Category: Tourism

Introduction

The life of a diver highly depends on the diving gear, particularly the procedure of ensuring every part of a scuba gear is in the required conditions before the activity. It is also important to ensure quality of the gear and the people understand the procedure of using the materials during diving. The scuba diver’s life vastly depends on the equipment, and the sport is entirely equipment-dependent.

If the gear fails, even an experienced scuba diver is in deep trouble due to the possible dangers. This essay forms a manual about scuba diving, explanation on the technical procedures of combining some parts of the equipment, importance of the parts, differences and usage. The manual also tries to answer common queries raised concerning this recreational activity.

Scuba Diving Gear

Scuba Masks

It forms the interface between the underworld and the diver. It is therefore extremely important that the equipment be personal and of best fit. Before diving, the mask has to be well garbed in place, levelled, accurately fit and defogged to ensure good visibility underwater.

Unlike other masks such as the industrial mask, scuba masks are quite different since they are customized for the deep diving and underwater atmospheres. Unlike snorkelling masks that are designed for surface water sports, which are made of plastic lenses, materials used on most scuba masks include silicon as well as a tempered glass that is tough enough to overcome fogs or scratches.

The main purpose of the mask is to enhance better vision underwater, but it also acts as a gear that prevents water from the diver’s nostrils. Vision is quite vital underwater since it enables the diver to read a pressure gauge and hand signs or gesture communication.

According to Crockett, various scuba masks are available in the market, including the one, two, or side window masks, wide field vision masks, purge-valve masks, optical lensed masks and silicon coloured masks (34).

All masks in the market are quite different in design to accommodate diverse fits for different facial shapes. It is thus advisable for any buyer to try all the available shapes before deciding a purchase. The mask has various parts as illustrated on the diagram below.

Figure 1: Parts of Scuba Mask

The lenses are made from tempered glass as opposed to plastic to prevent easy scratching or fogging. The skirt of the mask is also made of pliable solid from silicon as opposed to plastic. Silicon is more flexible and softer, thus provides a better seal on the diver’s face any prevent water from getting into the eye.

1. While trying the mask,
2. Hold the mask against the face, with the nose in the pocket provision.
3. Ensure the skirt lies flat on the skin without folds
4. Confirm the skirt presses well on cheeks and temple.
5. Carry out the test without pulling the strap over the head.
6. Ensure the strap does not come between the face and skirt of the mask.
7. Safeguard the hair to ensure it is not trapped in the mask.

A good fitting mask has a skirt that lays halfway between the mouth and bottom of the nose as shown on figure 2 below.

Figure 2: Testing the Best Fit before a Purchase

To check if the mask is of best fit,

• Inhale deeply and let go the mask.

A perfectly fitting mask must stick to the face without air leaks as shown on figure 3 below. Facial hair especially moustache may interfere with the tests but an application of petroleum or silicon jelly can be done to assist in sealing such areas prone to leaks (Crockett, 37).

Figure 3: Inhaling in the Mask to test for Best Fit

If the mask seals perfectly,

• Simulate the mouth position assuming presence of the regulator in the mouth during inhaling process as illustrated in figure 4 below.

This assists in ensuring mask remains in place even in the presence of a regulator in the mouth.

Figure 4: Mouth Simulation during Inhalation to find Best Fit

Being a gear that comes as a complete unit, the scuba mask is easy to have in place and adjust. The musk must first fit comfortably, but it is important that the diver ensure that the musk leaves very little airspace between the lenses and face. In line with Crockett, the closer the mask is to the face, the better the vision and the easier it is to equalize, adjust, prevent and clear fog (37).

While putting the mask on,

1. Pull the strap over the head and
2. Allow the strap to pass through over the ears like sunglasses
3. Avoid placing the skirt above the hairline as illustrated in figure 5, to avoid leaks.

Figure 5: Putting the Mask On

During a fit, a mask that touches the bridge of the nose or the nose is in contact with the bottom of the mask, clearly indicates that water pressure may cause more pain during diving (Crockett, 47). Figure six shows some of the aspects a diver may find necessary to check on before settling for a best fitting mask.

Figure 6: Checking the Tight Spots during Best Fit

Another simple check for a best fitting mask is by ensuring there is a comfortable way to pinch the nose closed by holding through the nose socket as illustrated on figure 7 below.

Figure 7: Pinching Nose through Pocket to check for a Best fit

A good mask must fit closely to the face; it leaves less air space between the face and lenses of the mask, thus providing an easier way of equalizing as shown on figure 7.

Figure 8: The Distance between the Lenses and face

Finding the mask’s area of vision

Upon fitting to the mast to what seems to be the right position,

1. Roll the eyeball through all direction and find out whether all the fields of sight are visible.
2. Ensure that the amount of light into the mask is comfortable.

The type of mask will determine the light regulation for instance the masks with dark silicon sealants provide less lighting, while those with clear seals allow more light into the mask. Checking all directions helps the diver to determine fitness of the mask and the diving needs.

Figure 9: Rolling the eye through all direction to ensure visibility after fitting

How Scuba Mask Enhances Visibility Underwater

Besides preventing blurred or distorted image, the mask is a vital gear for easy communication and clear vision in deep waters. Scientifically, the speed of light changes when it transfers from one medium to another (refraction of light), and during transfer from water and human lens in the eye, the change on the speed of light causes the diver to experience a blurry vision.

The scuba mask assists because it holds some air between the water and eyes, thus allowing for the normal transfer of light from air (trapped in mask), to lens of the eye. The light waves pass from water through the mask to air inside the mask and then to the eye. However, vision through the scuba musk is still slightly distorted, but is 33% bigger in comparison to the images viewed directly through water (Zitzewits 138).

Before a dive,

1. Apply defogging solution on the inside of a mask, which prevents formation of fog.
2. apply a little of this agent into the mask and rub around before a brief rinse with clean fresh water
3. leave a thin layer of the agent inside the mask without rubbing off

Divers must understand there is humidity in the air. The diver often breathes some air into the mask thus adding humidity. Condensation of such moisture fog the glass since warm air fogs due to contact with the cold lenses of the mask.

The defogging agent breaks the bond between water molecules that form the fog on the inside of the mask. In line with Newman, some of the commercial defogging solutions are designed specifically for the mask (13). It is advisable to perform defogging before each dive. There are also numerous procedures of defogging, for instance use of toothpaste or flame to remove residue left after manufacturing.

How to clear water from a Scuba mask

It is important for a diver to have skills of clearing water from the scuba mask during a dive without the need to surface. Lack of such vital skills may cause nervousness. To clear the mask off water the diver need to follow the following procedure as illustrated in figure 10 below:

• First practice mouth or inhaling through the mouth and exhaling through nose especially if the water if felt entering the nostrils.
• Secondly, tilt the head downwards as a measure of trapping air in the nose, which in turn prevents water.
• Ensure the skirt of the mask holds firmly on the forehead by placing a strong grip on the frame of the mask or by spreading fingers along the edges.
• Keep head down to ensure water stays out of the nostrils.
• With the head tilted down, Inhale deeply through the regulator
• Exhale slowly but strongly through the nose
• Tilt head upwards gradually as you continue to exhale strongly through the nose
• The process need to last a couple of seconds. The exhaled air from the nose bubbles upwards into the mask, and forces the water out through the bottom of the mask.
• After performing the procedure, look down towards the floor and ensure that any water that may remain in the mask does not flow into the nose.
• Repeat the procedure until all the droplets are completely removed

Figure 10: Clearing Water from the Scuba Mask

The tight grip on the upper side of the mask ensures that exhaled air does not escape from the top of the mask. Tilting the head up during the exercise also ensures that the air is retained in the mask without flowing out through the bottom or the sides.

Properly skilled divers are able to clear mask fogs by letting in some water, directing the water to the lens of the mask by swishing where the fog is and clearing the water off the mask in the same way.

Scuba Diving fins

Divers have a wide variety of fins to choose from including the booties, spring-strapped, split, blade, and turtle beside open or close-heeled fins. According to Orr and Douglas, “Various fins have been designed for devious dives and various materials are used to maximize propulsion and minimize the kicking efforts” (26).

Types of Scuba Fins

Aqualung Blade

It is important to consider flexibility of fins. The aqualung blade fins shown in figure 11 below are very stiff and mostly preferred due to their enhanced feature of frog kicking to achieve better repulsion techniques for instance backing up turns.

The stiffness enables the diver to propel easily and further for each kick made in comparison to the flexible fins. However, the fins are cumbersome and continuous kicks can be extremely exhausting (Orr and Douglas 26).

Figure 11: Aqualung Stiff Blade fins

Closed-Heels Fins

They contain a packet made of rubber that covers the entire driver’s heel. According to Graver, the fins work extremely well without diver’s booties especially in warm water (31). Cold-water diver requires booties to overcome the harsh climatic conditions by keeping the feet warm especially during the on show dives.

Booties have a hard bottom to enhance easy movements over rough beaches, rocks, hot surfaces before a dive. “Booties also prevent blisters since they are high enough to strap the diver’s heals and prevent direct rubs against heels during a dive or walk” (Graver 31). Figure12 below shows an illustration of the water booties.

Figure 12: Scuba Booties

It is critical that a diver considers the style of strap for the open heeled fins. In line with William, “Standard straps are made of flexible rubber that easily loosened, tightened or unclipped for easy wear and removal” (18). Advanced straps have tight coils to fasten round the heel, which are more durable due to the metallic materials and are more comfortable, styled and easy to remove. Figure 13 below differentiates the two type of strapping.

Figure 13: Spring and Standard Rubber Straps

Blade fins

Blade fins are designed with continuous rubber or plastic materials with various panels, contours and holes to direct water. The fins also provide divers with a more efficient and flutter kick.

The flexibility of the fins vary considerable and therefore are more appropriate for divers who wish to maintain a standard speed during a dive or wish to scuba dive through moderate currents (Bantin 11). Figure 14 below shows the differently styled blade fins.

Figure 14: Differently Styled Blade Fins

The split fins

The split in the fin (figure 15) is meant to reduce the kicking efforts; therefore, the fins are preferable for the flutter kicking. There are also favourable among less masculine divers due to the reduced strain. They are more effective when there are fewer currents.

Figure 15: Split fins

Snorkelling Fins

The fins are easy to manipulate due to their sizes. They also provide the diver an easy way of balancing in shallow waters; however, they fail to provide adequate propulsion for scuba diving, this means that the diver has to compensate with faster and harder kicks (Bantin 37). Figure 16 below provides an illustration of the Snorkelling Fins

Figure 16: Snorkelling Fins

Turtle fins

The shape (short and stiff) and type of material gives them a more definitive design. They are more thick and heavier and work perfectly during the technical or advanced dives. A kick with the fins provides a more propelled effect but causes greater exhaustion. As seen on figure 17 below, the designs of these fins are simple but the equipment is still considered as one of the most effective fin.

Most stores still stock the classic version but with diverse styles. In line with Bantin, the technical diver prefers the fins due to the great repulsive force they provide, and the size is effective during navigation in compacted areas where there are dangers of kicking the ceiling (37).

Figure 17: Turtle fins

Free-diving Fins

As figure 18 below illustrates, the fins have very long, thin and stiff fins that make them very unfavourable among the recreational divers. The fins are preferable during frog and flutter kicks due to their long blades. Although most divers do not prefer these fins due to the involved technicality of manipulation, they provide easy, quicker and very strong repulsive movements.

Figure 18: Free-diving Fins

Coloured Fins

The colours come in handy during a dive where individuals are easy to locate and identify especially the brightly coloured one in poor visibility areas. Neon, orange, yellow, red, sky-blue are common bright colours as figure 19 below illustrates.

Figure 19: Coloured Fins

Innovative Fins

They are specially designed with elastic enhancements such as rubber to add effectiveness during a kick. Some have a gear shifting mechanism for adjustment during a dive in the aim of decreasing or increasing resistance (Bantin 37).

Figure 20: Innovative Fins

Snorkels

This is a safety equipment used together with the breathing regulators particularly when there are difficulties regarding keeping the head above the waves. The equipment is simply a bent tube with a mouthpiece attached at the bottom.

The side is attached to the scuba mask through a clip and the other end (top-tube) extending above the head to stick out of the water surface and form a provision for easy breathing when the head is completely submerged. The clip enables the diver to use the snorkel without need to hold it in place. Figure 21 below shows various parts of a snorkel.

The top of the equipment can be completely open, with a classic and easy to use design, but water splashing on the top drains directly into the mouthpiece. There thus more favourable in calm conditions, otherwise the diver is forced to clear water splashing into the open top (Bulenkov 7).

Figure 21: Parts of a Snorkel

Angled Snorkels

Slightly angled snorkels are better since they provide a drier top by preventing water from entering, unless when completely submerged. The top covering consists of vents angled to divert splashing water. Although the snorkels provide easiness of breathing, they are favourable in calm and less wavy conditions but are heavier at the top compared to the open tops.

Figure 22: Angled Snorkels

Fully dry-top Snorkels seal water even when the diver submerges completely. The top is implemented with simple scientific mechanism of folds and valves. The system closes when a diver submerges thus eliminating need to clear water upon return to the surface.

If the diver is using a snorkel that does not incorporate purge valves as illustrated in figure 23, water can easily enter the tube. In such a case,

• Exhale powerfully to ensure water blows out through the top

Figure 23: Snorkels without Purge Vales

The blowing cannot affect or break any part since the purge valve is absent. Unlike the snorkels with a purge valve at the base (illustrated in figure 24 below), those without the valve are very durable due to the simplicity. According to Bulenkov, Snorkels with valves are easier and faster to clear and are thus rapidly gaining the standardisation prominence in the market (8).

Figure 24: Snorkels with Purge Vales

Rigid Tube Snorkels

The rigid nature of this snorkels assist in maintains the tube’s shape thus prevents bending. The equipment can be comfortable to the user but it need to be of the right fit.

1. Ensure best fit of the rigid tube snorkel during mask fitting exercise.
2. Check the angle of inclination to ensure it does not leave big space
3. A good angle fit is closer to the diver’s face.

Flexible Snorkels

They have corrugated plastic or silicon connection between the upper and bottom portions. They are easy to fit due to the flexibility. The flexibility come in handy during diving where the diver can replace the snorkel with the regulator and the mouthpiece hangs sideways away from destructing the diver. Figures 25 and 26 below show the differences between the rigid and flexible tube snorkels.

Figure 25: Rigid-Tubed Snorkels Figure 26: Flexible-Tubed Snorkels

Nautilus Snorkel

As figure 27 below illustrates, this snorkel is a flexible and easy to fit into a carrying case and can be stashed in the Buoyancy compensator pockets or left loose on the rings. Upon removal, the device springs open into shape. It may lack other critical features, but the flexibility makes the device a favourite for some divers.

Figure 27: Nautilus Snorkel

Oceanic Pocket Snorkel

The Oceanic Pocket Snorkel is highly comparable to the Nautilus Snorkel, but it has a strapping to keep it folded when not in use. Oceanic pocket snorkel has a purge valve on top that is tougher, thus making it not fold to a small size like the Nautilus. Figure 28 below shows the oceanic pocket snorkel.

Figure 28: Oceanic Pocket Snorkel

The Mouth Pieces

According to Treinish, these are part of the snorkel that fits into the diver’s mouth and are made of soft silicon manufactured in diverse shapes for best fits as illustrated on figure 29 below (253). The diver must:

1. Find the right type and size
2. Check the styles for instance strapping for easy fits and comfort
3. Decide the ease of clearing collected water

Most mouthpieces have a small reservoir extension to prevent water that drains into the tube from dripping directly into the diver’s mouth. The dive can still breathe with ease even when some water has collected in the snorkel. The reservoir thus provides easiness on usage and clearing collecting water (Treinish 254).

Figure 29: Various Mouth Pieces

Mask Connectors

The connectors that attach the snorkels to the masks are diverse depending on manufacturers, as illustrated below.

Figure 30: Various Mask Connectors on Snorkels

1. Test for attachment and detachment before diving. If it works well in air, then it is good for diving.
2. If they detach easily in air then hold to them during roll or a jump to avoid loss.
3. Ensure that the connection allow easy movement of snorkel

One of the attachments uses a permanently mounted loop and a hook that provides a quicker way of detaching and attaching. Another has a hook that slides over the tube and provides a slower but ascertained way of attaching. The snorkel keeper has two loops made from plastic, which slides over the tube.

It is equally a slow mechanism but cannot be detached accidentally. Other connectors have adjustable clips attached to the snorkel.

Scuba Tanks and Regulators

Scuba tanks are mainly made from steel and aluminium to hold compressed air. Aluminium is lighter in weight but need to be designed with thicker walls to sustain the compressed air inside. Aluminium is also easily dented and scratched. On the other hand, steel tanks rust easily in presence of moisture.

• Perform periodical tumbling to remove oxidation from the inside of the aluminium tank
• Considers the scuba tank dry-weight (weight when empty) before a hiking any significant distances.
• Choose a low capacity tank during shallow diving and high capacity during longer deep diving or if you have high consumptions.
• Fill the tanks at reliable stations to ensure they are only filled with dry air.
• Avoid emptying the tank completely
• Take the tank for frequent tumbles to remove any rusts
• Ensure compressed gas tanks are or have been taken for a hydrostatic test. Check the test date
• Inspect tanks frequently especially at the neck threads for possible clacks that can cause gas leaks and loss.
• Check the type of regulator. Do you prefer DIN or Yoke?
• To determine the type of regulator, look for an O-ring at the valve attaching to the tank.
• If the O-ring is present, then the valve is a DIN otherwise, it is a yoke. Figure 31 show a DIN while figure and 32 a yoke regulator.

Figure 31: DIN Scuba Tank Regulator

Figure 32: Yoke Scuba Tank Regulator

Air consumption from a scuba tank during a dive

The support expectancy of air in a scuba tank depends on the diver’s consumption rate technically termed as “Surface Air Consumption Rate (SAC rate) or the Respiratory Minute Volume” (Leaird 43).

Divers with large lung volumes (tall and those with big BMI (Body Mass Index)) need more air that the short or petite persons. Other factors that determine consumption include diving experience levels /specialty on diving, stress, exercise done before a dive and ability to control buoyancy. To limit air intake and ensure consistent supply,

• Relax and practice slow and deep breathing patterns
• End the dive before reaching the air supply limit
• Calculate the no-decompression limit
• Plan and monitor the dive time
• Do not exceed the planned depth
• Avoid reaching the “no-decompression limit” during a dive
• Use “enriched air nitrox”
• Ascend with a friend who has reached the supply limit
• Have a contingency plan

Factors that determine durability of air in a scuba tank during a dive include:

• The tank volume
• Consumption rate
• The pressure of water

Buoyancy Control and Effects of Buoyancy on Divers:

• Inflate and deflate the “Buoyancy control Device (BCD)” to increase or decrease buoyancy respectively during a dive (Leaird 89).
• Use lead weights to descend and stay down as the scuba tank empties

Scuba Regulators

The regulator enables the diver to breath from the scuba tank during underwater dives. The equipment is called a scuba regulator because of controlling the amount of air the diver breathes. It is not possible to breath directly from the tank since the air is highly compressed (strongly pressured). The regulator reduces pressure from the tank to an intermediary section before its final regulation to the diver.

Parts of a Scuba Regulator

According to Bantin, the gear has various accessories but two main stages (68).

Figure 33: Parts of a Scuba Regulator

First point of regulation: Controls the air pressure by reducing it to an intermediate pressure point, through a low-pressure hose. As shown on figure 34 below, first-point regulator connects to four different hoses, three to the second point of regulation as well as the buoyancy compensator and one hose to the gauge.

Figure 34: First Point of Regulation

1. First-Stage Body
2. Yoke
3. Yoke Screw
4. Dust Cap
5. Port/Port plug

Second Point of regulation: Assists in providing the diver with an ambient pressurized air that is equivalents to surrounding pressure in air and water. It forms the safe breathing point for the diver. It attaches to the open water valve discussed earlier and thus acts as the other breathing-point/alternative during a deep dive.

Figure 35: Primary Second Stage Regulator

1. Purge Button
2. Ease of breathing regulator
3. Exhaust valve
4. Mouthpiece

An alternative second point of regulation: Forms a backup for the second point regulator. A diver can share air with a fellow diver during a deep-water dive through this point. This alternative point is today a standard safety diving console for a diver (Bantin 68).

Figure 36 Secondary Second Stage Regulator

1. Mouthpiece
2. Low pressure Hose
3. Plunge button
4. Air Adjuster

Submersible pressure scale and related console: It is a gauge for monitoring air usage during a dive to avoid run-outs. It connects to the first regulator through a high-pressure tube, and provides a point of reading direct pressure from the scuba tank. Other gauges that work in line with the pressure gauge include the depth gauge; computer console and diver compass (William 35).

Figure 37: Inflator Hose connector

1. Sleeve
2. Buoyancy Compensator opening

A low pressure inflating tube: According to Leaird, this is a critical low-pressure hose that assists in quick transfers of air from the first stage regulator to the “Buoyancy Compensator’s (BC) inflator” (42).

Figure 38: Submersible Air/Pressure Gauge

1. Depth Gauge
2. Submersible Pressure Gauge

Buoyancy Compensators (BCs/BCDs)

BCD is an inflated jacket that assists divers to experience and control neutral buoyancy. Common compensators are designed as vests or jackets, which connects the diver to the scuba tank during a deep dive. Other designs include the back wing that is often used during technical dives and the classic “horse collar” design. A sample design is illustrated on figure 39 below.

Figure 39: Buoyancy Compensation/Control Device (BCD)

How to use the buoyancy compensator

1. Once in deep waters, add air to the buoyancy compensator in order to experience neutral buoyancy.
2. Inflate the compensator completely to enjoy a surface dive with head above water
3. Attach the scuba tank to the jacket scuba compensator, during recreational diving
4. Attach the scuba dive accessories to the d-ring and pockets of the compensator for instance the torch/light, knife or slates.

Features of a Buoyancy Compensator to consider before a purchase

1. Choose the style of inflating (back inflating or vest style) depending on experience and expected usage. Vest-style is easy to use and ensures easy floating, thus best suited for surface diving
2. Squeeze the chest when the vest-styled compensator is fully inflated
3. Choose the right lift required for a dive
4. When using trim weight pockets of the compensator, distribute them accordingly to balance the swimming position
5. Deflate the compensator from the standard locations whenever necessary
6. As figure 40 below illustrates, the diver can deflate the compensator through the buoyancy compensator hose, but it should be raised towards the surface

Figure 40: Deflating a Buoyancy Compensator using its Hose

Scuba Dive Computer

It is a device for monitoring diver’s heart rates as a measure to manage workload. The digital huge display of the device enhances readability during a dive. The device also keeps track of the dive remaining bottom time (RBT), temperature, tank pressure, bearing for easy navigation during a dive and depth. The information is observable both during a dive and later since all information is committed to a logbook memory.

The diver is thus advised to

1. Always upgrade the computer system software through the wireless or infrared interface
2. Review the calculated deco data especially the gas mixes
3. Check all the alarm warnings and text messages during a dive

Scuba Wetsuit

According to William, it is scientifically proven that water conducts heat away from the human body twenty times quicker than air (8). A wetsuit thus prevents water from cooling and eventually chilling the diver due to the mechanism of slowed heat loss. The suit also protects against scratches from the aquatic life such as corals. The wetsuit traps a thin layer of water against the skin and the water is heated to a temperature near normal.

Scientifically, “water conducts less heat away from diver than the cooler surroundings, thus keeping the body warm…” (William 7). Wet suits are made of neoprene, which is a material made from compressed air bubbles sealed in rubber. Before settling for a choice of suit,

1. Wear a suit that fits properly to ensure trapped heat does not circulate off the body.
2. Remember that wetsuit is not a sufficient gear to provide required warmth if the dive is lengthy or through extreme conditions (iced water).
3. Ensure tightness of the suit for easy in trapping warmth, but also ensure easiness of breathing and blood circulation.
4. Consider the thickness of the suit. Thicker suits are warmer
5. Choose between the short or full wetsuits. Figure 41 shows the short and long wetsuits.

Figure 41: Short and Long Wetsuits

Conclusion

Although there are many related equipment associable with scuba diving as a recreational activity, figure 42 below illustrates some of the most critical items to think through before considering the sport.

Figure 42: Basic Scuba Diving Equipment

Works Cited

Bantin, John. The Scuba Diving Handbook: The Complete Guide to Safe and Exciting Scuba Diving. Canada: Firefly Books, 2007. Print.

Bulenkov, Ye. Soviet Manual of Scuba Diving. Florida, FL: The Minerva Group, Inc., 2004. Print.

Crockett, Jim. The Why-To of Scuba Diving. Ney York, NY: Aqua Quest Publications, Inc. 2002. Print.

Graver, Dennis. Scuba Diving. Illinois, IL: Human Kinetics. 2010. Print.

Leaird, Tom. This Thing called Scuba. Indiana, IN: Xlibris Corporation, 2010. Print

Newman, John. Scuba Diving and Snorkelling for Dummies. New Jersey, NJ: John Wiley & Sons Ltd. 2011. Print.

Orr, Dan, and E. Douglas. Scuba Diving Safety. Illinois, IL: Human Kinetics. 2007. Print.

Treinish, Steve. Technical Rescuer: Water levels. Kentucky, KY: Cengage Learning, 2009.

William, Koelzer. Scuba Diving: How to get Started. New York, NY: Chilton Book Co. 1976. Print.

Zitzewits, Paul. The Handy Physics Answer Book. Michigan, MI: Visible Ink Press. 2011. Print.

Introduction

Mountaineering demands active engagement from participants as it involves activities such as rope-work, scrambling, travelling among glaciers, use of crampons and ice axes, acclimatization and navigation and thus all these experiences have triggered different emotional states during participation as these recreational adventures potentially experience flow, combining exhilaration and enjoyment. Peak exposure also triggers emotions leading to intense happiness.

In the case of the Everest, there are several management inconsistencies that could be blamed for the increasing number of accidents for climbers. Among the imbalances in the decision making strategies include limited response preparation, participant preparation, and improper planning. This paper reviews the Mount Everest case study from a managerial perspective in order to create adequate response strategies that might limits the number of accidents for climbers and the professional climbers.

Reviewing the Mount Everest Case Study

Mountaineering at Everest embodies the soft and hard mountain based activities. In particular, hard adventures would like to take one activity in per trip. Mountaineering is associated with emotional experience. Mountaineering focuses on the motives and personalities of experienced mountaineers.

Mountaineering at Everest also provides the mountaineers with many benefits. For example, when participants reach the summit of a mountain, they experience a sense of well-being. Besides, they feel fulfilled by developing their technical skills because of the mental and physical skills engaged in mountain climbing.

Several factors motivate different people to participate in Everest mountain climbing expedition. The motivations include challenge and risk, catharsis, recognition, physical setting, locus of control as well as creativity. Risks are connected to competence principle. It can influence mountaineers take part in mountaineering activities.

For example, if such individuals participate in the mountaineering practice, and are insufficiently competent to handle actual risks, they might suffer from negative experiences as is the current case at Everest as indicated in the case study. The motivational dimension of catharsis means mountaineers desire to relax and have a leisure time.

The recognition dimension is easy to understand. It means those mountaineers want to be recognized as a mountaineer. Mountaineers’ activities concerned with the locus of control dimension are often relative to the “decision-making, developing one’s abilities, gaining control, and forming friendships” (Pomfret 2012, p. 147). The physical setting dimension means mountaineers take part in mountaineering to view and enjoy the nature mountain environment.

Another factor that motivates an individual to participate in mountaineering is goal completion. Goal completion influences individuals to participate in hard mountaineering practice to finish self-established goals. Goal completion obligation becomes strong in some cases that some individual mountaineers put themselves in actual dangerous situation, suffering serious consequences. For instance, Doug Hansen died on Mt. Everest after getting a summit of 2h following a pre-arranged return time.

Doug had earlier tried Mt. Everest, but failed to achieve goal after 300 vertical feet from the Mountain peak as indicated in the case study. Therefore, he just wanted to achieve his goal, but did not consider the result. Mastery combines the challenge and risk, and locus of control motives features.

It encourages people go mountaineering because they believe that they are good at it (Carole, Christine, & Tim 2011). Reflectively, majority of those who died while climbing or descending Mount Everest believed that they had mastered the art and needed not to take high precaution.

According to Parrott as cited in Pomfret (2012) “emotions are often highly important during people’s involvement in adventurous activities, described as ‘biological, cognitive and behavioral subjective responses to important life events which manifest themselves as feelings of contentment and discontentment” (p.145).

Any adventure is challenging and often leads to different and conflicting emotions from fear, risk, elation, and satisfaction among others. Every adventure starts at planning, then during the stay at the destination and continues long after its completion in reflection and recollections (Faullant, Matzler, & Moordian, 2011). Mountaineering as one-type forms of adventure tourism will generate variety emotional experience for its participants.

As mention above, the challenge and rick motivation dimension will evoke intense positive and negative emotion in the form of fear and joy. They think, “Joy and fact may be core benefit sought in a product/experience” (Carole, Christine, & Tim 2011, p. 76). The inability to manage these emotions might result in a disaster while climbing or descending the Mount Everest as captured in the case study.

Some studies utilize that the flow experience and peak experience to describe the level of mountaineers’ involvement and enjoyment during their climbs. Flow experience means an “optimal psychological state” (Jackson & Marsh, 2006, p.18). Flow is experienced when mountaineers feel full involvement and enjoyment in the adventure activities as well as their competences match the challenges they face during they take part in the mountaineering (Avolio, 2011).

Peak experience is another emotional state that is relative with adventure participation. It means the ‘‘moments of highest happiness and fulfillment’’ (Ismail, Mohamed, Sulaiman, Mohamad, & Yusuf, 2011, p. 99). Experienced adventurers can be easier to gain the flow experience or even the peak experience, while compare with the non-experience adventurers.

It would be unethical to send many inexperienced climbers in company of just one or two experienced climbers (Faullant, Matzler, & Moordian, 2011). In case of a disaster, the experienced climbers would not be in a position to address the crisis in time as is the case in the Everest case study.

Away from the mountaineering ritual and practice, climbers experience a sense of liveliness. When mountaineers involve themselves in the mountaineering practice and vulnerable position to discover things for themselves, they may experience a sense of power and energy after the climbing practice (Faullant, Matzler, & Moordian, 2011).

Mountain climbing is associated with feeling in touch with oneself. By mountaineering, individuals experience oneself in an honest and wholehearted manner in a way that he/she expects others to do the same.

Some mountaineers argue that climbing gives them an impression of what they were looking for and what they have achieved equals a release from the self (Ivey & Kline, 2010). In addition, escape from self-awareness as a self-regulation strategy can help mountaineers to decrease their anxiety by involvement in mountaineering.

The psychological pursuits by climbers are assertion and conquest of the self. In assertion of the self, the mountaineers experience a sense of force expressing itself against other forces. Mountaineers will undergo many unbelievable difficulties and dangers during the mountaineering, and when they achieve their goals, they will have a strong sense of identity (Faullant, Matzler, & Moordian, 2011).

On the other hand, conquest of the self focuses on self-control and discipline. Climbing providing an opportunity to test and develop these two human values. The main aim is to develop a sense of personal conquering (Northouse, 2012).

Challenges Identified

Apparently, there are several inconsistencies in decision making for all the accident cases reported in the case study. These inconsistencies have resulted in injuries and more than 40 deaths over a period of ten years. Although accidents are unpredictable, proper training and general preparedness might be ideal in minimizing their effect.

Basically, those entrusted with making decisions in the Mount Everest case study do not employee quality decision making skills. For instance, in one of the expeditions, more than thirty climbers are sent up the mount with support of only two professional climbers (Faullant, Matzler, & Moordian, 2011).

This means that in an event of accident, the two climbing guides would not be in a position to respond adequately. Besides, those planning for the expeditions tend to rely on groupthink perception (Northouse, 2012). Groupthink refers to a psychological phenomenon happening within a cluster of persons under which the aspiration for conventionality within this cluster results in a biased outcome in the decisions made.

The main underlying assumption towards belonging to this cluster is the need to minimize conflict through blind conformity. Thus, an individual caught up in a groupthink phenomenon is blindly loyal to a set of thoughts or actions for fear of being controversial as a result of exercising independent thinking (Weick & Quinn, 2009).

For instance, one of the professional climbers expressed his fear about the big number and poor timing from the ascending point. Actually, the groupthink psychology made this climber to believe in universality of his decisions as right without accommodating the negative outcome, which is often underrated (Weick & Quinn, 2009). In the worst case, groupthink orientation in the decision making process may generate actions that might result in the tragedy as is the case in the Mount Everest case study.

Recommendations

There is an urgent need for the planners of the Everest expeditions to engage high decision making skills to minimize the assumptions identified above. The process of high-quality decision making is dependent on heuristic since it provides assumptions, integration of options, and rational control.

Decision environment often experience dynamics and swings which create short and long term effect on chances of survival for two alternatives to solve a problem (Northouse, 2012). When faced with a decision problem that requires critical assessments, high-quality decision making process resorts to analytical tools that ensure competitive positioning advantage and rationality.

Each option is assigned to a quadrant with predetermined response strategies and ‘follow-ups’ upon each decision made (Avolio, 2011). For instance, those responsible for organizing the expeditions should review all the security risks from past tragedies to identify weak points that should be sealed before letting more people to participate in climbing Mount Everest (Weick & Quinn, 2009).

There is need to incorporate the team leadership aspect in planning and managing the Everest expeditions. In team leadership, individuals are assigned roles that suit their attributes and which they are comfortable performing. However, it is the team leader who projects the vision of the team for the others to act on.

Team leadership is based on transformational leadership theory and post-transformational leadership approaches which emphasize participation and teamwork (Ivey & Kline, 2010). In the case of Mount Everest expeditions, it is important to introduce all round training to the professional climbers to ensure that their decisions and actions are in the best interest of climbers. This will ensure that they remain alert even in case of accidents to minimize loses that might arise (Weick & Quinn, 2009).

Through proactive management, the entities organizing expeditions will be in a position to roll out organized process within the expedition that involved setting, planning, managing customer demands, and deploying assets to achieve specific goals and objectives such as offering security and convenience to customers interested in climbing Mount Everest (Weick & Quinn, 2009).

Since management is about reproducing an action plan and implementing the same, the expedition leadership should develop solutions that addressed the concerns of diverse customers with different preferences (Senge, 2006). Specifically, development of transformational leaders is achievable through mentorship, stretch assignments, multi-year training programs, and coaching (Ivey & Kline, 2010).

These aspects are complimentary to each other and are active in modeling a broad vision management that incorporate all the expected challenges and address them before the actual expeditions.

Conclusions

There is an urgent need to change planning and management strategies for teams visiting Mount Everest as climbers. The current challenges in management are poor planning, imbalance coach-climber ratio, improper training of the climbers and lack of motivation to remain focused and observant of security challenges.

As a result, many fun expeditions are turning tragic. Therefore, those responsible for planning the expeditions should develop high-quality decision making skills, roll out proper event planning and management skills, and develop the team leadership spirit to ensure that the parties involved remain proactive, active, and focused on the climbing. These actions will minimize the number of death being reported while climbing or descending Mount Everest.

References

Avolio, B. (2011). Full range leadership development (2nd ed.). New York, NY: Sage Publications.

Carole, C., Christine, L., & Tim, W. (2011). Mountaineering as affect regulation: The moderating role of self-regulation strategies, anxiety, stress & coping. An International Journal, 24(1), 75-89.

Faullant, R., Matzler, K., & Moordian, T. A. (2011). Personality, basic emotions, and satisfaction: Primary emotions in the mountaineering experience. Tourism Management, 32, 1423-1430.

Ismail, A., Mohamed, H. A., Sulaiman, A. Z., Mohamad, M. H., & Yusuf, M. H. (2011). An empirical study of the relationship between transformational leadership, empowerment and organizational commitment. Business and Economic Research Journal, 2(1), 89-108.

Ivey, G. W., & Kline, T. B. (2010). Transformational and active transactional leadership in the Canadian military. Leadership & Organization Development Journal, 31(3), 246-262.

Jackson, S. A., &Marsh, H.W. (2006). Development and validation of a scale to measure optimal experience: The flow state scale. Journal of Sport and Exercise Psychology, 18, 17–35.

Northouse, P. (2012). Leadership: Theory and practice (6th ed.). New York, NY: Sage Publications.

Pomfret, G. (2012). Personal emotional journeys associated with adventure activities. Tourism Management Perspectives, 4(2), 145–154.

Senge, P. (2006). The fifth discipline: the art and practice of learning organizations, London, UK: Doubleday/Currency.

Weick, K., & Quinn, R. (2009). Organizational change and development. Annual Review Psychology, 50(2), 361-386.

Abstract

This paper is a report on the external analysis of a hospitality organization which is currently in business. In the context of this paper, Hilton Worldwide will be chosen as the case study subject. In the paper, all contexts of external analysis will be looked at. They include external factors which influence the marketing environment like social changes, competition and the inflow of customers.

The paper will start by briefly discussing the organization’s background, performance and business strategy. A detailed competitor analysis will then be conducted. After this it will evaluate the position of the chosen organization in the marketplace and lastly check into some of the contemporary trends in the macro environment and also how the task environment might tend to affect the organization in general.

Organization background

Hilton Worldwide is an evolution from the former “Hilton Hotels Corporation”. The organization is a globally acclaimed hospitality company that is owned by a private entity known as the Blackstone Group. The company has over 3000 hotels with over 500,000 rooms spread across 77 countries.

Due to its wide nature the company is involved in the management and franchising of quite a variety of brands like the Hilton and Conrad hotels, embassy suites hotels , the Waldorf-Astoria collection among other brands. The diagram below shows a standard Hilton hotel bedroom.

The company was founded in 1919 by Conrad Hilton, in Cisco, Texas. It’s headquarter since then to the year 2009 has been in Beverly Hills, California. It moved to Virginia in august 2009. Owing to its diverse nature, this paper will only be limited to the Hilton Hotels brand. This group has about 500 hotels which are franchised, managed or owned by independent operators through the “Hilton Hotel Corporation” (Gibbs 1997).

The hotel chain almost came to an end during the great depression but efforts from Conrad Hilton thereafter made him buy more hotels including one in New York thus becoming the first coast to coast chain of hotels in the county.

In the expansion of the business empire, the hotel ventured into the online business in 1987 by launching of the website www.hilton.com which was involved in advertising, reservations, offers, programs about the hotel and disbursement of general information about the hotel.

The hotel’s management bought other property other than hotels which included Bally Entertainment which eventually made Hilton the largest company in the United States which was involved with Casino gaming.

This was later put aside as a different group. The company has over the years been involved with buying and management of a variety of other properties like the Hilton Waikoloa Village in Hawaii among others (Goldgaber 1997).

This is one of the business strategy that the hotel chain has used to maintain its diverse business interest including taking advantage of the big name that the company boasts. The following are photos of the prestigious Hilton Waikoloa village in Hawaii.

In some recent years, Hilton developed a different strategy which was to affect the standards of the brands. This was the strategy of the independent hotels establishing their own rates as long as the process remained consistent in all channels. Hilton has grown to be among the leading hospitality industries in the world today (Hilton 1957). Here is one of the beautiful photos of the Hilton

Business strategy

In the earlier stages, Hilton had dedicated too much focus on real estate ownership. In the recent past, the trend has changed to more operational focus being targeted to franchisees.

This has really helped in improving the strategy of growth for the company which has now been targeting to increasing its operational base through this area. Through this method, the company has been able to generate more and more revenue without incurring any expenditure on constructions and purchases of real estate.

The increment in the number of franchisees is a critical method which has been able to maintain the stability of the company in that it continuously enjoys a revenue inflow.

This is a very important shield in the maintenance of the company and also as a protection against downturns. There are several reasons which can make the revenue of a hotel to keep fluctuating (Goldgaber 1997). A good example of the Hilton franchise is the island loses shown below.

The key factor that can make the revenue to fluctuate is the number of customers that get into that particular hotel. This means that whenever people traveling to a particular region decline in number, hotels suffer from decreased revenue.

The advantage of franchising is that the revenue of the hotel remains constant when the hotel has been franchised in that even if there is a decrease in the number of customers coming into the hotel, the fee is standard and fixed. This makes the strategy of franchising the brand name a good income earner for Hilton.

The hotel industry is also vastly affected by ripples which increase airfare. This is because the customer is affected on the amount that he/she can spend in any particular hotel. The strategy which Hilton has employed to avoid this is the target of business class travelers who are not affected much the changes in the airfare as they seem insignificant.

The only way that the company gets affected on the revenue coming from this group of travelers is a slowdown in the economy like during the great depression or the recent economic recession (Higley 2001). All the above factors combined have made Hilton to have a very high growth rate.

Performance

The main areas which have been involved in the key performance of the company include: the vast number of the hotels and the rooms in the hotels, the rates of the occupancy in those rooms which overly is determined by the geographical process. The number of hotels which have been owned by the companies which are franchised by Hilton and the ever increasing room capacity is a good indicator of the expansion of the hotel in capacity.

The table below is a good example of how the company has been steered by the above mentioned factors as the key drivers of business. The diagram below is the logo of the hotel which has played a big part in brand maintenance.

Historical performance of Hilton

The hotel has continued to increase its hotels over time. At the end of the year 2005, it was the world’s largest known lodging facility (Binkley and Neal 1999). The rates in the rooms have also been seen to be in a gradual increaser which is a clear indicator that the hotel has been advertising and selling its rooms in a very good way.

Competitive analysis

The Hilton Hotel group has been known to be competing with a number of global companies main among them being; the intercontinental hotels which is based in France, the Marriott international, starwood among others. Competition is based on some success factors when it comes to the hotel factor of the hospitality industry.

The key criteria which is used to judge the success of the hotels is how attractive the hotel rooms are, the quality of the rooms which has to go hand in hand with the types of services that are offered in the rooms. Lastly in the criteria for success is the global operation of the specific companies. The diagrams below show the Hilton hotels in Texas.

On the part of the Hilton hotel, it has made its presence felt in the whole of the United States and more so, it has been constantly involved in global expansion programs which have made the company to have a very strong global presence. A good example of the global programs is the acquisition of the Hilton International in the U.K in the year 2006 which made its presence felt in that country (Picker 1998).

Another grand acquisition was Destination Properties in Thailand which is one of the leading real-estate-developers in the country where they signed an agreement for managing a new golf resort with a capacity of 358 rooms. The following diagram is a paining at the Hilton capital center

In a bid to grow, the chain of hotels has had a lot of monetary support from franchisee based processes. In this way, it is able to get revenues without spending a coin. This has made the company to be able o buy and also constructing more hotels. This has gone ahead to make the company improve in its brand name and thus more revenue rather than concentrating on real estate development.

Here below is a table depicting the performance of the company in relation to some of the competitors. Below is a depiction of a painting by Linda Dautreuil showing the culture at Louisiana. You can also follow the following link to show the great works at Waikiki Hilton.

A comparison of Hilton to its competitors

As much as this hotel can boast of very many hotels as compared to its key competitors, its rates of occupancy and that of the daily average is lower in comparison. At the same time, some other competing companies like the Starwood and also the Marriot have a 7% growth in CAGR in the 2002/2006 period whilst the Hilton has 3.7% growth in the same. The diagram below shows some of the property tabulation.

Porter’s five forces analysis

Threat of new competitor

This will less likely have a big effect on the Hilton due to the fat that the hotel has grossly established itself over years. The number of rooms in the hotel and the level of occupancy owing to the diverse bed capacity are hard for any new company to surpass. The brand name will help the company to beat new entrants and maintain profits (Porter 1980).

Competitive rivalry

There is stiff competition from some major hotels like the Starwood which is likely to affect profitability. The company has to focus more on the improvement of its current rates and terms and also the attractiveness of its facilities to get more customers (Porter 1980).

Substitute products/services threat

This is less likely to have an impact on the hotel due to the fact that the services being offered cannot be substituted in any way. It is not possible to switch to other means other than eat, spend and sleep in a hotel once you are visitor to a place (Porter 1980).

Customers’ bargaining power

Customers have little say on this because it is a place where people go out of choice. The target of up scale business travelers helps the Hilton with avoiding being much concerned with the lower standards thus escape bargain (Porter 1980).

Suppliers’ bargaining power

This is a field which can affect profitability of the company since they have to be in the company. If the cost of material or labour goes up, then there will be a decrease in profitability to the company. This cannot be controlled by the company and is upon the external environment to decide (Porter 1980).

Environmental Analysis: macro trends and tasks affecting hospitality industry

There are various issues which have affected the hospitality industry. Terrorism, disease outbreaks, politics and various other uncertainties are some of the critical external factors. Changes in technology through the never ending have also been key factors which have led to this (Moore 1985).

Socio cultural forces

After food and the automobile industry, the tourism industry follows suit closing the list of the three largest industries in the United States. Tourism and travel tops the employers list and also the export services and is also among the top industries in retails.

This industry is also interrelated with other industries which deal with rental services and all other forms of transports like air and cruises, lodging facilities and much more others. The growth of the industry is also going at a very high rate worldwide.

Earnings and revenue amongst the various firms involved in the industry at times go on moveing downwards due to changes in the way people are willing to spend. This has resulted fro more travelers willing to spend much of their pleasure travel within their boundaries. This is due to money issues as most people get affected y the financial question.

Economic forces

Economic forces have also vastly affected the industry. Some of the major factors are terrorism and the Iraqi war, the increase in the prices of oil, and much more devastating factors.

When factors like these go hand in hand with issues like global recession, people spend way less and thus the hospitality industry suffers a very big blow. This is mainly due to a weak and a decrease in the growth of jobs and wages. This situation narrows down the rate of occupancy and can only improve once these conditions stop having an effect to the people.

With an increase in security, projections have shown that the rates of occupancy for hotels which have a chain mode of business will be on the rise in the coming years. When the economy of the country picks, the hospitality industry increases the numbers of its business travelers.

When people are encouraged by the right sources to take vacations in areas that are close to their homes, there tends to be a decrease in the RevPAR and a subsequent increase in the occupancy rate at the national level.

Some industries like the; lodging industry have been the worst affected though such improves with an improvement of the economy. When this happens, there is a return on the capital in overall for the hotel (Gibbs 1997).

Political forces

Some new regulations in the country in where foreigners who require to work in the US have had a more strict regulation in the processing of the visa which is coming with a great negative impact. Negative economic conditions and politics in air travel have had pricing in the lodging industry o go down.

There is a decrease in international travel owing from security concerns and threats. Many tourists often postpone their plans of paying a visit to the US and other countries after they hear of a planned attack. The instability in the Middle East is another condition that is playing a huge part in this.

The economic situation in the country led by the economic recession has also played a huge part in that there are possibilities that this can cause an increase in the taxation to the industry thus becoming a great layoff. This has led to a further decrease in revenues (Lubove 1999)

Legal factors

Legal provisions like the introduction of smoke free hotels in various places are a deciding factor on the down trend. It has been argued that the introduction of such laws will lead to a decrease in revenues due to decreased umber of customers. These discussions have been there since the inception of the smoke Free states. The effect of this can be avoided by provision of more areas which allow smoking (Lee 1985).

Technological forces

Many hotels aim at improving their standards of technology in a bid to attract more customers. Such has been evident in the Hilton and other big hotels which have gone ahead to install very fast wireless internet in their hotels. More hotels are now capable of actualizing the online booking system in a method that is slowly proving to be very powerful (Moore 1985).

Conclusion

Throughout the paper, there has been a detailed discussion of various aspects that can affect a hospitality industry with the Hilton chain of hotels be the study case. Factors like competition from other similar industries play a major role though the external environment is another critical deciding factor. The reader can use the information to understand some of the trends that affect this sector.

References

Binkley, C. and Neal T. (1999) Hilton Agrees to Pay $4 Billion for Promus, Wall Street Journal, September 8, 1999, p. A4.

Gibbs, F. (1997) Hilton Hotels Corp.: The Sleeping Giant Wakes, National Real Estate Investor, February 1997, pp. 40-41.

Goldgaber, A. (1997) Honeymoon Hotelier: Hilton’s Stock Quickly Doubled after Stephen Bollenbach Took Over as CEO, Financial World, January 21, 1997, pp. 34-37.

Higley, J. (2001) Bollenbach: Hilton’s Portfolio Set for Long Haul,” Hotel and Motel Management, February 19, 2001.

Hilton, C. (1957), Be My Guest, New York: Prentice-Hall Press.

Lee, D. (1985) How They Started: The Growth of Four Hotel Giants, Cornell Hotel & Restaurant Administration Quarterly, May 1985, pp. 22-32.

Lubove, S. (1999) Hilton’s Head, Forbes, March 8, 1999, p. 50.

Moore, T. (1985) Barron Hilton Fights for Hilton Hotels, Fortune, May 27, 1985.

Picker, I. (1998) Saying Good-bye to ITT, Institutional Investor, January 1998, p. 91.

Porter, M.E. (1980) Competitive Strategy, Free Press, New York.

Introduction

Background to the study

The Russell Hotel is one of the small and medium enterprises operating within the Australian Hospitality industry. The firm is located in Sydney. Since its inception in 1887, the firm has been able to provide high quality services to its customers.

The firm’s location at ‘The Rocks’ which is one of the major historic sites in Australia contributes to the firm’s competitive advantage (The Rusell Hotel para. 6) by attracting a wide range of tourists annually. In the years that the company has been in operation, it has continued to emphasis on personable and charming services. For example, the firm’s rooms are customized to address diversity in customer requirements.

This is in line with customer-focus which is one of the firm’s core elements in its mission statement. Customer focus should be effectively entrenched by the top management. Such an effort would contribute towards a change in attitude amongst the employees across the entire firm. The resultant effect is that the firm all the employees’ activities will be focused at achieving a high level of customer satisfaction (Hill and Jones 135).

In its operation, Russell Hotel has incorporated the concept of strategic management in an effort to cope with the changes occurring in the hospitality industry. According to Enz (13), strategic management is vital for firms within the hospitality industry since it enables the firm define a strategic direction via identification of weaknesses and identification of opportunities.

One of the concepts which the firm has incorporated is internal and external analysis. This enables the firm to identify gaps in its operation (Harris 65). One of the ways through which the firm accomplishes this is via incorporation of customer relationship management. The firm has established an effective internal and external communication system.

Lack of communication in an organization can hinder its effectiveness in strategic management (Hitt, Ireland and Hoskisson 345). In an effort to improve communication with the customers, Russell Hotel has incorporated the CRM software. This has culminated to creation of a strong relationship between the firm and its customers.

For example, the customers are able to communicate their complaints and complements to the management team. The CRM software is vital in a firm’s effort to build intelligence. In its strategic analysis, Russell Hotel management team analyzes the market feedback from time to time.

Aim

The report entails identification of the gaps existing in Russell Hotel, Sydney. The core objective is to propose the various strategies which the firm’s management team can incorporate so as to seal the identified gaps.

Scope

The report is organized into a number of sections. The first section entails an internal and external analysis of the firm via adoption of the SWOT model. The identified gaps are expounded further.

The second section gives an analysis of the various strategies which the firm can incorporate in order to seal the gaps identified. The method of evaluating the feasibility of the strategies is illustrated in the third section. Finally, a conclusion and a number of recommendations are given.

Internal and external analysis

Strategic planning is paramount in a firm’s effort to understand business dynamics (Johnson, Scholes and Whittington 45). In an effort to understand the firm’s internal and external environment, the firm’s management team utilizes the SWOT analysis model which enables the firm to identify its strengths, weaknesses, opportunities and threats.

The effectiveness of the SWOT analysis model is enhanced by the customer relationship management software (Hubbard, Rice & Beamish 5). The table below gives an illustration of the firm’s internal and external analysis.

Steep stair case

Despite its effort to develop a high competitive advantage via ensuring a high level of customer satisfaction, there are gaps which the firm is required to address. From the market feedback, the firm’s management team has identified that there are numerous complaints in relation to ease of accessing the rooms. One of the major complaints is with regard to the hotel stairs.

Operating in a storey building, Russell Hotel has long winding stairs. There are also complaints that the stairs are narrow and steep which makes it difficult for customers to access their rooms.

Absence of an elevator at the hotel’s reception makes the situation worse. Difficulty in accessing the rooms limits the firm’s competitiveness despite the distant and pleasant view of the surrounding that one receives. For example, the steep stair cases have been in existence for a long duration of the hotel’s operation. This has negatively impacted the firm’s competitiveness by limiting customer loyalty.

Lack of sufficient facilities

There are diverse amenities offered by the firm. How ever, there are complaints that the firm does not have refrigeration facilities where customers can preserve their soft drinks. In addition, customers also complain of lack of private bathrooms for each room. Shared bathrooms are one of the issues which increase the Russell Hotel customer’s level of dissatisfaction.

Some of the customers complain citing the hotel to be old and not being stylish. Some of the issues cited include old furnishings and creaking floorboards. Russell Hotel has a narrow range of products. This is evident in the fact that the firm has adopted a limited service model by offering breakfast only to its customers.

Strategies to address the problems faced by Russell Hotel

Product diversification

The hospitality industry in Australia is witnessing a rampant growth. One of the main reasons which accounts for this growth is increment in the number of potential investors venturing the industry. Considering the competitive nature of the hospitality industry, it is vital for firms in this industry to expand their services.

One of the ways through which this can be achieved is via incorporation of the concept of product diversification (Okumas, Altinay and Chathoth 54). Russell Hotel’s competitiveness can be improved via integration of related diversification. Related diversification refers to expansion of a firm’s product range via inclusion of products related the core business activity (Hitt, Ireland and Hoskisson 175).

The firm’s management team should consider expanding the firm’s menu. This will enable the firm to venture into other new market segment thus repositioning itself effectively in the market (Thompson, Strickland and Gamble 45). For example, the firm should consider serving other meals such as lunch and dinner.

In its product expansion strategy, the firm’s management team should consider diversity of consumers with regard to taste and preferences. In order to attract a wide range of customers, a variety of food products should be included in the firm’s menu. Incorporation of product diversity should be conducted in such a way that it reflects the changes in the market (Spears 35).

For example, the firm’s management team should consider demographic changes occurring in the market. Considering the fact foreign tourists are amongst the firm’s major customers, it is paramount for the management team to consider offering foreign dishes.

In its new product development, the firm’s management team should consider conducting a comprehensive market research. This will enable the firm to identify existing market opportunity and hence develop products which are in line with customers requirements (Lewia 67).

In addition, conducting a market research will enable the firm’s management team to determine whether there is a sufficient market for the new product being developed so as to attain a sufficient return on investment (Hassanien, Dale and Clarke 9). For example, age as a demographic change is one of the aspects which the firm’s management team should consider integrating.

One of the ways through which Russell Hotel can exploit this is through provision of specialized hospitality products. For example, to cater for the aged, the firm’s management team should consider providing spa services which is in line with customers’ trend with regard to health ((Hassanien, Dale and Clarke 11).

In order to enhance its competitiveness, continuous product innovation should be conducted. This arises from the fact that there is a high probability of the competitors offering products which mimic the firm’s product (David 45). Through innovation, it will be possible for the firm to differentiate its products from those of its competitors (Mia and Patiar 111).

In order to achieve this, the firm’s research and development team should consider competitors as one of its market research variables. This will ensure that the firm effectively capitalizes on the gaps. Hospitality firms should undertake continuous product innovation so as to develop an edge over their competitors (Hassanien, Dale and Clarke 10).

Refurbishment of the firm’s facilities

Refurbishment is currently being considered as one of the most effective way through which firm’s in the hotel industry can attain their competitiveness (Jones and Haven-Tang 100). In its product development strategy, Russell Hotel should also consider undertaking continuous refurbishment of the firm’s facilities.

This will contribute towards an improvement of the firm’s competitiveness via provision of acceptable services (Hassanien, Dale and Clarke 9). Considering the cost of refurbishment and the changes in the hospitality industry, refurbishment should be undertaken within a range of 3 years.

One of the issues which should be considered is inclusion of an elevator in the firm’s premises. This will help in solving accessibility challenges facing the firm. As a result, the firm will be able to increase its customer base by attracting new customers. For example, accessibility of the firm’s rooms will play a significant role in attracting the physically challenged customers.

For example, in the process of refurbishing the hotel, it is important for the firm’s management team to ensure that wheel chairs can easily be used in the hotel. In addition, the firm’s management team should ensure that private bathrooms are built. Through refurbishment of the hotel’s facilities, there is a high probability of the firm increasing its customer base by attracting new customers since the hotel will be stylish.

Evaluation

In order to determine the feasibility of these strategies, the firm’s management team will continuously evaluate changes in its profitability level.

Despite the cost of implementing these strategies being relatively high, the firm’s management team expects that there will be a significant change in its profit level within the first three years of their implementation. The table below gives an illustration of the expected cost and growth in profit level. The firm will compare the actual and the expected profits level.

Conclusion

From the above analysis, it is evident that Russell Hotel is faced with a challenge in relation to customer satisfaction despite the high level of customer service offered by the firm’s staff. This is evident in the fact that there are numerous customer complaints in relation to the firm’s facilities.

Despite its strategic location, accessibility to the firm’s rooms is a challenge due to the steep and narrow stair case. This limits the customers’ level of satisfaction. In addition, the firm does not have sufficient facilities to effectively cater for the customers needs.

Recommendations

In order to improve its competitiveness, Russell Hotel management team should consider the following.

• In its product diversification strategy, the firm should customize its products to meet the customers’ diverse tastes and preferences.
• Continuous training should be conducted on the firm’s research and development team. This will increase its effectiveness in analyzing changes in the hospitality industry hence exploiting the opportunities presented.

Works Cited

David, Fred. Strategic management : concepts. Upper Saddle River, NJ: Prentice Hall, 2010. Print.

Enz, Cathy. Hospitality strategic management: concepts and cases. New York: John Wiley and Sons, 2009. Print.

Harris, Peter. Accounting and finance for the international hospitality industry. Boston: Butterworth-Heinemann, 1995. Print.

Hassanien, Ahmed, Dale, Crispin and Clarke, Alan. Hospitality business development. Oxford: Business Heinnemann, 2010. Print.

Hill, Charles and Jones, Gareth. Strategic Management Theory: An Integrated approach. Florence: Cengage Learning, 2009. Print.

Hitt, Michael, Ireland, Duane and Hoskisson, Robert. Strategic management: competitiveness and globalization: concepts and cases. Florence: Cengage Learning, 2009. Print.

Hubbard, Graham, Rice, John and Beamish, Paul. Strategic management thinking, analysis, action. Sydney: Pearson.

Johnson, Gerry, Scholes, Kevan and Whittington, Richard. Exploring Corporate Strategy. New York: Prentice Hall, 2005. Print.

Jones, Eleri and Haven-Tang, Claire. Tourism SMEs, service quality, and destination competitiveness. Oxfordshire: CABI, 2005. Print.

Lee-Ross, Darren and Lashley, Conrad. Entrepreneurship and small business management in the hospitality industry. Oxford, UK: Butterworth-Heinemann, 2008. Print.

Lewia, Robert. Cases in hospitality strategy and policy. New York: John Wiley & Sons, 1995. Print.

Mia, Lockman and Patiar, Anoop. The use of management accounting systems in hotels: an exploratory study. International Journal of Hospitality Management. 20(2): 111-128. New York: Elsevier Science Limited, 2001.

Okumas, Fevzi, Altinay, Levent and Chathoth, Prakash. Strategic Management for Hospitality and Tourism. Oxford: Butterworth-Heinemann, 2010. Print.

The Russell Hotel. The history of the rocks, 2010. October 26, 2010. https://www.therussell.com.au/

Thompson, Arthur, Strickland, John and Gamble, John. Crafting and executing strategy. New York: McGraw-Hill, 2007. Print.

Introduction

The term spa still remains an ambiguous and somewhat unclear term, especially within the context of a business model. Nonetheless, mention of the term elicits connotations of health and wellness (Cohen & Bodeker 2008). The spa industry has gained a lot of popularity in recent years, thanks in large part to the contribution made by the mature market in the west. In addition, the industry has also embraced the concept of globalization and his has helped to increase its revenue. Like the other industries, the spa industry was also affected by the recent global recession that saw it take a 19 % drop in revenue.

Trends in the spa industry

The global spa industry is estimated to be worth $ 1.9 trillion. The spa market has already reached its maturity stage and in order to maintain growth, industry players need to consider other markets, such as India and China (Schack 2011).

The spa industry is divided into three customer segments. First, we have peripheral customers who are easy to please and price sensitive. They view spa services as a source of pleasure and beauty, as opposed to health and wellness. Secondly, there are the midlevel customers who are seeking massages, facials, and relaxation experience, as opposed to alternative medical treatments (Johnson & Redman 2008). These customers are less likely to seek unusual treatments. Finally, we have the core customers who are seeking health and wellness, and lifestyle. They are price insensitive and as such, they demand exceptional experience and services (Crebbin-Bailey, Harcup & Harrington 2005). Besides, they tend to have a lot of experience in the spa industry.

Men only spas constitutes 31% market share (Schack 2011). Services include male focused activities such as outdoor adventure, golf, and male cosmetic treatments. Young couples are on the lookout for mainly spa treatment. Because they are likely to have children, these couples need educative aspects on health and wealth.

Impact of globalization on the spa industry

Globalization has had a huge impact on the spa industry. For example, the recent global recession had a huge impact on the industry, resulting in a 19% drop in revenue (Tabacchi 2010). Even when hotels provided discounted rates in a bid to woe customers, this did little to improve the situation. The hospitality industry was forced to embark on a deep discounting strategy. In addition, the industry also launched E marketing services and aggressive PR. New products were also developed (for example, salt therapy) in an attempt to further extend the product line.

There has also been a change in the trend of the spa industry, with most businesses opting for franchising as a strategy to expand the market. This strategy is also intended to enhance overall consolidation of the industry. Globalization has also supported extensive branding of the spa industry, in effect strengthening economies. Thanks to globalization, we now have mobile applications and online spa services as well.

Conclusion

The recent globalization has dealt a heavy blow on the spa industry. Considering that the market in the west has attained maturity, there is the need to target other segments of the market as well. For example, the spa industry can decide to target the retired baby boomers with their disposable cash and time. Spas should therefore incorporate naturopaths, physiologist and orthopedics as part of their services in order to reach out to the aging population. Also, spa could consider incorporating home delivery services that targets the aging population. Players in the spa industry should also consider investing in India and China

This is an untapped market that also reflects emerging new class mobility (Tabacchi 2010). Online deals and mobile applications could also improve the market further.

Reference List

Cohen, M., & Bodeker, G., 2008. Understanding the Global Spa Industry : Spa Management. Oxford: Butterworth_Heinemann

Crebbin-Bailey, J., Harcup, J. W., & Harrington, J., 2005. The Spa Book: The Official Guide to Spa Therapy.‎ Stamford, Mass: Cengage Learning.

Johnson, E., & Redman, B., 2008. SPA : A comprehensive Introduction. Michigan: AH & LEI.

Schack, E., 2011. Spa Business. Web.

Tabacchi, M. H., 2010. Current Research and Events in the Spa Industry. Cornell Hospitality Quarterly, Vol. 51, No. 1, pp. 102-117.

Characteristics for Development of Whale-Watching Industries

On the social front, it is evident that although the community in the Vava’u area comprises of only 16,000 people, it has been on the forefront in whale conservation efforts and demonstrates a friendly nature to tourists. Additionally, the community has been effective in using promotional material involving the humpback whales to put Tonga on the world map.

On the economic front, it is clear that tourism is the economic mainstay of the Vava’u area due to the fragile nature of other economic activities mainly in the manufacturing, agricultural, forestry and service sectors, hence making the area a fertile breeding ground for the development of modern whale-watching industries.

Concerning the natural environment, the Vava’u Island group in the Kingdom of Tonga is not only located in a tropical climate with warm, sheltered waters but also prides itself for hosting one of the whale species most popular for tourism. The high-quality marine environments in the area ensure the availability of humpback whales, which often visit the area for mating, birthing, and raising young calves.

Non-Economic Impacts of Whales and Whale-Watching

As demonstrated by the author of the article, tourism activities occasion both economic and non-economic impacts in the destination area or country. In the context of the Island of Tonga, whales and whale-watching activities are likely to occasion difficulties in hosting large numbers of tourists, environmental pollution and degradation, conflict between operators, resentment in the local community fuelled by increasingly large numbers of tourists, and internalization of vices such as prostitution and gambling among the local people.

Other non-economic impacts of whales and whale-watching activities likely to affect the Island of Tonga include inflationary pressure in the local economy, loss of local control on how local resources are managed and distributed, as well as environmental degradation due to the establishment of numerous whale-watching businesses in the area.

However, a positive non-economic impact for the Island concerns the change of attitudes and value systems among the local community, especially in terms of valuing and conserving the humpback whales as a critical resource for social and economic development of the Kingdom.

Factors influencing Potential Future Growth of Whale Watching

Some of the factors that will guarantee the future growth of whale-watching industry in Vava’u Island group, as demonstrated by the author, include (1) developing adequate transportation, accommodation, and other elements of the tourism infrastructure, (2) attaining long-term political stability not only in the Island of Tonga but also in South Pacific region, (3) establishing convenient and reliable airline connections to boost tourists’ arrivals, (4) dealing with unsustainable whale hunting practices, (4) establishing proper management practices for whale-watching activities, (5) dealing with negative social, economic and environmental impacts associated with tourism, (6) maintaining a stringent code of practice for whale-watching operators to minimise negative impacts associated with competition, and (7) establishing adequate conservation initiatives for the humpback whales to maintain their health and value.

It is important to note that several factors discussed in the article, including degradation of the natural environment, non-involvement of the local community and proliferation of unsustainable hunting practices may actually hamper the growth of the whale-watching industry in the future if immediate corrective measures are not taken. Overall, it can be suggested that the sustainability efforts undertaken to guarantee the expansion of the whale-watching industry in the Island of Tonga are bearing fruits.

Introduction

Tourism is rooted in the history of ancient civilisations. Over the years, the industry has grown to become one of the most lucrative sectors for the generation of foreign revenues in many nations. Franscesco Frangialli, the WTO secretary-general, posits, “Tourism at the turn of the century is growing faster than even our most optimistic predictions, which continuously simulate its development worldwide” (Rita, 2010, p.435).

The economic development of the Balearic Islands is strongly dependent on the inflow of tourists. Mallorca stands out as one of the biggest islands among the Balearic Islands in Spain with many three-star and five-star hotels. At present, governmental organisations and private companies attempt to find ways of attracting people from foreign countries to the Balearic Islands. Amongst these organisations, tour operators’ organisations influence the nature and magnitude of inflow of tourists into the Balearic Islands.

Literatures on factors affecting tourism attractions mainly focus on infrastructural development, the presence of natural or cultural sites, and the development of the tourism industry among others factors, thus leaving out the roles of travel agencies insufficiently addressed. For instance, some studies highlight why a certain place can attract the attention of travel agencies without showing the impacts of the agencies on the hospitality facilities such as hotels.

This challenge is aggravated by the inadequate or even lack of data showing how these organisations shape the development of tourist destinations. This study seeks to close this gap by restricting its concerns to the impacts of tour travel operators on hotels in Mallorca. Consequently, this study examines how the power of tour operators influences various hotels in Mallorca. This interrogative presents practical implications.

Precisely, the determination of influence of the power of tourists’ travel on hotels in Mallorca is important in the development of strategic plans, which are consistent with the considerations addressed by various tour travel operators in recommending various accommodation facilities for their clients.

Aims and objectives

The inflow of tourists within a given geographical region is influenced by factors such as political, state of economic development, and even social factors. One important factor that is not significantly studied, which guides the objective for conducting this research, is the power of tour travel operators.

Researchers in the hospitality industry focus on the mechanisms of increasing the popularity of certain tourist destinations. Indeed, several studies have aimed at examining the factors that affect the development of the tourism industry (Izquierdo-Yusta & Martınez-Ruiz, 2011, p.77). While appreciating the significance of these factors in influencing hotels in Mallorca, the main aim of the current research is examining the influence of travel agencies on various hotels in Mallorca.

This study has two main objectives, viz.

1. To use primary data to demonstrate the impacts and influences of tour travel operators on hotel bookings in Mallorca.
2. To study positive and negative impacts of the above influences coupled with how they affect anticipated service value by clients seeking hotel bookings.

Research questions

Research questions help in setting the stage for a study. They act as guides into what qualitative and quantitative research seeks to achieve (Cohen & Crabtree, 2008, p.332). Two research questions consistent with the objectives of this research are investigated in this study as follows:

1. Do tour travel operators in Mallorca help in the creation of preconception and anticipations about the quality of services offered at hotels?
2. What factors, specific and unspecific to hotels, do tour travel operators consider when recommending a hotel facility to a tourist?

Literature Review

Travel operators are involved in direct communication with potential hotels’ clients in various tourists’ attractions sites. The first section of this literature review offers a discussion of the likely impacts of such communication on the quality of services anticipated by clients on arrival at Mallorca. In the second part, disparate literatures on selection of destination sites for promotion by tour travel agencies are considered since this element also influences the places where tourists seek accommodation and other related services.

The principle focus of the research rests on the roles of tour travel operators on hotel branding – a term coined from the wider contribution of tour travel agencies in destination branding (Jalilvand, Esfahani & Samiei, 2010, p. 235). In the third section, literature gap prompting the necessity for conducting the proposed research is discussed coupled with the practical implication of the research sealing such gaps.

Examination of the past research on the influence of tour operators on hotels seeks to identify the impacts of the operators on specific tourists’ destinations. Consequently, in the identification of the literature gaps, a discussion of appropriateness of selection of Mallorca as a research geographical segment is also considered.

Tour travel agencies take part in the formation of the clients’ perceptions and attitudes toward a certain tourist site, recreational, or hospitality facilities. In many cases, buyers pay attention to the reputation of a travel agency (Ferencová, 2012, p. 309). Consequently, they can significantly increase the popularity of a hospitality facility (Denvir & McMahon, 2009).

This assertion suggests that tour travel agencies contribute to the rate of inflow of tourists into a given hospitality industry within a given tourist destination geographical region. Stemming from their mode of operation, tour travel operators are service companies acting as an intermediary between tourists and other hospitality institutions such as hotels, airlines, restaurants, or cruise liners.

These organisations provide information to clients about particular tourist destinations. Therefore, they are responsible for the Mallorca destination branding. This aspect implies that they take active roles in the development and communication of the value that a certain tourist destination can bring to a client (Tsiotsou & Goldsmith, 2012, p. 52).

The power of tour travel in influencing hotels and destinations selection

Tour travel operators make considerations on various factors while selecting tourist destinations for promotion. These factors include the presence of natural or cultural sites, climate, and service industry in a particular region, infrastructure, and security (Prebežac & Mikulić, 2008, p. 170; Blázquez, Molina, & Esteban, 2012, p. 167). This observation suggests that tour travel operators are incredibly interested in destinations that would satisfy clients in terms of both desired comforts and perceptions of security.

Mariutti, de MouraEngraciaGiraldi, and Crescitelli (2013, p.17) note that the governments of developing countries are extremely concerned about the attitudes of travel agencies as they can influence the decisions of customers. In this context, tour travel operators help clients in learning more about various characteristics of a tourist destination. Where perceptions of insecurity are high, hospitality facilities such as hotels located in such destinations are also likely to receive low number of bookings (Holloway, 2008).

A study conducted by Mihajlović (2012) suggests that tour travel operators have the capacity to affect the choices of consumers profoundly by highlighting the advantages of going to particular destinations. One of such issues encompasses the provision of complete guides on various hotels coupled with services offered in them. This move aids clients in making informed decisions or making prior psychological preparations on what to expect.

In a bid to avail information on the services offered at the hospitality facilities located in various tourists destination within a nation, tour travel operators conduct an evaluation of the service industry in a certain destination (Budeanu, 2012, p.15). In this sense, Denvir and McMahon (2009) argue that these organisations are the major intermediaries between customers and service providers.

Budeanu (2012) adds that clients are likely to put trust in the recommendations or assessments offered by travel agencies. Therefore, their contribution in influencing the clients’ perceptions at Mallorca hotels is inevitable for consideration by any hotel’s management and strategic decision makers.

Research conducted by Buhalist (2000) found out that distribution channels, especially travel agencies, affect the performance of many hospitality organisations. The study suggests the hospitality organisations need to accept the power of travel agencies in influencing their operations. In fact, tour travel agencies, through their assessment reports on hospitality organisations in tourists’ destinations, reduce the perceived risk expected by clients (Buhalist, 2000, p.115).

This argument agrees with Budeanu’s (2012) assertion that tour travel operators facilitate communication between customers and service suppliers in the tourists’ destinations. If this link is absent, a client is not likely to go to a certain tourist destination. Buhalist (2000, p. 136) notes that the competitive positioning of a hotel depends on its cooperation with tour operators.

This role of the tour operators in influencing the clientele in the hospitality facilities in the tourists’ attraction destinations becomes important in the information age. Many consumers rely on the Internet to acquire information about various resorts, tourist sites, or airlines (Mihajlović, 2012, p. 153). Very often, clients use the websites of travel agencies. The information provided on the travel agencies’ websites is instrumental in influencing the clients’ hotel selection and bookings.

The Mallorca Island is located in the Mediterranean Sea. Studies on factors influencing choices for tourists wishing to travel in the region are also important in the development of strategic decision making by hoteliers in the region. In one such researches, Izquierdo-Yusta and Martınez-Ruiz (2011, p. 78) note that tour travel operators facilitate the clients’ search for information. They help customers and suppliers in establishing mutual trust (Izquierdo-Yusta & Martınez-Ruiz, 2011, p. 80).

In addition, tourist destinations in the Mediterranean region are not likely to enjoy popularity when travel agents fail to pay attention to them in their promotional strategies. Tour-travel operator organisations can demonstrate that certain hospitality organisations are suitable for various types of clients differing in terms of income level, marital status, interest, and values among other tastes and preferences. Therefore, tour travel operators can increase performance of hotels located in a particular tourist destination.

Tour operators can increase or decrease hotels’ services demand. Irrespective of the industry in which an organisation operates, increased performance ensures longer existence of an organisation in a competitive market. Therefore, in the hotels sub-sector of the hospitality industry, performance is an essential tool for the evaluation of the ability of an organisation to remain in business in both short-term and long-term.

According to Beechler and Woodward (2010, p.275), profit-making organisations deploy profitability levels as measures of their performance. In this extent, profitability encompasses a desired organisational output, which can be affected by the tour operators through their recommendations on hospitality organisations’ meeting tastes and preferences of specific clients.

In Mallorca, it is desirable that hotels indentify all factors that may affect their profitability. One of such factors may encompass the reduction in service demand levels. Indeed, the lower the demand for services offered by a hotel, the lower the sales levels. Hence, the capacity to offset costs is reduced. Arguably, any variable or factor increasing demand for services offered by organisations in the hospitality organisations operating in tourism destinations may be positively received by hotels in Mallorca.

As argued before, tour operators may influence the demand of services offered by different hotels in Mallorca with overall implication of affecting the performance of the hospitality industry. This assertion suggests that tour operators affect tourism destination hotels’ aspects defining their organisational performance.

These aspects are “financial performance (profits, return on assets and return on investment), product market performance (sales and market share), and shareholder return (total shareholder return and economic value added” (Devinney & Yip, 2009, p.529). In this sense, the standard approach of measuring performance in hotels entails setting targets for the desired outputs and then measuring the actual outputs against the targets.

Hotels can only set targets on a certain number of anticipated customers seeking accommodation and other services over given period. For reliable targets, the capacity of tour operators to influence the clientele in the hotels implies that the hotels need to establish good relationships with customers to increase their probability for promotion.

Tour travel operators interact with various types of companies located in a particular tourist destination and in this process of interactions, they can increase international awareness about a certain destination. While interacting with hotels, they can increase inflow of travellers and higher number of rooms’ reservation by directing clients to the suitable hotels (Navickas & Malakauskaite, 2009).

Depending on the service satisfaction of a client visiting a hotel for the first time, service loyalty may develop. The client may also recommend another person to stay in a particular hotel or even consider seeking hospitality services from the hotel during his or her subsequent visits. This argument implies that tour travel operators may be pivotal in branding hotels in various travel sites including Mallorca.

Research shows that the development of tourism is directly dependent on the degree to which tour operators are aware about a tourist destination and hospitality facilities. For instance, Ferencová (2012) indicates that in various European countries, at least 20 percent of the population relies on travel agencies while selecting a place for holidays (p. 311).

The case of Balkan as discussed by Mulec and Wise (2012, pp.182-183) perhaps explains the roles played by tour travel operators in fostering inflow of clientele in the hospitality organisations located within a given tourist destination site. Balkan boasts many natural and cultural sites. However, these sites do not attract a great number of foreign tourists as tour operators and travel agents are not familiar with them (Mulec & Wise, 2012).

Hotels in different geographical regions compete to increase their market share. This aspect also applies to hotels in the Mediterranean islands, including Mallorca. Considering the roles played by tour travel agencies in influencing the performance of hotels located in various tourism destination sites, it may create the impression that only travel agencies affect their performance.

Patsouratis et al. (2005, p. 1865) disputes this position by arguing that the exchange rate can be a powerful factor that shapes the purchasing decisions of clients. Burgess et al. (2011) maintain that the competiveness of the tourism industry depends on the ability of various organisations to make use of information technology to create consumer awareness (p. 221).

This assertion suggests that despite relying on tour travel operators to create awareness of the services offered by hotels and other hospitality facilities within tourists attractions destinations, hotels can also deploy information technology tools to induce customer awareness directly without depending on the tour travel operators.

Roles of tour travel agencies in shaping hotel clients’ perceptions of service quality

The literature review in the previous section indicates that tour travel operators play important roles in inducing service quality anticipations by potential clients to hotels within tourism destinations. In a bid to study the impacts of the information availed to customers on hotels and other hospitality facilities in any destinations including Mallorca, it is important to investigate scholarly evidence on impacts of customer-service satisfaction anticipations on hotels.

Parasuraman et al. (1988) attempt to investigate perceptions of customer satisfaction anticipations coupled with hotel attributes. The research argues, “Intangibility, inseparability, variability, and perishability of services degrees of customer satisfactions depend on their perceptions of service attributes and facilities” (Parasuraman et al., 1988, p.31).

In consideration of the attractiveness of a hotel for tourists, its attributes should then come first. They include quality of rooms, hotel reputation, and classification such as five-star or three-star, and the nature of service delivery to the customers (LeBlanck & Nguyen, 1996).

Tour travel operators mainly focus on ensuring that they direct their clients to the best facilities to enhance their reputations in comparison to other competing travel operators. Consequently, they prefer to associate themselves with the best hotels within a given tourism destination (Lew & McKercher, 2006). This argument suggests that when selecting hotels to recommend clients, tour travel agencies are interested in the degree of satisfaction of customers while eating and accommodated in a hotel.

Consistent with this assertion, Konecnik and Gartner (2007) believe that the performance of hotels is well conducted when evaluated by examination of their attributes. Gooroochurn and Sugiyarto (2009) also find this approach important. They conducted an extensive review of studies done between 1984 and 2000 on the attributes of hotels coupled with how the indentified attributes induce customer satisfaction.

In the 173 hotels studied by 21 researches investigated by Gooroochurn and Sugiyarto (2009), hotel image, nature of rooms, nature of beverages, and foods influenced the customers’ satisfaction. Therefore, tour travel operators are more likely to engage in promoting hotels with these attributes as they help in associating the agencies with offering best services and satisfaction.

Hudson and Miller (2011) indicate that the quality of communication between clients and hotels’ employees affects the satisfaction of clients in the hospitality industry. Indeed, organisations collaborating with hotels in tourism destinations only prefer establishing relationships with hotels appreciating and investing in good interpersonal communication between the hotels’ operators and clients.

Customer satisfaction in the service industry is a function of the speed of service delivery. Employees in any organisation attend to customers. The nature and quality of service and products delivered determine the employees’ contribution in enhancing the competitive advantage of the organisations (Rust, Zeithaml & Lemon, 2008; Philport & Arbittier, 2010).

This argument implies that organisations in the hospitality industry such as hotels may determine their preference rates or recommendations’ probability by tour travel operators through the degree of reported customer satisfaction with their services and products.

Yelkur (2013) contends with this argument by adding that in the service sector organisations, quality is enhanced through the deployment of strategies for enhancing customer satisfaction with services, the utility of the service, and the speed of service delivery (p.110).

Through their researches, tour travel operators have adequate information on various services attributes for any given hospitality organisation in a given tourist destination. They deploy this information to rate different hotels and then base their accommodation advisories on the acquired data.

The above discussion associates travel operators closely with the determination of hotels selected by clients well before the actual visit. However, there exists scholarly research suggesting that tour travel operators do not possess the principle power to determine the customers’ preferences for hotels within tourist attractions sites.

For instance, Kau and Lim (2012, p.236) argue that leisure travellers served by hotels are more interested in the actual quality of service offered as opposed to the perceived quality as communicated to them by other parties such as tour travel operators.

Wuest, Tas, and Emenheiser (2009) argue that leisure travellers consider “clean, comfortable, well -maintained rooms, convenient location, prompt and courteous service, and safe and secure environment important when selecting a hotel for the first time” (p.77).

Although actual assessments on these factors may form strong motivation or de-motivation for seeking repeated services in a hotel, arguably, clients are not likely to try hotels without preconceived perception about the hotel’s likelihood to offer the best services.

Choi and Raymond (2001) maintain that demonstrated courtesy, cleanness, security, and offering services commensurate to the service charges are important factors in determining the selection of hotels by tourists. This aspect is perhaps incredibly important for the Mallorca hotels and motels.

Most clients for these two groups of organisations are mainly leisure travellers as evidenced by statistics from Datamonitor (2011) indicating that the Spanish “hotels and motels industry had total revenues of $19,195.4 million in 2010, representing a compound annual rate of change (CARC) of 1% between 2006 and 2010” (p.9). The leisure segments accounted for US$17, 238.4 million in the entire hotels and motel industry’s value.

If tour operators play roles in positively influencing the selection of the tourists’ destinations, then the hotels and motel industry in Spain will continue to contribute significantly to the national GDP. This argument makes sense considering that the “performance of the industry is forecast to accelerate with an anticipated compound annual growth rate (CAGR) of 3.2% for the five-year period 2010-2015, which is expected to drive the industry to a value of $22,430.1 million by the end of 2015” (Datamonitor, 2011, p.9).

However, despite the ability of tour operators to create more awareness on the services and satisfactions of customers in the Mallorca destinations, it is also possible for the first-time experiences of the currently visiting tourists to foster this expected growth in the future by presenting good publicity about the services offered at the Spain’s motel and hotel industry.

Although the arguments that the capacity of first experience with services offered at a hotel can induce repeated booking may be convincing, awareness for existence of a hotel in the first place is important. Such awareness may emanate from a hotel or from collaborating agents such as tour travel organisations. Arguably, where the information is communicated in both ways, it is readily likely to convince potential clients to seek booking in such a hotel.

Where tour travel operators back up brand positioning efforts of the hospitality organisations within a given tourist destination, the agency acts as an essential link between service producer (the hotels) and service consumers (tourists). Selwyn (2008) supports this assertion by claiming that tour operators constitute one of the most influential players in the hospitality industry.

Data derived from the World Tourism Organisation (WTO) in year 2000 indicated that for “over 663 million people who travelled abroad in 1999 spending US $453 billion on various tourism travel products and services, 80% of the trips used services of a tour operator” (Budeanu, 2012, p.3). This realisation suggests that the tour operators also offered guides on the hospitality facilities to the largest proportion of people consuming tourist products coupled with services.

Stemming from the above arguments, the dependency of international travellers on services offered by tour travel operators highlights the importance of consideration of their impacts on hotels in Mallorca. In this context, it also becomes important to examine whether tour operators are “wholesalers of tourism services or producers of travel package” (Budeanu, 2012, p.6). Although there is no scholarly agreement on this debate, tour operators take bulk information on available hospitality facilities and present it to clients. This way, they function as wholesalers while hotels operate as producers of services and products.

With the emergence of two-way communication platforms permitting organisation to contact their customers directly, the roles of tour operators in the hotel industry is seemingly dwindling. In fact, according to Tapscott and Williams (2010) web 2.0 applications permit clients across the globe to make a hotel booking without seeking assistance from an intermediary organisation. However, arguably, tour operators cannot lose relevance in the hotels industry.

Budeanu (2012) Support this line of thought by asserting, “By buying in bulk, the operator takes from the producer the burden of selling products and absorbs the risk of having unsold products” (p.7). For instance, where several hotels operate in one area, and are promoted by one tour operator, customers may consider all the hotels as offering state-of-art services simply by association with their trusted tour operator. This aspect minimises the degree of rivalry between organisations for fair distribution of hotel bookings.

Tour operators minimise the time required by clients to track accommodation facilities to determine their appropriateness to meet the desired comfort and utility. Denvir and McMahon (2009) note that tour operators offer various services including flight followed by transfer services such as offering guide on hotels bookings. This aspect implies that tour operators act as the link between a service producer, such as hotels, and the service consumer like tourists.

The services offered by tour operators are incredible in helping clients to save valuable time and energy. Additionally, ” by buying in bulk, the tour operator gets better deals from the direct producers, which allows them to offer low prices for the entire packages, which are very hard to obtain by individual customer” (Budeanu, 2012, p.6). Consequently, for reasons related to time coupled with price, the services of tour operators are inevitable in the hospitality industry.

Effective functionality of the hospitality industry is dependent on the good fit between organisations operating in the industry and the tour operators. Budeanu (2012) amplifies this argument by adding that tour operators are important for both consumers of tourism products and services coupled with their producers. This importance emanates from contributions of tour operators in influencing decisions made by tourism products and service producers, which affects the process of evolution of hospitality markets (Budeanu, 2009).

By engaging in the promotion of certain tourism attractions sites, tour operators can stir up the hospitality organisations’ promotional campaigns and positive customer perceptions about the quality of services offered in various hotels located within different tourism destinations. This way, tour operators function as means of placing products and services offered in the hospitality industry to their potential consumers.

Stemming from the above discussion, tour operators are evidently distribution networks for tourism services and products. In the words of Lew and McKercher (2006), they “are the main information channel through which the customers’ preferences reach producers and services reach markets” (p.416).

In the execution of this role, they can indentify levels and patterns of hotel demand coupled with supply, and influence the equilibrium through influencing the customer decision-making processes, especially on the most preferred destinations’ hotel selections. Hudson and Miller (2011) posit that the degree and threshold of influence provided by tour operators on processes of the decision-making process for hospitality service producer are amplified in transactional tourism (p.309). Mallorca hotel organisations belong to this category.

Scholarly gaps in literature on the influence of tour operators in hotels

Tour operators play significant roles in influencing the performance of organisations operating in the hospitality industry. However, no scholarly research focuses on specific roles played by operators in influencing the operations of hotels in the Mallorca Island. Nevertheless, in understanding the development and growth pattern of the Mallorca’s hospitality industry, the work of Datamonitor (2011) and Buswell (2011) are incredibly important.

Datamonitor (2011) provides statistics on the expected growth in the hospitality industry with particular focus on the hotels and motel industry sub-sector. The statistics indicate that over 85 percent of the hotel and motels incomes are derived from leisure travellers with business travellers only making a contribution of less than paltry 15 percent (Datamonitor, 2011).

However, Datamonitor (2011) does not provide any statistics on the percentage of incomes earned by hotels and motels in Spain through contributions of tour operators in drawing clientele into the hotel and motels. A scholarly gap emerges via the search of scholarly works on how tour operators affect the operations of hotels in Mallorca.

The work of Buswell (2011) mainly focuses on the historical development of hotels in Spain. Research is constrained by various resources such as money and time. Consequently, it is important to restrain research to a small, but reliable geographical research segment. While studying the influence of tour operators in Spanish hotels, Mallorca is the most preferred geographical research, as “about a quarter of all Spanish hotels are located in the Balearic island with three quarters of these hotels being situated in Mallorca” (Buswell, 2011, p.140).

Furthermore, Buswell (2011) notes that Mallorca has a persistent preference of three-star hotels despite recognition of the benefits accruing from economies of scale. He states that for Mallorca, “by 2001, 55.2% of hotels were three-star, with 60.2% of all hotels places, by 2008, these figures were 52.8 percent and 58.2% respectively, showing that in this century this category has lost some ground” (Buswell, 2011, p.140). Five-star hotels also emerged in 1988 in Mallorca and they received unparalleled public attention.

Considering arguments developed before in the literature review, tour operators are likely to associate themselves with and promote hotels offering splendid services. This aspect may help in inducing customer satisfaction, thus leading to better rating for a given tour operator organisation. The continued persistence of the three-star hotels in Mallorca as stated by Buswell (2011) raises questions whether tour operators consider promoting hotels based on perceived customer service quality and value or actual service quality and value.

In Mallorca, five-star hotels only accounted for 3.6 hotels’ market share by 2008 (Buswell, 2011, p.140). If tour operators promote collaboration of organisations, does it mean that in Mallorca they prefer promoting three-star hotels opposed to five-star hotels. Is the star rating for a hotel not a criterion for promotion? What specific factors do they consider when recommending a hotel in Mallorca for tourists?

Apart from sealing the scholarly gap in the hotels industry studies in Mallorca defined by the needs to respond to these interrogatives, research is also necessary to determine the influence of tour operators in both three-star and five-star hotels in Mallorca. Sealing this gap has practical implications on the development of strategic plans for increasing performance of hotels operating in the Mallorca tourists’ destination.

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Executive Summary

The report entails an analysis of revenue management with regard to firms in the hotel industry. A background study analyzing the performance of the hospitality industry on a global scale is conducted. This enables in the identification of how the hospitality industry is performing. Specific reference is given to Australia.

The main objective of the report is to analyze the challenges that small enterprises in the hotel industry undergo with regard to revenue management. In order to underscore the challenge in a real environment, a case study of Hotel 59 Café which is located in Sydney is conducted. The report entails analysis of customer traffic in Hotel 59 Café and identification of the most active business hours.

This aids in illustrating the correlation between customer relationship and revenue management. The various types of food products that the firm deals with are outlined. In its operation, the firm deals with a wide range of food products due to the multicultural nature Sydney.

However, traditional foods are the most prominent to the customers. The revenue management strategy incorporated by the firm in its quest to maximize revenue is analyzed.

Some of the challenges identified to be the major factors limiting implementation of revenue management in small firms include lack of customer reservation system to enable the firm link effectively with the market.

In addition, complexity of the revenue management tools is also cited as a major hindrance to with regard to implementation of revenue management by small firms such as Hotel 59 Café. Finally a conclusion and a set of recommendations are given.

Introduction

Background to the study

Over the past few years, hospitality industry has witnessed a rampant growth across the globe. One of major factors behind the rampant growth is its lucrative nature (Pizam 65). As a result, the industry has become one of the major contributors of the global economy. This arises from the fact that the industry plays a significant role with regard to job creation.

Globally, it is estimated that there are approximately 8 million restaurants and 300,000 hotels. In addition, the industry has employed approximately 60 million individuals. Its annual contribution to the global economy is estimated to be US $ 950 billion (James1).In the 21^st century, hospitality industry in Australia is amongst the industries which have witnessed a rapid transformation.

This has resulted from an increment in the number of Australians who prefer to take their meals out regularly leading to an upsurge in demand. As a result, entrepreneurs have perceived an opportunity within the industry. This has culminated into an increase in the number of cafes and restaurants being established in different parts of the country. One of these cafes is Hotel 59 Café.

According to James (7), Australian hospitality industry is ranted as the 2^nd largest in the world. Due to its rampant growth, the industry has resulted into creation of approximately 1,200,000 jobs either directly or indirectly in various sectors. During the period ranging from 2003 and 2010, it was estimated that the industry would create additional 325,000 jobs as a result of increase in tourism expenditure.

Considering the competitive nature of the hospitality industry, it is vital for entrepreneurs to ensure that their firms’ operations are effective and efficient so as to attain a high competitive advantage. According to Brown (1), one of the ways through which this can be attained is via incorporation of operation management in the firm’s strategic management process.

Jones and Lockwood (192) asserts that the importance of operation management to firms in the modern business environment is to excel in areas such as lean and responsive production and mass customization. In order for the small restaurants and cafes being established to succeed in the long term as going concern entities, it is paramount for the owners to integrate the concept of revenue management.

Revenue management would enable the entrepreneurs to forecast the customers’ demand hence their ability to plan. Considering the dynamic nature of business environment, integration of revenue management would enable a firm to develop a high competitive advantage relative to its competitors (Tranter, Stuart-Hall and Parker 79).

For example, via effective forecasting of demand, an entrepreneur can be able to set the price for his products or services competitively (Ng 7). Accurate forecasting of demand is paramount in relation to revenue management. According to Lawrence and Kimberg (2009, p.4), the two principal components with regard to performance of firms in the hospitality industry include price and availability.

Despite the importance of revenue management within the hospitality industry, small cafes and restaurants are faced with a challenge in its implementation.

Aim

The aim of the report is to analyze the highs and lows of hospitality management at a smaller scale with specific reference to revenue management.

Discussion

Hotel 59 is a family owned firm which was established in 1999. The firm is located at Kings Sydney. In its operation, the firm offers a wide range of services to its customers. Over the past decade of its operation, the firm has managed to position itself effectively in the market. One of the factors which have contributed to its superior market position is its effectiveness in delivery of quality services (Hotel 59 Café, 2010).

The firm has established a policy aimed at offering customized attention and personal care to its customers. According to Dilworth (2000), provision of quality services plays a significant role in a firm’s success. In order to attain success, the firm’s management team has incorporated the concept of revenue management within its strategic management. This has enabled the firm to attain a competitive edge in comparison to its competitors.

Customer traffic

Effective identification of customers is one of the key strategies of revenue management (Phillips123). This arises from the fact that it enables the firm to develop products which are in line with the customers requirements. In its operation, the firm’s management team has developed an effective operational policy.

During the week days, the firm operates from 11 am until late in the evening and from 10 am till late in the evening during weekends and public holidays. As a result of operating during these hours, the firm is able to maximize on its customer traffic.

During week days, the most active business hours range from 12 noon to 5 pm. This arises from the fact that it is during these hours when individuals usually take their meals. On the other hand, the most active hours during weekends range from 11 am to 7 pm. During this period, the firm is able to maximize its sales by selling to a wide range of customers.

The firm’s location at Entertainment Quarter in Sydney enables a wide number of customers to access the café. According to Summers and Smith ( 6), there is a strong correlation between customer traffic and revenue management. As a result, firms within the hospitality industry are appreciating the concept of customer-centric within their revenue management policies.

In an effort to be profitable, firms within the hospitality industry are focusing on increasing customer traffic. This means that there is a high probability of the firms increasing its profitability level via creation of customer loyalty (Barber, Goodman and Goh 35).

Food products offered

Considering the fact that Sydney is a cosmopolitan city, there are customers of diverse backgrounds. In order to appeal to their tastes and preferences, the firm offers diverse food products to meet the customers demand. In its operation, Hotel 59 Café offers its products and services to both domestic and foreign customers. The food offered reflects multicultural diversity within the society.

As a result, traditional delicacies are the “bread and butter” of the firm. For example, the café sells food products of aboriginal flavors. Due to its location, the firm offers different sea foods such as barramundi, prawns, calamari, snapper and mussels. In line with the multicultural diversity of the city, the firm also deals with Italian, Asian, Japanese and European cuisine.

Revenue management strategy

Understanding customer’s tastes and preferences is paramount in the success of firms in the hospitality industry. This is due to the fact that it enables firms in the industry to sell products which are in line with the market demand. One of the most important aspects which firms in the hospitality industry should consider while implementing revenue management understands the customers’ requirements.

For a firm to be successful in its revenue management it is paramount to integrated marketing concepts. In an effort to increase its customer base, the firm has incorporated the concept of customer relationship management (CRM). This has been attained via implementation of CRM software. The CRM software enables the firm to interact effectively with its customers.

As a result, the firm’s manager is able to understand customers’ behaviors, preferences and traits. For example, through the CRM software, the customers are able to put across their complaints and compliments to the firm’s management team. As a result, it has become possible for the firm to develop strategies aimed at improving its operation basing on the market feedback obtained.

For example, during the recent financial crisis, small cafes in the hospitality industry had a superior performance compared to large enterprises. One of the main reasons behind their performance was due to their effective pricing mechanism. In its operation, Hotel 59 Café’s management team appreciated the impact of the financial crisis on the customer’s purchasing power.

As a result, they were able to sell at a relatively low price while at the same time maintaining the quality of its products. Effective pricing was attained by considering the fact that the firm was able to identify the increment in consumers’ price consciousness as a result of the economic crisis.

This knowledge was attained from the market feedback obtained from the CRM software.This culminated into an increment in the level of customer loyalty.

Lack of customer reservation system

In their operation, restaurants and cafes collaborate with other firms in the hospitality industry such as travel agencies. This enhances their probability of increasing their customer traffic. In order for the collaboration to be profitable, restaurants should have a well implemented Customer Reservation System (CRS).

In their operation, large enterprises are able to establish a strong connection between their CRS and Global Distribution Systems (GDS) such as Amadeus, Galileo, WorldSpan and Sabre. This gives them an upper hand in providing travelers with information relating to the services they offer.

However, most of the small firms such as cafes have not implemented either CRS or the GDS. This limits their operational efficiency since it is difficult to forecast future demand for using data generated by the CRS (Andrews, n.d, p. 170).

Apart from dealing with various food products, the Hotel 59 Café provides accommodation services. Both individual and institutional customers patronize the facility. However, booking the accommodation is done manually.

This is due to the fact that the firm has not implemented an effective customer reservation system. This limits the firm’s efficiency in forecasting demand despite it implementing the CRM software. As a result, the firm is not able to forecast demand effectively thus limiting it from attaining a high competitive edge with regard to pricing.

Complexity of revenue management tools

According to Bardi (170), it is paramount for firms in the hotel industry to implement revenue management in their operation. Revenue management is based on computerized mathematical model. Despite the model being complex, it utilizes a very simple concept. The model utilizes inventory and pricing control mechanism to enable firms in the hospitality industry to maximize profit.

However, application of revenue management concept requires the firms to have well trained staff due to their complexity. In addition, the firm must have up-to-date software and programs to ensure effective implementation of revenue management. For example, one of these programs is RevenueDashBoard which enables hoteliers to forecast demand.

In addition, the system enables the management team to identify need periods and peak thus enhancing their capacity to make decisions which will improve the firm’s level of revenue and profit and hence its competitive position (Bardi, 2006, p.170).This presents a challenge to small firms in their quest to incorporate revenue management.

Conclusion

From the analysis above, it is evident that hospitality industry has witnessed a rampant growth in Australia. As a result there has been emergence of a large number of small scale firms in the industry. However, the success of firms in the hospitality industry is dependent on the effectiveness with which they incorporate revenue management. This arises from the dynamic nature of the industry.

As a result, it is paramount for firms in the industry to be able to forecast future demand. This plays a significant role in the firms’ effort to maximize profit. In addition, revenue management system enables a firm to minimize the cost of its operation while at the same time ensuring that the quality of its services is maintained.

For revenue management to be effective the firm has to consider its customers. This arises from the fact that there is a strong correlation between the customers and its revenue management strategy.

This means that there is a high probability of a firm to increase its revenue management by considering its customers. This is due to the fact the firm can be able to forecast future demand for its products and services hence its ability to make decisions such as pricing.

However, effective implementation of revenue management by firms’ in the hospitality industry is dependent on other variables. The firm should have an effective customer reservation system. Large enterprises in the hospitality industry are in a better position to implement the concept of revenue management.

This arises from the fact that they have sufficient capital to implement the system compared to small firms (Turner and Guilding 278). Effective implementation of revenue management requires a firm to implement an effective computerized programs and software.

Despite Hotel 59 Café implementing a CRM system, its ability to undertake revenue management is limited by the fact that the firm has not implemented the customer reservation system. In addition, the operation of the revenue management system requires a high level of skills which most small firms do not have. This means that implementation of revenue management by small firms is challenging.

Recommendations

In order for small firms in the hospitality industry to improve their competitive advantage, they should consider the following recommendations.

• The firm should source for finances to enable it implement customer reservation system. In order to ensure effective utilization of the system, it is paramount for the firm’s management team to train its employees on how to utilize the system.
• The firm should collaborate with large firms which have a well established customer reservation system. This will increase the probability of the firm increasing its customer base.

Works Cited

Andrews. Sales and marketing a tb for hospitality industry. New York: Tata Mc- Graw Hill, n.d. Print.

Barber, Nelson, Goodman, Ronald and Goh, George. 2010. Restaurants consumers repeat patronage: a service quality concern. International Journal of Hospitality Management, 3.4(2010): 34-45. Texas: University of Texas. Bardi, J.2006. Hotel front office. London: John Wiley and Sons.

Brown, Steve. Strategic operations management. New York: Butterworth Heinemann, 2005. Print.

Dilworth, James. Operations management: providing value in goods and services. Fort Worth Dryden Press, 2005. Print.

Hotel 59 Café. Welcome to Hotel 59. 2010. 12, October, 2010. https://www.hotel59.com.au/

James, Sarah. Hospitality: Australia wide. Sydney: Career FAQS, 2006. Print.

Jones, Peter. & Lockwood, Allan. From the bottom up: operations management in the hospitality industry, in Brotherton and woods: Sage handbook of hospitality management. London: Sage Publishers, 2008. Print.

Lawrence, Kenneth. & Kimberg, Roland. Advances in business and management forecasting. New York: Emerald Group Publishing, 2009. Print.

Ng, Irene. The pricing and revenue management of services: a strategic approach. Washington: Routledge, 2008. Print..

Pizam, Abraham. International encyclopedia of hospitality management. New York: Butterworth- Heinemann, 2005. Print.

Summers, Jan and Smith, Brett. Communication skills handbook: how to succeed in written and oral communication. Milton, Qld: John Wiley and Sons, 2006. Print.

Tranter, Kimberley. A., Stuart-Hall, Trevor. & Parker, Juston. Introduction to revenue management for the hospitality industry: principles and practices for the real world. Journal of pricing and revenue management, 1.2(2008): 78-89.

Turner, Michael and Guilding, Collins. Hotel management contracts and deficiencies in owner-operator capital expenditure goal congruency. Journal of Hospitality & Tourism Research. 34. 4(2010): 478-511.

To summit Everest is the dream of many professional climbers. They greatly appreciate the rugged beauty of the mountain, the challenges that lay before them and they love to experience what it feels like to stand on the roof of the world. There are those who want to climb the mountain in order to obtain some bragging rights because reaching the top is indeed the testament to courage and self-determination.

Moreover, there are those who will climb for the glory and fame and nothing more. These are the people who are willing to pay the price physically and financially to summit Everest. In the early 1990s it became clear that anyone who is relatively fit and can afford to pay a guide can reach the peak.

It was a wrong assumption, a fact learned the hard and bitter way by Jon Krakauer as he barely survived the attempt. His story talks about the importance of leadership, teamwork, goal-setting, and skills are required to conquer Everest.

Problems en Route to the Peak

The first major problem that the climbers had to deal with is none other than Mt. Everest itself.

The Sherpas who lived within the Himalayan mountain range were already familiar with the imposing structure but the rest of the world only knew about its astounding size when Sir George Everest, a surveyor general working for the British government measured the mountain and discovered that it is 29,028 feet or 8,848 meters above sea level (Weintraub, year, p.5).

It is almost five and a half miles high (Weintraub, year, p.5). Walking for five and a half miles on a horizontal plane is a challenge to most people. But imagine doing the same feat vertically and one could begin to understand the physical challenge of climbing Everest.

The second major problem is the thin air that surrounds the regions near the peak. Base camp is already at 17,600 feet and in this altitude human beings will find it difficult to breathe. The next step before summit, the launching pad for the final assault is called the South Col and it is located 26,000 feet above sea level.

In these kinds of altitude Acute Mountain Sickness is made evident by the following symptoms: loss of appetite; nausea or vomiting; fatigue or weakness; dizziness or light-headedness; and difficulty sleeping (Wenk, year, p.36). Climbers need to acclimatize correctly.

The third major problem is the number of climbers. Based on the topography of the mountain and the steep Hillary Steep there should only be limited number of climbers allowed to ascend on a given day. The treacherous weather can easily make a 30-minute walk into a five hour crawl, especially if there is blizzard.

The fourth and most significant problem was the high number of inexperienced climbers that tried to ascend on May 10, 1996. There was a crowd at South Col and more than 30 climbers are about to cause a traffic jam at the Hillary Step on the final day to the summit.

Those who do not possess the basic skills set required to climb an ice covered mountain should not even be allowed to go to Base Camp. But in this case the problem is compounded by inexperienced climbers who were chasing after glory and fame and not mindful of the safety of their team and other people.

Secondary Issues

As if the major problems are not enough there were secondary issues. First of all there was the commercialization of the ascent to Mt. Everest. Due to this factor moneyed clients are putting pressure on the guides to bring them up to the summit at all cost. According to Krakauer one Sherpa-guide was focused on one client because she promised a hefty cash bonus if he can bring her to the top (Krakauer, 1996, p.20).

But the real pressure was placed on the shoulders of the team leaders who also happened to be the owner and major stakeholder of the business.

The first team was led by Rob Hall with his Adventure Consultants team and the second one was led by Scott Fischer with his Mountain Madness team. Krakauer was able to put it succinctly why Hall and Fischer did not turn around when they were already past the deadline set by the both team leaders:

Fischer had a charismatic personality, and that charisma had been brilliantly marketed. Fischer was trying very hard to eat Hall’s lunch, and Hall knew it. In a certain sense, they may have been playing chicken up there, each guide plowing ahead with one eye on the clock, waiting to see who was going to blink first and turn around (Krakauer, 1996, p.41).

The rivalry between the two camps was only part of the issue when it comes to the commercialization of the ascent to Mt. Everest. There were many climbers who invested hundreds of thousands of dollars to climb and they will not be refused.

According to Guy Cotter, a New Zealander who summitted to Everest in 1992 with Rob Hall, “It’s very difficult to turn someone around high on the mountain … If a client sees that the summit is close and they’re dead-set on getting there, they’re going to laugh in your face and keep going up” (Krakauer, 1996, p.33).

The final secondary issue which could well be easily be considered as a primary concern is the lack of knowledge regarding the science of climbing the highest peak in the world. There is a good reason why Rob Hall charged $65,000 per person not including airfare or personal equipment (Krakauer, 1996, p.7).

And the reason is that Hall understands Mt. Everest, the weather, the acclimatization process, the climbers, the Sherpas etc. However, no one has access to the same information, especially a climber attempting to conquer Everest for the first time. The number of dead bodies buried in the ice is a testament to how difficult it is to master this particular mountain.

The Gap

If one will simply focus on Rob Hall’s team, the group with the highest chance of success, one can still see huge gap that separates them from their intended goal and their performance from Base Camp to South Col and finally on May 10 the date of the final ascent. First of all there were inexperienced climbers with the team that forced Hall to spread himself too thin.

He was already preoccupied with the safety of those who are not members of his team but with a large contingent of fourteen people it was just impossible for him to manage them correctly. In addition every time a team member gets sick or has to turn back the whole team can be easily slowed down reduces their overall efficiency.

If these factors were not enough of a problem, Hall was also hampered by the crowd of climbers forcing their way up into the summit. Aside from Fischer’s team there were also a group of incompetent climbers from Taiwan who made an already dangerous climb into a very risky venture.

Furthermore, Hall was unable to make adjustments with regards to perhaps an unforeseen development, the rivalry between the Sherpas. It was a classic display of human nature, one will not work if he sees his co-worker not putting the same effort as he.

Possible Solutions

A scientific study has to be made regarding the perils of climbing Mt. Everest. This is indeed an ambitious project but as long as climbers are allowed to trek this imposing natural wonder then researchers must volunteer or the Nepalese government must sponsor this endeavor.

The most important thing to know is the acclimatization process. According to the author of Into Thin Air: “A human plucked from sea level and dropped on the summit of Everest would lose consciousness within minutes and quickly die … A well-acclimatized climber can function at that altitude with supplemental oxygen—but not well, and not for long” (Krakauer, 1996, p.20).

The last statement is vague and an unacceptable proposition considering that many have already died. There must be a study to determine how the body should be trained to acclimatize itself properly.

If this is an impossible endeavor for the Nepalese government or even non-government organizations to tackle then the next best thing is a regulatory body that will create strict guidelines regarding who can be given permits to climb the mountain. When it comes to group climbs with a paid guide there must be a limit to the number of people that can be part of the team.

There must also be a system to allow only one group or a fixed number of individuals to climb the peak on a single day. It was a ridiculous idea to allow three or four teams to race their way to the top. There should be no race to Mt. Everest. It can only be done by teamwork and sharing of resources. If team leaders will compete and will treat it as a race to boost their ego then they should not be allowed near the mountain.

In the case of Rob Hall his organization should not be limited to the Himalayan mountain range, this means that he must have offices or representatives in key cities around the world such as New York, London, Tokyo, Sydney and Auckland if these are the places where he gets his clients.

He must establish offices here to help assess the proficiency of the climbers. If they cannot pass the test then they must not be allowed to climb Everest even if they are multi-millionaires and can easily afford the $65,000 fee.

Implementation

The best solution is to combine the need for a regulatory body to limit the number of people at Base Camp and South Col and the need for a skill assessment of climbers. The regulatory body must be initiated by the Nepalese government specifically to monitor and manage the South Col assault of Mt. Everest.

This regulatory body must only focus on the fees that they can collect from the climbers but the safety of those who are there. Secondly, there is a need to assess the skills of the climbers. This can be done per group but ideally it must also be under the supervision of the government.

All of these can be achieved by securing the commitment of the Nepalese government that there is no other way but to regulate the business that is climbing Mt. Everest. They can increase the fee if they like but the most important thing is to limit the number of people given access to Base Camp and South Col. Part of their duties and responsibilities is to determine if the guides are skilled enough to bring people to the top.

The government can create a training facility at the base of the mountain and they can use this to gauge the skills of the climbers. The unscrupulous guides who are in it for the money will not be able to bring any clients even as far as Base Camp.

If this is the case then team leaders like Rob Hall and Scott Fischer will have to use part of their earnings to set-up an office where they can assess the capability of their clients. In the same facility they can also train them and educate them on the perils of climbing Mt. Everest, the importance of turn-around time and how to deal with acute mountain sickness. Hall and Fischer could have used this advice a long time ago.

References

Krakauer, J. (1006). Into Thin Air. Outside Magazine.

Weintraub, A. (2001). Mount Everest: The Highest Mountain. New York: Rosen Publishing Group, Inc.

Wenk, E. (2008). One Best Hike: Mt. Whitney. CA: Wilderness Press.

Yield management in hotels

Yield management is a concept that hotels adopt to maximize their revenues by allocating available rooms to the right guests. Yield management has changed the way hotels are managed through the use of websites. The management makes use of structured reward systems.According to a study by Ahmad (2005) a hotel can make more money if the yield management system is properly implemented.

The hotel room supply has increased in the past four decades and this has seen hoteliers gravitating around a differentiated room rate approach for seminars, trade fairs, local customers and groups. This differentiated room rate approach is based on yield management.

The internet has affected room rate in that, hoteliers have diversified room rates during low seasons in an effort to defray major overhead costs. Yield management assists hotelier to set highest prices for a specific time and date.

Through the use of computerized yield management programs, hoteliers are able to understand, anticipate and respond to guests demand and this maximizes profits.

Yield management systems are usually scalable and modular and they thus, they enables hoteliers to manage their businesses through such sites as www.micros.com.

Also, hoteliers can adopt a scaled-down approach to manage their businesses.This approach basically does not require much information technology expertise and hosted remotely and accessed by using the internet(Kapoor.2011, P.260).

Hoteliers have refined their marketing strategies in that, they have created loyalty cards and also developed online reservation sites like the Travel Accor Reservation System (TARS) which enables the availability of common room and common room visibility.

The internet has affected room rate as follows; yield management has enabled market segmentation i.e. through internet, it is easy to identify distinct groups of guests with different behaviors.

Hotel management can control yield management by taking three control actions i.e. developing a feedback plan, providing guideline for the organization and using organization check. With regards to feedback plan, control is aimed at reconfirming that the basic assumptions relating to environment exists.

The objective of this control is thus to confirm the essence of a particular strategy and to ensure that the strategy is running. This control ensures that the yield management system of a hotel is applicable with regards to the target market (Vashist & Ahmed, 2007, P.65).

Guidelines for the organization type of control verify if the organization has taken the right direction that will facilitate attainment of the objectives. This control thus verifies if the profit maximizing strategies of a hotel are still relevant and if they can be applied(Sfodera, 2006, P.11).

Organization check type of control verifies the usefulness of a yield management system in hotel firms and how it interrelates with other systems within the organization.

This control verifies if it is possible to implement the operational conditions of yield management model and also ensures that the staffs who are involved interact with the rest of the hotel firm (Sfodera, 2006, P.11).

The influence of the development of the Internet and associated technologies in hotels

The following are the services and applications of internet and associated technologies in hotels; the use of internet and associated technologies has enhanced online hotel reservations. The proliferation of internet and associated technologies in late 20^th century has led to a wide variety of new marketing tools.

The internet has allowed hotels to come up with their own websites and thus to display detailed information and photos regarding their locations and amenities. This has thus facilitated online booking as guests can book for hotel rooms from anywhere.

Many hotel chains across the globe such as Marriott, Thistle and ACCOR receive most of their reservations through third websites. These hotels do not charge commissions and other charges for reservations.

According to a research done by Bidgoli (2010), hotel firms can significantly reduce their cost of distribution by enhancing their e commerce.

For instance, Marriott hotel chains saves up to US$2 on each online booking by using its own booking engine rather than using an outside booking source. Hilton hotel chains saves up to US$25 on each online booking. This is much higher as compared with their traditional booking agency (Olsen & Zhao, 2008, P.354).

Shopping online for hotel rooms is usually done by either the following two ways i.e. booking through the hotel’s main website or booking through an independent agency.

The main aim of online reservations is to provide consumers with travel information, allow them to make reservations speedily and cheaply (Poole, 2005, P.28). In order to get started, one is required to create his or her profile.

One is required to fill his name, credit card number, address, arrival time and any dietary preferences. This information is usually stored and applied whenever one books hotel reservations.

This process hotel is greatly enhanced when hotels integrate their websites with their Customer Relationship Management function as it offers guests with the ability of storing their profiles and hence enabling the provision of added value elements and personalized products (Samson, 2009, P.84).

Hoteliers can increase their online reservations by advertising their internet presence aggressively. They can also capitalize on collaboration as well as partnership marketing. There are over 40,000 websites from which guests can make a booking for a hotel room.

However, there are challenges that are associated with online hotel booking including brand perception, rate integrity and value of consumers.

With the emergence of Bluetooth technology and wireless devices, customers are able to interact constantly with hotels. This has lead to increased transparency and as a result forcing hotel firms to reconsider their pricing strategies (Shajahan, 2007, P.252).

The use of internet and associated technologies enables hotel firms to search for new customers. The main goal of hospitality firms is to search for new customers. Knowing the needs of customer’s needs and habits enables hotel managers to maintain their client base.

The adoption of the internet usage and associated technologies such as websites has played a great role in changing the management of hotels. Internet and associated technologies refers to a complex web of networks.

Internet services are comprised of e-mail, file transfer protocols, newsgroup as well as other exchange and information transfer services which includes World Wide Web e.t.c (Khosrowpour, 2003, P.504).

Most hotel firms use resource management systems that provide the senior leadership team with the ability to serve their customers well. Internet and associated technology has become more accessible even to smaller hotel firms through consultants and service contractors.

The use of internet and associated technologies has enabled both small and big hotel firms to market themselves nationally and internationally (Hill & Jones, 2007, P.289).The adoption of internet and associated technologies has enabled the hotels to experience growth.

The use of internet and associated technologies enhances excellent customer service. Hotel industry is characterized with a service product. The delivery of excellent customer services is an integral pat of hotel firm’s strategy. In most instances, excellent service is associated with customer loyalty.

Consumers tend to be dissatisfied once the services fall short of expectations. Smart hotel firms aims at delighting their customers by exceeding their expectations (Khosrowpour, 2003, P.504).

In today’s business environment, hotel firms base their successful operations by drawing a lien between the level of service provided to customers by the staff and what the guests actually need.

According to a study by Bowie & Buttle (2004) hoteliers have become aware of the positive impact of the use of internet and associated technologies. Excellent customer service is one of the benefits that may be derived as a result of internet use (Bowie, & Buttle, 2004, 19).

The use of internet and associated technologies in hotels enables e procurement. Hotel firms depend on regular supplies of quality goods and ingredients.E procurement is aimed at integrating the purchasing process of a hotel electronically.

Once the demand is predicted by the use of past data and reservation levels, it is possible to generate orders automatically. Also, departmental heads who are involved in the purchasing process are paid their wages with little or no human involvement. This in turn helps to reduce the distribution costs.

Thus, e-procurement is directed towards ending the hurdles that are associated with inefficient purchasing systems by the use of cost control systems and automated order processing systems (Nguyen, Trawinski & Jung, 2011, P.299).

The internet and associated technologies are used in hotels in search for market information. The use of internet as a means of collecting information is growing rapidly.

The internet has enabled hoteliers to collect information regarding the number of people who visits their Web sites. Some popular hotel Websites attract more than one million visitors globally (Pride & ferrell, 2006, P.583).

This information enables the hotel firms to customize their website, improve their product design, forecast product demand, and profile current customers and to identify new market segments. The information that is collected from Web site is an important aspect as far as planning is concerned.

The internet is itself a wide collection of information with some of the information being static i.e. the information remains constant over time and some is dynamic implying that it can change over time.

Both set of information provides valuable information to hotel firms if it is well collected and analyzed (Mills, 2005, P.24).

The use of internet and associated technologies enhances personalization. Personalization involves maintenance of perfect relationship between hotels and the guests who visit them which could bring profits to the hotels and good treatment to clients with the aim of making profits.

Personalization leads to greater customer retention and growth. Hoteliers have realized the fact that customers perceive value and satisfaction. This is achieved by the use of internet and associated technologies as they have enabled hoteliers to serve customers at minimum cost (Bidgoli, 2004, P.151).

As a result of the use of internet and associated technologies, hotels are able to increase their occupancy rates. The use of internet and associated technologies helps to increase sales in hospitality industry.

A research that was done by stated that internet use on hotels has a significant impact with regards to selling of the hotel rooms (Dwyer, Forsyth & Dwyer, 2010, P.569).

Hoteliers around the world have also realized that by providing their customers with internet facilities in their hotel rooms. The hotel sector is a hotly contested one and so, hoteliers should offer their guests with a distinctive array of internet services including high-speed wireless internet access (Reynold,2003,P.268).

By providing customers with the ability to access wireless internet from their rooms, most hotels have increased their revenues. Hoteliers have recognized the competitive advantage as a result of providing their customers with high-speed wireless internet access in their rooms.

Hotels that offer high-speed wireless internet access for their customers particularly business customers are able to increase their occupancy rates. Also, the provision of wireless broadband services leads to guest satisfaction. Satisfied guests are very beneficial to hotel and they have minimal complaints (Pan, 2000, P.10).

Hotel industry environment

Hotel firms are usually surrounded by forces that emanates from within and outside.These forces are known as business environment and they include microenvironment and microenvironment.

The macro environment is comprised of political forces, economic forces, social forces, technological forces and legal forces (Malhortra, 1997, 114).

Hotel firms require being aware of the internal and external environment in which they operates. Hotels should be aware that the environment has an effect on the development decisions that they make. Hotels should operate in a flexible environment so as to cope with the dynamic business environment.

A SWOT analysis provides detailed concept of the hotel business environment. A SWOT analysis is a short form of strengths, weaknesses, opportunities and threats which have an impact on the strategy development (Lytras et.al. 2009, P.474).

Strengths and weaknesses relate to the internal environment and on the other hand, opportunities and threats entail the external environment. Strengths entail those aspects that the hotel firms are good at doing and include the following; the first strength with reference to hotel industry is brand recognition.

Brand recognition is a crucial marketing strategy. The increase in international travel in the last decade has intensified competition among brand-name hotels. Usually; people prefer hotels that are familiar when they visit foreign countries (Hall, 2006, P.120).

This is because people know the standards of services and the quality of products of famous hotels. The creation of a brand-name hotel can make service or a product to be known to local customers in a foreign nation (Clancy, 2002, P.74). As local people visit other states, they prefer to eat and stay at hotels they know.

For instance, many United States brand-name restaurants are now based in Taiwan and they serve both the local community and international tourists alike. The Taiwanese thus are familiar with the quality and standards of US major hotel chains such as Hilton, McDonald’s and Ramada.

When they travel to US, the Taiwanese prefers to stay in brand-name hotels they are best familiar with in Taiwan. The hotel firms thus enhance international business at local level. This is the reason as to why every hotel seeks to position itself aggressively in international markets (Hassanien, Dale, & Clarke, 2010, P.39-41).

Market share is the other strength of hotel firms. Market share represents the percentage of the entire market output that is produced by a single hotel firm.

Market share plays an important role of identifying the various positions of a firm towards its competitors. Hoteliers make use of the rooms that are readily available while calculating their fair market share (Hassanien, Dale, & Clarke, 2010, P.39-41).

Specific expertise such as research and development of new products and services is strength of hotel firms. New product and service development enables success within the chain affiliated hotels (Paul, 1966, P.366).Most hoteliers have realized the advantage of product development.

The main reasons for product development strategies of hotel firms are mainly for differentiation purposes (Knowles, Diamantis & El-Mourhabi, 2004, P.162).Differentiation enables a hotel firm to distinguish its products and services form those that are offered by the competitors in anticipation that the customers will perceive value.

Due to the intangibility nature of products sold to customers by hotels, differentiation involves creating awareness about the existence of a unique product or service in the mind of customers (Hassanien, Dale, & Clarke, 2010, P.39-41).

Weaknesses entail the shortcomings that make it difficult for a hotel firm to achieve its goals. For a hotel business, weaknesses include the following; Staff turnover is a weakness with regards to a hotel firm. Usually, weak management makes it hard for a firm to attract and retain skilled staff members.

When skilled workers leave an organization, they often leave it at a competitive disadvantage state. Excessive employee turnover in hotel firms is characterized with high costs.

It also affects the hotel’s relationship with guests and thus it is a major weakness. Poor location is another weakness for a hotel business (Hassanien, Dale, & Clarke, 2010, P.39-41).

Opportunities relate to the aspect that enables a hotel firm excels in attainment of objectives and they include the use of internet and associated technologies. Threats entail that aspect that inhibits a hotel firm to attain its goals and includes the entrant of a rivalry firm e.t.c. (Hassanien, Dale, & Clarke, 2010, P.39-41).

Impact of trade unions on hotel management

The law relating to employment is based on a mutual consent. Both the employers and the employees agrees on certain terms such as pay and other benefits.Usually,the role of employees is to carry out their duties in accordance with the contractual terms (Smith, & Thomas,2007,P.2358).

In the past 4 decades, legislation has made some substantial intervention on the employment matter. As a result of substantial intervention, employment has been enhanced in that there are now notice periods, minimum hourly wages, entitlement to leave and holidays among other standard terms.

Discrimination in workplace on basis of age, gender, and race has been kept in check. Despite these protections, inequality exists between the employers and the employees.

This has led to an important role for trade unions in hotel sector. According to a research by Lee(2008) trade unions refers to an organization that is comprised of employees and it is concerned with organizing and representing employee’s interests in their places of work and society.

Trade unions have collective strength and thus, they are concerned with negotiating good terms on behalf of the employees. Indeed, trade unions have focused on the difference that exists between those at the apex and those at the floor of earnings ladder.

The issue of pay inequality has been the main focus of labor unions in hospitality industry. Efforts have been directed at increasing the wages for those staff members at the base of organizational hierarchy (Forsyth & Stewart, 2009, P.123).

Most of hotels employees have been registered as members of a trade union irrespective of the country of their origin. In some countries, the constitution allows the employees to go on strike as long as they adhere to the rules and regulations in labor laws.

In regard to this, the management of these hotels and resorts are usually left with no option other than to comply and increase the employees’ wages (Ramlogan, R& Persadie, 2004, P.231).

Labor unions can also cause market distortions by raising employee’s wages beyond competitive levels.

Conclusion

The use of internet and associated technologies has played an important role of enhancing the hotel’s procedures.

Both employees and managers perceive the adoption of internet and associated technologies as an important business tool that facilitates communication with guests and thus providing the hoteliers with an opportunity of understanding the needs of customers.

Studies such as that of Pan (2000), suggest that the use of internet and associated technologies enhances excellent customer service which in turn leads to customer loyalty. Internet and associated technologies is often used for advertising and making reservations.

The internet and associated technology has become an integral tool of communication and Marketing among the hoteliers. Hotels which do not embrace the use of internet and associated technologies risk losing their competitive advantage.

On contrary, it is important to conclude that ,there are cost and time drawbacks as a result of the use of internet and associated technology in hotel firms. Usually,much time is wasted in training employees on the use of internet and associated technologies.

In order to maintain personal touch with the clients, much time and cost are involved. Also; the use of internet and associated technologies has not loved up to its promise.

This is due to the fact that, as clients become accustomed to making reservations via the internet, there are security concerns with regards to data and information stored on the internet.

The use of internet and associated technologies becomes beneficial if used well in providing the customer with the information that they are in need of and that which will benefit the hotel. Hoteliers should also be willing to respond to feedbacks from customers. They should lean towards taking a personal approach.

Yield management has several benefits such as it enhances price differentiation, it enhances strong customer relationship marketing e.t.c.Finally, trade unions have continued to advocate for highest wages for hotel staff across the globe.

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