TUI travels
The European Tours - TUI Travels Plc
TUI Travels Plc is one of the world’s leading leisure travel companies with over 250 of the best loved and market leading travel brands in 180 countries and more than 30 million customers.
Question 1 - Value Chain
Value chain analysis is the process in which a firm identifies its primary as well as secondary activities that add value to the final products or service.
Primary activities.
Inbound logistics – TUI Travels Plc has a global supply chain which helps it by providing packaged or all inclusive and preplanned holidays for the customers. Usually these suppliers are the hotels that provide services such as for accommodations and meals, as well as airlines that provide transport to and from destinations. TUI will choose the most affordable from its chain of suppliers. Customers prefer using travel agencies since they attract very good prices compared to a do-it-yourself holiday. Operations – This is the process of turning the inputs into the outputs. This stage will involve TUI travels taking up the services and agreeing terms with the suppliers in order to put forward their offers for the customers. The standard package would usually consist of air transportation, both outbound and inbound, hotel accommodations, transfers from airport to hotels and back and other items such as insurance, meals and excursions.
Outbound logistics – This is the process which involves provide the holiday packages to the customers. TUI travels does this with the help of travel agents. TUI acquired and merged with First Choice, the 5th biggest tour operator. This helped TUI travels win more customers.
Marketing and sales – this is a stage in which TUI Travels Plc makes its customers aware of the services it provides and avail it to them. This is basically done through advertising. TUI travels offers online distribution of its services which improves the proportion of direct distribution and hence understanding the customers better. It
TUI Travels Plc is one of the world’s leading leisure travel companies with over 250 of the best loved and market leading travel brands in 180 countries and more than 30 million customers.
Question 1 - Value Chain
Value chain analysis is the process in which a firm identifies its primary as well as secondary activities that add value to the final products or service.
Primary activities.
Inbound logistics – TUI Travels Plc has a global supply chain which helps it by providing packaged or all inclusive and preplanned holidays for the customers. Usually these suppliers are the hotels that provide services such as for accommodations and meals, as well as airlines that provide transport to and from destinations. TUI will choose the most affordable from its chain of suppliers. Customers prefer using travel agencies since they attract very good prices compared to a do-it-yourself holiday. Operations – This is the process of turning the inputs into the outputs. This stage will involve TUI travels taking up the services and agreeing terms with the suppliers in order to put forward their offers for the customers. The standard package would usually consist of air transportation, both outbound and inbound, hotel accommodations, transfers from airport to hotels and back and other items such as insurance, meals and excursions.
Outbound logistics – This is the process which involves provide the holiday packages to the customers. TUI travels does this with the help of travel agents. TUI acquired and merged with First Choice, the 5th biggest tour operator. This helped TUI travels win more customers.
Marketing and sales – this is a stage in which TUI Travels Plc makes its customers aware of the services it provides and avail it to them. This is basically done through advertising. TUI travels offers online distribution of its services which improves the proportion of direct distribution and hence understanding the customers better. It
References: GERRY JOHNSON, RICHARD WHITTINGTON AND KEVAN SCHOLES (2011) – Exploring Corporate Strategy ABOUT US TUI TRAVELS PLC [ONLINE] accessed on (16th October 2012) http://www.tuitravelplc.com/about-us/our-people/colleagues