Pest Analysis for a Company in the Tourism Industry :

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PEST Analysis for a Company in the Tourism Industry

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?[2]So, 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.

1.2 Problem Formulation

In the problem formulation part of my report I would describe the overall situation of the U.K Tourism industry. The service concept of ?Simply Travel? will give us information about the services provided by the company. I will find out about the customers, competitors of the company. I will find out what political, economical, social and technological factors affecting the company and its demand situation.

1.3 Limitations

The biggest limitation for writing this report is time and the pages to write. It is a broad topic and it could be better presented if available more time and space to write about, but still I have tried to highlight some main points raised during my finding. My knowledge about the company ?Simply Travel? is internet-based and I could not able to contact the company for further information. Due to the lack of information about the company I will only describe one component of the Service Management System. I will be describing only the OT part of the SWOT analysis.

1.4 Methodology

Being inspired from the Service Management System I will describe the service concept of the company .I will conduct a P.E.S.T analysis to find out the political, economical, social and Technological factors affecting the company. From SWOT analysis, I was conducting OT analysis to find opportunities for the ?Simply travel? in future.

1.5 Data

I will use Secondary data collected from different industry reports available on internet for my report. Data provided in conducting P.E.S.T analysis has been taken from www.statistics.gov.uk.

Chapter 2

2.1 Simply Travel?s Service Concept[4]

Established in 1978, Simply Travel has been providing travel solutions since 26 years for the discerning travels who want more from their holiday than just a decent tan. Not through the aggressive marketing tactics, but by providing an attractive alternative to mass-market package holidays has lead ?Simply travel? to gain a big loyalty pool among the holiday travellers.

?Simply Travel? serves its customers with wide variety of holidays including destinations like Croatia, Greece, Italy, Morocco, Portugal, Spain and Turkey.

Services provided by the company are intangible but still physical tool and equipments used in operations are tangible if the customer visits the company?s for the services. To get a better understanding of the services provided by ?Simply Travel? I will split the services...
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