Tourism Product Management and Industry Analysis

CONTENTS

CHAPTER TWO: UNDERSTANDING TOURISM PRODUCT AND ANALYSING THE ROLE OF COMPONENTS OF THE TOURISM SECTOR WITHIN THE BROADER INDUSTRY.. 5

2.1 Definition and Elements of Tourism Products. 5

2.2 Function of Essential Elements within the Wider Industry. 6

CHAPTER THREE: STAKEHOLDER ANALYSIS. 9

3.1 Historical Overview and Evolution of EasyJet 9

3.2 Present Operations and Organisational Status. 9

3.3 Analysis of Competitors. 11

3.4 Stakeholder Anticipations. 12

CHAPTER 4: ANALYSING THE CHALLENGES AND OPPORTUNITIES ASSOCIATED WITH THE MANAGEMENT OF TOURISM PRODUCTS. 14

4.1 SWOT Analysis of EasyJet 14

4.2 Sustainable Approaches. 15

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS. 17

REFERENCES. 18

The major objective of this Blog Report is to critically assess EasyJet as a prominent supplier of tourist products within the tourism sector. This research will examine the functions of essential components within the tourist industry, evaluate stakeholder interactions, and pinpoint the difficulties and possibilities encountered by EasyJet.
The particular aims are to delineate and analyse tourist goods and their essential components.

• To conduct a critical analysis of the functions of aviation, hospitality, and intermediaries within the overarching tourist sector.
• To do a comprehensive stakeholder study concentrating on EasyJet's growth, present operating status, competitive environment, and stakeholder anticipations.
• To analyse the problems and possibilities that EasyJet faces in managing its tourist goods, with a focus on sustainability, customer happiness, and market competitiveness.
• To provide ideas for improving EasyJet's strategic management processes, particularly in relation to sustainability.

1.2 The Structure of the Blog Report

This paper has five chapters: the introduction; an examination of tourist goods and sector components; stakeholder analysis; an investigation of obstacles and possibilities via SWOT analysis and sustainable strategies; and concludes with suggestions.

CHAPTER TWO: UNDERSTANDING TOURISM PRODUCT AND ANALYSING THE ROLE OF COMPONENTS OF THE TOURISM SECTOR WITHIN THE BROADER INDUSTRY

2.1 Definition and Elements of Tourism Products

A tourism product is a synthesis of physical and intangible components aimed at satisfying the requirements and expectations of travellers. These items include a range of services, activities, attractions, and facilities tailored exclusively for visitors (Holloway and Humphreys, 2021). Tourism goods are often defined by their perishability, intangibility, variety, inseparability, and seasonality. Tangible components include transportation (flights, cruises), lodging (hotels, resorts), and attractions (museums, theme parks), whilst intangible ones comprise experiences, cultural contacts, and customer services (Page and Connell, 2020).
Aviation services offered by airlines such as EasyJet exemplify essential tourism items that give accessibility, affordability, and convenience to travellers. Accommodation services, exemplified by Hilton Worldwide, provide crucial comfort and convenience for travel experiences. Moreover, packaged vacations arranged by intermediaries such as TUI Group illustrate the integration of various tourist goods to provide a unified and attractive experience for travellers. Tour providers often consolidate flights, lodging, activities, and local transportation into comprehensive packages, consequently augmenting convenience for travellers and profoundly influencing their total travel happiness (Khan, et al., 2020).

(Source: Khan, et al., 2020)

2.2 Function of Essential Elements within the Wider Industry

Aviation is essential to the tourist industry by providing worldwide connection and accessibility, hence promoting both international and local tourism. Companies such as EasyJet have democratised air travel by offering affordable prices and comprehensive route networks, therefore greatly enhancing leisure and business travel throughout Europe and beyond (Plumed-Lasarte et al., 2016). Efficient aviation services are essential for regional economic development, facilitating inbound tourism by enhancing destination accessibility, fostering economic diversity, and augmenting job prospects.
The hospitality industry, including lodging, dining, and beverage services, substantially improves the quality of visitor experiences. Superior hospitality services are closely linked to enhanced visitor satisfaction and return visits, therefore fostering sustainable tourism development and economic resilience (Camilleri, 2018). Hospitality companies serve as vital economic catalysts by creating significant job opportunities and bolstering local supplier networks.
Intermediaries, such as tour operators and travel agencies, play crucial roles in influencing tourism dynamics by consolidating various services into appealing, controllable packages. They serve as essential connections between customers and suppliers, streamlining the decision-making process, minimising travel uncertainty, and enhancing customer satisfaction. Companies like TUI Group exemplify the significance of intermediaries by their capacity to amalgamate various services, so producing seamless experiences that markedly improve visitor perceptions and satisfaction (Fletcher et al., 2018).
Aviation, hospitality, and intermediaries together provide an interwoven structure vital for providing entire tourist offerings. Their cooperative operation not only influences the visitor experience but also enhances efficiency, innovation, and competitiveness across the wider tourism sector.

(Source: Quattrociocchi et al., 2017)

CHAPTER THREE: STAKEHOLDER ANALYSIS

3.1 Historical Overview and Evolution of EasyJet

EasyJet was founded in March 1995 by British-Cypriot entrepreneur Sir Stelios Haji-Ioannou. The airline first began operations with two leased Boeing 737-200 aircraft, offering flights from London Luton Airport to Glasgow and Edinburgh. This innovative initiative signified a significant change in European air travel by implementing the low-cost carrier (LCC) model, influenced by successful precedents like Southwest Airlines in the USA (Rae, 2001). EasyJet, initially using a straightforward and economic framework, rapidly garnered favour among cost-sensitive travellers, transforming the competitive dynamics of Europe's aviation sector.
In 1998, EasyJet expanded by purchasing a 40% interest in TEA Switzerland, so establishing EasyJet Switzerland and considerably enhancing its presence in continental Europe. Subsequent advancements included a crucial IPO on the London Stock Exchange in 2000, facilitating significant growth financing (Rae, 2001). The 2002 purchase of competitor Go Fly further solidified its market dominance in the UK, particularly at London Stansted Airport. The shift from Boeing to Airbus aircraft, namely the A319 and A320, was a strategic initiative designed to reduce operating costs and enhance fuel economy (Malighetti et al., 2015).
In the next years, EasyJet innovated digital booking methods, successfully leveraging the expansion of online commerce to improve convenience and save expenses. EasyJet Europe was established in 2016 as a direct reaction to Brexit, facilitating uninterrupted operations inside the EU by acquiring an Air Operator Certificate (AOC) from Austria, thereby protecting its European operations from regulatory ambiguities after Brexit (Fedosova, 2016).

3.2 Present Operations and Organisational Status

As of 2024, EasyJet is a leading airline in the European aviation sector, running a fleet of 347 aircraft, mostly consisting of Airbus A320 family variants. EasyJet has a fleet with an average age of 9.4 years, offering services to over 159 destinations in 36 countries, indicative of a strong operating structure (Fedosova, 2016).
EasyJet has shown financial resiliency and sustained growth. For the fiscal year ending on September 30, 2024, EasyJet announced a 34% rise in pre-tax earnings, amounting to £610 million. This expansion is mostly ascribed to an outstanding summer season, characterised by a substantial rise in passenger numbers and an 8% increase in flight capacity (Clark, n.d.). Annual revenues for the same period increased by 14%, totalling £9.3 billion, primarily propelled by elevated passenger numbers and the effective execution of auxiliary income streams, including seat bookings and onboard services (Goodson, 2012).
EasyJet Holidays, reintroduced in 2019, substantially enhances the company's profitability, shown by a 56% increase in pre-tax earnings of £190 million in 2024. This signifies the effective use of the asset-light strategy by capitalising on EasyJet's comprehensive airline network to provide appealing vacation packages (Clark, n.d.).
Efficiency and sustainability are essential to EasyJet's approach. The airline had a load factor of 89.3%, reflecting strong seat occupancy and efficient fleet utilisation (Goodson, 2012). Moreover, EasyJet is committed to carbon reduction objectives, promising a 35% decrease in emissions by 2035 via technical advancements and enhanced operating methods, aligning with increasing customer environmental awareness (Plumed-Lasarte et al., 2016).
Leadership stability has been maintained, with a scheduled transfer set for 2024. Kenton Jarvis, who will follow Johan Lundgren as CEO in January 2025, is anticipated to use his significant industry expertise to enhance profitable development, especially in the lucrative vacation sector (Clark, n.d.). In summary, EasyJet's present operations demonstrate a robust organisation, strategically equipped to adapt and thrive amidst changing business conditions.

(Source: Statista, 2024)

3.3 Analysis of Competitors

EasyJet has significant rivalry from major industry competitors like Ryanair, British Airways, and Wizz Air, each imposing unique competitive challenges. Ryanair, the biggest low-cost airline in Europe, strategically focusses on budget-conscious travellers by offering very cheap tickets, bolstered by exceptional operating efficiency and an extensive, quickly growing route network. Ryanair's strong cost leadership forces EasyJet to continually analyse and enhance its operating costs, improve pricing tactics, and maintain competitive rates to protect its market position among price-sensitive customers (Fedosova, 2016). Moreover, Ryanair's dynamic promotional strategies, robust marketing initiatives, and development into both mature and developing regions consistently provide strategic challenges, requiring EasyJet to make regular changes to maintain market relevance and competitive advantage.
British Airways, embodying the conventional full-service airline sector, poses competitive challenges mostly via distinct premium offerings such as opulent cabins, extensive international connections, strong frequent flyer initiatives, and exceptional customer service. Such solutions appeal to a certain market niche that values convenience, comfort, and superior services above plain cost-effectiveness. Therefore, EasyJet must improve service quality and expand its product offers by including value-added services, flexible ticketing alternatives, and loyalty incentives to attract and keep consumers who may otherwise go for premium airlines such as British Airways. The enduring reputation and international partnerships of British Airways exacerbate competitive constraints, necessitating that EasyJet continually improve its operational dependability and customer experience initiatives (Malighetti et al., 2015).
Wizz Air has become a formidable rival, especially dominating regions in Central and Eastern Europe, where its aggressive growth plan is significantly influential. Wizz Air, known for its forceful fleet expansion, wide market entrance strategies, and competitive pricing structures, actively targets budget-conscious travellers, consequently imposing significant pressure on EasyJet to proactively enhance and extend its network. EasyJet must expedite innovation in service delivery, digital engagement tactics, and operational efficiency to react successfully. Moreover, EasyJet amplifies its dedication to sustainability and technology innovation, conforming to increasing consumer demands for responsible travel practices and enhanced client relations (Plumed-Lasarte et al., 2016).

3.4 Stakeholder Anticipations

Employees represent a vital stakeholder group for EasyJet, with expectations that include competitive compensation, employment security, safe working conditions, chances for professional development, and defined career advancement routes. Meeting these expectations profoundly impacts employee happiness, operational efficiency, service quality, and overall productivity. EasyJet must persist in making significant investments in worker training, professional development initiatives, and clear internal communication of organisational objectives and transformations. Fostering an inclusive corporate culture and implementing robust health and safety protocols, especially in light of increased apprehensions stemming from the worldwide pandemic, is crucial for talent retention, bolstering worker morale, and strengthening overall organisational commitment (Clark, n.d.).
Investors are a significant stakeholder group, prioritising consistent and solid financial performance, substantial profitability, transparent operational management, and sustainable growth plans. Investors rigorously assess EasyJet's cost-efficiency initiatives, compliance with environmental and sustainability criteria, adept management of capital expenditures, and overall strategy clarity. Consequently, EasyJet must guarantee prompt and transparent financial reporting, uphold clear corporate governance practices, and exhibit its dedication to sustainable business practices, thereby addressing investors' concerns and promoting ongoing investment and confidence in its strategic direction (Malighetti et al., 2015).
Consumers, as essential stakeholders, anticipate affordability, dependability, convenience, outstanding customer service, and a growing need for ecologically friendly travel alternatives. Customer satisfaction significantly impacts EasyJet's brand image, client retention, and market viability. To effectively fulfil these customer expectations, EasyJet must continually reinvent service delivery, improve digital engagement platforms, streamline booking and boarding processes, and provide competitively priced auxiliary items. Effective customer service, prompt problem resolution, proactive feedback systems, and continuous enhancement of consumer experiences are crucial for preserving customer loyalty and attaining enduring competitive advantage (Plumed-Lasarte et al., 2016).
Local communities constitute a vital stakeholder group, anticipating that EasyJet would exhibit environmental stewardship, significantly contribute to local economic development, and engage actively in community improvement initiatives. Community stakeholders need tangible contributions to local employment, economic development via tourism-related initiatives, and collaborations that promote sustainable tourist practices. Efficient stakeholder management in this setting requires consistent and honest communication, strategic endorsements of local initiatives, and explicit articulation of EasyJet’s environmental commitments. This strategy substantially improves EasyJet's community ties, reduces reputational risk, and strengthens its image as a socially responsible and sustainable enterprise (Clark, n.d.).

CHAPTER 4: ANALYSING THE CHALLENGES AND OPPORTUNITIES ASSOCIATED WITH THE MANAGEMENT OF TOURISM PRODUCTS

4.1 SWOT Analysis of EasyJet

Strengths

Weaknesses

Opportunities

Threats

Low-cost management strategy and operational efficiency attract budget-conscious travelers.

Perceived service quality issues due to budget-oriented business approach.

Digital transformation and tailored service offerings can improve customer experiences.

Competitive environment with competitors like Ryanair and new entities like Wizz Air.

Optimised operations and effective resource management enhance customer satisfaction.

Dependence on a mostly European market makes EasyJet vulnerable to regional economic variances and regulatory oversight.

Increased demand for sustainable practices offers opportunities to enhance brand and market offerings.

Regulatory demands concerning environmental standards and carbon emissions regulations pose further risks to EasyJet's operational flexibility and profitability.

Strengths: EasyJet maintains a formidable competitive stance with its low-cost management strategy, exceptional operational efficiency, and comprehensive European route network. These attributes allow the airline to provide cheap rates that attract budget-conscious travellers (Baker, 2014). The airline's optimised operations and effective resource management enhance customer satisfaction by guaranteeing affordability and dependability.
Weaknesses: EasyJet has difficulties with perceived service quality, partly because to its budget-oriented business approach. Customers often link low-cost airlines with diminished service quality, which may adversely affect overall happiness and loyalty, especially in comparison to full-service rivals (Naletina et al., 2019). Moreover, EasyJet's dependence on a mostly European market renders it vulnerable to regional economic variances, geopolitical uncertainties, and stringent regulatory oversight.
Opportunities: EasyJet has considerable prospects for improving client experiences via digital transformation and tailored service offerings, successfully harmonising with contemporary consumer preferences. The increasing public and regulatory demand for sustainable practices offers EasyJet possibilities to enhance its brand via sustainable aviation efforts, including investments in sustainable aviation fuels and carbon emissions reduction (Rotondo et al., 2019). The heightened consumer demand for sustainable travel presents EasyJet with possibilities to innovate and distinguish its market offerings, hence improving customer happiness and brand image.
Threats: The competitive environment presents significant challenges to EasyJet, with established competitors like Ryanair and new entities such as Wizz Air consistently applying pressure via aggressive price tactics and comprehensive marketing initiatives. Ryanair employs stringent cost-reduction strategies and pursues aggressive market growth, hence undermining EasyJet's capacity to maintain viable pricing models and preserve market share (Direction, 2006). Regulatory demands, particularly concerning environmental standards and carbon emissions regulations, pose further hazards to EasyJet's operational flexibility and profitability.

4.2 Sustainable Approaches

EasyJet has implemented extensive sustainable business practices with a strong emphasis on environmental and social sustainability. The airline is committed to minimising its environmental footprint via several strategic initiatives, including fleet modernisation and the use of sustainable aviation fuels (SAF), which substantially reduce total carbon emissions. EasyJet's strategic investment in more fuel-efficient Airbus A320 aircraft exemplifies a long-term dedication to sustainability, significantly decreasing fuel usage per passenger and complying with international environmental regulations. Moreover, EasyJet engages in active collaboration with industry leaders, research organisations, and technological partners to expedite the implementation of emerging green solutions. These strategic alignments enhance EasyJet's image as an ecologically responsible airline and favourably position it within a competitive, sustainability-oriented market (Olk, 2021).
Social sustainability is heavily emphasised within EasyJet's operating structure. The airline implements extensive employee-centric initiatives, including comprehensive training and development programs, workplace safety improvements, diversity promotion, and career advancement opportunities, which substantially enhance workforce morale, employee satisfaction, and overall organisational productivity. These social activities immediately enhance service delivery and customer happiness, hence augmenting EasyJet’s competitive edge. The airline encourages workplace diversity and equitable labour practices, contributing to elevated employee engagement, productivity, and general morale (Rotondo et al., 2019).
Customer happiness is fundamental to EasyJet's sustainable strategy. EasyJet strengthens its commitment to consumer trust and loyalty by implementing client-centric strategies, including improved digital communication, swift and efficient resolution of customer concerns, and heightened openness in operating operations. Ongoing endeavours to enhance operational dependability, optimise procedures, and ensure transparent communication markedly improve the entire travel experience, resulting in increased customer retention and enduring competitive advantage (Naletina et al., 2019).
Furthermore, EasyJet prioritises active involvement and beneficial contributions to local communities in its operating locations. The firm advocates for sustainable tourist initiatives, fosters local economic development via job possibilities, and engages in community welfare programs. These measures bolster EasyJet’s ties with community stakeholders, improve its corporate image, and substantially contribute to its long-term operational sustainability (Rotondo et al., 2019).

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS

EasyJet has effectively positioned itself as a premier low-cost airline in the European tourist sector, using its operational efficiency, robust market presence, and creative cost management tactics (Malighetti et al., 2015). The airline persistently tackles issues like competitiveness, sustainability mandates, and consumer expectations via strategic adaptation and continuous operational enhancements (Rotondo et al., 2019). Notwithstanding substantial accomplishments, EasyJet continues to encounter considerable weaknesses, such as a pronounced reliance on the European market, susceptibility to fuel price volatility, and increased regulatory demands for sustainability (Direction, 2006).
To augment EasyJet’s competitive edge and facilitate sustainable expansion, many strategic ideas are suggested:
EasyJet should augment its investments in sustainable aviation practices, particularly by enhancing the use of sustainable aviation fuels (SAF) and continuously modernising its fleet to comply with global environmental requirements and the rising customer demand for sustainability (Olk, 2021). This plan will enhance EasyJet’s environmental reputation, appeal to eco-conscious travellers, and successfully fulfil regulatory compliance demands.
Secondly, EasyJet must prioritise the enhancement of client experiences via technology innovations and tailored services. Investing in modern digital systems for efficient booking and customer engagement will enable EasyJet to enhance customer happiness, loyalty, and the whole travel experience, which is essential for sustaining competition against conventional and other low-cost airlines (Baker, 2014).
Ultimately, it is essential for EasyJet to enhance employee engagement programs. Emphasising extensive training, career advancement, and strong employee interactions will elevate staff productivity and morale, hence enhancing service quality and operational performance. A dedicated and driven team will substantially enhance EasyJet's enduring performance and robustness in a fiercely competitive sector (Rotondo et al., 2019).
By adopting these ideas, EasyJet may adeptly address industry difficulties, use opportunities, and guarantee enduring development and operational robustness.

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Tourism Product Management and Industry Analysis - EasyJet