Impact Of Collaborative Businesses On The Australian Tourism Industry

Data Collection Methods

Discuss about the Trends In Hospitality Management Research.

The dynamic nature of the corporate world has seen the tourism sector undergo revolution in a number of aspects. The movement of people from one place to another has been made easier due to the arrival of numerous transport options in addition to the good infrastructure. The growth of the tourism industry has taken an upward trend in most developed and even in developing countries. This feat could be attributed to the effective strategies put in place by the management to enhance the achievement of the laid down targets (Andereck, 2009). Due to the availability or resources, the fraternity in most counties has stayed keen on reviving its image by rehabilitating old artifacts in addition to creating new attraction zones.  All these strategies have been aimed at enhancing a stable market for the services and products offered within the fraternity. In Australia, the percentage of domestic tourists over the past 5 years could be estimated at about 50% of the entire population. The number of international tourists can however be placed at 65%. As noted by Bary (2017), the rise of collaborative consumption led by the arrival of Airbnb in the market has however changed the scope of happenings in the industry. The interesting concept here is the fact that a good number of the travelers are only interested in visiting their preferred sites but not enjoying the accommodation and hospitality services offered by the tourism sector. The presence of Airbnb has been noted as a major blow as the hotel room owners have incurred losses in the past especially when the target market chooses to embrace cheaper alternatives offered by other collaborative businesses. Since the tourism industry is a self sustaining fraternity, the consistency of the industry is largely dependent on the return obtained from the investment (Dredge & Gyimóthy, 2015)). When the returns emerge to be less than the value placed during investment, it becomes hard for the industry to sustain some of its procedures, departments as well as facilities. The threat as a result of the presence of collaborative business led by Airbnb is therefore a sensitive matter requiring the necessary response. This makes the issue a good choice for the research process. It was projected that at the end of the research process, a number of solutions shall have been noted and outlined in a bid to ensure a good future for the tourism industry despite the presence of collaborative sharing.

Data Analysis

In a bid to obtain as much information as possible with regard to the research problem, the process involved the use of both qualitative and quantitative approaches. The mixed methods were applied as it gave the research a wider scope and a variety of points of view to pick from. The data collection process involved the use of three approaches mainly population sampling, use of questionnaires/direct interviews as well as the review of literature.

To begin with, random sampling was incorporated in order to obtain the right population size which would later be subjected to other forms of information derivation. A total of 250 participants were picked from various locations across Australia. To ensure a balanced team, the individuals were picked from various sectors within the tourism and hospitality industry. While some of the participants were hotel managers and tourist center directors, the other portion of the sample involved the ordinary population whose views would be crucial when it came to getting the perspectives of the tourists (Chris, 2015). The number of participants would later be scaled down to 200 after the necessary considerations and depending on the level of the subjects’ willingness to share the needed information. This method was chosen for the data collection process because it allows a researcher to gain substantive information from a number of people within a short period of time. This happens without necessarily interacting with every single members of the entire population, an approach which otherwise be cumbersome and is practically impossible. The random samples offer a fare representation of the entire population hence their opinions are enough to paint a picture of the entire population’s verdict on the research issue.

Once the sample had been established, the second step involved the distribution of questionnaires to the subjects. The individuals were contacted and the documents availed to them through the most convenient means. The questionnaires were to be filed and thereafter collected after a period of two weeks. This gave the respondents ample time to comprehensive answer the questions especially the open ended ones. In addition to the issue of questionnaires, about 50 participants from the final list of 200 were picked and taken through direct interviews. During these processes, their opinions in line with the tourism industry were deduced through direct questions and interactive conversations (Guttentag, 2015). The use of questionnaires as well as direct interviews is not only cheap but also serves as a faster way of obtaining information. For the participants whose locations could not be accessed physically due to constraints of time and resources, the questionnaires were sent to them via email (Faulkner & Tideswell, 2010). They would then send back the duly filled questionnaires within the stipulated period. Direct interviews are also effective since the research obtains the feedback immediately. This plays a crucial role in speeding up the research process thereby reducing the related costs.

Challenges

The last method of data collection involved a qualitative approach in which the review of relevant literature was used to gain information about the research problem. A total of 15 peer reviewed sources touching on the tourism sector were picked and reviewed. The information obtained from these sources was arranged for consistency before being subjected to a comprehensive analysis. Additionally, visual analysis of contexts was used. In this case, the research reviewed videos and documentaries describing the tourism sector in Australia. Based on these direct observations, it was possible to deduce some of the challenges affecting the industry hence the need for proper mitigation. The approach of data collection was used because it is relatively cheap and fast (Gee, Mackens & Choy, 2009). At the same time, the researcher is able to gain insight on a variety of perspectives on the research issue before deciding on the very one likely to respond effectively to the research question (Goeldner, 2013). Through literature review, it is possible to deduce a specific trend in arguments which enhances the reliability and validity of the data.

In line with data analysis, the two main approaches used were descriptive statistics and data visualization. Through descriptive statistics, the derived data was arranged in order to indicate given trends which could then be interpreted mathematically. For instance, the responses given to particular questions were counted and recorded before finding the median, mode, mean and data averages. The tabulated results were then presented in form of graphs and charts in a manner that was easy to interpret and understand. On the aspect of data visualization, information was obtained through direct analysis of visual content as well as texts. These reviews brought out particular trends which were tabulated and used to generate graphs and charts. The methods of data analysis were chosen due to the fact that they enhance the precision of the collected data. The mathematical interpretations of the inserted variables are pivotal in giving a true picture of the situation in the area under study. The graphs are not only easy to construct but are also easy to interpret. The methods of analysis also enhance data reliability and validity.

The process of data collection was however characterized with a few challenges. One of them was the issue of constrained resources which made it impossible to explore a wider area of the population and hence get more views. Secondly, the process was faced with constraints of time. A lot was required to be accomplished with a short period which proved quite cumbersome. Furthermore, some people declined to respond to certain questions citing confidentiality issues. This minimized the amount of information which could be deduced from the process. Despite these, the data collection process was successful

Outcomes

The process also followed the necessary ethical considerations. Due to the sensitive nature of their positions and hence responses, the information was only kept and used for the purpose of the research. In case a respondent was to be quoted, this was done on their consent. The confidentiality of the information was kept high hence ensuring the right ethical standards.

Through the data collection, a number of outcomes were obtained. Some of these have been summarized in this section of the report.

The research process revealed that the number of domestic tourists visiting the various sites could be estimated at 50% of the total population. This number increased to 70% after the involvement of the collaborative business entities. The outcome however reduced the return on investment in the tourism sector by over 25%. The results can be summarized in the table below

Table 1

Year	2015	2016	2017
Domestic tourists	45% of target	50%  of target	60% of target
Domestic tourists after introduction of collaborative businesses	50% of target	60% of target	70% of target

Table 2

Year	2015	2016	2017
International tourists	55% of target	58% of target	65% of target
International tourists after introduction of collaborative businesses	60% of target	65 % of target	75% of target

Table 3

Impacts on tourism sector in terms of return on investment

Year	2015	2016	2017
Profits from domestic tourism	5% rise	10% drop	5 % drop
Profits from international tourism	10% rise	5 % drop	5 % drop

The results above can be summarized in the graphs below

The findings outlined above give a clear summary of the current trends in the tourism sector in Australia. The downward trends especially in terms of return on investment are a clear wakeup call hence the need for the necessary adjustments and counter strategies. The results reveal that the tourism fraternity hit an all time high in 2015 but has been facing a downward travel especially after the cropping up of alternative service providers (Hernandez, Cohen, & Garcia, 2009). Based on the outcome above, the number of domestic tourists visiting various sites in Australia has been increasing in the past three years with the introduction of collaborative businesses. At the same time, the international tourist rates have increased an achievement which could be associated with better travel plans and accommodation exercises offered by other providers (Lindberg, Andersson, & Dellaert, 2011). It is however a fact worth noting that the increase in the number of visitors in the tourism industry has not come with much value with regard to return on investment. This is because the sector comprises various elements for instance the transport sections, accommodation and housing, tour operators and travel agencies just to mention but few. The strategic plan such that each of these sections is supposed to bring revenue to the fraternity based on the services offered.

Despite the strategies put in place to ensure maximum gain within the tourism sector, it can be noted that the rise of competitors within the market has had negative impacts on the achievement of specific goals and organizational objectives. The rise of collaborative organizations like Airnb has led to segmentation of the already crowded market. This is because the businesses offer services at more affordable rates in comparison to the traditional approaches and standards used in the tourism industry. The businesses offer services such as accommodation for temporary tourists, sharing of houses and home stays (Mason, & Cheyne, 2010). From the direct interviews, it was deduced that most tourists prefer the cheaper alternatives offered by other companies to the rather expensive rates applied especially in the high end hotels in Australia. The visitors therefore opt to enjoy the sceneries, moving from one end to another an pay for these services. However, these individuals obtain accommodation services from other providers like Airbnb which has largely affected the return on investment especially in the housing and accommodation section of the tourism industry (Murphy, 2015).

The three year analysis above can be used to project the future of tourism in Australia. It clearly implies that the sector is likely to face major challenges if the issue of competitors is not adequately addressed. Through the review of literature, it was deduced that the collaborative businesses are continuously getting a fair share of the market due to their effective marketing strategies (Oskam & Boswijk, 2016). The rise in technology has offered an appropriate platform for marketing hence the ability for business entities to interact with their clients through online avenues. There are numerous rival sites on the online platforms which are constantly wooing travelers to their side. For instance, the Australian airlines serve as the major air transport option for most international tourists. However, there has been the rise of smaller and privately owned airlines which offer similar services at relatively lower prices. The rival entities have websites exploring their products, services as well as prices (Tosun, 2012). Due to the fact that a good number of people have access to the internet, interacting with these offers becomes easy especially for the international tourists. This leads to a scenario where international tourists choose to minimize on their spending costs by snubbing the transport services offered by the Australian tourism sector and instead using cheaper alternatives while moving around.

In addition to the challenges posed by the collaborative business entities, the direct interview especially on the tourists indicated the conditions of some of the housing facilities as one of the major reason for picking other alternatives. The middle class tourists depend on relatively low class hotels which however must be within the right standards to enhance consumer satisfaction (Pinsker, 2017). The visitors however intimated that some of these hotel rooms are in bad states and lack the basic requirements which would ensure the comfort of the travelers while using them. Despite the fact that the challenge could be a minor in comparison to the giant concept in the presence of competitors, it is a crucial issue which equally deserves to be addressed appropriately.

Furthermore, the challenges facing the tourism industry could be associated with ineffective management structures and leadership approaches. Based on the findings from the case studies and literature review, it was deduced that the tourism industry suffers a deficit of workers every year. According to the 2017 annual report, the sector need to revamp its workforce by over 20% in order to effectively meet its goals and standards in terms of service delivery and quality assurance. This reveals a clear state of low employee retention in the tourism sector, a phenomenon which could be linked to poor leadership approaches. The workers need motivation, education, exposure and good reward. When these aspects lack, the human resource fraternity is likely to be less productive. The right leadership approaches would therefore ensure a committed workforce and hence the holistic realization of the sector’s goals and objectives.

Conclusion

The discussions above summarize some of the challenges faced by the tourism sector in the current state of affairs. The arguments in this report also bring out the possible impacts that these challenges could have on the future of the tourism industry in Australia. One of the main issues outlined in the report is the presence of competitors and their influence on the progress of the sector. The presence of alternative transport and housing service providers has served as a major blow to the sector by segmenting the marketing and in turn impacting the return on investment. In effective leadership approaches and lack of adequate training and exposure on the side of the industry workers has also been outlined as a challenge likely to affect the growth of the industry in the coming days (Pechlaner & Volgger, 2012). There is therefore the inevitable need for the government and key stakeholders to, put in place the right counter strategies which would ensure the continuity of the tourism sector despite the dynamic nature of the corporate market. While it is practically impossible to ward of competition, it is possible to put in places that retains the tourism sectors’ relevance in the local and international market.

In order to salvage the future of the tourism fraternity, the following recommendations could be considered.

• The government should set aside resources for the rehabilitation and establishment of more facilities in areas where low customer satisfaction has been recorded
• There is need for efficient leadership approaches in the tourism sector to enhance proper service delivery.
• Training of industry workers should be stepped up to enhance their skills and motivation levels in the various areas of operation.
• The sector should introduce effective counter strategies like cheaper accommodation and transport services to counter the threat of losing the market to other competitors like Airbnb.

References

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Pinsker, J. (2017). How the Hotel Industry Views Its Future (and Airbnb). The Atlantic. Retrieved 1 May 2018, from https://www.theatlantic.com/business/archive/2017/09/hotels-magazine-industry-airbnb/540525/

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