Stakeholder Relationship Management Approach

Question: Discuss about the Stakeholder Relationship Management Approach. Answer: Introduction: In his review on the management of stakeholder relationship as risk approaches in tourism and hospitality, Nicola (2016) denotes that tourism and hotel industry seems to be reluctant in the profound implementation as well as structured crisis concepts of risk management. Responses to risks and crisis situations are often ad-hoc and intuitive while the rate of the worldwide environment, technological, social, as well as other crises, are perceived to be a constant increase. However, nothing much tends to be done except the instant broadcasting by the internet and media in the cases of occurrences. The study as well points out that with competition in almost all categories, destination, and conceptions within the industry, the management of most hotels often fail to show stakeholder trustworthiness that can enable then gain competitive advantage within the industry. In his study, Nocola (2016) aimed at evaluating the integrated crisis management approaches and models adopted within the hotel industry and the derivation of stakeholder relationship approaches in managing the crisis. It was also aimed at evaluating the compilation of various underlying forms set for the individualization of integrated models of crisis management, an objective that would help in developing a content interview certificate scheme on experts that can be applied in managing other forms of crises within the industry. The study conducted a semi-structured interview on experts within the industry focusing on hotel and tourism managers to determine the status quo of the applied crisis management approaches. Questionnaires were also used in three groups of stakeholders i.e. hotel guests, internal hotel stakeholders, and destination managers to evaluate the stakeholder demands and perceptions towards crisis approaches. The study also adopted both qualitative and quantitative data analysis with subsequent data interpretation methods so as to effectively develop an integrated approach based on the results of the collected data. In the end, Nicole (2016) concluded that both empirical approaches and literature review on contemporary issues related to crises and risks influencing the global hotel and tourism industry lacks scientific research taking into account the approach of stakeholder relationship management. Most of the hotels and tourism sectors globally are only willing to invest in the implementation approaches after the occurrences of a crisis while little care is given towards prevention measures. However, varieties of aspects seem indispensable in the modern hotel management indicating that the potential knowledge acquisition is promising. In their study, Luo, Wan, and Liang (2016) focused on the risk management of the supply chain within the tourism industry. According to the study, the high level of the supply chain management complexities, as well as the inherent risks existing in the demand and supply of resources, are understood to be the primary limiting factors that affect the tourism and hotel industries from achieving high performance in the global market. Despite the fact that emerging literature on risk management in tourism and hotel industry or its equivalent exists, there is uneven progress in the area since most research tend to focus on traditional single business risk perspectives of management. However, they do not consider the entire range of various suppliers involved in the consumption or provision of tourism products. Therefore, Luo, Wan, and Liang (2016) apply a risk management theory to new research perspectives on tourism and supply chain management as an approach to solving the related contemp orary risks and crises within the industry. The study hence develops a design framework of a multi-agent based decision system of support based on the related theories and techniques in managing disruptions as well as mitigating risks in tourism and supply chain. Similar to any other industry, the hotel and tourism industry is globally susceptible to risks and crises. These risks and crises manifest themselves in different forms that can cause a disastrous consequence on the effective performance of the industry. For instance, Luo, Wan, and Liang (2016) denote that supply chain risks are implemented in some industries while drawing a widespread research attention within the tourism and hotel industry as well. In their study, Luo, Wan, and Liang (2016) focused on reviewing the different literature on the general concept of supply chain risk management in tourism and finally propose a multi-agent based framework that is based on the foundation of effective collaborative risk management. They concluded that there is a need for the adoption of risk management systems on the supply chain that is focused on utilizing previous successful cases of risk management. The system should also be focused on the utilization of expert knowledge and experience in achieving the advantages of human-machine interaction in solving supply chain management issues within the global hotel and tourism management industry. In their study, Lam and Voellm (2016) denote that Brexit for several years has become a household name in the European countries and beyond as being the withdrawal of the United Kingdom out of the European Union. At the point of decision-making, the European were required to vote on whether to stay or leave the Union and the result was its exit as 51.9% supported the exit while only 48.1% of the voters desired that the UK remains in the European Union. The study also denotes that the move has affected different industries within the UK both positively and negatively with most industries such as the hotel and tourism facing a drastic negative risk and impacts on their businesses. The effects now require the UK to take action on major changes as a result of the significant amount of uncertainty surrounding the prowess of its future economies in its major industries such as the manufacturing, transport, health, and tourism. According to the study, tourism and hotel industry is very important for the welfare of the economy but it outbound or inbounds travel. With the existence of Brexit, the tourism sector has since experienced 13.9% decrease in effectiveness and performance within the UK, a sign of insecurity and worry by investors and tourists on the related risks and uncertainties of the economy. For instance, Asia is exerting a gravitational pull on the industry by constantly attracting travelers from the international arena while tourism sector is evolving in both leisure and corporate segments. The resulting impact is that many international destinations are establishing their share in the British outbound leisure market as they develop respective economies and tourism for foreigners in capturing both business and leisure demands. Instead, the UK economies are depreciating and facing a global crisis of foreign travelers due to changes in industrial policies as well as investors regulations hence ca using a crisis in the smooth flow of tourism activities. While still in the Union, the UK enjoyed a strong spending power overseas while the strength of the British Pound opened up opportunities to a broader part of foreign travel and activities that boosted the tourism and hotel industry in Europe. However, exit from the union resulted in a devolution process that reduced the economic strength of the currency and reduced the lifestyle maintenance for many target customers within the hotel and tourism industry. Lam and Voellm point out that an increase in price sensitivity has caused a slow picking-up process for the tourism industry hence affecting even the general economies of scale in the global arena as hotel and tourism industry unites the global business and foreign investment. In their study, Liu et al. (2016) point out that tourism is among the most vulnerable and susceptible industries across the globe. These risks and vulnerabilities can threaten and affect or even damage the reputation of the attraction or destinations thus negatively affecting the perception of consumers. The increase in the number of risks and crises in the tourism and hotel sector has resulted in the growth of literature and research surrounding the topic. With technological advancements, the social media has been used in disseminating crisis-related information while engaging stakeholders in practices of crisis management as well as communicating with customers. As a result, Liu et al. (2016) focus their studies on the growing infestation of bed bugs in the US hotel sectors and how the crisis is addressed in the social media. The study points out that New York City is among the top tourism destinations that are overwhelmed by the infestation of bed bugs that have emerged a major crisis to the hospitality industry regardless of the star ratings of the hotels, their locations, or even ranking. Given the growing problem of bed bug infestation, the study focused on understanding how the social media framed the crisis by customers and travelers as well as the impacts it had on the hospitality experience in the tourism sector. The study identified four general narrative frames as well as 14 sub-frames in the analysis that confirmed that bed bugs had become a real and growing concern for customers. As a result, the local customers and foreign travelers are using the social media platforms to share and report their bed bug experiences. From the opinions and experiences discussed, the hotel and tourism stakeholders and managers organize on the best methods of addressing the issue with a quick response to a concern that when not addressed can destroy the reputation and general performance of the industry. References Nicola, M 2016, Crisis management within the hotel industry A stakeholder relationship management approach Tourism and Hospitality Research, 7 (2006), 2738, viewed 2 June 2016 Luo, B, Wan, L, Liang, L 2016, 'A Multi-Agent-Based Research on Tourism Supply Chain Risk Management,'Journal Of Advanced Manufacturing Systems, 13, 3, pp. 133-153, Business Source Premier, EBSCOhost, viewed 22 December 2016. Lam, L, Voellm, D 2016, 'Brexit and Travel: The risks and crises of a tourism downturn in Asia,'HVS Global Hospitality Report, pp. 1-5, Business Source Premier, EBSCOhost, viewed 22 December 2016. Liu, B, Lori, P, Donohoe, H (2016), New York City Bed Bug Crisis as Framed by Tourists on Tripadvisor NewYork Times Journal on Tourism Analysis, 20(2)DOI: 10.3727/108354215X14265319207597, Retrieved from https://www.researchgate.net/publication/278851517_New_York_City_Bed_Bug_Crisis_as_Framed_by_Tourists_on_Tripadvisor