Tourism and Hospitality Promotion Essay Example | Topics and Well Written Essays - 1000 words

Tourism and Hospitality Promotion - Essay ExampleEasyjet follows certain value systems for the purpose of objective displace strategy. This includes designing and maintaining the highest safety standards for its customers, breaking the shackles of traditional methods of thinking and find innovative ways and means to attract new customers, providing services that transcend the expectations of the travelers, converting newer customers into long margin customers by providing customer satisfaction and best service possible, focusing on a double-digit growth rate in future years, enhancing capacity utilization, reducing hardened cost, providing the highest quality resorts thereby helping the customers to gain the best experience possible which will in turn bring profits. (About easy fount, n.d.) PEST Analysis of Easy Jet Political-legal factors The Political legal factors affecting the Easyjet include the political unrest and war signal in the Middle East. The Air Miles scheme is not r ecognized by the government as taxable perk in the same ways as tax is levied on company cars, which may help the Easyjet to contend on the same base with that of British Airlines. Engagement with the EU market gives them the widest network access. Economic factors Increasing fuel costs, legal and environmental regulations and possibility of higher credentials along with insurance costs increases the risk for terrorism. Globalization helps the traffic to grow in longer term, the introduction of a single currency helps in boosting the calling with the whole of Europe getting integrated. Socio-cultural factors General reluctance in using credit cards seems to be the concern for attracting French and German travelers. Customers being to a greater extent comfortable with cheaper flights get angry when they have to pay a premium to actual cost for a particular time of flying. Technological dilutes The major issue is how much the application of Internet has synergized the cost and dist ribution resulted from integration of the industry causing reduction in the upward rise in price. (Geiger, Schlottke & Schrade 2009) Porters model Bargaining Power of Suppliers Only two suppliers Airbus and Boeing provide aircrafts and face stiff ambition. This helps the Easyjet to buy aircrafts at cheaper price. However the switching cost to another supplier is also very high. Bargaining power of customers The price bargaining power of the customers is very high for Easyjet. With so many other LCCs in the market it becomes definitive for Easyjet to provide economical price to retain customers. Threat of New Entrants There is a huge capital investment required upfront in the skyway industry. Moreover higher efficiency is required to maintain sustainability. Moreover with so much air carriers, the introduction of a new one creates high competition facilitating price war. Threat of Substitutes The main objective for Low cost Airlines includes faster and cheaper travel. Moreover th e whole of Europe is connected with well-networked extensive train system, which provides transportation at a cheaper cost. So there is a definite threat for Easy jet in this regard. Rivalry among competitors Easy jet faces huge competition among its competitors, as there is an intense competition to maintain cheaper airfare and providing better customer services. (Geiger, Schlottke & Schrade, 2009, pp. 2-4) SWOT Analysis SWOT Team (2007) Strength The overall cost-leadership model, the