Preview

Paradise Vacations – Case

Good Essays
Open Document
Open Document
1264 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Paradise Vacations – Case
PARADISE VACATIONS – CASE
Problem Statement Paradise Vacations, Quebec’s market leader, is faced with an anticipated threat and potential severe competition from FunTours, one of the successful tour operators in Ontario. FunTours is known for its notorious low-price strategy and wants to penetrate into the Quebec market. FunTours has also incorporated an in-house airline of three planes (FunAir). Paradise Vacations’ success is depending on the selection of the most efficient pricing strategy. In addition, it is crucial for Paradise Vacations to decide whether to renegotiate seat allotment with their existing alliance with Benoix Air or to agree to Air India’s offer to lease aircraft to launch its own airline.
Situational Analysis S.W.O.T. * Strength * Paradise Vacations established itself as Quebec’s market leader in the tour operating industry. It had 39% market share in Quebec. It maintained a strong leadership position in Quebec market by its’ strong reputation among customers and suppliers and price positioning. * In addition to Paradise Vacations’ strong market positioning in Quebec’s tour operating industry, Paradise Vacations has strong relationship with both sources of supply. It had almost 90% seat allotment from Benoix Air. Due to its highest market share, Paradise Vacations received preferential rates from Benoix Air. * Paradise vacations also received preferential terms from the hotel chains such as Iberostar, Bahia Principe and Oasis. Paradise Vacations was instrumental in helping these hotels to establish strong market presence in the Quebec market. * Paradise vacations utilized market segmentation for its travel packages. It introduced three travel packages to focus three segments based on the hotel rating. Premium segment included all five-star luxurious hotels. Mid segment included all four-star hotels and the base segment included three-star or under
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Steven B Belkin Case.
    • 645 Words
    • 3 Pages

    Steven B Belkin Case.

    The business is to offer cheaper vacations to groups by using “back to back” concept. The key risk are the competition and there is no assets for the company to sell in case they loss. Other companies conentrate on a few destinations and there are a lot of different distinations with limited competition among operators in providing packages. There are new untouched distinations which the company can focus on too. They have the experiance and the best salesmen to acheive thier targets. There are unlimited groups available and TTG will focus on the prime groups who are known to be extremely responsive to group travel. The primary source of sales will be through direct sales. TTG will market its group tours to travel agents. It will comprise less than 10% of the sales in the 1st 2 years but will produce 25% of the sales volume. The projection is very conservative. The first year projection is less than 7,000 passengers while the 4 salesman that managment offer positions currently move more than 18,000 passenger per year. TTG also…

    • 645 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    B120 Tma01
    • 594 Words
    • 3 Pages

    B120 Tma01

    Customers of the Original Travel Company have one primary concern which is to get the highest quality service at the best possible price. Their main contribution is the finances they bring in by ordering a holiday or an adventure with the company.…

    • 594 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Paradise Vacation Case
    • 1960 Words
    • 8 Pages

    Paradise Vacation Case

    Competitive Analysis and Consumer Analysis: Because Paradise has its main market in Quebec, Benoix is the main competitor. However, the biggest threat comes from FunTours’ expansion currently. The competitive advantage of FunTours is its low pricing strategy. Travelling is has an elastic demand. With price being the most important determination, FunTours ' strategy could drive Paradise out of the market. This strategy targets at mid and base segment of the market. It creates threat to the same segments for Paradise, which represent 90% of the revenue. Nonetheless, Quebec is a brand new market where FunTours does not have supplier connections or customer loyalty yet. FunTours serves no premium market where 10% of the revenue comes from for Paradise. Therefore, Paradise can utilize its bargain power with its suppliers to ask for lower prices, also lower its retail price to keep customers from switching to new brand, and advertise to strengthen brand loyalty.…

    • 1960 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    auditing case study--Virgin Australia
    • 3794 Words
    • 14 Pages

    auditing case study--Virgin Australia

    The first part of this report provides a broad introduction into the business of Virgin Australian by examining its principal sources of revenue, its nature of operating, its competitors, the market share and the regulations affecting its operations. From this, it can be seen that Virgin Australia operates in a very competitive environment and generates revenue by the core business of passenger and cargo transport.…

    • 3794 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Good Essays

    M3 Explain Ways Of Maximising The Profitability Of The Planned Package Holiday
    • 920 Words
    • 4 Pages

    M3 Explain Ways Of Maximising The Profitability Of The Planned Package Holiday

    For M3, learners must explain, with specific examples, ways in which profitability could be maximized. Aspects such as methods of contracting, consolidations, currency exchange, cancellation charge and commission must now be applied specifically to the planned tour, with explanations to show how they could contribute to its profitability.…

    • 920 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Carnival Cruise Case
    • 3148 Words
    • 13 Pages

    Carnival Cruise Case

    Carnival Corporation is considered the leader and innovator in the cruise travel industry. Carnival has grown from two converted ocean liners to an organization with two cruise divisions (and a joint venture to operate a third cruise line) and a chain of Alaskan hotels and tour coaches. Corporate revenues for fiscal 2001 reached $4,535,251,000 and net income of $926,200,000. Carnival has several “firsts” in the cruise industry: first to carry over one million passengers in a single year, and the first to carry five million total passengers. Currently, Carnival’s market share of the…

    • 3148 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Best Essays

    Virgin Train Assignment
    • 3032 Words
    • 12 Pages

    Virgin Train Assignment

    These options serve as the basic framework for creating a marketing strategy along with business strategy of the firm. The travel company Virgin travel international (HTI) is planning to start its operation this year, which will serve products and services in the travel industry. The company will provide its services to the domestic and international tourists. The Dream line has the intention to provide both individual and group travel facilities to the cities in UK to the cities in India. The services that will be included in the package of the tour will include pre-arranges tours, custom packages according to client’s specifications, travel consultation, and as time progresses making reservations for lodging amongst other related services. The travel company Virgin travel international is planning to have a…

    • 3032 Words
    • 12 Pages
    Best Essays
    Read More
  • Powerful Essays

    Coral Divers Case Study
    • 1094 Words
    • 5 Pages

    Coral Divers Case Study

    After investigating Coral Divers diligently, I am delighted to be hired as a consultant to evaluate Coral Divers strategic situation. Based on my findings, I believe Coral Divers is in a decreasing state of financials and diminishing competitive position. Their net income is negative and increasing in 2005 through 2007. In addition, there is a lack of differentiators at Coral Divers, hindering them from their competition.…

    • 1094 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    B120 TMA01
    • 541 Words
    • 2 Pages

    B120 TMA01

    When identifying the different stakeholders based around Nick Newbury’s company, Original Travel, we can pick out those who have the highest power and interest. Nick Newbury and his co-founders, Alasdair and Tom, whose main role is to provide tailor-made short breaks, possess these two factors. Their primary expectations are too make a profit from the sales of their quirky holidays, but also see a growth on the company. By merging Original Travel with Tim Best Travel highlights this growth with a new need to offer the longer, 7 – 14 day holidays, which will “complement Original Travel’s long weekend breaks” and break it out of its niche.…

    • 541 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Marketing plan Assignment 1 MKT500
    • 5242 Words
    • 15 Pages

    Marketing plan Assignment 1 MKT500

    The marketing strategy of Great Getaways will be built on mainly ensuring that clients know about our services and existence. Therefore, Great Getaways’ purpose is to provide the right information to the right target clients at the right time. The plan is to fulfill this through a market penetration strategy that will make sure that we are well known and respected in the tourism industry. Great Getaways will also make sure to take people’s budgets into consideration when setting the prices (Bplans, 2014).…

    • 5242 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Good Essays

    Six Flags Case
    • 888 Words
    • 4 Pages

    Six Flags Case

    One way how to fund money into the business is through the introduction of the preferred guest card. This card promises the customer free parking spaces, no queues, and immediate seats in restaurants within the parks. Moreover, revenues are expected to grow and probably more important is the idea of attracting a new high-income target group. Even though the benefits seem to be very attractive, there are also drawbacks such as rising discrimination and conflicts between customers with and without a preferred guest card. Another very important question to be answered is, whether Paradise Parks is ready to make some changes in the business, such as launching the preferred guest card or if it plans to continue operating according to its…

    • 888 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Travel and Tourism
    • 1938 Words
    • 8 Pages

    Travel and Tourism

    Be able to select, cost and provide information for leisure holidays to meet the needs of customers…

    • 1938 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Fairmont Case Study
    • 390 Words
    • 2 Pages

    Fairmont Case Study

    Their unique selling point embarks upon their potential to internationalize. It is not simply assimilation of culture but promising experiences that are authentically local, in hotels and resorts of unrivalled presence. They believe, their guests should experience an authentic reflection of each destination's energy, culture and history. Therefore they are tough competition to other luxury hotels and resort chains with an image of globalizers expanding and integrating the world.…

    • 390 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Analysis Of Adventure World
    • 879 Words
    • 4 Pages

    Analysis Of Adventure World

    Many potential customers are uncertain of the position they wish to reach. Part of the value connected with travel agencies is the knowledge they own regarding destinations. Clients look to the agency to provide them with sound recommendation for a competitive price. Adventure Worlds is certain in its ability to do so. Time is a precious product. Adventure World be able to save the customer time and money, and help to ensure that they are fulfilled with their vacation.…

    • 879 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Tour Operators
    • 2863 Words
    • 8 Pages

    Tour Operators

    Over the 10 years from 1998 to 2008, the competitive landscape of the tour operator industry changed dramatically as the market experienced a continuing concentration of the players. The trend had been accelerated in 2007 with the acquisition of MyTravel, the number 3 European Tour Operator by Thomas Cook, the number 2, on February 2007. One month later TUI announced its acquisition and merger with First Choice, the fifth…

    • 2863 Words
    • 8 Pages
    Better Essays
    Read More

Related Topics