Contemporary Issues in Travel and Tourism

This report analyzes contemporary issues and trends in the travel and tourism sector, including globalization, technological advancements, and evolving consumer demands. It examines the strategies employed by The Fulham Shore plc to respond to these changes, utilizing frameworks like Porter's Five Forces, SWOT analysis, and PESTEL analysis. The report also explores the consequences of businesses failing to adapt to market shifts.

Contemporary Issues in Travel
and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving change in the travel and tourism sector.....................................1
1.2 Analysis of different current issues using appropriate methods and resources................2
TASK 2 ...........................................................................................................................................3
2.1 Current trends influencing change in the travel and tourism sector.................................3
2.2 Analyse a current trend using appropriate techniques and resources..............................4
TASK 3............................................................................................................................................7
3.1 The Fulham Shore plc businesses and its response to change..........................................7
3.2 Strategies on how The Fulham Shore plc businesses could respond to change...............7
3.3 Justification of strategies..................................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impacts of issues and trends that drive change in the travel and tourism sector............10
4.2 Consequences of businesses failing to respond to market change................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism sector is growing in a rapid speed throughout the world and it is
determined as the key factor of economic growth, employment generation in a country. Tourism
business, in recent times is a profit maximisation sphere and a large number of companies are
focussing and establishing their business in this sector. Present report will focus on the key
issues and challenges which can be faced by companies dealing in travel and tourism industry.
Moreover, this assignment will analyse the issues which is currently driving the change in travel
and tourism sector with the help of appropriate methods and resources. Other than this, current
trends and which can influence change in travel and tourism is included in this report. In addition
to this, strategies were developed through which company can respond to change in the sector of
travel and tourism is included in this assignment. Lastly, impact of issue sand trends in travel and
tourism sector is mentioned in this report.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
United Kingdom comes under the most prominent place and hence, the most crowded
place to visit. Titan Travel is one of the company that deals in travel and tourism in United
Kingdom, they provide packages for most captivating holiday destinations to their clients. In the
past few decades, with the increase in the services of travel and tourism drastic change had been
seen. As a result, it has given birth to many issues and problems which is furthermore affecting
the industry slowly. Some of the problems which can make a change in travel and tourism sector
are mentioned below:
 Globalisation: In this fast growing world, where globalisation has provided advantage
to companies in expanding their business in different area but in addition to this, it has
some negative impact as well. For example: Globalisation has raised awareness amongst
people and it has helped them in developing themselves. But other than this, globalisation
has a huge impact on culture of the society. Other than this, globalisation has developed
an inequality of income between various countries therefore, it has resulted in flow of
tourists and rich countries are becoming more richer and no growth can be seen in poor
nations.
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 Small business support – In travel and tourism sector challenges may be faced when
small business related to same industry don't support. Because small scale business are
those which create employment as well as design travelling packages for all type of
people which is easily affordable for everyone.
 Network – This is the term related to mode of information transferring, if there is lack of
networks in the travel and tourism sectors. Them while travelling people face difficulties
in talking to their family members which will reduce customers for the respective
industry.
 Human Resource – If there is lack of human resource in travel and tourism sector then
for them it is not easy to provide better services to their customers. Thus, by
unappropriated amount of human resource respective sector face many challenges.
Therefore, all the issues are playing some or the other role in driving change in the sector
of travel and tourism. Thus, it is crucial for regulatory bodies to look out for the issues so that
these things can be eliminated in order to prosper their businesses.
1.2 Analysis of different current issues using appropriate methods and resources
Travel and tourism is one of the dynamic sector where most of the companies are
establishing themselves in order to gain maximum benefits. At global level firms which are
working in this sector are building alliances and making partnership with different sectors such
as hospitality sector. This has assisted Titan Travel, in providing better services and facilities to
their clients and customers. As a result, they are attracting a number of travellers towards their
company and gradually it is generating more and more revenue for the nation. But there are
issues and problem as well which are hampering the businesses of the sector of travel and
tourism. The most common problem which can face by the sector of travel and tourism is of
terrorism as it is growing in a rapid speed. People are afraid of going to famous places even after
providing tight security by regulatory bodies. This has decrease the level of revenue generated in
a speculated time frame. Other than this, unstable political conditions can be the one of the
reason of creating issues and problems. As this can change the laws and legislations on a regular
basis which company dealing in travel and tourism can find it difficult to follow. For example:
various mode of taxes implemented by government like increase in cost of travelling. This will
gradually increase the fare of other activities.
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In United Kingdom, happening of BREXIT which was invoked under article 50 of the
Treaty on European Union, had a huge impact on the businesses of travel and tourism. For some
period a decrease because of weak pound which drastically increase the cost and made margin
down. Along with this, deception of pound sterling has minimised the profit margin for the
country. But for inbound travellers it has provided great chances of visiting such places at cheap
price.
TASK 2
2.1 Current trends influencing change in the travel and tourism sector
United kingdom has a rich history and culture which are appealing travellers for visiting
these places of western monarchy. In these recent years, sector of travel and tourism has
witnesses many changes and trends which are influencing this sector in making some
modifications in the services they are providing. Thus, for this, companies are making effective
strategies and tourist packages which customers can opt and enjoy the service. Some of the
current trends which are influencing change in travel and tourism sector are explained below:
Globalisation: This is one of the reason because of which travel and tourism sector is
increasing day by day. It has open up gates for many travellers who are fond of visiting new and
exotic places throughout the globe. It has given chance to many people who choose to travel in
order to know or learn about different cultures. For example: people are changing their
perception towards travel and tourism and opting for more adventurous sports in different parts
of the world. Thus, it can be said that globalisation is one of the current trend that is influencing
change in this sector.
Improvements in technologies: After the implementation of new and latest technologies
in travel and tourism a rapid growth has been seen as people are travelling to different places as
compared to earlier times. Thus, according to a study it has been analysed that by 2030 global
population approximately 8.5 billion people will take around 2 billion international trips (Impact
of technology, 2018). Internet is the biggest factor that has provided seamless experience of
customers. With the help of internet anybody can look out for packages that is being provided by
tour and travel company. For example: technology has made all the process online as days have
gone when there was a need of printing the airline tickets.
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Changes in demand of consumers: Earlier, people use to travel with the purpose of
business or for doing some important work. But with the change in course of time, trends have
been changed. Customers are looking for both long and short term plans. Now a days people are
not visiting for business purpose but also travelling for spending leisure time. Therefore, before,
doing any kind of planning people are going through demographic trends along with modern
lifestyles. Other than this, adventure sport is also increasing and customers are looking for
packages which can fulfil their demands.
Source: Overseas tourist spending in London
With the above mentioned graph it can be evaluated that from 2013 to 2017, an increase
in tourism can be seen in United Kingdom and they have played a crucial role in improving the
economy of the nation. For example: in the year 2013, overseas tourist have spends around 11.13
billion GBP, and as the time passed in the year 2017, it has raised to 15.4 billion GBP.
2.2 Analyse a current trend using appropriate techniques and resources
Niche market is categorised as a subset of market where specific products are being
focussed. Thus, Titan Travel which is a company that deals in travel and tourism and provides
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Illustration 1: Overseas tourist spending in London

services and facilities to its customers. Niche market is a part of large market which focuses on
particular products and services. This kind of market satisfy specific needs of target market.
These markets are created by determining specific needs of customers by offering specialised
products and services. It helps businesses to build long-term customer relationship as audience is
comparatively small than other market. Organisation wants to establish their business in niche
market so that profit can be gained. Thus, for this, they are focussing on adventure sports and
providing facilities accordingly to their clients. It includes some adventure sports which have
higher degree of risk in it these activity involves high-speed and height and some special gear are
used to minimize the risk under this. While in adventure tourism the tourist looks for different
and new experiences. There are two types of adventures
SOFT ADVENTURES -The type of adventure in which low risks and experience
require to have adventure are known as soft adventure.
HARD ADVENTURES- This require a certain level of risk and high skill are needed to
perform such adventure are known as hard adventures.
Main reason of choosing this, niche market because it is in popularity because now a days
people are more challenging and prefer to challenge their capability for example: travelling to
climb a mountain or doing something which is extraordinary. Other than this, most of the people
opt for adventure sport so that they cam share something adventurous with their friends and
family.
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Source: Adventure Tourism in United Kingdom
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Illustration 2: Adventure tourism in United Kingdom

TASK 3
3.1 The Fulham Shore plc businesses and its response to change
Travel and tourism is one of the most developing industry in all over the world that can
be impacted through changes in internal and external factors of country. It is necessary for this
sector to adopt the changes on the basis of situations in regards to enhance profit and serve to
large number of visitors. United Kingdom is viewed as one of the country in which more
attractive tourist destination places are exist. In order to respond the change, it is important for
Fulham Shore plc company to make the effective strategies by include all staff members in
business. There are several external as well as internal factors which gives impact on the
operations of respective organisation these are as follows :-
External factors – Below mention are the external factors to which company respond
when they implement changes :-
 Government – This is the external part of business which must be keep in mid by the
company when they implement changes. Because all the policies given by the
government must be followed.
 Customers – They are the important parts which must be consider by Fulham Shore plc
when they make modifications in their goods and services. If offerings are not according
to the demand then they will not going tu purchase which result in decreasing sales.
Internal Factors - Below mention are the internal factors to which company respond
when they implement changes :-
 Employees – They are the internal part of company when Fulham Shore plc implement
changes in their working benefits of staff members must have to be consider. Because
they are the one by whom day to day operations can be done as well as revenue
generations also.
3.2 Strategies on how The Fulham Shore plc businesses could respond to change
Strategies are helpful for business to sustain at market place for long period of time. It is
necessary for Fulham Shore plc business firm to manage all changes in an effective or better
manner. For this, progressive tactic is necessary which can help in support this sector in order to
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attaining the sustainability. Below mention are the tools which is implemented by the Fulham
Shore plc for market analysis:-
Porter's Five force Model – It is the holistic strategy framework which take decision for
analysing present competition. Porter Five Forces focuses on - how The Fulham Shore plc can
build a sustainable competitive advantage in Restaurants industry. Threat of New Entrants - New business comes in Respective industry bring innovation
as well as new way of doing things which put pressure on The Fulham Shore plc by
lower pricing strategy, reducing cost and providing new value propositions to the
customers. Respective company have to mange all these challenges and effectual barriers
to safeguard its competitive edge. Bargaining Power of Suppliers – All the companies in the restaurant industry purchase
raw materials from the several suppliers. Moreover, powerful suppliers in service
industry can utilise their negotiation power for extracting high prices from the company
in the field of restaurant. Their is overall higher supplier bargaining power is that it lower
the entire profitability of restaurant. Bargaining Power of Buyers - Buyers are often a demanding lot. They want to buy the
best offerings available by paying the minimum price as possible. This put pressure on
The Fulham Shore plc profitability in the long run. Threat from Substitute Products - When a new product or service meets a similar
customer needs in different ways, industry profitability suffers.
 Rivalry among the existing players - If the rivalry among the existing players in an
industry is intense then it will decrease prices and reduce the overall profitability of the
same industry. The Fulham Shore plc operates in a very competitive Restaurants
industry. This competition does take toll on the overall long term profitability of the
enterprise.
SWOT Analysis - Fulham shore plc is a retail brand based company. It interests in
cooking activities. it operates a restaurant chain. The company have a network across the all over
city and It is UK based company. In analysis focus on the company's strengths, weaknesses,
opportunity,threats .
Strengths Weaknesses
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 Expansion moves : It expand their
small restaurant stores into convenience
stores which become later super top
restaurant. Now it is among the top
market in united kingdom.
 Business philosophy Fulham shore
plc : It also included the strength of
company because its way of work
really pay a lot along with its hard
work.
 Innovative promotion strategies : The
strategies which are adopted by the
company from these most of are very
innovative that pitch the brand directly
against the competitors directly.
 Brand switching : Like all other
brands Fulham shore plc also faces the
brand switching challenges . It also
faces difficulties in retaining customers.
 Low margins: In order to attract
customers in competitive market
Fulham shore plc cut their products
cost down so it faces the low margin
situation.
 Growing costs of product : The
growing costs of Fulham shore plc
product also a big factor .
Opportunities Threats
 Growth in villages : In recent days the
branded products are not used by the
villagers. But now in theses say most of
the branded product of daily uses are
used by these peoples also. So the
growth of opportunities in village also a
big factor for these organization .it also
operate their food stores in villages to
reach more customers.
 Competition :- competition is the main
factor of today's market. The main
competitors of the Fulham shore plc
are some reputed food chains which
exists in market.
 Focus on retail :- The main focus of
the company is on retailing so the
growing market are also a big factors
for consideration for Fulham shore plc.
PESTEL Analysis - The PESTEL analysis is all about the outside environment. The
PESTEL analysis is also important because it tells that whether the particular country is
profitable or not for a business. Fulham shore plc corporation strategies determine the issues in it
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external environment so its PESTEL analysis to identifies the issues regarding its macro
environmental problems.
 Political factor - The operations of Fulham shore plc are highly influenced by the Govt.
policies national and international levels. Because now in a days Govt. imposes many
restriction because of increasing in health issues like cholesterol and many more issues
by consuming outside food. And many other issues are also like tax issues in country
like India.
 Economic factors - The affects of economics trends and situations are affect the macro
environment of Fulham shore plc because every economic changes must be affect a
business. There are also some economic factors which influence the Fulham shore plc
business like stable growth of a country, slow down of chines economy, very highly
increasing growth of developing country. But PESTEL analysis identifies that external
economic factor provides opportunity to Fulham shore plc.
 Social factors - Social factors also widely effect the Fulham shore business externally.
These social factors includes increasing in disposable income,busy time schedule in
urban environment, highly increment in cultural differentiation.
 Technical factor - This aspect of PESTEL analysis of Fulham shore plc concerned with
the factors related to the technologies effect. According to this aspect Fulham shore plc
success is depend on the adaption of new technological resources. These external factors
are needed to address because of moderate research and development activity in the
industry and increasing sales through mobile marketing. These factors shows an
opportunity for Fulham shore plc business.
 Environmental factors - In this aspect of PESTEL analysis the environmental trends of
natural environment are analysed and it is address that which of the trends are affect the
business and and customer. The some of important and significant factors of environment
analysis of Fulham shore plc business are increasing attraction toward corporate
environment programme and differentiation in environment conditions in varies regions.
 Legal factors - This aspect of PESTEL analysis is all about the impact of law on the
Fulham shore plc business. The corporation must consider the some of factors regarding
legal facts like highly increment in health rules and regulation in workplace and
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increment in legal minimum wages. Some of these factors shows opportunity and some
of threats for business of it.
3.3 Justification of strategies
Strategies are very important in order to operate business in an effective manner,
moreover, The Fulham Shore plc., has developed some strategies which is helping them in
responding to change. For example: firm is applying PESTEL, SWOT and Porters five force
model by which it will assist firm accepting cultural changes as it will help employees in
executing their plans in different manner. As a result, it will help employees to go along with the
culture. Other than this, company through shift in burden of change they are trying to evaluate
the perception of change so that adequate packages can be provided to its clients. In this, it is
required by the manager to communicate each and every employee about change in order to
make them realize its importance. This will be helpful for organisation as it will enhance interest
of employees in the work that will make them work effectively. In relation to Fulham Shore plc,
this strategy is beneficial in making new attractive package according to the requirement of
customers. As a result, it will also enhance satisfaction level of customers by using good
packages. These strategies are applicable for situations where company wants to make
organisational change.
TASK 4
4.1 Impacts of issues and trends that drive change in the travel and tourism sector
Travel and tourism industry includes firms which provide services and products to people
that visit country. Trailfinders is Tour operator which have number of centres located in UK and
Ireland. These are tactics which define influence of change in travel and tourism sector are
described below:
Structure changes – These are the modifications made in the structure of the
organisation which might stem because of external or internal factors. Structure changes simply
means modifications in overall goals, purpose, strategy or mission of Trailfinders. There are
some impact of structure change in working of Trailfinders these are as follows :-
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 Impact on business – Structure changes of travel and tourism sector give wide impact on
business because they also have to make changes as per the requirement overall industry
structure.
 Impact on revenue & profit – If changes are in the structure of Trailfinders take place
then in the starting phase there is less chances of generating revenue and profit. As work
continue after sometime respective modifications result in earning revenue.
 Impact on product and services – For production process of goods and services there is
requirement of providing proper training to employees due to structural changes. Impact on employment – structural changes gives positive impact on employment
because for working in new environment there is requirement of employees in
Trailfinders.
Merger - Merger means when two or more companies come together to form one
company. The main aim behind this is to enjoy the benefit of each companies strength,
effectively and efficiently utilisation of resources. Through merger a company which is week in
any area or highly effective in other area gets opportunity to use its strength and reduce the effect
of its week areas. Merger leads to new opportunity to the company any providing more wealth,
new market access and a efficient team of human resource.
 Impact on business – Merger gives good impact on the business because Trailfinders will
merger any organisation of same sector which result in doing operational activities in
more effective manner.
 Impact on revenue & profit – In the case of merger, from the first day there is positive
impact on revenue and profit generation because strategies of two companies work
together and gives positive outcomes.
 Impact on product and services – variety of offerings increase because both companies
have some distinct products and services which is serving by the Trailfinders after
merger.
 Impact on employment – mergers gives negative impact on employment because
employees of two companies merge and start doing work. So in this situation there is no
requirement of hiring new staff members.
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Acquisitions - Acquisition means when one company is taken over by the other company.
Merger and Acquisition are misinterpreted to be same but in merger all companies come together
with their consent and acquisition on the other hand can be done without the consent of the
company. In acquisition acquiring company come in holding position which means all the
decision making power lies with the acquiring company. In acquisition the company which is
acquired cease to be exist and will work under the name of the acquiring company only. One of
the most important benefit of Merger and Acquisition is synergy benefit which says that the total
wealth of merged company will be more then the sum of individual wealth of companies.
 Impact on business – Acquisition result in enlarging size of the organisation, if small
scale organisation acquire then it will result in converting large scale enterprise.
 Impact on revenue and profit – By acquisition company can generate large amount of
revenue and profit because size of organisation change.
 Impact on product and services – their will be positive impact on product and services
because one organisation is acquiring other and they both will continue their offerings in
the market area. Impact on employment – Acquisition result in positive impact on employment because
size and their operation of the company become large. For all these there is requirement
of employees which result in generating employment opportunity.
Liquidation - Liquidation is a process by which business of a company brought to an end
and all the affairs of the company is winded-up. Liquidation process is of two types one is
COMPULSORY which means company fall under some specific situation in which as per law
winding-up will be compulsorily done and other method is VOLUNTARY under which
company itself closes its business without any compulsion by law.
 Impact on business – Their is negative effect of liquidation on business because trading
and the powers of the director’s will cease. The directors are replaced by a Liquidator
whose job it is to realise the assets of the business for the benefit of all the creditors.
 Impact on revenue profit – Their will be no revenue and profit generation after
liquidation of the business.
 Impact on product and services – Liquidate company will no more produce their goods
and services in market area.
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 Impact on employment – It will give negative impact on the employment because after
liquidation all the staff members get automatically dismissed.
4.2 Consequences of businesses failing to respond to market change
According to the current market scenario, it is crucial that companies accept change so
that firm can sustain for a longer period of time. As business environment is changing in a rapid
speed thus, it is crucial that Trailfinders make modifications and provide facilities according to
the needs and wants of customers. But in some situation if respective organisation failure to
respond changes it may give negative impact these are as follows:- Decrease in sales – If Trailfinders get fail in responding to the changes then it will result
in decreasing sales because in organisation production will be not done by maintaining
quality. Image of the business – If respective organisation get fail in implementing changes then
it will result negative image of the business. Because daily operations will not be done in
appropriate manner which result in decreasing quality of their offerings.
 Reduce profitability – Changes result in positive and negative both manner if company
get fail in implementing modification. Then it will directly effect in reducing profitability
of the Tralfinders.
CONCLUSION
From the above report, it has been concluded that, there are different kind of issues and
problems that should be faced by companies who are dealing in travel and tourism. As this,
sector is growing in a rapid speed. Thus, it is crucial that firm accept changes and provide
services according to the needs and wants of customers. Other than this, it is important to look
after the trends which is going in this sector like choices and preference of customers while
choosing a destinations. Henceforth, sector of travel and tourism is rapid growing sector but it
has some issues and problem that can have an effect on business who are working in this field.
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