purposive communication.docx

*Macro Perspective of Tourism and Hospitality* DEFINING TOURISM - "The sum of phenomena and relationships arising from the travel and stay of non-residents, in so far they do not lead to permanent residence and are not connected in earning activity"- *Prof.Hunziker and Krapf of Berne...

*Macro Perspective of Tourism and Hospitality* DEFINING TOURISM - "The sum of phenomena and relationships arising from the travel and stay of non-residents, in so far they do not lead to permanent residence and are not connected in earning activity"- *Prof.Hunziker and Krapf of Berne University, Switzerland*​ - "Tourism is a temporary short- term movement of people to destination outside the places where normally live and work and their activities during their stay at these destinations"* -- Tourism Society in Britain*​ -  "Tourism may be defined in terms of particular activities selected by choice and undertaken outside the home environment"* -Tourism Society in Cardiff*​ -  "Tourism is comprised of activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes"* --World Tourism Organization,1993*​ Tourism Terminologies:​ **Travelers**- are people on a trip between two or more places.​ **Visitors**- Are people who engage in tourism. Visitors are different from other travelers because of the following criteria.​ - The trip should be to a place other than that of their usual environment. origin-destination)​ - The stay in the place visited should not last more than 12 consecutive months. (duration)​ - The main purpose of the trip should be other than the exercise of activity remunerated from within places visitor. (Purpose of travel)​ [Types of Visitors] 1. **Overnight Visitor (tourist)** -- refers to a visitor who spends his/her night away from home. Stay at the destination for more than 24 hrs.​ 2. **Same-day visitor (excursionist)** --refers to any visitor who does not spend the night in a collective or private accommodation in the place visited. Stay at the destination for less than 24 hrs.​ 3. **International Visitor**- Refers to any person who travels to a country outside his/her usual environment for less than 12 consecutive months. 4. **Domestic Visitor**- Refers to any person who travels to a place other than that of his/her usual environment for less than 12 consecutive months. [Elements of Travel] 1. **Distance** - excludes commuting to and from work and change in resident - a measure that has been used to distinguish travel away from home is the distance traveled on a trip - a trip is when a person goes to a place at least 100 miles away from home and return to his/her place of residence" 2**. Length of Stay at the Destination** - The definition of a tourists and excursionists as proposed by WTO is largely based on the length of stay. - Tourists are temporary visitors who make at least one overnight stay, while excursionists are temporary visitors who do not stay overnight in the place they visit. **3. Residence of the Traveler** - For business and research purposes, it is important to know where people live. **4. Purpose of Travel** - Visiting friends and relatives - Conventions, seminars, and meetings - Business - Outdoor recreation- hunting, fishing, boating, and camping - Entertainment- sightseeing, theater, sports - Personal -- family, medical, funeral, wedding The Nature of a Tour 1. **Domestic Tourism​** - the national boundaries of traveler's country.​ - People find it easy to do so because there are no language, currency, nor documentation barriers.​ 2. **International Tourism** - across international boundaries of traveler's country.​ - It is more difficult to travel outside one's country because the country visited has a different language, currency, and documentation requirements, such as passports, visas, and other conditions of entry to be met by the tourists. [Package Tour ​] - Sometimes called inclusive tour - It is an arrangement in which transport and accommodation is bought by the tourist at an all-inclusive price.​ - The price of an individual element cannot be determined by the purchaser himself. [Independent Tour] - is an arrangement in which the tourist buys the facilities separately, either making reservations in advance through a travel agent. The Tourist Products ***1. Service​*** - It is an intangible item.​ - It cannot be inspected by prospective purchasers before they buy as they can with washing machine, gadgets, and other consumer goods.​ - The purchase of package tour involves a high degree of trust on the part of the buyer​ ***2. Largely Psychological in its Attraction​*** - It is more than collection of services such as an aircraft seat and a hotel room.​ - It is temporary use of a strange environment plus the culture and heritage of the region and other intangible benefits such as atmosphere and hospitality. ***3. Standard and Quality overtime***​ - A package tour cannot be consistently of equal standard.​ - A bumpy flight can change an enjoyable experience into nightmare;​ - A good room in hotel maybe spoiled by poor food;​ - A holiday can be destroyed by prolonged rainy spell.​ ***4. Fixed***​ - The number of hotel rooms available at a particular resort cannot be varied to meet changing demands of tourists during a particular season.​ - The unsold hotel room or aircraft seat cannot be stored for rarer sale as is the case of tangible products.​ - Thus, the great efforts are made to fill hotel rooms and aircraft by discounting the prices of these products at the last minute. **Characteristics of Tourism** - In tourism the product is not brought to the consumer; rather, the consumer has to travel to the product to purchase it.​ - The products of tourism are not used up; thus, they do not exhaust the country's natural resources.​ - Tourism is a labor-intensive industry.​ - Tourism is people oriented. - Tourism is a multi-dimensional phenomenon.​ - The tourist industry is seasonal.​ - The industry is dynamic. Different perspectives of tourism​ - The tourist - The business people - The government - Host community **Classification of travelers** \(1) Tourists in international technical definitions.​ \(2) Excursionists in international technical definitions.​ \(3) Travelers whose trips are shorter than those that qualify for travel and tourism; e.g., under 50 miles (80 km) from home.​ \(4) Students traveling between home and school only \-- other travel of students is within scope of travel and tourism.​ \(5) All persons moving to a new place of residence including all one-way travelers, such as emigrants, immigrants, refugees, domestic migrants, and nomads.​ **Tourism Supply Components** Can be classified into four main categories:​ 1. Natural resources (nature, environment)​ 2. Built environment (human-made surroundings)​ 3. Operating sectors (industry)​ 4. Spirit of hospitality & cultural resources(traditions, language, food etc.) **Impacts to Economy**​ **[Benefits of tourism]** - - - - - - - - Spreads development **[Drawbacks of tourism]** - Develops excess demand​ - Results in high leakage​ - Creates difficulties of seasonality​ - Causes inflation​ - Can result in unbalanced economic development​ - Increases vulnerability to economic and political changes **[Benefits of tourism -- social]** - Broadens educational and cultural horizons​ - Improves quality of life - higher incomes and improved standards of living​ - Justifies environmental protection and improvement​ - Provides tourist and recreational facilities that may be used by a local population - Reinforces preservation of heritage and tradition​ - Visitor interest in local culture provides employment for artists, musicians and other performing artists enhancing cultural heritage​ - Breaks down barriers - Creates a favorable worldwide image for a destination​ - Promotes a global community​ - Promotes international understanding and peace Defining Hospitality *Hospitality is:* - the [act of kindness] in welcoming and looking after the [basic needs of guests or strangers], - mainly concerning food, drink, and accommodation; - the relationship process between a [guest and a host;] - the [reception and entertainment of guests], visitors, or strangers with liberality and goodwill (Oxford English Dictionary); - derived from the Latin word ***"hospitare*"** meaning to **"receive as a guest"** The Pineapple Tradition *Why Are Pineapples a Symbol of Hospitality?* Let\'s check this trivia on pineapple and hospitality: - Pineapple enjoyed the rich and romantic heritage as a [symbol of welcome, friendship and hospitality] - **In 17th century**, it was brought back from the West Indies by the early European explorers and was cultivated in Europe and became the favored fruit to [serve royalty and elite] - Later, it was introduced to North America and became part of [the North American Hospitality] - Pineapples were displayed at doors or on gatepost announcing to friends and acquaintances: ["The ship is in! Come and join us\". Food and drink for all] *Since its introduction, the **pineapple** has been internationally recognized as the [symbol of hospitality and a sign of friendliness], warmth, cheer, graciousness, and conviviality.* Concepts of Hospitality - Hospitality was coined from the term **"hospice",** an old French word, meaning **\"to provide care/ shelter for travelers".** - The hospitality industry, a service industry, comprises a wide range of businesses, each of which, [dedicated to the service] of people away from home. - It includes [companies or organizations providing food and/or drink and/or accommodation] to people away from home. - It is an [industry segment] that includes among others, the [hotels, restaurants, private clubs, managed food service, event planning, and other tourism-related businesses], and travel providers. - Further, it is an industry, wherein, the [product purchased is either intangible or the perceived quality] of the product purchased is impacted to its guest Characteristics of Hospitality Industry *The characteristics of the hospitality industry are as follow:* - [Open 365 days in a year and 24 hours a day] - Depends on shift (**am shift, mid-shift, pm shift, night shift)** Sectors of Hospitality Industry *The following are the sectors of the hospitality industry:* 1. [Food and Beverage Industry] -- The food and beverage industry, also known as the foodservice industry. It consists of businesses that prepare food for customers 2. [Lodging] -- The lodging industry, also known as accommodation, is a place to sleep for one or more nights. 3. [Travel] -- The travel industry is in the business of moving people from place to place while the tourism industry provides those people with services that promote travel and vacations. 4. [Recreation] -- Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal of recreation is to refresh a person's body and mind. There are four general types of recreation businesses: a. entertainment, b. attractions, c. spectator sports, and d. participatory sports. **The Evolution and Growth of Tourism** ***[Early Tourism (500 B.C- 300 A.D)]*** Travel Exploration are basic to human nature The term tourism derived from the Hebrew word **"torah‟** which means studying, learning, and searching The term tourism was used only in the **19th Century.** Tourism can trace its ancestry in the old testament. [Noah with his Ark] must have been the [first large-scale operator] Early tourism has two forms of travel: **business and religious travel.** ***[Tourism in Medieval Period/ Middle Ages (5-14th Century)]*** Fall of the Roman Empire In this period, the [travel has declined]. It became burdensome, dangerous, and demanding during this time. **Travel** derived from the word [travail.] No one travel this time for **pleasure.** **Crusaders and Pilgrims** were the only one who travel. ***[Tourism During Renaissance and\\ Elizabeth Eras (14th-17th Century)]*** In this period, a few renowned universities developed so that [travel for education] was introduced and called **as "Grand Tour".** Under **Elizabeth I**, young men seeking position in court were [encourage to travel to continent to widen their education]. As young men sought intellectual improvement in the continent, the sick sought **a remedy for their illness in "spas"** or medicinal bath. The term "spa" is derived from Walloon word [espa] meaning ["fountain".] Soon, entertainment was added, and dozens of watering places became resort hotels. ***[Tourism during Industrial Revolution (1750-1850)]*** This period brought about major changes in the scale and type of tourism development. It brought about not only technological changes that made travel desirable asa recreational activity. The increase in productivity, regular employment, and growing urbanization gave more people the opportunity to go on holiday. **The Modern Tourism** ***[19th century]*** Two technological developments in early part in this century had a great effect in tourism. These were the introduction of railway and development of steam power. In latter part of this century, travel organizers emerged. Thomas Cook is the first and famous organizer. ***[20th Century]*** At the beginning of this century, pleasure travel continued to expand. After World War 1, forms of travel began to change radically. The railways as means of travel declined with the introduction of motor car. Another progress of after war was the aircraft technology. After post war recovery years, there was an increase of private car ownership. Origin of Tourism in the Philippines Tourism in the Philippines began when the original inhabitants search for food. A more recognizable tourism appeared when thecountry was discovered by Ferdinand Magellan. During American occupation in the Philippines, Americans were able to reach Manila after two weeks on board of Pan American Airways. Although there were already visitor arrivals from other countries, there were no tour operators. There were only few tourist attractions and destinations in the Philippines. It was difficult to measure tourist activities before WWII since there were no statistical records. In 1952, the first tourism association in the Philippines called Philippine Tourist and Travel Association (PTTA) was organized. Understanding the tourist In any tourism trip, there are likely to be several reasons which, when combined, can be considered as the motivational factors for the journey. Tourists are the main characters in the tourism industry and the tourism industry exists to cater to their needs. Tourism businesses acknowledge the fact that their success depends also on how much they know and understand their tourists. Tourism establishments should focus with what motivates tourists, how they make decisions, what they think of the products they buy, how much they enjoy and learn during their holiday experiences, how they interact with the local people and environment and how they feel about their holidays. **[MOTIVATION MODELS]** - Crompton: Push-Pull Model - Pierce: Leisure Ladder Model - Schmoll Model - Matheison and Wall Model - Hansal and Eiselt - Decision Making Model *[Crompton's Push-and-Pull Model ]* - This model emphasizes that the choice of destination of a tourist is driven by two forces: push and pull. - **Push** - pushes a tourist away (from home). People travel because they are into making travel decisions by internal, psychological forces. - **Pull** - pulls a tourist towards a destination. People travel because they Pulled by external forces of the destination's attributes (attractiveness). *EX. Attractions such as Disneyland or Sea World* TOURIST TYPOLOGIES - Refer to classifications of tourists based on their behavior. - It is an indicator of how marketers have relied on understanding their consumers through their behavior. - These typologies serve as guide to tourism business owners as to what products, services and facilities should be sold to certain tourists having the same behavior. - Several tourist typology models were developed by tourism experts and scholars. Some of the more popular models include the following: a. Plog's Psychocentric-Allocentric Model b. Cohen's Tourist Typology c. Global Travel Survey d. Pearce's Travelers Category **[Stanley Plog's Psychocentric- Allocentric Model ]** - Allocentrics -- adventure seeker, extroverted in their adventure choices. - Midcentic -- not exceptionally adventurous but is still open to new experiences. - Psychocentrics - usually non- adventuresome. seek the comfort of familiar surroundings, prefer to return to familiar travel destinations **[Cohen's Tourist Typology]** Type of tourist: - The drifter (highest) - The explorer (higher) - The individual Mass Tourist (Lower) - The organized Mass Tourist (Lowest) **[Pearce's Travel Category]** Pearce developed 15 traveler categories based on major role- related behaviors. - - Tourist - Explorer - Traveler - Missionary - Holidaymaker - Overseas student - Jetsetter - Anthropologist - Businessperson - Hippie - Migrant - International athlete - Conservationist - Overseas journalist - Religious pilgrim *[Market Segmentation ]* - Market segmentation is similar to tourist typology. - It is another way of classifying tourists and understanding them. - Segmentation is a sort of grouping people with the same characteristics such as geographic, demographic, psychographic, and product- related characteristics. *[Leiper's Model ]* The three Elements in Leipers Model: I. The Human Element: The Tourist II. The Geographical Element: a) The Generating Region b) The Destination Region c) Transit Route III. The Industrial Element *[Maslow's Hierarchy of need ]* This theory by Abraham Maslow in his 1943 work, "A Theory of Human Motivation," explains that as humans meet basic needs, they seek to satisfy successively higher needs that occupy a set of hierarchy. Maslow (1954) proposed that human beings possess two sets of needs: Deficiency needs are concerned with basic survival and include physiological needs such as the need for food, sex, and sleep and safety needs like the need for security and freedom from danger. Growth needs are more psychological and are associated with realizing an individual‟s full potential and needing to „self-actualize‟. These needs are achieved more through intellectual and creative behaviors. This hierarchy of needs is used in the tourism industry in several ways. - First, tourism experts also consider these different levels to be intrinsic factors that could drive a person to travel. The level of needs would provide tourism businesses a guide in understanding their travel market and thus advertise their products effectively. - Second, tourism businesses could come up with different facilities and services with features that attempt to address certain needs of tourists. Tourism businesses also uses them as their competitive edge over others. The hierarchy of needs guides them in producing specific service that they know would be important to their clients. ***Risk Management in the Tourism and Hospitality Industry*** What is Risk? - According to UNWTO, is a situation that exposes someone or something to danger or loss. - Risk can be a physical safety matter, a risk of property loss or a financial business risk. - From the moment a person engages himself in the business of tourism and hospitality, whether a sole proprietorship, partnership, or corporation, the risk immediately attaches. - The business dictionary has defined risk as the probability of threat of damage, injury, liability, or any other adverse occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action. From the point of view of economics, risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. What is Hazard? - Hazard pertains to any source of potential damage, harm or adverse health effects on something or someone, while risk is the chance or probability that a person will be harmed or experience an adverse health effect if exposed to a hazard. - According to workSMARK, a hazard is something that can cause harm while risk is a chance that any hazard will cause harm to somebody. What is Risk Management? Risk Management, (as defined in ISO3100), is the identification, evaluation, and prioritization of risks. It is followed by coordinated and economical application of resources to minimize, monitor, and control the probability of unfortunate events to achieve the desired output. Sources of Risk *Risk can come from different sources like the following:* 1. 2. Uncertainty in financial markets; 3. Threats from project failures (at any phase in design, development, production, or sustainment life-cycles); 4. Legal liabilities; 5. Credit risk; 6. Accidents; 7. Natural causes and disasters; 8. Deliberate attack from an adversary; or 9. Events of uncertain or unpredictable root cause Legal Liabilities *Risk Management in tourism and hospitality industry is a two-way process:* 1. The safety of the guests and employees, which includes avoidance to emotional and physical harm is a moral and ethical responsibility of the operators; 2. Protection to business operations which includes protection against damage to property persons and property and future litigation. Credit Risk Defined Credit is another source of risk that could impact the tourism and hospitality industries. Credit Risk is the potential that a bank borrower or counter party will fail to meet its obligation following agreed terms. (As defined in Principles for the Management of Credit Risk). The goal of credit risk management is to maximize a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters. Risks Vs Accidents Risks and accidents are sometimes being used interchangeably, but they are different, though they complement each other. Accidents are reactive while risks are preventive. Accident management is necessary to reduce costs pertinent to the accident, to wit: damage to property, costs of rental, maximization of subrogation recovery. ***[Common Injuries in the Hospitality Industry:]*** 1. Slip-and-fall injuries; 2. Musculoskeletal injuries; 3. Skin reactions. 4. Respiratory illnesses 5. Security-related accidents 6. Food Poisoning 7. Elevator and escalator accidents ***[Accidents in the Tourism Industry:]*** 1. Accidents due to fortuitous events or acts of God *Examples: Earthquake, volcanic eruption flood, landslides, erosion, fire, storm and typhoon* 2. Transportation accidents in air, water and land 3. Accidents due to Activities *Examples: Pool accident, animal bites or attack, drowning, electrocution, etc.* Natural Disasters ***[The natural disasters maybe categorized into three broad groups:]*** 1. Caused by movements of the Earth 2. Disasters related to weather 3. Floods, mudslides, landslides, and famine **Deliberate Attacts from An Adversary** - Terrorism has become one of the more and more active and threatening calamities that affect the international community. - It is the use of violence or threat of violence in the pursuit of political, religious, ideological or social objectives. It can be committed by governments, non-state actors, or undercover personnel serving on the behalf of their respective governments. It reaches more than the immediate target victims and is also directed at targets consisting of a larger spectrum of society. **Events of Uncertain or unpredictable Root-cause** ***[Two Types of Events in Risk Management:]*** 1. Negative events or risks 2. Positive events opportunities ***[Strategies to manage threats:]*** 1. Avoid the threat; 2. Reduction of the adverse effect or probability of the threat; 3. Transfer of all part of the threat to another party; 4. Retaining some or all part of the potential or actual consequences of a particular threat, and the opposites for opportunities. ***[How to implement the strategies to manage uncertainties:]*** 1. Threat identification or characterization; 2. Assessment of the vulnerability of critical assets to specific threats; 3. Risk determination; 4. Identification of the techniques to reduce those risks; 5. Prioritization of the measures ***[Risk management principles: ]*** 1. Risk management should create a value wherein the resources expended to mitigate risk should be less than the consequences of inaction; 2. It should be an integral part of the organizational processes; 3. The risk management should become part of the decision-making process; 4. It should explicitly address uncertainty and assumptions; 5. It should be placed in a systematic and structured process; 6. The best available information should be the bases of risk management; 7. Risk management should be tailorable; 8. It should take human factors into account; 9. It should be transparent and inclusive; 10. The dynamism, interactivity, and responsiveness to change must be evident on the risk management; 11. Risk Management should be capable of continual improvement and enhancement 12. There is a need for continuous Identification of potential risks 1. Internal; and 2. External ***[The following factors could be considered as determinants in choosing a method of identifying risks:]*** 1. 2. Culture 3. Industry practice 4. Compliance Risk Assessment Defined Risk assessment is the stage wherein the severity of the impact of the said risk is being weighed to make the most intelligent decisions for the full implementation of the risk management plan. Risk assessment is the determination of a quantitative or qualitative estimate of risk related to a clear situation and recognized threat (also called as hazard). **Tourism** is a complex industry that involves a broad range of businesses, organizations and government agencies that work together at different levels to deliver a complete tourism package. Each party in the chain contributes to the overall holiday experience of the customer - from initial destination marketing through to the ground level experience. ***[Guidelines to manage the risks confronting the tourism sector:]*** 1. Risk identification 2. Determination or creation of a management plan to address risks that could affect the tourism business 3. Collaboration with the stakeholders 4. Provide training for the staff 5. Test the plan 6. Provide transparent and honest crisis communication 7. The revival of the business after a crisis 8. Reposition of the business after a crisis **Risk identification ** - is** **the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objective. - It includes documenting and communicating the concern. - As a way of risk mitigation, if not avoidance, the manager should have made an identification of the eminent risks  based on his or her inventory of potential hazards attaching the tourism-related activities. ***[The risk identification could concern any of the following:]***  ***1.Natural hazard*** is an extreme event that occurs naturally and causes harm to humans -- or to other things that we care about, though usually focus is on humans. A natural hazard escalates into a natural disaster when an extreme event caused harm in significant amounts and overwhelms the capability of people to cope and respond.  ***2.Civil or political hazards*** are those that are being confronted by investors, corporations, and governments brought about by the political decisions may be considered as [political hazard. Civil hazard], on the other hand, are hazards caused by circumstances in the society that could vastly affect the society as a whole. Examples: Trade Barriers, Taxes, Legislation, Administration and Political Instability [Sex tourism] is phenomenon whereby an individual or group of individuals who would travel to another place would engage in sexual activity with prostitutes. [Westernization] is a process whereby societies come under or adopt Western culture in areas such as industry, technology, law, politics, economics, lifestyle, diet, clothing, language, alphabet, religion, philosophy, and values. ***3.Technological hazards*** include industrial pollution, nuclear radiation, toxic wastes, dam failures, transport, industrial or technological accidents. It is an effect of the globalization of production, an increase of industrialization, and a certain level of risk of accidents connected with production, processes, transportation, and waste management. ***4.Biological hazards*** pertain to biological substances that stance a danger to the health of the living organism, chiefly humans. Also known as [biohazards]. ***[Two essential risk concepts:]*** 1. ***Inherent Risk*** -- refers to the exposure arising from a specific risk before an action is to be made by a risk manager. 2. ***Residual Risk*** -- is the exposure arising from a specific risk after risk manager has made any, and in case such action has proven useful. ***[The following issues must be addressed well in the risk identification:]*** 1. The cause of the event 2. Areas of impact 3. Enablers 4. Events 5. Potential consequences ### ### Determination And Creating of Risk Management Plan Risk management plan is necessary for the conduct of tourism activities to lessen the possibility of the risk being accomplished or at least to lessen the impact of the risk at hand. ***[Basic classifications of a risk management plan:]*** 1. **Preventive strategy** is designed to lessen the possibility of risk impact before the risk becomes realized. 2. **Contingency** is designed to address the issue of risk at the time of the happening of the event. ***[strategies of risk management plan:]*** ***Risk avoidance*** is the elimination of hazards, activities and exposures that can negatively affect an organization\'s assets. Whereas risk management aims to control the damages and financial consequences of threatening events, [risk avoidance ]seeks to avoid compromising events entirely. ***Risk Reduction* **refers to reducing the risk level through minimizing either the likelihood or the consequence of a specific task through the implementation of precautionary measures, risk controls or treatments. [*Considerations of Risk Reduction:*\ ]1. Observance of the safety standards\ 2.Use of safety devices\ 3.Earthquake-proof building/proper waste management system\ 4.Qualification requirements ***Risk Transfer -*** [r]isks can also be partially or completely transferred to a third party. The burden is shifted from one party to another, from one individual to another, from an individual to an insurance company, or from insurers to reinsurers. *[Risk transfer may be accomplished through any of the following:]* 1. *Outsourcing* - A process which commonly transfers a variety of risks to a partner. This usually involves a contract between the management and the provider. May include penalties in case the project will not push through. 2. *Derivatives* - A financial instrument whose value is derived from the value of another asset, which is known as the underlying. When the price of the underlying changes , the value of the derivative also changes. A derivative is not a product but a contract that derives its value from changes in the price of the underlying. Underlying asset e.g. stocks, bonds, commodities, currencies, interest rates, market indexes. 3. *Contracts* - According to Boggs (2017), contractual risk transfer is a non-insurance risk transfer mechanism that accomplishes the goals of risk financing and risk control. 4. *Insurance* - Investopedia (n.d.) has defined insurance as a contract being represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. ***Risk retention*** is a company\'s decision to take responsibility for a particular risk it faces, as opposed to transferring the risk over to an insurance company. Collaboration with the stakeholders ***[Classification of tourism stakeholders:]*** 1. Internal: has a direct relationship with the company (employees, owners, inventors) 2. External: those who do not have a direct relationships but could be affected by the action of the management. (local community, local government, tourist and guest) ### Provide Training for the Staff Risk and safety management in the tourism sector is a continuous process that focuses on ensuring safety of tourists/clients and staff by efficiently managing operational risks through leadership commitment, clearly defined responsibilities, roles, processes and procedures A **[safety drill]** is a concept or practice of preparing people for an emergency. It is done through simulation of the actual happening of uncertainty that may affect the business. **[First aid]** is the assistance given to any person suffering a sudden illness or injury, with care provided to preserve life, prevent the condition from worsening, or to promote recovery. It includes initial intervention in a serious condition prior to professional medical help being available, such as performing CPR while awaiting an ambulance, as well as the complete treatment of minor conditions, such as applying a plaster to a cut. Test the Plan for risk management Risk management process does not stop with the identification of a solution to a problem and training the staff for the execution of the plan should the event comes. The risk management plan must be tested to determine its strengths and weaknesses to make sure that we could handle the risks and reduce losses. a. Planning (risk identification, impact analysis, mitigation) b. Designing c. Execution ### Hospitality industry ### Guest Behavior ### Guest may be considered as the lifeblood of the hotel industry. Without happy and contented guests who have been patronizing the services of the hotel, survival of the industry would be up to the lowest extent. There are, however, some instances where the guests are becoming the threat to the profitability of the hotel. ### Staffing ### Staffing is another risk that hospitality industry usually faces with as the quality services that clientele desire may only be given to them at any given situation, place, and time. ### *[Best Practices For Hotel Service Recovery]* - ### Deal with guest's complaints the very moment they arise; - ### Ensure the complaints can reach the right person; - ### Build a full picture on guest preferences. - ### Keep tabs on recovery service costs; - ### In-depth analysis of the service recovery efficiency ***[Liability of Hotel in Personal Injury Claim]*** ***[Duties of Hotel to the Guests]*** - Inspect the hotel grounds and maintain the property in a reasonably safe condition - Maintain adequate lightning, a duty to keep steps dry and unobstructed, and a duty to repair hotel defects. - Control insect infestation. - Maintain proper security to avoid theft and assault on guests. - Exercise reasonable care in hiring staff. - Train Hotel pool staff to prevent injuries to guests. - Maintain stairs and elevators. - Maintain lock on hotel rooms. - There is also a duty to reasonably construct hotel steps or warn guest of unusual staircase locations. ### Branding ### Branding is essential to the decision of prospective guests to avail services of a hotel. ### *[Buying Decisions]* - ### Functional Risk: Product performance does not fulfill customer expectations - ### Physical Risk: Product affections of the physical well-being of the user or others - ### Financial Risk: Poor price/Quality ratio - ### Social Risk: Others do not accept the product. - ### Psychological Risk: Product affections of the user's mental well-being. - ### Time Risk: Opportunity cost of alternative seeking due to product failure ### ###