Case study: New Frontiers

Résumé du document

G
rowth of the budget of households for leisure and travels, increase in the free time of employees, retirement of the “Baby-Boomers” who want to travel more, general decrease in the air transportation prices… The European tourism market takes advantages from a structural positive situation. Nevertheless, the world tourism industry is not standing still. It is performing in an environment which has experienced strong changes these last years. Especially since 2001, the tourism market has gone through a difficult phase due to the slowing down of the world economy and international pressures (Roussel 2003: 1).
More generally, since fifty years, mass tourism has developed in a large scale and has had consequences on tour-operators which must adapt to an increasing demand. Competition in this market is strong and most of the companies had suffered consequences of the “war of prices”, more or less deeply.
In this way, creating in 1967, Nouvelles Frontières (literally traduced “new borders”, in French) has been launched into this market since its beginning phase. This company is a generalist tour-operator which performs on the wide tourism market in France ( turnover of 250.1 billion of Euros in 2006, according to the French Tourism Directorate (2007: 4)). Since 1967, Nouvelles Frontières has known a strong growth to become the leader of the French market in front of Club Méditerranée, its first competitor.

Extraits

[...] Not to have a small size, because the size has influence on pricing conditions. To have an excellent and famous branding image: customers should identify with the brand and its values. To have an excellent notoriety as a well known and appreciated brand. We can evaluate if Nouvelles Frontières meets these key success factors in analysing the P's” of the company Product Nouvelles Frontières proposes a very wide range of products and destinations: tour, stay, cruise, la carte” trip, short travel, specialised formula such as trekking, hiking, expedition, golf, linguistic trip, diving, adventure, spa Nouvelles Frontières is in contact with a large part of the market clientele. [...]

[...] They sell low cost trips on the internet. These companies can offer low prices because they can react faster on market changes. They can sell their products very rapidly by using the internet. This concept of “ready to consume trips” is based on discount costs but it excludes the customer's wish of his/her destination. We can draw the competitive structure of the market of “Tour Operating”. As du Plessis et al. (2005: 49) say it is important to “establish how attractive a market (or a segment) sais to current and potential competition”. [...]

[...] Available from: http:// [24th January 2008]. Roussel, G tourism market”. [online]. Available from: http:// [24th January 2008]. Tourism Directorate Marketing Plan 2005-2010.France : Minister of Tourism. Tourism Directorate facts on tourism”[pdf document]. Available from: http://www.tourisme.gouv.fr/fr/z2/stat/chiffres/att00009212/ChiffresCles2 005_anglais.pdf. [24th January 2008] Tourism Directorate “Global Tourism”[pdf document]. Available from: http://www.tourisme.gouv.fr/fr/z2/stat/chiffres/att00002082/tourisme_mond ial07.pdf. [24th January 2008]. [...]

[...] These companies make arrangements to offer Nouvelles Frontières unsold seats, for very competitive prices, which have impacts on the final price of the product that the customer pays. The analysis of the Nouvelles Frontières offering shows its capability to adapt to the market. In all cases, the tour-operator distributes its products with a lower price than its competitors without a lower quality. This pricing strategy of Nouvelles Frontières constitutes a sustainable advantage in the market and allows the tour-operator to maintain its leadership and its competitiveness. [...]

[...] The economic situation: downward of the French economy. The social environment: the reduction in the working time in France allows an increase in the short time trips. “Cocooning” trend. The technological environment: challenges in relation to the growth of internet have been developed in a large extent since several years. Most of the travelling agencies sell products online with discount prices. The environmental trend: Most of the tourism companies are in charge of the protection of the environment, the wealth redistribution and the respect of other communities: “responsible tourism” The customers According to the studies sponsored by Nouvelles Frontières, most of the customers live in towns of the customers live in the area of Paris). [...]