Étiquette : indicators

Catégories
Management

Meeting DMO challenges

Responsible for developing and promoting tourism in their respective regions, destination management organizations (DMOs) are the backbone of the travel industry. Challenges await them as they consider new funding formulas, adopt new technologies, deal with heightened competition, and adapt to changing consumer needs.

Recognizing the importance of DMOs

Working in an industry composed primarily of small and medium-size businesses, DMOs are – first and foremost – « umbrella » organizations, working in a very heterogeneous environment. First-generation DMOs were simply public organizations funded entirely by government, and although this type of structure continues to predominate, many new forms have emerged at the national, regional and even municipal levels. 

In Canada, the Canadian Tourism Commission is an example of a public/private partnership, just like the national DMOs in the United Kingdom, France, Denmark and Australia. In countries like Germany, Italy, Greece and Portugal, the national DMOs are entirely publicly funded, while some destinations have taken the opposite tack, seeing government intervention as unnecessary and relying instead on natural market forces. This is the model that prevails in the US, the Netherlands and Japan. (In the case of Japan, the national tourism bureau was simply privatized.)

Moreover, a growing number of tourist destinations are establishing public/private partnerships to set up destination management systems. BonjourQuébec.com, an alliance of Tourisme Québec and Bell Canada, is one such example. The WTO and the United Nations Conference on Trade and Development (UNCTAD) both encourage this approach.

Need to adapt

In the constantly evolving world of tourism, DMOs must keep up with the times and adapt. According to Arthur Oberascher, CEO of the Austrian National Tourism Office, the major problem for DMOs is their traditional focus on supply, catering as they do to the interests of their member businesses. In fact, they must better understand demand so they can adapt to consumer needs. DMOs must take on the role of knowledge brokers, acting as information clearinghouses for consumers and suppliers alike. Ultimately, DMO managers, just like hotel managers, should have access to daily activity reports: inventories, customer and spending profiles, financial analyses, etc. As a matter of course, DMOs should be linked 24/7 in a communication network with destination suppliers. Although we are obviously not there yet, this gives us an idea of the direction we should be taking.

Furthermore, increased consumer use of the internet to research tourism destinations and purchase travel products is one of the major changes to the DMOs’ operational environment. DMOs have to consider this new consumer attitude and adapt to the digital information age. According to the WTO, while the majority of national organizations have e-commerce strategies, at least half of regional and local outfits do not.

Case study: East of England Tourist Board

In their desire to acquire market intelligence, DMOs, like those in Austria and the East of England, have begun to redefine their areas of activity. Assuming the role of intermediary, these organizations are acting as knowledge brokers by using information about consumers to help the businesses who provide travel products and services.

For example, the East of England Tourist Board uses Tiscover, a destination management system, to encourage tourism organizations to offer packages on their website. Called UNITE, the platform enables suppliers to easily create packages using a content management system. The tourist board offers ongoing training and support to users as they familiarize themselves with the technical requirements. In fact, the challenge is more cultural than technical, because most small and medium-size businesses are not very familiar with this form of marketing.

Founded in 1991, Tiscover acts as a destination portal for Austria, Germany, Switzerland, Italy and the United Kingdom.

Tourism New South Wales: using e-business application

Many DMOs wonder how to best communicate and transmit their product information to various international markets at a low cost. This was the challenge facing Tourism New South Wales (TNSW), a regional tourist board in Australia.

The tourist guide for Sydney and the New South Wales region is the single most important tool available to consumers planning a trip. Since it would be prohibitively expensive to send this 150+ page document to potential visitors from the Americas and Europe, TNSW instead turned to the private sector, partnering with OnlineDM and Sampson Carroll to publish an international, interactive version of the tourist guide.

This interactive brochure uses mobileBrochure technology, a platform developed by Mobular Technologies.

The format offers a number of attractive features:The documents created are much smaller than traditional PDF files. This means they can be emailed without clogging the bandwidth of either sender or recipient. For example, the email for an interactive 200-page catalogue would generally be smaller than 20 k.

  • The interface is very user-friendly, incorporating pull-down menus, regional content, a search engine, etc.
  • The format is embedded in an email and does not require any plug-ins, attachments or reader software.
  • Unlike hyperlinks, these documents are not HTML messages that redirect the consumer to a Website.
  • User interaction with Mobular documents can be thoroughly monitored; in other words, usage data are saved in real time and may be accessed by the sender through a dedicated password-secured site. With this feature, DMOs can find out how many people have consulted the document, what search terms are used most often, which regions attract the most interest, the most popular pages, and so on.

A number of DMOs – those in Wisconsin, Maine and San Luis Obispo County in California – have made this technology part of their marketing strategy. With vacations increasingly planned at the last minute and traditional travel guides only consulted once travellers are on-site, e-brochures are a logical solution.

Sources:

– Delgado, Joaquin A. and Maggie Bowen. « DestinationFinder: A Travel – Focused Search Engine, Portal and Recommender System for the DMO Marketplace, » talk given at ENTER 2004.
– Gretzel, Ulrike and Daniel R. Fesenmaier. « Information Technology Use and Organisational Approaches: A Comparison of Destination Marketing Organizations in the United States and Canada, » National Laboratory for Tourism and eCommerce, 2002.
– Mintel Group. « Destination Marketing, » Travel & Tourism Analyst, No. 5, April 2005.
– Travel Research International. « Roles and Responsibilities in Tourism Support and Promotion in the Yorkshire and Humber Region, » prepared for Yorkshire Forward, December 2003.

Catégories
Facts and figures Geographic markets Management

Number of tourists or tourism revenues?

Should tourism-industry growth be measured in international arrivals or in economic benefits? Which category would we rather be performing best in? Where does Canada stand in the stats? In a country-by-country comparison, we realized we were on the wrong track in trying to analyze the increase in international tourism revenues in 2004 compared to 2003.

Baffling figures

The World Tourism Organization (WTO) reported that – after declining for three consecutive years – international tourism revenues rose 9% in 2004, while also making it clear that this increase was expressed in local currencies at constant prices, thus neutralizing the effects of exchange rate fluctuations and inflation.

When you look at the 2004 growth of international tourism revenues over 2003 in US dollars (WTO statistics), there is much to be amazed by!

  • Worldwide, the increase was 18.8%.
  • Asia-Pacific posted an increase of 31.8% and the Middle East 24.8%.
  • In Europe, only one country (Hungary) posted growth of less than 10%.
  • In Asia-Pacific, a majority of destinations (12 out of 15 countries) experienced an increase of more than 20%.
  • Canada can be thrilled with a 21.8% increase in tourism revenues.

However, when you look at the 2004 growth of international tourism revenues over 2003 in euros (WTO statistics), there is much to be disturbed by!

  • Worldwide, the increase was 8%.
  • Asia-Pacific posted an increase of 19.8% and the Middle East 13.5%.
  • In Europe, only two countries (Ukraine and Poland) posted growth of more than 10%.
  • In Asia-Pacific, just under half the destinations (six out of 15 countries) experienced an increase of more than 20%.
  • Canada did well with a 10.7% increase in tourism revenues.

In light of these statistics, it becomes difficult to compare revenue growth rates among countries. In effect, if the yen gained more ground against the euro over the year than the Canadian dollar did, the growth rate reflects the change in the exchange rate as much as the change in revenues. It would be fairer and more illuminating if the revenue statistics were produced in local currencies and constant prices.

In which category do we want to perform best?

France was the No. 1 destination in the world in international arrivals, but third in tourism revenues. And not only did France post the worst showing in terms of average spending per international arrival among the top 12 revenue-makers, it performed worse than many other destinations as well. Conversely, the US was third in arrivals, first in revenues, and did very well in average spending (Table 1).

Unfortunately, the lack of statistics on such factors as length of stay prevents a more precise picture of the situation. But other interesting points emerge from juggling the statistics (tables 1 and 2):

  • The US had 38% fewer arrivals but 45% more revenues than France. The tourist visiting the US spent three times more than in France, or $1,616 US versus $544 US.

  • The US and Germany did well in all three categories (revenues, arrivals and average spending).

  • In 2003, Australia was the top performer in average spending, according to the statistics (4.4 million arrivals, $10.3 billion US in revenues, average spending of $2,370 US). In 2004, it was in 10th position in revenues, but did not make it into the top 20 in arrivals (the Netherlands was in 20th place, with 9.6 million). It essentially posted the same revenues as Canada, with four times fewer arrivals than Canada.

  • Japan and Belgium (2003 arrivals data) were in the top 20 in revenues (in 20th was Malaysia, with $8.2 billion US), but did not make it into the top 20 in arrivals. Their ratio of average spending was obviously very high.

  • Although they didn’t make it onto the list of top 20 revenue earners, many countries (Table 2) managed to turn in better performances on average spending than some of the top 20 revenue-earning countries.

  • Hong Kong, Poland, Hungary and Ukraine, all in the top 20 in arrivals, fared poorly in average spending, at less than $500 US.

  • Despite six million arrivals, Tunisia did not manage to generate substantial economic spin-offs, with average spending of just $318 US per international arrival.

  • With average spending of $702 CAD in 2004 (3.3 million foreign tourists and 2.3 billion CAD in revenues), Quebec surpassed the Canadian average.

What should we conclude?

When figures show France can be proud of recording 75 million international arrivals but that it managed to obtain an average spending rate of only $544 US, you have to ask yourself if the statistics speak for themselves, if they should be challenged, if information essential for accurate analysis is missing, if the methodologies were consistent?

An analysis of the data leads to the conclusion that more arrivals do not necessarily equal more revenues. In this vein, many countries would like visitors to spend more.

In the UK, the Office for National Statistics recorded an 11% increase in tourists in 2004 (27.3 million) compared to 2003, and an 8% gain in revenues (£12.8 billion). Despite these positive results, VisitBritain is obviously working to raise visitor numbers, but in particular to boost how much they spend.

Among the leading destinations, Italy had a relatively poor 2004 compared to 2003. The 2.2% dip in the number of overnight stays (336.8 millions) and the 2.4% decline in the average length of stay (4.06) cast a shadow over the revenue picture.

The situation was similar for tourism professionals in Spain, where « fewer tourists and more profitability » has become the new credo of major hotel chains and others in the industry. Government officials also feel it would be better to have fewer tourists, but for longer stays. Visitors numbers advanced 3.4% in 2004 (53.6 million), but revenue volume did not keep pace, constituting a drop in average spending.

In Quebec, the Association touristique régionale (ATR) de la Gaspésie faced a similar situation: while tourist numbers rose, visitors were not staying as long or spending as much as previously. To counter the problem, the ATR increased its presence in promotional markets, invested in training programs based on the client approach, and launched a « Quality » initiative.

Obviously, the methodology and recording of data can differ from country to country, making comparisons difficult. But beyond the figures, the question remains interesting: is the goal to attract more tourists with all the consequences of that, or is it to increase economic benefits in a perspective of sustainable development?

Sources:

– Alves, Jose. « L’Espagne remet en cause son modèle touristique, » Les Échos, No. 19338, January 27, 2005, p. 26.
– McGrath, Ginny. « Britain Needs Big Spenders, » Travelmole, February 9, 2005.
– World Tourism Organization. « Tourism Highlights, » 2005 edition.
– Voilà.fr. « L’Italie a connu une mauvaise année touristiques en 2004, » [www.voila.fr], February 11, 2005.

Catégories
Facts and figures Geographic markets Management

Statistics are not always what they seem

Everyone – those in the industry, government bodies, academics, journalists and more – uses statistics from the World Tourism Organization and Statistics Canada, thereby contributing to the dissemination of this data. However, a closer look at these statistics reveals that things are not always what they seem. Methodological considerations aside, here are a few examples of what these statistics do not tell us!

Canada may no longer be one of the WTO’s top ten international destinations, but… when it comes to the tourism statistics produced by the World Tourism Organization (WTO), the data collection methods differ from one country to the next.

When compiling tourism data, some countries only count tourists, others include both tourists and same-day visitors, while still others report one tourist more than once during a single visit, because the tourist is counted each time he or she stays in a different hotel (see the table below).

If all countries used the same data collection method, the WTO’s infamous international ranking would be much different and Canada’s position would rise. Currently ranked 11th, Canada compiles its statistics using the TF method (see table), in other words, by simply counting the number of international tourists who enter its borders. The United Kingdom and Hong Kong, ranked 6th and 7th respectively, include both tourists and same-day visitors in their numbers (VF method). If Canada used the same method (tourists and same-day visitors) as the United Kingdom (27.7 million) and Hong Kong (21.8 million), it could add the 17.8 million same-day visitors who entered by car in 2004 to its 19 million or so international arrivals and thereby surpass both in the ranking. Germany and Austria, which rank 9th and 10th, employ the TCE method to compile their data, which means that if a single tourist stays in four different hotels during his or her stay, he or she is counted four times.

Tourism receipts: local currencies vs. US dollars

The WTO reports international tourism receipts in US dollars and in local currencies at constant prices. When tourism receipts (in yen, pesos, Euros, etc.) are converted into US dollars, figures can be compared and analyzed and used to create an international ranking. However, expressing receipts in local currencies at constant prices neutralizes the effect of exchange rate changes and inflation. When the US dollar depreciates against a given currency, this situation can inflate tourism receipts converted into US dollars. For example, Spain’s tourism receipts climbed 14.1% from 2003 to 2004 when expressed in US dollars, while they rose only 3.8% when expressed in Euros (the local currency). The same thing was true for Australia. Its receipts jumped 25.5% in 2004 when they were converted into US dollars, but climbed only 10.7% when they were expressed in constant Australian dollars. In addition, international tourism receipts include revenues generated by both tourists and same-day visitors.

Tourist activities

Statistics Canada has developed a special tool for finding out how many people engage in a given activity when travelling, but the Canadian Travel Survey (CTS) and the International Travel Survey (ITS) have different ways of reporting the number of participants. For example, let’s say that three people took a trip together. During their stay, one of them went shopping while the other two played golf.

  • ITS – Regardless of which person in the group answers the survey, Statistics Canada will count 3 people as shoppers and 3 people as golfers.
  • CTS – If the person answering the survey is the one who went shopping, then Statistics Canada will count 3 people as shoppers and 0 as golfers.
  • CTS – If the person answering the survey is one of those who played golf, then Statistics Canada will count 3 people as golfers and 0 as shoppers.

A solo traveller is, by definition, a person travelling alone…or is it?

Statistics Canada has a very different definition of solo traveller. According to the CTS, a person is considered to be travelling alone if they are not accompanied by someone from the same household. Therefore, a person is reported as a solo traveller even if:

  • he or she is accompanied by a family member (mother, daughter, brother, etc.) who does not live under the same roof,
  • he or she is travelling with friends, or
  • he or she is on a group tour package.

For the ITS, the method is different. People are only considered to be travelling alone if they are unable to provide any information on the expenditures and activities of the people accompanying them or if they are part of a group. However, as of 2005, the CTS was replaced by the Travel Survey of Canadian Residents, which uses the ITS definition of a person travelling solo.

Statistics will never look quite the same

When the WTO publishes its Top Ten, the data is disseminated around the globe without a word about the differences in collection methods. Statisticians must obviously work with a number of limitations if they wish to make sense of the information they gather. However, a closer look at the methodology sheds new light on the mishmash of numbers known as statistics and the way in which they are interpreted!

Sources:
– World Tourism Organization. [http://www.world-tourism.org/facts/menu.html]
– Statistics Canada, Canadian Travel Survey
– Statistics Canada, International Travel Survey
– Statistics Canada, International Travel, Advance Information, December 2004, vol. 20, no. 12, released February 2005.

Catégories
Management

Understanding performance evaluation

In tourism, performance evaluation involves objectively assessing projects completed to date according to a predefined plan, whether this relates to a policy, a program or a strategy. Such an evaluation relies on clearly defined goals, pertinent indicators and a number of information sources that are too often incomplete.

Various information sources

Databases of strategic information are produced by various sources. For example, Statistics Canada supplies a wide range of tourism-related statistics. Tourisme Québec conducts studies and research on specific products, and certain tourist regions have developed performance indicators for accommodations, attractions, activities, events, business travel, and so on. However, the information obtained can be several years out of date – this is often true of statistics – making it of little use for strategic purposes. Furthermore, since methodology and data collection can differ from one source to the next, data are often difficult to compare.

An important strategic tool

To clearly understand tourist behaviour on a continuous basis, and measure monthly and annual changes in various tourism sectors, it is vital that information be obtained in as close to ?real time? as possible to encourage effective decision-making. Therefore, data must be produced rapidly and – more importantly – be integrated into a marketing plan or development process that enables managers to better evaluate their performance in terms of their own objectives.

An ongoing cycle

The evaluation process begins when goals are set for the plan, strategy or program. This step is crucial because it creates a foundation for developing evaluation mechanisms and selecting performance indicators. Of course, the goals set must reflect the concerns of the entire industry. In addition, well-defined goals share some basic characteristics: they are specific, measurable, attainable (given the resources available), realistic and timely.

The next step is to define pertinent indicators to measure the progress made toward the goals and supply information for decision-making. These indicators should be:

  • Useful. Are the indicators truly appropriate for the decision-making process? Are they relevant to a wide range of users? Can they be used to assess the actual changes brought about by the action taken? For example, a study of the complaints registered at various tourist information offices could certainly be used to evaluate visitor satisfaction;
  • Reliable. Are the information sources recognized and reliable? Is the research methodology valid? Are the findings accurate? In Canada, the primary source of reputable statistical data is still Statistics Canada, even if the information is sometimes incomplete;
  • Timely. What is the most opportune time to evaluate performance? For example, before reprising a promotional campaign to attract off-season visitors, one must ensure the preceding campaign successfully achieved the goals set in the marketing plan, by measuring the number of requests for information, the number of packages sold, and so on;
  • Comparable. Will the indicators supply data comparable to data obtained from similar companies or organizations? It is easier to compare results when data are collected using standard classifications. For example, when most members of the industry use specific age groups for the socio-demographic breakdown of their customers, it is best to adopt the same groupings to make comparisons easier. Obviously, this means one must previously research the primary indicators and information sources used.

In addition, when defining indicators, it is essential to identify certain parameters like:

  • Frequency. How often is information required? Monthly? Quarterly? Annually?;
  • Participation. Who is involved in the process (data suppliers and users)? Who will be in charge of collecting the data? Is co-operation needed from partners? Establishing a partnership among stakeholders is key to the success of the evaluation process;
  • Cost. What financial and human resources are available to perform evaluation-related tasks? Are these resources sufficient to carry out all the steps of the process? Is there any chance costs could be shared among various partners?;
  • Information sources. What is the best way to obtain this information? Are any studies, statistics or information sources currently available? Should new surveys or studies be planned? How should one fill in missing information?;
  • Expectations. Do partners or financial backers have specific expectations of the evaluation process?

Once objectives and indicators have both been clearly defined according to the previously identified characteristics and parameters, the evaluation itself can produce an honest assessment of the projects already carried out, whether they refer to marketing activities, economic impact, product development, human resource management, or information services.

In fact, all sectors that require enlightened action and decision-making should be evaluated. Then, the information should be disseminated to all partners involved in the plan, strategy or policy.

Sources:
– British Tourist Authority. «A Strategy for the Sustainable Growth of Tourism to Britain», September 2001
– Tourism New Zealand. «Statement of Service Performance, Annual Report 2003».
 

Catégories
Human resources Management

Front-line ambassadors: a valuable resource

The tourism industry is one sector in which the human element is absolutely vital to delivering the promised brand « experience » the customer expects. This is particularly true in the hotel industry. Employees – who really should be called « front-line ambassadors » – usually handle the initial contact between customers and the organization; these individuals make the first impression on visitors and reflect the official image of the company. Is this key element of the hospitality industry receiving the attention it deserves?

Communicating the message is not enough

According to William Fitzgerald of Hotel and Motel Management magazine, a hotel's performance – measured by revenue per available room (RevPAR) and average daily rate (ADR) – depends directly on its ability to make its front-line employees true brand ambassadors. However, few tourism-based businesses know how to engage all their workers in this internal branding effort, which is the ideal opportunity to provide a concrete example of the values associated with the brand.

Today's consumers are extremely sceptical when it comes advertising. In 1987, the Yankelovich Monitor estimated that approximately 13% of Americans had any confidence in the ads they see or hear; by 2002, this percentage had dropped to a mere 7%. Although many businesses emphasize their brand in their advertising, very few of them, unfortunately, make the necessary effort to ensure that all employees work together to deliver on the brand promises customers come to expect.

Happy employees mean satisfied customers

Front-line employees are not the only ones who are key to making a visitor's stay unforgettable. It is a group effort, from the desk clerk to the housekeeper. Of course, it is difficult to wring stellar service out of employees who dislike their work.

In the US, the situation is worrisome. A survey conducted by HR Magazine showed over 75% of US workers are either « totally turned off by their jobs » or « do just enough to get by ». It goes without saying that such attitudes are unacceptable in a service industry.

Performance evaluation measures

Some businesses set up performance evaluation mechanisms to verify whether their goals are being reached. Before defining quality standards, it is a good idea to consider the types of customer demands one must deal with (in other words, concrete examples of what a company promises its customers). For example, festival organizers could decide that a quality standard would be to respond to any information requests within five working hours, either by phone, fax or email.

The variety of customer demands must reflect the clientele's actual expectations. For this reason, visitor surveys can be an effective strategy for accurately determining what customers want.

Delivering on the promise

Even if we properly train our employees, deliver motivational speeches and hire the best talent available, we cannot be certain the employees in place are acting as true brand ambassadors if we do not assess whether service quality standards are being observed.

One way to do so is to hire « mystery customers » to evaluate service delivery. Corrective measures can then be adopted, according to the observations gathered. This approach also has the advantage of enabling employers to set up a reward system for star employees. By instituting quantifiable, measurable performance goals, the employer can occasionally offer performance bonuses to employees who attain service quality targets. Another, more traditional, tool is to conduct regular customer satisfaction surveys.

Sources:
– Conseil québécois des ressources humaines en tourisme. « Enquête sur les pratiques de formation, » La pause RH, January 2004.
– Huigens, Bill. « Customer Service: Will somebody please define this? », HVS International, August 25, 2004.
– Fitzgerald, William. « Successful hotels teach employees to be brand ambassadors, » Hotel and Motel Management, No. 219, June 21, 2004.
– Conseil québécois des ressources humaines en tourisme and Emploi Québec. « Diagnostic des ressources humaines en tourisme – Horizon 2004-2009, » October 2004.
– Pan, Crystal. « Human Element of Customer Service – Personal touch is the golden key, » Hotel News Resource, November 9, 2004.

Catégories
Facts and figures Management

Travel intentions vs. actual travel

The increased number of polls used to determine travel intentions has contributed to the tools used by industry decision-makers. Unfortunately, the existence of more surveys has not necessarily translated into a more accurate portrait of the future. In fact, a look back uncovers major discrepancies between Canadian travel intentions and actual travel.

It is common practice for tourism stakeholders to consult tourism forecasts when developing business strategies. People are periodically surveyed on their travel intentions so pollsters can anticipate the short-term tourism demand. We are accustomed to looking forward, but what about taking a look back? The industry has rarely taken the opportunity to compare stated travel intentions with the actual number of trips taken.

To conduct this study, we reviewed Canadian travel intentions over the past five years. To ensure reliable, homogeneous results, we looked at the findings of a poll published twice a year by the Conference Board of Canada; conducted at the same time each year, these surveys follow the same methodology and may be readily compared.

For the purpose of our analysis, we thought it best to compare the growth rate of planned vacations with the growth rate of reported trips (that is, actual trips taken). Absolute numbers are difficult to reconcile because, while vacations usually refer to stays of three days or more, Statistics Canada survey data on declared travel includes any overnight leisure trip.

Survey reliability: myth or reality?

Should the reliability of forecasts be called into question? An analysis shows that projections have proven to be very different from actual outcomes when it comes to the number of trips taken by Canadians. During the five years studied, the annual growth rates of planned trips and actual trips diverged by 17% on average, a significant gap. Furthermore, the difference between forecast and reality was never less than 10%. Obviously, many factors, including unforeseeable events, have a strong influence on the performance of a given tourism season. For example, the SARS crisis dealt a severe blow to Canadian tourism in 2003. A closer look at each year helps elucidate the reasons behind the discrepancies:

  • In 1999, the economy was in full swing and the stock market was reaching new highs. Actual travel surpassed expectations by 10%.
  • In 2000, the high-tech stock market bubble burst and the economy began to show signs of flagging. Actual travel was 14% lower than planned travel, indicating more Canadians decided to stay home that year.
    In 2001, the travel industry was rocked by the catastrophic events of September 11. However, since most vacations had already been taken before the day of the attacks, actual travel was nonetheless 14% higher than expected. Forecasts had underestimated the strong economic showing of the first three quarters of 2001.
  • In 2002, the «post-September 11» effect had a major impact on travel intentions, which dipped to an unprecedented low. In actual fact, however, Canadians resumed travelling faster than anticipated and actual travel surpassed forecasts by 15%.
  • In 2003, against the backdrop of the war in Iraq, the SARS crisis was a decisive factor in the travel decisions of many Canadians. Surveys were unable to foresee the extent of the crisis and, as a result, actual travel trailed planned travel by 21%.
  • The forecasts for 2004 once again indicate negative growth and the industry remains concerned about year-end results.

Intent is not action

Unforeseeable factors aside, there is a significant difference between the absolute number of trips taken and the number of trips planned. Generally speaking, approximately 60% of Canadians actually follow through on vacation plans made six months earlier.

According to the Conference Board, some 20 million Canadians expressed interest in travelling during 2004. This represented an 8% drop compared to 2003 travel intentions. Although one can predict the direction of the economy with some success, other factors like weather conditions, exchange rates and disruptive events are difficult to anticipate and have a major impact on consumer travel decisions.

For decision-makers, tourism forecasts make up just one variable in a complex equation involving completely unpredictable elements. Travel intention surveys may herald an annual trend, but they are no substitute for managerial instincts and should not form the basis of the decision-making process.

Catégories
Human resources Management

The challenge of staff scheduling

In the travel industry, the most challenging aspect of staff planning is adjusting the number of available workers to meet tourism demand, which fluctuates widely, depending on the time of year. Managers must therefore be able to predict this demand and use the information to determine the number of employees needed. Cornell University recently examined the issue and has proposed a guide for industry decisionmakers.

The importance of effective human resource planning

Although staff planning can often pose a real problem for tourism business managers, it is nonetheless crucial to the smooth running of an industry that experiences such extreme seasonal fluctuations. After all, labour is often the single largest operational expense for such businesses.

A dedicated staff-scheduling tool can have a major impact on an organization’s productivity. Businesses forced to operate with insufficient staff or poorly trained employees can face dire consequences: shoddy customer service; frustrated, overworked employees; lost sales; etc. And the other extreme is no better: hiring too many workers can reduce profit margins and diminish staff morale if employees cannot work the number of hours they were expecting to work.

Where to start?

The primary challenge facing managers is to adapt their operation’s management to the forecast demand. For this to succeed, the human resource planning process must involve three major steps:

  • Assess demand as accurately as possible. In other words, look at the factors that generate or influence the amount of work for staff. If a manager does not have basic, accurate indicators with regard to the firm?s clientele, this step will not be possible.
  • Translate the demand forecast into the actual number of employees needed (that is, the number of hours and the staff necessary for each required skill). It is also important to set specific productivity standards (e.g., how many housekeepers for X number of clients, given the average time needed to clean a room or the maximum amount of time a customer should wait for a room, regardless of time of day or how busy things are). Of course, managers should also maintain a clear idea of the economic consequences of these standards, as well as the potential impact should they not be met.
  • Create employee schedules using available manual or computer-driven aids.
    Each employee has individual work preferences, especially with regard to tasks, breaks, assigned co-workers, vacation time and scheduling, etc. In many cases, the preferences of one can complement those of another (for example, a preference for weekend or weekday shifts). Managers who take the time to discover what each employee prefers can create work schedules that are reasonably well adapted to the needs of both staff and business. This translates into enhanced job performance and better customer service.

Selecting the proper tool

There are two ways to create responsive employee schedules that consider both customer demand and staff needs: the human method and the technological solution. Although the first method can provide good results, managers who use this must devote a lot of time to scheduling. With the other approach, computer software automates the design of work schedules, simultaneously creating demand forecast models and taking into account employee preferences.

A good workforce scheduling system can be a wise choice, particularly for businesses with over 50 employees. There are a wide variety of systems available. Windows-based software can be purchased for under $1,000, while bigger organizations can purchase a customized scheduling solution for several hundred thousand dollars. According to Gary M. Thompson, the author of a Cornell University study on the topic, a good system should offer the following characteristics:

  • An intuitive graphical interface for editing schedules
  • A good scheduling engine that can use the parameters provided to create an optimal staff schedule that meets the company’s needs
  • The ability to inventory and prioritize individual employee preferences
  • The option of prioritizing various constraints and assigning greater importance to those that must be addressed
  • A high degree of flexibility, enabling the system to respond to various complex planning scenarios
  • System costs should be in line with the benefits

According to Adèle Girard, executive eirector of the Quebec Tourism Human Resource Council, there is a need to equip managers with effective planning strategies. However, such strategies are only viable once a business has a hiring policy. She notes that Aéroports de Montréal, Delta Hotels and the Société des casinos du Québec are among the organizations to emulate, in terms of human resource planning.

Sources:
– Thompson, Gary M. «Workforce Scheduling: A Guide for the Hospitality Industry», The Center for Hospitality Research at Cornell University [www.cornell.edu], CHR Report, Vol. 4, No. 6, April 2004.
– Tsaur, Sheng-Hshiung and Y.-C.Yi-Chun Lin. «Promoting service quality in tourist hotels: The role of HRM practices and service behaviour», Tourism Management, Vol. 25, No. 4, August 2004, p. 471-481.