Analyse the macro environment of the Europran Tour Operation with PESTEL analysisi from 2003 until today.

Topics: Tourism, TUI AG, Inflation Pages: 2 (1103 words) Published: October 23, 2014

Analyse the macro environment of the Europran Tour Operation with PESTEL analysisi from 2003 until today. TUI illustrates one of the most amazing and successful strategic changes of a firm among the largest European companies, the undisputed European leader in the tourism industry with a fast growing but very volatile and competitive industry. Thery operate in over 180 countries worldwide serving more than 30 million customers offering a wide range of leisure travel experiences. TUI travel ( tour operating, online sales, high street outlets, airlines and incoming agencies), TUI hotels and resorts and the cruise ship business comprises the three sectors of TUI. After the selling of Hapag Lloyd in March 2009, TUI has become a pure tourism oriented company. PESTEL analysis (Political, Economic, Social, Technological, Environmental and Legal analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. PESTEL helps understand the key drivers of change and external influences on the organisation. 1. PoliticalTerrorist attacks result in tight security reasons and strict immigration laws. Government toppling and political instability could adversely affect the tourism industry of that country. Political instability not only affects the tourism of that particular country but also that of the neighbouring countries as well. Taxation policies on tourism by different countries also have a major impact on the tourism industry. Governments often provide subsidies and tax exemptions in their countries to promote tourism of that particular country. Tax policy: Tourists contribute to sales, profits, jobs, tax revenues, and income in an area. According to the tourism tax policy is to ensure that the nation adopts the “right” policies to achieve the “right” goals”. To diversify the currency and geographical risk of the TUI group. TUI group is also listed on London Stock Exchange. These strategic moves gave...
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