Thomas Cook Tour Operation UK Ltd :: Business and Management Studies

Thomas talk through ones hat Tour Operation UK LtdIntroductionThomas realize Tour Operation UK Ltd is the ternion largest go groupoperating in the UK travel attention, owning its own traveldistribution transmit, tour operation and airline. The companybelieves that they have earned their mooring through consumerrecognition for their quality and expertise in providing packageholidays.The instability of the market caused by high sensitivity to economicchange and the intangible and destructible nature of the products sold,forces companies competing within the travel industry to constantlyseek reinvigorated and imaginative ways to create demand and maintain orstrengthen their position. A combination of economic downturn, a lackof consumer confidence, natural disasters and the effects of terrorismhave had a major impact on the performance of Thomas Cook TourOperations. In this report I will analyze the marketing strategiesused by the company and discuss the effectiveness in achiev ing theirobjectives.CompanyThe tragical events of September 11th 2001 had a devastating affect onindustries throughout the world. The travel and tourism industryhowever was hit the hardest. Increasing fear amongst consumers fearfulto fly and a downturn in the world economy caused a drastic decline inthe demand for both business and leisure travel causing passengernumbers to plummet. Thomas Cook tour Operations, like its competitorsexperienced high profit losses as a reply of falling passengernumbers, added security costs, falls in their share prices andincreased insurance premiums in which occurred I the aftermath.Prior to September 11th the travel industry experienced a dynamicgrowth between 1995 to 2001. During 2001 20.6 million package holidayswere sold to the British Consumer, 1 growth of 2.6%. However thedeterioration of the industrys success came immediately after theterrorism attacks. Thomas Cook Tour Operations were as a result forcedto develop a new strategy in order to save their rapidly fallingprofits.In order to develop their new strategy, the company carried out a SWOTanalysis. This is a technique that involves identifying a companysstrengths and weaknesses in the business, the opportunities presentedby the trading environment and any threats opposing the company. Thebelow information is adapted from the Thomas Cook Tour OperationsChief executive Update.StrengthsExisting percentage market shareThomas Cook reputationExisting Thomas Cook render and brand recognitionHigh level of awareness within target marketKnowledge and experience of market trendsLarge number of distribution channelsGood product varietyWeaknessesHoliday Essential brand not well established and relatively low demandfor the product.Confusion and lack of appellation of other Thomas Cook brands e.g.JMC and holiday essentials.High volume costsHigh capital expenditure, i.e. marketing expenses, data processingcosts and human resources, e.g. rung turnoverOver capacityExcessive fixed assets i.