P3 Report on how travel and tourism organisations
gain competitive advantage to achieve business aims
Financial
In order to gain a competitive advantage, travel and tourism organisations set
themselves fnancial aims. The main objectives are to increase their revenue and
make a proft or their owners and any shareholders they may have. To increase
their revenue the company will have to attract as many customers as possible
and encourage them to spend money which can be done by discounts and
advertisements. An example is Ryanair – their managers try to maximise their
revenue through extra seat sales and selling ancillary products such as; travel
tickets, snacks, drinks and gi ts on board their airplane. Meanwhile, Ryanair
attempt to minimise their costs by working with airports that charge cheaper
landing ees, buying uel when prices are low and keeping staf members to a
minimum. Ryanair also provides new and innovative products, such as allocated
seating; relaxed the hand luggage restrictions compared to other airlines and
reduced charges. A company like Frankie’s and Benny’s can also gain a
competitive advantage by providing added value, or example they provide the
children with ree balloons and i its someone’s birthday they will sing to them,
customers are more likely go here than to a very similar place who doesn’t do
these things because they provide excellent customer service. Innovative pricing
policies are yet another way o gaining a competitive advantage against other
companies because price is o ten the most important thing to consider when
people are choosing travel and tourism products and services. Organisations
such as Thomas Cook and national trust use price as a way o encouraging sales,
e.g. they ofer deals such as 3 weeks or the price o 2 on package holidays, they
also ofer discounts on the cost o fights when holidays are nearly booked out
and they also ofer cheaper offpeak rail ares. Pricing policies are always
developed to increase income, but not at the expense o the business loosing
revenue in the long term. Another example is national trust who sell annual
memberships which are paid up ront and allow members to visit any location
that the national trust own throughout the whole year.
Image
Another way travel and tourism organisations gain a competitive advantage is
through their public image, i a company is well known or being environmentally
riendly or is involved in responsible tourism they have a huge competitive
advantage because they are doing things morally and economically correct. For
example National Trust are a non or proft organisation, however the money
they earn gets spent on maintaining the environment which includes parks and
historical buildings which are important to the British heritage. Recently more
airlines are lowering emissions to decrease pollution which is also
environmentally riendly. Furthermore Hotels will contribute in responsible
tourism by purchasing organic products rom local arms, this is putting money
back into the economy to help improve it, and companies usually spread their
word on responsible tourism and being environmentally riendly through
gain competitive advantage to achieve business aims
Financial
In order to gain a competitive advantage, travel and tourism organisations set
themselves fnancial aims. The main objectives are to increase their revenue and
make a proft or their owners and any shareholders they may have. To increase
their revenue the company will have to attract as many customers as possible
and encourage them to spend money which can be done by discounts and
advertisements. An example is Ryanair – their managers try to maximise their
revenue through extra seat sales and selling ancillary products such as; travel
tickets, snacks, drinks and gi ts on board their airplane. Meanwhile, Ryanair
attempt to minimise their costs by working with airports that charge cheaper
landing ees, buying uel when prices are low and keeping staf members to a
minimum. Ryanair also provides new and innovative products, such as allocated
seating; relaxed the hand luggage restrictions compared to other airlines and
reduced charges. A company like Frankie’s and Benny’s can also gain a
competitive advantage by providing added value, or example they provide the
children with ree balloons and i its someone’s birthday they will sing to them,
customers are more likely go here than to a very similar place who doesn’t do
these things because they provide excellent customer service. Innovative pricing
policies are yet another way o gaining a competitive advantage against other
companies because price is o ten the most important thing to consider when
people are choosing travel and tourism products and services. Organisations
such as Thomas Cook and national trust use price as a way o encouraging sales,
e.g. they ofer deals such as 3 weeks or the price o 2 on package holidays, they
also ofer discounts on the cost o fights when holidays are nearly booked out
and they also ofer cheaper offpeak rail ares. Pricing policies are always
developed to increase income, but not at the expense o the business loosing
revenue in the long term. Another example is national trust who sell annual
memberships which are paid up ront and allow members to visit any location
that the national trust own throughout the whole year.
Image
Another way travel and tourism organisations gain a competitive advantage is
through their public image, i a company is well known or being environmentally
riendly or is involved in responsible tourism they have a huge competitive
advantage because they are doing things morally and economically correct. For
example National Trust are a non or proft organisation, however the money
they earn gets spent on maintaining the environment which includes parks and
historical buildings which are important to the British heritage. Recently more
airlines are lowering emissions to decrease pollution which is also
environmentally riendly. Furthermore Hotels will contribute in responsible
tourism by purchasing organic products rom local arms, this is putting money
back into the economy to help improve it, and companies usually spread their
word on responsible tourism and being environmentally riendly through
