Revenue management strategies

Revenue management has been deemed to consist of the various significant tools that usually address some of the existing challenges facing visitor attractions. The article has extensively identified evaluation practices regarding the adoption policies of revenue management strategies. By the available Scottish visitor attractions (Allahar, 2015).  It is evident that in as much as there is a high potential capability for the available Scottish visitor attraction sites to incorporate the generated revenue operation management practices, modern era utilizations constrained in accordance with the operations scope and limitations.

Some of the operations management procedures that are recommended in countering the current issues facing visitor attractions are the use of price differentiation and the adverse control of revenue generated data set. These recommendations are rampant across the entire visitor attraction sector.

A challenge facing visitor attraction includes charging of higher entry prices. Some attraction sites overcharge the customers hence making it difficult for their admission. The high levels of turnover rates usually affect the more improved revenue management operation practices. This has contributed to increased fraudulent activities and misappropriation of funds.

The existing visitor attractions usually tend to form a significant sector of the ultimate tourism domain. It is evident that this sector has been under maximum pressure from both internal and external operating management environment. Some of the vital problems facing internal surrounding of the attractions include the rampant changes in the societal subculture and extreme consideration of various firms that highly focus more on the income generation (Connell, Page, & Meyer, 2015).  This leads to unnecessary interference by the political organization s hence leads to pressure. Conversely, this prevailing pressure has risen on various attractions to effectively operate and ensure complete management of the funds. Other key current challenges facing the sector include lowering the availability of public finances and maximized requirement to highly evidence the core value and also challenges involving low diversification of product providence.

As a matter of fact, the visitor attraction concept has always been challenging in designing key knowledge and skills thus remaining greatly understudied.

Several researchers across the domain argue that the complex approaches to fund management practices are not being carried out in the visitor attraction sites (Jönsson, 2017).  In addition, the destinations have low probability to take an optimizing responsibility as a result of a paucity of less visitor information and extremely reduced quality of operation management existing across this particular area.

Demand for important services meant for visitors usually varies from time to time as they are limited. This makes them be less manageable and controllable during keeping of records since the variations are quite unpredictable. For instance in Scotland, the few attractions destination has been largely capitalizing on the low opportunities that exceed the outcomes of the management system (Leask, Fyall, & Garrod, 2013). This difficult issue has been seen to result from the lack of use of low technology levels required to offer help to the operation management practices. There has also been lack of technical skills or a low number of employees who have minimal knowledge and skills that prevent the accomplishment of activities and drag future long-term goals. Another problem is the lack of strong communication and transport system.

Price differentiation and data set control

In addition, there is a challenge of seasonality. The issue of seasonality has been identified as a challenge that is facing tourism destination in different areas (Insch, 2011). Different authors have indicated that seasonal reduction in the field of tourism attraction causes the spatial and social-cultural frameworks within the visitor’s places. There are those marketing approaches which have been formulated to deal with off-peak and seasonality. Therefore, the issue of seasonality has been portrayed as a tourism challenge. This has been enhanced by increased demand which works to control the fixed supply in tourism activities. Generally, controlling and dealing with seasonality tends to be a technical challenge that affects the management phase comprising the operational management and revenue management (Mayaka & Prasad,2012).Managers develop tools which are necessary to eliminate tourism challenges which tend to reduce the number of visitors in different destinations. Seasonality and responses in attraction fields form limited area within the tourism research. There are different condition issues which affect the seasonality in countries such as Scottish. These factors affecting seasonality relate to various aspects of attractive destinations and issue of marketing mix which is exhibited in tourism centers. Also, the issue of local community in the provision of tourism helps in availing potential market that is viewed as the basis for attraction outside the peak season.

Also, another challenge which facing attraction site is the increased competition from other leisure areas and visitor expectations (Sovacool & Bulan, 2012). The tourism industry is highly affected by competition. There are those aspects which constitute competition. Three is competition from different countries which are offering tourist attraction activities. Countries such as Switzerland tend to have more tourist centers which have beautiful sceneries.

In addition, there is also the issue of infrastructure which has posed a challenge to attraction centers. There some areas which cannot be easily accessed due to poor transport networks in different nations. Some areas are not well developed and that’s why they experiencing a small number of visitors (Sovacool & Bulan, 2012). Those attraction centers which are far away from accessible transport networks tend to receive a small number of visitors.

The operation manager of these visitor attraction destinations have immediately responded to these problematic upcoming issues by growing and developing an extensive product offering and inlet streams of the total revenue generated (Stienmetz, & Fesenmaier, 2015).  The executive operations management system has recommended the utilization of high complex pricing techniques and also the diversification strategies meant to ensure effective communication with prospective visitors. The problem of visitor attraction in utilizing the aspects of price differentiation is the manner required in the presentation of price variation as merits and not using the available premiums.

In order to handle the seasonality challenges associated with attraction centers, there are a lot of factors which are needed to emphasize on. Emphasizing on attractions on the key events which are open to the public and appreciate the role of local residents on availing adequate market for tourism will assist in eliminating off-peak. For example, the article used has included the importance of the local market to deal with issues of off-peak. Also, the community within a certain destination should work to drive destination development so as to reduce seasonality challenges in attraction centers (Stolarick, Denstedt, Donald, Spencer, 2011).

I can recommend that future operation management systems in the visitor attraction should have high calibre employees who have been extensively trained on the incorporation of both analytical and information technology advancement. There is a need to improve the market segmentation and maximize on the visitor attraction capacity allocation. This is done in order to ensure that tourism firms are able to effectively plan and develop the destination operations.

Also, the other issue which should be done to control challenges in attraction centers is the issue of revenue management. The aspect of revenue management is defined as the key tool that will assist in eliminating attraction centers problems. Use of revenue management strategies will form apt debate that explains the suitability and applicability of attraction centers (Yang, 2012).The insight revealed by the use of revenue management will enhance the future advancement in attraction centers. Some countries such as Scottish have embraced revenue management which tends to control the pricing, value and visitor experience in attraction centers. Visitor attraction has influenced the response for diversification thus encouraging commercial practices that creates awareness on visitor needs. Investment on resources and the increased role for operational management has increased the revenue management practices. The increased role of ownership management has also participated in revenue management in attraction centers.Use of available technology aspects such as ICT tends to support revenue management thus eliminating challenges experienced in attraction areas (Yang, 2012).

References

Allahar, H. (2015). Small island visitor attractions: A development process framework. SAGE Open, 5(1), 2158244015577113.

Connell, J., Page, S. J., & Meyer, D. (2015). Visitor attractions and events: Responding to seasonality. Tourism Management, 46, 283-298.

Insch, A. (2011). Conceptualization and anatomy of green destination brands. International journal of culture, tourism and hospitality research, 5(3), 282-290.

Jönsson, C. H. (2017). Visitor Management in Tourism Destinations, JN Albrecht (Ed.). CABI, Wallingford (2016), 208pp.,(Hbk.),£ 80 ISBN: 9781780647357.

Leask, A., Fyall, A., & Garrod, B. (2013). Managing revenue in Scottish visitor attractions. Current Issues in Tourism, 16(3), 240-265.

Mayaka, M. A., & Prasad, H. (2012). Tourism in Kenya: An analysis of strategic issues and challenges. Tourism Management Perspectives, 1, 48-56.

Sovacool, B. K., & Bulan, L. C. (2012). Energy security and hydropower development in Malaysia: The drivers and challenges facing the Sarawak Corridor of Renewable Energy (SCORE). Renewable Energy, 40(1), 113-129.

Stolarick, K. M., Denstedt, M., Donald, B., & Spencer, G. M. (2011). Creativity, tourism and economic development in a rural context: The case of Prince Edward County. Journal of Rural and Community Development, 5(1).

Yang, L. (2012). Impacts and challenges in agritourism development in Yunnan, China. Tourism Planning & Development, 9(4), 369-381.

Stienmetz, J. L., & Fesenmaier, D. R. (2015). Estimating value in Baltimore, Maryland: An attractions network analysis. Tourism Management, 50, 238-252.