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Chapter 5: The Transportation Sector Articles from WTTC Human Resource Centre publication Steps to Success: Global Good Practices in Travel & Tourism Human Resource Development First Article: Source: Steps to Success, Vol.2, No.1 (Mar 1998) From “Worst to First”: Lessons from a High Flying Airline ...Implementing organizational restructuring with good leadership and communication measures secured employee buy-in. OVERVIEW: In 1994, Continental Airlines was experiencing severe challenges. Department of Transportation (DOT) surveys rated it tenth in on-time performance, baggage service, and customer complaints. The company had filed bankruptcy twice in the preceding ten years, and was on the verge of a third, and possible final bankruptcy in the fall of 1994. There was constant change in senior management. Ten CEOs came and went in as many years. By the end of 1994, employee morale was at an all time low, which was reflected by high-lost time, job injury claims, and voluntary turnover. In the fall of 1994, a new management team was put into place. Gordon Bethune and Greg Brenneman quickly assessed the company’s service, financial, and employee issues. Sitting around Bethune’s kitchen table one night, they discussed what was needed to turn the airline around. The Go Forward Plan was born. The Go Forward Plan
Having a sound business strategy was good start, but without buy-in and commitment from employees, the plan did not stand a chance. IMPLEMENTATION: The first step in implementing the business strategy was to communicate what the plan was, and everyone’s role in meeting the objectives set forth in the plan. In July of 1995, all directors and vice presidents were brought into Houston headquarters for a two-day leadership conference. The sole objective of this conference was to communicate clearly what the Go Forward Plan was about, and to ensure that each leader had a personal commitment to inform their teams about the plan. In December, each leader was evaluated on how well they communicated the goals, objectives, and individual responsibilities for meeting the Go Forward Plan. The measurement took the form of a ten question “Leadership Communication Survey” that the leader’s employees filled out. The survey was tied directly to the leader’s bonus plan. To ensure employee participation in the Go Forward Plan, pay-for-performance was introduced. Employee’s compensation was tied to the financial performance of
the company through profit sharing. Additionally, an on-time bonus program was introduced. Every time the airline is measured in the top three for on-time performance, employees receive a US$65 bonus check. If the airline is in
the number one slot, each employee receives a bonus check for US$100. RESULTS: Under the Fly to Win cornerstone, Continental has recorded ten straight quarters of pre-tax profit. The carrier has significant alliances with Alitalia, Air France, and Virgin Atlantic. In June of 1996, Continental reached its highest load factor in company history. Fund the Future accomplishments are significant. The company has a healthy cash balance, and has placed notable aircraft orders with Boeing. Additionally, Continental has made a significant investment in its hubs in Cleveland, Newark, and Houston. Make Reliability a Reality has seen Continental being awarded the J.D. Power and Associates award for service in 1996 and 1997. This is the first time an airline has ever won back-to-back awards. Continental was named “Airline of the Year” by Air Transport World. “You can make a pizza so cheap, nobody wants to buy it” Gordon Bethune, Working Together has possibly been the most meaningful program for an employee group that has endured changes. Due to the hard work and dedication of employees, the company was able to pay out over US$90 million dollars in profit sharing and bonuses in 1996. Lost time has improved 8%; turnover 25%, and job injury claims 9%. Employee commitment and morale are at an all time high. WTTC Human Resource Centre COMMENT: The process by which Continental Airlines has travelled from one of the lowest-rated airlines to one of the best is a good practice example to be modelled. The
restructuring strategy was sound, but it could only succeed if the employees bought into it. The pay-for-performance scheme provides a monetary incentive which is equitably distributed through profit sharing. Employees feel
they are part of the process of fundamental change for this huge corporation. This sense of employee ownership in change processes is essential for any tourism human resource development strategy. Articles from WTTC Human Resource Centre publication Second Article: Competency Models For Employee Hiring and Management Skill Transfer ...Two tried-and-true success stories target turnover and skill transfer by way of competency models and profiling. Human resource personnel must be aware of the need for strategic planning related to the growth of individual departments. In this way they
become active in the planning and "people management practices" necessary to support the goals of both individual departments, and to ensure the future of the company. OVERVIEW: Royal Caribbean International is the world's largest brand cruise line. With a total of 12 operating ships, it has the capacity to serve over 18,000 passengers, features 73 different itineraries, and calls at 145 ports on five continents every year. Royal Caribbean is scheduled to build two additional vessels by the year 2000, solidifying its place as an industry leader. To operate this fleet, Royal Caribbean has a labour force of 10,000 (8,000 shipboard); 95% of its employees come from outside the United States and are hired from more than 50 countries world-wide. Employees work on contract ranging from six to ten months, with contract length varying with positions. Approximately 2,800 employees work shore side including 100 district sales managers nation-wide and a total of 54 staff in human resource positions. With a large, diversified staff and a reputation for excellent service to maintain, Royal Caribbean's human resource department is focussed on effective
training programs. Two such training initiatives include a program in which employee turnover was reduced, and one which improved skill transfer at the management level. IMPLEMENTATION: Employee Hiring - Job Profiling & Behavioural Interviewing To reduce turnover amongst the shoreside staff, Royal Caribbean's human resource department created a structure in which department heads and business unit leaders (who hire managers) could work together to achieve a better match between employee skills and job requirements at the hiring stage. The human resource department established
Program objectives included
Working directly with business unit leaders, a "staff needs analysis" was then completed to determine department staffing needs and to further define the employee skill-sets necessary for individual job performance. A staff profile was also developed for each unit. This highlighted both key competencies and the required behaviour traits of employees and provided a guideline for interviewing. The interview guideline is needed for human resource personnel to conduct applicant screening, and by department hiring managers during the interview process and final selection. Both human resource staff and business unit hiring managers reviewed the process of behavioural interviewing to ensure that the competency models would be used effectively. Working as a team during the job review process has strengthened the link between human resources initiatives and business unit objectives. Human resource personnel are responsible for employee recruiting and screening; it is their job to send the most qualified candidates to the business unit. This
co-operative program, first targeted at district sales departments, will be used in the hiring of all shore-related positions by the end of the year 2000. Management Skill Transfer - Foundations for Success Royal Caribbean International's human resource personnel are also working with ship and shoreside managers to define and record a profile of successful leadership practices necessary at management levels throughout the company. Because cruising is a relatively new industry, most managers have acquired skills developed through an assortment of other industry-related training. In its current stage of rapid growth, this cruise line realized that managers possessing excellent technical skills were not necessarily proficient in transferring these skills to others. Human resource personnel and successful company managers together developed management competency models which are now used for skill assessment, skill development, and to communicate expectations at the management level. To aid in manager skill development, human resource personnel first determined the key success factors which are considered essential for the future. The Wilson Learning Success Skills 2000 program was introduced to measure, or assess, individual manager knowledge, and skills in relation to their job. The Leadership Practices Inventory was then applied to evaluate individual leadership practices. By comparing working skill sets with current leadership practices, it was possible to define areas where managers might improve their ability to transfer skills to employees. Labelled "management competency gaps", areas needing attention were addressed by developing a plan for specific instruction and training. All management evaluations are kept strictly confidential between human resource personnel and participating managers. Royal Caribbean has expanded its management-training program by offering skill-training sessions throughout the year. This action-learning model, called Foundations for Success, focuses on management skill development, using training as a skill builder. Four levels of management are targeted: the new supervisor, the experienced supervisor, the new manager, and the experienced manager. The program builds on competency model information and focuses on teaching a specific management skill. Program content includes an assignment linking the newly taught skill to a current business issue in the work unit, thereby putting theory into practice. Session results are reported within a two-month period and on completion, the process continues with a second skill-specific training session. Managers and supervisors in training are evaluated after a full year, again using the Wilson Learning Success Skills 2000 assessment process to measure skill and leadership development. To date, a significant increase in skill development at the management level has been recorded. In designing the Foundations for Success program, Royal Caribbean executives shared personal leadership experiences which had influenced their own management style. Both internal and external resources shared in the program design, ensuring that it had the variety of perspective considered necessary for success. On completion of each program phase, a certification of achievement is awarded to managers by their department heads. Once a year, a company-wide celebration acknowledges all program participants, and awards are presented to departments demonstrating exceptional support and contribution.
RESULTS: According to Royal Caribbean, successful training programs are a result of human resource personnel engaged in strategic planning related to the growth of individual departments. In this way, HR personnel are active in the planning and "people management practices" necessary to support the goals of individual departments, and the future of the company. The Employee Hiring Project took ten weeks to implement, using both external and internal resources. The cost for profiling business units, designing competency models, creating interview guidelines, and training management averaged US$8,000 per business unit. Over a 12 month period, employee turnover was reduced by 20%, an achievement which more than paid for the cost of the program. The Foundations for Success program has succeeded in raising the skill levels of management. There has been an increase in internal promotions, while employee
turnover has been reduced and employee motivation has improved. The end result is happier customers and more repeat customers -- directly affecting the bottom line. Royal Caribbean International used both internal and external
resources during the 12 months devoted to program design. The cost of developing and implementing the program over a two-year period was approximately US$175,000. WTTC Human Resource Centre COMMENT: Research has shown time and again that, turnover is expensive for any organization. What tourism businesses can gain from Royal Caribbean's example is the joint partnership developed between department heads and human resources. Establishing goals that meet the organization's objectives ensures that accurate skill sets and competency models can be developed. Another key to retaining staff is good management. Foundations for Success is an investment to ensure there will be skilled supervisors and managers to influence tomorrow's workforce. It is interesting to note that subsequently, Royal Caribbean International restructured its human resource department, located in the corporate offices of Miami, Florida, to keep pace with the rapid growth of the vacation cruise line industry. Royal Caribbean International's human resource personnel were proactive in helping to design a system where department personnel act as a strategically focused business partner, a process consultant, and a change agent. Personnel are now described as Human Resource Generalists, and are active in all aspects of employee development from employee hiring to training, personal development, skill development, and the effective transfer of management skills. Planning for the re-structuring of the Human Resource Department began in early 1997, and the revised format was implemented in February 1998. Department
employees were active in decision making as the department studied numerous "best practice" examples featured in various HR reports and looked at other successful HR initiatives in planning the new structure. As Royal
Caribbean International grew in size with the acquisition of a second cruise line, the department was forced to develop a new system for accomplishing goals by working smarter. Chapter 5 Suggested Web Sites: 1. Transport Canada Transport Canada’s mission is to develop and administer policies, regulations and services for the best possible transportation system for Canada and Canadians. Its role is to develop up-to-date, relevant transportation policies and legislation, and to maintain the highest level of safety and security possible. Transport Canada consists of groups working at headquarters in Ottawa and in five regions. These groups are policy, safety and security, programs and divestiture, support, corporate services, communications, and the Departmental General Counsel. The five regional offices - in Vancouver, Winnipeg, Toronto, Montreal, and Moncton - apply Transport Canada’s programs, policies and standards in their geographical area, and are the central points of contact in each region for the department’s stakeholders. Transport Canada Centres are local service points situated as close as possible to the department’s clients. These centres are the front line for Transport
Canada and handle a variety of departmental activities. Visit Transport Canada’s web site and learn about the department’s strategic objectives as it applies to tourism as well as Acts and Publications, Programs &
Services, Transportation Modes under its jurisdiction, Public Safety, and various other issues pertaining to Canada’s transportation needs. 2. Canadian Transportation Agency (CTA) - Fly Smart The Canadian Transportation Agency replaced the National Transportation Agency on July 1, 1996. One of its continuing roles is to regulate certain aspects of the airline industry in Canada. Since the deregulation of the Canadian airline industry, travel services and flight options are greater than ever. To make your flight as smooth as possible, the Canadian Transportation Agency (CTA) put together some helpful information about flying to, from, and within Canada. Visit the CTA web site and read through the CTA’s Fly Smart brochure - tips for hassle free flying are here!
The Canadian Automobile Association (CAA) is the advocate for Canada's motoring and travelling public. Formed in 1913, CAA helped ease Canadians out of the horse and buggy era and prepare them for the modern motoring world with security, value and peace of mind. Over the years, CAA has grown with its membership, responding to the changing needs of motorists and travellers by offering new and exciting products and services. Today's CAA not only provides first rate Emergency Roadside Service, but offers members complete auto touring and travel services, discounts with preferred companies, and insurance services. As a federation of automobile clubs in Canada, CAA represents the rights and interests of Canadian motorists. Through public awareness campaigns and government
lobbying, CAA works to ensure safe and enjoyable driving for all Canadians. Today's CAA, affiliated with the American Automobile Association and other international organizations, brings to its 4 million members a world of
unique products and quality services both at home and abroad. 4. Air Canada Air Canada has grown from a modest operation (with two 10-passenger airplanes and a crop duster) to a CAN6.5 billion corporation that maintains a fleet of 158 aircraft (excluding Air Canada's Regional fleet). Together with its Star Alliance partners, Air Canada offers customers over 800 destinations in more than 130 countries. To learn more about Air Canada's activities today and future plans - plus some historical information to put it all in perspective, visit Canada’s national carrier’s web site. 5. Canada 3000 Canada 3000 Airlines, founded in 1988, operates from coast to coast in all of Canada's major cities and has demonstrated steady growth and built a solid reputation both in Canada and overseas markets. The company enjoys a high level of repeat customers and operates the most modern aircraft fleet in Canada. The company’s ‘Canada 3000 Tickets’ program is the retail travel outlet for Canada 3000 Inc., founded in 1995 to specialize in the sale of Canada 3000 Airlines and tour packages and products offered by the airline's tour operation. ‘Canada 3000 Holidays’ was launched in 1998 and operates as a Wholesale Tour Operator offering passengers more than an "affordable airfare". Through Canada 3000 Holidays, a Travel Agent may provide a variety of vacation packages, tours, car rentals and much, much more. Visit this site to learn more about one of Canada’s charter airlines designed for the leisure traveller. 6. Via Rail Canada VIA Rail Canada is an independent crown corporation, created in 1978. VIA operates trains in all regions of Canada over a network stretching from the Atlantic to the Pacific, and from the Great Lakes to Hudson Bay. The company employs close to 2,900 employees and operates 460 trains per week, 300 of them in the Quebec City-Windsor Corridor. There is over 14,000 km of track serving some 450 Canadian communities. Visit the Via Rail Canada web site to learn more about Via Rail Canada’s trains, products, schedules and fares, classes of services, and attractions en route. 7. Ontario Motor Coach Association (OMCA) It is estimated that there are over 3,000 highway coaches in Canada. Thousands more coaches from the United States enter Canada each year and are a boon to local economies. The National Tour Association estimates that each motor coach tour contributes over $7,000 CDN per coach/per day to the local economy when spending on accommodation meals, entertainment, and souvenirs is taken into account. On average, each individual spends over $150 per day as compared with $90 spent by those traveling in automobiles. The industry's direct employment exceeds 15,000 employees. Founded in 1930, the Ontario Motor Coach Association (OMCA) is the trade association which represents the interests of Ontario's intercity bus and group tour operators at the provincial level. On behalf of its over 1,200 members, including nearly 80 motor coach companies and over 100 travel and tour operators, the OMCA works to highlight the achievements of the province's intercity bus business and its contribution to the economy of Ontario. The OMCA is the largest affiliation of bus and tour operators in Canada and is the proud sponsor of the longest-running, largest, and most successful Canadian motor coach marketplace. Motor Coach Canada was established in 1996 to fill an advocacy void at the federal level. MCC works with various federal departments as well as national and
international associations to address such tourism and transportation issues as immigration, infrastructure needs, marketing, multimodalism, and national safety standards. 8. International Air Transport Association (IATA) The International Air Transport Association (IATA) was originally founded in 1919. It is the collective voice of the world's fastest growing transport sector - which, in turn, is part of the world's largest industry - travel and tourism. For the general public, IATA simplifies the travel and shipping process, and helps to control airline costs. Thanks to airline cooperation through IATA, individual passengers are able to make a single telephone call to reserve a ticket, pay in one currency, and then use the ticket on several airlines in several countries - or even return it, for a cash refund. IATA allows airlines to operate more efficiently through combining resources to exploit opportunities, reduce costs and solve problems. IATA's head office is located in Montreal, with its main executive office in Geneva. There are currently more than 90 offices around the world responsible for training and IATA Distribution Services (Agency Services and ISS - which consists of Billing & Settlement Plans and Cargo Account Settlement Systems). Check out IATA’s web site and learn more about IATA and its members through its web links: Events; Products & Services; Press Releases; Search; Contacts. Links; and FAQ (frequently asked questions). There are even Employment Opportunities listed on the site!
The beginnings of the International Civil Aviation Organization (ICAO) started in Chicago in 1944 with the signing of the Convention on International Civil
Aviation by 52 States. Pending ratification of the Convention by 26 States, the Provisional International Civil Aviation Organization (PICAO) was established. By March 1947 the 26th ratification was received and ICAO came into
being. In October of the same year, ICAO became a specialized agency of the United Nations linked to Economic and Social Council (ECOSOC). The Convention on International Civil Aviation, also known as Chicago Convention, set
forth the purpose of ICAO. Organization members define principles and arrangements fostering the safe and orderly development of international air transport services - established on the basis of equality of opportunity and
operated soundly and economically. The ICAO site offers links to organization updates, frequently asked questions, publications (for review and ordering), news releases, and new developments in the world of aviation. 10. Cruise Lines International Association (CLIA) Cruise Lines International Association (CLIA) is a marketing and training organization composed of twenty-five major cruise lines serving North America. CLIA was formed in 1975 in response to a need for an association to promote the special benefits of cruising, as well as to educate, train, promote, and explain the value, desirability, and affordability of the cruise vacation experience. Currently, over 21,000 travel agencies are affiliated with CLIA and display the CLIA seal, identifying them as authorities on selling cruise vacations. CLIA is consistently rated as the most effective travel association in terms of overall support of the travel agency community, value for money, and the quality of its training programs. For example, CLIA's most comprehensive training is the Cruise Counsellor Certification Program, which requires agents to successfully complete a number of compulsory training courses and exams, attend cruise conferences, and conduct ship inspections. CLIA also offers Management and Sales Institutes, classroom training and training videos.
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