TLM Baku Understanding Tourism Lecture 3 PDF

TLM Baku Understanding Tourism Lecture 3 Markus W. Eitle 18.09.2024 Schedule 2 Attendance Check 3 Agenda 1. Recapitulation 2. Quality Tourism Services 3. Accomodation & Catering 4. Austrian Tourism 4 I Recapitula...

TLM Baku Understanding Tourism Lecture 3 Markus W. Eitle 18.09.2024 Schedule 2 Attendance Check 3 Agenda 1. Recapitulation 2. Quality Tourism Services 3. Accomodation & Catering 4. Austrian Tourism 4 I Recapitulation 1. Recapitulation One-Level/Direct Distribution Channel? Two-Level Distribution Channel? Three-Level Distribution Channel? 6 1. Recapitulation Do you remember the current economic trend? 7 1. Recapitulation 8 1. Recapitulation Tourist Images 9 1. Recapitulation Recreation facilities Segmentation Cosmopolitan environment Novelty seeking Historic sites Health & fitness Beaches Push or Pull Factor? Desire for escape Rest and relaxation Enhancement of social interaction Hobbies Entertainment 10 1. Recapitulation reached effectively Tourist Segmentation identified and measured grow or large enough shrink interested 11 1. Recapitulation Tourist Segments 12 II Quality Tourism Services 2. Quality Tourism Services The Model The SERVQUAL model represents service quality as the discrepancy between a customer's expectations of service offering and the customer's perceptions of the service received Parasuraman et al., (1985). 14 2. Quality Tourism Services The Model Customers have certain expectations regarding service quality: – Word-of-mouth from friends – Personal needs – Past experiences – Marketing communications 15 2. Quality Tourism Services The Five SERVQUAL Dimensions 16 2. Quality Tourism Services The Five SERVQUAL Dimensions 17 9  2. Quality Tourism Services Quality and Customer Satisfaction Customer compare expectations to service received and determines satisfaction level: – If perceived “actual” quality is better than expected - Highly satisfied – If perceived “actual” quality is less than what expected - Dissatisfied – If perceived “actual” quality is about what was expected - “Just” satisfied 18 2. Quality Tourism Services Quality and Customer Satisfaction Value of highly satisfied customers (HSC): Pass more word of mouth than “just satisfied” customers tend to: 1. More likely to purchase again and spend more in the future; 2. Less likely to respond to competitors’ promotions than “just satisfied”. 19 2. Quality Tourism Services Service Encounters Voorhees et al. (2017) define service encounter as: “Any discrete interaction between the customer and the service provider relevant to a core service offering” 20 12 2. Quality Tourism Services Service Encounters Every interaction between a service employee and a customer is a service encounter Service Scripts: Encounters follow similar steps “Moments of Truth” during which quality is judged; typically a multi-stage service progress Quality assurance in tourism services is a management challenge 21 13 2. Quality Tourism Services Service Encounters – Mistakes Human beings can have a break from the customer’s service script Mistakes happen… Most customers give the provider a chance to make things right Satisfied guests represent potential future income flows - dissatisfied guests represent opportunities lost; Be a Can-Do Problem Solver Making things right involves a few simple actions… 22 23 15 Until: 10:30 24 2. Quality Tourism Services Service & Quality Tourism services are actions, not objects... they are also highly intangible and perishable Challenging to replace or repair a tourism service Facilitating goods: Services are often accompanied by what also supports the service Customer: who is often an active participant in producing the service Guest often must complain face-to-face to the provider Quality: both objective and subjective in nature … 25 2. Quality Tourism Services Service & Quality 26 18 2. Quality Tourism Services Service Guarantees/Solutions Good idea to provide variety of problem solutions to ensure that guest is happy Offer a guarantee that has five features: 1. Unconditional with regard to elements under the service provider’s control 2. Easy to understand and communicate 3. Should be meaningful 4. Easy to collect 5. Appropriate restitution/compensation for customer’s trouble. 27 28 22 III Accommodation & Catering 3. Accommodation & Catering Tourist Accommodation – Structure 30 3. Accommodation & Catering Tourist Accommodation – Providers Hotels Major employer Most significant and visible subsector Dominated by small, family-run operations offering a variety of accommodation types Groups or chains of hotels account for about 10% of total accommodations The major chains continue to grow in terms of number of hotels and number of rooms Guesthouses, bed and breakfasts, farmhouse accommodations, inns Provide limited facilities and food and beverage. 31 3. Accommodation & Catering Tourist Accommodation – Providers Self-catering accommodations, apartments, cottages and gites Comprise accommodations, recreational facilities and food preparation facilities Campus accommodations Provides student accommodation during semesters and reasonably priced accommodation to tourists at other times Time share Popular in Mediterranean holiday resorts, this provides the opportunity to own an apartment for a week or two per year Youth accommodations Backpackers’ accommodations. Popular in Australia = 10% of all international tourists 32 3. Accommodation & Catering Tourist Accommodation – Providers Camping and caravan sites Ranging from basic fields with few amenities to sophisticated resorts Medical facility accommodations Providing accommodation for the increasingly important medical tourism industry Cruise liners and ferries/Trains and aircraft Increasingly viewed as a threat to the more traditional accommodation providers. 33 3. Accommodation & Catering Leading Hotel Chains Marriott International (now incorporating Starwood hotels) Hilton Worldwide InterContinental Hotels Group Accor Louvre Hotels Mandarin group Oberoi Hotels 34 35 3. Accommodation & Catering Tourist Accommodation Four key characteristics of accommodation  Accommodation is distinct from other industries in four areas 1. It comprises both tangible (product) and intangible (service) factors; the consumer buys the product on trust, being unable to inspect it before committing themselves to the purchase 2. The production and consumption of accommodation is inseparable and the guest must be present at both production and consumption; the delivery of the service takes place with the customer and the service provider present. 36 3. Accommodation & Catering Tourist Accommodation 3. Accommodation is highly perishable and cannot be stored for future sale. Unsold capacity (flights, hotel rooms, coach excursions, etc.) cannot be stored and sold at a later date 4. Heterogeneity: Each element of a complex tourism product is subject to variations. Examples include flight turbulence, inclement weather, the personality and mood of service personnel encountered by the tourist The tourism product is seldom a single component. It invariably includes transport and accommodation. The customer service associated with each of these influences the overall ‘experience’. 37 3. Accommodation & Catering Tourist Accommodation – Typical Guest Cycle 38 3. Accommodation & Catering Tourist Accommodation – Management Specificities Two fairly unique aspects of accommodation management are: Overbooking The act of selling more rooms than are available as a means of ensuring all rooms are occupied Yield management Aims to maximise revenue by selling rooms to particular markets at the best price. 39 3. Accommodation & Catering Classification & Rating Systems Grading: Identifies accommodation according to certain verifiable objective features of the service offered, such as the number of courses served at meals, whether 24-hour service is provided and so on Classification systems (budget hotel, resort, etc) provide managers with reference groups and benchmarks against which they can evaluate the performance 40 41 3. Accommodation & Catering Organizing for successful operations Doing-it-alone Small independent properties, managed by owners Not bound by corporate policies so have complete decision-making authority No corporate support/resources. Franchising Provide use of brand name, reservation system and management systems from parent company in return for royalties and fees Franchisee gives up some decision-making freedom Franchising in the lodging business is still uncommon in Europe and Asia. 42 3. Accommodation & Catering Organizing for successful operations Management Contracts Owners of lodging property hire a company to manage/operate the property Management company receives percentage of revenue as compensation Owners retain all financial obligations. Chain Operations Chain operations have common ownership or management Chains provide similar benefits as franchises. 43 3. Accommodation & Catering Organizing for successful operations Time-Share Condominiums Usually have amenities similar to a luxury apartment Vacation ownership is appealing to people who can plan in advance and want to be assured of accommodations at set times at specific locations Fee-simple or right-to-use basis Flexibility to swap occupancy rights with other owners Point system is new way to sell time-shares and make swapping easier Destinations and week of year vary in popularity. Check: http://www.rci.com/RCI/RCIW/RCIW_index?body=RCIW_RCITV 44 3. Accommodation & Catering Environmental issues Water use Much of the water used by tourists is within accommodation units. However in certain areas, the maintenance of gardens and golf courses can have a significant impact on other industries. Energy use Any reduction in the use of energy will have financial as well as environmental benefits. Recycling Accommodation providers can assist in this area by the re-use of paper and plastics, the avoidance of disposable products and the replacement of individual shampoo sachets with dispensers. Waste disposal Accommodation providers are becoming more aware of the effective disposal of the large amounts of waste they produce. 45 3. Accommodation & Catering The Hospitality Industry Accommodation Catering Business „Staying Overnight“ „Eat & Drink“ Hotel, Motel Restaurant (fully licensed) Inn Pub or tavern Guest-House, Pension Café vs. Coffee Shop Chalet, Villa Fast Food, Snack Apartment (Timeshare) Party Service Youth Hostel Airline Catering „Club“ Resort (All-inclusive) 46 3. Accommodation & Catering Importance of Catering A day trip to a famous restaurant or a drive to visit a popular inn at the weekend are both familiar forms of excursion that must be included in statistics estimating tourists’ expenditure. Longer holidays to France are often taken primarily or mainly because of its strong tradition of outstanding food and drink. 47  3. Accommodation & Catering Importance of Catering CATERING often being seen as separate as it provides to both tourists and non-tourists alike Catering at accommodation: most guests staying at a hotel will be tourists Many choosing to dine in a hotel restaurant or other eatery whereas locals simply enjoying a meal out. Due to difficulty to make the distinction, these two markets are seldom differentiated for statistical purposes 48 3. Accommodation & Catering Importance of Catering Catering consists of food and beverages, while tourism catering takes place in a range of facilities, including: Hotels and motels Campsites and caravan parks, holiday camps Restaurants, cafés, snack bars, pubs, nightclubs and even takeaway food shops 49 3. Accommodation & Catering The Meal Experience The meal experience comprises four elements: 1. Food and drink 2. Service 3. Decor, furnishing and fittings 4. Atmosphere By juggling these four elements, caterers can direct their efforts to reach a wide variety of niche markets, depending on the type of food served, its quality, level of service provided, the furnishings and price charged. 50 Restaurants – Fully licensed 51 3. Accommodation & Catering Classification of Restaurants There is no single definition of restaurant classification Most experts agree there are two main categories: Independent and chain restaurant Other categories include: fine dining, quick service, ethnic, family, dinner house, occasion, casual, etc… Some restaurants may fall into more than one category. For instance, a restaurant can be both ethnic and quick service such as Taco Bell 52 3. Accommodation & Catering Meeting Guest Expectation Guest experience involves several interrelated factors: Consider the design of the menu itself; Choice of service ware and place settings; Artistry of food presentation on a plate; Style of guest service.  All together to target guest segments 53 3. Accommodation & Catering Fast Food - McDonald‘s - Burger King - Wendy’s - Pizza Hut - KFC - Subway - Sushi (“Akakiko”) - Kebab - Sausages -… 54 55 56 57 The Austrian answer to „culinary imperialism“? 58 What trends have you seen recently in Food and Beverage industry? 59 60 61 3. Accommodation & Catering Slow Food Slow Food is an organization that promotes local food and traditional cooking. Alternative to fast food, preserving traditional and regional cuisine and encouraging farming of plants, seeds, and livestock characteristic of the local ecosystem. Promotion of local small businesses and sustainable foods. Focus on food quality, rather than quantity. Against overproduction and food waste Check out: https://www.slowfood.com 62 3. Accommodation & Catering Coffee house or shop? - Hard Rock Cafe - Starbucks - Coffee to Go - Eduscho/Tchibo - Anker ….. Much more than coffee… Coffee Museum Vienna: www.kaffeemuseum.at/en/index.html 63 3. Accommodation & Catering Coffee house or shop? - Tchibo Tchibo is a German chain of coffee retailers and cafés known for its range of non-coffee products that change weekly. The latter includes: clothing, furniture, household items, electronics and electrical appliances. In Germany, Tchibo's slogan is "Every week a new world" 64  3. Accommodation & Catering Catering & Party Services The process of preparing and providing food for different types of events, such as weddings, concessions, and corporate and social gatherings. - Receptions - Ball Season -Awards (Film,…) - Events (Formula 1, Soccer, Ski,…) 65  3. Accommodation & Catering Airline Catering In-flight meals served to the passengers boarding the flight. - SkyFoodCatering - LSG Sky Chefs (LH) - Gategroup  https://www.aca.catering/ 66 67 Discussion Catering Meets Tourism Technology 1. Can you see the introduction of automised service and robots as one way forward in modernizing the catering industry globally? While it has appeared to boost profits, can you see any downsides to the idea? Will it appeal to certain markets and be more suitable for certain types of restaurants more than others? 2. How do you perceive the impact of increasing food delivery service (ex. Apps) on a hotel catering business? What could hotels do to face such a phenomenon? 68 Until: 69 VI Austrian Tourism 4. Tourism in Austria Facts Facts about Austria Location – Lountry in Central Europe, bordered by eight countries including Germany, Italy, and Hungary. Capital – Vienna is Austria’s capital and largest city, known for its cultural history, architecture, and music. Language – German is the official language of Austria, with regional dialects spoken across the country. Population – Approximately 9 Mio. people. Alps – The Austrian Alps dominate much of the country’s landscape, offering stunning views and outdoor activities. 71 4. Tourism in Austria Facts Facts about Austria Economy – Diverse economy, with tourism, manufacturing, and agriculture playing important roles. Music and Arts – Musical history, being the home of composers like Mozart and home to many world- renowned orchestras and operas. Political System – Federal republic with a parliamentary democracy, consisting of nine federal states. Education – Austria offers a high standard of education and is known for its universities, such as the University of Vienna, one of the oldest in Europe. European Union – Member of the European Union since 1995 and uses the Euro as its currency. 72 4. Tourism in Austria Facts Facts about Austrian Tourism City Tourism: Vienna, the capital city, offers many historical sites, art galleries, and music venues, including the Vienna State Opera or Schönbrunn castle. Alpine Scenery – Austria is famous for its breathtaking alpine landscapes, making it a top destination for nature lovers and hikers. Ski Resorts – With world-renowned ski resorts like Kitzbühel and St. Anton, Austria is a top winter sports destination. Cultural Heritage – Rich cultural history with many UNESCO World Heritage sites, including Salzburg’s Old Town 73 4. Tourism in Austria Facts Facts about Austrian Tourism Historical Cities – Cities like Salzburg, Innsbruck, and Graz offer a mix of medieval architecture and modern culture. Danube River – The Danube flows through Austria, offering scenic river cruises and access to picturesque towns and cities. Spa Tourism – Austria offers a variety of wellness and spa resorts, particularly in regions like Tyrol and Carinthia. Culinary Traditions – Austrian cuisine, including famous dishes like Wiener Schnitzel and Sachertorte, is a key attraction for food enthusiasts. Sustainability – Austria promotes eco-tourism with many protected natural parks, sustainable hotels, and environmentally friendly travel options. 74 4. Tourism in Austria World Market Source: UNWTO Market Trends, Competitiveness and Trade in Tourism Services Section 75 4. Tourism in Austria World Market https://www.unwto.org/tourism-data/un-tourism-tourism-dashboard 76 4. Tourism in Austria World Market https://www.unwto.org/international-tourism-and-covid-19 77 6 4. Tourism in Austria World Market 78 4. Tourism in Austria World Market 79 8 4. Tourism in Austria Austria AUSTRIA: a highly Seasonal business Winter Summer all year 80 4. Tourism in Austria Austria – Revenues 81 4. Tourism in Austria Austria – Nationalities https://www.unwto.org/tourism-flows-source-markets-and-destinations 82 https://webunwto.s3.eu-west-1.amazonaws.com/s3fs-public/2020-10/austria.pdf 4. Tourism in Austria Austria – Nationailites Austrian Destination Province Country of Origin 83 4. Tourism in Austria Tourism Organizations in Austria Public (Trade) Bodies Employers / Employees Representatives Federal Chamber Federal Chamber Federal Chamber of Austrian of Commerce of Agriculture Labour Trade Union Congress Regional Chambers Regional Chambers Regional Chambers of Commerce of Agriculture of Labour Industry Sector Representations Employers Employees 84 4. Tourism in Austria Tourism Organizations in Austria Public Trade Bodies  Compulsory membership Chamber of Commerce (WKÖ) https://www.wko.at/service/Austrian-Economic-Chambers.html Chamber of Labour (AK) https://www.arbeiterkammer.at/service/ratgeber/Die_Arbeiterkammer/The_Chamber_of_Labour.html Private Interest/Lobbying Groups  Voluntary membership Austrian Trade Union Congress (ÖGB) https://www.oegb.at/cms/S06/S06_11/english Austrian Hotelier Association (ÖHV) https://www.oehv.at/english/ Austrian Tour Operators & Travel Agencies Association (ÖRV) https://www.oerv.at/de/ Austrian National Tourist Office (ANTO/ÖW) 85 4. Tourism in Austria Tourism Organizations in Austria Chamber of Commerce (Wirtschaftskammer Österreich - WKÖ) => employers‘ interests Gastronomy Hotels Travel Agencies Entertainment & Leisure Enterprises Cable Cars & Skilifts Chamber of Labour (Arbeiterkammer - AK) => employees‘ interests 86 4. Tourism in Austria Tourism Organizations in Austria Tourism (Marketing) Organizations in Austria ANTO - Austrian National Tourist Office - 9 Regional Tourism Organisations - Local Tourist Boards transport, restaurants, accommodations, leisure, tour operators, travel agencies, theme parks, internet portals etc. - Suppliers & Intermediaries - Tourists, Guests 87 Source: C. Maurer (IMC) 4. Tourism in Austria Austrian National Tourist Office (ANTO) Global Network 88  4. Tourism in Austria Promotions Promoting Austria in 1949 89 4. Tourism in Austria Promotions 90 4. Tourism in Austria Promotions 91 4. Tourism in Austria Promotions Promoting Austria in Winter 2006/2007 92 27 4. Tourism in Austria Promotions Promoting Austria in Summer 2007 93 4. Tourism in Austria Promotions https://b2b.austria.info/uk/ https://www.austriatourism.com/ www.onlinetraveltraining.com/free -courses/providers/austria-uk 94 4. Tourism in Austria Promotions https://www.austria.info/en 95 Thank your for the attention Are there any questions? Prof. (FH) DI Dr. Markus W. Eitle, M.Sc. Institute Marketing & Wine Business Department of Business IMC Krems University of Applied Sciences Office Campus, Trakt U 3500 Krems, Austria +43 2732 802 153 [email protected]