Chapter 7

CASE PROBLEMS

1.

Joan S. and her husband are planning a vacation to a destination about which they know very little. They have seen an exciting ad for this area in a travel magazine. They respond to the ad, and subsequently they receive a group of fascinating brochures describing all the attractions, accommodations, shops, climate, and other allures. In the same magazine they saw an ad for an airline that serves this destination, including Web site information for reservations. Should they make their own reservations or should they seek the help of a travel agency?

3.

A prominent national columnist recently advised his readers that they should bypass their local travel agencies and obtain their cruise vacations directly from the suppliers by phone or Internet. This recommendation was intended to save the public money because, he explained, ship lines pay commissions to travel agencies whenever a sale is made. What’s wrong with such advice?

4.

An international tour company partnership is owned by Bill and Jane W. Bill is a rather deliberate, cautious type; Jane tends to be more aggressive and promotional in her day-to-day business relationships. The company’s volume of business has declined somewhat during the past two years. Considering the decline, the couple recently had an extended discussion as to possible steps that might increase tour sales. Jane finally proposed that they should contact some of the largest travel agency cooperatives, also known as co-ops, consortia, franchisers, joint marketing organizations, stockholder licensee groups, and individual and corporate-owned chains. Jane thought that perhaps if their company could become a so-called preferred supplier to one or several of these groups, they would then increase their business considerably. Almost all of their tours are sold through retail travel agencies. Bill listened to this suggestion and then said, “I doubt that this idea would do us any good. The co-op movement is not well established, and a lot of agencies are not members at all.” Who’s right? Why? Explain your position.

Chaper 8

1.

Many of the states in the United States are experiencing budget problems. A number of legislatures are considering legalizing gaming (gambling). Some states have already done so. As a state representative, you have decided to introduce legislation legalizing gaming to bolster your state’s budget. What would be your arguments supporting this bill? What opposition would you expect?