European Travel Operators- Confronting competition in the tourism industry.

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Introduction of Confronting competition in the tourism industry:

Confronting competition in the tourism industry, The success of European travel industry is tied with sustainability of tourism and the quality of destinations that people want to explore. It’s actually multi-billion pounds industry. European tourism contribute to 3.1% of the GPA world-wide (Rochelle Turner, 2013, Pg: 3). It’s because of the successful assimilation of natural and cultural environment to the local environment which makes it captivating for the visitors.

But most of the credit goes to travel industry giants who have made it much easier and cost effective for tourists by putting forward packages that includes air transportation, hotels accommodation, meals and transport from airport to hotel and back and much more (Appendix case study).
Two major competitors in European travel industry are TUI travel plc and Thomas Cook with billions of dollars economic activity every year and over a million employees with 1000s of travel agencies worldwide.

Activity 1:
External environmental analysis:

There are various methods to discover environmental factors that influence the industry such as PESTEL analysis, SWOT analysis and Porter’s model of competitiveness etc.
PESTEL analysis of tourism industry:
PESTEL analysis comes under macro-environmental level in strategic management. It helps in scanning strengths and weaknesses of a company given the environment it is operating in. We will discuss each category in detail to have better insight about the overall performance industry.
1) Political: Attacks on tourism and political instability affects the performance of tourism industries. Travel companies like TUI or Thomas Cook give travel insurance to its clients but they would refuse to give insurance due to bad political conditions and constant terrorism threats. So, European tourism industry needs to have stability to have sustainable growth and constant revenue. (Sonmez, 1998, pg: 416 to 420). Take example of Syria, Egypt and Kenya. These countries were once tourist’s hotspot. Many people used to go to Egypt to find the exotic places of Arabs. But today tourism of these countries is ruined because no one wants to put himself in dilemma…