2007 Annual International CHRIE Conference & Exposition
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Crisis Management and Planning for Crisis in Travel Agents
Most businesses are at risk extremely to a wide range of unexpected events
that could cause vast damage,
occasionally very quickly and tourism is one of the most vulnerable sectors (Richter, 1999). The incident may not be
your company's fault; it still can result in a weakening of public confidence, particularly from customers and
investors. As travel and tourism industry is susceptible and vulnerable to crisis, travel agents are among the most
affected in the industry. Travel agents play important part in the manufacturing and distribution
chain of the travel
industry. Airlines and hotels need to work closely with the travel agents because travel agents have the ability to
market the products offered by airlines and hotels (Hodgson, 1987). A number of roles taken by travel agents force
them to form a structured management plan including a crisis management plan for all types of crises.
Crisis
management is a dynamic process which begins at a time of calmness and safety, increases
its activity by expecting
the unexpected, continues by managing a difficult situation, and proceeds to return conditions to normal as quickly
as possible (Sonmez, Backman and Alien, 1994:111). The purpose of crisis management is to reduce the uncertainty
of the crisis situation and to increase the speed and quality of the organizations response to a crisis. Crisis
management is about taking control of what has happened before it overwhelms the company.
Developing a crisis management plan is a part of crisis management system. This plan consists of strategies
and tactics that will be used during a specific crisis situation. Although crises are deemed to be inevitable, sudden
and acute (Santana, 1999), good management can avoid crises to some degree (Faulkner, 2001). Planning for a crisis
is the key to corporate survival. However, it is not enough to just prepare the plan and place on a shelve.
The plan
must be updated regularly for preventing it form to be come obsolete and forgotten. It also is vital for travel agents
that they have a plan to manage crises as and when they arise (Scott, 1988). To reduce the disruption and minimize
the damage instigated by the crisis event, organizations should utilize a systematic approach to managing the crisis
situation (Fink, 1986). Proactiveness
is an opportunity-seeking, forward-looking perspective involving introducing
new products or services ahead of the competition and acting in anticipation of future demand to create change and
shape of the environment (Lumpkin and Dess, 2001:433). Seeking new opportunities which may or may not be
related to
the present line of operations, introduction of new products and brands ahead of competition, strategically
eliminating operations which are in the mature of declining stages of life cycle (Venkatraman 1989:.949).
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