European Tour Operators Confronting Competition In The Tourism Industry Case Solution

Changing socio-cultural landscape and development of social media have also facilitated people to travel and explore different cultures and traditions across the border. Technological innovation has also provided more options for both consumers and tour operators to avail of different options for leisure travelling. 

2. Porter analysis structure provides a suitable interpretation of the internal environment of the industry. Considering the competitive rivalry, it has become quite less intensive between major tour operators, as mergers and acquisitions have greatly reduced rivalry among major players. The threat of substitutes has had a major impact on the industry, with the arrival of online platforms that provided great convenience to travelers. The bargaining power of buyers till a certain time was not that strong due to limited options available for quality tourism. Before 2007, the global economy was experiencing growth that made people more flexible in their financial expenditures. The bargaining power of suppliers has a major role to play in the tourism industry. A number of suppliers operate in the industry, for instance, lodge service providers, transportation, and travel agencies. A number of suppliers have been offering a variety of services to attract potential customers. The greater the number of suppliers, the lesser the bargaining power of the suppliers.