Business overview of reliance travel agency

Business overview of reliance travel agency Reliance travel agency established since 1969 in the forefront of the Travel & Tourism business and is a leading Travel Management Company in Malaysia and is the first Tour and Travel Company listed on the KLSE (1993). Brand value for the company is Trust, Speed and Choice. They specialize in travel package around the globe with experience and quality service Reliance travel network expand to more than 200 destinations in locally and overseas. They provided widest choice of travel destination with great service value such as independent tour bookings, fight reservations, airline ticketing, accommodation bookings, customized tour package and car hire. Reliance senior management team is composed of professional with extensive experience from all aspect in travel field. Besides, with excellent relationship with airlines and travel suppliers, they can provide quality standard service with pair pricing that satisfied their customers. For Reliance, customer satisfaction is the most valuab le asset. Vision To be international well known travel agency brand by serve amazing journey destination and providing fun, leisure, holidays and vacations to customers (Reliance Travel, 2008-2010) 1.1 PESTEL Political Factors Government Policies Reliance has to obey policies of the government where they run their business activities. When nation or foreign company invest in Malaysia, Malaysia government will support them and welcomed their investment by provides many incentives for company that operating in Malaysia. Since the tourism industry is one of the top priorities, they have a bright future operating in Malaysia. Political Stability Political stability in Malaysia creates an opportunity for Reliance to expand their business worldwide. Reliance famous in many countries because of their brand value Trust, Speed and Choice. For political stability companies, represents an attractive expansion opportunity. With good brand value and political stability, this will help to increas e profit of Reliance as well. Economic Factor Malaysia government provides many incentives to national and foreign companies to stimulate further economic growth. Besides, inflation in Malaysia is very low because government controlling the situation cautiously. The latest report of inflation rate is Malaysia was 1.90%, reported in July 2010. The average inflation rate in Malaysia from 2005 until 2010 was 2.77 percent reaching an historical high of 8.50 percent in July of 2008 and a record low of -2.40 percent in July of 2009.   [ 1 ]    Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 1.30 1.20 1.30 1.50 1.60 1.70 1.90                2009 3.90 3.70 3.50 3.00 2.40 -1.40 -2.40 -2.40 -2.00 -1.50 -0.10 1.10 2008 2.30 2.70 2.80 3.00 3.80 7.70 8.50 8.50 8.20 7.60 5.70 4.40 * The table above displays the monthly average Source: Trading Economic, Inflation Rate 2010 If there is economic growth in the country and per capital income is increasing due to increase in GDP will create an opportunity for Reliance. This is because purchasing power of the people will increase and they can spend more on purchasing. There is a down fall in the economy of many countries. Growing inflation rate and unemployment rate has reduced the purchasing power of the people. There are many benefits that tourism industry brings to our economy. First of all, when governments promote tourism industry in Malaysia, it will bring foreign currency and generate wealth for country. Besides, it also helps to provide job opportunities and helps economies at district levels, such as improving urban and rural areas which in turn stimulates new business enterprises and promotes a more positive image in an area. For an example, when tourist come to visit Malaysia, their will bring business to Malaysia. This will help to create job opportunities and governments also will develop more infrastructures such as leisure mall to attract more tourists.