CITY SHORT BREAKS ABROAD IN NON-EURO ZONE CITIES
I. MARKET SEGMENT AND CHARACTERISTICS 1
II. MICRO ENVIRONMENTAL AUDIT 3
III. SWOT ANALYSIS 7
IV. KEY MARKETING STRATEGIES 10
V. MARKETING OBJECTIVES 13
VI. OUTLINE MARKETING MIX 15
This documentoutlines the marketing plan for Razzle Holidays entering in a new segment: City Short Breaks in Non-Euro Zone Cities. Based on the Market overview (see appendix A), internal audit (see appendix B), and environmental analysis; a marketing strategy with its objectives and marketing mix has been outlined for this business opportunity.
I. MARKET SEGMENT AND CHARACTERISTIC
City short breaksoverseas market focusing on Europe cities out of the Euro zone is a market with great potential for a company like Razzle Holidays, which has good reputation in the all inclusive package holidays focus mainly in families and couples in the social groups B, C1 and C2.
According with Mintel reports, package holidays volume has stabilised at around 19 million annual trips, and volume levels are still3.5 million higher than a decade ago. As the report indicates the package holidays remain strongly attached to the British culture.
In addition, reports from Mintel and Key Note show that the number all-inclusive holidays abroad have grown almost 32% over the past five years; with an estimate value of £8.4 billion.
The volume of short breaks abroad has grown by 23.3% over the past five years,with expenditure up by 38.8%. During 2007 over 7.5 million were sold, according to Mintel data, with an overall worth of £2 billion. The information available suggests that short breaks have been increasing steadily their share of the overall UK travel market in recent years, to an extent of one in six holidays taken abroad and one pound in every twelve spent overseas.
Until last year, thissegment was expected to increase its market share while the overall holiday market slowed down, with a “clear acceleration” during the period 2007 – 2009. Mintel forecasted a 41% growth in volume in the overseas all inclusive holidays market for 2012.
Source: Mintel short break abroad UK May 2008
Nevertheless, the economic downturn, the increase in fuel prices and environmental pressures posea threat to the whole UK holiday market, with travels abroad specially impacted. In addition, according to Mintel2, short breaks overseas are more likely to be abandoned during recession. “What was a cheap weekend in Europe on-year ago is now comparatively expensive, due to the weakness of the pound”.
However, also as a result of the economic crisis holidaymakers are now more inclined towardsthe package model, while looking for a greater control over their budgets because with this kind of holidays cost are known and paid in advance.
In the same sense, because of the euro strength, short breaks to Europe is not the best option right now, but destinations outside the euro zone remain as a good option, even more considering the growth in interest among British about discovering newdestinations like Czech Republic and Poland, both countries experiencing the highest increase levels in the era of cheap travel.
Value of the overseas short-break market (1-3 nights), 2003-13
Source: Mintel Re-forecast Leisure Travel, March 2009.
And among all this, as Mintel and Key Note reports say, short breaks remain a key driver for the growth of all UK holidays’ market duringrecession. Even short breaks overseas keep a forecasted growth, not as high as expected last year but still growing for the next 4 years.
II. MICRO ENVIRONMENTAL AUDIT
About 43% of the British adult population, according to Mintel report, have been on holiday overseas in the last 12 months from the publication of the report1, which means an estimated of 26 million people.