Dansk Fri Ferie - Managerial Economics

Assignment 1                         

A1

The definition of the industry which in this case is defined as a travel agency with related services. There are various PEST factors which has driven the development in the travel market and the market for driving your own car. These factors include Political, Economic, Social and Technological over a period of approximately ten years.

• Political: A political factor that would have an effect on the danish travel market, is if travel between borders gets more restricted, as a result of an increasing threat of terror. Another one could be if the government introduced environmental taxes on buses, planes, cars and etc.

• Economic: Over the past years the development in traveling has been increasing due to generally favourable economic conditions with an exception of the global financial recession from 2007-2010. According to the case, skiing holidays will most often be a second priority compared to summer holidays abroad. A future recession could have a negative effect on Dansk Fri Ferie A/S, since Danes prefer summer holidays.
• Social: A shift in danes general preference of holidays, would give Dansk Fri Ferie A/S a tremendous boost. Meaning, that even though Denmark would experience a financial recession, most people would still go Skiing.
• Technological: The internet has been a major contributor to the success of Dansk Fri Ferie A/S. It has resulted in private people having the ability to visit Dansk Fri Ferie from their own home, book a holiday, pay for it and be on their way without even being in personal contact with the travel agency. Furthermore the internet has made it possible for the airlines and places of accommodation, to reach out directly to the Danish holidaymakers - meaning that the travel agency could be redundant at some point.
  

It can be concluded that various factors have had both a positive and a negative impact on Dansk Fri Ferie A/S - such as generally favourable economic conditions up until the global financial recession from 2007-2010, a general conception of “the skiing holiday” and the continued large scale use of the internet.

A2