Risk Management Practice in the Tourism and Hospitality Industry

Abstract

Risk and risk factors is a contemporary issue in business research. The detection of its provenance and the process of management, through a portfolio of tools, is an important element in the operation of tourism and hospitality-related enterprises. Factors humanoriented or nature-oriented impose crises that get converted into fiscal risk for the business as financial risks that exist through operation and business-related sources. Literature review of luxury hotels with 4 and 5-star ratings and the tourism industry, as rich pools of data availability, has been deployed in a variety of destinations. This research, through a literature review of published articles in well known journals, analyzes the risk factors, risk management and risk management practices used in tourism and hospitality industry. The analysis enclosures case studies from highly touristic areas in the Middle east, Balkans, Europe and Asia. All these areas have during high season same climatic and weather conditions, same financial and non financial risks for the assessment periods of the research and high sensitivity to world wide phenomena. Key strategies to alleviate or mitigate the risk entail financial and non-financial tools that have been recorded through the literature review. These strategies include important strategies like fiscal, business, organizational and other less important but crucial to business survival. Findings from the research imply that common risks exist for the tourism and hospitality industry even for distant destinations. The majority of non-European and non-American destinations do have already risk management research and business are more aware of risk, risk management, and risk management techniques implementation than some destinations in Europe. Common models of risk alleviation are being to be used in different frameworks and alleviate risk.