Tourism and Hospitality Operations Management

This document explores the operational, human resource, financial, and product/market contexts in tourism and hospitality operations management. It discusses the issues faced in each context and their impact on the industry. The document also highlights the importance of infrastructure, strategic planning, employee turnover, training and development, taxation, marketing, and the impact of terrorism on the industry.

Running head: TOURISM AND HOSPITALITY OPERATIONS MANAGEMENT
Tourism and Hospitality Operations Management
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1TOURISM AND HOSPITALITY OPERATIONS MANAGEMENT
Operational Context:
The tourism and the hospitality industry is a booming market in the modern business
world ad that is pretty evident with the growth of the industry. However, the modern tourism
and the hospitality business world is seen to face significant number of issues in the various
aspects and one of them is the operational context. In the operational context, the industry is
observed to face the issues such as the absence of the infrastructure and the absence of the
strategic plans for the better penetration in the customer groups.
The absence of the effective infrastructure that have the potential to offer better
facilities to the customers, plays a crucial role in the positioning the destination in such a
manner that attracts larger number of customers (Morrison 2013). Apart from this, many of
the organizations and the governments are observed to face the impact of the ineffective
strategies for targeting the various customers groups. The application of the pricing policy
that may be low or premium for the products and the services with a precise focus on the
demographics of the customers is seen to be overlooked by many of the organizations of the
selected industry (Viglia, Mauri and Carricano 2016). Hence the above mentioned issues
have the potential to affect the business organizations operating in the selected industry, in
targeting the customers in an efficient manner.
Human Resource Context:
Two of the most crucial issues that are present in the human resource in the
mentioned industry are the increasing turnover rates and the absence of the training and the
development of the employees.

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(Information: Annual growth of total contribution of travel and tourism to employment in
Australia from 2012 to 2018 with a forecast for 2028)
(Information Courtesy: Statista.com 2019)
From the above mentioned statistics, it is pretty evident that the mentioned industry in
Australia is able to generate notable amount of employment over the years, however,
majority of the organizations operating in the industry are facing significant amount of issues
in the effective management of the pay structure. As mentioned earlier, the industry is
significantly expanding and is subjected to a notable growth, the demand of the services is
increasing. With a precise focus on the need of the overtime in managing the intense work
pressure in the industry, majority of the companies are unable to efficiently meet the
physiological needs of the employees through the formation of a lucrative rewarding policy.
Hence the increment in the dissatisfaction amongst the employees results in employee

3TOURISM AND HOSPITALITY OPERATIONS MANAGEMENT
turnover (Bustamam, Teng and Abdullah 2014). Apart from this, the absence sufficient
activities in meeting the training and the developmental needs of the employees increases the
number of faults in the operations of the employees which hampers the reputation of the
organizations and increases the level of dissatisfaction amongst the employees of the industry
(Dhar 2015).
Financial Context:
The global and the national tourism industry are seen to face significant impact of the
increasing taxation. Many of the modern organizations, with the intention of entering the
industry are seen to be concerned with the increasing rate of tax (Incera and Fernández 2015).
The goods and the service tax along with the service charges are seen to be significant
menace for majority of the organizations operating in the mentioned industry. In addition to
this, the application of the increased tax rates forces the organizations to increase the pricing
of their products which plays the role of a barrier for the organizations in targeting the
customers specifically the low income groups.
Apart from this, the incapability of the organizations in terms of identifying the peak
times is seen to provide notable detrimental impact on the financial aspects of the business
operations of the organizations operating in the mentioned industry. The inappropriate
calculation regarding the probable demands of the market and the numbers of the
international travellers is seen to be a major concern for many of the organizations (Leonidou
et al. 2013.). The improper idea regarding the number of the international travellers has the
potential to affect the financial stability of the organizations operating in the hospital and
tourism industry.
Product and Market Context:

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One of the most prominent issue in the product and the market context is observed to
be the issue of terrorism (Bac, Bugnar and Mester 2015). It is pretty evident that the
preferences of the customers of the selected industry is significantly inclined towards the safe
and secure environment. The modern customers are seen to be significantly influenced with
the uncertainty and the terror of various rising extremist organizations and the preferences of
the customers regarding a particular destination is observed to be notably influenced with the
presence of the terrorism in the region. Hence it is pretty evident that the impact of the
terrorism is a significant hold on the tourism in a particular destination.
One of the significant issue in the modern hotel and tourism industry is the absence of
the marketing of the tourism destinations. With a precise focus on the impact of the social
media and offline promotions, the need of marketing s pretty evident. The effective
communication regarding the products and the services to the probable customers proves to
be significant for the modern business organizations in terms of providing a much required
market limelight to the services or the products of the organizations operating in the selected
industry. Hence it has the possibility to influence the customers towards the purchase of the
services. However, the ineffective and the improper marketing activities have the potential to
affect the targeting of the customers from the part of the business organizations and that has
the potential to result in the decline in the generation of the revenue (Morrison 2013).

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References:
Bac, D.P., Bugnar, N.G. and Mester, L.E., 2015. Terrorism and its impacts on the tourism
industry. Revista Română de Geografie Politică, 17(1), pp.5-11.
Bustamam, F.L., Teng, S.S. and Abdullah, F.Z., 2014. Reward management and job
satisfaction among frontline employees in hotel industry in Malaysia. Procedia-Social and
Behavioral Sciences, 144, pp.392-402.
Dhar, R.L., 2015. Service quality and the training of employees: The mediating role of
organizational commitment. Tourism Management, 46, pp.419-430.
Incera, A.C. and Fernández, M.F., 2015. Tourism and income distribution: Evidence from a
developed regional economy. Tourism Management, 48, pp.11-20.
Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. and Zeriti, A., 2013. Resources and
capabilities as drivers of hotel environmental marketing strategy: Implications for
competitive advantage and performance. Tourism Management, 35, pp.94-110.
Morrison, A.M., 2013. Marketing and managing tourism destinations. Routledge.
Statista.com 2019. Australia - growth of travel and tourism contribution to employment
2018-2028 | Statistic. [online] Available at:
https://www.statista.com/statistics/865489/australia-growth-of-travel-and-tourism-
contribution-to-employment/
Viglia, G., Mauri, A. and Carricano, M., 2016. The exploration of hotel reference prices
under dynamic pricing scenarios and different forms of competition. International Journal of
Hospitality Management, 52, pp.46-55.