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Chapter 3 Strategies For Quality Service in Tourism and Hospitality

The document provides an overview of strategies for quality service in tourism and hospitality. It discusses the importance of strategic planning and identifies Porter's three generic strategies of cost leadership, differentiation, and focus. It also outlines the importance of internal and external assessments to understand strengths, weaknesses, opportunities, and threats. Key factors that may impact the industry in the future are identified, including demographics, technology, economics, and competitors. Maintaining relationships with relevant stakeholder groups like suppliers, capital providers, and labor is also emphasized.

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Roy Cabarles
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551 views11 pages

Chapter 3 Strategies For Quality Service in Tourism and Hospitality

The document provides an overview of strategies for quality service in tourism and hospitality. It discusses the importance of strategic planning and identifies Porter's three generic strategies of cost leadership, differentiation, and focus. It also outlines the importance of internal and external assessments to understand strengths, weaknesses, opportunities, and threats. Key factors that may impact the industry in the future are identified, including demographics, technology, economics, and competitors. Maintaining relationships with relevant stakeholder groups like suppliers, capital providers, and labor is also emphasized.

Uploaded by

Roy Cabarles
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Strategies for Quality Service in

Tourism and Hospitality


“Trust: The reputation of a thousand
years may be undermined by the
conduct of one hour.”
- Japanese Proverb

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Learning Objectives:
At the end of this chapter, the students should be able to:

Understand the concept of strategy;


Realize the importance of designing the guest experience;
Identify key factors that must be examined to ensure best
service.

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Hospitality, Tourism, and Strategies

Strategies
 are plans that are design to help an organization reach a specific goal.
 are used while developing the guest experience.

Strategic Planning
 The process of identifying a company’s internal and external characteristics
which will contribute to the attainment of its goal pointing to a specific
direction while formulating different policies on how best to achieve
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it.
Porter’s Generic Strategies
Porter’s generic strategies can help a decision maker to make the best
choice for his/her company.

Three Strategies identified by Michael Porter in achieving competitive


edge in his book Competitive Edge:

1. Cost Leadership Strategy focuses on increasing profits by reducing


operational costs and charging lower prices.
Michael Porter
Example:

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2. Differentiation Strategy focuses on making a company’s service
being attractive and unique in comparison to those of its competitors.

3. Focus Strategy concentrates on developing services for niche market.

2 types of Focus Strategy

o Cost focus – refers to cost leadership in a narrow or


focused market.
Example: Study hubs in the university

o Differentiation focus – refers to differentiation in a


narrow or focused market.
Example: A coffee shop that adapted the drive- 5
through business model
Internal and External
Assessments

INTERNAL ANALYSIS EXTERNAL ANALYSIS


 Where an organization takes stock of  It is concerned on how a company
the resources and assets that it positions itself in the market concerning
possesses. its rivals in its particular space.
 Highlightsan organization’s strengths  They focused on what a company is good
and weaknesses in relation to its at relative to its rivals in that industry.
competencies, resources, and
 It also determines a company’s position in
competitive advantages.
the external environment and showcases
its opportunities and threats.

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Strategizing for the future
PESTEL analysis Ford (2011) stated that the things
- Political, Economic, Social, hospitality and tourism organizations
Technological, Environmental must plan to cope with changes in the
future include demographics, technology,
and legal. social, expectations, economic changes,
- A tools that helps to identify a competition in the industry, stakeholders,
company’s opportunities and and other factors.
threats.

1. Demographics
Changes in the workforce and the market of the hospitality and tourism
sector will continue to affect the operations of the industry, which is relevant
not only to the service providers, but also to it’s market.

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Park and Yoon (2009) made an article on the
segmenting the motivation of Korean tourists
that noted the motivation in tourism is largely
determined by a number of factors, including
demographics.

2. Economic and natural forces


Change the nature of the industry and how it is managed by the key stakeholders
of this fast growing sector.
In 2018, the Philippine Statistics Authority reported that the Tourism Direct Gross
Value Added (TDGVA) of the Philippines jumped to a great amount of 12.7%. This
translates to 2.2 trillion, higher by 14.3% as compared to 2017’s record
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1.9 trillion.
3. Competitors
The presence of competitor brings out major changes in the industry.
Movements between competitors shift from time to time and create different
relationships between which also affect other relationship that will be made in the
future.
Moore (1996) mentioned that businesses are a big part of the ecosystem and
businesses need to co-evolve in order to thrive and survive.
Bengtsson (1999) explained and identified these relationships existing in
competition. She mentioned that in analyzing the relationships between
competitors, four types can be distinguished.
 Coexistence
 Cooperation
 Competition
 Co-opetition 9
Other Stakeholders and Relevant Groups
1. Resource Suppliers
Resource supplier is an important requirement in service operations.
The availability of the resource supplier can affect the smooth operations
of the company. That is why in tourism and hospitality industry, they
usually identify a selection of existing backup suppliers, which somehow
subjects companies to increased costs due to price gouging.
2. Capital Suppliers
3. Labor supply

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That’s all
THANK YOU!!!

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