Travel and Tourism assignment : Expedia
Added on 2021-04-21
13 Pages3071 Words40 Views
RUNNING HEAD: TRAVEL AND TOURISMTRAVEL ANDTOURISMFUNDING FOR THE EXPANSION PLAN
TRAVEL AND TOURISM1Table of ContentsIntroduction................................................................................................................................2Objectives...................................................................................................................................2Industry analysis.........................................................................................................................2Market analysis..........................................................................................................................2Relevant sources of finance in context of the expansion plan...................................................3Home equity loans..................................................................................................................3Advantages..........................................................................................................................3Disadvantages.....................................................................................................................3Leverage in retirement funds (penalty and tax free)..............................................................3Advantages..........................................................................................................................3Disadvantages.....................................................................................................................3Small business association (SBA) loans.................................................................................4Advantages..........................................................................................................................4Disadvantages.....................................................................................................................4Friends and family..................................................................................................................4Advantages..........................................................................................................................4Disadvantages.....................................................................................................................4Partnership..............................................................................................................................4Advantages..........................................................................................................................4Disadvantages.....................................................................................................................4Expected cost and benefit...........................................................................................................4Pricing strategies........................................................................................................................5Conclusion..................................................................................................................................6Bibliography...............................................................................................................................7Appendices.................................................................................................................................7
TRAVEL AND TOURISM2IntroductionTravel and tourism industry is growing now a days at fast pace. It may be within traveller’sown country or universally. Also, it serves as a major foundation of revenue for both thesource as well as host countries. For the first time in 2012 the figures of international touristhave crossed the milestone of 1 billion worldwide (Cook, Hsu & Marqua, 2014).This report is prepared in the context of the American travel and Tourism Companynamed Expedia, Inc. It operates internationally and takes into consideration numerous travelbrands, websites and metasearch engines. Moreover, it also includes near about 200 bookingwebsites in 75 countries as well as has listings roughly around 350,000 hotels and 500airlines in number (Expedia, 2018). Expedia stands for exploration in addition to speed.ObjectivesIn the air of rising competition, the aim of Expedia is directed towards addressing thesustainability trend, be a socially responsible group, serving for changing customer likingsand segregate itself in term of services offered. Apparently, Expedia should focus uponincorporation of sustainability hence placing itself as a leader. The offerings of tourismshould be broadened and promoted through its website. Furthermore, there should be anincrement in marketing efforts and maintenance of public relation. Expedia collects daily onepetabyte of data and use that information to target the potential customers (Bushell & Healy,2013). Purposes are inclined towards gaining an elusive form of personalization so that it canplea to millennial. The CEO (Mark okersterom) of the company has the vision of becomingthe world’s leading $100 billion travel agency in upcoming years. Expedia strategy forgrowth is both procurement based and organic in nature. At present about one third ofbusiness operation are operated outside the U.S. and looking forward the Asia pacific regionwill be treated as priority which is expected to contribute near about two third in overallmarket expansion (Chicago tribune, 2018).Industry analysisUndoubtedly, this industry had experienced recession for long period of time. In the mist ofthis lap, the GDP of this industry had decreased by 4.8% in the year 2009 (Hall & Page,2014). Even after such back fall, there has been a tremendous increase showcased.According to United Nations world tourism organisation (UNWTO), it is one of the mostrapidly growing industry in world economy as people travel for both pleasure and business
TRAVEL AND TOURISM3with rising income level and evolving middle class globally. The recovery of economy willbe a gradual one as GDP increased by 0.5% in 2010. UNWTO expects the arrival of 1.6billion per year by the end of 2020. The expansion in this industry is likely to be generated byincreasing focus on the availment of leisure in developed countries which is ahead boosted byinnovation towards creation of sustainable services. The figures of the “fact sheet: globalecotourism” states that 25% of global tourism will be amounting to $473.6 billion revenueeach year. Eco tourism is gaining momentum and showing growth rates of 20-34%contributing the worth of $77 billion in United States (World tourism organisation, 2018).Market analysisIn today’s world, people are cautious on their part to research for and get into vacationsbooking with high penetration of internet. In United States, almost 66% of travellers plan uptheir vacations with the use of internet (Costa, Panyik & Buhalis, 2013). This trend hasbenefitted Expedia in its success stories since 1996. In a survey by Expedia it was revealedthat nearly 84% of customers have a desire to stay at justifiable hotels and they would notmind paying more for services of environment friendly surroundings (Velikova, Murova &Dodd, 2013). In addition, for sustainable tourism there has been always a viable marketing.Travellers believe that learning about new traditions and culture would enhance their travelexperience. The people holidays decisions is highly influenced by the environmentalconsciousness of airlines, hotels as well as tour operators. Due to such mind set, Expediaefforts must address to the preferences of its customers. The hearsays of 2009 trip advisorsurvey shapes that while travelling 52% of travellers faced problems to make environmentfriendly choices and 44% sensed that green choices were not handy. In this regard, Expediacomes as a platform which connect with various options including car rentals, hotel bookings,flights, vacation packages, cruises and expeditions. Hence, it can influence the targetedcustomers by featuring eco- friendly and ecologically cognizant agency readily on its website(Goodall & Ashworth, 2013).Due to the public image Expedia have in the mind set of customers, people will bemore persuaded towards sustainable vacations bookings through its website. Also they havethe privilege of accessing the information added by third party by generating reviews andratings. The occasions for Expedia to capitalize keeps on emerging up as a result of changingpreferences of customers and socially responsible events. The lasting success in the industryis dependent upon the viability and sustainability issue of destinations which will have impactin near future.
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