Airline, Travel Agency & Tour Operations
Contents
Introduction 3
Part 1 3
Factors influence passengers travel decisions 3
British Airways use these factors to attract future passengers 4
Part 2 5
British Airways: PESTEL Analysis 5
Part 3 7
Different types of tour operators 7
Industry structure 8
Relevant legislations and role of trade bodies 9
Part 4 9
Retail travel environment British Airways operates in 9
Relationship 11
Conclusion 12
References 13
Introduction
Tourism is the best ever or quickly growing industry in the whole world. Tourism is constantly changing and growing. In many economies, the industry is evolving into a profitable market. For the money spent on tourism and travel, the entire economy will have a gross domestic product of 3.2 U.S. dollars. In almost all parts of the world, tourism and travel industry receive more direct employment than, banking, education, and mining. There is forever a well-educated moreover competent person to meet all the changing requirements of the entire tourism industry. British Airways is a global airline which provides year-round service, offering full-year fares and a variety of international routes to as well as from the airport. British Airways is part of the International Airline Group, world’s leading international finest airlines and also the UK’s largest international airline. The airline’s base is located at Heathrow Airport Landon, the world’s busiest global airport.
Part 1
Factors influence passengers travel decisions
As air traffic control between airlines becomes increasingly competitive, air transport is becoming cheaper and efficient, leading air transport democratization. To comprehend the impact of demand factors, so as to better recognize the market, forecast traffic conditions. Growing demand includes passengers and freight, including business and leisure travel. In the year 2007, 75% of European air travel was for leisure and leisure, which meant all travel goals, not a business. The need for the leisure travel is the possible choice in a personal leisure budget. Considering how the choices are made in upcoming future can explain how the airline traffic between at present and in 2025 will now evolve. Determine the need for holiday air travel by 2025 needs to understand how the passengers make travel decisions furthermore how their needs and behaviours will develop. Two balancing approaches were used in the study are economic and sociological approaches (Ashwell, 2015).
Appeal: This could influence passengers to travel decisions because is BA provides suitability, affordability, attractiveness, status, novelty, image, security, safety and unique passenger facilities.
Conveniences: Service Hours, Accessibility, Departure or Arrival Locations, Speed, Easy Booking, Departure or Arrival Time and Available Travel Time.
Previous experience: Honesty and loyalty
Price: Apparent or Perceived prices
The purpose of travel: Leisure, business, and visiting relatives as well as friends.
British Airways use these factors to attract future passengers
British Airways easily uses all these factors to increase the number of passengers as well as to attract customers in future. Some other factors that help BA to attract more passengers are traffic flow, schedule, facility pressure due to departure or arrival, entry, passenger controls, troughs and peaks and, seasonality, weather effects, emergency procedures or evacuation, and so on. Other terminal services are at the border parking, accommodation, traveller’s passport control, and surveillance.
Appeal: BA targeted customers diversify, so airlines are trying to showcase their brands in airlines to attract different markets. When asked about the most reliable sources, almost two times as numerous passengers on the BA’s official website should encourage the corporation to notify and persuade clients through an attractive website (Tanford and Montgomery, 2014).
Convenience: For passenger’s in-flight communications and entertainment and seat availability, baggage handling, equipment and aircraft types, and interaction with employees. As an airline, this brand makes sense; it depends entirely on their trademark image. Pakistani Airlines most of the flights to provide standardized production
Price: Price is one of the flexible factors in a marketing mix; in addition, it is also a big problem. The easing of market prices is a major competitive factor for BA. The price, on the whole, reflects the cost of providing the service. In general, marketers can choose different pricing strategies based on value-based or cost-based strategies.
Past experience: Improving passenger relieve in the cabin environment can be very challenging. BA delivers a good passenger experience in the available space plus changes passengers’ location or trip. The very first step in designing a comfortable experience is to gain more understanding of the new factors that affect the comfort of the flight (Wang, 2017).
The purpose of the trip: Develop tourism, provide growth opportunities for every country, despite their capital, and provide employment opportunities for each and every skill level. In fact, middle-income nations now accept more international tourists than very high-income country. The main purpose of passengers travel is related to establishing social relations, learning and growth opportunities, and promise.
Part 2
British Airways: PESTEL Analysis
Part 2
British Airways: PESTEL Analysis
Part 2
British Airways: PESTEL Analysis
Political Factors: BA is an important international airline service provider that can fly to approximately four-hundred destinations globally. Political stability, as well as people’s awareness for security, is an important political factor affecting British Airways Company. A striking example of this statement could be the terrorist attack on the Brussels airport in the year 2016, which led to a 2.1% decline in British Army parent IAG. In addition, airline operations management team recently found themselves in a biased political debate that required the British government to run a runway at London’s Heathrow Airport. Specifically, British Airways boss has warned that if the British government erects the third runway at London, he can try to expand overseas carriers (O’Leary, 2013).
Cultural Factors: The average older European passenger force airlines have devised new strategies for their overall target groups. Given the increase in passenger’s number and the need for low-cost airlines, it required shifting airline’s attitude, potentially leading to the image of higher-cost airlines. Airline Clients utilize airline brands as they use airline services. Thus, such evolving needs and lifestyles have affected the airline’s profile image, building strong brands that earn small returns instead of Loss in countries with different market shares, societies and cultures have different business implications, but it is imperative that these factors account for both population and culture. These factors influence the customer’s needs as well as the size or extent of the underlying market. Population changes lead to market development, spending much more on tourism and leisure. Lifestyle, taste, and fashion are changing. Clients need to have access to new, interesting, frequently long-haul destinations.
Economic Factors: The number of economic activities in the financial environment is very important. The financial environment in Europe’s aviation industry is even more difficult. Particularly, the unfavourable co-occurrence of nature is a challenge. The worldwide economy has experienced a dramatic decline in the past decade, affecting the demand for air travel. In 2008, economic growth in developed countries and emerging market economies dropped sharply. The aviation industry missed a large part of usual profit or benefits (Prassl, 2011). These changes simply lead to changes in demand. Consumers are not prepared yet, nor have they paid the airline’s previous prices. Some of BA’s competitors have lowered their air services price level. More demand for the air travel has the characteristics of high-income flexibility. Consequently, as the entire world economy or financial position grows, the demand or need for the air travel services will likewise increase (Manvichien, 2015). The political state of affairs in Iraq country has pushed oil rates to new heights, and rising oil prices could add £ 100 million in costs. Hence, the cost or expenditure of the fuel surcharges is always at high risk. The BA is a transport service for commuters and leisure travellers from all over the world. If the global economy slows, the opportunities for business transactions will diminish. Likewise, people can choose fewer “exciting” holidays. Production in Europe surpassed demand, resulting in a price war, which equalled a decline in the company’s rate of return (Seekings, 2011).
Technological Factors: In the aviation industry, organizations are forced to invest heavily in research and development in order to promote technological development moreover cutting-edge. At present, the focus is on safety and alternative energy. BA Using advanced technologies to improve the quality of service in engineering and routes are the gateway to competitive advantage. To be responsive to customer needs, BA must understand the internal and external needs of customers, markets, and capabilities. In addition, there is a need to recognize and become accustomed to the dynamics and unmanageable factors of BA operating environment (Vladimirov, 2012). The changing technological environments require structured, detailed as well as continuous analysis of the main dimensions of the technological environment. The technology in the aviation industry is rapidly growing and extremely expensive. The coalition offers the opportunity to co-invest in companies, for example, shared registration systems.
Legal factors: An important legal factor affecting the BA is trade unions power. The BA has gone through several strikes and is completely aware of all potential impacts of a trade union. The latest strike in 2015 is estimated, forcing the BA airline to cancel their flights. The airline rented its aircraft and crew from some rival carriers to comprise some shortfalls.
Environmental Factors: Noise pollution management as well as energy consumption control for example, climate change laws that enforce more stringent environmental regulations, might increase annual operating costs of British Airways. Ethical issues for example flight cancellations as well as lost luggage can also have a very negative impact on BA reputation if they are resolved early. Consolidation conspiracy moreover price restrictions will also have a huge impact on the association between BA and other American Airlines.
Part 3
Tour operators put together or organize for transportation, accommodation and vacation times. Travel managers promote the market and business group travel plans to offer a full travel experience at a price.
Different types of tour operators
Outbound Operators: A foreign carrier from a country travelling to some another country also sees a country resident travelling to other countries. This tourist category is also recognized as international tourism, which means that the far above the ground exchange rate of pounds reduces the cost of travel operators to buy service in foreign currencies. It promotes British outgoing tourists, but tourists are not encouraged (Cetin and Yarcan, 2017).
Inbound Operators: These types of tours are also referred to as international travellers and immigrants from non-destination countries. Internal tourism countries are helping to increase countries.
Domestic Operators: This kind of journey is also referred to as a destination for residents of destination countries. The size of the marketplace is considered to be different because domestic travel in several countries has not yet been measured. The total amount of domestic travel is very difficult to calculate on the same day.
Direct Sell traders or operators: BA travel operators use travel agents to sell all their vacation packages. The travel agency was directly sold to the public because it could offer an immense value. The consumers know it to be able to buy a package in a straight line from a Tour Operator. However, the actual truth is that they will never add any type of commissions to overall packages. Consumers can buy inexpensively from travel agents.
Specialist operators: Professional operators are not as good as mass carriers, although there are hundreds of UK professional travels operators that still offer many customers’ holidays. Technical operators are much more flexible and adaptable than the mass carriers, so customers can do what all of them actually want to enjoy during their holidays, so they are genuinely becoming more and more popular and charge very high prices (Keren, Gurevich and Hadad, 2017).
Mass market operators: The mass market operators are visiting all of the mass market operators and popular market directors are selling special holidays for many customers including Thomas Cook, Favourite Holidays as well as Thompson Holidays and other tourism and tourism industry. Travel agents sell daily long-range packages.
Industry structure
Structure of businesses: British Airline industry is a part of the international airline assembly. Like British Airways, Liz Iberia owns the business announced that it will separate the marketing teams of some business units and, on the other hand, create a new passenger experience team that focuses on travel study.
Major operators: Main production is the main form of holiday operator. The agreement was negotiated with residences and carriers. Larger purchases reduce overhead costs in addition to holiday agencies present as brochures for Travel Agency. Then sold it; There are main two sorts of the tour operators either through direct or proxy.
Independent operators: The independent travel is a small family call centre is very popular, customers can book the holiday by the phone (Hadad, Keren and Gurevich, 2013).
Market share: The Company British Airways has more space for international airlines compared to other airlines, but Ryanair is the second largest airline. According to the current growth, the Ryan can pass British Airways by 2018, but how likely Britain’s low-cost tour market has responded to Brakesitt and depends on how exchange rate fluctuated in 2017.
Products and services: British Airways colleagues are proud to design, develop, as well as to distribute their customers’ interests and value-added products and services. Under the auspices of suppliers and suppliers, many new aircraft have been designed in collaboration with departments and suppliers around the world to improve the comfort and comfort of the traveller, including creating high-end and economy seats, space, kitchen and toilets and development and distribution. Including the choice of premium movies, television, audio or video games completely supported by leading entertainment and famous brands of consumer electronics industry, in the management of aircraft flight entertainment equipment management.
Relevant legislations and role of trade bodies
Trade Associations: Trade organizations are designed to represent the interests of specific industry companies and to hear the voices about their business. Major travel and tourism industry associations include the ABTA Travel Alliance along with AITO UK Reception, which provides advice and assistance to members and lobbying central, local furthermore European governments for best deals.
Regulatory Bodies: All regulators and passenger operators exist to ensure that the passenger public works well and professionally. They also found at various levels.
Global: ICAO manages international air traffic services (Spence and Crick, 2013).
National: The British Government is completely responsible for the health as well as safety laws and the security of the airport on tourist movements.
Local: Local officials have worked in areas such as food and beverage outlets, business standards, and hotel inspections.
European: European Commission efficiently introduces a consumer safety measures for the travellers like Holiday Packages.
FTO: Impact and improvement of holidays, healthy and healthy accommodation moreover standards across the country, from the United Kingdom, and affecting the journey to home. Become a contact point for all outbound tours in the United Kingdom.
ABTA: Providing support, safety, and skill mean you trust in ABTA; in addition to trust BA members. These qualities are in the hearts because they believe in their holidays and they guarantee the experiences they have been bought from their members.
Part 4
Retail travel environment British Airways operates in
The major task of a BA retail travel organization is to provide the public with the travel products as well as services. Also, they represent suppliers. On the whole, it has been demonstrated that BA travel agency to operate as a broker, connecting buyers and sellers. There are different sort of the retail travel agencies: stand-alone, multiple, electronic agencies, domestic helpers, call centres, vacation centres, moulds, and consortia.
Independence: An independent travel agency is a single business, not a main part of the chain and is frequently managed by itself. Examples of self-governing travel agencies: classic travel in addition to abbot travel
Multiple: A number of travel agencies belong to the national chain retail outlets travel agencies.
The type of travel agency and the relationship between retail agencies
Electronic Agency: Electronic Agency is a company that specializes in internet vacation and other travel product sales. Examples of electronic agents are lastminute.com as well as Icelolly.com.
Home workers: work from home travel agency to hire a professional company to sell holidays at home and other tourism products. Examples of domestic helpers travel organizations: Hayes travel and a new border (Gurumo and Han, 2012).
Call centres: Call centres are small and diverse, which means they can be on the streets of retail travel agencies, and people can also book holidays by phone.
Holiday Malls: British Airways also provides large venues offering all the products as well as services. Thomas Cook is the best example for a holiday hypermarket.
Micro-travel agency: Micro-travel agencies have a few branches more than two, usually located in specific regions of the nation.
Consortia: British Airways is a very large group of the self-governing travel agency, forming a large company, less than a name. British Airways is the best example of the consortium.
Products and Services
British Airways offer a broad range of services and products in several categories: Holiday travel information, regular traditional holiday packages, vacation or dynamic package holidays, ancillary services or sales, scheduled flight reservations and charter flights, and book accommodation.
Travel Information: This free service is provided by travel agencies and asks shoppers if they want help or advice on booking.
Book a traditional vacation trip: Travel agencies offer traditional holiday travel products, holiday flights, and accommodation and shuttle services to select a definite hotel from a specific date booklet.
Scheduled holidays or dynamic packages Holidays: Holidays Customizations are holiday reservations, but agents can book accommodation, air flights and turnarounds for three different companies, which means that customers can get holidays at cheaper prices because travel agencies can compare all three the price of the component (Prunello, 2014).
Auxiliary Services or Sales: British Airways provide ancillary services as an add-on product. The main content they are trying to sell is the vacation or travel insurance, currency exchange and airport parking.
Flights Bookings
Scheduled flight: This is a scheduled flight, usually issued 18 months prior to flight departure, leaving the flight no matter the flight is full. Scheduled flights are unlikely to be delayed. Travel agencies can book flights for customers on different websites as well as systems.
Charter: This is a seasonal flight with more daily flights in summer and only one single flight per day in winter.
All-inclusive service puts customers under pressure for the next meal or arrives at the supermarket as customers can enjoy breakfast, lunch as well as dinner at the hotel or resort.
Relationship
Integration: Horizontal and Vertical
Integration occurs when the organization owns or controls many different branches. Vertical integration takes place in the wholesale travel industry as companies control multiple distribution channels for services and products to gain more competitive advantages than other retail travel companies. Horizontal integration means the company owns and controls other business at the similar level in the allocation chain.
Agency Agreements: Agreements are simply conducted by BA representatives and are strictly controlled by a personal agency agreement as they may sell different products to the same travel agency, but each agency has an agency agreement.
Preferred Agents: BA may have preferred agents who try to sell all their products to customers.
Commission Price: 10% discount on holidays and long holidays, 0-8% tickets, 10% ferries, 2% traveller’s checks, 30-45% travel insurance and 15-20% cruise. This is a rough guide, depending on an agreement (Model law on competition, 2007).
Conclusion
British Airways seeks after administration separation business procedure and separates its administrations by means of a broad dependence on digitalization plus data innovation and abnormal state of proper customization of administration arrangement. These focuses speak to strong wellsprings of British Airways’ upper hand. Significant shortcomings identified with British Airways incorporate an overdependence on UKs market in addition to low gainfulness of the business operations. In the meantime, the carrier is given the chances of framing key participation with different organizations in aircraft and providing food ventures, additionally captivating in worldwide market development and profiting from cooperative energy by means of nearer coordination between IAG’s working aircrafts. The retail tourism industry has a main role to play inside the tourism area. As a part industry inside the segment, retail travel has confronted numerous operational changes over late years and requirements to always advance keeping in mind the end goal to keep on meeting the necessities of shoppers.
References
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