Thomas Cook Analysis
PEST Analysis of Thomas Cook
PEST Analysis is mainly used to scan the environment. PEST refers to political, economical, social and technological factors. Thus Pest is used to analyses and scans the general environment surrounding Thomas cook. It is through PEST that the company will be able to detect as well as monitor the weak signals in order to recognize the fractures which shape the environment.
Political Factors
The UK travel and tourism industry has faced immense pressure from the government as it has introduced tourism tax and has said to affect all the travel and tourism business including Thomas Cook. The travel agents had opposed to the proposal of bed tax which the government had levied £1 per head per night from the visitors staying in the local hotels. The proposed bed tax is said to increase the domestic price and keep the foreign visitors from holidaying in UK (The Guardian, 2012). The potential tax of about 5% to 10% would make England the proposed bed tax is said to increase the domestic price and keep the foreign visitors from holidaying in UK (The Guardian, 2012). It is one of the highest taxed holiday destinations in whole of Europe (BHA, 2012). Thus with the rise in tax, business like the local shops, the restaurants and the travel agencies are said to be affected.
Economic Factors
During the past few years the tourism sector have faced hard times due to challenging economic times and have largely impacted the global travel market but however there are signs of recovery within the consumers. The travel and the leisure sector were impacted mainly due to the consumer’s disposable income, unemployment rate, fluctuation in the rate of currency and the oil price. All these drives have hugely impacted the travel and leisure industry. The GDP declined by 6% in the year 2009, the rate of unemployment has increased to about 2%, the price of oil continued to be highly volatile. In addition to the above factor, there are other factors which have
PEST Analysis is mainly used to scan the environment. PEST refers to political, economical, social and technological factors. Thus Pest is used to analyses and scans the general environment surrounding Thomas cook. It is through PEST that the company will be able to detect as well as monitor the weak signals in order to recognize the fractures which shape the environment.
Political Factors
The UK travel and tourism industry has faced immense pressure from the government as it has introduced tourism tax and has said to affect all the travel and tourism business including Thomas Cook. The travel agents had opposed to the proposal of bed tax which the government had levied £1 per head per night from the visitors staying in the local hotels. The proposed bed tax is said to increase the domestic price and keep the foreign visitors from holidaying in UK (The Guardian, 2012). The potential tax of about 5% to 10% would make England the proposed bed tax is said to increase the domestic price and keep the foreign visitors from holidaying in UK (The Guardian, 2012). It is one of the highest taxed holiday destinations in whole of Europe (BHA, 2012). Thus with the rise in tax, business like the local shops, the restaurants and the travel agencies are said to be affected.
Economic Factors
During the past few years the tourism sector have faced hard times due to challenging economic times and have largely impacted the global travel market but however there are signs of recovery within the consumers. The travel and the leisure sector were impacted mainly due to the consumer’s disposable income, unemployment rate, fluctuation in the rate of currency and the oil price. All these drives have hugely impacted the travel and leisure industry. The GDP declined by 6% in the year 2009, the rate of unemployment has increased to about 2%, the price of oil continued to be highly volatile. In addition to the above factor, there are other factors which have