HI5003 Research On Australian Tour And Travels Industry Homework Answer

pages Pages: 4word Words: 890

Question :

Group Assessment Details and Submission Guidelines
Trimester
T3 2020
Unit Code
HI5003
Unit Title
Economics for Business

Assignment Specifications

Purpose:

This assignment aims to enhance students’ research and analytical ability through the application of their economics knowledge learned in the course unit to compose a company report.

The recommended assignment structure for final submission is as follows:

  • Table of content
  • Executive Summary (Optional)
  • Introduction
  • Introduction to the company
  • Industry/sector background
  • The market structure of the industry/sector
  • Factors that influence demand for the company’s product(s)
  • Factors that influence supply of the company’s product(s)
  • Elasticity
  • Impacts of an event on the industry/company
  • Conclusion
  • List of References.

Note*: The structure content is not limited to the items listed above. Creativity for a better report structure is a key requirement.

Detailed requirements of the assignment

You are a group of advisors to the Management Board in your company with Headquarters in Australia. As advisors you are first, required to conduct research on your selected sector/industry covering the previous 5-10 years. Second, you are required to present a company strategy to your Management Board covering the next 5 years. Third, your Management Board requires that you make a presentation of your findings and strategies, and you prepare a 2,500 word market repor. The market report should, as a minimum, address the following key issues

  1. A description of your company and the industry your company
  2. An analysis of the market structure the industry
  3. A discussion about the demand and supply conditions for your product(s) or service(s).
  4. A discussion about the demand elasticity for your product(s) or service(s)
  5. An analysis of a recent event that has (or is likely to have) substantial impacts on your industry/sector.

Note:

  1. if your company has many products and/or services, you can select a representative product/service to discuss for points (2); (3); (4); and (5).
  2. This report should provide useful information for your company’s Management Board. It should use a variety of resources, including the textbook, newspapers, industry reports, the ABS website, and other sources.
  3. Furthermore, your report should include headings and sub-headings. It needs to be properly referenced using the Harvard style and at least 5 references.

Australia sector/ industry selection distribution

  1. Agriculture sector: livestock and meat industry
  2. Agriculture: fresh foods industry
  3. Agriculture: Floriculture industry
  4. Automotive industry
  5. Aviation Industry
  6. Beverage Services
  7. Building and construction services
  8. Consumer services: Hairdressing
  9. E-commerce
  10. Education University and tertiary institutions
  11. Education: Early childhood-Primary Education
  12. Education: Nursery and Education care sector
  13. Education: Schools education sector (Primary and secondary)
  14. Education: Technical And Further Education (TAFE) sector
  15. Energy Utilities Industry
  16. Engineering and architectural services
  17. Entertainment: Live performance industry
  18. Entertainment: recorded entertainment and cinema industry
  19. Finance: foreign exchange market
  20. Finance: Superannuation services
  21. Financial services –Banking sector
  22. Financial services -Insurance Services
  23. Fishing
  24. Forestry
  25. Games and sports
  26. Gasoline supply services
  27. Hair and beauty
  28. Health Care and Social Assistance
  29. Healthcare services- Home care and Aged Care Services
  30. Health care-Disability services
  31. Information: Broadcasting
  32. Information: internet
  33. Information: land line telephone communications
  34. Information: Mobile telephone communications
  35. Labour industry
  36. Leisure and hospitality: Marine tourism and charter vessels
  37. Leisure and hospitality: Cruise services
  38. Leisure and hospitality: Fast foods
  39. Leisure and hospitality: Hotel and Accommodation services
  40. Leisure and hospitality: Tour and Travels services
  41. Leisure and hospitality: Tourism and heritage sites
  42. Mannequins and modelling
  43. Manufacturing sector
  44. Media and Entertainment
  45. Mining: Coal mining
  46. Mining: Gem and other natural resource industries
  47. Mining: Oil and gas industry
  48. Mining: Other minerals
  49. Petroleum exploration
  50. Pharmaceutical industry
  51. Postal and Warehousing Professional
  52. Property market, Rental, Hiring and Real Estate Services
  53. Public Transport: Private-for-hire Vehicle (non-rail) Industry
  54. Public Transport-Train services
  55. Publishing industry
  56. Quarrying industry
  57. Quaternary sector: Computing and ICT (information and communication technologies)
  58. Quaternary: Research and design (R&D)
  59. Quaternary: consultancy (offering advice to businesses)
  60. Racing industry
  61. Recreation/ Hotel and restaurants
  62. Retail trade
  63. Scientific, Technical Services and Architectural services
  64. Textile industry
  65. Utilities: Electricity and Gas services
  66. Utilities: Water and Waste Services
  67. Utilities: Water, sewerage and drainage services
  68. Warehousing
  69. Whole sale trade
  70. Wine industry
Show More

Answer :

Introduction- 

The tourism industry of Australia is one of the largest industry of Australia which contributes in country’s GDP. The weather conditions and tourist attraction points makes the country most preferable country for tourist to visit. Although 70% of GDP which comes from tour & tourism is contributed by domestic tourist only. Australia is the best attraction for the domestic and international tourist as well as. The aim of this research is to study each and every aspect of Australian tour & travels industry, apart from this for the better understanding of industry, the researcher need to study the details of a company which deals in tourism. In general, tourism is the provision of services to tourists (both domestic and international) travelling for personal, recreational and/or business-related purposes. In additional to this the researcher need to study the factors which affects the supply and demand of the company’s product and services. 

Purpose of Study- 

  • To study the current scenario of Australian tourism industry
  • To do an in-depth research on the factors which affects the supply and demand of company’s product and services (Tour & travels company)
  • To evaluate the impact of an external event on Australian tourism industry

Introduction to the Company-

Discovery Nomads- Discovery Nomads is an Australia based adventure company, which offers independent tours and small private group tours. Company was established by a traveler itself who has traveled more than 90 countries and have vast experience about different countries and cultures. Company is known for providing unique adventure tour at affordable price. Company offers itineraries in Europe, Asia, North and South America, Africa and Australia. Company is renowned for creating best traveling experience for the customers (travelers). The internal customer of the company are the employees who are operating company’s site and taking care of all promotional activities of company while the external customer are those who plan their tour from company’s portal. 

Company’s Industry/Sector Background- 

The tourism industry of Australia is one of the largest industry of Australia which contributes in country’s GDP. The weather conditions and tourist attraction points makes the country most preferable country for tourist to visit (Liburd & Becken, 2017).  Although 70% of GDP which comes from tour & tourism is contributed by domestic tourist only. Australia is the best attraction for the domestic and international tourist as well as. In the financial year 2019, the GDP of country which come from tourism industry has raised by 6.6% as per the data of tourism industry. 

Market Structure of the Industry/Sector- 

Tourism industry of Australia is one of the largest industry which serves the tourist across the globe. The climate condition and renowned places of Australia makes its more interesting for tourist to visit the country. Australia serve both domestic and international tourists which comes to country for sightseeing or some other business purpose (Sun & Higham, 2020). The tourism sectors of Australia contributes to the country’s GDP at large scale. Discovery Nomads is one of the Australia tourism company which serves the tourist across. The services of Discovery Nomads includes package or itineraries planning to the tourists. In additional to this Discovery Nomads offers luxury private and customs tours to its tourists which come from different part of the country. 

Factors that Influence Demand for Company’s Products- 

The services of Discovery Nomads includes private small group tour, luxury tours and independent tours also, while the products includes tour operators, transportation facilities and luxurious hotels. Currently company (Discovery Nomads) is offering its itineraries in different countries including Asia, Africa, Europe, North and South America also. There are some factors which influence or effect the demand of the company’s product and services since the company (Discovery Nomads) is serving in tourism sector so the season and environmental conditions of the country has a direct impact on demand of products or services.  

Price- Price is the main factor which has a direct impact on the demand of the tourism industry products and services. If the prices of services or tour is high and the income of consumer is low then the consumer is more likely to avoid the tour plans. Apart from the income and price of itineraries, the interest of the consumer also have a great impact on the demand of products. 

Security- security is another factor which has a direct impact on demand of tourism sector’s product and service. Before visiting the city or country most of the tourist do check the security and safety of the country that’s the reason most of the tourists avoid to visit the countries where the risk of terrorist attack is high. Security is one of the most important concern of the tourists while visiting a place or a country. 

Season/climate condition- Season or climate condition of a country have a great impact on demand of product and services of tourism sector. Although the adventure tourist are not much impacted by the climate conditions of the country. Extremely cold and extremely hot climate conditions can be a biggest hurdle for the demand of product and services in context to tourism industry (Wang, Fang & Law, 2018).

Trends- Trends are the influencing factors which allures the tourist to visit or explore the country. Trends can have a positive and negative impact on the demand of the tourism industry’s product and service. For example now a day’s sky diving has become most common trend among tourists which allures the tourists to visit countries like Dubai since the sky diving of Dubai is world famous. 

Image of Destination- The image of destination can have a great impact on the demand of tourism industry’s products and services. Country like India is known for its enrich culture and customs which attracts the tourists to visit the country although the image of country in respect to climate condition and security is not well. At the end it can be said that the overall image of country (including security, climate condition) has a great impact on the demand and supply of the tourism industry’s products and services. 

Income of consumer- The income and purchasing power of the consumer has a direct impact on demand. Countries like Dubai, Australia and America are relatively more expensive as compare to countries like India and China that’s the reason the tourist which have lower income level prefer to visit the countries which are relatively less expensive. Apart from income of consumer, the willingness of consumer to purchase the product also have a direct impact on demand of industry’s products and services.

Quality of products/ services- For the tourism industry the product and services are hotel, transportation medium and tour operator. If the quality and comfortless of the services are not up to mark then there are high chances of reduction in demand. Apart from hotel facilities, the transportation quality also have a direct impact on the demand of tour and travel itineraries (Zhang, Song, Wen & Liu, et. al. 2021).

Tourist interest or the taste of tourist- The taste or choice of tourist have a great impact on the demand of tourism industry’s products like hotel and cab booking. There are different types of tourist which have different preferences and tastes. For example the taste and choice of business tourist is quite different as compare to the choice and interest of adventure or health tourist. 

Number of sights- The number of sight or attraction places have a great impact on the demand of tourism industry’s products and services. Australia have different historical and natural spots which include Sydney, Brisbane and Gold Cost. As per the tourist behavior study it has found that tourists prefers to visit those countries which have different sightseeing places. 

Factors that Influences Supply of the Company’s Product-

Climate condition- The climate condition of a country have a great impact on the supply on tourism industry’s product and services. Mostly leisure tourist don’t prefer to visit the countries which has extremely cold and hot environmental conditions. Although adventure tourist are more likely to visit extremely cold or hot places since they are keen to experience different life experience.

Quality of products/ services- For the tourism industry the product and services are hotel, transportation medium and tour operator. If the quality and comfortless of the services are not up to mark then there are high chances of reduction in demand. Apart from hotel facilities, the transportation quality also have a direct impact on the demand of tour and travel itineraries. 

Tourist interest or the taste of tourist- The taste or choice of tourist have a great impact on the demand of tourism industry’s products like hotel and cab booking. There are different types of tourist which have different preferences and tastes. For example the taste and choice of business tourist is quite different as compare to the choice and interest of adventure or health tourist (Nhamo, Dube & Chikodzi, 2020).

Price- Price is the main factor which has a direct impact on the demand of the tourism industry products and services. If the prices of services or tour is high and the income of consumer is low then the consumer is more likely to avoid the tour plans. Apart from the income and price of itineraries, the interest of the consumer also have a great impact on the demand of products. 

Law and regulation- The demand and availability of goods and services are also significantly influenced by government laws and regulations. Countries such as Australia have made 6 free trade alliances with various countries that allow businesses to export and import tax-free goods and services, as well as promoting the exchange of culture and customs across the globe in addition to this free exchange of goods and services. Due to this free trade policies of Australia government the political relationships of country has strengthen with other countries. 

Security- security is another factor which has a direct impact on demand of tourism sector’s product and service. Before visiting the city or country most of the tourist do check the security and safety of the country that’s the reason most of the tourists avoid to visit the countries where the risk of terrorist attack is high. Security is one of the most important concern of the tourists while visiting a place or a country. 

Government policies- Government policies for tourists includes currency exchange rates and visa sanction process. Some countries have easy process to sanction the tourist visa while some other countries have complicated visa sanction process. In additional countries like America has fixed the policies regarding the number of customer visit in a year. 

Income of consumer- The income and purchasing power of the consumer has a direct impact on demand. Countries like Dubai, Australia and America are relatively more expensive as compare to countries like India and China that’s the reason the tourist which have lower income level prefer to visit the countries which are relatively less expensive. Apart from income of consumer, the willingness of consumer to purchase the product also have a direct impact on demand of industry’s products and services.

Political relationship of country with other country- The political relationship of country with other countries have direct impact on demand and supply of product and services. If one country have strong and healthy business relationship with other country then there is high chances of free trade or exchanges of good and services at low interest rate. 

Elasticity- 

Elasticity is characterized as the economic jargon used mainly to estimate the impact of the price of the commodity on customers and the purchasing behavior of the seller. It has primarily noted that if the price of goods rises, the buying power of buyers, on the other hand, decreases if the price of the commodity decreases, consumers are more likely to buy products. If the price of the commodity increases and the seller has a large stock of goods, so the seller is more likely to sell more products, while the seller is more likely to sell its products if the price of products falls.

Price Elasticity of Demand- 

The elasticity of demand for prices is defined as the effect of price on price demand. If the price of goods rises, then the demand for products decreases, while the demand for products rises automatically if the price of products decreases.

Price Elasticity of Supply- 

The price elasticity of the supply deals with the influence of the price on the supply and the quantity of the goods. In the other hand, if the price of goods rises, the production of products, if the price of products and raw materials decreases, then the supply of products increases. The availability of goods and raw materials is also influenced by government policies, tax rates, environmental conditions, government laws, and regulations.

Impact of an Event on the Industry/Company- 

Covid-19 has disrupted not only Australia’s economy but also of the whole world. Tourism is the sector or industry which has disrupted at a large scale because of this pandemic (Covid-19).  Due to this pandemic, many people around the world have lost their jobs, which has been a big explanation for many mental disorder and employee dissatisfaction (Peters, Peters & Peters, et. al. 2020). The entire industry around the world, including tourism and hospitality, has also been affected by this covid-19. Not only Australia’s tourism industry but also whole world’s economy has disrupted at larger scale because of this Covid-19. Tourism and hospitality sector of the Australia has encounter huge loss because of long time suspension of transportation facilities and tourism activities.   

Conclusion- 

Tourism is the most dynamic and evolving industry which facilitates exchange of customs and culture among the countries. The tourism industry of Australia is one of the largest industry which serve both domestic and international tourists, although because of this Covid-19 whole industry has disrupted. Tourism industry of Australia is one of the largest industry which serves the tourist across the globe. The climate condition and renowned places of Australia makes its more interesting for tourist to visit the country. In this research study, the researcher has studied each and every aspect of Australia’s tourism industry including the factors which has a great influence on the supply and demand of the industry’s product and services. In additional to this an in-depth study about the tourism company named Discovery Nomads. Discovery Nomads is an Australia based adventure company, which offers independent tours and small private group tours. Company was established by a traveler itself who has traveled more than 90 countries and have vast experience about different countries and cultures. Company is known for providing unique adventure tour at affordable price. Company offers itineraries in Europe, Asia, North and South America, Africa and Australia also.