Defining business strategy for development of travel and tourism industry

Abstract

Many studies conducted on Travel and Tourism industry consider tourism an economic phenomenon. Providing a customer-satisfaction-based analysis, this thesis deals with both economic and social aspects. Economic data on tourism are first analyzed. A social model is then developed by examining two different countries, Argentina and Turkey, as case studies. The strategic approach followed in studying these countries allows for the presentation of diverse images of Travel and Tourism industry in various countries requiring different core strategies. After studying Travel and Tourism industry in Argentina and Turkey, the thesis deals with performance factors and policies defined in tourism destination countries from competitiveness and customer satisfaction points of view. The competitiveness aspect is based on the Travel and Tourism Competitiveness Index, defined by World Economic Forum, and the customer satisfaction aspect is based on the proposed Travel and Tourism Customer Satisfaction Index. The index itself or the related measurement system is not the base of this thesis and the study is on the fundamentals of this index. The thesis provides a structured approach to the reasons for which different tourists may travel to a destination country. It proposes country action plans in order to increase responsiveness to tourists with different purposes of visit and provide them with satisfactory experiences. Strategic approach requires each country to first choose which groups of tourists would be optimal for targeting and then prepare to receive them. Such an approach would result in different outcomes based on time, availability of resources, and different prioritizations. Based on the case studies and further literature review, the concluding part recommends some general rules to follow that are closely related to "sustainability" in tourism development. These rules are considered a MUST at any time and in any competitive environment.