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CHAPTER 1 - INTRODUCTION - Coggle Diagram
CHAPTER 1 - INTRODUCTION
1.1 MEANING AND CONCEPT OF TRAVEL BUSINESS
Travel business is an economic activity, which is related with continuous and regular buying and selling of travel related service for satisfying human wants
Travel industry has been agreed as a service industry
In tourism, service is anything which is provided to the traveler to travel, stay and involve in tourism activity
Travel has fascinated human beings throughout the ages
During the past time travel was there but "tourism" was not
Because travel was not undertaken for the purpose of pleasure and their motive was not to seek holiday from the daily routine works
When people learned to differentiate between work and leisure then tourism started
Tourism is related to broader economic and social issues including commodification and globalization of culture,.......
Tourism is regarded as experience industry where travel experience is sold as commodity
Tourism is related to travel, stay and involvement of people in tourism activities
Their travel and stay need to generate economy and economy is generated by service
Only travel business are able to involve in motivating travelers to travel, organize travel formalities, and provide travel related services and they can sale tour
Travel business is a complex concept as the industry includes many activities. It is also complex due to various sub-sectors of the tourist products
Tourism is a single industry but it is made of different industries. Each one of them provides individual product or they combine together to provide travel experience
Any visit to a touism destination comprises a mix of several components of different organizations.A traveler may buy all the travel components from a commercial supplier
The buying and selling of all such travel related services constitute travel business
1.2 EVOLUTION OF TRAVEL BUSSINESS IN THE WORLD
Some developments in the world
In 1670, the Grand Tour concept was developed especially for educational purposes. Another major development took place in the year 1730. Health experts suggested that sea water is found to be useful to cure many diseases
In 1815, steamboat services were introduced from London to Gravesend. One effect of this development was the construction in all major resorts of a pier to accommodate the vessels on their arrival
In 1820, European culture centers were opened to British travelers .The rail link was introduced between Liverpool and Manchester in 1830
In 1830, Peninsular and Oriental (P&O) Steam Company introduced steamship services to India and Far East
The 2008, marks the 250th anniversary of Cox & Kings, the longest established travel company in the world
Thomas Cook
Thomas Cook Achivements
Tour operator
In 1869, John Mason Cook organized the first tour to Palestine and Egypt
Cook's company has 120 branches across the UK and in nearly all major European cities, North America, Near Southeast and Southeast Asia, and Australia.
186 hotels and resorts all around the world
The rise of Thomas Cook Hotels & Resorts as they enter the top 50 countdown of the worlds largest hotel companies
Entering at number 44 is incredible and also shines a light on Thomas Cook's position within the top 5 sun and beach hotel companies in Europe
Publishing
Launched the world's first travel magazine - The Excursionist
Finance
Provides financial service to 4.500 financial institutions
Insurance
Wide range of Travel Insurance Plans from USD 50k to 5 lacs
Customized Senior Citizen and Asia Specific Plan
Affordable Plans with Cashless facility and No Sub-limits
Compensation for loss of luggage and passport
Culture (Three Customer Promises)
Quality
Service
Reliability
Values
Put our heart into it
Wear their flip flops
We are one Thomas Cook
Applied Business Strategies
Cost leadership strategy
High capacity itilization of the aircraft
High bargaining power over suppliers and subsequent economics of scale
Low operating costs through standardization and high-volume sales
Losing its attraction within mature markets
Focus strategy
Purchasing small operators to provide niche products
Own and operate a number of activity-based companies that target specific segments of the market
Product development strategy
Co-oporate with Germania, Sun Express and Air Via to offer additional capacity on flights
Diversification strategy
Tour operator (including Own brand hotes)
Froup airline (Condor airlines, Thomas Cook airlines)
Insurance
Finance
Publishing (Guide books)
Horizontal integration
In 2007, Thomas Cook and My Travel have agreed to combine
Thomas Cook own specialist holiday companies
Vertical Integration
Merges with another component at a different level within the chain of distribution
Diagonal Integration (Enter into a related service)
Offers tour, flight, accommodation, shuttle service which can be purchased at the same time as the holiday package
Defensive Strategies
Retrenchmen
In 2011, Winter airline capacity is being cut, with the number of aircarf reduced from 41 to 35
In 2013, Thomas Cook slashed 2.500 jobs and unveiled plans to close nearly 200 high street travel agents
Divestiture
In 2015, Chinese group - Fosun bought its first stake in Thomas Cook
Thomas Cook's lending banks and bondholders will stump up a further 450 pounds and convert their existing debt to equity
Liquitlation
On 23 September 2019, Thomas Cook Group ceased trading and entered liquidation
1.3 ROLE OF TOURISM AND TRAVEL ORGANIZATIONS
United Nations World Tourism Organzation - UNWTO
Universal Federation of Travel Agent Association - UFTTA
World Association of Travel Agencies - WATA
Pacific Asia Travel Association - PATA
Asean Travel Association . ASEAN - TA
1.4 INTERNATIONAL TOs
Thomson
TUI
MED Club
American express company
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