995,00018American Airlines18982,00018Southwest Airlines18956,00018Hotels. com18725,00018Continental Airlines18669,00018United Airlines18554,00018Data retrieved from Travelmole, January 2010.18The table above shows the number of visitors that used various travel agencies in the UK. Travelocity seems to be the leading one with 1.263 million. With the high number of visitors the industry seems to be booming in the near future. 18 References19Porter, M. 1998. Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free press, New York. 19Introduction The UK online travel agency is termed as one of the largest in the world as well as the most dynamic this is in terms of the market share it occupies.
There are a number of online travel agencies in the UK thus making competition stiff. With each of the online travel agency trying to offer the best services as compared to their competitors. This report will identify the political, economic, environmental, social, technological as well as the legislative factors affecting UK online travel agency. The report will also present a five porters model of the online travel agency. UK online travel agency (overview)It is a decade now since the first UK companies began to use the internet as a tool for the sale of their travel activities this is mainly attributed to globalization.
The UK online travel agency accounts for a considerable percentage of the market share, with globalization a large number of individuals tend to travel to various parts of the world for business activities as well as for adventure thus leading growth in the online travelling agencies (Kim, Kim & Han 2007, pp. 600). The UK online travel agency industry can be grouped under the travel industry, the travel industry in UK is competitive and there is intense rivalry amongst the major players in the industry.
Being a differentiated service, the company mainly competes based on the services offered to the customer, thus each will be striving to offer the best services so as to retain the existing customers and at the same time attract new ones. One of the major online traveling agencies is Expedia, which has revenue of $ 3,348.1 million in the 2010. Another major company operating in this sector is eBookers and going places. Travelocity dominates the industry and it has large market share as compared to its competitors this is clearly shown in appendix 7.
Globalisation has had a lot of impact to the online travel agency, one of the major importance is of globalization is that it has helped they industry a lot since they have a large customer base from all over the world thus making the industry more profitable. Globalisation has also helped the industry in that with the development of computers a large number of people are able to surf through the internet hence they tend to get lot information related to the online travel agencies since the travel agencies advertise their companies through the internet.
Most businesses as well as individuals are involved in global travel and the online travel agencies seem to be their most preferred way to travel. Globalisation has also enhanced the industry in that travelers can be able to search for information related to their preferred destination even before they travel this is readily made available by most online travel agencies. The online travel industry sites, computer and internet enormously shrink the distance between them and tourists.
Available data shows that internet makes potential tourists increase by about 10%.