Pestel and Porter's Analysis of Tourism Industry

As for external factors one of the external factors would be perhaps a new law that is given and affects directly or indirectly the business and that business needs to make some changes.

Majority of the tour operators are a niche market where one of the tour operator is not. As seen on the map, Topdeck, Contiki, STA Travel Australia and Viator is targeted to a specific age group. Topdeck is targeted to ages between 18 to 30 year olds, Contiki is targeted to ages between 18 to 35 year olds, STA Travel Australia is targeted to under the age of 26 and Viator is targeted to ages between 13 to 72 year olds. Travelmarvel is targeted to everyone with a higher status because majority of the people who takes Travelmarvel is around the age 55+ and their income is stable. Also this tour operator has a great image and reviews hence people will take it. Whereas, the other four tour operators are budget friendly since it is targeted to young adults where they may be still studying and paying their education

the internal analysis of the firm and the external analysis of the industry and competitive environment

341). It is aimed at identification of internal and external forces that may influence the company’s performance and choice of strategies in the future (Kotler et al., 1999, p. 111).

An organization’s macroenvironment consists of nonspecific aspects in the organization’s surrounding that have the potential to affect the organization’s strategies. Macroenvironmental variables include

Identify elements of the external environment and internal resources of the firm to analyze before formulating a strategy.

Travel started to develop as a business many years ago. This industry began, when the ancient and rich inhabitants of Phoenicia, Rome, Egypt, Greece, and China; out of curiosity and a sense of adventure, about their surroundings, began to travel. Today tourism is a billionaire industry that serves the needs and wants of millions of domestic and international tourists. There is no doubt, that capitalism has played an active role in the developing of this powerful enterprise. However, when this business began, only the rich populations were able to enjoy their summers on the coasts and countryside. As these powerful people continue traveling, their servants have to cater for their patrons travel and accommodations needs and wants. As the Roman Empire decline, this business endured a backlash. In Central America the Incas had to travel to trade with the different racial groups, which were part of their empires to trade and collect taxes from their peasants.

Globally the tourism and hospitality industry is undergoing and evolving the radical changes. From the past experiences are now advancing at greater pace through faster development of skills and knowledge developed to create and adapt innovation in several ways. Therefore, it is important to have greater understanding of current issues and knowledge in order to cope with future challenges effectively.

These factors influence the internal environment of an organisation and they help in identifying the past and the present of the company, It also provides a frame work for reviewing strategy position and direction of the company.

Tourism plays a vital role in economic development in most countries around the world. The industry has not only direct economic impact, but also significant indirect and influential impacts. There is agreement among experts that the travel and tourism sector is the fastest growing of global economy. According to the latest UNWTO World Tourism Barometer, international tourism receipts surpass US$ 1 trillion in 2011, growing about 3.8%up from 2010 (WTO, 2012).

The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services.

Before one can look at specific factors relating to the firm itself, it is necessary to first examine the nature of the external or

The macro environment deals with the external and uncontrollable factors of a business. The macro environment helps the business with identifying it’s triple bottom line and can help them adjust necessary factors in their planning. The macro environment also includes analyzing different factors in the external environment, In order for the business to take the current issues and create strategies of their own on how to eliminate them for the benefit of their business. The macro environment will look at factors such as inflation, unemployment, spending and the gross domestic product.

With world travel market having undergone significant changes over the last few years a new type of tourist has emerged known as the Free Independent Traveler or Tourist (FIT). The definition is broad but tends to refer to people over 35, often, though not necessarily, of above average income who like to travel in small groups, usually couples. They eschew mass tourism and the holiday package concept promoted by Travel operators, in favour of a more individualistic approach to travel. There are two implications to the idea of the Free Independent Traveler. One is important in the context of a marketing niche with a distinct economic behavior whilst the other concentrates more on the philosophy of travel. This distinction can be summarized in how they are described. For the economic importance of tourism and for marketing purposes they are Free Independent Travelers (Upper

There was a time when Indian families would plan their annual trip well before 6 months in advance, after spending long & sweaty hours queuing up in front of ticket booths. Today, the rise of Internet credibility coupled with falling rates of air travel has helped the air travel catapult to glorious success.