Porter s five forces of tourism industry
Bargaining power of suppliers in hotel industry
The low intensity of competition in certain areas over the previous years had led to an increase of the bargaining power of the existing businesses vis-a-vis the customers and an increase of the prices per overnight stay Mountainous Corinthia, Arkadia but in these recent years of the financial crisis prices have adjusted to a very good quality-price ratio. Tour operators also control to a great extent the availability of seats when it comes to a destination's airlines, as well as the setting of the prices that will be offered across the market Bastakis et al. In competition between already existing tourism businesses, the new technologies and the Internet affect product differentiation, the structural cost and the switching cost. Bastakis, C. Also, newspapers do not provide lucrative air freight commodity they once did. In several destinations, raw material suppliers, such as local producers, enter into Local Quality Pacts with accommodation and food service businesses, aiming at promoting the authenticity of the destination and securing the best prices for the products for the businesses. Porter's five strategies of a Global Business Strategy, as listed by Evans et al. Dev, C. The strategic impact of the internet on the tourism industry, in Sigala, M. Porter, M. As regards the harmonization degree, if it is low, the subsidiaries are independent, whereas if it is high, then there is close control by the parent company.
For example, Iberostar are expanding by creating resorts in Croatia and the Caribbean. Oosthuitze, H. Some of the customers check the prices through all channels especially from websites like Groupon which will offer customer better price usually. Not every customer care about the environment issue but others may appreciate the sustainable plan.
Porters five forces example
UK unemployment fell 65, in the three months to the end of May. Another negative example about technology is telecommunication service. Everything is labelled with prices and its all transparent. Hill, J. It is worth noting that the average price given by a hotel to a tour operator is 77 euros, while at the same time the same room reaches euros NBG, Kim, B. One appeal for new airline entrants is the forecast increases in UK air travel from million at present to million journeys in
By contrast, low-cost airlines operating short hauls were better able to survive and grow. Tourism business management.
Its good for businessman but not so good for travel agents. The dramatic decrease of Greeks during the years of the financial crisis and the drop in bookings at the destination hotels significantly increased the bargaining power of buyers, leading to a decrease of prices as regards hotels, as well as an enhancement of the amenities offered.
Cambridge: Harvard University Press. This substitute, which introduces dramatic changes to the tourism economy will be analyzed more extensively in a subsequent section. Factor 2 — Product DifferentiationA new entrant has to have a unique selling point to attract customers.
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