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Tourism - Essay Example

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The purpose of this essay is to provide a critical examination to the theory that high performing companies continue to introduce new products and provide focus to growing revenue and market share during a recession.
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Tourism

Download file to see previous pages... After this point the paper will give some insight as to the overall trends in the international community specifically in the United States. Next an in depth analysis will be conducted as to how the UK travel industry has been affected by the recession and provide insight as to what strategies some organizations have opted to utilize in effort to combat the recession specifically focusing on strategies such as offering new low cost options or increased advertising. Building on these points this paper will argue that many of these changes may simply be short term strategies designed to adjust to temporary changes in consumer preferences and how some strategies are designed to be coherent long term strategies.
In an article published by the Suffolk City Council (2008) a number of different groups were identified as being the most likely to be affected by the current recession. Primarily identified were in terms of individuals were people with low incomes such as those people with fixed incomes, and those people unable to cope with rising costs such as those heavily in debt. In regards to manufacturers and service providers the research summary identified that companies manufacturing durable consumer goods such as washing machines or cars will be severely negatively affected by the recession owing to the fact that consumers are reluctant to make big purchases in times of economic uncertainty. More importantly to this topic the Suffolk City Council (2008) identifies that the service sector will be the most negatively affected sector insofar as retail, financial services leisure has already seen some of its biggest decrease in output levels since the mid nineties. The reasoning behind this decrease in the service sector (Specifically the leisure sector) is because of the falling consumer confidence in the overall economy. According to Barbaro and Uchitelle (2008) it is the case that in the American context consumer confidence in the strength of ...Download file to see next pagesRead More
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