Understanding the Business and Economic Environment in the Tourism Industry

Understanding the
Business and Economic
environment The
Tourism Industry

Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
The economic environment means all the factors of economy that affects the commercial
and consumer behavior which influence the buying habits of the customers and companies
therefore it has an impact on the operations of the business organisation. The term business
environment means all the individuals Institutions and other forces that are outside the control of
the business enterprise but have an effect on the operations of the business (Chen, Lin and
Chang, 2017). These factors can be either large scale or small scales. This essay reports talks
about British Airways which was founded in 1974. The headquarter is situated in London. The
company is dealing with the services with respect to the tours and travels. The company has
expanded it services into the Global with the help of digital media marketing. The report is being
discussed about the structure of the industry and STEEPLE model is used to determine the
external factors. Further, the micro factors which affects the demand and supply of goods and
services. Competitiveness of a market and its impact on the business is discussed. Lastly, the
problems are discussed which are faced bunches company during the last year's.
Main body
Tours and travellism is is a business where the companies use to attract their customers
with the help of providing accommodations and entertaining tourists while operating the tours.
The British Airways is the Flag Carrier airline of the London. It is the second largest in terms of
fleet size, international flights, and international business UK based career Airlines was founded
in 1974. The company has very strong business trends but in this pandemic situation the Airways
has produce their employees by 12000 jobs. It is expected while seeing the current scenario that
it will took several years to return to the previous performance and level of profitability (Chen,
Suntikul and King, 2020).
STEEPLE MODEL is used to determine the external factors which affects the operations
of the company. Social factor includes the demographic changes which are playing and
significant rule in the contest of the aircraft industry. British Airway not only maintained the
customer experience but also focuses on the operations and impact on the social image. In this