Feedback comments (Situation analysis)
This is a very poor research effort. Slideshare, BPlans and MPlans are NOT credible academic sources AND SHOULD NOT BE USED WHEN PREPARING YOUR MARKETING PLAN. Moreover, your marketing plan must be about a new fictitious travel agency (Michelle’s Travel) in Canberra. It should not be about an existing network of travel agencies known as Travellers’ Choice.
< Situation analysis >
This Situation analysis is about the travel industry – Topic 4
Travellers Choice is the best of travel agency in Australia. This company proves the financial compensations in reference to supporting and shareholding. Moreover, this company gives considerable thought to independent travel agents. Traveller Choice can be distinguishable from others through personalized approach for customers. In other words, they focus on the needs of their members. For all these reasons, their slogan has been coined. The symbol of Travellers Choice is “Champion of quality independent travel agents in Australia” (Travellers Choice n.d.).
The purpose of the Situation Analysis is Travellers Choice has a lot of strengths in SWOT analysis. It is about the travelling industry in Canberra. The Travellers Choice has several competitors such as Corporate Traveller, HRG Australia, Travelscene Canberra City and Student Flights Canberra. This travel agency is in a good position because there are already many people living on the ACT and transportation is convenient around this area. Market segmentations of Traveller Choice are people and businesses such as preferred self-indulgence.
Travellers Choice is located in Canberra, ACT, 2601 (TrueLocal n.d.). This company has huge network over 150 travel agents associated with shareholders of this company and is situated in Australia’s capital cities, metropolitan areas and local areas (Travellers Choice n.d.). It shows us how big the industry size of Travellers Choice really is.
I think one of the success factors is personalized service. According to Travellers Choice, they have contributed to provide perfect personalized service and outstanding value for Australian tourists (Travellers Choice n.d.). The other reason is that they have special industry which is cruise industry (Travellers Choice n.d.). If you are member of Cruise Lines International Association (CLIA), you will get considerable satisfaction. I think this industry has competitiveness more than other companies. The Travellers Choice is always trying to improve their company and they are confident about customers’ experiences. They promise to understand travelers mind and passion for the trip.
Trends in the industry
According to Travellers Choice 2014 Annual Report, this company got a lot of profit from last year. The revenue was $4,690,534 in 2014 and gross profit was $3,498,827. Statistically speaking, the profit for the year is $1,606,601 in 2014. However, the profit of 2013 was $1,203,835. In the last analysis, Traveller Choice reaped tremendous benefits. In 2014, cash at beginning of financial year was $887,345. This figure is cash of 2013 at the end of the year. Cash at end of year was $1,494,630. It was mush of the profit difference (Travellers Choice, 2014).
The travel industry is growing in the market. There are two reasons about growth mode of travel industry. Firstly, the devaluation of currency and domestic economy had lower costs. Pleasure boat travel has risen by 3.2% in 1999. This travel is increased by 2.0% in 2000. Lastly, the economy has grown business travel 4.8% in 1999 and 3.6% in 2000 (Mplans n.d.).
Factors of uncontrollable environment
? Political forces
Companies will have massive taxation. Government supports in travel industry (Amit 2012).
? Economic forces
There is foreign exchange rate. Economically, the important thing is elasticity of demand (Amit 2012).
? Sociocultural forces
Most customers are different cultures and languages. Company employees should esteem their clients like keeping smile. Company makes amusing activities for all of customers (Amit 2012).
? Technological forces
All the people use web site and internet so companies manage to make easily for the people. Travel agencies make online booking (Amit 2012).
? Environmental forces
Most travel agencies should provide a suitable environment.
? Legal forces
Companies must set up the perfect insurance system for safety of customers. Government make insurance policy.
The competitors of Travellers Choice are Corporate Traveller, HRG Australia, Travelscene Canberra City and Student Flights Canberra. These travel enterprises are the Top 5 of travel agency in Australia. These companies are in different places around the country. I think company’s size is similar each other because it is the best known companies in Canberra.
? Travellers Choice
It is located in Canberra, ACT, 2601.
? Corporate Traveller
It is located in 10 Moore Street, Canberra, ACT, 2601.
? HRG Australia
It is located in Unit 2, 11 McKay La, Turner, ACT, 2612.
? Travelscene Canberra City
It is located in LG Floor, Ethos House, 28- 36 Ainslie Avenue, Canberra City, ACT, 2601.
? Student Flights Canberra
It is located in 59 Northbourne Avenue, Canberra, ACT, 2600.
The competitive advantage of Travellers Choice is independent travel agents because they focus on their customers. The Travellers Choice says “Our understanding and passion for travel ensures our customers have the travel experience they want” (Travellers Choice n.d.).
• Great employees who are very well trained and friendly to customers
• Adapt to meet their customer needs for perfect travel plan
• Combination of abilities in staff for improving business strategy
• Effectiveness of advertising
• Satisfaction of excellent trips Weaknesses
• Lack of new ideas for attractive trip plans
• Travel industry is not connected with the government.
• Staff can be tired of repetitive jobs.
• A lot of young professionals in the market
• The chance to have great value result from increasing number of offered trips.
• The chance to make trustworthy public transportation company to take travelers
• Increasing a hankering to travel more than before Threats
• Travel industry is influenced by worldwide economic downturn
• Many rival companies
• If company make new program about travel some old people can hate. Moreover, company can lose old clients.
• While company is looking for appropriate costs for customers, they can cause serious economic losses.
Most people are desire to have a trip for their rest or healing. Some people go to the travel without difficulty, while others cannot have easily. I will explain target markets of travel industry through some evidence.
? People on a high income
These people have always enough money with an average income more than $75,000 because they do many things in their company. Therefore, they will pay a lot of money to have their perfect relaxation when they not work (Mplans n.d.).
? Children such as ‘trustafarians’
Trustafarians means that young people do not know about the difficulties of money because of their wealthy parents. These young people prefer to play in the outdoors or physical activities. Their parents will support all of activities money (Mplans n.d.).
? People who are interested in travelling
I think this group of people does not need a lot of money because they love only travelling. If they do not have money then they will get a part time job during the trip. These days, a large of young people goes backpacking.
In conclusion, many people will come constantly with this Travelles Choice due to people really want to have perfect vacation and excellent trip plan.
Trends in consumer/clients behaviors
According to 2014 Consumer Trends, there are three questions within the Travel Weekly Consumer Trends survey. It includes:
1) How many trips are taken annually by agency clients vs. other travelers?
2) What is the average length of a trip sold by advisers vs. other distribution channels?
3) What is the average daily spend of traveling consumers who were counseled by professionals vs. those who did not get professional advice?
From this survey, we could know that people who travelled in succession pay their expenses more than others. They will get great partners by suppliers. Moreover, if they are valued as partners, they will value and respect suppliers (Arnie 2014).
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Travellers Choice 2013, Welcome to Travellers Choice, Canberra, viewed 10 April 2015, <http://www.travellerschoice.com.au/cproot/4111/2/PMK_Oct2013.pdf>
Travellers Choice 2014, ANNUAL REPORT 2014, Canberra, viewed 10 April 2015, <http://www.travellerschoice.com.au/cproot/5540/2/Travellers%20Choice%20Ltd%202014%20Annual%20Report%20-%20WEB.pdf>