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The Strategic Imperative of Recognised Leadership in the Travel and Tourism Industry

by Oliver Martin, Partner, Twenty31 Consulting (24 August 2016)Recognised Leadership: OliverMartin

The need for leadership in the travel and tourism industry has never been more critical. As a society and industry, we are grappling with large scale global and regional challenges – climate change, over-crowding at tourism sites and the resulting strain on infrastructure and social and economic inequality in many destinations – that require a new type of leadership from truly progressive entities.

Most governments appear unwilling or unable to lead, especially National Tourism Organisations (NTOs) needing to follow agendas dictated by national governments. Civil society, while highly engaged on sustainability issues, typically does not have the scale or infrastructure to deliver the required change. And multilateral associations, including the UNWTO, seem to be beholden to the political whims of national members.

Despite low levels of consumer trust, all arrows point to more committed and effective leadership by travel and tourism businesses as one of the key engines to drive more sustainable and prosperous destinations. This is in the self-interest of global travel and tourism companies as well – a global company can’t be successful and profitable in a chaotic world.

The return on investment of progressive corporate leadership has, in many cases, been underwhelming. Despite the promise of strong social and environmental performance to drive business value, i.e., enhanced reputation and brand equity, stronger policy influence, deeper travel consumer and shareholder loyalty, increased market share, and greater talent attraction/retention – all too often there have been obstacles between a travel and tourism company’s commitments and the promised benefits.

Twenty31 Consulting recognises that one of the fundamental obstacles to creating more value for the enterprise from its sustainability and CSR strategy is the limited understanding and appreciation a company’s customers (i.e., travel consumers) and stakeholders have of these commitments. Without stronger engagement and recognition of a company’s commitments, business value remains limited. The solution can be found in building and nurturing the concept of recognized leadership, pioneered by global reputation and sustainability experts, GlobeScan.

Why recognized leadership in the travel and tourism industry? It can be argued that the only type of leadership that is enduring and can stimulate positive change is one that is recognized. Recognized leadership delivers value to the business in multiple forms: it inspires industry stakeholders; it creates virtuous competition among competitors, and it turns trust deficits into surpluses – which in turn drive business from high-value travel consumers.

The simple but potent insight here is that in order to accrue the benefits of enlightened commitments, travel consumers, travel trade and industry stakeholders need to understand what you stand for as a business and how you are executing on your corporate purpose. Collectively and in general, travel and tourism companies have done a poor job engaging with their Recognised Leadershipemployees, travel consumers, suppliers, communities, investors and NGO partners in this area around a shared vision and benefits. This goes well beyond marketing and communications and way past PR (where unfortunately many travel and tourism CSR and sustainability programmes reside).

Recognized travel and tourism leadership requires the thoughtful alignment of a number of moving parts that includes strategic vision, integrated performance and communications/engagement. A PR or branding campaign is insufficient to deliver recognized leadership without it being tied deeply into business performance. Sustainability and CSR initiatives must be credible and measurable. Similarly, strong vision and performance is an insufficient approach if it lacks a way to connect with travel consumers, travel trade and stakeholders more deeply.

According to our research, travel and tourism companies such as Jetwing Hotels, Intrepid Travel, The Travel Corporation, Soneva Resorts, and Taj Hotels Resorts and Palaces have taken a more holistic approach to vision, performance and engagement and are driving the agenda and increasing business value.

Our approach is to build recognized leadership strategies based upon a clear assessment of the business context and through primary research and internal and external stakeholder engagement. The challenge is to develop an integrated strategy that manages risks, optimizes opportunities and community contribution, as well as best captures the imaginations of travel consumers, travel trade and broader stakeholders – all this in ways that build positive recognition for the company, which closes the loop on business value and in turn leads to greater social impact as the company derives greater economic and social benefits.

The world is on the cusp of a new era of corporate engagement that will fulfil many of the promises of the business case for corporate sustainability. We have a better understanding of the challenges we face and the actions required to secure a better world. Recognized leadership can help progressive travel and tourism companies mobilize their capabilities for a brighter and more sustainable future. The Pacific Asia Travel Association (PATA) can also play a role given their unique role facilitating engagement between business and government.


Disclaimer: The views, opinions and positions expressed by the author(s) and those providing comments on these blogs are theirs alone, and do not necessarily reflect the views, opinions or positions of the Pacific Asia Travel Association (PATA) or any employee thereof. We make no representations as to accuracy, completeness, timeliness, suitability or validity of any information presented by individual authors and/or commenters on our blogs and will not be liable for any errors, omissions, or delays in this information or any losses, injuries or damages arising from its display or use.