MGN409: Assessment 2

Intrepid Travel

External Environmental Analysis

(P.E.S.T.E.L)

Tshering Choden

N11462949

Semester 2, 2023

Word Count: 1483

 INTREPID TRAVEL

COMPANY BACKGROUND

Intrepid Travel is a small group adventure travel business formed in 1989 by Darrell Wade

and Geoff 'Manch' Manchester, two Australian university friends (McCauley, 2017). The

company's mission is to "Create positive change through the joy of travel". Concerning its

mission, Intrepid Travel is committed to offering immersive, genuine, and ethical travel

experiences that benefit both tourists and the communities in which they travel (Intrepid

Travel, n.d.-a). Additionally, the organization operates over 1,000 itineraries worldwide and

employs over 1,500 workers and leaders (Intrepid Travel, n.d.-b).

The company became a B Corporation in 2018 after fulfilling social and environmental

performance, public openness, and legal requirements to balance profit and purpose. Intrepid

Travel has garnered several honors and accolades for its dedication to ethical and sustainable

travel such as the Brand of the Sustainability Initiative of The Year-(Environment) 2022,

Marie Claire Sustainability Awards (UK), and many more (Integrated Annual Report 2022,

2022).

ENVIRONMENTAL ANALYSIS: PESTEL FRAMEWORK

The PESTEL framework is a strategic planning tool used for comprehending and analyzing

the external variables that may influence business operations. Francis Aguilar, an American

professor created the PESTEL framework which can be found in his 1967 book "Scanning

the Business Environment” (García-Corral et al., 2022). PESTEL examines a company's

unique business environment via six lenses: political, economic, social, technological,

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environmental, and legal. A PESTEL analysis for Intrepid Travel has been conducted in the

following table.

Table 1: PESTEL Analysis of Intrepid Travel

Environmental
Description
Analysis Tool

Political Intrepid Travel is an Australian-based business, hence, it is essential to

examine the country's political stability. As of 2021, the political index

was 0.85, according to the Global Economy survey. The index goes

from -2.5 (weak) to 2.5 (strong). This indicates that Australia's political

climate is stable, making it secure for tourists, leaders, and operators,

which is a top concern for the firm. Furthermore, the firm closely

monitors world events and bases its decisions on accurate information

obtained from a range of sources, including government foreign

ministries (Intrepid Travel, n.d.-d). Apart from political stability, the

corporation must follow legislation and policies in each nation in which

it operates, such as visa restrictions, safety norms, and environmental

regulations. Furthermore, being a worldwide travel operator, it is

subject to varying tax rules in numerous nations. For example, in

countries where it has registered entities, such as the United Kingdom,

where Intrepid Travel UK Limited is registered with a VAT (Value-

Added Tax) (Intrepid Travel, n.d.-e), it is subject to corporate taxes.

Furthermore, any changes in VAT rates or regulations may influence

the company's pricing and profitability.

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Economic

A robust global economy may boost travel demand, which benefits

operators like Intrepid Travel. For example, via its community projects

in 2021, Intrepid Travel collected almost $500,000 and positively

affected 30,778 people throughout the globe (Integrated Annual Report

2021, 2021). Economic downturns or recessions, on the other hand, may

result in less travel spending, hurting the company's sales and

profitability. For instance, according to the report "Integrated Annual

Report 2021," the firm had a devastating financial effect as a result of

the COVID-19 pandemic, which resulted in travel restrictions

throughout the world, significantly impacting the global travel sector.

Additionally, inflation has a significant impact on the travel sector

owing to rising expenses of products and services such as gasoline,

lodging, and transportation. Fuel price increases have been seen by

Intrepid Travel, with an average increase of 30-40% in most regions

(Jorden, 2022a). Inflation can have an impact on travelers' spending

power, resulting in changes in travel habits and preferences. For that,

Intrepid has taken steps to save spending, such as modifying its timeline

to avoid unnecessary spending between visits (Jorden, 2022b).

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Social Intrepid Travel operates in numerous nations across the globe, with

populations that vary in terms of income, cultural norms and values, and

educational level. It works as a travel firm in nations with diverse

degrees of economic disparity, wealth concern, and poverty. These

variables might have an impact on the demand for travel services, as

well as client preferences and spending habits. Vietnam, Morocco,

India, Peru, Egypt, Sri Lanka, Cuba, Cambodia, Jordan, and Australia

are now the top 10 destinations under Intrepid Travels (Intrepid Travel,

n.d.-c). It has been noticed that the firm works in locations with varied

cultural norms and values, which might influence tourists' preferences,

expectations, and behaviour while on vacation. As a result, the company

includes these cultural variations and ensures that its tours respect and

accommodate the local customs and traditions of the countries in which

it operates (Integrated Annual Report 2021, 2021). Furthermore,

education levels vary throughout nations. Higher levels of education can

lead to higher self-confidence and a stronger readiness to engage in

entrepreneurial activities such as travel.

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Technological Technological changes have had a greater impact on the travel industry,

especially on travel experiences. Intrepid Travel has made significant

R&D investments to enhance its services and offers. For example, they

added 22 new "impact initiatives" in 2022, which are activities that

actively benefit environmental or animal protection, indigenous cultural

preservation, or disadvantaged socioeconomic groups ("Integrated

Annual Report 2022, 2022). In addition, it has collaborated with

Victoria University and the Australian government agency AusIndustry

on a two-year study project titled "Small Tour Group Impacts On

Developing Communities" (Integrated Annual Report 2022, 2022).

Additionally, to adapt to the digital environment and combine

customers and data, the company is undergoing a digital transformation.

The business adjusted its digital transformation approach after the

COVID-19 pandemic to become the first $1 billion adventure travel

company (Weber, 2022). Subsequently, they are attempting to improve

their security standards and streamline their operations to prepare for

the travel rebound. Intrepid Travel is likewise boosting its technological

budget by 189% from pre-Covid levels to emphasize innovations to

meet long-term objectives (Jorden, 2022b).

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Environmental Since 2010, Intrepid Travel has been a carbon-neutral company, and in

January 2020, it declared a Climate Emergency. The corporation has

established science-based objectives for reducing carbon emissions and

is committed to helping to keep global warming to 1.5°C. In addition,

Intrepid Travel has over 1,800 carbon offset tours (Integrated Annual

Report 2022, 2022). In addition, to reduce carbon emissions on their

journeys, they employ public transportation and low-carbon lodging

alternatives (Buchholz, 2023). To address environmental impact,

Intrepid Travel has implemented several policies and guidelines,

including the Sustainable Development Policy, Responsible Travel

Policy and Code of Conduct, Responsible Travel Guidelines for

Passengers, and Carbon Management Plan (Intrepid Travel's

Communication on Progress of United Nations Global Compact

Principles, n.d.). Furthermore, the company calculates workplace

emissions from electricity, gas, waste, business travel, and paper use

and sets excursion emission factors depending on micro-regions, styles,

and themes (Emen, 2020). It is clear that the company is committed to

promoting ethical and sustainable tourism that helps the environment

and local communities.

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 Intrepid Travel operates in several nations, each of which has its own

set of rules that must be followed. To operate effectively in the global

market, they must comply with varied laws and regulations of different

nations, negotiate multiple legal frameworks, manage liability risk,

safeguard data privacy, and adapt to local norms and habits. For

example, when online travel firms develop abroad, they must comply

with other nations' data protection and privacy requirements, such as the

European Union's General Data Protection Regulation (GDPR) (Press

Corner, n.d.). This necessitates the implementation of strong data

protection measures as well as guaranteeing compliance with various

Legal privacy regulations. Furthermore, the company must comply with

Australian Consumer Law, which requires them to deliver services with

appropriate care, skill, and suitability, and meet the description provided

in Schedule 2 Chapter 1 of the Competition and Consumer Act 2010

(formerly known as the Trade Practices Act 1974). Tour operators in the

European Union are required under the European Package Travel

Directive to have appropriate liability insurance and bankruptcy

protection (What Are the Requirements for Tourism Services in the

European Market? | CBI, 2022). The influence of international rules

and regulations on travel companies is enormous. Therefore, the

company must devote itself to complying with those laws and policies.

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CONCLUSION

Intrepid Travel, an Australian adventure travel firm, is influenced by governmental stability

and regulation, economic growth and travel demand, sustainability practices and their effects

on locations, client social norms and values, competitive analyses, and market trends.

Political stability, legality, economic development, and travel demand all influence the

company's operations in various countries. Sustainability practices and destination impacts

are critical for responsible and sustainable tourism, and consumer cultural norms and values

affect the company's operations. Finally, to remain ahead in the adventure travel business,

Intrepid Travel must evaluate competitors and market trends.

Understanding and addressing these difficulties is critical to the success of Intrepid Travel.

The firm may expand and stay a top adventure travel provider by concentrating on political

stability and laws, economic growth and travel demand, sustainability practices and effects on

locations, consumer social norms and values, and competitive analysis and market trends.

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REFERENCES

Buchholz, L. (2023, July 5). Intrepid Travel’s Matt Berna: Revolutionising Travel for

Inclusivity and Sustainability. Sustainability Magazine.

https://sustainabilitymag.com/articles/intrepid-travel-making-the-industry-inclusive-

sustainable

Competition and Consumer Act 2010. (2011). In Federal Register of Legislation. Office of

Legislative Drafting and Publishing.

https://www.legislation.gov.au/Details/C2011C00003

Emen, J. (2020, November 2). 20 Minutes With: Dr. Susanne Etti, Intrepid Travel’s

Environmental Impact Specialist. PENTA.

https://www.barrons.com/articles/20-minutes-with-dr-susanne-etti-intrepid-travels-

environmental-impact-specialist-01604334196

García-Corral, F. J., Martínez-Vázquez, R. M., Milán-García, J., & De Pablo Valenciano, J.

(2022). The Circular Economy as an Axis of Agricultural and Rural Development:

The Case of the Municipality of Almócita (Almería, Spain). Agronomy, 12(7), 1553.

https://doi.org/10.3390/agronomy12071553

Integrated Annual Report 2021. (2021). Intrepid Travel.

https://www-intrepidtravel-com-static-site.s3.ap-southeast

2.amazonaws.com/Intrepid-Integrated-Annual-Report-2021.pdf

Integrated Annual Report 2022. (2022). Intrepid Travel.

https://reports.intrepidtravel.com/Intrepid-Integrated-Annual-Report-2022.pdf

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Intrepid Travel. (n.d.-a). Intrepid’s Purpose & Mission | Intrepid Travel.

https://www.intrepidtravel.com/en/purpose

Intrepid Travel. (n.d.-b). Our story | Intrepid Travel.

https://www.intrepidtravel.com/en/about/our-story

Intrepid Travel. (n.d.-c). Top travel destinations & trips | Intrepid Travel.

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Intrepid Travel. (n.d.-d). Travel alerts | Intrepid Travel.

https://www.intrepidtravel.com/en/travel-alerts

Intrepid Travel. (n.d.-e). UK booking Conditions | Intrepid Travel.

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Intrepid Travel’s Communication on Progress of United Nations Global Compact principles.

(n.d.). Intrepid Travel. https://www.intrepidtravel.com/sites/intrepid/files/teal/Our

%20Approach%20to%20Sustainability_COP_2010_FINAL.pdf

Jorden, R. (2022a, August 10). How long can tour operators absorb costs vs. prolonged

inflation? Skift.

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prolonged-inflation/

Jorden, R. (2022b, August 11). Tour operators’ inflation problem. Skift.

https://skift.com/2022/08/11/tour-operators-inflation-problem/

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McCauley, D. (2017, August 28). How mates built $300m empire. News.

https://www.news.com.au/finance/business/travel/how-two-backpackers-created-a-

300-millionayear-global-travel-empire/news-story/

638a30b9a7b3f063bfb9f0c1884df054

Political stability in Australia/Oceania | TheGlobalEconomy.com. (n.d.).

TheGlobalEconomy.com.

https://www.theglobaleconomy.com/rankings/wb_political_stability/Australia/

Press corner. (n.d.). European Commission - European Commission.

https://ec.europa.eu/commission/presscorner/detail/en/MEMO_18_387

Weber, K. (2022, July 21). Intrepid Travel backs CDTO to drive 2025 digital transformation.

iTnews. https://www.itnews.com.au/news/intrepid-travel-backs-cdto-to-drive-2025-

digital-transformation-581790

What are the requirements for tourism services in the European market? | CBI. (2022,

January 19).

https://www.cbi.eu/market-information/tourism/buyer-requirements'

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