Industry Analysis

The company OPODO is an online travel agency. In order to be more efficient a company must know its environment whether this is in the online or offline world. It is a step very important to do because it permits the company where are its strengths and opportunities on the market and try to overcome the difficulties and be the best.

In this way, we will analyse the external environment of the company OPODO, to do so we will use an external analysis and the Michael Porter 5 forces analysis.

Trends:

The number of travellers increases whereas the number of travel agencies decreases as many people are choosing direct online booking instead of the brick and mortars shops. This new way of buying travel is easier and more convenient for the consumers because they can have all the travel planning options and discounts that they can receive with conventional agencies without leaving their homes. Therefore, more than 75% of all travellers now use the Internet for at least some portion of their travel planning. Though the trend is heading upward, a substantial portion of figurative window-shoppers are not completing their bookings. As a result, many online travel agencies are still leaving money on the table

On the other hand, the emergence of the internet as a widely available information and booking tool shaped the travel industry. Indeed most corporate travel agencies provide their clients with their own branded online booking tool and more and more travel agencies exist only online.

In this way, travel is currently the largest e-commerce category on the Internet representing around one third of total online transactions.

Nowadays to touch and attract more people, online travel agencies, eager to expand their on international markets where travellers are not yet accustomed to booking trips online.

External analysis

Consumers

Opportunities: The reliance that consumers have on travel Web sites has not weakened