Total Logistics Costs and Strategic Planning in Tourism

Subject: Management
Pages: 1
Words: 289
Reading time:
2 min
Study level: College

In the context of strategic planning, the significance of total logistic costs cannot be underestimated, as it has a direct impact on the revenue of a business. This issue appears to be extremely relevant for the companies in the tourism field, as it implies a considerable demand for transportation, which is constantly increasing (Myerson, 2012; Goldsby & Martichenko, 2005). First of all, in order to rationalize expenditures for logistics, it is essential to mention that transportation options are used not only by tourists, who are eager to explore interesting places (Khan et al., 2019). Some people use these ways, which are initially considered touristic, for transfer as well. The concept of logistics in this field implies allowing people to reach any destination they are determined regardless of the purpose of their trip, and this fact should be taken into consideration. For instance, individuals may have business journeys, and they will use the same means of transport as tourists do.

Another potential goal for total logistic costs management should regard the fact that there are seasons of high and low demand. For example, people tend to travel in summer more than in winter, and this factor should be concerned as well. Therefore, in order to reduce expenditures, managers may decrease the number of passages during the period of low demand for traveling (Solakivi et al., 2018). In addition, it is worthy of avoiding providing service only for tourists and shape the transporting conditions for travelers on working issues. It also involves providing a possibility to reach destinations, which are important for people, who have business journeys (Theppitak, 2018). It is vital to adhere to these recommendations in order to manage total logistic costs in tourism.

Elimination of Waste
Graph 1. Elimination of Waste.


Goldsby, T. J., & Martichenko, R. (2005). Lean Six Sigma logistics: Strategic development to operational success. Ross Publishing.

Khan, H. U. R., Zaman, K., Shoukry, A. M., Sharkawy, M. A., Gani, S., Sasmoko, Ahmad, J., Rameli, M. R. M. & Hishan, S. S. (2019). Tourism logistics management through financial and regulatory measures: evidence from a panel of countries. Asia Pacific Journal of Tourism Research, 24(5), 443-458. doi: 10.1080/10941665.2019.1588760

Myerson, P. (2012). Lean: Supply chain and logistics management. McGraw-Hill Education.

Solakivi, T. Hofmann, E., Töyli, J., & Ojala, L. (2018). The performance of logistics service providers and the logistics costs of shippers: a comparative study of Finland and Switzerland. International Journal of Logistics Research and Applications, 21(4), 444-463. doi: 10.1080/13675567.2018.1439906

Theppitak, T. (2018). Managing tourism logistics with sustainable development of eco-tourism. International Journal of Advanced Scientific Research & Development, 5(8), 1-11. Web.