Business Studies Marketing Project Travel Agency

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Business StudiesMarketing ProjectTravel Agency

• Members Calvin Wong
• Lawrence Lau
• Anthony Lau
• Tam Lam
• Terry Tang

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Introduction

• Increasing purchasing power
• More people are willing to travel countries they
  like
• Looking for tours with higher quality and better
  services
• Enjoy a luxury trip

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Objectives

• Create Brand image
• Build reputation among the industry
• Establish long-term business relationship with
  channel members
• Provide a new and tailor-made experience of
  traveling to customers

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Market Research

• Major competitors Hong Thai, Wing On,
  Morning-Star (??), EGL Tours (???), Sunflower
  (??), Jetour, SKY Travel
• Prices of high class tours to the following
  places
• USA Canada 14,000-15,000
• Europe 13,000-16,000
• South Africa 11,000-13,000
• Middle East 7,000-8,000
• South America 50,000-60,000

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• Unfulfilled needs of customers
• E.g. South America, Amazon Ecotourism
• Special trips
• An eating/investment trip with connoisseur
• Pilgrimage tours (specialist in visiting holy
  land/ mountain)
• In 2007 the overall expenses spent on traveling
  by HK people 107billions

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Situation Analysis-SWOT Analysis

• Strengths
• Business Class
• Concentrate mainly on long distance tours
• High Quality Services and Tours
• Experienced Tour guides
• Front-line staff with language ability
• Well-trained employees

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Weaknesses

• Lack of capital
• Lack of support from other channel members
• Lack of marketing expertise
• Brand name unknown
• Imperfect information of the market
• Relationship with airline companies

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Opportunities

• Unfulfilled customers needs
• New tours, package

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Threats

• Competitors
• Market not yet saturated
• Customers favor may change
• Rising cost
• Difficult to survive

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Market Segmentation

• Demographic
• It should be set up near the living place of
• middle-to-high income group
• retired people
• Psychographic
• aims to those
• want to be different
• enjoy high-class tours

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Positioning

• Super high-class
• Grand image
• Brand new traveling experience
• High quality service
• Focus on long-distance travel

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Target Market

• People with high income
• Retired people
• more leisure time for traveling
• willing to spend a large sum of money for
  traveling
• Company tours
• The youth are excluded due to their financial
  status and they tend to have short-distance
  travels such as Taiwan and Japan

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Product

• Traditional Part
• Four categories a) America Canada b) Europe
  c) Africa d) Middle East
• America Canada
• Sightseeing
• Eastern USA (Chicago, Washington, New York)
• Western USA (Los Angeles, California)
• Canada
• South America (Brazil, Argentina, Chile)

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• Europe
• Italy England France Spain Germany
  Portugal
• Sweden Denmark Norway Finland Switzerland
• Czech Greece Hungary Austria Ukraine
  Turkey
• Africa
• South Africa, Middle Africa, Egypt
• Middle East
• Dubai, Saudi, Arabia, Israel, Qatar

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Package

• Pilgrimage Tour
• Location Israel
• Wailing Wall, Last Supper room, Swim and Float in
  Dead Sea
• Ecotourism (???)
• Travel around the rainforest by helium balloons
• Location South America, Amazon, rainforests
• Foreign festivals
• Beer festival (???) in Germany

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• Historical Trip
• Location Germany
• Berlin Wall, Concentration camp, Wasa
  Poland-Jewish Monument
• A historical expertise provides German English
  translations
• Skiing Trip
• Location Switzerland
• Coaches and all skiing equipment will be provided

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• Features of our trips
• at least one experienced and professional leader
  and a local tour guide who can speak fluent
  Cantonese
• direct flight to destination, avoid transits
  which cause inconvenience
• five star hotels guaranteed
• private sumptuous coaches
• enough free time for travelers
• extra entrance/sundry charges during the trip are
  not included
• 1 professional photographer for photo-taking
• for any travelers having their birthday during
  the trip, 20 off discount
• insurance acquired

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Place

• Places to be considered
• Wan Chai
• Tsim Sha Tsui
• Happy Valley

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• Why Wan Chai?
• Only 1 large scale competitors in the stated
  district
• The people living nearby are mostly middle income
  group or above
• At the middle of residential area business area

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Price

• Price are set based on the market price
• Price range Traditional tours 10000-15000
• Package tours 15000-20000
• In Peak Season, price will be increased by 20

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• 10 discount offered to VIP members
• Extra discounts for VIP members traveling in
  their birth month
• Discount to children
• Discount offered to customers who sign up for the
  first time
• 1000 discount

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Promotion

• Advertising
• Personal Selling
• Publicity

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Services Marketing Mix

• People
• Staff dresses in uniform in shops
• Tour guides dress code always formal(e.g. No
  punk hairstyles wear shirt, leather shoes)

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• Process
• Provide staff with notes on standard procedures
  when serving customers
• Require staff to memorize FAQs and useful phrases
  (e.g. Thank you for joining our tour. We look
  forward to seeing you next time.)
• Ask customers to complete quiz to assess the
  quality of our tour

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• Physical Evidence
• Decoration concept of the shop Home sweet home
• Use wood in designing the shop
• Sofa, glass coffee table, large variety of drinks

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Relationship Marketing

• Provide VIP membership
• Priority to make reservation
• Give discounts to VIPs joining packages
• Give discounts to children aged under 11
• Feedback in quizzes is discussed every 2 weeks to
  ensure complaints are handled efficiently

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Recommendations

• Do regular research on
• the popularity of each of the packages
• the major age groups of different packages
• Allocate more resources to the most popular
  packages
• Cater more the demands to the major age groups
• Evaluate content of tours regularly

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Contingency Plan

• Lower the price of the packages and tours
• Eliminate those tours with least interest

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The End