The two companies I am going to use for an example are Thomas Cook and Ryan Air.
First is terrorism. The way in which Thomas Cook dealt with the impact of terrorism was by making sure customers were once more again confident to go and travel abroad. By doing this they made sure that security was a lot tighter than before. Also making sure boarding passes and passports were checked intensively and no mistakes were made. This was the same across all airlines, like Ryan Air.
Secondly is the impact of the World Recession. This started off RyanAirs career because they were able to offer close, easy flights for a very cheap price. This meant that they were still able to attract customers during the recession by doing this. Thomas Cook also did this but not to the extent of RyanAir. If people were able to afford it they could of gone on holiday for real bargains. Now as the economy starts to rise, RyanAir still have a good hold over most customers because they still offer very cheap flights now.
Lastly is cost of travel. Both RyanAir and Thomas Cook offer great deals online. As it becomes easier for people to book and easier to find better deals on the internet, both Thomas Cook and RyanAir have to stay competitive with in the market. Therefore they have to offer constant package deals, including accommodation as well as flights. Unlike Thomas Cook, RyanAir can not offer this as they don't have their own chain of hotels but RyanAir is not seen as that kind of airline, they are more of an easy, cheap way to get around.
Wednesday, 17 December 2014
Monday, 15 December 2014
P5 Trends and their effects (do after break)
Increased frequency of holidays
As people become more wealthy, they are able to take more frequent holidays. This had led to the popularity of the short break, often to a city.
The traditional pattern of holiday is a two week summer break, often to the Mediterranean resort. Richer families often add a winter ski break as well. According to a 208 Mintel report, an estimated 7 million UK resident adults take two or more European holidays and an estimated 1.7 million take two or more long-haul trips annually.
The trend had turned in 209 with UK residents making fewer outbound trips. This is because of the credit crunch. According to the International Passenger Survey, trips abroad fell by 17 per cent, which meant a decline in he visitor numbers.
The effect of a decline in visitor numbers has included jobs in destinations being reduced and tour operators cutting capacity. Airlines also cut capacity, which means they are operating fewer flights.
Holiday home ownership
There has been an upward trend in UK residents owning second homes. Although some can be explained by higher divorce rates and people having second homes for work, it is acknowledged that about 50 per cent are holiday homes.
About 235,000 second homes are owned abroad by British citizens. Growth in these numbers can be attributed to the rapid growth of low-cost airlines, which allow cheaper access to holiday homes. Another factor is people from immigrant backgrounds. This is countries such as India, Pakistan, South Africa and the Caribbean, wishing to own properties back in their countries of origin.
Many second homeowners abroad have their home in Spain. Recently , some of the developments of new holiday homes have been halted in order to allow for a reduction in the number of people buying holiday homes abroad during the recession. In some places, like Madrid, Dubai, some buildings have been left half-finished until funding to continue the work can be found.
Greater flexibility of booking
As people become more confident about travel and more used to travelling abroad, seeing different cultures, they are able to book the component parts of their holiday themselves rather than go to a travel agent. This is most likely to happen for more frequent lower-priced trips. When people are going on more expensive holidays, for example on a wedding or a cruise, they would more than likely book it through a travel agent. This is because they are able to get expert advice from the agent instead of guessing on line.
More and more people are getting access to the internet at home and are able to carry out research into travel and destinations and make their own decision and make their own bookings online. Expedia for example have profited from internet growth by providing the ability to make up holiday packages, including flights and accommodation as desired.
The effect of more people booking independently is that there is no longer big demand of travel agency services. Web-based companies are able to compete more easily with large tour operators.
Terrorism
The impact of '9/11' has been long-term. Security is now a high priority at airports. In December 2009, a 23 year old Nigerian man attempted to set off an explosion on a flight from Amsterdam to Detroit. The attack failed but the American government put even stricter security screening measures in place following the incident.
In 2006 international travellers were stopped overnight from carrying liquids onto planes. Strict restrictions are still in place today. Liquids must be carried in a see-through plastic bag and each container must not exceed 100 milliliters. These restrictions cause delay and disruption as passengers struggle on what is allowed.
Terrorist attacks in destinations also impact tourism. Recent years have seen explosions in Egypt, Bali and Majorca. We should expect tight security and threats of terrorist attacks into the foreseeable future. Every incident brings more security checks and more difficulty for air passengers to travel freely. This makes people un-confident to travel because of risk of terrorism.
World recession
The recession in 2008-2010 has had a big impact on tourism, even creating a new term in UK, the 'staycation'. A holiday staying the UK rather than going abroad.
As people took fewer holidays in during the recession, companies started to struggle and some went bankrupt. An example of this is SKY Europe, a low-cost airline operating from Eastern Europe. Those people still employed during the recession could find lots of bargain holidays. However, even the employed are still more reluctant to travel as they might feel insecure about keeping their jobs.
This had a big effect on tourism as people could not afford to go on holiday thus making agents and hotels abroad and also airlines struggle to keep going as there wasn't no tourist willing to travel. But as the economy improves, the tourist numbers should start to increase.
Cost of travel
Travel is relatively cheap nowadays, especially air travel, and is no longer available only to the elite. The advert for low-cost airlines has brought down the cost of air travel. Long-haul travel prices are more fluid, but there are often bargains to be had off peak. Air travel is likely to become more expensive if proposed air passenger taxes introduced.
Rail travel is expensive in the UK but advance booking can result in favorable prices.
This means that it is easier and cheaper for people to travel, they are able to book in advance and aslo get money off. Meaning that the tourism industry would rise because of this.
As people become more wealthy, they are able to take more frequent holidays. This had led to the popularity of the short break, often to a city.
The traditional pattern of holiday is a two week summer break, often to the Mediterranean resort. Richer families often add a winter ski break as well. According to a 208 Mintel report, an estimated 7 million UK resident adults take two or more European holidays and an estimated 1.7 million take two or more long-haul trips annually.
The trend had turned in 209 with UK residents making fewer outbound trips. This is because of the credit crunch. According to the International Passenger Survey, trips abroad fell by 17 per cent, which meant a decline in he visitor numbers.
The effect of a decline in visitor numbers has included jobs in destinations being reduced and tour operators cutting capacity. Airlines also cut capacity, which means they are operating fewer flights.
Holiday home ownership
There has been an upward trend in UK residents owning second homes. Although some can be explained by higher divorce rates and people having second homes for work, it is acknowledged that about 50 per cent are holiday homes.
About 235,000 second homes are owned abroad by British citizens. Growth in these numbers can be attributed to the rapid growth of low-cost airlines, which allow cheaper access to holiday homes. Another factor is people from immigrant backgrounds. This is countries such as India, Pakistan, South Africa and the Caribbean, wishing to own properties back in their countries of origin.
Many second homeowners abroad have their home in Spain. Recently , some of the developments of new holiday homes have been halted in order to allow for a reduction in the number of people buying holiday homes abroad during the recession. In some places, like Madrid, Dubai, some buildings have been left half-finished until funding to continue the work can be found.
Greater flexibility of booking
As people become more confident about travel and more used to travelling abroad, seeing different cultures, they are able to book the component parts of their holiday themselves rather than go to a travel agent. This is most likely to happen for more frequent lower-priced trips. When people are going on more expensive holidays, for example on a wedding or a cruise, they would more than likely book it through a travel agent. This is because they are able to get expert advice from the agent instead of guessing on line.
More and more people are getting access to the internet at home and are able to carry out research into travel and destinations and make their own decision and make their own bookings online. Expedia for example have profited from internet growth by providing the ability to make up holiday packages, including flights and accommodation as desired.
The effect of more people booking independently is that there is no longer big demand of travel agency services. Web-based companies are able to compete more easily with large tour operators.
Terrorism
The impact of '9/11' has been long-term. Security is now a high priority at airports. In December 2009, a 23 year old Nigerian man attempted to set off an explosion on a flight from Amsterdam to Detroit. The attack failed but the American government put even stricter security screening measures in place following the incident.
In 2006 international travellers were stopped overnight from carrying liquids onto planes. Strict restrictions are still in place today. Liquids must be carried in a see-through plastic bag and each container must not exceed 100 milliliters. These restrictions cause delay and disruption as passengers struggle on what is allowed.
Terrorist attacks in destinations also impact tourism. Recent years have seen explosions in Egypt, Bali and Majorca. We should expect tight security and threats of terrorist attacks into the foreseeable future. Every incident brings more security checks and more difficulty for air passengers to travel freely. This makes people un-confident to travel because of risk of terrorism.
World recession
The recession in 2008-2010 has had a big impact on tourism, even creating a new term in UK, the 'staycation'. A holiday staying the UK rather than going abroad.
As people took fewer holidays in during the recession, companies started to struggle and some went bankrupt. An example of this is SKY Europe, a low-cost airline operating from Eastern Europe. Those people still employed during the recession could find lots of bargain holidays. However, even the employed are still more reluctant to travel as they might feel insecure about keeping their jobs.
This had a big effect on tourism as people could not afford to go on holiday thus making agents and hotels abroad and also airlines struggle to keep going as there wasn't no tourist willing to travel. But as the economy improves, the tourist numbers should start to increase.
Cost of travel
Travel is relatively cheap nowadays, especially air travel, and is no longer available only to the elite. The advert for low-cost airlines has brought down the cost of air travel. Long-haul travel prices are more fluid, but there are often bargains to be had off peak. Air travel is likely to become more expensive if proposed air passenger taxes introduced.
Rail travel is expensive in the UK but advance booking can result in favorable prices.
This means that it is easier and cheaper for people to travel, they are able to book in advance and aslo get money off. Meaning that the tourism industry would rise because of this.
P4 Lifestyle Changes
Holiday Patterns
There has been a big growth in people taking short-breaks both within the UK and with people travelling abroad. People take more holidays than ever before. Cities are very popular destinations, mostly London, New York and Amsterdam. This has helped the Tourism industry as more and more people go on shorter holidays instead of having to save up for a longer holiday.
Increased income and expectations
The nation is wealthier than before and we now have higher expectations than in the past. Most people have been abroad and most expect to take at least one holiday a year. As people become wealthier more and more holidays will be taken thus helping the industry be able to make money. Also as people start to expect more, the money coming from people taking the holidays and visiting different countries, they will be able to afford what the paying customer expects.
Improved education
The level of education achieved by people from all sectors of society has improved since the 1960s. More students go to university and more of the population achieve at least a Level 2 qualification.
The more educated people get, the more we are aware of the world and its possibilities. We are curios about different cultures and languages and keen to experience them. As we live in a multicultural society we are more familiar with different religions, foods and cultures and less nervous about the unfamiliarity involved in travelling to new places.
Age
One of the most important markets in travel and tourism is the 'grey' market. This refers to the older people who have plenty of time and available funds and who want to travel. Older people now are usually in good health due to the NHS. Contributing to private pension schemes over their years of work has led to a good income in retirement for many people. It has become common for people to retire earlier, even in their 50s. This then means that they are able to take advantage of good pension arrangements. Saga is the most famous tour operator catering for older people, but many tour operators are aware of and market to this group. With more people retiring early and also with the private pension scheme being better and more effective than ever before, older people now are able to afford consistent holidays and also have the time to because they are retired.
There has been a big growth in people taking short-breaks both within the UK and with people travelling abroad. People take more holidays than ever before. Cities are very popular destinations, mostly London, New York and Amsterdam. This has helped the Tourism industry as more and more people go on shorter holidays instead of having to save up for a longer holiday.
Increased income and expectations
The nation is wealthier than before and we now have higher expectations than in the past. Most people have been abroad and most expect to take at least one holiday a year. As people become wealthier more and more holidays will be taken thus helping the industry be able to make money. Also as people start to expect more, the money coming from people taking the holidays and visiting different countries, they will be able to afford what the paying customer expects.
Improved education
The level of education achieved by people from all sectors of society has improved since the 1960s. More students go to university and more of the population achieve at least a Level 2 qualification.
The more educated people get, the more we are aware of the world and its possibilities. We are curios about different cultures and languages and keen to experience them. As we live in a multicultural society we are more familiar with different religions, foods and cultures and less nervous about the unfamiliarity involved in travelling to new places.
Age
One of the most important markets in travel and tourism is the 'grey' market. This refers to the older people who have plenty of time and available funds and who want to travel. Older people now are usually in good health due to the NHS. Contributing to private pension schemes over their years of work has led to a good income in retirement for many people. It has become common for people to retire earlier, even in their 50s. This then means that they are able to take advantage of good pension arrangements. Saga is the most famous tour operator catering for older people, but many tour operators are aware of and market to this group. With more people retiring early and also with the private pension scheme being better and more effective than ever before, older people now are able to afford consistent holidays and also have the time to because they are retired.
Wednesday, 10 December 2014
Introduction and growth of low-cost airlines
Deregulation of air travel in Europe led to the development of low-cost airlines. The European Union started the liberalisation process in 1987, when cost-related fares and certain types of discount fares were first allowed. The final stage of deregulation came in 1993.
Deregulation meant that EU airlines could establish themselves in any EU member state and obtain an operating licence. All routes within the EU are available
Deregulation meant that EU airlines could establish themselves in any EU member state and obtain an operating licence. All routes within the EU are available
P4 Transport development - air
The aviation industry in travel and tourism includes airlines and airports. The sector is heavily dependent on aviation for transporting passengers to their destinations. In 1954 Boeing introduced its new passenger jet aircraft, the Boeing 707. The Boeing 707 began commercial service in 1959 and dominated the market. The Boeing 727 was introduced in 1963 and has been one of the most successful series of passenger jetliners of the past 50 years. In 1969 Boeing produced the 747 jumbo jet. This was a wide bodied jet. The 747 can seat 500 passengers, even though it usually only holds 385. It travels at about 965 kilometers per hour. This aircraft had the following impact on the package holiday market;
Super Planes
The Airbus A380 can seat between 555 and 800 passengers. Singapore Airlines was the first airline to fly the plane on an inaugural flight to Sydney in 2007. It was also the first airline to fly the superjumbo to Paris in 2009. However, airports which accept the aircraft have to make changes to infrastructure in order to accommodate the large plane and the large numbers of passengers boarding and disembarking.
Another new aircraft is the 7E7 Dreamliner introduced by Boeing. It has lower operating costs and fuel consumption than the current Boeing 767 and a greater flight range, so it is expected to be a popular choice for airline fleets.
- it became possible to fly further in less time, making long-haul destinations more accessible
- increased capacity on the jet led to a decrease in the price per seat, bringing the price of holidays down
- as jumbo jets were used more, smaller aircraft were available for charter operations.
Super Planes
The Airbus A380 can seat between 555 and 800 passengers. Singapore Airlines was the first airline to fly the plane on an inaugural flight to Sydney in 2007. It was also the first airline to fly the superjumbo to Paris in 2009. However, airports which accept the aircraft have to make changes to infrastructure in order to accommodate the large plane and the large numbers of passengers boarding and disembarking.
Another new aircraft is the 7E7 Dreamliner introduced by Boeing. It has lower operating costs and fuel consumption than the current Boeing 767 and a greater flight range, so it is expected to be a popular choice for airline fleets.
Self check-in at airports // On-line check-in for airlines
Self check-in airports
Where this service is available, passengers can save time by checking in at a kiosk where they can choose their seat and print their own boarding pass. From there they can go to a 'fast bag drop' and leave their hold baggage. Where as passengers with out baggage can just go straight to the boarding gate.
On-line check-in for airlines
By using this system, passengers can check in without actually being at the airport. When you go on-line and follow instructions to check-in, you are able to choose seats on the plane and also you are able to print off your boarding pass. On-line check-in is used by most airlines and aims to reduce queues at check-in desks and subsequently the use of ground staff.
Package Holidays
Package Holidays
The first person to organize a package holiday is credited to Thomas Cook. Thomas Cook organized it in 1841 with a trip from Leicester to Loughborough by train.
The first package holiday as we all know it today was in 1949 and this was organized by Vladimir Raitz. Vladimir took 32 passengers to Corsica on a DC3 airplane. The cost of this holiday was £32.50. The package included accommodation in tents, return flights, transfers and full board. He also established Horizon Holidays in the same year and by the end of the 1950s the company had grown to be one of the UK's major tour operators.
The major growth came in the 1970s, as people became more prosperous and keen to see new places. Currency restrictions were lifted in the 1970's. Before, tourists were allowed to take only £50 in sterling out of the country. This led to an increase in package holidays as tourists could now take more spending money with them.
The first person to organize a package holiday is credited to Thomas Cook. Thomas Cook organized it in 1841 with a trip from Leicester to Loughborough by train.
The first package holiday as we all know it today was in 1949 and this was organized by Vladimir Raitz. Vladimir took 32 passengers to Corsica on a DC3 airplane. The cost of this holiday was £32.50. The package included accommodation in tents, return flights, transfers and full board. He also established Horizon Holidays in the same year and by the end of the 1950s the company had grown to be one of the UK's major tour operators.
The major growth came in the 1970s, as people became more prosperous and keen to see new places. Currency restrictions were lifted in the 1970's. Before, tourists were allowed to take only £50 in sterling out of the country. This led to an increase in package holidays as tourists could now take more spending money with them.
Monday, 8 December 2014
P4 Technological Developments
Reservations and bookings
One of the areas that have had greatest impact through technological developments is in the way we now book holidays. As the demand for travel grew in the 1950's, reservations departments were introduced. As computers were invented, tour operators and airlines developed their own systems. Eventually these systems were linked to travel agencies via terminals and travel agents could make bookings in their offices. This is known as 'Viewdata' systems. Thomson decided to accept booking only through Viewdata. This then meant that the system was essential for any travel agent.
Airlines developed Computer Reservation Systems. Airlines started to use computers in the 1950s to store the huge amount of information they needed to access. The Computer Reservation System was used by airlines and agents would use a publication called Official Airline Guide to look up flight times and details, then telephone the airline to make a booking. Today travel agencies have direct access to the Computer Reservation Systems.
The internet has grown rapidly as a means of booking holidays and flights. With increased confidence and access to information, travellers happily book all aspects of their holiday on-line and in effect make their own packages.
One of the areas that have had greatest impact through technological developments is in the way we now book holidays. As the demand for travel grew in the 1950's, reservations departments were introduced. As computers were invented, tour operators and airlines developed their own systems. Eventually these systems were linked to travel agencies via terminals and travel agents could make bookings in their offices. This is known as 'Viewdata' systems. Thomson decided to accept booking only through Viewdata. This then meant that the system was essential for any travel agent.
Airlines developed Computer Reservation Systems. Airlines started to use computers in the 1950s to store the huge amount of information they needed to access. The Computer Reservation System was used by airlines and agents would use a publication called Official Airline Guide to look up flight times and details, then telephone the airline to make a booking. Today travel agencies have direct access to the Computer Reservation Systems.
The internet has grown rapidly as a means of booking holidays and flights. With increased confidence and access to information, travellers happily book all aspects of their holiday on-line and in effect make their own packages.
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