Tourism in Supply Chain and Operation Management

What is the role of accommodation?

Consumers choose hotels after choosing destination, essential to attract overnight visitors, overnight visitors spend more money on eating out, shopping, etc.

What are the seven key management TSCM challenges?

Demand mgmt, two-party relationships, supply mgmt, inventory mgmt, product development, TSC coordination, and information technology.

What is an inside-out marketing strategy and give an example.

Doesn't give a shit what the market thinks. AKA Venice.

What were D'Angleterre's four core values?

Elevation (elevate your guests), timeless(ness) (proud of history), passion, and respect

What are the internal factors considered when scheduling flights?

Equipement maintenance, flight operations, facility constraints, and marketing factors

What are the three types of gate-usage agreements?

Exclusive use, shared use, and preferential use

What is the English Tourism Council definition of visitor attraction?

Excursion destination whose primary purpose allows public access for entertainment, interest, or education.

What is Turkish Airlines' current business strategy?

Expand out by doubling size of fleet, currently specialized in narrow bodied aircraft

What are the two architectural formats for theme parks?

Hub and spoke vs loop

Name three trade offs you make when planning a package tour?

1. Comfort vs price 2. Place vs transport 3. Tempo vs experience

How much of a trip's expenditure goes to accommodation?

33%

What is the distribution for tourist opinion on how important food is for CHOOSING a destination?

40% said "no importance" and 22% said "moderate importance."

What is the most challenging process in an airport?

Passenger and baggage screening (security screening) is most challenging bc all passengers and bags have to be scanned

Define catchment area.

Percentage of current traffic having origins or final destinations within a specified surface journey time

What is the Hu and Wall definition of visitor attraction?

Permanent resource developed and managed for the primary purpose of attracting visitors

What should you consider when making an itinerary?

Places, attractions, transport, hotel, food, logistics/coordination, tempo

Define the two types of inventory management.

Push = comes from demand forecast Pull = Assemble as you order

Name the seven locational pillars.

Quality of tourism infrastructure, tourism opportunities, quality of HR, regulations, political stability, cultural development, and price advantage.

What is the focus when planning for security?

Staffing

What are examples of sport and recreation events?

league game, championship, sporting events

Define "tour package."

A pre-arranged deal including at least two of the following: transport, accommodation, other tourist services accounting for a significant portion of the package.

What are Turkish Airlines' strengths?

Young and uniform fleet, Star alliance, cheap and good personnel, well-located hub, low oil cost

What are the disadvantages of hub and spoke systems?

Congestion at the central hub, increase in traveller's travel time, delayed luggage

What are the seven steps for planning a tour package?

1. Market research 2. Determine destination, dates, and providers 3. Set up contracts with principals 4. Calculate cost of tour 5. Produce brochure 6. Advertise tour 7. Issue tickets, vouchers, itinerary, etc.

Give the Tapper and Font definition of "tourism supply chain."

A chain that is made of the suppliers of all goods/services that go into the delivery of tourism products to consumers.

What is the Mitrasinovic definition of theme park?

A symbolic microcosm with a distinctive identity that proposes an emotional experience, a place of entertainment with homogenous semiotics which is intensely commercial and linked to media images

Define "transformation system."

A system where input is transformed into output in a certain order to deliver a product/service.

What did the Hong Kong study discover about food tourism?

About 1/5 of Hong Kong tourists came for the good, food was a strong driver for return visitors, and gastronomy added quality value to Hong Kong.

What are Tier 1 Supplier examples in the tourism industry?

Accommodation, transportation, Attractions, Dining, Shopping, etc.

What is the margin on aeronautical vs non-aeronautical revenue?

Aero = 15-20% while non-aero = 80%

What are the sources of airport revenue?

Aeronautical (airfield use) and non-aeronautical (parking, concessions, sale of mineral rights, etc.)

What is Turkish Airlines' mission?

Aggressive push to edge closer to the world's top airline players - more routes, more flights, more airplanes

What is the wave system?

Aircrafts arrive at approximately the same time and leave after the minimum transfer time

Why is there a challenge about knowing how many passengers will be arriving through the security checkpoint?

Airlines don't tell the airports

What are the external factors affecting flight scheduling?

Airport authorities, postal services, local communities, hotel/motel operators, travel agents, and air freight shippers

What is the relationship between airports and suppliers/subcontractors?

Airports outsource a lot of services like ground handling and cleaning. Most airports just supply the facilities while different companies carry out the functions.

What are some rules from the D'Anglitude?

Always on stage, perfectly styled, address guests in a traditional manner, proud of Danish roots, freedom to please, work as a team

What is the Merriam Webster definition for theme park?

Amusement park where the rides and attractions are based on a particular theme

How did regulation changes affect CPH airport security staffing?

Because of new pat down regulations, they have to staff a female and male staff member at all times. This changed teams that have been a team for years, overtime hours for women vs men, hiring criteria, etc.

Why is the tour operator so powerful in the TSC?

Because the tour operator is where the demand and product meet. TOs control what information is presented about a destination to a consumer, they often get to build the final tourism product, and they choose which suppliers are used in the experience

What was Niels Feerup's theme park process model used for?

Business turnaround

What is the ninth degree of freedom of the air referred to as?

Cabotage

What are the six styles of management?

Coercive, authoritative, affiliate (people first), democratic, pacesetting, coaching

What is a management contract hotel?

Company oversees all operations and employs all staff; owner gets a share of profits per room

What are examples of arts and entertainment events?

Concerts, theatre, art exhibits, installations, award ceremony

What are examples of business and trade events?

Conventions, meetings, exhibitions, markets, corporate event

What are the six characteristics of tourism?

Coordination intensive, perishable product, information intensive, product complexity, demand uncertainty, complex dynamics

What are the four objectives of operation performance?

Costs, quality, time, and flexibility.

What are six forms of planned events?

Cultural celebrations, business, arts/entertainment, sports/rec, political, and private functions

What are three factors for Flexibility in operation performance objectives?

Customization, mix flexibility (wide range of product/service, and volume flexibility (changing supply with demand)

What was D'Angleterre's mission statement?

D'Angleterre is a classic European icon anchored in local culture and history. They strive to provide a personalized and elegant experience. They are devoted to discretion, service, and luxury.

What is D'Anglitude?

D'Anglitude is the core values that the staff at D'Angleterre work to uphold. They are often modeled after personas like George Clooney and Crown Princess Mary.

What are the four major stages of event development?

Decision, detailed planning, implementation, evaluation

What are locational factors?

Factors that make a destination an attractive or unattractive location for intl hotels

True/False: Airports have major influence on the establishment of major airline hubs.

False. Airlines have limited influence because hubs are usually located in capital and major cities.

What are three factors for Time in operation performance objectives?

Fast delivery time, on-time delivery, and product development speed

What are examples of cultural celebrations?

Festivals, carnivals, religious rites, parades

What are some roles for a general manager?

Figurehead/leader, monitor, disturbance handler, entrepreneur, resource allocator, negotiator

What kind of airline uses the hub and spoke system often?

Flag carriers

How did the importance of restaurants change from selecting a destination vs arriving at a destination?

Food became very important

What are Tier 2 Supplier examples in the tourism industry?

Food manufacturers, equipment manufacturers, water and energy suppliers, aircraft manufacturers, waste disposal, etc.

What are Turkish Airlines' transformed resources?

Food, fuel, information, customers

What is "per pax?"

For one passenger

Which way does the information flow in a supply network structure?

From consumer to suppliers.

Which way does the service flow in a supply network structure?

From supplier to consumer.

What are some examples of "facility constraints?"

Gate positions, ticket-counter space, baggage handling, ground equipment, food service

Define tourism destination.

Geographic area with boundaries that tourists travel to with the primary purpose of tourism activities

Why is gastronomy important to certain tourist destinations?

Good alternative for destinations without the sun, sea, and sand feel. Also can revive destinations in the critical stage of the product life cycle.

Outline the spectrum of destination governance from public to private.

Govt dept, statutory body, PP partnership, trade association

Define destination mgmt

Guiding efforts in a place that has decided to pursue tourism as an economic activity

What are two factors for Quality in operation performance objectives?

High performance design (smooth and seamless product/service) and consistency in quality

What is the tourism sub-sector that provides the most employment?

Hotel industry

What are the characteristics of theme parks?

Inauthenticity is viewed as normal, an emotional escape, a consumption utopia, entertainment landscape, system of social order

What is CPH's catchment area?

Includes Sweden.

What are the advantages of hub and spoke systems?

Increase number of city pairs an airline can serve

What are Turkish Airlines' threats?

Increased competition from gulf carriers and alliance members, war in syria, difficulty of getting pilots, euro exchange rate, oil prices, and ownership in Europe is difficult bc it's a non-EU investor

What is a marketing consortium?

Independent hotels united in chains with quality standards

What is a franchise hotel?

Independent owners by the right to a business model, mgmt system, and brand

Define airport.

Integrated transport point that acts as an interchange where passengers can transfer between different modes of transport

How does stress and anxiety relate to concession spending in the airport?

It negatively impacts shopping. So the more stressed a passenger is, the less money they will spend in concessions.

What is CPH's productivity in x-ray screening compared to its competitors?

It's #1. Most efficient.

What is the trend in staff development in CPH since 2002?

It's been increasing the size of the security department because of 9/11

Where is Copenhagen Airport's price position compared to the rest of its competition?

It's on the lower price end which is good but it's still more expensive than places like Gatwick and Oslo.

What are Turkish Airlines' opportunities?

Large population in Turkey that mostly travels by road, EU market can't meet demand, can grow from smaller EU airports, new hub, market penetration into asia, market development of africa

What are the four categories for planned events?

Leisure, personal, organizational, cultural

Who is competing with flag carriers in the intercontinental market?

Lower-cost carriers (i.e. Gulf carriers)

Why is the 9th degree of freedom important for LCCs?

Made it possible for LCC to expand and actually compete with flag carriers. Because LCC operates in direct routes (not hub and spoke), cabotage made it possible for them to schedule more routes.

What is the hub and spoke system of planning flights?

Many flights from different places fly into a central location and fly out again; this maximizes transfer flight efficiency

What are characteristics of a flag carrier/full service airline?

National based/partly owned by govt, range of classes, meals and luggage included (though this is changing), focus on long haul and good service

What are the four levels of DMOs?

National, state, region, and local

Neophile vs neophobe?

Neophile = loves new things; risk-taker; seek novel environments Neophobe = fears new things; low-risk; familiar environments

Give the Zhang definition of "tourism supply chain."

Network of tourism organizations engaged in a range of different activities from supply to marketing the final tourism product at a specific destination, involving participants from the public and private sector.

What are the characteristics of a low cost carrier?

No frills, only online booking, single class, and focus on short haul

Define planned events.

Non-routine occasions that have leisure, cultural, personal, or organizational objectives set apart from the normal activity of daily life and whose purpose is to enlighten, celebrate, entertain, or challenge the experience.

Who is Bon Bon Land's competition?

Not Tivoli. It's more a trampoline or games for kids or shopping with the kids.

What do operation performance objectives determine?

Operation performance objectives determine the organization's competitiveness.

What were three areas for theme parks to improve on to increase consumer satisfaction?

Overall park experience (variety of attractions, value, etc.), park food, and park cleanliness

What are the characteristics of a tourism destination?

Overnight accommodation, destination mix, tourism marketing effort exists, coordinating structure exists, image exists of place in tourist minds, govt has laws for tourism, and there is a mixture of tourism stakeholders

What is the fastest seating method on an airplane?

Random process is faster than back to front but outside-in is the quickest

What is the main reason for eating out when on holiday?

Relaxation - 74.90%

What is an outside-in marketing strategy?

Respects needs in market

What's the ninth degree of freedom of the air?

Right to fly inside a foreign country without continuing into your own country

What are examples of private functions?

Rites of passage, parties, reunions, weddings

What are some examples of "flight operations?"

Runway length, fuel capacity, air traffic control, crew availability

What is generally the largest passenger-processing component in a terminal?

Security screening

Define destination governance.

Setting and developing rules and mechanisms for a policy, as well as business strategies, by involving all institutions and individuals

Name four kinds of hotels

Smaller and independent, marketing consortiums, franchise, and mgmt contracts

What is an airport's role?

Stress/boredom, transit point from one place to another

What are examples of political and state events?

Summits, royal spectacles, military (tattoos), political congresses, elections

What is the role of food for consumers?

Sustains life, ritualistic, part of celebration, socialization, sensory, and experience new cultures

What makes a successful destination?

The 10 As. Awareness, attractiveness, availability, access, appearance, activities, assurance, appreciation, action, and accountability

Who is the main customer of the airport?

The airline, not the passengers

Define "operation management."

The design and control of transformation systems that deliver the product/service at the right quality, at the right place, and at the right time.

What are two strengths of the Gulf carriers?

Their hubs are geographically located in convenient places so flights from Europe to Asia are split nicely in half for the journey; benefit from low-cost labor; often come from rich governments

How do airports compete with one another?

They compete to attract airlines. Once airlines are contracted, other service providers will be attracted. Compete on price and service.

What is the media's role in changing perception of food?

Tour operators and DMOs sponsor food programs, food is status symbol, and a search for authenticity

Where is the demand concentrated in a channel system for package tours?

Toward consumers narrowing down to the wholesaler/tour operator

Where is the product concentrated in a channel system for package tours?

Toward suppliers narrowing down to the wholesaler/tour operator

What are some examples of "marketing factors?"

Traffic flow, sensitivity of scheduling salability, load factors

What is the profitability of an airport dependent on?

Traffic volume. Revenues increase in proportion to passenger numbers while costs increase more slowly because of high fixed costs.

True/False: A company that bundles tour packages is required to have an operating license and bond arrangement in the bank.

True. This protects the customer from getting scammed. i.e. the tour operator collecting the consumer's money and running off.

Name four lower-cost carriers (Gulf carriers).

Turkish Airlines, Qatar Airways, Emirates, and Etihad Airways

What is code sharing and its benefits?

Two airlines use the same code to advertise to a bigger market and benefit from each other's brands and connect to distant destinations.

How will high speed trains affect CPH's catchment area?

Will make north Germany part of CPH catchment area.

What are Turkish Airlines' transforming resources?

airport hub, aircraft, staff

What are Turkish Airlines' weaknesses?

out of date IT system, hub is at maximum capacity, narrow bodied aircraft has low cargo capacity

What is the internal focus of D'Angleterre?

to deliver luxury