Final answer:
Yes, suppliers take multiple risks when working with tour groups, including financial, dependency, and reputational risks. Mitigation strategies can reduce but not fully eliminate these risks. (option 1)
Step-by-step explanation:
Yes, suppliers do bear certain risks when engaging with tour groups. These risks include but are not limited to financial risks, dependency risks, and reputational risks.
Financial risks come into play if the tour group does not meet the expected volume of business, leading to revenue losses for the supplier. Dependency risks occur when a supplier relies heavily on one tour group for business, and any changes in this relationship could significantly impact the supplier's operation. Reputational risks arise if the tour group fails to provide adequate services to tourists, affecting the perception of the supplier by the association.
By working with diversified tour groups or implementing contracts that include safeguards against these risks, suppliers can mitigate the adverse effects. However, completely eliminating the risk is typically not possible, and thus suppliers must be strategic and cautious in their partnerships.