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Feasibility Study: Travelling and Touring Company in the UK - Coursework Example

2021-07-12 02:09:28
7 pages
1762 words
University/College: 
Boston College
Type of paper: 
Course work
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The tourism industry in the UK is undergoing a rapid growth of unique nature, and in future, it will be one of the highest incomes. Both domestic and international tourists visit different sceneries throughout the UK due to the increased advertisement regarding the sites. According to VisitBritain Shop, (2017) theme parks, zoos, and other sceneries such as Tower of London, St Pauls Cathedral, and Stonehenge have been the leading tourist attraction centres for both domestic and international tourists. Travel and leisure is a great industry with a great future that one can invest in. This company will be penetrating a lucrative market with a rapidly growing industry and according to the current trends; there is an increased number of tourists visiting the country thus presenting an opportunity. The company will also take advantage of the growth and the existence of moderate competition in the tour and travel industry by using innovative, dedicated, and experienced personnel who will ensure there are networking and effective marketing and management. The enterprise has a plan of providing travel and adventure packages to its customers planning to tour the UK. The services provided by this company include hotel booking and arrangements, pre-arranged tours, packages as directed by the client, travel services, and other additional services. The services will be designed strategically to offer high quality, comfort, and to meet the customer needs such that they will facilitate a better appreciation of UK hospitality. Another aspect of this industry is that it will provide other business ideas along the way such as hotel and catering. With a research of all the requirements in this industry, the company is ready to provide maximum services to the satisfaction of every customer.

Market Research

In the UK, several companies are offering the travel services around the country, but this does not stop the business idea. The top companies include The Ultimate Travel Company, Kuoni Travel, British Tours, Titan Travel UK, Scenic UK, and Intrepid UK. The travel agents such as The Ultimate Travel and Kuoni Travel are the highest ranked in the market. These companies offer services around the UK and also organise flights for the clients and other needs such as accommodation and tour guide. The companies have established a promotion mix by advertising worldwide, and people can also access their websites for more information. Apart from advertising, they have also established a promotion strategy for their clients especially during the holidays where they offer ultimate services. The Ultimate Travel has also engaged in some public relations such as charities for publicity and to gain popularity which is also a marketing strategy. All of the above companies have some satellite stations in the UK which enable more customers to access their services. Another thing in common for the travel companies is that they have partner companies that work as the key stakeholders and sources of income. For instance, the Intrepid UK offer sales promotion for specific holidays which are available on their websites based on the sites to visit including the number of days to be covered in the adventures.

This company will, therefore, develop a marketing strategy by first carrying out a PEST and SWOT analysis (Burt, Johansson, & Thelander, 2011, p.183). The PEST analysis will identify the key opportunities and threats in the operating environment. The key items in the PEST analysis include Political (P) interventions that may hinder or promote the establishment of the company including policies and support from some key stakeholders. Economic (E) factors that may affect the profitability of this enterprise include inflation, seasonal variations, and the purchasing power of the clients. The tourism industry in the UK is a continuous business although with some peaks during the holidays. The seasonality of this business is an economic threat to the business although this will be addressed by focusing on the event activities for every season. Social factors, on the other hand, may affect the demand for the services offered by the enterprise and they are majorly customer behaviours. The company will create social influences through promotion and social media marketing to win the customer attitude and their purchasing power. Technological (T) factors that may impact the company include technological developments and innovations. Technology is key factors that should be considered to enable online services and other functions such as marketing and advertising the products and services offered by the company.

Additionally, a SWOT analysis for the company as it enters the marketplace is also a marketing strategy to promote its success (Burt, Johansson, & Thelander, 2011, p.183). The Strengths (S) of this enterprise will depend on the availability of stakeholders for a good startup capital. Concerning the Weakness (W), the enterprise is likely to face management weakness at the startup. For the Opportunities (O), the tourism industry in the UK is still growing both domestically and internationally. The only Threat (T) to this company is the competition in the market by other travelling agents that were established earlier. The marketing strategies employed by these companies are not new to what this company will use.

There is a demand regarding the tour and travel services both locally and internationally. Citizens of the UK have an increasing interest in spending their holidays at zoos and theme parks including adventures within the UK and outside their locality to other countries. According to the Office of the National Statistics, there is an increase in the overseas residents who visit the UK. In August 2017, 3.9 million visits were recorded, and as compared to 2016, it was a 5% increase and holiday visits also increased by 13% to 5.2 million (Ons.gov.uk, 2017). The UK residents also travel to other destinations across the world for holidays. The above data is indicative that the industry requires more tour and travel services.

Financing Enterprise

For the start capital, this enterprise will require approximately 430,000 Pound sterling.

Start-up Expenses Amount Funding Amount

Legal fee 1,000 Start-up Expenses 428,000

Brochures 9,000 Insurance 20,000 Liabilities 0

Consultancy fee 10,000 Borrowing 0

Stationeries 10,000 Others 28,000 Total Liabilities 0

Total start-up Expenses 78,000 Assets Investment Start-up assets 100,000 Investor 1 100,000

Long-term assets 250,000 Investor 2 130,000

Investor 3 200,000

Total Expenses at the start-up 428,000 Total Investment 430,000

Total Funding required 430,000 Total Funding 430,000

Marketing the Services

Apart from having a website that will enable online services for our clients, additional marketing strategies will be applied to fit in the market industry. First, the company will employ social media and internet marketing through the use of Ads (Burt, Johansson, & Thelander, 2011). Most of the clients who visit the UK from other continents and countries will have a chance of knowing the enterprise and its services through the social media platforms. The social media platforms to be employed in marketing are Facebook, Twitter, and Instagram. Additionally, the company will employ internet Ads that will share most of the best scenic in the UK thus winning the interest of the clients to buy our services. Another strategy is to expand our services outside the UK whereby the company will have an opportunity to take tourists from the UK to other places around the world including Africa and America. Additionally, by situating agents in other countries around the globe will be a grand marketing strategy for the market entry (Burt, Johansson, & Thelander, 2011, p.183).

Pricing Strategy

The pricing strategy will provide the best price point at which the company will have a maximum profit (Abrate, Fraquelli, & Viglia, Giampaolo, n.d.). Due to the existing competition, the price must be placed to convince the preference of the customer. Some of the factors to consider when setting up prices includes total days for the travel and tour, distance based on different scenic sites, and the total number of tourists. Again the company must consider the competitor offerings to win the customer interest. Additionally, in the tourism industry, seasonality is a factor to consider since most people break for holidays during specific seasons such as summer and winter. Every season has distinct activities.

Penetration strategies will, therefore, be used to win more tourists both local and international. This will involve the offering of lower prices for the travel and tour services as compared to the competitors. The prices will also be accessed not to cause a loss to the enterprise, and after penetrating the market, the company can then wind up by raising the prices to match those of other competitors. This pricing strategy will ensure that the company has a position in the market regarding its committed clients. Another pricing strategy is the psychology pricing whereby some of the services will have a lower price while others will have standard rate according to the market. For instance, in the tour and travel industry, accommodation is a need, and it has other expenses such as foods and drinks. After subsidising the travelling cost, the accommodation cost will be set according to the standard price or slightly lower. An essential thing for the tourists is travelling and therefore, lowering its price will attract more attention. Similarly, bundle pricing will also be used to catch the attention of most of the tourist. In bundle pricing, the company will offer prices in bulk for a multiple of services. For instance, setting up a price that will take care of all services including travelling and accommodation will be highly considered by the clients rather than paying for the service individually (Abrate, Fraquelli, & Viglia, Giampaolo, n.d.).

Business Model Canvas

Key Partners

{insert Business Partners} Activities

-Travelling services

-Accommodation

-Adventure packages Customer Relationship

Personal assistance

Self-service Value Proposition

-Experience the Best Scenic Sites in UK

-Spend your Holidays Exclusively

-Know your World

Key Activities

Travel and Touring Services

Accommodation

Channels

Agents Sales

Linked-in Websites

Mobile Applications Cost Structure Revenue Streams

Travelling Cost

Accommodation Cost Interest Income

Summary and Recommendations

Following the growth of the tourism industry in the UK, travelling and touring is a better investment. Establishing a company that will offer travelling and accommodation services for both local and international tourists is the durable business idea that once in the market it will be a future investment. There are competitors in this market as identified above but based on the marketing strategies of the business it will manage the threats. Additionally, the pricing strategies will play a role when entering the market for this new company. The budget for the start-up is sufficient to enter the market will all resource and assets available. For a sustainable enterprise, the management will be required to apply effective marketing strategies both locally and internationally. The enterprise will also require stationing some of its agents in other countries with a goal of marketing and receive tourists from the UK to those countries. Another factor is the pricing strategy as this is a new company that will require attracting more customers to ensure a profitable income. The prices must include customer friendly to w...

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