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

Russian Federal Agency for Tourism / UNWTO – PPP Seminar Moscow - March 19, 2012

Public Private Partnership ExperiencesII. How to ensure Quality Standards of

Services

GERD HESSELMANNCHAIRMAN

HESSELMANN & ASSOCIATESTOURISM CONSULTING & SERVICES

MoscowMarch 19, 2012


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


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

Let us create a common understanding


In which environment does tourism take place?

Tourism = Business

Private Sector Companies

Revenues Profit

Public Sector Institutions

Tax incomeGDPJobs

Export

Joint Goal: Sustainable growth

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

Domestic

• Awareness and image of regions• Business partners

Source Markets

Europe & Overseas

• Awareness and image of the destination • Business partners


Leisure:

► Main holiday trip (>5 days)

(Roundtrips nature, Culture / sun & beach, relaxation)

► Back to the roots

► Events and other

…

Business travel:

► Individuals

► Conferences / Fairs

► Incentives

Visit of relatives and friends

Pilgrimage

Reasons to travel

Inbound Travel Domestic Travel Outbound Travel

Health Tourism


Tourism Revenues = Return on InvestmentTourism Revenues

Private Sector

• Accommodation• Transportation• Restaurants etc.• Events• .....• .....

90 – 95%

Public Sector

• Museums• Historical Sites• Public Transportation• Tourism Tax• Fees• .....

5 – 10%

Investment Tourism Product (Quality)

Company Product Promotion

Staff Training (Quality)

Company Tax

Staff Salaries Tax

Goods / Supplier Company Tax

Services Company Tax

Profit Tourism Companies

State Budget

Budget for Tourism

Tourism Infrastructure (Product Quality)

Destination Marketing NTO / RTO / LTO

Public Services• Security• Human Resource Development


Marketing Mix Policies

Development from today 2013 2014 2015

Geopolitical Environment

Political Environment-National /Federal-Regional-Local

Tourism Product /Services

Price Communication / Promotion

Insecurities-Health risks-Crime-Terror

Technical Environment IT / Transport

Environment- Climate

change- Natural

Environment

Economic &

Financial Crisis

Consumer- Trends- Expec-

tations

Distribution / Sales

PPP of Institutions

External & Internal Influences on Tourism DevelopmentExternal Influences

Internal Influences

Competitive Destination


Communication Policy

Product Policy

Price Policy

Distributio

n Polic

y

Potential Travelersin Source Markets

Marketing = Customer orientation

Market Research

* Consumer Trends

* Visitor expectation & experiences

* Competitive destinations


• Diversity of service

• Quality of service

• Ambience / atmosphere

• Experiences & relations

• Cost of the product

• Payment efforts

• Inconveniences

• Insecurities

VALUE

EFFORT

Tourism Services offered

Price

Feeling & sensations

Other efforts & deterrents

Tourism services offered

Price Others efforts & deterents

Feeling & sensations+

+

Criteria for the Competitiveness of a 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

Diversity of services,

Product Quality,

Well feeling

Security

Product Quality

Tourism Experience

Tourism Infrastructure• Accommodation• Transportation• Cultural sites / events• Natural resources / environment • Accessibility, Signposting

Tourist Information

• Printed material

• Electronic media

• Tourist Information Center

Components of the TourismProduct „Destination“


Public Sector Private Sector

Associations Enterprises

Product Policy - Tourism- (product) strategy - legal framework - licensing / monitoring - environment & infrastructure accessability - tourism product & services - human resources - information

XXXXX

X

X

X

(X)(X)(X)(X)(X)

(X)

(X)

(X)

(X)X

(X)(X)

X

X

Price Policy - fiscal framework / taxation / fees - product calculation - business conditions

X

XX

Who is responsible for what? (1)


Public Sector Private Sector

Associations Enterprises

Communication Policy - Marketing budgetExternal Marketing - PR & promotion destination - destination web portal - fair participationPrivate Sector - product promotion - product PRInternal Marketing= Communication

XXXX

X

(X)(X)(X)(X)X

(X)

(X)(X)(X)X

XX

(X)

Distribution Policy - fairs - internet - tour operator & agents - supplier

XX

(X)X

XXXX

Who is responsible for what? (2)


Ministry in Charge of Tourism

Interministerial Tourism Council

Municipalities

Mo Foreign Affairs

Mo Finance

Districts

Mo Interior (Department of immigration)

Mo Transportation / regional Development M in charge of Health etc.

horizontal & vertical coordination

Tourism regions

Mo Justice (Autorney Generals)

Public Sector Tourism Institutions


Accommodation sectorHotels/motelsGuest houses/bed & breakfastFarmhousesApartments/villas/flats/cottagesCondominiums/time share resortsVacation villages/holiday centresStatic and touring caravan/camping

sitesMarinas

Attraction sectorTheme parksMuseums & galleriesNational parks/Wildlife parksHeritage sites & centresConference/exhibition centresSports/activity centresTheme retail/leisure/entertainment

centresFestivals and eventsDiscos

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

Sectors of the Tourism Industry

Joint

Private Sector

Association


Transport Sector

Umbrella Association

Municipalities

Travel organisers‘ Sector

Food & Beverages

Districts

Accomo-dation Sector

Attraction Sector

Private Sector Tourism Institutions

horizontal & vertical coordination

Tourism regions

Other sectors


Prerequisites for PPP

Functioning Tourism Institutions on the public sector and on the private sector

To accept responsibilities and to take respective actions

The will to cooperate within each sector and between the public and the private sector


Institutions involved in Hotel Classification

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

Joint commitees

Public Sector (federal / regional / local levels)

Private Sector (federal / regional / local levels)

PPP Institution


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

Goals of updating Classification System


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.

Basic Decisions regarding Hotel Classification


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

Some Aspects to watch


Thank you for your Attention

Gerd Hesselmann

HESSELMANN & ASSOCIATESTOURISM Consulting & Services

Goethestr. 2-3 / Aufgang BD-10623 Berlin

Tel.: +49 (0)30 31164555 / Fax:: +49 (0)30 31164557 Mobil: +49 (0)172 3227457

e-Mail: g_hesselmann@hesselmann-associates.comwww.hesselmann-associates.com

Documents

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