D3 Responses of Travel & Tourism Organisations to External & Internal Factors
What is Competitive pricing?
A marketing strategy whereby businesses set prices based on their competitors prices.
Advantages of competitive pricing
1. Customer satisfaction
2. A greater profit margin
3. Easy to use
Disadvantages of competitive pricing
1. Can be inaccurate
2. You can lose potential customers
3. May have to descrease your selling price
What is Diversification?
Investing across a range of different companies, assets.
Advantages of Diversification
1. Growth stragery
2. lower risk when investing as your spreading your money within different places.
3. Attract new customers
Disadvantages of Diversification
1. Increasing costs
2. Increasing complexity
3. Losing focus on main brand
4. More competition
What is Specialisation?
Focusing on one product/ limited scope of products
advantages of specialisation
1. Employees become expert due to specific task
2. Higher profit potential
3. Job security for employees due to specialised skills
4.Brand identity
disadvantages of specialisation
1. Increased bordem
2. Changing tastes for customers
3. Dissatisfied
What are Alliances?
Relationship in which people/businesses agree to work together
advantages of Alliances
1. Earn new customers
2. Expand business opportunities
3. Gain new resources
Disadvantages of alliances
1. Communication challeneges
2. Conflicts of interest
3. Shared profits
What is integration?
occurs when one company owns/controls more than one part of distribution process.
Why is integration important?
Provides strategic alliances through merging, co operation.
Lead to more efficiency and profits.
What is regeneration?
Accepting princeaples which emphasize minimising waste and maximising use of resources.
What is a surcharge?
An extra payment of money in addition to the usual payment for something e.g a company increasing costs due to increased government tax.
What is crisis managment?
Organazations process for identifying and responding to a critical event.
Aim of the Major Incident Plan.
To ensure a timely and appropriate response to a critical or major incident.
examples of security measures
1. X-ray machines
2. Metal detectors
3. Drug testors
Examples of updated technology in airports
1. self-service check in desks
2. Online booking for car hire