goods and services
- Sustainable management of ecosystems
- Sustainable tourism planning and management
- Sustainable government and social infrastructure to support businesses
Economic issues that have far-reaching effects on this sector
- labor markets
- strategic supply chains,
- funding and investment
- refunneling of profit to community
development.
Cultural commercialization
Loss of community
identity
Labor exploitation
Sexual abuse.
Social Issues
Economics, social, environmental, and legal issues underscore
Corporate Social Responsibility (CSR)
Risks can be classified into three types
> Business Risk
Non-Business Risk
Financial Risk
Common Safety Hazards in the Travel and Hospitality Industry
> Slips, trips, and falls.
Injury from incorrect manual handling
Hazardous chemicals
Fires
Food Poisoning
The basic methods for risk management are the following
- Avoidance
- Retention
- Sharing
- Transferring
- Loss prevention and reduction,
The five steps in the risk management
process
Step 1: Identification of the risk
Step 2: Analysis of the risk
Step 3: Evaluation of the risk
Step 4: Treatment of the risk
Step 5: Monitoring and review of the progress of risk analysis action
Businesses within the
tourism and hospital realm will have their natural rise and fall,
but will always be outlined with heavy competition.
Fierce Competition
Oftentimes, technology
is not maximized well enough to augment actual
marketing efforts. The fear of losing a “personal touch”
may sometimes result in inefficient and inappropriate
marketing efforts on the part of the service providers.
Inappropriate marketing actions.
Hotels that early enough
cared to invest in renewable and environment-friendly
energy supply stands to gain in the long run. The profile of
new tourists is tilted toward those who are more.
sustainability-conscious, and are willing to trade off some
modern perks for a more rustic and natural vibe.
Inefficient Energy Utilization.
Image is a crucial selling
point for any tourism and hospitality business. This image
may be enhanced by selling service at a standard that is
just a notch higher. In the same way, this image may be
destroyed with just a single and simple flaw.
Careless Customer Relationship.
The availability of the
right personnel in the service industry is crucial for
mitigating any risk that may arise in this area of business operation.
Insufficient Skilled Service Providers.
Quality service should not be synonymous with expensive service. Quality service at reasonable rates results to repeat patronage and a more
sustainable income flow.
Prohibitive Service Rates
Cleanliness and well-maintained facilities are important for accommodation-related businesses. Proper space utilization
and efficiency of room equipment and appliances are important. The lack of in-service maintenance time should
never be a reason for having unkept rooms and common
areas.
Inadequacy in Maintenance and Cleanliness Response.
Accommodations
that are situated in the so-called “off the beaten track” is
increasingly becoming a choice among travelers, this does not
mean having to hurdle colossal difficulties on mobility and
accessibility.
Inefficient Mobility and Accessibility.
People who go on vacations
or who travel for business would appreciate having the risk of
security removed from their time of enjoyment or from the stress
of their work.
Uncertainty in Security Conditions.
Risks that are unique and identifiable under the tourism and hospitality sector.
- Fierce competition.
- Inappropriate marketing actions
- Inefficient Energy Utilization
- Careless Customer Relationship
- Insufficient Skilled Service Providers
- Prohibitive Service Rates
- Inadequacy in Maintenance and Cleanliness Response.
- Inefficient Mobility and Accessibility.
- Uncertainty in Security Conditions.
Refer to the different forms of tourist
related business ventures permitted with the National Constitution.
Tourism Enterprises
Business
ventures having similar preparative principles, but working on a very
wide scale.
Tourism Enterprises
Defined the tourism
enterprise as “a composition of products involving transport,
accommodation, catering, natural resources, entertainment and other
facilities and services, such as shops and banks and other tour
operators.”
Sinclair and Stabler (1997)
Defined as a person or a
group of people producing and managing tourism products
Tourism Entrepreneur
Must have the commonly prescribed
entrepreneurial traits along with service sector specialties.
Entrepreneur
Defined as the
professional application of knowledge, skills and competencies and/
or of monetizing a tourism related new idea, by an individual or a set
of people by launching an enterprise de novo or diversifying from an
existing one
Tourism Entrepreneurship
Refers to the activities of the
major group of stakeholders of this service sector primarily designed for the
effective and profitable interaction of demand and supply of tourism products;
Tourism Entrepreneurship
excludes all forms of tourism or tourism like activities which
are against the generally accepted laws of the land.
Legal Tourism Enterprise
Qualities which
should be present in a Good Entrepreneur.
+ Knowledge
+ Leadership and management skills
+ Awareness of new
technology + Information about the most appealing tourism and
travelling packages.
Gives
us an opportunity to peep inside the industry
Interest
Give us an
edge to prepare schedules and travelling packages for the clients.
Creativity
Entrepreneurial Enterprise certain
Initial Steps are highly important.
+ Global trend of
tourism business
+ Local market saturation levels
+ Targeted business
domain
+ Appropriate modes of marketing + Social contacts
+ Awareness
about the global changes in the business of travelling and tourism
+ Appealing promotional deals.
The Foremost Step in developing an enterprise entrepreneur
should have deeply observed global trends of tourism.
Which country
do people prefer to go, and at which rates or packages?
Global Trend of Tourism Business
A work plan focusing on the flaws which can be found in the
market. We should focus on the areas of weakness in the market.
LOCAL MARKET SATURATION LEVELS
In some cases when you are going to target your
primary services the selection of appropriate marketing technique can
boost the business.
MODES OF MARKETING
The contacts with the business community and clients can
act like an effective marketing tool.
SOCIAL CONTACTS
Some regional accidents or terrorist attacks sometimes
influence the travelling business. The extent of business decrease
within no time and the tourism industry may collapse.
Awareness about the global changes in the business
of travelling and tourism
The promotional packages either for tourism if remain
successful to grab the attention of the client age can boost the
business.
Appealing Promotional Packages
WHY WRITE A BUSINESS PLAN?
- More companies stay in business
- You can understand what to do
- You can allocate finite resources better
- You will understand the finances.
- Everyone is aware of your plan
Not knowing why things go wrong, why customer don’t buy or return, why your competitors are better or more respected than you is a recipe for disaster.
You can understand what to do.
Companies that are in business and generate higher than average profits mostly have a
business plan that they follow.
More companies stay in business
No company can do everything. You will need to prioritize the work required in the
coming year.
You can allocate finite resources better
You and your staff, bank manager and other interested parties all need to know the
direction the company is going. This is important to pull everyone into the same
direction and develop teamwork.
It also saves some people doing things that are not priorities in your business.
Everyone is aware of your plan.
If you are always overdrawn at the bank or find it difficult to get new finance then you’ll need to forecast your sales and cost.
You will understand the finances.
Involves the attainment of goals, and the way to accomplish such goal.
A frame is need in attaining goals.
Business Planning
PRINCIPLES OF PLANNING
+ Planning must be realistic
+ Planning must be based on felt needs
+ Planning must be flexible
+ Planning must start with simple projects
The objectives of the entrepreneur should fit the needs of the people in community.
Such needs can be known through observation, personal interviews and
questionnaires.
Planning must be based on felt needs
It must be based on available resources-human, financial and physical resources. If
these are not enough, then it would be impossible to implement successfully the
project.
Planning must be Realistic
Resources needs and economic condition changed. Planning should be adjusted to
such changes to be effective and relevant.
Planning must be flexible
The most appropriate project for people that have no business experiences is the
micro businesses. This requires very simple management and technology. It also needs
simple and few resources in terms of funds, materials and equipment.
Planning must start with simple projects
STAGES OF BUSINESS PLANNING
+ Unplanned Stage
+ Budgeting System Stage
+ Annual Planning Stage
+ Strategic Planning Stage
At the start of the business, the owner manager is busy looking for funds, customers, materials and equipment.
Unplanned Stage
The owner/manager realizes the need to develop and use a budgeting system.
Estimated incomes from sales and expected expenditures are made. This is done to facilitate the orderly functions of the growing enterprise.
Budgeting System Stage
The owner manager drafts the annual plan. He can use either the top-down planning or
bottom-up planning
Annual Planning Stage
The owner manager provides the goals and let the
employees comply with them.
Top-Down Approach ( Autocratic )
He encourages his
employees to participate in the planning the goals and strategies of the enterprise.
Bottom-Up Approach ( Democratic )
As a business enterprise become bigger, a long-range planning is needed. This is a three or five
year plan. Such plan has flexibility to be able to adjust to changing conditions.
Strategic Planning Stage
