Risk Management Practices in Tourism Industry

The provided assignment focuses on risk management practices in the tourism industry, with a specific case study on resort management. It draws from various academic sources and publications to discuss the importance of risk management in the sector. The document aims to provide insights and knowledge for students and professionals in the field.

Resort Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1 ............................................................................................................................................3
A. Functions of resort operations ...............................................................................................3
B. Analyse the structure of the resort offices of different types of tour operators......................4
TASK2.............................................................................................................................................6
A. Examine the importance of an effective quality system in resort operations and monitor
quality procedures in managing conflicts and the legal issues...................................................6
B. Implementing an effective quality system has produced positive impacts on the operations
of the resort. ...............................................................................................................................7
TASK3.............................................................................................................................................9
A. Analyse a range of incidents that could affect the health and safety of customers and staffs
in a resort environment................................................................................................................9
B. Procedures implemented deals with various laws and legislations......................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Resort management is an important part of hospitality and lodging industry. It involves
different functions such as overseeing lodging operations, food services and recreational
facilities. Resort is an place where people visit in order to relax and spend quality time with their
family members or to celebrate events such as birthdays, marriage and anniversary (Ali and
Amin, 2014). In this report Aristi Mountain Resort is undertaken which is a complex stone of
building consisting of 18 rooms and Bulgari resort situated in London UK founded in the year
2012. It is situated in Bali 150m above sea level and offers sweeping views of the Indian Ocean.
This report will enlighten different functions as well as structure involved in resort operations.
At last It will highlight the effect of quality system in the organisation and will also give an brief
understanding of issues and incidents related to the management of the businesses.
TASK1
A. Functions of resort operations
In this part of the report the important function of Aristi Mountain Resort Hotel and Bulgari
resort Bali will be interpreted. As there are certain different activities that take place in a resort
on a daily basis for example providing accommodations to customers, food service, and other
some other functions such as sub lease and franchise etc (Ali, Hussain, and Omar, 2016). These
are distinctive in terms of nature and these resorts will have to perform different functions in
order to operate smoothly in the market. Which can be elaborated below:
 Communication: It is one of an important element in any given organisation Especially
in hospitality industry. As it comprises of people from different regional background
speaking different language it can become an difficult task for businesses to understand
and satisfy their needs because of the language issue. So in order to cope with these issue
organisation must hire professionals who can speak different languages so that customer
can feel a sense of comfort and they enjoy their overall stay in the resort, If there is a gap
in communication gap it will effect their satisfaction level and it also impact their
experience while staying in the resort.
 Coordination: Coordinating different activities in organisation can have a great impact
on its success. It is related with integration and synchronisation of different actions so
that already set goals of the organisation can be achieved. Coordination among activities

is usually established by top management in order to establish healthy formal and
informal relations among the work force. Coordination among different activities will
help the business to run efficiently for example tour operator will coordinate customers
reservation in accordance to the hotel room availability. Which will help the organisation
to plan their schedule dates and it will also help to enhance customer satisfaction level as
they can book services as per their needs and wants.
 Managing the health and safety issues- People are becoming more conscious about
their health which have forced organisation to ensure and maintain health and safety at
different level of organisation by adoption of several safety measures. As it also have
impacted employees as well by raising their expectation level in terms of health and
safety at workplace (Ali, Hussain, and Ragavan, 2014). Resort managers are responsible
for analysing the current provisions which are being adopted in the business related to
health and safety and if they are not up to mark they needs to adopt new provisions in
order to guarantee health and safety at workplace.
 Customer services: These includes different kinds of services provided by hotel such as
yoga room, swimming pool, Wi-Fi, cab facilities and room service. Every customer who
is visiting an particular place expect that he is provided with good customer services
Apart from this in order to increase the customer satisfaction to a higher level their
requirement should be fulfilled with immediate effect such as if they want to try different
variety of food chief should be able to full fill their demand. These should be provided in
accordance with the customer preference as it differs from one customer to another.
B. Analyse the structure of the resort offices of different types of tour operators.
Tour operators combines tour and travel components to create a package holidays packs
for customers in order to satisfy their needs. They use different strategies in order to increase the
sale of their products and services so that organisational goals can be achieved. Different type of
tour operators are as follows:
 Outbound operators: These includes promotion of travel from one country to another
that means they travel for tourism purpose. This types of tourism are often known as
international visitors (Amirudin and et. al., 2017). These are involved in promoting
foreign travel destinations which comprises of selling packages to the people of their own
country to for travailing in another country for a specific period of time. There job

includes arranging documents required for travelling abroad and making terms with
inbound operators so that they can handle services such as transport and accommodation.
 In bound operators: This are often referred to as incoming tour operators. They deal
with the inbound foreign tourist by providing different services to tourist right from their
arrival such as transportation, accommodation, sightseeing etc. They coordinate their tour
package with foreign tour in order to collaborate. They also organise different
programme such as diving and music events so that customer can be entertained and their
satisfaction level can be increased.
 Domestic tour operator : This type of tourism is also known as residents visiting
destination within their country boundaries. includes combination of tourist components
into inclusive tours. And then further their selling them to domestic travellers and
providing services within tourist home country. It encourages packing tour through their
own outlets and other retail agents.
 Ground operator : They are often known as reception operator and handling agents.
They organise tour arrangement for tourist who are incoming in the country on the behalf
of oversees operators (Canavan, 2014). They further organise seasonal events such as
winter sports and also promote adventure and heritage tours
Different structure followed by these operators can be elaborated below:
 Inbound tour operator is an dominant model and focusses on simplifying the authority
and accountability of different relations among the individuals. It follow hierarchical
structure which comprises of grouping employees according to their performance which
enable the organisation to make fast decisions (Rauch and et. al., 2016).
 Outbound tour operators tends to follows matrix organisational structure because it
comprises of combining people with similar skills for work which results in complex
reporting process because they have to report to more then one manager. Thus it enable
decentralised and fast decision making.
 Where as domestic and ground operators follow hybrid structure which enable them to
align together both individual and organisational goals and through this working in an
efficient and effective manner.

TASK2
A. Examine the importance of an effective quality system in resort operations and monitor
quality procedures in managing conflicts and the legal issues.
Effective management of quality is an important factor in Bulgari Resort as it is directly
related with the experience of the guest and if the experience is of premium quality it will help
the organisation to convert quest into loyal customers and they will also share their good
experience with other individuals which will help in increasing the business of the organisation.
Effective quality system is must in a organisation system so that effective methods can be used in
order to minimise conflict and issues can be solved which are effecting the operation of a
business (Gill and Williams, 2014). Effective quality system deals with certain aspects such as
ensuring health and safety, dealing with legal norms, fulfilling contractual obligations which
needs to be fulfilled in order to avoid legal issues which can impact the working of an
organisation and also incur cost in from of legal suits. For ensuring that health and safety is
ensured resort will ensue that their services are up to H&S standard. Directors are responsible
for maintaining and monitoring health and safety legislation. Along with this there are several
other practices which team of resort operation adopts such as fire safety, balcony safety and
water hygiene. In order to smoothly practice these in the organisation will provide training
programme to their employees in order to prepare them in advance for these contingencies
which might occur in the near future. These training secessions will be conducted by trained
experts and proper documentation would be done in order to ensure that proper compliance is
being made with the health and safety procedures. They will also conduct suppliers audit before
offering occupation to customers in order to ensure that health are safety procedure have not
been compromised in any sense (Pirani and Arafat, 2014). Customer are paying more importance
to health and hygiene in the modern world due to increasing health issues. By offering product
and services that are fulfilling the norms relate to health and hygiene organisation will be able to
attract larger number of audience.
By ensuring that the tour operator is reporting and dealing with irregularities which
involves different task such as monitoring organisational procedure, investigating accidents. In
order to deal with irregularities organisation needs an effective and efficient reporting system
which will involve emergency control development for all different kinds of products and
services (Hicks and et. al., 2014). Along with it employees will be given right to consult and

reach to senior member in order to take appropriate action with their guidance. In order to
introduce necessary changes proper analysis of accidents and their review will be done in order
to take action which can be taken in order to avoid their happening in the future. Employees help
will be used in order to develop blue print for documentation. So that an ease can be provided in
conducting training secessions for employees which will help the organisation to prepare them
for he future contingencies.
B. Implementing an effective quality system has produced positive impacts on the operations of
the resort.
Implementation of effective quality systems and procedure at Bulgari resort Bali has
resulted and impacted operations of the resort in the following ways:
 Highlighting the health and safety regulation and legal compliance which the
organisation is fulfilling in order to attract more customer and collaborate with tour
operator (Mason, 2015).
 Ensuring health and safety legislation through regular audit and checks.
 Handling the responsibility of implementation of health and safety legislation to the
managers Where as monitoring responsibility is with the directors.
 Proper reporting of the past incidents in the organisation through documentation.
 Management of the incident statistics by managers in order to report and avoid
occurrence of the same in the organisation.
 Offering of extensive training programme to the employees in order to maintain health
and hygiene.
 It facili Gap tates close relation and coordination between resort and tour operators which
will be useful in implementation of health and safety guidelines.
 By maintaining and working according to the legal norms Unfair trade practices can be
avoided.
 It helps in conducting proper investigation in relation to the incidents and improvisation
is being made on the basis of these investigations.
The gap model
It will be used by organisation to identify the gaps between service qualities and customer
expectations. The five gaps which an organisation needs to measure, amange and minimize can
be elaborated below:

 First Gap: Knowledge gap it is used to measure the gap between customer expectation
and management perception of customer's expectations (Hurd and et. al., 2019). This
arises because organisation are not been able to understand customers needs which may
because of various reasons such as lack of communication system.
 Second Gap: The policy gap which comprises of the difference between the management
perception of consumer expectation and the quality of service they are providing which is
based on what they believe consumer is expecting. In order to cover this companies need
to find out what is consumer actual perception is.
 Third Gap: The delivery gap which comprises of the difference between specified
service quality and the actual service offered. This can be due to certain reasons such as
lack of clarity in standard defined, problems between service intermediaries etc.
 Fourth Gap:The communication gap which arises because of the gap between the actual
and promised services offered to the customers. When the service provider promises don't
match with the actual services it result in having an adverse impact on the customer gap.
 Fifth Gap: The customer gap is the difference between customer expectations and their
perceptions. This arises when the customer is not able to understand what benefits are
being provided by services to them. This gap can happen because of one of the four gaps
or because of the customer wrong perception of the quality.

Source : Gap model of service quality. 2019
TASK3
A. Analyse a range of incidents that could affect the health and safety of customers and staffs in
a resort environment.
Fire incident that took place in Bulgari resort in 2018 has badly affected the operations of Resort.
It is an Italy based resort headquarter in Rome. Resort met in a fire accident on 2nd June, which
destroyed one part of resort completely and rest were little damaged. Every guest and staff
evacuated to some safer place and no one was injured by fire. An investigation was launched to
find out cause of fire (Kasim and et. al., 2014). Through investigation it found out that fire broke
out because of faulty wires, resort's wiring was outdated and because of the usage of increased
amount of electrical appliances by guests causes the system overload and start an electric fire.
Effect of this incident on Bulgary's operation were-:
 This incident has reduced the per year sale of resort because it is a freshly happened event
and people know about it through social media & newspaper. Tourist have fear for this
place and because of which they does not choose to stay in there.
 Resorts operation shifted from advertising & marketing to renovation of the building so
that they can again start their process. While renovating, organisation's task is to hire an
architect who can create a new design for the resort which is in their favour to attract
tourists.
 Their financial operations does not get affected much because resort get insurance money
after for their damage, after investigation proved it unintentional.
Incident of Aristi mountain resort and its impact on their operation-
A mishappening took place in a resort of Greece i.e. Aristi mountain resort. In which a
tourist of resort drown in swimming pool which caused heart attack and that person died .This
incident took place in afternoon at pool side when no one was around it, resort do had a camera
in that area but it was not working that day because of which people sitting in security room was
also not able to tap it (Khoo-Lattimore, Prayag and Cheah, 2015). Deceased family filed a case
against the resort and a police investigation took place. It revealed that the tourist was on drugs

and while enjoying in pool, person get drowned into the swimming pool which caused heart
attack. Aristi operations get affected-:
 This incident has deteriorate the image of the resort because of the investigations and
some allegations by deceased family.
 They start focusing more on their security part so that this type of incident do not take
place again.
B. Procedures implemented deals with various laws and legislations.
These are the procedures that tour operates will follow to cope up with these kind of incidents-
 Tour operator should always stay one step ahead and plan for mishappening in advance.
Like in case of fire incident, tour operator should have a safe place in their mind already
where they can evacuate tourists and save their life.
 Tour operators should always give instructions to their tourists for such type of situations,
so that they know what they have to do in situation of emergency.
 Before bringing tourists to any resort, it is the responsibility of tour guide to check its
security and safety measures like, fire alarms, availability of fire extinguisher, proper
cameras and other things (Kokosis, Perez and Pappas, 2014).
 In Aristi incident it was the tour operator's responsibility to take care for the safety of
their travellers till the end of the journy. Like tour guide would have arranged swimming
trainers for them which always stay near pool to guide the guests.
 Other thing that operator needs to do after happening of this, is to calm their other tourist
who must be scared from this incident, and assure them that they are safe.
 It is the responsibility of tour operator to inform deceased family member.
 Tour operator's prime responsibility is to ensure that resort and transportation company
have enough arrangement to deal with such type of situations.
 Tour operator should always have different teams working with them like incident
management team, joint operational incident & emergency, HR team and site response
team etc.
 If thing went very wrong and tourist had to cut back their holidays because of these
incidents, then tour operators need to refund them in some situations.

 Tour guides should always ready with the action plans for accidents like this and also
provide training to their staff and information to their travellers. They should always have
a first aid support with them.
 Travellers should be given staff contact details and always have a backup route for their
destination.
There are some procedures that tour operator implement within the guideline of
government bodies-:
 foreign officer's role is to spread emergency telephone number that help the travellers and
even tour operators in such extreme cases. These should be three to four digit number so
that people can easily remember it.
 Foreign officers should suggest to the travellers and operators if it is safe to travel in
particular area or not. This suggestion help in preventing unwanted and hazardous
incidents.
 Staff of foreign officer should be well trained so that they know how to dealwith a
particular situation and able to give solutions to the problems tourists are facing.
 They should always have extra members in their team like technical officer who help
when people get stuck in technical issues, press officers etc.
 Being a last resort financial support is another help that foreign officers can provide to
the tourist. But not to those who are travelling against the advice made by officer.
 For providing assistance to the resort team and customers, duty offices are established to
create a link between UK and resort team. This all is done to handle crises and to take
care of the safety of travellers.
CONCLUSION
From the above report it has been concluded that management of different resources is very
important in a resort. People visits resorts in order to relax and also for other activities such as
wedding and anniversary parties. It is one of the most important part of the entire hospitality
industry. In order to maintain and satisfy customers it needs to ensure that proper health and
safety measures are being taken by the same. Which will help them to work in accordance with
the legal norms.

REFRENCES
Books and Journals
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satisfaction in Malaysian resort hotels. European Journal of Tourism Research.12.p.25.
Ali, F., Hussain, K. and Ragavan, N.A., 2014. Memorable customer experience: Examining the
effects of customers experience on memories and loyalty in Malaysian resort hotels.
Procedia-Social and Behavioral Sciences.144. pp.273-279.
Amirudin and et. al., 2017. Risk Management Practices in Tourism Industry-A Case Study of
Resort Management. Management & Accounting Review.16(1).
Canavan, B., 2014. Sustainable tourism: development, decline and de-growth. Management
issues from the Isle of Man. Journal of Sustainable Tourism.22(1). pp.127-147.
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Hurd and et. al., 2019. Leisure services management. Human Kinetics.
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Online
Service Quality Gap Model. 2018.[Online] Available Through :
<https://community.verint.com/b/customer-engagement/posts/service-quality-gap-
model>.