1. Competitive Advantage Advantage means ‘a condition giving a greater chance of success’ (Cambridge Advanced Learners Dictionary 2005)

2. Gaining competitive advantage in travel and tourism All travel and tourism organisations try to be as efficient as possible when running their affairs and attempt to gain an advantage over the competition whenever possible How an organisation sets about gaining an advantage has a lot to do with what it is ultimately trying to achieve – in other words its aims and objectives Aims and objectives vary greatly, depending on whether the organisation is in the private, public or voluntary sector

3. These are commercial operations that are in business to make money and have ‘profit maximisation’ as their primary aim All of their activities, whether it is to do with product development, marketing, employing staff or investing in new equipment, are focused on the ‘bottom line’, i.e. the profits generated by the business Revenue from the sale of their services will hopefully be greater than the costs of operating the business, so as to leave a surplus. This can either be taken as profit or re- invested in the business in order to build a solid foundation for future success for owners, directors, employees and any shareholders who may have bought a stake in the business Gaining competitive advantage in travel and tourism – private sector organisations

4. Public sector travel and tourism organisations play an important role in helping to market destinations and provide a range of services to encourage tourism development Unlike the private sector, public sector bodies are not primarily concerned with making a profit, but have wider social and economic aims and objectives, e.g. creating jobs through tourism and improving tourist facilities for visitors and local people Gaining competitive advantage in travel and tourism – public sector organisations

5. The voluntary sector in travel and tourism includes charities, trusts and non-governmental organisations (NGOs) involved in: Conservation/environment Community activities Sustainable tourism Heritage Minority groups Youth organisations Cultural/entertainment organisations Voluntary sector travel and tourism

6. Adding value Introducing Total Quality Management (TQM) Training and development of staff Advertising, sales and pricing Location Techniques used to gain a competitive advantage

7. ‘Adding value’ to a product or service is all about increasing revenue from its sale For example, a travel agent adds value to the business when he or she persuades a client to buy a business class seat on a flight rather than travelling in economy In the same way, an online tour operator may offer a half-price round of golf at a hotel when a weekend break is booked Both examples increase the revenue to the company and can be said to be adding value to the business Adding value in travel and tourism

8. TQM is a way of thinking about goals, organisation, processes and people in organisations to ensure that the right things are done right, first time and every time, so as to improve overall business performance. TQM has three stages: 1.Setting quality targets – to ensure high customer service standards 2.Quality development – establishing procedures to achieve the standards 3.Quality assurance – monitoring standards to ensure that high quality is achieved It is aimed at changing attitudes and behaviour in workplaces, hence making staff perform better and increasing the profitability of the organisation Total Quality Management (TQM)

9. Quality Management at Virgin Atlantic and NT Look at the 3 stages of Total Quality Management. Setting Quality Targets Quality Development Quality Assurance Write down what you think Virgin and NT could do at each stage to achieve TQM and then have a look on their website to see of you can find any evidence plus any Quality Awards.

10. Training and development of staff It goes without saying that good staff are an essential part of the process of gaining competitive advantage in travel and tourism Organisations that invest time and money training their staff reap the rewards of increased efficiency and, ultimately, greater profitability for the organisation

11. Travel and tourism organisations can gain competitive advantage by using a variety of advertising, sales and pricing techniques to stimulate extra business The key to effective advertising and sales techniques is targeting the customers that you want to persuade as precisely as possible This involves a great deal of market research to discover the characteristics of customers and their needs Pricing policies must be developed so as to maximise income, but not at the expense of the business losing revenue in the long term Advertising, sales techniques and pricing

12. Virgin – Differentiating themselves from the competition http://uk.youtube.com/watch?v=meWnr8rA5Uw Virgin Funny advert

13. Competitive Advantage Identify the main competitors of Virgin Atlantic. List them. List what you think Virgin can do to gain the competitive edge over its competitors in its advertising, pricing and sales techniques.

14. Strap lines It’s the real thing Just do it We try harder The Worlds favourite Airline Every little helps Finger licking good Don’t just book it Who are they Coca Cola Nike Avis British Airways Tesco KFC Thomas Cook

15. Strap Lines Strap lines can be very effective in creating a brand. http://www.adslogans.co.uk/hof/http://www.adslogans.co.uk/hof/ Make up a strap line for Virgin and NT. How can they create a competitive advantage?

16. An organisation’s location can give it a competitive edge when it comes to generating sales Travel agencies in high street locations benefit from a greater throughput of potential customers A country house hotel in a stunning location, perhaps in one of the UK National Parks, can use this to its advantage in its publicity materials Location