Tourism Marketing Principles
Chapter One
An Introduction that Defines Tourism
Marketing Concepts
Source:
Tourism
marketing principles refer to the approach that tourism businesses explore for
marketing their services as well as products. Etihad Airways is a prominent
airline company that belongs to the tourism sector
Chapter Two
Background of the Company
Source:
Etihad
Airways was established as a national airline company of UAE in 2003. The
company focused on exploring air travel along with expanding its service
throughout the globe. The initial fight of Etihad Airways was operated in
November of 2003 when the company set their vision towards innovation. Along
with that, the company has introduced high-quality entertainment facilities and
comfort options at this phase. The company shifted its focus towards
sustainability by using biofuel in 2012
Introduction of Etihad Airways
Figure: Revenue
generation of Etihad Airways
Source:
Presently,
Etihad Airways has expanded its business in prominent countries of the world.
It facilitates the company to reach a broader audience and offer its attractive
services. The graph shows that the revenue of Etihad Airways was £ 4.43 billion
in 2023 and it increased from the previous year
Chapter
Three
External
Analysis
Porter’s Five Forces
Source:
Threats of new entrants
The aviation industry is a huge
industry with a high barrier to the entry of new entrants. One of the most
challenging parts of this industry is that it needs a lot of capital and the
resources that are needed are very costly. The main supply is the parts of the
aircraft which is highly cost-effective and there are other important factors
that are needed to enter this industry. Along with that, professional pilots
and crew members, skilled employees and other members are difficult to gather
and without that, one cannot enter this industry. Furthermore, it is an
extremely competitive industry which needs to follow a lot of regulations and
maintaining all the laws is difficult. Hence, it can be said that the threat of
new entrants is very low for Etihad Airways
Threats of substitute
Substitutes for airlines can be other
modes of transport like trains, buses and others. Train and buses can be chosen
as a substitute as their ticket prices are also very low. However, one cannot
travel to every destination including international trips. Along with that,
travelling to very far away destinations by train and bus can be very
uncomfortable as it will be very time-consuming on the other hand, taking an
airline route for travel can save a lot of time and also offer a comfortable
journey. Additionally, one has to choose an airline if one wants to travel to
an international destination. Hence, the threat of the substitute is very mild
for Etihad Airways
Intensity of competition
The aviation industry is a
competitive industry and there are a lot of competitors of Etihad Airways.
Emirates Airlines and Qatar Airways are the two other airlines that are similar
to Etihad and are UAE-based. Along with that, there are many international
airlines such as British Airways, EasyJet and others that are also competitors
of Etihad as this airline also flies internationally. These Airlines also
provide luxury services to their passengers at a competitive price. Hence, it
can be said that the intensity of the competition is very high for Etihad
Airways
Bargaining power of buyers
Etihad Airways is known for its
luxury and exceptional services to its passengers. Also, the ticket prices are
quite high as they are giving premium services. It can be a problem for customers;
although, their target customers are high-class and upper-middle-class
customers who prefer comfort and experiences. Also, the airline flies
internationally, so, people will choose this for their travel and luxury
experiences despite its high prices. Hence, it can be said that the power of
the buyers is very low for Etihad Airways.
Bargaining power of Suppliers
The number of suppliers in the aviation industry is
very low and there are very few trusted suppliers who provide good quality
supplies to the airline like Boeing and others. As the number is very small,
the options to go to other suppliers also decrease for Etihad. Being fewer in
number gives them higher bargaining power which can be problematic for Etihad.
Chapter Four
Internal Analysis
4.1
Segmentation
|
Customer type |
Geographical |
Demographic |
Psychographic |
Behavioural |
|
Families |
United
Kingdom |
Age: 35 to 54 Income: 47,837 |
Values: The individuals who travel with their families
choose airlines that offer guaranteed daily seating so that the kids do not
have to sit separate from their parents. These individuals are concerned for
the comfort of their families. Needs: Families travelling through airlines need
facilities where they can gain effective customer services on flights and
access to kids’ meals. The earning members of the families often look for
flights that provide comfort at affordable prices. |
Purchasing
habits: Travelers with
families looking for affordable flights that can take minimum time and
provide maximum benefits. They often like to make bookings with brands that
they have previously interacted with. |
|
Business
travelers |
United
Kingdom |
Age:
34 to 55 Income: 47,540 |
Values: Business travellers value convenience, comfortable
travel arrangements and flexibility while booking their flights. Needs: Business travellers like to be productive while
travelling and need adequate travel arrangements to access comfort |
Purchasing
habits: Business
travellers would often invest more for accessing a comfortable travelling
experience. They like to interact with brands that take the minimum time to
reach a destination. These individuals also like to make bookings on flights
that they usually travel on. |
|
Explorers |
United
Kingdom |
Age: 22 to 39 Income: 40,000 |
Values: The explorers are the ones who like to travel in
budget-friendly accommodations to explore more spaces (Kotler
and Armstrong, 2023). Needs: These individuals look for flights that are
technologically advanced and provide discounts on booking (Jobber
and Ellis-Chadwick, 2023).
The explorers like to make their bookings through the application of the
airlines. |
Purchasing
habits: These
individuals look for various flights and choose the flights that are the
cheapest and take less time to reach. |
4.2
Targeting
Etihad
Airways has targeted a customer base of business travellers and explorers to
offer their exquisite facilities and services in the travel industry by
integrating differentiated marketing
4.3 Perpetual Map
Source:
Author
Chapter Five
Future Development and
Conclusion
There are many issues
that are faced by the marketing audit of Etihad Airways. The company has had to
reduce the other operational costs of the operations in the airline
organisation. The other problems and issues that are faced by Etihad Airways is
that it faced problems with the different stakeholders and shareholders. This
has led to issues in the brand reputation of this airline company in the
industry. Recommendations to solve these issues are to enhance the existing
strategy of the entity. Making changes in the existing strategy of the business
will help Etihad Airways further improve its existing relationships with the
shareholders and stakeholders. With the help of an effective strategy, Etihad
Airways will be able to satisfy the needs of the target audience of the
business. It can also attract new consumers to the business which will enhance
the growth of the company and gain a competitive advantage in the industry. The
report has critically evaluated the company of Etihad Airways. An external
analysis of the company has been conducted by using Porter’s five forces.
Internal analysis of Etihad Airways by using STP has also been provided in the
report.
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