Tourism Industry Challenges and Trends

This assignment delves into the multifaceted world of contemporary tourism. It examines pressing issues such as sustainability concerns, the influence of technology, and the evolving cultural landscape of travel. Students are expected to analyze scholarly articles and online resources to understand the complexities of these challenges and potential solutions for a more responsible and sustainable future in tourism.

CONTEMPORARY ISSUES
IN TRAVEL AND TOURISM
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Issues currently driving change in the travel and tourism sector.....................................3
1.2 Analysing different issues................................................................................................4
TASK 2............................................................................................................................................5
2.1 Current trends influencing change in the travel and tourism sector.................................5
2.2 Current trend prevailing in Brazil.....................................................................................6
TASK 3............................................................................................................................................7
3.1 Travel and tourism businesses could respond to change..................................................7
3.2 Developing strategies.......................................................................................................9
3.3 Justification for strategies...............................................................................................10
TASK 4..........................................................................................................................................11
4.1 Impacts on the performance of travel and tourism.........................................................11
4.2 Consequences of firms failing to response to the changing needs.................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Travel and tourism is one of the most leading sectors in the national and international
market. The main reason of emerging tourism sector is determined as the rising aims of
entertaining and exploring new places. It is ascertained as the source of gaining high level of
income by the country and its government (Swarbrooke and Horner, 2012). Similar to this, the
report is furnishing fruitful information about the current trend of travel and tourism in Brazil. In
addition, the report is also specifying the factors related to changes and its impacts on the
business related to tourism industry. The report is also based on tourism business of First Choice
which is providing range of services to all the tourists who focus on travelling in various
countries for either business purpose or spending leisure time.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
Tourism sector in Brazil is determined as one of the most growing sectors and key factor
of gaining economy value for its several regions. The country offers a wide range of
accommodation, catering, transportation and other facilities to all the domestic and international
tourists. It provides a combination of ecotourism and natural areas for exploring new places by
one with friends, families and belongings (Cooper and Hall, 2012). The country is mainly
famous for beaches, adventure travel, historical places and cultural beliefs which include
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Amazon rainforest, Rio de Janerio, Sao Paila City and Santa Catarina. But still, the country faces
a great influence from some factors that are currently changing the market of travel and tourism,
that are: Technological development – It is determined that technology has its major impact on
elements related with the travel and tourism sector. The rising preference of technological
advancements has increased the strong connectivity among the countries and people.
They are becoming aware and cognizance for searching new destinations and attractive
places (Evans, Stonehouse and Campbell, 2012). Along with this, rising social media and
online market presence also improves the tourism ratio in terms of the tourists. Rising security – Rise in terrorist activities has forced the government of many countries
to level the level of safety arrangements for making better environment for their society
and other communities. Enhancing rate of tourists and preference of tourist destination
are directing them to implement strong safety measures that are effective in decreasing
the impact and number of terrorist activities (Some of the Major Current Issues
Confronting Tourism. 2016). The incident like 9/11 attacks has influenced the market of
tourists and airline industry which eventually results a negative response from all over the
world.
 Rising environmental awareness – It is the main force that drives change in the overall
rate and level of travel and tourism in various countries. The environmental attractions
and its contribution help in achieving the interest of many travellers and visitors. Thus, it
forces emphasize on the government and their local authorities to create and develop a
nature that is helpful in improving green tourism of the country.
1.2 Analysing different issues
It is witnessed that there are many issues related with the country's capabilities and
environment that presently affects the tourist market of Brazil. In that context, representatives of
government are responsible to make amendments in order to reduce the level of such impacts
and issues. Brazil generates billions of revenue every year from international tourist which is
also a great source of contributing in its overall income (Dickinson, Lumsdon and Robbins,
2011). By analysing the world tourism report and Brazil present tourism market, it has been
ascertained that the country is facing great downfall in the rate of tourists from past 4 years
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which diminishes their rank in the concerned sector. However, following are determined as the
main factors/areas that mostly affect the travel and tourism sector of the cited country: Terrorism and crime –Rise in the number of incidence, activities of terrorism and violent
crime that includes muggings, home invasions, armed robbery and sexual assault is
termed as a significant issue which affects the travel and tourism sector. Moreover, such
activities are particularly higher in Rio de Janeiro, Sao Paulo, Salvador and other tourist
destinations (Sharpley and Stone, 2010). It has also been addressed that violence and
criminal actions are often encountered by the visitors which involve firearms and robbery
that can occur anywhere and at any time in Brazil.
 Infectious diseases – The increasing rate of health issues like water-borne and food-borne
and also the infectious diseases like cholera, typhoid, hepatitis and rabies are prevailing
in Brazil with more serious happenings. Thus, these generally lead to death and decrease
the position of the country in travel sector as visitors feel unsafe to travel in the country.
Along with this, the country is also facing a high risk of malaria and AIDS throughout the
year which prevents travellers to consider Brazil in their visiting itinerary (Brazil. 2016).
TASK 2
2.1 Current trends influencing change in the travel and tourism sector
The emerging market of tourism is helpful and profitable for all the related elements of
business to gain many benefits as tourism gives many opportunities and helps them in continuing
their business. Moreover, the tourism sector is following set of trends that are currently
prevailing in the worldwide market:
 Grey tourism – It is termed as the type of tourism where old age people are likely to
explore new places and gain interest in participating in tourist activities. In this kind of
tourism, travel companies and related agents generally focus on motivating old age
individuals for rising their interest in order to develop their overall market. It is evidenced
that old age people are attaining higher level of disposable income and are more aimed on
spending their leisure time in luxurious style (Grey tourism. 2016). Along with this, old
age individuals are more targeted for maintaining a high class living and spending more
money on transportation, accommodation and catering which give revenue to the related
industries as well as government.
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 Religious Tourism – The type of tourism basically involves the religious trips and
people who are extremely involved in spiritual, devotion and religious thought process.
This tourism is mainly beneficial for the countries and places which have assorted
number of monuments, ancient structures and religious sites (Ashworth and Page, 2011).
In that context, preference of the spiritual and religious travellers is more on the places
which are highly known for recreational and meditation activities.
 Health and medical Tourism – It is ascertained as the kind of tourism which is tending
to contribute its use in improving the person health and fitness where the reason for
travelling and moving to international destination is to cure a patient from a specific
disease. The elements that are determined under the health and medical tourism are all
the factors which affect a person's health and well-being. These include physical, mental,
emotional, psychological, parental, etc. which focus the interest of an individual to take
medical treatment that can bring positive changes of improvement in the overall health of
the infected or concerned person (Chen, 2009).
2.2 Current trend prevailing in Brazil
Considering the modern and globalization era with different kinds of trends prevailing in
the tourism, it has been addressed that nature, scope and behaviour of the travellers/visitors
directly link with their preference and interest to visit the country. In that context, appropriate
information can be ascertained by the help of market research which is beneficial in determining
the trends of tourists in the country. In addition to this, it helps in assessing the number of areas
and elements that are fruitful in creating better tourist destination for attracting large number of
international and national travellers (Conrady and Buck, 2011). Moreover, it is facilitating
visitors to decide the places which they likely to visit with their relatives, family and belongings.
It also classifies the country as the most suitable place for developing the foreign companies
market. Brazil is mainly famous for its naturalism, culture, forest, beaches and many aspects. But
it is necessary to define the most preferable trend of tourism that should be encouraged and
promoted worldwide in order to gain more revenue, employment, growth and development of
overall country etc.
All the international tourists are highly attracted towards environmental and cultural
factors which makes Brazil so special in the tourism sector. Hence, government needs to
implement and develop particular structure of improving the environmental factors like beaches,
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forest, animals, etc. and the cultural elements like religious aspects, ancient beliefs, spiritualism,
etc. Along with this, representatives of the government and foreign ambassadors have to develop
strong relation with the other country in order to achieve higher level of travellers visiting their
country (Morosan, 2013). It is essential to create a strong image of the best tourist destination
among all the individuals and persons that are planning to explore new place in hope to recreate
themselves or spend some leisure time.
TASK 3
3.1 Travel and tourism businesses could respond to change
It is determined that business concerned on travel and tourism sector is aimed on
developing ways to motivate and gain the interest of number of people to visit the places. In that
context, the business is liable to concentrate on the aspects like political, cultural, environmental,
technological that are helpful in developing an effective strategy to attract many tourists (Nield,
2009). First Choice is among the most preferred travel agencies that provides wide range of
transportation and other tourism related services to all the international visitors.
However, the business has to implement changes in their strategy to attract large number
of tourists towards their business and overall agency. For this, First Choice needs to assess the
internal and external factors that are answerable for responding the changes occurred in the
tourism sector. In that respect, SWOT and PEST analysis are advantageous for the company in
determining the micro and macro environmental factors. These are:
Strengths
 Attaining higher growth rate and holding better position in the market.
 The company has skilled set of workforce and effective leaders.
 Strong existing distribution chain and better sales networks (Winiarski, 2005).
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Weaknesses
 Facing high level of competition.
 Fluctuating cost structure and ineffectiveness in stating better strategies.
 Rising entrance of small companies.
Opportunities
 New sources available for acquisitions.
 Effectiveness of gaining higher profits.
 Venturing capital.
 New range of products and services.
Threats
 Rising turnover of workers and employees increases the price.
 Government policies and regulations.
 Technological advancement.
 Higher level of competition lowers the rate of profitability (Fyall and Morgan, 2009).
The macro environmental factors that are present in the external surroundings/areas of
First choice are:
Political factors – The level of political elements that impact the business of company is
quite low, but still, unstable political environment has a great ability to affect the business
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operational and functional activities. The defined set of legal policies like filling tax, assuring
proper security, maintaining a control on health and safety issues, monitoring cleanliness and
hygiene functions is required to be followed by the company in an appropriate manner else there
can be generation of many problems and impacts.
Economic factors –First Choice has somehow managed their cost and pricing structure
as per the potentiality of visitors and travellers moving from a place to another. Moreover,
management of the company has to manage and maintain the level of their pricing and services
offered to the clients (George and Henthorne, 2007). They need to provide packages as per the
budgeted plan and financial capabilities of the person.
Social factors – The cited company is holding a strong position in the tourism market
which gives them better opportunities to develop an effective social image. For this, the company
needs to focus on implementing strategies that are capable enough to maintain good relation,
communication and interest of their existing as well as future customers.
Technological factors – It is termed that this is the most impacting area/category that has
a great level of capabilities in diversifying the interest and decision of customers. Rising level of
technological advancement and improvement in the adapted technologies are determined as the
main factors that impact the company in marking their presence in front of targeted clients
(Sharpley, 2011).
3.2 Developing strategies
Considering the business and targeted market of First Choice Company, it has been
analysed that company has to ascertain all the micro and macro environmental factors.
Accordingly, they need to define the strategies that will be helpful in structuring the action plan
which is appropriate and efficient in attracting high number of potential clients (Spenceley,
2012). Following are the market strategies that are capable enough to bring improvement in the
existing business operations of First Choice and these are: Special package – The company should introduce a new range of special packages for
their regular and existing clients which include travellers for leisure time spending,
business class people, etc. In addition this, they can also offer new kinds of facilities to
all the old age people and sports person including serving energy drink, more comfortable
seats, etc.
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 Stability in Prices – The management of First Choice has to implement an effective
action plan in accordance to hold the level of price of their offered range of packages and
flight tickets. Along with this, the company should launch new set of prices that
comparatively lower than their competitors (Graham, Papatheodorou and Forsyth, 2010).
 Promotional strategies – The r strategy should aim on promoting and marketing the
company's image in the targeted marketplace. For this, the best medium yet addressed is
internet which includes promoting tag lines on Facebook, ticket coupons on shopping
applications/websites, etc.
3.3 Justification for strategies Maintainable stability in Prices/fares – It is stated that a company has to manage the
level of their pricing in order to maintain their relation with their targeted and existing
clients. In that context, the company has to take several strategic steps that are to be
implied by the management in order to maintain a hold on all the opposing factors that
increases the operational cost of the company (Moutinho, Ballantyne and Rate, 2011). In
addition to this, they should promote the factors which direct the flow of pricing
strategies. The company should adopt measures to prevent the variation in pricing of all
the travelling packages and flight tickets by using advance technology, effective
leadership, efficient employees, etc. Special packages – The recommended strategy is targeting on overall market of First
Choice where company is offering new range of economical packages that include
various type of facilities and services which are served during the travel or visit
(Swarbrooke and Horner, 2012). It is ascertained that sports and grey tourism are
comparatively stable approach and have greater consistency than any other type of
tourism. Thus, the company should aim on attaining the greater attention of sports person
and old age people.
 Promotional strategies – It is addressed as the most efficient strategy as compared to
other strategies. The specified action plan requires less investment from the company and
thus, has the ability of marking better presence in the targeted market as well as create a
corporate image in the tourism sector.
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TASK 4
4.1 Impacts on the performance of travel and tourism
There are various issues that are evidenced as the reason for impacting the business and
overall performance of companies engaged in travel and tourism sector. Cited impacts can be
either negative or positive but will affect the business and environment of travel and tourism.
Following are determined as the set of impacts on the basis of certain aspects: Impacts on business – Many companies related with travel and tourism sector generally
face different types of impacts which can be in form of technological advancement,
variation in employee turnover, changes in policies and regulations, unstable relation
with countries, etc. Main purpose of company is to generate higher level of sales and
profits that tremendously forces to emphasize on managing better working structure and
providing professional set of services (Nield, 2009). Rising market of tourism has forced
political parties to introduce strategic polices based on taxation and environment. Thus,
they put implications on the management of businesses to prevent the practices that are
affecting the environment and tourism sector.
 Impact on product and service – Rising boundary of travel and tourism sector has
increased the adaptability of high quality services that are to be managed by tourism
business and their management. Along with this, range of products and services is also
become diverse that are to managed and controlled as per the security, health and safety
measures defined by the main representatives of the tourism sector etc. (Fyall and
Morgan, 2009).
4.2 Consequences of firms failing to response to the changing needs
It is ascertained that the company like First Choice has to consider all the stated impacts
and set of consequences which are addressable for impacting their business and overall market.
The stated impacts can hamper the continuity and sustainability of the company, hence it is
necessary that management should deal and consider these aspects. Accordingly, it is essential to
gain appropriate information about each and every aspect of marketing and business strategies.
The major concern of the company should be on ascertaining the set of changes and acquiring
the future possible changes that can influence the strategies to accomplish their organisational
objectives (Graham, Papatheodorou and Forsyth, 2010). It is essential that company should adopt
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various security, health and safety measures etc. to determine the dimensions of business
strategy.
First choice is highly popular for offering luxurious services in their travelling packages
and flights but if it is enabled to respond the market and tourism changes then this can extremely
affect their market image and company's perception among the potential targeted clients.
Moreover, the company should make changes required in their price and business strategies as
per the marketplace. For instance, during heavy peak season of customers when company
addresses more clients, it can raise the fares of their flights and travel packages (Conrady and
Buck, 2011). However, in inflation, they can reduce it simultaneously.
CONCLUSION
The report has been gained information about the significance of understanding the
factors that direct and impact the flow of tourism market. It is ascertained in the report that
business related with the tourism sector has to maintain their direction of working and prevent
the issues that impact the interest of visitors and travellers to explore new places. Along with
this, it has also been concluded that helpful information about the strategies are beneficial for
tourist business to attract high level of customers.
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REFERENCES
Books and Journals
Ashworth, G. and Page, J. S., 2011. Urban tourism research: Recent progress and current
paradoxes. Tourism Management. 32(1). pp. 1- 15
Chen, W., 2009. International Hospitality Management. Routledge.
Conrady, R, and Buck, M., 2011. Trends and Issues in Global Tourism 2011. Springer.
Cooper, C. and Hall, M., 2012. Contemporary Tourism. Routledge.
Dickinson, J. E., Lumsdon, L. M. and Robbins, D., 2011. Slow travel: Issues for tourism and
climate change. Journal of Sustainable Tourism. 19(3). pp.281-300.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Fyall, A. and Morgan, M., 2009. Marketing in Travel and Tourism. Routledge.
George, B. P. and Henthorne, T. L., 2007. Tourism and the general agreement on trade in
services: Sustainability and other developmental concerns. International Journal of Social
Economics. 34(3). pp.136-146.
Graham, A., Papatheodorou, A. and Forsyth, P., 2010. Aviation and Tourism: Implications for
Leisure Travel. Ashgate Publishig Ltd.
Morosan, C., 2013. An analysis of the relationship between travel preferences and intentions to
use registered traveler biometric systems in air travel. Journal of Hospitality and Tourism
Technology. 4(1). pp.23 – 39.
Moutinho, L., Ballantyne, R. and Rate, S., 2011. The new business environment and trends in
tourism. Strategic management in tourism. pp.1-19.
Nield, K., 2009. Contemporary Hospitality and Tourism Management Issues in China and India.
Routledge.
Sharpley, R. and Stone, P. R., 2010. Tourist experience: Contemporary perspectives. Routledge.
Sharpley, R., 2011. The study of tourism: Past trends and future directions. Routledge.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Swarbrooke, J. and Horner, S., 2012. Business Travel and Tourism. Routledge.
Winiarski, R., 2005. Social factors influencing tourist activity among youths. Tourism Review.
60(1). pp.20–25.
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Online
Brazil. 2016. [Online]. Available through:
<http://smartraveller.gov.au/countries/americas/south/pages/brazil.aspx>. [Accessed on 3rd
June 2016].
Grey tourism. 2016. [Online]. Available through:
<http://nrl.northumbria.ac.uk/13336/1/major.bridget_dba.pdf>. [Accessed on 3rd June 2016].
Some of the Major Current Issues Confronting Tourism. 2016. [Online]. Available through:
<http://www.tourismandmore.com/tidbits/some-of-the-major-current-issues-confronting-
tourism/>. [Accessed on 3rd June 2016].
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