Consolidation in the Tour Operator Industry Case Study

Consolidation in the Tour Operator Industry - Case contemplate ExampleVisit Britain expects touristry to grow into a ?113bn industry if managed properly. However, despite tourism funding by the g overnment being doubled since 1997, there is a threat that the UK tourism sector could slip lowlife international competitors. Economic Environment The tour operators industry has faced both frugal and structural challenges over the past five years and through 2013-14 (Ithe BIS 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 show an extend over 2005 from 60bn to 84bn (Appendix B) but this could also be, due to rise in tour prices, a 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 mind take package aged holidays (Euromonitor International, 2013). Tour operators now offer flexible, dynamic packages but credit crunch impacts tourism as well. Consumers have responded to the credit the unch by choosing to holiday within the UK which has led to the trend of staycation (Williams, 2008). Staycation holidays have increase by 13% and outbound travel decreased by 18% (Stamford, 2009a) which suggests that staycation and packaged holidays provide an chance to tour operators to redesign their product offerings. Technological Environment Technology has empowered the consumer in many ways. cheap airlines have made holidays more affordable in addition, are the high-speed train networks. Internet sixth sense provides an additional distribution channel. Technology enables access to consumer data which facilitates tailoring their offerings to consumers. Mobile, technology and social networking have throw out empowered the consumer in seeking information, comparing and reading reviews about service providers before booking their holiday. This has helped major(ip) tour operators such as TUI to target specific segments through the strategy of differentiation. Technology thus is an fortune to exploit the sector. Environment Tourism is generally associated with environmental degradation and ecological imbalance. The region is negatively wedge when the level of tourists exceeds the environments ability to cope with the use (UNEP, n.d.). In addition, natural resources are use up land area is reduced as infrastructure development takes place. Local resources are also use up by tourists thereby impacting the lives of the local people.