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? 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? ++

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:  - ideas for more responsible holidays  - a United Nations responsible tourism programme, whose members include Thomson, First Choice

Persuasion or Regulation? Balearic Islands ecotax on tourism –€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?

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!