Linkages
Linkages are the interactions and relationships between tasks, functions, departments and organisations. These interactions allow and promote the flow of information and ideas in achieving the objectives of the tourism business. In this sections we will examine the components of a supply chain to examine the different linkages that are part of the Great White Bear Tours business. Below is a very basic supply chain for a business. We have to think about this chain in terms of our case study Great White Bear tours.
To understand the linkages of the tourism business we must consider the supply chain for the enterprise. In tourism, the supply chain is made up of the suppliers of all the goods and services that contribute to delivering the tourist product to the consumer. This could include transport and trips, accommodation, souvenir producers and sellers, restaurants and bars, food production and waste disposal. Let's consider the supply chain for a single day trip to see polar bears. Raw materials would include the staff, the environment and the vehicles. The manufacture part of the chain can refer to the way these raw materials are processed. In a very basic way in this case it could refer to designing the tour, marketing it and setting up a booking system. This is shown in the diagram below.
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Internal and external linkages The syllabus asks us to address both internal and external linkages. Examples of internal linkages include employees, customers and the organisational structure of the business. External factors include competitors, government, suppliers, and transport. Internal linkages (within the business) Employees |
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Great White Bear Tours is a family-run business that hires approximately 14 people, some of which are family members and several are long-term locals. Profiles of employees show that many are interested in outdoor activities, adventure and have backgrounds in conservation or government employment (police, teacher, rangers, etc.) Some long-term employees live in other locations (sometimes quite a distance away) and return to Churchill during polar bear season, resulting in a continual flow of people into and out of the town based on the season. Some employees gain other employment in the off-season.
Click to read Meet the Staff information from White Bear Tours. Click to examine professional profiles of Great White Bear Tour staff Churchill is a remote location and the tourism industry is seasonal - based on times when polar bears will be around the town. People are struggling to earn a livelihood in the town and some are moving to larger towns and cities in search of jobs. These factors can result in labour shortages (difficulty attracting staff) and access to quality training for staff by external providers can be limited (limited flow of ideas). The seasonal nature of the work can make it difficult to get employees to commit to the job due to having to find alternative sources of income in the off-season. The advantages of employment in this type of business is the opportunity to work with unique wildlife and engage with a passion in conservation. |
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Questions:
Describe how a job associated with the tourist industry in Churchill be preferable to traditional employment.
Explain how expertise in conservation, or government employment could be an advantage in this tourism enterprise.
Describe the seasonal nature of tourism employment in Churchill. When would most employees be needed.
Analyse the challenges in gaining employment through tourism in Churchill.
Customers
In 2014, nearly 80% of tourists to northern Manitoba (the state in which Churchill is located) came from within Manitoba. Approximately 10% came from other areas of Canada, while a similar amount came from the United States of America. Less than 1% of overnight visitors came from outside of Canada and the United States. (Source: Northern Manitoba Tourism Strategy)
Questions
Describe where the majority of tourist who use GWBT originate from.
Create a marketing plan for GWBTs. What strategies could GWBTs implement to increase the number of customers from outside Canada and the United States?
Research current tourism figures to Northern Manitoba or Churchill. Describe the flow of people into the region.
Describe how a job associated with the tourist industry in Churchill be preferable to traditional employment.
Explain how expertise in conservation, or government employment could be an advantage in this tourism enterprise.
Describe the seasonal nature of tourism employment in Churchill. When would most employees be needed.
Analyse the challenges in gaining employment through tourism in Churchill.
Customers
In 2014, nearly 80% of tourists to northern Manitoba (the state in which Churchill is located) came from within Manitoba. Approximately 10% came from other areas of Canada, while a similar amount came from the United States of America. Less than 1% of overnight visitors came from outside of Canada and the United States. (Source: Northern Manitoba Tourism Strategy)
Questions
Describe where the majority of tourist who use GWBT originate from.
Create a marketing plan for GWBTs. What strategies could GWBTs implement to increase the number of customers from outside Canada and the United States?
Research current tourism figures to Northern Manitoba or Churchill. Describe the flow of people into the region.
Technology - social media
Great White Bear Tours promote the business through social media. This enables them to create a connection with prospective customers, while effectively communicating information about the business and what it offers.
Great White Bear Tours - Facebook
Great White Bear Tours - Youtube
While Great White Bear Tours can shape their social media presence to promote their business, review sites such as Trip Advisor are reliant on the views of customers.
View the Great White Bear Tours reviews on Trip Advisor
View the Great White Bear Tundra Lodge reviews on Trip Advisor.
Great White Bear Tours promote the business through social media. This enables them to create a connection with prospective customers, while effectively communicating information about the business and what it offers.
Great White Bear Tours - Facebook
Great White Bear Tours - Youtube
While Great White Bear Tours can shape their social media presence to promote their business, review sites such as Trip Advisor are reliant on the views of customers.
View the Great White Bear Tours reviews on Trip Advisor
View the Great White Bear Tundra Lodge reviews on Trip Advisor.
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Organisational linkages and flows
Vertical integration refers to when a business owns another business somewhere along the supply chain (for example if a grocery store also owned the farms that supply the store). Benefits of vertical integration include that the business has a secure source of raw materials, access to new business opportunities, reduced costs and improved quality of inputs, and removing suppliers and information from competitors. Great White Bear Tours is a family-run business, set up by Don and Marilyn Walkoski. While Don still owns and operates GWBTs, he has also founded Anything Custom which specialises in welding and fabrication. Anything Custom has built all of the custom-built Polar Rovers for GWBTs. Questions: Describe why it may have been difficult to purchase or get a business to repair polar rovers in Churchill. Define vertical integration and explain how it helps a business. |
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External linkages (business to business relationships)
Competitors 450,000 people visit northern Manitoba each year, many of which visit Churchill. However, there are a range of tourist activities that visitors can participate in once there. Competition comes in the forms of other polar bear tour operators, tour operators concentrating on beluga whales, the Aurora Borealis, photography tours, etc. Frontiers North operates a similar and competing set of polar bear tours. Alternate tours or tourist activities in Churchill include Parks Canada Visitor Centre, Eskimo Museum, Blue Sky Expeditions, Prince of Wales Fort and Sea North Tours. Examine statistics about tourism in Northern Manitoba in Currents: Tourism, gateway options could help Churchill survive the loss of port. Government Northern Manitoba Tourism Strategy Travel Manitoba Tourism Industry Association of Canada Province, Travel Manitoba launch strategy to boost tourism in Manitoba's north. Tourism strategy to play to the North's strengths. Gov't, Travel Manitoba to pump $35 million into north tourism. |
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Questions:
How could the region's tourism infrastructure be improved?
Why do governments have a major responsibility for promoting and regulating tourism?
How could inadequate tourism infrastructure (transportation connections, insufficient promotion, etc) affect the local tourism industry?
What are some of the ways they regulate and support the tourism industry?
How could the region's tourism infrastructure be improved?
Why do governments have a major responsibility for promoting and regulating tourism?
How could inadequate tourism infrastructure (transportation connections, insufficient promotion, etc) affect the local tourism industry?
What are some of the ways they regulate and support the tourism industry?
Local businesses and suppliers
Great White Bear Tours has a range of backward linkages with suppliers and other businesses which enable the business to function. Backward linkages include those with agriculture, fisheries, construction, transport, utilities and telecommunications. Businesses engaged to develop marketing strategies, build websites, and create brochures are examples of backward linkages. Flows of goods into the town are limited, resulting in limited supplies deliveries and a high cost of goods due to remoteness. Everything needs to be transported from Winnipeg. When the train was in operation goods were purchased from nearby towns, but this is no longer possible. Prices have to factor in costs of flying goods in.
Forward linkages refer to flow-on economic activity that occurs as a result of tourism (for example increased demand for medical services, real estate purchases, etc).
Click to read First shipment of supplies arrives in Churchill from new winter road.
Click to read What a rail link - and its loss - has meant to Churchill, Manitoba.
Questions
What proportion of the regional economy is related to tourism?
How does tourist spending help the local economy? How might this spending stimulate other economic activity in the community?
What are the potential benefits of tourism development for the local population?
Examine a tourist map of Churchill by clicking Churchill Tourist Map. List the businesses in the region which depend on tourism for some or all of their revenue.
Great White Bear Tours has a range of backward linkages with suppliers and other businesses which enable the business to function. Backward linkages include those with agriculture, fisheries, construction, transport, utilities and telecommunications. Businesses engaged to develop marketing strategies, build websites, and create brochures are examples of backward linkages. Flows of goods into the town are limited, resulting in limited supplies deliveries and a high cost of goods due to remoteness. Everything needs to be transported from Winnipeg. When the train was in operation goods were purchased from nearby towns, but this is no longer possible. Prices have to factor in costs of flying goods in.
Forward linkages refer to flow-on economic activity that occurs as a result of tourism (for example increased demand for medical services, real estate purchases, etc).
Click to read First shipment of supplies arrives in Churchill from new winter road.
Click to read What a rail link - and its loss - has meant to Churchill, Manitoba.
Questions
What proportion of the regional economy is related to tourism?
How does tourist spending help the local economy? How might this spending stimulate other economic activity in the community?
What are the potential benefits of tourism development for the local population?
Examine a tourist map of Churchill by clicking Churchill Tourist Map. List the businesses in the region which depend on tourism for some or all of their revenue.
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Travel intermediaries - agents and tour companies
Another way that capital and information flows within the operation of Great White Bear Tours is through distribution channels. Distribution means getting the product to the customer. This refers to booking services, travel agents and package tour companies. In the first diagram, a customer could book a stand alone tour directly through the company's website. In this way there is a direct channel between the company and the customer. In the second diagram, a customer uses a travel agent to book a stand alone tour with GWBTs. This allows the travel agent to check dates and availability, find out any extra information or address any questions with GWBTs on behalf of the customer. In this way GWBTs does not have direct interaction with customer, but relies on the travel agent. This is an indirect channel of distribution. In the third option, the travel agent engages with a package tour company that may provide options for a GWBT tour packaged with accommodation, visits to nearby sites and perhaps food and drink. The Package tour company then engages with Great White Bear Tours. In this example, GWBTs does not have direct interactions with customer, but relies on both the travel agent and the package tour company. This is an indirect channel of distribution. Questions: Describe the advantages and disadvantages of direct and indirect distribution of the tourist product by Great White Bear Tours. |
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Transport
There are limited transportation options to get visitors, and goods and service to Churchill - no roads or trains to transport goods from other towns/cities, shipping is not available during winter due to ice coverage, and flights are expensive. The inability to travel by road is a hindrance to growth. An all-weather road has been proposed between Nanuvat through Churchill to the Trans-Canada Highway. If built, this would allow freer movement into and out of Churchill. Click to read Churchill businesses worry flooded rail line could hurt busy tourism season. Questions Describe how tourists get to the region and travel within it. Analyse the effects of the train line not being operational. |
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