Consultancy report

Consultancy report for the company scenario 1

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Table of Contents
Introduction................................................................................................................................3

Brief information about the company........................................................................................4

Brief summary of the scenario...................................................................................................4

Identification of potential segments/ target market....................................................................5

4ps..............................................................................................................................................5

Product...................................................................................................................................5

Price........................................................................................................................................5

Place.......................................................................................................................................6

Promotion...............................................................................................................................6

Analysis of Tourism industry in UK..........................................................................................6

Porter’s generic study.................................................................................................................6

Britain tourism strategy..............................................................................................................8

Strategy Positioning.................................................................................................................10

Identification and explanation for the strategic position..........................................................10

Justification Of the Framework................................................................................................11

Justification of selected segment or target market...................................................................11

Conclusion................................................................................................................................12

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Consultancy report

Consultancy report for the company scenario 1

Introduction
A consultancy report has been conducted here to identify the potential market segment of the
tourism sector in the United Kingdom. This report also includes the factors that make the
United Kingdom the tenth most visited country in the world. The growth in the travel and
tourism sector of the United Kingdom is 0.5 percent higher than the normal average.
However, the pandemic has brought about a global recession and a halt is the day to day
ongoings of the travel and tourism industry. In the current time, there is a restriction in the
travel and tourism industry of the United Kingdom and it is likely to stay. This consultancy
report identifies the potential target markets and segments in order to improve upon the
current situation. This report provides a step by step analysis of the requirements that are
necessary in order to gain efficiency in the industry.

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Brief information about the company

The United Kingdom is ranked 10th among the biggest tourist destinations with more than 37
million people visiting in the year 2018. Moreover, in the year 2017, the Uk travel industry
contributed somewhere around two hundred and thirteen billion pounds to the UK’s GDP.
The major tourist destinations of the UK include London, Edinburgh, Cambridge,
Canterbury, Oxford, York etc. The United Kingdom has a total of 32 tourist destinations
which ranks 8th among the world (Rita et al. 2019). Moreover, the travel and tourism sector
is the fastest growing industry in the United Kingdom and it is expected to grow by 3.8
percent till the year 2025. However, the recent pandemic has hit the United Kingdom really
hard and the travel and tourism industry is one of the most negatively affected industries.
There are travel restrictions that are still present in the country and there is no certainty of
when the travel restrictions are going to be lifted (Milano et al. 2021). Due to these
restrictions there has been a plethora of calamities which has been brought upon to the people
of the United Kingdom as the industry experienced the collapse of big household names such
as STA. Moreover, forty percent of the employees lost their jobs in the Gatwick airport only
in the last couple of months.

Brief summary of the scenario

In this report scenario 1 has been selected here to demonstrate among given four scenarios
that refers to the tourism sector in the UK. However the overall brief of this scenario refers to
the reality that the tourism sector in the UK has rapidly increased over the years. At the same
time, the scenario also illustrates that the tourism industry in the UK enhances a boost
development in the sector of Tourism industry (Séraphin et al. 2018). In the scenario, the
reality has been focused that like any other sector of business the tourism sector is also
needed to pay attention to the flow of resources that plays a core factor for the overall
development. Despite this, the scenario has also focused on the factor where it describes that
the tourism industry is much immense and that affects the rate of growth in the sector of
tourism industry in the UK since the last five years. As a result, a positive attribute has been
noticed in the growth rate and the overall profitability in the market. It has also observed that
there are several types of demand from the side of customers that have arisen and that rectify
the rapid index of growth in the tourism industry in many places of the UK.

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Identification of potential segments/ target market

There are some key audiences who can be underlying the target market of the tourism
industry in the UK. In this context, the people who are highly educated and belong to the first
world are mainly underlying the market segmentation of the tourism industry in the UK. At
the same time, the people who are young aged between 18-45, and love to explore different
places can identify the potential target market for the travel industry in the UK. tennagers and
young cuple can be the underlying target market for the organisation in the travel industry.
On the other hand, office workers who are working at the shift of 9-5 can be the target
market for the travel agency (Condorelli et al. 2020). The people who often have to travel for
office work can be targeted as the core customers for the travel industries in the UK. Apart
from this, the students who are approaching for a higher degree course can be identified as a
target market for the industry as they have to explore many places for their academic research
(Brennen et al. 2020). Demographic segmentation In this context, the people of first world
countries like America, France and China can be identified as the potential target market for
the industry. Similarly, all gendered people are enlisted as the potential target for the
industry.

4ps

Product
Tourism refers to a different product from the other sector of business in this context it can be
said that tourism is a vast sector. However, it covers a large range of products such as
accommodation, luxurious food, privileges of transportation, beautiful scenarios and many
more. At the same time, the tourism industry also provides the significance of historical
places and that can be the element to attract travellers towards the tourism industries in the
UK (Hess, 2020). There are several places in the UK that can be the main attraction for the
travelers. At the same time, the quality service and the royal attribute of the travel industry in
Uk is also identified as the product of the industry.

Price
The price is the second core factor that affects the overall performance of the travel industry
in the UK. However, the price experience of customers affects the overall profitability and
productivity of the travel industry, the UK travel industries offer different price packages for
the sake of travelers who come to visit the UK ( Kim et al. 2021). however, the price package is

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formed according to the base of accommodation and facilities offered for the customers. It
has been found that many tourism industries in the UK have offered their tourism package
according to the market price.

Place
It has found that tourism industries are often paying attention to develop their distribution
channel. They perhaps build up a good relation to the supplier agency by whom they can
contact their potential target market. However, they pay keen attention to provide a better
transportation service to their travellers (Camerano, 2020). At the same time, they also focus on
the overall activities of their tourist operator to have a better business attitude. However,
online and offline offers to their customers.

Promotion
The UK travel industries are often very focused to have a strategic promotion plan that they
can attract a large scale of customers for the sake of a greater profitability of the organisation.
To accomplish this business requirement they often offer several discounts and travel
facilities. At the same time, they also facilitated different range of package printing that
helped them to provide a better business in their sector of business. In this context the travel
industries have focused on the online bookings and other relevant facilities to their customers.
Perhaps they are also pay attention to promote their business through digital marketing and
by the application of social media.

Analysis of Tourism industry in UK

This paper looks at the five forces that affect a competitor's competition and therefore
profitability in the tourism sector (Seraphin and Yallop, 2020). Suggestions are made to
improve and refine this sector based on the advice given by the Five Factor Model.

Porter’s generic study

The tour operator sector in the United Kingdom is appealing because it is untouched by new
entrants. Because of the sector's convergence, the two largest players' positions are stable,
particularly since they are vertically integrated. Although producers have no negotiating

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power, consumers have a lot of bargaining power, due to technology. The threat of
replacements is as big as the economic competition ( Gil-Alana et al. 2020). However, due to
various Visit Britain's high potential, market rivalry could shift. Economies of size favour the
big players at the moment. Established players must create barriers to entry to stay successful,
including their custom-tailored offerings. Firms should concentrate on differentiating
themselves by using their strengths by porters.

• Threat of New Entrants

Thomas Cook acquired MyTravel and TUI retained First Choice, putting the tour operator
market in the UK to a halt (Kyrylov et al. 2020). These two actions not only drastically reduced
the number of competitors in the market, but they both served as a barrier to potential
entrants. As a result, restructuring became a deterrent to potential competitors thus benefiting
incumbents. The early showed that the number of big players in the sector has declined
substantially, confirming the accumulation of market share in the hands of a few. In the
production side, current market companies profit from economies of scale when a high
volume of output results in a reduced cost per unit. Furthermore, prospective competitors will
have to spend a considerable amount of money, expertise, and learning in order to contend
with the current strong incumbents. Customers would not be able to move tour operators
because the risk of doing so would be prohibitive.

 Bargaining Power of Suppliers

The two major actors, Thomas Cook and TUI, are tightly regulated, with several businesses
under one umbrella (Bruijl, 2018). They have branches, subagents, a fleet, hotels, and even
airlines of their own. Many small travel companies, on the other hand, depend on foreign
vendors such as flights, lodging, procurement manager, and transportation. Smaller operators
have a small market share, but manufacturers just have a handful to tend to. Since there is no
individuality of the supplies, switching vendors will be cheap. As a result, suppliers'
purchasing power in the sector is reduced.

 Bargaining Power of Buyers

Consumers are the primary purchasers and, as a result of increased internet access and
information demand, as well as the opportunity to book vacations online, they now have more
purchasing power. Switching costs are also minimal since most tour operators sell
comparable items. Airlines are now specifically targeting customers, and have the potential to
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lower industry costs. Furthermore, regulations such as ATOL allow customers to book their
vacations only with registered agents that have a valid licence. Due to the internet, buyers are
aware of competition prices and may therefore bundle their own vacations.

 Competitive Rivalry

The number of players in the industry has declined as a result of restructuring, and Thomas
Cook and TUI now have the bulk of the power. These two leading operators' total sales was
three times that of their three rivals In comparison to these two major companies, the
remaining three operators – ReveTouristik from Germany, Club Med, and Kuoni – have a
negligible market share. Because of the online marketplace, which allows retailers such as
airlines and hotels to reach customers directly, there is indirect rivalry. Even digital bookings
are controlled by a few firms like Expedia, Travelocity, and Priceline, which have absorbed
share of the market from conventional tour operators.

 Threat from Substitutes

Substitutes for tour operators pose a significant threat. Staycationing is a common activity
among consumers, and it may encourage them to spend their vacations with their families and
friends(Nam et al. 2019). During weekends and holidays, hotels may provide short-breaks and
other forms of entertainment, which may be appealing to customers. As a result of the
economic downturn, substitutes could pose a challenge, particularly because switching costs
are low.

Britain tourism strategy

This bold approach outlines what Britain should do to ensure that foreign tourism receives the
greatest economic gain possible, as well as how marketing and policy priorities can be
matched. By 2020, it expects to draw 40 million overseas tourists who will invest £31.5
billion (Auster, 2020). a significant piece of work has been completed, assessing Britain's
strategic role in each of our 21 target markets and finding development prospects and
obstacles.

Four key elements were established as drivers of potential success in this study:

• Expanding aviation capability to support new air routes, especially from developing
markets

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• Increasing distribution across the travel trade

• Broadening the merchandise offering and making it easier to visit Britain by
enhancing Britain's visa process

None of it is beyond any particular organization's control. This is a plan for the United
Kingdom, with the travel sector, government offices, and agencies all working together to
achieve a clear long-term development goal.

UK tourism’s goal is to collaborate so that organizations and companies can cooperate to

realise tourism's maximum economic growth potential for the rest of this decade.The private
sector plays an important part (Croft, 2018). Via our collaboration operation in 2018/19, we
were able to secure £11.5 million in cash and marketing in-kind assistance. This contained
the following:

• partnering with core European partners such as easy Jet, Expedia, and P&O, as well
as airports and DMOs like Bristol Airport, Newcastle Airport, and Visit Wales, to fix
geographical and seasonal spread
• a deal with China's C-Trip, which controls 60% of the industry, to facilitate travel to
and throughout the world
• Partnering with well-known companies such as American Airlines, SAS, Japan
Airlines, Etihad Airways, easyJet, Flight Center, and Expedia
• a project with British Airways to establish alternative routes from Pittsburgh and
Nashville in the United States to Osaka in Japan in order to draw new tourists.
• three-year agreement with Etihad Airways in Possibly longer to boost tourism
industry from the Middle East has been expanded.
• a collaboration with DEFRA and the Department of Trade and Industry to encourage
British beverages in foreign markets
• As part of the GREAT Britain initiative, we've been collaborating with other public
diplomacy collaborators in a far more strategic way (including the FCO, Department
for International Trade and British Council). Furthermore, the initiative has shown the
importance of non-tourism companies in defining Britain's reputation around the
world, as well as the effect this has on travel and financial choices.

This policy establishes a lofty target for the United Kingdom. To ensure that Britain is ready
to survive and prosper in the global race for tourism, it will need much greater coordination
through government, the UK and overseas tourism sectors, and national tourist boards.

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Strategy Positioning
Place is a form of business contact that is essential to improving a tourism destination's
attractiveness. The aim of positioning is to carve out a specific identity in the minds of
prospective buyers. A place that conjures up images of a location in the minds of customers;
images that separate the destination from the competition while simultaneously fulfilling their
wishes and desires (Ibrahim and Gill, 2020). Market segmentation and target ads was
accompanied by placement, which is a messaging technique.

The research focuses on the latest positioning methods used by England's Regional Tourism
Boards (RTBs). Consumers were perplexed by the regional product post, according to a new
national market research report into short holiday destination choice in the UK. According to
the facts, new RTB positioning techniques are struggling to meet up with the consumer's
ever-changing needs (Lo et al. 2020). The reasons for specifically positioning the destination
product are addressed in this essay, and it is mentioned that, while RTBs could benefit from
marketing techniques used in other segments of the tourism industry, there are likely to be
operational and cultural obstacles in the way of this learning.

Identification and explanation for the strategic position

The RTBs perform informal and continuing internal research. When asked to compare the
strengths and drawbacks of their service and marketing campaigns, the most frequent answers
showed a curious quandary. In the one side, and over half of the respondents said that their
product selection was an asset, since the same proportion said that striving to be all to
everybody was a weakness. This argument stresses a key aspect driving RTB policy: the fact
that they are overly relying on commercial and local government participants for support
(Poon, 2020). Once a year, six RTBs perform a competitor study. Five of them were able to
name unique UK regions as rivals. There were no particular overseas destinations listed as
competitors.

The success of the above studies in contributing to correct market segmentation, competitive
distinction, and the recognition of consumer advantages is the second phase in determining
RTB positioning. An examination of the RTB strategy documentation reveals some details.
The importance of market segmentation is stressed. The 50+ age group, educational and
research trips, and activity holidays are all listed by the Yorkshire and Humberside Tourist

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Board. The East Midlands Tourism Board puts a heavy focus on image and addresses the
need for the area to establish a distinct brand identity.

In several cases, Lovelock's positioning framework's first two steps are simply a means to an
end. This positioning mechanism manifests itself in the convective flow. To truly achieve the
RTB positioning stage two assessment, it is important to proceed to the final stage and
examine the actual product offering. The RTB brochures were selected as the structure for
this product review by the reviewer.

Justification Of the Framework

The fact that the brochure is essentially the commodity from the consumer's perspective
justifies this framework. The only tangible way for a tourist or customer to determine which
tourism items a destination provides is to review the brochure made available by that
destination (Lindberg, 2020). According to a survey of tourist inspiration, just over half of
respondents selected their destination solely on the basis of information given in travel
brochures. These individuals came from all nine socioeconomic groups ( Olya, 2020). There
are three main reasons why the travel brochure is so relevant in the decision-making process:
a vacation is a high-risk investment that involves the use of disposable dollars during an
individual's spare time; the customer is unable to visually experience the future purchase,
necessitating the use of secondary and tertiary levels sources; and holidaymakers prefer to
visit new and largely unknown areas.

Justification of selected segment or target market

 To begin with, third-world travel is comparatively affordable for first-world citizens.
Assume an individual is moving from a European to an African country. It's possible that
he'll find items in Africa that are moderately priced. This implies that he can take a rest
without difficulty. Apart from holidays, another explanation why high-end residents visit
further is tourism (Gössling and Scott, 2018). With this information in mind, the target
demographic may be members of high-end communities or nations.

According to the World Trade Organization, youth travel refers to all individual trips
occupied by individuals aged 16 to 29 for cycles of less than one year that are inspired, in
part or entirely, by a desire to learn about other cultures, gain experience of life, and/or
benefit from learning and educational experiences outside of one's daily environment.

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Because of the rapid growth of emerging technology, the phenomenon of social networking
has piqued the interest of many foreign scholars, who have attempted to investigate its
relationship with personality traits of young people, including those linked to their travel
behaviour.

Tour operators recruit office workers for travel and this is how they enjoy their time off or
holidays. A fair paycheck and a reasonable set of tasks aren't always enough to make a job
enjoyable for busy office staff. Employee morale is maintained by travel. For office
employees, holidays act as a stress reliever in and of themselves.

People With a High Degree of Education is targeted my tour operators because Most trained
people are voracious readers who want to learn more about the environment. Traveling is also
a means of education since it helps people to learn new things and see new things.

Adventure travellers are one user group that remains fertile ground for tour operators (Sadq,
2019). While many would-be travellers are bypassing tour operators in favour of using the
internet to develop personalised travel experiences customised to their personal preferences,
adventure travellers continue to use tour operators for the flexibility, comfort, and skills
required to complete complex flight booking that often involves significant activities and
expeditions.

Mountaineering, rafting, sky diving, and other excitement experiences are common with
adventure travellers, and travel companies who understand this opportunity and use the right
tools and tactics to catch it should expect to see robust growth and a greater presence in
today's modern travel industry.

Conclusion
It is concluded the travel industry in the UK has explored a large scale of profitability and
development that help them to nourish the hospitality business in the UK. At the same time,
it has succeeded to enlarge its target market by offering a different range of packages and
offers. However, it enhances a positive wave in the business. However, the travel industries
have also approached some marketing tools to attract their target market.Despite, the effect of
covid is also affects the overall productivity of tourism, the tourism industries in the UK have
focused such useful strategy such as pertaining with core European partners. At the same

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time, they also visit Wales, to fix geographical and seasonal spread Rather it assumes that
these would help them to secure their future business in the current flame of marketing.

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