Risk Factors and Strategies in Tourism Crisis

The assignment discusses the challenges faced by the tourism industry due to the advancement of the internet, which has led to increased competition and brand loyalty. It analyzes various risk factors such as economic downturns, natural disasters, and changes in consumer behavior. The strategies discussed include crisis management, destination marketing, and business recovery, including re-thinking business plans, protecting profitability, and providing value-added services.

Running head: TOURIST EXPERIENCE
Tourist Experience
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
This report aims to offer a brief outline of the tourism experience in Australia. It will this
subject as the case study. This report will highlight and analyze the contemporary issues on the
basis of tourism operators and destination in order to evaluate the entire experience. It will also
offer a systematic and appropriate critical analysis regarding the tourism experience in Australia.
This will also focus on the activities of Destination Management Organization. The list of
activities will include their response, adjustment and strategies to the contemporary tourism
issues in Australia. This report will also examine the practices that the operators are undertaking.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Contemporary issues facing tourism operators and destinations:................................................3
Importance of Destination Management:....................................................................................5
Tour Operators in Australia:........................................................................................................5
DMO and Tour Operators’ strategies to combat the contemporary issues:.................................5
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8

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Introduction:
This is to be noted that tourism in Australia plays the role of an important and significant
component of the economy Australia. It is evident that tourism contributed 3 % of the total
contribution of a$47.5 billion by Australian GDP the state economy (Economics, 2013).
Therefore, it can be said that the domestic tourism plays a vital part in the global industry with
the representation of 73% of the overall tourism GDP. According to the reports of 2010-2011,
that the sector of tourism contributes 8% of the overall export earnings of Australia (Forsyth, et
al. 2014). The renowned tourist destinations of Australia covers the significant shoreline cities
of Brisbane, Melbourne and Sydney. The list of prestigious destinations include the Gold Coast,
provincial Queensland, and the Great Barrier Reef. This can be said that Uluru and
the Australian outback have become the popular location with the emerging market of wildlife
tourism. Therefore, it is evident that the rare Australian wildlife has become the key interest of
the Australian tourism.
Discussion:
Contemporary issues facing tourism operators and destinations:
This can be said that travel industry is experiencing a difficult phase of time in terms of
threats and risks in this contemporary world. The world is becoming significantly fast with the
advancements of technologies and technicalities. It is evident that people are facilitated with
multiple options and easy solutions with a touch on the mobile screen. Therefore, it is not
sufficient to provide good service to the tourists but also to reach them as soon as possible. The
contemporary problems the tourism operators and destinations are facing:
I. Further options:
This is to be noted that the number of tourists along with different interests have
increased significantly in the human history. It should be added that the tourist avenues
have also increased along with the number of tourists than ever before (Hall, 2014). This
is evident that significant number of options are available to the tourists with a little
amount of research. Customers are getting end number of deals, discounts and added
facilities along with the tour package. Therefore, it can be said that the increased number
options are being equivalent to decreased amount of customer loyalty. It is easier for the

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clients to switch on to the other company if they find any sort difficulty or dissatisfaction
in the current plan or package. This is clearly evident that the growth of online tourism is
creating a significant and tough competition in this field. However, the fact that an
individual agent can solve a problem better than a computer is almost forgotten.
II. Expense Transparency:
This is to be stated that everyone in this contemporary world is significantly tech savvy
and know the various use of internet. The contemporary world thinks that Google is the
ultimate solution. This can be said that it is only the matter of touch. The users are quite
aware of the fact that everything is available in internet. The users only require to search
with the proper key words. There is no need to think that the tourists are naive. They are
aware of the methods to opt for the best deal. It is evident that the rising number of OTA
(Online Travel Agency) initiates significant rivalry in this specific industry (Henne,
2014). The agencies require to face the challenge and offer the transparent schemes to
the customers in order to survive in this industry. Therefore, providing superior value for
money facilities than their rivals can lead the company to sheer success.
III. Developing faith and attracting attention:
This is to be noted that the travel and tourist companies are into the significant
competition of severe business. It is challenging for them to emerge as a popular brand in
the market of such tough competition. This is evident that the new companies who are
entering the market with the help of advancement of OTA cannot rule over the leading
and prominent companies who contribute in the national market. According to the
number of dealers, there are still a large number of tourists who are significantly brand
conscious and extremely loyal to the specific brand (Hwang, 2014). Therefore, it can be
said that if a specific brand can earn faith by a loyal service to the client with all the
transparent budget of expense and profit the brand has miles to go.
IV. Travel is not significantly adventurous in contemporary world:
This is to be noted that the clients do not need to go to the agents to ask or consult
regarding interesting locations (Chen, et al. 2014). All the information are only a key
away. People can search for new and interesting places in the internet along with all the
details and images of the certain places. It is also evident that they do not feel excited to

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reach and discover the place as they have already seen multiple images of the particular
space. Therefore, the thrill and the charm for an unknown place to discover, to know and
to experience has already missed.
V. Constant flexibility and mobile oriented fast solutions:
The agencies who do not provide mobile solution has no hope to survive in the market of
digital advancement. People are not ready to stand for hours to book tickets. They find
the online ticket booking is significantly easy and time saving. This is evident that the
online booking take less time and less effort of the users. It can be said that the mobile
solutions offer significant flexibility. Clients are facilitated with the significant amount of
cash back offer in the online ticket booking options (Mathen, 2014). This is evident that
the significant offers, discounts and interesting packages can attract the interest of
multiple people. It can also be stated that the clients do not need to pay any consultancy
fee in case of internet.
Importance of Destination Management:
Destination Management is also known as strategic tourism planning. DM aims to bring
all the shareholders under the same roof and offer them with strategies to work in collaboration
in order to modify a set of interests, actions and facilities into an organized and fascinating
tourism experience or the destination spot (Vila, 2015).
Tour Operators in Australia:
This is to be noted that Council of Australian Tour Operators (CATO) is a significant
association of expert and Tour Operators (Beirman, 2016).The employees of CATO are skilled
in all the chief characteristics of tour and travel, ready to offer the exclusive and profitable tour
and travel packages to the significant and popular national and global destinations.
DMO and Tour Operators’ strategies to combat the contemporary issues:
The recovery strategy by DMO and Tour Operators to combat the contemporary issues include
ten specific steps.
Step 1: Major Messages:

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 Travel events are open ended for industry.
 Travelers are greeted.
 Significant incentives and discounts are offered for visiting board.
 Solidarity messages are written for the committed market.
Step 2: Setting out the particulars:
 The entire destination oriented tourist events are operational.
 The evaluation of the tourists’ opportunity.
 Offer value added services including discount or additional facility for visiting now.
 Opt for outline improvisation, improvements and transformation.
Step 3: Complementary Collaboration with Principals:
 Collaborative arrangements with resorts, hoteliers, restaurants, air links and interests
(Cornick, 2014). Collaborative promotional strategies and significant value added
engagements in performances between the significant complementary principals.
 Collaborative projects among the travel authority and clients.
Step 4: Reestablishing Self-confidence in Source Industry:
 Hosting event oriented trips to familiarize the travel agents with the travel writers.
 Pursue witness recommendations from the estimation leaders in the significant source
industry.
 Utilize Google YouTube to show pictures and the live situation in reality.
 Confirm tourist market investors are completely updated.
 Validate facility to the tourists who are canceling or postponing for apprehensions.
 Assure the significant agents and GSAs in the particular source industry are completely
updated.
Step 5: Collaborative Industry Models to compete with:
 Tourism Action Group Fiji is an association of tourism market leaders initiated during
crunch circumstances in Fiji.
 PATA’s Project Phoenix, after SARS retrieval for SE Asia in 2003 (Quach, 2013).
 Thailand’s after Tsunami rescue 2005 (Kamolvej, 2014).

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 Collaboration of wholesalers with the significant destination partners.
Step 6: Protecting Profitability during Marketing Recovery.
 Providing significant amount of incentives which helps the company to earn profit.
 Value added services work better than discount. Avoiding the specific “financial
striptease” of decreasing amounts in low level to expose the bottom line.
 Providing significant amount of incentives in coincidence with the specific travel market
partners that comprises profits for accommodation, food, travels and stays to attractions.
Step 7: Re-thinking the business plan:
 The specific crisis program represents a prospect of upgrading and re-thinking the
particular business.
 Entirely re-conceptual promotion and advertising.
 Attention to the future.
 Attention to the profits for undertaking business.
 Underlining structures and profits that have formerly been unnoticed or under-promoted.
Conclusion:
This can be concluded that the tourism operators and destination are facing a significant
number of issues with the advancement of internet globally. Tourists and travelers do not require
travel consultancy in person in contemporary days. They are facilitated with multiple number of
options and choices. This is evident that contemporary tourists do think twice to switch brands in
the matter of tourism. However, there is a concept called brand loyalty still exits. Therefore the
leading brands are still managing to earn profit. DMO and tourist operators have taken number of
strategies to combat with this crisis situation. The risk factors and the strategies both are being
discussed and analyzed here to evaluate the entire scenario.

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References:
Beirman, D. (2016). Tourism Risk, Crisis and Recovery Management Guide (for Tour
Wholesalers).
Chen, Y. C., Shang, R. A., & Li, M. J. (2014). The effects of perceived relevance of travel blogs’
content on the behavioral intention to visit a tourist destination. Computers in Human
Behavior, 30, 787-799.
Cornick, J., Jimenez, J., & Román, M. (2014). Public-Private Collaboration on Productive
Development Policies in Costa Rica (No. IDB-WP-480). IDB Working Paper Series.
Economics, D. A. (2013). Economic contribution of the Great Barrier Reef.
Forsyth, P., Dwyer, L., Spurr, R., & Pham, T. (2014). The impacts of Australia's departure tax:
Tourism versus the economy? Tourism Management, 40, 126-136.
Hall, C. M., Williams, A. M., & Lew, A. A. (2014). Tourism conceptualizations, disciplinarity,
institutions, and issues. The Wiley Blackwell companion to tourism, 3-24.
Henne, J. (2014). Business model dynamics in the tourism industry (Bachelor's thesis, University
of Twente).
Hwang, J., & Han, H. (2014). Examining strategies for maximizing and utilizing brand prestige
in the luxury cruise industry. Tourism Management, 40, 244-259.
Kamolvej, T. (2014). Has Thailand disaster management, from Tsunami to flood, been
better. Journal of Governance of Mahasarakam University, 4(2), 103-119.
Mathen, N. (2014). Online Promotions: Exploring the emerging opportunity in Indian market.
Quach, P. G. (2013). Examining international tourists' satisfaction with Hanoi tourism (Master's
thesis, fi= Lapin yliopisto| en= University of Lapland|).
Vila, T. D., Darcy, S., & González, E. A. (2015). Competing for the disability tourism market–a
comparative exploration of the factors of accessible tourism competitiveness in Spain and
Australia. Tourism Management, 47, 261-272.