Travel Agency Business Environment

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

Flight Centre offers a very competitive price. The prices are usually are lower than its competitors when it comes to domestic and international flights. It provides the option of different prices ranges. These price ranges depend on the services that a customer requests. It provides economy class, business class, premium class, and first class price ranges. Due to its affordable prices and good services, it has grown to become a 13.5$ billion business comprising of more than 30 brands. It works had to keep up with the competition by providing best possible prices while ensuring customer loyalty (Flight Centre the Airfare Expert).

Which of the following would be internal (“push”) factors in terms of influencing people’s decisions to travel?

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.

Flight Centre has established and bought different brands now consisting of more than thirty to cater to different levels of customer.

Flight Centre is market leader in the Australian retail market with 20 % market share in 2001. In the corporate market they have similar market share. This position indicates strong customer satisfaction and ability to deliver on their promises.

When Internet was introduced in the 1990s, STA Travel experienced an increase in competitors as the Internet was predicted to account for more bookings than offline alternatives. In an effort to respond to the technological

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).

With the passage of time traveling industry has emerged as one of the most profitable and lucrative industries globally. This can further be demonstrated from the fact that traveling industries today are just not localized to providing their customers with tourism related facilities but along with this they also ensure that their customers make use of all possible facilities and leisure resources through which their clients can enjoy the most memorable trip ever. In addition to this it is also important to mention that the recent economic slump developed serious repercussions upon the development of the travel industry. It was estimated that in the year 2008 international travel

In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as

This paper will be dynamically examining the tourism industry during the 2000s. It will begin by using the PESTEL framework to analyse the macro environment and determine which factors drive the competitive forces within the industry. Following this, Porter’s Five Forces model will be used to analyse the actual competitive forces at work within the industry and determine the relative importance of these forces.

Presented exhibits determine four main segments of the cruise tourism market – contemporary, premium, luxury and destinations. The pattern of market segmentation in this market can be described as clustered preferences based on the natural market segments which will be discussed. It is important to note that major players in the industry develop several brands allowing them to cater to the different segments.

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

Analyse the Tourism New Zealand marketing strategy used to market New Zealand internationally in terms of the following components: