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The Australian tourism industry has been experiencing difficult demand condition largely due to subdued economic conditions in chief export markets, high exchange rate, slow growth in spending by households and repeated downturn in the resource investment of the travel and tourism sector. However, the demand for domestic tourism has strongly increased since 2014 as individuals employed in both public and private sector choose to undertake leisure travel for business related and personal recreation. Despite of the fact that Australian tourism in largely dominated by domestic tourism activity, the total revenue earned by the nation extended beyond $18 billion in 2013-2014 that ranked tourism as Australia’s most valuable export after iron ore and coal (Australian Government, 2013).

Background Of The Company

INTREPID TRAVEL is a small travel ad tour company that was launched in 1991 by Darrell Wade. The head office of the company is located in Australia. The official website of the company has received exceptional growth in the last 21 years. Strategic market expansion policies helped the company to make the most of mergers, acquisitions and joint ventures to represent itself in 22 countries. The company offers more than 800 different tours in multiple destinations of the world. The company specializes in customized tours, organized tours and private tours that usually attract a large number of tourists by offering a discount of 10%. The company has emerged as a responsible tour operator that allows tourists to experience adventurous holidays in small groups. At present, Intrepid Travel leads 100,000 travellers across the globe and ensures providing tourists with carefully designed packages, themes and trip styles to create memorable grassroots travel experience.

The company combines entrepreneurial ambitions with wanderlust and creates customized holiday packages to help the people who love to escape from the monotony of life. The company has created a special niche in the market by providing assistance to people who lacked the confidence of backpacking by themselves. The company provides spacious accommodation facilities and well-organized transfer services to millions of tourists and creates a loyal customer base. The company didn’t approach the travel industry in the orthodox manner. While other tour operators were outsourcing their trips to companies located in overseas, Intrepid Travels began its services by buying its own hotes and transport facilities to provide unparalleled service in the tourism industry.

PEST Analysis:






A PEST (Political, Economic, Social and Technological) analysis reveals the ways in which the company incorporates contemporary trends to survive in an industry that is dominated by leading giants like Thomas Cook, TUI, etc. With the help of this analysis, the company would make necessary amendments in their existing business processes and product offerings. 

  • Political Factors:The services provided by the company are largely regulated by factors such as political instability, terrorism, warfare or violence that negatively affects the development of the company. Rapid change in travelling rules, political unrest, strikes and cold war creates negative publicityand discourages tourists from undertaking travels and tours. The investment that the company brings to the country is reduced as lesser number of tourists opts for leisure travels (Nunkooet al., 2013). Therefore, stability in the political scenario of Australia offers various growth and sustainability to Intrepid Travel

  • Economic Factors: The travel and tourism sector is renowned for paying its employees better than the payment made by business organizations that function in other sectors. The company makes sufficient profit by attracting clients who have higher disposable income. It also makes the most of the changing lifestyle of the global travellers and provides them with customized packages (Mosedaleet al., 2010). Fluctuating currency rates, oil price and increasing rate of unemployment in Australia has a negative impact on the earnings of the company.

  • Social Factors:As a company that functions in the travel and tourism sector, Intrepid Travels should respect the social norms and values of every customer. The social factors include cultural and demographic aspects of the external environment of the company. The company emphasizes upon population growth rate, health consciousness, career attitudes and importance of safety measures while visiting a location. The management of the company should promote the local culture and highlight the societal factors of Australia to garner the interest of the tourists.

  • Technological Factors:The company’s technological factors comprise of reduction in efficient production level, low barriers to entry in the Australian market, outsourcing decisions of the company, etc. As a leading Australian travel and tour company, Intrepid Travels maintains a strong online presence, implements latest technological advancements to convey information through social media and makes efficient use of television, call centres, etc. A strong online presence of the company assists in appealing to travellers from around the world (Gretze, et al., 2015).The management of the company should make use of technology to promote sustainability, which will help in attracting more tourists.



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