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BENCHMARKING IN TOURISM

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on 24 December 2013

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Transcript of BENCHMARKING IN TOURISM

BENCHMARKING IN TOURISM
Table of content
INTRODUCTION.
BACKGROUND OF BM.
DEFINITION OF BENCHMARKING.
IN WHICH MARKET CAN BENCHMARKING BE USED.
TYPES OF BENCHMARKING.
WHAT STAGES DOES BENCHMARKING INVOLVE?
HOW CAN BENCHMARKING BE USED IN TOURISM IDUSTRIES?
CASE STUDY.
CONCLUSION.
INTRDUCTION
Best Practices Benchmarking is a powerful tool to gain competitive insight and provides “evidence-based” views of performance throughout product and organization lifecycles.

It seeks to provide tourism managers with a better understanding of how benchmarking can be applied for evaluation efforts in tourism organizations and attempts to clarify how this specific practice may lead to an improved performance and increased organizational learning.
WHAT STEPS DOES BENCHMARKING INVOLVE?
BACKGROUND
Benchmarking is a management approach to identify Who is best? and What makes them so successful? It has experienced increased popularity, both by manufacturing and service companies.

In management science, benchmarking is usually positioned as being an extension of an existing total quality program, and as being a way in which to establish new, more relevant and efficient standards of performance.
BENCHMARKING CAN BE DEFINED AS:
a systematic procedure of comparative measurement with the objective to achieve continuous improvement.

The great success of benchmarking in recent years is probably related to its inherent characteristic of being a knowledge-sharing and motivational process.

It encourages managers and their staff to think in terms of performance measures and practices to increase profitability.
Done by:
Noha & Yara

Different types of bemchmarking:
External benchmarking
Interal benchmarking
In which areas can benchmarking be used?
Benchmarking is currently used in several business areas and particularly in quality management.

The objective of benchmarking is the promotion of process or product improvement by the identification of a recognized standard and of the related actions required.

Despite the wide use of benchmarking techniques in quality, marketing, finance, technology innovation in the manufacturing industry, benchmarking is still a vague concept in the service industry, particularly in the tourism field.
Internal benchmarking
Internal benchmarking means that units, branches, divisions, or locations compare themselves with other units, etc. in the same organization.

It can also help company managers in identifying their strengths, weaknesses, opportunities, and threats (SWOT) and therefore in improving economic efficiency of the company.
External benchmarking
In external benchmarking, organizations compare themselves with other organizations, such as:

rival firms in the same industry (‘competitive benchmarking’).
non-competing firms in another industry (‘best-in-class’ or ‘best-practice benchmarking’).
or aggregated data comprising a specific sector or industry (‘sector benchmarking’).
Benchmarking Process Steps:
to be successful benchmarking programs.

Her diagram comprises twelve steps arranged in four stages:
Stage 1: Planning
1. Select the subject area.

2. Define the process.

3. Identify potential partners.

4. Identify data sources and select appropriate collection method.
Stage 2: Analysis
5. Collect data and select partners.

6. Determine the gap compared to benchmark.

7. Establish process differences.

8. Target future performance.
Stage 3: Action
9. Communicate to management and others.

10. Adjust goal and develop improvement plan.

11. Implement.
Stage 4: Review
12. Review progress and calibrate.

Although the fourth stage is a final review, constant monitoring and feedback is suggested to take place throughout the whole process.
How can Benchmarking be used in tourism idustries?
Benchmarking seems to be a suitable tool for all types of tourism organizations; however, its current use is often restricted to profit-oriented tourism businesses.

This section seeks to expand the notion of benchmarking to other areas within tourism and provides case studies for benchmarking in different types of tourism organizations.
1. Benchmarking of profit-oriented tourism businesses:
• Accommodation suppliers (Hotels, motels, bed and breakfast places, pensions, camping sites, etc.).

• Restaurants (all forms).

• Tour operators and travel agencies.

• Airlines.

• Other profit-oriented tourism service provider (e.g. amusement parks, diving schools etc.).
2. Benchmarking of non-profit oriented tourism businesses/organizations:
• National or regional tourist boards/organizations.

• Attractions operated by public authorities or other forms of non-profit oriented businesses (e.g. museums, galleries, theatres, operas, etc.).
3. Destination Benchmarking
• National benchmarking.

• Regional benchmarking.

• Local (rural or urban) benchmarking.


benchmarking in tourism can be classified into:
The overwhelming number of benchmarking initiatives can be found among
profit-oriented tourism businesses
, particularly in the hospitality sector.

Benchmarking in all other tourism areas has been
very limited
in terms of number and technical quality.

CONCLUSION
Conclusion of case study (1):
This study aims to measure the efficiency of the hotels operating in GM's performance consequently; this study will embark with the following objectives:

• To identify the best practices for hotels with regards to efficiency.
• To determine the factors contributing to the efficiency of the hotel.

Conclusion of case study (2):
This study is a based tool developed for winery cellar doors and tasting rooms to track and benchmark their wine tourism performance against other cellar doors in a selected region, state or country.
Conclusion of case study (3):
This benchmarking process allows hotel owners, management companies and operators to view an energy usage profile of their hotels.

Each year, the building can be benchmarked to see whether or not upgrades had the desired impact of energy use reductions.
FINALY COCLUSION:
Benchmarking can be as complex as reengineering or as simple as thumbing through the quarterly reports of organizations and making comparisons.

Although organizations must use benchmarking with some caution, it can be informative & foster a spirit of openness and cooperation from indirect competitors.
Benchmarking is a systematic procedure that requires your organization to move through a series of steps in order to complete a benchmarking process.

Identifying who you should compare your organization to is one of the most important steps.
Full transcript