Write 7 pages with APA style on Marketing of Services: Travel Agency. With the rapid technological advancement taking place in the world, travel agencies are facing a multitude of challenges as they s

Write 7 pages with APA style on Marketing of Services: Travel Agency. With the rapid technological advancement taking place in the world, travel agencies are facing a multitude of challenges as they struggle to remain relevant and competitive in an industry that is booming fast with technology to phase the traditional booking system (BBC News, 2014). Currently, a number of tours and travel companies have online portals through which customers can directly make their reservations without contacting ground agencies and other business brokers (Bhattacharjee, 2006). However, the marketing of services is a challenging endeavor because of their invisible nature and this necessitates the need for firms to formulate elaborate and comprehensive marketing strategies (McIvor, 2010).

Services are usually characterized by a high degree of perishability, in that, they cannot be stored for future use. Thus, a service should be used in its entirety to avoid wastage. For instance, in the travel business sector, seats that are not booked in an aircraft, tour bus, or van cannot be stored or reserved for future use but can only go to waste. thus resulting in losses to the operators due to under capacity. Thomas Cook, a primer travel agency in the UK, for instance, indicates that its summer bookings have dropped by about 10% in the company’s core business area of making family bookings to destinations such as the Balearics and Canaries (Moulds, 2012). For this reason, some of their planes and tour buses travel to the designated destinations carrying way below their capacities.

The perishability factor dictates that a plane or tour van cannot be delayed to ensure it is fully booked since the service will lose its utility since clients value convenience and reliability, thus will always wish not to be delayed. Most of the UK travel agencies operate on scheduled timelines, and this has resulted in many firms incurring losses, especially during the low summer seasons (Moulds, 2012). Thus, it is challenging to institute measures to safeguard the travel agencies from incurring losses due to under capacity as it is a common scenario in the industry. For instance, the air transport authority in their 2013 report indicated that about $ 220 million is lost yearly due to under capacity (Verma, 2012).

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