TOURISMSUPPLYCHAINS:ACONCEPTUALFRAMEWORK PairachPiboonrungroj1andStephenM.

Disney2 LogisticsSystemsDynamicsGroup, CardiffBusinessSchool, AberconwayBuilding, ColumDrive, Cardiff,UK, CF103EU

Abstract The literature on tourism supply chain management (TSCM) is reviewed. We explore current TSCM research in academic databases, namely Scopus, ABI/INFORM Global (Proquest), ScienceDirect and EBSCO as well as Google Scholar. Accordingly, a systematic literature evaluation is conducted to obtain an overview of the current state of research on TSCM. We foundthatthereislimitedamountofresearchonTSCM.Furthermore,thefindingshowsthat the existing research frameworks for TSCM do not yet provide a holistic view of TSCM. Moreover, we found that the current issues in TSCM are concerned with applying SCM to tourism management. Thus, we propose a new framework for research on TSCM. Then potentialresearchquestionsarediscussedandsuitableresearchmethodsareidentified. Keywords: tourismmanagement,servicesupplychainmanagement,literaturereview.

1. Background
Nomatterwhattheeconomicclimate,tourismhasasignificantimpactonglobalandlocal economies(UNWTO2009,Antunes2000).Duringeconomicbooms,thetourism(especially international tourism) sector absorbs wealth from people on trips away from their homes (Kim et al. 2006; Lee and Change 2008). On the other hand, during an economics crisis, domestic tourism is one of the key mechanisms for restoring the economy. This could be becausemanygovernmentsseethattourismcanalsocreatenewjobs(Seckelmann2002; Page 2009). Tourism has been recognised as a complex system (Jafari 1974; McKercher 1999;Smith1994;VronneauandRoy2009).Businessmanagementinthetourismindustry critically needs to consider supply chain perspectives not only to increase their efficiency and profitability (Zhang et al. 2009; Vronneau and Roy 2009) but also to ensure sustainability(Schwartzetal.2008). Furthermore, Tourism Supply Chain Management (TSCM) is currently emerging as a new research agenda (Zhang et al., 2009). One of the reasons for this is that supply chain management (SCM) has already become a critical source of an organisations competitive advantage(Christopher2005).ThereforeSCMisconsideredtobeavitalpartofanykindof business. However, research on TSCM is still rather immature and very limited at the moment (Zhang et al., 2009). Consequently, the objective of this study is to provide a research framework for TSCM research. The potential research topics in TSCM are also identified.

PhDcandidateandcorrespondingauthor(Email:PiboonrungrojP@cardiff.ac.uk) SeniorLecturerinLogisticsandOperationsManagement,CardiffBusinessSchool

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2. Literaturereview
To obtain the current state and evolution of TSCM research, we conducted a systematic literature search of the academic databases; Scopus, ABI/INFORM Global (Proquest), ScienceDirectandEBSCO3aswellasGoogleScholarusingthekeywordsof,tourismsupply chain, travel supply chain, and hospitality supply chain. Then we found that TSCM researchiscurrentlyverylimited.Therewereonly44studiesfoundinthesedatabases. MostofTSCMliteraturehasbeenpublishedin2008and2009(29papersor66%).Figure1 highlightsthequantityofTSCMresearchovertime.Wefoundthattherearetwostagesof TSCM research. The first stage is the era before 2007 where there are only conceptual framework papers and no empirical studies conducted. Secondly, in another stage since 2007,thenumberofTSCMresearchhasrapidlyincreased.Moreover,inthisstageofTSCM research,moreempiricalstudiesarepublishedthanconceptualframeworkpapers.

Figure1:Trendinresearchontourismsupplychainmanagement Furthermore, we employed a content analysis to identify the main focus of each paper. Methodology and the geographical focus of the research will be classified if the study is empiricalresearch.ThefindingsshowthatahalfofempiricalstudieswerefoundinEurope whereas approximately onethird of empirical studies were in Asia. Surprisingly, there are only 12% of empirical studies were found in the Americas, all in Canada. Within Europe, most empirical studies were conducted in the UK, Spain and Finland (4, 2, and 2 studies respectively). On the other hand empirical studies on TSCM in Asia are only in China and Thailand(4and2studiesrespectively).ItcouldbearguedthatempiricalresearchonTSCM tendstobeconductedonlyonthemostfamoustouristdestinations. Considering the research methodology, a case study approach is a dominant choice (14 studies). There are only three works using quantitatively approaches. Moreover, the resultshowsthatallstudiesconductedinEuropeemployedthecasestudyapproach.This significantroleofcasestudyapproachinTSCMresearchcouldbeduetotheadvantageof thecasestudythatcangaindepthandinsightsfromthecomplexphenomenon.Detailsof thepreviousliteratureonTSCMcanbefoundinAppendixA.
3

Thesedatabasesincludeover14,000scholarlyjournalsinbusiness,management,andsocialscience aswellastradepublications.

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3. Whatarethetourismsupplychains?
Thisstudyoffersafourstepapproachtodefinethetourismsupplychains.

(1) Definingtourismindustry The confusion of the terminologies between tourism, travel and hospitality could mislead researchers(Pizam2009).Therefore,itiscriticaltoclarifythedefinitionoftourism.Firstly, services provided by the hospitality and travel industry are partly for tourism purpose. Moreover, there are also nontourist customers in both the hospitality industry and the travel industry. Precisely, we can identify distinct activities in the tourism industry by consideringwhethertheyservetourists(Figure2).

Traveltrade Clubs Institutional foodservice Assisted livingfacility Lodging Restaurants Timeshare Events Attractions Destination marketing Tourism planning& development Trains Ferries Airlines Bus&coach Carrental Commuters
Localtravellers

Migrants Students

HospitalityIndustry

TourismIndustry

TravelIndustry

Figure2:Therelationshipbetweenthetourism,hospitalityandtravelindustries. Source:AdaptedfromPizam(2009).

(2) Specifyingspecialcharacteristicsoftourism Therearetwomaindistinctivecharacteristicsofthetourismindustry.Firstly,onthesupply side,tourismisnotapuremanufacturingorapureserviceindustry(Jafari1974;Page2009; ZhangandMurphy2009).Itisamixtureofproductscombiningservicesandgoods.Tourism isaverycomplexindustry.Tourismsupplychains(TSCs)consistsofvariouspartiesthatare highlyconnected(MarchandWilkinson2009;Zhangetal.2009).ThuscoordinationinTSCs ishighlyintensive.Secondly,onthedemandside,tourismdemandhasbeenrecognisedas acomplication(Sigala2008,LaffertyandvanFossen2001)).Highvolatilityandsensitivity tothedisturbancesoftourismdemandrequiresaninsightfulknowledgetomanageit.

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(3) Identifyingtourismsupplychaincomponents A generic supply chain usually comprises of raw material providers, suppliers, manufacturers,distributors,wholesalers,andretailers.However,itisnotsuitabletousethis approach to describe the TSCs because it is a complex system that consists of various supplychains.Therefore,itcouldbemoremeaningfultouseacorrelationmatrixapproach (Figure3)thatisderivedfromthetourismsupplychainlinks(TapperandFont2004,p.4).
Tourismsupplychaincomponents 1. Transportsto&from destinations 2.Groundtransport 3.Groundoperations 4.Excursions&attractions 5.Cultural,socialandsportevents 6.Furnitureandcrafts 7. Infrastructures,service& resourcesofdestinations 8.Energyandwatersupplies 9.Wasterecycling&disposal 10.Foodsproduction 11.Laundry 12.Caterings,foodsandbeverages 13.Accommodations 14.Touroperating 15.Marketing&sales 16.Customers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Figure3: Correlationsmatrixofcomponentsinthetourismsupplychains Source: ExtendedfromTapperandFont(2004)

Note: Supplychainlink(TapperandFont2004,p.4) CriticalcorrelationbetweenTSCcomponents(theauthors) ModeratecorrelationbetweenTSCcomponents(theauthors)

Accordingtothefigure3,wefoundthatTSCsconsistofvariouscomponentslinkingtoeach other.However,wemayclassifycomponentsinTSCsbytheirfunctionsasfollowings. a) Inputproviders(sources) Asthesecondtiersupplier,inputprovidershavearoleofsupplyingresourcesandmaterials forserviceoperationsinthefirsttier(Smith1994;Zhangetal.2009).Wecanclassifyinput providersintodifferenttypesbymaterialstheysupply.However,oneoftheimportantinput providersisthefoodsuppliersorthefoodsupplychain(Fontetal.2008).Webster(2001) discussedthescopeandstructureoffoodsupplychainfromthesourcesofprimaryinputs (resources). They are agriculture sector, wholesalers, retailers, and final customers (Smith 1994). b) Serviceproviders(serviceproducers) Serviceproviders(1sttiersupplier)areconsideredtobethecorefacetsofTSCs(Zhangetal. 2009; Tapper and Font 2004). Firms in the first tier suppliers directly contact with the customerseventhoughtouragenciesortouroperatorsmaymanagethecombinationand linkages between each of the service providers (Vronneau and Roy 2009). Therefore, satisfactionofthetouristsislargelybasedontheperformanceofserviceproviders(Yilmaz andBititci2005). Page4of11

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c) Intermediaries:touragenciesandtouroperators(productassemblers) TouroperatorsandtouragencieshaveamassiveinfluenceonTSCs(Schwartzetal.2008, Fontetal.2008).Thecriticalroleofthetouroperatorsiscontrollingtheflowoftouristsand partlymanagingthetourismsupplychain(Zhangetal.2009;MuhcinaandPopovici2008). Considering this vital role of tour operators, they may be considered to be forthparty logisticserviceproviders(4PLs),actingasarchitects,designingthesupplychain. d) Freighttransport(physicalflowconnectors) Inatypicalsupplychain,freighttransportistheintegratorofthephysicalflow(McKinnon 2001). In TSCM, freight transport still has an important role to ensure the seamless transactions between input providers and service providers (Vronneau and Roy 2009). Varioustechniquesformanagingefficienttransportoperationsintraditionalsupplychain, suchasvendormanagedinventory(Disneyetal.2003)orfactorygatepricing(Potteretal. 2007),couldbealsoapplicableforTSCM. e) Passengertransport(customerflowenablers) NotonlydoesfreighttransportplayasignificantroleinTSCMbutalsopassengertransport playanimportantrole.Thiscriticalroleofpassengertransportistoseamlesslymovethe touristsalongtheirtrips(Fawcett2000;Duval2007). According to the previous discussion, TSCs are considerably complex. It composes of varioussupplychains(TapperandFont2004;MuhcinaandPopovici2008).Apartfromthe componentsofTSCsdiscussedpreviously,itisnoteworthytostatethattherearealsoother important components i.e., souvenirs, energy and waste management which are rarely studied(Zhangetal.2009). (4) Outliningflowsandprocesses Finally we outline flows and processes of the TSCs by proposing a generic tourism supply chainsmodel(Figure4),whichisderivedfromcombiningperspectivesofboththedemand andthesupplyside.Inthismodel,therearefourmajorflowsincludingphysicalflow(Zhang etal.2009),informationflow(GoandWilliam1993;Bignnetal.2008),andcustomerflow (Fawcett2000). ThismodelrepresentscomponentsandflowsintypicalTSCsthatcanbedividedintothree phrases. Firstly, after the customers decided to make a trip, information inquiries and booking procedures with tour agencies or via the internet, and then the transactions between the tour agencies/tour operators and service providers. The second part is a combination of supply chains that associate to tourism such as lodging (hotel), catering (restaurant) supply chain, and passenger transport supply chains. There are two tiers of suppliers.Firstly,inputproviderswhosupplyresourcesforserviceoperationssuchasfoods and beverages (F&B) or equipments. Another tier is the service provider that contacts customers(tourists)directly.Thirdly,afterthetrip,theremaybesomeaftersalesservices oractivitiesbetweentouristsandserviceproviders/touragencies.

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Upstream

I n Freighttransports& f Distributionsystems o r m Informationflows a t i Via o tour operators n F Direct Via l contact travel o via agencies websites w s
Trip Arrangement

Inputprovidersi.e., (2ndTiersuppliers)
F&B Equipment Waste mgmt. Furniture Water &Energy

Hotels supply chains

Passenger transport supply chains Serviceprovidersi.e., st (1 Tiersuppliers)

Service opera tions

Attraction supply chains

Service opera tions

Service opera tions

P h y s i c a l F l o w s

Downstream
Services delivery Services delivery Services delivery

Customerflow

Customer (Tourist) I.Before thetrip

Passenger Transport(air)

Passenger Transport(land) II.Duringthetrip

Passenger Transport(air)

III. After the trip

Figure4:AGenericTourismSupplyChainsModel

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4. ConceptualframeworkforTSCMresearch
After we have a generic form of TSCs, then we can illustrate the research framework for research on TSCM (Figure 5). There are three major focuses in the framework (designs, relations,andperformancemeasurements)undertheconceptofSCORmodelthatconsists ofplan,source,make,deliver,andreturn(SupplyChainCouncil2009).Firstly,supplychain design is a critical starting point of TSCM. In TSCM, supply chain should be designed preliminarily based on what the targeted tourists want. The other aspects of the design process such as strategy, distribution or pricing could also be considered (Chopra and Meindl 2007). Secondly, the core of TSCM is relationship among stakeholders. Unlike typical SCM that considers only buyerseller relationship, in TSCM they are those correlations between TSC quartets that are firsttier and secondtier suppliers, tour agencies/tour operators, and tourists. Thirdly, performance measurement covers four aspects including external, financial, operational, and development that are considered in thebalancescorecard(JohnstonandClark2008).
Supplychainredesign I.Designs II.Relationships

III.Performance measurements

Customer value Competitive advantage Strategies Processes Distribution Inventory Transport Sourcing Facilities Pricing

Quartetrelationships ofthetourismsupplychains
2ndtier suppliers Foods Energy Etc. 1sttier suppliers Lodging Travel Etc. Customer s (Tourists)

1.External Customer satisfaction 2.Financial Margin Profitability 3.Operational Effectiveness Efficiency Responsiveness Reliability Resilience Valueadded Wastes(Muda) 4.Development Sustainability

Intermediaries Touragencies Touroperators

Collaborations within/between thetourismsupplychains

Plan

Source

Make

Deliver

Return

Figure5:Aresearchframeworkoftourismsupplychainmanagement

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5. Researchopportunities
The potential research agendas which could enable the better understanding of the TSCs have been identified. Furthermore, because SCM is a study of the relationships between each player along the supply chain, therefore another vital research agenda could be the collaborationsoftheTSCs.Toanextent,driversandimpactsofcollaborationinTSCscan bethefocalconsideration.Thus,wefoundsomeemergingtopicsintheliteraturesthatare still the gaps. We outline five potential research agendas with specific research questions thatshouldbeanswered. (1) TSCdesign Whatistherighttourismsupplychaintoaparticularsituation? Howcanweidentifyit? (2) Collaborationintourismsupplychain WhattypeofcollaborationsexistinginTSCs? WhataretheantecedentsandthebenefitsofcollaborationinTSCs? (3) Performancemeasurement WhichaspectthatweshouldconsiderwhenmeasuringTSCMperformance? Howcanwemeasuresupplychainperformanceintourism? (4) ManagingriskanduncertaintyinTourismSupplyChain WhatarerisksanduncertaintiesofTSCs? HowcanwemeasureandmitigaterisksinTSCs? (5) ICTandEtourismsupplychains HowcanwedesignICTsystemsinTSCs? HowcanweidentifytherightEbusinessmodelforaparticularTSC? In terms of research methodology, TSCM research could employ either qualitative or quantitative research methods or both (Piboonrungroj 2009). There are various research methodstheselectionofresearchmethodshouldbebasedontypesofresearchquestions andresearchobjectives(Yin2003).ExamplesofmethodologicalselectioninTSCMresearch can be obtained in Piboonrungroj (2009). Nevertheless, it was found that most of the empiricalstudieshaveemployedthecasestudyapproachtoprovideanindepthanalysis. However, concerning the level of generalisation of the research, surveybased research using advance statistical methods such as structural equation modelling or econometrics couldofferabetterreliablemodeloftheTSCM.

6. Conclusions
Thereisagrowingconsensusthatasinglecompanynolongercompetesinthemarketplace but rather its supply chain that competes (Christopher 2005). Therefore, tourism is also a business that inevitably has to consider SCM. Various research topics suggested in this paper could extend the scope of the existing SCM research. The proposed research framework could also enable researchers in both tourism and SCM areas to comprehensively explore and examine the phenomenon in the TSCs. Undertaking this model, the research employed in other industries could be applied in TSCM research. Finally,consideringtheimmaturityoftheTSCMconcept,thegenerictourismsupplychain inthispresentstudymaybearobustmodelforfutureresearchonTSCM.

Acknowledgements
The authors are grateful to the Royal Thai Government through the Commission on Higher EducationforfinancialsupportofMr.PiboonrungrojsstudyinCardiffUniversity.

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AppendixA:SummaryofTSCMliterature
Authors Year:2009 dAngellaandGo LemmetyinenandGo Keating MarchandWilkinson MurphyandSmith Page Piboonrungroj Ruskoetal. VronneauandRoy Yangetal. ZhangandMurphy Zhangetal. Year:2008 Almeidaetal. Bignnetal. Dye Fontetal. Guo Harewood JohnstonandClark KaosaardandSuriya MunicinandPopovici Narayanetal. Piboonrungroj RodrguezDazand EspinoRodrguez Schwartzetal. Silaga SmithandXioa WeiandLu XinyueandYongli Year:2007 MitchellandFaal OgdenandMcCorriston Mainfocus Collaborativetourismmarketing Tourismbusinessnetwork EthicsinTSCs Tourismpartnershipevaluation TSCrelationship OverallTSCM MethodologicalimplicationsinTSCM research SCMintourismdestination TSCMpractices Competitiondynamics SCMandtouristdestination marketing OverallTSCM TSCrelationship ITadoptionintravelagencysupply chains SCCollaboration SustainableSCM Competition& relationshipinTSCs Coordinationinsupplychain Holidaysupplychains TourismLogistics OverallTSCM ServicequalitymeasurementinTSCs Papertype Empirical Empirical Empirical Conceptual Empirical Conceptual Conceptual Empirical Empirical Analytical Empirical Conceptual Empirical Empirical Descriptive Empirical Empirical Analytical Conceptual Empirical Conceptual Empirical Empirical Empirical Conceptual Empirical Empirical Empirical Conceptual Empirical Empirical Empirical Empirical Empirical Conceptual Conceptual Conceptual Conceptual Conceptual Conceptual Conceptual Conceptual Conceptual Conceptual Methods Countries Casestudy Spain&Austria Casestudy Finland Casestudy China Survey France (Descriptivestatistics) Casestudy Casestudy Quantitative (Gametheoretic) Casestudy Casestudy Quantitative (StructuralEquation Modelling) Casestudy Exploratory Quantitative (Stackelburggames) Simulation Casestudy Quantitative (Factoranalysis) Casestudy Casestudy Casestudy Casestudy Casestudy Casestudy Survey Qualitative Casestudy Quantitative (Regression) Finland Canada China Brazil UK UK UK&EU China Thailand India Thailand Spain Greece Canada China Gambia UK NewZealand UK Belgium

SupplyChainAuditMethod Touristdestinationcompetitiveness &benchmarking SustainableSCM SCM&sustainabletourism OverallTSCs(Culinary) TSCMandtourismdevelopment TSCoperations TSCMandtourismdevelopment Supplierrelationshipsinconference andeventmgmt. Schott Distributionchannels Year:2006 Novellietal. Tourismnetworkandcluster WalleandSteenberghen Publictransportandtripchains Year:2005 Alford YilmazandBititci Year:2004 TapperandCarbone TapperandFont Year:2001 Hovara King LaffertyandFossen Year:Before2001 Antunes(2000) Smith(1994) GoandWilliam(1993) BusinessProcess Reengineering Performancemeasurement SustainableSCM OverallTSCM Logisticsofairlineservice Logisticsofairlineservice Integrationintourism OverallTSCM Tourismproductionprocess Informationtechnology

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