Environmental Factors Affecting Tour Operators

Improved Essays
1. Current environmental/landscape analysis
Environmental factors can have an impact on tour operator businesses in the UK and European market. Thomas Cook, a British international travel company is, therefore, affected by an external environment in the similar market. The most significant factors can be identified using a well-known market research method called PESTE. PESTE analysis reveals three main environmental factors that significantly affect the tour operators, which are economic, social, and technology.

● Economic
Tour operator businesses are greatly affected by economic circumstances. Economic growth, inflation and income affect customer’s spending power and decisions on whether to purchase tour packages. Therefore, changes in
…show more content…
New technological advances, such as the internet and airline innovations, are major challenges that tour operators must face.
The internet has vigorously changed the nature of making travel arrangements. As it allows tour operators to globally communicate with their target market and establish a relationship with customers online. However, the internet has also negatively affected tour operators by providing a new method of purchasing tradition. To elaborate, the internet allows travelers to access information from several websites, so they can quickly compare prices and products offered from different providers. This leads a lot of travelers to arrange their own trips, rather than look for traditional tour packages offered by tour operators.
Technological advances in the airline industry have led to the rise of low-cost airlines and made it more affordable for travelers. These low-cost airlines have become competitors to charter airlines offered by the tour operators, e.g. Thomsonfly, Thomas Cook, and Monarch. Some low-cost flights also offer accommodation and ground transportation packages, which facilitate customers to travel by themselves and neglect tour packages offered by tour

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