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Assignment 1 (Case Study)
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3. Introduction
• Business environment consists of the internal and external factors which
influence the operating situation of a company.
• The business environment involves factors like competition and its owners,
social and economic friends, supplier and clients and others.
• In this presentation, the PESTEL and SWOT analysis are being performed
for Topdeck Travel to understand the issues faced in the internal and
external environment along with the way they are impacting on their
present and future developments.
4. Overview of Topdeck Travel
• Topdeck Travel is travel and tour operator who provides trips mainly to the
young people between ages 18-39 through North America, Europe, Egypt,
Asia, Australia and New Zealand.
• The company was founded on 1973 and since then it changed hand until
2003 when it was purchased by a consortium involving Connection
Adventures and Australian Pacific Touring.
• In 2010, the Connection Touring officially was announced as Topdeck
Australia (topdeck.travel, 2019).
• The mission of Topdeck Travel is make the young generation get inspired
by making them face life-changing experiences (topdeck.travel, 2019)
5. PESTELAnalysis
• Political
• Brexit leads to create more complex travel requirements for UK tourists to
other countries (sbit.org.uk, 2018)
• Brexit will lead to create 31% increase in the outbound holiday prices for
the UK individuals (independent.co.uk, 2018)
• After the EU referendum since 2016, the pound has lost its value against
the Euro (researchbriefings.files.parliament.uk, 2019)
6. Contd..
• Economic
• In 2017, £28.3 billion is reported to be contributed to the UK economy
through outbound tourism which is 1.8% of the GDP (visitbritain.org,
2017)
• By 2020, it is reported that outbound tourism in the UK is going to
contribute £14.7 million to the country’s economy (visitbritain.org, 2017)
• UK tourism sector is projected to grow by 3.8% per year until 2025
(research briefings.files.parliament.uk, 2019)
7. Contd..
• Social
• In 2017, 72.8 million
visits were made from the
UK to different
destination which is up
by 3% from 2016
(ons.gov.uk, 2018)
• 80% of the residents of
the country visited
European destinations
(ons.gov.uk, 2018)
8. Contd..
• Technological
• Tourism companies in the UK are focussed on using updated technologies
such as biometrics to improve security for travellers (grow-media.co.uk,
2017)
• In the UK, the effective use of digital technologies in an improved manner
is done for booking tickets and travel itineraries (grow-media.co.uk, 2017)
9. Contd..
• Environmental
• UK outbound tour operators are focusing on sustainable products to be
used by tourists while travelling (fcrn.org.uk, 2019)
• UK outbound tourism is focussing on lower the carbon footprint on the
countries while travelling (fcrn.org.uk, 2019)
• Legal
• Privacy of travellers
• Companies Act 2006 (legislation.gov.uk, 2006)
10. SWOT Analysis
• Strength
• One of the oldest travel organising company in the UK (topdeck.travel,
2019)
• Customised and flexible travel opportunities for 18-39 years of individuals
(topdeck.travel, 2019)
• Providing 350 different tours in 65 countries (topdeck.travel, 2019)
• Weakness
• Increased competitive market (visitbritain.org, 2019)
• Limited market share (visitbritain.org, 2019)
11. Contd..
• Opportunity
• Value for money (topdeck.travel, 2019a)
• In 2012, Topdeck won three awards at the
TNT Golden Backpack Awards
(topdeck.travel, 2019)
• Free to explore and online booking
(topdeck.travel, 2019a)
• Effective privacy policy (topdeck.travel,
2019a)
• Threat
• Decline in dollar value
(researchbriefings.files.parliament.uk,
2019)
• Complex government regulation
(sbit.org.uk, 2018)
12. Conclusion
• The above discussion informs that Brexit is going to create negative
situation for Topdeck Travel to operate in the market but the social,
economic, environmental, technological and legal factors are going to
support improved performance of the company in the current as well as
future situations.
• In addition, the increased competition in the market is going to act as
weakness for the company to operate their business but their image would
act as strength of opportunity to help the achieve success.
13. References
• Atun, R.A., Nafa, H. and Türker, Ö.O., 2018. Envisaging sustainable rural development through ‘context-dependent tourism’: case of
northern Cyprus. Environment, Development and Sustainability, pp.1-30.
• Bagur-Femenías, L., Martí, J. and Rocafort, A., 2015. Impact of sustainable management policies on tourism companies' performance:
the case of the metropolitan region of Madrid. Current Issues in Tourism, 18(4), pp.376-390.
• fcrn.org.uk 2019, UK Tourism 2023, Available at: https://fcrn.org.uk/sites/default/files/Tourism_2023.pdf [Accessed on: 18 July 2019]
• Grow-Media.Co.Uk 2017, Tourist Attractions Set To Be Transformed By Virtual Reality And Digital Technology, Available at:
https://grow-media.co.uk/exeter-news/exeter-business-new/tourist-attractions-set-transformed-virtual-reality-digital-technology/
[Accessed on: 18 July 2019]
• independent.co.uk 2018, Holiday Prices Forecast To Rise By 31% Due To Brexit, Available at:
https://www.independent.co.uk/travel/news-and-advice/brexit-holidays-travel-price-increase-job-insecurity-europe-financial-markets-
pound-euro-dollar-a8479826.html [Accessed on: 18 July 2019]
• legislation.gov.uk 2006, Companies Act 2006, Available at: http://www.legislation.gov.uk/ukpga/2006/46/pdfs/ukpga_20060046_en.pdf
[Accessed on: 18 July 2019]
• ons.gov.uk 2018, Travel trends: 2017, Available at:
https://www.ons.gov.uk/peoplepopulationandcommunity/leisureandtourism/articles/traveltrends/2017 [Accessed on: 18 July 2019]
• researchbriefings.files.parliament.uk 2019, Tourism: statistics and policy, Available at:
researchbriefings.files.parliament.uk/documents/SN06022/SN06022.pdf [Accessed on: 18 July 2019]
• sbit.org.uk 2018, A Crisis Looming: Brexit and the British Outbound Tourism Industry, Available at: http://sbit.org.uk/wp-
content/uploads/2018/08/SBIT-A-Crisis-Looming-Aug-2018-Brexit-and-British-Outbound-Tourism.pdf [Accessed on: 18 July 2019]
• Tan, Q. and Sousa, C.M., 2015. Leveraging marketing capabilities into competitive advantage and export performance. International
Marketing Review, 32(1), pp.78-102.
• topdeck.travel 2019a, Why Topdeck, Available at: https://www.topdeck.travel/about-us/why-topdeck [Accessed on: 18 July 2019]
• topdeck.travel 2019, Topdeck Travel, Available at: https://www.topdeck.travel/about-us/why-topdeck/our-app [Accessed on: 18 July
2019]
• visitbritain.org, 2017, TOURISM SECTOR DEAL Informing the Long-Term Tourism Strategy for Britain, Available at:
https://www.visitbritain.org/sites/default/files/vb-corporate/Documents-Library/documents/industrial_strategy_-
_sector_deal_bid_submission.pdf [Accessed on: 18 July 2019]
• visitbritain.org 2019, Britain’s competiveness, Available at: https://www.visitbritain.org/britains-competitiveness [Accessed on: 18 July
2019]
• Zelizer, V.A.R., 2017. Morals and markets: The development of life insurance in the United States. Columbia University Press.
14.
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Editor's Notes
The Brexit has led the UK to develop complex travel requirements for its country’s individuals while travelling aboard (sbit.org.uk, 2018). This is going to impact on the UK outbound tourists to face increased hassle in arranging their trips to other countries and mainly in the European countries. In relation to this current situation, it is going to negatively impact Topdeck Travel, UK as they are going to face increased complexities in arranging outbound trips for their consumers. This is because Topdeck Travel is seen to specialise in arranging Europe Trips along with safari and other global adventures for the travellers (topdeck.travel, 2019). The Brexit has also led to create 31% increase in the outbound holiday prices and the UK government is seen to have taken no initiative in reducing the raised prices (independent.co.uk, 2018). Thus, the current context is going to impact Topdeck Travel face liability to increase the tour prices for its consumers which is further going to affect the company to attract fewer consumers.
The economic condition for the UK outbound tourism indicates that in 2017 they have contributed 1.8% to the GDP of the country and by 2020 they would contribute £14.7 million from the sector (visitbritain.org, 2017). The figures indicate that in the current condition the outbound tourism is going to gain more finances through business operations. This is going to currently impact Topdeck Travel face stable economic market for expanding and executing their business. In addition, this condition is going to led Topdeck Travel avoid borrowing money and improve their investment to meet demands in the market. In UK, till 2025 the outbound tourism is expected to grow by 3.8% per year (researchbriefings.files.parliament.uk, 2019). This future development in the outbound tourism market will impact Topdeck Travel have the opportunity to expand their business easily and attract more new consumers towards them, in turn, being able to effectively compete in the global market to gain better position.
The UK tourism industry informs that 72.8 million visits were made by the UK individuals overseas and out of them 58.2 million visits were made to European countries (ons.gov.uk, 2018). Thus, this current development in number of visits made overseas would impact Topdeck Travel be able to attract increased number of travellers towards them that would boost the growth of their business in an effective way. This is because Topdeck Tavel, UK is seen to arrange tours to various European countries apart from Asia and Australia.
The UK tourism sector is seen to focus on promoting use of sustainable products by the traveller in the domestic as well as in international environment (fcrn.org.uk, 2019). This is because they have the will to build a sustainable world with reduced waste and better environment. In case of Topdeck Travel, it is seen that they have adopted the similar strategy and promotes as well as provide traveller sustainable products to be used while travelling so that less carbon footprints are created in the global environment (topdeck.travel, 2019). It is going to impact the company become an environment-friendly organisation in the tourism sector allowing them to attract more consumers. This is because by participating to improve the environment would create a positive name of the organisation in the industry where travellers would like to avail services from them. It is evident as travellers would feel that travelling with the company will help them to save the environment and reduce waste generation, in turn, protecting the earth’s environment while enjoying their trips.
The UK tour companies are seen to be using various updated technologies for operating their business (grow-media.co.uk, 2017). In case of Topdeck Travel, it is seen that they offer online booking of their tour plans to be made by consumers and has developed a spate app to be used. The travellers are also allowed to check the progress of their payment and provided facility to contact through email with the Topdeck travels (topdeck.travel, 2019). This informs that the company is following inclusion of updated technologies in operating their business which is going to impact them of being able to operate their business smoothly for offering improved customer satisfaction.
The Companies Act 2008 informs about the principles and guidelines to be followed to legally operate business in the UK (legislation.gov.uk, 2006). Topdeck Travel is seen to follow the Act which would impact them to avoid facing legal hindrances while operating their business in the UK. Moreover, the company effectively ensures protection and privacy of data of the travellers which would impact them to be effective to protect personal information of the travellers.
Topdeck Travel is one of the oldest performing tour management companies in the UK since 1973 (topdeck.travel, 2019). As commented by Zelizer (2017), the longer the company exists and operates their business the more reliable they become among the consumers. This is because the longer existence of the company indicates they are able to offer satisfactory products or services to its consumers that have resulted them to continue and improve their business to fruitfully exist in the market. Thus, the older existence image of Topdeck Travel acts as strength for them as it is going to help them in successfully attracting more consumers through promotion of their image. This reliable in future would help the company to further expand their business. As argued by Atun et al. (2018), inflexible travel opportunities make the traveller dissatisfied with travelling with the help of tour operators. This is because the traveller could not enjoy their holiday or vacation as per their wish. However, Topdeck Travel offers flexible option of different nature to its travellers which act as their strength as it is going to help them provide satisfactory services to them. It is going to impact the company in future to attract more customers as their flexible tour plans would meet the wish and demands of any nature of customers.
The competitive market leads the companies to have limited share in the market as more companies are seen to be operating within the industry creating limited resource (Tan and Sousa, 2015). This would impact Topdeck Travel face difficulty of sustaining in the market as there would be more companies than the resources to be achieved. However, Topdeck Travel has the opportunity to use their improved image to sustain in the market. This is evident as they are seen to won three awards at the TNT Golden Backpack Awards in 2012 (topdeck.travel, 2019). The companies with improved image are preferred by consumers as they are regarded as reliable in nature (Bagur-Femenías et al. 2015). Thus, Topdeck Travel through improved image would ensure reliability of their business in turn attracting moiré consumers towards them. The decline of value of dollar compared to euro is going to act as threat for Topdeck Travel. This is because lower value of dollar means that UK individuals have to pay more for their outbound trips (visitbritain.org, 2017). Since Topdeck Travel mainly arranges tours for the youth between 18-39 years who have limited economic resources this sudden increase in price would lead many consumers to avoid availing services for them. Thus, it would negatively impact Topdeck Travel to face economic downfall (topdeck.travel, 2019).