ATAT5001: Analyzing EasyJet's Strategies & Tour Operations Sector

This report provides an in-depth analysis of EasyJet's strategies within the travel and tourism industry, examining factors influencing passenger travel decisions, the company's competitive strategies, and the structure of the tour operations sector. It explores Porter's Generic Strategies and recommends differentiation for EasyJet to gain a competitive advantage. The report also delves into the types of tour operators, industry structure, and the retail travel environment, including the role of retail agencies and their relationships with suppliers. Furthermore, the document looks into the impact of legislation and trade bodies on the travel industry. Desklib is a website where students can find similar past papers and solved assignments.

Running Head: Travel and Tourism 0
EasyJet
Travel and Tourism
(Student Name)
11/27/2018

Travel and Tourism 1
Table of Contents
Introduction................................................................................................................................2
Part 1..........................................................................................................................................2
Factors Influencing.................................................................................................................2
Recommended Strategies for EasyJet....................................................................................3
Part 2..........................................................................................................................................3
Porter Generic Strategies........................................................................................................3
Recommended Strategy adopted by EasyJet..........................................................................4
Advantages..........................................................................................................................4
Disadvantages.....................................................................................................................4
Part 3..........................................................................................................................................5
Types of Tour Operators........................................................................................................5
Industry structure....................................................................................................................5
Business Structure...............................................................................................................5
Major as well as independent Operators................................................................................6
Market Share and porduct or services provided.....................................................................6
Legislation and role of trade bodies.......................................................................................6

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Part 4..........................................................................................................................................7
Retail travel Environment and role of retail agencies............................................................7
Type of retail agencies............................................................................................................7
Products and services.............................................................................................................7
Relationships..........................................................................................................................8
Integrated- vertical and horizontal......................................................................................8
Agency Agreements............................................................................................................8
Preferred Agents.................................................................................................................8
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
Tourism is travel for recreational, leisure as well as the purpose for business (Weiss and
Dupont, 2016). Tourism is one of the biggest industries in the UK. It is predicted that tourism
in the UK could grow to $200 billion within the next decades which is 60% by 2020 (Sirgy
and Uysal, 2016). In the tourism industry, EasyJet plays a prominent role to attract maximum
customers. It is one of the leading companies in the aviation industry. In the changing
environment, the company like EasyJet as well as other tourism agencies are greatly affected
(Filimonau, Dickinson and Robbins, 2014)
In the following part, there will be a detailed discussion on the factor influencing the choice
of traveling among passengers as well as the role of travel agencies as well as operators in the
competitive world.
Part 1
Factors Influencing
There are certain factors, which greatly influence the decisions of passengers in traveling.
Price
Price plays a prominent role in decision making of the passenger for traveling. The minimum
fare of airline helps the passengers to make a plan for traveling. The major reduction in the
price of the tickets by the airlines is through a reduction in the cost of the operation. The low
flier consumers, as well as medium fliers consumer, look into the fare very aggressively with
the reason of the absence of brand preference as well as unawareness of service which are
provided by the industry of airlines in the market (Hsu et. al.,2016)

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Appeal
The appeal also influences the choice of traveling among consumers. The way of appealing to
the airline industry can affect the demand of consumers. As most of the airlines, as well as
traveling operator, provide various kind of services to their passengers which greatly
influence the choice of traveling among the consumers.
Convenience
The convenience is also the major factor to influence the choice of passengers for traveling.
The swift expansion of the internet has distorted the manner citizens search the information
about the tourism service. The merchandise information, as well as proficiency or
acquaintance, seems more influence the search actions of travelers. It makes the convenience
for the passenger to search about the information of airlines as well the quality services
provided by the airlines are also the great influencer of traveling for the passengers (Hyun
and Han, 2015).
Prior experience
The prior experience of flight, as well as destination, created a great impact on the traveling
of the passengers. If, the passengers have a prior bad experience of place as well as the flight
would make them feel regret to take the same experience. In that place, if passengers have the
great prior experience they would love to visit that place again or from that airline in which
they have a great experience prior.
Purpose of trip
The main ingredient of influencing the preference of traveling among passengers is the
purpose of the trip. If the trip of the passenger is related to business then it does not affect the

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choice of traveling, but if the purpose of the trip is to enjoy the leisure time then it greatly
influences the traveling of the passenger due to the reason that these passengers have an
option to travel or not as well as where to go. These questions greatly affect the demand for
traveling among the passengers (Morris and Guerra, 2015).
Recommended Strategies for EasyJet
Location
They can expand their presence in the market of international. The USA is a vast market to
expand the business, therefore; they can increase their international flights in the USA.
Low Fare
The tariff of EasyJet is quite near to the ground as contrast to additional competitive airlines
but not as stumpy as a contrast to Ryanair. Thus, the business can try to reduce their
operating cost, which helps in maintaining their low price in a competitive world (Lawton,
2017).
Brand Awareness and Strong Reputation
The company EasyJet can focus on making a strong reputation in a competitive environment.
The brand awareness, as well as a strong reputation, helps the company to appeal the
passengers in an effective manner by providing effective services to them.
Product Differentiation
The no weight restriction for cabbing baggage as well as flexible ticket scheme also can make
the EasyJet deliver quality service to their services, which can help in improve the experience

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of passengers as well as made them influence to make a purpose for the trip (McLachlan,
James, and Hampson, 2018).
Part 2
Porter Generic Strategies
(Source: Nedelea, 2018)
Cost Leadership
The price leadership strategy pertains to maintain to accumulation manufacture of particular
goods to lower their price tag. The mechanized of huge volume of products leads to a
decrease in the overall cost of the product. In the recent scenario, it has been analyzed that
low-cost fare, as well as the mid-range price of airlines, are appealing more to the customers
Differentiation
It is the process in which, the company needs to differentiate their product to enjoy a
competitive advantage. It creates products that are being packaged as unique. The new
changes in the aviation sector have distorted the need of the consumers.

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Focus
The focus strategy cannot deal or effort by yourself; hence, it shall be teamed with price
leadership or separation plan. The focus can be done on a niche market as well as can able to
understand the dynamics of the market (Bertozzi, Ali, and Gul, 2017).
Recommended Strategy adopted by EasyJet
The strategy of Porte Generic is mostly using to enjoy the competitive advantage; it would
help the company to compete in the competitive world. There are various kinds of business
strategies that would help EasyJet to proactive competitive advantage. The company can
adopt the strategy of differentiation to enjoy the competitive advantage. In the industry of
airline, most of the companies have similar products as well as services, therefore; the little
changes in their service would help in differentiating their product with other competitors.
EasyJet can offer flexible as well as customized services to their customers. The passenger
would sense pleased if they are accessible services of their choice that would help in raising
the level of happiness among customers. The company can provide the access of house bar
area as well as spa to their upper-class passengers. They can even provide an option to book
a limousine or motorcycles for airport transfer, which would help them to differentiate their
products or services from others (Flouris, T.G., and Oswald, 2016).
Advantages
 The differentiation strategy would help the company to compete in the competitive
market that would help in target maximum customers.
 If EasyJet delivers, the product as well as services according to the requirement of
their passengers will lead in enhancing the level of customer satisfaction.

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 The differentiation strategy would attract maximum customers in the competitive
industry that will increase the profit margin of EasyJet.
Disadvantages
 The strategy of differentiation would increase the cost to the company because the
overall expenditure on differentiating the products would be quiet expensive.
 The differentiation strategy would also increase the risk of success with the reason
that each customer has different needs and preferences, therefore, to analysis, the need
would be tough for the company.
 The company already adopted cost leadership strategy, the strategy of differentiation
increase the cost to the company, which directly affected on the cost leadership
strategy as the fare of the company would increase by an increase in overall cost.
Part 3
Types of Tour Operators
There are diverse kinds of travel around operator, which are explained in the below points:
Outbound Operators
Operator sales package of the travel around to a person or cluster of citizens of their own
nation to another countryside for a precise phase. They provide the facility of
accommodation, transportation, as well as local sightseeing with other services in the tour
package.
Inbound Tour Operator

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Those operators who make available local support for tour incoming in their nation or town is
recognized as inbound tours. These companies provide the service of pickup or delivery from
or to the airport, arrange activities, attend all the details of the stay as well as hire a local
guide for them (Giaoutzi, 2017).
Domestic Tour Operator
The operator of domestic tour operates within the boundary of home country as well as
served the diverse need of individual as well as group travelers. The operator can offer the
tour of the national park to their customers.
Direct Sell Operators
Theses operators direct sell their packages to the customers rather than to sell their products
to tour agent because this can offer great value. Such operators will provide the package on
cheaper rates to the customers.
Specialist operators
The expert operator provides services to the place souk that has attention in a particular
environmental area or a particular type of movement.
Mass Market operators
Mass-market tour operator purchases the services in huge amount from the suppliers then
cater them to their customers in low price the other in the market (Mowforth and Munt,
2015).

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Industry structure
Business Structure
The structure of the business is divided into six components of sectors such as:
Tourist Attraction- the attraction depends on the location visited by the tourist
Transport- to reach out as well as arrive at the destination required transportation. The
transportation could be through train, car or flight.
Accommodation- it is available when the tourist needs to stay more than one day while
visiting the destination. It could be a hotel, guesthouse caravans.
Tour Operators- the travel around operator unite this mechanism into a put together, which
fulfill the necessities of consumers and then refer to the journey manager.
Travel Agent- they earn a small commission for providing services as well as sold holiday
broachers to the consumers.
Tourism and development- these are located all over the nation with ensuring so as to the
potential guests learn of their position as well as all it has to present by wide advertisement
and promotional job (Boniface, Cooper and Cooper, 2016).
Major as well as independent Operators
There is a number of tour operators, which provide a number of services as well as packages
to their customers. By searching on the internet, it has been identified that there is a number
of the organization in the UK, which provide special holiday packages as they are:

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 ResponsibleTravel.com- these organizations provides family holidays for their
customers. They offer a number of packages to their customers such as Self Catering
Accommodation for 3 or 4 populace.
 Travel Navigator- this place helps the customers to discover various letters in
different site, which made the facility of comparison between different sites at one
place.
 Thomson- this operator also offer packages of a holiday in diverse level such as
relatives holiday, health resort holiday, luxury holiday as well as a cheap holiday
which helps the customers to select the desired package (Camilleri, 2018).
Market Share and product or services provided
The big players in the industry of Travel and tourism have occupied more than eighty percent
of the market share of the tour operator. The Thomas accounts for twenty-eight percent of
total market share while My travel Group has twenty-one percent of market share and First
Choice has market share of seventeen percent of market share. The operators mainly provide
products or services of accommodation, reservation, guided tours, as well as transport
facilities to their customers (Eugenio-Martin and Inchausti-Sintes, 2016).
Legislation and role of trade bodies
ABTA- It is the most important travel friendship in the UK. The main purpose of this
association is to assist their members to raise their industry sustainably as well as
successfully. It also helps their customers that are traveling public which enhances the
confidence of their customers.
AITO- the friendship of sovereign tour operators represents as an umbrella association that
represent additional than 120 most excellent autonomous travel around operators in Britain.