Impact of Covid-19 on TUI Group's Business Environment: A STEEPLE Analysis

This report analyzes the impact of Covid-19 on TUI Group's business environment through a STEEPLE analysis. It discusses the internal and micro environments of the company, the UK government's recovery plan, and the various factors affecting the tourism industry.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Section 1...........................................................................................................................................3
Summary of TUI group................................................................................................................3
Section- 2.........................................................................................................................................4
TUI internal environments...........................................................................................................4
Section- 3.........................................................................................................................................5
TUI group micro environment.....................................................................................................5
Section- 4.........................................................................................................................................7
STEEPLE analysis.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is the collections of external and internal factors such as customers
expectation, needs and employees, clients, suppliers, managements, activities by governments,
owners, social trends, market trends, innovation in technology and economic changes, etc. there
are various factors which influence the organization situations and environments. This helps in
identify the business opportunities, improve the performance of business, profitability, growth
and assist in planning of the business. The TUI groups is the tourism business and leading
tourism groups and it operates the 166 travel agencies in United Kingdom and provide services
to the million customers.
Company leading the online portals, hotels, aircraft, etc. company is maintain the
sustainability environments with the internal and external factors as well as corporate culture is
the responsibility of social, environmental and economic. This report will discuss the impacts of
Covid-19 on the company internal environments and impact on the government's recovery plan
as well as impacts on the macro and micro environments of Covid-19 and UK governments
recovery plan (Skutnabba, 2021). This report will also elaborate the pestle factors on TUI group
operation and suggestion for improve the macro and micro analysis as well as recommend the
TUI company can gain benefits from the UK governments recovery plan.
Section 1
Summary of TUI group
TUI company is leading the tourism groups and it gathers the better tours operators with
the better products and services. The company provide the various services such as hotels and
resort, aircraft, cruiser line, online portals and travel agencies. The company provide the better
quality services to customers. TUI company is compromise with the 400 more hotels and its
brands are located in the top class facilities in the regions, and they offer the variety of hotels as
according to the customers expectations and affordable criteria with the service quality, high
standard's organization performance and environmental management (Aburumman, 2020). The
hotel groups are also includes the various brands such as TUI blue, Robinson clubs and premium
club. In the context of providing the cruises, the company provide the offers as according to the
desire of different customers so, the company lead the luxury and expedition cruises in the

competitive marketplace. The TUI musement of company is consist the digital platforms to
provide the better services and local services delivery to customers in effective ways in more
than 140 countries. It helps in generate the revenues as well as the customers can books tickets
and transfer with the helps of TUI musement and websites.
The revenues of company are 473.2 crores EUR in 2021 and company gain the best
revenues and its generate day by day but the company face the Covid pandemic situation buts I
recover again in 2021. The company have the more than 2222 agencies and more than 30
thousand employees. The company is the largest business organization which lead the large
tourism business. The company have the good sustainability in business so, the wide scope in the
business yo became success for employees (Slyvenko and Slyvenko, 2020). There are various
top competitors of TUI group company such as Transact, Thomas cook, travels super market,
last-minute, jet2 holidays, etc. these all are top competitors of company and company lead the
top competitors in marketplace.
The company create the flatter hierarchy structure for the company can come closers to
its business operation in the competitive marketplace. The organization structure of company
helps in maintain and handle all the operation in business with effectively and efficiently and it
helps in enhance the business opportunities as well as develop the sustainable business
environments. TUI company have the own leadership models and values and it is VIBE. The
vibe stand as vision, inspire, execute, and build teams.
Section- 2
TUI internal environments
The impact of the Covid-19 on internal environments and this also those factors which
are controlled by the company at internal levels. The internal factors include the strength and
weakness of company which are affected by the pandemic. The tourism company face many
challenges due to the pandemic. The strength and weakness are the internal factors of TUI
groups which are affected by the crisis situations. This impact on the performance of business
and brands of company.
Strength of the company affects by the pandemic (Bhuiyan, 2020). The profit and
revenues of organization affected which are not positive for running business, the company not
able to fly to more than 150 destinations and as well as affects the employees and leadership of

company. The company also not able to provide the unique and customized holidays to the
customers and it negatively affects the customers and employees base of TUI company
(Livandovschi, 2022). The company also have the good quality of products and services which
are attracted the customer but due to the crisis they are not able to provide the services and that
badly affects the products and vacant rooms of hotels, airlines, etc. with the government's
recovery plan, the company get some relaxation and helps in generate the revenues again and
gain the position and generate profitability of organization in 2023.
The company have some weaknesses in the tourism industry such as competition market,
and they face some issues in the competitive market and after the Covid company get affect
badly in terms of competition as well as company face some challenges manage the social and
cultural issues but after recovery plan of business, company have the opportunities to gain the
competitive advantages and maintain the cultural and social issues within the business (Zukhri
and Rosalina, 2020).
The governments also provide some COVID- 19 secure guidelines because of the
developments of new safety. They aim to recover the domestic tourism in 2022 and international
tourism in 2023. the governments try to protect the jobs and business in the tourism industry. It is
the positive recovery plan of governments and TUI group recover the business revenues in short
term periods because government recovery plan helps in achieve the growth, jobs and
investments which are most important for the company. They will also develop the sustainable
tourism plan for the global sustainable travel which helps in generate the economic benefits.
Section- 3
TUI group micro environment
The micro environments of organization is badly impacted by the Covid- 19 and theta
includes the competitors, customers, suppliers, employees, media, shareholders, etc. that all are
those factors in an organization environments which affects its decision-making and
performance. This helps in managing the revenue's gap as well as also manage the micro
environments of business such as customers, suppliers, employees, etc. (Tung, Tang and King,
2018).
The UK governments recovery plan is the smarter control in the pandemic with the social
restriction and provide the reliable treatments to people, the government control the social

contact and makes contact safer. the governments launch the national lottery days scheme to
support the new rail pass and attractions to motivate the domestic breaks.
The impact of pandemic on the TUI group micro environments due to the pandemic
because it is the critical industry and Covid affects the economic of countries and micro
environments.
Customers: The customers of company affected by the due to the Covid and company loss their
customers, and they don't want social interaction with everyone because they have fear of Covid
but the government's recovery plan helps a lot to the micro environment of company because the
governments start guideline about the social distances and social interaction so, the company
offer trust and safety to the customers (Lapointe, 2020). With the helps of e-commerce company
gain some profits to provide the home delivery services to customers and assist in retain the
customer rate.
Suppliers: suppliers of company are also getting fewer due to the pandemic and supply chain of
company also affected by the challenges and that includes the disruption and delay. But
governments recovery plan helps company to regain the proper supply chain which are most
important for business.
Employees: many employees leave job due to the challenges which are badly affected the
company and also many employees become jobs less during the pandemic as well as it also
increase the poverty and negatively impacted on the work life of employees but after some
guidelines of governments regarding the recovery plan, the employees get relaxed and numbers
of employees also increased after that.
Competitors: the competitors are also the micro environment of company, the competitive in
market also get negatively affects due the crisis situation (Nyanga, Pansiri and Chatibura, 2019).
Competition advantages are also got less due to the pandemic and affects the struggle factors of
business. But after recovery guidelines the company regain their competitive advantages in
competitive marketplace.

Section- 4
STEEPLE analysis
STEEPLE analysis helps in analyse the situation of industry with the various segment
such as political, social, economics, ethical, environmental and technological factors of the
tourism and tour industry.
 Political factors: The political factors affect the travel and tourism industry because the
Covid -19 affects the condition of business. Because everything is shut at the time of lock
down in world. The business face many difficulties at the time of pandemic (Johann,
2022). This is also obligation at the travel destinations, hotels, aircraft, etc. tourism
industry suffered a lot because of the situation and face the lose as well as also decline in
the market demand. This affects the tour industry in the whole negative ways.
 Economic factors: Due to the Covid- 19, the economic factors are also affected the
exchange rates, inflation, taxes, supply and demand, so, it affects the country and world
economy as well as company also face the challenges and affect the business.
 Social factors: Social factors are also affects the business. Due to the Covid, business
face the challenges because the customers supply and demands are banned but the
company give social services to customers with the online delivers services with websites
in effective and safest ways as well as numbers of day of education.
 Technological factors: Technological factors helps in provide the services to customers
in the pandemic situation (Kapidani, Bauk and Davidson, 2020). The company offer the
food's delivery services from resort to customers with the helps of online sites and drone
facilities because that time social distancing are most important.
 Legal factor's: The legal factors are also influenced the tourism industry. The
governments rule the many regulation at the time of pandemic to maintain the security
and safety and the governments regulation is encompasses the environmental, health and
domestic issues. It was the critical role in the competitive business environments. The
industry face the many challenges at the time of critical situation and it affects the legal
factors of industry.
 Environmental factors: These factors are also influenced by the industry. The
environmental factors are most important for the safe and heathy environments. The
governments decided about the lock down after that this regulation is lost affect the

tourism industry and company suffered a lot due to the regulations (Dovis and Zaki,
2020). Health issues is also affecting the industry if one person get the bad heath than it
affects everyone health in the business. The natural disasters also the leading concerns for
the tourisms and tour companies.
 Ethical factors: the ethical factors also influence tourism industry because it includes the
code of conducts, values, principles and this governs the fundamental behaviours of
humans. The ethical behaviour of employees includes the honesty, accountability, good
communication, respect, responsibilities, etc.
CONCLUSION
As the conclusion, the business environments consist the micro and macro environment
condition as well as the internal and external environments which are most important for the
tourism industry. The company TUI have the brand image and the many products and services
which attract the more customers and employees as well as company have the good sustainability
in the social and environmental factors which are essential to manage and handle the business
organization.
In the conclusion, this report discussed the TUI group company in the tourism sectors and
this also leading the largest markets as well as includes the organization structure, size of
company and employees. The company can improve the business environments with the helps of
corporate social responsibilities activities which attract the customers and employees and leads in
the generate the growth of company. The report also elaborated the impact on Covid-19 on the
TUI group internal factors, micro environments, macro environments with the steeple factors
which helps in determine the impact of Covid on the external factors of tourism industry such as
social, ethical, legal, economical, technological and environmental factors. This report also
discussed the United Kingdom governments recovery plan for the tourism industry to get over
and regain the market position in the competitive marketplace which helps in generate the
profitability and productivities of organization as well as build the customers base again and
assist in the growth and developments of business.

REFERENCES
Books and journals
Aburumman, A.H., 2020. The concept of global governance in tourism franchises: a case study
of TUI group. Entrepreneurship and Sustainability Issues. 8(2). p.1321.
Bhuiyan, M.A.H., and et.al., 2020. Aspects of sustainable tourism development and COVID-19
pandemic.
Dovis, M. and Zaki, C., 2020. Global value chains and local business environments: Which
factors really matter in developing countries?. Review of Industrial Organization. 57(2).
pp.481-513.
Johann, M., 2022. CSR Strategy in Tourism during the COVID-19
Pandemic. Sustainability. 14(7). p.3773.
Kapidani, N., Bauk, S. and Davidson, I.E., 2020. Digitalization in developing maritime business
environments towards ensuring sustainability. Sustainability.12(21). p.9235.
Lapointe, D., 2020. Reconnecting tourism after COVID-19: The paradox of alterity in tourism
areas. Tourism Geographies. 22(3). pp.633-638.
Livandovschi, R., 2022. Recovering and strengthening tourism during COVID-19 pandemic.
Nyanga, C., Pansiri, J. and Chatibura, D., 2019. Enhancing competitiveness in the tourism
industry through the use of business intelligence: A literature review. Journal of
Tourism Futures. 6(2). pp.139-151.
Skutnabba, M., 2021. Resilience and vulnerability in the tourism industry during a pandemic. A
comparative study between Finland and Sweden on different geographical scales.
Slyvenko, V. and Slyvenko, O., 2020. Economic security of tourism in Germany: models for
overcoming the crisis. European Journal of Management Issues. 28(3).pp.110-120.
Tung, V.W.S., Tang, M.F.C. and King, B.E.M., 2018. Tourism industry career prospects and the
business environment: E vidence from C anada and M acau. International Journal of
Tourism Research. 20(4). pp.518-525.
Zukhri, N. and Rosalina, E., 2020, November. Acceleration model for tourism industry recovery
based on environment post COVID-19. In IOP Conference Series: Earth and
Environmental Science (Vol. 599, No. 1, p. 012090). IOP Publishing.
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