The Factors Affected the Market of a Family Run Online Tourism Agency Business - Term Paper Example

 The Study to explore The Factors That Affect The Market Of A Family Run Online Tourism Agency Business. Table of contents Introduction 3 Statement of the problem 3 Purpose of the study 4 Research question 5 Hypotheses 5 Research questions 6 Reviews of the literature 7 Methodology and procedure 10 Framework of study 10 Target population 10 Data collection and sample 11 Data analysis 11 Strength and weakness 11 Ethical considerations 12 Tentative Time schedule 13 Conclusion 13 Reflective section 14 References 16 1. Introduction The advent of new technologies has revolutionized the communication, bringing forth a host of new ideas and opportunities in the field of tourism. ‘In the tourism industry, more and more tourist service providers rely on the internet as a key communication tool that is enabling them to save costs and increase the number of customers’ (ICT, 2005). The globalization has further, made it easier for the entrepreneurs to encash the vast potential in this new emerging industry. Suddenly the sedate and traditional tourism has ventured into the quarters which were hitherto beyond the boundaries of imagination of the common people. The competitiveness has brought in a new fervour in the industry and new ideas and partnership in the field of tourism has become a norm. Therefore, tourism as a family run business needs to be redefined in term of changing global values and the study would be designed towards exploring the factors that affect the market of a family run online tourism agency business. 1(a) Statement of the problem In recent times, there has been great mushrooming of these travel agencies and the tourism industry has flourished at an unprecedented rate. With the competition becoming tougher everyday, it has become important that new strategies and plans incorporating new ideas and innovative vacation packages be introduced. Another very important aspect of international business is that the compulsions of the present times require versatility in the work ideology and functioning, thus making it imperative that new skills and strategies are evolved to meet the emerging challenges with efficiency and unmatched proficiency. Thus it is important that online tourism business must go beyond the traditional family imperatives to encompass global partners to meet the challenges of the contemporary times. 1(b) Purpose of the study The purpose of the study is to gauge the extent of the influence of the external factors that have considerable impact on the family run business. A focused market approach promotes awareness amongst the various stakeholders for the products and services offered by the organizations and facilitates easy to them by the people at large. Customers are the mainstay of all businesses and effective market strategy must incorporate a well defined market oriented plan, backed by technology that would help provide customer feedback. Thus, in the technology driven market of the contemporary global business it is important that efforts are made to examine the factors which may hinder the success of the family run tourism agency. It becomes imperative to identify the measures that would effectively mitigate the influence of those factors and help expand the market scope for tourism. The study would provide the family tourism business with wider perspectives of the changing paradigms of the business environment and help facilitate better options to address the emerging challenges in the dynamics of new business equations. 1(c) Significance of the study The significance of the study is that the facilitate family run agencies to realise the various factors, which are seriously affecting the success and smooth running of the family run business, especially in the area of tourism. In the contemporary times, the world is fast moving towards a multicultural environment that has shrunk the world into a small global village. The advancing technology, especially the advent of computers and internet services has greatly opened a huge galore of opportunities for the small businesses across the world. The study would go a long way in redefining the business strategy and objectives of the family run tourism business in the era of cutting edge competitive business environment. 1(d) Hypotheses Information technology has facilitated wider options of holiday destinations to the common man and travel agencies have made it easier for the him to go to far flung places by providing the necessary appendages like accommodation, transport etc. In fact ‘consumers are now able to put together more flexible packages.. via internet’ (Urry,2002, p 46). At the same time, globalization has dramatically changed the lifestyle of the people. It has brought in new dimension of work culture and an inherent competition that is both invigorating as well as stressful. The attractive vacation packages which are highly de-stressing in content would be greatly in demand as they would rejuvenate body and mind so people can come back to take up their professional life with renewed vigour and enthusiasm. The marketing metrics have increasingly become important facilitators for gaining useful information that help to improve and expand current market. As such, one needs to focus on information. Indeed, ‘we realized that the “objects” of strategy – such as business units, industries, supply chains, customer relationships, organizational structure, and so forth – are held together by a “glue”, and that glue is essentially information’ (Evans and Wurster, 2000). They help in getting customer feedback to create, improve and improvise their market plans to suit the changing preferences of the consumers thus building a sustained customer relationship that would not only retain existing customers but attract new customers. 1(e) Research question How would the introduction of theme based tourism packages alleviate the factors that adversely affect the success of family run online tourism agency? How would the concept of acquiring global partners in the area of special interest tourism impact on the internet based family business? 2. Review of the literature Kotler et al. (2007, p7) define market as ‘A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others’. In the current scenario of competitive business, it is important to take cognizance of changing preferences of the customers. A focused approach to the market strategy offers a wide spectrum of informed choices to the various segments of the market, thus creating needs which are later fulfilled by the promised product and service. Segmentation is a major market strategy that helps to identify prospective customers for the existing and new products of the company. Another important fact is that by focusing on the niche market, the companies can be creative in their products and services and provide the niche market with products that would satisfy their changing requirements. Kotler (2005) says that ‘brand building is needed because products are the same’. Market strategies try to promote goods and services by creating brands that fulfils customers’ demands of getting high quality goods and services that they want. By offering innovative and safe tourism packages, the online family tourism businesses can gain effective leverage against their rivals. Tourism industry’s challenge is to provide increased value for money either through innovation–driven cost reducing changes in production and marketing processes or through product changes providing more varied tourism experiences (Weiermair, 2001). Holidays have always held a special charm for the young and the old alike. Krippendorf says ‘travel is: recuperation and regeneration, restoring body and soul’ (pp24-8). Though the pattern of holidays and vacations, has changed over the years, the basic aim of relaxing has remained the most important feature. One journalist has observed that ‘for children it is a treat..I shall make it back’ (Hill, 1993). ‘Secular shifts (working versus leisure time…)led to modified leisure and tourism behaviour’ (Poon,1993). The success of such packages has encouraged tour operators to experiment with wide ranging ideas with impunity. Indeed, ‘the scope of providing new attractions to feed the insatiable appetite of the tourist is never ending’ (Holloway p 205). The awareness about issues and things has prompted entrepreneurs and agencies to come up with tour plans which would be multi-purpose and satisfy people’s needs. In the digital age, Special interest tourism significantly impacts the success of tourism. It is normally carried out in partnership with the local agencies which specialize in the concerned area. The traditional family business needs to develop global partnership to keep up with the times. The local speciality and local talents are often used to provide requisite essence which enhances the overall impact of the packages. The more the involvement of the local group, the better is the result of the tour package. As Ray Youell says that ‘the strategic role of governments will remain important and may well grow’ (p 236), one can see that the government and travel agencies need to form strategic alliances to exploit the vast potential of the industry. SIT packages have great influence on the local tourism and that is the reason, they are becoming popular overseas. Apart from the fact that they boost the local trade and employment, SIT packages are known to take even the smallest nation or the family business out of obscurity and into the world limelight. ‘An increasing globalization and the emergence of new tourist destinations worldwide have created a changing nature of competition’ (Nordin, 2005). That being the case, the travel agencies the world over, have now included such packages in their strategy and thereby adding special attraction. They have exploited this potential and have formed alliances with the local governments and agencies facilitating easy access for foreign travellers and help alleviating their woes to a great extent. The tourist industry therefore has become a great source of revenue for under-developed and developing countries. 3. Methodology and Procedure 3.1 Framework of the Study The proposed research study would be quantitative in nature but encompass elements of qualitative research also so that better and more accurate conclusions could be achieved. Since the research involves the study of the factors that have significant impact on the family run tourism business, a large sample size comprising of young professionals and families would be taken up. The study would be taking into account the conceptual model as well as the theoretical model. The samples selected and the questionnaires would be prepared as per the theoretical model of survey and a wider conceptual model of the research would be used to analyze the data. Secondary information sources such as libraries, commercial bibliographic databases for peer review, internet resources and e journals would be used for literature review. 3.2 Target Population The questionnaire would be basically targeting two groups. The first one would comprise of people who are running their own family tourism business and the second target group would be the families and professionals, young and the old, who may be looking for special interest tourism packages as a recreational activity to rejuvenate themselves. 3.3 Data collection and Sample Measurement techniques would comprise of questionnaires and interview schedules. Primary data collection would be collected through detailed and qualitative and quantitative questionnaires (Steven, Lohr) prepared, keeping in mind the business viability of ecommerce activity in promoting business activities. The survey (Patton, Cochran) would entail questionnaire filled directly by random selection as well as through email. Sampling (Barlett) area would comprise of individuals and big and small enterprises. Special interview schedules would also be used to gauge the responses of the people towards ecommerce activities carried through internet. 3.3 Data Analysis Comprehensive data analysis would be undertaken. Software like SPSS would also be used to analyse the data using different techniques. 3.4 Strength and Weaknesses Comprehensive sampling with wide ranging areas which are impacted due to the advent of technology, in the tourism industry across the world, would be introduced in the questionnaires and interview schedules so that the scope of study is large enough to ensure the success of the research’s aims and objectives. Another strong point of the study would be the wide diversity in the sample selected which would ensure wide scope of consumer behavioral pattern. The study is also designed to better understand the innovative practices of the family run businesses that they are impelled to adopt due to increased global competition. The study would also ensure the adequate focus is maintained on the factors that make the family, vulnerable to fast changing economic equations and competitive global business environment that are adversely affecting their success in terms of overall performance. The limitation of the study would be that we would be taking into account only the factors that are adversely affecting family run business and focus on the measures that might be taken up by the family business to meet the challenges of the changing time. 4. Ethical Considerations The rapid globalization has brought in an era of pluralistic society and increasingly large segment of population comprise of people from different race, colour, culture and nationality. The changing values necessitate development of a new social order which would not only embrace multi cultural values but help forge a universal bond that would transcend race and religious boundaries. Managing diversity, thus, has become a crucial issue with the businesses which needs to be addressed urgently if they want to maintain competitive edge over their rivals. Therefore, one often comes across moral and ethical dilemma while dealing with people with cross cultural values in the tourism industry. The research study would be particularly looking at the topic from the perspective of the inclusion of people from the diverse background and ensuring that the literature reviewed has diversity issues within its content and scope. 5. Tentative time schedule Serial Activity Days 1. Field Work 60 2. Compilation of data 30 3. Data entry and processing 15 4. Data analysis and evaluation 30 5. Writing and printing 60 6. Conclusion It is true that people have inherent urge for adventure and tourist industry, the world over, has left no stone unturned in order to provide exciting adventure in the remotest part of the world. This type of tourism, enjoy select patronage where money is no consideration. The sheer success of such packages has widened the target group and now people from various walks of life show interest in such tours. The main reason attributed to this emerging field may be because this may help them understand the complexities of war or experience first hand what people undergo during the time of crisis resulting in untold human miseries. Such tours help act as cathartic outlets for people who have undergone such traumatic experience themselves and who wish to participate in their rehabilitation process. As an online family based travel agency, it can be concluded that having global partners in special interest tourism would greatly enhance the success of the travel agency. (2355) Reflective section I strongly believe that in the rapidly changing environment of globalization and technology, the businesses have become more competitive thereby making it obligatory for them, as well as for the working force to become more flexible and swiftly adapt to the changing technologies and work environments. Rapid globalization has resulted in increased mobility that requires the ever increasing need for flexibility of time and place especially when the business is spread across the different countries. The internet has significantly expanded the horizon of tourism destination, thereby opening huge vista of opportunities for family run tourism agencies. The study would greatly facilitate the small business houses to exploit the potential of internet to expand their business and increase their revenue. At the same time, it is also important to realize that the socio-religious culture of the community has strong impact on the attitude and consumer behaviour of the public, which has direct affect on economic transactions of a family business. It is therefore vital that needs and concerns of the community, within which the firm intends to operate, be studied in detail so that sensitive public issues are not violated while working across the globe, albeit through internet. (2554) Reference Bartlett, J. E., II. Kotrlik, J. W., & Higgins, C. (2001). Organizational research: Determining appropriate sample size for survey research. Information Technology, Learning, and Performance Journal, 19(1) 43-50. Cochran, W G (1977) Sampling Techniques. Wiley.Hill,D. (1993). Mayday for May Bank Holiday, Guardian. 1 May. Evans, Philip & Wurster, Thomas S. (2000). Blown to Bits: How the New Economics of Information Transforms Strategy. HBS Press. Holloway,Christopher J. (2002). The Business of Tourism. 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Neue Organisations-, Koordinations- und Führungsprinzipien im alpinen Tourismus,., Vom alten zum neuen Tourismus, Studia, Innsbruck, pp. 244-254. Youell, Ray.(1998). Tourism: An Introduction. NY. Longman. Read More