Strategy in Travel and Tourism

STRATEGY IN TRAVEL
AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION 1.....................................................................................................................................3
SECTION 2.....................................................................................................................................4
Porter Five Forces Analysis of Eagle Airways............................................................................4
Airports at two distinct locations.................................................................................................6
Competitors Analysis...................................................................................................................8
Customer and Market Analysis...................................................................................................8
Future Growth Analysis of this routes.........................................................................................8
Identification of Barriers in London to Paris route......................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The travel and tourism industry is one of the largest and most competitive industry in the
whole world. On the same side developing and managing the strategy for travel and tourism
companies are very difficult task (Isabelle and et.al., 2020). This report will be based on airline
industry having two sections. The first section of the report will discuss the concept of airline
airline deregulation. While, the second section of the report will cover the Porter five forces
analysis of the Eagle Airways and identify the barriers that inhibits market entry. In the present
report, the name of the Airline company selected for the the entrepreneur is Eagle Airways and
the deregulated routes having national borders are London to Paris. The report will discuss the
barriers that the company may face while starting this route.
SECTION 1
1. Airline deregulation refers to ceding of control over various aspects of aviation industry by the
government to the airline companies. It can imply the process of removing restriction on the
entry or price, on airlines, affecting particularly the carriers who have the permission to provide
service on specific routes. US was one of the first countries which officially deregulated airlines
through the Airline Deregulation Act passed in the year 1978 (Brander and Cook, 2020).
Prior to that, Civil Aeronautics Board extensively regulated the domestic commercial aviation
industry.
Airlines Deregulation Act changed all that. Airlines set their own schedule and routes which led
to dramatic rise in air travel and the industry underwent explosive growth.
A similar approach to deregulation and liberalization followed in European Union, Australia,
United Kingdom, Scandinavia, Ireland, and select South and Central American countries.
The bilateral agreements the US have with other countries to allow foreign access in aviation
market and remove barriers to competition, are known as Open Skies agreements. Through these
agreements, airlines have got the right to operate from any point in the US to any point in other
countries. The US has been in such agreements with about 60 countries, where 15 of them are
out of 25 European Union nations. These agreements have proved successful in removing many
of the barriers which hindered competition and thereby allowed airlines to have partnership with
foreign firms, access to international routes from their countries as well as to their home

countries, and freedom from many forms of economic regulation they traditionally were
subjected to (Byers, 2018). The globalization of industry will be better with set of rules that are
globally minded, allowing airlines of one country to set up airlines in another country (known as
the right to establishment), as well as to have domestic operations in another country’s territory
(known as cabotage).
2. The rigid fares during the era of regulation have been replaced by today’s highly competitive
price market. After deregulation, complex pricing models were created by airlines, that included
the price sensitivity and quality expectations of various air travelers and the airlines offered
differential price/quality packages designed for each kind of travelers. However, the new low
cost carriers have much simpler fare structures due to consumers demanding low prices,
transparency in pricing from online sites, and less dependency on travel agencies.
As the prices have reduced, air travel has seen an explosion. The no. of travelers flying has
doubled from 1980s (Petrie, 2021). Higher flight frequency and a large no. of nonstop flights
have air travel much more convenient for travelers. Much lesser no. of passengers are required to
change airlines for connection, hence better coordination in travel and greater customer
satisfaction.
3. Instead of the operations focus that traditionally airlines used to have, today’s airlines are
required to be customer centric. It means not just low prices but also better and better customer
experience, using customer service as the most important differentiator, interacting with
customers for their needs and value to the business, adopting data driven approach to customer
insights, adopting new channels (e.g. online) etc.
SECTION 2
Porter Five Forces Analysis of Eagle Airways
The porter five forces basically define the five factors and their impact over the particular
company in the term of weak and strong criteria. Here, the strong forces is threat for the
company while the weak force is opportunity and benefits for the company. The five forces are
as follows:
 Threat of Substitute: This is factor which indicate that the customers can easily switch to
the other transport mode such as road, bus and train. It is because of the high cost of flight
tickets. But for the Eagle Airways threat of substitute is weak factor or forces because the