Purpose -This study seeks to assess the balanced scorecard (BSC) approach to strategy and its usefulness for the international hotel industry. Design/methodology/approach -The paper undertakes a wide-ranging literature review which focuses on strategic implementation and the BSC approach, which is compared and contrasted with evidence of practice derived from a survey of hotels in Northeast England. Findings -In reviewing the literature it is clear that sources relating to the more detailed implementation issues of strategy (which is where BSC can be cited) is relatively scarce. Furthermore the strategy literature relating to the hospitality sector is relatively weakly developed. However, the reports are available which indicate the usefulness of a BSC approach, albeit modified to suit individual circumstances, but also point to potential pitfalls in its implementation. The primary research conducted indicates that a wide variety of measures are currently being used and that many hoteliers are using measures from all four of the category groupings identified in the BSC framework.Research limitations/implications -The primary research is based on a limited survey of hotels and it is recognised that further research is necessary to establish the exact nature of the causal linkages between performance measures and strategic intent and also to gain insights into practice elsewhere. Practical implications -The paper considers a broad range of generic and industry-specific literature sources and concludes that, despite its limitations, such a structured approach to strategy provides a useful managerial tool for hotel managers. Originality/value -The paper will be useful to academics with an interest in strategic implementation and performance measurement, and also to practitioners seeking an understanding of a practical managerial tool in terms of its benefits and potential difficulties.
Tourism is particularly prone to external shocks, which by their nature are unpredictable and need to be addressed through effective crisis management processes. The paper reviews the literature relating to crisis management in tourism and identifies and briefly critiques several models that have been developed to help managers in their strategic planning for such contingencies. The terrorist attacks of '9/11' are used as an exemplar of the type of external shock that can lead to crisis if travel industry managers fail to take immediate and decisive action. This paper discusses the reactions of leading UK based tour operators to the terrorist attacks and a case study is presented to examine the reaction of a particular company to '9/11' and to review the 'turnaround' strategies used. The crisis management process model is compared and contrasted with the steps actually undertaken at the company. It is evident that there are wider lessons for the travel industry including the need to: integrate crisis management with strategic planning processes, prepare detailed contingency plans, define decisional roles and responsibilities, and to retain a degree of flexibility.
Tour operators' performance and recent changes in air inclusive tours (AITs) are traced. The difficulties tour operators face are identified in the light of economic factors influencing demand and supply. Attention is concentrated on the impact of economies and diseconomies of scale, concentration, integration, legal liabilities, technological change and the general economic climate. Discussion of trends indicates that in the face of increasing competition, continuing excess capacity and market instability, tour operators are confronted by varying and challenging prospects into the next century.
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