Travelocity SWOT Analysis Essay Example | Topics and Well Written Essays - 750 words

Travelocity SWOT Analysis - Essay ExampleWe market these net rate offerings to travelers at a price that includes dish fees that we retain, plus an amount sufficient to pay the travel supplier for its charge for providing the travel accommodations, along with any applicable occupancy and other local taxes on that charge. For this type of business model, we require pre-payment by the traveler at the time of booking.High customer acquisition costs, as the marketing and promotional costs be quite high to deal with and it is challenging to upgrade the features of online portal quite often. A new feature from competitor keep Travelocity on toes as it whitethorn deviate Travelocitys customers.Customers may reduce transactions through our distribution channels, which could reduce Travelocity revenues business segments hurl objectives that lead to conflicts with customers of other business segments related to parent club Sabre. For example, Travelocity and Travelocity Business operation s compete with travel-agency subscribers of Sabre Travel Network. That competition could ca subprogram current or potential travel agency subscribers to elect to use competing GDS providers, websites or other channels of travel distribution, which could reduce our transaction fee revenue and materially adversely affect our business.OpportunitiesSustainable global corporate customers return creates an opportunity to provide right customer experience and extend the corporate associations for a long period of time. As travel industry is extremely competitive, companies defecate to target to retain their most valuable clients. Along with retaining clients it has to look out for new clients & markets for considerable growth opportunity.Opportunities to explore the new markets as the internet insight in developing countries is on raise and E-Commerce is evolving tool for travel purchase. Countries like India where internet penetration is picking up at rapid pace have to be explored wit h aggressive marketing and promotional strategies. Opportunities exist for online booking for rail and road travel across the globe as it is the basic mode of the customary mans travel.ThreatsEconomic downturns, rising fuel costs and the financial instability of travel suppliers in recent times have bought the confidence levels of travel markets to an all time low.Political instability, acts of terrorism, hostilities and war have created a negative perception on the travelers mind