In-depth Analysis: Thomas Cook Travel Agency Business Strategy

This case study provides a critical analysis of Thomas Cook Travel Agency, examining its objectives, strengths, weaknesses, opportunities, and threats through SWOT and PESTLE analyses. The study reviews the effectiveness of the business, identifies potential improvements, and briefly proposes a business plan for enhancement. It covers aspects like brand equity, global presence, and pricing strategies while also addressing weaknesses such as limited market share and long-term debts. The analysis further explores the impact of political, economic, social, technological, legal, and environmental factors on the business. The report also touches upon skill evaluation of key managers and staff, alongside a plan for skill development and key recommendations for the travel/tourism business.

Running Head: CRITICAL ANALYSIS OF THOMAS COOK TRAVEL AGENCY
Critical analysis of Thomas-Cook travel agency
Name of the student
Nam of the University
Author’s Note

Table of Contents
1. TASK 1:...................................................................................................................................3
a. Introduction, which includes a short description of the selected travel or tourism business...3
b. Analysis of the objectives of the case study business. A merit level analysis will consider
how well these relate to the stated mission, vision, goals, priorities, etc. of the business...........3
c. SWOT and PESTLE analysis of the business?........................................................................4
d. Explanation of the different factors which impact on the business, based on the SWOT and
PESTLE analyses?.....................................................................................................................11
e. Review of the effectiveness of the business?.........................................................................12
f. Determination of potential improvements that could be made to the business, based on the
SWOT, PESTLE and market analyses that have been carried out?..........................................12
g. Business plan that you have developed for improving the business. This plan must be
justified?....................................................................................................................................13
h. Conclusion with summarises the key points of your analysis and the main proposals for
improvement?............................................................................................................................13
2. TASK 2:.....................................................................................................................................15
i. Introduction, which recaps the short description of the selected travel or tourism business?15
j. Evaluation of the current skills of key managers and selected staff?.....................................15
k. Plan that you have devised for developing the skills of key managers and selected staff?...16
l. Conclusion which summarizes your key recommendations for the travel / tourism?............17
References......................................................................................................................................18

1. TASK 1:
a. Introduction, which includes a short description of the selected travel or tourism
business.
The chosen company of the discussion of the topic is the Thomas Cook Travel Agency. It
is a travel and tourism-based business firm that has been operation for a longer period of time.
Speaking in terms of their business activities, it ranges from that of the hospitality services. On
the other hand, it also provide an international tour to the required ones (Thomascook.com,
2019). Besides, they even carry on the hassle-free task of booking the desired flights and hotel
booking for the clients upon their request. They make a number of efforts towards the
achievement of their consumer satisfaction.
The business firm was inaugurated in the year of 2007 on the 19th of June. It was
Thomas-Cook who established the travel agency with the aim to serve the consumer market and
those who desire to enjoy a pleasant time with the family and that of the belonging ones.
Speaking in terms of their services, it ranges from that of the foreign exchanges, international
and that of the domestic holidays, Insurance of Visa, Passport, Availability of travel insurance
and much more others. It extended over the 233 different regions of the country with the change
in time (Thomascook.com, 2019).
b. Analysis of the objectives of the case study business. A merit level analysis will consider
how well these relate to the stated mission, vision, goals, priorities, etc. of the business
Mission: The missionary statement of the concerning business firm is “Travel is the only thing
you buy that makes you richer”. They were to occupy a major proportion of the consumer market
and to obtain their satisfaction for the sole purpose of obtaining a bulk of loyal consumers from
the potential consumer market.

Vision: Speaking in terms of their visionary goals, they have a strong desire to be one of the
reputed and qualitative firms within the travel and tourism industry. On the other hand, the
business firm even aims to penetrate within the international boundaries in order to reach the
international market demands.
Goals: They operate on sustaining the three of the aspects they are as quality, service, and
reliability (Thomascook.com, 2019).
Quality, they claim themselves to be one of the passionate business firms in the field of
travel, and they claim that they have a huge presence of professional experts that any rival firms
strive to get.
Service, they make use of the team that is present all time to look after the concern of the
consumers.
Reliability, they care for a number of issues that takes place over time and try to
eliminate those issues in the near era of time.
Priorities: They give immense priority to the consumer feedback; they obtain this set of
feedback from the online market presence as well as from the physical presence of the consumer
market (Thomascook.com, 2019).
c. SWOT and PESTLE analysis of the business?
The SWOT analysis of the concerning business firm is as follows:
STRENGTH - The presence of brand equity and that
of the goodwill that exists within the
taste of the consumer preference.
- One of the biggest and oldest business
firm that has been able to sustain for a

longer period of time. This time
period has helped the firm to obtain
the faith and loyalty of the consumers.
- Speaking in terms of its pricing
strategy, the firm has been able to
serve services at an affordable price,
and that is possibly accessible by the
consumer market (Buhalis et al.,
2014).
- Availability of global presence, since
the firm makes use of the internet a
well as a physical platform. There lies
huge potential for the firm for future
business prospects.
WEAKNESS - The firm has a limited market share in
comparison to the overall consumer
individuals.
- The long term debts for the
concerning business firm is one of the
biggest headaches and may even lead
to the failure of the business.
OPPORTUNITIES - Since the travel and tourism are one of
the growing industry; it is one of the

professional platforms to fit their
product offerings and that of their
services within the right place and at a
right point of time.
- By making use of the digital platform,
a platform such as that of the digital
marketing will help the firm to
generate huge number of potential
consumers from the large proportion
of the market (Bohdanowicz et al.,
2017).
THREATS - The technology that the firm is
making use of may become outdated
with the change in time. There is a
need for the firm to adopt the new
innovative technology to sustain the
business undertakings.
- The number of rival firms that are
taking place in the market has the
potential to outdate the concerning
business firm. Since the firm is
already huge competition from the
consumer market, the new entry of the

firms may create a serious stressful
business environment for the firm.
The PESTLE analysis of the concerning business firm is as follows:
POLITICAL - Much of the risk stays in regards to
political stability and the importance
of the Travel & Leisure sector in the
country's economy.
- Risk in terms of military invasion.
- The prevailing extent of corruption
that prevails in the region of the
economy.
- Bureaucracy and interference within
the field of Travel & Leisure industry
by the government (Bohdanowicz et
al., 2017).
- Legal framework for contract
enforcement
- Intellectual property protection
- Trade regulations & tariffs related to
Consumer Services
- Favoured trading partners
- Anti-trust laws related to Travel &

Leisure
- Pricing regulations – Are there any
pricing regulatory mechanism for
Consumer Services.
- Mandatory employee benefits
- Industrial safety regulations in the
Consumer Services sector.
- Product labelling and other
requirements in Travel & Leisure
- Taxation - tax rates and incentives
- Wage legislation - minimum wage and
overtime (Bohdanowicz et al., 2017).
- Workweek regulations in Travel &
Leisure.
ECONOMICAL - The economical state of the region in
which the business is being carried
out, the economical state such as that
of the recession period of the country.
- The purchasing power that stays
within the hands of the country. It is
more of concerned with the flow of
money within the economy.
- The fluctuations within the currency

rate is another factor of threat to the
firm.
- Threat in regard to the labour cost and
that of the productivity within the
prevailing economy.
- The interest rate that is being modified
on a periodic basis by the local
government body.
- The competitive advantage of the firm
may be outdated by some other rival
business firm.
SOCIAL - The skills level, potential and that of
the demographic factors are required
to be taken into consideration.
- Within the society, it is to be
evaluated, the social class structure,
hierarchy and power structure that
prevails within the economy.
- Cultural traits such as that of gender
roles, social controversies, and much
more (Bohdanowicz et al., 2017).
- The consumer market has a number of
options because of the availability of

the number of firms. Hence, there are
many uncertainties in the business
market.
TECHNOLOGICAL - Since the firm makes use of the online
presence, there are huge possibilities
for the market of the firm to sustain.
Any consumer queries can be dealt
with. On the other hand, bookings are
being done online, which is one of the
innovative moves in today’s era of
time.
- Impact within the cost structure of the
travel and leisure industry.
- The rate of technological diffusion.
LEGAL - The local government tax structure is
to be strictly obeyed. On the other
hand, this tax structure changes with
the economic surrounding such that
the management body continuously is
required to cope up with the tax
structure.
- Anti-trust law in the Travel & Leisure
industry and overall in the country.

- Discrimination law.
- Consumer protection and e-commerce.
ENVIRONMENTAL - Employment law.
- Health and safety law.
- Copyright, patents / Intellectual
property law.
- Data Protection.
d. Explanation of the different factors which impact on the business, based on the SWOT
and PESTLE analyses?
On the basis of the analysis that is being carried out, it is found that the firm lacks much
of the management skills such that the company organised service such as railway outings for the
potential consumers of the members who belong from that of the local temperance movement.
On the other hand, Shares within the Thomas Cook have plunged up to about 30% after analysts
at a bank claimed that the travel firm's shares were "worthless". The stakeholders of the firm
didn’t find much interest g a there were issues in regard to the profit sharing ration. On the other
hand, the output after the investment was not acceptable by the various stakeholders of the
company (Henne et al., 2014).
e. Review of the effectiveness of the business?
Their product and services range from the hospitality services; they even tailor make their
product offerings taking into consideration the diversified category of the market segment that
prevails within the economy. They make use of the internet platform for the booking purpose.

On the other hand, the firm also makes use of the paper form for the local peoples who visit the
firm for the booking purpose.
Their marketing strategy comprises of a rapid “one-stop-shop” in order to appreciate the
business corporation. This one-stop-shop helps in the improvement of the business/sales
performance by means of the sympathetic customer’s commerce better. The company makes
sure that their operational department obtains the detailed stats and monetary & planned analysis
of companies functioning within the same industry (Dale et al., 2016). It recognizes the potential
associate and suppliers – with key information on their businesses and places.
Figure: Fluctuations in the market share
Source: (Statistica, 2019)