Managing strategy Essay Example | Topics and Well Written Essays - 1500 words

Managing strategy - Essay Example However, the ever evolving industry of tourism in Europe has meant that there were several factors in the external environment that were impacting the tour operators. This report will analyze those factors using the PESTEL model and Porter’s Five Forces. PESTEL Analysis Political The major political problem that struck the European tour operator industry was the September 11 attacks in the United States of America. The debacle was not just detrimental for Europe but for everywhere around the world. One of the industries that suffered most was the tourism industry. The sense of fear among people grew and that brought a big halt to the number of travelers around the world. The countries had implemented strict policies on visas and entry of foreigners in their lands. Among countries, there was increased scrutiny as the after effects of the attack on the US. There was lack of trust because of the security troubles. Every foreigner was scrutinized. Policies were made strict and thi s was one major reason why tourism industry took a big hit after the attack (United States, 2006). Economical The attacks did not just affect the political landscape of the world but it also had a direct impact on the economies of several regions. Businesses came to a halt and export and import was severely affected. This meant that businesses were not making as much money as they would in normal times. Because of this, there was a severe lack of profit which led to businesses running out of capital (Beaver, 2002). There were a lot of jobs lost and unemployment was on the rise. The overall spending power of the common man went low because of which the expenditures on luxuries such as traveling was also cut down. This had a direct impact on the European tourism industry because people started become more concerned about their well being rather than spending heavy and travel and leisure. An enormous decline was seen in the amount of money being spent in tourism (Hall & Lew, 2009). Mat ters were also made worse when the global economic crisis hit the region in the last 2000s. The world became rife of liquid money and economies were collapsing. This meant that the overall economic situation was not healthy. Companies were suffering as well with many big names being forced into shutting down their businesses. All in all, it was a tough environment to operate in for the European tourism industry. Social The positive aspect in the external environment for the European tourism industry, however, was that the people of Europe generally liked traveling. It was taken seriously and people considered it as their passion. This meant that when political and economic conditions in the region improved, people went back to investing in their travels and this was something that immensely benefited the tourism industry in Europe (Davidson, 1998). Technological Technology had a big part to play in the European tourism industry. For tour operators especially, technology was proving to be a menace. This was because their direct competitors, who would be the hotels and airlines themselves, started selling their products and services through the internet. During the last 2000s, sales through internet surpassed all other mediums. Technology provided a more convenient and easy access to people who wished to book flights and tours. Airlines as well as hotels both were now providing packaged tours for their customers, something the tour operators in