Strategic Management for Tourism, Hospitality and Events

1 Strategic Management for Tourism, Hospitality and Events Strategic Management for Tourism, Hospitality and Events is the must-have text for students approaching this subject. It introduces students to fundamental Strategic Management prin-ciples in a tourism, Hospitality and Events context and brings theory to life by integrating a host of industry-based case studies and examples the new features and topics included in this edition are: Extended coverage to Hospitality and Events to reflect the increasing need and importance of a combined sector approach to strategy. New international tourism, Hospitality and Events case studies from both SMEs and large- scale businesses are integrated throughout to show applications of Strategic Management theory, such as objectives, products and markets and Strategic implementation. Longer combined sector case studies are also included at the end of the book for seminar work.

2 New content on emerging Strategic issues affecting the tourism, Hospitality and Events industries, such as innovation, employment, culture and sustainability. Web support for tutors and students providing explanation and guidelines for instructors on how to use the textbook and case studies, and additional exercises, questions and resources for book is written in an accessible and engaging style and structured logically with useful features throughout to aid students learning and understanding. This book is an essential resource to tourism, Hospitality and Events Evans is Assistant Dean of the School of Social Sciences, Business and Law at Teesside University. He has published widely in tourism and Management and taught strategy for many years on varied programmes including MBA and BA (Hons) Travel and Tourism programmes at Teesside and Northumbria Universities. Strategic 116/12/2014 09:50 Nigel Evans textbook has long been essential reading for students on Strategic Management in Tourism courses.

3 This new edition is very welcome and extending the coverage to Hospitality and Events and the inclusion of diverse international case studies and an extensive glossary is timely and will be well received by students and course tutors. The book should also be of interest to practi-tioners in tourism, Hospitality and Events . Dr Philip Long, Associate Dean, Head of Tourism Academic Group, School of Tourism, Bournemouth University, UK Nigel Evans has provided great cases and updated perspectives on the nature of the closely entwined tourism, Hospitality and Events sectors and their internationalized dimension. The style of the book is attractive and interesting, using lots of graphics and illustrations as well as many examples and cases to keep students not only engaged but also firmly in touch with the realities and implications of Strategic Management . Professor Ray Pine, Dean, Faculty of Management and Hospitality , Technological & Higher Education Institute of Hong KongA range of further resources for this book are available on the Companion Website: 216/12/2014 09:50 Strategic Management for Tourism, Hospitality and Events Second edition Nigel Evans Strategic 316/12/2014 09:50 First edition published 2003 Second edition 2015by Routledge2 Park Square, Milton Park, Abingdon, Oxon OX14 4 RNand by Routledge711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business 2015 Nigel EvansThe right of Nigel Evans to be identified as the author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act rights reserved.

4 No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to Library Cataloguing in Publication DataA catalogue record for this book is available from the British LibraryLibrary of Congress Cataloging in Publication DataLibrary of Congress Cataloging-in-Publication DataEvans, Nigel, 1955- Strategic Management for tourism, Hospitality and Events / Nigel Evans. Second edition. pages cm Includes bibliographical references and index. 1. Tourism Management . 2. Hospitality industry Management . 3. Strategic planning. I. Title. 2014 4 dc23 2014020183 ISBN: 978-0-415-83727-9 (hbk)ISBN: 978-0-415-83724-8 (pbk)ISBN: 978-0-203-77149-5 (ebk)Typeset in Iowan Old Style by Keystroke, Station Road, Codsall, WolverhamptonStrategic 416/12/2014 09:50To my wife Michelle and daughters Lydia, Megan and Laura without whose love and support the book would not have been 516/12/2014 09:50 Strategic 616/12/2014 09:50 This page intentionally left blankContents List of figures ix List of tables xiii Preface xvii Study guide xixPart 1 Strategy and the tourism, Hospitality and Events contexts 11.

5 Strategy and Strategic objectives for tourism, Hospitality and event organizations 122. Introduction to strategy for tourism, Hospitality and Events 41 Part 2 Analysing the internal environment 733. Tourism, Hospitality and event organizations: the operational context: competencies, resources and competitive advantage 764. Tourism, Hospitality and event organizations: the human resources context 1095. Tourism, Hospitality and event organizations: the financial context 1486. Tourism, Hospitality and event organizations: the products and markets context 190 Part 3 Analysing the external environment and SWOT 2397. The external environment for tourism, Hospitality and event organizations: the macro context 2428. The external environment for tourism, Hospitality and event organizations: the micro context 2629. SWOT analysis for tourism, Hospitality and event organizations 304 Strategic 716/12/2014 09:50viiiCONTENTSPart 4 Strategic selection 31710.

6 Competitive strategy and Strategic direction for tourism, Hospitality and event organizations 32211. Strategic methods for tourism, Hospitality and event organizations 37712. Strategic evaluation and selection for tourism, Hospitality and event organizations 433 Part 5 Strategic implementation and strategy in theory and practice 46913. Strategic implementation for tourism, Hospitality and Events 47214. International and global strategies for tourism, Hospitality and Events 52015. Strategy and tourism, Hospitality and event organizations: theory and practice 563 Part 6 Case analysis for tourism, Hospitality and Events 581 Case 1 Strategic alliances in the airline industry 588 Case 2 Tourism Queensland: Strategic positioning and promotion 601 Case 3 Ryanair: evolution of competitive strategy 619 Case 4 Hyatt Hotels: a family firm goes for growth 623 Case 5 Days Inn: franchising Hospitality assets in China 640 Case 6 Reed Exhibitions: the world s leading Events organizer 651 Case 7 Thomas Cook.

7 Turnaround for a historic travel brand 666 Glossary 680 Index 689 Strategic 816/12/2014 09 A schematic of the Strategic process Levels of Strategic decision-making The stakeholder map Seasonality of fares at British Airways The sectors and sub-sectors of tourism, Hospitality and Events Examples of the impacts of tourism on destination areas The Strategic process The links between resources, competencies and core competencies The links between resources, competencies and competitive advantage A simplified schematic of the value adding process The value chain The service profit chain A model of the tourist experience and moments of truth The virtuous circle linking human resources with business success The cultural web A representation of the principles of a balance sheet Sources of finance for four THE companies A simple longitudinal analysis: Air New Zealand annual sales revenue (2008 13) A simple longitudinal analysis: Air New Zealand annual net profits (2008 13) A simple longitudinal analysis: Air New Zealand fuel costs (2008 13) A longitudinal analysis of Air New Zealand return on sales (2008 13) Product positioning The services marketing mix The product life cycle and its implications Strategic implications of online distribution vs.

8 Brochure distribution for THE companies A feasibility study process for a visitor attraction The experience effect The Boston Consulting Group (BCG) Matrix 227 Strategic 916/12/2014 09 The GEC matrix The main features of STEEP analysis Old and new tourism compared Porter s five forces framework Las Vegas hotel occupancy rates Porter s Diamond Analysis of the competitive advantage of nations The resource-based model of strategy Wyndham hotel group presentation Strategic group analysis for hotels in a particular town The logic of SWOT analysis The levels of strategy The three components of business level strategy formulation The generic strategy framework A simplified understanding of cost and differentiation strategies The strategy clock The principles of competitive success in THE The Ansoff matrix The directions and methods of diversification Patterns of related diversification Diagonal diversification in THE

9 Methods of Strategic development Inter-organizational cooperative objectives A categorization of inter-organizational forms of joint development Conceptualization of the collaborative strategy process for international airlines The benefits of consortium membership for independent hotels Methods of growth employed by selected international hotel groups Buy, ally or DIY matrix The Strategic evaluation process Exploring the dynamics of fast-moving markets The linear-rational (prescriptive) Strategic process The height of organizations The centralization decentralization continuum An example of a hybrid divisional structure for a vertically integrated travel company An example of a matrix organizational structure for an international travel company Lewin s model of change The urgency for change A model of types of change Successfully transforming organizations The McKinsey 7-S Framework Strategy as a continuum involving BSC BSC as a part of the continuum of strategy at Amtrak The four perspectives of BSC 510 Strategic 1016/12/2014 09 Canada Tourism Commission s Strategy Map Global local continuum Porter s global strategy framework Configuration and

10 Coordination for international strategy A framework describing drivers for globalization A conceptual framework: drivers of entry success Whittington s four generic strategy types 572 Strategic 1116/12/2014 09:50 Strategic 1216/12/2014 09:50 This page intentionally left Comparison of Strategic operational and tactical decisions A hierarchy of objectives A summary of stakeholder groups Vertically and horizontally integrated structure of Thomas Cook plc A summary of key THE characteristics and their implications for managers Resource analysis: Marriott International Primary activities Secondary activities Classification of internal and external linkages Outsourcing: the airline industry Factors affecting demand and supply of labour in tourism and Hospitality in ten Asia/Pacific countries Comparison of possible intermediaries encountered in purchasing a typical package holiday or a concert ticket Summary of the Strategic implications of Miles and Snow s typology Summary of Hofstede s cultural dimensions A simplified balance sheet for Air New Zealand A simplified profit and loss account for Air New Zealand Summary of the major advantages and disadvantages of share and loan capital Summary of the Strategic significance of different sources of finance Simplified commonly sized P&L accounts for Air New Zealand and Air China (2011) Interjet cash flow forecast (in thousands GBP) Penetration by hotel groups in selected countries (2012)