Hospitality and Tourism Fundamentals

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Generic strategies

Generic strategies are the building blocks of corporate strategy. However, such a structured approach to crafting business strategy is still in its infancy. About 70 years ago the governing argument of the industrial organization (IO) approach claimed that management could not influence industry conditions or its own performance (Mason, 1939), making business strategy essentially irrelevant because it is constrained or controlled by industry structural forces.

Game theory

Game theory can be a valuable tool for senior executives of hospitality organizations in their strategy process. This is because it offers mathematical techniques for problem solving and competitive decision making through the use of model buildings (Neumann & Morgenstern, 1944). Game theory which is often referred to as ‘the prisoner’s dilemma’ can be used in hospitality organizations particularly in decision making, handling conflicts, competition, cooperation, joint ventures, and strategic alliances between their organization and other companies.


Festivals are one of the most frequent and universal forms of cultural celebration, and while many are religious or traditional with long histories, the majority have been created in recent decades. Parades and processions are common elements in festivals, but those that are held on their own also display many celebratory elements. Many of the other major types of events, especially art and entertainment, are frequently found within or as the theme of festivals, and sport and recreational events also commonly add festive elements.

Expert systems

Expert systems, or knowledge based systems, are a special type of decision support systems (DSS) that uses knowledge of experts as input information. Essentially, these software applications mimic the logic of the decision processes of human experts. They offer software tools to incorporate inferential and deductive reasoning and heuristic manipulation of data. Expert systems encapsulate and process causal rules that have often been derived inductively from previous experimentation, market research, or experience.

Experience economy

The ‘experience economy’ was proposed by Pine and Gilmore (1999). The service sector is becoming commoditized. For example, long distance telephone service has moved from being marketed as a service to being viewed and purchased by consumers as a commodity. Little differentiation exists between long distance providers, so telephone companies market their product almost exclusively on the basis of cost, and customers regularly switch when another competitor offers a better price. The challenge for marketers is ‘why would customers pay increasing amounts for decreasing levels of service?

Environmental scanning

Environmental scanning (ES) is an integral part of the strategic management process. It entails a constant examination of the external environment to detect changes that may affect the organization either directly or indirectly. Okumus (2004) defines ES as the employment of systematic methods by an organization to monitor, gather information, and forecast external forces and developments not under the direct control of the organization.

Environmental management system

An increasing number of hotels have formalized their best environmental practices by means of an EMS. With an EMS, an organization can manage environmental risks and opportunities more systematically and efficiently. Although EMSs can be different for different types of organizations, depending on their size, products, and the nature of their business, etc., common components include the identification of environmental impact and legal obligations, the development of a plan for management and improvement, the assignment of responsibilities, and the monitoring of performance.

Environmental management in hotels

Environmental management refers to the management of an organization in such a way as to minimize the impact of that organization on the environment. Conceptually, environ mental management is related to the principles and practices of sustainability. A sustainable organization may be defined as one that can satisfy its own needs, without diminishing the opportunities available for future generations in respect of the economic, ecological, and social aspects of that organization and its environment.