Executive summary
Tourism marketing is a philosophy of management which make sure that the tourists’ demands are being fulfilled and this is done by research, selection of products or services and forecasting. The tourist must be satisfied with the products or services that are provided to them. The Hays Travel Company is the largest in the United Kingdom. The company is independently working. In this business report the external analysis and internal analysis are done for Hays Travel Company. The external analysis is done with the help of the PESTLE model. The internal analysis is done with the help of Porter’s five forces model. This business report also incorporates ethics in business and future development for Hays Travel Company. This business report has information about the Hays Travel Company and the services provided by the company. The business report provides information about the company's background and the services offered by the company in the travel and tourism industry.
Table of Contents
Political factors affecting the tourism industry. 4
Economic factors affecting the tourism industry. 5
Social factors affecting the tourism industry. 5
Technological factors affecting the tourism industry. 5
Development in the transport system.. 5
Availability of information. 5
Legal factors affecting the tourism industry. 6
Environmental factors affecting the tourism industry. 6
Pollution caused by tourists. 6
Bargaining power of suppliers. 7
Bargaining power of customers. 7
The threat of substitute products or services. 7
Company background
Hays Travel Limited is a private company. The founder of Hays Company is John Hays. The Hays Company was founded in the year 1980 in Sunderland, England in the United Kingdom (UK). The company provides charter and scheduled passenger airlines, package holidays, cruise lines, hotels and resorts (Sadq et al., 2019). Hays Travel Company is known as the UK’s largest and independent travel agency. The company is specialised in providing good holidays, good value and along with that excellent consumer services. Hays Travel Company has the main objective to save money, time and resources. The company offers diverse, extensive and cost-effective services. The company offers various services some of them are air, and rail for transport and travel provided with that hotel bookings, car hire, VISA and self-booking tools (George, 2021). The Hays Travel Company has the data of airlines and they help save up to seventy per cent on airfares for their customers. The rail services of the company are flexible and are operated online and this makes it easy for customers to book tickets. The company make sure that the hotel bookings are under the budget of the customers and the company negotiates with the hotels to give their best prices. The company has a connection with hotels worldwide to make better travel experiences.
External analysis
The tourism industry has a never-ending scope and boundless opportunities. To understand the tourism industry PESTLE analysis can be done which tells the factors which affect the tourism industry as a whole. These factors include political, economic, social, technological, legal and environmental factors which affect the tourism industry (Madsen and Grønseth, 2022).
Political factors affecting the tourism industry
Political stability
Political stability means there are no civil wars or oppressive regimes in the country. Political stability helps in increasing tourism. When tourism increases the economy of the country also increases.
Tax incentives
One of the political factors which affect the tourism industry is the tax incentive. Tax incentives mean that the tourist can claim the tax they have paid for various products purchased during their travel. The tourist can claim the tax incentives at the time of departure.
Economic factors affecting the tourism industry
Rising income level
The global economy is growing so the income of people is rising nowadays. Previously people were unable to travel due to high expenses but now people can afford luxuries such as tourism. Economic growth like this is found in the tourism industry and will remain and benefit the tourism industry.
Social factors affecting the tourism industry
Trend aspect
For the younger generation, tourism has become a trend and with the help of social media, a lot of trends are being set. Previously tourism was considered an experience of travelling or bonding experience but now it is expressed as a purchasing power and shown through social media. This factor has given a boost to the tourism industry recently.
Cultural inquisitiveness
People living around the world are becoming more curious about other countries' cultural heritage and this has made them travel to other nations so that they can experience those cultures. This factor has increased tourism and people are now comfortable because they want to know more about other cultures.
Technological factors affecting the tourism industry
Development in the transport system
The development of the transport system has increased with time. There are more aeroplanes available for customers and people can get their tickets online with one click. These facilities have boosted the tourism industry and people feel convenience while travelling (Godovykh and Tasci, 2020).
Availability of information
People have access to travel-related information with their smart devices. Various travel-related blogs and websites have made it easier for people to know about destinations and this has increased the interest of people in the tourism industry (Hays travel, 2023). Technological advancements have made tourism easy and convenient.
Legal factors affecting the tourism industry
Easies to access VISA
Gain VISA was a difficult and hectic task previously. Many legal procedures have to be followed but now it has become a bit easy and everyone can gain VISA with simple procedures throughout the world (Travel weekly, 2022). Some other legal procedures related to tourism have also become trouble-free which has increased tourism.
Tourist loans
The banks provide tourist loans and many of the banks give this facility. It has become easy for people to travel internationally because of these loans.
Environmental factors affecting the tourism industry
Climate change crisis
Due to the rise in the tourism industry, the pollution caused by aeroplanes and other vehicles is increasing. Many environmental activists are proposing ideas of minimising tourism to ensure that the environment remains non-polluted (Rahman, 2019). The transport systems are using heavily polluting vehicles due to which the pollution is increasing.
Pollution caused by tourists
Pollution caused by humans to the beaches and coral reefs is increasing because of the increased number of tourists. This is damaging the environment and causing pollution. The government is going to take strict action on decreasing tourism because the damage caused by people is affecting the environment.
Internal analysis
To understand the competition in the market porter's five forces model is used. Porter's five forces are competitive rivalry, the bargaining power of suppliers, the bargaining power of customers, the threat of new entrants and the threat of substitute products or services.
Porter's five forces model
Competitive rivalry
The competitive rivalry shows the intensity of competition in the market. The Hays Travel Company is having some competitors in the market they are Thomas cook, On the beach, Love holidays and First choice travel Company (Madsen and Grønseth, 2022). The competitive rivalry for Hays Travel Company is low because the company is well-stabilised and has faithful customers. The prices offered by the Hays Travel Company are nominal and therefore the customers do not switch to other travel companies.
Bargaining power of suppliers
The bargaining power of suppliers tells about the profitability of the company. If there are multiple suppliers in the market then the company can switch to various suppliers. When there are limited suppliers in the market then this force serves as a strong force and makes the company's profit low. For Hays Travel Company there are multiple suppliers because it deals with various hotels and travel services (Willems et al., 2019). The bargaining power of suppliers for Hays Travel Company is low. Therefore the Hays Travel Company earns high profits in the market.
Bargaining power of customers
The bargaining power of customers determines the power of consumers which is based on the quality and price of the products or services. If there are multiple sellers in the market which offer the same services at a lower price then there is a high chance that the customers will switch (Madsen and Grønseth, 2022). The Hays Travel Company provides good prices and excellent quality services and therefore the bargaining power of customers is low for the company. The services provided by the Hays Travel Company are unique and different from other companies and therefore the consumer does not switch to other travel companies.
The threat of new entrants
The threat of new entrants means is it possible for a new company to survive and give competition to the existing company. The Hays Travel Company is a very old and well-established company so a new entrant can't match the level of the pre-existing company (Which, 2022). The Hays Travel Company has many branches and it deals with worldwide travel. It will take a lot of time, efforts and investment for a new company to give competition to Hays Travel Company. So the threat of new entrants is low for the Hays Travel Company.
The threat of substitute products or services
The threat of substitute products or services means that if some other companies provide better services at low prices then the customer would switch to that company. The Hays Travel Company has good quality services and affordable prices so the customers do not switch to other travel companies. The threat of substitute products or services is low for Hays Travel Company.
Ethical in business
The Hays Travel Company follows ethics in their business of travel and hospitality. There are many ethics in the tourism industry some of them are related to the environment and local population living in the area of tourism. It is seen that tourists when visiting a location say beaches or coral reefs do not take care of the hygiene and cleanliness of that particular location. Due to this the environment is getting extremely affected. When tourists visit any location or venue it affects the local people living in that area because they travel throughout the locations and might damage the privacy of local people living in that area (George, 2021). The Hays Travel Company follows all the ethics in business as it is a very old company and knows all the travel-related ethics. The company follows travel and tourism guidelines. The company provides the same travel experience to all of its customers. There is no discrimination followed by the company on any basis. For Hays Travel Company all of its consumers are equivalent and they treat them equally. The Hays Travel Company provides the best prices as it deals with hotels and negotiated for customers. The company makes sure that the customers get the hotels and services at minimal prices where all of the requirements mentioned by the customers are fulfilled (Jamal, 2019).
Future development
The Hays Travel Company should work on their online platforms so that the customers get better services and access to online bookings (George, 2021). When the company will be making easy and convenient bookings online there will be more consumers of their travel and tourism company. The company should work on their marketing strategies so that the company gains more profits. The Hays Travel Company should use online platforms for advertising their various tour packages and deals. This will enhance the reach of the company to various customers worldwide. The company should try some strategies like minimising prices or providing offers to the customers so that more of the customers will be attracted to opt for the Hays Travel Company for booking their tours. This will increase the number of bookings and will increase the profits of the company (NIBE, 2021). The Hays Travel Company should use social media as a marketing channel. Marketing channel helps in spreading information related to the company to all the people and this enhances the reach of the company. When the company uses marketing channels there is awareness among the people related to the services provided by the company.
Reference
Sadq, Z.M., Othman, B. and Khorsheed, R.K., 2019. The impact of tourism marketing in enhancing competitive capabilities. African Journal of Hospitality, Tourism and Leisure, 8(5), pp.1-11.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and Hospitality: Concepts and Cases (pp. 149-182). Cham: Springer International Publishing.
Madsen, D.Ø. and Grønseth, B.O., 2022. PESTEL Analysis. In Encyclopedia of Tourism Management and Marketing (pp. 473-475). Edward Elgar Publishing.
George, R., 2021. Marketing tourism and hospitality: concepts and cases. Springer Nature.
George, R., 2021. Quality Service Experiences Through Internal and Relationship Marketing. In Marketing Tourism and Hospitality: Concepts and Cases (pp. 419-446). Cham: Springer International Publishing.
Jamal, T., 2019. Justice and ethics in tourism. Routledge.
Rahman, M., 2021. PESTEL analysis of the tourism industry. URL: https://howandwhat. net/pestel-analysis-tourism-industry.
Godovykh, M. and Tasci, A.D., 2020. Customer experience in tourism: A review of definitions, components, and measurements. Tourism Management Perspectives, 35, p.100694.
Willems, K., Brengman, M. and Van Kerrebroeck, H., 2019. The impact of representation media on customer engagement in tourism marketing among millennials. European Journal of Marketing, 53(9), pp.1988-2017.
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Travel weekly (2022), hays further down line with retail expansion, source [online]. Available from: https://travelweekly.co.uk/news/travel-agents/hays-further-down-the-line-with-retail-expansion-plans [accessed 29/03/23]
