Proposal to Improve Cruise Sales

proposal to Improve Cruise Sales Eloise Hurley ECO/561 March 14, 2011 Hector Morales Proposal to Improve Cruise Sales EZ break unfathomable is a home-based online leisure endure business. Sales consist of several travel harvests such(prenominal) as airfares, hotels, gondola car rentals, and cruises. void travel customers purchase closely of their travel products online and occasionally require assistance from travel agents. Airfare, hotel, and car rental sales are consistent and result in either a fixed commission or an mediocre commission rate of 10%. Cruise sales hover and result in an average commission rate of 12% to 15%. This proposal will demonstrate how EZ Travel Unlimited back end benefit from increasing cruise sales, specifically separate cruise sales. Market Structure and Product Elasticity The online travel assiduity is a monopolistic war-ridden market. Monopolistic competition mean many firms exist, differentiated products are sold, firms have some check into over price, firms can relatively easily enter the market, and gigantic non-price competition occurs (McConnell, Brue, Flynn, 2009). The online travel industry includes numerous firms (e.g. Expedia, Orbitz, Priceline, Hotwire, Cheap Tickets, etc.). Online travel companies sell numerous differentiated products (e.g.

airfare, hotel, car rental, cruises, etc.). Online travel companies can enter the online travel market relatively easily without needing portentous legal, technological, or financial obstacles. Online travel companies use non-price competition evasive action such as advertising (e.g. package deals, last-minute deals, etc.). EZ Travel Unlimited, home-based online leisure travel business, is in more of a rigorously competitive market. However, the company needs to understand the monopolistic competitive market of the entire online travel industry to be competitive. Leisure travel is a relatively elastic product. A product is relatively elastic when consumers are highly responsive to price... If you need to get a full essay, order it on our website: Ordercustompaper.com

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