StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

International Marketing for Travel & Tourism - Literature review Example

Cite this document
Summary
The literature review "International Marketing for Travel & Tourism" describes about the airline industry in common, it's place in the contemporary world and about Emirates Airlines in particular, how does it work, it's goals and strategies…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
International Marketing for Travel & Tourism
Read Text Preview

Extract of sample "International Marketing for Travel & Tourism"

Emirates Airlines International Marketing for Travel and Tourism Table of contents 0 introduction............................................................................................................................3 2.0 An Evaluation of Emirates Airlines’ Marketing Plan/ Strategy.............................................4 2.1 Challenges and Competition........................................................................................4 2.2 Situational Analysis......................................................................................................6 2.3 Customer Analysis and Collaborations.........................................................................7 2.4 PEST Analysis...............................................................................................................7 2.5 SWOT Analysis.............................................................................................................9 3.0 More Marketing Strategies.....................................................................................................11 4.0 Conclusion..............................................................................................................................12 5.0 References..............................................................................................................................13 1.0 Introduction It is hard to fathom the contemporary world being without the airline industry because the airline sector has a plethora of benefits to the society and equally offers quicker services compared to other forms of transport. This in turn helps build other industries and sectors of the world, hence playing a crucial role in ensuring a better world economy. The airline sector is vital in promoting globalisation and internationalisation endeavours of businesses, organisations and industries across the world (thus the need for various airlines to remain at the forefront of the competition from rivals by having the most superior strategies for marketing the respective airlines). This report delves on an international airline, the Emirates Airlines, and its marketing strategy. The Emirates Airlines is competitive airline, which is currently giving a number of airlines (such as the Air France and Lufthansa) a run for their money, and with increasing reach, the airline is set to realise untold heights in the business of air service (Namaki, 2008, p. 469). The Emirates Airlines was founded in 1985 and has since metamorphosed into the biggest airline in the Middle East. Fully owned by the Dubai government, the Emirates Airlines is a subsidiary of the Emirates Group. As a result of its excellence in service and astounding growth rates, the airline has amassed for itself a formidable brand name and become a giant mention in matters aviation. Moreover, the airline has equally continued to rank highest in terms of financial growth with the prospects of the future only predictably brighter. The goal of the Emirates Company is to lead by excellence. Its mission statement states that the company exists to provide the world’s best in-flight experience and the vision statement, additionally, is to make civilisation safe and sustainable. These are appealing aspirations which on their own attract customers globally by evoking sheer curiosity and a need to sample the services provided here-in. they help the company market itself and realise its objectives which are to increase market share, retain and obtain customers, and enhance global tourism (OConnell, p. 94). 2.0 An Evaluation of Emirates Airlines’ Marketing Plan/ Strategy 2.1 Challenges and Competition The Emirates Airlines has in the last few years immensely spread its operations. The fastest growing airline in the world, it has become a major player in fields of business, tourism, travel and leisure all across the globe. However, amidst its splendour and impressive growth rate (success), the Emirates Airlines still faces a number of challenges. These challenges include competition from rival airlines with equally gifted and formidable tactics. The Emirates Airlines’ strategic team can never afford to bask in threatened glories with such incessant and stalking competition ever-present in the business of aviation. The aim of the Emirates Airlines is therefore to remain a step ahead of the competition (that is going nowhere) in terms of innovation and implementation (Ferrell & Hartline, 2005, p. 411). Internal forecasts predict that competition in global aviation is set to become even stiffer. With customers always on the lookout for high performing and quality aviation systems, the Emirates faces a daunting task of retaining, and more importantly, expanding its customer base and permanently establishing it as the number one preferred airline globally. This calls for a multipronged approach which include the provision of superior and wider range of drinks and foods (for various tastes and cultures), better security measures, a reputation for the friendliest and most helpful staff (in every department), well organised and affordable transport services to and from the airports, ease of acquiring air tickets, improvement of existing technology, and so on. The Emirates, unlike the competition has to focus on long lasting implementations instead of short-sighted achievements that are bound to fade with time. The efficiency and quality status of most airlines in the Middle East is below the international standards. However, the Emirates must endeavour to compare itself with the best of the world and not lower its standards so that it can remain steadily ahead of the competing pack. 29 year old Emirates Airlines has proved its market acumen thus far by overtaking the 90 year old Lufthansa Group in terms of passenger numbers and fleet of airplanes. The Emirates has fearlessly plunged into the highly competitive and open sky policy of the United Arab Emirates and has risen above the rest to become a leading air services provider. Its success portends the spirit of free enterprise, competition and utmost resilience. Other notable competitors of the Emirates Airlines include the Etihad Airways and the Qatar Air. The Etihad, for instance, is the carrier for the Abu Dhabi area and is UAE’s national carrier with the airline presently owning and operating over 50 aircrafts and working in collaboration with over 40 world airlines such as the American Airlines, Malaysian Airlines, Jet Airlines, and so on. Apart from the air transportation, Etihad Airways also takes part in international transportation of goods (Connell, 2011, p. 377). Another challenge that the Emirates continues to contend with is the increases in the prices of fuel. Aviation fuel is quite costly and increases of the same only serve to significantly up the costs of operations which in turn retard development and competitive edge accrued from extra capital. The Etihad Airways, for example, benefits from increases in oil prices as it is backed by oil owners, unlike the Emirates Airlines which is backed by oil buyers. Weak travel demands, more so in periods of global recession/ financial strain also pose a huge challenge to the Emirates Airlines especially when a lot has been invested in the airline (in attempts to upgrade its outlook and customer appeal (awaiting a new market season). Weak demand therefore often leads to bad losses such as in the 2008 era of the global recession or at times of low tourist activity such as around February (immediately following the December festive period) and during terror alerts (Walker, 2003, p. 225). Increased government taxes (another ubiquitous challenge) also results in inflated costs of operations which, like the increase in oil prices, lead to slow growth rates and reduced ability to implement sound development agenda. The challenges faced by the Emirates are quite serious and result in a need for real quality leadership and experience in the field of airline management coupled with a dedicated and innovative staff (Pryke, 1987, p. 124). 2.2 Situational Analysis With time, the Emirates Airlines has grown in both stature and scale and inserted itself in the aviation business as a world beater in tourism and travel. The airline has gained a reputation as a committed industry which is dedicated in enhancing and participating in every aspect of air transport. In the year 2001, the Emirates Airlines made history by making an order – the largest ever – of Boeing airplanes in an undertaking that cost a whopping 9 billion USD. The airline is recorded to have carried cargo over 22.5 tons in weight and 44.5 billion passengers in the 2013/ 2014 financial year alone, with the airline yet still aspiring to increase these figures by exploring new areas/ destinations of the world. This is poised to be a great step that will inevitably take the Emirates miles ahead of the rest. The Boston Group predicts that by the end of the current decade, the Emirates Airlines shall have become the largest airline in the world (Romaithi, 2006, p. 90). 2.3 Customer Analysis and Collaborations Through a dynamic market strategy, the Emirates redirected its efforts to position its customers as globalists. The airline also came up with a multimedia program dubbed ‘Hello Tomorrow’ which endears to effectively depict the airline as a contributor to connectivity across the world and an enabler of unforgettable experiences. This program is relatively cheap but has proved to very helpful in terms of marketing the Emirates Airlines and thus enhancing its profit levels. The Emirates strategically shares joint ventures with Qantas Airways which substituted Singapore with the city of Dubai being a stop over to United Kingdom’s London. Furthermore, the company boasts more than 7 subsidiaries such as the Arabian Adventures, Congress Solution International, Emirates Holidays, Emirates Tours, and so on. In order to enhance its competitive edge, however, it is recommended that the Emirates Airlines acquire more partners in the airline industry (Cadogan, 2009, p. 365). This is one area in which the competitors such as the Etihad Airways continue to trump over the Emirates and hinder its market influence and penetration. 2.4 PEST Analysis (i) Political and Legal Environment The Emirates Airlines moved in swiftly to pen agreements with Asian Pacific nations and others more in a move that opens up trade and transport routes. These agreements have since the beginning of the new millennium been helpful in opening up the rest of the world to the Emirates. (ii) Economic Environment If a nation’s economy (such as that of the UAE) is healthy and stable, individuals do well financially and this financial capability enables the citizens to manage and take Emirates flights. A sound global economy thus promotes the operations and enhances the profit levels of the company. However, profit levels take a tumble when the prices of fuel go up. (iii) Social and Cultural Environment The employees of the Emirates are suitably and well trained to be flexible and to adapt to the social as well as cultural environments they operate. In addition, the company’s policy of according services to any person regardless of their origin, race, color, political affiliation, religion and tradition helps in attracting and maintaining a wealthy display of cultural and social diversity. In this case, this strategy enables the Emirates the capacity to have any kind of client from any part of the world. (iv) Technological Environment The world and consumers are more technologically aware. In this light, the Emirates Airlines always strives to be superior technologically and recently added a crucial arsenal (in the shape of Airbus A350-XWB, Boeing 747-8F) to aid its competitive ability technologically. In addition, in a world where environmental conservation is deep in everyone’s hearts, a company known for environmental recklessness is usually shunned. Recent technological advances have helped the Emirates enhance their facilities and fuel usage therefore considerably lowering the negative impacts of the Emirates’ operations on the global environment. Along the same wavelength, the airline uses bio fuel which is known to be safe and price friendly. This strategy enhances public acceptance and reduces the costs of operations which furthers the airlines’ cause (Phillips & Doole, 1994, p. 78). 2.5 SWOT Analysis (i) Strengths There are a couple of strengths that have enabled the Emirates to steady itself and become a main participant in the air transport industry. Its membership in the Arab Alliance, for one, earns it a competitive advantage and enormous global recognition. A strong support from the government of Dubai also enables the airline to safely secure its operations and extend them to other areas of the world. The Emirates Airlines is regarded by many as the best airline in the aviation business and several people prefer it to other airlines (which lead to higher profits as customers are retained and many more are gained). The Emirates Airlines is gifted in the art of eliciting customer loyalty. What this means is that in the end, customers do not trickle away into rival airlines as these loyalists also engage their friends, work mates and relatives and persuade them into considering Emirates’ services and flights. Apart from exceptional customer loyalty management, the Emirates is keen to employ into its ranks highly skilled and friendly staff who do their very best in the handling of customers and their property with dignity while also striving to develop game changing ideas that can enhance the wellbeing of the company. Another notable strength of the company is its wide reach. As at January 2015, the Emirates had covered about 72 countries in six continents. (ii) Weaknesses As with any other airline or business venture, the Emirates also have to deal with certain weaknesses. Chief of this is the effect of aggressive airline competition which effectively hinders market growth. Secondly, the ticket prices of the Emirates Airlines are higher compared to many other international airlines because the company uses the premium pricing strategy. This is often made worse when the costs of living become unmanageable to most people who therefore opt for cheaper options just to get from point A to point B (Jain, 2000, p. 348). thirdly, as has been previously stated, the lack of global international alliance reduces the airline’s competitive edge and visibility and is therefore a notable weakness of the Emirates Airlines. (iii) Opportunities There are immediate opportunities available to the Emirates that would amount to untold gains if well exploited. There are a lot more international destinations that the airline can still cover and establish itself in as the number one preferred airline. Secondly, to boost the confidence of customers in the airline, a brand new fleet leverage provision could be truly impactful. There is equally potential awaiting when the Emirates begins to cater also for the middle class and budget travelers and equally come up with and embrace game changing innovations (Simmonds, 1982, p. 525). (iv) Threats Threats faced by the Emirates are ever-changing while others such as enormous competition in the region of Middle East remain constant and ever-present. As already stated, oil price increments also threaten the operations and stability of the airlines with changes in government regulations, policies and regimes also always being unproductive and unpalatable at times. Apart from unstable political conditions, terrorist threats (attacks) and travel advisories often reduce the number and content of flights which hurts the seasonal income of the company. 3.0 More Marketing Strategies The Emirates Airlines plan to further penetrate the market and improve in-flight services by retaining and enhancing the market share of the of the company’s services and products, driving out competition through the restructuring of the mature markets, protecting the market dominance of the company’s current markets and enhancing the use of passengers in marketing endeavours. These approaches are cost effective yet result in huge gains by retaining existing customers and attracting many more. In addition, to attract more business people who cannot afford to be out of reach because they have to switch off electronic gadgets during flights, the Emirates have come up with a system that allows for continued communication with the outside world. Another technique of improving the number of clients is the introduction of new services into existing markets in a product development agenda. As a marketing strategy, the Emirates partake in numerous sponsorship programs of global events and sports actions, for example, the Ryder Cup and the ICC Cricket World Cup. These ventures are quite handy as they increase visibility of the company. The company is known globally by football and sports fans by sponsoring t-shirts of great teams such as Real Madrid (Madrid, Spain) and the Arsenal (London, England). In Arsenal FC, the company has further purchased the naming rights of the club’s Emirates Stadium as a sound global marketing strategy, not to forget the important tie ups with FC Barcelona (OConnell, p. 95). The Emirates Airlines use cheap marketing tools to great effect. These also include marketing via social media sites (such as on Facebook and Twitter), television advertisements and (tourism) magazines which require very little capital. The company also endears itself to its consumers and the rest of the world by frequently announcing seasonal pricing discounts and awarding privilege cards that enhance brand loyalty. Apart from high standard safety and security measures, the airline is also well respected on humanitarian grounds for its exceptional luggage services and special/ personalised assistance to disabled passengers (Peter & Olson, 1990, p. 400). The company also has a very good website rich with information that equally markets its activities well in over 9 languages and allows for online booking of flights and hotel rooms while also advertising the company’s luxurious, excellent and higher service quality. Furthermore, the airline’s over 55,000 employees from over 163 world countries significantly help market the airline across the globe by word of mouth (Andersen & Poulfelt, 2014, p. 345). 4.0 Conclusion The Emirates Airlines with its vibrant strategy of marketing and growth is set to realise better performances and growth. In the future, the Emirates Airlines will be heavy in virtually all nations of the world with their progressive ideas and innovations in technology, consumer retention, marketing, and environmental conservation. References Andersen, M., & Poulfelt, F., 2014, Beyond Strategy the Impact of Next Generation Companies, Hoboken: Taylor and Francis, 345. Cadogan, J., 2009, Marketing strategy, London: SAGE, 365. Connell, J., 2011, Air transport in the 21st century key strategic developments, Farnham, Surrey, England: Ashgate, 377. Encyclopedia of global brands (2nd ed.), 2013, Detroit: St. James Press. Ferrell, O., & Hartline, M., 2005, Marketing strategy (3rd ed.), Mason, Ohio: Thomson/South-Western, 411. Jain, S., 2000, Marketing planning & strategy (6th ed.), Cincinnati, Ohio: South-Western College Pub, 348. Namaki, M., 2008, Strategy and entrepreneurship in Arab countries, Basingstoke [England: Palgrave Macmillan, 469. OConnell, J., n.d, The Changing Dynamics Of The Arab Gulf Based Airlines And An Investigation Into The Strategies That Are Making Emirates Into A Global Challenger, World Review of Intermodal Transportation Research, 94-94. Peter, J., & Olson, J., 1990, Consumer behavior and marketing strategy (2nd ed.), Homewood, IL: Irwin, 400. Phillips, C., & Doole, I., 1994, International marketing strategy: Analysis, development, and implementation, London: Routledge, 78. Pryke, R., 1987, Competition among international airlines, Aldershot: Gower for the Trade Policy Research Centre, London, 124. Romaithi, S., 2006, An airline ab initio flight training program in the United Arab Emirates (UAE): An analytical approach toward Emiratisation, 90. Simmonds, K., 1982, Strategy & marketing: A case approach, Oxford [Oxfordshire: P. Allan. Thompson, R., 2013, A celebration of Dubai aviation, Dubai, UAE: MEED, 525. Walker, O., 2003, Marketing strategy: A decision-focused approach (4th ed.), Boston: McGraw-Hill/Irwin, 225. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(International Marketing for Travel & Tourism Literature review, n.d.)
International Marketing for Travel & Tourism Literature review. https://studentshare.org/marketing/1865275-international-marketing-for-travel-tourism
(International Marketing for Travel & Tourism Literature Review)
International Marketing for Travel & Tourism Literature Review. https://studentshare.org/marketing/1865275-international-marketing-for-travel-tourism.
“International Marketing for Travel & Tourism Literature Review”. https://studentshare.org/marketing/1865275-international-marketing-for-travel-tourism.
  • Cited: 0 times

CHECK THESE SAMPLES OF International Marketing for Travel & Tourism

Strategic Marketing Plan

his report presents a marketing plan aimed at resuming tourism in the valley of Swat located in Pakistan.... … Strategic Marketing Plan Resuming tourism in Swat Valley (Pakistan) [Student Name] [Course Title] [Instructor Name] [Date] Executive Summary This report presents a marketing plan aimed at resuming tourism in the valley of Swat located in Pakistan.... In order to resume tourism in the valley after the removal of terrorists hold, this report presents a three year long marketing strategy which is categorized into three phases....
15 Pages (3750 words) Essay

Understanding and Developing the Role of Tourism in the Economy of Maldives

This paper examines the role of tourism in the economy of Maldives in order to recommend specific programs that promote sustainable development.... After this, an intensive look at the economy of Maldives is done by crucially studying its top three sectors: tourism, construction, and fisheries.... This paper examines the role of tourism in the economy of Maldives in order to recommend specific programs that promote sustainable development.... After this, an intensive look at the economy of Maldives is done by crucially studying its top three sectors: tourism, construction, and fisheries....
12 Pages (3000 words) Essay

The Role of Marketing Research in International Tourism

Name Institution Instructor Course Date International tourism Marketing Abstract tourism involves travelling for business, recreational, and leisure purposes.... According to the World tourism Organization, tourists are people who travel and subsequently stay in places that are outside their usual environment for a period not more than twelve consecutive months for purposes related to business, leisure, and recreation among others.... hellip; Today, tourism is a populous global leisure activity (Akehurst, 2009:51)....
16 Pages (4000 words) Essay

Destination Marketing in Vietnam

hellip; DM also goes further to manage this tourism brand and strategize on cooperative marketing initiatives that can spur tourism sector growth.... This report finds that destination marketing in Vietnam is conducted by government authorities with support from the private sector; this is a challenge to marketing as strict government regulation hinders private sector participation in overall tourism development.... Vietnam marketers are also concentrated in promoting Vietnam as a cultural destination rather than focusing on other products like sports and eco-tourism which has gained much attention in the recent years....
17 Pages (4250 words) Essay

Analysis of Japanese Tourist Demand to Guam

this paper makes some analysis of Japanese Tourist demand to Guam and a case study of China and tourism Development.... his essay makes a conclusion that tourism today is considered as a part of international trade and is often compared with exports that an economy is involved in.... This is because tourism results to an accumulation of foreign exchange reserves within a nation thus propping it up to participate in other economic activities....
8 Pages (2000 words) Essay

Consumer behaviour in tourism

The present paper “Consumer behaviour in tourism” discusses the transition between dependence of tourists upon tourism operators and the growing demand for independent and customised travel.... Development of the tourism sector had been initiated by war stricken nations to recuperate their economies.... hellip; The paper discussed the current challenges being faced by tourism operators after the influx of contemporary tourists within the tourism industry....
13 Pages (3250 words) Essay

Travel and Tourism Motivation

Marketing in Travel and tourism Impact of Marketing Environment on Thomson In tourism and Travelling sector there are many concepts of marketing that are considered to ensure that customer's needs, stated or otherwise are perfectly met.... Travel and tourism Motivation Various studies have dealt with tourist motivations and market segmentation showing that the factors that motivate tourists for leisure travel and tourism can be classified into two types that is the “push” and “pull” factors (Mehmet 2011, p....
14 Pages (3500 words) Essay

TOURISM MARKETING

Online communication has been a reliable mode of communication for travel and tourism sector.... nline communication has been a reliable mode of communication for travel and tourism sector.... he tourism industry depends on the online communication to market various organizations and provide resourceful information to tourists… Impacts of Online Communication and Social Media on Travel and tourism Marketing.... The tourism industry depends on the online communication to market various organizations and provide resourceful information to tourists....
4 Pages (1000 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us