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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 1617 March 2013

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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.  

Thank  you    for  your  attentions  

Back-­‐up  Slides  

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    

Summary  of  TSCM  research  (2009)  

Summary  of  TSCM  research  (2008)  

Summary  of  TSCM  research  (before  2008)