1st COURSE

COMPONENTS AND OPERATORS IN

THE TOURISM DEVELOPMENT

Models of organisation and management for the

tourism companies
A. Horizontal dimension of the organisational structure
B. Vertical dimension of the organisational structure

Reference:Stanciulescu Gabriela, State Olimpia – Tehnica

operatiunilor de turism intern si international (T.O.T.I.I),
Editura C.H. Beck, Bucuresti, 2013, Chapter 1
 1. Tourism attractions

Natural attractions – landscape, flora and fauna, on

one side and the anthropic modern or historical
attractions on the other side as for example
cathedrals, historical buildings, casinos or
entertainment parks;

Culture conveyed through language, music, folklore,

dances, gastronomy, etc.
 There are three
perspectives in
the classification
of tourism
attractions:

An organizational A cognitive
perspective (which perspective
An individual including the
perspective; takes into account
factors as for example perceptions and
the organisational the experiences of
capacity and the the tourists related
temporal and spatial to attractions.
capacity);
2. Accommodation

The commercial accommodation sector (hotels,

motels, holiday houses, camping) and

The individual accommodation sector private

permanent residencies used to host friends
and relatives (secondary residencies).
Camping and caravan tourism may be an intermediate
category where the tents or the caravans can be placed
in commercial camping places.

Collective accommodation as for example holiday

camps (associated with the social tourism policies).

Most of the destinations will offer a wide range of

accommodation types, depending on the nature of the
resort and the customers they address.
Lately it was observed that the tourists prefer the more flexible
and functional forms as the small motels owned by a single
person or the rented apartments for just a few nights
(condominium or condos) or the time-sharing system.
3. Facilities and local services

• Besides these basic services the

tourists demand a wide range of
auxiliary services: stores
specialised in selling tourism
products, as for example
souvenirs shops or sport articles
and others which offer a variety of
general products, as for example
pharmacies, food stores or
clothing stores.
• Other additional services
associated with the basic tourism
product are offered by:
restaurants, banks, medical
centres and
hairdresser’s/barber’s.
 Transport
infrastructure
(highways and
In order to sustain parching places,
the facilities and landing spaces,
services, an railways, ports);
adequte
Public utilities as
infrastructure is for example
needed. energy, water and
sewerage
services.

A great part of this infrastructure

4. Infrastructure is meant for the resident
population or for other needs
(agriculture), but it may also be
extended for tourism.

Except for the tax highways the infrastructure does

not generate direct incomes. For example, only a
few money can be produced from the sewerage or
the medical services, but if these services were not
provided, it could have an unwanted impact on the
development of the tourism.
 5. Transportation

• The progress in the field of transports has facilitated the access on new
markets and for different destinations. The development of the tourism
and of the transports has facilitated the access on new markets and for
different destinations. The development of the tourism and the transport
are two interdependent problems; the tourists need the transport services
that they pay to be safe, fast and comfortable.
• All these criteria have begun to be noticed only in the second half of the
nineteenth century.
• The beginning of the development of the spa resorts and of the seaside
resorts depended on the development of the railways. After the second
World War, the rapid growth of the number of car owners was the main
cause for the growth of the volume of individual tourism, and the
improvement of the aeronautic technology led to an explosion of the
number of international journeys.
• The tourism transports organised in the destination are also important.
Some of these may be oriented to the individual tourism (as for example
the a tour of the surroundings, gondolas or visiting the sights), while the
public transportation means (bus, subway) are used both by tourists and
residents. The connections between the long ways and the local transport
system are also critical (for example, the transit services from the airport
to the centre of the town or to the hotel).
 6. Investments

• Due to the importance and the variety of the

tourism sectors, it is difficult to quantify the
relative size and the importance of each
sector. Although the investments in each
sector may vary from case to case, the
accommodation and the infrastructure
require the highest expenses.

Specific investments, which are

The investments in the
tourism industry are
capital consuming.
The tourism industry is
developing through:
directly connected to the
development of the technical-material
basis of the basic tourism activity
(accommodation, food, transport,
entertainment etc.);
Non-specific investments, which
are meant for the development of
the general technical and social
infrastructure which competes in
pointing out the tourism objectives.
 The Main Tourism Operators

In USA 99% Attention

Attention is
is
*

*
frequently
a. Private sector
companies frequently
drawn
drawn byby the
the
of the larger
larger and
and
tourism more
more visible
visible
industry are operators
operators andand
classified as agencies,
agencies, that
that
are
are the
the
being small multinational
multinational
business, hotel
hotel chains
chains
although and
and the
the airlines
airlines
they only completed
completed by by a
a
multitude
multitude ofof
have 10% of
operators
operators on on a
a
the 2 small
small and
and
millions medium scale,
medium scale,
employed in especially
especially inin
tourism the
the field
field of
of
entertainment
entertainment
(Heeley). or
or additional
additional
services.
services.

The growth of the large companies was due to:

Technological Competitive nature of

Growth trend in Scale
Profit; evolution;
many competitive tourism
markets and destinations; the market share; economies.
The growth of the number of operations and concentration in the
industry has emerged as a consequence of the horizontal and
vertical integrations.

The horizontal integration The vertical integration brings

implies the expansion in a
sector of industry, as for
example the development of
the hotel chains or of the
networks by opening new
routes.
together in an organisation
different sector of the industry,
as for example when a
company buys hotels or when
a tour-operator opens retain
travel agencies.

Besides this direct involvement in the tourism

operations, the private sector may also supply the
necessary capital for the development process (market
research, architectural design, construction, etc.) and may
also provide a great part of the capital necessary for the
tourism investments.
 The public sector is directly or indirectly involved in
b. Public
tourism due tosector
the following facts: economic, social-
cultural, environmental, political, fiscal, etc.

The economic considerations of the involvement of the public sector

are:

The The The Incentive

The Regio Econo growth of growth s for the
improvem growth
nal mic the
of the non-
ent of the incomes of
incomes
of new tourism
balance of develo diversif the
working
population of the investme
payments; pment; ication; places nts.
; state;
Soci The Due

*
al tot
consi
res
derat pon he
ions sibil fact
– the
ity that
state touri
has for
a the sm
gene invo
prot
ral lves
liabili ecti
the
ty for on mov
the and
prote eme
ction
con nt of
of serv the
the atio peo
econ n of
omic ple
and the fro
socia phy m
l sica one
welfa
re of l cou
the and ntry
indivi cult to
dual, anot
as
ural
envi her,
for
exa ron the
mple gov
me
the ern
regul nt,
men
ation goe
s
ts
s to may
regar
ding the enc
healt publ our
h ic age
and
the
sect the
legisl or, dev
ation alth elop
for oug men
the
cons h t of
umer one the
prote may touri
ction sm
or by say
mini that in
mizin this ord
g the
res er
nega to
tive pon
reac
socia sibil
l h
ity
impa som
ct of is e
the bot futu
touri h
sm
re
or of
indi polit
the vidu ical
devel al obje
opm
ent
and ctiv
of coll es.
other ecti
fields ve.
.
 The most direct and The fiscal
explicit manifestation governmental policies
of the central may also encourage
Government’s or slow down the
involvement in the development of the
development of the tourism. The
tourism is the National governments may set
Tourism
the legal limits for the
Administration, which
size of the foreign
is defined by the
investments and the
World Tourism
repatriation of money
Organisation (WTO)
as: “the authority in
or they may
the central state encourage or limit the
administration or other investments in
official organisation, tourism with the help
responsible for the of deductions,
development of the incentives or taxes or
tourism on a national they can lead them to
level”. certain locations.
 State may also play a key role as the owner of the land or as a manager of the
resources, especially in areas of interest for the tourists and for the development
of tourism, as for example the coast areas and the high areas which are under
public property.

State is also “required” to play the role of a coordinator in providing the tourism
attractions and facilities for the ones that travel (these should correspond to the needs
of the tourists, and the state has to assure that these facilities will be available when
and where they are requested and that they will meet the required standards).

The responsibility for the land which is situated on a public field may go
to some inferior administrative bodies of the governments, as for
example the regions, districts and municipalities.
 Economic operators from tourism

According to the nature of the activity, the economic operators from tourism may fall into two
distinct groups:

Intermediaries between economic operators who

Direct tourism service are direct tourism service providers and tourists
(their purpose is to promote and trade tourism
providers; arrangements in the country and abroad).
 Direct providers of tourism services

In 1991 WTO has made a standard classification according to which

the main providers of tourism services (direct providers) are service
providers for teh following:

Tourism Additional services

Hotels and (financial-banking,
transport
(railway, meals in Treatment Entertainme insurance, visa,
booking-renting,
highway, airway, towns, in tourism nt: sports, research, education,
consultancy, design,
naval, including resorts or and spa cultural, tourism constructions,
tje tourism guard and security,
transport on tourism resorts; fun; professional
associations, creating
cable); routes; advertising materials).
 The economic operators having a partial tourism activity are:

Gas, electricity supply companies, construction, textiles,

industrial, agricultural, financial-banking, pharmaceutical, urban
transport, telecommunication companies and other as well as
some restaurants, cultural, sports and entertainment units which
provide services both for tourists and for the residents.

The
The tourism
tourism agents
agents which
which
are
are intermediaries
intermediaries cancan
be classified into:
be classified into:

Mixed
Mixed agents
agents of
of tour-operators
tour-operators andand
direct
direct sales
sales to
to tourists
tourists of
of their
their own
own
arrangements or oft
arrangements or oft he he
arrangements
arrangements of of the
the tour-
tour-
operators.
operators.

Tourism agencies selling

Tour-operators specialised
the tourism arrangements only in organising tourism
organised by tour-
arrangements;
operators;
 In Romania, according to the Ordinance no. 107/1999 for the
protection of the tourists, offering, trading, selling tourism
services and packages as well as creating tourism products may
be accomplished only by the tourism operators authorized by the
Ministry of Tourism, owning of a tourism licence or of a
classification certificate, according to each case.

●
The persons who are providing
the operative management of a
tourism agency must have a
tourism licence.

In all the European countries, the

tourism agencies must own a licence.
 A. The Horizontal Dimension of the Organisational Structure
A. The Horizontal Dimension of the Organisational Structure

The organisational structure usually contains the following elements:

a. The production structure: b. The functional structure:

The horizontal dimension of the organisational structure involves the classification in departments of the jobs which can be grouped in structures:

Autonomous
Functional; Hybrid; Matrix.
units;
 a. The Functional Organisational Structure

Major advantage – Main disadvantage –

This structure efficiency and scale the difficulty of
groups similar economies which accomplishing
positions in order come from the communication,
to produce and organisation of the coordination and
sell a service. specialists for each cooperation between
function; the departments.
 b. Functional organisational structure for a small
restaurant

Owner / Manager

Chef Barman Receptionist/cashier

Functional organisational structure of the Scandic AB Group

BOARD OF TRUSTEES

Hotel SCANDIC AB
 Organisational structure based on autonomous units

A large organisation with a certain Advantage – a better

functional structure is “broken” into coordination between the
smaller companies, each of these
functions, and the
Disadvantage – the
having their own set of functional or
operational activities, as for example autonomous units, and a reduction of the
the own department for
accommodation or their own intense concentration on profit due to the
marketing department. Such an product, client or market, specialisation on
organisation is adopted by the large,
leading thus to a faster
Transnational enterprises which act
in an unstable and heterogeneous. answer to the potential autonomous units.
Example: Hilton International. dangers
 The Hybrid Organisational Structure

It is typical for the Advantage – it takes Disadvantage – high

This structure the advantages of the probability for a
incorporates large companies concentration and conflict between the
autonomous units which are coordination of the leaders of the
autonomous units and
but also functional confronting with it has functional
independent units
centralised an uncertain, departments on a and the managers of
departments which external and central level as for the functional
example the research- structures which are
can be found in heterogeneous
development on the top of the
the headquarters. environment. department. company.
 Organisational chart for SAS International Hotels (Belgium)

Vice-president Vice-president Vice-president Vice-president

Norway region Sweden region Denmark Far-East
region
 Matrix organisational structure

This structure combines the functional structure with the

one based on autonomous units. It is conceived in order to
determine the collaboration between the product managers
and the functional managers:

Function Functional mangers

Product Production Manager Marketing
managers manager manager
Manager 1 2 3
Hotel A

Manager 4 5 6
Hotel B

Manager 7 8 9
Hotel C
The matrix organisational structure of the group Mandarin Oriental Hotel

Executive Manager

Development Finances Marketing Technical Department

Hong Kong

Singapore
Operations
Tokyo

Londra
Personnel
Los Angeles

New York Hotels

Sydney

Frankfurt
B. The Vertical Dimension of the Organisational
Structure
• This dimension implies the total amount of contacts
between the subdivisions of the organisational
structure (departments, functions).
• The vertical lines represent the authority relations.

I. Authority relations
(hierarchical, functional,
general staff)

II. Cooperation relations

According to their content the
relations are:
III. Control relation

IV. Spontaneous relations

(from the informal structure)
 SUMMARY QUESTIONS

1. What is the definition of the hospitality industry

according to the World Tourism Organization?
2. What are the main features of the Hotel Industry?
3. What are the specific activities of the accommodation
service?
4. What are the characteristics of restauration industry?
5. Present and comment the elements that define the food
service in relation to tourism activity.