THE REAL EXPERIENCE WITH THE NATURE
Since 2015
ECO TRAVEL
Competitive analysis
Porter`s five-forces Model
1) Rivalry among competing firms.
2)Potential entry of new competitors.
3)Potential development of substitute products.
4)Bargaining power of suppliers.
5)Bargaining power of consumers.
RIVALRY AMONG COMPETING FIRMS
The competition between travel agencies is not very high, since they do not possess the same services agencies ecotourism, which is characterized by specific activities and more personalized experiences.
But in Colombia rivalry ecotourism agencies it is very high, because there are agencies providing the nature tourism services in all country. In the ecotourism industry, the success of each agency is to provide different packages with competitive prices, have coverage throughout the country, and be reliable. Of these qualities it depends on the customer's decision to choose one or another company.
POTENTIAL ENTRY OF NEW COMPETITORS
POTENTIAL DEVELOPMENT OF SUBSTITUTE PRODUCTS
According to the World Tourism Organization (OMT), the arrivals of international tourists in 2014 grew 4.7% compared to 2013, reaching 1,138 million arrivals, being the regions of Americas (7.4%) and Asia Pacific (5.4)% the regions that recorded more variation. Regarding the percentage composition of all arrivals Europe and Asia Pacific add together the 75% with 851 million. For 2015 is forecast a global growth of 3% to 4.0%, contributing to the global economic recovery.
In 2014, arrived to Bogota 1'088.451 foreign tourists; about 27,000 more than in the year 2013, representing a growth of 2.6%. As for the nationalities of visitors, mainly from United States (25%), Venezuela (11%), Spain (6%), Mexico (6%) and Ecuador (5%) are.
As seen, in recent years there has an increase in the tourist visitors around the world. In the year 2014, the region that achieves the greatest number of visits was Americas, this aspect will be crucial for our industry. Taking into account that the number of visitors is increasing, the number of travel agencies will grow too. In our case, the eco-tourism agencies are a small part of the total, and also, our principal customers wont be all the international tourists that arrive here. Our key strategy, is that in comparison with other eco agencies, we offer more than a walk through the jungle, we offer the experience of living with the different cultures that Colombia has, it wont be easy as a new firm of eco-tourism, but we will have different plans that will bring us the most loyalty customers.
Substitutes are products that customer can purchase Instead of the industry's product, from another industry. Offers benefits to the consumer as the product produced by the firms within the industry.
In the tourism industry nowadays factors such as the prices of airline tickets are very important for the development of a travel plan. Facing competitors such as the case of other online agencies, face travel agencies or even the airlines directly. In Colombia a substitute for our website are airlines that make to the costumer being easy to plan their own individual journey, is therefore that it is super important for us planning customer a trip that meets all their requirements and also does not involve customer have to stop their activities to mobilize to buy a ticket.
In Colombia recently the air carriers estimated numbers regarding flight prices since these are considered extremely high and the Minister of Commerce, Industry and Tourism is asking for lower prices so that in this way can promote tourism in the country. Tickets prices affecting our industry but in turn allows us as an organization to organize packages that include all the services required balancing these prices so that our customers can enjoy a unique experience that our competitors can not guarantee.
Generally in our industry the biggest substitution is made by the costumer when he or she take de decision of not use a travel agency and to use research for his trip.
BARGAINING POWER OF SUPPLIERS
The presence of powerful suppliers reduces the profit potential in an industry. Suppliers increase competition within an industry by threatening to raise prices or reduce the quality of goods and services. As a result, they reduce profitability in an industry where companies cannot recover cost increases in their own prices. All industries need raw materials as inputs to their process. This includes labor for some, and parts and components for others. This is an essential function that requires strong buyer and seller relationships. If there are fewer suppliers or if they have certain strengths and knowledge, then they may wield significant power over the industry.
In the industry of travel agency’s there’s many few suppliers, a travel agency only need suppliers for publicity things like calendars, pens, notebooks, mugs, all that kind of little presents that the agency give to their customers, and some clothes and tools suppliers, for the workers of the agency and if they want, decided to sell special clothes to their costumers depend upon of the plan that the costumer choose. These is because, almost all of the services that de angency offers is by outsource with other companies.
BARGAINING POWER OF CONSUMERS
•As mobile technology increases the role of the consumer has change dramatically in many industries,and tourism is not the expection. The “prosumer” is a consumer empowered to transform in some way the product given by the Company. As these prosumers use social networks to contact with others, clusters (blogs) are formed giving a lot of power to the consumer. In this clusters, the only important promotion method is the Word of mouth.
•Prosumers are given the opportunity to design their trips as they want, with few or none limitations.
•Technology also decreases the switching costs costumers can now be informed of the competition advantages and disadventages in a couple of minutes.Many sites such as booking.com and despegar.com just require the user to créate an account to use their platforms without additional costs.
•As there are empowered consumers linked by technology into clusters, that are well informed of the services that offer the tourim industry,and considering los switching costs,the extend to which this costumers can affect the tourism industry is high. To effectively bargain power from the consumers,travel agencies must offer very differentiated experiences.
•From
http://kolbewindows.com/news-media/prosumer-trend-making-best-purchase-decisions
