Reference no: EM133232382

Which of the following three proposed courses of action should the tourism company can pursue for future profitability? Why?

1. Marketing (advertising approach) strategy: Using a budget range of $100,000, to $150,000.

The benefit of this strategy is that the average cost to acquire a new customer could be determined over time, and the advertising campaigns could be increased or decreased over time to fit the available resources in the company's sales team. This marketing-based strategy would almost certainly provide a quicker payback period.

2. Optimization (using software) strategy: Using a budget of $100,000.

The vision of having the best customer service necessitated hiring more ops managers than was standard for the industry. But to improve efficiency, the company planned personalized customer relationship management software that would inevitably create the customer travel documents and engage in automated client communications, potentially saving hours of labor from every client inquiry and booking. But it comes with some risks, such as the software not performing as expected or employees not finding value in the software.

3. Public Relations strategy: Using a budget of $100,000 a year or higher.

This approach had the most prolonged payback period, a longer-lasting boost to reputation, and the highest risk. But it was likely to be higher-quality leads that did not burden the sales team's time and effort. It could also raise the company's visibility in the tour operator industry.