The Sustainability of Competitive Strategy in the Tourism Services Industry

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  •   Dewi Nusraningrum

Abstract

Until 2017 the tourism and travel sectors continued to grow by four percent per year faster than financial services, transportation and manufacturing, despite slow economic growth in developed countries and geopolitical tensions in some regions, the travel and tourism sectors still account for most of the global economy estimated to be around nine percent of global gross domestic product. However, since the Covid-19 pandemic hit the world, tourism sector revenues have fallen by seventy-five percent due to restrictions on foreign tourists entering Indonesia. This research aims to analyse the influence of competitive strategies such as; cost of excellence, product differentiation, market factors, and pioneering products towards tourism services as service industries such as; transportation, hospitality services, culture, fugitives, adventure, new experiences, residence, food, beverages, banks, insurance, and security. The study respondents were Indonesia’s foreign and domestic tourists. The findings show that excellent costs, product differentiation, market factors, and pioneering products positively and significantly affect tourism services. This illustrates that tourism price innovation strategies, tourism products, tourist markets, and different products need to develop because they will improve the excellent services of the tourism industry.


Keywords: competitive strategy, creative industry, sustainability, tourism services

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How to Cite
Nusraningrum, D. (2022). The Sustainability of Competitive Strategy in the Tourism Services Industry. European Journal of Business and Management Research, 7(4), 60–65. https://doi.org/10.24018/ejbmr.2022.7.4.1475