In the strategic capacity planning process, companies make decisions to achieve their desired goals based on their current situation or position, capabilities, whole competitive position, the alternatives, risks, decisions concerning the capacity size and expansion, rational use of the resources, and capacity flexibility.
Strategic capacity management refers to the sizes, types, and timing of capacity investments and adjustments adjustable to hospitality and tourism businesses. Notable indicators are developments, various capacity types, and risk aversion. Capacity refers to processing abilities and limitations and is represented as a tendency of stocks of various processing resources, the term investment refers to the change of capacity and includes expansion and contraction. Thus, capacity refers to supplies of multiple resources; investment represents the change of that stock over time.
The definition of the capacity planning process
In the strategic capacity planning process, companies make decisions to achieve their desired goals based on their current situation or position, capabilities, whole competitive position, the alternatives, risks, decisions concerning the capacity size and expansion, rational use of the resources, and capacity flexibility. Capacity size refers to the maximum physical size of a facility or a workforce. Operating capacity is the desired or optimal level of a particular resource. Strategic, long-term decisions include the number of hotel rooms an area can or should support following local laws. The land space, energy, and water required for hospitality; the available workforce and their skills; the size of the enterprise in terms of parking, seating, food services, and the carrying capacity issues for natural resources. After that, in the planning process, the capacity focus shifts to the set of short-term actions taken to fulfill the planned strategies and tactics. In profit-oriented environments, management is concerned with maximizing income by using the revenues received from visitors and the firm's capacity for exploitation of resources.
The most popular destinations
The specific sources that concern hotel capacity management includes research, such as data and expert opinions about the German hotel market. For example, Berlin remains the most popular destination. Visitors typically spend more days in the capital in any of the other cities. The city preserves its popularity, with more than 500 properties, and while the number of properties has been relatively stable, the amount of hotel rooms has increased. Frankfurt is the second most popular city. The third primarily attractive city for tourists is Munich.
Capacity management in other countries
National systems usually function differently and are incredibly complex. So, in order to compare them, it is recommended to choose countries with similar size and industrial development. As a result of these criteria, Germany is often compared with The United States and the rest of Europe. As mentioned above, among tourists, Berlin is the most popular city in Germany. Thanks to its numerous attractions and its history. In the scope of Europe, Berlin is ranked third after London and Paris and is considered one of the most influential cities in Europe. The city's economic structure is shaped by various industrial companies, young start-ups, and a strong service sector, including hospitality, that attracts foreign investment. Also, other young companies and providers are attracted to the German capital to realize their business ideas because of the city's excellent conditions, including good infrastructure, an international environment, and low location costs.
Social media investment is a part of capacity management. Without online marketing, most businesses, especially the tourism sector, will find it challenging to reach customers. For fast and effective growth on social media, assistant websites are recommended, for example, subscriberz, which provides a boost for almost all the social media platforms.
The changes in capacity management in German tourism is inevitable
Demographic, Socio-structural, and political developments almost always influence tourist demand and force service providers in tourism to adjust. War, pandemic, terrorism, extreme weather, the internationalization of tourism, and the aging of society (increasingly prominent in public awareness) have certainly demonstrated tourism's vulnerability as a flourishing industry. The future progress of the tourism sector depends on rethinking relevant trends and paradigm shifts. Environmental factors, constantly changing and relevant trends, and their implications for tourism in Germany are different; potential touristic activities can be expected in and from the new EU nations and Germany. The most contemporary challenge is health-related public fear due to the COVID-19. However, economic and socio-political factors are still relevant.
