Messages
Proposals
Get Urgent Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework Writing
100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support
Table of Contents
Factors Influencing Travel Decisions of Passengers
Difficulties in Cost Strategies:
A) Different Types Of Tours Operators:
Structure of the Business Structure:
Major Operators of the Tourism:
C) Relevant legislations and role of trade bodies
European Union Package Travel Directive:
Association of British Travel Agents:
The Association of Independent Tour Operators:
Vertical and Horizontal Integration
Airline, Travel Agency and Tour Operations
It
is very important for every airline company to provide quality services to
their clients. This report is mainly consisting of those factors which most of
the air passengers keep in mind before they make their travel decision. There
are a lot of factors and features that people take into account when choosing a
service. Some of the most important factors like price, convenience, purpose of
trip, prior experience and appeal are discussed below.
The popularity of an
airline depends on a lot of factors. Some of these factors are within the
control of these businesses but some of these factors are not in their control.
As traveling through flights is one of the most easiest and convenient way to
travel and travelers wouldn’t stop booking flights any time soon. Like in other
industries, there is also a lot of competition in this industry and every
airline company want to provide every type of services to their customers in
order to attract them towards them. Owing an airline company is very difficult
and to run this business successfully you have to come up with new ideas in
order to expand their customer’s base. Although safety and accountability are
the common services which every airline company is providing but in order to
succeed these airlines should provide services like; passenger facilities,
image safety, suitability, offers Wi-Fi, easily up gradation, go to extra mile
to provide comfort etc.
The companies which
are providing transport services mainly airline companies such as Easy Jet, and
then they should try to provide basic facilities to their passengers before the
flight at terminal and during the flight. The air travelers not only care about
the fair prices but they also want what services the Easy Jet airline offer to
their customers before taking the flight takes off and during the flight. For
example, the customers want to know about where there will be any layover, or
is this a non-stop flight? What accommodation services Easy Jet airline provide
while waiting for the flight? Will there be any WI-FI onboard or in the lounge?
Will I be comfortable during the flight? These passengers traveling through the
air also care about the comfort and convenience. Like they want to know that
they are getting the best services for the amount they have paid to the Easy Jet
airline company.
Customers traveling
through Easy Jet airline have a lot of expectations from these airline
companies and their expectations are rising day by day looking into the
competitions of the market. So the transport operators of these companies should
provide immediate facilities to these customers like what they want from them.
For example they should provide 24/7 online booking services, providing
wireless internet technology services at their terminals and on the board
Scholars have found
that the perception related to risk significantly influence the intention to
travel. The prior experience of these travelers with the Easy Jet airline
company also has a major impact on their future decisions. Like they want that
the Easy Jet airline company should be loyal to their customers in every type
of situation. If these companies behavior is loyal to their customers then they
would definitely use their services again. Also Easy Jet Company should try
providing unique services to their customers in the future so that they can
compel their customers by using their services again.
For
most of the people travelling through Easy Jet airlines, prices of the Easy Jet
airlines will have a greater impact on the decisions of these travellers. When
they use transport services they first look for important considerations and as
told above price of Easy Jet airlines is one of the most important
consideration. People who are having financial problems they always try to
travel through cheapest flights of Easy Jet. In order save cost of the flight,
these passengers usually try to travel through night flights, leaving for
airport early in the morning in order to catch their flights etc.
These
operators of Easy Jet airline company try to use variable pricing in order to
maximize their revenue. To charge appropriate prices for their tickets they
look into a lot of factors before setting their prices. They first look at the
demand for their services. When the demand for their services increases then
they try to charge higher prices. On the other side when the demand for their
services decreases then they try to charge lower prices and sometimes offer
discounts on their tickets in order to stimulate their demand
Transport
is one of the most important factors in day to day life of the people now a
day. The concern of these people related to travel decisions depends on a lot
of factors like the purpose of the trip they required to be fulfilled. The
availability of the traveling mode is different and the people can choose these
modes with their desire to complete their trip. Now people choose mode keeping
many things in mind like comfort, security, availability of vehicles in time,
trip distance, time reliability, cost of the travel mode etc. Since there are a
lot of modes available for passengers so people have a lot of opportunities to
choose their mode of travelling. Some of these factors are characteristics of
the trip maker, characteristics of the journey and characteristics of the
transportation facility.
EasyJet
Company is a European airline company who deals on the bases of the low fares
and has cost advantage over the other companies. According to them they have
been supplying qualitative services to the people at charging low rates of fare
and other charges. It is analyzed that EasyJet should focus on the porter's
generic strategies so that there could be competitive advantage in the market
scope
This
strategy explains the ways in which the different companies have a competitive
advantage factor by which they can compete with other companies. These factors
are specific to the company and they can stand out in the market because of
those qualities in services. Although there have been different critics found
in this theory, this is still a good strategy to get up and be effective in a
market.
The
porter’s generic strategies include different factors which can be considered
to get the competitive advantage. These factors were named as Generic
Strategies. The generic strategies are as follows:
·
Cost Leadership
·
Differentiation
·
Focus. The focus is
further divided in two strategies. The one is cost focus in which the cost is
considered to compete while the other one is differentiation focus in which the
product is considered for competition. These will now be discussed further in
the explanation below:
In
this strategy the company considers highly the costs of the company to be
considered and then take steps to reduce them. By this way the company will be
able to decrease the costs and hence increase the profits. They will therefore
charge the lower prices as they will be incurring the lower costs, hence
gaining the modest and competitive advantage. However they company would not be
gaining competition if other organizations decrease or cut the cost. The
company would only benefit if they have good quality. However, good quality
with low costs can be achieved by economies of scale.
Differentiation
strategy is followed in the situations when the company has the ability to
produce products that is different than the other products of the competitors.
They can gain competitive advantage over other companies if there products are
more innovative than the other companies. The features that the company inserts
in their product are only present in the subject company.
The
differentiation could be either due to design, product quality or best
performance or after sales services etc.
The
focus strategy which different companies follows is one in which the company
focus on a certain type of factor. For example the company may focus on either
cost strategy to gain competitive advantage by the cost lowering strategy.
However they can also focus on the differentiation strategy too to beat the
competitors and get the competitive advantage.
As
the EasyJet Company has maintained their company most approachable due to the
cost strategy in the fast, they should maintain this strategy at these times
too. For example they should not move from cost leadership strategy. This will
enable them to compete in the market because of different ways. For example
first of all they charge lower costs and as discussed they are providing the
quality services, they will attract more and more customers towards themselves.
Along with they can compete because they will be creating the barriers of entry
for entering the market and hence the competition will come down.
·
The EasyJet company
can enjoy higher costs even in the competition
·
The airline company
would have lower entrants due to higher costs of entry but the EasyJet company
can get the other small players from the industry
·
Increase market share
because of low competition which will be caused by cost leadership strategy.
·
Costumers understand
the lower cost and price as lower quality.
·
The competitors may
know the way of reducing the costs which will then be of no use for the business
or company
EasyJet
Company can decide to provide the services of the tour operators as the
operators can provide sightseeing tours as well as they can combines tour through
focus on the travel components. Moreover, there can be tours on the package
holiday, EasyJet Company can also advertise and produce brochures in this way
Outbound
tour operators are the tour operators who manage the travel activities of the
travelers around the world who are assisted by the different tour and travel
agencies. They have the ability to let go the travelers all around the world.
However the most travelling spot for the travelling is now Europe.
Inbound
tour operators are the tourism and travelling agents who arranges the
travelling the foreign non-residents to the country. They actually arrange the
different services that need to be offered to the foreigner travelers. This
includes the pickup service, accommodation and other necessary service that a
person would need.
Domestic
tour operators are those that provide the services to the travelers that travel
within the country. These travelers visit from one part of the country to
another and hence the domestic operators arrange the travel activities for
them. These services may include parking services, accommodations and boat
travel etc.
these
are the tour opearators that provide the travelling searches to a specific
niche area and just provide the services to the travelers for the areas that
are they specialist in. for example a specialist tour operator would be the one
who has specialities to travel different people to Switzerland. The specialist
operators will therefore be providing the services of the tours and travelling
to just a special specified area.
Mass
market operators are those that provide the services in a special package for
example the accommodation, travelling and transfers. These are the operators
that are well known in the market and provide the holidays to different
travelers. One of the large market player in this criteria is Thomas cook
travelers.
These
are the opeators in which the travel company manages the travel and tourism
activities by internet. They have a will modified website or internet platform
that automatically processes the orders of the travelers. They can book the
hotels and travelling media for example the airline tickets through the
website.
There
are various stakeholders in the tourism and travel industry, however, the
industry structure is bigger because there are chances for the companies to
expand in the segment. In the airline market, the EasyJet can follow the
innovation in the technological factors, as there could be effectiveness for
the company in this way
The
business structure needs the following six components:
1.
Attractions:
these means the attractive spots that is present in a
country.
2.
Transport:
business depends on the transport infrastructure of a
company
3.
Tour
Operators: these include outbound, inbound and
domestic operators as discussed above.
4.
Travel
agents: these are the people providing the
travel activities
5.
Tourism
Development: this means the developments that take
place in the industry of tourism.
The
list of the major operators in the industry of tourism is as follows
·
Adventures by Disney
·
Voyages jules journey
·
Scott dunn etc.
The
people who work under the contracts which do not employ’s the people for
working are called Independent operators. They get paid by the service
providers. The payer does not need to deal with the funds that are invested and
when and where are they invested.
In
the travel and tourism industry there are beneficial legislations for the EasyJet
because in the sector of commercial airlines, there are services from various
companies and majorly focus on the transport supply chain. It is concerned that
commercial airlines are given the values because there is increase in the
revenue of country through the Transport Association. Therefore, for the
EasyJet it is easy to follow the global aviation industry by taking advantages
from the advanced scanning technology. The company can keep passengers through
focused on the aspects related to the maintaining operational visibility
This
is the main commission of the European Union in which the travel and tourism
industries are regulated. They rule over the service provision. For example
they provide the customized travel packages, in which the travelers can book
the travel packages such as accommodation and flights etc. on the website and
then book the local transport facility on the other website.
Association
of British travel agents is the leading provider of the service provision in
the British. According to their narrative they are they supply the world and
local tourism with safety and quality and has been promoting the tourism in
global and home markets.
Currently
the FTO has been merged with the association of british travel agents and
according to them they have been strictly following the aims and views of the
association of british and travel agents.
AITO
is the association in which more than 122 tour operators work. According to the
association these parts of the
association work in a passionate way to serve the travelers around the world.
all of the member of the association are required have an efficient customer
satisfaction who will focus on three main pillars e.g. choice, quality and
service
In the business of
retail travel environment, providing efficient services to their client is a
very important part of an organization. Providing efficient services to their
clients is an intangible part of the assets and the Easy Jet airline company
should try to rate these services for clients in order to increase the overall
performance of their industry. It is very important for companies like Easy Jet
Company to keep their customers happy at all levels. In the retail travel
industry, the retail environment focuses on the customer service so that there
could be increase in the profit through increase the performance. Moreover, in
the retail travel environment several feedbacks are taken by the customer to
keep customer happy
Travel
agent helps people in arranging their holidays. They are usually paid by the
people who are arranging these holidays. They not only arrange holidays for
their customers but also offer other range of services like they give opinions
to their customers where to go and local tourist attractions. They also offer
advice and information to their customers. They sell and administer bookings
and on behalf of tour operators. Other roles and responsibilities of travel
agents are;
·
Using online booking
system to secure holidays of their clients
·
Keeping clients up to
date with any changes in their routine flights
·
Collecting and
processing payments
A travel agent is a
person, who is involved in arranging and selling transportation, helps
customers in their accommodation, tours and trips for travelers. Using the
services of travel agents is very helpful for customers who are travelling
international flights. It saves both times and money of the customers and most
importantly it saves headaches problems of their clients.
There are mainly 5
types of travel agencies which are explained below;
In this type of travel
agencies there is only one shop. The independent travel agents partner with the
host agency and earn commission for all travel packages and deals sold. They
offer limited number of services to their clients which may be specialized.
Their services may possibly be family-owned or a single-trader business, with
only one person who is the owner and manages the whole business. Examples of
such agencies are Advantage Travel, Sackville Travel, and Hays Travel etc.
These are a group of
companies which operates a chain of retail outlets throughout the United
Kingdom. These are also travel and tourism providing services agencies but at a
higher level because they are usually managed by a group of members. Such types
of agencies are Thomas Cook, TUI/Thomson.
A miniple travel agent
is a small company with only a few members operating this agency. They only
have a limited number of branches and in a particular geographical area.
Examples include Kyle Travel in north-east England
This type of agencies
walks door to door in order to sell their leisure and business travel to their
customers. They also lower the head cost of their products. They show
flexibility and benefit their clients. Such type of agencies includes Future
Travel, Travel Counsellor.
The world is advancing
towards technological development. This technological development leads to
E-Technology which is broadly based on internet services. These types of
agencies work on internet and also called virtual travel agents because of
their services on the E-Level. Such type of agencies is Last Minute, E-bookers,
Expedia.
Horizontal integration
is a process by which companies increases the production of their goods and
services at the same part of the supply chain. The company may achieve this
objective through acquisition, expansion and merger. While on the other hand in
vertical integration the Easy Jet Company is engaged in different parts of
production. In vertical integration the company controls more than one supply
chain at the same time.
An agency agreement is
a legal term which means creating a fiduciary relationship in which the first
party agrees that the roles and actions of a second party binds the first party
(principal) to later agreements made by the agent as if the first party had
himself personally made the later agreements
Overall,
it is concluded that offering quality services to clients is very significant
for the airline company. Additionally, the company has to consider factors such
as appeal, prior experience, trip’s purpose, convenience, and price.
Considering the European status of Easy Jet Company, it has been analyzed that
the company should focus upon offering a cost advantage so to create a
competitive advantage in the market. It has also been determined that the
airline company must concentrate on porter’s generic strategies.
It
is important for the firm to follow the low cost strategy as it will help the
company in growing. This will enable them to compete in the market because of
different and unique ways which will be adopted by them. For example, first of
all they offer lower costs and as discussed, they are providing the quality
services and this way, they will attract more and more customers towards
themselves. Easy Jet can follow the innovation in the technological
factors, as there could be effectiveness for the company in this way Easy Jet
Airline Company should try to rate retail travel services for clients for
increasing the overall performance of their industry. The Company needs to
focus on the vertical integration as the company controls more than one supply
chains at the same time. Moreover, in the retail travel environment, several
feedbacks must be taken from customers to keep them happy.
Archer, J. & Syratt, G., 2012. Manual
of Travel Agency Practice. s.l.:Routledge.
Catmedia.com, 2018. MARKETING COMFORT
AND CONVENIENCE IN AVIATION. s.l.:s.n.
Corporate.easyjet.com, 2018. What we do.
[Online]
Available at: http://corporate.easyjet.com/about/what-we-do
Holland, J. & Leslie, D., 2017. Tour
Operators and Operations: Development, Management and Responsibility. CABI
ed. s.l.:s.n.
Huggett, C. & Deborah, H. C. P., 2010. Teaching
Travel and Tourism 14+. s.l.:McGraw-Hill Education (UK).
Makowski, C. & Finkl, C. W., 2018. Impacts
of Invasive Species on Coastal Environments: Coasts in Crisis. s.l.:Springer.
Mason, P., 2012. Tourism Impacts,
Planning and Management. s.l.:Routledge.
Moon, H.-C., 2010. Global Business
Strategy: Asian Perspective. s.l.:World Scientific Publishing Company,.
Perks, J., 2016. How to Be an
Award-Winning Tour Guide. s.l.:Xlibris Corporation.
Smith, J. D. & Warburton, F., 2012. Cambridge
IGCSE Travel and Tourism. s.l.:Cambridge University Press.
Travelzoo.com, 2018. 20 Tips Before
Traveling Internationally. s.l.:s.n.
Wagen, L. V. d., 2015. Events &
Tourism Essentials. s.l.:Pearson Higher Education AU.
Discuss your homework for free! Start chat
