Delivery in day(s): 5
Diploma in Travel and Tourism
Unit Number and Title
Unit 6 Contemporary Issues in Travel and Tourism Solution
The Contemporary Issues in Travel and Tourism initiates with the discussion of the changes of the Business environment that have its impact on the tourism industry. SWOT and PESTEL analysis of IAG is discussed in the unit for better description. International airline group is the multinational airline holding group. It is a British-Spanish group that owns fifth position in the airline industry. Later part of the unit discusses about the case of Myla travel agency. This discussion throws light on the issues that drive changes to the company’s strategies and the consequences faced by the company if does not respond to the changes.
International airline group is the multinational airline holding group. It is a British-Spanish group that owns fifth position in the airline industry. It is considered as one of the best airline in the world. The business owns 500 aircraft and made almost 95 million people to let travel from one destination to another. The company has headquartered at London, UK and registered on Spain as well. (Iairgroup.com, 2016)
The company is doing very well in the business and this is because of the way it respond to the changes that are occurring in this dynamic environment. It is important and essential for every company or business to adopt those changes and bring modifications in their own policies that compliments that change. Restriction to change does not help the businesses in long run. Every business has different ways to respond to these changes. This can be better understood by studying the SWOT and PEST analysis of IAG:
SWOT analysis: It is the method that allows to study the strength, weakness, opportunities and threats of the business. Opportunities and threat are the external factors and strength and weakness are the internal factors that affect the business of the company. (Jack and Phipps, 2005)
PEST analysis: PEST refers to analysis of political, economical, technological and social factors that affect the business of the organisation.
International group of Airlines group includes British Airways, Iberia, Vueling and Aer Lingus. Although they are in same business group but manages to adopt different strategies to deal with the market. The two businesses that have been selected to analyze the response towards the charge are British airways and Vueling. (Park, Qu and Lee, 2011)
Marketing mix of British Airways:
Marketing mix of Vueling:
After analysis of the two companies, it has been identified that the following strategies can be used by the company in order to develop their brands and effective response to the change.
Product development: Product development strategy suggests that company can launch and introduce new products in the market to extend their brand. Both the brands can go for this method of development.
Market development: Vueling should use this business strategy in order to build the brand image as well as to develop the market. It has to take some of the initiatives that allow the company to cover large customer base and large market. (Jack and Phipps, 2005)
Market development and product development are the two strategies that can be used by the companies to respond to the market changes. After analyzing both the companies by using SWOT, PEST and marketing mix analysis, it has been observed that IAG is doing very well in response to the changes. The different airline companies in the group are responding differently to the changes.
British Airways uses the product development strategy to serve wide range of the customers with its products. The airline has a wide target market that involves middle class, higher class and premium class people. British Airways uses the strategy of product development to develop various products that are required by the customers of different class. It is essential for the company to use this as it needs to serve many customers with different preferences at the same time. (Kelner, 2010)
Vueling is the airline company that caters the customers of middle class. Therefore, the strategy that can be beneficial for this airline is the market development strategy. The company uses this strategy to capture more market areas of its target customers only. The promotional tools used by the company to develop the market were social media marketing, online marketing etc. The nominal pricing strategy is also the way to penetrate into the market as services at this price allow the companies to serve large number of customers from middle class range.
Thomas Cook is one of the best tour operators of UK and Myla Travel is the travel agency company that has around 10 offices in UK. Thomas Cook wants to acquire the Myla travel agency in order to expand the business. The Network group wants Myla travels to join their group. Below is the management report that assists the directors of Myla travels to take better decision:
Myla Travels need to respond to the changes in the environment. The major idea that supports the company is the idea of merger with another company. This facilitates Myla to expand its business. (Lerrthaitrakul and Panjakajornsak, 2014)
Impact of trends on tourism:
Methods that can be sued to expand business are:
Organisation manufactures the products and services to serve the market. Therefore they are to make the products and services according to the market choices. They alos need to change and modify theory services according to the trends prevailing in the market. Tourism is the industry that is customers oriented and thus requires responding to the changes happening in the environment as well as in the demands and choice of the customers. If business fails to respond to these changes, they need to suffer in following ways:
The above consequences suggest that it is very necessary for the Myla travels to expand its business by making any of the changes as it act as the positive response to the changes occurring in the market. Acquisition of the Myla travel agency by Thomas Cook left the company with dissolved identity but it may give rise to profits. Joining The Travel Network Group allows the company to get support from other companies to raise the standards.
It has been concluded that organizations need to make the changes according to the change in the environment and the requirements of the customers. IAG is the business group that involves the airline companies called British Airways, Iberia, Vueling and Aer Lingus. The group of companies is doing very well in responding the changes of the environment. The report shows the comparison of the two companies that is, British Airways and Vueling. SWOT analysis, PEST analysis and marketing mix analysis has been done to identify the difference between the strategies of the two companies.