TOUR3008 Lecture Notes - Lecture 2: Outsourcing, Social Change, Intangibility

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8 Nov 2018
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Tour3008 service management in tourism semester 1, 2018. Engels theory (1857)- increased family income decrease percent spent on food, % stays same for household operations, % spend on education, healthcare etc increases- more money to spend on services. Services become more significant as society gets more wealthy. Western economies dominated service since 1950s: growth of service sector = more leisure time, increase social affluence, focus quality of life, higher life expectancy, technology, globalization, cheaper air travel, rise of developing countries. Some cultures consider good service more important than others. 3 disciplines: marketing: to define service and address customer needs, operations: develop delivery systems & environment, hrm: to ensure contact employees are able to deliver. Intangibility: difficult to perceive by senses (sight, touch, sound) Services & people are inextricably linked/ delivered to people by people. Inseparability: sales, production, consumption occur simultaneously (check-in at hotel) Perishability: once moment has passed can never come back.

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