European Tour Operators
External Analysis European Tour Operators
European Tourism Industry
Tourism plays a key role in the economy of the European Union. This sector contributes 5% to the gross domestic product of Europe. The European tourism industry consists of 1.8 million enterprises and these enterprises employee almost 5.2% of the total workforce of the European Union. The tourism industry of the European Union consists of a wide variety of products and a large number of stakeholders that are dispersed geographically.(The European Commission, 2010, pp. 1-91)
Apart from the domestic competitiveness the European tourism industry is a key player in the global tourism market as well. (The European Commission, 2010, pp. 1-91) The graph below demonstrates the share of the European tourism industry in the global tourism market;
(The European Commission, 2010, pp. 1-91)
As evident from the above chart, the European tourism industry captures eighty percent of the global tourism sector, therefore, it can be concluded that this sector of the European economy is a key player in not only the development of European economy but also the international tourism industry as well. (The European Commission, 2010, pp. 1-91)
PESTEL Analysis
The European industry confronts a number of political, economic, social, technological, environmental and legal factors that can impact its performance in an influential manner. All of these factors are discussed below;
Political Factors
The political factors that can affect the performance of the European tourism industry include;
The European government has proposed to increase the tax in relation to the tourism industry from 5% to 10%. The industry is currently trying to urge the government to abandon this proposal as this would make Europe the highest taxed tourism destination and will have a negative impact on the performance of the tourism industry.(Key Note Limited, 2013)
A positive political factor for the tourism industry is the proposal of the European commission that bans the illegal practices of the airlines in relation to airline fares as most of the airlines do not disclose their real price to the customers and the customers end up paying more than the disclosed prices at the last moment. This practice of the airlines does not enable the customer to compare the actual prices.(Key Note Limited, 2013)
Economic Factors
The important economic factors in relation to the tourism industry include;
The proposals of a committee of MPs to increase the taxes in air travel so that the green house gas emissions can be reduced can have a negative impact on the tourism industry.(Key Note Limited, 2013)
The breakup of a consumer protection scheme under ATOL can lead towards an increase in company failures and number of frauds and can have a negative impact on the performance of the tourism industry.(Key Note Limited, 2013)
The 2012 Olympics can have positive long-term impacts on the European tourism industry. As this trend was visible in most of the Olympic hosts, such as Australia, who suffered from a decrease in tourism in the beginning but saw a sharp increase in tourism in the long-term.(Key Note Limited, 2013)
Social Factors
The social factors that the European tourism industry confronts include;
The European Union comprises of about 10 million disabled people who have a combined income of more than 50 billion pounds. The tourism industry is taking initiatives to attract these people to the industry and to increase its customer base.(Key Note Limited, 2013)
The industry has also established a strong an appropriate intranet that enables the consultants and other concerned people to work from their homes and maintain an effective balance between their work and family lives.(Key Note Limited, 2013)
Technological Factors
The technological challenges and facts in relation to European tourism industry are mentioned below;
Technology has become one of the strongest weapons of the tourism industry but as technology becomes obsolete quickly, therefore, the industry has to go through a structural change during the past decade.(Key Note Limited, 2013)
The hotel sector has followed the trail of the airline industry and has established a system of online check-ins for the convenience of the customers.(Key Note Limited, 2013)
With the advancements in technology the dynamic packaging concept has also evolved which fulfills the desires of consumers in relation to flexibility and convenience in travel packages.(Key Note Limited, 2013)
Legal Factors
The legal issues that can influence the performance of the European industry are discussed below;
The major legal factors that may affect the performance of the European tourism industry include; the wider reform of the European aviation low, the demolishment of the European appeal court and the concerns that prevail in relation holiday protection confusion in the European Union.(The European Commission, 2009, pp. 69-73)
Environmental...
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