New Holiday Package for Explore in Tourism Industry - Coursework Example

Contents Introduction 2 Explore 2 Competition 2 Market Segmentation 2 Nature of the Tour 3 Destination 3 Target s 4 Egypt 4 Egypt --- The Adventure Tour Itinerary 4 Detailed Description 6 Profit and Costs 7 Costs 7 Profits 8 Marketing Mix 9 Product 9 Promotion 9 References 10 Introduction Tourism industry is growing at a rapid rate worldwide and is one of the most attractive business sectors. There is tremendous competition in the tourism industry and there is a need for every tourism company to come up with new and innovative tour packages to beat the competition and gain a competitive advantage in the market. This report is a proposal for new holiday package for Explore. The report will take into consideration various aspects like competition, customer preferences, destination attractiveness, etc in designing the package and the proposed tour package will be justified. Explore Explore Worldwide Ltd. is an adventure tour company which was established in 1981. Explore is not just a market leader but it is the most popular adventure tourism company in the UK. Explore offers various torus packages such as short breaks, family adventures, cycle tours, tailor-made tours etc. Explore has organized 40,000 tours until now and offer 400 tours across 120 countries. Competition As mentioned above the tourism industry is growing at a rapid rate and hence there is tremendous competition. Explore’s competitors are not just local and national but also international tourism companies. This is because of the niche that Explore has established over the years by organizing tours to international tourists and has been able to build a loyal customer base. This is evident from the fact that there has been an increase in the number of trips booked by same tourist groups. The various competitors of Explore in UK are Diamond Travel, Thomas Cook, Exodus, First Choice, The Adventure Company, etc. There are various international tourism companies that compete with Explore but they all can not be analyzed in general as the competition in international market is destination oriented. Market Segmentation Before finalizing on the destination it is essential to first decide on the nature of the tour. Nature of the Tour In the recent years adventure tourism has grown at a fast rate and is one of the primary categories in the tourism market. This has been supported by various researches. A study by National Geographic and TIA suggested that 20% of the total leisure market is occupied by active or adventure travel (Heyniger, 2006). It was revealed in 2001 (The Mintel Report) that 25% of total European tour packages were accounted by adventure torus. The study also found out that there were a total 443,000 adventure holidays per year. It is estimated by Travel Industry Association of America that the adventure tourism is growing at a rate of 10%. Various studies have thrown light on the fact that there is an increase in the number of women who are taking up adventure tourism (Heyniger, 2006). Hence, designing an adventure tourism package would make great marketing sense and give Explore a competitive edge in the market. Adventure travel is best defined by Travel Trade Association as any tourist activity which involve either of the following 3: Activity which engagement with nature, cultural interaction or exchange and physical activity. Destination Studies from various researchers have indicated that for a tour package to be successful it is essential to ensure for the following three dimensions to be incorporated into the tourist destination: culture, history and nature (Chacko, 1997). Source: http://www.fayoum.edu.eg/Tourism/TourismStudies/pdf/Eraqi4.pdf Considering the above three dimensions, Egypt will make a great tourist destination. All the three dimensions can be found in Egypt and Egypt as a tourist destination can be justified by the recent trends. There has been a 25% growth registered in the Egyptian tourism industry. There was a 29% increase in the number of tourist who visited Egypt in the first quarter of 2010 (Salam, 2010). It is evident from the above statistics that Egypt as a tourist destination has gained a lot of recognition and has attracted tourists in a large number. It has become a tourist hot spot in the recent years and hence would be a wise marketing choice for Explore. Target Customers There is an increase the number of people taking up adventure tourism and they belong to all age group. There is an increase in the number of women taking up adventure tourism. Hence, taking into consideration all the factors and the challenges of the tours the target audience will be both male and female between the age group of 18-50. Egypt Egypt is one of the northern countries of Africa along with Libya and Tunisia that have a rich culture and heritage. Known mainly as the home of the ancient Egyptian civilization, it also has a rich medieval heritage. Along with ancient temples and pyramids, the Egyptian landscape is dotted with churches and mosques which connect the past and the present. But for the river Nile which waters a thin strip of land across the country, Egypt is mostly a desert which is surprisingly home to the largest Arab population which has influenced the present culture and language. Although the top tourist destinations in the country are the relics of the Egyptian civilization, with destinations like several excellent scuba diving spots, landscapes created by the Aswan Dam over the river Nile, the river Nile itself, countless oases, etc the country attracts a variety of people from all corners of the world. Everyone can find what they are looking for due to this abundant mix of adventure, history and culture. Egypt --- The Adventure Tour Itinerary The itinerary is for a 5 day tour for 15 tourists. Detailed Description Tourists on arrival at Sharm-El-Sheikh will be moved to the hotel. On freshening up and breakfast they will be transferred to Dahab. After lunch at Dahab they will take a walk to the first Bedouin camp of the tour. The camp is set on the foothills of Mt. Sinai from where the view is magnificent with the series of mountains. The light of the afternoon sun makes the view even more beautiful. After a short break at the camp, the tourist will then trek Mt. Sinai, the most famous mountain of Sinai. The altitude of the trek will be 2,285m and the tourists will be taking the same path that was taken by Moses. The trek is a challenging one and excites adventure enthusiasts. The Sunset against desert is picture perfect and one of the best on the planet. The tourist will descend the mountain in moon light and will stay in the camp. The night in the desert is an adventure in itself and the view of the night is worth the adventure. On all the 4 days of camping tourists will enjoy the local food. Even though the camps do not offer the comfort of a luxury trip the experience of spending the night in desert is worth it. On day 2 the tourist will visit the St Catherine’s Monastery after breakfast. This was the place where Moses received the 10 commandments and the Monastery was built in 342AD to mark it. It is the smallest diocese in the world and numerous manuscripts and priceless books are found here today that have been preserved over the years. The tourists then continue the walk towards Wadi Haggag. The tourists meet the camp crew and Bedouin cameleers here. The camels are loaded and the journey then continues towards Mt. Matamir. On the way the tourist pass through Pilgrim valley and Bronze Age tombs. After Lunch at the camp at Mt. Matamir they then start their trek to Mt Matamir. The trek up and down are wonderful and the sunset and the view from the top make the experience memorable. On day 3, the tourists will head towards the mountain of wonder. They have lunch at Wadi Zaranig on their way where they will take an extended break for rest. The walk in the desert allows the tourist to feel Egypt at its best. They will experience the real Egypt in its true colors. Mountain of wonder is a sandy plateau. The tourists will enjoy the beautiful evening in the desert and spend the night at the camp in Wadi Abu Agiba. On day 4, the journey will take the tourists through various terrains like the rocky plateaus, sandstone outcrops, Granite Mountains, etc. The tourist will have Lunch at Umm Ghekhat and from there will ride the camels in the desert to the camp at El Barga. The camel ride will be one of a kind experience as prior to this the camels were only used for loading the luggage. The camel ride will be a different adventure for the tourist. The tourist will spend the nigh at the camp. On day 5, after breakfast the tourists will be transferred to Dahab for the final day of the journey. The whole day the tourists are free to explore Dahab which is famous water sports especially diving. But the expenses of the water sports or any other activity in Dahab are not included in the package and the tourists must bear it. The tour comes to an end with dinner at the hotel in the evening. Profit and Costs Costs Accommodation Price per night/day £ Number of nights/day Total price in £ Iberotel Palace 30 1/2 15 Alf Leila Boutique Hotel 26 1 26 Camp 10 4 40 Total 66 - 81 Meals Price per meal £ Number of meals Total price in £ Breakfast 10 5 50 Lunch 10 4 40 Dinner 10 5 50 Refreshment (Soft drink + Water bottle + Snacks) (0.80 + 0.80 + 4) 4 22.4 Bottle of Wine 10 5 50 Total 35.6 - 212.4 Staff and others Price per day/hour £ Number of days/number of staff Total price in £ Tour Guide 20 5 100 Camp Crew 10 5/5 250 Cameleers 5 3/5 75 Bus 30 6 180 Driver 10 6 60 Cooks 5 4/5 100 Total 80 - 765 In the above mentioned cost estimate accommodation and meals are calculated per tourist while Costs and staff are calculated for the whole group and hence it will be divided for the number of tourists. There are 5 breakfasts, 4 lunches and 5 dinners involved and tourists will be charged for any other meal apart from this. The tourists will have to pay for any activities like water sports on the final day Dahab as the activities depend on the individual. Total Staff and other expenditure: £765 Staff and Other Cost per tourist : £765/15 = £51 Total Operating Cost: Accommodation costs + Meals Cost + Staff and Other costs: £81 + £212.4 + £51 = £344.4 Profits A profit margin of 30% is fixed for the tour. Penetration pricing strategy is adopted to ensure that the pricing is lesser than the competition and will help Explore further penetrate the adventure tourism market. This will also help Explore to establish a loyal customer base. Selling price: Operating Costs + 40% (Operating Cost) = £344.4 + 40 %( 344.4) = £344.4 + 137.76 = £482.16 Hence, the selling price will be rounded of to £500 to make up for any unexpected expenditure on the tour. Therefore the total profit on the tour per tourist is £155.6 and the overall profit of the entire trip will be £2334. Marketing Mix Product The product is a 5 day adventure tour package for 15 tourists. It is adventure tour package where the tourists will explore Egypt for five days mainly on foot. The tour is an adventure to its true sense. It is designed taking various factors into considerations and to ensure that the tourists get true value for their money. Promotion In today’s highly competitive world it is highly essential to use every marketing tool available at disposal top promote the product. The tour will be promoted using various channels like internet, television, radio, advertising in newspapers and tourist magazines, etc. References Chacko, H.E. (1997). Positioning a tourism destination to gain a competitive edge. Asia Pacific Journal of Tourism Research, 1(2), p. 69–75. Heyniger, C. (2006). Adventure Travel Industry Growth Statistics. [Online]. Available at: http://www.xolaconsulting.com/Adventure%20Travel%20Industry%20Growth%20Statsv2.pdf Accessed on 26 July 2010 Salam, M.A. (2010). Egypt: 17.6 percent increase in tourism revenues. [Online]. Available at: http://bikyamasr.com/wordpress/?p=14492 Accessed on 27 July 2010 Schneider, P., Latkova, P. & Vogt, C. (2008). Consumers’ need for Uniqueness Seeking the Trait through Adventure Travel. [Online]. Available at: http://www.xolaconsulting.com/xola-2008-adventure-tourism-uniqueness-study.pdf Accessed on 26 July 2010. Read More