First Choice Holidays Travel Company Analysis - Paper Example

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First Choice Holidays PLC is a world leading Travel Company in leisure travel services like specialist holidays, integrated tour, and online accommodation services. First Choice Holidays PLC was started in 1973, and its headquarters in Crawley, the United Kingdom CITATION Blo17 \l 1033 (Bloomberg, 2017). In 2007, the company was taken over by TUI travel PLC after a joint ventures and acquisitions CITATION Tui14 \l 1033 ( Tui Travel Plc., 2014). TUI Travel PLC is a leisure travel group operating in approximately 180 countries and claiming about 30 million customers. The company operates in Spain, Germany, France, Canada, United States, Ireland, and United Kingdom CITATION Blo17 \l 1033 (Bloomberg, 2017). First Choice Holidays PLC operates in four segments: online destination services, activity holidays, specialist holidays, and mainstream holiday. The company involves in North American based escorted tours and student and marine travel businesses.

The mission of the company is to make traveling experiences special and develop a superior shareholder value to become a leader in the global leisure industry globally CITATION Oul11 \l 1033 (Oulla & Eleftheriou, 2011). First Choice holiday experiences provide customers flexible and differentiated travel experiences while focusing their strategic needs for profitable growth. Therefore, the company focuses primarily on continuous efficiency improvements, business model, and development of growth opportunities CITATION Fir12 \l 1033 (First Choice Holidays Plc., 2012).

STRUCTURE OF THE COMPANY

The structure of First Choice Holidays PLC involves managerial hierarchy, which consists of top-level managers to junior level managers. First Choice Holidays PLC has two parts; the head office and different branches within the company CITATION BBC11 \l 1033 (BBC, 2011). Its offices have several divisions like travel and tour division and research and planning division CITATION Dav092 \l 1033 (Harbord, 2009). Therefore, the company is free to use any form of depart-mentation, which is appropriate for its type of customers, its business operation, its services and particular activities and functions to achieve its core values and goals.

First Choice Holidays PLC has structured its operation into four business segments; online destination services, activity holidays and specialist holidays CITATION Oul11 \l 1033 (Oulla & Eleftheriou, 2011). Activity holiday segment includes activities ranging from safaris to water sports provided by other companies. The segments operate resorts in the Caribbean and Mediterranean and takes customers to iconic adventure destinations CITATION BBC11 \l 1033 (BBC, 2011). The specialist segments include vacation specialists who set premiums vacation packages. Finally, the online destination services include hotel excursions, transfers, bookings, and tickets and cruise line services. The online destination services sell different destinations to corporate clients, travel agents and customers worldwide CITATION BBC11 \l 1033 (BBC, 2011).

FUNCTIONS AND PROCEDURES OF KEY DEPARTMENTS AND PERSONNEL

The control and coordination of First Choice Holidays PLC departments take systematic approaches in planning a tour and travel components to create a packaging holiday. The following departments need to work together for the company to achieve its aims and objectives.

Operation Department

The operational department is responsible for running the company in a successful manner. It is concerned with directing and managing the physical functions of the company and oversees other departments and the development of the companys customers and employees. The operation team employs and places the right people in the company. The department also decides on appropriate services offered, maintaining high service level for its customers; carry out quality assurance audits CITATION Dav092 \l 1033 (Harbord, 2009).

Customer Service Department

A customer service department ensures that the clients looking to use First Choice Holidays PLC tour services have a convenient point that they can make inquiries on the companys leisure travel and vacation services CITATION Dav092 \l 1033 (Harbord, 2009). The department provides basic information to customers, responds to customers questions, and handles all issues problems and questions affecting their customers. For example, First Choice Holidays representatives can be contacted whenever customers have complaint on their hotel arrangements, illness on holiday and compensation solicitors CITATION Hol16 \l 1033 (Holiday Hotel Watch, 2016). Thus, the customers service department handles customers complaints and provides free advice for customers.

Resort Operation Department

Resort operation department is involved in managerial responsibilities and duties in housekeeping and guest services CITATION Kom17 \l 1033 (Kompyet, 2017). They are responsible for customer services. They ensure a good relationship with customers and develop a good understanding of the companys management processes in resort functional areas. The department first greets customers in a professional and friendly way, complete registration of customers, provide area attractions, and resort information. It accurately process credit card and cash based on established procedure, balance all receipts for cash, and complete check in procedures. The department further associate and maintain positive customer relationships and respond appropriately to customers concerns and enquiries.

Inventory Department

The inventory department in the company is essential in negotiating contracts with and hotel rates, excursions, transfers, tours and activities in an organized way. This enables the company to provide inventory services to customers easily. First Choice Holidays has implemented a travel inventory system that enables it to provide contracted and unique inventory through a white label travel-booking engine, agent booking tools, and XML ALPs to customers effectively CITATION oul11 \l 1033 (oulla & Eleftheriou, 2011). The inventory system successfully comprehends all characteristics required by the company to carry out all travel services. For example, the AIDA system is important in designing and building the companys packages like trips, city breaks, tours, and holidays CITATION Dcs17 \l 1033 (DCS, 2017). The major packaging options provided include the static packaging that involves fixed services for a fixed price for holidays, tours, and dynamic packages that links the services of the created package like transfer, transport, accommodation and other servicesCITATION Dcs17 \l 1033 (DCS, 2017).

Purchasing/Procurement Department

The purchasing department has a role in the acquisition of services and supplies in support of the tour and vacation services CITATION Oul11 \l 1033 (Oulla & Eleftheriou, 2011). The department procures all materials needed in daily operation within the company. The department usually finds ways to secure best deals for the company. Before buying, the department must ensure all protocols for purchase are followed based on the organizations purchasing policy. Therefore, the department deals with sourcing activities, services and goods selection and negotiation before purchasing the ordered goods and services. CITATION CIP13 \l 1033 (CIPS, 2013)CHALLENGES FACING THE SECTOR

The major challenges faced by First Choice Holidays PLC are majorly concentrated on the transitions occurring in new modern tourism practices.

Laws and Regulations

First Choice Holidays PLC has to abide by regulations and laws when posting goods and services online like Trade Description Act, which states that it is unlawful for any company to make any false statement about goods and services they are offering CITATION Dri13 \l 1033 (Raluca, 2013). Besides, First Choice Holidays PLC must comply with E-commerce regulations that give consumers the remuneration right for goods and services purchased CITATION Dri13 \l 1033 (Raluca, 2013). Privacy concerns are another challenge for First Choice Holidays PLC. Once customers book holidays with First Choice Holidays PLC, they are uncertain whether to trust the company or not. This is due to the high insecurity level online and fraud that capture customers personal details and data. First Choice Holidays PLC has to be prepared in case its website is attacked or goes down due to malicious hardware CITATION Dri13 \l 1033 (Raluca, 2013). Thus, if First Choice Holidays PLC website is cyber attacked or infected, it has to be shut down while protecting data and personal details of consumers.

Price

First Choice Holidays PLC main objective is to become a market leader in this sector. First Choice Holidays PLC has lost its pedestal to companies like Lastminute.com, TravelRepublic, and Thomas Cook, due to higher prices means customer make their holiday choice by comparing prices and packages features CITATION Bre16 \l 1033 (Christensen, 2016). Therefore, consumers track cheaper deals, making it their priority rather than focusing on brand loyalty. Most competitors monitor First Choice Holidays PLC prices on the internet and use its pricing policies and techniques to remain competitive CITATION Plu07 \l 1033 (Plunkett Research Ltd, 2007). Price war in this sector remains a major challenge, as First Choice Holidays PLC has to offer better deals and put lower and discounted prices to outperform its competitors.

Place

First Choice Holidays PLC must ensure it has maximum access to different search engines to increase the number of customers. This also increases its visibility but the more it goes online, it gets more competition as its competitors also strives to be on the first pages of search engines CITATION Bre16 \l 1033 (Christensen, 2016). First Choice Holidays PLC is also challenged the negative feedback and comments on its blog and Facebook CITATION Bre16 \l 1033 (Christensen, 2016). Another challenge is the lack of internet access that consumers face due to lack of computing skills, low confidence, affordability, and geographical location. Thus, First Choice Holidays PLC cannot fully target its customers CITATION Bre16 \l 1033 (Christensen, 2016).

People

First Choice Holidays PLC need to review its website regularly to ensure it is secure and protected due to internet marketing fraudulence CITATION Bre16 \l 1033 (Christensen, 2016). The maintenance procedure needs knowledgeable and reliable information technology experts adding extra costs. Another challenge is the management of approximately 19 million consumers profiles, which must be kept up to date CITATION Dri13 \l 1033 (Raluca, 2013). Thus, it becomes difficult to personalize and manage the experience of each user. Another challenge is that First Choice Holidays PLC must keep up with technological and market changes to enable all departments to be able to communicate effectively and easily CITATION Dri13 \l 1033 (Raluca, 2013).

Process

Though the booking process is efficient, customers have low confidence levels based on payment security. This affects the sales. Besides, if First Choice Holidays PLC websites trafficked, the booking process may become slower, therefore, impacting customers negatively due to disintermediation, intermediaries are removed once the booking process is made, First Choice Holidays risks losing face-to-face interaction with customers. CITATION Bre16 \l 1033 (Christensen, 2016)Promotion

The main challenges in promotion involve the management of customers comments and feedback. First Choice Holidays need to carry out market research to identify changes and evaluate customer needs and wants. The entire process of collecting and evaluating customers feedback i...