January 23, 2025 • 34 mins
In this thought-provoking episode of the Tourism Hub Podcast, host Despina Karatzias addresses the critical theme of crisis management in the tourism industry. As we find ourselves in the midst of summer in Australia, Despina reflects on the devastating impact of natural disasters, particularly the bushfires that have shaped our recent history. Drawing from her personal experiences and professional insights, she highlights the necessity of preparation and resilience for both individuals and businesses.
Despina explores various types of crises that can affect tourism operations, from financial and technological crises to reputational and operational challenges. She emphasises that understanding these different crises is key to developing effective crisis management plans. Listeners will learn how to identify creeping, slow burn, and sudden crises, and the importance of proactive measures to mitigate risks before they escalate.
The episode also provides practical strategies for enhancing resilience, including the development of comprehensive crisis management plans, regular audits, and investing in technology. Despina urges listeners to consider their role in supporting communities affected by crises, highlighting how tourism can aid in recovery efforts.
As the episode wraps up, Despina leaves listeners with a challenge to conduct a crisis management audit for their lives and businesses. This episode serves as a timely reminder that preparation is not just about survival, but about thriving in the face of adversity.
00:22 - Reflecting on Black Saturday Bushfires
03:06 - Current Bushfire Challenges
03:46 - Importance of Risk Management
07:06 - Types of Crises in Business
13:57 - Stages of Crisis Development
21:30 - Practical Steps for Crisis Management
21:54 - Personal and Home Resilience
25:06 - Business Resilience Strategies
26:42 - Community Support and Recovery
Connect with Despina Karatzias:
Website: Institute of Excellence
LinkedIn: Despina Karatzias
Instagram: @despinakaratzias
Follow us on social media for updates:
Facebook: Institute of Excellence | Tourism Hub Podcast
Instagram: @instituteofexcellencehq | @tourismhubpodcast | @despinakaratzias
YouTube: Inst
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:05):
Welcome to the Tourism Hub podcast,a podcast devoted to you and your
excellence, providing inspirationand education for the entrepreneurs,
experience makers, and excellent seekersof our industry to take your tourism
business and career to a whole new level.
Relax.
(00:31):
Hello and welcome tothe Tourism Hub podcast.
How are you and how's your year started?
At the time of this recording, it'slate January here in Australia.
We're in the heart of summerwith the kids gearing up.
To start a new school year for manysummer is a time of joy and adventure.
(00:52):
Sadly, it's also somewhat has alsobecome fire season here in Victoria
in other parts of the country.
That term alone is a reminder of how muchhas changed, especially since the Black
Saturday bushfires on February 7, 2009.
(01:17):
A day that took away more thanjust lives, homes and landscapes.
It took away our innocentway of doing life.
During the summer months,leaving an inerasable mark
on our state and its people.
(01:37):
On that day, 173 lives were lost,450, 000 hectares were lost.
and over three and a half thousandbuildings, including more than
2000 homes were destroyed.
For me, it was supposed to be a day ofcelebration on a hot and very windy day.
(02:02):
We were christening ourfirst born baby girl.
A joyful day full of faith andhope and family and friends.
At the time I was managing the world'sgreatest commercial hot air balloon
operation, Global Ballooning Australia.
As we were leaving the church serviceand heading to the reception, the
(02:24):
owner of Global Ballooning told us.
At the christening, with hisfamily, quietly excused themselves.
The Yarra Valley is on fire, he whisperedto me as he said goodbye, we have to go.
Yarra Valley, where he and his familylived, was also where we held our
(02:48):
entire operation and equipment fleet.
And all of it, Was in immensedanger, including a lot of our
team lived locally in the region.
The remainder of that day.
And that evening was overshadowed byfear and uncertainty, not knowing.
(03:10):
So we're there, Greek dancing,celebrating, but in the back
of my mind, I was just, what'shappening a short hour drive away.
By nightfall, thedevastation was unimaginable.
What started as a summer dayand became one of the darkest
in our Victorian history.
(03:31):
The fires shuddered.
That belief that summercould always be carefree.
Fast forward to today and we'reseeing similar heartbreak in
Victoria's Grampians region.
Bushfires have returned for the secondconsecutive year threatening one of
our most treasured tourism destinationsand our tourism brothers and sisters.
(03:53):
One alone reported a lossof over 700 bookings.
Globally, Of course, Los Angeleswildfires have burned thousands
upon thousands of acres, destroyingthousands of homes and taken lives.
Once again, highlighting theuniversal nature of these disasters.
(04:17):
Now, the reason for this, I guess, forthis episode and this topic, I have
been very heavily involved in reviewingA lot of risk management templates,
emergency plans and the like throughthe work that I'm doing for the Quality
(04:38):
Tourism Business Program in supportof Sustainable Tourism Accreditation.
Organisations like ATIC, the AustralianTourism Industry Council and VTIC,
the Victorian Tourism Council andall the other TICs, all the other.
Tourism councils across the country,constantly helping businesses navigate
(05:03):
these challenges and potentialchallenges through, it's not just
risk management, it's resilienceplanning and support to gain their
sustainable tourism accreditation.
Now this is work I've been veryproud to be involved in that further
highlights this importance of planning.
(05:28):
This isn't just tourism businesstalk though, or regional tourism
talk, or high risk area talk.
Another cruel reminder of thiscame just a couple of days
before Christmas in my home.
personal sphere and network whennews broke that my dear friend's
(05:51):
brother lost his home to a firecaused by a Christmas tree decoration.
Now, this is a suburban home in thesoutheast of Melbourne, nowhere near bush,
where only days before the holidays, theirlives were turned upside down by a fire
(06:13):
that burnt down their home within days.
10 minutes, from what I understand,started from an electrical fire
caused from a Christmas decoration.
These events, both near and far, make itvery clear that preparation and resilience
are essential for our businesses.
(06:33):
Our lives can change.
and our wonderful communities.
Now, as I currently review all thequality tourism business training
material and supporting material today,I want to dust off all the crisis
management and communication trainingmaterials that I have delivered.
(06:56):
It's a combination of personal experienceand risk mitigation running across.
You know, and helping run a successful hotair, commercial hot air balloon operation.
And really what I've delivered overthe last decade in my training.
world to just give the simplest,most practical models to help frame
(07:19):
your thinking and your planningand share this with whoever
may also find this beneficial.
Who knows, might even inspire you to getin touch with your tourism council and
pursue a sustainable tourism accreditationfor your business or your community.
Now, there are many types.
of crises.
(07:40):
It's not just fire orfloods or earthquakes.
Now, when we do think about crisis,natural disasters often come to mind.
And while these are significantand devastating, they're not
the only crisis that can impactour business and our lives.
(08:00):
A crisis is defined as any crisis.
Any disruption or issue thattriggers negative stakeholder
reactions threatens a business'sreputation or disrupts operations.
Crisis can come in many formsand understanding the different
(08:20):
types is key to being prepared.
So let's explore a few categories ofcrisis that business commonly face.
Starting off with numberone, financial crisis.
A financial crisis happens whena business struggles to meet its
financial obligations or suffersa sharp decline in revenue.
(08:46):
This could stem from externalfactors like an economic downturn or
internal mismanagement of resources.
For example, a tourism businessrelied on international visitors.
only may face financial strain duringa global pandemic or economic crisis.
(09:06):
slow down, pandemic, especially if theyhaven't diversified their offerings.
Preparing for a financial crisis couldmean performing regular financial health
checks, maintaining an emergency fund, anddiversifying revenue streams to cushion
(09:26):
against any type of these downturns.
Number two, technological crisis.
In today's tech driven world,a technological crisis can
disrupt operations overnight.
Imagine if your online booking platformcrashes during peak season or if a cyber
(09:50):
attack compromises your customer data.
These issues don't just disruptbusiness, they can erode.
customer trust and result inlegal or financial consequences.
Preparing for a technological crisiscould involve investing in secure,
reliable technology, conducting regularsystem updates and developing a robust
(10:16):
data backup and cyber security strategy.
It can be as simple as fixyour password management.
And outsourcing to a man, youknow, a password management system
and not using the same passwordthat 20 people have access to.
It could be as simple as that,something to think about.
(10:39):
Number three, personnel crisis.
A personnel crisis arises when anemployee or a company rep is involved
in unethical or illegal behavior.
Or it could be an employeethat is underperforming.
And you know, flying under the radar.
Imagine what that can be as acrisis moving forward when an
(11:03):
employee is just dropping the ball.
So the other things that this couldrange from publicised misconduct
to workplace discrimination,allegations, such events can damage
a business's reputation and morale.
Preparing for a personnel crisiscould involve implementing a plan.
(11:24):
Strong HR policies, conductingregular ethics training, conducting
regular reviews, and establishing aclear crisis communication plan to
address personnel issues swiftly,professionally, and promptly.
Number four is operational crisis.
(11:45):
Number four is operational crisis.
Operational crisis occurs whensomething disrupts the day to
day functioning of a business.
For example, supply chaindisruptions, equipment failures,
or even overbooked shipping.
Tours that result incustomer dissatisfaction
can cause operational chaos.
(12:09):
Preparing for an operational crisiscould mean identifying potential
bottlenecks in your processes, creatingcontingency plans and ensuring your
staff are trained to handle thesedisruptions calmly and efficiently.
We move on to numberfive, reputational crisis.
(12:31):
A reputational crisis can arise fromnegative publicity, social media backlash,
or customer complaints that go viral.
For instance, a poorly handled guestcomplaint could spiral into a PR
nightmare if shared widely online.
Preparing for a reputational crisis couldmean monitoring your online presence,
(12:55):
responding to feedback promptly andprofessionally, and having a dedicated
team or individual ready to help.
to manage publicrelations during a crisis.
And of course, there is natural disasters.
Natural disasters, like fires, floodsand earthquakes and tsunamis, can
(13:19):
significantly impact a business.
But you know, landslides, that's somethingelse that's happened in our state of
New South, not New South Wales, herein Victoria, in Victoria, landslides.
Beyond physical damage, theseevents can lead to prolonged
closures and financial losses.
(13:42):
Preparing for a natural disaster couldinvolve ensuring your business is safe.
is ensured for such events, creating adetailed evacuation plan and building
relationships with local emergencyservices to stay informed and supported.
Understanding the many different typesof crisis a business faces, highlights
(14:05):
the importance of of crisis awareness.
Now, as we've covered, crisiscan strike in many forms,
often when we least expect it.
By understanding these different types,you can start building resilience and a
robust crisis management plan tailored toyour business's unique vulnerabilities.
(14:28):
With that foundation in place, let'sexplore how crisis develop over
time and how we can categorize them.
Further into creeping, slowburn and sudden crisis.
Let's start with understandingstages of crisis.
Effective crisis managementbegins with an audit.
(14:51):
And Jonathan Bernstein, founder ofBernstein Crisis Management, offers
a framework that explains it best.
Jonathan sums up crisis preventionperfectly when he says crisis prevention,
at its best, is the organizationalequivalent of a medical full body scan.
(15:13):
He breaks crisis down intothose three main categories.
Creeping crisis, slow burncrisis, and and sudden crisis.
Each of these requires a uniqueapproach to mitigate and manage
and understand the differencesis the key to staying prepared.
(15:35):
So let's start by breaking these downwith some real world examples to show
you how they can impact your business.
First up, creeping crisis.
These are the subtle ones.
Crises that develop gradually over time.
They often start with small issuesthat seem too minor to worry
(15:55):
about, but eventually can slowlysnowball into a serious problem
when it's left unaddressed.
So for example, imagine atour operator with a fleet of
vehicles used for guided tours.
Over time, Maintenance isdeprioritized because of budget,
(16:19):
low cash flow, constraints, orjust busyness, busy schedules.
Small problems like worn tires oroutdated safety checks are ignored
because everything is still operational,everything is still working fine.
Eventually, one of those vehiclesbreaks down mid tour, or worse,
(16:42):
an accident occurs due to apreventable mechanical issue.
The lesson here is that creepingcrises are often the result
of neglect and negligence.
or complacency.
This is the same thing.
Creeping crisis can happen inall of those six type of crisis.
(17:04):
So regular monitoring, scheduledmaintenance, early action on
small risks to be proactive, notreactive, are essential to prevent
creeping crisis from becoming fullblown disasters and disruption.
(17:26):
Next, let's talk about slow burn crisis.
These crisis come with some levelof advance warning, offering
opportunity early to addressthe problem before it escalates.
However, They still require proactivemeasures to contain the issue.
(17:47):
Think about a hotel that starts receivingnegative reviews about inconsistent
service or cleanliness on travelwebsites and, you know, review websites,
Google and TripAdvisor and Facebook.
At first, it's just afew scattered complaints.
And management assumes, oh,it's no biggie, no big deal.
(18:12):
But as these reviews increase,they create a pattern that starts
to damage the hotel's reputation.
Guests begin choosing other accommodationand we see the revenue drop.
The key takeaway here, in a very smallexample, is that slow burn crisis
can often be mitigated if the earlySigns are taken seriously and acted
(18:38):
upon, acting promptly to identify andresolve the root cause, whether it's
staffing shortages, training gaps oroperational inefficiencies can prevent
the issue from spiraling out of control.
Finally, we have the sudden crisis.
These are the ones that strike out ofnowhere, leaving no time to prepare.
(19:02):
They're often catastrophic and requireimmediate action to minimise damage.
For example, a natural disasterlike the Black Saturday bushfires
in Victoria is a sudden crisis.
Many tourism businesses and manybusinesses in affected regions lost
(19:22):
their facilities, their equipment, and insome cases their livelihoods overnight.
Now as a commercial hot airballoon operation, our risk
mitigation, our safety compliance,our audits were really, On point.
Without robust emergency plans oradequate insurance, recovery can take
(19:48):
years, if it's even possible at all.
Another example could be a databreach at a booking platform.
In an instant, sensitive customerinformation is exposed and the company
is left scrambling to contain the damage.
Think about what happenedwith Medibank and Optus.
in 2024.
(20:09):
Reassuring customers and protectingyour reputation is going to be a
lot more difficult when that occurs.
So sudden crisis highlightsthe importance of protection.
preparation.
While you can't predict exactly whenor how this will strike, hopefully
(20:31):
never, having emergency plans,communication strategies, insurances,
and contingency measures in placecould significantly reduce the impact.
Now here's an important point to consider.
What seems like a sudden crisis oftenstarts as a creeping or slow burn issue.
(20:56):
For example, the Black Saturdaybushfires, while devastatingly sudden
in their impact, were preceded bywarning signs like extreme weather
conditions and gaps in fire safety.
prevention strategies.
The takeaway here is that the earlieryou address risks and worst case
(21:17):
scenarios, the better your chancesof avoiding a full scale crisis.
Proactive planning and consistentvigilance are key to business resilience.
in your operation.
So as we move forward, think aboutthe type of crisis that could affect
(21:39):
your business and livelihood andleaves you completely exposed.
Are there creepingrisks you've overlooked?
Are you seeing early signsof a slow burn issue?
What steps can you take now toprevent these from escalating
into something much bigger?
(22:01):
So now I want to help you explorehow to turn this understanding
into some practical action.
When it comes to crisis management,having a toolkit of actionable
steps can make all the difference.
Let's break this down into simplificationand practicality for both your
(22:21):
personal and business resilience.
Now personal and home resilience.
Preparation at home is vital.
So when I did speak to my girlfriend abouther brother, because it was, it was big,
it was on the news, it was devastating.
So when I spoke to my girlfriend, shesaid, man, I've had businesses and
(22:42):
in my business, there's always a fireextinguisher and fire blankets, but it's
just something we don't have at home.
And it got me thinking because I'min the weeds and doing this work
all the time for tourism businesseslike, huh, wow, yes, of course.
This is the same.
(23:02):
We should be operating our lives inthe same way because it doesn't, again,
like I mentioned earlier, it doesn'tdiscriminate whether you're in no bushland
or, you know, in suburbia, like whathappened these, the, you know, we can
leave ourselves as exposed and vulnerable.
So as a bit of a checklist athome and something I've created.
(23:24):
for myself and I spoke to my own husbandabout some things to consider as I
have installing and testing your safetyequipment from your smoke detectors,
your fire extinguishers, fire blankets,all should be in good working order.
And easy to access.
(23:46):
So bitters, you know, we talkabout training our teams.
Also, our family familiarity, that we knowif we have these things, where are they?
Creating a family evacuation plan.
It delighted me having thisconversation with my colleague
that said, yeah, we've done a fullpractice, we've got one use ladders.
(24:06):
Upstairs, and we've donea practice as a family.
I was like, I've never even heard of sucha thing, because I'm in this zone now
saying, well, this is, we're all exposed.
So creating a family evacuationplan, making sure that everyone
in your house knows escaperoutes and practicing them daily.
Regularly, even just once is better thannever and taking a first aid course I
(24:32):
did this many many years ago as part ofmy hospitality training I believe at the
time I had to do a first aid and it reallyhighlighted the same thought in me Being
able to you know, I remember my son goingblue in the face because he you know
He was choking on bacon and I was justfreaked out but anyhow Taking a first aid
(24:54):
course cannot be a bad thing or at leastone of us in our organization or in our
households being able to administer CPRor treat minor injuries could save a life.
So keeping a fully stocked first aidkit is In your home and your car can
be a difference that makes a differenceand reviewing insurance policies,
(25:18):
ensuring you have adequate coveragefor natural disasters, emergencies,
including home health and life insurance.
All important things in our dayto day lives as much as it is
to build a business resilience.
For businesses, when we look atpreparation, it goes beyond the basics.
(25:42):
So here's some things to consideron how to strengthen your tourism
and hospitality or event operation.
Developing a comprehensivecrisis management plan.
Include protocols for different typesof crisis like we talked about from
natural disasters to reputational issues.
(26:05):
Shameless plug.
Enrolling into the Sustainable TourismAccreditation Business Program.
And because this is all a corerequirement to become accredited.
So you get the best of both worlds.
You're kind of pushed to do this workand you have a great thing, a great stamp
on your business that really exemplifieswhat it means to Quality, training
(26:30):
your team, assigning specific roles foremergencies such as evacuation leads
or communications managers and ensuringeveryone knows their responsibilities
and monitor risks regularly.
Conducting audits to identify hazards,assess compliance with regulations and
(26:52):
evaluate your business's vulnerabilitiesand invest in technology, secure
reliable backup systems for criticaldata, using cyber security tools and
implementing communication platformsto stay connected during a crisis.
(27:13):
Now preparation and resilience aren'tjust about protecting yourself,
they're about supporting others.
When communities are affected bycrisis, recovery efforts often
depend on collective support.
Take for example, regions likeGrampians in Victoria or areas
impacted by the Los Angeles wildfires.
(27:34):
One of the most important Impactful waysto help is by visiting these destinations
and inspiring and advocating thesedestinations to support those local
businesses in their recovery phase.
Tourism dollars.
provide a lifeline by booking astay or not cancelling a stay at
(27:59):
a local motel, dining at nearbycafes or exploring national parks.
We're injecting hope and economicsupport into that recovery process.
Your visit helps create jobs,sustain businesses and foster a
sense of normalcy for communities.
(28:19):
So the next time you're planninga holiday, consider choosing a
destination that could use your support.
It's a meaningful way for us whenwe're sitting and looking at this from
a distance and, you know, again, assomeone managing a tourism business.
Business making a difference was, youknow, just holding onto that booking
(28:43):
and not requesting that refund or comingback to us when we had the all clear,
you know, whether it was the bushfireson Black Saturday or the pandemic or
many other instances that occurredover my tenure over, you know, the
two decades that I held that position.
(29:04):
Now, I wouldn't be a good trainer withoutsome homework, and as we wrap up, I'd
like to leave you with a challenge,and that is conduct a crisis management
audit for your life and your business.
Here's what that might look like.
Identify potential crisis.
What creeping risks, slow burn warnings,or sudden crisis could you face in
(29:27):
your personal or professional life?
Map out the stages of response.
Starting with preparation.
What proactive steps canyou take to minimize risk?
For example, ensuring you have emergencyplans, conduct regular safety checks
and invest in preventative measures.
(29:49):
What immediate Steps willyou take during a crisis?
Think about communication strategies,evacuation procedures, and
maintaining calm under pressure.
I encourage you to go backand listen to podcasts.
Episode 51 of the Tourism Hub podcast, ofcourse, Crisis Preparedness in the Tourism
(30:11):
Industry, where I interview Mark Olson,speaking about his experience supporting
industry as the CEO of Tropical NorthQueensland during and post COVID 19.
Cyclone Jasper, the wettesttropical cyclone in Australia.
I loved when he said during hiskeynote at the Australian Regional
(30:33):
Tourism Convention, that preparationcan be as simple as finding your
ghostbusters, because in a time ofcrisis, who are you going to call?
to help, to aid, to spread the messagethat things are actually not as
big, you know, handling the media.
(30:54):
And then there's recovery afterthe crisis, how will you rebuild?
This might include supporting yourteam, filing insurance claims, or
reaching out to affected customers.
More importantly, Taking the time todebrief and record what you've learned
and how you could have done things better,what worked really well, what didn't
(31:15):
work, and what did we forget altogether.
This is invaluable to improve yourplans and improve your future responses.
And of course there's mitigation.
How can you prevent a similarcrisis from happening again?
Use those lessons learned in your pastexperience or others past experience
(31:41):
to strengthen your plans and adapt.
Adapt to new challenges.
Lastly, share your plans.
Make sure your team or your familyunderstand their roles in a crisis.
Regularly review and update yourplan to keep it relevant and keep
it timely and keep it top of mind.
(32:01):
Okay, in closing, thank you.
Thank you for tuning in todayto the Tourism Hub podcast.
It is with just absolute sheer pleasureand delight that we have had over
10, 000 downloads of this podcast.
Beautiful little passion project.
And if you're not yet subscribedor wherever you are listening or
(32:24):
watching this episode, please hitthat subscribe button, because it's
very encouraging to see in the datathat there's listeners and that, you
know, I'm hearing and getting feedbackthat is providing value to your lives
and your careers and your businesses.
And it's encouraging tokeep showing up every week.
(32:45):
So if you hit subscribe,you won't miss a beat.
The tourism hub podcast is broughtto you by Institute of excellence.
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This month we've dropped a new course.
and that we've launched and it'sall around digital accessibility.
(33:05):
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love saving at the checkout.
Now back to wrapping up today's episode.
Preparation may not be glamorous.
But as Jonathan Bernstein says,it's the foundation of resilience.
Whether you're facing wildfires, financialsetbacks or workplace disruptions,
(33:31):
being proactive can reduce damage,save lives and help you recover faster.
Crisis reminds us of the life'sunpredictability, but they also show us
the power of preparation and community.
Let's take these learnings andlessons and experiences to heart,
(33:53):
plan for the unexpected andsupport each other along the way.
Thank you for joining me today.
If today's discussion resonated withyou, share it with someone who could
also benefit from these insights.
And remember, resilience isn'tjust about surviving, it's about
doing better today than what wedid yesterday in the first place.
(34:17):
Face of challenges.
Until next time, stay prepared, stayproactive, and remember every step you
take today helps build a stronger, moreresilient future for your business.
Until next time, my beautifulfriends, stay excellent and stay
(34:37):
really, really safe out there.
RELAX
Welcome to the Tourism Hub podcast,a podcast devoted to you and your
excellence, providing inspirationand education for the entrepreneurs,
experience makers, and excellent seekersof our industry to take your tourism
business and career to a whole new level.
Relax.
(00:31):
Hello and welcome tothe Tourism Hub podcast.
How are you and how's your year started?
At the time of this recording, it'slate January here in Australia.
We're in the heart of summerwith the kids gearing up.
To start a new school year for manysummer is a time of joy and adventure.
(00:52):
Sadly, it's also somewhat has alsobecome fire season here in Victoria
in other parts of the country.
That term alone is a reminder of how muchhas changed, especially since the Black
Saturday bushfires on February 7, 2009.
(01:17):
A day that took away more thanjust lives, homes and landscapes.
It took away our innocentway of doing life.
During the summer months,leaving an inerasable mark
on our state and its people.
(01:37):
On that day, 173 lives were lost,450, 000 hectares were lost.
and over three and a half thousandbuildings, including more than
2000 homes were destroyed.
For me, it was supposed to be a day ofcelebration on a hot and very windy day.
(02:02):
We were christening ourfirst born baby girl.
A joyful day full of faith andhope and family and friends.
At the time I was managing the world'sgreatest commercial hot air balloon
operation, Global Ballooning Australia.
As we were leaving the church serviceand heading to the reception, the
(02:24):
owner of Global Ballooning told us.
At the christening, with hisfamily, quietly excused themselves.
The Yarra Valley is on fire, he whisperedto me as he said goodbye, we have to go.
Yarra Valley, where he and his familylived, was also where we held our
(02:48):
entire operation and equipment fleet.
And all of it, Was in immensedanger, including a lot of our
team lived locally in the region.
The remainder of that day.
And that evening was overshadowed byfear and uncertainty, not knowing.
(03:10):
So we're there, Greek dancing,celebrating, but in the back
of my mind, I was just, what'shappening a short hour drive away.
By nightfall, thedevastation was unimaginable.
What started as a summer dayand became one of the darkest
in our Victorian history.
(03:31):
The fires shuddered.
That belief that summercould always be carefree.
Fast forward to today and we'reseeing similar heartbreak in
Victoria's Grampians region.
Bushfires have returned for the secondconsecutive year threatening one of
our most treasured tourism destinationsand our tourism brothers and sisters.
(03:53):
One alone reported a lossof over 700 bookings.
Globally, Of course, Los Angeleswildfires have burned thousands
upon thousands of acres, destroyingthousands of homes and taken lives.
Once again, highlighting theuniversal nature of these disasters.
(04:17):
Now, the reason for this, I guess, forthis episode and this topic, I have
been very heavily involved in reviewingA lot of risk management templates,
emergency plans and the like throughthe work that I'm doing for the Quality
(04:38):
Tourism Business Program in supportof Sustainable Tourism Accreditation.
Organisations like ATIC, the AustralianTourism Industry Council and VTIC,
the Victorian Tourism Council andall the other TICs, all the other.
Tourism councils across the country,constantly helping businesses navigate
(05:03):
these challenges and potentialchallenges through, it's not just
risk management, it's resilienceplanning and support to gain their
sustainable tourism accreditation.
Now this is work I've been veryproud to be involved in that further
highlights this importance of planning.
(05:28):
This isn't just tourism businesstalk though, or regional tourism
talk, or high risk area talk.
Another cruel reminder of thiscame just a couple of days
before Christmas in my home.
personal sphere and network whennews broke that my dear friend's
(05:51):
brother lost his home to a firecaused by a Christmas tree decoration.
Now, this is a suburban home in thesoutheast of Melbourne, nowhere near bush,
where only days before the holidays, theirlives were turned upside down by a fire
(06:13):
that burnt down their home within days.
10 minutes, from what I understand,started from an electrical fire
caused from a Christmas decoration.
These events, both near and far, make itvery clear that preparation and resilience
are essential for our businesses.
(06:33):
Our lives can change.
and our wonderful communities.
Now, as I currently review all thequality tourism business training
material and supporting material today,I want to dust off all the crisis
management and communication trainingmaterials that I have delivered.
(06:56):
It's a combination of personal experienceand risk mitigation running across.
You know, and helping run a successful hotair, commercial hot air balloon operation.
And really what I've delivered overthe last decade in my training.
world to just give the simplest,most practical models to help frame
(07:19):
your thinking and your planningand share this with whoever
may also find this beneficial.
Who knows, might even inspire you to getin touch with your tourism council and
pursue a sustainable tourism accreditationfor your business or your community.
Now, there are many types.
of crises.
(07:40):
It's not just fire orfloods or earthquakes.
Now, when we do think about crisis,natural disasters often come to mind.
And while these are significantand devastating, they're not
the only crisis that can impactour business and our lives.
(08:00):
A crisis is defined as any crisis.
Any disruption or issue thattriggers negative stakeholder
reactions threatens a business'sreputation or disrupts operations.
Crisis can come in many formsand understanding the different
(08:20):
types is key to being prepared.
So let's explore a few categories ofcrisis that business commonly face.
Starting off with numberone, financial crisis.
A financial crisis happens whena business struggles to meet its
financial obligations or suffersa sharp decline in revenue.
(08:46):
This could stem from externalfactors like an economic downturn or
internal mismanagement of resources.
For example, a tourism businessrelied on international visitors.
only may face financial strain duringa global pandemic or economic crisis.
(09:06):
slow down, pandemic, especially if theyhaven't diversified their offerings.
Preparing for a financial crisis couldmean performing regular financial health
checks, maintaining an emergency fund, anddiversifying revenue streams to cushion
(09:26):
against any type of these downturns.
Number two, technological crisis.
In today's tech driven world,a technological crisis can
disrupt operations overnight.
Imagine if your online booking platformcrashes during peak season or if a cyber
(09:50):
attack compromises your customer data.
These issues don't just disruptbusiness, they can erode.
customer trust and result inlegal or financial consequences.
Preparing for a technological crisiscould involve investing in secure,
reliable technology, conducting regularsystem updates and developing a robust
(10:16):
data backup and cyber security strategy.
It can be as simple as fixyour password management.
And outsourcing to a man, youknow, a password management system
and not using the same passwordthat 20 people have access to.
It could be as simple as that,something to think about.
(10:39):
Number three, personnel crisis.
A personnel crisis arises when anemployee or a company rep is involved
in unethical or illegal behavior.
Or it could be an employeethat is underperforming.
And you know, flying under the radar.
Imagine what that can be as acrisis moving forward when an
(11:03):
employee is just dropping the ball.
So the other things that this couldrange from publicised misconduct
to workplace discrimination,allegations, such events can damage
a business's reputation and morale.
Preparing for a personnel crisiscould involve implementing a plan.
(11:24):
Strong HR policies, conductingregular ethics training, conducting
regular reviews, and establishing aclear crisis communication plan to
address personnel issues swiftly,professionally, and promptly.
Number four is operational crisis.
(11:45):
Number four is operational crisis.
Operational crisis occurs whensomething disrupts the day to
day functioning of a business.
For example, supply chaindisruptions, equipment failures,
or even overbooked shipping.
Tours that result incustomer dissatisfaction
can cause operational chaos.
(12:09):
Preparing for an operational crisiscould mean identifying potential
bottlenecks in your processes, creatingcontingency plans and ensuring your
staff are trained to handle thesedisruptions calmly and efficiently.
We move on to numberfive, reputational crisis.
(12:31):
A reputational crisis can arise fromnegative publicity, social media backlash,
or customer complaints that go viral.
For instance, a poorly handled guestcomplaint could spiral into a PR
nightmare if shared widely online.
Preparing for a reputational crisis couldmean monitoring your online presence,
(12:55):
responding to feedback promptly andprofessionally, and having a dedicated
team or individual ready to help.
to manage publicrelations during a crisis.
And of course, there is natural disasters.
Natural disasters, like fires, floodsand earthquakes and tsunamis, can
(13:19):
significantly impact a business.
But you know, landslides, that's somethingelse that's happened in our state of
New South, not New South Wales, herein Victoria, in Victoria, landslides.
Beyond physical damage, theseevents can lead to prolonged
closures and financial losses.
(13:42):
Preparing for a natural disaster couldinvolve ensuring your business is safe.
is ensured for such events, creating adetailed evacuation plan and building
relationships with local emergencyservices to stay informed and supported.
Understanding the many different typesof crisis a business faces, highlights
(14:05):
the importance of of crisis awareness.
Now, as we've covered, crisiscan strike in many forms,
often when we least expect it.
By understanding these different types,you can start building resilience and a
robust crisis management plan tailored toyour business's unique vulnerabilities.
(14:28):
With that foundation in place, let'sexplore how crisis develop over
time and how we can categorize them.
Further into creeping, slowburn and sudden crisis.
Let's start with understandingstages of crisis.
Effective crisis managementbegins with an audit.
(14:51):
And Jonathan Bernstein, founder ofBernstein Crisis Management, offers
a framework that explains it best.
Jonathan sums up crisis preventionperfectly when he says crisis prevention,
at its best, is the organizationalequivalent of a medical full body scan.
(15:13):
He breaks crisis down intothose three main categories.
Creeping crisis, slow burncrisis, and and sudden crisis.
Each of these requires a uniqueapproach to mitigate and manage
and understand the differencesis the key to staying prepared.
(15:35):
So let's start by breaking these downwith some real world examples to show
you how they can impact your business.
First up, creeping crisis.
These are the subtle ones.
Crises that develop gradually over time.
They often start with small issuesthat seem too minor to worry
(15:55):
about, but eventually can slowlysnowball into a serious problem
when it's left unaddressed.
So for example, imagine atour operator with a fleet of
vehicles used for guided tours.
Over time, Maintenance isdeprioritized because of budget,
(16:19):
low cash flow, constraints, orjust busyness, busy schedules.
Small problems like worn tires oroutdated safety checks are ignored
because everything is still operational,everything is still working fine.
Eventually, one of those vehiclesbreaks down mid tour, or worse,
(16:42):
an accident occurs due to apreventable mechanical issue.
The lesson here is that creepingcrises are often the result
of neglect and negligence.
or complacency.
This is the same thing.
Creeping crisis can happen inall of those six type of crisis.
(17:04):
So regular monitoring, scheduledmaintenance, early action on
small risks to be proactive, notreactive, are essential to prevent
creeping crisis from becoming fullblown disasters and disruption.
(17:26):
Next, let's talk about slow burn crisis.
These crisis come with some levelof advance warning, offering
opportunity early to addressthe problem before it escalates.
However, They still require proactivemeasures to contain the issue.
(17:47):
Think about a hotel that starts receivingnegative reviews about inconsistent
service or cleanliness on travelwebsites and, you know, review websites,
Google and TripAdvisor and Facebook.
At first, it's just afew scattered complaints.
And management assumes, oh,it's no biggie, no big deal.
(18:12):
But as these reviews increase,they create a pattern that starts
to damage the hotel's reputation.
Guests begin choosing other accommodationand we see the revenue drop.
The key takeaway here, in a very smallexample, is that slow burn crisis
can often be mitigated if the earlySigns are taken seriously and acted
(18:38):
upon, acting promptly to identify andresolve the root cause, whether it's
staffing shortages, training gaps oroperational inefficiencies can prevent
the issue from spiraling out of control.
Finally, we have the sudden crisis.
These are the ones that strike out ofnowhere, leaving no time to prepare.
(19:02):
They're often catastrophic and requireimmediate action to minimise damage.
For example, a natural disasterlike the Black Saturday bushfires
in Victoria is a sudden crisis.
Many tourism businesses and manybusinesses in affected regions lost
(19:22):
their facilities, their equipment, and insome cases their livelihoods overnight.
Now as a commercial hot airballoon operation, our risk
mitigation, our safety compliance,our audits were really, On point.
Without robust emergency plans oradequate insurance, recovery can take
(19:48):
years, if it's even possible at all.
Another example could be a databreach at a booking platform.
In an instant, sensitive customerinformation is exposed and the company
is left scrambling to contain the damage.
Think about what happenedwith Medibank and Optus.
in 2024.
(20:09):
Reassuring customers and protectingyour reputation is going to be a
lot more difficult when that occurs.
So sudden crisis highlightsthe importance of protection.
preparation.
While you can't predict exactly whenor how this will strike, hopefully
(20:31):
never, having emergency plans,communication strategies, insurances,
and contingency measures in placecould significantly reduce the impact.
Now here's an important point to consider.
What seems like a sudden crisis oftenstarts as a creeping or slow burn issue.
(20:56):
For example, the Black Saturdaybushfires, while devastatingly sudden
in their impact, were preceded bywarning signs like extreme weather
conditions and gaps in fire safety.
prevention strategies.
The takeaway here is that the earlieryou address risks and worst case
(21:17):
scenarios, the better your chancesof avoiding a full scale crisis.
Proactive planning and consistentvigilance are key to business resilience.
in your operation.
So as we move forward, think aboutthe type of crisis that could affect
(21:39):
your business and livelihood andleaves you completely exposed.
Are there creepingrisks you've overlooked?
Are you seeing early signsof a slow burn issue?
What steps can you take now toprevent these from escalating
into something much bigger?
(22:01):
So now I want to help you explorehow to turn this understanding
into some practical action.
When it comes to crisis management,having a toolkit of actionable
steps can make all the difference.
Let's break this down into simplificationand practicality for both your
(22:21):
personal and business resilience.
Now personal and home resilience.
Preparation at home is vital.
So when I did speak to my girlfriend abouther brother, because it was, it was big,
it was on the news, it was devastating.
So when I spoke to my girlfriend, shesaid, man, I've had businesses and
(22:42):
in my business, there's always a fireextinguisher and fire blankets, but it's
just something we don't have at home.
And it got me thinking because I'min the weeds and doing this work
all the time for tourism businesseslike, huh, wow, yes, of course.
This is the same.
(23:02):
We should be operating our lives inthe same way because it doesn't, again,
like I mentioned earlier, it doesn'tdiscriminate whether you're in no bushland
or, you know, in suburbia, like whathappened these, the, you know, we can
leave ourselves as exposed and vulnerable.
So as a bit of a checklist athome and something I've created.
(23:24):
for myself and I spoke to my own husbandabout some things to consider as I
have installing and testing your safetyequipment from your smoke detectors,
your fire extinguishers, fire blankets,all should be in good working order.
And easy to access.
(23:46):
So bitters, you know, we talkabout training our teams.
Also, our family familiarity, that we knowif we have these things, where are they?
Creating a family evacuation plan.
It delighted me having thisconversation with my colleague
that said, yeah, we've done a fullpractice, we've got one use ladders.
(24:06):
Upstairs, and we've donea practice as a family.
I was like, I've never even heard of sucha thing, because I'm in this zone now
saying, well, this is, we're all exposed.
So creating a family evacuationplan, making sure that everyone
in your house knows escaperoutes and practicing them daily.
Regularly, even just once is better thannever and taking a first aid course I
(24:32):
did this many many years ago as part ofmy hospitality training I believe at the
time I had to do a first aid and it reallyhighlighted the same thought in me Being
able to you know, I remember my son goingblue in the face because he you know
He was choking on bacon and I was justfreaked out but anyhow Taking a first aid
(24:54):
course cannot be a bad thing or at leastone of us in our organization or in our
households being able to administer CPRor treat minor injuries could save a life.
So keeping a fully stocked first aidkit is In your home and your car can
be a difference that makes a differenceand reviewing insurance policies,
(25:18):
ensuring you have adequate coveragefor natural disasters, emergencies,
including home health and life insurance.
All important things in our dayto day lives as much as it is
to build a business resilience.
For businesses, when we look atpreparation, it goes beyond the basics.
(25:42):
So here's some things to consideron how to strengthen your tourism
and hospitality or event operation.
Developing a comprehensivecrisis management plan.
Include protocols for different typesof crisis like we talked about from
natural disasters to reputational issues.
(26:05):
Shameless plug.
Enrolling into the Sustainable TourismAccreditation Business Program.
And because this is all a corerequirement to become accredited.
So you get the best of both worlds.
You're kind of pushed to do this workand you have a great thing, a great stamp
on your business that really exemplifieswhat it means to Quality, training
(26:30):
your team, assigning specific roles foremergencies such as evacuation leads
or communications managers and ensuringeveryone knows their responsibilities
and monitor risks regularly.
Conducting audits to identify hazards,assess compliance with regulations and
(26:52):
evaluate your business's vulnerabilitiesand invest in technology, secure
reliable backup systems for criticaldata, using cyber security tools and
implementing communication platformsto stay connected during a crisis.
(27:13):
Now preparation and resilience aren'tjust about protecting yourself,
they're about supporting others.
When communities are affected bycrisis, recovery efforts often
depend on collective support.
Take for example, regions likeGrampians in Victoria or areas
impacted by the Los Angeles wildfires.
(27:34):
One of the most important Impactful waysto help is by visiting these destinations
and inspiring and advocating thesedestinations to support those local
businesses in their recovery phase.
Tourism dollars.
provide a lifeline by booking astay or not cancelling a stay at
(27:59):
a local motel, dining at nearbycafes or exploring national parks.
We're injecting hope and economicsupport into that recovery process.
Your visit helps create jobs,sustain businesses and foster a
sense of normalcy for communities.
(28:19):
So the next time you're planninga holiday, consider choosing a
destination that could use your support.
It's a meaningful way for us whenwe're sitting and looking at this from
a distance and, you know, again, assomeone managing a tourism business.
Business making a difference was, youknow, just holding onto that booking
(28:43):
and not requesting that refund or comingback to us when we had the all clear,
you know, whether it was the bushfireson Black Saturday or the pandemic or
many other instances that occurredover my tenure over, you know, the
two decades that I held that position.
(29:04):
Now, I wouldn't be a good trainer withoutsome homework, and as we wrap up, I'd
like to leave you with a challenge,and that is conduct a crisis management
audit for your life and your business.
Here's what that might look like.
Identify potential crisis.
What creeping risks, slow burn warnings,or sudden crisis could you face in
(29:27):
your personal or professional life?
Map out the stages of response.
Starting with preparation.
What proactive steps canyou take to minimize risk?
For example, ensuring you have emergencyplans, conduct regular safety checks
and invest in preventative measures.
(29:49):
What immediate Steps willyou take during a crisis?
Think about communication strategies,evacuation procedures, and
maintaining calm under pressure.
I encourage you to go backand listen to podcasts.
Episode 51 of the Tourism Hub podcast, ofcourse, Crisis Preparedness in the Tourism
(30:11):
Industry, where I interview Mark Olson,speaking about his experience supporting
industry as the CEO of Tropical NorthQueensland during and post COVID 19.
Cyclone Jasper, the wettesttropical cyclone in Australia.
I loved when he said during hiskeynote at the Australian Regional
(30:33):
Tourism Convention, that preparationcan be as simple as finding your
ghostbusters, because in a time ofcrisis, who are you going to call?
to help, to aid, to spread the messagethat things are actually not as
big, you know, handling the media.
(30:54):
And then there's recovery afterthe crisis, how will you rebuild?
This might include supporting yourteam, filing insurance claims, or
reaching out to affected customers.
More importantly, Taking the time todebrief and record what you've learned
and how you could have done things better,what worked really well, what didn't
(31:15):
work, and what did we forget altogether.
This is invaluable to improve yourplans and improve your future responses.
And of course there's mitigation.
How can you prevent a similarcrisis from happening again?
Use those lessons learned in your pastexperience or others past experience
(31:41):
to strengthen your plans and adapt.
Adapt to new challenges.
Lastly, share your plans.
Make sure your team or your familyunderstand their roles in a crisis.
Regularly review and update yourplan to keep it relevant and keep
it timely and keep it top of mind.
(32:01):
Okay, in closing, thank you.
Thank you for tuning in todayto the Tourism Hub podcast.
It is with just absolute sheer pleasureand delight that we have had over
10, 000 downloads of this podcast.
Beautiful little passion project.
And if you're not yet subscribedor wherever you are listening or
(32:24):
watching this episode, please hitthat subscribe button, because it's
very encouraging to see in the datathat there's listeners and that, you
know, I'm hearing and getting feedbackthat is providing value to your lives
and your careers and your businesses.
And it's encouraging tokeep showing up every week.
(32:45):
So if you hit subscribe,you won't miss a beat.
The tourism hub podcast is broughtto you by Institute of excellence.
com the home of Institute oftourism and small business.
This month we've dropped a new course.
and that we've launched and it'sall around digital accessibility.
(33:05):
Check it out and use the coupon codeTOURISMHUB to receive a listener
love saving at the checkout.
Now back to wrapping up today's episode.
Preparation may not be glamorous.
But as Jonathan Bernstein says,it's the foundation of resilience.
Whether you're facing wildfires, financialsetbacks or workplace disruptions,
(33:31):
being proactive can reduce damage,save lives and help you recover faster.
Crisis reminds us of the life'sunpredictability, but they also show us
the power of preparation and community.
Let's take these learnings andlessons and experiences to heart,
(33:53):
plan for the unexpected andsupport each other along the way.
Thank you for joining me today.
If today's discussion resonated withyou, share it with someone who could
also benefit from these insights.
And remember, resilience isn'tjust about surviving, it's about
doing better today than what wedid yesterday in the first place.
(34:17):
Face of challenges.
Until next time, stay prepared, stayproactive, and remember every step you
take today helps build a stronger, moreresilient future for your business.
Until next time, my beautifulfriends, stay excellent and stay
(34:37):
really, really safe out there.
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