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Crisis Management in the Tourism Industry

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Nguyễn Gia Hào

Academic year: 2023

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To ensure sustainable development for those working in the tourism sector and for those who enjoy the services of this sector. However, the positive development of the tourism industry is gradually being threatened by negative events.

The living conditions of humans

In the extreme case of the United States, about 40 percent of marriages end in divorce after just 15 years. Man has difficulty adapting and absorbing all the changes in the technical environment as quickly as they occur.

Diagram 2: Development of average age
Diagram 2: Development of average age

Natural changes

This will have a particularly strong impact on cities, which have absorbed an above-average percentage of population growth in the past fifty years. Deviations in temperature in ºC (from the 1961-1990 average) Variations of the Earth's surface temperature for.

Diagram 5: Great natural catastrophes
Diagram 5: Great natural catastrophes

What is a crisis?

The advantage of this narrow version of the term "crisis" was the simple definition of crisis conditions within a company. Thus, they focus on a particular part of the crisis, the object of which is to deal with the crisis.

Diagram 7: Areas of knowledge within crisis research
Diagram 7: Areas of knowledge within crisis research

What are negative events in tourism?

While hard news puts the aspect of information first, soft news fulfills the entertainment needs of the recipient. The proximity of the event to the recipient is also an important criterion when assessing the value of news.

Diagram 8: Basic forms of negative events which triggered crises in tourism
Diagram 8: Basic forms of negative events which triggered crises in tourism

What is crisis management?

Depending on the process nature of the crisis and the distinction between its phases, we distinguish different types of crisis management and related activities. These new aspects are at the same time a special challenge of strategic crisis management.

Diagram 10: Phases of crisis management
Diagram 10: Phases of crisis management

The consumer as a sphere of activity

Even if the environment is damaged, the tourist must take the risk himself. In addition, all risks having a negative effect on the specific purpose of the holiday must be taken into account by the tour operator and communicated to the tourist.

Diagram 14: Memory
Diagram 14: Memory

The tourism product as a sphere of activity

If this is not the case, the destination suffers regardless of the competitive advantage that exists in additional benefits (see also example 9). This applies both to involvement in the conflict and to the location of the event. The tourist organization is the provider of services for the destination.

How important is the shape of the competitive advantage when it comes to negative events.

Diagram 19: Examples of tourist’s basic needs  and the corresponding tourism offers
Diagram 19: Examples of tourist’s basic needs and the corresponding tourism offers

Competitors as spheres of activity

Regardless of the options available to the affected organization, it is ultimately the consumer who decides on the success of the attempted abuse. From the point of view of the affected organization, it is beneficial that mutual action is taken to counter the event and its consequences. It consists of government representatives from different regions of the world (21), representatives from each of the different private sectors of the tourism industry (15) and leading experts in the field.

This first meeting of the Committee was followed by two regional meetings for Mediterranean countries where tourism plays a very important role (in Madrid, Spain on 30 January 2002 and in Tunis, Tunisia on 1 March 2002).

The state as a sphere of activity

It is important to remember the other side of the welfare state, which helps companies affected by negative events. For example, if a US citizen travels outside the US, from the US point of view there is at the same time an export of services from the receiving country's point of view.

In April 2002, twelve badly burned German tourists, victims of the attacks in Djerba (Tunisia), were repatriated.

Investors, personnel and other spheres of activity

From the personnel point of view, it must be taken into account that tourism companies have a strong interest in the temporary employment of personnel. for further personnel aspects, see also Section 7.2.3). Furthermore, the tourists' individual needs or national habits contribute to the employment of foreign staff such as bakers, chefs and tour guides.

Ranking of activity spheres

World Tourism Organization (2005), Tsunami: One Year on - A summary of the implementation of the Phuket Action Plan, WTO, Madrid. To be able to assess the suitability of early warning systems based on indicators or weak signals. First, areas of the organization that are particularly threatened by negative events or that are so important that they should not be exposed to threat at all should be identified.

Only then and on the basis of these findings should the company's environment be viewed by early warning systems to indicate possible changes and allow an immediate reaction from the organization's side (also internal areas of the company may be the causes of crises but should not be considered further as they are subject to normal management).

Identification of important areas and events

Mayerhofer's (1995) system for measuring the similarity of image transfer in the broadest sense uses the concept of "sphere of experience". On the other hand, no particular field of experience can be assigned to an object of assessment that is located closer to the center of the illustration. Knowledge of product positioning and the factors that influence it fall within the realm of normal business management.

It requires a good knowledge of product positioning and the factors that influence it, which is often absent.

Diagram 24: Cross-impact analysis
Diagram 24: Cross-impact analysis

Systems and methods of early warning

The particular challenge in this case lies much more in the correct interpretation of the possible consequences. The evaluation of terrorism and travel risk is of direct importance to the tourism sector. Such a warning was issued for the first time on the occasion of the SARS crisis.

The first information level concerns all available information - the 'general knowledge' - in the environment of the organization.

Diagram 26: Suitability of early warning systems in the situation matrix
Diagram 26: Suitability of early warning systems in the situation matrix

Preventive crisis management within the framework of corporate strategy

When following this strategy, the company must be aware that there can only be one cost leader in the sector, unless a focus strategy is followed for a certain segment of the market. To be relevant, experiential value strategies must take into account the values, lifestyle and experiences of the target group. It must still be emphasized that it is especially the long term that requires careful and thoughtful planning of the experiential value strategy, also from the point of view of negative events.

So there was a great dependence on the development of this customer segment and on the destination.

Preventive crisis management measures through strategic actions

In this extreme case, diversification means buying out or re-establishing the company. On the side of the company, security measures can be taken by forming liquid reserves. On the one hand, it is the company's job to represent these events in the relevant contexts.

In this way, a significant contribution to limiting the effects of negative events is achieved, which is advantageous for both the company and the public.

Diagram 32: Checklist for insurance coverage
Diagram 32: Checklist for insurance coverage

Basic forms of crisis handling strategies

With this proactive approach, Air-Berlin contributed actively and at a very early stage to spreading the news about the incident. In 1988, the most serious wildfires in the entire history of Yellowstone Park broke out. The activities of the affected organization are postponed until the post-active point in the crisis.

The essential advantage of a reactive handling strategy is that an intensification of the crisis by the company's own.

Generic planning

Special Advisers, who are selected according to the specific needs of the situation, join the Crisis Management Team. The responsibilities of the Special Assistance Teams (SAT) are defined in a Special Assistance Team Center (SAT-C) manual. Attend the morning meeting of the crisis committee (if possible, at 7.30 am for a short briefing).

Instruments: Morning press clips, nightly reports on the situation room Objective: Forward results to the head of the crisis committee.

Diagram 33: Job description (head of communications)
Diagram 33: Job description (head of communications)

Contingency planning

As information is received, a reliable and comprehensive picture of the situation must be quickly drawn up and presented to decision makers. Therefore, information channels should create as direct a link as possible between the location of events and decision makers. Create a "message board" for posting storm status notices, warnings, evacuation notices, travel advisories, and emergency and help phone numbers.

Determine security requirements during emergency preparations, storm onset, and immediately after the storm.

Diagram 37:  Checklist for the preparation against tropical storms
Diagram 37: Checklist for the preparation against tropical storms

Training

Care teams are one of the most important functions of crisis management for an organization. The second group of people revolves around the management of the organization who will be responsible for crisis management. Skills in times of crisis One of the skills that especially needs to be trained in crisis situations is prioritization.

The main objective of the training is to get acquainted step by step with the specifics of a crisis situation.

Preventive planning

Only the different frameworks caused by the negative event need to be considered. The effects of the instruments are determined by the chosen competitive strategy, which conversely also affects the selection of the instruments in times of crisis. Before an in-depth consideration of the various instruments takes place, a few important questions arise that must be clarified before choosing instruments, determining the marketing mix, and finally using the instruments.

Under normal circumstances, the form to which the market is targeting must be determined.

Basic decisions

Even under normal circumstances, the effect of the marketing instruments is different depending on the time factor. Another peculiarity of marketing in times of negative events is the micro level of timing. Furthermore, the time at which an adverse event occurs affects the determination of the total duration of instrument employment.

Consequently, it seems reasonable to differentiate the use of instruments in these stages.

Diagram 38:  Points in time
Diagram 38: Points in time

Product policy

With the launch of new products – for example new destinations within the affected country – the current special media attention can be used effectively to get the product out to a wider audience. Product variations, which aim to improve product quality, can often be observed in practice. However, when it comes to negative events, tourists from Japan are considered one of the most sensitive national segments.

After a negative event, they quickly disappear and destinations need a long time to recover and convince Japanese tourists that their attractions are safe and back in place.

Price policy

Distribution policy

Communication policy

Gambar

Diagram 1: Development speed
Diagram 2: Development of average age
Diagram 3: Size of households (in percentage)
Diagram 4: Marriages and divorces
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