Building a deep understanding of the external business environment is crucial for a travel agency. Using a PEST analysis is one way to gain an understanding of the external business environment. For the travel agency business, it can give an understanding of social trends like people’s travel preferences or how they book flights. This then allows the business to offer customers what they want. In addition, knowledge of what is happening in the world economically helps them make decisions. For example, an understanding of the external business environment such as growth in the world economy could motivate a travel agency to offer luxury holiday packages to potential customers. In this way, analysing the external business environment can give a clear picture of one strategy a travel agency could use to stay competitive in the changing environment.
Drag the elements of PEEL onto the correct section of the example paragraph