Bismillahirrahmannirahim. Assalammualaikum whb. to all readers.
I thank Allah for this opportunity again and pray that we are all in good health and always in a state of readiness to calmly, harmoniously, ethically and professionally fulfil our obligations and responsibilities as good citizens, either as leaders or as followers, Insha-Allah.
In this issue, the writer has chosen ‘leadership’ as the topic of discussion and how it is essential to the marketing process of halal tourism products and services. I will begin with an event that holds great significance to our minds and hearts.
ISLAMIC CALENDAR –NEW YEAR 1446 HIJRI
Alhamdulillah, we are now in the new year of 1446 Hijri, which begins with Muharram, which is the first month in the Islamic calendar. This year, 1st Muharram 1446 falls concurrently on Sunday, Jul 7, 2024.
The significant element highlighted in Muharram is that “hijra” means departure from one place to another for betterment, spiritually and physically.
It also features the role of leadership, strategic planning, foresight and the need for humanity, loyalty, perseverance, resilience, unity, co-existence and trust in God in moments of crisis, adversity and hard times.
LEADERSHIP IN PERSPECTIVE
Leadership has a special place in Islam as it has led and created the world’s civilisation throughout history. It continues to contribute to good causes and benefits of humankind, Insya-Allah.
The Holy Quran and hadiths (sayings, traditions and teachings) of the Prophet Muhammad S.A.W. (peace and blessings of Allah be upon him) mention significantly about leaders, types, leadership qualities and governance.
We can use them as our principles, guidance, strategies and management tools to excel in everyday life, family, community, nation-building, business and hereafter.
There are four primary obligatory characteristics of the Prophet S.A.W. (peace and blessings of Allah be upon him) that leaders can emulate, i.e. honesty and integrity (sidiq), trustworthy (amanah), conveying (tabligh) and intelligence (fathonah).
Leaders must also be kind, truthful, accountable and responsible of their acts, just, trustworthy, modest, simple and humble, generous, ethical, in consultation (syurah), always remember Almighty Allah and avoid wrong doings (taqwah), have correct worldview, knowledge and wisdom, have spirit and power of sacrifice and perseverance, bravery, compassion and forgiveness, passion and excellence, patience (sabr), consistent (istiqomah) and dependence on Allah (tawakal), in quest for meaningful success.
LEADERSHIP IN HALAL TOURISM MARKETING
Today, more than before, halal tourism, travel, hospitality, and related fields require solid and capable leadership to lead the destination to remain competitive in the marketplace.
This applies to all levels and categories that make up the ecosystem. The demand and interest towards the halal tourism segment continue to show significant growth from the last five years amid its presence 15 years ago.
The destination needs transformative marketing ideas and enablers to navigate the challenges and capture new ground in the market, especially in prominent and high-income Muslim countries and in where the presence of sizeable affluent Muslim professionals and respected business communities in non-Muslim countries.
The destination is in high need of quality, passionate, and influential leaders and winning teams to make a high impact on marketing strategies and desired results. We also have to ensure that infrastructures and services are in place and maintain them according to international best practices and halal standards.
TOURISM MARKETING MIX
In discussing this further, we must realise that the tourism industry is highly influenced by internal and external factors both from the perspective of consumers and suppliers. In this regard, for a destination that has a plan to position itself as friendly to potential Muslim tourists, it has to provide at least the capacity and capability to lead in the primary four marketing mix, namely the product, price, promotion and place.
In today’s environment, these mixes may extend into more specific areas, such as people and technology. In the context of Islamic tourism, the formulation of marketing mix strategies must be balanced and sustainable between the needs of industry and the demands of Islamic principles by the tourists and community in the form of policies, materials, processes and end-products, among others.
PRODUCT LEADERSHIP
For halal tourism, those products, infrastructures and services offered must conform to the shariah requirements, among others, to ensure that they are halal (permissible), exist, are not ambiguous, safe and meet the standards and quality control.
Assessment, standard compliance, certification and endorsement are among the measures that have to be met and acquired to ascertain the product quality. No sub-standard and mediocre is allowed.
In the interest of product quality, a producer must follow the process as early as idea generation, pro-type, product & service testing, defect improvement, production and product announcement and launch and pricing.
As for Islamic tour packages and services, we may need to consult Sharia experts and advisors in related fields for advice and opinions on halal standard compliance.
The package must also include quality tourism establishments, attractions and products that feature Islamic values and do not contradict Islamic principles.
Alhamdulillah, now we have an encouraging number of recognised Muslim-friendly accommodations and other services that are readily available and can be packaged and patronised conveniently and confidently.
Similarly, for restaurants or kitchens serving halal foods and drinks, an operator is required to have a valid halal certificate from the bona-fide authority.
As market leaders, we cannot take for granted and compromise this halal and toyibban requirement, which, if we fail to comply, affect our business reputation and sales revenues.
PRICE LEADERSHIP
Price is an essential element in business and everyday life. Market forces, value, supply and demand, negotiations by both sellers and buyers determine tangible and non-tangible products and services prices.
This pricing mechanism is evident in the tourism and travel sectors, which have complicated supply chain systems. Trade shows, expos and travel marts are some of the essential avenues involved in travel-related business professionals and officials to meet and negotiate terms, rates and prices for their upcoming travel seasons and business collaborations that include destinations, airlines, cruises, hotels and product management.
The prices of the products and services should be attractive, reasonable, justifiable, affordable, and not over-priced (excessive) to clients while also not being below the cost of production, which denies profit and revenue to suppliers.
There are different categories of travellers that require different pricing designs and strategies, such as ordinary leisure tour packages, niche and particular interests, and luxury tours.
Here lies the leadership role in outlining the pricing objective, studying the trend and demand and its implications for setting prices, estimating the cost variations at different levels, and analysing competitors’ prices and offers.
Halal tourism is dynamic, yet it has also been developed based on moral values, quality, fairness, justice, transparency, integrity, and sustainability. It is beyond profit.
As a market leader, upon launching our products and price campaign, we must also be prepared to face the price reaction and price attack from the marketplace if the prices are not favourable to the customers and suspected of any hidden cost and uncertainty.
There have been many unpleasant stories and cases of over-pricing, cheating, and unreasonable price reduction that lead to loss of customers, mistrust of the brand and legal implications. The price must also not contain an element of interest riba’ (usury and interest).
The Islamic principle emphasises value maximisation rather than profit maximisation to promote the concept of justice. Hence, tourism players and service providers, including those involved in Islamic tourism, can take this challenge by offering products and services at fair and just prices, reflecting through tour packages, hotel rates, and service charges.
Insha-Allah, this will lead to baraqah (an increase in that given bounty, blessings or Divine Gift from Allah the Almighty, which continues with firmness and stability towards increases) to the revenue earned and open wider opportunities, productivity and success. In practice, we must also allocate our revenues for zakat, infa’ and waqaf as our obligations to ummah and social justice.
PROMOTION LEADERSHIP
Effective promotion is another crucial marketing mix in tourism, which is needed to create and enhance awareness, demand, sales and revenues. Destinations used to spend extensively on promotions, advertising, public relations, sales missions and business visits.
Now, due to high costs and advancements in technology, changes in travel policy, tastes & preferences in information dissemination, they must be precise and intelligent in spending through market segmentation and product differentiation.
A destination and players need to evaluate and formulate promotional strategies to attract purchases. The promotional channels must be relevant and effective in today’s context, especially in terms of digital technology and online, such as AI (Artificial intelligence).
In respect of halal tourism, the contents of the promotional materials like TV commercials, video clips, advertising creatives and slogans, language and attires must comply with the code of ethics, advertising and communication codes, halal standards and other relevant requirements. The message and promises must be factual, honest and not misleading.
PLACE (DISTRIBUTION) LEADERSHIP
Place leadership is known as a distribution channel, and the methods have grown over the years with new technology, logistical procedures and policies. Tourism industries have developed specific distribution models involving intermediaries like tourism wholesalers, tour operators and retailers, travel agents, sales representatives and travel counsellors.
Apart from selling and marketing tour packages and ticketing, there is also another critical channel, i.e., licensed and registered tourist guides, who play a significant role in the travel industry.
With the technology in place, a destination and travel supplier may leverage the digital platforms for promotional and sales campaigns more efficiently and effectively.
This is in addition to the still needed word of mouth and face-to-face sales visits and product familiarisations. Today, travel information and promotions are expected to be made available on Facebook, Instagram, TikTok, Meta, etc.
Again, while the technology hardware and software are expected to be produced according to manufacturing reliable standards, the contents developed and processes involved must observe and fulfil the Sharia
compliance, laws and regulations. It is critical not to slander, discriminate, lie, and be disrespectful.
SOCIAL-EMOTIONAL AND COGNITIVE DEVELOPMENT
Apart from physical and technological capacities for marketing and business purposes, leaders must also develop their social-emotional intelligence and cognitive capacity to become knowledgeable and skillful in dealing with their team members and stakeholders.
The mindset of a destination manager, product or marketing manager has to be guided and enhanced by the clear and right worldview, principles and purpose of life together with the best ethics, practices and governance.
Leadership is about leading and managing people effectively and efficiently. It is not demonstrated by giving orders and speaking loudly solely but more towards having a profound and practical listening ability to people’s issues and solving them together.
A leader does not know all and everything. They depend on other people too to succeed and cannot work in silo. No matter how big the corporate size and business are, we have no choice but to deal with people in the designed system.
Hence, the leaders in the industry must have the right attitude and behaviour. In today’s terms, leaders must have the transformative mind, the right social-emotional intelligence and cognitive development stage to face reality and constant changes.
VALUE CREATION
In developing halal tourism to an advanced stage, leaders have the challenge to strike a balance between both the physical and spiritual needs of Muslim travellers during their travels.
It is a reality that halal tourism co-exists with conventional tourism, which has been firmly rooted in the market. While we strive for better economic returns, we must not lose sight of the importance of value creation among the people we serve.
The yield must be commensurate with the value, experience, meaning, and quality of life of both suppliers and buyers (tourists) when they transact businesses such as in accommodation, tour packages, visits and logistics, and after the travel completes.
CONCLUSION
All the above leadership traits, qualities and characteristics are crucial to the leaders themselves, companies and organisations. Still, more importantly, all of them contribute significantly to the well-being of the society and country we live in and beyond our borders.
This observation and reflection mark the end of my article in this issue. Upon Allah is our reliance, and He alone grants success. Thank you. See you again in next issue, insha-Allah. Wassalam. Let’s celebrate and reflect our 66th National Day on Aug 31 with dignity, unity and responsibility. – @Halal