THE EXPLORE PROJECT

The Explore Project



The Explore Project

Introduction

Explore is a company providing small group adventure holidays throughout the world. Based on the information from Explore, there are over 60% of its customers who are the return customers and this trend seems keeping rising continuously. Explore has been managing small group adventure holidays throughout the world since 1981. Explore business development system include 400 tours that are offered for over 120 countries, which makes the group an international adventure holiday and travel planning firm (Explore, Inc., 2012). This paper presents an analysis of adventure holiday with itinerary analysis of the adventure holiday. The report focuses on the adventure holiday trips for the country of Ukraine and Turkey. It also include a detailed analysis of competition in the industry, price schedule for the holiday, cost estimates, and analysis of sustainable environment with respect to implication on the business from marketing perspectives.

Demand Determinants for Adventure Holiday Planning in Ukraine and Turkey

Demand determinants outline the factors that stimulate or reduce demand for services supplied by the Explore. The demand for travel arrangement and reservation services is derived from domestic and international visitors (residents traveling within their own country and residents traveling overseas). It is estimated that 34% of Explorer revenue is derived from domestic travel sales and 64% from international sales. Of this, leisure travel is estimated to account for about 55% of all sales and is increasing, while business travel is estimated at 45% (Ibis World, 2012b). Business travel bookings are, however, increasingly being concentrated in the hands of the largest agencies and direct bookings with hotels and airlines is increasing.

Demand for adventure holidays offered by the Explore is sensitive to changes in the available leisure time to travel and take holidays, and factors affecting the level of domestic and international business travel, including business sentiment and profits (Ibis World, 2012c). Changes in real household disposable income have a particularly strong affect on the sales of Explore business. Household disposable income is affected by movements in tax and interest rates, unemployment and factors such as gas prices. Exchange rate factors in a resident's country relative to other major currencies are important as exchange rates directly affect the cost and attractiveness of overseas travel (Ibis World, 2012d). The introduction of new airline technology may affect the costs of airfares and the demand for travel.

Other factors that affect industry demand are the real price of travel and preference of travelers for packaged tours relative to independent travel. Over the past five years, there have been a number of other factors affecting the industry, such as geo-political tensions, wars, fears of terrorism and the spread of diseases, such as the flu virus, SARS and H1N1 (Ibis World, 2012b). Technology is a growing factor affecting demand, particularly in terms of travelers making their own direct bookings and reservations via specialist software offered on the internet. Ticketless travel using smart (i.e. computer chip imbedded) credit cards or e-tickets will influence the demand for the services of this industry ...