Category: Free Essays

INTRODUCTION:

The modern era of business is much complicated than the previous. Any organisation must seek to understand the nature of its competitive environment if it is to be successful in achieving its objectives and in establishing appropriate strategies. For this the organisation and those leading them need to improve their understanding of the nature of the organisational structure, the importance of technology and the role they play in the organisation for improving the performance. This report presents the overall analysis of the tourism industry, achieving, maintaining leadership and implications of the changing business environment with respect to TUI case study.

TUI is one among the largest European tourist operator in the world which is the leading international leisure travel which operates approximately in 180 countries worldwide and serves more than 30 million customers in over 24 source markets. Starting its business as Preussag which was operating in smelting and mining industry, profitability was decreasing in that sector so it gave an exit to that sector and entered tourism industry, a radical decision to change. It started acquiring other tourist operators included its acquisition of major European tourist operators by late 1990s. In 2001, all the brands and firms were put under the ‘World of TUI’. Till 2005 and after that TUI has taken the first position in tourism industry and has worldwide operations. TUI’s strategy was to have its label in almost all parts of the world. Their main objective is to have a strong brand portfolio in all parts of the world and constantly raising the performance of the international tourism industry.

BUSINESS ENVIRONMENTAL ANALYSIS AT TUI:

“Strategic management includes understanding the strategic position of an organisation, strategic choices for the future and managing strategy in action” (Johnson et al, 2008). Strategic position identifies the impact of external environment, strategic capability, expectation and influence of stakeholders on strategy. The business environment can be divided into (refer appendix 11.2): Through the DEEPLIST (Demographic, Economic, Ecologic, Political, Legal, Informational, Social and Technologic) analysis, from a macro level, examining factors within the remote environment and show how they influence tourism industry. Moreover, Porter’s Five Forces, including the bargaining power of suppliers and buyers, potential threats from domestic substitutes and overseas entrants, and the intensity of rivalry, will focus on the structural determinants of the intensity of competition that affect the tourism industry from a micro level (Stubbs, 2000).

Business change due to technology is the transformation of business activities which is not regular and not done all the time. According to Anderson et al (2001) change is catalysed by number of forces that trigger it and these forces start off in the organisation or the marketplace. Change in business is required if core processes, organisation structures, rules and procedures are not efficient enough to achieve the desired goal. Following are the change drivers which triggers change in tourism industry. The Key drivers to be considered here are Political, Technology and Socio-culture/Demographics (refer appendix 11.2).

PESTEL/DEEPLIST ANALYSIS
Demographics:

Social issues can create great problems to business and this can result in business change in the tourism industry. One aspect of social change consists of changes in people’s attitudes, values and beliefs when they visit different places. Other aspects of social change are in the field of culture, social structure and of the patterns of behaviour. Social problems can be anything affecting the nature, social institutions, and community of people or group of individuals. The business might be aiming at developmental change and benefit of the society but it can be taken in negative sense by some group of people who believe the business is eliminating the existing way of living. Thus this may affect the TUI’s operations and market share as customers are the main asset for company’s growth.

Political Issues:

In general form the case study, international tourist arrivals recorded across the world was more than 800 million which was due to the growing annual pace 10 years back in the tourism industry was quoted according to World Tourism Organisation (WTO) in which policy issues are accounted.

Terrorism: We can know that there was 5.5 per cent growth rate and 10 per cent growth in 2004 seemed to be like the tourism industry had taken a boom indicated the rise which was followed by insecurity created after the various terrorist attacks in Newyork (2001), Djerba (2002), Bali (2003) and Madrid (2004) during 2001-2003.

London bomb attacks in July 2005 really did not affect the arrivals in UK. In fact there was a 10 per cent increase on tourist arrivals in the Northern Europe and UK. Usually terrorist attacks at destinations have an adverse effect on tourism industry as people tend not to visit those places out of fear and insecurity.

Security: In 2005 TUI was considered to be the biggest tour operator in Europe. The wholesaler tour offers packaged or ‘all-inclusive’ prepaid and pre planned holidays to its customers which offered security and the value for the vacationer.

Taxation: if any common Value added tax is introduced for every booking made through internet/mobile. Poor people will be affected greatly compared to rich in the society. This may reduce internet transactions.

Social Issues:

Traumatic effect on international travel from 2000 to 2004 is due to global economic downturn and the health crisis, such as the outbreak of SARS in 2003.

We can also consider the Demography, social values which lead to social problems, cultural features wherein people’s attitude for the tour can change accordingly.

Economic Issues:

Financial: The WTO forecasted that the 1 billion arrivals spot would be passed in 2010 and by 2020 there would be 1.6 billion international tourist arrivals, which seems to be the expansion of tourism shaping the future of the world economy and activity.

Exchange Rate: Typically, an income per capita of source countries and the relative price of exported tourist services as the main determinants of demand. Demand has generally been found to be highly income elastic, consistent with international tourism being a luxury good and highly responsive to changes in the relative price of tourist services when measured as the real exchange rate relative to the destination country.

Competition: All the package tours offered through travel agents such as Thomas Cook, My Travel Group, Rewe Touristik and First Choice Holidays are the main competitors for TUI even though in 2005 it took a major market share in European tourism market.

Lodging, food, beverage, leisure, tourist demand spending, channels of distribution leads to weakness and strengths of economic sectors. Tourism is the major trend in economy (Manuel et al, 1999).

Ecological /Environmental Issues:

Carbon is the main affluent which is taken into account when tourism industry is concerned about package tours offered to customers which is composed of air transportation. Even oxides of nitrogen due to the combustion of fuel, packing plastic bags for food preservation by travel industry are hazardous to environment.

Climate change is one of the biggest challenges as a tourism sector. According to the UN World Tourism Organization, travel and tourism contributes around 5% of total global carbon emissions. Along with many other industries, the leisure travel sector is feeling the effects of climate change, and in the future we can see changes in the quality of tourist seasons, an increase in the intensity of tropical storms and rainfall, and more severe droughts (www.tuitravelplc.com, 2009).

Tourism is known as a ‘thirsty industry’, due to the amount of water required for tourism activities such as golf courses, swimming pools and washing of linen. Water scarcity is likely to be an issue for the business in the medium to long-term (www.tuitravelplc.com, 2009). Climatic conditions may influence the decisions of customers effectively in tourism industry (Example change in season or heavy rain pour).

However, tourism sector also has a significant positive impact on the people who live and work in the destinations. Tourism is one of the world’s largest industries, contributing around 11% to global GDP. It is particularly important for developing economies, and is a top five export in 80% of developing countries.

2.1.6 Technological Issues:

In March 2005 TUI launched the virtual tour operator Touropa.com, in Germany, selling travel tours not only online, but also through travel agencies, television and call centres which bolstered TUI’s place as the European head in the direct sale of travel products with a turnover of a‚¬2.6 billion in 2005.

Online transactions and booking include broadband service and internet technology in tourism industry.

2.1.7 Legal Issues:

Issue of online trademark protection, spawning, mouse-trapping spoofing, cyber-squatting, domain name fraud, as well as spyware. Internet Marketing in Hotel industry and Tourism lets us to know that loss of control of a company’s trademark can occur (for example when a third party bids on a trademarked term on search engines), not only may lead to loss in revenues, but also brand confusion by the consumer.

For Example: My Travel Group was under reorganization after several bad years, including 2005 when revenue decreased by 19 per cent, under claims of accounting and mis management.

TUI is active in the shipping business which includes logistics and containers, during shipping legal factors are to be considered with many country’s legal scenarios which have to be met with high terms. Import and export duty are also considered.

International trading is the other part of TUI wherein most of the activities were taken into account other than shipping where in legal terms will have a greater impact on the tourism industry.

PORTER’S FIVE FORCES ANALYSIS:

PORTER’S five forces diagram explains how forces like buyer power and threat of new entry creates competitive rivalry and ultimately leads to business change for the current tourism industry based on the development in the market and detail analysis is carried out in the appendix 11.3 (Porter, 1985).

INTERNAL ANALYSIS OF RESOURCES AND CAPABILITIES AT TUI:

Internal analysis is done to explore the contribution of resources in achieving profits and to analyse how the internal resources of an organization helps in achieving sustainable competitive advantage. The importance of internal resources in adding value to TUI can be analysed using two approaches- the value chains the value system (refer appendix 11.4).

3.2 VALUE CHAIN ANALYSIS
3.2.1 Primary Activities
Inbound Logistics

Preussag, former TUI took more interest on acquisitions of many tour operators (Hapag-Llyod AG, TUI Deutschland, Thomas Cook etc) during early stages. This many acquisitions lead to the formation of TUI tour operator, which has become the first player in tourism industry in European market (refer appendix 11.4).

Operations

Quality and consistency are important attributes in travel and tourism industry for TUI. Thus retaining the brand, TUI transformed its operations by improving product quality and consistency for which people were ready to take the packages. It also enjoyed significant economies of scale.

Outbound Logistics

Setting up different travel agencies across many countries with major presence in Germany, UK and Netherlands and Belgium. By 2005 there were 3500 travel agencies in 17 countries. Acquiring these helped TUI in expanding its boundaries and reaching the world. This helped in building an image over time in international context.

Service

Tourism industries have to ensure that it provides good quality service to consumers because using poor quality raw materials may have major affect on the operator market share. Providing good quality service is a case of social responsibility.

3.2.2 Support Activities
Procurement

Acquiring raw materials locally and importing consisted of inputs in TUI’s value chain. It also procured its inputs used in value chain from the resources it attained from acquisitions (refer appendix 11.4).

Technology Development

Technology includes the product and process development. It used its virtual tour operator Touraopa.com, where in travel tours are sold online and also through travel agents and call centres from Germany in tourism industry to dominate the market share of the world (Johnson et al, 2008).

Human Resource Management

TUI had 58,191 employees by the end of September 2005 across the group and has more than 180 destinations. It gives opportunity to develop, rewards and recognition, work experience and leadership ability within the group and of which some worked in logistics division, trading and sales operations as well. (www.tuitravelplc.com, 2009)

TUI’s Infrastructure

Preussag created TUI management structure was centralised in order to manage the airlines grouping the year 2002(www.tuitravelplc.com, 2009). Resources for managing operations in different countries have lead TUI to have a better infrastructure.

3.3 HUMAN RESOURCES:

TUI deployed its workforce from the expert operational management skills from different operators which were acquired from the firm during mergers and acquisition. Also since its management structure was centralised during 2002; it has human resources from the international context who will be framing its strategy according to the requirements and it is said to have implement resource based view.

PORTER’S GENERIC STRATEGIES:

The firm’s profitability is the primary determinant of the industry and its position within the industry is an important secondary determinant. Above average profitability is the fundamental basis for attaining sustainable competitive advantage. The basic types of competitive advantage are low cost or differentiation. Along with types of advantage and scope of activities for which firm needs to attain them lead to three generic strategies to pull off above average performance in an industry like tourism.

COST LEADERSHIP STRATEGY:

TUI’s ability to offer lower price to powerful buyers. This usually targets a broad market. Firm sells its products either at average industry price to achieve profits further than rivals or below the average industry prices to put on market share (refer appendix 11.6). Low cost firm like TUI finds and exploits all sources of cost advantage like efficient distribution channels involved in the process. TUI has attained overall cost leadership, as it can command prices or near industry average. Hence it is considered to be above average performer in its tourism industry (refer appendix 11.5).

DIFFERENTIATION STRATEGY:

The value added by the exceptionality of the product may allow the firm to change the best price for it. Large buyers have less power to negotiate because of few close alternatives. Customers of TUI get attached to differentiating attributes, reducing threat of substitutes. Corporate reputation is for innovation and quality of service in the case of TUI (refer appendix 11.6).

FOCUS STRATEGY:

It basically aims at narrow competitive range within an industry. The focuser services only a segment or group. Two variants are considered in this: cost focus a firm seeks a cost advantage in its target segment, where as in differentiation focus a firm seeks differentiation in its target partition (refer appendix 11.5). The target segments must either have buyers with strange needs or else the production and delivery system that best serves the target segment must differ from that of other industry segments (refer appendix 11.6).

STRATEGIES TO ACHIEVE COMPETITIVE ADVANTAGE AT TUI

TUI is considered to be more bureaucratic, which is more rigid and it stabilises the decision making progression (Barron et al, 1994). An intrusive firm have more in force and inhibits the choice of more active strategies (Peters, 1992).

Service revolution can happen when industry focuses on people, Optimize technology/processes and empower employees, making service transparent, by delivering invisible excellence, focus on elegant simplicity, adapt and evolve, requirement to achieve best of all which may include society, environment and economy(Silvester et al, 2008).

Well defined centralised process development and structured innovations, framework, with number of fixed points which include high cost innovations whereas most of the functional departments are decentralised and customer feedback helps TUI to obtain competitive advantage(www.tuitravelplc.com, 2009).

Flexible process like running different service for their customer which is usually much diversified in its development of operational units. Whereas in distributed functional departments of TUI primarily were unstructured, emergent process focuses on continuous improvements. This budget may be often taken into operating expenses (Heracleous et al , 2005).

SWOT ANALYSIS:

TUI key issues in the business environment and its strategic capability can be analysed using a SWOT analysis. This will help in identifying the extent to which the current strength and weaknesses of TUI are relevant to and capable of dealing with the changes taking place in a business environment. The table in appendix 11.6 depicts a SWOT analysis of TUI.

GROWTH SHARE OF TUI – A BCG MATRIX ANALYSIS

The BCG matrix analysis will be helpful in determining the relationship between the relative share of the product portfolio TUI and its market growth. The key constitute of TUI’s product portfolio includes its tourism business and also its interests in hotels and shipping industry. Later TUI also expanded its portfolio by adding transportation between airport and hotel, provided local excursions, offered assistance for car rentals etc (www.tuitravelplc.com, 2009). In the tourism sector TUI has to choose whether to concentrate more on its mainstream or the international best segment. However the 2007 annual report of TUI showed that the worldwide trend towards the tourism industry is increasing. The appendix 11.7 depicts a BCG Matrix analysis wherein TUI is marked as Stars (High market share, High market growth).

LIMITATIONS OF TOOLS USED FOR ANALYSIS:

Limitations of PESTEL Analysis

Some corporate strategists comment that since future is uncertain, there is no point in prediction. Therefore while applying PESTEL, factors like economical conditions, lifestyle of the people, etc. should be assumed as static. Also for analysing the strategic position of TUI, a company large by its size and operations and spread in different parts of the world, PESTEL alone cannot help because it only analyses the external environment where as analysing strategic position requires both external and internal environment analysis. Thus, it can be used only in support of other tools.

Limitations of Porters Five Force Analysis

Five Force Analysis demands that all other factors should be static whereas the competitive environment in practice is constantly changing. Also customers and the external environment are given same importance than any other aspect of environment in the analysis whereas customers should be the prime aspect of strategy development for companies like TUI who are selling their products to end customers (shipping, tourism and hotels). Also, a broad analysis of all the five forces makes it very difficult in compound industries with multiple interrelations, product groups, by-products and segments.

Limitations of Market Segment Analysis

Customer needs may vary than predicted about the particular market especially when the target market is large. Another major disadvantage of Market segment analysis is that changes in market conditions will lead to potential threats.

Limitations of Value Chain Analysis

The key actors in the value chain are sometimes affected by certain rules that are set by others like the government. So value chain analysis is influenced by information on these rules. It is difficult for companies like TUI whose business is diversified in different parts of the world for giving specific and meaningful information like fares, quotations, offers, quality standards and environmental standards imposed by tourism places.

Sustainable Supply chain management (SSCM): the main challenge is to apply SSCM. Quality is the most important part of supplier selection by tour operations. Communication between relationship of quality and sustainability to increase market share awareness is the factor evaluating SSCM (Font et al, 2006).

Limitations of Generic strategies:

Risks in generic strategies, inclusion of low-cost strategy. For example if other firms (like My Travel) may also lower the costs due to advancement in technology. Thus, as a result narrow focus groups should be targeted to gain significant market share.

Risks dealt with differentiation strategy are imitation of competitors and change in customer’s tastes. Specialized products and core competency protect against substitutes.

Limitations of SWOT Analysis

The output of SWOT analysis may contain a big list in which some may be more important and some may be less important. Also it is not suitable for more dynamic and insightful analysis.

Limitations of BCG Matrix Analysis

In BCG Matrix analysis it is very difficult to measure market growth rates and relative market shares. Also economical and political factors vary from country to country and BCG Matrix analysis doesn’t take this into consideration.

CONCLUSION

The analysis reveals that TUI is in a very strong position in the tourism industry. TUI’s current strategic position reveals that it has achieved long term growth from developing markets, acquisitions and resources from developed markets. Its expertise gained from many mergers and acquisition from different tourism groups and gradual development of technology in Europe. Years of experience are its greatest resource of sustainable competitive advantage by which it is able to tackle the fearlessness in a turbulent economy. However it also faces some issues like attitude of customer’s behaviour may change due to economic crisis or personal wish which impacts on its operational productivity as every industry faces in the competitive world. In short, TUI has made its strategic choices very efficiently leading to its success. The options are laid and needs to be decided upon which can help TUI in achieving a niche position in the tourism industry (refer appendix 11.1).

Budget airlines have become a trend in aviation industry over a few decades all over the world, however, as a Asian cosmopolitan city- Hong Kong hasn’t have one yet, therefore a research need to be set up to explore on its feasibility. This project proposal aims to assist to accomplish a research by developing a plan beforehand. Firstly, the background of budget airlines and problem statement would be stated out, then a literature review would be carried out in order to find out its research value, after that, the research

aim and objectives could be set up as a research goal, last but not least, research method and project plan could be discussed on how, where and when to carry out this research.

2. Background/ problem statement:

Before Deregulation:

In the United State before 1978, all airline passenger services were regulated and controlled by the Civil Aeronautics Board (CAB). Only 10 trunk airlines were authorized to issue a “grandfather” certificate by CAB at that time. Underneath this certificate, all major scheduled airlines’ route structures and fares were controlled and ruled. For an airline’s route structure, stops and intermediate stops were specified and passengers carrying between stops were limited, a new promoted route needed to go through a lengthy procedure and hearings, even a stoppage of a route service was still needed the CAB’s approval. For an airline’s fare, all fare prices were strictly controlled by the CAB. (John & Clinton, 1984)

After Deregulation:

After passing the Airline Deregulation Act of 1978, CAB no longer had an absolute authority on an airline’s entry, exit, routes and fares. Airlines were given freedom on setting up their own fares within a wide range, route applicant would be submitted and passed easily without any restriction when it performed air transportation properly. (John & Clinton, 1984)

First Successful

budget airline:

In 1967, the first successful budget airline was born and started its business in Texas in America, it named itself as Southwest Airlines (SWA). The company began when the US market was deregulated. Its successful model had been influencing a lot of other following budget airlines. It provides low-cost, high rate of short haul flying and this made itself maintain a most profitable airline through years. (Peter, David, Gillen, Otto and Hans, 2005)

What is Budget Airline?

“A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that generally has lower fares and fewer comforts. To make up for revenue lost in decreased ticket prices, the airline may charge for extras like food, priority boarding, seat allocating, and baggage etc.”

Today’s budget airline:

Nowadays, the value for money is a great emphasis placed by travelers. They are willing to buy cheaper tickets to trade off some other aspect such as leg room during flight. However, to determine whether a budget airline can survive and drive down the cost, it mainly depends on government and major airport’s will to open up the skies. Therefore, different areas are in different cases, but every consumer loves a low price ticket and somehow the developments are very similar in nature and continue in varied ways.

As in US, budget airlines have dominated the market as travelers are price driven; in Europe, more local airports are needed to be opened up to let more budget airlines to fly in; in Asia, there are more opportunities to expand the whole market but the path is not easy, since the market is still dominated by the national flag carriers. Besides, they are also supported by the cargo business. (Scott Lee, 2004)

Problems Statement:

As we can see, budget airlines’ business not only become a trend over the globe, but also bring out more travelers and so to extend the economy of our own country or region, however, there is no budget airline at all currently in Hong Kong, what are the reasons? Few years ago there was once a low cost carrier- Hong Kong Oasis airway which offered “long haul low fare” was bankrupted after 18 months of operation, why would that happen? An Malaysian budget airline- Air Asia already developed its third home base in Thailand, meanwhile, there still aren’t any budget airlines setting up in Hong Kong as a home base, why? What are the success factors for a budget airline to develop? Is there feasibility for a budget airline to set up and form a home base in Hong Kong?

3. Literature Review:

3.1.Business strategy of Budget Airline:

Markus (2005) once said “The business strategy of these low cost airlines to save costs is to offer

no frills, have fast turn-rounds, use only a single-type fleet of planes, and to fly mainly to cheap secondary airportsaˆ¦aˆ¦aˆ¦..They also save a huge amount of administration costs by only accepting credit card payments and thus reducing the paperwork to a minimum” (Markus, p.269, 2005)

In other word, they minimize their cost in management, aircraft maintenance, crew training, landing fee, parking fee, administration work, etc. Any additional cost, they will stay in the air ticket and let the passenger pay for it. This would rise out a question, would the passengers in Hong Kong be willing to pay for a low cost just to get to a destination or a high price to buy a good quality of service?

Budget airline is a trend?

Start from the next two years as announcing in late May, the Singapore airline would establish a subsidiary-a no frill, low cost airline, using wide body aircrafts to serve medium to long haul routes. According to the company after years of markets of extensive review and analysis, they have to admit that there is a large growing demand for low fare travel. The low fare airlines assist to stimulate the growing demand of travel. The company wants to launch this service to push its single-digit growth to a double-digit growth as this low fare market is growing hugely. (Govindasamy, 2011)

This has showed us which the low fare air travel market

is growing and even an Asian state-owned conventional airline want to join in to gain share, therefore there is lots of room for more new budget airlines to be set up and serve the demand.

Budget airline comparing with conventional airline over the globe:

Graham Dunn (2011) state in the airline magazine, “Data from four years of the Airline Business low-cost carrier and world airline ranking surveys shows that while the 10 largest network carriers were highly profitable in 2006 and 2007, seven lost money in 2008 and eight were in the red in 2009 at an operating level. Contrast this with the top 10 lost-cost carriers- only two lost money in 2009, three in 2008 and one apieve in 2007 and 2006.” In this case as we know, during the economic crisis between 2008 and 2009, we can see that the low cost carrier is on a steady growth and earn money, but the conventional airlines are greatly affected.

In fact, the magazine also shows that the budget airlines are growing at a double-digit development around the USA and Europe, and there are still more room for them to rise. In South East Asia, the larger low-cost carriers already expand beneath their home market and set up more home base in other country around the region as there has been a great demand for cheap air travel, such as Airasia has also set up a home base in Indonesia and Thailand beyond Malaysia. (Graham Dunn

,2011)

Therefore, even Hong Kong set up a budget airline, there are still lots of other competitors around the region, and can it survive?

The Background and Success of Air Asia and the Asia region:

Apparently in the 21st century, if the more preferable demography and economic trend persist, Asia would be well focused by the whole world, in other words, more people would be willing to travel in and out of Asia by plane for business and leisure. (Joseph, 2011)

Air Asia now is one of the largest low cost carriers in South East Asia. It used to be built up by the Malaysia government from 1993 and started its own operation as a flag conventional airline in 1996, however, within those five years, it was a “cracked airline” which only have two Boeing 747, 250 staffs, four destination and a debt of $11 million. But in 2001, it was bought by Tune air and turned it and re-launched as a low cost carrier, then it start to become a profitable business. In 2007, Air Asia X was set and launched as a low cost long haul carrier which flies to Europe and Australia. Currently, the whole Air Asia Group has owned 102 aircrafts, flies 150 routes and 68 destinations, it has been still continuing to expand its fleet and market share. In the past two year, it has already accomplished a Double-digit capacity growth. Certainly, there are some advantages that it already fully take, such as

low-price labor, a helpful economical hub at Kuala Lumpur. (Joseph, 2011)

In this case, are there any success factors we can learn from and use in Hong Kong?

The Background and failure of Oasis Hong Kong airway:

Oasis Hong Kong airline claimed to be the first long haul low cost airline based in Hong Kong, Reverend Raymond Lee led a starting capital of $100 million with several Hong Kong investors. It began its operation and launch to serve passengers from October 2006, but after 18 months of operation, it halted all operation and collapsed as financial liquidation. It used to own 4 Boeing 747 and flew two routes, and three destinations: Hong Kong, Vancouver and London. During the operation period of time, the price of jet fuel has jumped from $600 a tonne when Oasis started flying to a current level of around $1,137 a tonne. Besides, the company did not run as an short haul, no service model but provide a full service such as inflight meal and entertainment. (Robin, 2008)

In this case, a rise of jet fuel price can push a company to fall, are there any other critical threats which exist? Or the whole Hong Kong aviation environment is not suitable for an budget airline to exist?

Disadvantages and advantages of budget airlines:

For traveling with budget airline, there are also some disadvantages that you may want to take account for, such as you

may only have a limited meal with probably peanuts at all for the whole flight, you may not choose your own seat, they have less flexibility which you can’t cancel your flight or get a refund, any extra checked bags will be charged, they often land on remote airports with no bus connection and they are usually booked through internet. (Shewanda, 2011)

However, there are also some advantages you may want to consider, such as the fare with budget airline is relatively small which you can save the money for other things, they often fly to more locations and smaller cities that you may interest, and as money are saved, thus more travels will be encouraged and more people can afford it.

(Jennifer, 2011)

Therefore, when the Hong Kong customers compare the advantages and disadvantages of budget airlines, will they still choose budget airline? What is the low fare travel market like in Hong Kong?

Challenges and Background of the local dominant airline in Hong Kong:

The company began in 1946. It was found by two world-war 2 pilots. They first flew to carry passenger to Manila, Bangkok, Singapore and Shanghai. However in 1948, some of the shares was bought by a UK company, Butterfield & Swire (today known as the Swire Group) which took a 45% share. Therefore John Kidston Swire took the leadership work; Butterfield & Swire became wholly responsible for the management

of the airline. And then it has been expanding through time. In 1998, the Cathay City was built, and in 2006, the dragon air was bought to be involved in Cathay Pacific Group. Right now it owns 128 aircrafts and has ordered more than 100 aircrafts. Its route has covered more than 150 destinations in 41 countries. It ranks as the world’s 2nd most profitable airline by net profit and the 7th largest airline in the world by operating profit. Its staffs’ number is 19,850 worldwide. (From Cathay Pacific’s Website)

In this case, its customers do not only include leisure and business travelers but also the regional people. If a budget airline was being set up, this airline would be the biggest local competitor.

Potential low cost carrier that will be set in Hong Kong:

There will be two potential budget airlines setting up in Hong Kong- the Hong Kong express and the Jetstar subsidiary. The Hong Kong Express will transform to a low cost carrier in Jul-2012 or Aug-2012, operating under its new low-cost model to cities in mainland China, South Korea, Japan and Southeast Asia. As a Foreign budget airline- Jetstar is also looking forward to establishing a subsidiary in Hong Kong, it may try to co-operate with Hong Kong Airline. (CAPA, 2011)

This case has showed us that many companies are interested in developing a low cost carrier in Hong Kong, therefore in other words, there is

feasibility for Hong Kong to set up an low cost carrier.

4. Aim:

Through analyzing all the data collected to determine whether it is possible to set up an budget airline in Hong Kong or not.

5. Objectives:

To explore the background information and business model of budget airline

To explore the operation, cost structure, strategy of low cost carrier in Asia

To carry out a case study: the success story of Airasia and the failure story of Oasis

To set up a survey to ask about Hong Kong frequent flyer’s expectations on budget airline’s services

To calculate all operating cost and expense to run this business

To compare the price of flying with an existing conventional airline with a hypothetical budget airline to find out the feasibility

6. Research method:

For this research, I will use the inductive method approach, because my aim is explore the feasibility to set up an successful budget airline which could last for a long time in Hong Kong through observing variety of data such as budget airline business model, cost structure, government policy and so to analyze and find out the answers for it. And I will select the survey strategy for gaining Hong Kong people’s opinion of service they wish to add in without any additional cost for a budget airline service in order to calculate the operating cost of an hypothetical budget airline and so to set up the

best price of a fare to equalize the cost. Then I will pick the memo-method as my unique data collection method, and carry out the cross-sectional study as the data would give me the result. For data collection, I will use questionnaire and the interview.

6.1 Questionnaire

For the Questionnaire, I plan to interview 50 people, they are mostly business travelers and leisure travelers, I will approach them through my friends who are frequent flyers.

6.2 Interview:

For individual interview, I hope that I can make an appointment with some of the staffs who work as an airline accountant and inside the airport authority, and gain financial information of running an airline company.

7. Project Plan:

I would like to spend half a year to complete my project. Here is my work breakdown structure:

A brief history of Ryanair is set out to provide a background of submissions.

Ryanair is Europe’s largest low-fare airline and based in Ireland. This is a public listed company who are trade on Dublin, London and New York (NASDAQ) Stock Exchange stocks. It is committed to low cost airfares and introducing competition to the European flag airlines and air transport market growing alliance. It has the ability to provide passengers with the industry’s lowest fare is dependent to a large extent, the low cost and high efficiency of the airport.(RYANAIR LIMITED 2007)

Ryanair, started operations in 1985, launched 15 flights a day between turbine support and London Gatwick Airport Waterford. The beginning of the company’s commitment to providing low-fare air travel to the Irish public contrast, oligopoly pricing is provided in time for Aer Lingus and British Airways. Ryanair was the first European airline set up a special low fares and competition within the European short-haul routes. In the companies of first year, its 57 employees carried just over 5,000 passengers in this original route.

In 1986, Ryanair routes into Dublin-London, which was jointly owned by the two countries, the airlines, which Aer Lingus and British Airways. In Dublin, London route has been stalled about 1 million passengers each year from 1975 to 1985, when some of the features the highest air fare per kilometer in Europe. Before Ryanair to join this route, the normal flight between Dublin and London in 1985 was ? 209 return. Ryanair began service on May 23, 1986, to introduce the launch of the fare ? 94.99 return. In its second full year of operation, Ryanair has just 120 employees to carried more than 82,000 passengers on two routes.

In the next three years (1987-1989), the rapid expansion of Ryanair routes opening up many new Irish and British, and to improve its fleet. However, while customers continue to flock to Ryanair’s low fares, the cost does not control, and the company’s accumulated losses. By 1990, the company employs 350 people, operating 14 aircraft (4 different types), was carrying 600 000 passengers, but had managed to loss of ?20 million in just 4 years. These losses are mainly due to over expansion and the inability to strictly control costs, the deregulation of the market, and these new cost control is essential to the ability to provide low-cost services of the profits.

1994 also saw the acquisition of Ryanair’s first Boeing 737 aircraft used orders for six second-hand 737-200 series aircraft (130 seats) was purchased directly from Boeing. In the next three years to buy fifteen 737-200 aircraft were to make the fleet to twenty-one 737-200’s. In line with the expansion of the fleet, more new routes form Ryanair is to open up the Irish by the British, increase frequencies, providing a total of all the routes, an the ticket prices were reduced even further. As a result in 1995, the airline’s 10th anniversary, Ryanair has become the largest airline in Dublin-London routes, and they operate in each line on which it operated (in terms of traffic routes), total 2.25 million passengers per year and labor Now more than 600 people.

After 1997, the EU air transport deregulation, the airlines was free for the first time open up new routes to continental Europe. Service was launched in Stockholm from London Stansted and Oslo efficient secondary airports, as well as in Paris and Brussels from Dublin and efficient secondary airports. Similarly, Ryanair to enter these markets fare over 80%, respectively, lower than the most expensive week, and then by the flag carrier airline fares. Positive response and a large number of passengers low fares in these arrived in the European market for the first time. Ryanair was the first low-fare airlines to provide scheduled flights from Britain to Continental Europe and vice versa. 1997 also saw the Ryanair Holdings plc float in Dublin and New York (NASDAQ) stock exchange. At that time, the airline is the capital of IR?300 million in the infrared market value and more than 3 million visitors each year to bring its network of 18 routes.

Despite this success, Ryanair remains committed to lowering fares, increase service frequency, and to maximize the low-fare seats to the number of business and leisure travelers. Ryanair was a direct competition with a lot of Europe’s largest airlines, including British Airways, Scandinavian Airlines, Alitalia, Lufthansa, Sabena, Air France, Aer Lingus, but offer low fares unparalleled of The package, on-time flights, high frequency, and friendly in-flight service, Ryanair is continuing to be successful, winning increasing public and customer support.

In 1999, Ryanair announced an up to 45 new Boeing 737-800 series aircraft for the two billion U.S. dollars next major investment plans. This is the latest and most modern Boeing aircraft. The first five aircraft to be delivered to Ryanair in 1999, and five more scheduled for delivery each year thereafter. Ryanair is the lowest in Europe and is to provide the latest and most modern air fares on Europe. Ryanair announced in 1999, another record performance, operating 35 routes to 11 countries, the carrying almost of the nearly 600 million passengers. Ryanair’s customers to enjoy high-fare competition is the flag carrier airlines from Europe collected 300 million pounds worth of savings. At that time the company employs were more than 1,200 people.

Ryanair launched in early 2000, Europe’s biggest travel website at www.ryanair.com, which launched within 3 months has taken over 50,000 bookings per week, by offering low airfares which start from as little as ? 1 return taxes on Glasgow London plus tax and ?9 return plus taxes on Dublin-London route.In February 2000, Ryanair announced 10 new European routes for the summer of 2000, the service from London (Stansted) to Malmo in Sweden; Hamburg (Lubeck) in Germany; Verona (Brescia), Sardinia (Alghero), and Lamezia in Italy; Provence (Nimes), and Perpignan in France, and Shannon in Ireland. The airline has also introduced two new low fare services from Frankfurt (Hahn) Shannon in Ireland last summer, and to Glasgow (Prestwick) in Scotland.

So far in 2001, Ryanair has launched seven new routes in the UK and to increase the capacity on number of existing lines. In February of this year, Ryanair announced that its first mainland Charleroi in Brussels, the European base would initially be open from its seven destinations in the provision of services. Ryanair will build the airport in Ireland, the base has been the basis of the cost of more competitive and cost-oriented regulation of airport / facility. This year, Ryanair will offer 36 Boeing 737 aircraft fleet and will be about 9 million passengers. Unfortunately, only about 18% will come from the traffic in Ireland as in the regulation of the airport’s competitive cost and inefficient infrastructure.

It have be clear from the background that Ryanair’s rapid growth of routes and traffic will continue to focus on low-cost, high efficiency of the airport, in order to minimize costs and ensure that the airport’s rapid turnaround time and maximum efficiency of the aircraft. This is a major factor in Ryanair’s ability to guarantee the lowest fares in Europe.( RYANAIR LIMITED 2007)

2.Environmental and European airline industry analysis
2.1 External analysis – PESTLE

PESTLE analysis is a short form for political, economic, social, technological, environmental and legal (Channon, 1997). PESTLE analysis has provided a comprehensive detailed list, possibly affects successful or the defeat, especially strategy (Johnson and Scholes, 2007).

Political

Some countries grant preferential treatment to companies from their own country. From the case study also pointed out that ‘the French government attempted to protect Air France-KLM by forcing easyJet and Ryanair to move the staff they employ on French soil from British contracts to more expensive French ones’

Economic

Fuel prices, because they increase the problems caused a major airline industry, if they do not hedge they had to cut corners to save costs in other areas. All the airlines are working to reduce costs and increase their profit margin, they reduce the cost of the effort will have a negative affect on the pilots and staff because as they may have low wages of lack benefits that would otherwise have been there. There are problems, the market increasingly competitive, as in emerging and developing countries have more people hope that have more airlines, so in order to adapt to this, by reducing industry profits. With the current economic crisis may be the demand for flights in the fall, because we are in recession, layoffs and people therefore have less disposable income means that they cannot leave. This may be a favorable low-cost aviation industry for people who can still afford the holiday will be looking for cheaper alternatives.

Social-cultural

Passengers are now not only need the cheapest fares, they also need a comfortable chair, safety and never lose their luggage, and the best facilities and etc.

Technological

Technology has improved, which means that the industry is changing, becoming more environmentally friendly and efficient. More effective infrastructure of airports are means that many airports of the airlines can charge more fall from the sky.

Environmental

There are new laws that say that the airline industry has to be more environmentally friendly therefore the manufacturers, designers and airline companies have to combat this together in order to decrease carbon emissions and make the industry less harmful to the environment in order to comply with EU regulations.

Legal

The whole industry is very strict control laws, but also because they have to constantly adapt to new changes in law, i.e. not allowing the liquid on board. These contracts to the industry has their pilots did not seem to benefit the workers as it contributes to the company soon which may change soon and the company will have to adapt to this.

2.2 Internal analysis – five forces framework

Porter’s five forces is an important tool for analyzing the organizational structure of the process of strategic industries. It is used to understand the strategic business opportunities and threats should be consistent with the organization of the external environment (Dagmar Recklies, 2001).

Threat of entry

aˆ? Some barriers to entry:

aˆ? High capital investment

aˆ? limited availability of slots to make them more difficult to find the suitable airport.

aˆ? instant price wars if erode the existing LCC route.

aˆ? Need low-cost basis

aˆ? Flight Authorizations

In Europe, low-cost carriers were increase in 2006. Although expressed in the European airline industry is a large number of entrants and competitors, but as many as 50 have gone bankrupt, been taken over, missing or had never left the ground. Therefore, the threat of entry Ryanair face is media.

Threat of substitutes

aˆ? Customer are No brand loyalty

aˆ? No close customer relationships

aˆ? No switching costs to customers

aˆ? Other modes of transport, such as Eurostar, high-speed trains, Eurolines, ships, cars, etc.

Passengers will choose the train, because do not want to face the inconvenience and cost of checking baggage, spend more extra time in airport security line. The train is the only alternative of airline to the threat of an alternative airline of Ryanair is low.

Bargaining Power of Customers

aˆ? Customers are Price-sensitive

aˆ? Switch to another airline is relatively simple and does not involve high costs (internet, all airlines are online)

aˆ? Customer understand about the cost of providing services

aˆ? No loyalty

Although the customer’s complaints, they feel disturbed about Ryanair has been trying to sell them something of the aircraft. Although some passengers, they need comfortable seating, security will never lose their luggage, the best such facilities and Ryanair has been graded as the world’s most disliked airline in the survey of Ryanair, but they do not want to change and continue to focus on cutting costs, to provide low fares. Therefore, the buyer bargaining power is low.

Power of supplier

aˆ?Boeing is a major supplier of RA

aˆ? Only two potential suppliers of aircraft – Boeing and Airbus

aˆ? Switching costs from one supplier to another is high, because all the mechanics and pilots must be retrained.

aˆ? Aviation fuel prices is directly related to the cost of oil (Ryanair control these through the hedge).

aˆ? Regional airports have little bargaining power because they rely heavily on an airline

aˆ? A larger airport, where Ryanair’s competitors operate with greater bargaining power

The actual purchases of aircraft, fuel supply, are the two major suppliers of the aviation industry. The supplier cannot control the fuel prices, although Ryanair is so sensitive and cannot affect the fuel suppler to Ryanair. On the actual purchase of the aircraft, Ryanair has a very healthy relationship with the main supplier of the aircraft, the Boeing Company (Brophy and ST. George, 2003). Suppliers cannot bring great results to Ryanair

Competitive Rivalry

aˆ? Intense competition in the LCC market

aˆ? Most of the cost advantage can be copied immediately

aˆ? The current low level of competition as the two major low-cost airlines to avoid a direct face to face competition by choose different routes to service

aˆ? However, if a company does decide to compete on the same basis, as Ryanair has a heavy pressure on prices, profit margins and thus profits

aˆ? there is not much difference between the services. The main difference is the price factor

In the highly competitive aviation industry competition is high. Although Ryanair is a pioneer who performed low-cost airlines, but competitors has also the implementation of low-fare. Beside, they also copied a number of Ryan strategic. For example, Aer Lingus and FlyBE airlines have also introduced charges for hold luggage after Ryanair perform it.

2.3 Scenario analysis
Worst Case:
Increase of Salaries

If the employee be successful, unions can represent the experience of Ryan, to increase wages.

No. Increase of other staff

New employees need in marketing, European Union regulations (such as safety regulations require additional crew on each flight.) Accounting, information technology

Increase of Airport Charges

Airport charges could increase in many Government owned airports. It may be are 100% increase.

Increase of Fuel Prices

Fuel prices may rise by 1% per annum. There may be another war to increase the oil prices.

The increase in average flight distance

The new destination may result in the average flight distance increased by 10% for two years and 5% for three years, followed by 0% per annum

Increase of Marketing Costs

Such of the competition may increase in some routes may need to launch marketing campaign for Ryanair. Eastern Europe may not be a popular route is expected, and may require additional advertising. Low price does not mean low quality. This idea needs to communicate.

Best Case:

In this case, this situation will be re-considered the most optimistic assumption that all possible outcomes into account.

Future energy prices will remain at today’s prices, in the best situation.

The euro is still better than the U.S. dollar against the U.S. dollar.

Load factors will remain stable at a high level for many years benefited from the growing number of passengers to use the entire fleet.

The marketing costs should support the continuous increase of passengers, and should cover the new routes.

Revenue should be increased in the plane’s flight as a better offer / services to enable passengers to spend a few euro on average for each flight.

3.Ryanair’s strengths and weaknesses.- SWOT analysis
Strengths:

aˆ? Brand Name: Ryanair, through its 14-year in LCC market has developed a very good recognized brand name.

aˆ? Benefit from the low airport charges: These low-cost assistance benefits based on Ryanair.

aˆ? The first advantage of the regional airports (such as Charleroi): As a market entry barriers

aˆ? Internet sites (94% reservation) : reducing distribution costs as through the phone booking is more expensive. Eliminates the need of travel agents.

aˆ? High-density seat

aˆ? All of the Boeing aircraft: a unified fleet saving on maintenance and training cost.

aˆ? Fast turn around

aˆ? High service performance: Punctual, flight speed the completion of the high rate and low loss of luggage, these give a good image of the company’s reliability.

aˆ? Modern fleet which resulting in lower maintenance costs: will become more uniform, with only one model (737-800), also a relatively new aircraft will require less maintenance.

aˆ? High aircraft utilization: Ryanair Airlines planes to fly longer to generate more income from its assets.

aˆ? Fuel and other risk hedging.

aˆ? Small headquarters: Low on overheads

aˆ? Point to Point: No hub and spoke, lower cost because not passed the required services

Weaknesses

aˆ? Easy to Bad News: Ryanair was considered arrogant and the slightest incidents have been a lot of news stories.

aˆ? Niche market: the possibility of limited expansion

aˆ? Distance of some regional airports from the advertising objectives: After a period of customers may feel that this is a big inconvenience.

aˆ? Poor quality of services: interpersonal skills.

aˆ? Ryanair is extremely sensitive to changes in charges (increase in value of the fare)

Opportunities

aˆ? EU enlargement: will open many new destinations

aˆ? Significant potential to capture market share: In the LCC market share will more than double

aˆ? Benefit from less exposure to geopolitical risks: As the only real business in Europe

aˆ? Ryanair economic slowdown actually helps to change the corporate culture, ‘stealing’ customers from traditional carriers as they seek lower fares.

Threats

aˆ? Dependent on the oil market: fuel cost depends on the oil market.

aˆ? Dependent on the economic cycle

aˆ? Increase of Low fares competition

aˆ? European Court of Justice ruling: It may make more difficulties and costs of future expansion.

aˆ? Limited growth of the southern European market

aˆ? Regional airports gain bargaining power for “second round”

aˆ? Customers are very sensitive of price

aˆ? Ryanair and Easy Jet limit each other’s growth “rout wise”, need to live peaceful coexistence, or is likely to become the battlefield of the line (such as: London- Rome)

-aˆ? Face increase in air traffic control charges. As more planes fly in the sky.

aˆ? Inability to prevent the introduction of fuel tax and environmental fees: this will reduce their growth potential because it depends on the price of the stimulus.

4.Evaluation of Ryanair’s strategy

Ryanair aims to establish itself as Europe’s leading low-fare scheduled passenger airline through continued improvement and expansion of low-cost services to their products. Ryanair aims to offer low fares, thus increasing the passenger traffic. A continued emphasis on cost control and operational efficiency is a very important part of the Ryanair way of doing things. Here are the key elements which make up Ryanair’s strategy:

Low fare: This is used to stimulate demand, their goal fare conscious leisure or business travelers who do not go, otherwise it will all or use other transport modes, such as car, coach or train. Ryanair to sell seats on the basis of one-way unlike most traditional carriers this change take effect in November 2001. Ryanair set fares based on demand for flights and with reference to the remainder of the scheduled departure date. 70% of the seats are the lowest fares in the sale of tickets can be assigned routes, once the full price of each seat. Ryanair’s Dublin to London (Stansted) is the most popular passenger route in terms of passenger volume; with fares from 19.99 to 169.99 (available in the lower special promotions).In September 2003, Ryanair launched a fare promotion offers a total of two million seats on certain routes for “free” (excluding government taxes and passenger service charges) for travel period from September 2003 to 17th December 2003. These movements are very useful to consolidate Ryanair’s low fares image. (M. Michel Alle ,Ryanair Plc. 2004)

Frequent point-to-point short-haul flight routes. Ryanair provides frequent point-to-point service in the short-haul routes, airports and major population centers in the surrounding areas and tourist destinations. An average of 1.1 hours flying time has been an average line length of 746 kilometers, in 2003. Ryanair flight an average of 1.94 round per day from each line. Short-haul flights only option to allow Ryanair to provide frequent service, while eliminating the need to provide” frill” service customers, or they will no longer flights. Point-to-point flying (as opposed to the service center and spoke the traditional operators used) to avoid the cost of Ryanair’s passengers to connect through service providers, including baggage transfers and transit passenger assistance costs. This is one of the key differences between Ryanair and traditional carriers. (M. Michel Alle, Ryanair Plc. 2004.)

Commitment for safety and quality of maintenance. Ryanair’s commitment to safety is the most important priority for the company and its management. This commitment begins with hiring and training of Ryanair’s pilots, flight attendants and maintenance staff, and includes a policy to maintain its aircraft in accordance with the highest European airline industry standards. Ryanair has not been a single incident or significant damage to passengers or flight crew in the 19 years of operating history. Although Ryanair aims to operate its fleet in a cost-effective manner, management does not seek to extend Ryanair’s low cost operating strategy of the region’s security, maintenance, training and quality assurance. Routine maintenance and repair of aircraft carried out in-house, and the present contract airframe maintenance, engine overhaul services and routing of the maintenance contractor, these contract will be under reviewed.(M. Michel Alle ,Ryanair Plc. 2004)

Ancillary Services: Ryanair offers a range of ancillary, revenue-generating services, including on-board merchandise, beverage and food sales, accommodation booking service, advertising, travel insurance, car rental and rail and bus tickets. Ryanair distribution of car rental, accommodation and travel insurance through its Web site and traditional telephone reservation offices. Management believes that providing these services through the Internet to allow Ryanair to increase sales, while at the same time, reduce cost per unit basis. Ancillary revenues, not including charter flights, increased by 68.1% (2002: 44%) and now accounts for 11.7% of total revenues compared to 9.4% in 2002.

Customer service. Ryanair’s strategy is to provide the best customer service performance of its peers group. According to reports by the Association of European Airlines and the airline announced its own statistics, Ryanair has made good on time, luggage lost less and less to cancel all of the rest group than their European counterparts. Ryanair realized that the strong focus on the implementation of these services and the operation of non-congested airports.

5.Recommendation

To have the largest amount of routes, the lowest fare airline in Europe without any compromise Ryanair’s business model, beyond all the other operators in all aspects, including quality of service. I think Ryanair is also eager to adhere to high growth.

I think Ryanair’s strategy has become a key factor in its great success. Therefore, in the end I applied all of these designed of recommendations to improve their business. The Recommendation of Ryanair are as following:

Continue to look for ways to reduce costs

Although Ryanair has the lowest cost base of any competitor, I believe Ryanair can continue to reduce its cost base, because it although at a lower pace of growth.

Increase the frequency of existing routes

European low-cost airline (LCC) market is not exhausted. Ryanair currently has a average 3.88 fights per capita daily of flight routes. This figure compared with Easyjet airlines and traditional carriers, is very low. This means that, Ryanair is the loss of business passengers who need a more flexible schedule. Ryanair added that if the frequency of some of their routes, they can effectively steal some passengers from the traditional carriers in order to increase market share.

The development of smaller bases in the Continental Operating Bases

With the low cost market saturation from London, Ryanair must to look at their other business base to expand their network. Dublin, Brussels, Hahn, etc … can be developed. Although there is not the same demand, outside London there is sufficient demand to make considerable profits

Open up new routes in Europe

There are many possible routes are still not served by low-cost airlines. To make a viable way there must to at least 32,000 people each year. Research is needed to find out a feasible route before the competition. And the opening route to un-served destination, Ryanair can also open routes where the competition is more expensive traditional carriers to attract customers to the cheaper, no-frills choice

Extended to the Central / Eastern Europe

Eastern Europe is rapidly becoming a hotspot for tourist and business travelers continue to expand as the E.U., but Ryanair does not meet any of the more popular destinations. Other low-cost airlines has been established there, such as Sky Europe, but not all routes have been exhausted. There are still have many opportunities in this field.

To actively seek market share from the Charter Market

The Charter is a huge market of represents 25% of the total traffic in Europe. Ryanair must be aggressive in this market by vigorously promote DIY holidays, rather than group tours. With the increasing popularity of the Internet and the popularity of lower travel agents, which is the market cannot be ignored. Ryanair should be provided to small package destination and aim to strengthen the side of the business.

Customer Service Overhaul

Ryanair has a remarkable performance as’ tangible’ customer service (punctuality, time to complete the flight, etc.) views, but in the ‘softer’ side of the customer service is not always good and have a lot of bad news. With this in mind Ryanair Airlines, while maintaining its strict rules and regulations, must to be adjusted on this area.

About Bandipur National Park

The Bandipur National Park, one of the first Tiger Reserves of India, is situated amidst the gigantic Western Ghat Mountains in Karnataka State, at the foothills of the Nilgiris (eucalyptus). This National Park spreads into the neighboring states Tamil Nadu and Kerala and is called the Mudumalai National Park. An astonishing variety of flora and fauna can be found here due to a moderate climate and diverse geographical condition. Sprawling over 860 sq km in area, the Bandipur National Park is very famous in Asia for its huge elephant herds. A very good internal network of roads meanders through its hilly terrains and breath-taking forested landscape. Wildlife viewing becomes an awe-inspiring experience at the many water bodies and salt lakes.

Fauna Of Bandipur National Park

Wild life abounds in plenty at the park, the rare Tiger being the main attraction. Elephants, Leopards, Bison, Chital, Sambar, Barking Deer, Mouse Deer, Sloth Beer, Black Napped Hare, Wild dog, Langur, Indian Giant Red Squirrel, Bonnet Macaque, 4 Horned Antelope, Porcupines, Slender Loris, Jungle Cat, Rusty Spotted Cat, Leopard Cat, Small Indian Civet, Palm Civet, Otter, Jackal, Wild Boar are just a few of the other inhabitants.

Avian Residents: The Park is also very rich in avi-fauna. Bird watchers would be delighted to spot Shaheen Falcons, Serpent Eagles, Crested Hawk Eagles, Gray Headed Firhings, Ospreys, Honey Buzzards, Malabar Pied Hornbills, King Vultures, Hill Mynas, Malabar Trogon, Gray Partridges, Black Woodpeckers, Paradise Flycatchers, Indian Pittas, Cormorants,

Flora Of The Park

The thick vegetation is watered by the Nagu, Kabini, Mule-hole and Moyar rivers criss-crossing the entire park which include trees like Honne, Sandalwood, Teak, Tadasalu, Mathi, Rosewood, Nandi, Bamboo, Nelli, Kooli, Dindalu, Kadu Tega, Randia and Bende. Stunted trees, interspersed with bushes and open grassy land can also be found on the eastern slopes.

Added Attraction Of Bandipur

Elephant and Jeep Safaris: A quiet Jeep safari can leave you with an invigorating experience of watching wild animals at close quarters. Bird watchers can opt for Elephant safari as it is an absolutely noiseless way to be at close proximity to animals.

Other places of interest are the 3 other reserves of Nagarhole, Mudumalai and Wayanad, the famous Vrindavan Gardens and Shrirangapatna fort of Tipu Sultan. Hot summer months can find people getting away to the enchanting hill towns of Ooty and Wellington.

Best Season To Visit

The park is open from the May to February. The best season to visit the park would be from May to July or in the months of September and October. Warm but comfortable for most of the year, winter from October to January might find the temperature falling to about 16°C. June to September is the monsoon season.

How To Reach Bandipur National Park

By Railways: Nearest railway station is at Nanjangud town (55 km) and Mysore (80 km).

By Airways: Nearest airport at Bangalore (220 kms).

By Roadways: Drive from Bangalore to Mysore and then take the Mysore-Ooty highway via Nanjangud and Gundlupet from where the park is just a half an hour drive.

Aberdeen Tartan Day

This report examines the data from a Market Research Questionnaire presented to visitors of Aberdeen. Awareness of past events is reviewed and, preferences for future events are examined, with various alternatives being explored.

On August 5, 2005 Aberdeen City Council held its second Tartan Day. In an effort to expand this newfound tradition Council wishes to explore levels of interest in different types of potential activities. In the past such activities as the Country Fair, walking tours, a family day at the Union Terrace and special Jacobite displays at Provost Skene’s House were included in the programme.

The data, provided by the client, consisted of 30 respondents to the questionnaire. Although this number is small it is sufficient to extract some general information for Aberdeen City Council to make decisions regarding future events. The raw data were assumed to be correct as well as the methods for collecting the data deemed appropriate.

The raw data were copied to a minitab file (available upon request) and various graphs and statistical tests performed. Means and medians were compared and, in some cases, correlation coefficients were calculated to identify relationships between areas.

Demographically the respondents were evenly split by gender and equally distributed in the three age ranges 15-19, 20-24 and 25-29. Twenty-eight live in Aberdeen City, 23 are college students, one secondary student and six employed full time. All six of the respondents employed had salaries below ?1500 per month.

There was huge variance in the level of awareness respondents had in the events held in Aberdeen last year. Of the 30 people surveyed almost all were aware of the “Free at the Dee” event but less than 25% were aware of ‘Tartan Day’.

Event

Number Aware

Number Attended

Aberdeen Jazz Festival

6

2

Aberdeen International Football Festival

14

1

Aberdeen International Youth Festival

13

1

Free at the Dee

28

14

Tartan Day

7

1

International Traders Fair

4

0

10k Fun Run

8

2

Highland Games

15

3

Apart from the traders fair, the football and youth festivals, the Tartan Day attracted the fewest percent of the people aware of its existence. Free at the Dee seems to have generated the keenest attraction.

How respondents find out about events connected with their hobbies and interests is shown below:

Communication mode

Percent who used this

TV

50%

Press

22%

Posters

18%

Text Message

20%

Internet

60%

e-mail

30%

Word of Mouth

93%

Leaflets

13%

Clearly word of mouth and the internet seem to be the most effective communication modes with traditional print modes (leaflets, posters, press) among the least. A review of the cost effectiveness of e-mail and the internet compared to TV may be worth undertaking. Note that since many respondents make use of more than one media the above percents add to more than 100%.

The pie chart below shows the relative popularity of the five proposed themes for future Tartan Day events. These are based on the number of respondents who chose each activity as either their first or second choice.

The boxplot below poignantly illustrates how the respondents voted. The shaded area shows how the middle half voted with the line in the box showing the median. The broad box for sports indicates the wide range of opinions related to the desirability of sports as a theme but whereas the small shaded area for music indicates a strong consensus (the median is actually 1). The star at 4 for music is a lone dissenter called an outlier. Clearly neither theatre, art nor highland games are very attractive as themes to the respondents. No one ranked theatre or art as number one and a singular champion of highland games voted it a first choice. Both sport and music seem to be popular. Twenty ranked music as number one and 8 ranked it as number 2 where sport received nine votes in each category.

A closer inspection of the data revealed that those that placed music high as an activity tended to place sports low. A similar relationship held between highland games and theatre. This information could be valuable should the committee decide to hold two events concurrently.

Most people who expressed a preference voted for the event to be held at the beginning of July either at the beach or Duthie Park.

Month

Count

Time

Count

Place

Count

June

11

Beginning of month

13

Beach

11

July

16

End of month

1

Duthie Park

14

August

2

No preference

16

Union Terrace

3

September

1

Castle Gate

1

Exhibition Centre

1

Seventy percent of the respondents would like to see a Scottish theme (Haggis, Angus Beef burgers, Whisky and tartan) at the festival. Almost a quarter had no preference.

Two-thirds of the respondents claimed to be willing to pay for this event and, of those, an overwhelming 80% peg ?1 to ?5 as reasonable with the rest willing to pay between ?6 and ?10.

Since a full two thirds of the respondents selected music as the theme they would prefer for future events a review of their preferences might reveal some additional information. The music lovers showed the same generally low level of awareness and participation at the various events held in Aberdeen last year as the complete sample of thirty respondents. The first surprise is the mode of communication for the people who selected music.

Communication mode

Music People

Percent who used this

Full Sample

Percent who used this

TV

50%

50%

Press

75%

22%

Posters

65%

18%

Text Message

20%

20%

Internet

60%

60%

e-mail

30%

30%

Word of Mouth

90%

93%

Leaflets

20%

13%

The group that choose music made use of most media the same as the full cohort with the notable exceptions that the music group made much more use of the printed media: press, posters and leaflets. The planning committee may wish to take this into account when designing their advertising. Advertising in the printed media could place more emphasis on the music aspect and other forms of media target a more general audience.

The music group favoured the beginning of July as did the whole group with an even greater percentage favouring Duthie Park. They also would like to see a Scottish theme added to the festival although whether this is confined to food, drink and dress or includes the music was not indicated.

Last years brochure heralded ten out of its sixteen venues as ‘admission free.’ Two-thirds of the respondents expressed a willingness to pay for the event they chose as a potential theme for Tartan Day (ie. they expressed a willingness to pay for a music event). The committee will need to consider the question of fee from a philosophical view as well as a pragmatic one. Generally the profile of the group willing to pay aligns closely to the whole group of respondents with a few notable exceptions. The potential payers showed greater attendance at both the 10K fun run and the highland games. They relied less on internet for communication and slightly more on e-mail. They showed a significantly greater reliance on TV for communication. None of the potential payers wished to see Tartan Day in August and they favoured Duthie Park very strongly.

The data were reviewed by parsing other subgroups with no startling results. The age groupings and the groupings according to employment status showed no difference from the group as a whole. There were slight gender differences in the choice of media. Females tended to favour the press and posters.

A number of questions emerge naturally from the above results. If music is to be a theme what kind of music would be best received? Could there be two themes like music and sport? The survey did not indicate family status. If Tartan Day is to be a family event this group could be targeted in any follow-up surveys.

The general level of awareness as indicated by the participants of the survey of Tartan Day in the past has been low and the attendance even lower.

Based on the survey results the committee should consider changing the date of Tartan Day to early in July. The majority favour a music theme with the venue at Duthie Park and they are willing to pay a small entrance fee (below ?5).

Depending on the target group a variety of media should be used to communicate the events of the day.

Abacus, Amadeus, and OPERA Reservation Systems (ORS) are the three IT systems that will be discuss in this report.

Abacus is the Asia Pacific’s largest Global Distribution System (GDS) and Computerized Reservations System (CRS) that provides airline reservations, pricing and ticketing, hotel and car bookings, travel insurance and other travel information. One of the travel agency which is using Abacus is Eurotours & Travel Pte Ltd in Singapore.

Amadeus is a Central Reservations System (CRS) which created by Air France, Iberia Airlines, Lufthansa, and Scandinavian Airlines System (SAS) in 1987. AirAsia is one of the airline partner which is using Amadeus as their IT system.

The OPERA Reservation System (ORS) is the industry’s first truly integrated, single image enterprise inventory system. ORS is owned by MICROS Systems, Inc. Loews Hotels has chosen ORS to be their IT systems in all their hotels.

These three different IT systems have its different advantages and disadvantages.

Last but not least, IT systems are very important in tourism and hospitality industry. They play a lot of roles in industry in order to provide more convenience for the companies as well as the customers.

2. Introduction

Information Technology (IT) systems play an important role in tourism and hospitality industry. There are many IT systems appear in the market now for hotels, restaurants, travel agencies, and airlines. Some of the IT systems are Abacus, Amadeus, Gabriel, Fidelio, OPERA Reservation System, Sabre, Worldspan, and many others. These IT systems are created to make reservations, check seat availabilities, food and beverage transactions and controls in hotels, restaurants, airlines, as well as travel agencies around the world.

Abacus, Amadeus, and OPERA Reservation Systems are the three IT systems that will be discuss in this report. Abacus is the Asia Pacific’s largest Global Distribution System (GDS) used in travel agencies. Amadeus is a Central Reservations System (CRS) which majority used in airlines while the OPERA Reservation System used in most hotels in the world.

This report is written and compound to evaluate and analyze how Abacus, Amadeus, and OPERA Reservation System are implemented in three different companies.

3. Abacus logo_Abacus-red_large.gif

Abacus International is the Asia Pacific’s largest Global Distribution System (GDS) and Computerized Reservations System (CRS) that provides airline reservations, pricing and ticketing, hotel and car bookings, travel insurance and other travel information since 1988. The headquarter of Abacus International is located in Singapore.

Abacus International is 65 percent owned by Abacus International Holdings and 35 percent owned by U.S. Based GDS, Sabre Holdings. Sabre is the global leader in the electronic distribution of travel and travel related services.

Abacus International Holdings is jointly owned by several Asia’s leading airlines including All Nippon Airways, Cathay Pacific, Garuda Indonesia, EVA Airways, China Airlines, Malaysia Airlines, Hong Kong Dragon Airlines, Royal Brunei Airlines, Philippine Airlines, SilkAir and Singapore Airlines.

Abacus is typically used in travel agencies and one of the travel agency which uses Abacus as their reservation system is:

Eurotours & Travel Pte Ltd

Eurotours & Travel Pte Ltd was established by Ms. Hedy Mok in 1974. Eurotours & Travel is located at 190 Clemenceau Avenue #05-4/7, Singapore Shopping Centre, Singapore 239924. Eurotours & Travel provides inbound and outbound travel management services. Currently, Corporate Travel bookings comprise 80 percent of Eurotours’ business volume and the remaining 20 percent is from Leisure Travel services.

Every system must have the strengths and the weaknesses in different area. The strengths of Abacus are Abacus has direct link for travel agencies who want to apply Australia visa for their customers. It is more convenience for the travel agencies who use Abacus so they do not to go to Australia embassy to queue for applying visa for their customers who wish to travel to Australia.

Abacus also provides a lot of information about all requirements that travel agencies need to know for their customers who want to travel to certain country.

Some weaknesses of Abacus are the operation of Abacus and the update information in Abacus. The operation of Abacus is not user friendly. For travel agencies who operate Abacus system, they need to give advance training to their employees because Abacus uses a lot of codes in their system. The employees need to learn and memorize hundreds of code in order to make a reservation or check the room availability in a hotel. Abacus also a bit slow in update their new data or information so travel agencies always need to check their new information. logo_Abacus-red_large.gif

4. Amadeus – Your Technology Partner 1009amadeuslogo.jpg

Amadeus is a Central Reservations System (CRS) which created by Air France, Iberia Airlines, Lufthansa, and Scandinavian Airlines System (SAS) in 1987. Amadeus is owned by Amadeus IT Group. The central headquarters of Amadeus are located in Madrid, Spain for its corporate headquarters and marketing, Nice for the development and Erding for the operation.

Amadeus is also a member of International Air Transport Association (IATA), OpenTravel Alliance (OTA), and SITA, and its IATA designator code is 1A.

One of the airline which applies Amadeus as their IT system is:

Air Asia

According to Press Release from Amadeus North America, Inc. (2010) stated:

“Madrid, Spain, September 10, 2009: Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry today, announced that it hasformed a groundbreaking partnership with AirAsia, the World’s Best Low Cost Airline, which for the first time will enable Amadeus-subscribing travel agencies worldwide to book AirAsia flights in the same way they would for a full-service carrier.”

AirAsia is a Malaysian low-cost airline. AirAsia was established in 1993 and commenced operations on 18 November 1996. AirAsia have five subsidiaries which are Thai AirAsia, Indonesia AirAsia, VietJet AirAsia, AirAsia RedTix, and Khmer AirAsia (2012). AirAsia Group operates over 400 flights daily, both domestic and international routes, from Indonesia, Malaysia, Thailand, Kuala Lumpur, Singapore, India, Myanmar, Vietnam, Sri Lanka, Taiwan, South Korea, Laos, Philippines, and United Kingdom. Currently, AirAsia has total 96 fleets including Thai AirAsia, Indonesia AirAsia, and AirAsia X.

Amadeus provides Customer Service Management (CMS) for airlines, sales, reservations, and e-ticketing systems, and corporate self-booking tools for major world leading airlines and travel suppliers. Amadeus also offers services for trains, cars, cruises, and hotel reservations.

There are many benefits for the airlines which using Amadeus. The system of Amadeus is quite fast and efficient. Amadeus also allows the airlines to change their existing bookings or request new time limits. Lastly, Amadeus also will send automatic recognition or acknowledgement to their partner airlines once all the updates are finished.

1009amadeuslogo.jpg

5. OPERA Reservation System (ORS) opera.jpg

The OPERA Reservation System (ORS) is the industry’s first truly integrated, single image enterprise inventory system. OPERA Reservation System is owned by MICROS Systems, Inc. The headquarter of MICROS Systems, Inc. is located in Columbia, Maryland. The ORS hotel reservation system is designed with the entire OPERA product family: OPERA Customer Information System (OCIS), OPERA Property Management System, OPERA Sales and Catering, and OPERA Sales Force Automation.

ORS can be configured to suit any size hotel or Central Reservation Office (CRO) environment. ORS handles all types of reservations started from individual, group and party, company, travel agent, multi-legged, multi-rate, as well as waitlisted.

ORS is typically used in the hotels especially front office and one of the hotel which uses ORS as their IT system is:

Loews Hotels

Loews Hotels headquartered in New York City, offer a comfortable, vibrant, and unique local experience for their guests. Loews Hotels is a wholly owned by Loews Corporation. Loews Hotels operates 19 distinctive luxury hotels and resorts across US and Canada started from: Annapolis, Los Angeles, Lake Las Vegas, Montreal, Quebec City, Miami Beach, Nashville, New York, New Orleans, Philadelphia, San Diego, Tucson, Washington DC, St. Pete Beach, Portofino Bay, Hard Rock Hotel, and Royal Pacific Resort.

The ORS availability display will help the front office officer to check the room rates, types of room, and packages that hotel offer to their guests. ORS also helps hotels to do the complex operations such as frequent flyer and loyalty program memberships, split charges, and rate discounts.

ORS also handles group and block reservations in hotel easier than other systems, for example: room blocking, room sharing, rooming lists, tour series, and deposits.

Last but not least, hotels and chains can also use the ORS to review their business volume and performance by either open or close channel. Open or close channel can be based on property rate or the room type.

6. Conclusion

Nowadays, hotels, airlines, restaurants, and travel agencies use Information Technology (IT) systems in their companies to facilitate the companies as well as their customers in terms of making reservations, checking the seat availabilities, purchasing airline tickets, and many others.

Abacus, Amadeus, and OPERA Reservation System (ORS) is the three IT systems which have discussed in this report. Abacus is the IT systems which used in majority travel agencies, while Amadeus and ORS used in majority airlines and hotels. These three different IT systems have its different advantages and disadvantages.

Last but not least, IT systems are very important in tourism and hospitality industry. They play a lot of roles in industry in order to provide more convenience for the companies and their customers.

LakshwadeepSnorkeling

Snorkeling is one of the favorite water sport activities of Lakshadweep. Bangaram Island offers an excellent locale for snorkeling in its shallow waters. Both Bangaram and Kadmat islands smooth the progress of the diving once the visitors arrive here. The 3 deserted islands Parali-I, Parali-II and Tinnakara can be approached through sailing, boarding and rowing. Wind surfing and Kayaking are the other risky water sport activities at the Bangaram Island.

The coral isle of Lakshadweep are surrounded by unspoiled coral reefs and shallow lagoons with clear blue water and rich marine life, making the region an excellent place for snorkeling. Every island hosts good-looking beaches and tranquil water bodies that make snorkelling in Lakshadweep easy directly from the beach. The local water sports centers and dive shops can provide you with equipment, and snorkeling tours are also available. You can see a great deal of marine life, including sea turtles, manta rays and a great variety of fish and corals. Snorkeling in the Lakshadweep is best outside the monsoon season.

Agatti Island

Agatti Island Beach Resortoffers a spectacular show of spotless coral reefs, turquoise blue lagoons, shiny seashores and verdant green coconut palms. The time comes to a stop here as the nature mesmerises one and all with its sheer purity and spotless beauty. It is one of world’s most spectacular tropical islands untouched by the tourist rush.

The emerald green peaceful palm clothed islands of Agatti; the extensive white beaches; the multicoloured trivial, still lagoon with its numerous life forms; the diamond waves shaped by waves arresting the reef and the deep blue of the Arabian sea are all feasts to the eye and an experience that will last a lifetime. Possibly it is one of the very few places where all hues of blue, green and white are in attendance. In reality, the islands and the coral reefs are so diverse in its corporeal appearance and exterior that no two would look alike. The gentleness and the amity is an enticing experience that makes sure total renewal to the body, mind and soul.

Words would fall short if one has to describe the actual sereneness and beauty of this place. It is like finding something that transcends even the imaginations. The resort is situated in the most tranquil spot of the island which is one of the world’s most stunning sultry islands. Rowing or swimming or diving in bottomless sea or superficial lagoon, screening the underwater world in glass bottomed boat or stopping by an abandoned island- there is not a single moment which is boring or without any hula baloo.

Snorkeling in Andaman and Nicobar

The underwater corals in Andaman island beaches are very colourful. One can experience the live corals atJolly buoy, red skin, North bayand other island beaches. Snorkeling and Scuba diving is a great experience in these marine worlds. People who don’t know swimming also can experience snorkelling.

Jolly buoy island is very well-known for under water corals and the immaculate lucid beach. This place is one hour drive from Wandoor beach. Snorkeling and scuba diving are obtainable here.

To reach Jolly buoy island people have to come up to to Wandoor beach. This is situated in Mahatma Gandhi National Park. Wandoor beach is 30 Kms away from Port Blair by road. This road is same for visiting Red Skin isle also. Both Jolly buoy and Red skin are situated at Mahatma Gandhi National park. The standard time for leaving to Jolly Buoy island is around 9.00am. Ensure to reach there.

Positioned closer to Phoenix jetty of Port Blair, this seashore is also very renowned for underneath water corals. Snorkeling and scuba diving is offered here. All sort of amenities are obtainable for the people like clothes for rent, food, huts for taking rest, lockers, etc… The single day trip comprises of North Bay, Viper Island and Ross Island. Some travellers like better to stay extra time in North Bay to take delight in the sea corals all the way through snorkeling and scuba diving. A regular trip package has going to Viper island first then North bay next followed by Ross island last. Unlike Jolly buoy and Red skin beaches, the mass in North Bay coral beach is more. People throng this place because of the services here being better. There are lockers; Almirahs; and other such arrangements are available for looking after valuables. The tourists who move to North Bay should start for should be ready by 9.00am at the Phoenix jetty.

Kalipur near Diglipur North Andaman, the Island off the coast of Pristine Beach resort (200-300 rupee huts. Best beach snorkeling place I visited in the Andamans. Very diverse too, great coral between on the beach side of the island on the far side are rocks which go down quite deep with lots of fish especially the northeast corner. Saw sting rays, lion fish, sea snake, octopus, several Giant Parrot fish about 1.5 m long, small barracudas, lots of fish of all sizes. Sea turtles are often seen here as well but I didn’t see one.

Havelock, the coral is better at Elephant beach, but not as good as Kalipur of Lalaji, I saw more larger fish out on the right and left side of the lagoon at the end of beach 7 than Elephant. Off beach 7 I saw Giant Parrot fish and a sea turtle, in addition to the usual stuff. Guesthouse plug, full power guesthouse on beach seven is a great place to stay. Really nice owner only has 4 huts though 150-200.

Goa

Snorkeling is yet another popular water sport in Goa. Like scuba diving, it is also meant for undersea exploration. However, it is relatively simpler than scuba diving, as it involves a simple breathing apparatus for breathing. A bent tube provides the diver fresh air as he bends down into the shallow water to observe underwater life. It does not require much training; almost any healthy person can engage in snorkeling.

Bat Island and Navy Island in Goa are known for snorkeling facilities. The facilities for snorkeling in Goa include all the gear you need which will be supplied by the operator. The accessories including wet suit, gloves, masks, and fins are all provided by your operator.

Netrani Island, Murudeshwar, Karnataka

Off Murudeshwar beach lays the Netrani Island. It is in North Kanara district in Karnataka. This place is also known as Pigeon Island. It is by and large unexplored by tourists visiting Murudeshwar and surrounding areas. The nearby Island is used by the Indian Navy for target practice (there is a naval base in nearby Karwar). This Island is a home of the scarce Coral Reefs and unusual maritime existence. It takes on a half an hour boat ride to reach Netrani from Murudeshwar.

Travel Tips
If you are preparing to head out unaccompanied to Netrani Island, formulate a short trip as this Island is a Navy Protected area and they are thought to carry out target practice and bomb-testing activities.
Make sure with the local fishermen about the caution above as they frequently endeavour out in the sea.
It is best if you do it from a club since they will build all the needed arrangements before-hand.

Tourism in the face of 21st century’s challenges.1. Introduction

It is difficult to pin-point in a short publication all the problems which will determine the direction of tourism’s development in the twenty-first century. This difficulty results from dynamic transformations which are in our modern civilisation. Twenty years ago in his book entitled „The Third Wave”, A. Toffler wrote that humanity will stand in the face of new challenges, and it appears that these processes are in the future. According to the author the title „The Third Wave”, like the previous two indicate, „…will squeeze out previous cultures and civilisations bringing it’s morals into effect, which was inconceivable for people who had been born earlier”1. The speed of our everyday life was considerably slower, as the first wave, the agricultural revolution, needed one thousand years to run its course. The Industrial revolution, or the second wave, needed only three hundred years from the beginning to the end. However, these prior transformations are incomparable to the speed and progress of our modern civilisation. This third wave has been dubbed the technological revolution and is now in process. Some of the more visible processes in our modern life include; the quick development of the technology, the revolution in genetics, the conquest of outerspace, the rapid development of cities, and the changes in our jobs and lifestyles. With this information we can state that A. Toffler was correct in saying „The third wave will burst into history within a few decades time. Thus we will feel the effects of the third wave in our lifetime”2. Toffler’s vision of radical changes in economics accompanied by worldviews of new “liberal opportunities” will create the disintegration of the industrial society. Traditional industries will be replaced with new industries based on modern technology, causing transformation between the relationships of our home and work place, working time and free time, and prosperity versus poverty. The meaning of the natural environment will become more important as the world will be seeking new values resulting in changes of cultures and ideologies. Lifestyles and family functions will change, taking on new meaning with concepts such as science, careers, and unemployment. However, the question remains, what impact will these new changes have on tourism? Will tourism use these opportunities, or will it be an enclave in which we can rest from civilisation?

Tourism is a dynamic discipline and is affected by these processes previously discussed. The analysis of trends in the modern tourist market show there are many changes suggesting that tourism in the future will differ from present day affairs. The complexity of tourism will bring about many difficulties throughout its development. J. Krippendorf stated, „ it is possible that tourism, an antidote for the industrial world, has become an industry and predacious devourer of the environment”3. The more difficult challenge of the twenty-first century will be the protection of the environment. Fortunately the tourism industry has begun using modern technology in the fields of computer science, communications, and the building of transportation to preserve the environment. The development of tourism is also known to be an asset to social economics, however, there tends to be strong speculations to the overall benefits in this aspect.

Toffler A., The Third Wave, Bantam , New York 1981. Toffler A., Trzecia fala [Tlumaczenie E. Woydyllo], Panstwowy Instytut Wydawniczy, Warszawa 1997, p. 44.

Ibidem.
2. The Conditions and Prognosis in the Development of Tourism at the Beginning of the 21st Century.

Consider the further of tourism and the challenges it will face at the beginning of the twenty-first century. The prognosis is very optimistic as suggested in publicised rapport4. The rapport talks about quick development and states that during the next twenty years tourism will be one of the fasts growing departments in the world’s economy. However, tourism is far from the end of its development, as for now it consists of a small percentage of the world’s citizens. The main hazards in development are problems with the political situation in the world, especially conflicts within the Balkans, the instability of the Arab world, and the disorganisation between authorities and conflict in the former territory of the Soviet Empire. Slightly less hazardous factors deal with economics such as recession and the increase of gas prices. Nevertheless the outlook on tourist development remains optimistic5. The quantitative development of tourism is accompanied by multi-aspects including qualitative and structural transformations. The recent geopolitical changes made in different regions of the world has had a great influence on the scale and structure of tourism. The downfall of communism and democratisation of societies in former socialist countries are events which have an impact on modern tourism, and other parts of the world have witnessed similar processes within their societies. The development of international tourism will take on new dynamic and important changes in spatial structures. Generally speaking an increase in share of the tourist structure shows no connection with an increase in share of the profit structure. There is no guarantee of an even distribution in the benefits of tourism. A good example is Africa, which last years shares in total scale of tourist arrivals increased while the total scale of shares in receipts from tourism rapidly decreased.

The forecasts about the tourism development are made by using econometric models. So, very important to remember is that a basic variable is time. Therefore, forecasting quick develop of tourism, on a base of fast develop of countries like in nineties is risky. A lot of these countries achieved so-called market maturity. The best opportunities for development of tourism are in areas (e.g. China) where it’s develop is depended on stabilised political situation, what is very far in the future. We cannot forget about that organisations (e.g.WTO) which make forecasts are not impartial. They have got a good interest in forecasting of increasing tendencies.

Some interesting changes in the quality of the tourist market are connected with the supply and demand. These aspects of needs, motivations, and demands lead to new directions in tourist firms. A quick tempo of bringing modern technologies into tourism may herald a real revolution in the organisation of the tourist system. These examples show that tourism, like all repeats of civilisation, odder-go changes and the question remains; what tasks will tourism face in the beginning of the new century? There are many factors which will shape the future of the tourist market and it should be noted that some are out of the control of the market. In an attempt to answer some of these questions there must be an analysis of the trends involved with tourism. Some of the more important conditions in the development of the tourist system with the influence of some components are presented in the figure 1.

Figure 1. Forces of change in the tourist system.

Source: Cooper Ch., Fletscher J., Gilbert D., Wanhill., Tourism – Principles &

Practice, Pitman Piblishing, Surrey 1993, p. 266.

The diagram presents two basic groups of factors which will decide about tourism in the twenty-first century. The first group are exterior factors called “megatrends”. The second group are interior factors connected with the tourist market. Because of the limited frames in this publication the developing megatrends are on table one, while the factors from the second group are in the complex tables. For more convenient analysis they are split into two groups, one concerned with the demand and one the supply. Tables two and three respectively.

Krippendorf J., Nieskazona przyroda jako podstawa istnienia turystyki, in: Problemy Turystyki Nr 2/4, Instytut Turystyki, Warszawa 1986, p. 89 and Krippendorf J., The Holiday Makers – Understending the Impact of Leisure and Travel, Heinemann Publishing Ltd, Oxford 1987.

For example: Travel and Tourism’s Economic Perspective – A Special Report from The World Travel & Tourism Council, WT&TC 1995;Tourism – 2020 Vision. A New Forecast from the World Tourism Organization. Execxutive Summary, WTO, Madrid 1998;Future Trends in Tourism – Executive Summary. Presentation Handout by Karl Obermair, AIT, Stockholm, June 1998.
3. Megatrend Influences on the Tourist Market.

The end of the twentieth century was a time of great transformation in all fields of life. There were many fast paced changes throughout social conditions, the economy, and technology, which brought about many transitions within tourism. The constant tendencies to observe and gain knowledge about the markets basic condition are needed to succeed with each activity and the trends within tourism can change quickly. The ability to forecast and stimulate these developmental processes is the key to making the correct decisions for the future. The fluxuation and competition within the tourist market not only requires constant observation and the ability to anticipate change, but also being able to react to the new trend before it becomes the norm. This shows the importance of knowledge in the action of these megatrends, which can be classified into six basic groups; demographics, politics, social and cultural, economics, technology, and ecology.

In each of these groups there are positive factors, which will either stimulate or deter the development of tourism, each with variability in strength and effect. These constituents will decide about the dynamics and expansion of tourism with the difficulty being verification. These megatrends, especially demographics, social, cultural, ecology, and technology hold such a strong influence on the maturation of tourism that such events as a political crisis or economic recession (in some regions) would be unable to hinder such progress.

Demographic factors, especially:

age of societies;
tendencies to set up home late;
a smaller number of households;
a dominant model of family 2+1;
increasing number of lonely people;
increasing number of childless couples;
increasing number of working women.
Political factors, especially:
changes in Central-West Europe;
integration of the European Union;
liberalisation of international migrations;
convenience passports, foreign currency;
unstable political situation in many regions of the world;
international terrorism;
increased importance of safe travel
Social & cultural factors, especially:
shortened time of working, more free time and longer vacations;
increase of time for additional work;
earlier retirements;
increasing number of “two-income” households; which were thought of as a healthy life;
a family crisis;
conflicts between identity and modernisation, especially in developing countries
a radical demands and increases of importance of ethnic movement etc.
Economical factors, especially:
continuation of moderate economical increase in the world scale;
a bigger disproportion between rich and poor countries;
a bigger financial crisis in a number of countries (especially, among “economical tigers” in South Asia and Pacific);
a stable price of petroleum;
liberalisation and development of an international trade;
capital concentration in world’s economy;
globalisation of economical activity;
Technological factors, especially:
automation and computerisation;
developing of telecommunication
developing of computing systems;
developing of transport and infrastructure (airports, motorways);
Ecological factors, especially:
smaller environmental resources
a greater ecological awareness in society;
government’s concern with environment;
conflicts causes by developing of a big agglomerations ( in developing and
use of modern technologies in everyday life (household articles, sport, tourist equipment);
developing of soft technologies; developed countries );
development of the ecological movement
international collaboration in field of natural and cultural environment protection;
4. The Main Trends in Tourist Demands

There are many interesting publications about change within the field of tourist demands and many studies, which analyse the direction of these changes in development, have been publicised recently. The majorities are unanimous regarding the expansion and direction on the transformations of demands, so much so that there is even an accepted concept known as “Hard and Soft Tourism”. It is based on the observational changes within the sphere of former and actual clients in travel agencies and set the standard characteristics of two opposite kinds of tourism: the traditional tourist and the modern tourist. These are presented in table 2.

Table .2. Tourist demand changes. Conception of’ “Hard & Soft Tourism”.

Hard Tourism.

Characteristic of “so far tourism”

Soft Tourism

Characteristic of “future tourism”

Package tours; Individual travelling ;
A lot of time, short-term residences; A lot of time, long-term residences
Model of one big travel during holidays; Model of two shorter travels during a year
Everything organised earlier from “a” to “z” (sights, a route, program etc.);
Program decisions made individually and spontaneously;
Comfort and passivity; An activity and effort;
Expectation of number of travels and attractions;
Expectation of new experiences and higher quality;
Sense of superiority, demonstration effect; Respect and relationship with hostess;
Lack of knowledge about attractions, culture and tradition in visiting areas;
Knowledge about countries we want to visit;
Imported life style and behaviour; Lifestyle following to an example of local population
Purchases; Gifts
Noise; Silence;
Freely available souvenirs (e.g. a mass production of Eiffel Tower figurines;
Individual souvenirs (e.g. photo and picture took individually, private video film)
Lack of interest in language of visiting country;
Studying local language (at least a few words);
Fast transport and frequent moves; Less importance of moving speed;
Curiosity; Tact;
Expectation of comfort; Comfort is not essential;
A distance between client and tourist staff;
A good relationship with tourist staff;

Source: Ostrowski S., Josta Krippendorfa wolanie o nowa swiatowa polityke turystyczna, in: Problemy Turystyki Nr 3, Instytut Turystyki, Warszawa 1983, p. 146.

In table three there is a vision of which tourism will dominate the future, characterised by a more active tourist and less interest in passive tourism. The prediction is that traditional tourism, refereed to as 3 X S (sun sea and sand) will be squeezed out by tourism based on a new formula involving 3 X E (entertainment, excitement, and education). During recent years there has become intensified interest in travelling to historical cities, the so-called “green tourist” with additional concern for a tendency in business tourism. Nevertheless it could be halted through the development of telecommunications and shorter but more frequent trips consisting of sightseeing and holiday could become more popular. The useful system of “bridges” between a national holiday leading to the extension of weekends has brought about a prognosis for a renaissance in national tourism. V.T.C. Middleton claimed that for tourists, who quite often may be ‘experienced,’ a trend in national tourism may become more attractive now then ever, including the sixties. The smaller interest in international tourism is in the neighbouring countries, or places where many Europeans have had vacation. In 1990 European travel represented about seven percent of all international travel, although this number was up to about ten percent in 1996, and Europeans are not the only ones concerned with these numbers. A poll conducted recently by the Travel Trade Gazette concerning international tourism showed these tendencies in change also pointed to the tourist industry representatives. One director of a travel agency was quoted saying ‘a person who was in Spain ten years ago at present is probably in Penang”6. The quick increase in numbers of individual trips along with package tours is the prediction of the future. Today Individuality has a strong influence on cars, clothes and other daily needs as well, and the gaining interest of individual travel is one of the most important tendencies in today’s tourist demands.

6. Conclusion

The evolution and transformations in tourism during the last one hundred years must be considered one of the most interesting processes in the recent history of humanity. The changes and evolution of the tourist in the next three decades of the twenty-first century are presented in a table which was made by H.Kahn almost a quarter of a century ago. This shows the unfolding of tourism as we see it today and as the table shows it is gaining momentum.

(1) Youth are the building blocks of a nation. It is a fact that the stronger the youth, the more developed the nation is. The role of the youth in the nation-building occupies the central place. The countries which utilize their youth in as right direction are more developed. The energy and brightness of minds of youth act as torch-bearer for a nation. On the contrary, the countries which fail to realize the importance of the youth lag behind in every department of life. This is one of the reasons of the backwardness of Pakistan. Hence the youth lacks proper patronage. Developed countries are totally aware of the worth of their. They consider their youth as an asset. Most important, these countries cater to the needs of their youth and provide them education, employment, recreational activities etc. such healthy and competitive environment prepare the youth to lead the country through thick and thin. If youth is not in the right direction and is unconcerned about the future of the nation, it will become a burden for the nation. Consequently, it will not play any productive role.

The countries where youth give proper distribution towards the development of nation then it is responsibility of the government to provide them the proper opportunities to help them to fulfill their roles because without the help of the government it is difficult for youth to play their proper role towards the development of the country. The parents role is also very important parents also need to pay proper intention on their young children and understand their feeling what their children wants them and what they need to guide them in order to play their role in the building a country.

The main roles and responsibility of youth are to give proper and complete intention to education, to guide the new coming young student, to play their vital role in the elimination of terrorism, to server the country with their talent and skills in the different fields, to take part in social and welfare activities, to need to work hard and utilize their own skills, to work with honestly and faithfully, to help to government to promote their country before the world.

(2) The youth is main resource of every country towards the nation building. (3) Pakistan has a large youth population. An estimated 103 million or 63% of the population fall under the age of 25 years. Due to endemic poverty, the majority of youth in Pakistan do not have the opportunity to experience a childhood. Male youth literacy rate is estimated to be 53% and female youth literacy rate is even lower at 42%. As far employment is concerned 15% of the youth is unemployed.

The youth have major role to perform but due to government not giving the proper intention they are not fulfill their roles. One of the major problem youth of Pakistan today facing is that’s when they complete their studies and ready to server their nation with their skill and talent they can’t find enough job to utilize their talent or in order server their country. This is now one of the biggest challenge they face today after they complete their education and this is also the reason some youth believe that they do nothing even after getting the education as after the long journey and the hard work they do not find the job then how we server our country. In this government play a negative image on youth. This is one of the very important responsibilities on government to give the youth proper opportunities in order to increase their spirit towards education in this way they server their country and also utilize their talent. (4) The youth in our country, like young people everywhere in the world, are searching for genuine ideals and values which they can live by, and for revolutionary ways to win them. Thus the Freedom Charter has become deeply rooted in the hearts of our youth.

Education is the most powerful weapon of our youth. But the quality education is lacking Pakistan especially for the poor to show their true talent and skill. Our college and universities becomes degree distribution machines many student have degrees in their hand but doesn’t find the job but they have not quality education their degree have not enough value and they do not have the true skills to fill the gap which the job need from them to fulfill. They complete their education and doesn’t get the job because of their skills they doesn’t fulfill the requirement of the job so youth must need to work hard and understand what they are studying and utilize their talent and government in the end need to help the youth to getting their job and create the enough opportunities for the youth.

Furthermore, the pressure of our parents due to our rigid system is also is trouble for our youth. The women of Pakistan mostly can’t get the education the parents believe that the women not need to get education their role is only to stay in house and cook food or something like that they do not to get education they don’t need to leave house and go to schools, colleges and universities. But this thinking is also wrong and very negative women have also the youth of our country they have the complete right to get the education and help the country to progress in every field the stand in the successful countries of the world. Education is compulsory on both the men as well as the women. (5) We need to bear in mind that “the destiny of nations is in the hands of youth”. Despite the multiplicity of problems, it is still a right time for government to take some pragmatic steps. Of the 15 largest countries in the world in terms of population, Pakistan has by far the youngest population. Government should not regard the young population as a burden but an asset. The Youth of Pakistan are also known as the “Nation Builders” and they can play a significant role in the development of the country not only economically but also by morally and practically. We have to clear the differences and objections of people and make our efforts to grow Pakistan and fulfill the basic needs of the people which are below the poverty line.

The role media in our youth is also very important. Our youth is mostly attracts towards the western programs and their culture. They follow their culture and their styles. This is also a very bad and negative thing on our youth. They have very bad impression on him their do what they see in the television but they do not need to do such type of thing they do what is against their religion. They need to not follow their culture or their style they have their own style their own culture to guide them these thing the role of media is very important our media need to alert of these thing and keep in mind these thing what youth follow and what are their roles to put the youth on the right way and tell them the thing which they need. But our media not fulfill their roles they don’t why showing such type of thing which have very negative and bad image on our youth. Now this is time the media have to take important step and put the youth on the right way. Media need start the educational talk shows and informative shows so youth get the information and know what their country need from them and what are their roles which they need to fulfill. In this way our media play their role and leave the good impression on our youth. (7) Today, we are living in the shadow of suicide attacks and target killings. The state is in a complete state of chaos, everyone is depressed due to the sorry state of affairs. The young blood is working tirelessly day and night to create a ray of hope to bring a solution to the problems, which are creating a bad global image of Pakistan. They are actively involved in NGOs; some of them are doctors, chemists, economists, fine arts student, and military people and are also involved in many other occupations, which constituted as a whole is bringing glory to the nation.(8) I would like to shed some light on some of the events where the youth really created an impact. During the floods which destroyed half of Pakistan, the students and young workers raised charity and donated relief items to the people who had lost everything. It was the youth who marched alongside the lawyers for the restoration of the Chief Justice during the lawyer’s movement. Our under 19 team won the Cricket World Cup in Malaysia against India. Ali Moeen Nawazish scored 21 As in his A-level examinations in England. Here are some suggestions to make good use of our youth.

(6)Competitive teachers must be recruited who could encourage and guide our youth to right lines. Politics must be prevented in the educational institutions. Campaign be started by the media that it is only education which can make our country more prosperous. We must have 100% literacy. It has become a common psyche among the well-educated people that after the completion of the education they would leave their country in the lurch. Government must prevent brain-drain in our country by providing full employment and act as a magnet for bright minds. Parents should teach youngsters patience to face the difficulties and be steadfast. Youth be given ample opportunities to prove and cash their skill in every field. Right men be placed on right places. Youth should be clear about their future. Youth should be at arm’s length from the bad company.

The great leader and the founder of Pakistan Quaid-e-Azam Muhammad Ali Jinnah says: “Pakistan is proud of her youth, particularly the students who have always been in the forefront in the hour of trial and need. You are the nation’s leaders of tomorrow and you must fully equip yourself by discipline, education and training for the arduous task lying ahead of you. You should realize the magnitude of your responsibility and be ready to bear it.”

To conclude, the youth of today can do a marvelous job for the nation. With all the modern means of this computer age, where everything seems to be possible, why can’t the youth override the things done by the people in the past? We always consider the heroes of the past to be the evergreen characters. But today the youth with the proper use of the modern facilities should be evergreen characters for the times to come.

(2012). THE PROGRESS OF COUNTRY LIES IN THE HANDS OF YOUTH. [ONLINE] Available at: http://www.cssforum.com.pk/css-compulsory-subjects/essay/essays/50806-essay-progress-country-lies-hands-youth.html. [Last Accessed 12-13-12].

(2) (2012). Paragraph on Role of Youth . [ONLINE] Available at: http://www.publishyourarticles.net/eng/articles/paragraph-on-role-of-youth.html. [Last Accessed 12-13-12].

(3) (2012). THE PROGRESS OF COUNTRY LIES IN THE HANDS OF YOUTH. [ONLINE] Available at: http://www.cssforum.com.pk/css-compulsory-;4subjects/essay/essays/50806- essay-progress-country-lies-hands-youth.html. [Last Accessed 12-13-12].

(4) (2012). . [ONLINE] Available at: http://www.shareyouressays.com/2809/670-words-essay- on-role-of-youth-in-society. [Last Accessed 12-13-12].

(5) (2012). THE PROGRESS OF COUNTRY LIES IN THE HANDS OF YOUTH. [ONLINE] Available at: http://www.cssforum.com.pk/css-compulsory-;4subjects/essay/essays/50806- essay-progress-country-lies-hands-youth.html. [Last Accessed 12-13-12].

(6) (2012). THE PROGRESS OF COUNTRY LIES IN THE HANDS OF YOUTH. [ONLINE] Available at: http://www.cssforum.com.pk/css-compulsory-;4subjects/essay/essays/50806- essay-progress-country-lies-hands-youth.html. [Last Accessed 12-13-12].

(7) (2012). . [ONLINE] Available at: http://blah.com.pk/news-and-events/role-of-youth-in-the-development-of-pakista . [Last Accessed 12-13-12].

(8) (2012). . [ONLINE] Available at: http://blah.com.pk/news-and-events/role-of-youth-in-the-development-of-pakista . [Last Accessed 12-13-12].

“Yesterday is history. Tomorrow is a mystery. Today is a gift – that is why we call it the present.” Author unknown. How much of your life is lost either dwelling on the past or worrying about the future? When your thoughts are imprisoned by the past or fearful of the future, you can miss out on one of life’s greatest gifts: that which is happening today and indeed this very moment.

The reality is that when you are yearning for yesterday and either tempted or terrified by tomorrow, your ability to move forward will be confined by your inability to make the most of today. The key to throwing off your shackles is to put your effort into the present moment. Not only will you reap the rewards of enjoying a new awareness of everything around you, but also you will have a healthy and positive place from which to move forward in a constructive and fulfilling way.

Mark 8: 18 Do you have eyes but fail to see, and ears but fail to hear?

The goal of the Christian life is living our life centered in the eternal presence of God. Living life at the Center is an axiom not fully appreciated as an underlying hope and reality of the Christian life. The center represents the driving force of one’s life where the totality of our thought and life brings us into communion and union with the heart of God. It is nothing more or nothing less than our full devotion in knowing and seeking the life giving love of the resurrected Christ. It is something we seek out of obedience and not something we simply do for a spiritual experience. It is the desire to conform and be transformed by the one who is uncreated Spirit. The one our heart seeks is the trigger or prime mover of everything we now see and know in the world. When we seek the center we seek to know and be known by the great I Am, recognizing He is all sufficient, all knowing, and holds the mystery of creation and our life in His hands.

In Christian theology the center is aptly described by the apostle Paul, who states I have been crucified with Christ, I no longer live, but Christ lives in me. His practical experience reveals a relationship where the life of Christ has transformed his heart and resides in him. Paul no longer lives in his present state of reality, but in a new reality of the cosmic Christ taking control of his life. He no longer lives his life in his own power and intellect. He lives life filled by grace no longer with his limited knowledge but now filled with the knowledge of God. His heart moves closer each day to be like Christ’s heart. He declares as he dies to his own desires and passions his heart becomes more like Christ’s heart. Christ’s life becomes his life and now being centered in Him he is more and more transformed to become like Christ, act like Christ and talk like Christ. The heart of Jesus now lives and acts through Paul’s heart and life. Paul now lives life centered in Christ.

The core goal of living life at the center is to become like Christ in the renewing of our minds where in practice we are exchanging our minds for His mind and exchanging of our life for His life. It accepts and recognizes the need of exchanging our fallen character for His perfect character and to become completely centered in his will and his life. It moves us away from the corrupt power of this world where the illusions created by our temporary surroundings trap us. Life in the center untangles us from the mess and attraction of this world and lets us become immersed into the fullness of the spirit which connects our heart and immerses us in the source of all love. When we encounter the unfathomable love of Christ we find we did absolutely nothing to seek Him out. We are humbled with gratitude His divinely initiated love seeks our well being far more than we would ever or could ever desire Him.

The daunting task of theology is honestly admitting how does finite man encounter/relate/explain infinite God? How does anthropocentric man, by definition a self consumed egocentric entity interpret God? So we must with full disclosure acknowledge at best our ability to explain the concept of God or the divine flows out of a very limited knowledge at best. However at worst the conclusions we draw testify to our fallen condition filled with arrogance and non-glorifying interpretations of God.

Man begins any study and evaluation of God from the outside peering through an opaque glass. Man deluded by his own pride and arrogance never appreciates any of the eternal qualities of God. Instead of being humbled for he owes his life to something outside of himself he somehow wrongly and proudly concurs that his life is what is most important. Mankind reasons with feeble attempts to explain the unexplainable which reveals the stark condition of his being lost in a dark and dangerous world.

The center which should be Christ has been turned inside out with God no longer at the center but man as the center of his life. The consequences of that blindness render man as a foolish beast proven out in the pages of history. Mankind as he moves away from the center lives a tragic fairytale existence. The further man moves away from the center (God) the more he thirsts and craves the things which never fully satisfy but actually destroy him.

The struggle of any religious or spiritual encounter is the question of who is leading me and where am I being led. The tragedy of many who have been drawn by an all encompassing love toward the center find the ego quickly recovers from its initial loss of control and stops the progression toward the center and the divine life.

So our encounter has given us a new awareness of life but results in no real transformation of our heart. We have given a mental assent to change and willingly conclude there is something we now see and sense that we couldn’t see before this revolutionary change of view in our life. Now aware we easily conclude the heart of God seems to be a much more favorable place to live against the backdrop of our current broken promises in life. In reality we have for the first time been able to see something we have never seen before because now we also see with spiritual eyes. We now behold the glory of God and a plan for not only creation but our life. The historical Jesus becomes the “cosmic” Christ who is all in all.

Our spiritual eyes now open we see life on a new level of awareness. We now engage on an untraveled journey of following God and discovering a place of worship where religious leaders and others teach us how to follow and imitate God. We have a deep desire to leave the outer edge of the circle and mysteriously move toward the center. However, once the movement begins toward the heart of God, all the external trappings of life outside the circle and the things of the world come back with a vengeance to regain control again.

The journey to the center and the heart of Christ started when we spiritually saw a fourth dimension beyond what we can touch with our five senses. The journey into the heart of God is an experience in life we never thought conceivable. There is a hunger or itch that has been scratched created by the awareness of something far beyond what you simply taste, touch, feel, in our three dimensional world of height, width, depth, space and time. We are mystified we have found God so to speak and feel fortunate there appears to be a divine plan encompassing all of creation and we will enjoy all the benefits and culmination of that plan.

The adventure toward the fullness of God has begun as we deem life has meaning as we no longer exist alone but in relationship and fellowship with the Creator. The struggle is finite man has begun the process of living in the presence of the infinite God. Once again finite man will never ever begin to comprehend or imagine or explain the incomprehensible, the unimaginable and the unexplainable. So the inflated arrogant ego or self quickly makes the indescribable “God” simply a “god” we are most comfortable with in our experience. God is relegated once again to our little box of interpretation or at best a good mathematical equation or as the agnostic no relevance at all. Ego edges god out of even existing from the beginning and continues that process every waking moment of our lives even when we have recognized the need to go to the center!

My desire is that not only will you see life differently, but you will process life totally differently than you have ever processed it up to this point. I want to first give you a little test. It’s a thinking and response test. There are no ground rules except read the word on the left and the word on the right as a pair. I simply want you to read the list of two words each at this point.

Republican Democrat

Liberal Conservative

Vanilla Chocolate

Islam Christian

General Motors Mercedes

Straight Gay

Evolution Creation

Doctor High School drop-out

Buddha Jesus

Protestant Catholic

Pentecostal Baptist

What is your first response to what you just read? Were they simply words or did they carry hidden meaning? Did you have any emotional response to any of the words in their pairing? Did you place any values on the pairing such as one being better or higher valued than the other word? Were some words more negative or positive than others in your mind?

In being able to move to the center and the heart of God we must move beyond our normal way of processing life. We process most of life from a dualistic thinking perspective which in simple terms means the ego or the false self processes our existence from a self preservation mode which protects each and every one of us from any perceived harm to our security and existence.

In being able to move to the center and the heart of God we must move beyond our normal way of thinking about life. We must learn to process life from a non-dualistic thinking perspective.

Dualism sees things as either /or, right /wrong, good/bad/. There is not anything incessantly evil with this type thinking, it simply needs to be recognized as how we are wired, how we process life from our ego or the false self, the part of us that is you and me. Dualistic thinking involves the process of comparing everything by value, usefulness or non usefulness to our state of being. It must be understood it is the part of the self which plays god. It sees life from one perspective what is best for me and what is best for the preservation and security of my life. Dualism sees things which either benefits me positively or negatively. It places me in the position of being for or against something and judges things as right or wrong in relationship to what the false self concludes is best for me and only me. The best way to understand the false self and what dualistic thinking reveals is that our ego preserves itself by being in control and hates anything that threatens its loss of control.

It is most dangerous and deceptive when we have a taste of the eternal and our false self aligns itself with the higher power or God. It then can judge others as being the right kind of believer or not. The ego moves quite naturally from a system of thinking based on atheistic belief into a bible believing way of thinking about God. We no longer have the atheistic ego (self) in control. We now have the spiritual religious ego (self) in control. It then can continue its dualistic thinking without any real heart change and control and judge others as being the right kind of believer in God or not. Once again take the paired words together and read down through the list.

. Grace Works

Hymns Choruses

Immersion Sprinkling

Liturgical Non- liturgical

Male Leadership Female Leadership

Alcohol Non-alcohol

Non-instrumental Drums

Living Bible King James Version

Suits Sandals

Gays Straight

Once again did you have any emotional response to any of the words in their pairing? Did you place any values on the pairing such as one being better or higher valued than the other word? Were some words more negative or positive than others in your mind?

It should be rather humbling at this point if we begin to understand we have had some conversion of our head about God, but not much conversion in our heart and life has taken place. Heart renewal begins to take place when we become non dual thinkers and processors. This type thinking and perceiving occurs when we see life not in parts, but begin seeing life as a whole. In non- dualistic thinking and processing life we see God as the source; everything in life flows out of God and everything that God does. Ego more often than not is more comfortable separate from god. So a new life brings about a new way of thinking. My life is to be lost in letting my life be centered and controlled by God’s will. Transformation takes place when the ego no longer compartmentalizes my interpretation of God to fit my egocentric needs and my limited understanding of God.

Life change begins when I trust true knowledge comes from God as my source and I let His love be the driving force in my life. There must be faith in God and realize most of the time my interpretation of God is most of the times very ego centered and will remain ego centered usually with what I am most comfortable with for my life. The tragic ironies of the “War between the States” in the 1860’s more Americans were killed in this war than all the other wars combined in America history. It was not only brother killing brother, but Christian killing other Christians over who was right in the name of God.

My hope is we might be transformed by the love of God as we move to the center of His Will. This journey into the heart of God means we must go back when before the fall there was nothing right or wrong. God was not only the only source but he is the source of everything pure and holy.

Traveling to the center we encounter an all consuming grace overflowing with love from God for us. Love transforms us and we realize the fullness of his spirit and presence is never found or maintained by some legalistic behavior pattern on our part. Love is greater than what I do or could ever do to maintain a relationship with God. My relationship is never based by what I can do but only what God has done for me.

So how does non-dualistic thinking begin to process my spiritual life? I begin by letting go of my constant need to be right all the time and to be in control. I begin to let go of the need to impress others, to always elevate and compare myself as better than others all the time. Traveling to the center I find as the apostle Paul the grace to let go of my life to let the life of Christ consume my life. I find the true meaning of the cross that it not only represents the death of Christ, but death to my life and behaviors as well. I recognize as Dietrich Bonheoffer the fullness of life comes as grace bids me come and die. I must die to my way of thinking, die to my way of doing everything and come alive in God’s love and presence. In dying I come alive in the center of Christ’s heart and let His love, grace and mercy flow from me to others.

The image I see of centering love for me is an arrow going from the heart of God to my heart and then proceeding from my heart into the heart of others. When people see me they see the heart of God manifested in my life. Thus the heart of love becomes the heart of love in me and others around me. To be centered I must be like minded with Christ, I must die and let go of the false self, the ego. I must understand the root of all my dissatisfaction revolves around the ego and the false self. The essence of all healthy religion is to become united with the divine, that my heart and my life might be centered in the divine which is Christ.

In defense of our dualistic thinking we could not operate in this world without it. Every day we make decisions which are facilitated by this way of thinking. I have decisions to make every moment of the day whether to turn left, turn right, go straight ahead or stop.

Chapter Two: TIME TRAP

In simple terms man understands time has a beginning and end. Time begins for us the moment we are born and ends the moment we die. Time is both an enemy and friend. Time moves too fast when we are in the throes of romance or when we have some dreaded deadline to meet. It moves too slowly when waiting for some announcement of great importance. Time is an ever present aspect of our life. The stark reality for all of us is we are all present for a short moment and then in the twinkling of eye time is gone forever from this life.

Time can also be a trap which clouds our outlook and attitudes about life. Time is understood as being in the past, present or the future. Our perception of time moves in a straight line toward an ending point. We struggle for meaning and purpose to our existence for time is limited. Time is to be lived with all the gusto for our life is like a vapor of water quickly vanishing in the air.

Time is relative in relationship to the number of days in our life. A five year old child has a short number of days living in the past in comparison to the number of days potentially to be lived in the future. Likewise a hundred year old woman has lived most of her days in the past compared to the short number of days possible in her future.

So in chronological time how much of your life has been lived in the past and how much time do you realistically have to live in the future? What’s your future number five years, fifteen years or fifty?

How much time you have remaining in your life is a perplexing question? Let me pose an intriguing answer. Time if we possess any is measured only in the present or current moment. We may live our lives around the past or future, but they are only perceived dimensions of time. When Jesus says’ don’t worry about tomorrow He understood that tomorrow is perceived in the future which may never take place. Jesus also knew for all of us there will be a time we will have no more tomorrows.

Time is only a perception for past time is gone forever and future time is an illusion. If you don’t mind the pun, the preoccupation of the perception of time in our past or future can be very time consuming. The truth is we have absolutely no control over the time we seem to possess. (If I told you today you have a blood clot in your heart and it will be fatal within 48 hours how does it change your perception of time. How much does your past time matter, likewise if you have 48 hours to live what future time even 6 days, 6 weeks, 6 months, or 6 years matter?) The false self however doesn’t die easily it will continue fighting to the end denying its own impending doom.

So we find man lives most of his life not in the present moment but either trapped in the past or living for an unknown future. Time trapped man tends to live life either looking in the rear view mirror trying to figure out where they went wrong, or what they should have or could have done better. Likewise if man is not trapped in his past he seeks a future where he finds a nebulas happiness and contentment.

Man lives most of his life not in the present moment but projecting his life somewhere in the future. He has some unclear objective that when I make enough money I will be secure and happy. When I drive a certain kind of car or live in a certain type of house and neighborhood I will be accepted. You can understand (ego) time when we think in any qualifying thought I will be or would be happy. Those thoughts include things like when I get married or have a particular job or amount of money I will be happy, the list is endless.

Let me challenge you with a concept you will never be any happier than you are at this present moment. You will never be any more contented than you are at this present time in your life. Peace and contentment is never found in past or future experience.

The false self believes it controls time and of course everything else in life. YOU CONTROL NOTHING! If I asked, can you guarantee me you will be alive in a week, what would your answer be? Let me ask can you guarantee you will finish reading the next couple of pages or even the next two sentences without dying? No you can’t if you are honest. However, there is an astronomical probability you will read the next couple of pages without dying. The reality however is that you don’t know and can’t control how much time you have or don’t have. For that matter you may think you control your life and others, but you don’t. It is only the false ego that believes that it can dictate your future and control the destiny of your life and others around you. YOU CONTROL NOTHING!

So that being said, what impact would it have upon your life if you didn’t have to worry about being in control of your life and everyone else’s life? It would be liberating not to play god and give up of our perceived control of our self and others. What would it look like not to let your past determine your present contentment and outlook on life? What if you could turn loose of all of your regrets, mistakes, failures, broken dreams and turn loose of the unkind words or thoughts that grip your life?

What would it mean if you let go of your future dreams (nightmares) and concerns you try to control? What would it mean to be fully alive in the present moment? If you were to die this second in what state of mind would your perceived reality be? Would you die at peace, contented, fulfilled, grateful and hopeful or die frustrated, bitter or angry at the world and yourself?

I hope you can begin to see that you will never be anymore happy or contented as you are right now. Living in the past or living in the future can be a miserable way to live life. The only time is the present moment, nothing more, nothing less and truly it is all the time you have or ever will have. The way you live life today will probably be the way you will die with the same attitudes and thoughts you have today.

Instead of being trapped in time I want us to consider living in the moment. It is something lost and no longer practiced by many within Christianity. It is a lost gift of spiritual discipline. (In eastern thought and religion it is called mindfulness, or being awake, fully engaged in living life in the present moment.)

For the Christian it is experienced as walking in the spirit, praying without ceasing, or practicing the presence of God. It is an ever abiding awareness of the presence of God and the condition of our heart and life. It is life lived in the center of God’s will and is alive to everything that God’s life possesses for us every moment.

So in the moment and centered in God I simply let go of all the painful thoughts and even the happy thoughts of my past. I have no control over what thoughts I think I simply turn over those thoughts to God and let them go into to the center of His infinite love and compassion. When my mind is centered in the heart and mind of Jesus I no longer need to categorize, control, hide or deny negative thoughts which cloud my life and future. I am at peace when my heart finds its way and is centered in the heart of God. I simply let the thoughts and voices which create feelings of guilt, anger and despair be turned over to God so they no longer have a grip on my life. I let the painful voices give way to the peaceful and grateful thoughts and voices of a transformed mind in Christ. As the apostle Paul once again concluded, I have been crucified with Christ I no longer live, but Christ lives in me. I am fully alive in the moment and I no longer let the false self be in control of my life and thoughts. I let the false self die and let all my thoughts be lost in God. Present with God I acknowledge all of my thoughts as the good, the bad and the ugly and let them float harmlessly into the pure love of God and let them be consumed in the will of God for my life.

Chapter 3 Peaceful Mind, Peaceful Heart

CLEAR THINKING PEACEFUL MIND, CLEAR MIND, CLEAN MIND, RENEWED MIND, NOISE

Chapter 3 LETTING GO BEFORE WE DIE

All of us will eventually let go of every experience, emotion or thought we know in this life. We will turn loose of our grip on everything in this present life we hold dear. We brought nothing into this world and will take nothing out of this world. We will let go of our need to be right about everything. We will let go of our need to be better, smarter, and superior and in control of everyone. We will let go of our need to win at everything. We will let go of our need of accumulating more and more stuff. We will let go of every person who has ever wronged us or offended us. We will let go of our need for recognition and applause. You and I will let go of everything the moment we die.

So, if we are going to let go of everything when we die why do we have such a difficult time letting go of those things which seem to rob us of our peace today? In the New Testament Paul describes an inner struggle in his letter to the Roman church. “I do not understand what I do. For what I want to do I do not do, but what I hate I do. For I know that good itself does not dwell in me, that is, in my sinful nature. For I have the desire to do what is good, but I cannot carry it out.”Paul describes a battle raging for control of all our desires and deep feelings we have in our life. His understanding is we don’t actually control our desires and passions they control us. This battle is within every one of us. It is an internal struggle of a force or entity opposed to God’s will and nature. It is a dominant power we can’t see with our eyes, touch with our hands or taste with our tongue but we know it flows in our veins if we are honest with ourselves. It lays hidden deep in our soul and impacts and controls all of our actions and behavior.

Once again it is the false self and it has nothing to do with our body. It is that unseen part of us that makes us do what we do in our life. It fancies itself that it is in total control of our life. It acts out as if we are the master of our own fate and we can plan our own happiness and knows exactly what will make us happy. The deception is it falsely believes it can control our circumstances in life and find the success and fulfillment it desires.

The false self only sees itself in the best light and desires only what is best for it. Its underlying characteristic is totally a self centered obsession with itself. Its primary objective is self preservation, and lets no one get in its way of having everything it desires and believes it deserves to be fulfilled. This force defines what we like, what we want, and what we think. It believes it must control the course of our life. It believes what it desires can make us happy, contended and successful.

The lie of the ego is that it believes if given enough time it can bring fulfillment and happiness to our life. It survives by being right and superior to everyone around us. Likewise it never offends anyone, but is continually offended by others all the time. The ego is obsessed and never has enough stuff and believes if we only had more of everything we would be happier. So, more love, more money, a bigger house and newer car are the pathway of happiness.

The greatest lie of the ego however is it’s denial of death. The ego because we can think and live and breathe conjectures and plots out that it will live forever in spite of the obvious fact we are dying the moment we are born. The ego replacing God never comes to grips with its certain destruction. It is unwilling to accept we are going to die and let go of everything we have ever thought, wished, done or regretted.

We are going to let go of our grip on everything we thought we couldn’t live without in this life. Everyone will turn loose some sooner than later and that’s a guarantee.

The move to the center and heart of God can only be accomplished by letting go of everything we hold dear in this life. The sooner we turn loose and learn to let go of everything now the sooner we will experience genuine peace and freedom. Jesus fully recognized the condition of man’s life when he told the Father, not my will but your will be done. The false self leads man toward a path of destruction.

Letting go and surrendering of our will and life to be consumed in a love we can trust far more than ourselves.

The letting go process is a slow and agonizing process because I don’t want anything to take my power, my will, or control of my life from me. The ego hates anything that says it must change for any reason. The ego will do everything it can to mask itself as long as it doesn’t have to give up control. It will suffer, it will sacrifice it will pretend and will do our sorts of religious stuff. (1 Cor.13)It will go through all sorts of religious purity rites as long as it doesn’t have to give up control. Letting go of anything is not the prescription for getting ahead in this life and enjoying life. Letting go is the last thing that the ego is willing or wants to do. It would rather let you die of drugs, your anger, and the stress of working to find significance and security than give up control. It would rather you go through three or four marriages, three or four jobs, three or four DUIs and not have to change or give up control.

Here is the truly frightening thing concerning the false self. The false self would rather have us die in our hopelessness and pain than give up its power and control over us. It holds its grip on us till death. It will convince us we are right for being angry with the world, with others and God. The false self would rather us go to prison for life than let go of its anger and its resentment that it holds against others.

The ego is unwilling to let God or any other powers have control of it. It fights to the very end and destroys itself. We must let go of what the false self desires to find life and peace. There is no change and peace for our souls as long as the false self is in control. There is no change of heart as long as the mind is controlled by our ego. There is no change until we understand we are totally powerless to do anything with the ego in charge. Jesus let go of life to do the will of father and said, not my will be done but your will be done.

So letting go means letting go of the false self’s control and turning our will over to the will of God. So to find real peace and life and to be centered in the heart of Christ means you no longer have to be right all the time. What kind of immediate impact would it have on your marriage today if you didn’t have to be right all the time? What impact would have on churches today? What impact would it have on wars with people killing and hating each other over who is right? Jesus didn’t give the first commandment that you would be right about everything concerning your faith and your politics in your life. He said to love the Lord your God with all your heart, with your entire mind and with all of your soul.

Ever wonder why you don’t get along with people. Try giving up the need to win all the time and trying to be superior to everyone and a few people may actually like you. Give of the need to have more and more stuff and you might actually recognize fewer possessions really are the path to a contented life. Let go of those who have offended you for you owe it to yourself.

One of the last things to let go of can be combined as your resentments, your pain, your suffering. Most people reject God because of the question of why is there pain and suffering. At the end of life people are either generally grateful or resentful about life. Resentment is a condition of our heart which has the underlying belief life didn’t go as I had planned it. Life never goes as the way we plan