Business StudiesMarketing Project

Travel AgencyTravel Agency

Members: Calvin WongCalvin Wong Lawrence LauLawrence Lau

Anthony LauAnthony LauTam LamTam LamTerry TangTerry Tang

Introduction

• Increasing purchasing power• More people are willing to travel

countries they like• Looking for tours with higher

quality and better servicesy and better services• Enjoy a luxury trip

Objectives

• Create Brand image• Build reputation among the industry• Establish long-term business

relationship with channel members• Provide a new and tailor-made

experience of traveling to customers

Market Research• Major competitors: Hong Thai, Wing On,

Morning-Star (星晨 ), EGL Tours (東瀛遊 ), Sunflower (新華 ), Jetour, SKY Travel

• Prices of high class tours to the following places:USA + Canada $14,000-$15,000Europe $13,000-$16,000South Africa $11,000-$13,000Middle East $7,000-$8,000South America South America $50,000-$60,000$50,000-$60,000

• Unfulfilled needs of customers– E.g. South America, Amazon EcotourismEcotourism

• Special trips– An eating/investment trip with

connoisseur– Pilgrimage tours (specialist in visiting holyholy

land/ mountain)• In 2007 the overall expenses spent on spent on

traveling by HK people = 107billions traveling by HK people = 107billions

Situation Analysis-SWOT AnalysisSituation Analysis-SWOT Analysis

• Strengths:– Business Class– Concentrate mainly on long distance toursdistance tours – High Quality Services and Tours– Experienced Tour guides– Front-line staff with language abilityability– Well-trained employees

– Lack of capital– Lack of support from other channel

membersmembers– Lack of marketing expertise– Brand name unknown– Imperfect information of the markett– Relationship with airline companiess

Weaknesses

Opportunities

– Unfulfilled customers’ needs– New tours, package

Threats

– Competitors– Market not yet saturated– Customers’ favor may change– Rising cost– Difficult to survive

Market Segmentation

• Demographic– It should be set up near the living placeplace of:

middle-to-high income group retired people

• Psychographic– aims to those:

• want to be different• enjoy high-class tours

Positioning

Super high-class• Grand image• Brand new traveling experience• High quality service• Focus on long-distance travel

Target Market• People with high income• Retired people

– more leisure time for traveling– willing to spend a large sum of

money for traveling• Company tours• The youth are excluded due to

their financial status and they tendd to have short-distance travels to have short-distance travels such as Taiwan and Japansuch as Taiwan and Japan

Product• Traditional Part:

– Four categories: a) America + Canada b) Europe c) Africa d) Middle East

America + Canada• Sightseeing:

– Eastern USA (Chicago, Washington, New York…)

– Western USA (Los Angeles, California…)

– CanadaCanada– South America (Brazil, Argentina, South America (Brazil, Argentina,

Chile…)Chile…)

Europe– Italy + England + France + Spain +

Germany + Portugal…– Sweden+ Denmark +Norway +

Finland + Switzerland …– Czech + Greece + Hungary +

Austria + Ukraine + Turkey … Africa

– South Africa, Middle Africa, Egypt Middle East

– Dubai, Saudi, Arabia, Israel, QatarDubai, Saudi, Arabia, Israel, Qatar

• Pilgrimage Tour– Location: Israel– Wailing Wall, Last Supper room, Swim

and Float in Dead Sea• Ecotourism (生態遊 )

– Travel around the rainforest by helium balloons

– Location: South America, Amazon, rainforests…

• Foreign festivalsForeign festivals– Beer festival (Beer festival ( 啤酒節啤酒節 ) in Germany ) in Germany

Package

• Historical Trip– Location: Germany– Berlin Wall, Concentration camp,

Wasa Poland-Jewish Monument – A historical expertise provides

German English translations• Skiing Trip

– Location: Switzerland– Coaches and all skiing equipment

will be provided

• Features of our trips– at least one experienced and professional

leader and a local tour guide who can speak fluent Cantonese

– direct flight to destination, avoid transits which cause inconvenience

– five star hotels guaranteed– private sumptuous coaches– enough free time for travelers– extra entrance/sundry charges during uring the

trip are not included– 1 professional photographer for photo-1 professional photographer for photo-

takingtaking– for any travelers having their birthday for any travelers having their birthday

during the trip, 20% off discountduring the trip, 20% off discount– insurance acquiredinsurance acquired

Place

• Places to be considered: Wan Chai Tsim Sha Tsui Happy Valley

• Why Wan Chai?1. Only 1 large scale competitors

in the stated district2. The people living nearby are

mostly middle income group or above

3. At the middle of residential area area & business area

Price

• Price are set based on the market price

• Price range:Traditional tours: $10000-15000Package tours: $15000-20000

• In Peak Season, price will be increased by 20%

• 10% discount offered to VIP members

• Extra discounts for VIP members traveling in their birth month

• Discount to children• Discount offered to customers who

sign up for the first time– $1000 discount

Promotion

• Advertising

• Personal Selling

• Publicity

Services Marketing MixMix• People

– Staff dresses in uniform in shops– Tour guides dress code: always

formal(e.g. No punk hairstyles; wear shirt, leather shoes)

• Process– Provide staff with notes on standard

procedures when serving customers – Require staff to memorize FAQs and

useful phrases (e.g. Thank you for joining our tour. We look forward to seeing you next time.)

– Ask customers to complete quiz to assess the quality of our tour

• Physical Evidence– Decoration concept of the shop :

Home sweet home– Use wood in designing the shop– Sofa, glass coffee table, large

variety of drinks

Relationship MarketingMarketing

• Provide VIP membership– Priority to make reservation

• Give discounts to VIPs joining packages

• Give discounts to children aged under 11

• Feedback in quizzes is discussed discussed every 2 weeks to ensure complaintscomplaints are handled efficientlyefficiently

Recommendationss

• Do regular research on:1. the popularity of each of the packageses2. the major age groups of different

packages• Allocate more resources to the most

popular packages• Cater more the demands to the Cater more the demands to the

major age groupsmajor age groups• Evaluate content of tours regularlyEvaluate content of tours regularly

Contingency Plan

• Lower the price of the packages andand tours

• Eliminate those tours with least interestinterest

The EndThe End