STRAMA PAPERS-TOTI DULAY
BLUE HORIZONS STRAMA PAPER—- GROUP 4
I. EXECUTIVE SUMMARY
The Blue Horizons Travel & Tours, Inc. is an internationally owned and managed travel and tours organization established in 1981. Blue Horizons Travel & Tours, Inc. has two (2) operating divisions; theInbound Division is the ground handler in the Philippines for some of the biggest tour wholesalers in Europe, the Middle East and Asia. Its services cover sightseeing, packaged tours and roundtrips, domestic air reservations and ticketing, car and coach rentals, multi-lingual tour guides, study tours, congress and conventions and “Inspired Incentives”, a collection of incentive travel programs and events specially designed for corporate winners and top producers while the Outbound Division, which is IATA (International Air Transport Association) accredited, provides comprehensive international travel service to corporate and institutional clients. This comprehensive travel service includes a computerized reservation system, automated ticketing, travel management, itinerary planning, documentation and ground arrangements worldwide for leisure or business travelers. Blue Horizons also owns and manages its own tourist transportation equipment.
It is apparent that Philippine is facing many problems in the development of its tourism industry. Blue Horizon together of many companies is facing major problems about several crucial issues that government needs to look into immediately to regain the tourist’s trust in the industry.
We have identified three (3) major competitors of Blue Horizons Travel & Tours, Inc. which are Rajah Travel Corporation , Travel Guru Inc and
Our recommended strategies for Blue Horizons Travel & Tours, Inc. are market penetration as primary strategy and product development as secondary. Market penetration includes externally, strategic marketing planning and promotion activities are required to improve the company’s public image and expand its international market share, launching new events to increase recognition to the company, and it creates more public sound about the company, publicity and awakens tourist’s awareness and brand-recognition, advertising expenditures, increasing the publicity effort. This strategy helps the company to recognize internationally and locally.
Product development includes market-product focus wherein the company may offer packages in travel and tour which is competitively reasonable at price, affordable packages for long weekends, annual vacation in the domestic market, convenient and well organized package tour, multiple destination maybe offers, affordable package offering a range of activities like shopping and dining. Superior customer service because it also creates loyalty and lessen the cost needed to attract new customers and tie ups with Department of Tourism, government can help the industry to develop more product line and provide better infrastructures for services in tourists.
The Blue Horizons Travel & Tours, Inc. must know the strength and weaknesses of its company to improve and maintain competitive advantages. Based on the result of Competitive Profile Matrix (CPM), Blue Horizons Travel & Tours, Inc. fall behind the Rajah Travel Corporation n and this is due because of lack of advertisement.
According to the SPACE Matrix that the Blue Horizons Travel & Tours, Inc. strong company that has achieved competitive advantages. Develop market penetration and product developments are strategies that suited for the company.
Base on the Internal-External Matrix of Blue Horizons Travel & Tours, Inc. that the company should maintain competitive strengths as well as use the opportunities to resort for survival in threats of the industry. Quadrant I means that the company has a strong and high competitive advantages.
The Boston Consulting Group (BCG) Matrix, the Blue Horizons Travel & Tours, Inc. is in position of “star” because the company remains stable with the market growth and high in market share.
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II. COMPANY PROFILE
A. Vision and Mission Statement
The mission of Blue Horizons Travel & Tours, Inc. is to be the leading travel and related services company of choice, providing premier services and innovative options to all customers. We will accomplish this by: · Ensuring that we have the best qualified and trained professional staff · Expanding market strength through superior service levels · Developing business opportunities through unique travel services that meet all business and leisure travel needs · Maintaining flexibility to adapt to local and international market trends · Establishing our team as the optimum service provider · Operating continuously in compliance with applicable industry principles and standards
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B. Company History
Blue Horizons Travel & Tours, Inc. is an internationally owned and managed travel and tours organization established in 1981.
Over the years, Blue Horizons Travel & Tours, Inc. has earned a reputation for competence and reliability. Highly trained and motivated team of 90 staff ensures that their clients receive the highest standard of service possible – whether for outbound travel or inbound tours.
Blue Horizons Travel & Tours, Inc. has two (2) operating divisions:
The Inbound Division is the ground handler in the Philippines for some of the biggest tour wholesalers in Europe, the Middle East and Asia. Its services cover sightseeing, packaged tours and roundtrips, domestic air reservations and ticketing, car and coach rentals, multi-lingual tour guides, study tours, congress and conventions and “Inspired Incentives”, a collection of incentive travel programs and events specially designed for corporate winners and top producers.
The Outbound Division, which is IATA (International Air Transport Association) accredited, provides comprehensive international travel service to corporate and institutional clients. This comprehensive travel service includes a computerized reservation system, automated ticketing, travel management, itinerary planning, documentation and ground arrangements worldwide for leisure or business travelers. Blue Horizons also owns and manages its own tourist transportation equipment.
Services & Solutions
The services of Blue Horizons are divided into two divisions: Outbound Division, and Inbound Division. The services offered by these divisions include the following:
Itinerary Planning & Consultation
Experience with Travel Counsellors which can provide an advice to the travellers’ on the best route to their destination, at the most cost-effective rate. They can also provide alternative routes for those who wish to explore other avenues and design itineraries that allow additional cities to be visited – where possible, at no extra cost.
Airline Reservations
Blue Horizons use the advanced Abacus Space system for their airline reservations. Using this system, highly trained and experienced outbound agents are able to make fast, cost-effective reservations for their clients.
Airline Tickets
Blue Horizons offers itinerary planning, routing and carrier suggestions, lay over (transit time), recommendations, reservations, reconfirmation (and/or amendments), ticketing, passenger briefing (if required), check-in service of an airport coordinator for groups upon departure and facilitation upon arrival.
Rates/Rebates/Airline Incentive
In the event that other company has contracted rates with any airline which is lower than Blue Horizons Travel & Tours are offering, such favourable rate shall be applied.
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Employee Incentive Travel Arrangements Blue Horizons provide conceptualization of the overall theme for the tour program, itinerary planning, conceptualization and delivery of themed events, recommendation and sourcing of pillow gifts/giveaways, hotel/transport reservations and ticketing. International Tours Blue Horizons provide clients with a wide variety of options in international tours, including tour packages to Europe, North America, Asia, and the rest of the world. Local Tours & Travel Blue Horizons highly skilled Inbound Division handles all kinds of travel requirements to any destination in the Philippines. This includes domestic flights, package tours, hotel reservations, and more. Customized/Specialized Tours For Blue Horizons corporate clients, they can plan business conferences, conventions and meetings. These can be designed to meet specified budgets and frameworks. International/Local Hotel Reservations Through international partner of Blue Horizons which is FCm Travel Solutions, they are able to offer outstanding negotiated rates for hotels around the world. For both individual and group travel, a service includes assistance in selection of suitable hotels overseas, reservation/confirmation (and/or protection booking in alternative hotels) pre payment facilities and message relay service when travel is in progress. International/Local Car Rental Reservations Transportation and sightseeing requirements at the destinations can likewise be arranged prior to departure. To a limited extent, and in selected countries only, rail, steamer, and boat reservation can be processed as well. Airport Assistance Blue Horizons can provide VIP airport assistance for people arriving at Ninoy Aquino International Airport (NAIA), to ensure smooth and hassle-free arrival in Manila. Ground Transportation Services Blue Horizons operates its own fleet of vehicles which can be used for transfers to/from the International and Domestic Airports, client’s hotels, offices or residences. Insurance Documentation department in Blue Horizons can provide travel and baggage insurance upon request, at preferred rates which are negotiated with suppliers. Travel Information Programs Blue Horizons offers programs designed to enhance client awareness of travel procedures as well as available products and services. They conduct seminars on reservations & ticketing, including a detailed overview of airline operations. They also produce a personalized newsletter containing information about travel procedures, breaking news and more. Visas & Other Documentation Processing Includes a competent review of required support documents in the application and renewal of passports, filing and releasing; visa application, processing and releasing; immigration clearances – entry, exit permits, etc.
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Blue Horizons has the following trade affiliations:
· International Air Transport Association (IATA)
· Pacific Asia Travel Association (PATA)
· Philippine Conventions & Visitors Corporation (PCVC)
· Philippine Travel Agencies Association (PTAA)
· Philippine Tour Operators Association (PHILTOA)
· Philippine IATA Agents Travel Association (PIATA)
· Movement of Incentive Travel Executives (MITE)
· British Chamber of Commerce of the Philippines
· Australia & New Zealand Chamber of Commerce
· Makati Tourism Foundation
· Cebu Association of Tour Operators (CATO)
· Cebu Travel Agencies Association (CTAA)
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Blue Horizons Travel & Tours, Inc. Branches
MANILA
Blue Horizons Travel and Tours, Inc.
20th Floor, Trafalgar Plaza,
H.V. Dela Costa Street,
Salcedo Village,
Makati City
Tel: + (63-2) 988-5000
Fax: + (63-2) 988-5001 and 848-3909
Email: info@bluehorizons.travel
CEBU
Blue Horizons Travel and Tours, Inc.
G/F, Zeraus Building,
Gorordo Avenue,
(Beside Equitable PCI Bank)
Cebu City 6000
Tel: + (63-32) 232-8886
Fax: + (63-32) 232-8890
Email: cebu@bluehorizons.travel
BORACAY
Blue Horizons Travel and Tours, Inc.
46-D, D-Mall de Boracay,
Balabag, Boracay Island,
5608 Malay, Aklan
Tel: + (63-36) 288-4901
Fax: + (63-36) 288-4030
Email: boracay@bluehorizons.travel
BOHOL
Bohol Travel and Tours, Inc.
Ideal Cinema Bldg.,
Tagbilaran City,
Bohol
Tel: + (63-38) 411-2984
Fax: +(63-38) 411-3840
Email: bohol@bluehorizons.travel
KALIBO (Partner Office)
Vacanze International, Inc
71-B Castillo Bldg.,
P. Burgos Street,
Kalibo, Aklan
Tel: + (63-36) 268-4098
Fax: + (63-36) 262-5215
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Blue Horizons Travel & Tours, Inc. Clients
Inbound (Travel Agency) Clients
Blue Horizons Travel & Tours, Inc. is theground handler in the Philippines for some of the biggest tour wholesalers and airlines in Europe, the Middle East and Asia. They are also the DMC for many of the top “Dot Com” companies around the world.
For reasons of confidentiality (because they are a behind-the-scenes partner) they cannot disclose the names of our B2B clients.
Corporate Clients
Corporate clients include some of the most well known names in global business, from a wide range of industries.
· ADP Pharma
· Agility Logistics
· Airspan Communications
· ALCON Industries
· Associated Press
· Avon Products, Inc.
· Cadburys
· Canadian Embassy
· Cereal Partners
· CTSI Logistics
· Cyber-dynamics International
· Dabur Pharma
· Duncan Philippines
· Edward Keller (DKSH)
· Embassy of Finland
· Foreign Exchange Association of the Philippines
· Glaxo Smith Kline
· Golden Arches Development Corp. (McDonalds)
· Goodyear Philippines
· Hewlett Packard
· Hexal Philippines
· International School, Manila
· IST
· Kumon Philippines
· Luen Thai
· Mandarin Oriental
· Money Market Association of the Philippines
· Natrapharm
· Nestle Philippines
· Nivea Philippines
· Otsuka Pharmaceutical Company
· Paperless Trail
· Philippine House of Representatives
· Philippine League Against Epilepsy
· Philippine Neurological Society
· Republic Cement
· Schenker Philippines
· Schering Plough Corp.
· Sinclair James
· SITA
· Software Factory
· Stroke Society of the Philippines
· Tate & Lyle
· The Walt Disney Company
· UCB Pharma
· Wartsila Philippines, Inc.
· Worldwide Fund for Nature
· Zuellig Pharma
Awards
Blue Horizons Travel & Tours, Inc. is proud of their industry awards, because they reflect the dedication and excellence of their people. Some of the more notable ones include:
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Hotels and Resorts
· Top Producers Award, Discovery Shores (2008)
· Top Ten Producers Award, El Nido Resorts (2008)
· Ten Year Plaque of Appreciation, Le Soleil de Boracay (1998-2008)
· Top Producer Award, Best Western Hotels (2008)
· Top Producer Award, Bellevue Hotel (2008)
· Top Producer Award, Boracay Regency Beach Resort (2007)
· Top Producer Award, Patio Pacific (2007)
· Top Producer Award, Bayview Park Hotel (2007)
· Top Producer Award, Waling Waling Beach Hotel (2007)
· Top Producer Award, ASB Condotels (2007)
· Top Producer Award, Oxford Suites (2007)
· Top Producers Award, Club Paradise (2007)
· Top European Agent Award, Fridays Resort Boracay (2007)
· Top Ten Producers Award, Ridgewood Residences (2007)
· Valued Client Award, Pearl Farm Beach Resort (2007)
· Top Producer Award, Holiday Inn Galleria (2006)
· Top Ten Producers Award, Makati Shangri-la (2006)
· Top Ten Producers Award, Millenium Plaza (2006)
Airlines
• Bronze Award, Philippine Airlines (2006) • Top Producer Award, South East Asian Airlines (2006) • Top Producer Award, Northwest Airlines (2005) • Top Agents Award, KLM Airlines (2005)
Government and Travel Trade
• Best Travel Agent in the Philippines – Travel Trade Gazette (2009) • Best Travel Agent in the Philippines – Travel Trade Gazette (2008) • Best Travel Agent in the Philippines – Travel Trade Gazette (2004) • Kalakbay Hall of Fame (1999) • National Tourism Award, Kalakbay (1999) • National Tourism Award, Kalakbay (1996) • National Tourism Award, Kalakbay (1995) • National Tourism Award, Kalakbay (1989)
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III. EXTERNAL AUDIT
A. KEY EXTERNAL FACTOR
1.0 ECONOMIC FORCES
Current Economic Conditions in the Philippines
INBOUND
In the year 2009, Department of Tourism (DOT) maximize the opportunities in the international markets and encourage domestic travel movement for the sustainability growth of tourism in the Philippines despite of global crisis and health threat of influenza A(H1N1), and year 2010 is a tough year in tourism industry in the country because of Hong Kong Tourists tragedy on August 23, 2010 were in seven Hong Kong tourists were killed and another eight injured, with two in serious conditions, in the abduction tragedy in the country. A 21-member Hong Kong tour group aboard a bus was hijacked by a dismissed Filipino policeman earlier in the day. The August 23 bloodbath outraged China and Hong Kong residents and prompted many prospective visitors to cancel their tour in the country. Wherein some tourists already in the country left abruptly before their tour was completed. The country suffered huge loss with Hong Kong and China accounting 9% tourist arrival in the Philippines according to the Department of Tourism (DOT). Philippine lost about P40 million ($ 890,000) in tourist income 2 weeks after the hijacking. Some government officials visited the Hong Kong and China and said that the tragedy happened was front-pages news there in radio, television and other media outlet. Philippines are again faced with a major tourism setback involving safety of foreign inbound tourists. Philippine government look forward for better condition of tourism industry in the country, said that this tragedy took only short-term effect in the tourism industry but not on overall economy of the Philippines. However the travel agencies said that the incident will deal a major blow to Philippine tourism after all tours to the country was immediately called off and some countries issued alert travel order (travel bans) like Hong Kong, Indonesia, Thailand, Nepal, Iran and Russia. The country also got condemnation from United States and China, say’s that it was tragic and disappointing. Moreover the Philippine government is optimistic that the hostage crisis would have little effect in country’s tourism industry and that foreign investors would understand that the incident is not reflective in the actual situation in the entire country. Though the Philippine government give relevant investigation and the Hong Kong government accepted it, the industry of tourism is still in challenge to recover and improve better travel in the country especially for the security of inbound foreign tourists, regain travel trust in the country.
OUTBOUND
In previous years, three major problems had hindered outbound tourism from India and Pakistan to the Philippines: difficulties in securing visas, the high cost of international flights, and a lack of awareness among the travel trade and the general public.