Transcript Tour Operations Management

Tour Operations Management
Future Issues
Issues already covered
• Changing customer expectations and
behaviour
• New competitors
• Globalisation of ownership
• Impact of new media
The changing offer
• Product
– from package to mass customisation?
• Price
– from discounting to added value?
• Place
– from bricks to clicks?
• Promotion
– from commodity to brand?
Environmental issues
• What are the main issues in the impact of
tourism on the environment?
• To what extent are the tour operators
responsible for these problems?
Corporate Social Responsibility
(Tourism Society May 2002,)
Companies are under pressure to act because of
• Government policy, regulations, taxation
• Growing influence of pressure groups
• Ethical influences on consumer choice
• Risk management
• Sustainability = long term success
Why have T.O.s ignored
enviromental issues?
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Young and rapidly growing
Fragmented - no collective responsibility
Low profit margins = no spare cash
Little pressure from consumers
Complex supply chain & fierce competition
Employees don’t understand the concepts
Not easy to measure results & benefits
Benefits of CSR
(First Choice 2002)
• A good environment is the core product
quality experience = repeat bookings
therefore sustainable development = long term survival
• CSR = enhanced reputation = brand image
• ethical policies attract & retain good staff
First Choice’s environmental
strategy
• Involved in Sustainable Tourism Initiative
• UNEP Tour Operators’ Initiative
• This fits into their positioning strategy
First Choice’s Transformation Strategy
To reduce the Group’s dependence on mass
market tourism by building a portfolio of
specialist travel businesses which will generate
up to 50% of the Group’s profits within 3 years
Will other operators feel able to follow?
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Some companies, particularly independent tour operators, have practiced responsible
tourism for many years. Their tour programmes are designed to work closely with the
people and the environment of the destination as an integral part of the holiday
experience. (ABTA website)
Responsible tour programmes include:
Use of hotels that pursue good environmental practices such as
conserving water and minimising waste
Use of locally-owned hotels and transport companies that provide
employment and income for the local population
Hiring of local guides
Providing customers with key information e.g. tips on dress codes, how
to say a few words in the local language and important customs of the
destination
Supporting local community & conservation projects
For information about companies that incorporate responsible tourism into their
programmes, visit:
www.responsibletravel.com - ideas for more responsible holidays
www.toinitiative.org - a United Nations responsible tourism
programme, whose members include Thomson, First Choice
Persuasion or Regulation?
Balearic Islands ecotax on tourism
http://www.ecotaxa.org/index.en.html
– €1 per day to pay for Tourist Area Restoration projects
– Abandoned for political reasons after one year
Is this the only way to get TOs to act
responsibly?
What is really Green Tourism?
http://www.greenglobe21.com/index_cp.html
The report style
A business report
Concise – using bullet points and short
paragraphs explaining your decisions
Use theoretical models to present your
proposals
eg channel/value chain, competitive strategy, brand
But no need to explain the theory
Reference your sources of data and models
Assessment criteria
• Knowledge of the target market and the
tourism resources
• Understanding the process of tour operations
• Ability to analyse the information (using
theories)
• Creative decision making to create an
attractive and viable tour product
Thank you and good luck!