TANSEL TERCAN
(PhD.Student, L.N. Gumilyov Eurasian National University, Kazakhstan & Rixos President Astana, General Manager, tansel.tercan@rixos.com)
Abstract
The main purpose of the all-inclusive holiday is to minimize monetary transactions in the holiday experience. The ease of implementation of the all-inclusive system, the elimination of uncertainties and the fact that it is economic, is one of the reasons for the most mentioned preference in the related literature. Hotel businesses make concessions on the quality of the service due to the increased costs of the all-inclusive system, and the all-inclusive system greatly reduces the interaction between tourists and local residents. Another important negative result of the all-inclusive system is the increase of waste, especially food waste. Although the all-inclusive system has advantages and disadvantages, most hotel businesses nowadays follow an all-inclusive system policy. Therefore, the purpose of this study is to reveal the disadvantages and disadvantages of all inclusive systems in chain hotel enterprises. The study was carried out at 23 Rixos chain hotels operating in 7 countries. The data were collected from the managers of the restaurant and kitchen departments due to the issue of waste. Two questions were asked to managers: “what are the advantages of the all-inclusive system” and “what are the disadvantages of the all-inclusive system”. According to the results, all-inclusive system has advantage to increase customer satisfaction and to provide waste reduction in hotels. One of the disadvantage of all-inclusive system is increase in food waste.
Keywords: All-Inclusive System, Waste, Hotel Businesses, Tourism
1. INTRODUCTION
Due to the fact that the all-inclusive system makes some decisions about the money during the holidays, the distress caused by spending money eliminates the stress or confusion (Poon, 1998). The ease of implementation of the all-inclusive system, the elimination of uncertainties and the fact that it is economical, is one of the most mentioned reasons in the related literature (Duke and Persia, 1996; Tunca, 2004). Some other reasons for choosing the all inclusive system are that tourists can visit the region more efficiently during the travel at a certain time interval for tourists countries with long distance and different cultures can be visited more safely, as well as avoidance of unsafe money transport systems and suspicious hygiene standards, assurance of the fulfillment of services by the tour operator, offering of different package tour options, lack of language problem through the guides, the possibility of definite return back to home country, the pre-determined touristic expenses, the opportunity to visit different places
and to be cheaper than a trip to the same region on an individual basis, as well as providing personal and family security (Quiroga, 1990; Lai and Graefe, 2000; Wong and Kwong, 2004).
The all-inclusive system has advantages and disadvantages for the hotel as well as for tourists. While Royal and Brown (2000) evaluate the all-inclusive system applied in resort hotels and holiday villages as a temporary tendency to adapt to the market, Voss (2003) considers the all- inclusive system as a response to the demands coming from the demand side of the market and this trend will continue without losing its characteristic and estimates. Ostermaier (2003) emphasizes that the all-inclusive system is a very important tool for tour operators and hotel businesses.
Although the all-inclusive system has advantages and disadvantages, most hotel businesses nowadays follow an all-inclusive system policy. However, in the scope of chain hotels, there is limited study on the investigation of all-inclusive system within the scope of waste management. Therefore, the aim of this study is to reveal the advantages and disadvantages of all-inclusive system in chain hotel enterprises. Thus, it will be determined why chain hotels are working with the all inclusive system or not. Recommendations will be made for hotels and policy makers according to the results of the study.
2. THE EVALUATION OF ALL-INCLUSIVE SYSTEM
The effect of tour operators on the transitions of the hotel enterprises to the all-inclusive system is quite high. The all inclusive system is part of the package tours. Therefore, in order to understand the development of the system, it is necessary to first examine the history of package tours (İçöz, 2000). The first package tours were organized in 1841 by Thomas Cook to England. In this context, Thomas Cook can be considered as the first organized package tour organizer. Railways were used as transportation vehicles in the first package tours and accommodation package was not offered. Cook has included transportation, food and beverage, entertainment, an event and tour guide services to the price of the tours he has organized. The first important development in the name of package tours was with the arrangement of steamboat tours after the 1920s. The success of these tours has encouraged Cook to be held in the next rounds and diversified its service areas, making it the world’s number one travel agency.
The first applications of the all-inclusive system are found in holiday camps in England in the 1930s. In the mid-1950s, a holiday camp was established by the French on the coast of Majorca, a Spanish island, and the investor was obliged by the Spanish government to implement a single price prepaid for food, accommodation and other activities. In the following years, the idea of a single price, which included everything for the holiday, attracted much attention (Poon, 1998). Due to lack of environmental conditions and lack of activity, the first applications started in large hotels and palaces protected by high walls and wires (Yürik, 2002). Therefore, it can be said that the tourism industry after the 1970s has a very big development and it is undoubtedly related to package tours.
The British tour operators who made a package tour to the tourists with high income levels have also contributed to the evaluation of the all-inclusive system (Demir & Demir, 2001). The idea of an all-inclusive holiday has been carried by the German and Italian tourism businesses to Asia, Europe and Africa. For instance, major tour operators such as TUI, ITS and NIR own operating their Robinson Club, Club Aldiana and Club Calimera resorts in Turkey, Spain, Greece, Austria, Italy, Switzerland, Sri Lanka, Kenya, Canary Islands, Senegal, Tunisia, Ibiza, Thailand. These hotels operate as an all-inclusive resorts (Poon, 1998; Voss, 2003). As geographical distribution of hotels that operate with all inclusive systems, Europe and the Caribbean are the leading orientation centers. In the Europe Italy, Greece, Turkey and France are the countries with the highest proportion in all-inclusive resorts. Apart from these orientation centers, Central America, Mexico, Dominican Republic, Tunisia, Morocco, Thailand and Indonesia are all other countries with all-inclusive facilities.
3. POSITIVE AND NEGATIVE EFFECTS OF ALL-INCLUSIVE SYSTEM
For tour operators, the most important feature in choosing an all-inclusive system is the higher commission rate from the holiday package that includes all services (Turner and Troiano, 1987). Operators have increased their revenues by increasing the commission rate and adding the expenses they will make to the accommodation facility in the destination center in which the tourists will visit. Tour operators are wholesalers and commercial organizations that sell tourist products in packages. There are some elements that tour operators consider in choosing the orientation center in the touristic product package that they prepare according to the characteristics of the current tourism demand: convenient transportation possibility, economy, infrastructure, cultural and natural resources, cleanliness, safe accommodation capacity, etc. In this context, tour operators want to evaluate the tourism potentials in different regions of the world, which are cheaper compared to other tourism orientation centers. Particularly in the developing countries, it is possible for investors to partially assess the regions that are suitable for tourism, but the infrastructure of the areas outside these regions and the lack of economic and social development level are not suitable for tourists necessitates the all-inclusive system for these regions (Turner and Troiano, 1987).
It can be said that the most satisfied part of the all-inclusive system is the customers. It is stated that this system is more attractive compared to other systems (Voss, 2003). As tours are usually sold in weekly packages, customers will have the opportunity to make long-term holidays at affordable prices. In addition, because all the details of the holiday are already planned by the customer, the customers can adjust their holiday budget completely and accurately. This system is particularly popular with families with children. Families are tend to this system which does not incur extra costs with their children. A family does not know how much money they will spend on holiday with their child. However, families who have a holiday in the all-inclusive system are relieved of paying extra money for children’s different needs. They also don’t even need to pay for children in many all-inclusive agreements. There are also negative aspects of this system for consumers. Hotel businesses make concessions on the quality of service due to increased costs, and the all-inclusive system greatly reduces the interaction between tourism and the local community. In addition, visitors who spend their vacations with the all-inclusive system cannot find enough time to know the historical and cultural texture of the region they are visiting (Önal et al., 2006).
The opinions that advocate the all-inclusive system measure the success of the system by consumer satisfaction, not by the extra product sold. Increasing visitor satisfaction positively affects marketing activities and tourism revenues. In particular, different applications such as Ultra, Super and Maximum, which are diversified within the all-inclusive system, increase the attractiveness of the facilities that are all-inclusive. In addition to these advantages mentioned above, the increase in occupancy rates (Demir et al., 2001) and profitability ratios (Gökdeniz et al., 2000) in terms of hotel businesses are another positive aspect. Hotel businesses have chosen to implement all-inclusive system to increase profitability and achieve competitive advantage. Hotel businesses implement this system to provide ease of marketing, increase sales in order to reach the highest profitability, get advantages among the competitors in tourism market, offer holiday options to customers, provide services to be known in advance, advertising the business, easy control staff and product / service costs, a higher occupancy rate of the hotel, help tour operators and travel (Tuncer, 1997; Çorbacı, 2004). The all-inclusive system increases the occupancy rates of the hotel businesses and extends the tourism season between 15-30 days (Menekşe, 2005). As the all-inclusive system and hotel businesses have already sold unit activities within the package holiday, they can plan their investments and expenditures more easily by strengthening their financial structures by means of prepayments provided by tour operators (Poon, 2003).
Üner et al. (2006) summarized the positive aspects of the all-inclusive system as follows:
- In the hotel businesses that implement the all-inclusive system, the standard product scope is kept wide and a large number of support services such as water sports or a’la carte restaurants are also included. Thus, hotel businesses enriched by the all-inclusive system is able to respond to a wide range of consumer expectations.
- Despite the expansion in the scope of the standard hotel service in the business applying the all-inclusive system, it is suggested that all the guests who are staying are offered the operation to be more predictable and therefore manageable.
- Standardization of the comprehensive hotel service in businesses applying the all- inclusive system increases the control in terms of costs per person.
- Hotel businesses that implement the all-inclusive system obtain a competitive advantage against rivals that do not apply and raise their average income per room.
Difficulties in employing qualified labor force, difficulties in creating animation activities, difficulties in providing diversity in food and beverage services, increase in the number of families with children, shortening the service life of the service materials due to excessive use and the resulting costs, decrease in personnel motivation, negativity such as the prevention of creativity may be experienced in hotel businesses (Çorbacı, 2004). Inadequacies or delays in meeting customer requests can cause hotel busineses to confront with travel agencies and tour operators (Laws, 1997). Another problem caused by tourists staying all time in the facility is all elements in this system package are required to be available all time. Since the tourists are not going out of business, the depreciation rates of the businesses will be increase.
4. WASTE MANAGEMENT IN HOTEL BUSINESSES
According to Kirk (1996) waste management in hotel businesses is made for four main reasons. These are; the reasons arising from the legal regulations, the increase in the number of customers who are conscious of protecting the environment, the development of eco-tourism and the operating advantages arising from the savings. For these reasons, hotel management should be more careful about waste management. Because if a hotel does not allocate the waste at the source of random storage and then delivered to the municipality in this way there is a criminal sanction. This raises the costs of hotel business. In order not to be exposed to this situation, if the hotel business separates its waste from its source and applies waste management, it fulfills its legal obligations and avoids the costs of the penalty (Ramachandra, 2006: 4).
Each customer in the hotel generate average 1 kg waste per day (Pirani and Arafat, 2014: 320). Waste generation in hotel businesses can be change according to type of hotel, guest properties, guest and employee activities and occupancy rate (Pirani and Arafat, 2014: 322). However, insterestingly 80 % of the waste generated in hotel businesses is recycled waste (Hotels and Resorts, 2008). Each hotel has a different waste management approach. For instance, some collect only the debris that is formed at a single point without separating, while others do the sorting at the source to collect the appropriate substances for recycling. Whatever the size and operating system of a hotel business, it is necessary to establish a system to manage waste effectively in order to minimize costs (Owen et al., 2013: 2).
Recyclable wastes are another type of waste from hotel businesses. The separation and classification of plastic, metal, glass, paper and food solid waste for recycling purposes is of great importance for the protection of the natural environment. In order to ensure efficiency in recycling, the program should be developed and accordingly staff and customer participation should be ensured (Enz and Siguav, 1999: 74). For example, glass bottles from hotel bars, waste paper from the reception, or worn-out sheets are recycled waste.
5. METHODOLOGY
The aim of the study is to reveal the advantages and disadvantages of all-inclusive system in chain hotel enterprises. For this purpose, two questions were asked to managers as ‘what are the advantages of all-inclusive system” and “what are the disadvantages of all-inclusive system”. In this context, research is a qualitative research. The qualitative research is a qualitative study of qualitative data collection techniques such as unstructured observation, unstructured interview and document review, and a qualitative process for realizing facts and events in their natural environments in a realistic and holistic manner (Yıldırım and Şimşek, 2005: 39). The study was carried out at 23 Rixos chain hotels operating in 7 countries. These hotels and the countries where they operate are given in Table 1.
| Countries | Number | Hotel Name |
|---|---|---|
| Turkey | 1 2 3 4 5 6 7 8 9 | Rixos Premium Belek Rixos Premium Göcek Rixos Premium Bodrum Rixos Premium Tekirova The Land of Legends Kingdom Rixos Sungate Rixos Beldibi Rixos Downtown Antalya Rixos Pera İstanbul |
| United Arab Emirates | 10 11 12 13 | Rixos The Palm Hotel Rixos Bab Al Bahr Rixos Premium Dubai Rixos Saadiyat Island |
| Egypt | 14 15 16 | Rixos Sharm El Sheikh Rixos Alamain Rixos Premium Seagate |
| Croatia | 17 | Rixos Libertas Dubrovnik |
| Swetzerland | 18 | Rixos Fluela Davos |
| Russia | 19 | Rixos Krasnaya Polyana Sochi |
| Kazakhstan | 20 21 22 23 | Rixos President Astana Rixos Almaty Rixos Khadisha Shymkent Rixos Borovoe |
As shown at Table 1, research conductred wtih 9 hotels operating in Turkey, 4 hotels operating in the United Arab Emirates, 3 hotels operating in Egypt, 1 hotel operating in Croatia, 1 hotel operating in Switzerland, 1 hotel operating in Russia and 1 hotel operating in Kazakhstan. The data were collected from the managers of restaurants and kitchen departments via online form between 7 March 2019 and 21 April 2019.
6. RESULTS
The data collected were classified and analyzed in terms of advantages and disadvantages. In the context of advantages, the three statements obtained from the participants and considered important are:
- “Reducing the daily consumption costs of the establishments, especially the guest satisfaction and making them stable, and allow to re-use the remaining foods in the buffet and snack services”
- “It can keep the hotel occupancy rate high by season and region, it give the chance to catch different price advantages for the guests. Reduction of the number of employees in terms of business by increasing the profit margin with unqualified staff, food costs in terms of low costs, but the use of products to ensure high profit margin, diversification of product range advantages”
- “There are some advantages on high weight products at the product supply stage. In addition, the amount of spoiled product to be reduced”
In the statements of the participants, it is stated that there is no advantage of the all inclusive system 7 times. The answers of the participants about the advantages of the all inclusive system are classified in Table 2.
| Theme | Number of Repeat |
|---|---|
| Provides customer satisfaction | 9 |
| Reduces cost | 6 |
| Waste can be reduced by purchasing a high weight product | 6 |
| Increases occupancy rate | 5 |
| Provides quick service | 5 |
| Cost can be predicted | 4 |
| Provides competitive advantage | 2 |
| Increases product diversity | 2 |
| Increases job opportunities | 2 |
| Allows for the re-use restaurant food waste | 1 |
| Has advantage for recycling | 1 |
As it is seen at the Table 2, the participants stated that 9 times all-inclusive system provide customer satisfaction in hotel businesses. In the second place, it is stated that all-inclusive system reduces the cost in hotel businesses, and that high weight products can be purchase and this system reduce waste due to the planning. Thirdly, according to the participants, allinclusive system increases the occupancy rates of hotel businesses and provides fast service. Other advantages of the all-inclusive system specified by the participants are as follows;
- Cost can be predicted,
- Provides competitive advantage,
- Increases product diversity,
- Increases employment and job opportunities,
- Food waste can be re-used because of planning,
- Recycling is more efficient in all-inclusive system.
The data obtained about the disadvantages of the all-inclusive system are given in Table 3 with the repeat numbers. When the collected data are examined in the context of the disadvantages of the all-inclusive system, the three statements that are considered important are:
- “Quality problems arise with the use of low-cost products and the formation of unconscious consumers, proliferation of wastes can also be evaluated, the waste system can not be created, to increase unconscious consumer satisfaction of the product range ready and unhealthy foods, additive to the harmful direction of progress, the number of qualified members rapidly decline”
- “Decrease in quality, increase in rate of waste, decrease in income. If the expected service is not given, it becomes a disadvantage”
- “The amount of waste is increased as guests get more than they can consume. In addition, the waste of packaging and service materials increases as the amount of consumption increases”
| Theme | Number of Repeat |
|---|---|
| Increase in food waste | 17 |
| Increase in unconscious consumption | 11 |
| Reduced quality | 6 |
| Waste becomes more | 4 |
| Unskilled staff will be high | 4 |
| Cost will be increase with low quality product usage | 4 |
| Work intensity will be increase | 4 |
| Customer satisfaction will be decrease | 2 |
As seen at the Table 3, participants stated that the all-inclusive system increase food waste in hotel businesses (17 repeat). In the second place, it is stated that all-inclusive system increase unconscious consumption in hotel businesses. Thirdly, according to the participants, all- inclusive hotel businesses tend to reduce the quality and waste wil be more. Other disadvantages of the all-inclusive system specified by the participants are as follows;
- Unqualified staff will be high in hotel businesses,
- Low quality of product will be use in production and cost will be increase,
- Work intensity will be increase,
- Customer satisfaction will be decrease.
7. CONCLUSION AND RECOMMENDATIONS
The first applications of the all-inclusive system are found in holiday camps in England in the 1930s. In the mid-1950s, a holiday camp was established by the French on the coast of Majorca, a Spanish island, and the investor was obliged by the Spanish government to implement a single price prepaid for food, accommodation and other activities. In the following years, the idea of a single price, which included everything for the holiday, attracted much attention (Poon, 1998). The important negative result of the all-inclusive system is the increase of waste, especially food waste. Although the all-inclusive system has advantages and disadvantages, most hotel businesses nowadays follow an all-inclusive system policy. Therefore, the purpose of this study is to reveal the advantages and disadvantages of all inclusive system in chain hotel enterprises.
According to the results, it can be said that all-inclusive system can increase satisfaction in terms of customers, decrease cost in hotels and increase profitability and productivity and provide job opportunities for personnel. According to the results of the study, the majority of the participants stated that the all-inclusive system has an important role in reducing waste because the consumption can be estimated and bought with high weight.
Considering the disadvantages identified in the study results, it can be said that the customers in the all-inclusive system are tend to unconscious consumption in the hotel due to the fact that they have paid in advance and this in turn leads to an increase in food waste. Unconscious consumption also increases the intensity of work, so hotels begin to employ unskilled staff and as a result, customer dissatisfaction can occur. The research was carried out at 23 Rixos chain hotels operating in 7 countries. Data were collected only from kitchen and restaurant managers. In the future, the data can be compared by collecting data from both the chain and small and medium-sized tourism enterprises.
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