Saga Holidays
Section A: Analyse the strategic market environment of Saga Holidays
Introduction
Saga Holidays was a family-run business which started from year 1948. This business had steadily grown until nowadays. As a result, it has recognised reputation as a travel organiser that concentrated serving the older target market only.
However, the chairman of the Saga Holidays had decided to retire in October 2004. Thus, he had sold the organisation to the Charterhouse with an incredible amount of £1.35bn (BBC News, Oct 2004).
Although no one can prove that it is worth such a high price, this article endeavour to analyse its strategic market environment.
External Environment Analysis
PEST Analysis
PEST stands for Political, Economic, Social and Technological environment. It is vitally important that using PEST analysis to review Saga Holidays macro environment.
Table 1 demonstrate the summary of PEST analysis for Saga Holidays.
Political
According to Telegraph News (2006), the UK government was considered broaden the age discrimination legislation. In this case, Saga Holidays that restricted holiday’s service to the people over 50’s may have caused the organisation problems. Furthermore, the reduction of the private pension and increment of taxes will lead to the less discretionary spending power to the community. Hence, the revenue for Saga Holidays may decrease. There is some restriction of travel destiny caused by government control over the visa, such as Afghanistan. This is because of the terrorist’s activities in particular countries. Again, people are afraid of the terrorists, i.e. the horror terrorism activities on 11/9/2000 devastate of World Trade Centre at New York. This had stop people willingness to travel.
Economic
One of the main concerns for the economic is the pension crisis. Nowadays, the people are paying more and more pension compared to old days. As the result, the financial burden of the community will guide to less travel.
Introduction
Saga Holidays was a family-run business which started from year 1948. This business had steadily grown until nowadays. As a result, it has recognised reputation as a travel organiser that concentrated serving the older target market only.
However, the chairman of the Saga Holidays had decided to retire in October 2004. Thus, he had sold the organisation to the Charterhouse with an incredible amount of £1.35bn (BBC News, Oct 2004).
Although no one can prove that it is worth such a high price, this article endeavour to analyse its strategic market environment.
External Environment Analysis
PEST Analysis
PEST stands for Political, Economic, Social and Technological environment. It is vitally important that using PEST analysis to review Saga Holidays macro environment.
Table 1 demonstrate the summary of PEST analysis for Saga Holidays.
Political
According to Telegraph News (2006), the UK government was considered broaden the age discrimination legislation. In this case, Saga Holidays that restricted holiday’s service to the people over 50’s may have caused the organisation problems. Furthermore, the reduction of the private pension and increment of taxes will lead to the less discretionary spending power to the community. Hence, the revenue for Saga Holidays may decrease. There is some restriction of travel destiny caused by government control over the visa, such as Afghanistan. This is because of the terrorist’s activities in particular countries. Again, people are afraid of the terrorists, i.e. the horror terrorism activities on 11/9/2000 devastate of World Trade Centre at New York. This had stop people willingness to travel.
Economic
One of the main concerns for the economic is the pension crisis. Nowadays, the people are paying more and more pension compared to old days. As the result, the financial burden of the community will guide to less travel.