ijcthr cover (i).

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ISSN 1750-6182
Volume 1 Number 4 2007

International Journal of

Culture, Tourism
and Hospitality
Research
Experiential learning exercises for
tourism and hospitality executive
training
Special Issue Co-Editors: Drew Martin and
Arch G. Woodside

www.emeraldinsight.com
International Journal of ISSN 1750-6182

Volume 1
Culture, Tourism and Number 4
2007

Hospitality Research
Experiential learning exercises for tourism
and hospitality executive training
Special Issue Co-Editors
Drew Martin and Arch G. Woodside

Access this journal online _________________________ 267

CONTENTS
Editorial advisory board __________________________ 268

EDITORIAL
Experiential learning exercises for tourism and
hospitality executive training: introduction
to a special issue on tourism management
Drew Martin and Arch G. Woodside_______________________________ 269

Exercises in tourism empowerment practice

John E. Timmerman and Richard S. Lytle __________________________ 273

Executive training exercises in non-performance

and attrition charges in the hospitality industry
Rex S. Toh, Barbara M. Yates and Frederick DeKay _________________ 281

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 Management learning exercise and trainer’s note
CONTENTS for market segmentation in tourism
continued Sara Dolnicar _________________________________________________ 289

Executive training exercise in sport event leverage

Danny O’Brien and Laurence Chalip _______________________________ 296

Tourist harassment: review of the literature

and destination responses
Jerome L. McElroy, Peter Tarlow and Karin Carlisle __________________ 305

Executive learning exercise and trainer’s notes for

importance-performance analysis (IPA): confronting
validity issues
Tzung-Cheng (T.C.) Huan and Jay Beaman _________________________ 315

Management exercises and trainer’s note

in sustainable tourism and dynamics
Robert J. Johnston and Timothy J. Tyrrell ___________________________ 328

Conference announcement ________________________ 338

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IJCTHR EDITORIAL ADVISORY BOARD

1,4
David Airey Bob McKercher
University of Surrey, UK The Hong Kong Polytechnic University, China
Wieslaw Alejziak Felix Mavondo
University of Information Technology and Monash University, Australia
Management, Poland
268 Tsuyoshi Nakamoto
Carlos Pestana Barros Nippon University, Japan
Technical University of Lisbon, Portugal Outi Niininen
Aloys Borgers Latrobe University, Australia
Eindhoven University of Technology, Patricia Oom do Valle
The Netherlands University of Algarve, Portugal
Joseph Boughey Yvette Reisinger
Liverpool John Moores University, UK Florida International University, USA
Graham Brown Mark Rosenbaum
University of South Australia Northern Illinois University, USA
Matthew Brown Chris Ryan
University of South Carolina, USA University of Waikato, New Zealand
Jenny Cave Asli Tasci
University of Waikato, New Zealand Mugla University, Turkey
Antónia Correia Harry Timmermans
University of Algarve, Portugal Eindhoven University of Technology,
Benedict G.C. Dellaert The Netherlands
Maastricht University, The Netherlands Julia Trapp-Fallon
Sara Dolnicar University of Wales Institute, UK
University of Wollongong, Australia Chien-Wen Tsai
Yuksel Ekinci Ming-Hsin University of Science and Technology,
University of Surrey, UK Taiwan
Leslie Furr Muzaffer Uysal
Georgia Southern University, USA Virginia Tech University, USA
Frank Go Peter van der Waerden
Erasmus University, Belgium Eindhoven University of Technology.
Robert Govers The Netherlands
University of Leuven, Belgium W. Fred van Raaij
Michael J. Gross Tilburg University, The Netherlands
University of South Australia Kuo-Ching Wang
Sameer Hosany National Chiayi University, Taiwan
University of Surrey, UK Celia Wong
Shoji Iijima The Hong Kong Polytechnic University, China
Okayama Shoka University, Japan Jen-te Yang
Ute Jamrozy National Kaohsiung Hospitality College, Taiwan
California School of Business and Junyi Zhang
Organizational Studies, Alliant International Hiroshima University, Japan
University, USA Pietro Zidda
Metin Kozak University of Namur, Belgium
Mugla University, Turkey
Gigi Lau
International Journal of Culture,
The Hong Kong Polytechnic University, China
Tourism and Hospitality Research
Vol. 1 No. 4, 2007
p. 268
# Emerald Group Publishing Limited
1750-6182
 The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1750-6182.htm

Editorial
Editorial
Experiential learning exercises
for tourism and hospitality 269
executive training
Introduction to a special issue
on tourism management
Drew Martin
College of Business and Economics, University of Hawaii, Hilo, Hawaii, USA, and
Arch G. Woodside
Department of Marketing, Carroll School of Management, Boston College,
Chestnut Hill, Massachusetts, USA

Abstract
Purpose – The purpose of this Editorial is to introduce the reader to seven training exercises in
tourism.
Design/methodology/approach – Introduces the papers in this special issue.
Findings – Effective learning requires doing –practice –failure – interpreting –experiencing success,
rather than listening and watching.
Originality/value – Provides an introduction to experiential learning exercises for tourism and
hospitality executive training.
Keywords Experiential learning, Training, Tourism
Paper type General review

Introduction
In training, Schank (2005, p. 6) recommends “don’t telling anyone anything ever.” Telling
does not lead to learning because learning requires doing. “Training environments should
emphasize active engagement with stories, cases, and projects” (Schank, 2005, p. xii).
The seven executive training exercises in tourism in this IJCTHR special issue
embraces Shank’s propositions even though the special issue violates the following dictum:
In real life, you can’t go down a list of alternatives and chose the best one. Any training
program that lets us choose from alternatives is usually just playing a trick on us (Schank,
2005, p. 10).
Some parts of the seven training exercises include alternative solutions for the reader to
ponder and select one solution. While in real-life problems and opportunities do not come International Journal of Culture,
with an explicit list of options to select from, the view adopted in developing the training Tourism and Hospitality Research
Vol. 1 No. 4, 2007
exercises is that creating tourism management stories describing dilemmas with explicit pp. 269-272
options is a useful learning method located between lecturing and learning from case study q Emerald Group Publishing Limited
1750-6182
without explicit options. The novice benefits from considering a list of explicit options – the DOI 10.1108/17506180710824145
IJCTHR novice learns to think beyond making a go versus no-go decision in regard to one option –
1,4 and should learn that creating a list of four plus options increases the likelihood of crafting
an exceptional solution. Crafting such exceptional solutions is more likely to occur with
increasing experiences with multiple versus listening-only learning contexts (i.e. listening
to a lecture). More importantly, the novice executive decision-maker benefits from weighing
the pro and con arguments for each of several options and often lacks the ability to craft
270 alternative options without first experiencing multiple-option learning modules.
The key point: effective learning requires doing-practice-failure-interpreting-
experiencing success rather than listening and watching. Kolb and Fry (1975) argue
that effective learning entails the possession of four different abilities: concrete
experience abilities, reflective observation abilities, abstract conceptualization abilities,
and active experimentation abilities. While Kolb and Fry (1975) focus on identifying
learning styles as personality traits, their research and the research of other learning
scholars (Boud et al., 1985) emphasize that active doing versus passive listening is a
necessity for effective learning. Such active doing needs to include practice,
reflecting-sensemaking between practice sessions, new rounds of learning-experiences
with variations in learning contexts of similar problems, and forming multiple abstract
concepts and mental-physical routines to apply in new learning contexts.
Consequently, each contribution in this special issue includes more than
problem-opportunity module. The executive-in-training (i.e. all of us) is asked to
solve a basic and an advanced training exercise. The advanced training exercises
come without training wheels – they offer no alternative solutions to select from – the
suggestion is made here to the reader to craft multiple methods and multiple options in
solving these advanced exercises using their experiences with the prior training stories
in each contribution.
Good news: the contributions in this special issue offer solutions for the reader to
compare to her/his own solutions. You are asked to ponder and record your answer in
writing before reading these solutions. “That’s what I meant,” is too easy to rationalize if
you read the solutions by the contributor without first writing down your own solutions.
Hopefully, this special issue is one step to developing a library of executive training
exercises with solutions in tourism management. Please accept the invitation to
contribute your own exercises and solutions for the next experiential learning special
issue – if you do accept this invitation; please send your contribution in for publication
consideration sometime before September 2008.
The following discussions serve to introduce the reader to the seven training
exercises. Reading all seven introductions may be helpful in deciding which exercise is
most interesting or applicable for your own learning needs.

Executive training in empowering program decisions

John Timmerman and Richard Lytle offer executive training to help overcome the
following human resources problems. Many organizations attempt to implement an
empowerment program among employees but few succeed in bringing the program to full
bloom. One of the richest opportunities for empowerment to have its fullest impact is when
service failure occurs. Empowerment programs are often undermined by distrust,
management’s fear of giving away too much power, short-sighted attention to financial
goals, and failure to reinforce and support empowered actions. As a result, employees
come to believe that promises of empowerment and job enrichment are simply tools to
manipulate workers, making “empowerment” either a hollow attempt at participatory Editorial
management or, worse, a euphemism for work intensification.

Executive training in non-performance and attrition charges in the

hospitality industry
Rex Toh, Barbara Yates, and Frederick DeKay provide nitty-gritty training in
handling an age-old problem in tourism management. Their executive training covers 271
issues relating to non-performance charges applied to individuals and attrition charges
applied to groups, which are assessed by hotels and cruise lines. Part 1 deals with
non-performance charges on individuals while Part 2 deals with attrition charges
directed at groups. Training exercises show how these charges can be calculated
from different points of view (the hotels and the guests) and by using different
methods, discuss the complex issues involved, and show how they can be resolved
fairly and productively in order to preserve goodwill all around.

Management learning exercise and trainer’s note for market segmentation

in tourism
Sara Dolnicar provides decision-making experience that increases insights into market
segmentation in tourism. This training exercise builds on the premise that all tourists are
not the same. Tourists prefer different destinations, engage in different vacation
activities and perceive different aspects of their vacation as important. Differences
(heterogeneity) among tourists enable the tourism industry to identify interesting groups
within the market who have similar and very distinct needs, target them, and gain
competitive advantage through offering superior service to a smaller group of tourists
instead of trying to satisfy the entire market’s diverse needs. The process of identifying
and learning about possible market segments that may be managerially useful is referred
to as market segmentation. This paper shows how researchers can develop learning
exercises for training analysts and executives in market segmentation techniques.

Executive training exercise in sport event leverage

Danny O’Brien and Laurence Chalip increase executives’ abilities to leverage the
impact of sport events. Sport events are capable of generating considerable short-term,
visitation-related benefits for host communities; and much research energy has been
devoted to exploring the economic impacts of sport events. However, this paper
recognizes that, particularly in the last decade, a paradigm shift has taken place in
parts of the international events community. While short-term economic gains
remain important, some stakeholders have begun to look beyond “impact” to focus on
achieving long term, sustainable outcomes. This move away from an ex post, outcomes
orientation, and more towards an ex ante; strategic approach to event benefits refers to
the phenomenon of event leveraging. This paper provides an introduction to the
literature on the strategic leveraging of sport events and presents three theoretical
models that depict various aspects of event leverage. Finally, the paper includes a
training exercise on the subject of sport event leverage along with answers.

Tourist harassment: review of the literature and destination responses

How should executives respond to tourist harassments? Jerome McElroy, Peter Tarlow,
and Karin Carlisle provide a practice exercise that helps increase executives’ ability in
IJCTHR handling such problems. This paper reviews the literature on the extent and types of
tourist harassment principally in third world destinations. Some emphasis is given to
1,4 two trouble spots: the Caribbean in general and Jamaica in particular. In addition, case
studies of Barbados and Turkey are presented where survey research tracks the
contours of harassment in detail. Causal determinants also are discussed briefly as well
as appropriate strategies for preventing or responding to harassment. The paper also
272 includes two practical training exercises for dealing with harassment situations.

Executive learning exercise and trainer’s notes for

importance-performance analysis (IPA): confronting validity issues
Tzung-Cheng and Jay Beaman provide hands-on training in importance-performance
analysis (IPA). Since, the inception of IPA by Martilla and James (1977), numerous
articles have appeared. Oh’s (2001) literature review finds a lack of theoretical
development and application validity. Matzler et al. (2004) demonstrate invalidity of a
common application of IPA/AGA, except under special conditions. To pursue validity
issues, these exercises explore two types of IPA/AGA that have different criteria. The
exercises introduce validity matters other than those that Oh (2001) and Matzler et al.
(2004) cover. The exercises stress logical thinking about using IPA in goal
achievement. In some cases, logic may dictate not using IPA.

Exercises and trainer’s note in sustainable tourism and dynamics

Robert Johnston and Timothy Tyrrell provide training focusing on increasing
executives’ abilities in sustainable tourism opportunities. These training exercises
address the fundamentals of tourism sustainability and dynamics. The first exercise
addresses basic concepts of sustainability as applied to tourism development. The
second addresses the use of phase diagrams to illustrate the dynamic behavior and
change of tourism-related economic and environmental conditions over time. Together,
these exercises characterize potential conflicts, hazards, and tradeoffs implicit in the
choice among different sustainable or non-sustainable outcomes for tourism.

References
Boud, D., Keough, R. and Walker, D. (Eds) (1985), Reflection: Turning Experience into Learning,
Kogan Page, London.
Kolb, D. and Fry, R. (1975), “Toward an applied theory of experiential learning”, in Cooper, C.
(Ed.), Theories of Group Processes, Wiley, New York, NY, pp. 33-58.
Martilla, J.A. and James, J.C. (1977), “Importance-performance analysis”, Journal of Marketing,
Vol. 41 No. 1, pp. 77-9.
Matzler, K., Bailom, F., Hinterhuber, H.H., Renzl, B. and Pichler, J. (2004), “The asymmetric
relationship between attribute-level performance and overall customer satisfaction:
a reconsideration of the importance-performance analysis”, Industrial Marketing
Management, Vol. 33 No. 4, pp. 71-277.
Oh, H. (2001), “Revisiting importance-performance analysis”, Tourism Management, Vol. 22
No. 6, pp. 617-27.
Schank, R.C. (2005), Lessons in Learning, Pfeiffer, San Francisco, CA.

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 The current issue and full text archive of this journal is available at
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Tourism
Exercises in tourism empowerment
empowerment practice practice
John E. Timmerman
Department of Management Sciences, College of Business Administration, 273
Abilene Christian University, Abilene, Texas, USA, and
Richard S. Lytle Accepted April 2007
College of Business Administration, Abilene Christian University,
Abilene, Texas, USA

Abstract
Purpose – The paper’s purpose is to provide background and practical exercises for management to
gain a perspective on the nature of true employee empowerment.
Design/methodology/approach – After a brief overview of the nature of empowerment, a series to
training exercises offers insight into how employee empowerment in the tourism industry can create
deeper investment in the corporate mission and greater customer service. The exercises also examine
approaches for management to avoid.
Findings – Employee empowerment results from recognizing the employee’s ability to be
organization’s eyes and ears.
Originality/value – This discussion and set of exercises provides management with the opportunity
to test their instincts against realistic situations of employee empowerment in the context of service
failure.
Keywords Empowerment, Employees, Tourism management
Paper type Case study

Introduction
This report presents ideas about the employment of empowerment in the tourism
industry. The first section defines empowerment. The second section provides a brief
overview of empowerment as a key to tourism success. The third section identifies
several factors that support empowerment as a management initiative. The fourth
section contains questions for the reader to develop skill in successfully enabling an
empowerment environment. The fifth section provides sample answers to the training
exercises.

Defining empowerment
Delineating the specific meaning of the term is one of the leading difficulties in dealing
with the subject of empowerment. However, characteristics of empowerment are
commonly agreed to include:
. enablement; International Journal of Culture,
Tourism and Hospitality Research
.
job ownership; Vol. 1 No. 4, 2007
pp. 273-280
.
authority and responsibility; q Emerald Group Publishing Limited
1750-6182
.
autonomy and partnering; DOI 10.1108/17506180710824154
IJCTHR .
a sense of competence and impact;
1,4 .
shared values;
.
a process of becoming; and
.
decentralized decision making.

Definitions of empowerment reflect a strain between the purposes of the organization

274 and those created by customer demands. One way to relieve this tension is adopting a
definition that combines the impact on the employee and the results for the
organization. Therefore, “empowerment” can be defined as:
. . . the management-initiated treatment of employees which emboldens and enables front-line
workers to perform independently, within the bounds of organizational policy, and to behave
proactively and with personal integrity on behalf of the organization and its customers.

Empowerment’s role in tourism success

The practice of empowerment is particularly appropriate in the environment of
tourism. Tourism’s setting is one in which service is occasionally unavailable or
delayed, customers have special needs or requests, and other customers’ behavior can
disrupt enjoyment of the service in some way. On these occasions, front-line employees
are positioned to decisively remedy the problem and to restore enjoyment of the
tourism experience, if they have been sufficiently empowered to act.
Deming captured the quintessential reason for employee empowerment when
Simmerman (1995) said:
. . . it will not suffice to have customers that are merely satisfied. Satisfied customers switch,
for no good reason, just to try something else. Profit and growth come from customers that
can boast about your product or service – the loyal customer. He requires no advertising or
other persuasion, and he brings a friend along with him.
Ordinary policies and procedures do not satisfy customers in all cases. Sometimes
front-line employees need the latitude to make on-the-spot decisions that benefit both
the customers and the organization.
The empowerment environment is characterized by a conversion of the relationship
between employee and customer from mere service to hospitality. An empowered
service environment tends to be a strategically planned unilateral relationship,
whereas hospitality promotes a dialogue in which the marketer listens, comprehends,
and responds to customer needs and concerns. One of the deadliest of marketing sins is
not listening to and understanding customers (Kotler, 2004). Marketing relationships
are strengthened by extending the hospitality of engaging customers in
“conversation,” especially if employees are empowered to act on the facts learned in
these exchanges (Baier-Stein and MacAaron, 2005).

Factors that support empowerment

Employee empowerment results from recognizing the employee’s ability to be the
organization’s eyes and ears as well as to make on-the-spot adjustments to the
customer experience that results in customer loyalty. One of the greatest opportunities
that a marketer has to show genuine concern for a customer is when something has
gone wrong. At this time of frustration, courtesy and cordiality in addressing the
problem is keenly appreciated. In fact, the steps taken for service recovery represent a Tourism
golden opportunity for ensuring future customer loyalty. One study reports that, when empowerment
immediate responsiveness to service failure occurs, organizations are able to retain up
to 95 percent of their customers who are dissatisfied (Albrecht and Zemke, 1985). practice
Customers should be encouraged to complain and employees must be empowered to
respond. This tact is in the best interest of both customers and the organization.
Satisfaction levels after complaint handling can be higher than previous satisfaction 275
levels (Goodwin et al., 1995).
Customers, who do not complain following a service failure, tend to engage in brand
switching. In such cases, the organization misses out on the opportunity to undertake
service recovery. A number of studies conclude that complainers tend to occupy the
higher socio-economic levels in society, the very segment that makes up much of
tourism’s affluent market (Moyer, 1984; Singh, 1990; Warland et al., 1984; Zaltman et al.,
1978). The complexity and cost of tourism products means that these consumers are
more likely to complain about dissatisfying experiences or that the results of their
non-action will have greater consequences for the tourist organization. Service failure
represents a crucial moment for front-line employees to be empowered to act and
pre-empt a relationship-breaking event.
Service failure does not necessarily lead to customer dissatisfaction; most customers
accept that things can go wrong. The dissatisfaction arises from the organization’s
response to a complaint. Intentional and clear provisions should exist to make
employees feel empowered to handle service failure and exceptions in the tourism
industry. Furthermore, an employer must convince the employees that their service
contribution is important by rewarding empowered action.
A study of nearly 1,000 employees in a complex, service-intensive industry finds
that employees who experienced low-empowerment levels felt:
.
unappreciated;
.
unimportant;
.
uninformed; and
. often belittled when corrected by an autocratic manager in front of customers
(Lytle, 2006).

As a result, employee empowerment was the lowest rated attribute of their work
environment.
All the evidence reinforces the need for front-line employees to have the autonomy
and authority to act to resolve a customer’s problem without delay and, as a result,
solidify loyalty to the organization. Also, management needs to stand behind the
employee’s judgment. As the welcome statement in the Nordstrom Employee
Handbook puts it, “Rule #1: Use your good judgment in all situations. There will be no
additional rules.”

Training exercise questions

Many organizations attempt to implement an empowerment program among
employees, but few succeed in bringing it to full bloom. Arguably, empowerment’s
greatest impact on customers is when service failure occurs. The following exercises
IJCTHR are designed to address common management dilemmas in the implementation of
1,4 employee empowerment.
(1) Historically, Alpine Airlines has permitted front-line ticket agents, gate agents,
and flight attendants the latitude to solve customer problems as part of the
airline’s general commitment to employee empowerment. Specific acts are not
spelled out, but the agent is left to use resourceful good judgment in resolving
276 traveler difficulties. Each of the following situations can be trying for travelers
and tricky for airline personnel. As a gate agent, suggest solutions for each of
the following customer situations to create a win-win situation for the customer
and company. Indicate your choice’s pros and cons and explain the rationale for
specific recommendations.
.
A distraught traveler is flying home in first class to Europe, having just
received news of the unexpected death of her father. She mentions to the
agent that she has just noticed a good friend flying alone in coach. The first
class compartment is only one-third full for this flight.
.
Robert, a hardware dealer from Tyler, Texas bought a round-trip ticket in
March from Alpine Airlines for a business trip to San Diego in May. The
flight involved a plane change in Dallas. Later, he learned that his niece was
to be married in Birmingham just two days before the San Diego trip’s
departure date. Robert proceeded to purchase a second round-trip ticket on
Alpine from Tyler to Birmingham, also with a plane change in Dallas. Since,
the timing of his tickets do not allow him to return to Tyler in time to make
connections, he wants to return through Dallas and switch to the San Diego
flight. However, on the weekend of the two flights, he is informed in Dallas
that airline policy does not permit in – route changes, but that he does have
the option of purchasing a new ticket to San Diego for an amount roughly
four times the original fare.
.
A student is departing on the first leg of a study abroad program. After
checking in, he is instructed to hand-carry his checked luggage to the TSA
security agent. On arriving at the baggage security scan, he is reminded that
he may wish to remove any film to prevent accidental exposure. The student
digs through the stuffed bags to locate the various disposable cameras he
has tucked away in convenient voids. After leaving his bags with TSA
personnel, he proceeds to security check-in for the passenger waiting lounge.
At this time, he realizes that his boarding passes are missing. After a hasty
search, the student concludes that he must have dropped his boarding
passes inside one of the open bags while retrieving the film. Normally, bags
that have been processed through security and passed on to the airline
baggage crew cannot be accessed. To reissue a ticket will cost the student
another $1,200. The student turns to the ticket agent in desperation.
.
An automotive executive boards an airplane headed for Detroit in
preparation for an important one-day meeting with a major original
equipment manufacturer (OEM). As he takes his seat in business class, his
only suit pants are snagged and significantly torn across the thigh by an
exposed sharp edge on the seatback. His schedule will be very tight in
 Detroit, so he will have no time to visit a tailor or clothing store before his Tourism
meeting. This meeting could make or break next year’s budget goals. empowerment
.
A frequent flier of Alpine Airlines (350,000 þ miles) made advanced travel practice
arrangements for his wife to go home and care for her mother subsequent to
a scheduled major surgery. The mother-in-law’s hospital stay was to be five
days, so he made travel arrangements coinciding with the expected hospital
release date. Two days prior to the ticketed departure, doctors extended the 277
mother-in-law’s planned hospital stay, delaying the date for which
post-hospital care would be necessary. While trying to make late changes
to the reservation, he discovered that the airline’s policy would not allow a
reservation change for less than an $850 fee. The original ticket was
purchased for $300. He tried to explain that the change was necessary due
the changing health condition of his mother-in-law who might have cancer
and that his wife could only be gone for a limited number of days, having her
own children to care for at home. Given his allegiance to the airline for many
years, he reasoned that the airline should be able to help him.
(2) Even though Alpine Airlines has made a genuine effort to implement an
employee empowerment program, management’s non-supportive actions seem
to drag the initiative back time after time causing personnel to be gun-shy and
hesitant to take independent action. For example, according to company policy,
gate agents are required to deny customer requests. However, when the
customer demands to see a member of management, a supervisor readily
overrides the agent’s objection in front of the customer, an action which leaves
the agent feeling undermined. Evaluate the following approaches to handling
the problem once the supervisor is called on the scene.
.
In the presence of both the gate agent and the customer, to make an irate
traveler happy the supervisor readily reverses the action of the agent,
indicating that the policy and/or the agent’s action were ill-advised.
.
The supervisor takes the agent’s aside, with the customer waiting, and tells
the agent never to drag him into the middle of a disagreeable situation again.
.
The supervisor appears, listens to a succinct description of the situation by
the agent. Next, the supervisor asks if the customer has anything to add to
the description. If the agent’s determination seems reasonable, the
supervisor commends the agent in front of the customer, indicating that
he correctly applied airline policy to the situation. Having affirmed the agent
publicly, the supervisor then proceeds to make whatever supervisory
determination she feels is proper under the circumstances.
.
A member of “management” is not readily available. In fact, most
supervisors are usually too busy to respond to such customer requests
and/or problems. The agent simply uses his best judgment, hoping that
management will be pleased.

Discussion
The preceding exercises were contrived from realistic situations that are encountered
by travelers. These examples serve as the basis for understanding the various
ways that an empowered service recovery encounter can go right, or go very wrong.
IJCTHR A degree of trust and emotional intelligence is required of management to facilitate
1,4 meaningful empowerment among employees. The relationship component to the
management-employee dyad is often the crucial ingredient to a successful
empowerment program. A supervisor can crush the spirit of empowerment among
employees by a thoughtless or distrustful approach.
Often, workers are promoted to supervisory positions with no leadership training.
278 Organizations employing empowerment programs should stage training sessions to
sensitize supervisors to issues that can facilitate the program’s success. A productive
activity in these sessions is role reversal exercise in which the employees get to act out
their perceptions of management in response to management’s role assumption of the
empowered employee. The results could be telling.

Answers to exercise questions

How should Alpine’s empowered works create win-win solutions for customers and the
company? A number of creative solutions to these real-to-life problems can be
generated. In each scenario, keep in mind two outcomes:
(1) responses have a way of become precedents; and
(2) reasonable, but satisfying, solutions to the customer’s difficulty likely will win
the airline high marks for responsiveness and seal customer loyalty.

With respect to precedent, good rationale for exceptions is paramount; otherwise,

customers that become aware of the exception will plague the organization with special
requests. Nevertheless, minor actions taken to delight the customer that have little or
no cost to the organization and these actions pay tremendous dividends in terms of
loyalty and positive word-of-mouth. The following are some considerations for each
situation.
.
For the traveler returning to Europe to attend her father’s funeral, the natural
response would be to arrange for the friend in coach to join her friend in
first-class to provide consolation. The humanitarian justification is obvious and
any minor costs to the airline will easily be off-set by the good-will created on the
part of both travelers.
.
Some travelers work the fare structure of the airline to take advantage of
incentive prices to remote destinations with the aim of intentionally skipping a
leg of the flight. This practice is categorically discouraged by the airlines.
However, in Robert’s case, the traveler seems to be operating out of ignorance
rather than a desire to defraud the carrier. This example is one of those occasions
when the ticket agent needs to make a judgment about intent and whether
penalizing the customers will create needless ill-will. After all, the tickets have
already been purchased and the intent was not apparently malicious.
.
The student in this case is probably an inexperienced and harried traveler who
made a mistake in the excitement and confusion of the moment. If there is
sufficient time and the agent has the authority to recall the bag, he should by all
means do so.
. The executive’s ripped pants are a difficult situation with few easy answers.
The flight attendant definitely should apologize. Second, the passenger should be
moved to another seat. Third, the jagged edge on the seat in question should be
 fixed and/or flagged, showing it is inoperable. This visible response will speak Tourism
powerfully to those watching (all airline passengers will watch like hawks to see empowerment
how the customer is treated). If a sewing kit is on board the aircraft, it could be
made available for repair work. Or, there might be a way to have some help in practice
having the customer’s luggage brought out as a priority upon landing. Other
ideas might be helpful as well. The key is to react in such a way that the
organization is going beyond customer expectations. Remember, customer 279
satisfaction is a result of expectations versus experiences.
. Employees must be trained to analyze and understand the value of the customer
to Alpine and the truth/reality of the customer’s situation. This task is not easy.
However, the analysis must be conducted and a strategy for resolution must be
provided. For starters, this faithful Alpine traveler has been and frequent flier for
more than 20 years. Second, the customer’s records indicate no “exceptional”
requests over the last two years. Third, most customers today expect to pay
some reasonable fee for a last minute change. At issue here is providing a
solution that goes beyond customer expectations. Thus, the logical and prudent
response for the airline is to move beyond the $850 fee and either to switch the
wife into a bereavement fare or to charge a customary $100 change fee. Alpine
Airlines should not add to the traveler’s grief and frustration over a situation that
is clearly exceptional and beyond the traveler’s control. The airline should work
with the customer, especially in view of her frequent flyer status, to adjust the
dates of the trip.

For question two, how should Alpine’s supervisor and gate agent handle unique
customer requests? Frankly, scenario D is most likely. Not only do supervisors usually
have little time to respond individually to every customers concern, but employees in
truly empowered organizations would also be expected to take care of most situations
themselves.
However, some occasions do arise in which the customers will not be put off by the
front-line employee. In these cases, scenario C represents the optimal response. If the
customers will not be put off in his demand for a supervisor, then the supervisor should
do everything in her power to affirm the agent’s position. The key here is that “the
customer comes second.” That is, for empowerment to be successful, management
must first meet the needs of employees. If employees are happy and affirmed in their
work, they will feel empowered to take care of customers well.
Scenarios A and B both represent situations in which management actually, though
perhaps inadvertently, contributes to the “un-empowerment” of the employee.
By allowing the agent to be caught in a dilemma in which he is not able to do what the
company or customer wants, over time he will be drained of his self-esteem and
rendered ineffectual at taking independent action.

Conclusion
Empowerment programs are often undermined by distrust, management’s fear of
giving away too much power, short-sighted attention to financial goals, and failure to
reinforce and support empowered actions. As a result, employees come to believe that
promises of empowerment and job enrichment are simply tools to manipulate workers,
making “empowerment” either a hollow attempt at participatory management or,
IJCTHR worse, a euphemism for work intensification. If management does not succumb to the
urge to micromanage employees, empowerment can bring vitality and success to an
1,4 organization, especially in the tourism trade.

References
Albrecht, K. and Zemke, R. (1985), Service America!, Doing Business in the Service Economy, Dow
280 Jones-Irwin, Homewood, IL.
Baier-Stein, D. and MacAaron, A. (2005), The New Marketing Conversation: Creating and
Strengthening Relationships between Buyers and Sellers, Thompson, Washington, DC.
Goodwin, B., Patterson, P.G. and Johnson, L.W. (1995), “Emotion, coping, and complaining
propensity following a dissatisfactory service encounter”, Journal of Consumer
Satisfaction, Dissatisfaction and Complaining Behavior, Vol. 8, pp. 155-63.
Kotler, P. (2004), Ten Deadly Marketing Sins, Wiley, Hoboken, NJ.
Lytle, R. (2006), “Creating and sustaining a winning service culture”, unpublished Consulting
Report of The Lytle Group.
Moyer, M.S. (1984), “Characteristics of consumer complainants: implications for marketing and
public policy”, Journal of Public Policy & Marketing, Vol. 3, pp. 67-84.
Simmerman, S.J. (1995), “Power-up your organization for maximum retention”, available at:
www.squarewheels.com/scottswriting/empower.html (accessed 18 April, 2007).
Singh, J. (1990), “Voice, exit, and negative word-of-mouth behaviors: an investigation across three
service categories”, Journal of the Academy of Marketing Science, Vol. 18 No. 1, pp. 1-15.
Warland, R.H., Hermann, R.O. and Moore, D.E. (1984), “Consumer complaining and community
involvement”, The Journal of Consumer Affairs, Vol. 18 No. 1, pp. 64-78.
Zaltman, G., Srivastava, K. and Deshpande, R. (1978), “Perceptions of unfair marketing practices:
consumerism implications”, in Hunt, H.K. (Ed.), Advances in Consumer Research, 5th ed.,
Association for Consumer Research, Ann Arbor, MI, pp. 247-53.

Corresponding author
John E. Timmerman can be contacted at: timmermanj@acu.edu

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www.emeraldinsight.com/1750-6182.htm

Executive
Executive training exercises training
in non-performance and attrition exercises
charges in the hospitality industry
281
Rex S. Toh, Barbara M. Yates and Frederick DeKay
Department of Marketing, Albers School of Business and Economics, Received March 2007
Seattle University, Seattle, Washington, USA Revised April 2007
Accepted June 2007

Abstract
Purpose – The aim of the paper is to help graduate students in the area of hospitality management to
understand and deal with non-performance charges and attrition issues.
Design/methodology/approach – The paper uses case studies to illustrate the issues that must be
resolved.
Findings – There are many ways to look at issues – from the hotel’s perspective, from the customer’s
viewpoint, and from an independent observer’s position.
Originality/value – This training exercise highlights the complicated issues surrounding
non-performance charges and attrition issues, and suggests ways in which they can be fairly
resolved to the mutual satisfaction of all parties to preserve goodwill all around.
Keywords Hospitality management, Graduates, Training
Paper type Case study

Introduction
The most distinguishing aspect of the hospitality industry is that room inventory is
perishable, together with conference halls, banquet facilities, parking, and other support
services. Room inventory’s perishable nature permeates the mindset of hotel managers,
who struggle with late cancellations, no-shows, early departures, and the possibility of
groups not picking up their room blocks. To hedge against these uncertainties, room
managers overbook hotels, which leads to oversales and walks (sending displaced
guests to other hotels), especially if some stay-overs do not leave on the expected
departure date.
Room bookings usually require credit card guarantees. If the reservations are not
cancelled with at least 24 hours of notice, customers are charged for the first night’s
room rate, plus taxes if applicable. Also, some hotels impose early departure charges of
about $75 if guests leave before their expected departure date. Groups of ten or more
managed by corporate meeting planners, association meeting planners, or independents
typically sign group sales agreements with attrition clauses, essentially committing the
groups to picking up their room blocks. As a result, these agents have legal obligations
to pay the hotels or cruise lines liquidated damages for a revenue shortfall.
Previous studies discuss these complex issues in detail (DeKay et al., 2004; Toh and International Journal of Culture,
DeKay, 2002; Toh et al., 2005a, b, c; Toh et al., 2006; Toh et al., 2007). One area issue that Tourism and Hospitality Research
Vol. 1 No. 4, 2007
requires additional clarification is non-performance charges. The purpose of this paper pp. 281-288
is to provide further insights on issues related to non-performance charges on individual q Emerald Group Publishing Limited
1750-6182
and attrition charges directed at groups, as assessed by hotels and cruise lines. DOI 10.1108/17506180710824163
IJCTHR Part 1 deals with non-performance charges on individuals and Part 2 deals with attrition
1,4 charges directed at groups. Evidence presented shows how these charges can
be calculated from different viewpoints (the hotels and the guests). Using different
computation methods, complex issues are discussed, as well as how they can be resolved
fairly and productively to preserve goodwill all around.

282 Part 1
Both Minnie DeCosta, Corporate Meeting Planner for New Horizon Corporation, and
Max Filmore, Room Manager for Norwest Hotel, sat in their respective offices
reviewing data on the recently concluded meeting the company held at the hotel. The
records show evidence of some no-shows and early departures. Also, some attendees
were walked on the first night of the meeting. Both managers pondered how to
compute the related non-performance charges that might be levied, and what the total
bill ought to be. Max wanted to maximize room revenue for the hotel while Minnie
wanted to minimize the cost to the company. As an independent observer, what do you
think is the fairest amount to maintain goodwill between both parties?
Minnie booked 560, 590, 585, and 550 rooms on each of four nights at a discounted
room rate of $120 per night at the 1,000-room Norwest Hotel in Chicago for a strategic
planning meeting of key employees of New Horizon, a large media company. A group
sales agreement with attrition clauses was not signed, so no room block existed. Owing
to travel difficulties or sudden changes in plans for some attendees, 25 late
cancellations and no-shows occurred on the first night and five on the second night of
the meeting. In addition, there were five early departures on the third night and an
additional ten on the fourth night. Three of the early departure cases were due to
family emergencies.
The Norwest Hotel has a well publicized policy of requiring payment of the first
night’s room rate (including taxes) for any reservation not cancelled by at least 24 hours
before 6.00 p.m. of the day of arrival. Norwest also informed guests at check-in that it
would assess a charge of $75 for early departures before the expected departure date.
Since, the hotel normally expects a no-show rate of 5 percent or more, Norwest accepts
more reservations than the hotel has rooms. In this case, Norwest overbooked by
40 rooms for each of the four nights during New Horizon’s meeting. Since, there were
only 25 no-shows on the first night of the meeting, 15 guests with reservations
were walked (denied accommodation and sent to other hotels), including ten attendees
of the New Horizon meeting. All of the walked guests received free rooms at nearby
hotels with free-cab rides and breakfasts included. New Horizon’s ten walked guests all
returned to the Norwest Hotel on the second night, and were given courtesy room
upgrades. On the second, third, and fourth nights, the hotel filled 990, 990, and
995 rooms, respectively.

Issues
(1) Assuming the role of Max Filmore, how would you maximize the
non-performance charges and accommodation costs to be paid by New
Horizon to Norwest Hotel, and how would you justify your case?
(2) Assuming the role of Minnie DeCosta, how would you minimize the
non-performance charges and overall accommodation costs to be paid by
New Horizon to Norwest Hotel, and how would you justify your case?
 (3) As an impartial observer, what solution would you recommend as the fairest to Executive
both the company and the hotel to maintain goodwill all around? training
Question 1: speaking as Max Filmore, Room Manager for Norwest Hotel exercises
From the perspective of the hotel, the total room bill including non-performance
charges for New Horizon Corporation for all four nights should be $261,525, plus taxes.
Table I illustrates the calculations. The total bill for all four nights including 283
non-performance penalties is calculated at $261,525, plus taxes.
The 25 no-shows on the first night are charged the first night’s room rate plus taxes,
in spite of the ten walks, because walks are not charged. The policy of charging for late
cancellations and no-shows is well publicized and is customary in the hospitality
industry, thus charging for the first night is reasonable and expected. Note that losses
are not easy to make up for subsequent nights as well. Often, last-minute available
rooms must be sold at a discount. The 25 no-shows from the first night are not charged
on the second and subsequent nights. Also, early departures often cost the hotel money
because they must be offset by last-minute walk-ins, which may not always
materialize. This problem is common for business hotels (as contrasting with drive-by
motels which receive a lot of walk-ins), thus resulting in empty rooms on the third and
fourth nights. A final point is that the policy on early departures was made known to
all hotel guests upon check in.

Question 2: speaking as Minnie DeCosta, Corporate Meeting Planner for the New
Horizon Corporation
While late cancellation and no-show policies are customary and well known, policies on
early departure are not universal. Perhaps, the hotel might be more accommodating
under the circumstances. On the first night, there were 25 no-shows. The hotel was full
because of overbooking and last-minute walk-ins. Thus, the hotel did not lose room,
food, or beverage revenues either. In fact, charging the company for 25 no-shows on the
first night and then collecting from room occupants is double dipping by the hotel.

Night 1 Night 2 Night 3 Night 4 Total bill

Norwest hotel
Available rooms 1,000 1,000 1,000 1,000
Rooms occupied 1,000 990 990 995
New horizon Corp.
Reservations 560 590 585 550
No-shows 25 5 0 0
Early departures 0 0 5 10
Walks 10 0 0 0
Rooms occupieda 525 560 550 505
Billb $66,000 $67,800 $66,375 $61,350 $261,525
Notes: Reservations – cumulative no-shows – cumulative early departures – walks; b(rooms
a

occupied þ no-shows on night) £ $120 þ (early departures on day) £ $75. On Night 1, the bill should
be (525 þ 25) £ $120 ¼ $66,000; on Night 2, the bill should be (560 þ 5) £ $120 ¼ $67,800; on Night 3, Table I.
the bill should be (550) £ $120 £ 5 £ $75 ¼ $66,375; on Night 4, the bill should be (505) £ $120 þ New horizon room bill
10 £ $75 ¼ $61,350 calculations
IJCTHR Also, note that state laws do not allow for the collection of taxes on services not
1,4 rendered.
On the first night, ten meeting attendees were walked in spite of their long-standing
reservations. While they were treated well, staying away from the meeting place was
an inconvenience for them as well as for the New Horizon Company (thanks by the way
for re-directing corporate messages meant for the ten displaced guests who were
284 walked to other hotels).
Regarding the early departures, three were in response to family emergencies.
Hotels commonly drop the early departure charges in such cases. Also, since the hotel
ended up with only five empty rooms on the fourth night of our meeting, justifying the
early departure charges for all ten rooms is difficult.

Question 3: speaking as an impartial observer arbitrating a fair solution

Given the perishable nature of hotel capacity, rooms not occupied due to late
cancellations, no-shows, or early departures usually cause a loss in revenue that cannot
be recovered later. Thus, imposing charges to cover potential losses is reasonable.
Nevertheless, the hotel should encourage repeat business from clients, especially
customers like New Horizon that hold frequent meetings throughout the year.
From the long-term perspective, Norwest Hotel should avoid any appearance of
double dipping, particularly when the meeting attendees were walked on the first
night. On the other hand, the no double dipping rule applies only when a group sales
agreement with attrition clauses exists. One compromise is to split the no-show
charges. Since, some New Horizon employees were walked on the first night, this
charge could be applied fully only on the second night when none were walked. Also,
taxes should not be assessed on no-shows as per state law. Another suggestion is to
forgive early departure charges for the three family emergencies, as is the custom.
Both, the hotel and the company should recognize the value of being reasonable and
maintaining good relations for the sake of future bookings.

Additional training note

One possible pedagogical technique is to allow individuals or groups to play the roles
of Minnie DeCosta and Max Filmore. The rest of the class can then help to determine
the ultimate fair solution.

Part 2
Justin Solomon, Group Sales Manager for the 800-room Plaza Continental Hotel, is
scowling at the numbers on his screen. The Binary Computing Corporation (BCC)
meeting of top officers was scheduled for two nights. About 30 days out, the attrition
clause in the group sales agreement called for a final room block of 100 rooms for each
night, resulting in a total guaranteed block of 200 room nights. The company’s
100 officers arrived as scheduled, but 20 attendees left one day early when news broke
that the top officers were under investigation for back-dating stock options. The result
was an attrition of 20 room nights on the second day.
The American Marketing Association’s (AMA) regional conference was held on
the same two days. About 30 days out, the AMA was responsible for 300 rooms for
each of the two nights, resulting in a guaranteed room block of 600 room nights.
Only 225 conference attendees showed up for the conference with no early departures, Executive
so the total attrition was 75 £ 2 ¼ 150 room nights over the two days. training
On the second night, the hotel was not booked fully. At checkout time, the hotel still
had 20 unreserved rooms for that night, plus the 95 unfilled rooms from the two exercises
meetings. Fortunately, 30 days out, Justin realized, based on the AMA’s historical
profile of past conferences, the room pick up rate was behind schedule. Fearing
attrition, he started selling into the room block. On the conference’s second day, the 285
hotel experienced an unusually large number of evening walk-ins, so Justin filled 60 of
the 115 empty rooms. Justin had been savvy enough to include attrition clauses in his
contracts for both meetings. Surprisingly, neither meeting planner had insisted that her
organization get first credit for resold rooms. Both contracts did specify that there
would be no double dipping, but the last sale rule applied. The conundrum for Justin is
how to justly apportion the attrition between the two groups on the second day when
attrition occurred for both groups (20 room nights for BCC and 75 room-nights for the
AMA). Alternatively, based on the last sale rule, of the 60 resold rooms, only 40 can be
credited toward the combined attrition of 95 rooms. Thus, 55 net attrited rooms have to
be apportioned between BCC and the AMA.

Dilemma
How should Justin apportion the attrition on the second night between BCC and the
AMA? Should Justin try to allocate the 40 resold rooms between the two groups, or
should he try to allocate the 55 net room nights that went into attrition between them?
If yes, what method of allocation should he use?

Solution
Developing a fair solution requires a number of steps. First, the criteria for a fair and
productive allocation must be outlined. Second, based on these criteria, a workable
approach should be selected – allocate the resold rooms or allocate the empty rooms.
Third, the various methods for allocation and how each alternative meets the stated
criteria should be discussed. Finally, a recommendation of the fairest and most
productive allocation method is made.

Criteria
The chosen allocation method should have several desirable results. First, the
allocation method should provide incentives for both groups to try to fill their room
blocks and to avoid attrition. Attrition is troublesome for the hotel to collect, as well as
expensive for the defaulting groups. Second, groups with more unfilled rooms should
pay a higher attrition fee. Third, the allocation method should not result in an
allocation of resold rooms greater than the actual amount of rooms attrited by the
group. Fourth, the allocation method should honor the no double dipping clause. All
resold rooms should be distributed, subject of course, to the last sale rule. Fifth, the
method should be easy to explain to the competing clients, and should be pleasing.

Preferred approach
An approach that allocates resold rooms rather than empty rooms is recommended.
This alternative allows managers to start from the full amount of the liquidated
damages arising from the empty rooms. This baseline should be mitigated by
IJCTHR distributing the resold rooms in compliance with the no double dipping clause. Using
1,4 sensitivity analysis, allocating empty rooms may result in assigning more unsold
rooms to a group than the actual number of rooms that they did not fill, obviously
ludicrous.

Allocation methods
286 Here are six possible allocation methods for the resold rooms:
(1) distribute all resold rooms equally between the two groups;
(2) give all the resold rooms to the group with the better show up performance;
(3) distribute the resold rooms in proportion to the pick up percentage during the
day in question;
(4) credit each group in proportion to the number of room nights blocked
throughout the meeting;
(5) distribute the resold rooms according to the percentage blocked by each group
relative to the hotel capacity; and
(6) credit each group in proportion to the number of rooms occupied during the
entire meeting period.

Allocation by methods
Recall that the hotel has a capacity of 800 rooms. BCC booked 100 rooms on each night
for a total of 200 room nights over the two-day meeting period. The 20 unfilled rooms
on the second night represent an 80/100 ¼ 80 percent pick up rate. AMA booked
300 rooms on each night for a total of 600 room nights over the two-day meeting period.
The 75 unfilled rooms on the second night represent a 225/300 ¼ 75 percent pick up
rate. According to the last sale rule, the hotel resold 40 of the empty rooms. Which of
the six methods of allocating the 40 resold rooms between BCC and the AMA best
satisfies the five decision criteria?
Method 1. Credit BCC and AMA equally, thus each group will get 20 resold rooms.
This method credits the resold rooms equally to each group. While this alternative is
easy to explain, Method 1 is not fair. Bigger groups should get more resold rooms
because they occupy more of the hotel. Besides, this method does not provide
incentives for the groups to fill up their blocks. Also, equal allocation may lead to the
ludicrous result of crediting more resold rooms to a small group than originally
attrited.
Method 2. Since, the second night’s pickup performance of BCC (80 percent) was
better than AMA’s (75 percent), BCC receives all 40 resold rooms. This method gives all
the resold rooms to the group with the better show up record. While this alternative
sounds fair, easy to explain, and provides incentives for groups to pick up their room
blocks, this action may credit more resold rooms to small groups than their number of
empty rooms due to attrition. In this case, crediting BCC with all 40 resold rooms more
than compensates for the organization’s 20 empty rooms.
Method 3. BCC had a pick up of 80 percent on the second night while AMA had
75 percent, so BCC should get (80/155) £ 40 ¼ 21 of the resold rooms. AMA receives
the other 19 rooms. This method proportionately distributes the resold rooms based on
pick up percentage. This alternative seems fair and provides an incentive for groups to
fill up their blocks. Also, the group charged with more unfilled rooms pays a
higher attrition fee. All resold rooms are distributed after the last sale rule applies. Executive
Method 3 abides by the no double dipping clause; however, small groups may end up training
with a disproportionate number of resold rooms. Also, resold room numbers allocated
to groups may exceed the number of empty rooms each one is responsible for. In this exercises
case, BCC ends up with 21 of the unsold rooms, one more than the organization’s
original responsibility.
Method 4. BCC and the AMA blocked 200 and 600 room nights, respectively. Thus, 287
BCC should get (200/800) £ 40 ¼ 10 of the resold rooms and AMA should get the
other 30, according to their respective percentage of rooms booked. This method
distributes the resold rooms proportionately based on the hotel’s total capacity blocked
during the meeting. This alternative seems fair because the bigger group used more of
the hotel’s room capacity with guaranteed payment. Also, a small group should not get
more resold rooms than attrited. Unfortunately, this method does not directly reward
pick up performance.
Method 5. BCC had blocked 100/800 ¼ 12.5 percent of the hotel capacity on the
second night, so this organization is entitled to 0.125 £ 40 ¼ 5 of the resold rooms.
AMA blocked 300/800 ¼ 37.5 percent of the hotel capacity on the second night,
so this organization is entitled to 0.375 £ 40 ¼ 15 of the resold rooms.
Method 5 distributes the resold rooms according to the proportion of the total hotel
capacity booked. This alternative may not fully allocate the resold rooms and may lead
to violating the no double dipping clause, which is unacceptable.
Method 6. BCC picked up 180 rooms in total while AMA picked up 450. Thus, BCC
receives (180/630) £ 40 ¼ 11 of the resold rooms and AMA gets the other 29 based on
the proportionate number of rooms occupied throughout the meeting period. Resold
rooms are distributed according to the number of rooms picked up by each group during
the entire meeting period. This method rewards the groups according to performance
(minimizing attrition) as well as the volume of business generated. Groups with
more empty rooms are penalized. Furthermore, this alternative will not result in double
dipping, since all resold rooms are fully allocated. Although difficult to compute and
explain to the defaulting clients, Method 6 is the best alternative. Groups are
encouraged to fill up their room blocks, and the hotel’s best customers are rewarded. For
the second night, BCC should pay liquidated damages associated with 20 2 11 ¼ 9
empty rooms, while AMA should be charged for 75-29 ¼ 46 empty rooms. This
method also ensures that all 55 net attrited rooms on the second night have been
allocated. However, one must be cautioned that reallocating resold rooms may lead to
giving more resold rooms to a group than its number of attrited rooms, especially when
the attrition rate is very low. Whenever this event occurs, one must observe the rule that
the number of resold rooms allocated to any group must not exceed the number of rooms
attrited. The excess rooms must then be credited to the other group.

Conclusions
The two exercises show the complexity of resolving charges related to late
cancellations, no-shows, early departures, unfilled room blocks, and overbooking and
walks. In the hospitality industry, there are no “right” answers to the inter-related
problems associated with non-performance. Both, good judgment and a willingness to
compromise with a fair and just solution are necessary to preserve goodwill and
maintain mutually profitable relationships.
IJCTHR References
1,4 DeKay, F., Yates, B.M. and Toh, R.S. (2004), “Non-performance penalties in the hotel industry”,
International Journal of Hospitality Management, Vol. 23, pp. 273-86.
Toh, R.S. and DeKay, F. (2002), “Hotel room inventory management: an overbooking model”,
Cornell Hotel & Restaurant Administration Quarterly, Vol. 43 No. 4, pp. 79-90.
Toh, R.S., DeKay, F. and Lasprogata, G. (2005a), “Attrition clauses: outstanding issues and
288 recommendations for meeting planners”, International Journal of Hospitality Management,
Vol. 24, pp. 107-19.
Toh, R.S., DeKay, F. and Yates, B.M. (2005b), “Independent meeting planners: roles,
compensation, and potential conflicts”, Cornell Hotel & Restaurant Administration
Quarterly, Vol. 46 No. 4, pp. 431-43.
Toh, R.S., Foster, T. and Peterson, D. (2006), “Reducing meeting costs: consolidation vs.
outsourcing”, Tourism Analysis, Vol. 11 No. 2, pp. 133-6.
Toh, R.S., Peterson, D. and Foster, T. (2007), “Contrasting approaches of corporate and
association meeting planners: how the hospitality industry should approach them
differently”, International Journal of Tourism Research, Vol. 9, pp. 43-50.
Toh, R.S., Rivers, M.J. and Ling, T. (2005c), “Room occupancies in the cruise industry: cruise lines
out-do the hotels”, International Journal of Hospitality Management, Vol. 24, pp. 121-35.

Corresponding author
Rex S. Toh can be contacted at: rextoh@seattleu.edu

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Management
Management learning exercise learning exercise
and trainer’s note for market
segmentation in tourism
289
Sara Dolnicar
School of Management and Marketing and Marketing Research Innovation Centre, Received April 2007
University of Wollongong, Wollongong, Australia Revised May 2007
Accepted June 2007

Abstract
Purpose – This paper aims to show how researchers can develop learning exercises for training
analysts and executives in market segmentation techniques.
Design/methodology/approach – The empirical example of a tour operator specializing in
adventure tourism is used as an illustration. Segments are constructed on the basis of tourists’ stated
willingness to pay a price premium for certain aspects of the tour. Stability analysis is conducted to
choose the number of clusters, topology representing networks are used to construct segments and
Bonferroni-corrected x 2 tests provide insight into the external validity of segments.
Findings – Four market segments are constructed which differ significantly with respect to external
variables.
Research limitations/implications – Market segmentation can be used by any entity in the
tourism industry to select a suitable part of the entire market, customize the tourism service to suit
such a segment, and spend marketing budget more efficiently by using communication channels and
advertising messages most effective for the selected segment.
Originality/value – Market segmentation provides managers with insight into market structure.
Knowledge about the market structure, in turn, is the basis of successful strategic planning. While the
concept of segmentation is not new, each application is unique to its context. The present paper
focuses on price premium segments in the adventure tourism context.
Keywords Market segmentation, Learning, Training, Tourism management
Paper type Research paper

Smith (1956, p. 6), who introduced the concept of market segmentation to the field of
marketing, provides the following definition for market segmentation: “Market
segmentation [. . .] consists of viewing a heterogeneous market (one characterized by
divergent demand) as a number of smaller homogeneous markets.” Market
segmentation’s aim is to identify or construct one or more consumer groups who are
similar with respect to a predefined criterion, to learn as much as possible about them,
and – if one or more segments are found to be managerially useful – modify the entire
marketing mix to best cater for the segment/s. The result of successful market
segmentation is competitive advantage in the marketplace due to strong positioning in
a particular part of the market.
A wide range of personal characteristics can be used as predefined criteria International Journal of Culture,
(segmentation criteria, segmentation bases) for market segmentation: Tourism and Hospitality Research
Vol. 1 No. 4, 2007
socio-demographics (e.g. students versus retired people), behavioral variables (e.g. pp. 289-295
repeat visitors versus first time visitors), or psychographic variables (e.g. tourists q Emerald Group Publishing Limited
1750-6182
interested in the local population versus tourists attending a major sporting event). DOI 10.1108/17506180710824172
IJCTHR Market segments derive in many different ways. Typically, segmentation
1,4 approaches are refereed to as either a priori (commonsense) segmentation
approaches (Dolnicar, 2004; Mazanec, 2000) or a posteriori ( post hoc, data-driven)
segmentation approaches (Dolnicar, 2004; Mazanec, 2000; Myers and Tauber, 1977). In
a commonsense segmentation study destination management decides in advance
which personal characteristics will be used to split tourists into segments. A typical
290 example is to form market segments based on tourists’ country of origin. In a
data-driven segmentation study, multiple variables are used to form market segments.
For instance, a set of ten travel motives or six typical vacation behaviors. These
variables represent the segmentation base and are used to form groups of similar
respondents. The resulting segments have to be interpreted and understood well before
they can be named. They result from an exploratory data-driven process. Often,
cluster-analytic techniques are employed to identify or to construct segments in a
data-driven manner in tourism. A typical example is benefit segmentation. Dolnicar
(2004) provides a more comprehensive overview of segmentation approaches including
various combinations of commonsense and data-driven techniques.
The following exercise demonstrates how data-driven segmentation can be applied
by any tourism industry entity to explore the marketplace. The exercise takes the
perspective of an Australian tour operator. The tour operator – who specializes in
adventure tours in Australia and the Himalayas – is particularly interested whether or
not a modest price increase would affect demand, and if some categories of adventure
trip tourists may be willing to pay a price premium. The tour operator wants to know
whether the market can be segmented on the basis of willingness to pay a price
premium. If these segmentation categories can be defined accurately, the tour operator
can more effectively manage promotion campaigns. Currently, the tour operator uses
two main advertising channels (slide shows and advertisements in newspapers).
Which communication channel is most effective in reaching the customer segment that
is willing to pay a price premium? Finally, do the segments differ in their interest to
travel to different destinations? If yes, can the company develop the most suitable
product for them? The results include a data-driven segmentation solution as well as a
profile of each segment; both pieces of information form the basis for the evaluating
managerial usefulness of the derived data-driven segmentation solution. Furthermore,
a number of methodological issues are highlighted which are essential to the correct
implementation of a data-driven segmentation study.

The data
To answer the research question, the tour operator conducted fieldwork using an
e-mail list of Australian subscribers to an adventure tourism newsletter. The
questionnaire took respondents about 20 minutes to complete. From a list of adventure
travel components, respondents were asked which activities they would be willing to
pay a price premium. Nine variables were used to cover different aspects of willingness
to pay in the context of and adventure trip. Respondents were asked to respond with a
“yes” or “no.” A generous prize incentive was offered to ensure a high-response rate.
The final sample contains 649 respondents.
Respondents also were asked about their intention to undertake adventure travel,
the information sources they used, and their preferred destinations. All questions
required respondents to answer with “yes” or “no” only. Note that choosing the
“yes-no” format (binary format) was very deliberate given that tourism datasets Management
frequently contain respondents from different cultures and that ordinal or rating scales learning exercise
with multiple categories (such as the Likert scale) are known to be susceptible to
response biases which can contaminate the data and consequently put in question the
validity of results (Dolničar and Grün, 2007a, b).

Training exercise for tourism research analysts and executives

291
The tour operator conducted a segmentation study using a partitioning algorithm
called Topology Representing Network (TRN) (Martinetz and Schulten, 1994). TRN is
similar to the frequently used k-means algorithm; however this algorithm has been
shown to outperform alternative cluster algorithms (including k-means) in a
Monte-Carlo situation with artificial data (Buchta et al., 1997). The tour operator
consequently felt confident that the algorithm choice was suitable. The underlying
distance measure was Euclidean distance, which is legitimate given that binary data
were used. A total of 50 replications were conducted for each number of segments. The
differences in stability are provided in Table I.
The tour operator concluded that the highest increase in stability occurred when a
four segment solution was computed. The tour operator consequently chose the four
segment solution and computed the final segments – the sizes are reported in Table II.
Figure 1 shows the segment profiles for all segments.
Finally, the tour operator wanted to validate the resulting segments with additional
information of particular managerial interest. For this purpose, the tour operator
computed x 2 tests because all variables are categorical in nature and because the
number of variables is small enough to permit Bonferroni correction to be used to
account for the overestimation of significance due to independent testing. The test
results are provided in Table III.

Number of Number of repeated Percent uncertainty Improvement in percent

clusters calculations reduction uncertainly reduction

3 50 71.96
4 50 86.14 14.18
5 50 80.00 26.14 Table I.
6 50 81.86 1.86 Stability of solutions
7 50 84.86 3.00 ranging from three
8 50 87.47 2.61 to eight segments

Segment Frequency Percent

1 108 17
2 252 39
3 190 29
4 99 15 Table II.
Total 649 100 Size of segments
IJCTHR 100%
90%
100%
90%
94%
100%
88%
83% 81%

1,4 80%
70%
80%
70%
60%
76%

60%
50% 52%
50% 50%
40% 40%
29% 30% 23%
30% 24% 24%
20% 16% 20%
13% 13%
10% 6% 10% 2% 4%
0% 0%

292
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Bonferroni-corrected
Seg. 1 Seg. 2 Seg. 3 Seg. 4 p-value p-value

Intention to undertake adventure

travel in future 16 39 30 16 0.029 0.200
Information source: slide nights 10 49 28 13 0.000 0.001
Information source: newspapers 12 42 26 20 0.007 0.047
Destination of interest: Australia 16 40 28 16 0.747 5.230
Table III. Destination of interest: USA 17 35 23 25 0.001 0.010
Validation using Destination of interest: France 16 40 19 25 0.000 0.002
additional variables Destination of interest: Bhutan 10 46 32 12 0.002 0.015

Exercise questions:
(1) Is the segmentation base used suitable to help the tour operator answer the
research question? Could the use of this segmentation base potentially lead to
invalid results?
(2) What type of segmentation analysis did the tour operator perform?
(3) Would you classify the segmentation solution as “true,” “stable,” or
“constructive” clusters? Please justify your decision.
(4) Check whether the data-driven market segmentation was conducted in a
methodologically sound manner, specifically with respect to the following aspects:
.
Is the sample size large enough to segment tourists based on nine variables?
 .
Does the sample limit the amount of insight that can be gained from this Management
segmentation analysis? learning exercise
.
Was choosing the four segment solution the correct decision? Would you
recommend investigating another solution in more detail?
.
Given the data format of the segmentation base, was the correct test
employed to validate the results?
293
(5) Interpret the resulting market segments.
(6) Comment on the managerial usefulness of the resulting market segments.

Instructor’s notes and possible solutions

This exercise aims to:
.
provide an opportunity for students, analysts, and executives to interpret the
results of a typical data-driven segmentation study; and
.
to encourage them to critically question the approach taken in the segmentation
study.

Solutions to exercises include the following comments:

(1) The segmentation base is an interesting choice and possibly the best one the tour
operator could create given that an e-mail survey was conducted. The danger
with this segmentation base is that respondents only stated their willingness to
pay more for specific services. Respondents did not actually make the decision to
do so. Perhaps, the answers were affected by social desirability bias or other
response biases.
(2) Data-driven segmentation. But, strictly speaking only adventure travelers were
studied, so the kind of segmentation would be an example of Case 5
segmentation: commonsense segmentation using the kind of vacation, then
data-driven segmentation using stated willingness to pay a price premium
(Dolnicar, 2008, forthcoming).
(3) The stability values in Table I do not indicate a very high level of data structure,
particularly given that the eight-cluster solution does not lead to a high increase
of stability. A reasonable conclusion is that if the four cluster solution represents
true clusters, they would have to be classified as either “stable” or “constructive”.
(4) Method aspects:
. The sample size is large enough. This concern can be tested using Formann’s
(1984) formula for binary data, whereby the sample size should be at least 2k
with k representing the number of variables, in our case 29. While 5 *2k
respondents would be ideal, the data set fulfills the basic requirement
(29 ¼ 512) because the tour operator’s sample contains 649 respondents.
.
Yes, this study was essentially a convenience sample of people who
subscribe to a newsletter and provide their e-mail address to obtain the
newsletter. The sample could be skewed towards more experienced
adventure travelers and younger people.
.
Based on the improvement in stability the four segment solution was a good
choice. Given that data-driven segmentation is always exploratory in nature,
IJCTHR exploring other solutions would be of interest as to see if they would provide
1,4 a more differentiated and therefore more managerially useful solution.
.
Yes, given that all variables are binary categories (willingness to pay, use of
information sources, and interest in different tourist destinations) x 2 tests
may be computed. Bonferroni correction is needed, however, to account for
the fact that interrelations between variables were ignored by conducing
294 independent x 2 tests.
(5) The four segments resulting from the segmentation solution have very distinct
profiles. Segment 1 is only willing to pay a price premium for increased comfort.
Segment 2 members would not pay a price premium for additional comfort in
general (e.g. better accommodation or more private transport), however, they are
willing to pay more for traveling to remote areas, areas with capacity
restrictions, smaller group sizes, a good local network, and a high level of
security and health safety. The largest group (40 percent) of adventure travelers
is in this segment. Segment 3, representing one-third of the sample is similar to
Segment 2, except this segment’s members are not willing to pay a price
premium for increased safety, security and health standards. Finally, members
of Segment 4 state that they would be willing to pay a price premium for each one
of the listed aspects. This segment must be interpreted with great care because
the results could be a reflection of acquiescence (yes saying) response style.
The segments are externally valid. Significant differences emerge from the
comparisons of additional pieces of information which were not used to construct
the grouping (Table III). Based on the Bonferroni corrected p-values, all items in
this analysis discriminate between the segments except their intention to
undertake adventure travel and their interest in undertaking an adventure trip in
Australia. These two values are not statistically significant suggesting that
the segments do not differ. The results show that Segments 2 and 3 members
(those segments less concerned with comfort) feel attracted to more exotic places
like Bhutan, whereas Segment 1 members indicate the strongest level of interest
in safe (and comfortable) destinations such as Australia, the USA and France. In
terms of advertising channels, slide nights appear to be most suited to
communicate with members of Segment 2, only a very small proportion of
Segment 1 members can be reached through those channels.
(6) Segments 2 and 3 appear to be the managerially most useful choice for the tour
operator. These segments are very distinct in their willingness to pay a premium
price patters, they both match the strengths of the tour operator with respect to
the destinations they are interested in, a fairly large proportion of both segments
can be communicated with (are reachable) through the standard advertising
channels (slide shows and newspapers), and they represent a significant
proportion of the sample (suitable size). Note that generalizing the results to the
population of adventure tourists is problematic because of the convenience
sample approach. The sampling procedure is biased towards readers of
electronic newsletters. The only criterion that cannot be assessed based on the
above analyses is the identifiability of Segments 2 and 3 members. Additional
background variables are needed (e.g. age, gender, education, or occupation).
Conclusions Management
Market segmentation is a valuable technique to explore the characteristics of parts of
the tourist market, which forms the basis of evaluating market segments and selecting
learning exercise
suitable target markets to cater for and communicate with. The preceding provides an
example of how to conduct a data-driven segmentation study. Based on selected
variables from an empirical data set, a number of alternative segmentation solutions
are computed. The most stable solutions form the basis of interpretation, both with 295
regard to segment distinctiveness along the actual segmentation base, as well as along
additional personal characteristics contained in the data set.
The case discussion in this paper represents only one of many possible ways of
conducting market segmentation. Students, analysts and executives should be aware
that market segmentation is an exploratory technique that aims at aiding managerial
decision making. Resulting segments are not necessarily naturally occurring distinct
groups. Often, these segments represent the most suitable grouping for managerial
purposes. When data-driven segmentation studies are conducted, careful and informed
decisions must be made about the methodology chosen, as the methodology can have
major impacts on the segmentation results.

References
Buchta, C., Dimitriadou, E., Dolnicar, S., Leisch, F. and Weingessel, A. (1997), “A comparison of
several cluster algorithms on artificial binary data scenarios from travel market
segmentation”, Working Paper No. 7, SFB Adaptive Information Systems and Modeling in
Economics and Management Science, Vienna.
Dolnicar, S. (2004), “Beyond ‘commonsense segmentation’ – a systematics of segmentation
approaches in tourism”, Journal of Travel Research, Vol. 42 No. 3, pp. 244-50.
Dolnicar, S. (2008), “Market segmentation in tourism”, in Woodside, A. and Martin, D. (Eds),
Advancing Tourism Management, CABI, Boston, MA, forthcoming.
Dolničar, S. and Grün, B. (2007a), “Assessing analytical robustness in cross-cultural comparisons”,
International Journal of Tourism, Culture, and Hospitality Research, Vol. 1 No. 2.
Dolničar, S. and Grün, B. (2007b), “Cross-cultural differences in survey response patterns”,
International Marketing Review, Vol. 24 No. 2, pp. 127-43.
Formann, A.K. (1984), Die Latent-Class-Analyse: Einführung in die Theorie und Anwendung,
Beltz, Weinheim.
Martinetz, Th. and Schulten, K. (1994), “Topology representing networks”, Neural Networks,
Vol. 7 No. 5, pp. 507-22.
Mazanec, J.A. (2000), “Market segmentation”, in Jafari, J. (Ed.), Encyclopedia of Tourism,
Routledge, London.
Myers, J.H. and Tauber, E. (1977), Market Structure Analysis, American Marketing Association,
Chicago, IL.
Smith, W. (1956), “Product differentiation and market segmentation as alternative marketing
strategies”, Journal of Marketing, Vol. 21, pp. 3-8.

Corresponding author
Sara Dolnicar can be contacted at: sara_dolnicar@uow.edu.au

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IJCTHR
1,4 Executive training exercise
in sport event leverage
Danny O’Brien
296 Department of Tourism, Leisure, Hotel and Sport Management,
Griffith University, Gold Coast, Australia, and
Received February 2007 Laurence Chalip
Revised April 2007
Accepted May 2007
University of Texas at Austin, Austin, Texas, USA
Abstract
Purpose – Some sport event stakeholders now look beyond “impact” to achieving longer-term,
sustainable outcomes. This move away from an ex post, outcomes orientation towards an ex ante,
strategic approach refers to the phenomenon of event leveraging. This paper aims to introduce readers
to the concept, and poses practical exercises to challenge current thinking on sport event impacts.
Design/methodology/approach – This paper provides an introduction to the literature on the
strategic leveraging of sport events and presents three theoretical models depicting various aspects of
event leverage. The paper includes training exercises on the subject of sport event leverage along with
possible answers.
Findings – Building on prior work, this paper proposes a new model for social leverage. The model
and the related discussion highlight potential synergies between economic and social leverage.
Research limitations/implications – As the proposed model for social leverage is essentially
exploratory, it remains empirically untested. This represents an obvious challenge for further
research.
Practical implications – This paper recognizes that, particularly in the last decade, a paradigm
shift has taken place in parts of the international events community, and provides a challenge and
potential direction for event practitioners to continue the path towards achieving the triple bottom line
of economic, social and environmental benefits for host communities.
Originality/value – The social leverage model breaks new ground in the (sport) events field, as does
the push towards sustainability and a more triple bottom line approach to event outcomes.
Keywords Stakeholder analysis, Sporting events, Training
Paper type Research paper

International Journal of Culture,
Tourism and Hospitality Research
Vol. 1 No. 4, 2007
pp. 296-304
q Emerald Group Publishing Limited
1750-6182
DOI 10.1108/17506180710824181
In recent decades, sport events and the tourism they engender have come to represent a
core component of the destination marketing mix in many of the world’s larger cities
and regional centers. Predictably, this change has fuelled unprecedented rivalry among
cities to host major sport events. This global competition for events has prompted a
great deal of research exploring the economic effects of sport events on host
communities (Crompton, 1995; Dwyer et al., 2000; Mules and Faulkner, 1996). Primarily
this research has been impact focused – approaching event outcomes from an ex post
standpoint. However, particularly in the last decade, a subtle, yet profound shift in the
international event community has begun to unfold.
While maximizing the short-term visitation-related impacts from events remains a
priority, stakeholders in some of the world’s major sport events now leverage for
longer-term outcomes such as repeat visitation to host regions; re-imaging of host cities
in key tourism markets; fostering regional business relationships; and encouraging
inward trade, investment, and employment. This phenomenon of strategically
planning for the maximization of both short- and long-term event outcomes is referred Executive
to as event leveraging. Indeed, many mega events staged in the last decade have been training exercise
accompanied by strategic leveraging programs. For example, the 2002, 2006 and 2010
Commonwealth Games in Manchester, Melbourne, and New Delhi, respectively, the
2003 Brisbane Rugby World Cup, and at every Olympic Games since Sydney 2000,
leveraging programs to facilitate tourism and business development have
accompanied, or are planned for, each event. 297
Thus, an event leveraging perspective represents a fundamental shift from the
traditional ex post, impact-driven, outcomes orientation, to a more strategic ex ante,
analytical approach. In other words, rather than looking back at event outcomes, a
leveraging perspective entails looking forward to planning precisely how host
communities can derive sustainable benefits from sport events, whether from
enhanced tourism, business, social aspects, or other types of benefits.
Chalip (2007) argues that event leveraging involves an inherent learning aspect
where event planners approach the notion of “impact” more as an indicator of the
success or otherwise of particular implementations, rather than as an end in itself.
Explaining this phenomenon, Chalip (2004, p. 245) suggests that:
. . . it is no longer suitable merely to host an event in the hope that desired outcomes will be
achieved; it is necessary to form and implement strategies and tactics that capitalize fully on
the opportunities each event affords.
Thus, rather than the traditional “build it and they will come” approach to sport event
outcomes, as O’Brien (2006, p. 258) argues, “events and the opportunities they present
are merely the seed capital; what hosts do with that capital is the key to realizing
sustainable longer-term legacies.”
Leveraging sport events for economic benefits
This paradigm shift from an event impact to an event leveraging perspective has
prompted a burgeoning body of literature to explore the phenomenon (Chalip, 2000,
2001, 2004, 2005, 2007; Chalip and Leyns, 2002; Green and Chalip, 1998; Green, 2001;
O’Brien, 2006, 2007; O’Brien and Gardiner, 2006; O’Brien and Chalip, 2008). Reflecting
the emphasis in the practitioner community, the overwhelming majority of work to
date focuses on event leverage for tourism and economic development. To start
building theory in this relatively unexplored territory, Chalip (2004) proposes an
economic leveraging model that envisages a region’s portfolio of events as a
leverageable resource for both immediate- and longer-term benefits. As Figure 1
shows, for immediate leverage, event organizers aim to maximize total trade and
revenue from events. Chalip suggests four means by which revenue and trade
optimization can be achieved:
(1) entice visitor spending;
(2) lengthen visitor stays;
(3) retain event expenditures; and
(4) use the event to enhance regional business relationships.

Meanwhile, longer-term leverage is achievable through using event media to enhance a

host community’s image. Figure 1 shows that this strategic objective breaks down into
two complementary tactics:
IJCTHR Leverageable Resource Opportunity Strategic Objective Means
1,4
A. Entice visitor spending

B. Lengthen visitor stays

Event Visitors
298 and
Optimize total
trade and revenue
Trade
C. Retain event expenditures

Portfolio
of D. Enhance business
Events relationships

E. Showcase via event

Figure 1. Enhance host advertising and reporting
Event Media
Chalip’s (2004) model community’s image
for host community event F. Use the event in advertising
leverage and promotions

(1) showcasing the region through event advertising and reporting; and
(2) using the event in regional advertising and promotions.

Using a case study approach, O’Brien (2007) uses Chalip’s model for economic leverage
to analyze how the organizers of a regional surfing festival created sustainable
outcomes for the host community. He finds support for Chalip’s model, but also
illustrates how the organizers’ integration of the focal sport subculture into the surfing
festival, particularly the event’s augmentations, was central to leveraging success.
Augmentations provide an additional event dimension beyond the sport competition,
and may include opportunities to learn, achieve, socialize, or any combination of these
attributes (Green, 2001). Meanwhile, Green (2001) suggests that sport consumption can
be perceived as an articulation of certain values that underpin particular sport
subcultures; and event organizers’ examination of a sport subculture’s values and the
identities associated with the focal sport can generate marketing benefits for event
promotion, and can also encourage visitor spending. Chalip and McGuirty (2004) also
identify the link between augmentations and the marketing of events, and commented
that event organizers can build their market, “by developing augmentations that are
likely to be attractive to persons with values and interests like those represented by the
event” (Chalip and McGuirty, 2004, p. 270).
Thus, appropriately conceiving augmentations serves to lengthen visitors’ stays
and to increase their potential spending patterns in the host economy. By sourcing
goods and services to run the event and its augmentations from local suppliers,
organizers can retain event expenditures to the host community. Appropriate
augmentations also facilitate networking opportunities for both visiting and local
corporate stakeholders. Such networking can lead to the development of business
relationships and inward trade and investment in the period beyond the event (O’Brien,
2006; O’Brien and Gardiner, 2006). O’Brien (2007) demonstrates the imagery produced
from well-conceived augmentations can be as attractive to event media as the
competitive aspects of the focal event, thus providing valuable opportunities to project Executive
desired destination images into key tourism and business markets. Of course, the training exercise
strategic goal here is to boost the event’s immediate economic impact while also
facilitating more sustainable image and relationship-based opportunities for the host
community. The ensuing section’s primary contention is that the knowledge gleaned
thus far on leveraging events for economic benefits also has relevance for how social
leverage is strategized from sport events. In essence, although a host destination can be 299
linked closely to the advertising and reporting of a sport event, so too can (aspects of) a
host community’s social agenda.

Leveraging sport events for social benefits

While the discussion above focuses on leveraging sport events for economic outcomes,
what remains less understood and less applied is how to leverage sport events for
social benefits to host communities. The literature on the social impacts of sport events
is well-established (Burbank et al., 2001; Fredline and Faulkner, 2001; Roche, 2000;
Waitt, 2003). However, as with the economic impact literature, the focus remains
ex post, that is, looking back and measuring social outcomes rather than looking
forward and creating strategies for specific types of social change. Although this post
hoc information undoubtedly is useful (Chalip, 2007), the data explain little about why
or how those outcomes occurred.
While empirical work on economic leverage is scant, work on social leverage
is virtually non-existent. To begin to redress this omission, Chalip (2007) approaches
events from an anthropological perspective, and argues that the social value of events
derives from the fact that they are essentially fun and their celebratory aspects create
liminoid experiences for participants (Green and Chalip, 1998; Handelman, 1990; Kemp,
1999; MacAloon, 1982). “Liminoid” refers to a sense of the sacred that can emerge, in
this case, from a sport event. This liminality, in turn, generates a new sense of
community and energy for a host region (Chalip, 2007). This sense of community
is called “communitas,” which Beeton (2006, p. 4) described as “the very spirit of
community.” To reach liminality and communitas experiences, Chalip (2007) proposes
that both a sense of celebration and social camaraderie are necessary. He notes five
strategies for cultivating celebration and camaraderie; Figure 2. These strategies
include enabling sociability, creating event-related social events, facilitating informal
social opportunities, producing ancillary events, and theming.
Liminality is not the same as leverage. Indeed, Figure 2 merely shows a key
precondition for social leverage – liminality. How the “feel good factor” is controlled
for lasting social value to a host community is at the core of social leverage. For
example, Waitt (2003) finds that the Sydney 2000 Olympic Games prompted a sense of
community and patriotism among Australians, particularly the young and those from
non-English speaking backgrounds. In essence, this evidence indicates that the Games
created a liminal space, and the resultant sense of community and patriotism were the
manifestations of communitas. However, without a strategic approach to social
leverage, opportunities to alleviate serious social issues in the host community such as
youth suicide, homelessness, drug addiction, and race relations were squandered.
Thus, the essential leveraging challenge remains: how can real and sustainable
social benefits can be achieved in the period after a sport event? To address this
question, O’Brien and Chalip (2008) propose a framework for the social leverage of an
IJCTHR Objective Means
1,4
Enable sociability

300
Create event-
Foster social
related social
interaction
events

Facilitate
informal social
opportunities

Produce ancillary
events
Prompt a
feeling of
celebration
Figure 2.
Objectives and means for Theme widely
generating and cultivating
liminality
Source: Chalip (2007)

event, as shown in Figure 3. The framework presupposes the presence of event-driven

liminality in the host community, which is represented as the fundamental resource to
be leveraged. Thus, an assumption is the celebratory aspects of the focal event create a
liminal space in the host community, and in turn, this liminality generates two
opportunities for social leverage. The first opportunity is the communitas engendered
in the host community. The second opportunity finds common cause with the
framework for economic leverage, and refers to the fact that sport events typically
attract the attention of media and sponsors.
Leveraging liminality as a key resource presents two key strategic objectives. First,
bringing the targeted social issue/s to the public’s attention can be achieved through
four central tactics: aligning the event with a targeted social issue(s); aligning values
between targeted social issue(s) and the focal sport subculture(s); lengthening visitor
stays; and enticing visitor and community engagement with the targeted issue(s).
Meanwhile, the second objective is to use event media to actually stimulate change in
targeted aspects of the community’s social agenda. Two key means help achieve this
objective: showcasing the issue/s via event advertising and reporting; and using the
event in issue-related publicity.

Training exercise for sport tourism researchers and practitioners

The preceding discussion highlights that strategically leveraged sport events can
deliver sustainable benefits to host communities well beyond immediate
Leverageable Resource Opportunity Strategic Objective Means Executive
Align event with targeted
training exercise
social issues

Align values between targeted

social issues and focal sport
Focus event subcultures 301
stakeholders’
Communitas attention on
targeted social Lengthen visitor stays
issues

Liminality Entice engagement with

Generated targeted social issues
through
Sport Event
Showcase social issues via
Set/change event advertising and
community agenda reporting
Event Media
for targeted
social issues
Use the event in issue-related Figure 3.
publicity
Proposed model for social
event leverage
Source: O’Brien and Chalip (2008)

visitation-related impacts. With this in mind, and reflecting on personal experience,

complete the following questions:
.
How does the notion of event impact differ to event leverage?
.
Why is it important to maximize the benefits from sport events for host
communities?
.
Identify a sport event with which you are familiar. Analyze the event to identify
whether or not it was leveraged. Where leverage was apparent, explain what
strategic objectives you think were being pursued, and identify the tactics that
were employed to achieve these goals. Indicate whether or not you think these
strategic objectives were realized, and the reasons for your answer. Finally, offer
suggestions as to how leveraging might have been improved at this event.

Trainer’s note – discussion and possible solutions

Applying this exercise highlights the subtle, yet significant paradigm shift that is taking
place in the international events community. While immediate visitation-related impacts
remain of critical importance to sport event stakeholders, increasingly, a more strategic
approach to generating longer-term benefits for host communities is emerging.
Indeed, the notion of event impact entails looking back and accounting for event
outcomes post hoc. By comparison, event leverage entails looking forward; that is,
strategically planning how a host community can maximize specific event outcomes.
This activity involves plans for enhancing both short-term event impacts, as well as
longer-term benefits from enhanced tourism and business positioning in key markets,
and/or other types of targeted outcomes such as social or environmental change.
It is critically important from both pragmatic and sustainability perspectives for
sport event stakeholders to seek leverage from their events. In many parts of the world,
IJCTHR large-scale events place huge demands on the public purse – both for subsidies and for
1,4 the provision of public services and infrastructure. Meanwhile, private sector funding
is, of course, also critical. This heavy dependence on public and private support to bid
for and stage events makes it incumbent upon event owners/organizers to seek every
means available to maximize hosts’ return on investment through economic, social or
environmental benefits, or preferably, all three. A leveraging approach creates the
302 opportunity to make events more viable by enhancing the sustainability of their
benefits, thus, better justifying organizers’ claims for support. Particularly for
recurring sport events, the implications for sustainability are obvious.
Obviously, responses to the final exercise above will vary according to the
particular sport event chosen for analysis. Whatever the event however, identifying
whether or not leverage was apparent should be possible. The strategic objectives to
look for should coincide roughly with those identified for economic and/or social
leverage. Similarly, to identify and describe how the tactics germane to each of those
strategic objectives became manifest with respect to their chosen event, students
should refer to the respective models for economic and/or social leverage. Discerning
all of these tactics is unlikely, but where leveraging is apparent, at least some of them
should be discernable. From this analysis, and perhaps using secondary sources from
media reports on the event, it should be possible to then deduce whether or not event
leveraging was successful. Where suggestions for the improvement of leveraging
activities are made, sport subculture, augmentations, and the management of
relationships among event, tourism, corporate, and social stakeholders should figure
prominently.

Conclusions
While a sound base of knowledge is being built on how to leverage sport events to
enhance the economic “bottom line,” academics and practitioners are still some way
from understanding how these lessons can inform the social leverage of sport events.
Although a model for social leverage has been proposed, the model is still essentially
exploratory, and remains to be empirically applied. With further research, and
continuing to integrate social leverage into event research and practice, this paradigm
can shift towards a corporate social responsibility perspective, thus bringing the sport
event sector more into line with the wider business community. This “triple bottom
line” envelope is being pushed even further by researchers such as Collins et al. (2007),
who apply ecological footprints to investigate the environmental impacts of sport
events. Future theorizing and empirical work should build on this important work, but
future studies also should seek to develop our understanding of whether and how a
more ex ante approach affects the relationship between sport events and the
environment. A leveraging perspective might apply in this context. Perhaps, in the
future, successful sport events will be characterized by realizing sustainable economic,
social and environment benefits – achieving triple bottom line leverage.

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Corresponding author
Danny O’Brien can be contacted at: danny.obrien@griffith.edu.au

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Tourist
Tourist harassment: review harassment
of the literature and destination
responses
305
Jerome L. McElroy
Department of Business Administration and Economics, Received February 2007
Saint Mary’s College, Notre Dame, Indiana, USA Revised March 2007
Accepted May 2007
Peter Tarlow
Tourism & More, Inc., College Station, Texas, USA, and
Karin Carlisle
Department of Business Administration and Economics,
Saint Mary’s College, Notre Dame, Indiana, USA

Abstract
Purpose – This paper aims to review the very limited literature on tourist harassment, discusses
determinants and offers some policy suggestions for controlling the problem. Some emphasis is given
to the Caribbean where harassment has been a long-standing issue.
Design/methodology/approach – In order to gauge the extent and patterns of harassment, an
exhaustive review of the literature is conducted and two recent case studies on Barbados and
Marmaris, Turkey are extensively summarized.
Findings – Results indicate harassment is an increasing problem with global dimensions. Vendor
persistence is the main type, followed by drug peddling and sexual harassment with most incidents
occurring at the beach and/or shopping areas and the least at hotels. Regarding underlying
determinants, the literature emphasizes host-guest socio-economic distances while the case studies
emphasize cultural differences.
Research limitations/implications – Although the research review is limited principally to
third-world destinations, suggested best practice policy directions are useful for mature destinations in
developed countries. They include: involving all tourism stakeholders in addressing the issue,
promoting programs to enhance resident-visitor mutual understanding, improving reporting
mechanisms and systematic tracking of the problem and, in the long run, integrating those at the
margin who comprise most of the harassers into the tourism mainstream.
Originality/value – The paper fills a gap in the literature on a growing concern and concludes with
two training exercises to deepen understanding of the issue.
Keywords Tourism, Caribbean, Harassment, National cultures, Gender
Paper type General review

Introduction
In the developing world, the spread of contemporary tourism beyond the traditional
peripheries toward emerging Eastern European, Asian and Pacific markets and, to a International Journal of Culture,
lesser extent, the Middle East and Africa has thrust worldwide holiday travel across Tourism and Hospitality Research
Vol. 1 No. 4, 2007
new and unfamiliar frontiers. These new locales’ tourism dependency and increasing pp. 305-314
global competition combined with expanded discount air fares, e-commerce, and q Emerald Group Publishing Limited
1750-6182
independent booking, increase the importance of customer satisfaction, quality service, DOI 10.1108/17506180710824190
IJCTHR and visitor safety. Although terrorism and crime are more serious tourism threats,
1,4 harassment is one of the most pervasive and least studied problems affecting
destinations across the globe.
This paper does four things:
(1) examines the nature of harassment and provides a benchmark definition;
(2) reviews the extent and types of harassment principally in third world
306 destinations with some emphasis given to the Caribbean in general and Jamaica
in particular;
(3) presents two case studies where survey research has tracked the contours of
harassment in detail: Barbados and Turkey; and
(4) briefly discusses causal factors and offers specific steps addressed to tourism
destination strategists for preventing or responding to harassment.

The problem
A number of factors explain why academic research lags the rise in tourist harassment,
a global phenomenon. First, since tourist harassment is not considered a crime at most
destinations, this problem is neither tracked statistically nor given priority in
developing government policies. Second, harassment is difficult to quantify objectively
because the experience is interpreted subjectively. According to McElroy (2003, p. 179),
“. . . what is good merchandising to the vendor is badgering behavior to the visitor.”
Third, handling complaints is difficult since short-staying tourists may not feel the
event is worth the irritation of reporting or, because of anomie, may simply not know
what to do when confronted with harassment. Thus, lacking evidence and information
on the nature, extent and locale of harassment incidents, officials cannot easily mount
effective control mechanisms and the problem persists.
One theoretical approach to understand tourism harassment is the passive,
Foucauldian view. This approach suggests visitors are targets of influences exercised
by a variety of brokers including: customs/immigration officials, travel agents, airline
and hotel employees, street vendors and guides and other destination service
providers. Since, tourists often look conspicuous in their new setting and operate on
unfamiliar political, cultural and sometimes linguistic turf, they are “stripped of many
of their cultural and familiar ties and protective institutions” (Cheong and Miller, 2000,
p. 380). The result is that tourists are vulnerable and insecure. As a consequence, their
freedom is sometimes circumscribed by local customs and behavior. For purposes of
this study, de Albuquerque and McElroy’s (2001, p. 478) definition of harassment (from
the viewpoint of the tourist victim) is used: “any annoying behavior taken to the
extreme.” From the viewpoint of the host perpetrator, harassment is simply refusing to
take “no” for an answer.

The globalization of harassment

Although many documented cases of macro or institutional harassment exist
(e.g. government officials and border personnel), the focus here is micro or individual
badgering of tourists by persistent local vendors. This problem is prevalent in
traditional European destinations. For example, a major tourism survey in Spain finds
more than nine out of ten respondents report:
 . . . there are places (in Spain) that suffer from tourism harassment and 84 percent see this as Tourist
having a negative impact on tourism areas. . . [and] this destroys the tourism image and
produces visitor dissatisfaction” (Molina de Aragon, 2007). harassment
Recently, the phenomenon is escalating in high-density developing country resort
areas. For example, the relentless visitor harassment has forced the Moroccan
Government to clamp down on unlicensed tour guides and other hustlers. Excessive
hawking in Bali forced police to segregate vendors on beaches in 1998. Some Kenyan 307
beaches were so crowded with peddlers and beach boys that local police had to rescue
visitors in 2000. In 2004, Indian tourist police patrols were deployed in key locations
across the capital city of New Delhi to protect foreign visitors against cheating by local
taxi and rickshaw drivers, a practice common at beach resorts in Goa where drivers
often overcharge. Price gouging also is routine at Vietnam’s annual Perfume Pagoda
Festival where aggressive food and souvenir vendors accost tourists and locals alike.
In the past, even fake shrines were constructed to extract cash from visitors.
In developing countries in particular, various forms of sexual harassment
proliferate. Even granting that sexual norms vary across cultures, the harassment of
visitors for sex has long become a permanent feature across the tourism landscape.
For example, Bowman (1996, p. 87) reports on the relentless badgering of female
tourists by Palestinian merchants to enhance their masculinity among their peers and
“to play out scenarios of vengeance against foreigners who, in their eyes, oppressed
them both economically and socially . . . ” In the Northern Marianas in 2001, blatant
street solicitation and the peddling of escort services produced a government
crackdown and tarnished Saipan’s image as a family-friendly destination. In 2000,
Bangkok, Thailand launched a fleet of women-only buses to reduce crime and
harassment of local women and female visitors. In Barbados and along other selected
Caribbean beaches, daily propositioning of female tourists by beach boys is a
long-term local practice (de Albuquerque, 1999a).

The Caribbean and Jamaica

Nowhere is tourism more economically important than in the insular Caribbean;
nowhere is harassment more of an industry irritant. According to King (2003, p. 168),
four out of five visitors to the Caribbean are concerned about becoming the target of
harassment, defined as “being approached by overly aggressive vendors or others
attempting to sell something.” These perceptions are warranted because vendor
harassment is endemic in several traditional destinations. In Puerto Rico, the
archipelago’s second largest destination, harassment has become a serious policy
issue. In Barbados, wardens are dispatched to popular beaches to curb vendor
pestering and to nightclubs to protect female visitors from sexual harassment by beach
boys. Also, this problem is appearing in emerging islands like Cuba and even in
so-called ecotourism destinations like Dominica. With the fastest expanding cruise
traffic in the region, visitor complaints prompted Dominican authorities to allay
tourists’ fears by criminalizing harassment.
The worst visitor badgering is in Jamaica, where tourism is the leading economic
sector and harassment has a long history. However, the problem has intensified over
the past decade, reaching a flash point in 1997. At that time, a number of cruise lines
threatened to drop Jamaica from their itinerary citing persistent passenger harassment.
The government responded by deploying police at the main cruise docks to protect
IJCTHR passengers from excessive hawking and theft, significantly increasing fines for
1,4 aggressive peddling, soliciting sex, and other harassing behavior. Also, the
government set up craft villages and provided training in job skills related to
tourism. Despite some temporary improvement, the situation continued to deteriorate
until mid-2001. At that time, three cruise lines stopped visiting Jamaica and headed to
more tourist-friendly ports in Mexico and Puerto Rico. Private sector responses such as
308 heightened hotel security and the rapid growth of all-inclusive resorts have protected
guests; however, these actions have alienated owners of offsite restaurants, taxis and
vendors by restricting their income opportunities. As a result, the problem continues.

Barbados
The first major tourism survey (n ¼ 9,000) in Barbados was carried out quarterly by
Systems Caribbean Limited (1995) between 1991 and 1994. Survey results show that
nearly 60 percent of respondents experienced some (“a lot” plus “a little”) harassment
(de Albuquerque and McElroy, 2001). British tourists reported the highest incidence
partly due to their long-average stay; Caribbean visitors reported the least, partly due
to their miss-identification as locals by vendors. Young and adventurous tourists
complained of harassment more than the elderly confined to their hotels or guided
tours. Repeat visitors and those staying in secluded areas reported less harassment
than first-time visitors and tourists staying close to shopping and nightclub hot spots.
Most harassment occurred at the beach although Caribbean tourists experienced
comparatively more problems in the streets and during shopping. Very few tourists
(10 percent) reported trouble at their hotels, indicating security guards’ effectiveness
keeping vendors and drug peddlers off the premises. Vendor persistence was the
number one problem. Nuisance selling included small souvenirs, clothing, fruit, and
services (e.g. massages and hair-braiding). Four out of five victims reported being
annoyed by vendors without uniforms. Other harassment forms included drug
peddling (27 percent), verbal abuse (14 percent), sexual harassment (8 percent) and
physical abuse (2 percent). The drug hustlers tended to target younger tourists. When
visitors persisted in their refusals, they were sometimes verbally abused. Higher verbal
abuse levels were reported by Caribbean and Other European tourists, the latter likely
the result of vendor frustration at attempts to communicate with non-English speakers.
Most instances of sexual harassment were reported by female tourists, often
European or Canadian women. According to de Albuquerque (1999b), Barbadian beach
boys believe these women are more liberated and affluent than their American and
British counterparts. Sexual harassment incidents occurred at beaches, where visiting
single women were accosted by various beach boys over several days, and at
nightclubs where they were repeatedly asked to dance. This behavior is difficult to
control since many of the perpetrators have legitimate jobs as beach chair attendants
and water sports operators.
In response, local authorities mounted several initiatives: deploying additional
beach wardens and police patrols at hot spots, training police officers in harassment
sensitivity, placing vendor booths in designated beach areas, and improving the
organization of taxi queues. Barbados also began to quarterly track harassment
patterns. Between 1996 and 2000, overall levels rose slightly with most complaints
about overzealous vendors. As before, most incidents occurred at the beach, less
frequently in the streets and shopping venues, and least frequently at hotel properties.
On the other hand, the evidence shows marked increases in the percentages of victims Tourist
reporting drug peddling (45 percent) and sexual harassment (16 percent) (CTO, 2001). harassment
These trends suggest that policy measures have not noticeably curtailed the problem.

Turkey
Kozak’s (2007) recent case study of Marmaris, Turkey, considers harassment a service
failure in the context of the consumer satisfaction vein of traditional marketing 309
literature. This study is small in scope (n ¼ 256) with an exclusive focus on
British tourists visiting during the summer of 2003. Two-thirds were relatively young
(25-44 years), most were middle-class repeat visitors who stayed an average of two
weeks. Results indicate that about one-half reported harassment with vendor
persistence being the most common. Compared to the Barbados study, sexual
harassment was more frequently mentioned and drug peddling was less often cited.
These findings reflect the strictness of Turkish drug enforcement. Most incidents took
place on the beach and in the streets with the fewest occurring at hotels. In contrast to
their non-bothered counterparts, harassed visitors reported significantly lower levels
of overall holiday satisfaction, less willingness to recommend the destination to others,
and less intention to return.
Also, tourists were queried about their perceptions of harassment motivations. Not
surprisingly, almost four of five concluded that harassment behavior stems from the
desire to maintain livelihoods (e.g. to keep in business/to get more money). Regarding
sexual harassment, some respondents stated that European women tended “to dress
provocatively” and the locals believe these foreign females “have lots of cash.” Finally,
to minimize the problem, the two most common tourist responses were to “allow
tourists to do what they want,” (e.g. resist pressuring them for sales), and to “take legal
action,” (e.g. fines and/or prosecution). However, Kozak (2007) notes that regulations
and fines already exist, so adequate local law enforcement and responsible vendor
compliance appear to be the main problems.

Determinants and responses

The literature on harassment determinants is limited. Both, de Albuquerque and
McElroy (2001) and Kozak (2007) focus on the specific case of visitor-vendor interaction
and identify communication, particularly cross-cultural interactions, as the problem’s
source. For example, informal vendor interviews in Barbados revealed that being
aggressive, hawking one’s product/service loudly, pursuing customers in public spaces
are hallmarks of good salesmanship. Moreover, sellers did not understand why tourists
could not afford to purchase “a little something,” and would not engage them in polite
conversation. On the other hand, people from North America and Europe typically do
not respond to greetings or approaches by strangers in public places. Similarly, Kozak
(2007, p. 394) sees cultural differences behind the conflicts observed between hawking
Turkish shopkeepers and by-passing and/or browsing tourists:
While local shopkeepers see inviting tourists into their shops to buy something as a way to
encourage business or help their customers, tourists from the West perceive this as being
harassed, because in their culture the customer is expected to make the first move.
Despite these polarizing cultural distances and frequent commercial
misunderstandings, harassment can damage vacation quality, reduce the propensity
IJCTHR to return, and even tarnish the destination’s image and economic future. Harassment
1,4 cannot be stopped completely because no solution fits all circumstances. Fortunately, a
number of steps can be undertaken to minimize the problem. First, a standing committee
of all major tourism stakeholders must be created. This committee should meet
quarterly to review harassment issues and to plan contingent responses before matters
become acute. Second, establish special Tourism-Oriented Policy/Protection Units
310 (TOPs). TOPs need to be deployed in areas of high-tourism concentration (Tarlow, 2005).
Third, resources should be devoted to conscious-raising seminars/lectures open to hotel
and restaurant employees as well as to vendors and other service providers. The
seminar/lecture focus is two-fold: to emphasize the cost of harassment to all tourism
workers, and to make sure that employees understand, in cases of unwanted sexual
overtures, the penalty could involve being fired. Fourth, for the community at large a
positive anti-harassment public relations campaign should be mounted stressing
citizens’ responsibility to protect visitors and make them feel welcome.
Fifth, to improve the comfort level of the visitor, a short in-house video should be
developed for showing on airlines and cruise ships to highlight the cultural differences
of the destination so that tourists know what to expect. Sixth, a series of harassment
report centers should be created to which guests can report complaints. Seventh, clear
signage is needed to help tourists at airports, popular attractions, and other public
transportation (e.g. cab fares). To support this effort, brochures should be made
available, particularly at rental car agencies and hotels to identify the “best hassle-free
route/location maps.” Eighth, lighting intensity improvements at high-tourism
zones/attractions should be considered since increased exposure both enhances the
comfort level of the visitor as well as the risk to the harasser.
Ninth, governments need to carefully track harassment patterns so that the problem
can be treated as a serious policy issue. Such information will provide the standing
committee and all tourism stakeholders with a more accurate and in-depth
understanding of the contours and intensity of the problem. Finally, however
effective these short-term strategies are, in the long-run decision-makers must make a
concerted and continuing effort to accomplish the difficult task of integrating those at
the economic margin, who comprise the majority of harassers, into the tourism
mainstream.

Executive exercises
In order to come to grips with the “on the ground” reality of harassment, two executive
exercises are presented, one conventional shopping example and another incident at
the airport. They are included to deepen understanding of the phenomenon, to reflect
on the variety of potential responses, and to guide the research and thinking process
toward developing effective solutions.

Exercise 1
Many tourists complain about cultural harassment in the market place. The problem
stems from differing standards for social norms. For example, Western tourists
accustomed to set prices may be uncomfortable haggling over prices with local
vendors. On the other hand, visitors accustomed to merchants enticing customers to
enter their stores may be surprised when shop keepers passively wait inside for
customers to ask for assistance.
 Consider a Western tourist is visiting a bazaar where each store sells a similar Tourist
variety of merchandise. In this country, store owners believe their income is based on harassment
individual ability to entice visitors to enter the shop rather than the merchandise’s
quality. To address the potential conflict, begin by mapping the following questions:
.
Begin to trace the harassment issue from both the visitor’s and the shop owner’s
perspective;
311
.
How many times may a visitor be asked to enter a store until an invitation
becomes harassment?
.
How often do visitors actually complain to police?

After returning home, some visitors report in travel blogs and newsletters the areas
and streets that should be avoided by future travelers. The visitors were so
uncomfortable visiting these areas that they feel compelled to warn other travelers.
This harassment may be harming the locale’s overall image. How would you develop
an anti-harassment task force? What internal creative marketing ideas would you
develop?

.
ignore the problem and call it cultural;
.
send in undercover agents and humiliate the street merchants to force them to
stop harassment;
.
show merchants that harassment does not pay and is economically
counter-productive; and
.
train female police officers to use a two-pronged approach: one, education of
merchants that such behavior is no longer acceptable; and two, if the behavior
persists, with permission from the destination’s legal authorities, both fine and if
necessary arrest street merchants who perform such actions.

Exercise 2
During a busy holiday, a group of religious missionaries converge on an airport to save
lost souls. Despite the airport’s announcements that travelers do not have to pay
attention to the religious solicitations, avoiding contact is difficult. The missionaries
go after travelers waiting in line to board a plane or rushing from gate to gate. When
asked to stop such proselytizing, the missionaries argue that they are in a public place
and that their actions are exercises of their freedom of speech and religion. Also, the
missionaries state that their religious beliefs demand that they share their faith with
others and do everything possible to prevent non-believers from going to hell. Other
employees overhear the “conversation,” but they do not interfere because they fear the
proselytizers will sue them for depriving them of their constitutional rights.
.
Is there such a thing as religious harassment?
.
At what point do the airport employees step into protect the passenger’s right of
privacy?
.
Should this form of religious expression be protected or challenged on an
international basis or on a country-by-country basis?
IJCTHR There are a variety of ways to address harassment situations. This sampling of
1,4 answers provides some suggestion for thinking through the issues and coming up with
a reasonable understanding and/or response.

Exercise 1
.
Begin to trace the harassment issue from both the visitor’s and the shop owner’s
312 perspective.
To accomplish this goal the researcher will need to employ a series of
observational techniques. First, look at the Weberian symbolic interaction. List
each action viewed from both the shopkeeper’s perspective and from the
perspective of the visitor. Then observe body language. Finally, note how many
visitors enter the store and compare these traffic patterns with those in, say, the
downtown section of town where this practice is not used. Make sure to
standardize store visitation per X amount of potential customers in order to get a
fair statistical reading.
.
How many times may a visitor be asked to enter a store until an invitation
becomes harassment?
To begin to solve this research problem, the investigator will need to do a series
of face-to-face encounters with visitors to the shops. Some form of focus group
may be used. Be careful to distinguish between Western cultures and other
demographics such as gender and age. Finally, keenly observe the body
language being used along with tone of voice and compare those findings to the
verbal information given. Often, people’s body language and words do not
match. Thus, the researcher may have to discern where a person is being polite
rather than openly showing annoyance.
.
How often do visitors actually complain to police?
First, go to the police department and ask for any public records that may be
available. Make sure to bring identification and a letter from some official asking
the police to cooperate with you. Make sure the letter is written in the local
language and carries an official seal. Assuming police records are kept and
available (if not, this negative finding is also a finding), then begin to look at
actions per a standardized number of visitors, some form of a 1 in K format. The
researcher should go to the market place and carefully observe the number of
harassment issues he/she sees. Be sure to have a pre-set definition of harassment
so that the researcher’s own bias does not color the statistical findings. Begin by
examining the observed number of harassment incidents and compare these to
what the police reports state.

Armed with solid and more accurate information on the intensity, location and patterns
of harassment, the researcher can now more seriously evaluate policy responses.
Clearly, ignoring the problem under the guise of cultural diversity is no response.
Business as usual is a recipe for continual harassment and potential destination
damage. Likewise, sending in undercover agents to humiliate merchants into
submission is also counterproductive since any effective long-run solution must
involve the cooperation and buy-in of all tourism stakeholders.
A more reasonable approach would be to creatively combine suggestions Three and
Four. First consider translating the critical visitor blogs into the local languages.
Then remember that nothing talks as loudly as money so a plan will be needed to show Tourist
merchants that harassment is counter-productive to their bottom line. Experts from harassment
abroad do not have the social capital or clout to accomplish such a goal. Instead, the
researcher will have to use some form of a reputation methodology to learn who among
the harassers carries the most respect and clout. This person must then convince the
locals that such actions are counter-productive. Second, female police officers may also
be sent into the area for monitoring and used as decoys (much as police use female 313
officers in other forms of crime prevention and interdiction) to identify, warn and, if
necessary, use legal means where permissible (fines, arrests) to deter those causing the
problem.

Exercise 2
.
Is there such a thing as religious harassment?
To a great extent, the answer to this question depends on local laws or
interpretation of laws. In some nations, the majority religion is allowed to
proselytize to the extreme, in other nations any form of “religious noise pollution”
would be considered harassment. To a great extent, the answer to this question is
in the mouth of the speaker, the eyes of the law and the ears of the listener. Using
our definition of harassment (on the part of the perpetrator) as the repeated
refusal to accept “no” for an answer, if the missionary is targeting a particular
person who does not wish to listen, then that would be considered harassment. If
on the other hand, it is merely a speech not directed toward any one individual,
that communication may be annoyance but not harassment.
.
At what point do the airport employees step into protect the passenger’s right of
privacy?
The employee’s response may be based on the principle of harassment. If
passengers are asking to be allowed to be alone, then this may be an issue of
harassment. Needless to say, how much freedom of speech is permitted depends
on a nation’s laws and local custom. In the USA, not every action is protected
under freedom of religion (one cannot use hard drugs as a religious exercise), and
the harassment may fall under noise pollution laws. Employees should enter into
this issue only after passengers have complained.
.
Should this form of religious expression be protected or challenged on an
international basis or on a country-by-country basis?
There is almost zero possibility that there will be an international agreement on
such an issue. Religious differences are simply too great. Instead this form of
religious protection or expression will have to be based on a nation-by-nation
status.

In conclusion, these are only two of the many harassment situations tourism managers
and practitioners face daily across the global landscape. Although these exercises are
confined to vendor persistence and religious proselytizing and omit the myriad other
types (e.g. drug peddling, verbal and physical abuse, or sexual harassment), they
illustrate several important dimensions surrounding the problem. First, harassment is
a complex phenomenon that arises in the milieu of interpersonal interaction embedded
with sometimes sharp host-guest socio-economic and cultural differences. Second,
although the problem cannot be stopped absolutely, thinking through and attempting
IJCTHR to reconcile the motivations and requirements of all major stakeholders is the preferred
way forward to achieve consensus and durable solutions. Third, successful strategies
1,4 will place a priority on strengthening community awareness of the unique contribution
tourism makes to the destination’s economic life. They will also foster enhanced
host-guest intercultural understanding. Finally, controlling harassment likely will
remain an ongoing issue until the structure of the tourism industry develops more
314 effective ways to integrate those at the margin into the mainstream since these
visitor-resident economic distances, in part, are both underlying determinants and
visible expressions of the problem.
References
Bowman, G. (1996), “Passion, power and politics in a Palestinian tourist market”, in Selwyn, T.
(Ed.), The Tourist Image: Myths and Myth Making in Tourism, Wiley, Chichester,
pp. 83-103.
Caribbean Tourism Organization (2001), Barbados Stayover Visitor Survey, 1996, 1999, 2000,
CTO, Christ Church.
Cheong, S. and Miller, M.L. (2000), “Power and tourism: a Foucauldian observation”, Annals of
Tourism Research, Vol. 27 No. 2, pp. 371-90.
de Albuquerque, K. (1999a), “Sex, beach boys, and female tourists in the Caribbean”, Sexuality
and Culture, Vol. 2, pp. 87-111.
de Albuquerque, K. (1999b), “In search of the big bamboo”, Transitions, Vol. 8 No. 1, pp. 48-57.
de Albuquerque, K. and McElroy, J. (2001), “Tourist harassment: Barbados survey results”,
Annals of Tourism Research, Vol. 28 No. 2, pp. 477-92.
King, J. (2003), “The perceptions of crime and safety among tourists visiting the Caribbean”, in
Harriott, A. (Ed.), Understanding Crime in Jamaica, University of West Indies Press,
Kingston, pp. 157-75.
Kozak, M. (2007), “Tourist harassment: a marketing perspective”, Annals of Tourism Research,
Vol. 34 No. 2, pp. 384-99.
McElroy, J. (2003), “Tourist harassment: review and survey results”, in Harriott, A. (Ed.),
Understanding Crime in Jamaica: New Challenges for Public Policy, University of West
Indies Press, Kingston, pp. 177-95.
Molina de Aragon (2007), “Geography, history, tourism resources”, available at: http://html.
rincondelvago.com/molina-de-aragon.html (accessed 17 January).
Systems Caribbean Limited (1995), Barbados Visitor Satisfaction Surveys, 1991-1994, SCL,
St Michael.
Tarlow, P. (2005), “The impact of community policing on tourism and tourism oriented
policy/protection services (TOPs)”, E-review of Tourism Research (ERTR), Vol. 3 No. 1,
available at: http://ertr.tamu.edu (accessed 29 January, 2007).

Corresponding author
Jerome L. McElroy can be contacted at: jmcelroy@saintmarys.edu

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www.emeraldinsight.com/1750-6182.htm

Importance-
Executive learning exercise performance
and trainer’s notes analysis
for importance-performance
315
analysis (IPA)
Received January 2007
Confronting validity issues Revised April 2007
Accepted May 2007
Tzung-Cheng (T.C.) Huan
Graduate Institute of Leisure Industry Management, National Chiayi University,
Taiwan, and
Jay Beaman
Auctor Consulting Associates and Colorado State University, Cheyenne,
Wyoming, USA

Abstract
Purpose – Conceptual aspects of this research aim to review issues and to introduce new ways to
employ importance-performance analysis (IPA), also called action-grid analysis (AGA), in formulating
valid research. The purpose of the exercises is facilitating understanding how a variety of matters are
important for research being valid.
Design/methodology/approach – IPA/AGA, different types of IPA/AGA, and validity issues for
these are introduced. Pursuing two types of IPA/AGA, based on different assumptions and thus distinct
validity criteria, reinforces the need for new thinking regarding valid applications of IPA/AGA.
Practically oriented training exercises reinforce understanding concepts introduced. Possible answers
to exercises encourage thinking about matters that directly affect validity of actual research.
Findings – Unless IPA/AGA research is well conceived, properly executed, and soundly analysed,
implications derived may be misleading. Training exercises show the reader values and pitfalls of
considering IPA/AGA in formulating practically oriented research.
Research limitations/implications – A limitation of the research is that detail results are only
presented for two of at least five types of IPA/AGA.
Originality/value – This paper contributes to the overall understanding of the valid use of
IPA/AGA as a tool in research. The paper also facilitates using IPA/AGA in teaching about research.
Keywords Learning, Value analysis, Action research
Paper type Conceptual paper

Since, the inception of importance-performance analysis (IPA), also called action-grid

analysis (AGA) (Blake et al., 1978; Martilla and James, 1977), the literature continues to
expand. Oh’s (2001) literature review finds IPA lacks theoretical development and
raises numerous validity issues with IPA/AGA applications. The version of IPA/AGA
International Journal of Culture,
Martilla and James (1977) introduce is invalid except under special conditions. Matzler Tourism and Hospitality Research
Vol. 1 No. 4, 2007
et al. (2004, p. 271) state, “it is shown empirically that the managerial implications pp. 315-327
derived from an IPA are misleading. Consequently, the traditional IPA needs to be q Emerald Group Publishing Limited
1750-6182
revised.” Reference to “traditional IPA” is important because the existence of disparate DOI 10.1108/17506180710824208
IJCTHR versions of IPA affects the recognition of valid IPA applications. As of 2007, no
1,4 literature exists suggesting IPA is an amorphous collection of analysis methods linked
by some form of action grid being critical in analysis (Beaman and Huan, 2008).
The following exercises prompt thinking about types of research in which
IPA/AGA may be used. Research being valid, whether or not IPA/AGA is used, is an
issue. The training exercises guide the reader to think about whether to use IPA/AGA
316 and how to develop and use attribute importance-performance ratings, or similar
information. Also, the exercises provide data collection and analysis suggestions so
that a goal is achieved.

IPA/AGA background for the exercises

IPA/AGA can be a useful tool for improving a company’s performance (Martilla and
James, 1977). Thinking about whether or not to attend an event or visit a destination is
similar to deciding to purchase a product. To decide on how to modify a product’s
attributes, assume company executives have purchasers’ ratings of importance and
performance for modifiable product attributes a1 to a5. In Figure 1, product attributes
(e.g. a2 ¼ FOOD/MEALS and a3 ¼ PARKING) are associated with points on the
graph. Assume survey data are collected from purchasers that include performance
ratings for the five product attributes. Also, assume data collected include:
.
rating responses for importance and/or;
.
a response or responses on overall performance affecting purchase behavior.

Obtaining a “response or responses on overall performance affecting purchase

behavior” allows the importance values of the attributes to be calculated (Mount, 1997;
or Oh, 2001, for discussion and references on calculated importance).

5.5 Q1-Keep up the good work

Q2-Concentrate
5 here • FOOD/MEALS response (4,5)
+ FOOD/MEALS –
4.5 + PARKING – (pa2,ia2)=(pF,iF)
(pa3,ia3)=(pp,ip)
4 + (pa1,ia1)
Importance

3.5
+ (pa5,ia5)
3
Q3-Low priority
2.5 Q4-Possible Overkill

2
+ (pa4,ia4)
Center for "Crosshairs" - (p,i)
1.5
Figure 1.
Example
1
importance-performance 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6
action grid
Performance
For Figure 1, assume the following. Survey respondents rated both importance and Importance-
performance of attributes a1-a5 (e.g. one ¼ lowest to six ¼ highest). For example, a performance
person’s responses for FOOD/MEALS could be “5” for importance (extremely
important) and “4” for performance (meaning OK). In the figure, the (4,5) point is analysis
plotted at “z”.
To form an action grid such as Figure 1, several steps occur. For Step 1, the
means/medians are computed for attribute importance and performance ratings. In 317
Step 2, for attributes ak (k ¼ 1 to 5), let mean/median ratings for performance and
importance be pak and iak. Points, ( pak,iak), are plotted. The overall mean/median point
( p,i ) is means/medians of all performance and of all importance responses (e.g. p is the
mean/median for all performance ratings). Step 3 involves plotting ( p,i ) to define an
alternative axis system, the crosshair axis system (see crosshairs in Figure 1). In Step 4,
the labels for quadrants are specified based on the crosshairs. Martilla and James
(1977) maintain that “ , ” and “ . ” properties of points in an action grid quadrant
imply a course of action. The action for a quadrant is specified by the respective
quadrant label. In Figure 1, PARKING’s importance, ip, is above the overall
mean/median of i (ip . i ) but performance, pp, is below p ( pp , p). Therefore, the
PARKING point is in the “Concentrate here” quadrant (upper left). This quadrant’s
label reflects the need to improve performance given relatively high importance and
relatively poor performance. In other words, for Martilla and James (1977) ip . i while
pp , p infers that performance should be improved. The point for FOOD/MEALS,
( pF,iF), is in the “high-high” quadrant (upper right), “Keep up the good work.” This title
is based on iF . i while pF . p. These relations are taken to imply improving
performance is not a priority. The “Possible overkill” quadrant (lower right) is
predicated on doing better not being important if performance is high when importance
is low ( pa . p but ia , i ). Finally, “Low priority” for modifying an attribute
corresponds with low performance and importance (lower left). Given that, for
example, profit will not suffer from reducing resources for attributes with points in the
“Possible overkill” quadrant, such attributes are candidates for resource allocations to
improve performance on a “Concentrate here” attribute.
IPA/AGA evolved rapidly after being introduced (see Beaman, 2007 for references).
The reason importance and performance are referenced in italics is that some
IPA/AGA applications replace them with alternative variables. Also, some IPA/AGA
research uses concepts other than importance-performance. For example, IPA/AGA
research may involve two or more action grids; and other forms employ extended or
alternative designs of Figure 1 (Beaman and Huan, 2008; Mount, 2000; Oh, 2001).
Regardless of the variety of IPA/AGA applications that occur, as of 2007 IPA/AGA
applications are not classified based on underlying theory. Nevertheless, very different
types of IPA/AGA applications exist. Beaman and Huan (2008) identify five distinct
types by AGA-1 to AGA-5. For example, AGA-1 is analysis based directly on Martilla
and James (1977). In applying AGA-1, one accepts that the actions associated with
location of points in quadrants of action grids are appropriate actions to consider.
Validity concerns arise when applying IPA/AGA; the results can yield incorrect
conclusions even without statistical variability. Invalidity that is not caused by
statistical variability arises because assumptions behind an application are flawed.
The rationale for Martilla and James’ (1977) quadrant labels just show plausibility
of the actions suggested. Appropriate action based on a quadrant label is not
IJCTHR logical deduction. Matzler et al. (2004) show that quadrant titles only recommend
1,4 appropriate action to take under special conditions.
When thinking about Figure 1, a problem with AGA-1 emerges. In terms of absolute
or relative return on investment, improvements on FOOD/MEALS can have greater
impact on profit than better PARKING. Given a profit goal, decisions should be based
on profit/loss in relation to annualized improvement costs. Simply making
318 “improvements” based on attributes’ positions in an action grid could result in a
high cost to achieve a loss. Also, the common practice of considering satisfaction as the
criterion for rating importance-performance (e.g. how important for satisfaction and
how satisfying was performance) is problematic. Firstly, no sound quantitative theory
exists to explain how a change of Da in a mean/median satisfaction rating for an
attribute relates to a change in volume of visits or in profit/loss. Furthermore, if some
purchasers do not need parking (e.g. they are local or come on a tour bus), aggregate
arguments that increased satisfaction leads to consequences such as more purchases or
profit are flawed. At most, increased satisfaction from improved PARKING applies to
those using parking. For those needing parking, ideas presented by Matzler et al. (2004)
suggest that once PARKING meets a threshold, improvement on PARKING may be a
low priority compared to better performance in other areas (e.g. in FOOD/MEALS). For
a given level of importance, ia, improving low performance does not necessarily have a
greater consequence (e.g. increased profitability) than improving performance on an
attribute with high performance.
McKillip and Cox (1998) provide a non-AGA-1 example of IPA/AGA. In their
AGA-4, Beaman and Huan (2008) classify this application as AGA-4. For AGA-4, the
objective is improving how resources are devoted to unique components, ak, of, for
example, a training program. For AGA-4, performance measures, pak, are based on
components’ resources (e.g. performance is credit/contact hours allocated to a
component of training) not on ratings by respondents in a survey. A desirable pattern
for the (pak,iak) for a tour guide certification program’s five elements could extend from
the third to the first quadrant (Figure 2) showing that resource allocation increases
with importance. Managers and decision makers might want to consider whether or
not the position (0,0) should be a point in the pattern. For an AGA-4 action grid,
Beaman and Huan (2008) give reasons for showing variability of iak (e.g. by lines like
high-low lines in a stock-performance chart) and for considering that variability in
analysis.
Recognizing that products are viewed differently by customer segments and seen
differently under various conditions has implications for IPA/AGA. User/purchaser
segment recognition based on expected unique importance-performance response
patterns is a priori segmentation (Wade and Eagles, 2003). Segmentation also can be
created by a computational procedure identifying people based on survey responses
having a pattern (Vaske et al., 1996). Differences in segments’ response patterns (e.g.
importance values) result in unique action grids. If grids for different segments suggest
different actions, selecting best actions falls outside the domain of IPA/AGA. Analysis
must focus on how, or if, actions suggested by segment specific action grids contribute
to making sound decisions to achieve a goal or goals.
A complication in using IPA/AGA is that endogenous conditions (e.g. crowded
parking, inadequate supply of desirable food, poor entertainment, or long lines) or
exogenous conditions (e.g. weather, or road construction) can drastically affect
 6 Importance-
5.5 Q1-High requirement performance
5
Q2-Possible under resourcing + (pa1,ia1) analysis
Importance (e.g., to career success)

4.5 + (pa2,ia2)
4 319
(pa3,ia3) +
3.5

3
+ (pa5,ia5)
Q3-Low requirement
2.5

2 Center for "Crosshairs" - (p,i)

1.5
+ (pa4,ia4)
1
Figure 2.
Q4-Possibly excess resources
0.5 Example action grid for
AGA-4, assessing resource
0 allocation against
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
importance
Performance (e.g., credit hours or days of training)

importance-performance ratings. Extremely poor/low ratings (outlier responses)

typically are caused by endogenous and exogenous influences. Creating variables that
permit outlier responses to be linked to conditions causing them (e.g. date and duration
of a visit) and collecting data on conditions (e.g. weather data by day), can allow
utilization of non-IPA/AGA analyses to understand how various factors are affecting
goal achievement (e.g. influencing profit). In other words, information for decision
making can be obtained when influences behind outlier responses are examined.
Furthermore, outlier responses can be a catalyst for data collection about
service/facility problems (Beaman and Huan, 2008).
Computer-assisted interviewing (CAI) facilitates collection of information about
why outlier responses are given. For example, a questionnaire can be programmed so
exceptionally “negative” responses prompt questions asking what caused the
response. Using CAI, a verbal reply can even be recorded (see descriptive material and
tutorial at Techneos Systems Inc., 2007). A respondent may report problems with staff
or some other matter that can be addressed but the issue cannot be recognized from
importance-performance ratings of particular attributes.

Training exercises for tourism research analysts and executives

Research can fail due to a lack of thought about how objectives will be achieved. Just
thinking about the use of IPA helps define good research. However, research actually
undertaken may not involve using IPA. In that regard, these two exercises focus on
making prudent decisions about doing research in which IPA/AGA might be used.
Scenarios define situations from which lessons about doing research can be learned.
When reading the scenarios, emphasize comprehension rather than trying to critique
the scenarios. Scenario details are important in answering the questions.
IJCTHR Although previous discussion provides background for answering exercise questions,
1,4 successful completion of the exercises is facilitated by reading references such as Oh
(2001).

Training exercise 1: AGA-4, adjusting an intern training program to optimize

achievement
320 Consider that your agency/organization regularly receives interns. You are concerned
with effectiveness of a particular intern training program. After training, these interns
work in four areas (e.g. of hotel/resort operation). Some participants will be offered
employment at the end of the 13-week program.
In the program, interns undergo a one-week orientation and classroom training
program that has six components with training hours allocated as follows: c1 ¼ 12
hrs; c2 ¼ 9 hrs; c3 ¼ 7 hrs; c4 ¼ 5 hrs; c5 ¼ 3 hrs; and c6 ¼ 2 hrs. This training
may be modified. Assume c5 is “Using the organizations computer system” and c6 is
“Overview of the organization’s structure and function.” Training starts with c6. Then
c5 follows since what is learned in c5 is critical to success in other components.
Components c1-c4 can occur in any order. Each intern is trained to work in the four
distinct areas in which all interns are expected to work (e.g. for three weeks each in
areas A1-A4). An intern must “pass/succeed” in components to remain in the intern
program. Signs, study materials, and exams/quizzes on each study component identify
training components by names that interns are expected to know.
About 70 percent of incoming interns complete the one-week training program and
begin the 12 weeks of work experience. Interns work in A1-A4 but they are randomly
selected to start in a particular area. An intern moves sequentially through areas (e.g.
A3 ! A4 ! A1 ! A2). Although the intent is for each intern to have broad and
challenging experiences in each work area, work area managers are responsible for job
assignments. Area management prepares performance reports on interns and they can
recommend to the training centre that an intern be discharged from the training program.
Assume you have read McKillip and Cox (1998) and some other material on
IPA/AGA. Therefore, you are considering using AGA-4, IPA for training assessment
and adjustment, to see if the intern training can be improved.
Your Training Division Director asks your organization’s Research and Statistics
Division (RSD) to examine the training program using AGA-4. RSD is given literature
on AGA-4. RSD knows about the intern training program from regular participation in
c6 and from company documents on the training. RSD is to report to your Director on
using AGA-4 or other research to meet training division objectives. In training, interns
learn that RSD regularly collects performance and other information without
compromising employee identity. This exercise involves examining and reacting to
RSD’s suggestions.
RSD recommends carrying out a survey of a random sample of 100 interns. They
are to be employed by the organization for six months or more. The sample is
recommended because the population is clearly identified, easily and cheaply drawn
from personnel records, and non-response should not be a problem. As one knows from
polls, by having 100 interviews and given roughly 100 percent cooperation in
responding, estimates will be accurate within 10 percent with 95 percent certainty. RSD
proposes that estimates that are within 10 percent are more than adequate for the
research.
 Informants are to receive an e-mail “asking” them to rate the importance of the six Importance-
training components to them being successful in working for the organization. To performance
assure respondents are anonymous, the data set does not have any information to
identify individuals. Respondents can print a paper questionnaire to place in a analysis
collection bin, rather than making an electronic submission.

Training exercise 1: questions 321

(1) Which of the following responses is least likely to be a valid critique of the
research plan?
.
The “accurate within 10 percent” statement does not apply to rating data (i.e.
to this research).
.
Nearly, 100 percent response should not be expected.
.
Only c1-c4 should be used in an action grid when applying AGA-4.
.
Obtaining meaningful results is compromised by using ratings based on
being successful in working for the organization.
(2) Which of the following is the most questionable statement?
.
Both, c5 and c6 should be rated on providing needed background for success
in c1-c4.
.
Interns must do well in all components to remain interns.
.
High variability in ratings for c1-c4 can imply the desirability of adjusting
training to interns’ background.
.
A high-failure rate on c5 has no implication for adjusting the training
program.
(3) Sample-selection bias occurs when, for example, successful companies are
studied to see why they are successful. A study being done including failed
companies can change research conclusions (Denrell, 2005). Which two of the
following are least questionable?
.
other than sample size, no problems exist with the sample proposed;
.
RSD should have asked for a clear objective statement for intern training;
.
sample-selection bias is not an issue in this research; and
.
just using AGA-4 in analysis is not appropriate.
(4) Advanced training exercise. Write two or three paragraph emails to RSD and/or
your boss regarding what should happen with the research. Consider how you
think the organization expects you to relate to RSD. You may need to write a
note to your boss on why an e-mail to RSD is needed. Also, write a draft e-mail
message that your boss can revise and send to RSD proposing how to proceed.

Training exercise 2: AGA-1 to increase profit

You run a facility for tourists. The destination is isolated so travel costs are
substantial. At the destination visitors only have access to what you offer/sell. About
35 percent of your visitors declare they are likely having a one-time-only visit
experience. About 25 percent are first time visitors who say they are checking out the
destination to see if they want to come “regularly;” are checking-it-out visitors.
IJCTHR About 40 percent of visitors are repeat visitors. Transport in/out, accommodation, food
1,4 for three meals and a late snack, happy hour drinks and use of beach and pools for
swimming and sunbathing are in the fee charged for visiting (e.g. transport in/out is
charge plus a per person per day charge based on accommodation type).
Accommodation types are 1 ¼ economy to 4 ¼ luxury.
Some services are influenced by accommodation type. All visitors eat at the same
322 dining facility. They seat themselves and order from one menu. The resort welcomes
families and offers full day professionally qualified child care at a Child Center and
certified care workers for in accommodation evening care, at fee. However, the “per
person per day charge based on accommodation type” is for any person. Furthermore,
other than at happy hour, people receiving types 1-2 accommodations must pay for
their liquor, wine and beer. A person receiving types 3-4 accommodations gets some
alcoholic products free. Although free group instruction is available for activities (e.g.
tennis, golf, spa, windsurfing, and riding) visitors must pay for related
court/course/equipment if in types 1-3 accommodations.
The Marketing, Research and Performance Evaluation Director (MRPED) suggests
using IPA/AGA (AGA-1) as a first step in deciding about changing attributes to increase
profit. Having done other work based on Martilla and James (1977), the Director proposes
generating a random sample of checkout parties using random numbers to select parties at
checkout. A party selected will be asked if the 16 þ person with birthday nearest to the
checkout date can be phoned in roughly two weeks to answer 21 importance-performance
questions. A paper questionnaire will be handed to the person at the checkout desk that
can be completed by the appropriate respondent prior to departure.
The importance-performance questions are about services. Ten questions are about
services that apply equally to all visitors (e.g. transport in/out, dining services, room
service). Five questions are about services paid for by some visitors. Finally, three
questions are about child services and three about fees/charges. A respondent
distributes up to 210 points to the performance questions. Distributing points is done to
cause respondents to think about performance differences as tradeoffs. Evidence
shows that distributing points create an appropriate spread in response values
(Aigbedo and Parameswaran, 2004; Oh, 2001; Beaman and Huan, 2008). For some
activities, performance on some attributes are not relevant to all guests (e.g. child
related and a party has no involvement with children), responses are left blank
(non-response). When a response is left blank, ten fewer points are to be distributed
(e.g. for 18 responses distribute 180 points). Importance is to be determined by
regression analysis. Questions that relate to the company’s profit objective are to be
asked and responses will be dependent variables used in computing importance (e.g.
repeat visitors will indicate likelihood of returning on a line such as in Figure 3).

0------0.25%------50%------75%-----1-----1.25-----1.5-----------2

Notes: “Line” for recording overall impact of performance on future behavior

on the line mark how you feel performance of the destination has influenced
making return visits and put a numeric value in the box provided. Interpret 0 as
“not coming back”; 25% as about 1 in 4 chance of returning; 50% and 75% as
“will come half and come 3/4 as much; 1 as coming at the same rate; and 1.25,
Figure 3. 1.5 and 2 as showing the increase in coming
To assess the impact of return frequency, repeat visitors and checking-it-out visitors Importance-
will be asked about likely frequency of visiting in the next ten years. performance
Using the data collected, the MRPED will prepare action grids for three visitor
segments (one-time-only, checking-it-out, and repeat) and will present results and analysis
recommendations to management using the action grids. Medians will be used in
forming action grids so that a few very low ratings (outliers) do not overly influence
analysis. 323

Training exercise 2: questions

(1) Question 2.1. Assume that about 1,500 parties are approached. About 1,000
agree to participate and provide 950 usable questionnaires. Which two of the
following responses are least questionable?
.
The action grids proposed for analysis are appropriate.
.
Computing respondents’ ratings of importance better reflects how decisions
are made than asking for importance ratings.
.
For a given level of importance, increasing performance on an attribute has
more impact if performance is low.
.
Segmentation is not adequate for the analysis to produce valid results.
(2) Question 2.2. Which of the following is least questionable?
.
By looking at action grids for segments with different grids, one can draw
sound conclusions on attribute modification actions to take.
. A particular segment’s action grid would give valid information for
modifying attributes if one only had visitors from that segment.
.
For all segments, getting a quantitative response about the respondent’s
likely visit frequency in the next ten years is important.
.
The researcher should ask one-time-only visitors about expected
performance as motivation for coming rather than asking questions to
assess a future relationship with the destination (e.g. asking about
performance influencing intention to recommend the destination).
(3) Question 2.3. Now assume that the data collection and the analysis strategy are
improved by a priori stratification. Which two of the following are least
questionable?
.
Data must include accommodation type (1-4) and variables on using child
related services.
.
The sampling strategy is good for the analysis that will be needed.
.
Since, sample selection bias may occur, keeping data on parties refusing to
participate in the survey is desirable.
.
Outlier responses are of little value in research on modifying attributes to
increase profit.
(4) Question 2.4. Which response is most questionable?
.
For the repeat segment, one should collect data that allows calculating how
attribute change affects volume of visits.
IJCTHR .
Recording information (e.g. date of arrival and length of stay) to link
1,4 endogenous (e.g. service problems) and exogenous (e.g. weather) to
responses can be as valuable as recording importance-performance
responses for attributes.
.
Having outlier responses trigger questions on why an outlier response is
given (e.g. kids do not like the place) can yield key information for decision
324 making.
.
Importance-performance ratings for satisfaction such as
1 ¼ unimportant/unsatisfactory performance to 5 ¼ very
important/performance very satisfying allow respondents to adequately
express their views on attributes.
(5) Question 2.5. Advance training exercise. Write an essay about issues involved in
using AGA-1 that are raised by answering Questions 2.1-2.4. The essay should
build on the justifications for responses given in the answer material. For those
expected to read articles such as Oh (2001), the answer should include a
discussion of how the exercise material relates to matters covered by Oh.

Train’s note – discussion and exercise solutions

Training exercise 1 response: AGA-4
Question 1.1. – (a) is valid since “poll” accuracy does not apply to ratings (Beaman
et al., 2004). Response (b) is the correct response (least likely valid). Given the
circumstances, most employed interns should respond. Choice (c) is valid since c5 and
c6 are training needed for c1-c4. Finally, response (d) is valid given that working with
the organization does not necessarily have anything to do with a respondent feeling
“successful.” A respondent can detest a job that is being done and see no opportunity;
however, she may need the work. Conclusions should be drawn on appropriate
modifications to the training.
Question 1.2. – Option (a) is reasonable given that c5 and c6 are prerequisites for
c1-c4. Choice (b) is reasonable given what training is to achieve. For choice (c),
variability in ratings can imply some interns come knowing what training covers.
Discussion can be on other reasons for variability. Finally, choice (d) is the correct
response (most questionable). High failure can have implications for adjusting the
training program. Some people who would be good employees may fail training
because of a lack of background/knowledge. Such a deficiency could possibly be
eliminated in a few hours. A topic for discussion can be getting and using information
on reasons for non-completion of training/internship.
Question 1.3. – For choice (a), serious problems may exist with the sample because
only “now-employed” interns are in the population (see Question 1.2). Choice (b) is a
least questionable response. A reasonable assumption is that RSD did not request an
objective statement or hold discussions with Training Center personnel since these are
not mentioned. In option (c), sample selection bias may be an issue in this research.
This concern is a topic hinted at in these responses. Discussion can involve considering
what intern training objectives should be and how these objectives impact who should
be interviewed. Finally, choice (d) is also a least questionable response. AGA-4 may be
used but analysis by AGA-4 is clearly not adequate on its own. Discussion should
focus on non-AGA-issues and on doing more with a survey than executing AGA-4 (e.g. Importance-
as suggested in these exercises). performance
Question 1.4.Advance training exercise. – The e-mail should communicate
the research issues covered in Questions 1.1-1.3. The material in Exercise 1 analysis
questions’ responses should be used as guideline. The message should build a case for
how the research should be done, and/or for soliciting professional advice on doing the
research. An e-mail to the Training Division Director might outline issues and suggest, 325
for example, that the Training Division Project Officer meet with the RSD Project
Analyst and discuss research options (e.g. because this course of action is the best way
to avoid controversy and get a good research product). A draft e-mail/“memo” to the
Director RSD from the Training Division Director must be consistent with
recommendations to this Director.

Training exercise 2 responses: AGA-1

Question 2.1. – Choice (a) is false since the action grids proposed are not appropriate
(e.g. accommodation and child-related questions apply to subsegments). Option (b) is a
less-questionable response. Importance ratings of attributes regarding returning (how
important is performance on attributes X to Z to returning) are wild guesses but
computed importance values have a quantitative basis. Choice (c) is false since the
condition need not hold (Oh, 2001). Finally, choice (d) is less questionable (see 2.1.a).
Question 2.2. – Choice (a) is questionable. For example, even if grids suggest valid
actions for segments, analysis is required to determine which option or combination of
options to pursue to maximize profit. The grids at best suggest options to consider in
further analysis). Choice (b) also is questionable (Matzler et al., 2004). Also, choice (c) is
questionable. The “trick” is that the information on frequency of returning should not
be requested from one-time-only visitors. Finally, choice (d) is least questionable.
Analysis of answers in relation to motivation to come is more likely to lead to sound
conclusions about attributes influencing profit than analysis of likelihood of
recommending ratings (e.g. 5 ¼ “very likely” to 1 ¼ “no way.” This question opens
a good topic for discussion.
Question 2.3. – Choice (a) is least questionable. For example, segments must reflect
accommodation and a “relation” to child services to understand relevance of
responses). Choice (b) is questionable since:
.
people 16 þ is suggested to be the population but parties with low 16 þ tend to
be over sampled; and
.
random sampling likely means many segments/strata have few observations.

Option (c) is least questionable (e.g. refusals may be largely dissatisfied parties).
Finally, choice (d) is questionable. For example, outlier responses provide valuable
information on service failures.
Question 2.4. – For option (a), data should be collected that allows calculating how
attribute change affects volume of visits. Without knowing something about volume,
what will be known about change in profit? For choice (b), knowing the context
associated with responses is important in valid interpretation. In choice (c), outliers
signal circumstances that one should learn about. Finally, choice (d) is the most
questionable response. The kind of importance-performance ratings identified and
getting them for satisfaction do not allow any meaningful quantitative inferences
IJCTHR about the impact of attribute change. For a public service “increased satisfaction” could
1,4 be a goal. This exercise has to do with profit.
Question 2.5. Advance training exercise. – The essay should be founded on issues
that are raised by answering Questions 2.1-2.4. Organization of material should be by
topic (not be a collection of reactions to responses). For those expected to read articles
such as Oh (2001), a reasonable option is organizing one part of the essay based on Oh’s
326 topics and another section can introduce new matters.

Conclusions
Though applying IPA/AGA has been common, serious problems exist with many
applications. However, this concern does not mean that IPA/AGA application be
avoided. For example, collecting information about how importance of and
performance on attributes of a product should reflect expectations, observations,
and experience. For a particular purchase, how do the views of others (e.g. family
members) on attributes’ importance and performance influence what a person does (the
decision to purchase, repurchase or not purchase)? Expectation of people reacting to
views of others should guide research formulation. Recognizing the role of others in a
purchase decision helps to design appropriate survey questions.
These exercises stress the importance of thinking about attributes ratings being
segment specific. In fact, clearly, some attributes may not apply to all segments while
different responses can be appropriate for specific segments. In other words, logical
consideration of using importance and performance information in analysis can
elucidate matters that should be considered so that research yields valid results.
Considering what is expected to influence behavior is important whether or not some
version of IPA/AGA is actually used in research.
While only pursuing some specific matters, this material focuses on logical thinking
with IPA/AGA as an element in the process. To develop specific IPA/AGA
applications, managers must be prepared to address the kinds of theoretical
deficiencies this paper highlights as well as the concerns raised in Oh (2001). Also,
Matzler et al. (2004) is critical reading for potential users of AGA-1. The payoff is worth
the effort because the correct implementation of IPA/AGA research provides managers
with useful information for making decisions while faulty implementation results in
wasted resources and can result in bad decisions.

References
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quality of campus food service”, International Journal of Quality & Reliability
Management, Vol. 21 No. 8, pp. 876-96.
Beaman, J.G. (2007), “IPA reference material”, available at: http://members.ispwest.com/
jaybman/jaybman/ (accessed 20 January).
Beaman, J.G. and Huan, T.C. (2008), “Importance performance analysis (IPA): confronting
validity issues”, in Woodside, A.G. and Martin, D. (Eds), Advances in Tourism
Management, CABI Publishing, Cambridge, MA.
Beaman, J.G., Huan, T.C. and Beaman, J.P. (2004), “Sample size and reliability in measuring
relative change and magnitude”, Journal of Travel Research, Vol. 43 No. 1, pp. 67-74.
Blake, B.F., Schrader, L.F. and James, W.L. (1978), “New tools for marketing research: the action
grid”, Feedstuff, Vol. 50 No. 19, pp. 38-9.
Denrell, J. (2005), “Selection bias and the perils of benchmarking”, Harvard Business Review, Importance-
reprint R0504H, April, available at: http://mahalanobis.twoday.net/stories/682756/ (critical
content of the article accessed 1 February, 2007). performance
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certifications”, Evaluation and Program Planning, Vol. 21 No. 2, pp. 191-7.
Martilla, J.A. and James, J.C. (1977), “Importance-performance analysis”, Journal of Marketing,
Vol. 41 No. 1, pp. 77-9. 327
Matzler, K., Bailom, F., Hinterhuber, H.H., Renzl, B. and Pichler, J. (2004), “The asymmetric
relationship between attribute-level performance and overall customer satisfaction: a
reconsideration of the importance-performance analysis”, Industrial Marketing
Management, Vol. 33 No. 4, pp. 71-277.
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Journal of Hospitality and Tourism Research, Vol. 21 No. 2, pp. 111-9.
Mount, D.J. (2000), “Determination of significant issues: applying a quantitative method to
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Tourism, Vol. 1 No. 3, pp. 49-63.
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No. 6, pp. 617-27.
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techneos.com/resources/product_demos.asp (accessed 1 January).
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go from here?”, Journal of Tourism and Marketing Research, Vol. 5 No. 3, pp. 225-40.
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Corresponding author
Tzung-Cheng (T.C.) Huan can be contacted at: tchuan@mail.ncyu.edu.tw

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IJCTHR
1,4 Management exercises
and trainer’s note in sustainable
tourism and dynamics
328
Robert J. Johnston
Department of Agricultural and Natural Resource Economics,
Received March 2007
Revised April 2007 University of Connecticut, Groton, Connecticut, USA, and
Accepted June 2007 Timothy J. Tyrrell
School of Community Resources and Development, Arizona State University,
Phoenix, Arizona, USA

Abstract
Purpose – To provide training exercises that will help tourism planners and analysts better
understand the fundamentals of tourism sustainability and dynamics.
Design/methodology/approach – The paper is organized as a presentation of tools and conceptual
models, followed by associated training exercises and answers. The first exercise addresses basic
concepts of sustainability as applied to tourism development. The second addresses the use of phase
diagrams to illustrate the dynamic behavior and change of tourism-related economic and
environmental conditions over time.
Findings – Operational definitions of sustainable tourism generally are consistent with a wide
variety of outcomes for a tourist destination. Exercises demonstrate that operational definitions of
tourism sustainability require numerous choices and tradeoffs, and are more complex than is
suggested by common discourse.
Practical implications – Given that the most desirable sustainable outcomes for tourism differ
across groups, the search for sustainable tourism outcomes must combine environmentally
sustainable outcomes (which are often many) with socially acceptable compromise solutions that
lie somewhere between the optima for each distinct group. No amount of searching, bargaining, or
stakeholder education will reveal a universal sustainable solution that maximizes benefits to all
affected groups. In the vast majority of cases no optimal solution exists.
Originality/value – The paper provides tools and conceptual frameworks that characterize potential
conflicts, hazards, and tradeoffs implicit in the choice among different sustainable or non-sustainable
outcomes for tourism.
Keywords Training, Tourism management, Sustainable development
Paper type Case study

International Journal of Culture,
Tourism and Hospitality Research
Vol. 1 No. 4, 2007
pp. 328-337
q Emerald Group Publishing Limited
1750-6182
DOI 10.1108/17506180710824217
Introduction
The Brundtland Report (World Commission on Environment and Development, 1987)
provides perhaps the most widely recognized definition of sustainable development:
“development that meets the needs of the present without compromising the ability of
future generations to meet their own needs.” This definition suggests relatively
undisputed social goals, and an ability to agree on policies that meet, for example the
needs of the present. However, nearly all public policies create both winners and losers.
Rarely does perfect agreement exist on those policies that are most appropriate for
satisfying present needs, much less those that fulfill the complete Brundtland Management
definition. exercises and
In contrast, operational definitions of sustainable tourism generally are consistent
with a wide variety of outcomes for a tourist destination. This reality can lead to trainer’s note
controversy regarding which version of sustainable tourism a region wishes to pursue.
Conflicts regarding the potential goals of sustainable tourism imply that the concept
alone does not convey sufficient information to define policy. Operational definitions 329
of tourism sustainability require details regarding what elements are to be sustained,
the level at which these elements should be sustained, and the stakeholder groups
whose benefits should be considered (Pezzey, 1997). For example, one may seek to
sustain the number of visitors, the size of industry profits, the quality of some or all
environmental resources, the quality of the tourist experience, the number of tourist
jobs, the quality of life of local residents, or some combination of these and other
elements. These objectives are unlikely to be sustained simultaneously.
The following training exercises and accompanying text are designed to provide a
better understanding of tourism sustainability and dynamics. The first exercise
addresses concepts of sustainability as applied to tourism development. The second
addresses the use of phase diagrams to illustrate the dynamic behavior and change of
tourism-related economic and environmental conditions over time, as related to
sustainable tourism outcomes. Together, they illustrate findings relevant to the search
for sustainable tourism, and characterize potential conflicts, hazards, and tradeoffs
implicit in the choice among different sustainable or non-sustainable futures. They also
illustrate that operational definitions of tourism sustainability require numerous
choices, and are more complex than is suggested by common discourse and much of
the tourism literature.

Tourism sustainability
An environmentally sustainable optimum is a desired outcome’s maximum level (e.g.
economic profits, quality of life) that may be maintained in a steady-state solution,
subject to constraints imposed by the environment. Drawing from this concept, optimal
environmentally sustainable tourism implies a primary emphasis on maintaining a
certain level of environmental quality. This emphasis notwithstanding,
environmentally sustainable tourism is impossible without both a sustainable
environment and a viable tourism industry. For example, zero visitors to a pristine
natural area are likely an environmentally sustainable outcome – however this
scenario is a largely trivial result for tourism. Sustainable outcomes that are optimal
from the perspective of various stakeholder groups, in contrast, require that one find an
appropriate and sustainable balance between the benefits of tourism and
environmental quality. The search for this balance often is complicated by the
relationship between visitors and environmental quality – while visitors are often
attracted by pristine environments, they often degrade the very environments they
seek out.
Another issue is that different groups may view different outcomes as optimal when
considering sustainable tourism policies. For example, permanent residents may
benefit from tourism income, jobs, and tax revenue (Haralambopolous and Pizam,
1996), but they often react negatively towards such factors as tourism-related
congestion, environmental degradation, and noise, as well as exclusion from the use of
IJCTHR natural resources or infrastructure officially or de facto reserved for visitors (Cohen,
1,4 2002; Kaynak and Marandu, 2006; Mason and Cheyne, 2000). Hence, residents’ goals
for tourism often differ from those of the tourism industry, such that sustainable
solutions that are most desirable for the tourism industry are not the same as those that
are most desirable for local residents. A common pattern is that residents realize
greater negative effects or costs related to tourism, such that the sustainable optima for
330 residents often involves fewer tourists than the industry desires.
Given that the most desirable sustainable outcomes differ across groups, the search
for sustainable tourism outcomes must combine environmentally sustainable
outcomes (which are often many) with socially acceptable compromise solutions that
lie somewhere between the optima for each distinct group. In nearly every case, a
universal sustainable optimum does not exist for visitor numbers. No amount of
searching, bargaining, or stakeholder education will reveal a single sustainable
solution that maximizes profits to industry and utility to residents. In the vast majority
of cases such an optimal solution does not exist. The search for sustainability implies
that at least one group will be worse off, compared to their most preferred
environmentally sustainable outcome. Hence, even if a tourist destination is at an
environmentally sustainable, optimal solution from the perspective of one group,
political pressure from other groups may force departure from that point. Moreover,
other goals, such as sustainable growth in profits or quality of life, may not be
compatible with environmental sustainability and are likely non-attainable – at least
given fixed technology.

Understanding paths to sustainable outcomes: the phase diagram

Phase diagrams are a common means to illustrate optimal solutions to dynamic
problems. This technique may be used to help model potential tradeoffs involved in the
search for sustainable tourism outcomes. Phase diagrams are like road maps. Each
point on the map lies on some optimal route that might be taken between places. The
latitude and longitude on the map are the values of two variables over space. When
used to characterize economic, biological or other dynamics, phase diagrams typically
illustrate the movement of interrelated variables over time. They help predict and
understand the movement of dynamic systems, and can help characterize potential
tradeoffs implicit in the choice among different sustainable or unsustainable
trajectories.
In typical applications, phase diagrams illustrate dynamic patterns using two loci
(collections of points typically drawn as a line or curve) that characterize change in a
state variable and a control variable. The state variable represents the current quantity
of some variable of interest (e.g. the size of a stock of fish, or the level of some
measure of environmental quality). The control variable characterizes the quantity of
some periodic activity that somehow influences the state variable, often in return for
some benefit (e.g. the quantity of fish harvest per year, or the number of tourists per
day). The relationship between the state and control variable determines movement
along some optimal path towards, or away from, steady-state sustainable optima – or
sustainable solutions that maximize the benefits of one or more groups over time. The
basic idea is that a decision maker chooses the level of the control variable in each
period to maximize some objective. For example, a tourism manager might choose the
number of visitors per year to maximize industry profits over time. This choice must
reflect unavoidable (and mathematically specified) relationships and tradeoffs between Management
the control variable (e.g. visitors) and the state variable (e.g. environmental quality). exercises and
These relationships may be specified based on researcher assumptions or on patterns
estimated using empirical data. trainer’s note

A simple tourism example

Figure 1 shows a simple phase diagram showing the relationships between 331
environmental quality (X) and the number of visitors per year (V) in a tourist
destination. The phase diagram’s pattern is derived from an underlying set of assumed
mathematical functions, such as those described by Johnston and Tyrrell (2005). These
relationships show linked changes in visitor numbers and environmental quality that
are consistent with choices that would maximize the discounted sum of net tourism
benefits to a particular group – here the tourism industry. A similar example can be
illustrated for permanent residents of a tourist region. The example’s specific details
are not particularly important here, but the basic idea is each visitor provides benefits
to the tourism industry, but also “uses up” a small amount of environmental quality.
As environmental quality degrades, however, each visitor is willing to pay less to visit.
Environmental quality renews itself, but only slowly. The question is how to choose
the number of visitors each period to maximize long-term discounted net benefits, in
this case to the tourism industry. This solution is shown by the phase diagram for a
simplified example.
As Figure 1 shows, optimal tourism choices are determined by functions which
show the change in environmental quality and visitors over time. The relationship
describing the per-period change in environmental quality (X) combines the negative
influence of visitors (V) and the positive influence of natural renewal. The variableX_
indicates the resulting net change in environmental quality from period to period,

Visitors (V)

A .
V=0

.
X=0

F
B C
D
E

Figure 1.
Phase diagram
for environmentally
sustainable tourism:
steady-state and optimal
Environmental X1 paths
Quality (X)
IJCTHR which may be positive, negative, or zero (the dot (· ) represents a partial derivative of X
1,4 with respect to time). Sustainability of environmental quality occurs when no change
occurs over time ðX_ ¼ 0Þ: This position represents a balance between natural renewal
and visitor damage. Each point along the X_ ¼ 0 curve in Figure 1 shows a sustainable
pair of visitation and environmental quality levels. Any position above this curve
(e.g. point A) represents conditions in which visitor damage exceeds natural renewal –
332 hence environmental quality will degrade over time. Points below this curve
(e.g. point B) represent conditions in which natural renewal exceeds visitor damage –
hence environmental quality will improve over time. Only along the X_ ¼ 0 curve will
natural renewal exactly offset visitor damage – a sustainable balance for
environmental quality.
The second curve on the graph characterizes the change in visitors over time that is
consistent with the maximization of tourism industry profits. Curve V_ shows the
change in visitors consistent with maximization of the present value of net profits for
the tourism industry. This line reflects mathematically how visitor numbers would be
ideally changed (i.e. in a way that maximizes the discounted sum of profits) by the
tourism industry at any point in time, given specific starting combinations of visits and
environmental quality. The V_ ¼ 0 curve shows locations where the optimal choice by
industry is to leave the number of visitors unchanged from one period to the next. Only
along this curve will there be no incentive for industry to either increase or decrease
visitors. Hence, the V_ ¼ 0 curve shows sustainable locations with regard to the number
of visitors.
Sustainable solutions are characterized by zero changes over time in both
environmental quality (X) and the number of visitors (V) – solutions where both X_ ¼ 0
and V_ ¼ 0: The points where these two curves cross thus represent steady-state,
sustainable solutions for tourism, from the perspective of industry.
The joined arrows on the phase diagram show the direction of movement in both
visitors and environmental quality, based on the relationships described above. They
show where the system will move from one period to the next. Only from certain
starting points will optimal industry choices lead to sustainable solutions. For
example, the arrows in the figure’s upper left hand quadrant show that starting in this
location (say point A), the profit maximizing choices of industry leads to long-run
declines in the environment (X) and increases in ever lower-paying visitors (V) – an
unsustainable trajectory. However, starting at a point such as F, the optimal trajectory
results in fewer visitors and a gradual decline in environmental quality until
sustainable point C is reached. At this point both X_ ¼ 0 and V_ ¼ 0; so there are no
additional changes in either visitors or environmental quality over time. This solution
is a sustainable outcome that maximizes benefits to the tourism industry. Additional
details of this particular example are given by Johnston and Tyrrell (2005). Another
example of phase diagrams in an assessment of tourism sustainability is provided by
Casagrandi and Rinaldi (2002). This simple example illustrates ways in which such
dynamic models can help tourism planners to predict future outcomes, better
understand currently observed patterns, and identify optimal paths to sustainable
outcomes.
Training exercises for tourism research analysts and managers Management
The following training exercises are designed to help tourism managers and analysts exercises and
better understand the fundamentals of tourism sustainability and dynamics, both from
a conceptual and dynamic perspective. The first set of exercises addresses trainer’s note
fundamental aspects of tourism sustainability, including outcomes and definitions
that are and are not implied by the concept of environmentally sustainable tourism.
The second set addresses the use of phase diagrams as a tool to model and 333
conceptualize optimal work of Johnston and Tyrrell (2005) and the discussion above.
Each set of exercises is comprised of four multiple choice questions followed by an
advanced training question. Answers, discussion, and trainer’s notes follow in a
subsequent section.

Training exercise one: tourism sustainability

(1) Operational definitions of tourism sustainability require decisions regarding of
which of the following?
.
What elements are to be sustained?
.
The level at which certain elements should be sustained.
.
Stakeholder groups whose benefits should be considered.
. All of the above.
(2) Optimal sustainable tourism outcomes will likely differ across different
stakeholder groups because:
.
Visitors tend to degrade the environment of tourist destinations.
.
The benefits and costs of tourism differ across stakeholder groups.
.
The tourism industry is commonly shortsighted.
.
All of the above.
(3) The Brundtland report:
. Provides a detailed template for sustainable tourism.
.
Demonstrates that it is possible to find a single sustainable solution that
maximizes benefits to a wide range of stakeholder groups.
.
Provides definitions of sustainability that imply relatively undisputed social
goals.
.
Demonstrates why it is practically impossible to obtain environmentally
sustainable tourism.
(4) Which of the following could be considered an environmentally sustainable
optimum for tourism?
.
Maximum steady-state industry profits that, are consistent with maintaining
a chosen level of environmental quality.
.
Maximum steady-state quality of life for local residents that is consistent
with maintaining a chosen level of environmental quality.
. Maximum steady-state number of tourism jobs that is consistent with
maintaining a chosen level of environmental quality.
.
All of the above, but it is unlikely that all may be sustained simultaneously.
IJCTHR (5) Advanced training exercise. Renewable resources are those that renew
1,4 themselves or grow over time (e.g. fish, or forests). Non-renewable resources
do not renew themselves over time (e.g. copper in a mine). Does the above
discussion of sustainability imply that degraded environmental resources (e.g.
by tourist visitors) are renewable or non-renewable? Explain your answer in a
brief paragraph of 4-6 sentences.
334
Training exercise two: phase diagrams and tourism dynamics
(1) Which of the following statements is supported by the phase diagram in
Figure 1?
.
Choices made by a profit-maximizing industry planner will never lead to
sustainable environmental outcomes.
.
Choices made by a profit-maximizing industry planner will always lead to a
decline in environmental quality over time.
.
Choices made by a profit-maximizing industry planner can lead to
sustainable outcomes, depending on initial levels of visitors and
environmental quality.
.
An economic incentive always exists for a profit-maximizing industry
planner to increase the number of visitors.
(2) Based on patterns shown in the phase diagram (Figure 1), what will happen if
one starts at point E?
.
Initially, visitors will increase and environmental quality will increase.
.
Initially, visitors will increase and environmental quality will decrease.
.
Initially, visitors will decrease and environmental quality will decrease.
.
Initially, visitors will decrease and environmental quality will increase.
(3) Which one of the following starting points of visitors and environmental quality
leads to a sustainable, steady-state outcome?
.
A
.
B
. D
.
F
(4) The phase diagram predicts that incentives for immediate decreases in visitors
and environmental quality will occur in which quadrant of the graph?
.
Upper left hand quadrant.
.
Upper right hand quadrant.
.
Lower left hand quadrant.
.
Lower right hand quadrant.
(5) Advanced training exercise. Assume that environmental quality begins at level
X1 on the phase diagram in Figure 1. In a short paragraph (3-6 sentences),
describe the path of visitors and environmental quality that will both maximize
benefits and lead to a sustainable, steady-state outcome.
Trainer’s note: discussion and solutions Management
Together, the two sets of training exercises are designed to convey a more nuanced exercises and
understanding of tourism sustainability and analysis among practitioners. The
purpose of the first set of exercises is to dispel common misconceptions regarding trainer’s note
tourism sustainability, and to promote a more formal understanding of the concept and
the tradeoffs it implies. Correct answers are as follows:
.
d 335
.
b
.
c
.
d
.
The above discussion assumes that the resources upon which tourism depends
are renewable to some degree. Non-renewable resources in general do not
support steady-state (sustainable) solutions. The reason is because
non-renewable resources, if used at all, are eventually depleted, such that
“sustainable” use of non-renewable resources is not possible. Sustainable
outcomes can occur if one allows for renewable “backstop” resources that replace
non-renewable resources once depletion is imminent, or if there is substitution
between natural and man-made capital. These cases, however, do not involve
sustainable use of the original resource, but replacement of the resource at it
diminishes with renewable resources or capital.

Of particular emphasis in the first set of exercises is a recognition that many outcomes
are consistent with the notion of tourism sustainability, and that user groups likely will
disagree as to the most optimal of these potential outcomes. A single sustainable
outcome viewed as optimal by all affected groups (e.g. the tourism industry, local
residents) rarely exists. These issues are highlighted in questions 1, 2 and 4.
Furthermore, as emphasized by the correct answer to question 3, this critical
recognition is often missing from political discourse in tourism sustainability, as
reflected in commonly-cited definitions such as that provided by the Brundtland
Report (World Commission on Environment and Development, 1987).
The fifth question underscores yet another aspect of sustainability often overlooked
by policymakers – the depletion of non-renewable resources such as fossil fuels,
minerals, and some groundwater resources is not consistent with environmentally
sustainable tourism. If non-renewable resources are somehow replaced with renewable
substitutes or man-made capital (often called backstop technologies), then sustainable
outcomes may be possible in the long run. The depletion of non-renewable natural
capital, however, is not sustainable. A long-term vision for sustainable tourism must
therefore rely on resources that are renewable to some degree, or provide for the
replacement of non-renewable resources with renewable backstops.
The second set of exercises is meant to provide insight into the use of quantitative
tools – here phase diagrams – to explore dynamic paths towards (and away from)
potential sustainable outcomes. Phase diagrams are common tools in many areas of
research inquiry in which sustainability is a goal, but have only recently been applied
to tourism analysis (Casagrandi and Rinaldi, 2002; Johnston and Tyrrell, 2005).
Questions and answers are designed to help tourism analysts interpret simple phase
IJCTHR diagrams, and appreciate the potential for tourism applications. Correct answers to the
1,4 five questions are as follows:
(1) c
(2) a
(3) d
336 (4) b
(5) Starting at environmental quality X1, the optimal starting point for visitors is at
point E. Subsequent periods are characterized by a gradual increase in both
visitor numbers and environmental quality along the dashed line, until point C
is reached. Point C is a steady-state optimum, at which the benefit-maximizing
strategy is zero change in visitors and environmental quality over time.

One of the most essential and often misunderstood aspects of a phase diagram such as
that Figure 1 shows is that all paths shown on the diagram are optimal, in that they
represent dynamic, benefit-maximizing strategies from any given starting point.
However, only a limited number of these paths will lead to steady-state, or sustainable,
outcomes in which renewal of natural resources exactly offsets tourism-related
diminishment. As a result, the actions of an planner seeking to maximize the sum of
discounted industry profits may lead to a sustainable outcome, but this result depends
critically on the starting point of visitors and environmental quality (see answer to
question 1). Hence, one option for planners seeking to encourage sustainable tourism is
to ensure that the starting point is such that sustainability becomes an optimal
solution.
Depending on where one starts on the phase diagram (representing stylized
conditions in an actual tourist destination), along the optimal path incentives may
cause the number of visitors and environmental quality to increase, decrease or remain
unchanged. Any combination is possible, depending on the starting point. For
example, starting at point E in Figure 1, the optimal path leads upward and to the right
– an optimal trajectory characterized by increases in both environmental quality and
visitor numbers until steady state C is reached. At steady-state point C, the optimal
strategy is to maintain both visitors and environmental quality at existing levels – a
sustainable steady state (see answers to questions 2 and 5). Aside from point E, there is
only one other point identified on the diagram that leads to the single steady state
outcome C. This position is point F, where the optimal trajectory leads downward and
to the left, with decreases in both visitors, and environmental quality (see answers to
questions 3 and 4). Note that many other non-labeled points also would lead to the
same steady state outcome. For example, optimal paths from any point along the bold
dashed lines between E, F and C will lead to the same steady state (i.e. to C). However,
of those points labeled on the graph, only paths from E and F do so.

Conclusion
Operational definitions of tourism sustainability do not always correspond with the
more vague notions of sustainability prevalent in the tourism literature. Nonetheless,
these definitions are consistent with a wide variety of tourist destination outcomes.
These exercises illustrate ways to characterize potential conflicts, hazards, and
tradeoffs implicit in the choice among different sustainable or non-sustainable
outcomes for tourism. The underlying models are not the sole way that such analytic Management
tools may be applied to sustainable tourism issues. Rather, the current approaches are
presented as templates – alternatives that may be added to the toolbox available to
exercises and
those assessing tradeoffs in sustainable tourism. The exercises are intended to provide trainer’s note
a preliminary step towards greater structure and clarity in the discussion of tourism
sustainability – a means to incorporate guiding structure to an area of debate often
characterized by a lack of theoretical and conceptual clarity. 337
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University Press, Oxford.

Corresponding author
Robert J. Johnston can be contacted at: robert.johnston@uconn.edu

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