Consolidation in the Tour Operator Industry Case Study

Consolidation in the Tour Operator Industry - Case Study Example Visit Britain expects tourism to grow into a ?113bn industry if managed properly. However, despite tourism funding by the government being doubled since 1997, there is a threat that the UK tourism sector could slip behind international competitors. Economic Environment The tour operators’ industry has faced both economic 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 increase over 2005 – from â‚ ¬60bn to â‚ ¬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 prefer 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 increased by 13% and outbound travel decreased by 18% (Stamford, 2009a) which suggests that staycation and packaged holidays provide an opportunity to tour operators to redesign their product offerings. Technological Environment Technology has empowered the consumer in many ways. Low-cost airlines have made holidays more affordable; in addition, are the high-speed train networks. Internet penetration provides an additional distribution channel. Technology enables access to consumer data which facilitates tailoring their offerings to consumers. Mobile, technology and social networking have further empowered the consumer in seeking information, comparing and reading reviews about service providers before booking their holiday. This has helped major tour operators such as TUI to target specific segments through the strategy of differentiation. Technology thus is an opportunity to exploit the sector. Environment Tourism is generally associated with environmental degradation and ecological imbalance. The region is negatively impacted when the level of tourists exceeds the environment’s ability to cope with the use (UNEP, n.d.). In addition, natural resources are depleted; land area is reduced as infrastructure development takes place. Local resources are also used up by tourists thereby impacting the lives of the local people.

IMT Case Study Example | Topics and Well Written Essays - 500 words

IMT - Case Study Example , he was walking in a hornet’s nest and any single approach from the four options he came up with may have had detrimental impact on the performance of the company if not cautiously implemented. In general, he did a great job when it comes to the understanding of the tasks as well as the prevailing environment in the companies. He also strived to be honest with June, his superior, in his feedback and recommendations. CMCI’s statement is not inspiring enough. A mission statement should not come out as an old novel which lacks both sense of direction and purpose (Neto 24). However, after reading Fort Wayne MIS Directions and Objectives Statement, more light is provided on the direction the company was heading to. The latter talks about the company being structured and with some reasonable level of risk taking. Considering the difference in timelines when the two were written, they can both be said to combine well in giving some form of common management tool. The two statements appear to addressing the same issues with the organizational set up. It is worth pointing out that reading Fort Wayne MIS Directions and Objectives Statement maps it out more clearly than CMCI’s statement which has limited vision and is not comprehensive. Over the last five years, CMCI has been experiencing several developments. This is in terms of expansion through acquisitions. In order to reach out to a larger market. The business has acquire several businesses both within and outside USA. In all these entities, the leadership and the management structures have remained decentralized. This expansion and leadership structures will for sure impact on the overall system architecture of the Fort Wayne Plant. Four options were suggested. The first one was the centralized computing. This involved relying on single networks within each of the companies. The advantage of this proposal is that it allows the company to have more control over its operations (Khosrowpour 53). The shortcoming