Tourism and Hospitality of Operations Management


1800 words - Business report based on an organisation in the hospitality industry. It should include:

- Business report based on an organisation in the hospitality industry:

- Identify at least 4 strengths of this organisation

- Identify at least 4 challenges – 2 of these challenges MUST be ethical issues

- Provide recommendations for each of these challenges

8 references (Harvard Style) - 4 academic and 4 non-academic references

List of organisations to choose from:

•Cruise company


•Social enterprises (e.g. STREAT café or Lentils as anything restaurant)


•Small cafes or restaurants

•Theme parks

good writing plagiarism free and referenced well in text also done in Harvard style



Business Report


In this paper, business report of Costa Cruise Company has been detailed. This paper will highlight the major four strength of the Costa Cruise Company and it's four challenges which the cruise is facing. This paper will also highlight the proper recommendation to redress the challenges in an effective manner. At the end of this paper, proper references have also been mentioned.

Costa Cruise 
Parent Company- Parent Company of Costa Cruise is Carnival Corporation and PIC. Costa Cruise is categorized as the cruise ship holiday and vacation category company that it deals in the hospitality industry. It is Tourism Company based on Italian style. Costa Cruise Headquarter is in Genoa, Italy. CEO of the Costa Cruise is Michael Thamm. Founder member of the Costa Cruise was the Giacomo Costa.  

Costa Crociere S.p.A. is the biggest Italian gathering in Tourism, situated in Genoa. The brands Costa Crociere and AIDA Cruises have a place with Costa Crociere S.p.A. also, incorporate an aggregate of 25 delivers in dynamic administration and 2 on arranging for 2016. Costa Crociere S.p.A. is a piece of Carnival Corporation and plc, a world pioneer in the voyage business (Lenahan et al., 2015). 
Costa Crociere has the greatest and the most present-day armada of all European voyage administrators, with 15 dispatches in benefit. Costa Crociere is a universal organization with workplaces in 14 distinct nations. Costa Crociere is the main organization on the planet that was granted by RINA with the willful "Green Star" documentation for the entire armada.

Task 1

The strength of Costa Cruise
Four (4) strength of the Costa cruise

CostaCruise Companyis a part of a large company which is providing it the advantage in the cost over its competitors. Costa Cruise is rich in its technological operation which is making the operation of the Costa Cruise very effective and efficient. Costa cruise is known for the tons of entertainment onboard the cruise ship, Fun Ship. Costa Cruise is operating in more than 250 destinations worldwide(MBA Skool-Study.Learn.Share., 2018).
Costa Cruise is operating its function and services to the Mediterranean, Caribbean, Northern Europe, South America, Indian Ocean and Central America as well as Grand Cruise and around the world Cruise which is providing the advantage in increasing the number of customers. Vast Scale of operation allows the Costa Cruise to attract the customer to visit different continents on a single holiday. Costa Cruise is rich in its brand name it is due to the strong brand name of its parent company (Müller et al., 2017). It has a very high level of customer satisfaction which is making the customer trustworthy and loyal. Costa Cruise has a global presence. It is well known for its hospitality and reliability in terms of services. 
In nutshell, the four major strength of the Costa Cruise is as follow.
The large scale of operation
Global presence 
Innovative technology 
Costa Cruise has a cost advantage due to it is owned and regulated byCarnival Corporation and PIC.  

Task 2

Challenges Faced by the Costa Cruise 
In spite of having great success and global presence with the good brand image, Costa Cruise is facing many challenges in its operation globally. 
Costa Cruise is facing the challenges in managing the overseas operation such as managing the safety of the ship and its customer safety. Due to some recent accident such as Italian Cruise Disaster Sparks which caused a threat of human safety and its employees raising the challenges for the Costa Cruise in managing the ships and its customer in an ethical manner. 
Providing safety of life to the customer and to the professional, employees is a great challenge which Costa Cruise is facing. Costa Crusie is dealing in providing the entertainment facility and tourism which is associated with the risk. Managing the risk associated with the transportation and especially sea transportation is very risky if not managed properly and effectively will hamper the brand image of the Costa Cruise (2005 and English, 2018).
Costa Cruise is facing the intense competition as the service differentiation of Costa Cruise is less which is creating the intense competition in the market. So managing the competition in an ethical manner requires a great deal to address it in an effective manner. 

Costa Cruise is the part of Carnival Corporation which enable the Company to avoid the tax in the US till now, but the new regulation in the tax structure of the government may affect the Costa Cruise to pay the tax to US that is Carnival Corporation the parent organization of Costa Cruise has been professedly exploiting charge escape clause which has empowered it to abstain from paying US enterprise charges till now, new duty directions would require change which affects the Costa Cruise.  Costa Cruise is facing challenges such as Expanding mindfulness about the condition and more up to date ecological controls could eat into organization's benefits Accidents or Mischancescan influence the brand picture and business in a negative manner.  

Two ethical challenges faced by the Costa Cruise 

Costa Cruise is facing ethical issues and challenges such as Challenges to address the Safety of the Customer and its professional employees. Ethically managing the Tax system according to the Government rules and regulation(, 2018).
Increasing the size of the ship and number of berth leads to congestion which is creating a great challenge for the Costa Cruise. Protecting the environment is best and effective manner is also one of the major challenges which Costa Cruise is facing.

In nutshell the challenges faced by the Costa Cruise
Increase in Ship Size and ship capacity- Costa Cruise is facing challenges in increasing the size of the ship as well as the capacity of the ship. Due to the expansion of the size and capacity, it leads the congestion at the port. Dealing with the congestion is raising the challenges to the Costa Cruise. Congestion is raising the two challenges for the Costa First Challenge is Environmental Thresholds. For infrastructures, such as squander transfer or sewage treatment, the effects can be understood by suitable building measures despite the fact that this may posture money related ramifications. For attractions, the section cost can be utilized as an instrument to control stuffing. For regular territories, the physical effects are harder to control. Here investigation of conveying limit is regularly proposed however once in a while done since such an investigation is hard to accomplish.
Second challenges faced by the Costa Cruise due to Congestion is it is minimizing the visitor’s perception due to overcrowding. Occupants and travelers may abstain from going to certain attractions and offices due to the expected congestion by throngs of voyage transport guests. In the long run, this can bring about dormant or fewer visitor entries (or substitution of higher wage sightseers by bringing down pay vacationers) and therefore in fewer tourism consumptions.Beside this congestion and environmental challenges, Costa Cruise is facing lack of a regional policy.

Various challenges which Costa Cruise is facing is that Coping with the natural disaster, coping with the congestion of the port, challenges to have a local regional policy of operation. All above-mentioned challenges are ethical challenges which Costa Cruise is facing in its business operation.

Task 3 

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On the basis of the above analysis and information about the Costa cruise Strength and challenges, the various recommendation is sought and recommended in order to effectively redress the challenges. Redressing the challenges and threats in an effective manner is essential for the smooth functioning of the Costa Cruise.

Due to increase in the competition of the Cruise ship tourism proper regional policy should be formulated. Costa Cruise needs to make its regional policy in order to compete with the intense competition in the tourism industry across the globe.

Costa Cruise needs to monitor the safety concern of the customer as well as the safety of the ship. Costa Cruise also needs to concentrate and regularly monitor the congestion of the port. Proper monitoring and controlling of the port congestion will increase the visitors and customer. This will also increase the customer satisfaction will give strategic

advantage to the Costa Cruise.
Effective implementation of the Tax Structure should be recommended as till now Costa Cruise is relying on the parent Company which is helping the Costa Cruise in avoiding the payment of tax to US Dollar. But the things are uncertain for future for this Costa Cruise need to implement the proper Tax structure and system which will help Costa Cruise in smooth function in regards to the financial matter. Beside this Costa, Cruise needs to carry the In-depth study of the region and its major challenges in order to stay competitive in the market for the longer period of time(Business News Daily, 2018).

It is also recommended to Costa Cruise that it should focus on the safety of the customer and its professional employees. Before moving the ship proper analysis of the ship should be done with the help of the expert. Monitoring of the weather condition should also be considered it will reduce the risk of occurring the accident. A preventable accident can be voided through proper monitoring of the weather condition. So it is recommended that Costa Cruise should try to implement a proper team of expertize who can guide the company in regards to weather condition.

It is also recommended to Costa Cruise that it should build emergency landing port on the ship which can be operated during the time of emergency. The proper medical facility should be built and provided on the ship while delivering the tourism services. In case of natural emergency, there should be proper provision for the emergency landing services of the plane. Beside this proper and effective communication system and the challenge should be implemented in order to contact the substation and other port for help in case of emergency. 

Recommendation to redress the challenge of Congestion Blockage Little is thought about the effect that congestion has on the view of voyagers and occupants. Governments or potentially national tourism and inn affiliations ought to start to screen blockage all the time, and attempt fitting activities, counting conceivably restricting the greatest number of journey deliver guests that are permitted to visit a port anytime.


Lenahan, S., Minimum, M., Niakossary, N. and Perez, A., 2015. The Costa Concordia Crisis.
Müller, D.K. and Wi?ckowski, M. eds., 2017. Tourism in Transitions: Recovering Decline, Managing Change. Springer.
Da Cruz, R.D.C.A., 2018. Maritime Cruises: Oligopoly, Centralization of Capital and Corporate Use of Brazilian Territory. In Tourism in Transitions (pp. 39-58). Springer, Cham.
Koteski, C., Dimitrov, N., Jakovlev, Z. and Petrov, N., 2016. Cruise as part of water transport-development and challenges.
Niavis, S. and Tsiotas, D., 2018. Decomposing the price of the cruise product into tourism and transport attributes: Evidence from the Mediterranean market. Tourism Management, 67, pp.98-110.
MBA Skool-Study.Learn.Share. (2018). Costa Cruise SWOT Analysis | USP & Competitors | Brand Guide | MBA Skool-Study.Learn.Share. [Online] Available at[Accessed 30 Apr. 2018].
Business News Daily. (2018). Is That Ethical? Italian Cruise Disaster Sparks Leadership Questions. [Online] Available at
[Accessed 30 Apr. 2018]. (2018). As Cruise Industry Grows, So Have Its Problems. [Online] Available at [Accessed 30 Apr. 2018].
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