External analysis of culinary tourism Essay Example

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PESTLE Analysis

Political factors

Political stability of any given place would highly affect the operation of Travelchef to a great extent. This is because if a region is politically stable it attracts more visitors working to the benefit of Travelchef. Additionally, if tax policies are so high, it might work to the detriment of the entity since it will have to charge more for its services to meet the tax policies while at the same time make profit. This could in turn deter tourists from choosing Travelchef based on the price for their services culminating to losses for the company (Bowhill 331)

Economic factors

Culinary tourism is also dependent on the prevailing economic conditions of any given region. This is in relation to economic growth of a given region and its ability to attract business entities such as Travelchef. A stable economic growth means that there is always an influx in number of visitors of which Travelchef can greatly benefit from. Since Travelchef is a startup business, it requires capital which would mean obtaining loans for startup. If the interest rates are favorable, it then becomes easier to establish the company and still be able to meet payments (Bowhill 336)

Social factors

Since culinary tourism is food and drinks oriented, it means that any entity should be able to capture the culture of the region. This can only be possible if the existing culture has rich and distinct food varieties. Therefore, this determines the areas in which Travelchef will establish its business premises. Additionally, age distribution greatly determines the establishment of Travelchef. This is because a region with more adults than children is favorable than a region with more children than adults. This is because adults are the main target for Travelchef as they have income and can therefore meet the charges set by Travelchef (Henry 55).

Technological factors

According to Henry (58), technological infrastructure also plays a great role in the establishment culinary tourism ventures such as Travelchef. One such technological advancement is access to the internet, which would come in handy in portraying the image of Travelchef to the outside world. Additionally, if tourists are capable of booking online it becomes easier for Travelchef to make the necessary arrangements. This is because they have the number of tourists visiting thus ensuring that they do not underestimate or overestimate their budget to accommodate the tourists.

Environmental factors

Weather is probably one of the main factors when it comes to tourism and to some extent culinary tourism. This is because weather determines the peak and off peak seasons. Additionally, weather conditions determine the type of food that can be served at a particular time. Therefore, with the knowledge to climate patterns and availability of certain foods then it becomes easier for Travelchef to make the necessary arrangement that would allow it to capitalize on weather conditions This thus helps the business venture make cost estimates (Henry 62)

Legal factors

Legal factors such as employment laws also play a huge role in determining the cost of operations. This is because they determine the workforce and how such workforce should be treated. Additionally, since Travelchef is more concern with food and drinks then it will be required to abide closely to the laws relating to Health and Safety in the region. Such laws should be flexible in that they should not make it difficult to establish a business entity dealing with food and drinks (Henry 65)

Porter’s Five Forces

Threat of entry

According to Hill and Jones (45), in any market a business entity is always faced with the challenges of making it in the market. This translates to what is referred to as the threat of entry and is coupled by various factors. One factor is brand identity, meaning that there are entities that have made their stance in the market. In relation to Travelchef, there are certain entities that have been in existence in the field of culinary tourism. Such entities have become synonymous with most tourists and could therefore pose great challenges to Travelchef in trying to win over tourists. Additionally, Travelchef has to ensure that it is capable of providing unique services when compared to its competitors. However, if there is no uniqueness then it becomes difficult for Travelchef to survive in the new market. Capital is one other thing that Travelchef has to put in mind since it has to make purchases to all the equipment needed in the preparation of meals. Additionally, government policies such as laws relating to tourism and establishment of tourism entities also play a significant role on determining new entrants. If the tourism laws are so rigid, it may deter new entrants such as Travelchef as this would work against considering they are new entrants into the field.

The power of suppliers

Suppliers also play a great role in every given market as they are can shift the bargaining powers to their side thus dictating the market. In culinary tourism where Travelchef wishes to venture in tour operators is the main chain of supply. Tour operators are normally tasked with organizing holiday packages for tourists and liaise with tourism entities such as Travelchef. Therefore, this shows that that tour operators work as middlemen between tourists and tourism entities such as Travelchef. This increases their bargaining power as they can make recommendations to tourists as to the places and entities they should visit. Therefore, this could be harmful to startup businesses such as Travelchef as they may be bossed around by tour operators all in the name of customers. However, the bargaining power of tour operators dwindles if they are saturated in the market. This is because entities such as Travelchef have multiple choices to choose from as they try to get hold of customers (McGuigan, Moyer and Harris 385)

The power of buyers

Buyers in this case refer to tourists who visit entities such as Travelchef with an aim of getting services in return for their money. Buyers can sometime influence the operations of any given business in any given market. This is because most entities are buyer oriented meaning that they work to satisfy the customers. Therefore, this gives buyers some form of negotiating leverage in trying to influence the price for services rendered. Buyers can have a negotiating leverage depending on their number. Culinary tourism is a new concept in tourism meaning that not many are acquainted to it. This may work against entities such as Travelchef as buyers will have leverage in manipulating the price for the services offered. Business entities venturing in culinary tourism such as Travelchef for fear of going out of business are left with no option but to abide by the wishes of the few customers. Additionally, if buyers, which in this case refer to tourist, are capable of obtaining the same services offered by Travelchef from other entities and other tourism concepts it may pose a challenge. This is because the presence of substitutes would work against Travelchef as it would be forced to whatever it can to hang onto its customers. (Hill and Jones 53)

Threat of substitutes

According to McGuigan, Moyer and Harris (391) this is another factor that has a great impact on any business entity. Presence of substitutes is of great detriment in the realization of profit in any given market since they determine the price mark. Culinary tourism concentrates more on foods and wines, but if the customer s are able to obtain both foods and wines from other tourism concepts such as Safari then it cripples culinary tourism. This shows that culinary tourism is made to compete with other tourism concepts whose main focus is not on food and drinks but offer them and at a cheaper and convenient price to the customers. Additionally, the fact that such concepts offer more than just food and drinks is appealing to customers than entities concentrating on culinary tourism. In addition to these, presence of more than one entity offering culinary tourism is also detrimental as customers can always substitute one entity for the other. Therefore, Travelchef has to ensure that it demonstrates to its intended customers that it offers better services when compared to the substitute.

Rivalry among existing competitors

Culinary tourism being a new concept means that there exists an immense competition among the already existing business entities. This is because each entity wishes to capitalize on the already existing but small market. However, competition may be unfavorable to startup businesses such as travelchef. This is because entities that that been in existence have already established a clientele base for themselves. This could also be attributed to entities that have created a brand for themselves and would be difficult to compete with such brand entities. Additionally, the number of competitors in the market also plays a great role in predicting the survival of new entrants such as Travelchef. This is because a market with few competitors will most likely be dominated by large existing entities, unlike a market with more competitors. However, for Travelchef to compete with large existing firms it could adopt certain strategies such as lowering their price, thus attracting tourists who are repelled by high prices. (Hill and Jones 49)


Based on Porter’s five forces it is clearly visible that new entrants in any given market face very strong forces. Travelchef being a new entrant into the field is already faced with various hurdles ranging from capital to brand identity as it tries to win customers. Additionally, presence of other factors such as substitutes also greatly hinders the establishment and progression of such business entities. In addition to these, competition from existing and large companies also poses a challenge to the establishment of Travelchef as it competes for the customers. Therefore, based on Porter’s five forces it is clear that Travelchef is faced with strong forces as a startup company and is required to tackle a lot to make a name for itself in the industry

Competitor Analysis

Gourmet on Tour Culinary Adventures

This is an online travel agency that has ventured into the field of tourism more so culinary tourism. The agency has its headquarters in London, England. The main aim of the agency is to provide tourists with a chance of tasting some of the most exquisite foods and drinks that Europe, Asia, USA and parts of Africa have to offer. The agency has selected some of the exotic locations for its customers based on the food and drinks in these regions. These ensure that customers get a taste of food they are not likely to taste anywhere. The agency also allows its customers to join in the cooking as they learn how to prepare some of the meals. This initiative has made the agency a favorite for many. The agency has gone further by providing packages targeting from single people, couples and even corporates thus increasing their clientele base. However, the agency inability to provide more destinations in Africa since it only caters for Morocco makes it lose some clients who may wish to sample foods from others parts of Africa. (Gourme on tour, “About US”)

Experience Days

Experience Days is an agency that has ventured into culinary tourism by providing its clients the opportunity of sampling some of the delicacies America has to offer. The agency makes use of internet in trying to reach out for customers by way of company websites. The agency has concentrated its resources in some of the best locations America has to offer in relation to food and wine. This ability to locate areas of interest in a vast region has made it possible to appeal to people living in America. The agency also ventures in drinks mostly beer, which is a break from the traditional wine tasting. This brings a new twist into its activities and has attracted more visitors especially those who have a passion for beer. However, the fact that the agency is concentrated in providing tours around USA is detrimental to its progress. This is because competition is high and it is unlikely to offer a new experience especially to those living in their prescribed destinations. (Experience Days 2011, “About US”)

Unison Turkey travel & tours

This is an agency which is based in Turkey that also ventures in culinary tourism. The agency has decided to focus on Turkey, mainly because of the rich cultural heritage that is rife in turkey which can be attributed to its geographical location. Apart from tasting foods the agency also gives its customers the opportunity to learn how to prepare Turkish cuisines. Turkey offers both European and Asian cousins which makes it a perfect spot for food lovers. The agency has handpicked regions around Turkey where it perceives tourists are likely to benefit and learn more from the existing cultures. However, this could be detrimental to Turkish people as the agency has more like abandoned Turkish people by not providing destinations other than Turkey. Additionally, the agency does not stipulate the various packages it offers something that could deter many as they might feel the agency does not meet their needs. (Unison Turkey 2010, “About US”)


Bowhill, Bruce. Business Planning and Control: Integrating Accounting, Strategy, and People. New Jersey: John Wiley & Sons. 2008. Print.

Experience Days. ‘About US.’ Experience Days. 2011. Web. 29 Apr. 2013. http://www.xperiencedays.com/about_us.asp

Gourmet on Tour. ‘About Us.’ Gourmet on Tour. 2009. Web. 27 Apr. 2013. http://www.gourmetontour.com/?gclid=CI2VzMCotrcCFeVV4god_zUAgQ

Hill, Charles W.L. and Jones, Gareth R. Strategic Management: An Intergrated Approach. Connecticut: Cengage Learning, 2007. Print.

Henry Anthony. Understanding strategic management. Oxford: Oxford University Press, 2008. Print.

McGuigan, James R, Moyer Charles R, and Harris Fredrick H. Managerial Economics: Applications, Strategy, and Tactics. 11th ed. Connecticut: Cengange Learning, 2007. Print.

Unison Turkey. ‘About Us’. Unison Turkey 2010. Web. 29 Apr. 2013. http://leisure.unisonturkey.com/tourtype/alltours/culinary-tours/