Increasing capacity at Monarch Wildlife Cruises and Tours: a case study approach

Abstract

Monarch Wildlife Cruises and Tours is a small eco-tourism business providing tours of the Otago Peninsula and an unrivalled wildlife cruise around Taiaroa Head. This company has continued to grow since its inception in 1985, but faces serious capacity constraints in the land transport aspect of its business. The purpose of this research is to examine options available to the company to increase their land transport capacity; the aim is to evaluate each option and recommend the most appropriate forward focus for the business. The research was conducted using a single case study methodology and involved four stages. These stages included a review of the academic literature, semi-constructed interviews, the collection of data through company documentation and observation as well as various discussions with potential organisations that lease and sell buses. Seven options for increasing the transport capacity of the company were investigated in this research. These were: staying with the status quo, withdrawing the transport from the tours, buying an additional bus, selling their van and buying or leasing an additional bus, selling all the vehicles or leasing them on long - term contracts. The last option investigated in this research was contracting all transport facilities to another party. Each option was analysed on cost, practicality, and its overall effect on the business. The benefits and disadvantages of each option were also discussed and contributed to the final decision. It is recommended that the transport aspect of the business be contracted out to another party. Further investigation will be required to determine the most appropriate organisation to contract to. Further work will also be needed to define the terms of such an agreement. However, at this stage Malcolm Budd from the Otago Explorer seems to meet all requirements. The recommended option was chosen because of its propensity to be cost effective and provide benefits that would outweigh cost. The disadvantages of this option were found to be minimal in that they would not adversely affect service quality or the core operations of the business, which is wildlife cruises. Lastly, the recommendation effectively increased the company's transport capacity and proved to be advantageous over the long term. Secondary recommendations included decreasing prices in the winter months to encourage people that might not otherwise purchase the tours; that the number of free of charge passengers be reduced in order to make room for paying customers, and to further manipulate demand and supply by allowing employees to leave secondary tasks till quieter periods, when the business is busy. The company also has the potential to diversify into other areas and increase customer involvement in the service delivery process by allowing customers to book and pay their tours on-line.