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Tour Operators

 Tour Operators Dissertation

CASE STUDY

Euro Tour Operators: facing competition in the tourism industry Eric Viardot

European tour guides have were able to achieve a solid position in the tourism sector. Most notably both the biggest kinds, TUI Travelling and Jones Cook have got a large market share. However , in the latter part of the decade (2007–10) the industry offers experienced a downturn because of the turbulent environment which has made new threats and revised the competitive forces. ● ● ●

The travel and leisure industry seeing that 2000

At the end of 08, the tourism industry was obviously a major market. Worldwide that generated US$5474 billion (x4023bn or £3665bn) of financial activity, displayed 9. 4 per cent of total globe GDP and provided 219. 8 , 000, 000 jobs (7. 6 every cent) of total employment. i The 2nd half of the twentieth century had seen a constant growth of the tourism sector. If the business had slowed in 2001– 03 next terrorist disorders in New york city, Djerba and Bali, completely bounced backside. In 2007, for the first time ever, the amount of international visitor arrivals noted worldwide exceeded 900 , 000, 000, according to the Universe Tourism Organisation (UNWTO), a specialised company of the United Nations (UN) for tourism plan, as illustrated in Number 1 . Nevertheless , the global overall economy starting in September 2008 and getting more serious throughout 2009 had helped bring the business into a halt, having a general slowdown of activities, massive lack of employment, and a major credit crunch intended for consumers.

Competition: a continuing debt consolidation in the Western european tourism market Over the ten years from 1998 to 2008, the competitive landscape with the tour operator industry changed significantly as the marketplace experienced a relentless concentration in the players. Fashionable had been accelerated in 3 years ago with the purchase of MyTravel, the amount 3 Euro Tour Operator by Thomas Prepare, the number 2, on February 2007. One month later TUI announced it is acquisition and merger with First Choice, the п¬Ѓfth biggest tour operator and number 2 in britain. Those two moves substantially decreased the amount of players in addition to 2008 the combined revenues of the two biggest tour operators were three times higher than the three following competition, while in 2005 it absolutely was less than two times as high (see Table 1).

TUI Travel Plc

Last season, TUI Travel around Plc was the biggest tour operator in The european countries. A tour operator (also known as tour wholesaler) offered manufactured or ‘all inclusive' pre-paid and preplanned holidays to its customers, usually through travel agents. It was a pre-assembly of fundamental travel pieces sold for a fixed value. A standard bundle was consists of air transport (outbound and return), hotel accommodation, moves from the air-port to the resort and back, as well as optional items including insurance, foods, excursions, and so forth The flights (usually charters) left and returned on given times; the life long the stay was fixed. This type of

Number 1 Foreign tourist landings

Source: UNWTO, June 2009.

This case was prepared by Eric Viardot, Professor of Technique at the EADA Business College in Barcelona. It is intended as a basis for discussion in the classroom and not as an illustration of good or bad practice. В© Eric Viardot 2010. Not to always be reproduced or perhaps quoted devoid of permission.

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EUROPEAN TOUR OPERATORS

Table you Tour operators business (MS) and revenues in Europe in 2005 and 2008 MS Revenues 08 2008 (%) (ebn) TUI Thomas Prepare food REWE Kuoni Club Mediterranean Total industry 18. 6th 13. on the lookout for 5. 1 3. some 2 . you 15. 6 11. 7 4. three or more 2 . almost 8 1 . six 84. zero TUI Thomas Cook MyTravel REWE Highly recommended Kuoni Golf club Med Iberostar Altour Hotelplan Total industry MS june 2006 (%) twenty one 13 almost 8 8 6 4 5 4 a couple of 2 Profits 2005 (ebn) 16. zero 7. almost 8 4. eight 4. almost 8 3. 6th 2 . 5 2 . 4 2 . four 1 . a couple of 1 . a couple of 60. 0

Sources: TUI LTC Gross annual Reports.

vacation offered security and value for money for the vacationer since tour operators were able to get extremely good prices in comparison to a Diy holiday. Certainly, tour operators had managed to industrialise and standardise the...

Sources: i WTTC, www.wttc.org/eng/Tourism_Research/Tourism_Economic_ Study Tourism. ii Hotels Magazine, 25 06 2009, www.hotelsmag.com/article/CA6667503.html.

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