Stages and Flows in the Tourism Service Supply Chain


energy...) for the chain, but with limited research capacity, the topic limits the research on the DVDL supply chain starting from the DVDL suppliers (first-tier suppliers); 2) The tourism enterprises, considered the focal enterprises of the DVDL supply chain. The tourism enterprises will purchase the DVDL from the DVDL suppliers and perform the function of building, selling and organizing the implementation of part or all of the tourism program for the tourist area. Thus, the tourism enterprises will regulate the operations of the entire chain if the coordination capacity of the tourism enterprises is good. With the needs of the tourist area, the tourism enterprises design and build tourism products by signing transaction contracts with the DVDL suppliers so that they are suitable and effective. Conversely, with the DVDL of the DVDL suppliers, the tourism enterprises can also build and design into synchronous, synthetic or individual SPDLs to invite the tourist area;

3) The DLLH are intermediary distributors who sell tourism programs to the tourism enterprises and the DLLH have signed travel contracts with the tourism enterprises. Thus, the thesis will study the tourism service supply chain including:

Supplier

DVDL

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Business

travel

Stages and Flows in the Tourism Service Supply Chain

Travel agent

Figure 2.2. Scope of the DVDL supply chain in the thesis

Source: Author's synthesis

In the process of studying members participating in the supply chain, there are a number of questions that arise when considering members participating in the supply chain: Is KDL a member participating in the supply chain? The answer may be "No" because KDL is the one who provides information about the demand for DVDL, the demand for SPDL so KDL will be related to the demand issue. However, in essence, this is also the fundamental difference between the DVDL supply chain and the supply chains of tangible goods. In the tangible goods supply chain, the core function of each member is to supply 1 or a few products transformed into final products and customers do not supply anything related to those products. Thus, customers will create "demand" but not "supply". Therefore, it is understandable that in the tangible goods supply chain, customers are not members participating in the supply, not "supply".

However, in the general service supply chain and in the service supply chain in particular, customers in the service supply chain simultaneously participate in the product supply process with service providers.

In the process of suppliers producing service products, customers are co-producers. Customers will, together with service providers, transform goods and service into tourism products. Thus, if in the normal supply chain of goods, it is possible to separate customers who are not participating members


In the supply chain, the customer is an indispensable member in the supply process.

However, customers are a “special member” of the DVDL supply chain. Because this member includes both supply and demand characteristics. The benefit that customers contribute to the DVDL supply chain is that they act as the main purpose for the supply activities of the DVDL supply chain.

Thus, it can be seen that the DVDL supply chain includes many participating members. Within the scope of the research, the thesis only focuses on studying 3 groups of members of the supply chain to create a complete tourism product that satisfies the needs of tourists: DVDL suppliers, tour operators and tour operators (Figure 2.1).

2.1.2.3. Stages and flows in the tourism service supply chain

From the combination of both demand-side and supply-side perspectives, in Figure 2.3 there are three main flows including: physical flow (Zhang et al., 2009), information flow (Bigné et al., 2008) and customer flow (Djordevic and Arsić, 2010).

The general model of the DVDL supply chain (Figure 2.3) shows the components and flows in a typical tourism supply chain that can be divided into three stages: pre-trip, during-trip, and post-trip.

+ Phase 1: Before the trip

First, after recognizing their travel needs, customers search for information through sources such as the Internet, travel agents or travel businesses, etc. After obtaining information and considering their travel needs, customers proceed to book their trip. Then, they can pre-book their trip (entirely or individually) with travel agents or with travel businesses. In addition, tourists can also pre-book services directly with service providers such as transportation services, accommodation services or tourist accommodation services or tourist attractions. In this stage, tourism enterprises play a key role in coordinating and ensuring the appropriate supply and demand (Piboonrnugroj and Disney, 2009).

+ Phase 2. During the trip

The second stage involves the coordination of all suppliers in the supply chain. The first and second tier suppliers play an important supply role. In which, the first tier suppliers provide services directly to tourists; the second tier suppliers provide resources for tourism activities. In this stage, the tourism enterprises are responsible for monitoring, ensuring that services are performed as committed and coordinating activities among the three parties for seamless and effective chain operations (Piboonrnugroj and Disney, 2009).

+ Phase 3: After the trip


Input suppliers

Food and Beverage

Equipment

Water Management

matter and energy

waste

Freight

Arrange to move

Direct access through the network

Through travel agency

Travel Service Providers

Accommodation

Transport

Fun, entertainment

Through travel agency

Service business establishment

Service provision

Customer flow

Customers (Tourists)

Passenger transport (air)

Passenger transport (road)

Passenger transport (air)

Material flow

Information stream

After the trip ends, a number of activities occur between tourists and tourism service providers or travel businesses. These activities include exchanging information about the trip, handling situations that need to be resolved during the trip or thanking customers to adjust the implementation of marketing strategies for future trips (Piboonrnugroj and Disney, 2009).



I. Before the trip

II. During the trip

III. After the trip

Source: Piboonrnugroj and Disney (2009)

Figure 2.3. Tourism service supply chain model


Thus, to create a complete package tour, the activities of the tourism service supply chain need to be studied to satisfy the synchronous and comprehensive needs of tourists. In particular, the benefits of members participating in the supply chain not only bring added value to tourists but also bring profits to each member business. Therefore, studying the members participating in the chain and measuring the activities of the supply chain are extremely important not only for academic researchers but also for entities participating in the tourism service business.

2.1.2.4. Relationships between members in the tourism service supply chain

It can be said that one of the important characteristics in the supply chain that helps the chain to operate is the contractual relationship between members in the chain (Cho, 2004). According to Malhotra et al. (2005), members in the supply chain participate in the process of linking together to facilitate the sharing of useful information and build an information technology infrastructure that allows the processing of information obtained from members to create new knowledge that is richer and more diverse. Similarly, Bowersox (2003) also argues that the benefits of linkage are to increase revenue, reduce costs and increase flexibility to cope with uncertain demands. Unlike manufacturing activities, in the tourism industry, the production and consumption of tourism products occur simultaneously at each link in the chain.

According to Piboonrnugroj and Disney (2009), in the DVDL supply chain there are the following two groups of relationships: horizontal and vertical:

- Horizontal: Is the relationship between enterprises at the same level of the supply chain (Barrat, 2004). Although enterprises in the same field can be considered competitors when providing similar products. However, they can still link up to increase their bargaining power with a common supplier or gain benefits from economies of scale (Mentzer et al., 2001). Horizontal relationships in the tourism supply chain can occur between enterprises in the same industry - between an tourism enterprise and another tourism enterprise or other tourism suppliers. In which, inter-industry relationships are between enterprises in different fields but related in the same layer, between accommodation service establishments and enterprises providing entertainment services to guests (Zang et al., 2009).

- Vertically: It is the relationship between DNLH and suppliers of DVDL and DLLH, sharing information and resources; sharing responsibilities and risks; sharing goals and ideas, creating common knowledge and synchronizing decisions. Therefore, the relationship


This relationship between members aims to reduce chain costs, create consistency in chain operations and provide timely and complete information to members.

Tier 2 Supplier

Thus, within the scope of the thesis research, the thesis author aims to study the members participating in the chain and measure the performance of the tourism supply chain. That is, the relationship considered is a vertical relationship. Specifically, the relationship between travel businesses and tourism service providers and travel agents. That relationship is modeled by the thesis author:

Relationship with

supplier

Other DNLH

Industry Relations

DNLH

Interdisciplinary relations

Tourist destination

DNLH Supply Chain

Tourist

Contact with DLLH


DVDL CC House


Travel agent

Class Provider

Figure 2.4: Supply chain model of DNLH in the DVDL supply chain

Source: Author's synthesis


2.2. Theory of tourism service supply chain performance

2.2.1. The nature of supply chain performance

Performance is a rather complex concept (Gillmour, 1999). The nature of performance is expressed in three contents: First, the relationship between the results achieved by a system and the set goals. Typically, the relationship between customer satisfaction and the resources used to satisfy that need (Logeaux, 1994). Second, the relationship between the implementation effort and the total resources deployed on an enterprise's activities. On the one hand, it is the real unit value that customers receive in the form of use value. On the other hand, it is the completion of the set goals at lower costs (Gillmour, 1999). Third, the set goals are achieved at lower costs along with the satisfaction and motivation of each member in the organization being improved. Therefore, this content is closely linked to customer satisfaction and the results obtained by the enterprise (Colin J, 2005).

According to Mendoza and Bescos (Mentzer et al., 2001), the nature of performance is meaningful and important to the enterprise. Because, clearly defining the nature of performance helps the enterprise increase value at reasonable costs and achieve strategic goals. Therefore, the performance of the enterprise is determined based on value, cost and strategic actions. According to Noyes and Peres (2007), some bases for determining performance are: quantitative financial and economic factors; factors that bring satisfaction to customers and factors in the social aspect, bringing benefits to the community.

Thus, the performance of an organization is understood as the result of the total activities of the organization determined based on a system of performance indicators combined with decisions and goals. This system allows the enterprise to understand the current operating situation and have directions for future activities (Warren H. Hausman, 2004).

Nowadays, it has been recognized that one of the key factors that help businesses increase their competitive advantage is the performance of the supply chain (Christopher, 1998). To measure the performance of the supply chain, many researchers have conducted measurements (Beamon, 1999).

In Hausman (2004) study, supply chain performance refers to the extended activities of the supply chain such as: product availability, on-time delivery, inventory and capacity required in the supply chain to provide customer satisfaction. Supply chain performance transcends the boundaries of a business and transcends some traditional internal functions such as procurement,


distribution, marketing, sales. Therefore, to have good competitiveness, the supply chain needs to improve and enhance continuous chain performance. To achieve this, businesses need chain performance measurement scales. However, within the scope of this thesis, the author only focuses on analyzing the members participating in the supply chain (suppliers, suppliers and distributors) and clarifying the measurement factors and factors affecting the supply chain performance in order to improve the supply chain performance.

2.2.2. Factors for measuring tourism service supply chain performance

Supply chain performance measurement can be considered as an approach to evaluate the performance of a supply chain system. Supply chain performance measurement is described as a comprehensive set of factors used to quantify performance (Pasutham, 2012). And according to Sink and Tuttle (1989) “you cannot manage and improve what you cannot measure”.

Measuring supply chain performance is an important issue that needs to be considered in any supply chain in the market. (Rahiminezhad Galankashi and Helmi, 2016). Because today, competition is no longer just between companies (Sahay and Mohan 2003) but instead is the competition of supply chains in the market, to meet the increasing demands of customers (Thirumalai and Sinha, 2005). Therefore, it is important to measure the performance of the entire supply chain instead of individual members participating in the chain (Behrouzi and Wong, 2013).

The purpose of the thesis is to study the operation of the DVDL supply chain, in which measuring the performance of the DVDL supply chain will be one of the important contents to build a basis for evaluating the results of the DVDL supply chain in the Red River Delta and the Red River Delta. Therefore, studying the theories of measuring the performance of the supply chain has profound significance and is closely related to the content of the thesis.

Over time, supply chain performance measurement has gone beyond measuring a single firm's supply chain, and has been viewed and measured as a whole (Santos and Leite, 2016).

In fact, research and documents measuring the performance of the production supply chain have been conducted and implemented in many places in the world. However, research on measuring the performance of the production supply chain has been limited.


(Yilmaz et al., 2006). Among them, studies on supply chain performance often focus on the hotel industry (Yilmaz et al., 2006).

Several studies have mentioned that the performance of the DV supply chain in general and the performance of the DVL supply chain in particular are influenced by certain factors. Yilmaz et al. (2006) identified two factors that are considered key to measuring the performance of the DVL supply chain, including: satisfaction and internal supply chain. In which, satisfaction is considered a factor measured from outside the supply chain and internal is a factor measured from inside the supply chain, including financial factors, costs, etc. Vorst (2006) believes that measuring the performance of the supply chain through two factors: financial and non-financial to achieve a balance of these two factors along the supply chain operation is necessary. In which, the financial factor is mentioned by the author in terms of cost and profit aspects and the non-financial factor is mentioned by the author in measuring customer satisfaction in ensuring product safety and environmental friendliness.

Inheriting and developing from the research of Yilmaz et al. (2006), Zhang et al. (2009) determined that measuring supply chain performance is not only necessary for supply chain management but also affects the activities of all members participating in the chain and thereby evaluates the efforts of each member in the supply chain. According to Zang et al. (2009), measuring chain performance does not stop at measuring financial or operational factors but also needs to pay attention to non-financial factors such as customer satisfaction - an important factor to measure the performance of the DVDL supply chain. The research of Fantazy et al. (2010) puts forward the view that, although many authors have emphasized customer satisfaction in the hotel industry, the efforts for such studies are still limited. In other words, research on the DVDL supply chain in general is still limited, especially measuring customer satisfaction in the supply chain. Therefore, in their study, Fantazy et al. (2010) measured the performance of the DVDL supply chain in the hotel industry, including both financial and non-financial factors. In which, the financial factor is measured by net profit value, the non-financial factor is measured based on the aspect of customer satisfaction.

In addition, in his study, Piboonrnugroj (2012) built a theoretical framework for the DVDL supply chain. In it, the author also proposed a number of factors to measure the performance of the supply chain including: finance, customer satisfaction, operations and development. With his study, Tigu et al.

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