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UNIVERZITA MATEJA BELA V BANSKEJ BYSTRICI
EKONOMICKÁ FAKULTA
KATEDRA EKONOMIKY A MANAŽMENTU PODNIKU
Seminárna práca
Travel Agency Ltd.
Názov predmetu: Service Marketing
Akademický rok: 2014/2015
Dátum odovzdania: 2014-12-23
1
CONTENT
INTRODUCTION
1.CHARACTERISTICS ..................................................
.............................................4
2
2.MARKETING
MIX.................................................................
................................................4
2.1
Product.............................................................
....................................................................
.4
2.2
Distribution........................................................
...................................................................
6
2.3
Price...............................................................
....................................................................
....6
2.4 Promotion......................................................
.................................................................
.......8
2.5 People, physical evidence, and
processes...........................................................
........9
3.MARKETING
STRATEGY............................................................
.........................................9
4.QUALITY OF
SERVICES............................................................
.............................10
3
5.SWOT
ANALYSIS............................................................
........................................10
6.RECOMMENDATIONS...................................................
.........................................12
CONCLUSION..........................................................
.................................................. 13
INTRODUCTION
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I have chosen the travel agency for this project which is
operating at the market of services for more than 20 years. I have
described system of service marketing, its management, elements and
processes, the process of strategy application, marketing mix of the
travel agency, ways of measuring and assuring quality of services of
this travel agency as well as tools and processes for measuring
customer satisfaction. I have used internal documents of the
company, web page and interviews with managers.
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1. CHARACTERISTICS
Travel agency has been operating since 1993. Travel agency is based
in Nitra, where they established its first branch and subsequently
spread to other cities in Slovakia. Today travel agency is located
in addition in Bratislava, Trenčín, Banská Bystrica, Žilina,
Partizánske, Kosice, Trnava and Nové Zámky. The company expanded its
location in the Czech Republic and Hungary, where company created
its branches, later there were established heads of department and
now they operate independently under the supervision of the
management of Slovakia as a limited liability company based in Brno
and Budapest. The company was trying to expand to Romania, but the
cooperation lasted only one season and due to poor qualification of
incoming partner had failed.
Travel agency offers comprehensive services in the field of tours
and therefore transport, accommodation and other services such as
guide, program etc. These parts combine to products offered to final
consumers and intermediaries tours - tour operators. In the term of
scope of activities we can consider company at the wholesale level –
it is preparing, organizing and creating tours. In terms of firm
size it is as small business. The number of employees during the
year is changing, depending on the season. Number of permanent staff
is 34 people. The main scope of their activities is the preparation
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of promotional materials, ordering products from abroad, transport
organization and ensuring the accommodation – organization of tours,
selling product to the final consumer, communication with affiliates
and consumers.
As the interest of the travel agency was and is to promote
Greece, company executives have decided to spread this awareness not
only through the sale of holidays, but also through the cuisine. In
2006, they opened restaurant, which serves all the typical Greek
specialties.
2. MARKETING MIX
2.1. Product
At the beginning of its existence in Slovak market, travel
agency aimed with its products only on Greek Republic. Nowadays it
offers also tours into more countries.
This year, its offer was extended by new destinations. Last year,
Mallorca was added as a new possibility and this year more
destinations in Spain and Italy, Morocco, Portugal and Egypt were
added. In this season it extended also sightseeing tours to Italy
and traditionally it offers also sightseeing tours to Greece and
trip to Venice´ carnival.
The agency offers the greatest range of products in Greece, where
customers have as well possibility of sightseeing tours.
The concept of the product covers several areas. Travel agency
offers accommodation in different destinations and different
categories of quality and price so that is why it is able to meet
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the needs of the market. Travel agency tries to facilitate the
selection for clients and therefore the catalogue states its own
assessment of accommodation. There is used international scale of
stars for hotels and the international scale for apartment houses is
so called keys. As a trend not only in travel agency, but also in
other travel agencies, the company states in addition to official
categories its own rating of hotels and apartments. This assessment
is from the evaluation of questionnaires of customer satisfaction as
well as from the evaluation of employees who are visiting various
destinations.
Target market: According to the statistics of company,
developed during last three years, a half of customers are at the
age from 26 to 45 years old. This range includes 52%, consisting of
32% of clients at the age from 26 to 35 years and 20% of clients
from 36 to 45 years.
Travel agency attempts to offer services to three main groups
of clients. These groups are distinguished according to the category
of accommodation facilities, catering and services offered in
accommodation facilities and price:
Unpretentious clients
Simpler accommodation in apartments with category of 1 or 2
stars is offered. Nutrition is usually individually solved or
there is a possibility to pay one food per day breakfast/
dinner. A price of this type of holiday is by means of bus
transport about 250-350. By means of air- transport it is 400-
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500 (It means list price for an adult person without seasonal
discount)
Families with children
Standard accommodation in 3 or sometimes 4 stars hotel
complexes, situated in gardens nearly beach including
facilities offering possibilities of entertainment directly in
hotel with children playground. Catering is in form of all
inclusive, which simplify holiday with children and minimize
additional expenses. A price of this type of holiday is about
570-700 by bus transport. By airplane it is 700-900 (price for
an adult person without seasonal discount). Majority of hotels
offer high price reductions for children or even free
accommodation under certain age.
Demanding clients
For this group of clients of the travel agency offers wellness
and spa hotels, that belongs to international organizations and
represents a guarantee of quality. Clients are provided by full
service, including minibar, wellness and some services of hotel
are for. Catering is in form of all inclusive or even ultra all
inclusive, supplemented by international kitchen or culinary
evenings. A price of this type of holiday about 1000 by air
transport which is demanded form of transport in this group.
2.2. Distribution
This travel agency has its own premises in nine cities in
Slovakia and in addition it operates a call centre based in
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Bratislava and a web site where you can buy tours. For greater
coverage of the market travel agency has entered into contract about
brokering of tours with selling portals such as. Invia, travel.sk.
Other business partners are travel agents, which are engaged in
commission sales as well. Travel agency announced list of them on
the site and there are a total of 637 business partners throughout
the country. Affiliates are bound by the contract and rewarded by a
percentage of the sales. Travel agency gives a commission of 10% of
the tour price at preferential prices tour (first minute, last
minute) and 12% of the list price of the trip. Each company pays
them differently. In this travel agency these commissions are
counted from the invoice price for the tour and remain in the travel
agency.
2.3. Price
The company is trying to adjust the price of their products to
market needs and the same principle uses for product choice. Price
calculations are published when travel agency release a new
catalogue, which includes a prices for that season. In this there
are basic prices, which subsequently are subject to additional
discounts such as first moment, club discounts and special
discounts. Discounts that are not listed in this catalogue are the
last minute. These discounts can be seen by customers on the
company's website and are usually applied from May to the end of the
season. Discounts are the following:
- First Minute – 13 – 22% from the catalogue price
- Additional discounts to First Minute – 1-5%
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Benefits for members CLASSIC CLUB
- 3-10% discount plus additional benefits
- 23% discount on second tour
Benefits for members GOLD CLUB
- 4-15% discount plus additional benefits
- 23% discount on second tour
Benefits for members PREMIUM CLUB
- the same discount as in the Gold club
- 5% higher discount on First Minute
In the comparison of prices of different travel agencies,
travel agency is between cheaper travel agencies. This argument have
emerged from a price comparison website for travel agents
profitour.sk where criteria were: Greece, accommodation in hotel
category 3 *, air transport, catering all inclusive for 2 adults in
discounted price - first moment with the same discount given to the
tour, in the second period mid-July 2015, and the fees.
11
Kartago
Firo tour
Travel agency
Happy tour
Hydrotour
Satur
0
400
800
1200
1600
2000
Series1
Graf: source –webpage of Travel agency
2.4. Promotion
Company has its own organized department of relations with
public and marketing, including one employer who is consulting
decisions with management. Marketing communication of company is
concerned with sale of tours of company and with forming of positive
relations with public.
Advertisement
Company makes use of an advertisement as a paid form of
campaign only partially, mainly during summer season when last
minute abatements are current. Therefore, company uses product
advertisement by presentation of actual products by means of
newspapers and magazines. Other forms of advertisement are not used
by company.
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Sale supporting
Sale supporting is a device used to attract new customers and
to differ itself from competition. This fact is realized by company
and therefore this form is used in wider range. Company
distinguishes two types of sale supporting:
Consumer type is aimed at travellers of Travel agency. Firstly
there is a Club of Travel agency where permanent customers are
rewarded. This club was produced by company in 2008 and today it
includes more than 1800 members. Members have different discounts on
tours, which are increasing with number of absolved tours.
Commercial sale supporting is focused on the increase of sale
motivation. Every year, a competition for the best seller is
organized by Travel agency. It consists of both affiliated companies
and individuals as well. To increase their motivation, these
meetings take place in enjoyable environment. For example, in 2013
skiing in Semmering was organized to improve relations between
employers of travel agency.
Public relations
The field of public relations is performed by means of public
events, news and sponsoring. Last year, competitions of companies
like Fann and Marrionaud were sponsored by this travel agency which
sponsored Valentine´s trip to Paris for two persons.
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Direct marketing
A main device of direct marketing of travel agency is a
catalogue that is prepared for every season by company. It includes
offer of products, price list, information about destinations, etc.
Company runs also an internet page where it is possible to gain
information about destinations and tours, to perform price
calculation and book some of services..
2.5. People, physical evidence, and processes
The other three P’s were not very familiar to the agency.
That is why I wanted to evaluate the agency’ s activities that
could be recognized as the additional 3 P´s.
During the communication with clients, the most important
factor for travel agency is listening to customers´ needs. The main
idea is to build trust. The purchase is followed by a request for
feedback in a form of questionnaire.
Physical evidence of the received service during the process of
purchasing are a large selection of
brochures, a documentation of the purchase and travel plan.
The training and requirements of the personnel working directly
with the clients is one of the most important features in the Travel
agency. The most important experience when they are selling tours to
their clients is a detailed knowledge of the destination, package,
and everything what is included in it.
3. MARKETING STRATEGY
14
Travel agency has been operating for a long time and during all
seasons its major area of interest has been Greece. To that country
many clients are traditionally travel for their vacation. The spirit
of the country of origin of the owners bears their philosophy. This
is the reason why the travel agency has its slogan.
Origin of the owners affected specialization of the agency,
which describes itself as a specialist in Greece. It was the first
travel agency´s slogan. The intention of the owners is to show to
the travellers small nooks of Greece and let them get to know their
culture and taste, so that is why the company was in its beginnings
oriented to self catering apartments. Later, due to the trend of
"all inclusive" holidays the agency has begun to focus on the large
hotel complexes, although today offer a wide selection of
accommodation of lower category without food and destinations such
as small Greek islands as Skiathos, Skopelos etc. Their intention is
to support the discovering of Greece and not just the hotel complex,
but also to promote domestic entrepreneurs, owners of apartment
buildings, restaurants, and shops. The company intends to support
partners on the Greek side, but also to offer, despite a saturated
market, products tailored to customers and therefore adapts to
different segments. For purposes of ensuring the quality and
reasonable price for customers it uses personal contacts with
managers and owners of hotels and apartments in Greece.
4. QUALITY OF SERVICES
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For ensuring the best quality of services, Travel agency has
the evaluation system in the form of questionnaires of customer
satisfaction. This evaluation system in the form of rating hotels
and apartements in catalogues helps new customers as well as the old
ones to choose what fits them best. The agency states its own rating
of hotels and apartments in addition to official categories. This
assessment is from the evaluation of questionnaires of customer
satisfaction as well as from the evaluation of employees who are
visiting various destinations.
5. SWOT ANALYSIS
Strengths
The distribution network of its own branches
Trained and professional staff
Ability to be price competitive
Good management of financial resources
Membership in the Association of Travel Agencies
Certificate of quality by the Lloyd´s
Weaknesses
High fluctuation of staff
Lack of communication and reporting of information in the
agency
Marketing activities are not so sophisticated
Small ability to adapt to specific customer requirements
Opportunities
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Reliable foreign business partners
Airlines which are increasing the quality of services provided
The growth of living standards
The trend of online shopping
A large number of potential customers
Threats
Easy transition of customers to competion
Dependence on the state of the Slovak economy
Existence of the large amounts of substitutes
Dependence on affiliates and demand of customers
Increasing competition from foreign travel agencies
6. RECOMMENDATIONS
Change of logo
Travel agency is concerned with tours to
country of Greece and these are also its key products. Although, it
extended its offer with new destinations, it tries to maintain its
starting philosophy. Disadvantage is laid in weak communication.
Every company should compose its logo with elements associated
with its philosophy.
What is more, elements associating connection of company with
holidays at sea should be used in graphical part. It includes for
example the sun, conches and wave because of connection with
original company logo.
Out of home
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Since the company already uses PR, sales promotion and direct
marketing, I would suggest maybe more demanding investment,
investment in advertising.
Second suggestion would be investment into advertisement. It do not
have to be financially difficult forms of investment into
advertisement by means of television or radio. It would be suitable
and sufficient only to place some network of billboards to increase
awareness of public.
Gifts
Company should think about gifts of daily need that would
remind travel agency to consumer and simultaneously evoke feeling of
added value and multiply impression from brand. The second variation
would be things usable during holiday, such as inflatable balloon in
company colours and logo. It would support an experience from
holiday and capture attention of clients of competition
Viral marketing
Viral marketing as a trend in marketing communication is used
to reach out a wide target group, since it can not be spread
intentionally, so this method is suitable for products intended to
the masses similar to the products of travel agencies, which have
several target groups.
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CONCLUSION
Travel agency has taken some steps for upgrading its website,
increased the level of communication with the media, but still does
not use its full potential and has not integrated communication
focused on the external environment, which also includes the target
market of the company. Therefore, the agency should take some
measures to improve the situation and increase the level of
19
communication. Especially when it is clear that the market in which
it operates is broad and provides the opportunity to gain new
consumers and bears many substitutes with similar properties. To
achieve this it is necessary at first to unite brand communication,
for clearer differentiation from the competition in the market.
20
SOURCES:
1. Webpage of the travel agency
2. Zákony a smernice
Zákon č. 281/2001 Z.z. o zájazdoch, podmienkach podnikania
cestovných kancelárií a cestovných agentúr a o zmene a
doplnení Občianskeho zákonníka v znení neskorších predpisov
3. Internal documents of the travel agency
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