Analysis of Macro Environment Factors Affecting Thomas Cook's Business

This report provides an analysis of the macro environment affecting Thomas Cook, a UK-based travel company offering flight and hotel packages. The report explores several key areas, including the socio-cultural environment, such as the growth of online purchases and the trend of staycations, which present opportunities for increased online sales. The physical macro environment is examined, including the company's user-friendly websites and its hotel portfolio. The legal and political macro environment is also discussed, emphasizing the importance of compliance with international laws, taxation, and the impact of political relations between the UK and other countries on travel suitability. The report concludes by highlighting the significance of these macro-environmental factors in shaping the travel industry and the need for companies like Thomas Cook to adapt to changing conditions to maintain profitability and meet consumer demands. The report draws upon academic sources to support its claims.

MACRO
ENVIRONMENT OF
THOMAS COOK

Table of Contents
INTRODUCTION...........................................................................................................................3
Socio cultural environment of Thomas Cook.........................................................................3
Physical macro environment of Thomas Cook......................................................................3
Legal and political macro environment of Thomas Cook......................................................3
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................5

INTRODUCTION
It is important for business firms to gain information about the macro environment. This is
because, it helps enterprises understand the opportunities and barriers present in the business
world. The present report includes information about macro environment of Thomas Cook.
Thomas Cook is UK based company which provides flight and hotel packages and hotel only
bookings. This report includes description about soccio cultural, physical, legal and political
macro environment of Thomas Cook.
MAIN BODY
Socio cultural environment of Thomas Cook
There is a growth in online purchase of holiday packages among consumers. This socio cultural
trend is beneficial for Thomas Cook as it could result in increased online sales of the firm. In
addition to this new social tends such as staycation can be used by the respective company to
attract local consumers to their site (Kansal and Khurana, 2018)
Physical macro environment of Thomas Cook
Thomas Cook provides Hotel booking and holiday packages services from their user friendly
websites which is updated on a regular basis. In addition to this Casa Cook Hotels and Cook's
Club Hotels are a part of the brand portfolio of the company. These hotels provide lodging
services at various tourist location all over the globe (Tungsten, 2017). Consumers are looking to
gain immersive experience from travelling which is another change in macro aspects of the
company affecting decision making at Thomas Cook.
Legal and political macro environment of Thomas Cook.
Thomas Cook operates on a global scale and has to ensure that the company complies with the
legal system of the country. In addition to this, Thomas Cook has to ensure that guests in their
Hotel are not doing any activities which are considered illegal by the land of the law. The
company has to ensure that each consumer understand the legislature of the country they are
visiting. Apart from this the taxation structure of the nation affects Thomas Cook as they have to
pay taxes in order to conduct business activities in a lawful manner.
The political macro environment of Thomas Cook is affected by the political relations between
UK and other nations to which the company provides travelling services. If the political relations
between UK and other countries to which the consumers if Thomas Cook are traveling is

damaged, the consumers have to face the negative impact. Thomas Cook needs to take action if
the damaged political relations between UK and certain country decrease the suitability of that
region for British travellers (Weir, 2017). This helps the respective firm ensure that none of their
consumers are traveling to possibly dangerous and unsafe locations.
CONCLUSION
From the above report it is determined that travelling firms are affected by various factors
present in their macro environment. The socio cultural changes of the macro environment affect
the profitability and dictate consumer travelling trends. The political and legal macro aspects
associated with the travelling firm affect the way in which company works and reception of the
consumers in across international border of UK.

REFRENCES
Books and Journals
Kansal, P. and Khurana, A., 2018. The profitability of Indian tourism sector: A fixed model
panel analysis. PRAGATI: Journal of Indian Economy, 5(1).pp.66-80.
Tungate, M., 2017. The escape industry: How iconic and innovative brands built the travel
business. Kogan Page Publishers.
Weir, B., 2017. Climate change and tourism–Are we forgetting lessons from the past?. Journal of
Hospitality and Tourism Management, 32. pp.108-114.