Uk Online Travel Agencies Essay

3814 words - 16 pages

21510

Global Context of Management

Online Travel Agency – UK

Table of Contents

Introduction 3
Global View 4
PESTEL Analysis 5
Porters Five Forces 6
Appendix 1: PESTEL Analysis 7
Political & Legal 7
Economic 8
Social/Cultural 9
Technological 10
Environmental 11
Appendix 2: Tables & Graphs 12
Appendix A 12
Appendix B 12
Appendix C 13
Appendix D 13
Appendix E 14
Appendix F 14
Appendix G 15
Appendix H 15
Appendix I 16
References 17

Introduction

This report aims to analyse the online travel agency industry in the United Kingdom (UK). It does so using a variety of techniques:
1. Offering a global view of the ...view middle of the document...

The growth of this industry can be explained by a multitude of reasons, such as the increase of internet usage in China and the world as a whole, the rise of the middle class in developing countries, the rise of credit card holders, and the change/reduction of visa restriction to Chinese travellers by foreign countries, has led to a boom in this industry.

In India in 2011, online travel sales increased in real terms by 21%. This exceeded the overall travel industry’s increase of 19% (Euromonitor, 2012). Growth was believed to be have been hampered by unreliable payments online. Despite this, India has seen an increase both of traditional travel agencies offering online services and from online travel agencies.

Internet users in India by 2013 are forecast to double to 216 million from 2007 levels (Euromonitor, 2009), and in turn this is expected to eat into the share of the traditional bricks and mortar travel agencies (Euromonitor, 2012).

The trend for online travel retail sales in the UK is upward, but at a slowing rate. In 2010, 35% of total travel retail sales were online, accounting for a total market of £9.2 billion. Year on year, this result is the second lowest ever growth for online travel sales, indicating that the market is reaching maturity. Further growth is still expected as the younger generation, who are more akin to book travel online, make up a greater percentage of holiday makers (Euromonitor, 2011).

Despite the fact that internet sales are expected to increase both in market share and overall sales, it is expected to reach a ceiling in the next few years. Of the online travel retailers in the UK, Expedia leads the pack. Expedia is also the worldwide leader in online travel agencies, and the leader in the US market, the largest online travel retail market in the world.

Global online sales totalled US$207 billion in 2011, an increase of 7% from 2010. North America made up over 50% of the market, with nearly $119 billion in sales. From this perspective, the largest North American companies, Expedia and Priceline, with their experience and established roots, are the best positioned to capitalise on the global market overall.

On the back of higher internet penetration and more reliable transaction methods, the emerging markets are expected to show solid growth for the foreseeable future. Leading the way are China, India and Russia, with Latin America and the rest of Asia set to balloon alongside the increased internet usage.
PESTEL Analysis

Herein contains a summary of the notable factors as described in the full analysis in the appendix.

Political & Legal
• Air Passenger Duty – this has significant opposition to it from industry groups and consumers alike. The cost it adds to flights is substantial.
• Government campaign – this campaign aims to maintain tourism levels before and after the Olympics. This will be critical to the success of the tourism industry in general given the trend for a severe...

Other Papers Like Uk Online Travel Agencies

Rydth Essay

915 words - 4 pages accommodate merchandising and international flights. AirTran’s reservations system vendor is Navitaire.25 AirTran and Southwest have diametrically opposed views on distribution through online travel agencies. Southwest usually sells its tickets via telephone or through its Web site whereas AirTran prefers online reservation systems such as Orbitz and Expedia.26 It will likely take several years after to figure out how to blend the two different

Narrative Essay

2074 words - 9 pages agencies with the software and technologies to go into the online world with ease, affordability and scalability. Abacus WebStart enables travel agencies to provide fare search, reservation and booking capabilities with less effort and cost than many other software services. Abacus is able to link any travel affiliate with the Asian travel market and support all aspects of traveler’s needs. How does it help improve staff’s performance and service

Tesco Pest

3342 words - 14 pages country, covering 96% of the UK. With over a million households nationwide having used the company's online services, the company has a strong platform to further develop this revenue stream. Brand value: Profits for Tesco's operations in Europe, Asia and Ireland increased by 78% during the last fiscal year. The company has a strong brand image, and is associated with good quality, trustworthy goods that represent excellent value. Tesco's

Tourism

2740 words - 11 pages image. Organic image may be central to success of theme, especially if it is tied in with other aspects of marketing. (Graham, 2004) Travel Planning Leisure travel accounts for 31% of all trips in the UK, so travel plans are thought of as ideal way to change travel behavior – this helps in reducing car travel time, encourage car pooling, more usage of public transport services and more provisions for pedestrians and cyclists. Travel plans for

Kyoto Protocol And International Construction

1247 words - 5 pages Construction Masterplan. Online. Available at: http://www.bca.gov.sg/SustainableConstruction/sustainable_construction.html vi. Building and Construction Authority of Singapore, 2013. Recycled Materials for Construction. Online. Available at: http://www.bca.gov.sg/SustainableConstruction/sc_recycled.html vii. United States Environmental Protection Agency (EPA), 2014. Sustainable Practices. Online. Available at: http://www2.epa.gov/science-and-technology/sustainable-practices-science viii. College of Estate Management, 2006. The International Cultural Challenge. CEM. UK.

Aaaa

2654 words - 11 pages offline after researching online Source: BrandNewWorld: AOL UK / Anne Molen (Cranfield School of Management) /Henley Centre, 2004 David Chaffey, E-Business & E-Commerce Management, 5th Edition, © Marketing Insights Limited 2012 5 Slide 4. 16 Motivation for using the online channel • Web Motivation Inventory (Rodgers et al 2007) Research (information acquisition) Communication (socialization)  Surfing (entertainment)  Shopping

Cadbury Advertising

3617 words - 15 pages ". Uk.reuters.com. N.p., 2016. Web. Available at: http://uk.reuters.com/business/quotes/companyProfile?symbol=MDLZ.O . Accessed on: 1 Mar. 2016. Airport Technology. (2016). The top 10 busiest airports in the UK. [online] Available at: http://www.airport-technology.com/features/feature-the-top-10-busiest-airports-in-the-uk/ [Accessed 20 Mar. 2016]. "What Is Hubspot?". Hubspot.com. N.p., 2016. Web. Available at : http://www.hubspot.com/what-is-hubspot. Accessed

Future Strategic Directions Of Accor Hotels Group

2672 words - 11 pages ) is Accor’s central reservation system which the firm infrastructure activities that connected to all distribution channels like direct sales from Accorhotels.com, brand sites, and Call centers…The indirect sales like 21,000 traditional /or online travel agencies, wholesalers and tour operators; time-honored distributor partners like America Express and Carlson Wagonlit Voyages. With this well developed reservation system, the Group could control

Hnd Hospitality

1943 words - 8 pages -- Lifestyle: The New Luxury – YouTube: http://www.youtube.com/watch?v=QTVGrFWAkjo Financial Crisis On Hotel Industry - Bloomberg – YouTube: http://www.youtube.com/watch?v=vKxjNqRzpcE Future Travel Industry Online Marketing Business opportunities in travel, airline industry, tourism, hotels and hospitality – YouTube: http://www.youtube.com/watch?v=RJLUx0OfmH8&list=SPEC8FEF9BD9D0CE9E Appendices Table 1: Industry businesses by size

Management Structure

1647 words - 7 pages | Understanding and Managing People | Student Number:12827721 Module Code: SM524U Industry Sector: Travel Content Review Number 1 Date: 21.11.2013 | Management Structure Topic Area: How can structure and effective management

Tesco

993 words - 4 pages (ASDA and Sainsbury’s) that have online delivery services as well as offline retail stores, market was packed and there was an opportunity and need of expansion in other areas. * Retail price Maintenance (RPM) system had restricted Retailers from pricing goods below a price agreed upon with the suppliers. Tesco were not able to compete on price with small retailing outfits. * In 1970, the customer were no longer price conscious and were

Related Essays

Nam Ho Travel Pte Ltd Essay

2508 words - 11 pages station. Where has a high population, but also, there are more than 15 travel agencies, includes major competitors like CTC, Chan Brothers and Hong Thai, just around 10 minutes walking distance. Even though, as one of the oldest travel agent in Singapore, it has it reputation, especially for older generation, the only reason Nam Ho Travel’s office is located near Chinatown, is to lead loyal customers to the physical branch. 3.2 Online

International Marketing Medical Tourism Essay

2469 words - 10 pages the number of doctors and nurses joining the medical workforce. Source: Deloitte Outsourced Patients- Patients who are outsourced by health agencies to other countries due to long waiting lists or lack of speciality equipment or personnel in the home country. Generally the patients are outsourced to relatively nearer countries. Eg of waiting list- UK, Eg of Lack of Speciality- Movement of patients from Bangladesh to India Source: Deloitte

Contemporary Essay

2503 words - 11 pages Travel & Tourism Council, 2015, Startegic Priorities, Online at: www.wttc.org/about/ | | | |The students are advised to use the information from scenario in their assignments but not to copy it

Missie Visie Apple Essay

6438 words - 26 pages outcome will provide insights for travel agencies on how to improve their services targeted towards students. 1.3 Problem Statement The percentage that accounts for online travel bookings increased from 25 percent in 2003 to 76 percent in 2012 (ING, 2013). Thus undeniably inferring a trend in online bookings especially amongst young consumers (Weber, 2013). Therefore, it is of importance to travel agencies to consider the motives for students to