Economics for Tourism, Hospitality and Leisure Case Study

Economics for Tourism, Hospitality and Leisure - Case Study Example Due to Guam’s close association with the economy of Japan, misfortunes in the latter have seriously affected the economic situation in Guam. Nonetheless, the scenario has improved in Guam eventually although the trend of tourists has changed significantly (Dougan, 2007). A deep investigation into the behavioural pattern of the new generation of Japanese tourists has yielded a sharp contrast to the older lot of travellers. Hence, the policymakers need to frame new marketing, supply and operational decisions for boosting their tourism sector to be at par with its past glory. Marketing Decisions An empirical study shows that Japanese tourists prefer Guam over other tourist destinations owing to the proximity between the two and the picturesque beauty of the place. The Japanese are found to be mostly concerned about their security while touring and thus, the Guamanian policymakers need to market their increased concern towards security of their tourists and beautifying the spot. I n addition, the high demand for luxury items might also be employed by the policymakers for marketing tourism in Guam. A weak dollar against Japanese Yen has reduced the relative price of many branded items in Guam than they are in Japan which could be used as a ploy by policymakers to attract tourists (Moutinho, Curry, & Rita, 1996). Supply Decisions Supply decisions which boost tourism in Guam are those which help in drawing more and more tourists within the nation. Supply decisions are essentially those which take a note of the demand situation and then frame supply schedules so as to maximise profits (Walker & Walker, 2011). In the present instance, the demand decisions of Japanese tourists are found to be dependent more on their per capita income rather than the prices of commodities. Moreover, they incline more towards luxury items available in Guam. To meet their needs of regular items, the Japanese tourists recently have turned their attention towards discounted commodity st ores. Hence, the policymakers should choose to enhance the supply of luxury items in Guam as increase in sale of discounted commodity items do not assist in boosting the level of income in a nation. In addition, the Guamanian policymakers could also employ those tools which give them an edge over other tourism destinations in terms of opportunity costs. For instance, the hotel room rates in Guam are far cheaper than those in other tourist destinations with the downward trend especially noted post the Asian financial crisis, on account of high dependence of Guamanian tourism on the economy of Japan. The policymakers can also choose to instruct all Guamanian hotels towards keeping their prices low as well especially at times when the Japanese economy is experiencing a low. Moreover, at times when the demand is low, the policymakers can choose to adjust the availability of airline seats so as to keep the prices constant and reduce chances of loss. Operational Decisions The operational decisions that the policymakers should adopt to boost the Guamanian tourism sector would tend to improve the financial flow within the economy (Knowles,

Strategic Plan Essay Example | Topics and Well Written Essays - 750 words

Strategic Plan - Essay Example Another main risk of Hawaiian Airlines includes causing distress to passengers in cases where the authorities find that their luggage’s â€Å"size, weight, or character renders it unsuitable for transportation on the particular aircraft which is to transport it, or which cannot be accommodated without harming or annoying passengers† (Contract of Carriage, 2013).Hawaiian Airlines is forbidden from allowing any passengers to carry an item that is prohibited in their regulations or laws. Risk Management: Another thing is that Hawaiian Airlines does not allow any object or device, which can get in the way with its usual processes, on board the aircraft. â€Å"Risk management is a systematic way of identifying potential risks within a project, gauging or estimating the probabilities of these risks occurring, to then develop strategies to manage these risks† (Bliss, 2005). Risk assessment: Identifying risks: Hawaiian Airlines explores various options available in order to reduce costs. But this is a very difficult task as present day competition between different airlines is very stiff. Some risks faces by the airlines arise because of the complex structure of its industry. These risks have to be identified and managed for the airlines to maintain its business and progress to higher levels. One of the major issues faced by the airlines is that it can sometimes alienate its loyal customers. This happens at times when the Aloha flights of Inter-Island are skimped in order to upscale or refurbish Hawaiian Pacific Airlines in order to increase client service. Risk Analysis: Risk assessment is not just related with identifying risks, but also making the stakeholders and project team aware of them. It also includes assessing the possible severity of these risks, thus, recognizing where most attention is to be given in order to transform risks into the advantage of the organization. In the case of aggressive growth, Hawaiian Airlines faces medium risk a s mentioned before. It is a fact that they do not provide services of flight to countries such Singapore and India, which are common tourism destinations. Singapore being an extremely popular tourist centre and the third richest nation in the globe, should be included by the Hawaiian Airlines in the list of countries they provide services to. Market Share in Inter-Island Services in Hawaiian Airlines shows low risks comparatively. To remove the competition in Inter-Island facilities area, the industry needs to develop some strategies to attract further customers and, therefore, increase their market share. Announcing particular offers, introducing special services, offering additional discounts to common fliers etc can be a few among the strategies. Brand Image in Hawaiian Airlines is an element that poses high risks. Corporate reputation is influenced to some extent by the value of the pilots in the airlines. It is the most crucial part in strategic airline management and, therefor e, Hawaiian Airlines have to maintain as well as find ways to improve their brand image. Calculating Severity The scales for calculating the probability as well as influence of risks may be qualitative, in some cases where there are comparative definitions available. Hawaiian Airlines suggests the following: Scale impact 1 Very aggressive growth Low 33 2 Interisland Competition risk