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Case Study on Marketing of Ethiopia Tour Package

In: Business and Management

Submitted By messy
Words 6109
Pages 25
CHAPTER 1
INTRODUCTION
1.1 BACK GROUND INFORMATION OF THE STUDY
A tour package is an offer of a tour program composed of transportation, accommodation along with an escorted tour in an exchange for a predetermined single price (Business dictionary .com). It is sold to holiday makers by tour operators, travel agencies or directly by airlines through online or agency arrangements. Holiday package is a marketing strategy that helps related businesses come together to Work in partnership to sell their products through product bundling (Venkatesh and Kamakura,2003) .
Nowadays different airlines of the World are involved in selling air transport service through the same Way by entering contractual agreements with various service providers such as hoteliers or tour companies .As a result most carriers such as Emirates, South African Air ways, Kenyan Airways etc are the beneficiary of this strategy mainly due to their own home base are tourist destinations .When it comes to Ethiopian airlines the actual fact is contradictory in that it has not been a beneficiary of its own country tourism attractions through product bundling .And the holiday package development is at its infantile stage. As a result the national carrier became highly dependent on the 6th freedom traffic right. That is 65 % of the total traffic are transiting Addis Ababa as stated on Ehiopian Airlines Annual commercial report (2010). As such no attention was given until recently to develop in-house package.
In fact there are several reasons for this .The major being the political and economic policy of the ruling bodies especially after the fall of Imperial Hailessie administration could be cited as a setback for tourism sector development. That is the coming of a military junta to power PMAC in 1974 introduced the socialist philosophy and command economy (Thomas and Berry, 2002) .This had a bad impact with...

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