2. Managing Quality in A Tourism Destination Pertemuan 25-26 Matakuliah: G1174/Tourism Management and Planning Tahun: 2007

3. Bina Nusantara Topics Quality management in a tourism destination Trend and issues in the future of tourism destination

4. Bina Nusantara Objectives 1. To demonstrate quality management in a tourism destination 2. To identify trends and issues in the future of tourism destination

5. Bina Nusantara What do we mean by quality Quality is a key to achieving customer satisfaction It is a perception in the minds of customer The totality of features and characteristic of a product or service that bears on its ability to satisfy stated or implied needs Quality means different things to different people involved in the production and consumption of a product or service

6. Bina Nusantara Total perceived quality Experience quality Expected quality Total perceived quality Marketing & Sales Image Word of mouth Public relation Needs & values Image Technical solution Computerised system Know howMachines Technical quality What? Attitude Behaviour Accessibilit y Service-mind set Internal relation Appearance Functional quality How? Source: Gronross in Cooper (2005)

7. Bina Nusantara Quality management approaches Quality control – monitoring products or services’ quality and solving problem Quality assurance – prevention of quality problems in the first place Total quality control – concentrate on production and service delivery process Total quality management – concern with achieving constant, continuous improvement of production and service delivery quality

8. Bina Nusantara Service is... A process consisting of a series of more or less intangible activities that normally, but not necessarily always, take place in interaction between customer and employee and physical resources and system, which are provided as solution to customer problems. Personal commission work involving the technical element of a goal, the instrument, the order and a man. Basically, in service there should be: – mutual relation between producer and customer – something extraordinary – more than customer’s expectation – unique and different than competitors – can be improved at low cost Output of service: satisfaction or dissatisfaction

9. Bina Nusantara Quality management and service Criteria of Service Quality Professionalism & skills Attitudes & behavior  process Accessibility & flexibility  process Service recovery & handling complaint  process Serviscape  process Reputation & credibility  image SERVQUAL instrument 1. Reliability6.Communication 2. Responsiveness 7.Credibility 3.Competence8.Security 4.Access9.Understanding 5.Courtesy 10.Tangible

10. Bina Nusantara Quality management and tourism destination Quality management in tourism is particularly difficult because Tourists buy shared use rights to tourism products, the suppliers have little control over the quality of products Visitors pay very different price for their holidays. It affect the level threshold quality perceived. Traveller may have unrealistic high expectation of holidays that perhaps it is impossible for the products ever to live up.

11. Bina Nusantara Quality in a tourism destination means … The physical environment of destination and attraction The price visitors pays – value for money The service offered to tourists The reliability of products The safety of traveller in a destination The number of complaints received

12. Bina Nusantara Tourist Satisfaction and Expectation Satisfaction is emotional respond of an occasion or event or experience which can be equal or beyond his/her expectation The importance of tourist satisfaction Positive word-of mouth recommendation Creating a repeat business Dealing with complaint is expensive, time-consuming and bad reputation Type of satisfaction: (1) Instrumental - respond for technical quality (2) Expressive - respond for functional quality Type of expectation: Fuzzy expectation: customer expect producer to solve problem but do not have a clear understanding of what should be done Explicit expectation: realistic and/or unrealistic expectation Implicit expectation: customer take for granted

13. Bina Nusantara Designing quality management system It should cover every aspect of management including: The tangible elements, i.e. building, aesthetic appeal, safety, cleanliness, comfort, security, etc. Service delivery process, i.e. competency and attitude, professionalism, quarantines and warranties, etc. Human resource management, i.e. recruitment, training, performance, etc. Marketing, i.e. fair price, honest brochure, etc.. Financial management, i.e. effective budget, straightforward accounting, etc. Relationship with suppliers Provision for visitors with special needs Relationship with local community

14. Bina Nusantara Constraints on quality management in a destination A lack of finance to fund necessary development or improvement A lack of interest of some stakeholders – employee, government, community, etc. A culture that is not conductive to quality management Different view on what quality means between stakeholders Different level of quality between tourists and service providers

15. Bina Nusantara The future of destination management Warranty for service excellence Social driver of change Political issues Safety, Security and Risk Global warning – climate changes Human resource for tourism New Tourism

16. Bina Nusantara Political spirit in a tourism destination GATS –providing tourists with the best products and services at the best prices. This will – Encourage open tourism markets – Elimination barrier to travel and supply chain – Fair competition – Elimination anti-competitive practice (monopoly) in tourism – Equal access to transport and distribution system Trade bloc – country grouping in economic alliances i.e. ASEAN, EU Globalisation – free trade agreement, e-Business, utilisation of CRS and GDS, strategic alliances, global brand, etc. Emergent pattern – Niche tourism as political will.

17. Bina Nusantara Niche Tourism A form of tourism which involves consumers whose holiday choice is inspired by specific motivations and whose level of satisfaction is determined by the experience they pursue. Types of Niche tourism: – Physical activities i.e. Adventure tourism, backpacker tourism, sport travel, etc. – Learning-oriented i.e. audio tourism, creative tourism, educational tourism, ancestry tourism - to visit birth places, hobby tourism, etc. – The Heritage museum – The cultural oriented i.e. heritage tourism, village tourism, music tourism, etc. – The nature based i.e. coastal tourist, ecotourism, agritourism, etc. – Lifestyle-oriented niche tourism i.e. Gay tourism, Cuisine and Gourmet tourism, health tourism, medical tourism, mystical tourism, etc. – Perpetual tourism - free tax destination – Pilgrimage tourism – Shopping tourism – Space tourism and virtual tourism

18. Bina Nusantara New Tourism New Tourism dares to embrace a new dimension of Travel & Tourism. It is a mature response to a more complex world. New Tourism is a new sense of coherent partnership between the private sector and public authorities. It is geared to delivering commercially successful products – but in a way that ensures benefits for everyone. New Tourism looks beyond short-term considerations. It focuses on benefits not only for people who travel, but also for people in the communities they visit, and for their respective natural, social and cultural environments.

19. Bina Nusantara Conclusion Quality management is still a subject in its infancy, even though the future expects quality as the key issues. Concept of quality management in a tourism destination will not be determined by the destination itself, it is likely to be tourist-driven and will evolve in response to change in consumer attitude It is clear that the future of tourism will only be acceptable and successful if a well-trained and professional workforce is in able and able to implement the very best practice in managing tourism