• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Conduct a PEST analysis for a company within the Tourism industry.

Extracts from this document...

Introduction

Chapter 1 1.1 Introduction The Tourism industry is one of the fastest growing industries in the world. The World Travel and Tourism Council estimates that in 2004 Travel and tourism is expected to generate * US$ 5,490.4 billion of economic activity * 10.4% of total GDP * 214,697,000 jobs or 8.1% of total employment * 12.2% of total exports 1 My task is to conduct a PEST analysis for a company within the Tourism industry. Within the tourism industry, I have to select one area of interest like transportation, accommodation and transportation etc. and then one company doing business with these sectors related with the tourism. According to Leiper "Transportation is the only link between the tourist-generating region and destination region"2So, transportation was a more interesting sector to discuss in the report but I tried to find a company which is related with all these main sub-sectors discussed above in the report. I have decided to look in the U.K market for such company because "Tourism is one of the largest industries in U.K, worth approximately 75.9 � Billion to the U.K economy in 2002 and supporting around 2.1 million jobs." 3 During my research on internet I found many companies offering services in the tourism of U.K but I have decided to choose "Simply Travel" because of its variety of services offering related with the accommodation, transportation and attractions. ...read more.

Middle

* Successfully positioned as travel specialists. * Personal interaction, media and marketing. * Repetition of customers, Loyalty pool 3.4 PEST analysis To assess the market for the business of "Simply Travel" I will conduct PEST analysis to find out about the Political, Economic, Social and Technological factors in the external macro-environment. 3.4.1 Political Factors Political arena has a huge influence upon the regulation of businesses .It includes government regulations and legal issues under which businesses should operate. According to the findings, political environment of U.K. is quite stable. Issues like enlargement of European Union and war against terror have had an effect on the political stability of the government. In result of growing awareness of the environmental consequences, U.K Government is planning actions to ensure aviation reflects its environmental impacts. Proposals are emerging for a tax on aviation fuel and VAT on air tickets. Government's taxation policies and decision about the increasing the petrol prices have affected the buying power of the individuals in U.K. The political decision as to whether a UK sign up to single European currency is again having an effect on the businesses. 3.4.2 Economic Factors Economic factors affect the purchasing power of potential customers and also affect the individual company's offerings. U.K economy is benefiting form gradual low inflation rate. Inflation rate Inflation rate fell to 1.3% in February 2004. ...read more.

Conclusion

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. Government's 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 need to expand its service package according to the latest trends. 1 http://www.wttc.org/2004tsa/frameset2a.htm 2 Tourism, principles and practices,2nd edition,pp5 3 www.staruk.org.uk 4 The information used in describing the service concept and service package of "Simply travel" are obtained from www.simply-travel.com. 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. An Analysis of the Micro-Environment and Macro-Environment factors for the Mobile Phones Industry in ...

    Mobile phone, once viewed as a luxury good, is nowadays seen as a prerequisite. It has become as a fashionable necessity in UK and a survey carried out by OFTEL showed that more than 2/3 of UK households run active mobile phones.2 This social trend from consumers has boosted the

  2. SWOT and PEST analysis

    as Cadburys, this method is more commonly known through its acronym of PEST. Political factors: This is concerned with how political developments, regionally, nationally and internationally may affect a business. The following is a list of political factors which could possibly affect Cadburys: 1)

  1. External environment - PEST analysis for Somerset house.

    can buy the tickets on lines from the house by a click of a button. This increases the like hood of people visiting Somerset house. Business in Countries, continents dividend by time can get sales on the Internet even if there is no person in the office.

  2. The Japanese Occupation - Concept of Great East Asia Co-Prosperity Sphere

    Finally, Southeast Asia's productive capacity suffered from the lack of new equipment and spare parts 2. Japan was unsuccessful in absorbing Southeast Asia's staple exports. She was greatly interested in rice and in those primary materials and agrarian products which she badly needed for keeping her industry going and conducting

  1. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    For this reason a new model was constructed, only placing the liquidity of each bond, yield on 10-year US Treasury securities and S&P 500 in a multivariate framework. This allowed the identification of a unique cointegration vector, permitting firm conclusions.

  2. Swot and Pest Analysis For Cadbury’s

    * If the minimum wage was brought down, this would mean more money for Cadbury's but would also result in low sales from the consumers.

  1. In order to effectively analyse Luxury Boats Ltd. and the framework of macro-environmental factors ...

    the government is in need of extra funds if it wishes to decrease its debt. * The introduction of VAT on property causes house prices to become static and in some cases fall. * Government keeps interest rates higher than previous years, in order to correct inflation.

  2. Case Study: The Home Depot

    A maybe different culture, but it must be in the line of the one of the US. Otherwise people will see Home Depot very different in different parts of the world. This does not have to be bad, but as we understood from the case Home Depot wants to maintain its image everywhere the same.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work