A Travel Agency is one of the best and easiest business ideas as it requires low investment. Travel agency helps individuals arrange for other transportation options, get plane tickets, tours, and hotel reservations. Also, one can opt to have home-based travel services by tying up with a host agency. Thus tourism being all over the world, getting into the travel business is one of the most profitable.
How The Economic System of the Business Will Affect The LocationThe Agency will reduce traveling costs as price elasticity affects tourism demand, especially below the specific price level. For example, in the long-distance traffic, air transport is the prime, and there has been a decline in the average air transport cost compared to short-distance traffic, which has a higher total cost. In this case, the Agency decreasing travel costs will be essential for the growth of potential travelers of long-distance.
To attract private investment to the sector, the travel agency will provide private and public sector involvement in entertainment, sport, and food facilities in the hotels, provision of promotional support, financial, and fiscal incentives.
The Type of Business
The travel agency will be a partnership business to help improve revenue projects and growth ambitions through sharing airlines, hotel companies, destinations, and cruise lines.
The External Environment And Production Factors
Political, regulatory, and legal issues can affect the sustainability of tourism businesses. The firm activities grow when the state is politically stable. Thus, the legal system of the national government may hinder or facilitate businesses in various environments. Any government changers can lead to closure or openings of markets.
When economic conditions are stable, tourism businesses are encouraged to take calculated risks and expand. Thus the agency will take make a step forward to grow. For example, rising demand and low-interest rates lead to higher living standards as well as increasing incomes resulting in spending money on luxuries such as travel (Camilleri 7).
Challenges of the Business
Lack of a reputation as the Agency is new in the market compared to surrounding competitors. Also, limited financial base vis-a-vis to significant players in the firm. Moreover, the latest tactics and strategies of marketing by established firms intended to provide excursions of the Agency's intended nature.
How to Recruit, Hire, and Train the Workforce
The tourism agency will recruit, hire, and train the employees as tourism officers. The new officers will begin their careers with a one-month training and orientation programs at a new duty post and a three- month training at the Agency's offices. After the training, the officers return to their duty postings to begin a supervised workplace. Besides, the Agency will conduct internal training to expand more excellent knowledge of the market trends, customers, time management, and services.
The Marketing Environment
Most tourism products and travel destinations have atleast one low and high season. Low seasons are associated with cheaper flights, lower rates, and fewer interest rates. Thus, the tourism agency during the high seasons will have a huge spending budget.
Also, currency rates fluctuate, affecting different countries, reducing or increasing the number of travelers. To bring the markets into equilibrium, the Agency will improve marketing to revitalize the market.
The Essential Financial Reports to Ensure Business Success
The Agency intends to have financial reports to promote business success by respecting the customer's value and maintaining a friendly and healthy workplace. Additionally, the Agency should foresee cash flow as the significance, growth, and profits as the latter. The tourism agency should respect realistic projections, financial management, as well as conservative cash flow.
Mark Camilleri 'the marketing environment of tourist destination' https://www.researchgate.net/publication/329043677_Chapter_1_The_Marketing_Environment_of_Tourist_Destinations (2018): 3-19. Print.
Cite this page
Economic System Impacts Travel Agency Location - Essay Sample. (2023, Apr 04). Retrieved from https://proessays.net/essays/economic-system-impacts-travel-agency-location-essay-sample
If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:
- Serving the World's Poor, Profitably Article Review
- Essay Sample on Morality of Capitalism
- Private Ownership of Resources and Assets History Essay
- Communication Strategy of Nike Inc Paper Example
- Evaluation Essay on Apple Inc: Mission & Vision for Global Success
- Research Paper on Recruiting and Staffing: Strategies for Amazon
- Essay Example on Amazon Focuses on Data Analytics to Improve Customer Relationships