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Case Study
THE EUROPEAN TOUR OPERATORS CASE

Table of contents
Contents
1 PESTEL Analysis 4 1.1 Political Factors 4 1.2 Economic factors 4 1.3 Social Factors 5 1.4 Technological factors 5 1.5 Environmental Factors 5 1.6 Legal Factors 6 2 Porter’s Five Forces 6 2.1 Force.1 Threats of New entrants 6 2.2 Force.2 Threat of substitute products or services 6 2.3 Force.3 Bargaining power of buyers (Customers) 7 2.4 Force.4 Bargaining power of suppliers 7 2.5 Force.5 Intensity of competitive rivalry 7 The competitive rivalry . 7 3 Industry Life-Cycle 7 3.1 Introduction 7 3.2 Growth 7 3.3 Maturity 8 3.4 Decline 8

Executive Summary
The Europe is renowned for its tourism sector and the attractions, accessibilities and facilities for the tourist destination in the Europe is in satisfactory level. But with the passage of time, the tour operators of Europe face the challenges of contemporary issues in Europe. The Fiscal crisis, unemployment rates and the political instability lead the tour operator of the Europe to have a slow growth in the tourism sector. The study aims to scrutinize the factors and reasons behind the rigorous competitions in the tourism industry and low growth of tour operators in the Europe.

An analysis of the external environment of European tour operators
Tour operators in Europe are playing a vital role in attracting tourists of Europe. The tour operators of Europe are more organized, structured and are very efficient in providing services to the tourists. All over the Europe the tour operators are segmented and are operating their business with multi dimensional and multiple offices. At the end of the 2008, it has been seen the tourism sector of the Europe is generating 219.8 employment opportunities throughout the Europe that is 7.6 percent of the total employment of the Europe.
PESTEL Analysis
Pestle analysis is used to explain the current situation in the market that is involved with the mode of



References: Allen, T. (1985), Marketing by a small tour operator in a market dominated by big operators, European Journal of Marketing, Vol.19(5), pp Baywater, M. (1994), Who owns whom in the European travel trade, Travel and Tourism Analyst, No.3, pp Bitner, M., and Booms, B. (1982), Trends in travel and tourism marketing: The changing structure of distribution channels, Journal of Travel Research,Vol.20(4),Spring, pp Bote, G., Sinclair, T. (1991), Integration in the tourism industry: a case study approach, in Sinclair, T., and Stabler,M., (eds) The tourismindustry: An international Britton, S. (1989), Tourism, dependency and development: A mode of analysis, in Singh, T., Theuns, H., Go, F., (eds), Towards appropriate tourism: The case of developing countries, Peter Land, Frankfurt, pp. 93-116. Buhalis, D., (1993), Regional integrated computer information reservation management systems as a strategic tool for the small and medium tourism enterprises, Buhalis, D.,(1994), Information and telecommunications technologies as a strategy tool for small and medium tourism enterprises in the contemporary business Christopher, M., (1991), Distribution and Customer Service, in Baker, M. (ed), The Marketing Book, 2nd ed., London: Butterworth-Heinemann, pp

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