Tour firms exist in the market to provider services to the public, however as they operate many challenges come their way. Therefore, it is upon the individual tour firm owner to find solutions to these problems to be able to succeed in the market. Some of the problems that a tour firm is likely to encounter in the market are internal such as poor managements. On the other hand, a tour firm can face external challenges like insecurity. The purpose of this article is to discuss some of the common challenges that most tour firms face in the market today. Company managers and owners will agree that these are some of the challenges they face in the market:
Stiff competition. Stiff competition is brought about the fact that there are many tour firms in the markets and almost all of them are offering similar services. The number of clients in market can be constant for a long time, this implies that during this period, there will be stiff competition between tour firms. In the market where there is stiff competition, only strong tour firms will succeed, the weak ones are more likely to collapse. Strong tour firms are those with enough capital, good networking, and uses modern technology, these are the only services providers that can face stiff competition in the market and emerge winners. Therefore, if you see a tour firm has collapsed in the market today, stiff competition may be one of the reasons.
Unfair State’s policies. The state has its rules and regulations that governs every company within its boundaries. Some of these laws may not be fair to one tour firm or another. Therefore, some of the tour firms that find the polices of the state unfair end up closing or face difficult as they operate in the market. Some of the unfair policies that state may pass are increased taxation, tour firms being limited in offering some services, and many more. Therefore, some of the tour firms that exist the market do so because the policies of the state are unfair to their operations. Some of the policies imposed by the state authorities are what triggers stiff competition between tour firms in the market. Therefore, if you see a tour firm closing down, one of the reasons may be unfair state’s policies.
Insufficient capital to boost the business. In a business there are some times it will boom and fall. During the boom, the tour firm will have many clients to serve and makes a lot of profit, but when the demand falls, the company will not make much. During the fall the tour firm is more likely to make loses because it will spend more and earn little. If the tour firm does not have enough capital to boost it during this period, then it is more likely to fail. For instance, during this period where the world faced corona virus, many tour firms closed due to insufficient capital.