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-$15,000

Europe $13,000-$16,000

South Africa $11,000-$13,000

Middle East $7,000-$8,000

South 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 district

2. 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: $10000-15000

Package 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 packageses

2. 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