I will pay for the following essay (European Tour Operators) Strategic managment. The essay is to be 6 pages with three to five sources, with in-text citations and a reference page.
External Environment Analysis – PESTLE Political Environment Political stability in the context of growth pertains to strong institutions, an efficient bureaucracy, low corruption and a business climate conducive to investment (Shepherd, 2004). The UK tourism industry is unable to compete against international competitors due to lack of support from local government in the form of reforms and hence unable to reach its full potential (Stamford, 2009). Visit Britain expects tourism to grow into a ?113bn industry if managed properly. However, despite tourism funding by the government being doubled since 1997, there is a threat that UK tourism sector could slip behind international competitors. Economic Environment The tour operators’ industry has faced both economic and structural challenges over the past five years and through 2013-14 (IBIS World, October 2013). Industry revenues have been as a result of economic downturn, lower disposable incomes and reduced consumer confidence, due to which domestic tourists seek cheaper destinations. Tour operators’ revenues in 2008 shows an increase over 2005 – from €60bn to €84bn (Appendix B) but this could also be due to rise in tour prices, rise in airfares and hotel charges. Therefore, loss of consumer confidence and declining incomes is a threat to the sector. …
Consumers demand value for money and consumers seeking peace of mind prefer packaged holidays (Euromonitor International, 2013). Tour operators now offer flexible, dynamic packages but credit crunch impacts tourism as well. Consumers have responded to the credit crunch by choosing to holiday within the UK which has led to the trend of ‘staycation’ (Williams, 2008). Staycation holidays have increased by 13% and outbound travel decreased by 18% (Stamford, 2009a) which suggests that staycation and packaged holidays provide an opportunity to tour operators to redesign their product offerings. Technological Environment Technology has empowered the consumer in many ways. Low cost airlines have made holidays more affordable. in addition are the high-speed train networks. Internet penetration provides an additional distribution channel. Technology enables access to consumer data which facilitates tailoring their offerings to consumers. Mobile technology and social networking have further empowered the consumer in seeking information, comparing and reading reviews about service providers before booking their holiday. This has helped major tour operators such as TUI to target specific segments through the strategy of differentiation. Technology, thus is an opportunity to exploit the sector. Environment Tourism is generally associated with environmental degradation and ecological imbalance. The region is negatively impacted when the level of tourists exceed the environment’s ability to cope with the use (UNEP, n.d.). In addition, natural resources are depleted. land area is reduced as infrastructure development takes place. Local resources are also used up by tourists thereby impacting the lives of the local people.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.