2. Influences On Uk Based Consumers Flashcards
Emerging economies as holiday destinations
China is a fast growing destination
More assessable due to ; ehanced visa facilitation and more affordable to get to due to as more efficient aircrafts.
Allows businesses to expand by offering holidays in these destinations
Differences in culture, tastes and language
In depth reasearch will be required
Responsible tourism = economic social and environmental responsibility
Guidelines are widely accepted amongst travel industry and are becoming increasingly important amongst customers when making holiday choice
The declaration seeks to maximise positive impact to minimise negative, complience with all relevent international and national standards laws and regulations is assumed. Responsibility
About doing more than minimum
Pg 15
How responsible toursim impact holiday operators
Welfare of animals
Thomas cook has committed to removing animal excursions such as elephant rides and swimming with dolphins
People view on responsible tourism
70% of people believe travel companies should ensure their holidays help the local people and economy
45% of people consider sustainability to be important when booking a holiday
Advantages of having a reputation for responsible tourism
Attract and retain good staff
Raise finance
Pursue plans for expansion -reduce local opposition
Online booking
Tour operation are taking the opportunity to earn greater profits by selling directly to customers from own websites skipping intermediaries and therefore not paying travel agent fees meaning higher profits or offer lower prices increasing sales
If selling direct more close contact and can respond faster to changing customer requirements could be crucial in maintaining competitive advantage
Rise of social media
20% of customers inspired to book a holiday after reviwing friends soical media channels
Leasing
Optain the use of an asset by renting it for an agreed period of time.
40% of areoplanes are currently on lease
Adv
Less capital required upfront than buying outright
Could free up reaposibilty of repairing aircraft
Dis
Cost more in long term than buying outright
Tied to lease for certain period of time
Falling value of the pound
Staycations rise
Cut back on spending abroad
More expensive for uk based hotel chain to expand overseas
Inflation
Increase uncertainty
Increase administration menu costs- price list
reduction in profit if in competative market and cant pass cost increases on to customers
Pressure to increase wage
Less income to spend on holidays unless wage rises inline with income.
Higher interest rates effecting holidays
Increasing interest rates increases cost to borrow this could reduce demand of holidays for uk consumers
Also more expensive for businesses who need bank loans
Legislation affect holiday indusrty
Taking holiday in term time
Parents can be fined £60 by local council if take child on holiday during term time without schools permission
Lead to seasonal sale
May hire temporary workers to cope with demand
Impact on demand of holidays
Weatherjj
Interest rates
Inflation
Economic uncertainty- brexit = negative effect on gExternal shocks - place percieved or unsafe
Higher interest rates effecting holidays
Increasing interest rates increases cost to borrow this could reduce demand of holidays for uk consumers
Also more expensive for businesses who need bank loans
