Hrm Department Of Ace Travel

Published Date: 02 Nov 2017

1. Introduction

Business Insights is a private limited company which is as an ecommerce consultancy specialized in offering guidance to start and to establish the new companies in the market. This company is situated in Durbar Marg, Kathmandu, Nepal which was run and established by the 4 different share holders with the equal shares. This company has been running successfully for 12 years which contain 20 working members on a full time basis which work in various departments and all of them are focused to achieve the major goals and objectives of the company.

The main aim of this organization is to help those companies to focus and to develop by giving them the clear and defined target and plan on their objectives. Business insights equip different methods and technologies to those companies, which help to solve those incoming issues by analyzing and forecasting the necessary report and decision to those companies along with the complete overview of each topical issue.

Recently, a new potential client has arrived name "ACE Travel". ACE Travel is a new institute which needs the guidance on starting the company and investing the resource in an e-commerce website. As I have been appointed as an intern in Business Insights Company, the company has asked me to visit the director of the ACE Travel. I have to submit the report to the director of ACE Travel as well as to Business Insight before implementing and launching the business.

2. Planning of ACE Travel

Most travel agency act as an agent and work as a retail business. Helping the tourist by providing the travel related products and services to customers on behalf of suppliers such as transportation facilities like air, rail, coach, and car similarly accommodation of hotel, motel and lodge. This means that the company is involved in the planning, booking and documentation of travel arrangements for their clients. Meanwhile, Tours packages and other associated services like insurance, Foreign exchange are also involved which help the traveler to feel secure while traveling.

As the company is a large organization, it should contain different and separate functional area with different people working together in different department. It helps the organization to run smoothly and helps to ensure all business activities to carry out efficiently. The company should be separated in different department according to the core business function.

3. Core Business Function of ACE Travel

Figure : ACE Travel Core Business Function

3.1 HRM Department of ACE Travel:

HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training. (Susan M. Heath field)

The main job of HRM is to coordinate the corporation by ensuring the recruitment and training of the staffs. ACE Travel should hire a well trained HR manager who can recruit the candidates and can establish best policy and a framework. Meanwhile giving training to the staffs with personality development program and skills development according to the requirement of the organization helps the organization to develop and to run smoothly in the market which is the key for increasing the retention and reduce the turnover of the staffs.

Figure : Services to be provided by HR Management of ACE Travel

3.2 R&D of ACE Travel:

Research and development is another aspect for speeding the development of the organization. ACE Travel staffs should be train by Travel and Tourism Research Association which educates the members of ACE Travel in research of new destination, marketing and planning skills through publication, conference and with the help of network.

In this department the research team investigates the activities and program held in different parts of the country which helps the human resource management to provide the information of the market and the tourism products. Similarly the research association encourages the staff with tourism product planning and helps them to recognize in research and marketing excellence through its different programs.

Figure : Research and Development of ACE Travel

3.3 Finance and account:

Finance and accounting, it’s the most important part of the business function. All the subjects related to the cash depend on the finance and account section. So accounting and financing section should have the idea and knowledge on recording the financial data of the company. Finance staff job is making record of all the money transaction done by the costumer as well as the profit and loss in the company so that the senior managers know how much profit (or loss) is being made.

3.4 Marketing strategy:

Tourism business is based in attraction. Marketing team in the company should take responsibilities for all the attractions. While managing the attraction they should focus on strategically and tactical attraction, so the attractions can be tuned according to the taste of the tourists. They need to focus on all the four products of attraction which every tourist wants to taste while visiting the places i.e. enjoyment, entertainment, amusement and educate. If the marketers have the knowledge of the different segments of the tourists then the marketers can formulate those products. These things can be done by Advertising, Personal Selling, Direct Marketing, Events, and Internet Marketing.

Figure Attraction of Marketing Product

3.5 Administrator and IT

Administrator in ACE Travel is very important for handling, planning and controlling all the work, leading the staffs of the company with the help of Information Technology. ACE Travel should adopt this method to enhance their competitiveness, new management and business which can be applied for gaining competitive advantage, improve productivity and performance, managing the organization in a new way. New computer system can be built which helps to build up the performance of the business as well as improving the performance of the costumers.

4. Aims of ACE Travels

Ford (1980) suggests that companies pursue relationships with other companies to obtain the benefits associated with reducing their costs or increasing their revenues. By entering into relationships, organizations hope to gain stakeholder satisfaction and loyalty while stakeholders look for quality (Evans & Laskin, 1994).

Certain aims are there which should to be take care by the company. For accomplishing those aim the company has to make a good relation with the other companies and with the local people of the markets. This helps the company to provide all the needs required for a traveler and providing the perfect travel experience to the tourist. All the peoples, businesses, etc which are attached virtually or physically are the stakeholders of the company.

4.1 Providing local groups and local services

Local group leaders should be hired more than in the trips, and the company should aim to use local guides and should support by providing employment for local communities. Local people got all the cultural and history knowledge of that place which make the tour more interesting. So long-term relationships should be developed with the local suppliers, by working closely with them that develop new products and the services and the staff should provide training to ensure the economic benefit is still in progress.

Figure : Stakeholders in tourism planning process (Yigitcanlar, 2009)

4.2 Maintaining relation with Stakeholders

Sooner or later stakeholders dealing with tourism, if medium and long-term oriented, understand that their "capital" is not only their investment and infrastructures, but also the natural and cultural environment. Therefore, they start considering tourism development in a more sustainable way. (United Nations Environment Programme, 2009)

Tourism can affect the destination in short and long term by economic, socio cultural and environmental. So consideration should carefully be made while making planning by ACE Travel. Meanwhile there are many advantages and disadvantages in the stakeholders while making decision. That leads to both positive and negative effects, which are determined largely by the effectiveness of research.

During engaging and reporting the research of the report the general community should take part in the researches which make them to think about the issues and helps them to participate actively in the projects. Some stakeholders may not have the time in developing community based programs around tourism in their community. That does not mean that it will not affect them, they will not be separated from the decision-making process and probably they will be accepting any negative resulting effects.

5. Introducing E-commerce System

E-commerce has altered the practice, timing, and technology of B2B and B2C markets, affecting everything from transportation patterns to consumer behavior. (By Chris G. Christopher, Jr)

Tourism industry depends on internet, all the related works of travel agencies are run through the internet. Electronic commerce is relatively a new economic category which has been launched recently in the market. There are both benefits as well as risk of including e-commerce based business model in an organization.

5.1 Impacts of e-commerce system in ACE Travel

Ecommerce system will carry out the business of ACE Travel without concerning about time and distance meanwhile the costumers can log in to its website whenever they wish and can collect the formation. By introducing this system it helps to eliminate the processing errors and make faster and convenient for the visitor.

The ACE Travel can reach to the much wider customers with the help of the site i.e. it can sell their products/services worldwide instead in limited to one place. This helps to lower the running cost while comparing it in land based similarly the money can be saved by decreasing the cost from preparing and correction the documents, mails, telephone calling etc.

5.2 Risk that can affect on the ACE Travel

There is a chance of leak of organization information and that of intellectual property from internal staff and trading partners. Similarly sensitive information can be difficult to handle by third parties or contract workers of ACE Travel. Hacker can easily cause errors in web applications and in technical implementation; result could be chances of attack by virus which may change images and information of organization websites. ACE Travel reputation may get damaged by which the company has to will face embarrassment.

5.3 Small case study on eBay

While launching the eBay the company has suffered from huge damage from valuing the company too highly. The eBay marketplace was well known for its core service which enables sellers to list the items for sale on an auction or fixed price. Opportunity was given to buyers for the bidding and to purchase items according to the interest.

Software tools was provided particularly for frequent traders including Turbo Lister, Seller’s Assistant, Selling Manager and Selling Manager Pro, which help automate the selling process; the Shipping Calculator, Reporting tools, etc. Today over sixty percent of listings are facilitated by software, showing the value of automating posting for frequent trading. To control fraud eBay has developed ‘Trust and Safety Programs’ which was particularly important to reassure customers since online services are prone to fraud. For example, the eBay feedback forum can help establish credentials of sellers and buyers. There is also a Safe Harbor data protection method and a standard purchase protection system.

The risks after conducting business internationally by the eBay company:

Difficulties in integrating with local payment providers, including banks, credit and debit card associations, and electronic fund transfer systems.

Different employee/employer relationships and the existence of workers councils and labor unions.

Difficulties in staffing and managing foreign operations.

Longer payment cycles, different accounting practices, and greater problems in collecting accounts receivable.

Potentially adverse tax consequences, including local taxation of our fees or of transactions on our websites.

Expenses associated with localizing our products, including offering customers the ability to transact business in the local currency;

6. Global impact of e-commerce on the society:

There are many issues that one must assess when a investor thought of an ecommerce company to his or her business. The global market of ecommerce is in developing stage although there may seem a basic important of web designer but it is necessary to evaluate the other aspects of the platform. Each nation has a different legal system so the evaluation of the ecommerce business should be done in a global point of view. Ecommerce investor must look for the basic infrastructure because some countries use dial up phone lines, while others have more advanced forms of networks.

In addition to the Internet, different technology gadgets like mobile phones, GPS’s, smart phones and hand-held devices have improved consumers’ tours and travel experiences. Accessing the information regarding travel, destination, bookings, payments, hotels, attractions, and the quality of maps are easy by the help from the modern technological devices.

Positive Effects

Negative Effects

Convenience

Unemployment

Helpful for disables and aged people

Increase in crime

Time saving

Health concerns

Information availability

Natural causes

Helpful for new business

Loss to retailers

Jobs for society

Wrong information

24 hour service

Returns and complaints

Fig: some positive and negative effect of ecommerce on society

Local travel agents use the global distribution system which adjust the marketing strategies and expanded services to increased competitive advantage.

Convenience

E-commerce is very convenient for customers; because it accepts different type of credit and debit cards and as many other forms of payment as possible. customer don’t need to go anywhere for payment ,they can carry many items in stock to avoid backorder ,it is often convenience because the order goes hand in hand with in timelines to customer.

6.1 Enhancing local business:

Most businesses are carried outside of the trading area i.e. across the globe. However in some cases the services offered require a local presence to fulfill, for example a hair salon, day spa, landscaper, or garden center. As one of those merchants realistically can’t deliver on the transaction. In this article we will be looking at those situations and ways local merchants can get income from customers outside of their trading area.

If you are a business that provides a service that is local and requires your physical presence, to complete the sale, eCommerce is something of a double edged sword. It can expose you to a wider audience, however it’s an audience you can’t convert into a customers due to the difference in location. However there are ways you can extract income from these sources.

Local travel agents will upgrade themselves to exist in the competitive market by adopting new business strategies and technology.

Development in new products and destination:

Travel agents can identify people preferences by interacting with them. This will help travel agents to design new product and explore new destination.

Efficient and Service oriented:

Existence for the fittest if we are not efficient with our service there will be ample of option for customers. Thus customers will be offered by the best possible services.

Advancement in technology:

Market needs brings alternative. When there is an interaction we will be exploring to new technologies which will be the market need. E.g. The current rapid development in ISP as well as telecom industry in Nepal resembles that with the interaction with the outer world there was demand for various facilities in this two sector which as a result uplifted us with advance technology.

Sometime family or friends will want to buy gift for others who they no longer live near, and giving them the ability to purchase gift certificates online is an excellent opportunity to generate additional income. Children who have grown into adults, but no longer live in the same area as their parents still need to buy gifts, and those buying a gift certificate to a hair salon or day spa for Mother’s Day are a perfect example of a customer who is outside of your trading area. Setting up and maintaining a gift certificate program will create some additional work if you don’t have one in place. However since it can be used by locals too, it almost certainly is worth doing. Some jurisdictions do have regulations about gift certificates that are "inactive" for over a year, so be sure to investigate if this applies to you.