Visitor Attraction Management on London Eye UK - Essay Example

Running head: Visitor Attraction Management on London Eye UK Visitor Attraction Management on London Eye UK Insert Insert Insert Instructor’s Name 16th. April 2011 Table of contents. Page no. 1.0 The London eye UK. 1.1 Introduction………………………………………………………………………..4 2.0 Opportunities………………………………………………………………………6 3.0 Challenges…………………………………………………………………………8 4.0 Recommendation…………………………………………………………………13 4.1 product differentiation…………………………………………………….13 4.2 cost leadership strategy…………………………………………………..14 4.3 employee motivation………………………………………………………14 4.4 effective management……………………………………………………..15 4.5 information technology…………………………………………………….15 4.6 tourist demand……………………………………………………………..16 4.7 tourists’ classification………………………………………………………16 4.8 tourist segmentation………………………………………………………..17 5.0 Conclusion…………………………………………………………………………..18 References ……………………………………………………………………………...19 Figures: Fig1: capsule……………………………………………………………………….4 Fig 2: the London eye……………………………………………………………..5 Fig 3: table…………………………………………………………………………17 Executive summary The London eye attraction in the United Kingdom is one of the famous attractions in the world. Visitor from all over the world travel to visit this enormous wheel, thus contributing greatly to the economy of London. In the introduction, this paper discusses the origin of the London eye and its birth, and the millions of people, both citizens and tourists that it attracts. Its features and major activities that are inclusive including the recent developments and innovations are discussed. The opportunity section covers a wide range of those opportunities that the management has grabbed and made a fortune out of them. Secondly, the foreseen opportunities like the 2012 London Olympics are also discussed, as well as survey on external environment and how to outwit the rival competitor. The challenges are inclusive of what the attraction has faced since its birth and the future hindrances that may occur as its operations continue. Moreover, the paper discusses the competitive advantage and the factors that would lead to the attraction attaining and sustaining its competitive advantage. Recommendations are given on the issues that need to be evaluated to maintain the stability of the attraction. Marketing strategies like cost leadership and product differentiation are explained. Human resource strategies such as employee motivation play a big role in meeting the organization’s goals and objectives. However, this can only be achieved by recruiting quality staff. Effective management is also explained in a way that would help the attraction to improve its employee’s performance and at the same time meeting the customer’s needs. The tourist classification and tourist demands are reviewed hence providing management with options on how to continue attracting a good number of visitors that lead to continuous visits. Since the key to success is determined by business’ capability to attract and meet the customer’s needs, this paper also explains how the attraction can maintain its customers by advancing technology and introducing new services and products that will make the visitors yearn for more visits. Finding show that, the attraction businesses like other businesses are prone to challenges and opportunities the conclusion covers the micro environment of this attraction. Mainly the role of management in this attraction business; it is through a committed management team and motivated staff, which contribute to success. The stability of an organization depends on way management deals with the opportunities and challenges that face it. Visitor Attraction Management on London Eye UK 1.0 Introduction 1.1. London eye United Kingdom The London eye or the energy London eye is one of the tourist attractions since over 3 million people visit the site. In addition, it is the tallest outstanding wheel and also known as a monster wheel in the world, located at the banks of River Thames in the London Borough of Lambeth in England. It was designed by Mark starfield architects, and it measures about 135 meters in height. It however took about six years to make the structure a reality and with the collaboration of about five European countries. The wheel is inclusive of 32-passenger capsule that are air-conditioned. Fig 1: A capsule (visitlondon.com) A capsule accommodates 25 people and passengers can take a walk in to the capsule, it is designed in a way that it does not stop to allow people to get in, since its rotating speed is too low hence making it easy for the passengers to get on board and alight. However, for the sake of the elderly and the disabled, the wheel can be stopped for a moment for safety purposes. In general, it carries 800 passengers on one rotation, which takes about 30 minutes. Fig: 2 The Energy London eye. (visitlondon.com) Major amendments are being implemented on how to improve the London eye, such that, it is possible for tourists to view London in a 3D footage, making tourists feel the change. The eye also gives people an opportunity to take a good view at the Windsor castle. The London eye was first opened on 31 December 1999 by the previous Prime Minister Tony Blair, but it began its full operation in the year 2000 (London Attractions, 2011). Over the years, the London eye has received about 75 awards for both the national and international tourism, due to its fame for the magnificent quality in architecture and engineering. According to Leask et al (2008 pp 4), visitor attractions can manifest themselves in various forms, which may vary from resource to activities, event, conferences and catering; therefore it is clear that it is the many off-site activities of an attraction site that generates an additional income. Nevertheless, the London eye mainly focuses on the tourists interests, thus adding flavor to its capsules, such that there is a children’s party capsule that allows room for birthday parties, marking a very memorable event for the kids. In addition, a champagne capsule provides room for celebration or a special occasion. The London eye management has made it possible for tourists to have a choice of which capsule they would prefer, incase of private parties including weddings, birthdays, or corporate events (London visitor guide, 2010). Leask adds that, the use of technology plays a vital role in boosting an attraction site; for instance, in 2009, the Merlin entertainments who manage the London eye attraction site introduced a 4D cinema experience, which was as a re-brand of the attraction site by management, mostly aimed at attracting majority of tourists. The 4D experience is an entertainment, which includes voiceless images that tell it all, since they are elf explanatory. In addition, tourists are issued with the 3D glasses to spice up images in the cinema before entering the London eye. The cinema is also inclusive of snow and bubbles for children to play around with; there are also fireworks, tourists can smell them, and it rains on the screen (Potter 2011). To cap it all, the London eye management is involved in a lot of charity work for the less fortunate and the sick, thus showing involvement in social responsibility. The figure below demonstrates the application of Leask model in London Eye. Source: Leask, A. et al. 2008. The nature and role of visitor attractions: Managing Visitor Attractions. CT: Butterworth-Heinemann Publisher. 2.0 Future Opportunities: London eye attraction site An opportunity is an advantageous circumstance that emerges, and if an organization grabs that opportunity, they finally benefit. Hence, the key to success in business is in identifying the customer’s needs and reaching potential customers. It is however evident that tourists demand quality products and services that are worth the value of their money. Therefore, tourist attraction businesses should be aimed at finding opportunities and utilizing such opportunities to meet and satisfy the customer’s needs. According to Wanhill (2008 pp 16), there are reasons why tourists and citizens visit an attraction site, the first one being having visited an attraction site. There are vivid images that remain alive in the mind for sometime and one may feel the urge to visit that place again. He further adds that, the attraction sites normally measure their performance depending on the number of visitors it receives. Wanhill (2008, pp 19) adds that an effective image scape should entail entertainment, education, escapism and aesthetics, such that a visit to such an attraction site is deemed successful. However, such attraction sites like the London eye, are usually important to the economy of a country since they provide employments for many young graduates in areas of limited job opportunities. They also provide leisure time activities for the citizens. Moreover, they aid in development of the areas they are located in due to establishments of other sub-businesses in that area. In addition, students are able to learn more about their country. Swabrooke (2000) adds that marketing leads to the success of an organization, for instance, the use of the internet contributes highly to the success of an organization. The diagram below illustrates a model applied in London Eye as described by Wanhill. Source: Wanhill, S. et al. 2008. Interpreting the development of visitor attractions: Managing visitor attractions. CT: Butterworth-Heinemann publishers One of the macro environment opportunities that may arise is the chance to advance in its services due to the growing competition by providing unique services in the future, for instance collaborating with other companies that may introduce their service at the attraction site. As per now, the London eye management is in collaboration with the EDF which enables the wheel to produce low carbon. The second macro environment opportunity is the use of internet which will provide an opportunity to diversify, by advertising and providing up-to-date information that will bear fruits, such as attracting customers from all over the world. Online booking can also be encouraged thus reducing queues made at the counter. Attractions in general are supposed to encourage one to come back for a second time in the company of more friends since she is assured that they will not be disappointed. Therefore, the London eye should create this urge for every one who has experience of its ride and site. The attraction should also make use of market segmentation by acknowledging that different types of people have different tastes, and they may be looking for different forms of attractions that will make them thirst for more. Due to the stiff competition now and in the future in the macro environment, the attraction’s management may find it necessary to expand and redesign the structure, giving it a whole new look. This can be made possible through technology that can see to it that more capsules are added, and the structure is redesigned in a unique way. This way the attraction will gain more fame and even attract more customers. Due to the additional 25 years lease on the same location, it is essential for the management to grasp any opportunity that comes their way. Customers’ satisfaction comes first for an attraction business; hence, the attraction site should be deigned in a way that is suitable to fulfill the desires of the customers. The London eye attraction is an example, especially with the introduction of the 3D cinema in 2009, where many tourists and citizens have been flooding to the site. A customer should be in a position to make repeat visits to an attraction, thus showing the satisfaction he/she receives, and in turn increasing on the income of an organization. The London Eye has the opportunity of yet introducing another service, which will even outweigh the 3D cinema, and the management should just create one inclusive price of all the services offered, thus creating efficiency, and leaving customers hungry for more of their services. This is a macro environment opportunity that could lead the attraction to a competitive advantage. Another strategy should be the creation of services that are all available and favorable regardless of climatic conditions. The incident of tyre breakdowns in the past should be history, as the management should focus of the safety of the attraction at all times. Due to technology, the London Eye management should implement a quick and up-to-date service for the disabled persons who would like to experience the London Eye ride. While in the cinemas, they should probably include sign features for those with hearing difficulties. In addition, the upcoming 2012 Olympics in London will provide the London Eye with a macro- opportunity to market itself to tourists from all over the world. It is also a chance to provide tourists with outstanding experience once they visit the attraction. Moreover, it is a guarantee that the London Eye will accumulate large profits by the end of forthcoming Olympics. Nevertheless the micro- opportunity to employ quality staff is one that management should implement, when the right people are employed, task are likely to be carried out to the satisfaction of the employers. The management can also implement measure to prevent poaching of their quality staff by the rival competitors. These strategies that motivate employees vary in terms of monetary to non-monetary incentives. The Merlin entertainments should be at a position to utilize this opportunity by ensuring that safety measures are present and the wheel is in good order to avoid any disappointments in the future. Therefore, due to such an opportunity, the management can introduce the cost leadership strategy, since it will be targeting many tourists during the 2012 Olympics. According to Hill (2009, pp 405), this means that a business can choose to be the lowest cost attraction, by reducing its costs so as to attract more visitors, but still in a position to make profits. Potter (1998, pp 3) explains that a competitive advantage, is determined by the value in which a firm is able to create for its buyers in terms of good and services. In a micro environment, satisfying the customers needs is the key to making sales, therefore the management should survey on what the customer preferences and tastes are. However, to increase the number of customers, an attraction management should find out on how and when visitors decide to visit an attraction and what determines the visitor’s satisfaction. The second is to identify their competitors and their strategies they use so know the way in which they can achieve a competitive advantage over their competitors. Thirdly, the management should be able to study the business environment therefore anticipating any changes that could affect the business in the future. The fourth is the implementation of cost effective measures that can ensure effectiveness of their marketing activities. 3.0 Possible challenges that the London eye may face: The London Eye has been faced by a number of challenges since its existence. According to Akwagyiram (2005) of BBC news, the London eye was closed on September of the year 2004, when a campaigner of the father for justice stayed for 18 hours on the top of a pod, before accepting to come down on his own. The closure was amid fears that such a situation would arise once again. Such issues can compromise the income flow for the London Eye, especially when it is closed. According to Arthur (2000) of the independent news, the London Eye had yet faced another crisis when one of the tyres fell into River Thames. This incident caused refund to about 10,000 people who had booked the London Eye rides. However, according to an article by Swabrooke (2000), when same-owned organizations target the same customers and compete with each other, it could lead to a waste in resources. Hence, the main macro environment challenge for an attraction organization is competition, and in worse situation, unfair competition is evident. In the case of the London Eye attraction, the main challenge it could be facing in the future, is competition from the rival attraction sites like Paris. This is evident since income differences between the two organizations are minimal; therefore, posing a great threat to the London eye. This is one of the most famous attractions in the world. Failure to re-flavor and expand on their services and product (the wheel) in the future could make render to severe consequences of been outshined by other attraction sites. Another micro- challenge that this attraction could be facing is the unpredictable event such as the technical problems that cause the tyres to detach from the main wheel. With such unpredictable events happening, the other rival competitor could lure tourist by convincing them of how unsafe the London Eye is, hence leading to lack of confidence by their customers. With the technology advancing, we are most likely to witness several other advancements in other attraction sites, hence this is a major call for the London Eye management to advance with the technology, lest be left behind. Swabrooke (2000) adds that, hiring and retaining of effective staff members is normally hard, since most of the attraction organizations only hire on contract basis, thus not providing actual employments but only providing jobs. The author adds that, Most of the attraction organizations workers, receive low payment, which is usually a demotivator, hence, they can be easily poached by rival organizations who promise to raise their salaries. This is a challenge within the micro environment that affects most organizations who do not work towards recruiting and maintaining quality staff, thus been prone to poaching by the rival competitors. Therefore, to avoid encountering such a problem in the future, the London eye attraction should implement measures that ensure that their employees are well paid and motivated as well. The human resource department should be present in any attraction organization; this department mainly caters for the need of employees, thus easing the tensions like the strikes that could cause loss of profits for the organization. Therefore, employee’s interests should be catered for to improve performance from the customer care to the management level. According to Banhegyi (2007 pp 191), motivation normally has an impact on the employee’s performance. Hence, the management should be able to establish a communication mechanism between them and the staff, thus giving the employees a sense belonging to the organization since they are engaged in all the activities of the organization. In addition, when there is a clear channel of communication, employees are able to air their grievances and the customer’s concerns. Employees can also be awarded in non-monetary means, which include certificate of service, on job and off job training. In addition, too much of something may lead to boredom; hence, the other challenge that may face the London Eye may be loss of customers as a result of seeing the same thing all the time. Therefore, it is important for the management to make sure that at least each year, tourists look forward for an additional service or change that spices up their visit, hence looking forward to repeated visits. Nevertheless, each customer normally has his preferred taste when it comes to an attraction, therefore the attraction management should ensure that every age group is catered for. In the London Eye attraction, this strategy seems to lack; hence, it could be excluding a certain age group in their attraction, since it mainly seems to attract children and teenagers due to the 3D cinema and the birthday capsule, hence failing to introduce a strategy for the middle age and the elderly. Another micro environment challenge likely to emerge from the 3-year deal made between the London eye owner, Merlin entertainment and the EDF Energy, which acts as a sponsor. Such that the London eye uses nuclear power to run, this is supposed to reduce the carbon pollution, hence relying on the biggest low carbon and nuclear electricity company EDR energy. Nevertheless the challenge may come in after the 3 year period, whereby the attraction may have to continue with the carbon emissions, if the contract is not renewed. This could draw questions on whether the London eye is environment friendly or not. 4.0 Recommendations For a business to survive in a competitive market it should have a competitive advantage over other its rival competitors, this can either be through rendering lower prices, or the introduction of product and services that are of high quality thus, being worth the customer’s money. According to Drury (2007 pp 572), there are four business strategies that can lead to a competitive advantage once adopted by an organization; differentiation and cost leadership. 4.1 Product differentiation strategy An organization introduces a unique product that outweighs the competitor’s but the costs may be slightly higher, but the customers are assured of the quality of the product. Hence, customers can find the reason why they should prefer this service or product, compared to the rest. The London eye management should aim at introducing a service differentiation strategy, well apart from the 3D cinema, the management should come up with another strategy that will out do the ret of the services in the rival firms. Due to the many existing and upcoming attractions that provide newness and uniqueness of services and products, it is very important for the London eye to seek and provide another ‘wow’ factor, of which the images and the experience will remain vivid in the visitors mind, (Swabrooke, 2000). 4.2 Cost leadership strategy: An organization offers the lowest price in the market but still at a profit to the producer. The author adds that the product differentiation should be inclusive of performance, uniqueness, and image. This strategy aims at offering the customers with cost- friendly products to acquire and attract more customers, thus increasing a company’s market share. This strategy aims at acquiring a market share and also been at a competitive advantage. 4.3 Employee motivation: Employees are the pillar to the organization, once they perform poorly, there is a likelihood of loses to be incurred. Especially in the tourism sector, courtesy, honesty, and joyfulness are important factors, since they contribute to the customer’s satisfaction. Therefore employees should be well trained; their benefits catered for, promoted, provided with a conducive working environment, and granted flexible hours to be able to attend to work and their families to. Once employees are motivated, it is guarantee that their performance is usually high, thus leading to the attainment of the organization’s goals and objectives. 4.4 Effective management: Good management often regulates the rate of crisis in an organization, thus it must adapt strategies to cope with the unexpected events that occur. However, according to an article by Faulkner (2000 pp 137), crises somehow yield to opportunities for new options and creativity. Therefore, when good management is in place in tourism, there is the likelihood of expansion and development of an organization. In the case of the current London eye management, it is evident that the Merlin entertainments have restructured the attraction site since they took over, with the introduction of a 3D cinema, being a source of attraction to many. Nevertheless, if the management relaxes, it can be prone to stiff competition and can be outwitted by other attraction sites. Therefore, a good management, plans, and is aware of the likely challenges that may occur, hence develops strategies to curb the challenges in future, and remain at a competitive advantage. Good management ensures that tourist have something extra and new to look forward to in their visits especially annually, diversity and change is sometimes important since people always look forward to new things. Otherwise, when all the services remain the same for almost 10 years, then some tourists will think they have had enough of the attraction and will move to another attraction site. 4.5 Information technology: According to Bahalis (n.d pp 2), advanced technology may lead to an organization attaining a competitive advantage, however, it can only be fruitful if there is management commitment, training of the staff, and re-engineering processes. When management embraces technology and works together with its staff, this results into renovation of an organization as a whole. When technology is present, it leads to redesigning of an attraction site including the organization structure; therefore, managers should be ready to embrace technology, thus leading to innovativeness and effectiveness. 4.6 Tourist demand: In order for a business to satisfy the demand of its customers, it must incorporate technology in its operations. This can be through providing online ticket booking, advertising online, and providing vital information on the destination of the attraction site, this reduces paper work and gives a tourist a choice on what they really want. For the London eye to sustain its many customers, then it has to maintain accuracy, accessibility and quality service and activities (Bahalis, n.d pp 3). 4.6 Tourist classification: According to Leask (2008, pp 6) she insists on the pricing policy of an attraction site, such that children under the age of 18, should have free access and such a move may overcome the thought of citizens that attraction sites are mainly for tourists only. Nevertheless, offering a less charge to local citizens is also a great move, such that they can afford to visit the attractions regularly. These can be both beneficial to the country’s economy and to the citizens who will get a chance to know their country’s attraction sites better. Nevertheless, the London eye management work towards maintaining the attraction’s competitive advantage, now that it is among the world’ famous attraction. Customers are normally attracted by the quality and uniqueness of a product or service despite the price. Such that some customers would be willing to use whatever amount as long as their money is reciprocated by a quality product or service. However, other customers are keen on how they spend their cash, hence preferring price friendly services or products. Nevertheless, according to Raj (2008 pp 42), and the main challenge that faces the tourism sector is lack of qualified personnel at the managerial level, thus compromising developments. Secondly is the failure to keep up with the technology pace, thirdly there is a problem in attracting and retaining quality staff. Human resource policies also lack in this sector, hence employees’ needs are neglected. However, to attain and attract quality staff, the management must be committed and train their employees. 4.7 Visitor segmentation. The visitor segmentation is a strategy necessary for the tourism industry. Since with the competitive tourism market, every business tries to develop strategies that will attract more customers. Failure of developing segmentation, may lead to lack of know-how on what customers rely need. According to Williams P (2008), Segmentation identifies the factors that influence the customer’s behavior and should be aimed at motivating employees. Below is a table illustrating the market segmentation techniques. Fig 3: segmentation techniques Geographical technique Define tourists according to their location; this technique assumes that tourist behavior is influenced by where they live. Psychographic technique Tend to assume that the purchasing behavior of tourists is determined by their personality and their lifestyle too. Demographic technique Determines the tourist’s purchasing behavior based on their gender, age, class, and income. Behaviorist technique The tourist purchasing behavior is determined by the products offered, benefits of the services, and the level of loyalty they have on that product or service 5.0 Conclusion Attraction managers should be in a position to recognize the complexity of competition by conducting regular competitor analysis and planning accordingly. Hence, they should use their customers to help them identify and evaluate competitors because the customer’s perceptions may differ from that of attraction managers. The quality of staff is important in the attraction business, since quality staff is an element that contributes to success. However to attain a quality staff is normally hindered by nepotism and an ineffective recruitment and selection process, thus it is essential for managers to ensure that there is a fair system in the recruitment of staff, and this will ensure that quality staff is achieved. The London eye attraction is a major contributor to the United Kingdom economy, therefore, hence the challenges and opportunities faced by such an attraction, determine the future of the attraction. However, most importantly, it is the reaction of management to such threats and challenges that make a difference. The success of a business is determined by its capability to be at a competitive advantage since it will be able to compete with other competitors and it will not loose its market share. Reference List Akwagyram, A., 2005. BBC news; the history of the London Eye. (Online). Available from: http://news.bbc.co.uk/2/hi/uk_news/england/london/4569123.stm (accessed May 17, 2011). Arthur, C., 2000. Independent news; now the Millennium Curse strikes the London Eye. (Online). Available from: http://www.independent.co.uk/news/uk/this-britain/now-the-millennium-curse-strikes-the-london-eye-706948.html (accessed May 17, 2011). Banhegyi, S., 2007. Management: fresh perspectives. 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Key Issues in Visitor Attraction Management in a Competitive Market. (Online). Available from: http://www.insights.org.uk/articleitem.aspx?title=Key+Issues+in+Visitor+Attraction+Management+in+a+Competitive+Market (accessed May 17, 2011). Wanhill, S. et al. 2008. Interpreting the development of visitor attractions: Managing visitor attractions. CT: Butterworth-Heinemann publishers. Williams, P. 2008. An article on segmenting the tourism market. (Online). Available from: http://www.insights.org.uk/articleitem.aspx?title=Segmenting%20the%20Tourism%20Market (accessed May 17, 2011). Read More