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Public Private Partnership Experiences II. How to ensure Quality Standards of Services

This article discusses the importance of quality standards in the tourism industry and how public-private partnerships can help ensure these standards. It explores the roles and responsibilities of both the public and private sectors in maintaining quality in tourism services.

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Public Private Partnership Experiences II. How to ensure Quality Standards of Services

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  1. Public Private Partnership ExperiencesII. How to ensure Quality Standards of Services GERD HESSELMANN CHAIRMAN HESSELMANN & ASSOCIATES TOURISM CONSULTING & SERVICES Moscow March 19, 2012

  2. Tourism Background Gerd Hesselmann • Restaurant Sector • Hotel Sector • Tour Operator (ADAC Reise) • Travel Agent (abr /DER) • Chairman Amadeus TAAB • President Sector Association (DRV) • Member DZT Board of Directors • Vice President ECTAA • Founding Member & 1.Treasurer BTW • Since 2001 independent Tourism Consultant • Institution Building on the public and private sectors, Public Private Partnership (PPP) • Destination Development (Product Policy) • Online Destination Marketing (Director Foreign Relation of Unister, the leading online Gateway to German Travel Demand) • Speaker and Moderator at international Tourism Conferences

  3. Let us create a common understanding • of tourism • of external and internal influences • of the context between marketing & quality • of responsibilities on the tourism sector • of P P P for the development of quality standards • of goals of hotel classification and • of decisions on the way to quality standards

  4. In which environment does tourism take place? Tourism infrastructure (Private sector) Accommodation Restaurants Transportation Events/Information Tourism offer Human resources Private Sector Institutions Natural resources Cultural sites Tourism infrastructure (Public sector) Visitor information Destination Promotion Legal framework Political stability Public sector institutions Tourism = Business Private Sector Companies Revenues Profit Public Sector Institutions Tax income GDP Jobs Export Joint Goal: Sustainable growth Source Markets • Europe & Overseas • Awareness and image of the destination • Business partners • Domestic • Awareness and image of regions • Business partners

  5. Reasons to travel Leisure: ► Main holiday trip (>5 days) (Roundtrips nature, Culture / sun & beach, relaxation) ► Back to the roots ► Events and other … Pilgrimage Health Tourism Business travel: ► Individuals ► Conferences / Fairs ► Incentives Visit of relatives and friends Inbound Travel Domestic Travel Outbound Travel

  6. Tourism Revenues = Return on Investment Tourism Infrastructure (Product Quality) Tourism Revenues Investment Tourism Product (Quality) • Private Sector • Accommodation • Transportation • Restaurants etc. • Events • ..... • ..... • 90 – 95% • Public Sector • Museums • Historical Sites • Public Transportation • Tourism Tax • Fees • ..... • 5 – 10% Destination Marketing NTO / RTO / LTO Company Product Promotion • Public Services • Security • Human Resource Development Staff Training (Quality) Company Tax Staff Salaries Tax State Budget Goods / Supplier Company Tax Budget for Tourism Services Company Tax Profit Tourism Companies

  7. External & Internal Influences on Tourism Development ExternalInfluences • Consumer • Trends • Expec-tations Competitive Destination • Insecurities • Healthrisks • Crime • Terror Technical Environment IT / Transport • Environment • Climate change • Natural Environment • Economic & Financial Crisis Geopolitical Environment Development from today 2013 2015 2014 Marketing Mix Policies • Political Environment • National /Federal • Regional • Local PPP of Institutions Price Tourism Product / Services Communication / Promotion Distribution / Sales Internal Influences

  8. Marketing = Customer orientation Market Research * Consumer Trends * Visitor expectation & experiences * Competitive destinations Product Policy Price Policy Potential Travelers in Source Markets Communication Policy Distribution Policy

  9. Criteria for the Competitiveness of a Destination • Diversity of service • Quality of service • Ambience / atmosphere • Experiences & relations Tourism servicesoffered VALUE Tourism Services offered + Feeling & sensations Feeling & sensations EFFORT Price Price Other efforts & deterrents Othersefforts & deterents + • Cost of the product • Payment efforts • Inconveniences • Insecurities

  10. Components of the TourismProduct „Destination“ • People • Awareness of the population • Awareness of the public sector • Quality of human resources • Creativity of the tourism industry Diversity and quality of services Well feeling • Tourism Infrastructure • Accommodation • Transportation • Cultural sites / events • Natural resources / environment • Accessibility, Signposting Diversity of services, Product Quality, Well feeling • Tourist Information • Printed material • Electronic media • Tourist Information Center Security Product Quality Tourism Experience

  11. Who is responsible for what? (1)

  12. Who is responsible for what? (2)

  13. horizontal & vertical coordination Public Sector Tourism Institutions Interministerial Tourism Council Ministry in Charge of Tourism Mo Finance Mo Foreign Affairs Mo Interior (Department of immigration) Mo Justice (Autorney Generals) Tourism regions • Mo Transportation / regional Development • M in charge of Health • etc. Districts Municipalities

  14. Sectors of the Tourism Industry • Attraction sector • Theme parks • Museums & galleries • National parks/Wildlife parks • Heritage sites & centres • Conference/exhibition centres • Sports/activity centres • Theme retail/leisure/entertainment centres • Festivals and events • Discos • Accommodation sector • Hotels/motels • Guest houses/bed & breakfast • Farmhouses • Apartments/villas/flats/cottages • Condominiums/time share resorts • Vacation villages/holidaycentres • Static and touring caravan/camping sites • Marinas Joint Private Sector Association • Food & Beverages • Restaurants • Fastfood • Kiosks • Cafes/Bars Transport sector ·Airlines ·Shipping lines/ferries ·Railways ·Bus/coach operators ·Car rental operators • Travel organisers’ sector • Tour operators • Tour wholesalers/brokers • Retail travel agents • Conference organisers • Booking agencies (e.g. accommodations) • Incentive travel organisers • Other sectors • Tour Guides • souvenir manufacturer

  15. Private Sector Tourism Institutionshorizontal & vertical coordination Umbrella Association Accomo-dation Sector Attraction Sector Transport Sector Food & Beverages Travel organisers‘ Sector Other sectors Tourism regions Districts Municipalities

  16. Prerequisites for PPP • FunctioningTourismInstitutions • on thepublicsectorand • on the private sector • Toacceptresponsibilitiesandtotakerespectiveactions • The will tocooperatewithineachsectorandbetweenthepublicandthe private sector

  17. Institutions involved in Hotel Classification Public Sector (federal / regional / local levels) • Ministry of health • Ministry of environment • Ministry of interior (safety) • Ministry of labor (education, training, languages) prerequisite for managers • Hotel & Restaurant Association • Association of Incoming Agents • Jointcommitees Private Sector (federal / regional / local levels) PPP Institution

  18. Goalsof updating Classification System • To meet consumer trends & demand • To ensure minimum product quality and further more to raise quality standards • To ensure authenticity, preserve diversity, avoid uniformity • To get consumer trust in the tourism offer of Russia • Basis for quality control • Basis for hotel signs • To get a marketing message • To offer a guideline for the planning of new facilities

  19. Basic Decisions regarding Hotel Classification • Which types of accommodation should be included • Establishing specific types such as business, family, sports hotels, hunting lodges etc. • Should categorization be mandatory for hotels (only if successfully rated the hotel can use a hotel sign) • Hotel classification public sector or private sector based. • Mandatory workshop participation prior application (Understanding of the tourism industry / the sense of classification / application of formats / cooperation needs within the sector) • Self check as first step to full rating.

  20. Some Aspects to watch • Updating hotel classification system at least every 5 years – adoption of trends • Hotel classification system has to be flexible and easy to apply • Change of investment priorities not only into hardware but also into software (quality of staff = services) • For big hotel groups star rating is no marketing tool, but for others it is very important • Updating of the classification system might cause investments into the hotel

  21. Thankyouforyour Attention Gerd Hesselmann HESSELMANN & ASSOCIATES TOURISM Consulting & Services Goethestr. 2-3 / Aufgang B D-10623 Berlin Tel.: +49 (0)30 31164555 / Fax:: +49 (0)30 31164557 Mobil: +49 (0)172 3227457 e-Mail: g_hesselmann@hesselmann-associates.com www.hesselmann-associates.com

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