Decision Making Tools: Online Travel Agent Business for Baby Boomers

This report provides an in-depth analysis of decision-making tools applicable to the establishment of a new online travel agency, specifically targeting the baby boomer demographic. It begins with an executive summary outlining the report's aim to explore the tourism industry, particularly travel agencies, and the decisions required for setting up an online platform. The introduction highlights the characteristics of baby boomers and their preference for online services, setting the stage for a discussion on the impact of online business services, including the use of technology, marketing strategies, and customer relations. The report delves into problem-solving skills, outlining the stages involved in identifying, describing, creating solutions, analyzing, and executing solutions to business challenges. It covers data collection methods, differentiating between primary and secondary sources, and then applies decision theory to various business situations, such as those involving uncertainty, risk, incomplete information, and conflict. The report includes financial calculations and statistical representations of travel agent budgets, and concludes by summarizing the key findings and providing references to support the analysis. The focus is on how to apply decision-making tools to improve business outcomes.

Running head: DECISION MAKING TOOLS
DECISION MAKING TOOLS
Name of the student
Name of the university
Author note

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Executive summary
The aim of the report is to provide an understanding of the decision-making tools while
setting up a new business organization. The report includes the aim and nature of the tourism
industry of travel agent business. To open up an online facility for the newly set up business
it draws out various decision that is required while applying for the new business. It
concludes by giving the effective measures and calculations in order to understand the topic
with more clarity and accurately.

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Table of Contents
INTRODUCTION......................................................................................................................3
Impact of Online business service-............................................................................................4
Discussion..................................................................................................................................4
Impact of technology and online service...................................................................................4
Problem solving skills................................................................................................................5
Data collection-..........................................................................................................................6
Applying decision theory to business situations-.......................................................................6
Conclusion..................................................................................................................................9
References................................................................................................................................10

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INTRODUCTION
The following paper deals with the business setup with respect to travel agent, an online shop
in baby boomers. Baby boomers hold important characteristics like good work ethics, they
are independent and competitive nature, goal oriented, determined and focus on their work,
discipline. The report provides the decision making process and the stages of taking good
decisions in the organization. It also includes various problems and ways of solving them.
The main aim of this business is to target customer for baby boomers with the help of online
services and good technology.

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Impact of Online business service-
Using online source of business mode requires the use of latest technology, modern means of
resources, creative advertisements in order to attract more number of customers (Bagstad et
al., 2013). This will increase the line of supply, enhance the production of the business, and
as a result, business will grow rapidly (Cosenz & Cosenz, 2017).
With the changing times, consumers are more demanding for updated and modern resources
and products (Gayialis et al., 2016). Investments in modern technology with reasonable rates
in the products will attract more customers. When there is customer friendly business and
products, then it leads to the expansion in the line of business leading to more income and
growth of the business (Marjanovic, Dinter & Ariyachandra, 2017).
Discussion
To do online business in relation to the baby boomers then it will be an interesting and a
tough competition for the business and the market. Baby boomers always book their tickets
through online system as it makes them easier to do so their first priority is online apply for
the booking of the tickets. They are the strong buyers and they always have an idea about the
new offerings and premium services related to travel and tickets. As baby boomers are very
much dependent on the online services and technology, therefore this will be more
demanding and encouraging if the business is for the baby boomers (Rosemann & vom
2015).
Impact of technology and online service
Increase in efficiency- Use of online business creates speed and efficiency in the business
transaction.

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Increase in customers- It creates more customers due to advertising effect. It creates more
advertisements on the social sites that lead to more customers.
Increase in production- Due to online mode of business, production also rises because of
more sales growth. This creates more profit and revenue (Seletos & Salmon 2017).
Good relation between the customers and sellers- the interaction between customers and
sellers become easier, faster with accuracy, and more reliable.
More supply within less span of time- As online mode of business creates faster in services
process, and as it is in relation to baby boomers therefore it carets more supply. Baby
boomers are the primary set of customers that means they place a trust factor on the mode of
service and the technology dependant; therefore, it adds a very strong positive impact on the
business and the market in terms of growth factor.
Problem solving skills
To solve a problem, certain stages followed while solving the problem. There are various
stages of problems in the business organization. It includes identifying, description, creation
of various solutions, analysis of the best solution, and execution of the solution. First stage is
to identify the problem; it gives the question of what. The next stage is to understand the
problem in a detail description (Terrenghi et al., 2017). After knowing the problem in a
descriptive way, the next stage is to create various solutions to solve the problem. The last
stage is to choose the best solution and to implement that solution to solve the problem. In
sum, these are the various stages of problem solving at work place.
While setting up new business there are problems that occur. A problem give rise too many
questions like why, how, what and when. The aim of the business is to find out the effective

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solution for the given problems. Problem can be physical, mental or disable depends on an
individual. Problems are uncertain and therefore they are unpredictable (Basole et al., 2016).
Apart from these stages, there are effective communication skills in problem solving skills
strategy. It includes listening, understanding of the problem, free and open minded, friendly
nature. An organization to earn good sales will have to create good image and it occurs when
there is effective communication skills. It includes complete professional conversation
between the stakeholders and the management.
Data collection-
Mode of collecting information can be primary or secondary source. Primary includes the
first hand material or information, also known as qualitative information. The information is
in descriptive format it is qualitative in nature. On the other hand, secondary data are those
that are measured n numbers and figures. These data given already, to source, therefore these
give accurate results or data on the particular topic.
Applying decision theory to business situations-
Decision theory is the process of identifying the problems and solution using strategic
mathematical tools and analysis. It includes risk and gain depending on the level of output or
outcomes. It includes four basic factors that are acts, events, output, and the payoffs. Acts are
the roles or actions performed by the agent, events is the situation in which that action has
been occurred, this action gave certain outcome or output that are measured in terms of
payoffs (Veit et al., 2014).
Two broad categories of decision theory are descriptive form and normative form. Normative
form of decision includes the identification of the decision in order to make the best decision
for stability and accuracy. On the other hand, descriptive decision includes how to make good

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and accurate decision. It includes various methods, tools and analysis and the latest software
in order to support and help the people in making decision.
The decision can be on different kinds of problems that can occur in a business environment.
They are in times of uncertainty, risk situation, under incomplete information, conflict
situation and under certainty. In case of uncertainty that is when business are unaware of
problem that is going to take place and the business owner do not know what to do and what
decision to take (França et al., 2017). In such cases, decision theory strategy used to give
accurate information on the uncertainty. In case of risk, decision theory helps in identifying
the risk factors and gives the measures to solve those risks. Using payoff matrix, it help in
providing optimal decision in relation to that risks. Third areas of problem can be in case of
adequate or incomplete information, in such instances, decision theory suggests various
analysis tools using given adequate information to understand the situation. Under conflict
situation, using game strategy a decision creator anticipates the acts of the opposite player
using his own decision and strategy. Lastly, there is situation when the decision creator gets
the full information and data related to problem; therefore, it becomes an easy task for the
decision creator to make certain strategy with the given options, which finally will give the
decision maker the highest payoff in terms of satisfaction and utility.
With respect to baby boomers, nearly 57 percent visit family and their friends on a daily basis
and 54 percent travel to relax. Nearly 41 percent baby boomers give the priority to stay in
hotel rooms while 15 percent prefers resorts. In case of transportation facility, nearly 45
percent baby boomers want to travel in flights while 43 percent prefers to use cars for their
travel (Wang & Reani 2017).
Therefore creating business in relation to baby boomers will be a positive step in the growth
of the business and the economy. Business of travel agent will achieve a boom in such

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specialization, as baby boomers are the most support and encouraging customers for the
growth and development of this business at its initial phase.
Figure 1: Business Report and calculation
List Type Quantity unit Amount
Flights Transportation 2 600 1200.00
Taxis and buses Transportation 5 30 150.00
Hotel(night stay) Lodging 5 120 600.00
Breakfast and lunch Food 5 45 225.00
Dinners Food 5 20 10.00
Entertainment Entertainment 2 35 70.00
Miscellaneous Entertainment and
transportation
2 20 40.00
Total expense 2295.00
Figure 2: Statistical representation of Travel agent budget
Sources: Created by author
Transportation
Transportation
Lodging
Food
Food
Entertainment
Entertainment and
transportation

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Conclusion
The report provides a brief overview won the travel business industry in respect of baby
boomers. It gives various stages of problem solving skill along with different problem of the
business. The report discusses decision theory and its various strategies in different situations.
It evaluates the business problems using data collection process and decision-theory process.

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References
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