Comprehensive Report: Demand, Supply, and Strategies in Tourism Sector

This report provides an in-depth analysis of the travel and tourism sector, specifically focusing on the factors influencing demand and supply within the context of five-star luxury hotels. It examines the impact of technological advancements, globalization, and macroeconomic factors on consumer demand, highlighting how these elements shape the industry. The report further explores the changes in supply that hotels can implement to meet these evolving demands, including provisions, product diversification, technological implementations, and strategies for managing seasonality. The analysis emphasizes the importance of understanding and adapting to these factors to ensure the long-term profitability and competitiveness of five-star hotels within the dynamic travel and tourism landscape. The report uses research to illustrate how five star hotels can adapt to the changing demands of the sector.

Running Head: TRAVEL AND TOURISM SECTOR
Travel and Tourism Sector

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Table of Contents
Introduction................................................................................................................................2
3.1 Factors affecting tourism demands......................................................................................2
Technological.........................................................................................................................2
Globalization..........................................................................................................................3
Macro-economy......................................................................................................................3
3.2 Changes in supply to meet effects of demands....................................................................4
Provisions...............................................................................................................................4
Product types..........................................................................................................................4
Technological implements......................................................................................................4
Seasonality..........................................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
In current scenario, travel and tourism is the largest service industry in UK. The major aim of
this is to promote and develop tourism sector and competitiveness of UK as destination and
enhance the existing tourism goods and services for ensuring the employment and economic
growth. The main aim of this report is to create understanding about the factors that affect the
supply and demand of the larger five-star luxury hotels. It also demonstrates the strategies
that can be practiced by five-star luxury hotels.
3.1 Factors affecting tourism demands
The challenging atmosphere of the tourism industry is being influenced by the demand of the
consumer. Larger five-star hotels have needed to create the understanding about the factors
that can influence the demand of an organization for accomplishing the specified objectives.
Five-starhotels also develop their understanding regarding the strategies that will support to
deal with the negative factors of the tourism. It can support to attain the organization task
along with improving the productivity of firm in the long-run. The following factors affect
the tourism demand:
Technological
The alteration the technology can reshape the business environment to influence the
consumer and fulfill their consumption level. Visitors can expect the easy payment service
and management to buy in the travel. They are believed in the online system and safety
equipment. In case, the larger five-star hotel does not offer the online system to their
consumer then it can decline the demand for tourism. In the current scenario, the consumer
can expect the web interface and easy management to have the tourism services. The
technical alterations can consider service related to the comfort of the consumer due to
increasing the business efficiency. In addition, it can also be said that the adoption of modern
technology in the tourism can be expensive for an organization. However, the technical

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modification entails the application of security, entertainment, and safety-related services in
the tourism and travel.
Consumers are expecting the advanced technology along with efficient goods and services by
the larger five-star hotel.
Globalization
Globalization can also affect the tourism and accomplish the objectives of the companyin the
international market. The extension of tourism in the many countries can provide the
opportunity to increase the scopes as well as competition. Globalization has enabled the
consumers to address the better return on their investment that will create the complexity to
the organization due to offering the quality services at the appropriate price. Moreover, the
larger five-star hotels have the opportunityto get the benefit at the international level however
it can create the competition and rapid modification in the consumer's demands such as more
luxury, service control, adventurer destination choices, and innovative culture are a negative
impact on the business.
Macro-economy
The modification in the rate of currency exchange can also influence the demand for tourism.
Tourist can expect to the stable currency rate and higher exchange amount at the time of visit
the tourist place. The currency interest rate can divert consumer’s decision to contribute to
the tourism. Larger five-star hotels have extension in various countries to influence the
consumers towards the tourism. An organization can also create a depth understanding about
macroeconomic factors such as currency exchange rate, inflation rate, disposal income of
consumers, and interest in pricing and purchases for easily enhancing the consumers in travel
and tourism. The cost of travel facility or services can affect the inflation as well as taxes.
The incomes sources of people are being varied but the disposable income is enhancing in the
current living standard. In addition, it can also be said the higher disposal income can slope

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the consumers to enhance the demand for tourism services for visiting the attractive
destination (Ridderstaat, et al., 2014).
3.2 Changes in supply to meet effects of demands
The organization can sustain in the market by enhancing the level of consumer satisfaction
and opportunities systematically. A Larger five-star hotel provides the goods and services on
behalf of consumer demand to get the higher profit.
Provisions
An organization should provide the quality food and accommodation with attractive tourism
offers for influencing a large number of consumers. A larger five-star hotel offers the
delivery of food and housing the quality services to their potential consumers. The quality
and time delivery factors can also be involved in provision.
Product types
A larger five-star hotel has classified the products on behalf of consumer’s income, interest,
and convenience to cover a larger number of consumers. A 5 start hotel can also classify the
services into many phases such as special, regular, sports tourism, and adventure. The hotel
segment services on behalf of the quality, comfort, and supplementary needs. The goods and
services are developed for financial price value, therefore, a large number of consumers can
register themselves for travel and tourism.
Technological implements
The technical implementation can also be imperative for offering the safety security in the
delivery of services in the tourism sector. An organization should use the online services to
provide many consumer services related to registration, availability of resources, and
payment. The hotel should imply the web and mobile services to its consumers for satisfying
a large number of consumers by delivering the quality product and services in the specified
time.

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Seasonality
An organization should address the specific season to offer the seasonable packages to the
potential consumers for enhancing the profitability in the marketplace. The seasonal package
can are implied to attain the specified goal in estimated time. five-star hotel provides many
destinations services to the potential consumers can be supportive to take competitive
advantages (Tribe, 2015).
Conclusion
From the above analysis, it can be concluded that larger five-star hotel can be influenced by
many factors such as technology, globalization, and Macro-economy. It can also be
summarized that there are some elements that affect the demand for tourism such as
provisions, product types, technological implements, and seasonality. It can direct impact on
the profitability in long-term.

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References
Ridderstaat, J., Oduber, M., Croes, R., Nijkamp, P., & Martens, P. (2014). Impacts of
seasonal patterns of climate on recurrent fluctuations in tourism demand: Evidence
from Aruba. Tourism Management, 41, 245-256.
Tribe, J. (2015). The economics of recreation, leisure, and tourism. UK: Rutledge.