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Questions and Answers
Which of the following are conditions regarding demand in the tourism & hospitality industry?
Which of the following are conditions regarding demand in the tourism & hospitality industry?
What is the primary constraint on service production?
What is the primary constraint on service production?
Time
What does the term 'optimal capacity' refer to?
What does the term 'optimal capacity' refer to?
The condition where the services of an organization are fully utilized but not overused, and customers are still receiving quality service.
Full charge pricing during peak periods is a strategy used to reduce demand.
Full charge pricing during peak periods is a strategy used to reduce demand.
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What are some ways that organizations can increase capacity temporarily? (Select all that apply)
What are some ways that organizations can increase capacity temporarily? (Select all that apply)
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What are some techniques used in the chase demand strategy? (Select all that apply)
What are some techniques used in the chase demand strategy? (Select all that apply)
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Increasing demand to match capacity is a strategy used to increase demand when service demand is low.
Increasing demand to match capacity is a strategy used to increase demand when service demand is low.
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What is the key to keeping a tourism and hospitality business profitable?
What is the key to keeping a tourism and hospitality business profitable?
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What happens whenever a system processes a transaction that exceeds the number of influx dealings?
What happens whenever a system processes a transaction that exceeds the number of influx dealings?
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Which of the following are types of queues that organizations may use in their operations? (Select all that apply)
Which of the following are types of queues that organizations may use in their operations? (Select all that apply)
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What are some strategies to deal with queuing? (Select all that apply)
What are some strategies to deal with queuing? (Select all that apply)
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Reducing customers' waiting time is difficult in the tourism and hospitality industry.
Reducing customers' waiting time is difficult in the tourism and hospitality industry.
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Study Notes
Demand and Capacity in Tourism
- Demand is the volume of goods and services customers need at a given time.
- Supply is the number of goods or products available for consumption.
- Capacity is an organization's ability to provide services.
- Productivity is an organization's ability to create goods and services efficiently.
- Excess demand occurs when demand exceeds capacity, leading to lost opportunities.
- Demand exceeding optimum capacity results in crowded conditions, lowering service quality.
- Balancing demand and supply at optimum capacity is ideal, achieving customer satisfaction and employee efficiency.
Managing Demand
- Service organizations must understand factors affecting demand and capacity.
- Market segment demand patterns should be analyzed to tailor service specifically.
- Predictable demand cycles require strategies for each phase.
- Random demand fluctuations require flexibility for diverse conditions (weather, disasters, etc.).
- Understanding these patterns helps manage disruptions.
Determining Demand
- Demand forecasting predicts future customer demands using historical data and real-time trends.
- Competitor data analysis helps small businesses establish competitive pricing.
- Monitoring economic factors (local and global) is crucial to adjusting product/service demands.
- Marketing projections aid in adjusting inventory to meet increased demand.
Managing Capacity
- Productive service capacity is the resources an organization uses for service delivery.
- Time constraints influence service production efficiency and profit.
- Service-oriented businesses face concerns about labor costs, especially in fluctuating demand.
- Equipment limitations like facilities and infrastructure can affect capacity.
Strategies for Modifying Demand
- Communicating with customers about peak periods can adjust demand.
- Modifying service delivery timing and location can help disperse demand.
- Incentive programs during off-peak periods can attract customers.
- Prioritizing customer categories (e.g., VIPs, seniors) can be helpful.
Strategies for Adjusting Capacity
- Shifting capacity involves expanding during peak periods and minimizing during downtime.
- Strategies for increasing capacity temporarily include longer operating hours, hiring part-time staff, cross training, or outsourcing.
- Chase demand strategies adjust service resources (people, facilities) to match demand fluctuations.
- Increasing demand to match existing capacity can leverage promotions and service adjustments.
- Strategies for queueing involve different queues (single sequential, parallel, designated) and numbering systems to optimize customer flow.
Differentiating Waiting Customers
- Service organizations can adjust policies based on customer needs, prioritizing urgent matters or high-spending customers.
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Description
Explore the concepts of demand, supply, and capacity within the tourism sector. Learn how organizations can manage service delivery by balancing customer needs with operational capabilities. This quiz covers various factors that influence demand and the strategies necessary for effective management.
