Change Management in Tourism Sector: A Case Study of TUI

Strategy and Change
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ..............................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................9

INTRODUCTION
This essay will analyse change management in tourism sector. Tourism is the biggest
industry of the world and has changed rapidly in the past years. Tourism is a set of activities
undertaken by the human beings for the purpose of pursuing relaxation (Larsen, Boje and Bruun,
2020). The organisation chosen for the purpose of writing this essay is TUI. The essay include a
discussion about the theoretical approaches adopted by the Travel and Tourism organisations to
make a change and modify their strategic directions. In addition to it, an evaluation of the
purpose, objectives, vision and mission set in strategic directions is also being considered.
Further, an assessment of the process of change management with the help of a models and what
changes does the organisation need to adopt are being discussed in this essay. The essay
contains an overview of the company such as market share and size and to critically discuss
about the company. The environment of the company is analysed with the help of SWOT,
PESTLE and Porter's Five Forces.
MAIN BODY
With that in mind, TUI (About TUI, 2022) is a UK-based travel group established in
CrawleTUI travel group was the result of the merger of First Choice Holidays PLC and the
Tourism Division of TUI AG. TUI operates in almost 180 countries and thus have a wide
customer base. There are millions of customers on whom the company have access on. The
company occupies 20 percent of the market share approximately in UK ( Cui and et. al., 2022).
In Europe, TUI is the largest travel group and have nearly 562 stores across UK. TUI is a public
travel group and is listed on London Stock Exchange. The company has various airlines
established in different countries such as France, Belgium, Germany, Russia, etc. The policy of
the company, primarily, states about the challenges and opportunities in the tourism sector and
the ways to tackle them.
Strategy refers to the action plans designed by the management to achieve the objectives and
goals set up by the organisation (Moghimi, 2022). Planning and designing a strategy is very
important for an organisation and benefits the company in various ways. Good strategy helps the
management to identify the directions, moving on which will benefit the organisation (Lips and
Et. Al., 2019). Moreover, strategic management helps the employees to have a better
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understanding of the goals and ways to achieve them. Better vision of job improves the
performance of the employees. Strategy helps to evaluate the position of organisation in the
marketplace and how to improve it (Mishra and Et. Al., 2018). Strategic management help TUI
to co-ordinate stakeholders with the development of the destination. A clear image of the
destination must be presented to the public. TUI first identifies its priorities on which the
organisation need to work and plan accordingly (Hong and Et. Al., 2018). It gives the company a
direction to move and measure the success of achievement of goals through the performance of
its employees.
Strategic planning process can be analysed using the transitional model of Williams and Bridges
(Chen and Guo, 2022). The transitional model of Williams and Bridges throw some light on the
difference between transition and change (Song and Et. Al., 2021). The very basic difference
between the transition and change is that transition takes place at the option of the organisation
and is an internal process. While change takes place even if the organisation do not want to let it
happen (Malik and Khan, 2021). There are three stages covered by this model. First is the
ending, losing and letting go, second is the neutral zone and third is the new beginning. In the
first stage, employees are made understand their role and responsibilities when a change takes
place in TUI. At the second stage, employees in TUI, are guided by the managers patiently in
order to end their confusion, if any. In the last stage, when the results start coming shows the
new beginning of business. Everyone in TUI feels contented as all their hard work paid off. A
clear vision and mission enables the whole organisation of TUI to work together towards the
achievement of same goal and destination. It enables the company to develop measurable goals
and objectives. TUI changed its working system from paper to technical world. The change was
made to reduce manual work, save time and to make employees familiar with the technical
gadgets as these are highly used everywhere. So the clear mission and vision of saving time,
ending manual work and training employees were the reasons for the change in the working
system.
As mentioned, a clear vision and mission should enable TUI and its stakeholders to help achieve
TUIs goals. It enables the company to develop measurable objectives. TUI changed its working
system from paper to technical world (Hamada and Akzambekkyzy, 2022). TUI aims to be one
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