1 SunTours runs a risk by selling similar holidays tocustomers in different income brackets.

　　2 It is worth offering holidays at a discount to increase thenumber of bookings.

　　3 SunTours needs to reflect on its marketing methods if itwants to boost repeat custom.

　　4 It would be a good idea to sell holidays to locations whichother promoters have ignored.

　　5 SunTours has been disadvantaged by its approach in the past.

　　6 In certain locations, SunTours may be able to negotiate more favourable contracts.

　　7 There is an alternative to discount holidays that would be more satisfactory for SunTours'customers.

　　Four market experts offer advice to SunTours, the middle-market tour operator

　　A Robert Worth

　　Marketing to a wider audience could lead to more people buying direct from SunTours ratherthan going through travel agents, and the consequent reduction in agents' commissions mightboost company profits. Towards the end of the season, reducing the cost of holidays wouldattract last-minute customers, thus avoiding any possible loss on unfilled accommodation andflights. The company could also increase profits by selling more specialised holidays here in Britain,perhaps by offering breaks at historic sites and coastal destinations.

　　B Steven Worrel

　　Whether it's worth discounting surplus holidays is an arguable point, as it not only cuts intoprofits, but also results in budget-conscious holidaymakers being put next to SunTours' moreaffluent customers, thus damaging the brand. It may seem attractive at first because of tightmargins, but SunTours should think twice before taking up this option. Currently, SunTours isplanning to sell higher-margin holidays to previously 'unmarketed' destinations for which demand isgreater than supply. It is likely that accommodation providers in these emerging holidaydestinations will be more flexible when it comes to setting terms. The firm should go ahead with thispolicy.

　　C Ursula Cappalbo

　　Good risk management and higher sales can guarantee higher profits. Although SunTours hasalways been averse to planning, the company would in fact benefit from a risk model that forecaststhe impact of discounting on cash flow and profitability throughout the year. SunTours would thenbe able to change direction when things go wrong, as they inevitably do from time to time.Diversification can increase rather than spread risk, so caution is needed as the company entersregions where facilities for tourists are not yet fully developed. Targeting customers nearingretirement age, whose disposable income and leisure time are increasing, would be ideal.

　　D Gillian Wilmot

　　SunTours knows that good relationships with customers is the key to success in the travelbusiness. With this in mind, the company should consider that brochure mailings, unlike electroniccommunications, can attract customers and maximise year-round opportunity. They encouragesummer tourists to take another break and can even be used to send a thank-you letter toreturning customers. Selling holidays at a reduced price is definitely not a sensible option. A betterchoice would be value-added promotions which can improve profitability and build on SunTourscustomers' desire for high-quality service.