Travel and Tourism Business Analysis: Contiki Case Study

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Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................3
Travel / Tourism Business Analysis and Planning......................................................................3
Task 2.............................................................................................................................................11
Travel / Tourism Business Staff Evaluation and Development.................................................11
Conclusion.....................................................................................................................................16
References......................................................................................................................................16
1

Introduction
In task 1 of that report, the analysis will be done on the objectives of a tourism business which
will relate to its vision and mission. The internal and external analysis will be conducted to know
the current position of the company and the factors affecting the performance of the company.
The SWOT and PESTLE analysis will help in identifying the impact of the internal and external
factors of the company along with with this the effectiveness of a tourism business will be
identified. This report will also include the improvement areas of the business and a necessary
business plan will be developed to make improvements in the organization. In the last of this
task, a conclusion will be written which will define the key analysis of the task.
In task 2, the current skills of managers and staffs will be identified to know the requirement of
future skills. A staff skills audit will be done in finding out the improvement areas of the skills
and current skills level of the staffs. Further, a development plan will be described to develop the
effective future skills of the managers and staffs.
2

Task 1
Travel / Tourism Business Analysis and Planning
A. Introduction
Contiki is a British travel and Tourism Company of the United States established in 1962 and
attracting the age group 18-35 year people to purchase their services. The company is creating
the best travel experience among its customers. The company is providing services like food,
transport, experiences and accommodation for potential customers (Contiki, 2019).
B. Objectives of the business
Every kind of business has some objectives which are to be achieved by the organization within
a certain period of time. The travel and tourism industry is concerned with providing better
customer experience with their offerings in order to achieve some specific goals or objectives of
the organization. Some goals or objectives of the Contiki organization are as follows:
To provide tourism services
The main objective of the business is to provide best travel experience to the young customers
and they provide various accommodation, food and transportation services to their customers so
that they can feel relax and enjoy their trip (Smith, 2014).
Increase revenue
The company is selling its travelling packages at a reasonable price to its customers to achieve
higher revenue from its offerings. The Contiki Company wants to generate higher sales or
revenue from selling its services in the market (Boniface,et.al, 2016).
Increase in customer satisfaction level
Contiki organization is creating a unique customer experience in the mind of customers through
its attractive offerings and increasing their satisfaction level which would result in generating
more sales for the company (LIANG, et.al, 2010).
An increase of 10% in reaching more customers by the next year
The Contiki organization wants to have an increase of 10% in reaching its total number of
customers by the next year and want to attract a large number of audiences with its offerings and
to sell them the company’s services
Increase of 10% profit by the next year
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Every organization aims at profit-making and operates its business activity in the market. The
Contiki organization wants to achieve higher profit and for that purpose, they have established
the objective of a 10% increase in profit of the company by the next year.
Higher market share
Market share relates to the size of the market a company selling its services, the company wants
to increase its market share with an increase of 8 per cent in the total market share (LIANG, et.al,
2010).
Unique travel experiences
The Contiki organization is providing exclusive trips for the age group of 18 to 35-year-old
people to share the incredible travel experience with the young generation.
Branding and positioning
Another objective of the company is to create the branding of the organization by providing best
travel experience to the customers so that they can make repeated purchases of the services and
that would also help in creating the position of the company in the mind of the consumers
(Morrison, 2013).
C. SWOT and PESTLE analysis of the business
The internal analysis of the business can be done by SWOT technique which helps in finding out
the strength, weakness, opportunities and threats available for the business (Helms and Nixon,
2010). The external analysis will help in identifying those factors which exist outside of the
organization and impacting the operations of the business. The PESTLE analysis can be
conducted for identifying the external factors (Aithal, 2016).
The SWOT analysis of the company is presented as follows
strength weakness opportunity threat
Exclusive travel
services for the age
group of 18-35 years
people
The Contiki company
is receiving higher
competition in the
contemporary
business environment
The company is
adopting effective
environmental
policies and that
creating a good image
of the organisation in
the market
The entrance of new
travel industry is a big
threat for the Contiki
company
Creating unique and
real travel experience
and attracting more
customers
The company’s
newsletters are not
regularly published
The Contiki
organization is part of
the TTC family of a
brand and because of
this company is able
to achieve higher
Lack of availability of
other facilities at the
destination discourage
people not to make
the purchases of
services
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market share
Contiki organization
is highly focused on
sustainable
development of the
company
The company is not
growing fast because
of the lack of
availability of the
resources
The company is
leading in 6
continents with its
350 trips offerings
and able to attract a
higher number of
customers
Government has no
interest in making an
investment in various
destination places and
that is impacting the
organization
The company is
gaining a large
number of customers
through providing its
services in Asia,
Europe, and the USA
and many other
countries
(Destination, 2019)
Lack of infrastructure
and less availability of
the information as
well as reviews of the
customers are not
justified
Achieving win over
its competitors
through adopting
effective sustainable
strategy and
development program
(Reihanian, et.al,
2012)
The Contiki
organization is
providing a travelling
facility in Europe and
the economic crises of
Europe affecting the
business operations
PESTLE analysis for the Contiki organisation
Political factors
The political actions and stability of the government are the most critical factors which are to be
determined in order to know the image of the destination which attracts customers. Terrorism
and violence impact the Contiki organisation and creates threats for them. The political
instability will bring serious consequences for the tourist of different countries.
Economic factors
The fluctuation rates of different currency, changing lifestyle of the consumers and higher
disposable income affecting the marketing supply of the services. The economic growth and
development of one destination region are impacting the sales of the Contiki organisation.
Social factors
Changing demand, standard and cost of living of the people are affecting the demand for travel
and tourism services. The changes in demand may enable the Contiki organisation to produce
innovation in the organisation and it may also reduce the demand of the tourism services
(Zalengera, et.al, 2014).
Technological factors
The entrance of new technology in the tourism sector like new bus, train, airlines, and hotels are
impacting the Contiki organisation. These technologies encourage a company to adopt the new
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one to create better customer satisfaction while it may require a higher cost to use these
technologies in the organisation (Zalengera, et.al, 2014).
Legal factors
Every travel organisation has to follow the rules and regulations of the government. The Contiki
organisation should keep in mind the rules and regulations of the different countries while
operating their business within them. Favourable rules and regulations create an opportunity for a
business to import or export the supply within different countries (Srdjevic, et.al, 2012).
Environmental factors
These factors have a high impact on the travel business. The climate condition and changes in
the climate of different countries may restrict the Contiki organisation to send its customers at a
different destination. For example, if an area there is a possibility of heavy rain then the company
will not sell the travel packages of that area and that will impact the sales of the Contiki
organisation (Srdjevic, et.al, 2012).
D. Impact on the business
From the above-presented SWOT and PESTLE analysis, there are many factors could be
identified to know their impact on the business of Contiki organisation. Customers are the great
source of generating income changes in the demand of the customer impacts the sales of the
organisation. In the travel and tourism sector competition is usually high so the increased
competition and entrance of new organisation will impact the performance and profitability of
the organisation (Goodwin, 2011). The quality of the services matters a lot because it helps in
maintaining customer loyalty and customer satisfaction and also differentiates them from
competitors. The Contiki organisation selling and marketing its services using social media and
other online media platforms and that is resulting in reaching a large number of global
customers. The climate condition impacts the supply of the services in the market and favourable
rules of the government increase the supply of the product in the different global market. Use
new technology bringing out new opportunities for the company because it is reducing time and
energy but at the same time it requires a higher cost. The political instability may become a
barrier in the fun, leisure of the tourists so the Contiki organisation should apply the effective
strategy to make balances with these factors (Team, 2013).
Hence, the Contiki organisation should increase the awareness of the internal and external
environment factors to know its positive or negative impact on the company and that will
encourage the organisation to formulate suitable nosiness strategy to cope up with these factors.
That is essential for the success of the Contiki organisation and to achieve competitive
advantages. The growth and development of the company are largely depending upon these
factors because they help in to identify the current position of the company and also help in
forecasting the future growth of the Contiki organisation (Bocken, et.al, 2014).
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E. Review on the effectiveness of the business
The Contiki organisation is providing various deals at different discount rates to sales its
products and services to the customers. The company is basically providing services of tour
packages which include accommodation Delicious meals with best travel experiences. The
company is promoting its services by providing different discount offers. The company has hired
many managers and guide to provide support and help to the tourist and they go along with the
tourist to create the best customer experience. The company is launching various sustainable
tourism development programs for the development of the tourism industry in all over the world.
They are encouraging their customers to give a focus on the sustainability of the environment
(Contiki care, 2019).
Products and services offered by the Contiki (collections, 2019)
 Adventurous spots
 Beach holidays
 Backpacking
 Bus tour
 Camping
 Food travel
 Group travel
 World tour
 Cruise and dive holidays
The Contiki organisation is generating the revenue of $50 M and its estimated employees are
279. The competitors of the company are musement and peek travel and the company is able to
achieve higher competitive advantages with its offerings in the market. The company is
marketing its products using the social media platforms the company has 31.6K followers on
Twitter (Contiki, 2019). The company is operating its business in Russia, Japan, and Australia
and 3 other continents and serving a large number of customers and also generating a higher
profit in the market (destination, 2019). Now the company is aiming at gaining higher market
share and higher profit by adopting an efficient marketing strategy for the business. The
company is providing its services at low prices to increase the sales of the company which is
ensuring the financial growth of the company.
Hence the performance and growth of the company are increasing day by day but some
necessary action should be taken by the management of the Contiki organisation to ensure its
long term success and growth in the wide market.
F. Determination of potential improvements that could be made to the business
No organisation is perfect in terms of operating its business activities. All organisations are
required to make necessary improvement in organisational process, structure or in other areas. In
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today's market challenging environment, a company should be flexible enough to adopt the new
changes in the organisation (Sevkli, et.al, 2012). As the analysis was done above regarding the
strength, weakness, threats and opportunities exist within the Contiki organisation that analysis
helped in finding out the improvement areas of the company and also the PESTLE analysis was
helpful in identifying the improvement areas of the business. These are some potential
improvement done by the Contiki organisation to achieve market competition and the business
objectives.
Effective promotion strategies
The continuous advertisement posting on social media about the products and services of the
Contiki organisation will help in reaching a large number of audiences. The customers make
purchases from the website so the design texture and exterior of the website should attractive to
attract the audience.
Effective pricing strategy
The Contiki Company can increase the demand for the services by lowering its price that would
help in enhancing customer satisfaction and will attract them to buy more services. Increased
purchases of the services will help in achieving a higher profit for the company.
Increase in the resources of the company
The company can increase its resource bringing new technologies in the business and hiring of
qualified tour guide and director can also increase the performance of the overall organisation.
The company can establish a relationship with the other countries to increase the number of
destination places in their records and they should include more packages to satisfy the customer
needs.
Increase Quality products and services
The Contiki Company should give focus on the quality of the services like luxurious
accommodation facility, tasty and delicious food and other qualitative services which would
create the best shopping experience of the customers. Best quality of the services would help in
achieving the competitive advantages
Best customer services
The customers are the main assets of every organisation because they are the only source of
income for any organisation. The company should hire the best customer service executive to
provide proper guidance and support to the tourist while they travel. The best customer
experiences can be created by giving the best travel experience, pleasure, and easy availability of
the facilities, time to time direction and communication to the customers. Enhancement in the
customer experience will help in achieving a brand image of the Contiki organisation.
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G. Development of the business plan for improving the business
The above-mentioned improvement can be done by developing an effective business plan for the
Contiki organisation. The business plan involves following steps are presented as follows:
Resources required
The company should hire some personnel for the business like new qualified and skilled
employees for the organisation, for example, a tourist guide they will help in providing better
customer experience and the productivity level of the organisation will also get increased. Apart
from the human resources the company also need some other resources like availability of new
destination holiday packages, availability of the different food items, availability of the new bus,
airlines, hotels, spots and cars for travelling etc. that will attract the customers to purchase more
services of the Contiki organisation (Stutely, 2012).
Finance and financial management system
Finance is necessary to carry out any business related activity. The adequate budget should be
determined to operate recruiting and hiring related activities as well as it will require a higher
cost to bring new technology in the business so the company must be able to ensure the sufficient
supply of the finance in organizing all the business activities. The management of finance will be
done by the finance department of the Contiki organisation.
Marketing and quality management
Efficient marketing and promotion technique should be applied by the organisation to promote
and sell the products among a large group of people. The marketing related function can be
performed through using the website, online advertising, newsletter, magazine, TV and
newspaper.
The services should be designed in that way that It can capture the customer attention for that
purpose attractive design of hotel infrastructure, luxurious room services, sustainable destination
environment should be maintained by the Contiki organisation.
Action planning
If the company wants to achieve its objective of the increase in the sales by the next year
following action should be taken by the Contiki organisation. The company should adopt
effective marketing strategy changes in the market mix elements will help in increasing the sales
of the business. the marketing department of the Contiki organisation will take responsibility for
the increase in sales and it will take 1 year to accomplish the objective by the combined efforts of
the management. The company must have an adequate budget for promoting services through
online and traditional media. In the end, the management of the company should evaluate the
total sales of the year and measure it with predetermined standards.
9

Action step Responsible
person
deadline Resources
required
Potential
challenges
result
Increase in
sales
Marketing
manager
1 year Promotion
tools, human
resources, new
technologies
High
competition,
low market
coverage
Increase in
sales by 10%
Better
customer
relationship
Customer
relationship
manager
3 month Communication
technologies,
quality services
Competition
and lack
availability of
the adequate
resources
Enhanced
customer
service level
Best
customer
experience
Customer
relationship
executive
2 month Coordination,
support and
guidance
Improper
communication,
false
information
Best
customer
service
experience
Availability
of the
adequate
services
Production
manager
4 month Raw materials,
equipment and
technology
Climate
conditions
Sufficient
supply of the
demand
Risk management and timescale
Many kinds of risk arise while conducting any business activity. The management of the Contiki
organisation must be able to manage the risk of the business so that it cannot affect the
performance of the organisation. The management should also ensure that all tasks can be
accomplished within a certain period of time. The result of the action plan should be measured
after its completion with the predetermined objectives. Time management is an important part of
the business organisation all the activities should be completed within a given period of time to
get success in the market (Zairi, 2012).
Conclusion
From the above discussion, it is concluded that every organisation establishes some objective to
fulfil it by conducting business in the market. To achieve the business objectives effectively a
company must analyse its internal and external environment to know its strength, weakness,
opportunities and threats presented within the organisation. The internal and external
environment factors have a large impact on the company and its operations which could be
negative or positive depends upon the nature of the factors the performance of the firm is highly
affected by these factors. Further, it is also can be said that the effectiveness of the business can
help in identifying the current position of a business and improvement suggestion can be
provided on the basis of internal and external analysis of the company. It is also clear the
business plan can be developed and applied to make improvement in the current condition of the
organisation.
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Task 2
Travel / Tourism Business Staff Evaluation and Development
I. Introduction
The Contiki is also known as Contiki tours organisation the United States and it provides
transport services, planning tourism and food services for the tourist of different nations. The
company is attracting young generations only by restricting its services to the age group of 18-35
year only. The company is creating a unique travel experience by including solo travellers, group
travellers and others.
J. Staff skill audit
This includes evaluation and examination of skills of the staffs of the organisation which are
used by them to perform their job roles. Skills present a set of attributes which is used by the
people of the organisation in performing their day to day tasks. The staff audit will be done here
for Contiki organisation to assess the skills of the staffs.
Ratings 1 2 3 4 5
Technical
skills
Knowledge of
internet

Knowledge of
IT tools like
EPM

Database
management
system

MS office and
coral draw

Operational
skills
Communicatio
n skills

Conflict
management
skills

Leadership
skills

Time
management

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