Challenges Confronting Tourism and the Travel Industry
When it comes to volatile companies, many come to mind. The travel industry is decidedly one of them. For beginners, tourism is far from being immune to economic, political, and social displacement. Now, it’s agreed upon that most of these components are outside the power of tourism boards and travel companies. Still, staying aware can aid the travel industry to become more proactive and develop adaptive strategies rapidly.
Globalization is leading to the creation of uniform standards and protocols. All the same, the unique selling point that is the USP of travel companies or destination marketing organizations that is DMOs lies in giving a rare and unique experience. The travel industry, hence, works towards offering products that allow the average tourist or traveler to face something they have never faced before. Novelty is the more needful element in today’s travel aspirations. Still, at the same time, localization is also crucial. Tourism boards and travel companies must know how to link with the foreign traveler. They must make use of translation services to make up multilingual websites, important travel information, and necessary signage that can guide tourists in a good manner. Tourists must feel welcomed and at comfort while they are away from home.
Tourism is one of the most taxing bodies. A simple glimpse at the taxes paid on airline tickets and hotel rooms provides us an idea of how taxation can greatly affect tourism. Hence, the travel company must offer competitively priced offerings to balance out the equation. Governments must also come to the recognition that tourists already impart to the local economy through purchases, travel retail, and other tourism expenditures.
Travel marketing can sometimes behold by travelers or tourists as being deficient, false, or exaggerated. To alter this perception, marketing entities must work towards developing advanced marketing solutions to lure the new crop of travelers who are becoming clearer and more informed. Additionally, technological breaks and the influence of social media also mean that it’s a time of both chances and risks. Travel marketers must look to support tech and creativity to find their way into tourists’ travel programs. On the other side, they must also pay attention to centralized content.
Tourism infrastructure in some locations is obsolete and underdeveloped. Governments, tourism organizers, and destination marketing organizations must work towards improving the actual infrastructure with foresight. Future challenges must also be addressed in this area. Solutions could include rapid immigration at airports, faster checkout procedures in hotels, good public transportation, and interpreting solutions at airports, stations, or ports.
Industry players must work towards establishing a good security infrastructure for tourists and travelers. This can be getting by working with general law enforcement, city councils, and local governments. Governments must work towards originating more manpower and economic resources to enhance security and vigilance without stifling the travel face within the country. Now, the ample question is, can these challenges get the better off? Well, some of these situations can become growth opportunities for travel companies, tourism boards, and destination marketing organizations. As for the others with external components involved, it would be impossible for individual travel businesses to make important changes. The travel industry as a whole must unify and be consenting to talk about the terms and discuss its terms sometimes with governments and unions. At the same time, it must also be consenting to adapt to altering scenarios and trends.
How to Manage Risks in Tourism?
Understanding how to pull off risks in tourism is vital for tour operators. A situation often occurs when it is least expected, so it is crucial to have a Risk Management Plan in place that establishes the stairways to be taken in the case of a crisis. The evolution of the plan should follow a broad procedure, to ensure that all tourism stakeholders know what should be involved in it. During the situations, Extenuation, Preparedness, Response and Recovery are reasoned to be a crucial four-step process to successfully manage a crisis.
What is Risk Management?
Risk management is a planned process via which organizations pull off active crises. A crisis is defined as a time of trouble or danger and is normally a time when difficult or challenging decisions must be made. With a plan in place that outlines the process of managing a crisis, an organization can accommodate more easily deal with a crisis. The tourism industry runs in a dynamic environment that pertains to many interconnected sectors. As a result, it is perpetually evolving and is especially vulnerable to unexpected crises. Crises come in many kinds, like health threats like the 2020 global coronavirus pandemic, natural disasters like earthquakes and floods, political unrest, and terrorist attacks. These risks and crises pose momentous threats to the tourism industry, destinations, and tour operators working in the sector. Crises can have a prolonged negative effect on a destination both in terms of the destination’s image and its visitor numbers. Make a plan for and understanding how to manage risk when a crisis occurs and deal with the issues that arise from unanticipated events are key to mitigating the counter effects of a crisis on your tourism business.
Risk Management Process
- Establish the context
- Structure of a SWOT Analysis
- Identify the risks
- Keep up to date with Covid-19
- Analyze and evaluate risks
- Risk Rating Matrix
- Risk Assessment Matrix by Numerical Score
- Communicate and Consult
- Use your website and social media to keep in touch
- Monitor and review
- Training and testing
Over and above these four stages are an important element of communication, which keeps shifting as we move from step to step and reckon on which audience we are talking to teams, suppliers, stakeholders, industry, or the market.
Mitigation is the initial actions that the company that is straight in the face of the crisis or emergency needs to carry out. These are the initial steps that need to be taken to protect the ones in the contiguous line of fire teams, customers, suppliers, industry partners, and finances.