Economics

Analysing Market Opportunities

Introduction

Travel and tourism sector organisation are being summarised as one of the most transitive sectors that contributes to ahighextent in the GDP of UK. In the UK, the travel and tourism sector has helped the economy to grow up in past few years. The learner would be focusedon the contribution of the travel and tourism sector in the GDP growth of UK. For this, the learner would discuss the growth of travel and tourism sector of UK by analysing the external market audit report. For this study, the learner will organise a secondary research study for analysing the market growth of the service sector organisations in theUK.

The travel and tourism sector is now growing in the market of UK by contributing vast numbers of earnings in the counting of GDP of the nation. From past few years, it has been seen that the tourism sector of UK is now have been affected by some external factors that have restricted these organisations to earn as many earnings in the market. Also, these external factors have affected the GDP of UK. Terrorist attacks, technological change, political decisions and other changes have influenced the market growth of travel and tourism sector of the organisation. The learner would use various tools and techniques in this study for gathering normative data for the chosen research issues. These mentioned factors are now days inflecting the travel sector to perform comfortably because they are being failed to earn the trust factor of customers or consumers in the market. Any political issue imposed the travel sector to deal in aspecific way. By keeping these entire factors in the mind, the learner will conduct secondary research.

Aims and objectives of the study

The major aim of this study is to identify the external environment of the service sector of UK. The learner has even aimed to identify the performance of the travel and tourism sector of UK in the economic market of UK.

Understanding stakeholders and managing expectations

Stakeholders and the shareholders are the important part of an organisation that helps the organisation to get updates regarding the external environment of the organisation (Burke,2013). For an organisation, it is so much important that, they should take care of its external environment. As per the organisational performance perspective, the most crucial factoris how much the organisation knows its external environment. The reason is the external environment of an organisation helps that organisation to manage its expectations in the targeted market. The feedback from the customers and other stakeholders are helpful for an organisation to know their external environment.

Methodology

Data collection and Analysis

In this detailed study, the learner will go with several research tools and techniques such as realism and interpretivism research philosophy, inductive approach and exploratory researched design. As the learner has set anaim to conduct this entire study on secondary sources based, the learner would collect all relevant data from the relevant sources to make this study viable. The realism and interpretivism research philosophy will help the researcher to collect all related regarding the chosen research issue. The interpretivism and realism research philosophy would be helpful for the researcher to collect relevant data because according to this kind of philosophy, the researcher can go through with thedetailed investigation. Further, the researcher has focused on inductive research approach and explanatory and descriptive research design, which will help the researcher to explore the selected research issue in abetter way (Shaw, 2007). As per the chosen research issues, the researcher needed to focus over the impact of theexternal environment over the travel and tourism sector of UK and hence to solve out this issue, the learner must focus over relevant sources. Along with this, the learner would focus over descriptive as well as explanatory research design because the question is about the entire service sector and hence the learner would continue with secondary sources of data to cover the chosen sample size as well as thearea.

Online research techniques

For the online research technique, the researcher will use the technique that has been prescribed by Boolean. Shaw (2007) stated that the internet had made the task of getting feedback from the client or customers easier in the market. The statement has deduced that for an organisation, the most important task is to collect the feedback from the customers in the market regarding their services so that based on which they can go for further improvement.

Offline research techniques

As per the offline research technique, the model 5Ws and 1H model is helpful. Along with this, the researcher has targeted to cover a larger group of customers who are engaged in this industry (Gash, 2000). For this, the learner has decided to focus on secondary sources of data so that proper range of data should be collected to justify that chosen research issue. It will include libraries, trade directories, magazines, newspaper archives and networking sites (O Docartaigh, 2012).

Ethical considerations

As per the data collection act 1998, few ethical rules and regulations have been framed to secure the personal records as well as opinions of respondents (Wilson, 2010). The learner has been restricted to take any of responses from any of respondents forcefully or without their concern. Along with this, it has been defined that if any of respondents are not interested in explaining his or her views,the researcher has no right to enforce that respondent.

Limitation of the study

As the researcher belongs to theacademic field, hence the learner has not had enough time as well as thecost to conduct detailed investigations. The learners have another limitation to get access to official sites of government for collecting relevant secondary data regarding the chosen research issue. The leaner has not enough time to collect secondary from various sources,and hence, the learner has taken help from previously published online articles as well as research papers.

Findings & Discussion

The macroeconomic analysis has been defined as to measure the external environment of the organisation (Pitt& Koufopoulos, 2012). Under the microeconomicanalysis, a marketer is holding a detailed investigationinto the external environment to identify the risk and uncertainties. Along with this, the marketer is even calculating the current market position of the organisation for estimating the future of the organisation. In below sections, the learner will discussmacroeconomic environment of thetourism sector of UK by using various tools and techniques.

The travel and tourism sector of UK is one of the highest contributorsto UK in their GDP. The only sector has the potential customers with avariety of services that have helped other sector of UK to develop their market size. The travel and tourism sector of UK has promoted other sectors in the market for the betterment of economy of UK. The services are likeTelecommunication services, hotel services, airline services, logistic services and other services. From an external report on the economic growth of UK, it has been found that the GDP of UK has been increased by 1.5% in 2017 after Brexit (Vanhove,2017).

The travel and tourism sector of UK is the high yield income sector that is contributing 3.4% out of total GDP in the economic market at the end of the year 2016. The report has even shown that the travel and tourism sector of UK has supported the employment issue and has contributed 4.6% of the total employment. As per the analysed economic report about travel and tourism sector of UK, it has been noted down that; the travel sector has helped the government of UK to raise up their GDP. The sector has provided as much employment in the nation that has helped UK to stabilise their GDP growth rate in the domestic market as well as in the global market (Vanhove, 2017).

According to the above economic analysis, it has been framed that the UK has been ranked as one of the highest tourist visitornations in the world. UK is in number eighth in the list after top nations like France, USA, Spain, China, Italy, Turkey and Germany. As per the economic point of view, the UK tourism has scored well in the market. The tourism sector has invested almost 26.4 £bn in the market, in return, it has gained 22.2 £bn from inbound visitors and 24.3 £bn from domestic visitors. The figure has even rationalised that the number of daily visitors is about 53.9 £bn in theUK. This entire economic growth has stated that the tourism sector of UK has helped the nation to develop its economic growth as well as market growth in the international market (Tourismalliance.com, 2018).

Conducting a market analysis

Market analysis is the perspective feature that is helpful for any of organisation for analysing its market in abetter way (Johnson, Whittington& Scholes,2012). The market analysis has been defined as the technique under which the marketer is segmenting the entire market into several segments or sections and based over the suitability as well as availability; the marketer goes with atargeted market.

STP contains three basic terms of market analysis, segmentation, targeting and positioning

As per the STP, the UK tourism has been targetedboth inbound and outbound customers of all range of customers based on their interest. The travel and tourism sector of UK has been trended as one of higher contributor sector in the GDP growth. As per the above discussion, it has been noticed that the UK tourist destinations are enjoying inbound visitors from China. At the end of the year 2015, the number of visitors is about 12m that has been raised to 15m by the end of 2017. This analytical report has stated that tourist destinations of UK are getting popularity in the international market (Tourismalliance.com, 2018).

The economic conditions of UK are fine and hence the government of UK provides better services to the inbound tourists such as free visa based on theoccasion. The report has even said that the travel and tourism sector has gained as many earnings in the market as compared to sectors hence it has been assumed that the market of thetourism sector of UK is stronger than other sectors.

Identifying trends in the marketplace

It has been defined that in the international market a large sector organisation or an industry must face several challenges as what is now facing by tourism sector of UK. The tourism sector of UK is facing tough competition in the international market from other tourism sectors of different nations. It has been already mentioned that tourism sector of UK listed at number eight in the listing hence, it can be assumed that the tourism sector of UK needed to focus on the social marketing concept. It has also been seen that in the current market, visitors are looking for additional services offering by the organisationsJohnson,Whittington& Scholes (2012) stated that tourist destinations are decided by tourists in the market but other factors of social marketing help to attract visitors to visit their nation. The statement has deduced that the nation like France, China and Spain are providing better tourist facilities that are the reason the competition stands higher for UK tourism sector in the international market (Pitt& Koufopoulos,2012).

The 5Ws and 1H model has been defined in a sense to support the travel and tourism sector to overcome their challenges or problems. By the help of this model, the tourism sector of UK might improve the market growth in the international market. Wilson (2010) defined that the 5Ws and 1H model has been defined as one of the best analytical tools to understand what else needed to be done by any of organisation to analyse their current market also to estimate the future market.

Evaluating the opportunities and threats

As per the above discussion, it has been generated that the tourism sector of UK is in anadvantageous position as they have large numbers of visitors in the market. As per the external market analysis, it has been found that the organisation is getting tough competitions from other nations but in the domestic market, it has astrong market position. Along with this, it has been summarised that for the tourism sector of UK there are numbers of opportunities in the market such as taste and preference of the customers and the digitalised marketing tools and techniques. On the other side, both these opportunity facts became major threats to UK tourism. The reason is from the perspective of taste and preferences, other nations are offering better services then theUK,and for implementing digitalised marketing tools and techniques, they need more qualified individuals in the sector.

Summary & Conclusion

The entire study has summarised that, in the UK, the travel and tourism sector has helped the economy to grow up in past few years. The learner has been focusedon the contribution of the travel and tourism sector in the GDP growth of UK. From an external report on the economic growth of UK, it has been found that the GDP of UK has been increased by 1.5% in 2017 after Brexit. The report has even shown that the travel and tourism sector of UK has supported the employment issue and has contributed 4.6% of the total employment. The tourism sector has invested almost 26.4 £bn in the market, in return, it has gained 22.2 £bn from inbound visitors and 24.3 £bn from domestic visitors.

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