Chapter 6:

Issues in Travel Distribution

6.1 Service Quality
6.2 Ethics and Sustainability
6.1 SERVICE QUALITY

Service quality is a comparison of expectations with performance. A business with

high service quality will meet customer needs whilst remaining economically
competitive.

6.1.1Service Quality Dimensions:

 Reliability:
 
Perform promised service dependably and accurately.
Example: receive mail at same time each day.

 Responsiveness:

 Willingness to help customers promptly.
Example: avoid keeping customers waiting for no apparent reason.
Quick recovery, if service failure occurs

 Assurance:

Ability to convey trust and confidence.
Give a feeling that customers’ best interest is in your heart
Example: being polite and showing respect for customer.

 Empathy:
 
Ability to be approachable, caring, understanding and relating with customer
 needs.
Example: being a good listener.

 Tangibles:
 
Physical facilities and facilitating
goods. Example: cleanliness
Figure 6.1
Service Quality Gap Model

Customer Customer Satisfaction Customer

GAP 5
Perceptions Expectations

Managing the Customer / Understanding

Evidence Communication Marketing Research the Customer
GAP 4 GAP 1
Management
Service
Perceptions
Delivery of Customer
Expectations
Conformance
Design GAP 2
GAP 3
Conformance Service Design
Service
Standards
 6.1.2 SERVICE QUALITY GAP MODEL

GAP1: MARKET RESEARCH GAP

 Management may not understand how customers formulate their expectations

 from past experience, advertising, communication with friends
  Improve market research
 Foster better communication between employees and its frontline
employees Reduce the number of levels of management that distance the
customer

GAP 2: DESIGN GAP

 Management unable to formulate target level of service to meet customer
 expectations and translate them to specifications
 Setting goals and standardizing service delivery tasks can close the gap

GAP 3: CONFORMANCE GAP

 Actual delivery of service cannot meet the specifications set by management

 Lack of teamwork
 Poor employee selection
 Inadequate training
 Inappropriate job design

GAP 4: COMMUNICATION GAP

 Discrepancy between service delivery and external communication

 Exaggerated promises in advertising
 Lack of information provided to contact personnel to give customers

GAP 5: CUSTOMER EXPECTATIONS AND PERCEPTIONS GAP

 Customer satisfaction depends on minimizing the four gaps that are associated
 with service delivery
 Companies try to measure the gap between expected services and perceived
service through the use of surveys
Figure 6.2
A simple distribution channel for organized tourist trips

P TO TA EC

Note: P=service product (of a service element), TO =tour operator, TA=

travel agent, EC= end-customer
6.2 ETHICS AND SUSTAINABILITY

6.2.1 INTRODUCTION TO ETHICS

Definition in general “Ethics is a set of rules that define right and wrong
conduct”

This term include:

 Statutory legislation
 Formalized codes of conduct
 Unwritten but generally accepted guidelines on standard behavior

Figure 6.3: The Ethics Spectrum

Views held
Widely Widely
Laws by a View of
shared views shared views
imposing minority of every single
that certain that certain
certain citizens that individuals
behavior, behavior,
standards of certain as to what
while legal, while
behavior behavior is behavior is
is totally undesirable
either for either acceptable
unacceptable is not totally
individual or unacceptable or desirable
to most unacceptable
companies or
citizen
undesirable

Figure 6.3 illustrate the spectrum of ethics ranging from ideas of ethical behavior that
are shared by just a few individuals to those that are enshrined in legislation.

6.2.2 THE STAKEHOLDERS IN ETHICAL ISSUES IN INDUSTRY INCLUDES:

 Consumers
 Management and employees of organization
 Shareholders, investors
 Marketing intermediaries (e.g.: retailers)
 Local communities in destinations
 Suppliers
 Professional bodies
 The media
 Government- central and local


6.2.3 ETHICAL CHALLENGES IN TOURISM:

 Authenticity and heritage tourism

 The adverse environmental impacts caused by tourism
  Sex tourism
 Human resources management issues such as sex discrimination, racial
 discrimination and pay
 The opportunity cost represented by public sector investment in tourism
 infrastructure
 The perception that much tourism promotion is dishonest or at least
 inaccurate
 The suggestion that tourism trivializes indigenous cultures

6.2.4 ETHICAL ISSUES AND TRAVEL AGENT:
 Human resource management
 Links to producers
 Level of commission
 Sales incentives
 Sales promotion
 Multiple versus independent agent
 Travel agents and the products of small scale of tour operators
 Misleading advertising
 Customer service
 6.2.5 ETHICAL ISSUES AND THE INTERNET
 Promotion and purchase taking place simultaneously
 Risk of fraud
 Selling unethical product
 Internet and non-tourism organizations
 Disadvantages of certain sectors of the community
 Work-based use of the internet

6.2.6 OTHER ETHICAL ISSUES AND DIRECT MARKETING

 The keeping of personal information on customers on databases for
 direct marketing campaign
 The growing of telesales and the issue of unethical phone sales
campaign


6.2.7 CURRENT TREND (MINISTRY OF TOURISM AND CULTURE APRIL 2019)

 Last Minute Booking – 39% of bookings were made in a short period of

time.

 New Destination – 22% tourist bound for a new destination

 Ecological / Ecotourism – Form of tourism that concern on sustainable

development, reducing negative impact towards nature, profit sharing
with local communities and engaging local host in tourism.

 Educational and Volunteers – Student exchange, short term workshop,

summer program, Edu- tourism program, UNCHR relief mission.

 Skip the Line Services – Agent or authorise personnel that offer quick
service such as VIP fast lane, skip the queue and extra services that
require extra cost.

 New Cruise Tourism Destination – Melaka

 Mobile and online booking – People no longer use computers instead

of mobile application in their smart phone.

 Mobile Wallet Apps – Cashless are becoming necessary while traveling,

services providers should ready to receive any online payment as the
trend is now happening worldwide.

 Mobile Booking – 33% booking were made via booking apps.