Category: Tourism

Introduction

Decades ago, before the advancement of technology and internet use, customers were constrained to exchanging information with their travel agents, families or friends. Information about the destination was restricted and based on personal perception (Hardin & Kim, 2010). Hardly were the customers able to correlate diverse reviews about a destination. Even though times have shifted, the significance of word to mouth recommendation are still one of the considerations before making a travel decision (Starkov & Mechoso, 2008).

World of a word to mouth has even gained more importance with the increase of communication propelled by the internet. Hotels websites connect customers with each other and make information and reviews about the hotels, restaurant and vacation rentals reachable to the public (Hardin & Kim, 2010; Noone et al., 2011). Hotel websites also allow customers to compare different reviews of past customers, especially on hotel ranks, problems, and benefits (Starkov & Mechoso, 2008).

Consequently, customers can compare similar hotels and restaurant at the desired destination with each other (McKay, 2010). Besides, hotel websites host forums on travel-related topics, thus making the gathering of information to be endless (McKay, 2010). Although hotels are gaining numerous profits with social networking, they have to pay the price of losing control in managing social media (McKay, 2010).

Hotels and restaurants may be subjected to negative publicity in the event that they do not carefully observe consumer action on their social networking platforms. The proposed study seeks to investigate the impacts of these reviews on hotels and restaurants. Besides collecting traveller’s opinion on the credibility of online reviews when planning towards a travel destination, the proposed study will examine its influence on travellers’ choice of a possible travel destination. The proposed study has hypothesized the need for the hospitality industry to protect itself from adverse effects propelled by online reviews.

Scope of the study

To counter issues related to social media, a few lodgings have set up full-time conferred staff just to screen customer substance to address and resolve issues raised through all social platforms. Although hospitality industries are facing these issues, the travellers and tourist should be mindful of deceitful reviews set up by some organizations. Organizations have utilized their own particular representatives or promoters to compose decent reviews for themselves, and negative audits for their rivals (Mansfield & Pizam, 1999; Edosomwan et al., 2011).

A full confirmation system for making credibility of the review on a social media platform will consequently be exceptionally helpful for clients. According to Monsonhaefel, (2003), before opening a new account, “amazon.com” prefers its customers to have accounts with other companies; Hotmail or Yahoo. Monsonhaefel (2003) prescribes enlistment of users’ accounts with their Visas since it would make it troublesome for a solitary user to possess more than one account. Nevertheless, there are recurring incidences with false reviews that need to be addressed. The proposed study will allow travellers to give recommendations that will help secure the image of the hotels and restaurant so as to figure out the preferred choice for managing false hotel reviews. Therefore, the respondent will have a chance to pinpoint some of the challenges associated with online reviews hence availing a practical solution to hotel management.

Background discussion

The service industry is currently depending on social media to reach out to customers. It is practical for the tourism sector to recognize this and adjust to these difficulties created by marketing and communication rapidly. Travel and hotel review websites have increasingly grown to be influential in recent times. They have become so significant that they have a negative and positive impact on business. Hotel management, handling online reviews, has also become increasingly important. However, because of how technology and the internet are currently shifting things, there are many challenges on the horizon. Managers will need to be able to adapt to stay on top of the word of mouth communication so as to control its effects. With the Millennial generation becoming part of the workforce and a developing consumer base, it is sensible to infer that the business that utilizes online networking to their advantage are the ones that will flourish in the near prospect (Loooker et al., 2007).

References

Edosomwan, S., Prakasan, S. K., Kouame, D., Watson J., and Seymour T.(2011). The history of social media and its impact on business. Journal of Applied Management and Entrepreneurship, 16(3), 79-91. Web.

Hardin, A., & Kim, J. (2010). The impact of virtual worlds on word of mouth: Improving social networking and services in the hospitality industry. Journal of Hospitality marketing and management, 19(7), 735-753. Web.

Loooker, A., Rockland D., & Taylor-Ketchun, E. (2007). Media myths and realities: A study of 2006 media usage in America. Tactics, 10, 21-22. Web.

Mansfield Y., & Pizam A. (1999). Consumer behavior in travel and tourism. New York: Haworth Press. Web.

McKay, L. (2010). The hospitality Suite. Customer relationship management, 14(9), 30-34 Web.

Monsonhaefel, R. (2003). Amazon.com reviews are a farce. Web.

Noone, B.M., Meguire, K.A, & Rohlfs, K. V. (2011). Social media meets hotel revenue management: Opportunities, issues, and unanswered questions. Journal of Revenue and pricing Management, 10(4), 293-305. Web.

Starkov, M, & Mechoso, M. (2008). Best practices on Monitoring Hotel Review Sites. Hospitality businesses Strategies, New York. Web.

Abstract

Abu Dhabi has become a leading tourist destination in the Middle East. Abu Dhabi is one of the most populous and developed cities in the United Arab Emirates. Destination branding is a powerful concept that can improve business tourism in Abu Dhabi. Some strategies such as promoting security, creating the best destination brand, and designing a memorable slogan can improve business tourism in Abu Dhabi. This paper explains how destination branding can make improve business tourism in Abu Dhabi.

Introduction

Destination branding helps societies, nations, and communities differentiate themselves from other countries offering similar attractions. The concept improves the way consumers perceive various destinations. Destination marketers “should create the best destination logos or names in order to achieve their goals” (Qu, Kim, & Im, 2010, p. 468). Destination branding can make a city or location memorable. This paper explains how destination branding can improve business tourism in Abu Dhabi.

Using Destination Branding to Improve Business Tourism in Abu Dhabi

Business tourism is becoming a common practice in many societies across the globe (Qu et al., 2010). Some of “the common activities associated with business tourism include exhibitions, meetings, and conferences” (Low, 2012, p. 18). Business tourists work for various government agencies or organizations. The Middle East is currently becoming one of the best business destinations in the world. Business tourism is a major industrial practice in many parts of the globe. Most of “the targeted tourists tend to have different motivations” (Baker, 2012, p. 28).

Destination branding is a powerful tool that can make Abu Dhabi the center of business tourism in the region. The first approach “towards successful destination branding is creating a unique name for the city” (Qu et al., 2010, p. 261). The destination marketers in Abu Dhabi should “inform the world about the services, transportation networks, accommodation facilities, and sea harbors in the city” (Low, 2012, p. 47). The approach will also differentiate Abu Dhabi from its rivals across the Middle East. Abu Dhabi offers the best environment for international meetings. The marketers should inform people about these facilities and services in order to improve the level of business tourism.

Destination branding entails the use of every aspect associated with a location. The approach informs every person about the city’s unique features. Abu Dhabi offers “some of the best archeological evidences and artifacts to different visitors” (Low, 2012, p. 38). The islands of Abu Dhabi continue to attract more tourists. The city also offers the best landscapes and sceneries. Abu Dhabi’s mountains and caves can attract more tourists from different parts of the world. These features should be part of the city’s branding strategy.

The marketers should use various methods to differentiate Abu Dhabi from every other city in the United Arab Emirates. Abu Dhabi boasts of many economic activities and industrial practices. Abu Dhabi offers educational opportunities to individuals from every part of the world. Abu Dhabi hosts various sporting events and arts (Low, 2012). The marketers should use these features to inform more people about the strengths of this city. This practice will make Abu Dhabi a leading business tourist destination.

The marketers should use a powerful symbol or slogan to improve the level of business tourism in Abu Dhabi. The slogan should portray every unique image associated with this city. The marketers can use this slogan: “Abu Dhabi: The City Where Every Good Business Happens”. This slogan will ensure every visitor remembers this city (Baker, 2012). A city logo will also ensure the marketers achieve their goals. The logo should portray every good aspect associated with Abu Dhabi.

Abu Dhabi cannot become a successful tourist destination without the required facilities. Some of these facilities include airports, road infrastructures, and seaports. Abu Dhabi International Airport (AUH) connects the city to the world. The city should “expand its public transport in order to support every location in Abu Dhabi” (Low, 2012, p. 58). This approach will promote the level of business tourism in Abu Dhabi (Baker, 2012).

The internet can play a significant role towards improving business tourism in Abu Dhabi. Social networks can promote the idea of destination branding for Abu Dhabi. Such social networks inform more individuals about the features, hotels, services, and attractants that make Abu Dhabi an outstanding tourist destination. This practice will ensure every person is aware of these features. The approach “will increase the level of brand preference and make Abu Dhabi the best tourist destination” (Low, 2012, p. 98). The marketers should monitor the effectiveness of their branding strategies.

Destination branding goes together with security. The Middle East is always associated with insecurity and terrorism. The United Arab Emirates should embrace every security measure to attract more visitors. The marketers “should consider the concept of place-making through the best urban design” (Qu et al., 2010, p. 472).

Conclusion

The above recommendations will make Abu Dhabi one of the best business destinations in the United Arab Emirates. The personality of Abu Dhabi as a tourist destination will establish the best relationship with every business tourist. The strategies “will make Abu Dhabi a delightful, friendly, cozy, and attractive city in the Middle East” (Low, 2012, p. 57). The marketers should welcome new tourists from different parts of the globe. These marketers should consider the above proposals in order to improve business tourism in Abu Dhabi. The approach will make Abu Dhabi one of the best destinations in the region.

Reference List

Baker, B. (2012). Destination Branding for Small Cities. New York: Creative Leap Books.

Low, L. (2012). Abu Dhabi’s Vision 2030: An Ongoing Journey of Economic Development. New York: World Scientific Publishing Company.

Qu, H., Kim, L., & Im, H. (2010). A model of destination branding: Integrating the concepts of the branding and destination image. Tourism Management, 32(1), 465-476.

Executive Summary

The behavior of customers when it comes to online room reservation is an issue that has attracted the attention of many leading multinational hotel groups in the modern market. The global hospitality industry is increasingly becoming competitive, and it forces firms to find ways of dealing with stiff competition. In such a competitive industry, it is critical for a company to understand the changing trends and be able to adjust its operations in line with the market changes.

Traditionally, hotels relied on travel agents and regular customers to ensure that their rooms were fully booked. However, the emergence of online room reservation has completely changed the mode of operations in this industry. The internet has made shopping easy for clients. They no longer have to visit brick-and-mortar stores to purchase what they need. In the hospitality industry, these customers no longer have to visit hotels or make phone calls to agents to book rooms.

New technology has emerged that enables them to view products, which are available in the market, the prices charged, quality promised, and any other detail they may need when planning to travel. They can make their advanced booking online at the comfort of their offices or homes. The popularity of online room reservation has been witnessed not only in developed economies such as the United States and the United Kingdom but also in the emerging economies of Asia and Africa. Time has come when multinational companies have to take seriously the opportunity presented in the online market.

For multinational companies to take full advantage of the opportunities in the online market to boost their sales, they have to understand the online behavior of their customers when they make online room reservations. They should know the factors that influence their decision-making processes. They need to know what makes them choose a given product and not the other. This information is critical because the online market is proving to be very important for multinational hotel groups.

Most of the new clients in the online platform want different products based on their unique demographical factors. Factors such as customers’ age, gender, social status, race, religious, cultural beliefs, among other demographical factors influence their decision-making process. The problem is that a lack of physical interaction between a company and its customers make it almost impossible for the companies to know these needs. There is also the desire for these firms to prove to their clients that they understand and are capable of meeting their desires. As such, these firms are forced to use available means to collect data about the online behavior of their clients to identify what they desire. Some of them will be interested in low-cost products. Others are concerned about reliability than anything else when making their purchases. Some of them place a massive emphasis on quality while others love adventure. The company must understand the uniqueness of these needs so that it can proposition its brand and products in the appropriate way.

This paper is divided into five chapters. The first chapter of the paper is the introduction. It provides detailed background information about customer behavior when it comes to the online room reservation. It describes the emerging trends in this field and the hospitality industry. It also explains how firms can find ways of managing the market forces to remain operational. The first chapter provides a rationale for the study, detailing why it was important to undertake the project and the potential beneficiaries. It outlines the objectives and research questions for the study. The second chapter provides a detailed review of the literature on this topic.

The researcher appreciates that other scholars have done some work in this field of study and as such, it is important to appreciate their work and use it as a basis for this study instead of duplicating already existing information. The chapter discusses various theories and ends with the formulation of the research hypothesis. The third chapter provides a detailed review of the methods used in this research project. It starts by explaining the research philosophy, research approach, and research strategy that were used. It then describes the method used to sample participants and collect data from them. The design of the questionnaire used to gather the data from the respondents is also explained in this chapter. The chapter ends with the explanation of validity, reliability, and ethical issues in this project. Chapter four provides a detailed analysis of the primary data that was collected from the field. The chapter discussed the research questions and hypotheses based on the primary data gathered from the field. The last chapter provides the conclusion and recommendations.

It is clear from the analysis of both primary and secondary data that evaluation of customer behavior concerning online room reservation is a critical activity for the multinational hotel groups. The data from both sources show that these companies must know what their clients need in the market to ensure that they can provide it in the best way possible. One of the best ways of doing that is to monitor their keywords in their online searches.

The study strongly recommends that they should use Google analytic tool to get such data. The tool will help these firms in understanding the most common keywords that customers use in their online searches when they want to purchase hotel products. Words such as cheap, quality, adventure, exclusive, private, family-oriented, and so on will point out what these customers are looking for when planning to make their purchases. The tool will also explain their behavior regarding how they prefer purchasing their products. It will be possible to know whether they prefer making their purchases directly with the service providers or if they prefer using online travel agencies. The information that is collected from them should be used to develop products and promotional messages for the clients.

Introduction

Background of the Study

Technology has transformed the world into a global village, and the business community is keen on taking maximum advantage of the emerging trends in the market. Massive improvements that have been witnessed in the field of transport and communication have been of great benefit to multinational corporations. According to Line and Runyan (2012), e-commerce is now a major business trend that cannot be ignored by the business community. In most of the European countries, the size of the middle class has been on the rise. Most of them spend a lot of their time in their work trying to achieve success and climb the career ladder.

They have limited time to spend shopping around for what they need. E-commerce has been a major relief to most of them because they can now purchase most of the items they want in the comfort of their offices or houses. They no longer have to visit the brick-and-mortar stores to make their purchases. It means that they have more time to spend in their offices or at home with their families. According to Epps and Trebilcock (2013), when the concept of e-commerce first emerged, many doubted its practicality, especially the large multinational corporations. However, it is now clear that the online market is very relevant to small, medium, and large corporations in modern society. Many people are now making their purchases online because of its efficiency and the limited time they have when planning to make their purchases. That is why many companies are now giving e-commerce special attention as they try to take full advantage of the opportunities it presents to them.

The hospitality industry is one of those that have been significantly affected by the emergence of e-commerce. In Europe and North America, many people- especially the middle class and the rich- value regular vacations every time they are off work (Pappas & Bregoli 2016). They prefer visiting places away from their hometown. They visit Africa, parts of Asia, Europe, or North America. It means that they need to book hotels where they can spend time whenever they travel. In the past, these tourists relied on agents. However, the services of the agents were not reliable (Zolait 2013). The agents overcharged their clients and sometimes offered substandard services.

When online room reservations emerged, most of the tourists and business travelers saw a new opportunity. It was a less costly, more convenient, and simpler way of booking hotel rooms. It also eliminated the geographic barrier that existed in the past. Today, more rooms are booked through online platforms than through traditional agents (Matias, Nijkamp & Romão 2016). Online room reservation is currently generating attractive revenues for many major hotels operating in various parts of the world. That explains why many multinational hotel groups are currently giving special attention to online room reservations as they try to ensure that they remain competitive in their operations.

Evaluating customers’ behavior when they are making online room reservation is one of the areas that many major multinational hotel groups currently focus on in their operations. The nature of doing business in this industry has completely changed. These firms know that the era when they had to wait for visitors to come to their hotels is long gone. They now have to take the initiative of reaching out to potential customers wherever they are and guiding them to their facilities. It means that these hotels have to monitor the behavior of their potential clients to determine how to position their products. Some of these customers look for affordable rooms.

Others emphasize more on the quality of the services they require and pay less attention to the price (Peris-Ortiz & Álvarez-García 2015). Some of these clients look for specific meals when visiting these hotels. Some want to book hotels where the needs of all of their family members, including their infant children, will be fully met. Other tourists want adventure whenever they visit a place. Most of these customers currently prefer paying once for all the services they will get when they visit a given place instead of having to deal with so many agents. Multinational hotel groups can learn about the needs and desires of these clients by monitoring their online searches. Every time these customers go online, these companies can know what they are looking for in the market. Monitoring their online behavior is the best way of knowing how to package various products in a way that best meets their desires. In this paper, the focus will be to evaluate the customer behavior of online room reservations.

Research Problem

Multinational hotel groups around the world are currently faced with stiff market competition as new firms emerge in the market. Hilton Worldwide Holdings, InterContinental Hotels Group, and Marriott International / Starwood Hotels & Resorts are some of the top multinational hotel groups in the world today (Katsoni & Stratigea 2016). These multinational hotel groups are finding themselves in very challenging situations, as they have to deal with emerging competitors in this market. In the past, most of these companies relied on advertisements and close relationships with top agents within this industry to have a regular flow of visitors into their hotels. Although the advertisement is still important in promoting their brand, to get regular customers, they have to go beyond it because of the changes that have happened in the global market.

A report by Mittelhammer (2013) shows that many people currently rely on the internet to get the information they need. Whenever one is planning to travel, they often go online to understand the local forces in the countries they will visit. Some of the important information they look for on the internet include security, ease of movement from one place to another, sites to visit, and places to avoid, and weather conditions so that they can know what to wear. Alsos, Eide, and Madsen (2014) say that these tourists or business travelers also use the internet to compare the cost of their travel. They rely on the internet to get information about varying costs of air ticket, cost of hotels, and other services they require before, during, and after their trip.

In the past, marketing researchers had to engage customers through interviews to get to know about their changing needs in the market. However, Louw (2012) says that sometimes clients gave misleading information during such interviews because of their desire to avoid being considered controversial based on society standards. It means that they would say they prefer service A while the truth is that they prefer service B.

A firm would then spend many resources making service A available while in the real sense the market demands for service B. The emergence of search engines has made it possible for marketers to get the truth about what their clients need without engaging them in interviews. Monitoring the online behavior of customers is the best way of knowing what they want in the market. In many cases, these marketers look for key terms in their searches. Terms such as cheap, affordable, high quality, reliable, readily available, flexible, and accessible help in knowing what they want in the market. A client who is interested in first-class services in a hotel will rarely focus on price. Keywords used by such a client would include quality, flexible, exclusive, and reliable. On the other hand, a client who is interested in relatively cheap hotel services would use terms such as affordable, basic, and discount when making online searches.

Multinational hotel groups must recognize these new trends when evaluating customer behavior. It is unfortunate that some of these top global hotels are not giving this issue a proper priority. They still fail to understand how important it is for them to know how to track down specific online customers and position to them products that meet their needs in the best way possible. According to Albarran (2017), even those customers interested in basic hotel services prefer having quality products. They may be thrilled if they are presented with an opportunity to use the services offered by top brands in the hospitality industry.

During off-peak seasons in the tourism industry, these hotels can come up with products for the market segments that often believe they can only afford cheaper services. By monitoring their online activities, the company can determine their number and buying capacity. The firm can then come up with products that they can offer to them in a way that will neither hurt their profitability nor harm their brand in the market (Zeiser 2015). Their goal will be to increase their revenues without tainting their prestigious brand. Monitoring online activities will also help these firms to engage with other companies offering supplementary services in the industry. For instance, when it is established that some of the visitors will be interested in visiting a given park or scenery, the hotel can arrange with the local tour guides so that these services can be made available as soon as they arrive. Through this study, the relevance of evaluating customer behavior when making an online room reservation will be outlined to enable the multinational hotel groups to know why it is important.

Research Aim and Objectives

Marketing is a broad field, and when one is conducting research, it is appropriate to come up with a clear research aim and objectives to guide the process. Having a clear research aim ensures that the study remains focused on a specific issue. On the other hand, setting research objectives enables a researcher to understand the type of data that should be collected from the field. The primary aim of this research project is to evaluate customer behaviors when making an online room reservation with respect to multinational hotel groups. The following are the specific objectives that must be achieved by the end of this project:

• To determine what visitors look for when planning to make an online room reservation.
• To identify factors that define what online visitors purchase whenever they want to make an online room reservation.
• To come up with ways through which multinational hotel groups can monitor customers’ behavior and determine their needs
• To explain how multinational hotels can use the information they mine in the online platform to define their products.

Research Questions

Online consumer behavior is a very popular topic in the field of marketing today because of the increasing relevance of e-commerce. According to Inversini and Masiero (2014), many researchers have tried to explain how the online behavior of customers can be monitored and the information used by firms to define their operations in the market. In this study, it was important for the researcher to evaluate the buyer behavior of online room reservations. This is a narrow topic within the larger field of online customer behavior. It was important to come up with specific questions that can help in collecting data within that set frame. The following are the questions that guided the process of gathering both primary and secondary data:

1. What do visitors look for when planning to make an online room reservation?
2. Which factors define what online visitors purchase whenever they want to make an online room reservation?
3. What are the ways through which multinational hotel groups can monitor customers’ behavior and determine their needs?
4. How can multinational hotels use the information they mine in the online platform to define their products?

Significance of the Study

According to Browning, So, and Sparks (2013), research is often a time-consuming process that often requires funding to be completed successfully. As such, it is important to explain its significance to justify the need to conduct it. In modern society, the size of the middle class at the global level is one the rise. The ease with which information is available also makes many people interested in traveling the world.

It means that the demand for the products offered by the hospitality industry is on the rise. The trend is not just common in developed economies such as the United Kingdom and the United States but also in the developing countries of Africa where many tourists visit to see the wildlife. However, as the demand for these products keeps rising, the number of firms offering the same products is also increasing. The level of competition in the market today is far greater than it was two decades ago. Azevedo (2013) says that competition in the hospitality industry is so stiff that only the best and the strongest can survive.

Revel Casino Hotel is a good example of how ruthless the market in the hospitality industry is, especially to firms that fail to understand and properly plan their operations. Failure to master the market may have a devastating impact on the ability of a firm to achieve success. That is why multinational hotel groups are keen on understanding the changing market forces and how to adapt to remain successful.

In modern society, customers often prefer making their purchases online. Most of the young and middle-aged residents of the United Kingdom spend a lot of time on the online platforms (Yang, Zhong & Zhang 2013). Customers find it more convenient to purchase the products they need through the online platform than visiting brick-and-mortar stores. As such, many companies are now shifting their focus to e-marketing. They have realized that the best way of reaching their clients is through various online platforms. Leading hotels are also keen on using online forums to reach out to their customers (Adeline & Wai 2013).

This is specifically so because traditional agents that they relied on to get visitors are no longer relevant. Customers now prefer making direct online bookings. However, many of these hotels still find it challenging when it comes to understanding the needs of the clients in the online platform. Unlike before when they would directly engage their customers and determine their expectations, these firms now have to determine their needs by monitoring their online activities.

This research project will be very important to multinational hotel groups operating in Europe and other parts of the world. It will explain how these companies can monitor the online behavior of customers, especially during room reservations. Through this paper, it will be clear what these firms should look for when customers are online. It will describe factors that determine the final decisions that buyers make when booking hotel rooms. It will also be possible to classify customers into clusters based on social status, cultural needs, age, gender, and other demographical factors that define their purchasing behavior. The recommendations that are provided in this report are very helpful to players in this industry, especially at a time when the competition is getting stiffer. Future scholars in this field will also find the document informative.

Report Structure

It is important to explain the structure of this academic report. The first chapter is the introduction that describes the background of the study, research problem, research aim and objectives, research questions, and significance of the study. The second chapter is a detailed review of the literature and analysis of relevant theories to the study. The third chapter explains the methodology of the report. It outlines the sources of data, sampling method, and sample size, the data collection approach, and the analysis of the primary data. Chapter four is a detailed analysis of the primary data gathered from the respondents and a discussion of the findings. Chapter five provides a summary of the findings and a series of recommendations that should be considered by players in the hospitality industry. The last section of the paper is a list of references used in the research project.

Literature Review

Chapter 1 has provided a detailed background of the study and objectives that should be achieved by the end of this project. In this chapter, the focus will be to review what other scholars have found out in their studies when researching this topic. According to Moran (2015), the primary goal of a piece of research is to add new information to the existing body of knowledge. It is not prudent for a researcher to reproduce information that is already available in the existing literature. That is why it is important to start by evaluating the existing information through a literature review.

According to Baack, Harris, and Baack (2013), evaluation of online customer behavior in the hospitality industry has attracted the attention of many scholars around the world. The hospitality industry is currently one of the most competitive industries in the global market. The fact that this industry relies on holiday seasons to make attractive profits has forced most of the players to find effective ways of surviving during off-peak seasons. That is why they are looking at every possible way of attracting both local and international visitors. It has become evident that many customers now go online when looking for the products they wish to purchase. That is why marketing in the hospitality industry has changed completely.

According to Ballantyne and Packer (2013), marketing in modern society is very different from what it was about five decades ago. The scholar says that before the 19^th century, firms did not have to worry about marketing. In fact, it was a foreign concept to many large companies by that time because the competition was limited. The focus of many companies at that time was to manufacture high-quality products and make them available in the market. Their primary concern was production. However, that has been changing over time as firms continue to emerge in the same market offering the same products.

It became apparent that firms had to fight for the market to survive. Knight (2013) says that marketing in modern society has become so important that firms are spending billions of pounds to make their brands visible. When a customer is faced with a situation where he or she has to choose from two or more products, one of the factors that often guide their decision is brand popularity. Brands such as Hilton and InterContinental have gained massive popularity in the hospitality industry, and it is easy for customers to choose them over other existing brands. The visibility of a brand in the market is important when a firm is facing competition from new entrants offering relatively cheaper products (Papathanassis, Breitner & Groot 2014).

It is possible for buyers to ignore the price and opt for a product they trust. It is the reason why marketing as a department and a role within these large multinational hotels has increasingly become important. Given the dynamism of the market that has been witnessed over the years, the time has come when marketing has to take a completely different approach from the one it has traditionally taken. Monitoring the online behavior of customers has become a critical activity that these companies cannot ignore.

E-commerce in the Hospitality Industry

The emerging technologies in the field of communication have transformed business operations in the hospitality industry (Escobar-Rodríguez & Carvajal-Trujillo 2012). In the past, the industry relied on the brick-and-mortar business model to reach out to its customers in the market. However, that is no longer the case in the modern business environment. The international hospitality industry now heavily relies on e-commerce more than it ever did before.

According to Carvalho (2015), the customer base is increasing, but the number of competitors is increasing too. It means that players in the industry must find ways of doing their businesses differently to ensure that they remain relevant. E-commerce offers a unique platform that many multinational hotels cannot afford to ignore. Most of the customers that these companies target are always online. Young travelers and the middle-aged people who want to tour the world or make business trips often spend a lot of time on the internet as they try to understand their destination, what to expect, and how to get the best deals. Even the elderly people who were thought to be less active on the internet currently go online when they plan to travel to help them choose the best deals in the market.

The hotels have also found e-commerce very beneficial, especially in terms of improving their profit margins. In the past, they had to share their profits with the agents that directed visitors to their hotels. These agents acted as intermediaries, benefitting from both the hotels and the customers. Blythe (2013) says that the agents reduced the profitability of the hotels while at the same time making the services so expensive for the visitors that many opted not to travel.

The emergence of e-commerce has helped many hotels to eliminate the need to rely on these agents. Although these agents are still active and cannot entirely be ignored by these hotels, they are no longer as powerful as they used to be in the past. Many hotels are now receiving direct clients who visit their website and book for the products they desire. These hotels get to enjoy the profits because they no longer have to share it with the agents. The customers also enjoy reduced costs because they are not paying the intermediaries anymore. They can also benefit from the discounts that are offered by the hotels.

According to Hung and Law (2011), to achieve success through e-commerce in the hospitality industry, a firm must master its buyers’ needs. Understanding clients’ expectations are not only important in the hospitality industry. It is also very important in any other business sector. Customers currently have numerous choices to make whenever they want to purchase products in the hospitality industry.

They will always look for the product that meets their needs in the best way at the least cost possible. Hsu (2012) also notes that the dynamism in this industry is another issue that these companies cannot ignore. A product that is popular in the market today may not be popular a few years to come. People of different age groups, gender, social status, ethnicity, religion, and educational levels may also have varying demands when looking for hospitality products. It means that any successful hotel must be capable of understanding these varying expectations and be able to meet them. The elderly will place their health, safety, security, and comfort ahead of other needs. On the other hand, the younger generation would place adventure and happiness ahead of factors such as safety and security (Egger, Gula & Walcher 2016).

It does not mean that the younger generation should be offered adventurous products at the expense of their security. Similarly, the elderly should not be offered safe and comfortable products without considering their happiness. The two extremes must be balanced in a way that will ensure that they are happy with what is offered to them. According to Oplatka and Hemsley-Brown (2012), in some cases, customers may opt to use online travel agencies believing that they have a better capacity to meet their varying needs in the most appropriate manner. These multinational hotel groups should, therefore, maintain a close working relationship with these online travel agencies.

Online Consumer Decision-Making Process

According to Lee, Guillet, and Law (2013), it is common for a customer to make decisions when planning to purchase a given product in the market. This is specifically so when these customers are presented with a number of options in the market. They have to evaluate the options presented to them and select the most appropriate ones based on their needs at a specific time. Chong (2013) says that various factors often influence the decisions that customers make every time they plan to purchase a product.

It is important for any business entity to know the decision-making process of their clients. As explained above, monitoring their searches and the websites these potential buyers spend more time on help in understanding their needs. Once a customer makes a purchase, it is important to investigate factors that influenced his or her decisions (Papathanassis, Lukovic & Vogel 2012). Of interest will be to determine if their decision was influenced by pricing, quality of the product, reliability, loyalty to a given brand, impulse buying, knowledge of the product or lack of it thereof, or a combination of these factors. Such pieces of information will help a firm to know how to target such customers.

The relevance of Social Media

Social media is another online platform that has increasingly become relevant in the modern-day business platform. According to French and Gordon (2015), the emergence of the social media platform has had a revolutionary impact when it comes to the field of marketing. At first, many multinational corporations did not consider social media as a major platform through which they could reach out to their audience and monitor their activities related to their pre-purchase and post-purchase decision-making. For instance, when Facebook was started, many companies considered it a platform for youths to interact and share their ideas.

It never occurred to them that the platform had the capacity of becoming a major advertisement platform. However, the changes witnessed over the past one decade have strongly demonstrated to the global community that these social media platforms are very appropriate when it comes to tracking down online activities of customers and reaching out to them with relevant messages that will convince them to purchase products of a given company. Facebook marketing, Twitter marketing, and YouTube marketing have become very popular ways of reaching out to customers.

Major hotel groups have come to appreciate the significance of social media marketing and are now investing heavily in various platforms as they try to promote their brands. According to Cheng and Huang (2013), Facebook currently has over 1.94 billion active users who visit the website at least once a month. The majority of its users are teenagers, young adults, and middle-aged people. In fact, Heesen (2015) says that about one billion people visit this website on a daily basis.

They share their plans, concerns, and issues about their daily life activities on their Facebook pages. It is common to find cases where one shares with friends and the public about his or her intended trip to a given place. Major hotels are now very active in social media, trying to find out what these potential clients want to purchase. Many of these Facebook users often ask their online friends for advice when they are planning to travel. They ask about the best hotels that offer the best services at competitive prices. It is the best opportunity for the hotels or agents to guide these online buyers to their products (Xu, Yao & Lu 2014). The fact that travel agencies and hotels can identify clients who want to purchase their products has made it easy to come up with effective messages that target specific customers based on their needs.

According to Cavagnaro and Curiel (2012), many multinational hotel groups and online travel agencies have developed their Facebook pages that online customers can visit to get the information they require when planning to purchase their products. On their Facebook pages, they offer their clients graphic information about the products they offer. They have a display of the rooms on offer, meals available, the beautiful sceneries visitors can enjoy, and any other additional service that is available for the buyers. The websites also provide customers with a detailed explanation of these products and their prices to help them with decision-making.

Hardina (2012) says that one of the greatest benefits of Facebook, as an online platform for interacting with clients, is that it allows clients to engage agents of the hotels directly. In case these customers cannot get all the information or clarifications they need from the Facebook page and the firm’s website, they can inbox their questions to the firm. Many of these companies have employees in the marketing department whose work is to respond to the concerns and questions of the customers. Once they receive the messages, they have the responsibility of providing the required clarification within the shortest time possible. The Instant response that buyers get in these platforms encourages them to use the services of these companies.

Multinational hotel groups are currently using their Facebook pages and platform to inform their clients about new offers or new products available for them (Lefebvre 2013). These hotels often monitor closely activities of Facebook users. Whenever they realize that one plans to use their services, they quickly mine information about them available on their Facebook pages and other online platforms. They get to know their age, gender, social status, and nature of work, likes, and dislikes, places they want to visit among other facts. After gathering such facts, they determine if they have products that can meet their needs.

They can then develop a message specifically meant for the customer about the products. They can state about the discounts available, the nature of each product, and the advantages their products have over that of the rival companies (Ravens 2014). The clients will explain if they are interested and capable of purchasing the products. The platform also makes it possible for the company to develop a personal relationship with their customers before and after making their purchases. When buyers are thrilled with the services offered, they will share their good experiences with hundreds or even thousands of their online friends. They will become online evangelists to the firm’s brand, making it popular in the market.

Twitter and YouTube work almost in a similar way as Facebook but have different functionalities. YouTube is used to share videos among its users. It means that advertisers who intend to use YouTube must develop commercials in the form of videos. It is possible to know the intention of customers by looking at the videos they look for in the online platform. However, sometimes their searches can be misleading and indirect.

It is not as easy and as direct as with Facebook users. Currently, there are over one billion active users spread across the world. Twitter is another popular social media platform with over 700 million followers. It is often frequented by the working class, mostly the middle-aged members of the society. Multinational hotel groups are also using other online platforms such as Instagram and LinkedIn to reach out to their clients.

Druica (2012) warns that although social media platforms have become major avenues of reaching out to the customer, they also pose serious challenges that should not be ignored. Negative publicity can travel very fast through online platforms and can have a devastating impact on a firm’s brand. It can be as destructive as it can be constructive to a brand. When buyers are not pleased with a product, they can easily share their experiences with their online community. Such negative messages may easily dissuade other customers from purchasing products of the company. Others would deliberately post negative messages about a given company out of malice. Customers may not know the truth about such negative comments, but they are often likely to treat them seriously.

The management must be capable of determining the source of such negative messages within the shortest time possible. They must then provide an appropriate response to the audience in a way that would not be seen as a direct attack on the person posting the message (Weeden 2016). They must explain if it is out of malice, factors that make the information wrong, and provide proper justification. In case it is true that a customer was not provided with the services they required, then a proper answer must be provided as to why the need was not met.

Some firms have suffered damage to their brand because of the irresponsible use of social media. A good case in point was the incident that happened at Domino’s Pizza that became known as ‘Dirty Domino Pizza’. In this case, two employees of this company video-recorded themselves as they prepared pizza under extremely unhygienic conditions. The video then shows the two employees presenting the dirty pizza to an unsuspecting customer.

They uploaded their video on YouTube. Within a short time, the video had been shared by hundreds of thousands of online users not only in the United States but also in many other countries across the world where the brand is popular (Ray 2015). The top management thought that the incident would not have any impact, but that was not the case. Within a short time, customers started avoiding Domino outlets, complaining about the unhygienic manner in which it prepares its meals. Some even contemplated suing the company. What started as a joke by irresponsible employees of this company was degenerating very fast into a devastating situation that was eroding the popularity of this top brand very fast. The management realized that if nothing is done the company could be forced out of the market.

The chief executive officer had to come out through the same platform that was threatening to tear the company apart and clarify the incident. It forced the company to video record how its meals are prepared to dispel the developing notion that the company is unhygienic. Resources had to be spent to repair the damaged image in the market. To this day, some customers do not trust products offered by Domino’s Pizza. The image they saw on that disgusting video is still very clear in their minds.

Theoretical Framework

In this section, the researcher will focus on the theoretical framework to help in clarifying some of the concepts and beliefs that have been presented in the review of the literature. Many scholars have come up with various theories to explain online customer behavior (Roy, Mutum & Nguyen 2017). These theories should be evaluated to determine their relevance in this paper. One of the theories relevant to evaluating customer behavior when making an online room reservation is a technology acceptance model. It can help in explaining the trend that customers have taken to accept the use of online platforms to make their online room reservation instead of using the traditional brick-and-mortar models. According to this theory, the extent to which people believe that using a given system would be effortless determines their ability to accept it.

People tend to embrace technology if they are assured that they will not face numerous challenges when using it. This theory is closely related to Kurt Lewin’s Change Model. The model explains that before introducing a new concept to people, it is important to make them understand it first. It proposes a systematic way of introducing change among people. The figure below shows the steps that should be followed when using the model.

As shown in the figure above, the first step is to unfreeze. It involves identifying and explaining the weaknesses of the old model and proposing new ways of addressing them. The change champions will be expected to make others believe in the need to embrace change. The next step is to introduce the change itself. It is at this stage that new systems and structures are put in place. The last stage involves the refreezing.

At this stage, the proposed model will be emphasized and any issues that stakeholders may have addressed appropriately. These two theories apply to multinational hotel groups trying to understand online customer behaviors. These firms must ensure that their employees have moved from the old system to the new internet-based system of reaching out to the customer. They have to understand the new system to ensure that they can get the meaning of the information that will be gathered from this report. They must be capable of putting into the proper use of the information that will be collected so that they can help their companies achieve success in this highly competitive hospitality industry.

Theory of Reasoned Action is also very relevant in this study. The theory holds that the behavioral intend of a person can be predictable because it is caused by one’s attitude and objective norms (Lu, Marek & Chen 2015). It is possible to know the decision that a person will make based on personal interests, beliefs, and practices. When trying to determine the online room reservation behavior of customers, the guiding principle will always be their beliefs and attitudes. Those who prefer classy products because of their social class will always be guided by the quality offered other than price. On the other hand, those who are keen on running on a strict budget may prioritize price over quality as long as their basic needs are met.

Hypotheses

After a detailed review of the existing literature, it is important to come up with hypotheses, which will be analyzed using the primary data collected from the respondents. The following were the hypotheses that were developed in this research project:

• Hypothesis 1: Customers are more likely to (1a) be influenced by price, convenience, and quality of products when making an online room reservation and less likely to (1b) be concerned with the brand.
• Hypothesis 2: First time online customers are more likely to (2a) rely on the information gained from online platforms when making purchasing decisions than (2b) the repeat customers who already have basic knowledge about what they need and where they can access it.

The researcher will use the data gathered from primary sources to accept or reject the above hypothesis.

Methodology

When conducting research, it is important to have a clear plan on how the data from various sources will be collected, analyzed, and presented in a meaningful manner. Chapter 2 above is a detailed analysis of the secondary data collected from books, journal articles, and reliable online sources. The chapter was dedicated to reviewing existing knowledge in this field to ensure that already existing information is not duplicated in this report (Brennen 2013).

The information from secondary sources provided the basis upon which this research was developed. That is why at the end of the chapter the researcher developed hypotheses, which have to be analyzed using the data from primary sources. This chapter focuses on the methodology of the report. It starts by defining the philosophy that the researcher considered appropriate for the study. It then explains the approach to the research that was used in line with the philosophy that was selected.

The chapter then narrows down further to the strategy chosen for the research (Kara 2015). The chapter outlines the method that the researcher used in sampling respondents used in collecting the primary data, the actual method of data gathering, and the strategy used in analyzing the primary data. Also explained in this chapter includes reliability and validity issues, ethical considerations, and resources used to obtain data from the field. The goal of this chapter was to ensure that there was a proper evaluation of online customer behaviors, from aspects of multinational hotel groups.

Research Philosophy

Research philosophy is the first factor that a researcher must determine when planning to conduct a research project. It focuses on issues such as the nature, source, and process of knowledge development. Most research project often uses both primary and secondary data sources. This was the case in this study. The researcher relied on the primary and secondary data sources to come up with a conclusion on this topic and to provide recommendations.

Bernard (2013) says that defining the philosophy of research is also important because it explains the fundamental beliefs and assumptions made in the study. There are four philosophical beliefs that a researcher may embrace in such a study. They include positivism, realism, pragmatism, and interpretivism. Each of them is unique and appropriate in various contexts. To justify the philosophy that was selected for this study, it is appropriate that each of the four is discussed in detail.

One of the common philosophies used by researchers is pragmatism. This philosophy holds the belief that a given piece of knowledge or a concept is considered true and acceptable only if it is capable of supporting action. Any concept that cannot support action is considered untrue and disregarded under this philosophy. However, this philosophy holds that there are many ways of viewing and interpreting the world. The philosophy is considered pragmatic because of its belief that multiple realities often exist. As such, no single view can be considered capable of giving the whole picture (Jasti & Kodali 2014).

That is why it is flexible enough to embrace varying views, as long as it can support action. In a society where people are unique based on their culture, gender, social status, age, and many other demographic factors, realities may vary. What one group of people sees as reality may not be the same thing as what another group holds to be true. Forcing one group to embrace a given pattern of belief is irresponsible and impractical. The philosophy emphasizes the need to be tolerant of the views of others. As we uphold our views based on our justifications, we have to respect the views of other groups. If we have to embrace a given concept, then the guiding principle should always be the ability to put it into practice and for it to yield the desired results. It was considered the most appropriate philosophy in this project.

Another philosophy that has also gained popularity among researchers is positivism. As its name suggests, this philosophy holds that a concept or a piece of knowledge can only be considered trustworthy and factual if it is gained through observation and measurement (Amelina 2012). It highly values knowledge gained through senses. The researcher must remain objective when collecting data based on this philosophy. They must understand that their role in such processes must be limited data compilation, analysis, and interpretation. When finally making conclusions and recommendations, they must be based on the data collected and interpreted objectively (Vasant 2016).

The philosophy requires researchers to be objective and impartial throughout the process of data gathering. They are not allowed to influence the process through personal preferences or beliefs. It also encourages data analysis done through statistical methods. The outcome of such statistical analysis helps in defining the conclusion that is made in the study. This philosophy is popular, but it was not considered appropriate for this project based on the aims and objectives of the study.

Interpretivism, as its name suggests, involves making interpretation of elements of a study from various perspectives. According to Saldanha and O’Brien (2013), this philosophy is based on the primary belief that reality can be accessed through shared meanings, instruments, consciousness, and language (Mahrooqi, Thakur & Roscoe 2015). Many scholars believe that it emphasizes on idealism when one is conducting a piece of research. The philosophy is strongly opposed to the idea that meaning can reside in society independent from consciousness. Meaning and consciousness, according to this philosophy, are closely intertwined and must always be treated as such when collecting data.

Like pragmatism, it holds the belief that people have different beliefs and values in life and as such, they are likely to interpret different concepts in different ways. For instance, what a poor person would consider a proper hotel may not be pleasing to the rich. Interpretation of the world, therefore, should not always be based on the lens of one group of people. It is a good philosophy, but not the most appropriate of the four philosophies available for the researcher.

Realism is another popular research philosophy that bases its assumptions on the realities of the world, just as its name suggests. It is the belief that reality is independent of the human mind and as such, we need to rely on scientific approaches when developing knowledge (Mehl & Conner 2012). People tend to be biased. Personal interests, age, ethnicity, social groups, family interests, and experiences in life all tend to create bias in people’s minds. Once a person is biased, he or she may fail to see reality the way it is. Ross (2012) says that personal preferences and desires often blind people. They see what they want to and block out of their minds what they do not like.

Even in cases when they are presented with realities, they tend to find ways of justifying their beliefs without duly considering what others feel. It is true that people often experience realities in the world. However, personal beliefs may be so deceptive and blinding that one fails to see the truth in its true sense. As such, the philosophy emphasizes scientific approaches to knowledge development. Irrespective of the skewed beliefs of people, when presented with science, they cannot dispute the truth (Tomsky 2012). Gravitational force is a reality irrespective of what some people may want to believe. This philosophy is very appropriate when conducting a scientific research project. It makes it inappropriate for this social science project.

Research Approach

After selecting the appropriate research philosophy, we had to narrow down to the research approach that is in line with the philosophy and appropriate for the study. The approach must be capable of meeting the set research aim and objectives of this project. A researcher can select one of the three fundamental reasoning approaches. The approaches include inductive reasoning, deductive reasoning, and the abductive approach of reasoning (Bailey & Handu 2013). Each of these three approaches is unique in their ways. An inductive research approach, sometimes called inductive reasoning, is an approach that starts with observation and then proceeds to the development of theories based on what is observed (Bryman & Bell 2015).

It is the movement from a more general to a specific belief. When using inductive reasoning, a researcher is offered the freedom to start the research from the desired point, without being restricted to a given theory or belief. The only principles that will be guiding the researcher are the research questions and the objectives. Hair (2012) says that the approach does not forbid a researcher from embracing a theory he or she considers appropriate earlier on in the study.

However, such theories or concepts should not limit their ability to make proper observations. That is so because the conclusion and recommendations that shall be made in the study must be based on the observations made other than the theories that exist. The theories can only be used to support the observations made and not vice versa (Gast & Ledford 2014). When using this reasoning approach, a researcher is highly encouraged to avoid having formed opinions. Their opinions (theories) should purely come from the observations made throughout the study.

Deductive reasoning takes the complete opposite approach from that of inductive reasoning. It emphasizes the need for a researcher to review existing theories (concepts) and then develop hypotheses based on them. It is a movement from a more specific idea to a general one (Nestor & Schutt 2014). In this approach, a researcher will try to prove that a given belief or theory can be applied in a general context. The approach holds the belief that whenever one is conducting research, it is important to appreciate the works of other scholars. It is not prudent to conduct research as though other scholars have not worked in the same field.

Working from what others have found out makes it easy to enrich a given field with new knowledge. It is important to note that when using this approach, it is not mandatory that a researcher must use a specific theory. Sometimes all that a researcher needs are concepts and knowledge that other scholars have put forth. Using that knowledge, a researcher will set two hypotheses. The primary data will then be used to prove if the set hypotheses are true or not (Kuada 2012).

This research embraced deductive reasoning. Customer behavior, especially the online room reservation practices, is a topic that has attracted so many scholars over the recent past. It was important for the researcher to review the information the scholars have found out and the theories or concepts that they have developed. That has been done in chapter two of this paper. After the review of the literature, the researcher then developed the hypotheses based on the information collected. The researcher then proceeds to analyze the collected data to confirm or reject the hypotheses in chapter four.

Critics of both inductive and deductive reasoning were convinced that it was necessary to come up with an alternative approach that can address weaknesses of the other two approaches. They came up with an abductive research approach. The approach seeks to address the weaknesses of the other two reasoning approaches. It starts with the identification of surprising facts or puzzles (Caillaud, Rose & Goepp 2016).

The researcher will then be expected to solve these puzzles with the help of empirical phenomenon that the existing theories cannot explain properly. It is expected that a researcher will find various explanations for the identified surprising facts. He or she is required to select the most appropriate of the existing justifications. As Fowler (2013) observes, the approach allows one to embrace both numerical and cognitive reasoning when explaining the puzzles. Although it is the most recent of the three approaches, it has faced heavy criticism among scholars, and as such, it is not the most appropriate reasoning approach for this study.

Research Strategy

At this stage, it is important to further narrow down to the research strategy after defining the philosophy and approach necessary for the study. The researcher must find the most appropriate strategy for meeting the set goals and objectives (Skott & Ward 2013). In this project, the researcher will use various strategies to gather the information needed to meet the set goals. Surveys will be very important in collecting data.

Survey

The researcher needed firsthand data collected through a survey to evaluate the customer behavior of online room reservations. It is true that scholars have conducted comprehensive research on this topic, but it is necessary for the researcher to conduct primary research (Yanow & Schwartz-Shea 2014). The survey provides the best way of collecting that primary data. By identifying individuals who have the information needed in the study, it was possible to know the status of the issue under investigation. The information gathered from the survey made it possible to analyze the set hypotheses and research questions. Like quantitative research, it was necessary to analyze the collected data statistically. The researcher developed questions in a manner that enabled statistical analysis of data.

Data Collection

Data used were obtained from two main sources: primary and secondary sources. Secondary data came from published sources and have been reviewed in the second chapter of this paper. The primary data was collected from sampled respondents. The information obtained from these respondents formed the basis of analysis used in confirming/rejecting the set research hypotheses.

Sampling method

Primary data collection is a very complex and time-consuming process that requires proper planning. It is always desirable to obtain data from the entire population to get a clear picture of the issue under investigation. However, time and resource constraints may make it impossible to collect data from the entire population. As such, it becomes necessary to select a sample of the entire population that is manageable given the set time and available resources (Reis & Judd 2014).

In this study, it was almost impossible to gather data from the entire population. Data had to come from marketing experts, players in the hospitality industry, and customers who regularly use the services. These individuals are spread across the world. Collecting data from all of them given the limited time and resources in this study was not possible. The researcher, therefore, decided to use a smaller sample of 90 respondents. The researcher used the stratified sampling method to select the participants. In each of the three strata mentioned above, the researcher identified 30 participants.

Data collection instrument

The primary data was gathered with the help of a questionnaire. Before going to the field to collect data, the researcher developed a questionnaire to help in organizing the process of gathering data (McNabb 2013). The developed questionnaire had three sections. The first part of the questionnaire focused on demographical information of the respondents and their background. This section was essential because the customer decision-making process is often influenced by these demographical factors.

Section two of the questionnaire focused on the academic background of the respondents. As Choy (2014) notes, the level of education of a person often defines how they view specific issues. Some of these respondents have expert authority regarding their knowledge on this topic, and it was necessary to capture that in this paper. The third section of the paper delved into specific issues about customer behavior of online room reservations. Time and resource constraints forced the researcher to administer the questionnaire through an online platform. After contacting the participants, the researcher emailed the questionnaire to them. They were requested to fill the questionnaires and send their responses back using the same platform.

Justification of the instrument

The instrument was selected because of the need to have structured data. It made it possible to provide similar questions to the respondents and a similar pattern of response. The instrument guided the respondents in answering the questions in this project. The uniformity in data collection was particularly important given that the researcher was interested in conducting a statistical analysis of the primary data.

Reliability and Validity

In the modern competitive business environment, firms are keen on understanding how they can become dynamic in their operations to ensure that they remain operational in the market (Theron 2012). As such, they rely on studies to understand the emerging forces and know what they need to do to remain relevant in the market. That is why it is very important to ensure that issues of reliability and validity of data are observed in such research.

The information provided in the recommendations should not be misleading. The researcher used triangulation to enhance the validity of the data. Collecting information from various sources made it possible to identify possible causes of bias. The method enabled the researcher to identify any inconsistencies and to address them appropriately. The researcher also ensured that personal opinion and bias did not influence the process of collecting or analyzing data.

Ethical Considerations

Ethics should be observed when conducting any piece of research (Vaioleti 2015). As an academic researcher, various ethical considerations were observed to ensure that the project was completed as per the set rules and regulations. The researcher started the project after getting approval from the professor assigned. After identifying a few multinational hotels locally within the United Kingdom, the researcher made a formal request to their management to allow their employees to be part of the study. The participants were sampled from institutions that gave their approval. Before starting the process of data collection, the researcher explained the relevance of this project and the role that the sampled participants had to play in it. All their questions and concerns were addressed.

They were informed that they were at liberty to withdraw from this research project at any time without having to justify their decisions. They would not be subjected to any consequences if they decided to withdraw from the study.

Timeline

An academic researcher is often bound by the set rules to complete a dissertation within a specific period. It was important for the researcher to ensure that this project is completed within the set time to avoid consequences set by the school. The table below provides an outline of activities that were conducted in this project and the time within which they were completed.

Findings and Discussion

The previous chapter has provided a detailed review of the methodology of this report. In this section, the focus will be on conducting a comprehensive analysis of the primary data collected and coming up with a discussion of the findings backed by the information obtained from the secondary sources. The information collected from this chapter will be used to make a conclusion and inform the recommendations at the end of this project. As explained in the methodology section, the primary data was majorly analyzed using quantitative methods.

Primary Data Analysis

In the introductory chapter of this paper, the researcher provided a series of questions that were to be answered using the primary data. The questions were set in line with the primary aim and objectives of the study. The researcher used the questionnaires to collect data from the respondents. The questions set in chapter 1 were integrated into the questionnaire. It is important to analyze each question based on the data obtained from the respondents.

What do visitors look for when planning to make online room reservations?

The first question focused on determining what customers often look for when planning to make online room reservations. Each of the respondents was requested to mention just one thing they believe customers often give priority when planning to make online room reservations. It was important to identify factors that would be prioritized by each of the respondents. The figure below shows factors that appeared most common in the list of the answers they provided.

As shown in the figure above, price is still one of the leading factors that customers prioritize when planning to make online room reservations. Most of the online searches entail price factors. This may be explained by the fact that the majority of these travelers are the middle class, traveling for business trips or for vacation and have a specific budget for a specified period. As such, they are keen on the cost of such trips. Another major issue when making an online room reservation is the location of the facilities. The respondents noted that travelers often prefer hotels located strategically based on why they are visiting a given place. Quality of the services offered came third in the list. The respondents emphasized the need to get quality products from the hotels. The reliability of the services and privacy were other important factors mentioned by the respondents.

What are the ways through which multinational hotel groups can monitor customers’ behavior and determine their needs?

The next question focused on determining how multinational hotel groups can monitor buyers’ behavior and determine their needs. The knowledge is critical because it can help them to define how to develop relevant products in the market. Using that information, these firms will also be capable of developing promotional messages that will be in line with the needs and expectations of these online clients. The respondents were requested to state the ways through which these hotels can collect that information. The figure below shows possible tools that can be used by these firms to monitor online customers’ behavior as identified by the respondents.

As shown in the figure above, most of the respondents feel that Google Analytics is the most appropriate tool for monitoring online buyers’ behavior. This is so because most of them often use Google as their search engine when they are online. It is, therefore, an appropriate tool for this form of data collection. Another group of respondents stated that GFK MRI was an appropriate tool to collect information about the behavior of customers in the online platform. Cision, Sizmek, and comScore are the other tools that these multinational hotel groups can use.

How can multinational hotels use the information they mine in the online platform to define their products?

When collecting data, it is important to determine how it will be used by the relevant agency. It takes time and significant resources for these firms to use various tools to collect information about the online behavior of customers when making a room reservation. As such, the question wanted to determine how these multinational hotel groups could use the information to define the products in the market. The researcher first asked these respondents if they believe hotels can use the data they mine to define their products. The answers provided by the customers were analyzed statistically and the figure below shows their response.

As shown in the figure above, it is clear that an overwhelming majority of the respondents (85 out of 90) strongly believe that these companies can use the information they mine using various tools to define the nature of their products. When asked how this can be done, the industry experts stated that these companies should use the information to determine the needs of their targeted customers and purchasing capacities.

They should then develop products, which meet these needs in an affordable manner. Some of these respondents argued that the top brands such as Hiltons and Sheratons should develop products, which are affordable to the middle class, especially during off-peak seasons. Such products can help them increase room occupancy hence increase their revenues. At this point, it is important to analyze the hypotheses that were set in chapter 2.

• Hypothesis 1: Customers are more likely to (1a) be influenced by price, convenience, and quality of products when making an online room reservation and less likely to (1b) be concerned with the brand.

The first hypothesis focused on determining the major factors that influence the customer’s decision to purchase a given product offered by firms in the hospitality industry. The hypothesis held that price, convenience, and quality of products are more important concerns for buyers than the brand of the service provider. The outcome of the primary data analysis shown in figure 2 above confirms this hypothesis. Price, location (convenience), and quality are some of the top concerns identified by the respondents. It clearly shows that although customers may value the brand of a product, there are more important factors that they consider when planning to purchase hospitality products.

• Hypothesis 2: First time online buyers are more likely to (2a) rely on the information gained from online platforms when making purchasing decisions than (2b) the repeat clients who already have basic knowledge about what they need and where they can access it.

The second hypothesis was interested in determining if indeed it is true that first time online buyers are more likely to rely on the information they get from the online platform than the repeat customers are. The figure below shows their views:

As shown in the figure above, the majority of the respondents feel that first-time customers often rely on the information they collect from the internet. Unlike their more experienced counterparts, these first-timers are often keen to get the information from any relevant source they can find. It is at this stage that online travel agencies become critical players in this industry (Tanford, Baloglu & Erdem 2012). When evaluating customer behavior of online room reservations, these agencies are also important players because leading multinational hotels still rely on them to get regular clients.

Discussion

It is important to explain the relevance and role of online travel agencies in the hospitality industry. According to Morpeth and Hongliang (2015), although e-commerce has made it possible for hotels to reduce their reliance on travel agencies, these agents have not been eliminated. Some of them understood the dynamism in the market and were able to change their mode of operations in line with the changes within the industry.

The emergence of online travel agencies has had a major impact on the hospitality industry (Szutowski 2016). These agencies offer a wide range of products to the customers whenever they want to purchase products in the hospitality industry. Unlike the websites of individual hotels, which limit buyers to their products, these agencies offer their clients a wide range of products available at different hotels based on clients’ unique needs (Safko 2013).

In fact, a number of customers often prefer using these agencies because they believe they are impartial compared with specific hotel websites. The agents have business deals with many hotels and their loyalty is always to their customers to ensure that they remain in operation. Currently, there are numerous online travel agencies operating in various parts of the world. Hotel.com, Orbitz.com, Travelocity.com, Priceline.com, and Expedia.com are some of the leading online travel agencies that customers often use in the market today. These agencies often use three different business models based on the market forces they are dealing with at a particular time. They can operate as merchants, use the commissionable model or the opaque selling model (Chong, Chan & Boi 2012). Each of these models is unique.

When an online travel agency is operating under the merchant model, it purchases travel products from companies, which offer them at a discounted price (Gbadamosi, Bathgate & Nwankwo 2013). They then sell these products to their online customers at a higher price so that they can get their profit. This strategy is very common during off-peak seasons when hotels are under-booked.

Instead of having unoccupied rooms for a long period, these hotels enter into a business deal with these online agencies and offer a significant discount on their products. It is the responsibility of these agents to find customers who can purchase these products. They are expected to use their websites to convince clients to purchase the products (Müller, Lundmark & Lemelin 2013). Although the hotel will offer all the services, which the visitors need once they check-in, these visitors will be considered clients of the agencies. Any complaints that they may have will be directed to the agents. If it is something that should be addressed, it will be the responsibility of the agent to follow up with the service provider. This model was also used among traditional travel agencies. The model is popular among agents operating within a specific location and with the capacity to engage closely their customers.

The commissionable model of business has also been in place among travel agencies for some time (Neirotti, Raguseo & Paolucci 2016). In this model, the online travel agencies get a commission on every visitor that they direct and successfully book the products of a specific hotel. Unlike the above model where the agent has to take care of their visitors from the time they check in to the time they check out, under this model, the visitors become clients of the hotel as soon as they check into the hotels (Tate 2015).

Any responsibility to the client for the agent ends as soon as he or she makes a payment for the product. In return, these agents are paid a percentage of the price that these visitors pay in the form of commission. The model is popular among agencies that operate in a wide market but have a limited number of employees who can take care of the interest of the customers beyond finding them the hotels they need (Gbadamosi 2016). It is also beneficial to the hotels because they can easily develop a personal relationship with these clients so that they can directly contact the hotels next time they need to make another purchase.

The opaque selling model, as the name suggests, is an approach where customers are offered huge discounts by the agencies, but denied critical information about the products they are purchasing (Crane & Matten 2016). In this case, a traveler is instructed to state-specific expectations when planning to travel. Once they state their needs, the agent will provide them with a list of alternatives in the market and their current prices. The customers will be informed that if they consider the offered options too expensive, then they can be offered alternative products at better prices without compromising on quality (Sheldon & Daniele 2017).

The problem is that even the agents are not always aware of the location or specification of the product because they have to go and search for the product based on the stated client’s needs. The client has to pay a given percentage as a commitment that they really do want to purchase the product. At the time of making the purchase, the client knows very little about the product. The agent is expected to get the product within the agreed time and inform the client to complete the payment. Products offered under this model are often cheaper, but very unpredictable (Sharma & Shilpa 2013).

Agents who do not have a well-defied working relationship with specific hotels popularly use this model. They roam around looking for the best deals for their customers. It works well during off-peak seasons when hotels are keen on discounting their products to increase room occupancy (Theodosiou & Katsikea 2012). However, it is not a popular model with many tourists, especially given that they are often unaware of the specifications of the products they are purchasing. Irrespective of the chosen model, it is important for these top hotels to ensure that they maintain close working relationships with these agencies.

Conclusion and Recommendation

The hospitality industry is increasingly getting competitive, and it is necessary for multinational hotel groups to find ways through which they can overcome such stiff market competition. A number of changes have been witnessed in this industry over the recent past. Business travelers and tourists are now using online platforms whenever they want to make online room reservations. They believe that through online platforms they can easily compare services offered by various firms and select the best deals. Traditional travel agencies that operated offices in various cities have been faced out of the market. In their places have emerged online travel agencies.

It is a clear indication of how the industry is shifting to the online platform due to the emerging technological changes. Top multinational hotel groups such as InterContinental Group, Hilton Group, and Sheraton Group are now redefining their operations to ensure that their activities are in line with the changing market forces. They have established social media platforms to help them reach out and interact with their customers. They have also developed websites to help them make online sales for their products. However, these firms still have to monitor and master buyer behavior when making an online room reservation.

Understanding online customer behavior when they are making room reservations is critical to the success of these firms. The information will enable them to understand the average price that online clients are willing and able to pay, quality of the products they want, their preferred locations, the model with which they want their products delivered among other important factors. Getting such information will empower these firms in terms of defining products based on the demand in the market. They will also have a better capacity to reach out to their customers with promotional messages, which are in line with their needs. People often pay attention to the message they find relevant to them. Understanding online buyer behavior makes it possible to develop relevant messages that customers will find informing when planning to make purchases. The following are the recommendations that multinational hotel agencies should put to practice based on the findings of this study:

• Multinational hotel groups should consider using Google Analytics, GFK MRI, Cision, ComScore, and Sizmek to monitor customer behavior when it comes to online room reservations. These tools, and others that continue to emerge, will help in providing important information these firms need in their operations.
• The information gathered from the above tools should be used to define products that these firms offer and promotional messages that they pass to their customers.
• Multinational hotel groups should keenly monitor the emerging trends brought about by the emerging technologies in the hospitality industry and adjust their products and production approaches accordingly. Their products and production methods should always remain dynamic, keeping in line with emerging customer needs.
• Multinational hotel groups should continue maintaining a close working relationship with online travel agencies. They still play a critical role in finding customers for these hotels.

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Introduction

Medical tourism is one of the emerging trends in the tourism sector that is becoming popular in various parts of the world. In the past, tourists were known to travel out of their country or cities to visit beautiful sceneries and wildlife during holidays. However, many people are currently making such travels with the primary intention of seeking medical attention. According to Hvidt, medical tourism refers to “The travel of people to another country for the purpose of obtaining medical treatment in that country” (398).

The emergence of complex diseases such as cancer and cardiovascular diseases have forced many people across the world to seek specialized attention from countries they believe have the capacity to offer them the services they need. According to Furlong and Hedding, medical tourism is a relatively new concept, but for many years people have been making regular trips out of the country to other nations to seek medical attention (615). Traditionally, people from developing nations would travel to developed nations where they can get specialized care for their medical conditions. During such trips, the primary reason for the travel would be for the medication.

The patient and his or her family members would travel back to their country soon after receiving treatment. However, a new trend is emerging where people come from developed countries to developing nations to seek medical attention. This is so because such individuals believe that they can receive the same service but at a lower cost in these developing nations. Others make such travels because of the laws in their country do not permit some form of medical procedures. They are forced to get such services in foreign countries that do not have such restrictions.

Dubai is one of the cities that have been growing very rapidly over the past two decades as a business and tourist hub. According to Hvidt, Dubai is currently the leading tourist destination center in the Middle East (404). The development of infrastructure and the political stability that has been experienced in this country has helped in transforming it into one of the preferred business centers in the world. The city has been receiving tourists who not only come to view the beautiful sceneries but also seek medical services from some of the top local hospitals. In most of the cases, these tourists would get medical services and then spend some time touring the city or just relaxing in the beautiful beaches before traveling back home.

The attractiveness of the city has seen a number of leading hospitals in the world set up their branches in the city. Kuwait city is another preferred destination for tourists who are seeking medical attention. According to Vijaya, the city of Kuwait is the capital and most active city in Kuwait (55). It is one of the regional competitors of Dubai as a destination for tourists seeking medical services. Rochester city in Minnesota is another leading destination for tourists seeking medical attention.

The city boasts of some of the best hospitals in the world such as Mayo Clinic. It has attracted people, especially the wealthy, from all over the world who are battling cancer, cardiovascular problems, among other complex ailments. In a global context, it is one of the fiercest competitors of Dubai as a destination of tourists seeking medical solutions. In this paper, the researcher will compare medical tourism in Dubai, Kuwait city, and Rochester using various analytical tools.

Comparing Medical Tourism in Dubai, Kuwait City, and Rochester

Porters Five Forces Model

Dubai

According to Vijaya, governments around the world have realized that they have a major role to play in popularizing their cities in order to attract foreigners (61). These three cities will be analyzed in the same approach that a company would be analyzed in order to understand the external environmental factors that may affect its ability to attract more tourists from all over the world. Porter’s Five Forces Model is one of the most appropriate tools that will help in understanding the position of each of the cities as a destination for tourists in need of medical services. The figure below shows a summary of the five forces that the cities have to deal with in order to attract more tourists from all over the world.

The first force that is defined in this model is the threat of substitutes. In the context of a city that is a hub for tourists looking for medical assistance, it may be a little challenging to define substitute products. The substitutes, in this case, will be considered as other cities within the country that can offer similar services. For the city of Dubai, the threat of substitutes within the United Arab Emirates is relatively low.

Other than Abu Dhabi, other emirates are relatively small in size and population and are not as developed as Dubai. However, this does not rule out the emergence of these local cities, especially the city of Abu Dhabi because it has also been expanding very fast over the last decade.

The city of Dubai faces a serious threat of new entrants into this emerging industry. Over the last two decades, this city has experienced unprecedented growth in infrastructure and other economic and social development. It is currently the undisputed leader in this industry.

However, other cities are emerging in the region which promises to offer serious competition in the near future. Riyadh city, Mecca and Medina are all emerging as major tourist attraction centers. These cities have also been working to upgrade their medical facilities to meet international standards. It means that soon tourists will be considering visiting these cities instead of Dubai.

The degree of rivalry that Dubai faces is relatively low compared to what the other two cities face. The major cities in this country do not offer any serious competitive threat to Dubai as a center for tourists. The bargaining power of buyers is relatively low. The United Arab Emirates is a middle-income economy. Life in this city is not as expensive as that in the developed economies in North America and Europe. However, the economy is higher than that of some of the regional countries. Life in Dubai is relatively expensive compared to that of other regional cities. For that reason, tourists seeking medical services would consider visiting neighboring cities where they are assured of spending less. However, the city is very attractive to medical tourists coming from North America and Europe.

The bargaining power of suppliers is high given that most of the equipment used in hospitals within the city are imported. Dubai imports some of the drugs it uses in its medical facilities, especially the machines used in specialized departments. The bargaining power of the suppliers of this equipment is high, especially the equipment used in the cancer centers.

Kuwait

Kuwait city, just like the city of Dubai, is facing a serious challenge of substitute products. The city of Doha is experiencing massive facelift in preparation for the FIFA 2020 World Cup. The government is making a massive investment in the city’s infrastructure, and one of the areas that have been given special attention is the medical sector. The government knows that it has to be ready to meet the medical needs of the visitors.

Leisure is another major area that has been given serious attention to ensure that visitors will consider coming back to visit the city after the event as tourists. This means that Doha will become a major destination for tourists who need medical attention. It will offer Kuwait city a serious competition in this industry. Other cities are also emerging, and their emergence may have a negative impact on Kuwait city in terms of attracting tourists.

For Kuwait City, the threat of new entrants is relatively low. According to Furlong and Hedding, Kuwait city is the leading business center and with the highest population in the country (615). It has the most advanced infrastructural system in the country. All the major healthcare centers, both private and public, are located in this country. The strategic location of the city near a major harbor and its rich cultural setting also makes it popular with the tourists. With the low purchasing power of the locals, tourists are assured that the services they need will be available at a relatively low cost.

The degree of rivalry is another force in the model that can help in understanding the competitiveness of Kuwait city in this industry. It helps in understanding how the competing parties are employing various strategies to emerge at the top of the industry. According to Nolan and Schneider, the nature of the health industry and the code of conduct that the players have to abide by prohibiting them from any form of aggressive competition (319).

It is always the wish of everyone to stay away from hospitals, and anything that forces one to go there is often considered bad luck. Although sometimes these cities would advertise themselves in the international arena by mentioning the beautiful flora and fauna meant for the tourists and adequate medical services, they have avoided any competition seen as a direct attack on other cities.

The bargaining power of buyers is another force that this city has to deal with. For Kuwait city, the bargaining power of the buyers is relatively low. Kuwait is a low-income economy, with a large number of its citizens living in abject poverty. Living standards are low and so is the cost of living. For regional and international tourists seeking medical attention, this city is the most preferable one if their main concern is the associated costs. In this city, they will be assured that they will spend little in medical services, boarding costs, and any other extra services they may need before or after their medication.

The bargaining power of suppliers in Kuwait’s medical tourism industry is relatively high compared to that of Rochester city. Kuwait also faces the same challenge as Dubai because it also imports these machines and some of the drugs used in its hospitals.

Rochester

Rochester city in Minnesota faces a serious threat of substitutes given its location. The United States is the leading economy in the world, with some of the advanced medical facilities. The presence of the Mayo Clinic in this city gives it a prestigious position as a destination for people seeking specialized medical attention. However, patients in this country have a number of alternatives to make because there are a number of other good hospitals within the United States. This means that compared to the other two cities, Rochester faces the highest level of threat of substitutes, while Kuwait city has the least threat.

The threat of new entrants is another force in this model that is important to analyze in order to understand the position of these three cities in the sector of medical tourism. In the context of the cities, new entrants will be considered the emergence of new cities as a major destination for people seeking medical attention within the region. For Rochester, the threat has been there, and it is not expected to worsen in the future. Most of the cities in the region that it is competing with are already developed, just like it is, and it is not expected that one of these cities will suddenly emerge as a stronger force than is the case currently.

The degree of rivalry for this city is high but regulated. The national government cannot allow them to engage in any smear campaigns against other cities in the country. The individual hospitals in these cities have also avoided any direct confrontation in the market because of the need to coordinate with other hospitals in research and development. This has made competitive rivalry relatively low for all three cities.

The bargaining power of the buyers is another force that may affect the number of people coming for medical tourism in these three cities. The bargaining power of the buyers in these cities varies. In Rochester city, the bargaining power of the buyers is very high. As stated earlier, the United States is the world’s leading economy with one of the highest living standards in the world. The clients in the local market know what they want and will opt to travel to other cities in order to get the quality they feel they deserve. They are choosy because they know they have a number of alternatives to make whenever they need medical attention. For those coming from other parts of the world, they may find the associated costs in this city prohibitive and may opt to get their medication elsewhere.

The bargaining power of the suppliers is the final force that should be considered in the analysis of these three cities. Given that the focus is on the medical tourism industry, suppliers are the pharmaceutical industries that manufacture and supply drugs all over the world and manufacturers of medical equipment. The bargaining power of the suppliers for Rochester city is relatively low as compared to the other two cities. Unlike Dubai and Kuwait cities that rely on imported machines and drugs to run their hospitals, most of the drugs and equipment used in hospitals in Rochester are manufactured locally. This reduces the bargaining power of the suppliers because of the variety of choices that these hospitals can make.

Competitive Profile Matrix

The analysis conducted above conducted using Porter’s Five Forces reveals that these three cities have different strengths and weaknesses when it comes to medical tourism. In terms of the quality of services that they offer, Rochester city comes as the best, followed by the city of Dubai, while Kuwait comes last. In terms of pricing, Kuwait city comes as the least expensive hence the most preferable, followed by Dubai, while Rochester comes last. Competitive Profile Matrix will help in further critical analysis of these three cities based on specific factors that may make them attractive to tourists seeking medical services. Based on the data collected from reliable online sources and books, the table below shows a summary score of each of the three cities on different factors.

Table 1: Competitive Profile Matrix.

In terms of the quality of healthcare products offered in these three cities, Rochester offers the best, with a rating of 5. The hospitals in this city such as Mayo Clinic have state-of-the-art facilities unmatched anywhere in the world. These hospitals also have some of the best doctors in the world. Dubai comes second in terms of quality of service delivery while Kuwait comes last. In terms of the loyalty of the tourists, Dubai has the highest score because of the additional amenities it has for the visitors besides medical services.

Rochester comes second, while Kuwait comes last. In terms of advertising, the cities of Dubai and Rochester have a high score, especially given that governments in these cities have committed a lot of resources towards promoting awareness of the medical services available for the tourists. Kuwait has the least score in this field. In terms of price competitiveness, Kuwait offers the best of the three cities, followed by Dubai, while Rochester comes last.

Services at most of the hospitals in Rochester are offered at very high prices because of their high quality. In terms of the management of the industry, Rochester has the highest score. Government authorities in this city coordinate very closely with both public and private players to ensure that the best service delivery is offered both to the locals and visitors. Dubai comes second in this parameter while Kuwait comes last.

The financial position of the industry in Rochester is highest. Most of these players have financial independence and can easily be supported by the financial institution. Dubai comes second while Kuwait comes last. Most of the healthcare facilities in Kuwait are struggling to achieve financial independence. Expansion of the industry in, the cities of Dubai and Kuwait are not doing as well as Rochester. When looking at the market share of the three cities, Rochester has the best record, especially because it hosts one of the best hospitals in the world. Dubai comes second while Kuwait comes last. In overall performance, Rochester comes at the top, followed by Dubai, while Kuwait is the last.

Intensive Strategy

Dubai

In this section, the researcher will move further and introduce intensive strategies to help determine the current performance of these cities in medical tourism and what the future holds for them as a destination for tourists who are seeking medical attention. The figure below shows the three types of strategies that will be used at this stage.

As shown in the model above, the first strategy that the city of Dubai may consider in its effort to promote medical tourism is market penetration. According to Furlong and Hedding, market penetration involves increasing market share for the current products in the current market (616). Using these strategies, the city of Dubai will need to promote its existing products to its current customers without necessarily increasing any additional products.

The primary focus of this strategy is to avoid losing current customers to competitors. It entails a delicate balance of ensuring that the current market share is protected by meeting their needs in the best way possible. Dubai city should not lose its current customers to other regional or even international destinations. It must ensure that whenever they want to make a tour that also involves seeking medical attention, then their only focus is this city.

To do this, it will need to ensure that the city remains appealing to them every time they make a visit. It should leave them yearning to come back every time they have similar needs. In market penetration, there is also an attempt to attract clients in the local market who are using products offered elsewhere. There are a number of rich families in Dubai who only trust the services of top hospitals in Europe and North America. Dubai city, through the relevant stakeholders, should find a way of winning their trust and convince them that they can get even better services locally instead of traveling abroad. This new market segment may help in improving the quality of services offered locally hence improve the ranking of the city in the medical tourism industry.

Market development is another important strategy that this city can use. The city of Dubai has performed well in this area for different reasons. Many people travel to Dubai from all over the world to see the beautiful man-made sceneries, including the tallest building in the world. Once they are in the city for leisure, they realize that they can also benefit from the medical services offered by the local hospitals.

Based on their thrilling experience, these international customers would come back as tourists who also seek medical attention. Some even refer their friends and family members to the city. This is one of the reasons why the city of Dubai has been experiencing massive growth as a business and tourists’ destination over the past decade. It has successfully convinced the world that it has more to offer than its beautiful sceneries.

Product development is the third strategy that can enhance the competitiveness of the city. Dubai cannot boast of the best healthcare facility in the world. However, it is currently one of the world’s leading tourists’ destinations in the world. In order to increase value to visitors who come for medical services from other parts of the country, the stakeholders can find a way of making these visitors enjoy the beautiful sceneries that people come from all over the world to see. This way, they will be getting more value whenever they come for medical services.

Kuwait city

Market penetration is the first strategy that this city should concentrate on. For Kuwait city, the main challenge in its market penetration strategies in winning the confidence of the clients in the local market. Most of the families who have greater financial capacities often consider traveling to other countries, including Dubai, to get better medical services. A greater effort should be placed on improving the quality of services offered at these hospitals. As Sengupta notes, the government of Kuwait has not shown goodwill towards improving the services offered at public hospitals (313). Leading private players in this industry have shunned away from the country because of the low purchasing power of the locals, making it difficult for them to afford high costs of medication.

Market development is one of the strategies that can prove to be challenging, but it promises greater success of the cities as a destination for tourists seeking medical services. Chambers and McIntosh define market development as the introduction of the existing products into the new markets (919). It involves looking for clients beyond the geographic borders of the cities. Kuwait City is performing dismally in market development.

The city’s medical services are relatively poor, and even the tourists who by chance end up visiting them do not consider coming back in the future. This has made it impossible to attract international clients. The government may need to intervene and equip major public medical centers to international standards. It should also create an enabling environment for private players so that they can consider investing in this city. The security should be improved to assure visitors that when they visit they will always be safe.

The third approach to increasing the number of people visiting these cities for medical purposes under this strategy is product development. According to Nolan and Schneider, product development involves increasing sales by modifying or improving existing products (323). In this context, the three cities may need to add more value to the products they offer their patients. Kuwait city has a lot to do in terms of product development.

It may start by improving the security and safety of the visitors to eliminate undesirable memories such as robberies or unexplained attacks. The government may also need to put more effort into developing the infrastructure so that it can appeal to the international community. According to Chambers and McIntosh, a lot should be done to reinvent the medical sector in this country (922). So many specialized medical services, especially major operations of the heart and advanced treatment of cancer are not available in this city. Finding ways of offering such specialized services locally may be a great step towards achieving product development for this city.

According to Hvidt, Intensive Strategy often focuses on the three areas discussed above (412). However, there is the fourth area of diversity which is equally important but often ignored when conducting analysis using the model, especially in the case of the city of Kuwait. Medical tourism can be boosted when a city considers diversifying what is made available to visitors. The government of Kuwait should commit resources to develop the city into a hub of business and social amenities for people who want to take a holiday away from their busy daily chores. It would mean that when one is making a trip to this city for medical reasons, he or she has expectations to have a unique experience by visiting the beaches, the beautiful man-made islands, the tall beautiful buildings, the parks, shopping experience, and many other thrilling types of scenery. This diversification gives the city an edge over its competitors.

Rochester city

The two analytical tools used above have already given an indication that Rochester and Dubai cities are having better performance than Kuwait city in terms of medical tourism. Rochester city’s performance in this industry is slightly higher than that of Dubai, a fact that can be attributed to the presence of one of the world’s leading hospitals in the city. Market penetration is one of the strategies that can help the city improve its performance. Rochester city will also need to use the same strategy to protect its market share in the industry, but its primary focus will be on improving the experience of the visitors beyond the high-quality services they get.

Market development is the second strategy that can be very crucial for this firm in its attempt to achieve competitiveness. Rochester city is not popular outside of the United States, but Mayo Clinic is because of its high ranking among the best healthcare facilities in the world. For that matter, most of the tourists come specifically for medical services at this facility. This has enabled the city to attract tourists from the local and international community. This city will need to take advantage of its strength, which in this case is its ability to offer high-quality medical services, to attract more clients from the international community. The city authorities should help in promoting the name of Mayo Clinic and other local hospitals in the international arena.

The third approach to product development is also very important. Rochester is known for its high-quality medical facilities, especially at Mayo Clinic. When these tourists come, they do not expect much other than high-quality healthcare services. The city can find a way of giving them a new experience that can make them have memorable moments other than what they experience at the hospitals. It may involve improving tourism in the city so that these visitors can have fun before and after receiving medication. This way, they can always expect more than just quality medication when visiting the city.

Like Kuwait city, Rochester city should emulate Dubai when it comes to diversification. The city comes in a distant second in terms of diversification. It is a city in the world’s largest economy, and has one of the best healthcare centers in the world. The city has improved infrastructure, but it is not a major business and tourist hub when compared to other cities such as New York or Chicago.

To be in the same league as Dubai in terms of diversification, the authorities here may need to boost trade, improve the sceneries and other tourists’ attraction centers, and popularize the city as a tourist destination. The government must understand that diversification is a strategy that will help it improve medical tourism, other than improving the services that it is currently offering. The stakeholders in this industry should have a better understanding of what these unique tourists may need besides medical services. Like Dubai, it should consider creating a unique shopping experience for visitors who come for medical attention.

Integration Strategy

According to Vijaya, sometimes the bargaining power of the suppliers or distributors may be very strong that it affects the profitability in a given industry (65). In such instances, it becomes necessary for the relevant stakeholders to take control of supplies or distribution to gain a competitive edge in the market. The three cities of Dubai, Kuwait, and Rochester may find this strategy effective when promoting medical tourism. They can embrace forward integration, backward integration, or horizontal integration as shown in the figure below.

Forward integration involves gaining control or ownership over the retailers or distributors. In the case of these three cities, forward integration may involve active engagement of the stakeholders in medical tourism to ensure that the number of brokers reduced to the lowest level, and that all the visitors are provided with the best services they need. The individual players, which in this case are the hospitals and hotels where these visitors will stay, should have full control of the management of the visitors without any influence of agents who may want to benefit unfairly from this trade. They should set up their own systems and structures that will ensure that they have full control in service delivery to these clients.

Backward control involves gaining control or ownership of the supplies. In the analysis above, it was noted that the cities of Dubai and Kuwait suffer from the high bargaining power of the suppliers because they are forced to import most of the equipment used in the local hospitals. These two cities can find a way of reducing this power through backward integration. To do this, the governments of Dubai and that of Kuwait may need to make direct investments into this industry to ensure that most of this equipment is manufactured locally. The other alternative may be to create an enabling environment that would attract foreign investors into the local market.

The primary aim of these two cities should be to have either public or private manufacturers of the medical equipment within the local economy. For Rochester, the bargaining power of the suppliers is relatively low hence this strategy is of little significance. Another approach that these cities can take in their backward integration strategy would be to have control over tourism promotion and internationally. Relying on private tourism agents to source for tourists coming into these cities may not be adequate.

Moreover, these agents are always willing to take these tourists to other cities as long as they receive payments. The authorities in Dubai, Kuwait, and Rochester should establish tourism boards to promote these cities locally and internationally.

Horizontal integration, according to Chambers and McIntosh, involves taking control or ownership over competitors (932). In the context of companies, this would involve acquisitions and takeovers as a way of reducing market competition and increasing market share. However, this strategy may not be feasibly possible in the context of medical tourism. This strategy can only be used by the individual firms within this industry. For instance, Mayo Clinic may consider setting up a clinic in Dubai because of the popularity of the city among tourists. It is expected that the profits made by this clinic in the foreign market will be repatriated, and this will benefit Rochester, it’s a home city.

SWOT Matrix

The critical analyses of these cities using the above tools have revealed a number of factors that may have both positive and negative impacts on their development. In this section, the researcher will use another model, SWOT Matrix, to help in further analysis of the cities, specifically focusing on strengths, weaknesses, opportunities and strengths. This way, it can be clear how they can use what they have currently to overcome challenges and take advantage of existing opportunities for growth. The analysis will be done on each of these cities in tabular form to see how they compare

BCG Matrix

It is now clear that the cities of Dubai and Rochester are performing well in the medical tourism industry. These two cities have fundamental factors that enable them to stand out as preferred destinations globally. For Dubai, it is the tourists’ hub with beautiful man-made sceneries while for Rochester it is home to one of the world’s leading hospitals. However, Kuwait city’s performance in comparison with these two cities is relatively low. In this section, the researcher will use the Boston Consulting Group Matrix to further analyze these three cities. This model will make it easy to understand what each of the cities can take advantage of to achieve maximum success in the industry.

Boston Consulting Group can help these cities in identifying products in this industry that offer them the best income and those that may need to be reinvented in order to offer the expected value. For Dubai, Spa and wellness services are very popular. Family sporting and psychological products also make this city popular among local and international tourists. However, it may need to reinvent its maternal care services. The model also shows that this city is not performing well in major surgical procedures. To promote medical tourism in the city, the stakeholders should consider promoting products that the global community trusts it can offer in the best way possible.

These stakeholders should also consider making improvements in the sectors identified as points of weakness. Kuwait City has a lot of improvement to make in the healthcare sector in order to match regional competitors such as Dubai. It is only in minor medical services that this city has registered satisfactory results. All major surgical operations are not effectively done here. In fact, most of the people living in this city are often forced to travel abroad to get quality medication. This is a sign that it has very little to offer to tourists who are traveling for medical purposes. This trend should change. The stakeholders in this industry should start by winning the trust of local clients.

For Rochester, it is clear that the city is performing very well in offering products that involve complex medical procedures. Mayo Clinic is trusted all over the world as an institution that offers the best surgical procedures. It is also a popular center for cancer and other related treatments. Most of the people traveling to this city are in need of advanced medical treatment. This city can improve its revenues from this industry by improving wellness and Spa services which are very popular among tourists. It should not ignore minor medical operations popular with tourists unless they are prohibited by the law.

Competitors’ Analysis

Medical tourism as a clearly defined industry emerged recently, but people traveling for medical services out of their country is a phenomenon that has been in existence for several decades. The cities of Dubai, Kuwait, and Rochester have been analyzed using six tools to determine how they compare in this industry. Porter’s Five Forces Model analysis has revealed that Rochester enjoys a number of benefits that are not available to the cities of Dubai and Kuwait. The fact that hospitals in Kuwait and Dubai are forced to import most of the pieces of equipment they use at specialized departments increases the costs of their operations. However, hospitals in Rochester can access these types of equipment locally within the United States. In terms of the competitive rivalry of the industry, Dubai enjoys an advantage over the other two cities. It has no serious competitor in the region as opposed to Rochester and Kuwait which have to deal with major rivals in the regional market.

Competitive Profile Matrix shows that Rochester city has the highest score against Dubai and Kuwait. This impressive performance is largely attributed to the fact that Rochester city is located in the world’s largest economy. The presence of Mayo Clinic within this city and advanced infrastructure gave it an upper hand over its competitors. Dubai also had an impressive score, especially because of the advanced transport infrastructure and booming tourism industry. In most of these parameters, Kuwait city scored very poorly. The city has to improve its transport, healthcare, and security infrastructure to be able to compete with these other two cities.

Intensive Strategy has also helped in analyzing these cities and identifying strategies that they can use to achieve success in the industry. Market penetration strategy can help these cities make the best out of the existing market. Market development may help individual players in this industry to look for markets outside the local market, and product development may help these players to reinvent their products in the market.

The use of Integration Strategy has revealed that forward and backward integration can help these cities to improve their performance in this industry. Backward integration will make it possible to have power over the suppliers.

Dubai and Kuwait cities specifically stand to benefit from this backward integration because they have been affected by the power of the suppliers. Forward integration can help the three cities in eliminating brokers who always benefit at the expense of the local players and visitors. SWOT Matrix is one of the very popular models used when making an analysis of a firm or a business center. This model has revealed that the biggest strength of Dubai as a hub for tourists seeking medical attention is its attractive sceneries and infrastructure. The strength of Rochester is the presence of Mayo Clinic, one of the most trusted hospitals in the world.

For Kuwait city, the low cost of living is its main strength. The main weakness of Dubai is its inability to handle patients who need highly specialized care. For Kuwait, the main problem is poor infrastructure while Rochester’s high living standard is a major limitation. BCG Matrix also helped in identifying products which these cities can focus on, and those that they need to reinvent in order to make them more popular. Wellness products are performing well in Dubai, highly specialized healthcare in Rochester, while simple medical procedures are doing well in Kuwait city.

Recommendations

The city of Dubai has experienced massive growth over the past two decades as a global business hub and tourist destination. The infrastructural development and beautification of the city have turned it into an unmatched tourist center in the global market. Medical tourism is becoming a sub-sector within the tourism industry. Many people are now traveling to various parts of the world to tour and receive medical attention. This city needs to position itself appropriately to attract this new market segment. These tourists can help in increasing revenues for the city. As Sengupta says, medical tourism differs from conventional tourism (314).

These tourists may be interested in having some forms of leisure during their visit, but their primary aim is always to get medical treatment. This means that there has to be the right medical infrastructure that can meet their medical needs. It is only through this that they can be attracted to this city. The popularity of Dubai will be an added advantage if the stakeholders can work to ensure that the right medical needs are available. Based on the detailed analysis conducted above, the following recommendations will be appropriate for the city.

• Stakeholders in the medical sector should focus more on medical needs that are not available in some of the leading economies because of legal or moral factors. This is so because tourists are likely to come from these developed economies for these unique services.
• The government of Dubai should work closely with the private players in the medical tourism industry to ensure that the needs of the visitors are met in the best way possible. A public-private partnership may be particularly important for the development of medical tourism because some of the complex machines used in healthcare centers may be too expensive to be purchased by individuals. Through such partnerships, the government can equip public hospitals with such machines and private players can refer their patients to these public facilities whenever there is a need.
• Security is a major factor in promoting medical tourism in the country. The government of Dubai should give special focus to the issue of protecting its borders. Tourists should feel safe when visiting this city.
• Key players in this industry should find means and ways of offering advanced medical care in order to eliminate cases where locals are forced to travel from Dubai to other cities around the world to get specialized medication.
• The government of Dubai should be directly involved in promoting medical tourism among local and international tourists. It should be involved in promotional campaigns to let the international community understand the services available in this city.
• The financial market should be committed to supporting this industry to ensure that it achieves the expected growth. Most of the individual players in this industry may need loans in order to expand their operations. This support should be readily available to them.
• Players in conventional tourism such as the hoteliers and tour companies should work closely with hospitals and other medical agencies to ensure that all the needs of such tourists are properly met.

Works Cited

Chambers, Donna, and Bryan McIntosh. “Using Authenticity to Achieve Competitive Advantage in Medical Tourism in the English-speaking Caribbean.” Third World Quarterly 29.5 (2008): 919–937. Print.

Hvidt, Martin. “The Dubai Model: An Outline of Key Development-process Elements in Dubai.” International Journal of Middle East Studies 41.3 (2009): 397–418. Print.

Furlong, Melissa, and Andreas Hedding. “Globalization and Antibiotic Resistance: Hospitals Engaged in Medical Tourism Can Turn Crisis into Opportunity.” British Medical Journal 341.7774 (2010): 615–616. Print.

Nolan, Justin, and Mary Schneider. “Medical Tourism in the Backcountry: Alternative Health and Healing in the Arkansas Ozarks.” Signs 36.2 (2011): 319–326. Print.

Sengupta, Amit. “Medical Tourism: Reverse Subsidy for the Elite.” Signs 36.2 (2011): 312–319. Print.

Vijaya, Ramya. “Medical Tourism: Revenue Generation or International Transfer of Healthcare Problems?” Journal of Economic Issues 44.1 (2010): 53–69. Print.

Introduction

Contemporary Iraq strives to rebuild its economy, and tourism can be a significant source of revenue for the country. This report is aimed at examining the positive and negative aspects of tourism in Iraq. In particular, it is necessary to focus on the factors that can contribute to the development of this industry in the country. Furthermore, special attention should be paid to obstacles that can prevent the Iraqi tourist industry from developing. These are the main issues that should be discussed in this report.

Positive Aspects

The rich cultural heritage of the country

When speaking about the development of the tourist industry in Iraq, one should first remember that the country has a very rich cultural heritage of more than two millennia. In the past, its territory belonged to many powerful and developed states such as the Abbasid and Ottoman Empires, and there are many sites that can be of great interest to tourists. In particular, one can mention such locations as the Erbil Citadel, Al-Askari Mosque, Ishtar Gate, and some other sites that represent different historical and cultural periods (McGahey 235). Moreover, it should be mentioned that Bagdad is one of the most ancient cities in the world, and its origins can be traced to the eighth century before the Common Era. The architectural monuments located in Bagdad can greatly appeal to visitors from different countries. Thus, reach the cultural legacy of Iraq can be the basis for the tourist industry in the country.

Additionally, it should be noted that Iraq has a great number of natural sites, such as deep canyons, alpine canyons, or lake resorts that are located in Kurdistan (McGahey 236). Thus, people should not assume that one can find only architectural monuments in Iraq. The nature of this country can also be very appealing.

Iraq as an attraction for pilgrims

One should also mention that Iraq can attract the attention of many people who want to undertake a religious pilgrimage (Bianchi 58). Moreover, these people can represent both Islam and Christianity. It is worth noting that there are several religious sites that can attract many Muslim pilgrims, namely, the Great Mosque of Kufa, which is one of the oldest religious monuments in Islam (Bosworth 295). Thus, Muslims, living in different countries, may choose to visit this place. Furthermore, Iraq homes one of the oldest Orthodox Christian monasteries in the world, and it may be visited by many Europeans who are interested in the history of early Christianity (Augustin and Jake 103). Thus, one should not assume that the history of Iraq can be reduced only to Islam because the history of the country is very diverse. Furthermore, people who are interested in religious pilgrimage may consider Iraq because this country can offer them many things. This is another tourist attraction that one can advertise.

Investments aimed at developing tourism infrastructure

There is another factor that may contribute to the development of tourist industry in the country. In particular, the government of the country recognizes the importance of tourism for the economic life of Iraq (Is Iraq the Next Tourism Hot Spot 5). This is why they are going to invest capital in the construction of more than 700 hotels (Is Iraq the Next Tourism Hot Spot 5). Thus, visitors from other countries can find a place that can fit their income level (Is Iraq the Next Tourism Hot Spot 5). So, one can argue that the government of this country is interested encouraging tourism from abroad to visit historical and religious monuments of Iraq.

Economic potential of the country

Furthermore, Iraq has economic capabilities to develop the tourist infrastructure. This country has one of the richest oil reserves in the world, and the government may accumulate sufficient capital in order to built hotels, roads, telecommunication, and so forth. They are essential for attracting people from foreign countries. Provided that this country does not face political and military instability, they are very likely to provide more opportunities to foreign visitors. So, economic potential can be an indispensible condition for success of the tourist industry of Iraq.

Negative Aspects

Safety concerns of many tourists

One of the most important obstacles to the tourism industry is the safety concerns of many people who are afraid of going to Iraq (Hall 3). Many tourists are not convinced that the government of Iraq can ensure their safety; this is why they do not pay much attention to religious or cultural sites of this country. Such an attitude is quite understandable because people are usually risk-averse. The war which broke out in 2001 resulted in the overturn of regime lead by Saddam Hussein. Since that time the country has fallen victim to many terrorist attacks, and these events have made people very wary of Iraq. This is the most important risk that people should be aware of. For many people Baghdad is related to war, but they tend to overlook the fact that this city is the heir of the ancient Babylon.

Infrastructure problems

It should also be admitted that at this point the tourist infrastructure of Iraq is not sufficiently developed, especially after the war that engulfed this country. For example, one can point out that the communication system of the country needs requires significant repair (Rowell 110). In this context, the term communication system includes roads, bridges, telecommunications, airports, and many other public utilities that are important for tourists (Rowell 110). This is another reason why many people may be reluctant to go to Iraq and this problem should be addressed as soon as possible.

Lack of awareness about the tourists sites of Iraq

There is another obstacle that can hinder the growth of tourism industry in Iraq. Many people are not aware of the tourist attractions that are available in this country. For many of them this country is associated with war, civilian casualties, or terrorism. They do not know that it also hosts mosques, monasteries, and other historical sites. Moreover, they do not much about the history of this country.

Conclusion

Overall, these examples indicate that Iraq has a significant potential for becoming an important destination for tourists. The cultural heritage of Iraq and its economic capacity can make the country very attractive to people from many countries. By visiting Iraq, people can see the richness and diversity of non-Western countries. Yet, there are several problems that should be addressed, namely the lack of infrastructure and the fear of terrorism. Provided that the government manages to overcome these problems, they can make the country more attractive to people from abroad.

Works Cited

Augustin, Byron and K. Jake. Iraq, New York: Children’s Press, 2006. Print.

Bianchi, Robert. Guests of God: Pilgrimage and Politics in the Islamic World, Oxford: Oxford University Press, 2004. Print.

Bosworth, Clifford. Historic Cities of the Islamic World, BRILL, 2007. Print.

Hall, Michael. Safety and Security in Tourism: Relationships, Management, and Marketing. New York: Routledge, 2004. Print.

“Is Iraq The Next Tourism Hot Spot?.” Canadian Travel Press 44.1 (2011): 5. Print.

McGahey, Stan. “Tourism Development In Iraq: The Need For Support From International Academia.” International Journal Of Tourism Research 8.3 (2006): 235-239. Print.

Rowell, Rebecca. Iraq, New York: ABDO, 2011. Print.

Human beings should be allowed to pursue their personal goals and objectives in life. The American Constitution also protects the rights and freedoms of every person. This notion therefore explains why citizens with various disabilities should have access to national heritage parks and natural reserves. People will disabilities tend to be discriminated in different parts of the world. In the recent past, new researches have been done in order to ensure more disabled persons can lead normal lives and eventually realize their full objectives. This fact explains why people with disabilities should be empowered and encouraged to participate actively in their respective societies (The Right to Risk).

The documentary “Right to Risk” is a masterpiece explaining why the disabled should have access to different tourist destinations. The wilderness might be dangerous for disabled persons. This is the case because such persons are unable to climb mountains or walk in dense forests. This film shows how a group of disabled persons managed to visit some of the most exciting sceneries and rapids in North America (The Right to Risk). The documentary is a wake-up call for every society. With the relevant support, individuals with disabilities can complete a wide range of tasks and lead independent lifestyles.

The ideas borrowed from this documentary show clearly that disabled people should have access to various wilderness areas. Although such areas might be risky or unsafe, the relevant authorities should offer the required guidance (The Right to Risk). This move can make it possible for every disabled person to enjoy nature and experience the rich diversity of his or her surroundings. For very many years, individuals with disabilities have been ignored and abused. The modern society should therefore consider the diverse needs of its members.

Persons with various physical disabilities have their unique hobbies. They are also interested in various activities such as watching movies, visiting national parks, or even swimming (The Right to Risk). That being the case, wilderness places can be revitalizing to both disabled and non-disabled persons. This knowledge should encourage the global society to present new resources in an attempt to support the needs of these persons. Failure to do so should be treated as a form of discrimination against such people. The move will improve the level of equality and make it easier for more members of the society to realize their potentials. In conclusion, the government should ensure every wilderness area is made accessible to more citizens with various disabilities. This is the case because such people have similar goals and freedoms.

Work Cited

The Right to Risk. Ex. Prod. Kathleen Ryan. New York, NY: Grand Canyon. 2005. DVD.

Abstract

Iraq is called the ‘Biblical Fertile Crescent’ and the recent unfortunate incidents should not instigate the global community to rule out the country. Iraq has some significant sites of historical importance and as such, the country has great potentials to become a preferred global tourism destination. The two rivers, Tigris and Euphrates, and the varied topography of the country (with desert and snow peaked mountains) give the country a beautiful scenic look. Unlike the remaining parts of Iraq, Iraqi Kurdistan is emerging as a favorite tourist destination; Kurdistan is comparatively safe and secure. The country can be at the receiving end of benefits if it seriously thinks about starting all-inclusive tourism packages.

This paper seeks to evaluate a tourism destination in the MENA area. MENA stands for Middle East and North Africa that includes, “Algeria, Bahrain, Djibouti, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Libya, Malta, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, West Bank & Gaza, and Yemen” (World Bank, 2013). Among these nations, Iraq has been chosen as the tourism destination to evaluate. “It is impossible to ignore tourism” (Sharpley, 1999). Tourism has emerged as a premier global business during the past couple of decades. The amount of tourists increased manifold since 1950 and as estimates predict, it might extend to even greater heights by the year 2020 (UNWTO 2011).

Introduction

It is true that during the past couple of years, Iraq has had a negative reputation due to the unfortunate incidents that shook the country. People might consider Iraq as a war-torn country that still might be under the spell. In spite of all such speculations, Kurdistan proves to be a haven for tourists. Owing to the sincere efforts of the Kurdistan Investment Authority, several investors have initiated to invest in sectors such as tourism and real estate. Such efforts have been instrumental in boosting the tourism industry in the region.

Religious tourism is the torch bearer of the tourism industry in Iraq. Karbala is considered to be a holy place for Muslims all over the world. This particular destination did not lose importance in spite of the long wars that the country has witnessed. Numerous hotels in the vicinity of Karbala are reaping profits as a result of the swarming tourists. Global hotel chains such as Hilton and Marriott have invested in Karbala due to the lucrative business opportunity.

As the Iraq war started, the performance of the country’s airline industry experienced a total blockade. There was no passenger traffic to and from the country. Fortunately, recent reports suggest that air travel has been restored in the country. This will further be positivity for the tourism industry in Iraq. Airports are also being renovated for better service and more space. But despite all such efforts and encouraging signs, there is still a feeling of uncertainty (pertaining to the country) among the global community.

Impacts of tourism in Iraq

Among the consequences of the war, the worst effect that the country has experienced is chocked relations with neighboring countries and other parts of the world. Other effects such as severe security problems and damaged infrastructure also pose a grave situation before the country. Referring to Geoff Hann, director of Hinterland Travel, Gloria Riviera suggested that likewise other war-torn nations such as Croatia and Cambodia, Iraq will also succeed in becoming a preferred tourism destination (Riviera, 2009). Quoting Qahtan Al-Jibouri, the Iraqi Tourism Minister, Riviera further said that Iraq was ready to welcome foreign investments in the tourism sector (Riviera, 2009).

Social implications

The long war had left the country and its citizens in a bitter state. The economic condition of the country became appalling and the people had little or no source of income. A proposal for US war veterans to visit Iraq can be beneficial to both the nations. Peaceful relations can be developed between the United States and Iraq (Bujisic, 2011).

Iraq being an Islamic nation, the female population doesn’t have ample freedom to participate in the tourism industry. Otherwise, tourism has great implications for women because there are several opportunities that are created by tourism that local women can easily handle (Holden, 2004). Female tourists (especially the religious tourists) would prefer to be guided by a female guide.

The overall concept of tourism has changed during the years. Tourism is now being viewed as a way of sustainable development. According to the ‘sustainable development theory’ of tourism, the tourist and the host country contribute towards the benefits of each other (Tourism Theories, 2012). The tourist contributes towards the economic prosperity of the destination. It is wrong to consider a tourist as a client. Even tourism should not be considered as a business.

Political implications

Iraq’s economy is mainly dependent on oil and tourism comes at the second place. Its neighboring country, Iran, is the hub of Shiite Muslims in the world. As such, the tourism industry of Iraq is greatly dependent on the Iranian tourists. As such, the political and economical conditions of Iran have an impact on Iraq’s tourism industry. The religious tourism of Iraq holds a very strong position. This can be judged by the fact that in spite of the insecurity prevailing in the country, there are scores of religious tourists every year that bring in millions of dollars (Adib, 2013).

After the rule of Saddam Hussein ended, Iraq and Iran signed a pact pertaining to the number of pilgrims that could visit Iraq (from Iran). The initial limit was very less but later on, the daily limit of the number of pilgrims was increased to 6000. (Adib, 2013).

Economic implications

Based on the report by UNWTO (2012), the current tourism trend and its influence go beyond the leisure phenomena of individuals or groups of people travelling to numerous destinations to achieve their interests. Though, the economic influence and potentials of tourism are remarkably big, there have been several studies enlightening that the shares of locals in the paybacks of tourism comprise an insignificant portion of the total income produced by this segment.

The following charts depict various figures that are important to understand the tourism scenario in Iraq (Trading Economics, 2014).

Environmental implications

The low living-standards of the people of Iraq and tourism contribute to the environmental problems of the country. The rate of development is very low in the country and as such the problem is persistent. It requires a lot more intervention by the government to tackle the environmental problems.

Methodology

The research method for the study is a qualitative multi-person case study. Qualitative research allows an in-depth study of participants in their everyday settings. Researchers attempt to discern meaning, based on the importance individuals place on their own experiences (Merriam, 2009). Qualitative research has a foundation based on empirical inquiry through the collection of lived experiences in a natural setting; the results rely on the process as much as on the data. Researchers determine themes and patterns from multiple sources of data, including primary source documents, interviews, and observations. The data generated from words and transferred in an understandable manner are vital (Neuman, 2003). From the delineated results, qualitative research provides a complex understanding of a problem (Creswell, 2007).

Quantitative research is not appropriate for the study. The research questions are of a broad nature and the data collected is non-numerical. Quantitative research is a method designed to study larger groups than in the present study and has limits as to the number of factors studied (Neuman, 2003). Quantitative researchers ask narrow questions and obtain measurable information on variables (Creswell, 2008). In contrast, the present research study has broad questions intended to understand participants’ experiences.

Challenges facing the tourism industry in Iraq

The tourism sector is not given due importance in the ‘national development plans’. One of the probable reasons might be the enormous funds required to match the enormity of this industry. There is also a significant shortage of the required infrastructure for this kind of industry. An important factor is the lack of awareness among the people about the importance of tourism to the national economy.

The investors, both local and foreign, are hesitant to invest in Iraq (being a war-torn country where there is still a sense of insecurity). Moreover, there are no special provisions and/or privileges in the legislation pertaining to investments in the tourism industry. Finally, there is a lack of specialized organizations that can assume the responsibility of promoting the religious and cultural destinations to the global community (Ministry of Planning and Development Cooperation, n.d., para. 17).

Tourism assets of Iraq

Assets of cultural importance

Iraq has several locations that have significance due to their Judeo-Christian-Islamic culture. Babylon and Nimrud are two such locations, in addition to some others in Iraq. Several locations of cultural importance were destroyed during the invasion by American and British troops. The famous walls of Ninevah and Nimrud were also destructed. In spite of such heavy destruction, there are still several locations of cultural importance that can be a source of attraction to the tourists. One such location is the Citadel of Irbil (that has a history of 8000 years).

Assets of religious importance

The Shias are the main group of people following Islam in the country. Trips to religious destinations (by Shias) are the largest contributors to the overall religious tourism in the country (Izdihar, 2007). Some of the significant holy places are mentioned below:

Najaf

Situated 160 km from the country’s capital, this city is the epicenter of political power of the Shias. The city is home to the tomb of Ali bin Abi Talib. He was the fourth Caliph after Prophet Muhammed. After Mecca and Medina, Najaf is the third city to have maximum number of tourists visiting for religious purpose.

Kufa

Kufa is also of great historical importance to the Muslims since it has the house of Imam Ali. The city was also one of the important capitals of Muslims.

Karbala

Karbala is the most important religious cities of Iraq. The city is also considered to be the wealthiest in terms of economy (income generated from religious tourists and agriculture). The city comprises of ‘Old Karbala’ and ‘New Karbala’. The main attraction for the religious tourists is the tomb of Hussain Ibn Ali that is located at the centre of Old Karbala.

Baghdad

Baghdad, the capital city of Iraq, houses the tomb of Abu Hanifa who was a great Sunni scholar.

Other cities that are of significance to the tourism industry of Iraq include Samarra and Kadhimiya. In addition to these locations of Islamic importance, there are several other locations that are of significance to the Christians and Jews. Such locations include the Cave of Abraham and the Tomb of Ezekiei. It should be encouraging for Iraq that the National Geographic Traveler magazine identified Erbil as the best global tourism destination for the year 2014 (Al-Awsat, 2013).

Importance of nature

The Marshlands of Iraq have great potential for tourism due to the visiting birds of different breeds. The BirdLife International has identified 35,000 sq, km of Iraq’s land as being important areas for bird-watching (Izdihar, 2007). The snow-peaked mountains of Kurdistan also have a great potential for attracting tourists. Hamlets spread all over the hilly areas are worth visiting.

Recreational activities

The various lakes located in Iraq are tourist attractions as well. The significant ones are Lake Tharthar, Lake Habbaniya, Lake Razzazah, and Lake Sawa. Lake Sawa is a must-watch due to its location – it is surrounded by desert and considering the restaurants around the lake, it seems to be an oasis.

Infrastructure

Iraq has a significant network of transportation infrastructure that helps the movement of tourists. Iraqi tourism destinations are well connected by road and rail network. Iraq has international and domestic airports that expedite the arrival and domestic travel of foreign tourists. The waterways of Iraq are also a nice way to travel. Further development of this mode of travel will not need any significant investment. Iraq also has several hotels (starred and otherwise) that have the capability to accommodate the tourist inflow at all times. Considering the future prospects of tourism, several global hotel chains have started operations in the country.

Role of tourism in economic diversification and regeneration in Iraq

The tourism sector can prove to be significant in the improvement of overall economical condition of the country. Since the tourism sector is the second largest revenue generator (after oil) for the country, the war-torn country can rely on it for regenerating its economy. The country can make use of its abundant sites of historical, religious, cultural, and natural importance to generate revenue. This will obviously increase the living standards of Iraq’s citizens.

Implications of unplanned tourism development

Physical

Unplanned tourism development can prove to be detrimental to the economic development of Iraq. Anything that is unplanned doesn’t reap fruits. Tourists need better services and facilities while traveling on vacation. The prevailing services at Iraq’s tourist destinations are not at par with the global standards.

Marketing

Proper marketing is a must for any business to flourish and tourism is no exception. As we have discussed, Iraq’s main tourist flow is of religious nature. Other tourist assets such as the historical locations are not promoted by the government. If the government makes use of the available media such as internet to advertise its historical and other locations, tourists are bound to be attracted.

Organizational

Having an efficient organization with competent people is a must for Iraq’s tourism industry. This particular sector needs a lot of improvement that can be possible only by employing experienced people who know the intricacies of the trade.

Recommendations for the destination to improve tourism

The best recommendation that can be given here is to initiate an all-inclusive holiday package system in the country. All-inclusive tourism marketplace is one of the quickest rising segments of the industry and a rising number of travelers are selecting the comfort of package holidays over the adventures of cultural interactions and learning. Two of the key factors that can drive the exponential progress of this segment are economic crunch and meeting the tourists’ needs (for better quality of accommodation, food, drinks, and other services that might often be beyond the abilities of the locals).

A report by the UNWTO (2011) emphasized that a substantial number of tourists preferred reserved package holidays as a way of decreasing the cost of their expenditure on holidays. The same report also shows that notwithstanding the recent considerable growths in tourism expenditure, the revenue of the locals has been decreasing. All-inclusive holidays have better reputation and the desire for cultural communication and learning declines.

An important aspect of the all-inclusive holiday that should be considered is that a greater part of profits of tourism are returned to tourists’ states of origin as they choose all-inclusive holidays from their own countries, leaving the locals disadvantaged from the economic, social, and cultural alterations that are the fundamental promises of tourism business in numerous regions. So, if Iraq starts the system of all-inclusive tourism packages, and promote the same over the various available advertisement media, it can garner a wide customer base and a subsequent increase in its revenue. Tourists hit by the economic crunch and concerned about the possible dangers of travelling overseas prefer to reserve their holidays over tour operators to take out any needless cost and difficulties out of the calculation.

A point to ponder: Though all-inclusive tourism has been met with interest by the industry, based on the assertion that this kind of holiday creation can upturn their effectiveness and improve their yield management tactics, thanks to predictableness of demand, such holidays also have a negative side which is demonstrated throughout the weakening employment and economic increase by the locals and denying the visitors from having any significant cultural interactions.

Conclusion

In concluding, it can be said that Iraq has great potential of tourism, be it religious or otherwise. Even though there are various hurdles towards having a flourishing tourism industry, the country has the capability to overcome such hurdles by way of formulating proper policies. The advantage that Iraq has is the presence of several religious locations that are considered holy by Muslims, Christians, and Jews. Iraq needs to concentrate on such locations and improve the services being provided at these locations.

It is understood that the country is going through a lean patch as far as the economic condition is concerned. The government needs to spread the awareness of the importance of tourism in the economy of the country. The people can benefit from the various job opportunities that might be created as a result of increased tourism.

The global community has started denying the perception that Iraq is an insecure country. Several global brands (in various sectors) have started investing in the country, which is a good and encouraging sign. But in spite of the positive signs, the country still looms under the influence of the post-war conditions and this has hindered its growth.

References

Adib, M. (2013). Iraqi religious tourism declines because of weak Iranian economy. Web.

Al-Awsat, A. (2013). Iraq’s top tourist destination prepares to welcome the world. Web.

Bujisic, M. (2011). Social implications and possibilities of post-war tourism development in Iraq. The Journal of Tourism and Peace Research, 2(2), 16-31.

Creswell, J. W. (2007). Qualitative inquiry and research design: Choosing among five approaches (2^nd Ed.). Thousand Oaks, CA: Sage.

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Ministry of Planning and Development Cooperation. (n.d.). The sectors of: Construction, housing, services, education and learning. Web.

Neuman, W. L. (2003). Social research methods (5^th Ed.). Upper Saddle River, NJ: Prentice Hall.

Riviera, G. (2009). Tourism slowly returns to Iraq. Web.

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The creation, development, and management hotel business in remote scenic areas turn out to be an attractive opportunity for many people around the whole world. Some people find it interesting to visit remote places and take rest where “the mountains are twice as big, the skies twice as vast, the days twice as long” (Abel). Some people believe that remote scenic places can be visited to improve their health and emotional wellbeing (Nieuwenhuijsen et al.).

Sometimes, people just want to enjoy the beauty and richness of nature (Paris; Springer). Such demands of the population make business people investigate different aspects of management, analyze the opportunities that can be used, and invest in the spheres that could be doubtful or unstable in different parts of the world (Liu et al. 295; Quinn; Riasi and Pourmiri 916; Westbrooke and Westbrooke 59).

The peculiar feature of hotel business is that people are eager to start a hotel without even knowing the basics, and the results of such start-ups can hardly be called as positive (Jones). There are many steps that have to be taken in a certain order, including the choice of the territory, the creation and discussion of a business plan, and the involvement of the necessary people in the team (“How to Start a Hotel”).

It is possible to investigate the cases of other organizations and people, who have already tried to contribute to the chosen industry and do business in remote areas. The example of Chinese Lugu Lake Holiday Hotel shows how the brain drain problems can influence the hotel industry and challenge the hospitality industry (Day and Du 112). Hotel profitability of the organizations in Tunisia is another case that can be investigated to realize what kind of work should be done to create and manage the appropriate hotel business (Aissa and Goaied 478). The review of the literature and the analysis of web information is the method that can be used to cover the need of learning the details for doing luxury hotel business in remote scenic areas.

At the international level, the luxury of hotels should be affordable because not all travels are able to choose rich options, even if they have an intention to visit a luxury place (McGuire 211). Revenue management plays an important role in business because the creators should understand how to use the interests of potential consumers, underline social status, and explain the essence of the prestige in the accommodations in a luxury hotel (Ivanov 19).

There are certain risks that can occur because of poorly made investment decisions or wrongly developed investment policy (Harper 53). The analysis of the worth and profitability of the remote areas, even if they are scenic, cannot be mono-semantic. Each country has its own sights and views. It is impossible to create one plan for the development of hotel industry in different countries. Therefore, the management process should begin with the evaluation of a country and its remote places where hotels can be created.

Then, it is expected to develop a business plan and investigate the areas for consideration. It is also importance to identify the risks in order to be ready for them and offer the solutions. Finally, business in remote scenic areas should be developed in regard to the needs of international tourists. The investigation of tourists, their interests, and expectations is an important step that cannot be neglected by managers. In general, each step of hotel business management has its goal and should be taken in a certain order.

Works Cited

Abel, Ann. “The Next Frontier: Alaska’s Best Luxury Lodges.” Forbes. 2015. Web.

Aissa, Sami Ben, and Mohamed Goaied. “Determinants of Tunisian Hotel Profitability: The Role of Managerial Efficiency.” Tourism Management, vol. 52, 2016, pp. 478-487.

Day, Yanfei, and Yi Du. “The Brain Drain of Chinese Hospitality Industry in Remote Area: A Case of ‘Lugu Lake Holiday Hotel.” Management & Engineering, vol. 18, 2015, pp. 112-115.

Harper, David. Valuation of Hotels for Investors. Taylor & Francis, 2013.

“How to Start a Hotel.” Growthink. 2017. Web.

Ivanov, Stanislav. Hotel Revenue Management: From Theory to Practice. Zangador, 2014.

Jones, Michael Forrest. “What Does It Take to Start a Hotel?” Forbes. 2013. Web.

Liu, Su-Houn, et al. “Marketing for Remote Area Using an Experience-Based Tourism Website Destination.” International Journal of Services Technology and Management, vol. 19, no. 4-6, 2013, pp. 294-303.

McGuire, Kelly A. Hotel Pricing in a Social World: Driving Value in the Digital Economy. John Wiley & Sons, 2015.

Nieuwenhuijsen, Mark J., et al. “Positive Health Effects of the Natural Outdoor Environment in Typical Populations in Different Regions in Europe (PHENOTYPE): A Study Programme Protocol.” BMJ Open, vol. 4, no. 4, 2014. Web.

Paris, Natalie. “21 Reasons to Visit Thailand.” The Telegraph. 2016. Web.

Quinn, Feargal. “How Can I Attract Customers when My Business Is Based in a Remote Location?” Business Advice Centre. 2014. Web.

Riasi, Arash, and Shirin Pourmiri. “Effects of Online Marketing on Iranian Ecotourism Industry: Economic, Sociological, and Cultural Aspects.” Management Science Letters, vol. 5, no. 10, 2015, pp. 915-926.

Springer, Kate. “Luxury Travel: The Most Remote Resorts in the Philippines.” CNN. 2017. Web.

Westbrooke, Samantha, and Martin Westbrooke. “Balancing Heritage and Environmental Conservation Management of Small Homestead Leases in a Remote Pastoral Landscape.” Historic Environment, vol. 28, no. 1, 2016, 58-68.

Introduction

Massachusetts is a prosperous state in the United States of America, with well-developed economic and social infrastructures. Nowadays, it is regarded as a center of science and innovation and attracts attention to its suburbs with its historical sites (Massachusetts Office for Travel & Tourism 1). At the same time, this area has a clear place in history, as a majority of the important events in the Revolutionary War, including the Boston Tea Party, occurred here (Volo 2).

It could be said that the cities and towns in the state of Massachusetts were the primary historical actors in the establishment of the United States as a country, as well as the cultivators of democratic principles in the society (Volo 31). A combination of innovative development and historical background makes Massachusetts one of the most interesting states for analysis.

As for the tourism industry, Massachusetts received $708.6 million in returns from this sector, and tourism was one of the most important sources of revenue for the state (Massachusetts Office for Travel & Tourism 4). The current popularity of tourism in Massachusetts was laid down in the past, as the first tourist routes encouraged discovering the western part of the country while following a well-defined path through “New York up to Saratoga, out to Niagara, and back via Quebec to Burlington, Vermont, and through Western Massachusetts to Boston” (Gassan 157).

This route of travel covered the most historical and beautiful places and focused on the financial centers and prosperity of the region at the same time. Based on the factors provided above, the rationale for the selection of this sector for research is apparent, since the background analysis connects the historical significance of Massachusetts to the development of the overall tourism industry in the United States. Meanwhile, the current contribution of the tourism sector to the economy of the region cannot be underestimated, as it represents a significant share of income for the state.

The primary goal of this research paper is to determine whether the tourism sector has a beneficial influence on Massachusetts’s economy and social values. In turn, it depicts the potential positive consequences of the growth of the tourism industry and its impact on socio-economic development. In this case, the tourism of the region must be evaluated, and the reasons for its progress in the area must be highlighted. In the end, conclusions are drawn to summarize the critical findings of the paper.

Description and Evaluation of Tourism Sector

As was revealed earlier, it is crucial to assess and describe the situation in the selected sphere. The definition of the key attributes of the area will contribute to a clear understanding of the overall structure of tourism in the chosen state. In this case, statistical information about the condition of the sector will assist in understanding the structure of the area, along with its financial effect on the growth of the region.

As mentioned above, the state collected $708.6 million in revenues from both domestic and foreign travelers who came to visit the state and its historical places (Massachusetts Office for Travel & Tourism 4). It is evident that Massachusetts is not only a national attraction, but is also a famous place with a reputation that is recognized around the world. Consequently, the majority of the tourists are represented by foreign visitors (2.1 million visitors in 2013) (Massachusetts Office for Travel & Tourism 3).

The next step of the evaluation implies that it is critical to portray a detailed analysis of the state’s tourism infrastructure. This assessment will form a clear image of the tourism sphere from dissimilar angles. In this case, the tourism industry is represented by transportation, lodging, recreation, entertainment, food services, planning, and retail (Massachusetts Office for Travel & Tourism 7).

It remains apparent that the components are interdependent, seeing how they work as a complex mechanism to ensure the infrastructure of Massachusetts and maintain the flow of the processes between locations and attractions. A well-developed infrastructure is a key definer of success in the hospitality industry, and the governmental authorities of the state take advantage of this aspect (Ritchie and Crouch 48).

Meanwhile, each of the attributes has a substantial impact on the state’s payroll and employment. For instance, the foodservice segment generated one of the highest payrolls (24.2%) and offered a critical share of jobs (37.4%) in the labor market of the state (Massachusetts Office for Travel & Tourism 8). In this case, the primary tourist attractions are represented by the city of Boston, which is a central component of the state, with the Paul Revere House, the Freedom Trail, and other cities and historical places such as Plymouth and Salem (Green et al. 12). It could be said that the peculiarity of the tourist sites mentioned above has a tendency to combine a historical connection, urban design, and natural landscape while creating an exceptional feeling of extraordinariness and being close to the historical events.

In the end, this section depicted the overall perception of the tourism segment, while portraying the most popular attractions of Massachusetts. It remains apparent that the tourism sector is comprised of interdependent components that ensure the flow of visitors in the infrastructure. Meanwhile, each attribute has a beneficial impact on the state’s levels of employment and payroll, increasing revenues and decreasing the level of unemployment, by offering additional jobs and being one of the critical sources of the state’s income. Based on the factors mentioned above, the tourism segment will experience growth as more and more foreign and domestic tourists become interested in visiting the most important places in the tapestry of American history (Massachusetts Office for Travel & Tourism 8).

Reasons for the Tourism Development in Massachusetts

The primary goal of this chapter is to determine a potential rationale for the positive changes in this segment since this assessment has a substantial impact on the understanding of the economy in the region. In this case, a plethora of historical, economic, and social attributes could be viewed as the primary reasons for the popularity of tourism in Massachusetts. In the context of this section, it is vital to describe them in detail to understand the development of each aspect individually.

In this instance, the role of the natural landscape of Massachusetts cannot be underestimated when considering the advancement of tourism in the region. Beaches, mountains, picturesque landscapes, and the seaside create a perception of unity with nature while being in the center of a modern and well-developed state. Meanwhile, governmental authorities and travel agencies take advantage of natural beauty when actively advertising their attractions and landscapes online (Green et al. 12; Woodside 34).

For example, Massachusetts’s official tourism website offers a profound description of the most valuable places and proposes travel plans that take advantage of different routes to comply with the interests of various social groups (Woodside 34). This factor depicts an understanding of the potential of the hospitality industry in the economic stability of the region. It helps form an additional source of revenue to add to the state’s income and increases investment in the segment’s growth.

The role of the state’s historical contribution to the development of the tourism sector cannot be underestimated, as it was one of the primary drivers for the attraction of the flow of tourists from the nineteenth century (Gassan 157). The popularity of Massachusetts can be explained by the critical importance of the area in the history of the United States of America (Volo 31). Thus, in the past, it was a center for revolution, which drove the rise of democracy in the United States of America (Volo 31). This aspect determines the popularity of the region among tourists and prioritizes its importance in building national revenue.

In turn, favorable economic conditions cultivated the growth of this segment and improved the cultural and socio-economic conditions of the community in the area. For instance, the unemployment rate has experienced a decline, from 4.9% in 2015 to 4.2% in 2016, while reflecting a potential rise in payroll and employment positions (Bureau of Labor Statistics par. 1).

Meanwhile, the value of the Total Nonfarm index tends to experience positive fluctuations, since the region has a tendency to focus on its industrial development (Bureau of Labor Statistics par. 1). These matters underline the fact that the state has a well-developed infrastructure, which contributes to additional investment in the tourism sector.

In the end, it could be emphasized that a combination of the reasons mentioned above has a substantial impact on the development of the segment, and contributes to the development of tourism and transportation infrastructures. It is apparent that the state government understands its beneficial location and the beauty of the regional landscape, and highly supports the growth of the tourism segment in the area. Furthermore, overall economic conditions offer a sufficient and well-developed infrastructure for the prosperity and growth of the tourism sector in Massachusetts.

The Beneficial Impact of Tourism on Massachusetts’s Society and Economy

Based on the factors provided above, it could be stated that the reason for the advancement of this sphere was revealed with the assistance of the analysis. It remains apparent that the tourism industry has a high correlation with the state’s economy, as it has a direct influence on job openings, salaries, and collection of the additional financial resources to spend on various spheres (Massachusetts Office for Travel & Tourism 3).

For instance, the Nonfarm index for leisure and hospitality have experienced a positive change, from 0.5% in 2015 to 1.9% in 2016, implying that the share of the hospitality industry and its profitability continue to grow (Bureau of Labor Statistics par. 1). In turn, this statistical information has a connection to an overall decline in unemployment rates (from 4.9 % in 2015 to 4.2 % in 2016) (Bureau of Labor Statistics par. 1). This factor implies that the development and support of the tourist segment not only generate an additional source of revenue but also have a positive contribution to the state’s payroll and possibilities for adding extra jobs to the economy.

The economic aspects mentioned above have a substantial impact on the wellbeing of society. In the context of Massachusetts, tourism creates additional job openings and adds to an increase in employment for the population (Bureau of Labor Statistics par. 1). Meanwhile, some practitioners tend to believe that the unemployment rate affects crime levels in the area (Siegel 51).

In the context of the presented case, the development of tourism in Massachusetts beneficially affects the state of the economy and increases the level of safety in the region. It could be said that the growth of tourism and other industries provides favorable conditions for continuous learning, research, and development. Consequently, this aspect boosts the competitiveness of the region, in terms of innovation, and makes it one of the leaders in the region (Massachusetts Office for Travel & Tourism 1).

In turn, tourism is beneficial for the improvement of the quality of service in the area (Ritchie and Crouch 48). Nowadays, service quality management is one of the definers of success in the industry (Mok, Sparks, and Kadampully 159). The presence of these trends is defined by changes in consumer behavior, as today, customers have more power to complain about products and services if they do not meet their expectations (Mok, Sparks, and Kadampully 159). Nonetheless, in spite of the fact that this novelty creates complications, it has a positive influence on the service sphere and increases its competitiveness in the country.

Speaking of social perception, the continuous development of tourism in the state enriches the local culture (Ritchie and Crouch 48). This cultural exchange improves the awareness of the locals about the world outside Massachusetts. This matter contributes to an overall upsurge in educational levels about ethnicities, cultures, and behavioral patterns (Ritchie and Crouch 48).

In this case, the link between the tourism industry and cultural enrichment improves the level of tolerance, as it implies the employees’ ability to adjust to cultural diversity within the workplace. To conclude, the growth of tourism has a reflection on the socio-economic spheres of the state by creating new job openings, generating an additional source of income, minimizing crime rates, and increasing educational levels. A combination of these consequences has a positive influence on the development of the prosperous and educated community in the state of Massachusetts.

Conclusion

In the end, it could be stated that the role of the tourism sector in the growth of the economy in Massachusetts cannot be underestimated, as it has a substantial connection with the overall economic performance of the state while increasing the wellbeing of the society in the region. The paper highlighted that Massachusetts’s tourism is comprised of a variety of components that ensure the attractiveness of the area to visitors from the country and around the world. These elements are interdependent, and understanding the importance of this connection assures only the best experience for tourists.

The primary reasons for the popularity of this segment are the natural landscape, historical significance, and favorable economic conditions. The understanding of the importance of these features explains the reasoning for taking advantage of all that the hospitality industry offers, and investing in its development. The easy interface and colorful look of Massachusetts’s official website justifies governmental interests and intentions with regard to the tourism segment.

Furthermore, the impact of tourism on socio-economic development was emphasized, as it was the principal goal of the paper. It remains apparent that the prosperity of the tourism sector is one of the state’s revenue-generating instruments, as its well-developed infrastructure contributes to increased spending on the part of visitors on entertainment. Meanwhile, according to criminology theory, the low level of unemployment minimizes crime rates. Consequently, tourism contributes to an increase in the quality of services and safety of the region. Lastly, its social influence cannot be underestimated, as it improves the educational levels and competences of the state’s workforce.

Works Cited

Bureau of Labor Statistics. Economy at a Glance: Massachusetts. 2016.

Gassan, Richard. The Birth of American Tourism: New York, the Hudson Valley, and American Culture, 1790-1830. Amherst: University of Massachusetts Press, 2008. Print.

Green, Anthony, William Hosch, Michael Levy, Robert Lewis, Amy Tikkanen, and Jeffrey Wallenfeldt. Discover America: Massachusetts: The Bay State. Chicago, IL: Weigl Publishers, 2008. Print.

Massachusetts Office for Travel & Tourism. 2014 Annual Report. 2015.

Mok, Connie, Beverley Sparks, and Jay Kadampully. Service Quality Management in Hospitality, Tourism, and Leisure. New York: Routledge, 2009. Print.

Ritchie, Brent and Geoffrey Crouch. The Competitive Destination: A Sustainable Tourism Perspective. Oxon: CABI Publishing, 2003. Print.

Siegel, Larry. Criminology. Belmont: Wadsworth Cengage Learning, 2012. Print.

Volo, James. Tea Party: The Foundations of Revolution. Santa Barbara: Praeger, 2012. Print.

Woodside, Arch. Tourism-Marketing Performance Metrics and Usefulness Auditing of Destination Websites. Bingley: Emerald Group Publishing Limited, 2010. Print.

Online reservation channel is not popular in a hotel sphere as it may seem at a first glance. More and more clients still prefer to use their telephones for booking a room. However, the low quality of telephone reservation channels lead to the reduced level of income because of clients’ refusal to work with hotels which do not have top quality telephone reservation channels.

Reading the article Hotel Voice Reservations: The Forgotten Channel by Doug Kennedy, it becomes obvious that online reservation is imposed on people due to the development of innovative technologies. Hotel managers consider online reservation as the simplest and the fastest way of making a reservation of a room. Moreover, online reservations are more convenient for hotels and managers who do not have to spend time on serving clients as reservation is made automatically. However, many people still prefer to turn to telephone reservation when it comes to action. Clients prefer to check the rooms, services and prices online but when making a reservation, people usually call hotels directly.

A high number of calls along with hotel managers’ assuredness that online reservations are much more convenient lead to the fact that many hotels do not have quality call operators who are able to inform clients about the services and prices a hotel provides. The article highlights these problems, and I definitely agree with the author. A receptionist is usually responsible for telephone reservations as well as for other services. Therefore, when meeting a client, receptionists usually drop calls and never call back. Besides, even when a receptionist receives a call, he/she is unable to explain everything in detail as a receptionist has many other responsibilities which are to be accomplished. Therefore, a conversation is abrupt in more cases, and it often leads to a client dissatisfaction and refusal to use the services of this or that particular hotel.

The author of the article stresses out that each hotel should have a trained person who is able to make telephone reservations in order to satisfy customers. This person is to be aware of the services a hotel offers, he/she is to have practical acquaintance with hotel rooms, restaurants, and other services the hotel provides. A telephone reservation operator is to listen to all voice messages if any and call back. It should be a separate person whose main responsibility is to make and receive calls.

Generally, there are specialized call centers responsible for these issues. Doug Kennedy says that a hotel manager is to visit a call center which serves a hotel and train operators who are responsible for online reservation in a hotel. Instructions are to be offered on a regular basis as well as the changes which might have occurred. Managers should also organize personal escort around the hotel.

Therefore, it may be concluded that if hotels improve their telephone reservation channels, they are going to increase their income by means of increasing the number of reservations. Even though the Internet is more convenient and allows to complete reservation automatically, a lot of clients still prefer to use telephones to make reservations. Therefore, if hotels are interested in increasing the number of clients, they are to improve their call system, and either to hire a professional operator or to pay the services of professional call centers.