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Tourism and Hospitality Promotion - Essay Example

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Tourism and Hospitality Promotion: EASYJET Introduction: The Tourism and Hospitality industry around the world is growing at a exceptional rate. It is a main resource of revenue these days. In almost every nation this industry is being looked upon as a lucrative industry catering to huge growth potential…
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Tourism and Hospitality Promotion
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Download file to see previous pages Easyjet follows certain value systems for the purpose of objective setting strategy. This includes designing and maintaining the highest safety standards for its customers, breaking the shackles of traditional methods of thinking and find innovative ways and means to attract new customers, providing services that transcend the expectations of the travelers, converting newer customers into long term customers by providing customer satisfaction and best service possible, focusing on a double-digit growth rate in future years, enhancing capacity utilization, reducing fixed cost, providing the highest quality resorts thereby helping the customers to gain the best experience possible which will in turn bring profits. (About easyJet, n.d.) PEST Analysis of Easy Jet: Political-legal factors: The Political legal factors affecting the Easyjet include the political unrest and war signal in the Middle East. The Air Miles scheme is not recognized by the government as taxable perk in the same ways as tax is levied on company cars, which may help the Easyjet to contend on the same base with that of British Airlines. Engagement with the EU market gives them the widest network access. Economic factors: Increasing fuel costs, legal and environmental regulations and possibility of higher security along with insurance costs increases the risk for terrorism. Globalization helps the traffic to grow in longer term, the introduction of a single currency helps in boosting the business with the whole of Europe getting integrated. Socio-cultural factors: General reluctance in using credit cards seems to be the concern for attracting French and German travelers. Customers being more comfortable with cheaper flights get angry when they have to pay a premium to actual cost for a particular time of flying. Technological issues: The major issue is how much the application of Internet has synergized the cost and distribution resulted from integration of the industry causing reduction in the upward rise in price. (Geiger, Schlottke & Schrade 2009) Porter’s model: Bargaining Power of Suppliers: Only two suppliers Airbus and Boeing provide aircrafts and face stiff competition. This helps the Easyjet to buy aircrafts at cheaper price. However the switching cost to another supplier is also very high. Bargaining power of customers: The price bargaining power of the customers is very high for Easyjet. With so many other LCCs in the market it becomes important for Easyjet to provide economical price to retain customers. Threat of New Entrants: There is a huge capital investment required upfront in the airline industry. Moreover higher efficiency is required to maintain sustainability. Moreover with so much air carriers, the introduction of a new one creates high competition facilitating price war. Threat of Substitutes: The main objective for Low cost Airlines includes faster and cheaper travel. Moreover the whole of Europe is connected with well-networked extensive train system, which provides transportation at a cheaper cost. So there is a definite threat for Easy jet in this regard. Rivalry among competitors: Easy jet faces huge competition among its competitors, as there is an intense competition to maintain cheaper airfare and providing better customer services. (Geiger, Schlottke & Schrade, 2009, pp. 2-4) SWOT Analysis: SWOT Team (2007) Strength: The overall cost-leadership model, the ...Download file to see next pages Read More
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