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Continued concerns over safety and security while travelling are found
in the U.K residents.
Lifestyle changes have also been affecting the U.K travel market for a
number of years. Postponing the start of the family and an increase in
the number of households consisting of couples with two incomes are
the main trends toward the changing life style. Changing fashions,
which are difficult to predict also have an affect on the market.
3.4.4 Technological Factors
The rapid development of technology is affecting the businesses in UK
and all over the world. Changes in the technology have changed the way
businesses operate i.e. Internet booking for tickets and holidays.
Faster changing development in technology creates a need to react
quickly for different businesses in order they want to maintain the
competitive environment by providing the same innovative services,
which their competitors are offering.
Distribution of products by the use of technologies e.g. marketing
information systems, customer relationship management are also common
practices with different businesses for effective services to their
customers.
Chapter 4
4.1 Impacts on demand situation
Findings from the PEST analysis will enable me to comment on the
impacts on the demand situation of the customers of the Simply
Travel.
Elasticities
Changes in the quantity demanded due to change in price and income are
very important for the tourism industry. Rising disposable income
among the UK residents is the positive indication for the Simply
Travel that people will have enough money to buy companys products.
However, Governments fiscal policies for tax on aviation fuel and VAT
on air tickets will impact the companys supply of services at the
same rate. Higher prices of the tour packages will lead to lesser
demand among the UK residents.
Cross-Price Elasticities
Not only a price change in the UK due to taxes is important but also
the price of the facilities in other destinations where company serves
is also important. For example rising prices in Italy, Spain etc. for
different tourism related products will also make supply of products
expensive for the tourists.
Trends
Latest trends of home- entertainment and more awareness about the diet
and health-issues does also have an impact on the demand of the
tourist. Company will have to compile the Supplies of services
packages with variety of facilities available according to
individuals choice, so it can make supply of the products a bit
expensive for the customers.
Purchasing method
Growing direct purchases of holiday packages from airlines will impact
the demand situation .Buying the package direct from suppliers i.e.
Hotels, air lines will decrease the demand of the tourists.
Moreover, low inflation rate and high employment rate and favourable
exchange rate will increase the buying power of the tourists so it
will increase the demand in British holiday travellers for the holiday
travels abroad.
4.2 OT analysis
To find opportunities and threats from the external environment for
the Simply Travel, I will conduct the OT analysis.
4.2.1 Opportunities
Opportunities exist for Simply Travel in expanding the service
package according to the latest trends such as
* Packages with individual concerned Diet and health matters
* Adding particular activities for the tourists, providing
experiences
* Providing more choice, individuality and variety.
And providing the real value for the money of the tourists.
4.2.1 Threats
Cheap airlines adding facilities for the travellers to make their own
travel plan is the biggest threat for the company.
Governments decision to add taxes on aviation fuel and VAT for air
lines are also a main threat for the company.
Latest trends of home entertainment i.e. listening radio, watching TV,
Inviting family and friends are also threatening the company.
Terrorist attacks like 9/11 is also a big threat for the company.
Chapter 5
Conclusion
I conclude my report by saying that the Holiday Travel market in UK is
in a state of perfect competition. Though there are positive signs in
the economy for present and near future and buying power of the
individuals is increasing day by day but still Simply Travel is in