ST AND FUNCTIONAL MANAGEMENT 5. 1 Marketing Management The potential role of marketing techniques in sustainable tourism Seeking to understand the customers in terms of their motivations and determinants Need to scan its business environment for relevant data that might determine the stances it takes towards sustainable tourism The potential role of marketing techniques in sustainable tourism (cont. ) The scanning should involve: 2.
3. 4. Government legislation on environmental issues The economic climate The level of public concern over the social and environmental impacts of tourismThe potential influence of technological innovations such as virtual reality The organization or destination would then look at itself and its current marketing situation (SWOT analysis) One approach that can be taken is to use one of the three forms of generic strategies (Michael Porter): Cost leadership (cheaper than competitors or normal price and increase the profit margin) Product differentiation (emphasis on the quality rather than price; exploiting local uniqueness rather than standardization) Market focus (become the acknowledged leader in a particular market segment) Product dimensions of sustainable tourism product; Developing products which are more sustainable in nature (eg; conservation holidays, package using public transport rather than private cars) Moving away from offering products which are intrinsically not sustainable (hunting trips, packages to countries with a poor human rights record) Price The price paid by the tourist has to cover the full cost of their holiday.
It must be high enough to: Ensure a satisfactory experience for the tourist Provide a satisfactory level of profit for the tourism industry Generate an appropriate level of benefits for the host ommunity Cover any costs involved in putting right any damage caused by the tourist to the environment Pay for the resources consumed by the tourist Allow for employees to be paid a reasonable salary 5. 6. Price (cont. ) Also important to make sure that some tourism products are available at prices which can be afforded by the less well off sectors of the The quest for “quality’ tourists should not lead to pricing out the market of people The principles of sustainability also mean ensuring that the tourist feels they have received value for money, not the idea of being exploitedPlace We should encourage the trend towards direct selling, leaving out the intermediaries = better price for consumer Where an agent is used, action should be taken to ensure that the way they sell a product is ethical and does not raise unrealistic expectations in the minds of the tourists Promotion Important that it does not create expectations that the product cannot live up to Use literature and ads to raise tourist awareness of key issues relating to sustainability New technology such as Internet can allow small tourism organizations to communicate directly, at low cost with otential customers; allow them to compete more equally with the large national and multinational corporations Marketing consortia (pooled resources) for locally owned enterprises Sustainable Tourism and Competitive Advantage Ethical marketing. Eg; Body Shop In tourism – Virgin Atlantic Airways Sustainable Tourism: An Example of Consumer-led Marketing Organizations presumably will only take an interest in sustainable tourism if they feel their tourism market is concerned about this issue Most tourists are concerned far more with the environment than with other aspects of sustainability De-marketing: The Opposite of Consumer-led Marketing? De-marketing places: the example of Venice De-marketing peak periods: the example of the Peak District National Park De-marketing people: the example of the “lager-louts” 5.
Human Resource Management Human Resources and Sustainable Tourism The relationship between human resources and sustainable tourism has 2 main dimensions; Tourism can only exist if the industry can attract and retain an adequate supply of good quality staff, in other words, if there is a sustainable workers The way in which staff are treated by both managers and tourists given that sustainability is bout social equality and Justice Tourism (cont. ) Human resource management challenges in tourism Equal opportunities and sustainable tourism Pay and working conditions Seasonality and casual labor Management styles Training and personal development Job satisfaction Staff-tourist relations High-turnover and sustainability The Positive Dimension of Tourism Development Creates large numbers of Jobs at a relatively low cost Is relatively safe, with little risk form industrial injury or Job-related diseases Provides opportunities for dynamic young couple to develop interesting careersInvolves high levels of contact between customers and staff and provides opportunities for staff to meet people from many different countries Globalization, Multinational Corporations, Human Resources and Sustainability Restricts the opportunity for staff to develop products and service delivery processes which reflect local cultural differences Tend to insist on labor practices which differ from the norm in their host country and can be in conflict with cultural values in the same host country Multinational corporations feel free to use labor from anywhere in the world and tend to employ hose who will work for the lowest wage The Special Case of Developing Countries Tend to have a poorly trained workforce which may not be used to working in the highly disciplined, but low status Jobs found in the tourism industry Furthermore, because the tourism market is often dominated by in-bound foreign tourists, many businesses are foreign owned and bring in with them their own supervisory and management level staff Thus, the local people are denied the opportunity to move up the career level and gain experience Towards More Sustainable Human Resource Management Baum (1995): Should have a strong moral dimension, where pay and conditions are improved Employers must accept a sense of responsibility towards the local community and the people who live within it Organizations should see their employment as an asset and should have faith in the ability of their staff The need to plan human resources on a long-term basis Career planning for staff and making the criteria for promotion known to staff That key staff be grown and developed locally by the organization The operation of equal opportunities policies A partnership between staff and employers Full senior management commitment to trainingModifying company culture and human resource practice to reflect local differences Democratic, participative management cultures Recognizing the link between human resource management and quality 5. 3 Operations Management Environmental Practice The first stage in this process should be the carrying out of an Environmental Audit Also the 10 Rs should form the basis of corporate environmental management system in tourism as well as in other industries; Recognition of the nature of the issues, the problems and the opportunities surrounding environmental impacts and sustainability has to come before action Environmental Practice (cont. ) 7. 8.
9. 10.Refuse to engage in activities, as soon as possible, when they are recognized to be environmentally damaging Reduce current levels of usage, for example using better portion control to reduce food wastage Replace products or producers with ones which are more environmentally friendly Re-use materials wherever possible, such as cotton laundry bags in hotels Recycle where re-use is not an option Re-engineer in other words, changing traditional corporate management strategies and operations to reduce costs and achieve growth in ever competitive activities Retrain staff to help them behave in a more environmentally friendly manner and to help educate tourists about sustainable issues Reward staff who perform particularly well in relation to environmental practices Re-educate the tourist so that they modify their behavior Purchasing Policies Wherever possible, supplies should be sources locally Providing the most environmentally friendly products available, such as cleansing materials and vehicles Only buying good and services from services which operate good environmental management systems Other Issues Welcoming customers with special needs Good neighbours The safety of staff and customers