Innovation In Hospitality Industry Essay Writer

Managing Operations In Tourism & Hospitality Industry

Marriott International Inc. operated and franchised 3,800 hotels properties, 19 hotel brands in 2012. Marriott furthermore presented 1,850 appointed corporate and business real estate rental items. In the 85+ years since company's beginning, Marriott has established a culture and a custom of innovation, service & leadership. The hotels having portfolio and timeshares are consisting of such brands:

Full-Service Lodging Extended-Stay Lodging
' Marriott Hotels & Resorts ' Residence Inn by Marriott
' Marriott Conference Centers ' Towne Place Suites by Marriott
' JW Marriott Hotels & Resorts ' Marriott Executive-Stay
' The Ritz-Carlton ' Marriott Executive Apartments
' Renaissance Hotels & Resorts Timeshare
' Bulgari Hotels & Resorts ' Marriott Vacation Club International
Select-Service Lodging ' The Ritz-Carlton Club
' Courtyard by Marriott ' Grand Residences by Marriott
' Fairfield Inn by Marriott ' Horizons by Marriott Vacation Club
' Spring Hill Suites by Marriott

The Marriott's key profitable processes usually are to produce as well as create lodgings features. The Marriot's operations accounts for selecting, training as well as supervising professionals which employees required running the actual facilities. Marriott offers centralized reservation services as well as nation's advertising and marketing, marketing and advertising as well as promotional solutions, and also numerous information technology as well as information control solutions.

Mission Statement:
Marriott's vision in the corporation shall be the earth's foremost provider of hospitality products and services. It can be grounded in his or her extreme target taking good care of the guest, extensive functional understanding, the growth of a highly skilled and different workforce, and supplying the top profile of accommodations manufacturers in the industry with his or her leadership. Marriott continues to take pleasure in business preference, constant development and productivity etc.
Location Layout:
Marriott International, Inc., has more than 2,800 operating units in the states and also 65 different nations and also areas. It employs 128,000 individuals.
Marriott international provides their own powerful projecting strategy to estimate the actual improve and loss of occupancy amount, staffs was required to handle the actual peak time, volume of meals needed for example.

1. Explain the development of operations and the ways in which effective operations management can benefit tourism and hospitality businesses. LO1
1.1 Outline the origins of operations management from manufacturing to the service sector?
Operations Management in Manufacturing and Service Industries

The hospitality and tourism business has observed tremendous change in manufacturing and service area during the last decade. Hospitality and tourism business these days is definitely an essential section of the human being life in the United Kingdom or internationally.
According to PowerSki, almost all manufacturers attempt to carry out exactly the same fundamental functionality: to remodel resources into finished products. To do this particular function within today's hospitality business, manufacturers must continuously make an effort to enhance operational effectiveness.
' Production Planning.
' Production control.
' Quality control.
When the productions process is within its place, the interest from the operations manager changes towards the day to day activities associated with materials administration that encompasses the next actions: buying, stock manage, as well as work scheduling.
Through e-purchasing (or e-procurement), businesses deliver or may preserve its services or goods to customers/buyers. Amount of the invoice will be realized via credit card or debit card etc.
Inventory Control

An inventory control applied to monitor the quantity of an item or services left behind. Inventory control meant supervision of the supply and storage & accessibility of items in order to insure sufficient supply except excessive oversupply.
Just-in-Time Production
The manufacturer arranges with regard to materials to realize creation facilities simply with just in time to the manufacturing procedure. Materials and components productions requires just in time to ensure its delivery in time. The manufacturer needs to invest right ways to produce the required quality, in precisely the given period of time.

Material Requirements Planning (MRP)
An alternate system, called material requirements planning (MRP), depends on an automated project both to ascertain the amount of materials required for generation and to focus when they ought to be requested or made. The MRP concentrates on material planning, however there's a more complex framework called manufacturing resource planning (MRP II)'that goes past material wanting to help screen assets in every aspect of the organization.

Graphical Tools: PERT and Gantt Charts
Here we'll concentrate on two of the most well-known Gantt and PERT charts.

Gantt Charts
A Gantt Charts lets us know that by day six, all frill and clothes have been made. As operations chief, you'll need to give careful consideration to the advancement of the stuffing and sewing operations to guarantee that completed items are prepared for shipment by their booked date.

PERT Charts
PERT charts are handy when the processing procedure is honestly basic and the exercises aren't interrelated. For more intricate timetables, operations supervisors may utilize PERT outline.
Figure: PERT Chart for Vermont Teddy Bear

The above PERT Chart demonstrates how the exercises included in making a solitary bear are connected. It shows that the creation procedure starts at the cutting station.
The Technology of Goods Production: There are lots of technologies for goods productions these are as follows:

Computer-Aided Design
That is when Montgomery turned to machine innovation for help and started utilizing a computer-aided design (CAD) programming bundle to plan the motor as well as the board itself and a considerable lot of its parts.

Computer-Aided Manufacturing
A computer-aided manufacturing (CAM) programming framework decides the steps required to handle the part and teaches the machines that do the work.

Computer-Integrated Manufacturing
Computer-integrated manufacturing (CIM) frameworks have taken the mix of workstation helped plan and assembling to a more elevated amount of delivery, stock control and are actually altering the generation process.

Flexible Manufacturing Systems

In flexible manufacturing system (FMS), the workstation controlled gear can undoubtedly be adjusted to transform a mixed bag of merchandise. A FMS makes it conceivable to change supplies setups only by reprogramming PC controlled machines.

Operations Management in Manufacturing and Service Industries
Like Powerski, each organisation whether it prepares merchandise or gives services sees Job 11.1 as outfitting clients with quality items. Production Planning, Production Control, Quality Control also must needed to consider.

Figure 11.1 the Transformation Process

1.2 Describe how manufacturing operations management differs from that in a services environment.
Manufacturing Operations versus Service Operations
Manufacturing is different from the service in many ways. Such as manufacturing provides tangible products, service provision provides intangible services. The core difference between products and services is the tangibility. Furthermore, manufacturing is low customer contact. Conversely, service provision is high customer contact.
Furthermore, the responsibility of the manageress in manufacturing industry is totally different from the manageress in service industry. Services operations to manufacturing operations get differences but parallels. Differences between the manufacturing and service operations are based on the following features:
Table 1 provides an overview of the different manufacturing and service operations.
Differences between manufacturing and service operations
Characteristic Manufacturing Service
Output Manufacturing outputs are Tangible and consumable Service outputs are intangible and continuous
Consumer contact Customer contact is low High level customer contact needed
Nature of work Manufacturing companies are more of a Capital intensive Service organizations are labor intensive
Uniformity of output High Low
Difficulty of quality assurance Low High
Measurement of performance Easy Difficult
Inventory needed Manufacture products needed to store in inventory Service is intangible and inventory is not needed
Structure Flexibility Manufacture structure is rigid and obeys standing methodology Service maintains control flexibility with its atmosphere
Maintenance and repair Manufacturing needs regular maintenance and repair work Service do not need to maintain and repair at all

1.3 Explain how an operation has become a managerial function in the tourism and hospitality industry.
Operations management in tourism and hospitality businesses includes things like numerous pursuits, many of which usually are center to the experience of guests and visitors impression. Inside traveling, vacation and food, the word operations administration will be certainly not broadly utilized, while using the personal preference getting intended for useful administration accountabilities within the name, considering that many companies within the market run numerous solution and support operations. Operation Managers of Marriot holds a major responsibility of entertaining their customers (e.g. tourists and guests) by arranging different logistical support on behalf of the hotel.
Types of operations characteristics with traveling, vacation and food include things like:
'Food creation and presentation depends on administration of the mind of the Chef;
'The dispatch purpose of a great airline;
'The check-in service from a great airport;
'Fast food and dinner creation and support;
'Shuttle bus travels operation for city round and site seeing for historical places intended for site visitors;
'Organization involving customer transport measures coming from airport in order to overnight accommodation facilities.
'Guest party and queuing for the entrance with a theme park your car or perhaps other major destination, and
'Handling buyer issues with a major visitor location and a pool of readymade buyers to be handled.
Generate discount services for the major visitor

LO.2 Analyse the ways in which operations management can be used to create customer value and competitive advantage.
add 'mickel potter' theory & 'blue ocean strategy' in this LO2 question
According to Michael Porter's theory of Five Forces Model the competition of Marriot International can break down to 5 initial stages-
1. Existing Competitive rivalry
The particular Farmington Marriott's most significant competitors are classified as the Hilton Inn with Town center Hartford along with the Increase Tree Inn with the Bradley Airport terminal, which usually actually both Hilton Brand names. Worldwide these Marriott competitors tend to be Accor, Hilton Hotel Corporation, along with the Intercontinental Hotel Group and many more.

2. Threat of New Market entrants
Every year more than 1200 hospitality and tourism service providers are adding to list where they have cheaper price and more flexibility to serve the customers. For those new competitors international hotel chains like Marriott International are losing their market share simultaneously.

3. Bargaining power of Buyer
In this region of process optimization, economic downturn, changing preferences, customers are more concerned of cheaper price and more customized tourism service. Here hotel chains have to go beyond their standard packages and attempted to reduce price.

4. Bargaining power of suppliers
Suppliers such as logistical providers, subsidiaries, tourism agencies are continuously increasing their service charge and demanding high as well as maintaining their syndicate for maintaining their price level.

5. Threat of Substitute Product
With an effect of economic downturn peoples are more concern of passing their entertainment to other new sources, their choice and preference has been changed. On the other side adopting with the technological changes of tourism industry has been a major subject of survival for hotel chains like Marriott International.

Competitive advantage: Competitive advantages will be precisely what make it possible for a company organization in order to flourish. It is the blend of aspects available style which often makes it possible for a company to better satisfy the wants in their natural environment, gaining financial rents at the same time.

Elements of Competitive Advantage 'Uniqueness, Strategic Intent/Vision Focus, Innovation, Continual Invention, Democratic Guidelines, Strategic Supervision being a self-improving learning method, and Dynamic Functionality etc.
Competitive advantage can be a position a strong uses up against their competitors. Competitive advantage is more than additional firm through coping with their competitors. Managing its operations a firm can have other competitive advantage.

Ecological environment: Enhanced ecological, health and fitness, along with safety functionality can help plant-level production endeavors along with boost profits along with marketplace discuss. To gain these positive results, your company should determine operations techniques. Marriott's sustainability approach can handle hospitality company progress along with gets to outside of your doors of our accommodations to help our planet's natural sources.
Expense Control: Whenever a company patterns, generates along with promotes a product or service more efficiently than competitors such company features carried out an expense control management approach.
Difference Tactic: Difference is usually targeted at your vast marketplace that involves your generation of the product or service as well as solutions that's identified all through their market seeing that one of a kind.
Mobility: Mobility is usually the opportunity to adjust to each central along with external enterprise changes. This may also apply to particular operations to help "be flexible": to help adjust to along with use the business's ever-changing needs.
Products: Retain safety stocks for concerned products and services. Safety share can be an expression helpful to summarize a quantity associated with share that's preserved beneath your routine share to help stream against share outs.
After sales Services: After sales Support following the purchase of the service or product is very essential.

In consideration of the competitive business Marriott always provides customers value what concerned services or products offerings to its customers and it ensures advantage respectively.

2.1 Explain system design and process design and relate to tourism and hospitality
System design and process design how relates to tourism & hospitality industry:
System design is the process of defining Input, user interface, design of database, processing, output, control system, security, and documentation to satisfy specific requirements. It also considers food safety process, transportation, accommodation etc.
Design of a system includes an abstract representation of the data flows, inputs and outputs of the system. This is often showed with modeling; the following requirements about the system are decided.
1. Input
2. Output
3. Storage
4. Processing
5. System control, backup or recovery.

Process design is the part of system design and is termed as design and style regarding techniques regarding wanted physical and/or substance change regarding resources. Practice design and style can be middle to help substance engineering, in addition to it could be regarded as this summit of the area, joining together every one of the field's ingredients. In process design style could be the design and style regarding completely new services or it could be this change or expansion regarding existing services. The design starts at the conceptual degree in addition to in the long run stops by means of manufacturing in addition to construction options.
Operation department of Marriot has developed many process flows diagram within each of their operational system and for amending and remanding those systems process flows can be added and deducted by the consent of management.

2.2 Evaluate the 'Process' and 'Product' innovation as it applies to tourism and hospitality
A process or a product evaluation examines the exact improvement of each service heads of Marriot's entities and along with execution of unique technology and development initiative. That ensures no matter if anyone struck quantifiable finds along with executed techniques seeing that planned.
Innovation command will involve synthesizing unique command designs throughout businesses for Marriotconcentrated on national border of UK to impact staff to provide ideas, items, products and services along with answers.
Analyzing new product innovations: 'Innovation will be the kindle which enables great firms great Innovation will be the kindle which enables Good firm's great... Companies that will understand how to innovate never necessarily throw money directly into R&D. Instead these people expand a new style of management and business conduct that is at ease with brand new ideas, modify, risk, as well as failure. '
There are 3 ways of innovation of tourism industry
1. Systems review:Both formal and informal systems of tourism industry.
Understanding mode of innovation and identify them with interviewing with stakeholders and staff members.
2. Systems design: It is another method of innovation system of Marriot what integrates and interfaces method and strategy as well as effective delivery of innovation project.
3. Systems implementation: Understanding better systems by market involved information and getting assistances would be considerable about integrating total process, program and platform.
2.3 Difference the role of process of logistics and supply chain in the context of tourism and hospitality
By default the logistical part of Marriot is along with Facilities and service department. Logistics may be the process for arranging, preventing, applying, the particular powerful and useful flow connected with items and solutions from the point connected with source concise connected with intake.
Some sort of supply chain that may optimize transportation throughout several travelling settings could deliver both environment and economic advantages. Although hospitality business members master fulfilling guests, parts such as logistics and offer cycle management have got usually definitely not recently been primary expertise or even points.
The role for logistics and supply chain with traveler companies' management and regular functions continues to be broadly accepted and examined as constructive.
As of mid-June 2013, Marriott had reached 60% of its goal with implementing ecofriendly green supply chain.
'With over 30 participating suppliers representing 20 product categories ranging from bath fixtures to seating, carpets to casegoods, fabrics to mattresses, lighting to mirrors, and more, we are very pleased with the support we're seeing from of our suppliers. Sustainability is of high importance to Marriott and to our guests and our communities, and we can make a significant impact by furnishing and supplying hotels in ways that are better for the guest and better for the environment' said Dave Lippert, Marriott's vice president of architecture & construction procurement.

2.4 Examine the factors involved in capacity planning in the context of tourism and hospitality
Broadly there are eight major steps of capacity planning of tourism. Those are study preparation, determination of goal and objective, surveys, analysis and synthesis, plan formulation, recommendation, monitoring and follow up. Capacity describes some sort of potential providing services or goods on the specific moment phase. Capacity planning will involve long-term and also short term concerns. Long-term concerns depend on the complete higher level of capability; short-term concerns depend on modifications with capability requirements because of seasons, random, and also abnormal fluctuations sought after.
Tourism carrying capacity is usually a today antiquated way of coping with website visitors with shielded regions and also countrywide areas which in turn developed out from the grounds of variety, an environment and also creatures managing. Within most of these grounds, managers attempted to look for the greatest inhabitants of a distinct kind that is helped by way of an environment on the lengthy period of time.

Be able to apply the concept of systems management to the monitoring and evaluation of operations management in the context of tourism and hospitality.LO 3
3.1 Explain the importance of setting standards of operational performance in the tourism and hospitality business environment.

The term of setting standards of operations performance in the tourism and hospitality management business environment so vital and it plays very significant role in the hospitality business arena. Monitoring as well as assessing any business' performance enables an assessment from the organization's good results throughout achieving strategic priorities and supplies the basis intended for upcoming decision-making as well as functionality enhancement. Some sort of functionality checking process to get a enterprise need to be dependent on any plainly defined checking method or program in which articulates functionality indications, timing from the reviews, facts variety methods, accountabilities plus the process intended for examining final results as well as putting into action measures.
3.2 Compare and contrast methods for gaining feedback, making comparisons and taking corrective activity in an operational context.

Implementing a Strategic plan taking corrective activitysuccessfully in Tourism & Hospitality Industry
Strategic planning is necessary to be able to rewarding enterprise businessboost, although businesses normally realize directly about 63% of these enterprise strategies's prospective fiscal benefit as a result of blemishes and also breakdowns inside proper organizing and also execution. From a customer survey it's found, those who are analised financial performance, Quality - proper business plan, strategic operational planning over the 5 years plan using its actual performance based on several other factors they are more advanced in the progress of operational context.
What is effective strategic plan implementation?Implementation effective strategic plan can be assessed simply by precisely how very well the company complies with the economic projections lay out inside the strategic approach. Some basic principles with strategic approach rendering as follows:
' When you have any strong strategic approach in place, these actions are crucial to profitable rendering.
' Prevent typical rendering errors.
' Get in touch with stakeholders.
' Measure progress in the strategic plan.
' Keep an eye on the strategic approach.

a) Avoid common strategic plan implementation mistakes
Strategic planning requires challenges. So, avoid common strategic plan implementation mistakes whenever necessary, try to apply up-to-date operational strategies. A lot of the commonest arranged prepare rendering mistakes tend to be defined down below.
b) Reach out to stakeholders
Don't simply reach out to your staff, reach out to stakeholders too. Write about the ideal strategy using additional stakeholders, like buyers, consumers and also alliance lovers.
c) Measure progress in the strategic plan
Determine strategy plan for implementation is advancing via crucial indicators like income, quantity of services to new customers. Analyse these : Number of new customers, Complete new product sales, Percentage of margin, Return on assets (ROA), Return on equity (ROE), ROI (Return of investment), Market share, Employee morale, Customer care etc.
d) Monitor the strategic plan
You should keep monitoring of strategic plans such as Follow Regular improvements,Concern fundamental assumptions, Develop a champion for every approach as well as actions, Keep determined, Carryout short-term approach critiques,Increase skills, Focus on gross sales, Fix up ideal strategic milestones and Reward achievement.

3.3 Explain the roles and responsibilities of employees in monitoring and controlling operational systems in a tourism and hospitality setting.
Roles and responsibilities of Recruiters, staff, and also professionals just about all have particular assignments and also responsibilities pertaining to safe practices.
Recruitersensure this safe practice of your staff.Correct almost any work environment circumstances which might be harmful for the safe practices of your staff.Provide your current staff together with usage of this Staff Pay out etc.

Stafftakes realistic health care to safeguard your current safe practices and this involving different folks exactly that may possibly have what we complete as well as don't complete. Report damages and also other occurrences for your examiner.Infractions with the Regulation as well as different appropriate demands.Cooperate along with your joint occupational safe practices panel (or employee safe practices representative) and so on.

Supervisors Ensure this safe practice involving staff within your current direct supervision.Know the prerequisites with the Regulation in which affect this work that you are supervising.Ensure in which staff within your current direct supervision usually are informed with regards to just about all risks in the workplace and they conform to this Regulation etc.

The front office managers organize bookings as well as space responsibilities, in addition to prepare as well as one on one the actual hotel's entry table employees. The front office managers might modify prices posted on a buyer's invoice.
Managers help work the actual day-to-day businesses of the hotel. With large accommodations, they are often accountable for things to do such as staff, sales, business office administration, advertising as well as sales, buying, stability, upkeep, as well as pool, day spa, or even fun establishments.
Food Service Managers
Food services managers are responsible for dining places as well as other areas assigned to him and serve with dinners and also drink to ensure to customers. The other responsibilities includes such as kitchen, banquet, food etc. The food services professionals make sure that customer usually are enthusiastic about his or her dining knowledge. Generally S/he main order management, Plan Menus, Estimate Inventory and Service Needs, Manage Employees, Ensure the Dining Room Meets Customer Expectations, Work Environment, Other Responsibilities etc.
The chief cook is in charge of all cooking food routines, as well as keeping good quality specifications with regard to food services.

3.4 Analyze how effective systems of management and control can lead to competitive advantage in the tourism and hospitality industry.
Information Technologies and Tourism Demand in connection with effective systems of management and control
WTO argues that will "the key to success lies in the particular fast recognition of consumer requires and also throughout accomplishing potential clients using detailed, customized and also up-to-date information".
Market wisdom nowadays suggests that hospitality organizations need to take hold of technological know-how to be able to contend versus regular competition, in addition to entrants which create the firms with the latest technology. In this changing setting, new types of submission have to be created to lead this demand. Some sort of proper facts management purpose ought to assist in the organization assignment of the company by means of was able facts, was able operations, and in addition to was able Technology (IT).Technological innovation provides the ideal affect this marketing in addition to submission of vacation although leaves relatively un-tampered with this human-intensive aspect of guest-host interaction in addition to supplier-consumer romantic relationships. Facts technological know-how placed on this tourist system increases this efficiency in addition to excellent of solutions presented in addition to brings about new permutations of tourist services.
With the advancement of online web, marketers have the technologies in order to customize products- services and connect right having scaled-down concentrate on marketplaces. The online world is now based on computer software which serving to digital sales channel as well as an electronic customer service environment instantly through effectively and efficiently.
Be able to demonstrate knowledge of the concepts of quality, quality improvement and quality systems, and to apply these to industry examples. LO4
4.1 Define quality and explain its importance to the tourism and hospitality industries.
Concepts of quality:A quality management system (QMS) is a collection of business processes focused on achieving your quality policy and quality objectives ' i.e. what your customer wants and needs. It is expressed as the organizational structure, policies, procedures, processes and resources needed to implement quality management.
Quality & Customer expectation:
The customer should expect you'll end up being treated together with courtesy as well as kindness because among the Marriott's center a valuation is always to emphasize the client is actually correct. Consumers should be expecting issues being forms in a timely manner because Marriott management utilizes a hands-on managing model by means of consistently walking on looking for enhancements as well as inaccuracy. Consumers should be expecting almost all Marriott twigs to use because Flagship model of high quality collection. Consumers should expect taking part in completely equipped fitness gyms, reward stores, private pools, concierge quantities, company centres, as well as high-speed wifi Internet connections.
Measurement of Quality:
At the Marriott quality can be measured by the buyers exactly who continue to be on the Marriott. Weekly bands usually are tested out of your Marriott's computer data source and are also used to determine before customer's degree of pleasure. This charge along with strategies utilized since guidance intended for advancements.

Improving Quality System in the Hospitality Industry:
Quality system is very must important for tourism and hospitality industry business. First of concerned authorities requires concentrating in finding the lacking of quality services within its environment then must be correct it with the application of proper quality systems.

4.1 Define quality and explain its importance to the tourism and hospitality industries.
Definition of quality: The standard of something because tested versus other activities of a comparable form; the amount involving superiority involving some thing: a marked improvement throughout item top quality [count noun]: buyers consume a superior standard of living.
Quality in tourism and hospitality are very important

Quality in the hospitality and tourism sector consists of constant distribution connected with goods in addition to visitor companies based on their expectations. Supplying high quality service is among the key problems the particular food administrators is going to be facing inside using years the way it is surely an crucial issue with regard to success inside appearing, keenly competitive, international food promotes. Services quality and customer satisfaction must be ensure throughout hospitality &tourism businessesin order to establishment of goodwill. At Marriott International, Inc. in the United Kingdom recognized that will, whenever choosing a lodge, clean along with safe and sound customer areas along with an effective check-in along with check-out usually are the key things to consider for their target customers. In addition they recognized that will a majority of their clients usually are busy people which spend the night time.
Today's competitive tourism and hospitality industry if concerned hotels or business venues do not provide adequate quality services to its valued customers as a result they may lose customers in future endeavors.

4.2 Analyze how quality methodologies are applied to the tourism and hospitality industry.
Quality Methodology:

Overall Strategy: It's appraise that the recent travel and tourism top quality standards circumstances through primary negotiations on prices with authorities representatives as well as other critical stakeholders from the nationwide travel and tourism sector. The six modules discussed as under.
Module 1: Write-up on Existing Considerations intended for Tourism-Related Lodging
' Evaluate present conditions intended for different establishments with solutions in addition to review these types of as outlined by regional, local in addition to world-wide guidelines.
' Discover breaks in addition to restrictions
' Make proper recommendations on modifying and/or improving the current conditions
Module 2: Place in addition to Formulation connected with Brand-new Considerations
' Discover is actually facilities/services/sectors conditions must be proven
' Produce conditions consistent with national/regional needs in addition to competitive surroundings
' Prepare primary conditions drafts
' Create conditions drafts in order to sector stakeholders
' Prepare last conditions in addition to service the particular acceptance practice

Module 3: Implementation in addition to Analysis connected with Considerations
' Identify review duties in addition to treatments
' Approach assessment/inspection excursions
' Accompany nationwide assessors/inspector goes to upon internet site
' Guide review studies in addition to outcome explanations
Module 4: Volume Creating connected with National Considerations Assessors/Inspectors
' Review assessor/inspector capabilities, knowledge in addition to expertise ranges
' Discover breaks in addition to restrictions
' Make proper tips for best option ability constructing techniques (on-site, off-site)
' Create 'UNWTO assessor certification' immediately after profitable presence
' Round up and still provide review supporting equipment
' Acquire 'Train the particular Trainer' program
Module 5: Verbal exchanges connected with Considerations
' Considerations introduction mass media discussion
' Industry workshops intended for critical travel and leisure stakeholders
' Reports in order to substantial educational facilities, hotel in addition to getting somebody to cook educational facilities
Module 6: Considerations in addition to Good quality Command (Mystery Guest)
' Familiarization connected with conditions
' Establish curbing equipment in addition to techniques (check-lists, certification, reports, use of technology, and others.)
' Consent in addition to establish command treatments (reservation, expense coverage)
' Approach moment lines in addition to delivery

4.3 Identify what 'quality' and 'service quality' mean to customers.
Improve the overall quality regarding product or service in the tourism industry as such tourism-related accommodation, restaurants, guides, tour providers, and also other tourism-related service providers; boost the numbers of requirement across the country, regionally and internationally; you need to showcase competiveness; along with, adequate supply is important.
Taking appropriate care of client with providing all sorts of modern and required facilities will be treated as quality. Guests Services in Hospitality Business explores subtleties regarding excellent guest support having stable & verified aspects across the industry.
According to Fitzsimons, 2005-Service quality can be defined as 'comparing the perception of service received by a Customer with the expectations of service desired'.

The concept of service quality in the Hospitality and Tourism Industry is so vital. What exactly service excellent ways to distinct consumers may vary considerably coming from individual to individual and coming from nation in order to nation. It can be on the other hand an essential fact of company that's a great deal more details connected with congruence as compared to range. Customers include the extremely lifeblood of your service market company as well as all businesses. It is therefore essential that supervision once and for all take out every in the obstacles that can be found in excellent service supply. ISO9001 OR ISO 9004:2009, OR 9001:2008,OR ISO 9001: 2000 qualifications should be execute to ensure better service quality standard.

4.4 Apply continuous improvement, 'total quality management' and 'quality circles' to tourism and hospitality management.
Continuous Improvement
Continuous improvement efforts such as Six Sigma and Lean, can be effectively applied in a shared services environment if the organization chooses an approach that matches within its unique culture. Marriott Business Services (MBS), the global shared services center for Marriott International, took several months to assess its needs for development and identified a specific methodology that would follow the resulting continuous improvement effort to meet Mariott's goal for internal and external client satisfaction, process speed, accuracy, people development and sustainability. From deciding on a strategy to implementing a pilot project, MBS's Lean Sigmateam learned some important lessons. Such as gain leadership support, implement right tool, methodological implementation, understanding timing, choose middle management, learning and adjusting, building strong image etc.

Total Quality Management: TQM or Total Quality Managementindicates a management approach to long term achievement through consumer satisfaction. In a TQM attempt, all employees of an organizationcontribute in improving products, services, processes, and the culture where they serve.

Quality Circles: Quality is encouraged to consider how they can improve the service given to the customer. This approach (like others) needs everyone's support and the provision of resources by which ideas generated can be tried and tested.Quality circles should regard how you can continuousimproves, providing assistance to satisfy your client with desired quality. This method requires everyone's assistance to see the positive results in the hospitality industry.

Be able to apply operations management methods to a range of organizations working within the tourism and hospitality industry. LO 5
Choosing operations management method in the hospitality discipline suggests growing to be involved with on the list of place's most significant companies. This intended for job are extensive within extent, along with graduates are try really hard to hire on a yearly basis simply by quite a few hospitality companies. Supervision positions can be found along with resorts, hotels, restaurants, contract foods support companies, meeting bureaus, non-public night clubs, take a trip along with travel companies, hotels, theme areas, along with businesses. Hospitality and tourism industry should apply the elements of operations management methods in concentration within Food Operations Supervision, Diner along with Foodstuff Supervision, Gatherings along with Affair Supervision, Worldwide Travel and leisure Supervision, along with Club along with Resort Supervision.

5.1 Explain the importance of the external environment in the context of operations management
The External Environment
All outside aspects which could impact a company comprise your additional environment. The actual additional environment is split directly into two parts:
Directly interactive: This environment has a speedy as well as firsthand impression when this company. A brand new player going into industry is an example.
Directly interactive causes incorporate managers, customers, vendors, opposition, workers, as well as staff unions. Supervision includes a responsibility for you to each one of these organizations. Here are several illustrations:
Owners count on professionals to look at around their particular interests and provide any returning about purchases.
Shopper's requirement satisfaction while using products and services they purchase as well as make use of.
Suppliers demand conscious connection, transaction, plus a sturdy doing the job relationship to supply needed methods.
Competitor's current difficulties when they strive pertaining to customers in the marketplace having related offerings.
Staff members as well as staff unions provide both visitors to carry out your careers and also the counsel of employees considerations for you to managing.
Theexternal environment has an optional and more far off impact upon the hospitality & tourism industry.

5.2 Compare and contrast the operational activities of a range of organizations in the tourism and hospitality industry.

The hospitality industry in the UK is a broad and varied industry ranging from single-person organisations to worldwide corporations. People do a total of more than 80 different jobs in the industry.

Fourteen different industries:The hospitality industry is not just hotels and restaurants. There are 12 other different sectors of the industry:

Sectors of the hospitality industry: Hospitality services, Pubs, bars and nightclubs, Gambling, Contract catering, Membership clubs, Hostels, Holiday parks, Self Catering, Visitor attractions, Tourist services, Travel Services, Events.
In case of Marriott comparing with Hilton the operational differences are given below:
Subject Marriott Hilton
Customer feedback and reviews Nice location, dining good, SPA awesome Clean, descent size and nothing fancy
Business credibility and trustworthiness Des Moines, IA- A+
Riverside, CA- A+
Bethesda, MD- C+
Oklahoma, OK - A+
A+ Rating by the BBB.
Website Popularity & Google Ranking The Marriott International has a three month global traffic rank of 1,356. Alexa gives the website a global rank of 1,669 and US rank of 617
Social Media Presence Over 114,000 likes and during the month of May 2,904 people liked the page with 8,412 people talking about it. 415,844 likes.
Pricing & Packages High Moderate

5.3 Evaluate the existing and potential impacts of the virtual marketplace on the pattern of tourism and hospitality operational activities.

Marriot has progressively adopted IT platform that has turned into a prominent medium for virtual market place. The market has identified virtual potential are of tourism provided by Marriot advertising and momentum requirements on the full acknowledgment of such potential. Through examination of the focal points of Internet as a promoting apparatus and the attributes of tourism business.The primary Internet requisitions in tourism promoting and investigated the key elements that were attributable to the current low level of travel deals at the Internet. Travel and tourism has a perfect chance to promote on virtual marketplace. This is on the grounds that tourism is a data escalated industry and the Internet is the best and proficient means in data trade around the world. The Net can significantly encourage the advancement and dissemination of visitor and possibly empower tourism goals and ventures to contend on a level playing field.
IT Tools & Software Used:Marriott International employs essentially the most advanced technological innovation, IT tools and software to meet up with its rigid calls regarding group meetings along with business travel customers.
CRM Application:
Marriott executed Siebel Programs Inc.'s customer-relationship- administration package, and has place the particular software inside the arms associated with a couple of 2,000 salesmen along with events-booking staffers. When a party can be enthusiastic about the particular NyMarriott Marquis, nevertheless the residence is sold out there, the software helps salesmen cross-sell some other Marriott attributes. Marriott in addition relies on International's Net marketplace revenue along with getting somebody to use computer software for you to web page link the particular supply with their lodges in a sole databases allowing regarding cross-selling along with centralized accounts administration associated with small business groupings along with conferences. Marriott hotel sequence has upgraded for you to middle a reservation, profit along with residence administration, along with CRM programs. The Marriott's has powerful tool like Marriott's Automated Reservation System for Hotel Accommodations (MARSHA) for reservation network and demand management.


' Article: Marriott advances green supply chain (July 23, 2013), Hotel group uses MindClick index to monitor sustainable sourcing, Accessed in ( 194746/marriott-advances-green-supply-chain/)

' Case Study: The Hackett Group (June 23, 2008), Fss Process Perspective, Marriott Business Service, How Implementing A Customized Lean Sigma Methodology Drives Continuous Improvement. Accessed in ( )

' KNOJI- Consumer Knowledge , Marriott Hotels vs. Hilton: Side-by-Side Comparison , Accessed in April 15, 2014 ( )
' Ramakrishna Kongalla, Assistant Professor at IITTM, Gwalior (May 22, 2013), Tourism Planning by. Accessed in (

' Dr Dimitrios Buhalis, Senior Lecturer in Tourism, University of Westminster, England. Tourism Management. Strategic use of information technologies in the tourism industry. (Page 1 -12) Accessed in (
' Cynthia S. Deale, (February 5th, 2013).The journal of Sustainable Education, Sustainability Education: Focusing on Hospitality, Tourism, and Travel. Accessed in the paragraph of Sustainability Education in Hospitality and Tourism & Sustainability Education in the Lodging Sector from ( )

' Peter Robinson, London, UK. Operations Management in the Travel Industry. , Accessed in book on April 14, 2014 from link
(,+UK&source=bl&ots=T5yRl-RTGO&sig=7706SYZJH7gcvvySn9UhcRkC1ks&hl=en&sa=X&ei=TJ1SU-j2GoSFrAf5zICwDQ&redir_esc=y#v=onepage&q=operation%20management%20journals%20for%20hospitality%20and%20tourism%20industry%2C%20UK&f=false )

' Karl W. Wober (December 21, 2002 ), Benchmarking in Tourism and Hospitality. The Selection of benchmarking partners. CABI Publishing, Wallingford OXON OX108DE, UK. (Page 23 -30)
( )

' United Nations definition, (14 March 2014). Introductory Tourism. Accessed from (

' Journal of Hospitality Management and Tourism, (September 2013 - Vol. 4 Num. 3). Open Access, Academic Journals, ( . Accessed in )

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Demonstrate critical and evaluative interpretation and application of theoretical IT/ e-business concepts to a current tourism and hospitality market situation in order to build sustainable competitive advantage.

Accompanying the technological revolution of the 1990s there are many new opportunities and challenges for the tourism and hospitality industries. Since tourism, global industry information is its life-blood and technology has become fundamental to the ability of the industry to operate effectively and competitively. Poon (1993) suggests that the whole system of information technologies is being rapidly diffused throughout the tourism and hospitality industry and no player will escape information technologies impacts.

The report below gives an insight into the importance of application of information technologies and the use of Internet in tourism and hospitality industries. Two given strategic frameworks provide the analysis of the Internet and its impact on these sectors. This paper also aims to show how technological innovations and information systems can be beneficial for the hotel companies, by using the example of Hilton Hotels Group.

Market wisdom today suggests that hospitality companies must embrace technology to compete against traditional competitors, as well as entrants that build their businesses with the latest technology. In this changing environment, new models of distribution must be designed to lead the charge. A strategic information management function should facilitate the business mission of its enterprise through managed information, managed processes, and managed Information Technology (IT).

Broadly, current applications of computer technology in the tourism and hospitality industries can be grouped into three main areas, operational, guest services and management information. The overall functionality of these applications is similar across a range of different hospitality organisations though the technology used to support them may vary. Large, city-centre hotels, for instance, tend to use minicomputers for their property management system (PMS) work. Microcomputers are employed elsewhere.

The diffusion of the system of information technologies in tourism and hospitality will increase the efficiency, quality and flexibility with which travel services are supplied. It has already led to the generation of new services, such as online brochures and interactive videotext. Technology has the greatest impact on the marketing and distribution of travel but leaves relatively untouched the human-intensive areas of guest-host relations and supplier-consumer relationships. Information technologies applied to the tourism system will increase the efficiency and quality of services provided and leads to new combinations of tourism services. All this could not be achieved without changing the manifest human high touch content of travel. It is the systematic use of the system of information technologies by all tourism suppliers, together with its profound impact on the travel industry, which creates the foundation for a new tourism best practice and a total system of wealth creation.

Information and communication technology can be used not only for operational purposes, but also for tactical and strategic management. This empowers tourism and hospitality enterprises to communicate directly and more efficiently with prospective customers and suppliers as well as to achieve competitive advantage.

One of the most established ways to analyze and develop complex systems (such as e-business) is to organize them in a meaningful structure. The four Ps model provided in Appendix A fully addresses the Internet product in relation to the shifting consumer expectations.

With the advent of the Internet, marketers have access to the technology to customize products and communicate directly with smaller target markets. The Internet is now firmly established as a marketing tool. It serves as an integral part of the marketing mix, serving as a digital distribution channel as well as an electronic storefront.

Consumers in the Internet medium are more than just passive recipients in the marketing process. The Internet is an interactive medium as opposed to traditional marketing which usually allows only one-way communication from marketer to consumer


Government policies can have a dramatic effect on the Internet and its potential development, by introducing new policies and limitations. The privacy and security issues are also very significant. Therefore, Internet providers have to consider ethical matters and the usage of personal data stored within the networks. For the full commercial potential of electronic commerce and Internet to be exploited by the tourism and hospitality industry and its consumers, several issues have to be considered, which include an increase of security of transmissions, copyright issues, reduction of user confusion and dissatisfaction, establishment of pricing structures for distribution of information and reservations and enhancement of the standardisation of information and reservation procedures. Credibility and accountability of the information needs to be secured and equal access for smaller and larger partners should be developed.

Tourism organizations deploying IT and Internet for competitive advantage can also face legal risks due to possible violation of anti-trust laws and violation of privacy. Policies and procedures should be created to promote the understanding of potential legal risks. This understanding will encourage organizations to obtain help from legal experts to design controls to subdue such risks.

Other political changes, for instance increasing unemployment, competition laws and planning policies, would only have an impact on tourism and hospitality organizations if they are using technological advances and Internet distribution channels.

The Internet is not severely sensitive to the economic cycles. However, it is considered that the tourism or hotel sales from the Internet will be much affected by economic changes in those countries, from which the customers are booking or reserving the product. These include changes in economic growth, interest rates, inflation or currency fluctuations that can eliminate tourism organisation’s cost advantage and can have an adverse affect on the margins.

Demographic changes and changes in customers’ attitudes towards new technology and Internet, in particular, will have a direct impact on Internet and tourism and hospitality industries respectfully. Nowadays customers are becoming more skilled and advanced in the use of technology. The social system dimension must include the larger social and political processes through which the interests of the different social groups interact with one another and with the technology.

The computerised networks and electronic distribution systems developed in the 1970s led to dramatic structural changes within the tourism and hospitality industry. According to Klein and Quelch (1996) A CRS is essentially a database that enables a tourism organisation to manage its inventory and improve accessibility to information within and between its partners. Airlines pioneered the CRS technology in the 1980s, by expanding geographical coverage and integrating horizontally and vertically to embrace the entire range of intermediaries and principals. Individual product suppliers became aware that systems integration, and the subsequent creation of a “shop window” that allowed products to be displayed and purchased anywhere in the world, would be a crucial determining factor in the competitiveness and profitability of operations. As a result, the vast, new all-encompassing GDSs matured from their original development as airline CRSs. GDSs are one of the major drivers of information technologies in tourism and hospitality industries, as well as being the backbone of these industries. GDSs are the single most important facilitator of the globalisation of ITs.

Developments in GDSs were complemented by the introduction and expansion in the mid-1990s of the Internet. (Peters, 1997) This development facilitated an unprecedented opportunity for distribution of multimedia information and interactivity between principals and consumers. This is especially so given the Internet’s interlinking structure which enables the provision and packaging of themed information, products and services. The information on the Internet, however, is chaotic and loosely structured, mainly due to its immaturity and the lack of any type of standardisation.

It is anticipated that eventually GDSs will take advantage of the openness of the World Wide Web (WWW) and develop suitable interfaces for consumers and the industry. Sabre has already launched Travelocity, an electronic travel agency, while other GDSs have announced similar actions or cooperations with travel providers on the Internet. These include Worldspan with Expedia and Amadeus with the Internet Travel Network.

IT and the Internet have transformed distribution of the tourism product to form an electronic market-place where access to information is instantly achievable. Principals and consumers continue to experience unprecedented interactivity. The dramatic ongoing development of the Internet has resulted in the re-engineering of the entire production and distribution process for tourism products. As a consequence of this technological explosion, the packaging of tourism is becoming much more individualistic, leading inevitably to a certain degree of channel disintermediation, a process that will offer new opportunities and threats to all tourism partners.


New entrants tend to bring new capacity, the desire to gain market share and substantial resources. The seriousness of the threat of entry depends on the barriers present and on the reaction from the existing providers. The Internet as a distribution source has relatively high entry barriers, constraining all new comers.

Lashley and Rowson (2005) suggest that recent IT developments, offer new opportunities for tour operators. For instance, several tour operators distribute electronic brochures and booking forms through the Internet directly to consumers. This approach provides a number of important benefits to tour operators. This includes concentration on niche markets by offering customised packages and an ability for tour operators to update brochures regularly. It also significantly reduces the costs of incentives, bonuses and educational trips for travel agencies.

Government’s policies for reducing buyers’ power and pricing wars can limit entry to this distribution sector with such controls as license requirements and limits on access to technical tools.

In respect of tourism providers, the Internet provides an infrastructure for the global distribution and inexpensive delivery of tourism-related multimedia information. It also empowers the consumer though the provision of tailor-made products which meet their individual needs, so bridging the gap between the consumer and destination/supply in a flexible and interactive way. The Internet allows organizations to skip over parts of the value chain. A more successful strategy would be to enter into joint ventures or expand a supplier’s website to offer competitors’ products.

The Internet as a channel of distribution has become one of the most successful channels used by consumers to research travel options, compare prices and make reservations for airline tickets, hotel rooms and car rental. Therefore, the provision of online travel services is the single most successful business-to-consumer (B2C) segment on the Internet.

Collins, Buhalis and Peters (2003) state that the overall percentage of hotel rooms booked online grows tremendously each year and will be increased by 20 per cent in 2005. Moreover, the Internet is also having a profound effect on the internal and external operating procedures within the hospitality industry (Cheng and Piccoli, 2002)

The Internet helps to access new customers on a global basis and enables to streamline operating procedures. Integrating daily operations such as sales, marketing and distribution as well as aggregating demand to drive down prices on the procurement side are some of the major benefits of the Internet. The majority of large tourism and hotel organizations are currently present in the global distribution systems (GDSs). GDSs serve more than 50,000 travel agents world-wide (Collins, Buhalis and Peters, 2003). The Internet is one of the mains distribution channels, which enable tourism and hospitality companies to overcome their challenge of being globally represented.

Travel agencies are the main substitute to the Internet sales, when it comes to buying hotel bedrooms or tourism packages. Direct advertising and other sources of media also serve as a promotional or informative mean, which can be used instead of the Internet. With the Internet it is possible to gain permission to discuss the products, as opposed to interruption marketing, such as television commercials.

The competitive environment of Internet and its impact on the tourism and hospitality industries is widely recognized as being complex, dynamic, and highly segmented. Increasingly hotel chains are competing directly with one another in the same locations. This is a notable change for an industry reliant on specific locations to limit the threat of competition. All major hotel chains are currently entering the Internet market of sales and communications. As organizations are dependent on their environments for resources, they will attempt to manage their dependency by developing and maintaining strategies. Hotel groups are being forced to follow other sectors by implementing marketing strategies, often based on product differentiation, growth in new markets, high value for money, or emerging brands. Such strategies are formulated and implemented within the context of environmental uncertainty and require an understanding of industry structure and environmental change.

Whichever major city you find yourself in; you have a big chance to come across a Hilton Hotel. Hilton International Group is a leading global hotel brand and the Company, with an expanding portfolio of hotels, mainly Hilton Brand (own the rights to the trademark), Scandic, Conrad and Vernon Hotels. The company operates 380 hotels worldwide and is represented in 66 countries. Its 80,000 strong workforce looks after an average of 8 million guests every year. (Annual Report, 2003).

The ability of computers to store, process, manipulate and distribute information has greatly improved the efficiency of Hilton hotels. By releasing staff time from the ordinary paper-pushing functions within the hotel, computers can greatly enhance the opportunities for staff utilisation in the quality of service that hotels offer their guests can be greatly improved.

Hilton International use computers in their core-information processing centres of marketing and distribution, front-office, back-office and food and beverage control. Information technologies are diffusing in eight key areas of hotel operations:

  1. marketing, distribution, reservations and sales;
  2. telecommunications;
  3. guest accounting;
  4. room management;
  5. back office;
  6. food and beverage control;
  7. energy management; and
  8. safety and security.

Product distribution is a critically important function of Hilton International. Information technologies, such as computerised reservations systems and video brochures, assist hotels in marketing and distributing their bed-nights. For Hilton, the employment of information technologies to link together their front-office, back-office and off and beverage departments may be necessary for the efficient and cost-effective delivery of their services. However, it will not be sufficient to guarantee the sale of hotel bed-nights. Without links to international marketing and distribution networks, hotel bed-nights cannot be sold.

Reservations are a key to the sale of hotel bed-nights. Reservation systems, depending on the software and sophistication, contain information and generate various reports on rooms availability, cancellations, etc. In addition, the database can generate forecasts on expected arrivals, departures and rooms sold. Information contained in, and generated by, hotel reservation systems is an invaluable source of marketing information and can generate mailing lists, client profiles and preferences. It can also monitor hotel performance through the development and processing of guest questionnaires. Reservation systems also allow hotels to carry out travel-agency and tour-operator analyses in order to determine which agencies and operators consistently generate business for the hotels.
There are two principal areas in which information technologies are helping hotels to improve their communications in their internal inter-departmental communications and in their external links with agents, suppliers, reservation systems and data networks. The internal inter-departmental links of the hotel are facilitated by computers and communications technologies, which serve to integrate the front-office, back office and food-beverage operations. This is facilitated through computer-to-computer communications. Cooper and et al. (1999) believe that the external hotel communication links are necessary between hotel and head office, between hotels and their national environment, such as stock market information.

Communications technologies used by Hilton International include digital telephone systems, teleconferencing, satellite broadcasting, videotext and audiovisual information tools, image communication and various communication networks for reservations and communications.

Telephone systems used at Hilton Hotels have been substantially improved to incorporate features such as call accounting systems. Automatic call-accounting systems now help to transform their telephone calls into important profit centres of the hotels. As marketing technique, for instance, hotels can offer long-distance telephone calls at discount rates to their guests and still find it profitable. (Cooper and et al., 1999; Lockwood and Medlik, 2001)

Room-management systems can give updated information on room occupancy and status and they assist in scheduling housekeeper duties for maximum efficiency. Rooming lists, arrivals, stay-overs, extended stays, departures and room preferences can all be handled by room-management systems.

Electronic data interchange (EDI) is an open and essentially cooperative technological infrastructure. While it is possible to gain short-term competitive advantage from embracing EDI ahead of competing organisations, it is now generally accepted that there is no scope within the inter-organisational system for the kinds of barriers to competition suggested by the work of Porter and other. (Porter, 1980).

Large hotel chains, as Hilton Hotels Group, have considerably more ability to control the way in which they implement EDI. Cooper (1989) points that EDI’s ability to support inter-organisational processes forming part of a multi-organisational value chain as part of business process redesign. Many companies tend to view EDI merely as a way of transmitting formatted data across organisational boundaries.

The integration of computers and communication technologies allows hotels to control their internal operations and external operations from a single integrated management system. (Kandampully and Duddy, 1999; Allen and Fjermestad, 2001) This comprehensive system of information management can become a very powerful toll for wealth creation for the hotel industry. With a comprehensive system in place all levels of management are supposed to be involved in it and to depend on it to inform most decision-making.

It is beneficial for a hotel chain to integrate appropriate new IT into their entire operation. It is generally accepted that IT and Internet should be treated as strategic tools than tactical issues, and as concerns of general management. Senior management of the hotel chain must drive the process which determines the extent and direction of business re-engineering and take responsibility for the implementation of the plan.

Additionally, technology cannot be considered as acting alone. It is a product of society; it is also part of a larger environment in which other forces are at work. We rely on information itself, not necessarily its facilitating mechanisms, to assist decision making and guide actions. It is important to be knowledge base, so that to find a use of information.

Internet provides unprecedented and affordable opportunities for the global representation and marketing for both large and small tourism suppliers and for hotel operators as Hilton Hotels Group.



A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. In an e-commerce marketing strategy it is important to remember that information is now its own viable product. The Internet can serve as a platform for new product innovations. Companies can use the direct access to consumers to collect information that will help them better develop products to meet the consumers’ needs. For international hotel chains this can provide adaptations and customizations for local markets or create niche products. Companies can also leverage their reach to consumers to sell advertising during transactions.

Collected Internet information would provide hotels with the ability to spot entirely new markets. By developing an online customer base and ensure that its products are offered on sites that have all the products consumers want. Information has become its own product on the Internet. The Internet serves as a platform for new product innovations.

For most companies the place aspects of the marketing mix involve marketing channels. Marketing channels can be defined as interdependent organizations involved in the process of making a product or service available for use or consumption. Due to the size of its marketplace, the Internet will have the most profound effect on place in the marketing mix. E-commerce puts the purchase decision anywhere a connection to the Internet exists.

It is critical to quickly develop a large customer base in e-commerce. Bersnstein and Awe (1999) claim that customer loyalty must be first gained in the context dimension. The first mover advantage is very important because Internet standards could make the competitive advantages of a particular context difficult to sustain. By their very nature, standards will allow organizations to duplicate the design and features of competitors’ Web sites.

Price is the only element of the marketing mix to generate revenues. Internet pricing decisions will be just as important as they traditionally have been. The Internet will lead to increased price competition and the standardization of prices. Klein and Quelch (1996) point out two counteracting effects of the Internet on price. First, a supplier can use the technology to discriminate pricing between consumers, for example, in different countries. However, if they do not take precautions the consumers may be able to quickly find out about the price discrimination and object to it.

Organizations will have to employ new pricing models when selling over the Internet. The ability of technology to offer services at a cheaper cost would make it difficult to determine the appropriate price for a consumer. Voicemail, for example, is solely an information-based service, which provides the consumers with a replacement for the traditional answering machine. Any hotel chains should be prepared to respond to increased price pressures on the Internet and high level of competition.

Promotion encompasses all the various ways an organization undertakes to communicate its products’ merits and to persuade target customers to buy from them. Advertising, research, sales, promotions, coupon distribution, and customer support can all be done on the Internet. The Internet provides a low cost way to hospitality companies to build a direct link with the consumer. Incumbents can use their traditional sources of consumer information (e.g. product testing, focus groups) in addition to the information that is easily collected from e-commerce sites (e.g. sales information, customer demographics).

Driver (1999) claims that the use of the Internet by airlines to communicate information is becoming prevalent. This relates both to hard information, in the form of schedules and the availability of fare information, and to the softer areas of more general company information. Web presence is itself significant but the design of the site even more important. From a consumer perspective it must be relevant and useful, with easy navigation features so that the time spent on a visit is fruitful. Moreover, the site should invite revisiting for there is a critical difference in the initial motivation to visit and to contact again.

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