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Tourism Supply Chains: A Conceptual Framework
Pairach Piboonrungroj Logistics and Supply Chain Research Centre
Faculty of Economics, Chiang Mai University
MSc in Logistics and Supply Chain Management
Mae Fah Luang University, Chiang Rai
16-‐17 March 2013
International tourist arrival (million)
The World Tourism
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
UNWTO (2009)
Lodging Transport Attractions
Tourism service providers
Catering
The Tourism Supply Chains
Passenger transport
I. Before the trip II. During the trip
Direct access via
website
Via Travel agency
Via Tour operator
Trip arrangement
Customer (Tourist)
Freight Transport
Equipment Water & Energy
Input providers Infrastructure Foods & Beverage
Passenger Transport
Passenger Transport (air)
Passenger Transport (air)
Customer (Tourist)
Service delivery
Service delivery
Service delivery
Service delivery
Passenger Transport (land)
Benefits of Supply Chain Management in Tourism
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
• Short-‐term: Cost saving -‐ Inventory cost -‐ Transport -‐ Obsolescence
• Long-‐term: Value creation -‐ Customer satisfaction -‐ Competitiveness -‐ Sustainability
Literature review
• 44 studies found in Scopus, Proquest, EBSCO, ScienceDirect and Google Scholar.
• Keywords:
Tourism supply chain
Hospitality supply chain
Travel supply chain
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Trend in TSC research
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Distribution of TSCM research
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Focuses in TSC research
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Where is the TSC research?
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
1. Defining the tourism industry
Travel trade
Attractions
Destinationmarketing
Tourism planning &
development
Tourism Industry
Travel Industry
Hospitality Industry
Clubs
Institutional foodservice
Assisted living facility
Lodging
Restaurants
Time share
Events
Commuters
Local travellers
Migrants
Students
Trains
Ferries
Airlines
Bus & coach
Car rental
Pizam (2009) Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
2. Specify special characteristics of tourism
• Demand: High seasonality & volatility
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
SARS Outbreak
3. Specify special characteristics of tourism
• Supply -‐Consists of various parties
(Foods, Passenger transport, Tour Agencies, etc.) -‐ Mixtures of Goods & Service -‐ Continuous consumption (during the trip)
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
3. Identify TSC components
Note: × Critical correlation between TSC components (Tapper and Font 2004, p. 4) ● Additional critical correlation between TSC components (the authors) ▲ Moderate correlation between TSC components (the authors)
4. Outlining flow & processes
Lodging Transport Attractions
Passenger Flow
Passenger Transport
Direct access via
website
Via Travel agency
Via Tour operator
Service delivery
Service Operations
Tourism service providers
Foods and Beverage
Equipment Water & Energy
I. Before the trip II. During the trip III. After trip
Passenger Transport (air)
Passenger Transport (land)
Passenger Transport (air)
Freight Transport
Input providers
Trip arrangement
Customer (Tourist)
Foods and Beverage
Physical Flow
Quartet relationships
Conceptual Framework
III. Performance measurements
I. Designs
2. Financial
-‐ Margin-‐ Profitability -‐ P/E ratio
1. External
-‐ Customer satisfaction -‐ Revisit rate
3. Operational
-‐ Effectiveness -‐ Efficiency -‐Responsiveness
Competitive advantage
Distribution
Sourcing
Pricing
4. Development -‐ Sustainable
II. Relationships
Supply chain redesign
Customer value
Processes
Strategies
Plan Source Make Deliver Return
Collaborations
Facilities
Inventory Transport
Tour Agencies
Service Providers
Input Providers
Tourists
Research Opportunities 1. Design • What is the right tourism supply chain to a particular situation? • How can we identify it? 2. Collaboration • What type of collaborations existing in TSCs? • What are the antecedents and the benefits of collaboration in TSCs? 3. Performance measurement • Which aspect that we should consider when measuring TSCM performance? • How can we measure supply chain performance in tourism?
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Research Opportunities 4. Managing risk and uncertainty • What are risks and uncertainties of TSCs? • How can we measure and mitigate risks in TSCs? 5. ICT and E-‐commerce • How can we design ICT systems in TSCs? • How can we identify the right E-‐business model for a particular TSC?
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Acknowledgement
Commission on Higher Education
Royal Thai Government
Chiang Mai University
Logistics Systems Dynamics Group
Cardiff University
Piboonrungroj, P. and Disney, S.M. 2009. Tourism Supply Chain: A Conceptual Framework. PhD Networking Conference, Exploring Tourism III: Issue in PhD research. 1-‐2 July. University of Nottingham.
Hotels
Airlines
Restaurants
Entertainment
Transport
Tour operator
Travel agent
Tour operator
Customers
Direct access via website
Source: Adapted from Johnston and Clark (2008, p. 161)
Intermediaries in the holiday supply chains