Thomas Cook Tour Operation UK Ltd :: Business and Management Studies

doubting doubting Thomas hedge Tour Operation UK LtdIntroductionThomas desex Tour Operation UK Ltd is the third largest travel groupoperating in the UK travel industry, owning its own traveldistribution channels, tour carrying out and airline. The companybelieves that they give birth earned their position through consumerrecognition for their woodland and expertise in providing packageholidays.The instability of the securities industry caused by mettlesome sensitivity to economicchange and the intangible and perishable nature of the products sold,forces companies competing at heart the travel industry to constantlyseek modernistic and imaginative slipway to create demand and maintain orstrengthen their position. A compounding of economic downturn, a lackof consumer confidence, natural disasters and the effects of terrorismhave had a major impact on the performance of Thomas Cook Touroperations. In this report I will analyze the merchandising strategiesused by the company a nd discuss the effectiveness in achieving theirobjectives. companionshipThe tragic events of September 11th 2001 had a devastating affect onindustries throughout the creative activity. The travel and tourism industryhowever was hit the hardest. increase fear amongst consumers afraidto fly and a downturn in the world economy caused a drastic decline inthe demand for both business and leisure travel causing passengernumbers to plummet. Thomas Cook tour Operations, like its competitorsexperienced high scratch losses as a result of falling passengernumbers, added pledge costs, falls in their share prices andincreased insurance premiums in which occurred I the aftermath.Prior to September 11th the travel industry experienced a dynamicgrowth between 1995 to 2001. During 2001 20.6 million package holidayswere sold to the British Consumer, 1 growth of 2.6%. However thedeterioration of the industrys succeeder came immediately after theterrorism attacks. Thomas Cook Tour Operations were a s a result forcedto develop a new strategy in order to save their rapidly fallingprofits.In order to develop their new strategy, the company carried out a fig upanalysis. This is a technique that involves identifying a companysstrengths and weaknesses in the business, the opportunities presentedby the trading environment and any threats opposing the company. Thebelow information is adapted from the Thomas Cook Tour OperationsChief executive Update.Strengthsexistent percentage market shareThomas Cook reputation live Thomas Cook image and brand recognitionHigh train of awareness within target marketKnowledge and experience of market trendsLarge number of distribution channelsGood product transformationWeaknessesHoliday Essential brand not well established and relatively low demandfor the product.Confusion and lack of identification of other Thomas Cook brands e.g.JMC and holiday essentials.High volume costsHigh great(p) expenditure, i.e. marketing expenses, data processingcosts and human resources, e.g. staff employee turnoverOver capacityExcessive fixed assets i.