Stena Line SWOT and PESTLE Analysis

Strength

1. The company operates in both passenger and freight segments, thereby reducing its reliance on a single market: Ferry revenues are generated from three main sources- ticket sales, freight haulage and onboard sales. Income generated through freight haulage mainly comprises of revenue generated from freight traffic and truck traffic. Ticket sales include revenue from tickets for private individuals and private cars, package/charter trips and hotel accommodation. onboard sales, mainly include revenue from shops, restaurants, bars and gaming. Stena line offers a wide range of products to its customers as part of its onboard shopping experience. These products include fragrances and confectionery to electronics, alcohol, and gifts.

2. The company has a modern fleet of vessels, providing comfort and efficiency to its customers: Stena Line is well underway in modernising its large European fleet of ferries. In total, five next-generation E-Flexer ferries are expected to join their fleet. Their new vessels will be among the most advanced and energy-efficient RoPax ferries in operation and signify a major investment in becoming the world's most sustainable ferry company. Stena Estrid was the first of the five new next-generation ferries that Stena Line had ordered. Stena Estrid started operating on the Irish sea in the beginning of 2020. In May 2022, the RoPax vessel Stena Estelle was delivered from the CMI Jinling Weihai shipyard. Stena Estelle operates the Karlskrona–Gdynia route within Stena Line. In September 2022, the RoPax vessel Stena Ebba was delivered from the CMI Jinling Weihai shipyard. Stena Ebba started to operate the Karlskrona– Gdynia route for Stena Line in January 2023. The three new vessels have been highly appreciated by the customers of Stena Line and have successfully served several different routes, a proof of their flexibility.

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Weakness

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Opportunity

1. Investments to modernize ferry routes and enable multi-region expansions: Stena Line’s investment in modernizing the ferry route includes a new ferry terminal in Gdynia, with capacity for larger vessels and the opportunity to develop intermodal solutions through proximity to railway track. The strengthening of the connection between Sweden and Poland is an example of how Stena Line is meeting the increasing demand from customers in the southern and eastern Baltic region. The investments in the southern Baltic Sea also made it possible to strengthen the route between Ireland and France. Stena Vision, which has been in operation on the Karlskrona–Gdynia route, will be relocated to Rosslare–Cherbourg. This brings a significant increase in capacity for this route, particularly on the passenger side.

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Threat

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Political

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Economic

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Social

1. Increase in Post-Covid ‘revenge travel’: Revenge travel refers to the pent-up demand for travel experiences that have been postponed or canceled during the pandemic. It is a phenomenon where individuals who have been restricted from traveling for an extended period seek to make up for lost time by embarking on more frequent, longer, or more luxurious trips.Several factors contribute to the increase in revenge travel. Firstly, there is a strong desire to break free from the monotony and confinement of lockdowns and travel restrictions. People are seeking new experiences, adventure, and a sense of normalcy that travel provides. Additionally, the widespread vaccination campaigns have provided a level of confidence and safety assurance for travelers. With the reduction in COVID-19 cases and the implementation of health and safety protocols, travelers feel more comfortable venturing out and exploring destinations.

2. Growing tourism industry to drive growth: Tourism contributes significantly to global GDP and job creation. The World Travel & Tourism Council’s 2023 Economic Impact Research (EIR) today shows the Travel & Tourism sector is closing in on its 2019 peak, recovering by more than 95%. In 2023, the sector is forecast to reach $9.5TN, just 5% below 2019 pre-pandemic levels when travel was at its highest. 34 countries have already exceeded 2019 levels. In 2021 the global sector grew 24.7% year-on-year, and last year it grew a further 22% to reach a GDP contribution of $7. 7TN.The number of international tourist arrivals has been steadily increasing. In the first 3 months of 2023, the UN World Tourism Organization (UNWTO) recorded 235 million international tourist arrivals, which is more than double the same period of 2022. Revised data for 2022 shows over 960 million tourists travelling internationally last year, meaning two-thirds (66%) of pre-pandemic numbers were recovered.

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Technological

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Legal

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Environmental

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