Business Studies Marketing Project Travel Agency Members Calvin

Business Studies Marketing Project Travel Agency Members: Calvin Wong Lawrence Lau Anthony Lau Tam Lam Terry Tang

Introduction • Increasing purchasing power • More people are willing to travel countries they like • Looking for tours with higher quality 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 $50, 000 -$60, 000

• Unfulfilled needs of customers – E. g. South America, Amazon Ecotourism • Special trips – An eating/investment trip with connoisseur – Pilgrimage tours (specialist in visiting holy land/ mountain) • In 2007 the overall expenses spent on traveling by HK people = 107 billions

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

Weaknesses – Lack of capital – Lack of support from other channel members – Lack of marketing expertise – Brand name unknown – Imperfect information of the market – Relationship with airline companies

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 middle-to-high income group u retired people u • Psychographic – aims to those: • want to be different • enjoy high-class tours place of:

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

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 tend to have short-distance travels such as Taiwan and Japan

Product • Traditional Part: – u 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…) – Canada – South America (Brazil, Argentina, Chile…)

Europe u – – – Italy + England + France + Spain + Germany + Portugal… Sweden+ Denmark +Norway + Finland + Switzerland … Czech + Greece + Hungary + Austria + Ukraine + Turkey … Africa u – South Africa, Middle Africa, Egypt Middle East u – Dubai, Saudi, Arabia, Israel, Qatar

Package • 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 festivals – Beer festival (啤酒節) in Germany

• 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 the trip are not included – 1 professional photographer for phototaking – for any travelers having their birthday during the trip, 20% off discount – insurance acquired

Place • Places to be considered: u u u 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 & 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 Mix • 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 Marketing • 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 every 2 weeks to ensure complaints are handled efficiently

Recommendations • Do regular research on: 1. the popularity of each of the packages 2. the major age groups of different packages • • • Allocate more resources to the most popular packages Cater more the demands to the major age groups Evaluate content of tours regularly

Contingency Plan • Lower the price of the packages and tours • Eliminate those tours with least interest

The End