Consolidation in the Tour Operator Industry Case Study

Consolidation in the Tour Operator Industry - Case Study Example Visit Britain expects tourism to grow into a ?113bn industry if managed properly. However, despite tourism funding by the government being doubled since 1997, there is a threat that the UK tourism sector could slip behind international competitors. Economic Environment The tour operators’ industry has faced both economic and structural challenges over the past five years and through 2013-14 (Ithe BIS World, October 2013). Industry revenues have been as a result of economic downturn, lower disposable incomes, and reduced consumer confidence, due to which domestic tourists seek cheaper destinations. Tour operators’ revenues in 2008 show an increase over 2005 – from â‚ ¬60bn to â‚ ¬84bn (Appendix B) but this could also be, due to rise in tour prices, a rise in airfares and hotel charges. Therefore, loss of consumer confidence and declining incomes is a threat to the sector. ... Consumers demand value for money and consumers seeking mind prefer package aged holidays (Euromonitor International, 2013). Tour operators now offer flexible, dynamic packages but credit crunch impacts tourism as well. Consumers have responded to the credit the unch by choosing to holiday within the UK which has led to the trend of ‘staycation’ (Williams, 2008). Staycation holidays have increased by 13% and outbound travel decreased by 18% (Stamford, 2009a) which suggests that staycation and packaged holidays provide an opportunity to tour operators to redesign their product offerings. Technological Environment Technology has empowered the consumer in many ways. Low-cost airlines have made holidays more affordable; in addition, are the high-speed train networks. Internet penetration provides an additional distribution channel. Technology enables access to consumer data which facilitates tailoring their offerings to consumers. Mobile, technology and social networking have further empowered the consumer in seeking information, comparing and reading reviews about service providers before booking their holiday. This has helped major tour operators such as TUI to target specific segments through the strategy of differentiation. Technology thus is an opportunity to exploit the sector. Environment Tourism is generally associated with environmental degradation and ecological imbalance. The region is negatively impacted when the level of tourists exceeds the environment’s ability to cope with the use (UNEP, n.d.). In addition, natural resources are depleted; land area is reduced as infrastructure development takes place. Local resources are also used up by tourists thereby impacting the lives of the local people.

Management Accounting Master Essay Example | Topics and Well Written Essays - 2500 words

Management Accounting Master - Essay Example Due to the changes taking place in the accounting field today, it is necessary to bring appropriate measures for improving the managerial accounting techniques and procedures. Obtaining adequate in formations required for the organization is the main driving force for change. For meeting the organizational goals, it is necessary to implement the relevant managerial accounting policies effectively. Increased competition requires adequate changes in the management techniques. Earlier period, management accounting was concentrated for the determination of cost, control of finance, and also to provide concentration for minimizing the wastage of resources. In addition to this, the management accountant is also responsible for the preparation of accounting statements in an effective manner. But recently, the role of management accountant is enhanced due to the changing scenario of the world of accounting. As far as an organization is taken in to consideration, management accountant is resp onsible for taking the adequate managerial decisions for the future running of the entity. Management accountant is one who should possess thorough knowledge about the relevant aspects of the enterprise as a whole. The concept of accounting point of view of both management and financial accounting is not at all similar. The MIS (Management Information System) is very crucial in recent days. "MIS (management information systems) is a general term for the computer systems in an enterprise that provide information about its business operations. It's also used to refer to the people who manage these systems." (Moore 2007). For the purpose of mitigating the existing difficulties associated with the concept of managerial accounting and its principles and policies, it is necessary to undertake effective implementation strategy and also to undertake the reinvention of management accountants. The organizational customs and its environmental factors are also effecting this reinvention to certain extend. Management accounting principles and its applications are fundamental for the preparation of financial statements and report to the entity for taking appropriate future decisions. Management accounting is highly concentrating for taking the most relevant decision required within the organization, and it is necessary to obtain the proper information about the entity for taking decisions, and such information should be more accurate in nature. MIS is a significant concept, because it is possible to undertake the business operations more effectively through this system. So, major factors responsible for changes in the management information system are- Changes take place in the economy. Awareness about global competition. Emergence of recent innovative measures and technology. Therefore, it is crucial to consider the changes in the organization in an effective manner for taking the prominent decision which may affect the performance of the entity in future. Implementation of strategic management accounting tools are also effective for this. So, the effective installation of the MIS is important for the adequate functioning of an entity. It is very essential to maintain and develop a proper accounting theory for the proper implementation of accounting procedures and the effective reporting of