Pest Analysis for a Company in the Tourism Industry :

PEST Analysis for a Company in the Tourism Industry

The Tourism industry is one of the fastest growing industries in the

world. The World Travel and Tourism Council estimates that in 2004

Travel and tourism is expected to generate

* US$ 5,490.4 billion of economic activity

* 10.4% of total GDP

* 214,697,000 jobs or 8.1% of total employment

* 12.2% of total exports [1]

My task is to conduct a PEST analysis for a company within the Tourism

industry.

Within the tourism industry, I have to select one area of interest

like transportation, accommodation and transportation etc. and then

one company doing business with these sectors related with the

tourism.

According to Leiper ?Transportation is the only link between the

tourist-generating region and destination region?[2]So, transportation

was a more interesting sector to discuss in the report but I tried to

find a company which is related with all these main sub-sectors

discussed above in the report.

I have decided to look in the U.K market for such company because

?Tourism is one of the largest industries in U.K, worth approximately

75.9 Ј Billion to the U.K economy in 2002 and supporting around 2.1

million jobs.? [3]

During my research on internet I found many companies offering

services in the tourism of U.K but I have decided to choose ?Simply

Travel? because of its variety of services offering related with the

accommodation, transportation and attractions.

1.2 Problem Formulation

In the problem formulation part of my report I would describe the

overall situation of the U.K Tourism industry. The service concept of

?Simply Travel? will give us information about the services provided

by the company. I will find out about the customers, competitors of

the company. I will find out what political, economical, social and

technological factors affecting the company and its demand situation.

1.3 Limitations

The biggest limitation for writing this report is time and the pages

to write. It is a broad topic and it could be better presented if

available more time and space to write about, but still I have tried

to highlight some main points raised during my finding. My knowledge

about the company ?Simply Travel? is internet-based and I could not

able to contact the company for further information. Due to the lack

of information about the company I will only describe one component of

the Service Management System. I will be describing only the OT part

of the SWOT analysis.

1.4 Methodology

Being inspired from the Service Management System I will describe the

service concept of the company .I will conduct a P.E.S.T analysis to

find out the political, economical, social and Technological factors

affecting the company. From SWOT analysis, I was conducting OT

analysis to find opportunities for the ?Simply travel? in future.

1.5 Data

I will use Secondary data collected from different industry