Introduction
In the current trading, world corporations are adapting international trading as it seems to be diverse. Global firms experience various challenges, such as political instability and economic, sociological, and cultural environment, unlike other corporations operating within a confined geographical environment. International logistics and operational capabilities are critical in today’s economic climate. The danger of doing business overseas rises in step with the level of competition in the global market (Lukianenko et al.,2019. p.563). As a result, additional resources are essential to reach this goal. The company has several potential to raise its sales income and market share due to worldwide expansion. Still, there are also many additional problems that this form of organization must overcome.
To be successful in today’s worldwide economy, multinational firms must be competent in managing the complexity of their unique local surroundings. Additionally, this would also help the organization maintain its competitive advantage. The word “global trend” refers to a widespread change in an aspect of a situation that could affect a substantial number of nations. The “global drivers” that are transforming our world affect everything and everyone (Sharif et al.,2021. p.964). These factors include cultural, social, economic, political, technological, and environmental factors. Consequently, this paper investigates the international conditions and trends that the Saw Day firm may face.
Saw the day’s background
Twenty years ago, Alastair Saw Day started as a tour guide in France, where he learned the ropes and formed connections with the locals that would later become the foundation of his now global business, Saw days. The company has left its existing site in Bristol to begin an exciting new adventure. The company’s mission is to provide customers with an improved vacation experience by spotlighting extraordinary lodgings all over the globe. His conversations with eccentric French people like aging winemakers, ladies who enjoy Scottish sword dancing, and multitasking fish waves inspired him to write a book on unusual places to stay in France. Instead of staying in lifeless, average hotels, people were encouraged to go on their adventures and see the amazing things the world has to offer. The company has spent the past quarter century pursuing that single, uncomplicated goal. Others we meet, the unusual locations we discover, and the adventures we do are all things we gladly impart to those around us. We’re on the hunt for a means of alleviating the boredom that pervades so many hotels.
The company’s website and user guides are clean versions of the original notes, with fewer typos and spills. The maps won’t need to be hand-cut this time, nor will the paper dots. We keep on looking for locations that are models of openness, friendliness, and individuality, as well as those that promote a laid-back way of life. We come across locations where countless hours of attention to detail have resulted in simple, private delights that are one of a kind.
Global trends and drivers
Population and demographic are key trends in the tourism industry. Currently, the world population stands at 8 billion, and it is anticipated that the population will have grown to 9.7 billion by 2030. Day and day, people are giving birth; hence the population will continue to increase, though not uniformly across the globe. Developed and developing countries have vastly different birth and death rates, even though both are declining. For instance, by 2050, the percentage of people over 65 will rise to 25% in developed countries (UNDESA 2019). A smaller percentage engaging themselves in the workforce is likely to affect social and health services. The population of people under 24 is declining everywhere in the world. Despite being a developing country, Sub-Saharan Africa will account for half the global growth between 2019 and 2050. Nigeria’s population, for example, is expected to double by 2050, reaching 400 million people. India and China, the world’s two most populous countries, will take divergent paths: by 2027, India will outnumber China (UNDESA, 2019).
By 2100, the African population will account for almost 40% of the global total. The global birth rate may be declining, but it is increasing in some parts of Africa. So, this would lead to a young dividend or further exacerbate issues on the African continent. Most of the world’s population now resides in urban areas. This trend is anticipated to continue as people migrate to cities in search of more significant economic and social opportunities (Ianioglo and Rissanen,2020. p.531). Yet the city’s expanding population has resulted in a less than equitable allocation of the city’s benefits. Saw Day must offer goods and services that appeal to the elderly, culturally diverse, multigenerational travelers, and the daring millennials to keep up and adapt to demographic trends. Human resource policies and practices must be re-evaluated to hire and retain employees.
Attacks by terrorists and political unrest obviously cause interruption in the tourism economy, but they do not halt it. the great majority of the effected regions where unrest has erupted and gained a lot of media attention. Although the number of terrorist-related deaths has fallen since 2015, the number of affected countries, at 71, is the most it has been since 2002, as measured by the global terrorism index compiled by the Institute for Economics and Peace. (2019). In the past five years, far-right terrorism has increased by 320% in Western nations. The COVID 19 pandemic caused a dramatic and immediate shift in the relationship between travel safety and health. The Canadian government said that beginning in early March 2020, it would impose restrictions on all international visitors and citizens. After failing to stop the global spread of the virus, the country was isolated in an attempt to “flatten the curve” of mortality (Ianioglo and Rissanen,2020. p.533). Global travelers and the idea of travel safety have had to develop as a result of the pandemic.
If tourists feel unsafe in a particular area, they may not visit. Hence, this will likely prevent that place from appearing on their “wish lists.” The significance of passenger safety and security increases as countries take measures to safeguard their citizens. Governments around the world issue travel advisories advising their citizens to clear up trouble spots and active conflicts. Travelers have felt the effects of the heightened focus on security in many different ways. Specifically, there are advancements in airport security to safeguard airplanes and their passengers better. As a result, passengers may see longer screening lines and restrictions on what they can bring on board. Passport and fingerprint checks are now required to enter several nations as a safety measure (Westcott & Anderson, 2020). There are no effective measures to curb and mitigate terrorist attacks, but the tourism industry is making every effort to ensure the safety and security of its customers.
Opportunities for Saw Day
As much as tourists benefit from being exposed to a new culture, locals also gain from the tourism industry. It makes it possible for young business owners to launch innovative products and services that would not be viable, serving just the local community. Today, tourism is one of the world’s major businesses, with several subsectors, including transportation, lodging, food service, retail, trip planning, and tourist-oriented pursuits, including sightseeing, museum visits, outdoor excursions, and theme parks. Providing these services requires organizations with expert knowledge and skills to utilize the available resources to gain more. Sawday’s compilation offers a quick cut through the generic and impersonal accommodations put together by those with a genuine love for providing excellent service. A member of Sawday’s seasoned staff inspects each bed and breakfast, hotel, inn, and self-catering location to ensure it has a unique character and welcoming atmosphere necessary to make your vacation unforgettable.
The company has created tourism research opportunities as they establish the best Places to visit in different locations; thus, primary and secondary data are used in tourism research. The tourist researcher is responsible for arranging the conduct of market research, consumer surveys, and other research initiatives (Ardito et al., p.1807). As an employer, they provide roles such as tour manager, escort, coordinator, planner, publicist, group tour expert. The industry is vital in making sure there is employment creation for many people in various capacities to make them earn their livelihood. Employment is vital in promoting the economy’s growth and raising people’s living standards by making them have purchasing power and pay taxes, thus promoting the increase in the country’s GDP.
The industry is positioned to raise more cash as it has the best staff who research the best sites to visit and places to stay through their selection methods, ensuring superb service to clients. The selection of good places and hotels to travel to is the best to ensure that people can learn and interact with different cultures and new scenarios in making sure they enjoy and do not regret spending their money (Ardito et al.,p.1807). High-quality services are ideal in ensuring the company continues to have a positive image to its customers and make sure they stand out in the competitive environment.
Revenues may rise if the quality of the service provided is improved since this will result in a greater proportion of satisfied customers who continue to use the service, as well as new consumers who will hear about the service’s excellence via good word of mouth (Sawday,2018). There has been a lot of research into the direct advantages of service quality via client retention but much less into the indirect benefits through customer acquisition and increased use. The company has to have a robust system to maintain its upfront growth and keep having the best clients each year to tour with them and enjoy their services.
Challenges facing Sawday
As in the travel and lodging industry, the company will face difficulties common to its competitors. The spread of COV19 has deterred some people from taking vacations. Considering the current state of the COV19 epidemic, most vacationers and travelers are understandably wary about reserving any kind of trip. Because of the COVID outbreak on board, many cruise passengers will never forget the ship’s denial of entry to ports and eventual ban on landing (Sinulingga,2021. p.175). Passengers’ anxiety and reluctance to take vacations have increased dramatically due to the unpredictability of travel. The capacity of travel agencies to ease their clients’ worries by providing accurate information and insightful analysis is the single most important factor in maintaining strong relationships with their respective suppliers. If the company cannot sell or offer its services effectively, profits will drop, and layoffs will be necessary.
A further formidable obstacle for Saw Day is the ever-changing landscape of marketing. Marketing is difficult because it constantly changes, making it difficult for the company to adapt quickly. The company has to embrace technological advertising because conventional methods have failed. Companies that rely on antiquated forms of promotion have a tough time figuring out how to succeed in the modern market (Karimova,2020. p.28). Although it would take years for Sawday management to evaluate and establish its strength, online marketing is a surefire technique. Reservations made online by sincere customers are guaranteed to be paid for in full before delivery.
Several factors, including inflation and tax rates, affect commercial enterprises. Because of this tendency, unions and other groups representing workers went on strike to demand higher pay. A new bunch seemed to be attacking daily, creating havoc on passing automobiles and pedestrians because of this. Inflation is a global problem that can impact tourists at home and in their countries. A travel agency may often help pick up the pieces if a client’s vacation plans are disrupted by strikes or industrial action. Sawday operates globally, subjecting the tax laws of the numerous countries where it conducts business. Multiple governments have established onerous tax regulations to stimulate domestic manufacturing, but these rules hinder Sawday from entering the market (Khan et al.,2020). Because of the high cost of compliance with these tax requirements, the corporation may decide to limit its operations to the domestic market, where the regulatory burden is lighter but output is lower.
In addition, every customer requires the company’s assurance of their safety. For decades, political unrest in many parts of the world has posed a serious challenge to the industry’s ability to grow. Visitors from other countries are less likely to visit a country that is experiencing political unrest or has an inadequate police force. Despite Saw day’s thriving economy, the firm is vulnerable to natural and man-made disasters that can shake visitors’ faith in a place, whether the threat is real or imagined (Khan et al.,2020). Terrorism and political organization-related travel security concerns have been brought to the forefront by current events in the twenty-first century. Sawday is also vulnerable to natural disasters like pandemics, tsunamis, earthquakes, floods, volcanoes, and avalanches. Whenever an unexpected event causes a drop in tourist confidence and makes it harder to carry on, as usual, we call that a crisis.
Conclusion
World firms are adjusting worldwide trade in the current market because it appears to be diversified. Unlike other organizations working inside a constrained geographical setting, global firms face various obstacles, including political instability and the economic, sociological, and cultural environment. In the current economic environment, global logistics and operational capabilities are essential. As global market competitiveness intensifies, so does the risk of conducting business abroad. Therefore, greater resources are necessary to accomplish this goal. Due to its global expansion, the company has numerous opportunities to increase its sales revenue and market share. However, this type of organization also faces some other challenges. Global trends and drivers in tourism include demographic and terrorism, and safety. Organizations operating in the tourism industry face challenges such as inflation, hard economic prevailing situations, and lack of security which hinders effective and efficient service delivery.
References
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