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Principles of Operations Management essay
Manas

Obrienland Teacher, English as a foreign language STR 943

Universitas Negeri Surabaya The State University of Surabaya

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Title: Principles of Operations

Management

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Table of contents

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Introduction
In terms of maintaining the travel industry effectively, operation management plays a vital role in
managing various in-depth aspects. It also effectively provides the necessary skills and knowledge
to the organisation that can be efficiently beneficial for the entire business. The operations
management effectively covers various aspects of the tourism industry including marketing,
financing, justifying social responsibilities, mitigating consumer demands, management, and
maintaining the human workforce. The decision-making process and implementation of strategic
decisions are also a very big part of operations management. As a result, it plays an important role
in terms of managing the projected implementation in any kind of tourism business operation
(Muhammedrisaevna et al. 2020). This essay has effectively aimed to discover the importance of
operations management in the field of the tourism industry. The possible interconnection between
the management of operations in the tourism industry will be discussed. The importance of
operation management in tourism development and management will also be exposed properly.
Based on the operation management process, various strategic alignments and implementations
are generally made. On the other hand, the implementation of the process designing can effectively
benefit tourism regarding development and adoption. The standardisation process is also
effectively important in the process of designing that can effectively help the tourism sector (Foris
et al. 2020). Apart from that, this essay will also discuss the personalisation of customer experience
through this process of designing and other aspects.
Section 1
The Interplay between Operations Management as well as Tourism
Input-output analysis is a technique for examining incomes, economic value stated that and jobs
in an economy. Digital transformation, which incorporates digital technology into all elements of
a business, is very important in the tourist sector (Hinton and Richter, 2023). It involves virtual
reality experiences, internet booking tools, AI-powered travel suggestions, and online platforms
for destination promotion. This transition has had an impact at the corporate industry, along with
destination levels. It has also resulted in new contacts with visitors and changed market behaviour.
BCT may be used alongside other technologies such as IoT, big data, financial technology, cloud-
based computing, and AI. Input-output analysis serves as a tool for assessing the financial effect
of tourism. It quantifies the economic value added, revenues and job provision. It also looks at the
preexisting networks in an economy.

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It is analysis of input-output that turns out to be most applicable for identifying those reforms in
selected sectors or branches that should demonstrate effects on the macro economy. It can also be
applied to provide an estimation on the effect of tourism in the economy, using input-output
analysis and respective understandings about backward and forward links. Input-output analysis
underlies the Framework for National Accounts (SNA). All national governments present in the
globe have employed SNA to choose informative parameters such as GDP Capital formation, etc.
Multiple variables are accounted for, through input-output as well the indirect and direct effects
may be calculated using this analysis. This might help analyse potential revenue and in future
individuals can use them as a source of income.
In relation to financial motivation, servitization refers to a production of services and goods that
maximise consumer value hence may be financially motivated for manufactures. It has the ability
to change tourist products with low ownership costs, higher loyalty in customers consumers
predictable expenditure patterns, an advantageous competitive disadvantage and healthy margins.
It also requires an open innovation method, which is a transformation process of products to
ecosystems consisting of both internal and external information as well as solutions. Additionally,
servitization may also support manufacturing with several more revenue streams thereby
enhancing their overall company results (Adhikari and Bhattacharya, 2016). All in all, servitization
is one of the most important aspects for a firm to win over competitors in the tourist market.
Servitization is the business strategy which often can bring significant advantages towards the
tourist industry, including higher income level, better customer relationship matters; access to
more superior products or services in terms of quality that result in enhanced sales with even
greater consumer flexibility under firm competitiveness. Research has shown that servitization can
lead to large increases in income, have strong client relationships and better performing items
which are not installed, repaired or maintained. In addition, servitization allows clients to lower
their ownership costs and respond rapidly to changing needs while services permit enterprises not
only to survive but also to be ahead of the market. (Agarwal, and Mohan, 2021). IoT equipment
and sensors may create performance data, enabling organisations to provide value-added services.
This strategy allows businesses to provide services with added value over time, resulting in an
advantageous outcome for both consumers and enterprises.The global travel and tourism sector
has experienced growth for nine years before the COVID-19 pandemic, surpassing the global
economy. As the pandemic subsides, it is expected to grow by 5.8% annually between 2022 and

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2032, more than twice the global GDP. This sector ranks among the fastest-growing, trailing only
information and communication and financial services. The movement of people contributes to
globalisation and the growing connectedness of the world, alongside technology and capital.

Figure: (Tourism as a whole is one amongst the most rapidly increasing industry)
Source: (Hinton and Richter, 2023)

Section 2
Strategic Integration in Tourism
Harmonising operations strategy and business policy in tourism projects is crucial for success, as
it resembles a symphony with all essential aspects playing together. The overarching business
strategy sets the mood for such a venture; it clarifies where and why. It’s the conductor directing
towards one direction (Alonso and Ogle, 2008). On the other hand, however; operations strategy
serves as an instrumental arrangement whereby each section outlines how it contributes toward
that overall composition. Therefore, this implies that for every tourism venture there should be an
overall integration between the entire system ranging from customers’ experience through logistics
among others and in everything else so as to reflect on achieving business objectives.

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A consistent relationship between these strategies is important for efficacy and responsiveness.
For instance, if the strategic direction is to differentiate through customization of experience then
the operational strategy should focus on flexibility and it must have customer orientation as well.
Whatever operational decision that is made be it the customization of tour packages or even
improvements in digital interactions; all these decisions should reflect on the overall goal (Bozkurt,
2012). In addition, this synchronisation promotes quick response to market trends and changing
consumer tastes. In such a dynamic sector as tourism, the ability to harmoniously change
operations when strategies are altered guarantees responsiveness and profitability
In tourism, operational effectiveness requires balancing efficiency and client pleasure. These trade-
offs might result in choices of strategy that impact other elements of a company. A trade-off is
when someone makes a sacrifice in exchange for a service, product, as well as experience. Being
ecologically responsible, for example, may require sacrificing convenience, time, or money
(Bustinza Sánchez et al., 2015). The tourist experience consists of three major stages: pre-trip, on-
site, along with post-trip. Each stage influences the entire experience of travelling. For instance
consider a hotel chain adopting a high-end reservation system. The system improves operational
effectiveness by automating the process of booking but it tends to eliminate that personal touch,
boutique properties are noted for.
This differs from a cosy B&B where management might talk to the guests personally during
reservation and any large hotel chain’s automated system lacking personal contact may not be
warming engaging, hence affecting customer satisfaction. The problem with a trade-off between
punctuality and passenger experience becomes clear in the airline industry. The budget airlines
also focus on quick turnaround fare to ensure that they maximise the use of their fleets thus
minimising costs. This causes haste in boarding operations and the reduction of services offered
onboard. Although such steps enhance the operational effectiveness and keep ticket prices low,
they might impoverish passenger experience if comfort matters so much. As the following real-
world case shows, it reveals a delicate state where ‘operations’ and customer satisfaction games
bring back to businesses in tourism countless challenges (Godovykh and Tasci, 2020). Namely
ones that vary between trade off alternatives of efficiency with better client fulfilment.
Section 3
Importance of standardisation in enhancing tourist experience

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The process of standardisation can generally be depicted as a framework that should be followed
by any kind of organisation or industry. It should also be made sure that all the operations under
the framework should be monitored based on their performance by a set level of determination
(Hong et al. 2020). In this process, standards are generally made by the involvement of various
parties including regulators, consumers, managers, and various other involved personalities. In the
last few decades, the standardisation process in the tourism industry has effectively helped this
business field in development. It has been seen that there are various common needs in the tourism
industry based on both levels of national and international. Standardisation has effectively helped
the tourism sector obtain the perfect tools that effectively justify these needs. This has effectively
helped the tourism business to deliver a uniform service to all the customers. Apart from that, it
has also helped to effectively meet the determined requirement in terms of catering the possible
services to the consumers. In the recent period, the standardisation process in tourism heavily relies
on collecting quality certificates from private and public organisations (Chen et al. 2020). These
certificates are effectively given after achieving the established requirements with the help of the
operational excellence of the business. The management of quality is one of the main aspects that
has been implied by the standardisation process in the tourism industry. Various requirements
based on the level of standardisation effectively implemented various rules on the tourism
establishments. As a result, the establishments should effectively carry out these requirements in
terms of gaining a quality certificate from the standard organisation. The services provided by the
tourism industries and the associated operations have been effectively included in this
standardisation process which has changed the quality of products (Li and Wu, 2020). It effectively
maintains proper transparency between consumers and the company in terms of obtaining services
from that certain organisation.
Importance of process mapping in personalising customer experience
The inclusion of process mapping in any kind of business allows them to implement a systematic
approach that finds various comprehensive insights (Roggeveen and Rosengren, 2022). These
insights are generally used in maintaining the workflow of operations in any kind of business. In
terms of implementing various technological advances in the industry, process mapping is
efficiently required. In the process of interacting with a tourism industry customer effectively
exposes various touch points that can be effectively useful for the organisation to understand their
consumers. The process mapping effectively includes these touch points and adapts them to the

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operational process of the business (Rahimian et al. 2021). This customer-centric approach in the
allover business process effectively helps the organisation to build a great consumer experience.
On the other hand, through the evaluation of these insights, the tourism sector can effectively
implement various changes in the operational process that directly benefit the consumers. The
process of evaluating pain points effectively exposes the possible locations that created a bad effect
on the process of customer experience. The process mapping effectively evaluated these pain
points that effectively harm the overall quality of customer satisfaction. In this way, the tourism
industry effectively targets the possible pain points and mitigates them to maintain a good quality
in the customer experience. However, different tourists hold different natures of traveling practices
and preferences. Through the implementation of the process mapping tourism industries are
effectively capable of finding out the possible pleasure points of those customers in terms of
planning a travel (Hoyer et al. 2020). Considering these positive emotions and acting accordingly
effectively helps the tourism industry to implement a more customised customer experience, As a
result, the number of retaining customers increases resulting in proper growth and development of
the tourism company. On the other hand, personalised advertisements can also be catered to
different tourists based on their preference for travel obtained through the process mapping
technique.
Conclusion
This entire study has effectively described the importance and impact of operational management
in the field of the tourism industry. There is an impactful interrelation between the process of
operation management and the industry of tourism. On the other hand, various strategic alignments
have been effectively described in the field of the tourism industry based on the operation strategy
and different ventures of tourism. The trade-offs in the organisational performance have been
evaluated thoroughly. The inclusion of the standardisation process effectively impacted the entire
quality management process and catering the products to the consumers. The importance of
process design is huge in terms of approaching a more customer-centric business design.
Customised ads can also be tailored to specific travellers according to the process mapping
technique's findings about their preferred modes of transportation.

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References
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