Pest Analysis for a Company in the Tourism Industry :

P1- Describe the travel and tourism component industries and provide examples of domestic, inbound and outbound organisations within them.

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The number of trips taken by Britons overseas has declined by 12.6 million, from 69.4 million to 56.8 million between 2007 and 2011, according to the research by Travelodge. This means that 5.9 million holidays and trips have come out of the market altogether when the number of domestic holidays and trips are factored in. This is shy of the government’s stated ambition for domestic trips to replace the number of missing overseas trips, the report says. However, the analysis shows that ‘staycation’ breaks were up by 5.6% as the recession proved that holidays are an essential rather than a luxury. UK city breaks account for 23% of domestic tourism but seaside towns are in decline by 5%. Total tourism revenue was up 12.6% to £40 billion between 2007-2011 against the general economy up 8%. Employment numbers in tourism have bucked the wider trend, thanks to strong growth in 2011 when 120,000 new jobs were created. The UK’s appeal as a tourist destination endured during the double dip, with overall visitor numbers up by 3.1% to 157.4 million, the report shows. Staycations form the backbone of the tourism economy, with domestic trips and holidays increasing by 5.6% to 126.6 million.

In this document I am going to be looking at factors that affect both inbound and domestic tourism deciding to travel to the UK or travel within the UK. Some examples of factors that I will be reviewing include the following; health, safety and security, accessibility, marketing campaigns, availability of products and services, quality of good and services, economic recession in the UK/and or tourist generating countries, exchange rate, travel restrictions, emerging of new markets, competition from other destinations and finally weather.

Bed Bath and Beyond is struggling in the current market. This PEST analysis is aimed at determining what the major Political, Economic, Social, and Technological are in current business environment, and how these factors are affecting the Home Goods Retail industry. The modern polarized political sphere, especially in the United States, can mean that elections result in a massive change in policy, especially regulatory reforms on businesses. With an increasingly global and fluctuating economy, modern businesses need to be aware of everything from regional tax rates to international tariffs. Social norms are changing rapidly and are different from region to region, meaning that modern business’ needs to be aware of the social landscape they are operating in. Finally, the rate of technological growth is the highest it has been in the history of the Earth. All of these rapidly changing and nuanced factors need to be studied and well understood in order to run an efficient and effective modern business. All of these four factors are imperative in understanding why Bed Bath and Beyond is in its current financial situation.

Tourism data indicates that there will be a shift in international visitor demographics over the next 8 years (Appendix 14). Primary research has not provided sufficient information to draw conclusions about how this change in the origin of international tourists would impact pricing expectations see (Appendix 13) for further recommendations.

Within travel and tourism inbound and domestic tourism are frequently changing, there are many internal and external factors which have a major impact and contribute to these changes. In this assignment I am going to analyse 3 internal and 3 external factors which affect the travel and tourism industry.

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The political factor reflects to the degree where government’s role impact son the organisation’s operations in tourism and hospitality industry. The essential political factors including law, protection laws, tax rates and other situation along with political stability might influence the operation in tourism and hospitality industry. From global context, the political situation prevailing in UK can impact on the tourism. Situations are changing as terrorist threats are increasing and this is turning out to be a disadvantage for UK economy to work smoothly.

Since 2001, NEXT has created the next day delivery service on most home shopping orders. Currently there are more than 2 million customers in the UK and over 70% of NEXT 's home shopping business is now transacted online (nextplc.co.uk, 2011). Additionally, in October 2007, Meadow Hall in Sheffield became one of the first concept stores NEXT had fitted out in the new style that is now commonplace throughout its UK outlets (careers.next.co.uk). These events highlight the firm’s consideration of its customers and ability to diversify the service to satisfy customers’ needs.

The Travel and Tourism industry is still one of the largest single businesses in world commerce and its importance is widely recognized. The tourism industry is now one of the largest sectors earning foreign exchange. In the face of many benefits, many countries have started assigning due weight age to the tourism industry in their national development agenda. Tourism is an industry that operates on a massively broad scale: it embraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international tour operators. Originally, non-traditional industries such as tourism emerged as a solution to strike a balance between ecology and industry

The financial statements are very useful to all this group of user. Explain each of them;

Singapore government has always been in favour of the tourism sector. In fact, Singapore Tourism Board (STB) launched a $90million BOOST (building on opportunities to strengthen tourism) for the tourism sector). The initiative help pushed the industry through tough times by assisting MICE (Meetings, Incentives, Conventions, Exhibition) companies to alleviate their business costs (Singapore Tourism Board, 2009).