Operational management of Tourism and Hospitality

Discuss about the Operational management of Tourism and Hospitality.

The strategic seven partnerships can help the company Voyagers Point operating in the tourism and partnership industry in several ways. The companies can acquire vivid experience by way of building strong alliances and develop complimentary competence set and shared equipment as well as expenses among many others. The partner with hard money can enter into a partnership with another with intellectual capital (Altinay et al., 2015). The management of Voyagers Point is also critical for the purpose of attainment of the objective of the business. This can help in generation of the revenue by means of the joint go-to-market advance and help in the overall survival of the business (Medlik, 2012). A truly strategic grouping can have a great bearing for the purpose of the attainment of the revenue growth targets of the firm Voyagers Point. Again, the strategic alliance of the company operating in the tourism industry can help in gaining competitive advantage as well as core competency. Therefore, learning alliance can be a prospective strategic competency alliance for Voyagers Point where the organizational goals can be shared with little chance of future competition.

In this case, the cultures of the alliances are also identical to enable procedures as well as methods. Again, the framework of the government of the alliances is also established to promote learning at different levels. Again, the partnership can also block a reasonable threat even when strategic partnership alliance falls short of establishing the competitive advantage (Becker, 2016). In addition to this, the future strategic alliances that is not fundamental for the attainment of business objective can be critical for the success of the business from the long-term perspective. Furthermore, the strategic alliance can be driven by intent to mitigate significant risk to the objective of the business. The relationship commitments in the joint ventures are also the closest to the strategic end of the range.

Activities to Develop and Nurture Partnership

• The management of the Voyagers Point need to follow the statutes that establish the fundamental regulations that can be essentially implemented to partnerships. This will help in controlling different aspects of the life of partnership unless different regulations are set out in a written document for partnership (Evans et al., 2012).
• The management of the Voyagers Point can also develop an appropriate common structure of the organization that includes the Steering committee, coordinating council, advisory or else supporting committee, task forces as well as action committee.
• Again, on a daily basis, the management of the company Voyagers Point can keep a track of the comparative financial strengths of the partners, style of management, philosophy as well as chemistry between the management of all the partners. Accordingly, the business activities of the corporation in the hotel and tourism industry can be modified (Morrison, 2013). 
• The obligations of each collaborate needs to be carried out in advance as well as in writing. Therefore, the written performance obligations of the partners can help in maintaining strong and relationship with the partners( Phillips & Moutinho, 2014).
• It is critical to both works out and at the same time record different contributions of the partners regarding cash, property as well as services to the business. The document plan and the updating the same on a daily basis can help in avoiding disagreements concerning the contributions of the partners and help in development of positive relationship.
• Allocation of profits, losses as well as draws also need to be allocated in proportion to the percentage interest of the partner ( Phillips & Moutinho, 2014).
• The management of the Voyagers Point can develop networking relationship and the organizations need to exchange information on a daily basis in a bid to help each other and to develop a better business.
• Again, the management of the Voyagers Point can co-ordinate relationship on a regular basis and modify the actions with the intention of providing better services to the constituent partners in addition to the sharing requisite information. Adding to co-ordination, the co-operation among the partner members can help in the sharing different resources and help in the coordination efforts (Gursoy et al., 2015).
• On a daily basis, the management of Voyagers Point need to implement the 6 R engagement strategy that comprises of the Recognition, Respect, Role, Relationship, Reward as well as Results.
• Lastly, the management of the Voyagers Point can examine and regularly evaluate different aspects of coalition that include leadership, operating regulations, division of labour, plans (both short as well as long term), activities, financing (current as well as planned) as well as visibility and support of the public (Gursoy et al., 2015).

Suppliers of the Firm Voyagers Point

Suppliers of the company “Voyagers Point” are:

Travel Agency (“Book my trip”)

Royal Caterers for catering Services and equipments

Miyar Adventures for special adventure trips

Food and beverage suppliers (Hopkins Services and “fruit and nuts” among many others) 

Processes of Dealing with the Suppliers

The management of the Voyagers Point can deal with the suppliers by taking into account the 6 R engagement (Recognition, Respect, Role, Relationship, Reward and Results) strategy.

The company Voyagers Point need to recognize the contributions of the suppliers and respect the culture, ideas, time as well as values of the suppliers. Again, the suppliers need to clearly define the role in the specific coalition that can make the suppliers valuable (Horner & Swarbrooke, 2016). The suppliers also want definite opportunity for establishment and construction of networks both professionally as well as personally to maintain relationship. Again, the suppliers also need to reward the suppliers and respond to different results that are essentially associated to outcomes.

Finance 

Sources of Finance

The operators of the start up business “Voyagers Point” can fund the operations of the business by acquiring fund from equity financing, debt financing and leases. The equity financing includes funds from the personal savings, home equity loans, venture capital and among many others. The equity financing also includes government grants, equity offerings, initial public offerings, warrants and many others. The management of the company can acquire debt financing from the friends, banks and commercial lenders, finance corporations, government programs as well as bonds. Again, the lease arrangement can be a potential source of finance (Becker, 2016).  

Process of Maximization of Revenue

The revenue of the company Voyagers Point can be maximized by way of product as well as service maximization and differentiation, low price strategy, adoption of the cost control and maintenance of share of the market. The revenue maximization process in the tourism and hospitality industry includes taking advantage of the different available pockets of demand for habitation (Altinay et al., 2015). The process of revenue management also includes adoption of strict guidelines for gaining competitive advantage and process of revenue maximization. 

Cost Control and Reduction Strategies

The management of Voyagers Point can maintain control and reduction strategies by maintenance of budget and plan and regular monitoring of the plan. The control mechanism also includes the reduction of the operational costs by evaluation of the purchasing process, review of the definite suppliers and analysis of the expenses (Altinay et al., 2015). Again, the cost control strategies also comprises of engagement of outside help that is hiring of independent professional firm to standardize and assess the overall current costs.

Budget of Projected Operation Costs and Income

The budget of the start up expenses for the company Voyagers Point:

The start-up expenses for the company Voyagers Point include items such as the legal expenses, stationary and miscellaneous expends, expends for brochures, insurance, rents, consultancy expense. Again, the expenses also include the research and development along with expenditures for expensed equipments. The anticipated start up expense for the business is expected to be $62500 (Refer to appendix 1 for the table showing the enumeration of the item wise start up expense).

Budget of Projected Operational Cost and Income for the First Year of Operation:

 The budgeted figure of the projected operational cost and income for the first year shows the expected sales of the business that is approximated to be around $751350. However, the direct cost of sales is expected to be $327500. Therefore, the total cost of sales is therefore amounts to be $327500. The gross margin percentage is expected to be 56.41%. The payroll expends is estimated to be $150750 and the sales and the marketing expense is enumerated to be $250200. The depreciation stands at 0 as it is the first year of operation. The other expense items include the utilities, insurance, rent and the payroll taxes. Therefore, the total operating expense is expected to amount to $ 458363. Thus, this replicates a negative Profit before interest and tax of ($34513). The interest expense is accordingly $12000. As a result, the anticipated net profit is enumerated to be negative that amounts to ($46513) (Refer to appendix 2 for the pro forma profit and loss statement for the company Voyagers Point).

References

Altinay, L., Paraskevas, A., & Jang, S. S. (2015). Planning research in hospitality and tourism. Routledge.

Becker, E. (2016). Overbooked: the exploding business of travel and tourism. Simon and Schuster.

Evans, N., Stonehouse, G., & Campbell, D. (2012). Strategic management for travel and tourism. Taylor & Francis.

Gursoy, D., Saayman, M., & Sotiriadis, M. D. (Eds.). (2015). Collaboration in tourism businesses and destinations: A handbook. Emerald Group Publishing.

Horner, S., & Swarbrooke, J. (2016). Consumer behaviour in tourism. Routledge.

Medlik, S. (2012). Dictionary of travel, tourism and hospitality. Routledge.

Morrison, A. M. (2013). Marketing and managing tourism destinations. Routledge.

Phillips, P., & Moutinho, L. (2014). Critical review of strategic planning research in hospitality and tourism. Annals of Tourism Research, 48, 96-120.

 

MyAssignmenthelp.co.uk is the most reliable and dependable academic writing service in UK. We provide specialized help for all subjects and topics under the sky, successfully delivering top-notch quality work on time without any compromise. Our expert team of experienced researchers, writers, academicians and editors has a record of providing high-quality assignment writing service. They can guide students to achieve academic success through a result-oriented approach.