Challenges for Tourism Business Activities

Challengesfor tourism business

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Challenges for tourism business activities

319 GED

ID number:4680398

Expanding a business to an international context is a challenge that the company has to take in order to increase the value of the product for its clients and staff. In addition, expansion leads to brand recognition which is something that a company strongly wants. By growing the business, the product will reach new markets in different regions which will make enterprise popular. However, it is also needed to measure the risks and rewards that the company is going to take (Moutinho 2000).

The business should evaluate before expanding if the company is feasible to go into an international context. In order to know whether is feasible, the company should appraise the strengths and weaknesses that the organization itself can have. Strengths such as the competitive advantage or resources that the company have but its competitors do not. Weaknesses as the vulnerable points or what the company is doing worse than its competitors, asking itself what the company can do better to improve. Furthermore, the external environment, outside the company should be also evaluated to know the opportunities and threats that the business can face in a future. Opportunities talking about the trends that the business own. And threats to see who the competitors are in an international framework (Parkinson 2006).

When the company is planning to make this kind of change, cash flow projections should be made to see if the company will be able to cope with it. Moreover, the business should try to increase its sales in the same market that is working in the moment, to know exactly what the clients want by getting some feedback from them. Also, in the stage of the year where there is fewer sales, the business should try to make offers in the price to increase the number of transactions made. Besides, the owner should empower its employees by giving them the authority to act against clients’ complaints and also the responsibility to make some improvements (Reid and Bojanic 2001).

By expanding the business, value and quality will be added to the brand. To make this thing possible, it is needed to hire skilled employees, or train them to let them know what the culture of the company is. They must be disposed to participate, they should treat in excellent way to the clients because good is not always enough to attract customers (Goetsch and David 2006).

After raising the sales in the market the company was working with, a new product or service should be introduced and the company must wait for some responses to see the satisfaction of the consumers. Hilton Worldwide is introducing new products to satisfy customers such as a new “iphone” application that allows the client to manage bookings and some more useful information (Mclean 2012). Besides, Hilton Worldwide has introduced in Conrad Hotels a new amenities gamma to personalise the treatment with each customer and to give the client what he wants in different mood (Mclean, 2012).

In order to move to a new country to sell the product or service, the business should take a market research to know where start expanding. It is more likely to be successful in a country with more or less the same type of customers that the company has, also start the expansion in a country not really far away with a common language and culture. Furthermore the business should look at a country with low taxes to start the company and political and economical constancy. Then the company should try to create the business as the one that was successful first, with some changes, adapting to the new country. In addition, a good way to expand is to have a franchise. A Franchise is a business strategy with a common target that gives a licence that allows the company to work with other person’s business. This is a good way to distribute the product that the company is selling (Gappa 2012). Hilton Worldwide is an example of franchise agreements. In the past few months the company has signed this agreement with Panchsil Hotels Pvt. Ltd. because they wanted to open a new business in India by the name of the brand from Hilton Worldwide, DoubleTree (Hospitality net 2013).

After the franchise, it is possible to join forces with other type of business such as the distributors or other companies to make the business bigger and located in different areas. Hilton Worldwide has joined with Booked.net, an emerging company that is a website distributor of hotels due to the potential that Hilton Worldwide has seen on this company (Booked.net 2012).

International tourism business is one of the main incomes for tourism companies. That is reason why they create some strategies to attract clients from other countries. The ways to become popular is by advertising, by offers and promotions, by communicating between the company and the client and so in. The business need to evaluate some aspects if they want to attract international tourists. They should know that there is an image of the country already made. There are functional and psychological aspects that the clients will consider in order to go to the country and specially the business. The image of the destinations should be built through customer’s needs. For all these reasons the company has to create a business plan to know how to get to international tourists. Nowadays is easier to know more about a country or a specific business due to the technology and the internet which make the work easier for the marketing manager. It is really important to keep the client satisfied. If a client is satisfied, he will become loyal and will tell other people good feedback about the company which will help the business to get an increase of its revenue (Tony Young 2013). Contrasting two different tourism businesses in the accommodation sector such as Meliá Hoteles and NH Hoteles, it is clear the difference between them. NH Hoteles has a fantastic loyalty program in which the rewards are clearly shown to the clients such as getting the best rates, free cancellation or 24h customer service (NH Hoteles 2013). As well as NH Hoteles, Meliá Hoteles wants to have the same percentage of loyalty, which is the reason why it has recently launched a new fidelity program to build this trust between the client and the enterprise (Edgcumbe 2013)

Some methods used to catch the attention of the international clients are to emphasis the values and other factors in which the company is better than its competitors, in other words, to show