CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

Explore the current trends and issues impacting the travel and tourism sector, analyze strategies for businesses like Whitbread to respond to market changes, and understand the consequences of failing to adapt.

CONTEMPORARY ISSUES IN
TRAVEL AND TOURISM

Table of Contents
INTRODUCTION..........................................................................................................................2
TASK 1.........................................................................................................................................3
1.1 ANALYSE THE ISSUES CURRENTLY DRIVING CHANGE IN THE TRAVEL AND TOURISM
SECTOR...................................................................................................................................3
1.2 ANALYSE THE TWO CURRENT ISSUES BY USING APPROPRIATE METHODS AND
RESOURCES............................................................................................................................5
TASK 2.........................................................................................................................................6
2.1 EVALUATE CURRENT TRENDS INFLUENCING CHANGE IN THE TRAVEL AND TOURISM
SECTOR...................................................................................................................................6
2.2 ANALYSE THE CURRENT TREND IN NICHE TOURIST MARKET USING APPROPRIATE
TECHNIQUES AND PRODUCE A POSTER.................................................................................8
TASK 3.......................................................................................................................................10
3.1 ANALYSE HOW THE WHITBREAD BUSINESS COULD RESPOND TO CHANGE.................10
3.2 DEVELOP THE STRATEGIES ON WHITBREAD BUSINESS COULD RESPOND TO CHANGE12
3.3 JUSTIFY STRATEGIES FOR HOW SELECTED WHITBREAD BUSINESSES COULD RESPOND
TO CHANGE..........................................................................................................................13
TASK 4.......................................................................................................................................14
4.1 ANALYSE THE IMPACTS OF ISSUES AND TRENDS THAT DRIVE THE CHANGES IN TRAVEL
AND TOURISM SECTOR........................................................................................................14
4.2 DISCUSS THE LIKELY CONSEQUENCES OF BUSINESS FAILING TO RESPOND TO MARKET
CHANGE................................................................................................................................16
CONCLUSION............................................................................................................................17
REFERENCES.............................................................................................................................18
1

INTRODUCTION
Travel and tourism have undergone a large degree of changes on a very broad scale. The
business operations of travel and tourism companies are affected by the aspects of these
changes (Wachowiak, 2016). The current scenario in the travel and tourism sector is
considered to identify the current trends and issues which economically impact the
development of tourism in a very appropriate manner. Changes in the technology and
society highly signify the travel and tourism sector. A lot of transformation is observed in
travel and tourism industry around the world as it is continuously developing and
progressing in terms of profits, products and services as well as revenues.
This assignment highlights the current trends and issues faced by the travel and tourism
business which is needed to be managed by them to progress in the industry. It also helps in
understanding the application of appropriate tools and techniques so as to ensure the tour
packages to be more profitable (Becker, 2016). This reports also depicts through Whitbread
Plc. in its response to the changes occurred in travel and tourism industry so as to take
appropriate strategies and tactics. His assignment represents the outcome for the company
that fails to counter to changes in the market.
2

TASK 1
1.1 ANALYSE THE ISSUES CURRENTLY DRIVING CHANGE IN THE TRAVEL
AND TOURISM SECTOR
There are constant changes that give rise to the issues and challenges in travel and tourism
industry with influences of globalization. There are certain issues that drive the changes in
travel and tourism sector are:
TECHNOLOGICAL ADVANCEMENT:
Progress in the technology increased the dimension and reach towards the customers in
travel and tourism sector (Telfer and Sharpley, 2015). Advance booking and various other
features have been added due to progress in technology which positively impacts the
operations of Titan Travel. With the help of advanced technology, travel and tourism
operators such as Titan Travels have made their presence on the online web portals that has
enabled them to reach out to the large customer base.
SAFETY AND SECURITY:
The level of travel and tourism has increased due to improved safety and security measures
adopted by travel and tourism industry. The growth and development are inversely
proportionate to the social security risks and terrorism (Baum, 2015). It is considered as one
of the most dangerous issues is to protect and secure the wellbeing of traveller or tourists in
the UK. Cybercrime has been increased which is needed to be protected to maintain the
security measures in safeguarding the transactions form the intruders. The incident of 9/11
occurred in the New York is still afresh in the memories of the people which enforced
different countries to adopt security layers that very strict and stringent.
INSUFFICIENT INFRASTRUCTURE:
Proper infrastructure is one of the necessary requirements starting the range from physical
framework to urban framework. Proper transport facilities, easily accessible roadways,
sufficient electricity, telecom services, efficient sewage system, cleanliness are some of the
3

essential requirements in infrastructure to promote travel and tourism industry across the
world (Michailidou, et al. 2016). The travel and tourism sectors are associated with a
different relative industry that is aviation, surface transportation, accommodation in hotels,
facilities like lunches dinner facilities in restaurants etc.
4

1.2 ANALYSE THE TWO CURRENT ISSUES BY USING APPROPRIATE
METHODS AND RESOURCES
The companies in travel and tourism industry are highly influenced by the economic, social
and environmental factors. There is an increase in the revenues of travel and tourism
industry that has positively impacted the economy of the country which enabled in
enhancing the visitors and travellers. The two current issues are analysed with the help of
suitable methods and resources are below:
TERRORISM: the fear of violence or ferocity among the people of the country is terrorism.
Terrorism negatively impacts the society which results in unemployment, poverty, deflation,
homelessness and much more. The economic scenarios along with the fear among the
people are affected by this evil activity referred as terrorism (Scott, 2017). Terrorism affects
the demand in travel and tourism industry as it affects the interest of tourist to visit the
nation which results in a heavy loss in the revenue of business as well as by the countries.
The growth and development of the country are also impacted by this evil activity.
BREXIT: in the Brexit referendum in the year 2016, the residents in the UK voted to leave
the European Union which has affected the travel and tourism industry that is both UK
citizens visiting other countries and other visitors visiting the UK. About 41.7 million people
are expected to visit the country in the year 2018 which is an approximate increase of at
least 4.4 per cent as compared to that of 2017 (Veal, 2017). However, there is the
uncertainty of downside risk due to the impact of Brexit. The key uncertainty is due to the
continuing fluctuation in the value of Pound which is influences the economic performance
of the UK.
5

TASK 2
2.1 EVALUATE CURRENT TRENDS INFLUENCING CHANGE IN THE TRAVEL
AND TOURISM SECTOR
There are various changes that have led to current trends in the travel and tourism sector.
The rich culture and various other factors have attracted a large number of tourists to visit
various locations in the UK (Vila, et al. 2015). Some of the prominent trends that have
affected the UK tourism have been discussed.
Family gatherings and leisure holiday are one of the major trends followed around the
world. This helps them in capitalizing the family occasions which are turned it into leisure-
oriented trips. This trend will increasingly impact the recovery of the UK market from the
impact of Brexit. Change in the demographics of the UK resulted in the contribution to
associate family reunion with leisure (de Grosbois, 2016). Health tourism such as spa breaks
has given rise to various kind of domestic leisure tourism. The old generation people who
are health conscious have given rise to this kind of tourism which distinct from leisure to the
heightening desire to take breaks from the work.
Fig 1
[Source: https://www.visitbritain.org/forecast]
6

The use of technology also increased the opportunities for travel and tourism business.
People are now using internet services through which they can book for trips that are
facilities like accommodations, transport and food and various other facilities. They also look
for the reviews at a particular location to develop and ideas or understanding about the
places, people they are going to visit. It is uncertain that the referendum of Brexit will
impact the current trends in the travel and tourism industry (Xiang, et al. 2015). There are
various destinations such as British Museum, Manchester, and Tower of London etc which
attracted a large number of visitors in the UK. There are various other factors such as
favourable weather conditions, proper infrastructure facilities, efficient transport system,
better safety and security etc.
7

2.2 ANALYSE THE CURRENT TREND IN NICHE TOURIST MARKET USING
APPROPRIATE TECHNIQUES AND PRODUCE A POSTER
The touring packages offered by the travel operators which are specifically designed to meet
the requirements of visitors are defined as a niche market. A special segment of the tourists
are categorised and it helps in attracting tourists and visitors in the UK (Patil and
Deshpande, 2017). Dark tourism is referred as visiting the location or sites which is
connected with death, disaster or macabre. Disaster can be of any form that is either
natural or industrial or both. The disaster can be resulted by the environment or
humanitarian catastrophes.
POSTER
8

One of the niche markets is dark tourism that attracts the tourists who are interested in the
locations related to death. Dark tourism is referred to the tourist activities and is concerned
with the death through social scientific and empirical practices which explain about the life
and living. There are various locations such as about 1,40,000 people were killed in the
horrifying attack when the bomb was dropped on Hiroshima and while in Khmer Rouge
Regime about 1.7 million people died in Cambodia. In 9/11 terrorist attack, at least 3,000
people were killed. About 5 million people visit dark sites or locations around the world
every year (Patil and Deshpande, 2017).
9

TASK 3
3.1 ANALYSE HOW THE WHITBREAD BUSINESS COULD RESPOND TO
CHANGE
One of the constant phenomena is the change in travel and tourism industry. It is essential
to adopt the changes covered in the external factors of the market. Whitbread Plc. needs to
be prepared with the various factors such as political, economic, social and technological
(Bower, 2017). It is imperative for the business to implement the strategy properly and
efficiently so as to face the changes.
Pest analysis is done to understand the different factors in the external environment so that
Whitbread Plc. can formulate the implement strategies to respond to change:
POLITICAL: the political system in the UK is in the process of evolution due to the recent
Brexit referendum that affected the government and politics. This has resulted in adverse
impact on the growth potential of a tourist destination (Bowie, et al. 2016). London is capital
of the UK which is the centre for all the activities about the administration and politics in the
UK.
ECONOMIC: This factor includes different internal and external aspects in the market such
as economic development, buying power, currency rates, inflation, labour cost etc. this
factors highly affect the tourism industry in the UK. The recent reform resulted in the
economic fluctuation along with the exchange currency rates (Cummings and Worley, 2014).
The government in the UK is planning to focus on the development of tourism industry by
adopting the promotional strategies to enhance the quality of services and also generate
huge revenue.
SOCIAL: social factors is comprised with the aspects such as social environment, population,
educational level, customs, norms and traditions etc. the attitude towards tourism activities
can be shaped up through these crucial factors. Change in the requirements of the travellers
10

or tourist or current trends results in either negative or positive influence on the operations
of Whitbread plc (Bower, 2017).
TECHNOLOGICAL: this aspect broadly impacts the business of travel and tourism operators
such as Whitbread. London being the capital city and located at a strategic location has the
accessibility to emerging technological developments (Bowie, et al. 2016). Tourist
destinations are developed and promoted by using the latest technologies.
11

3.2 DEVELOP THE STRATEGIES ON WHITBREAD BUSINESS COULD RESPOND
TO CHANGE
A strategy can be referred to the plan or path to achieve the objective or purpose of the
business. Whitbread Plc needs to develop the strategies so as to sustain in the market.
Whitbread plc is located in the London which is a capital of the UK is one of the important
holiday destinations in the UK (Cummings and Worley, 2014). It is essential for the company
to implement the marketing strategy in order to improve the existing operations of the
Whitbread plc.
Product: it is essential for the company to maintain the rooms in such a way that it provides
a clean and hygienic environment to the tourists. The décor of the hotel needs to be
improved to attract a large number of customers (de Grosbois, 2016). The members of
Whitbread should provide theme based execution such as lid theme, heritage and culture
and also modern architecture etc.
Prices: the pricing strategies should be reasonable and affordable. High pricing strategies
should be applied in peak season however low pricing strategies should be adopted in the
off-season.
Promotion: promotional activities is to be done by the hotel Whitbread by using a different
type of media such as print media or digital media such as newspaper, magazine, online
internet services etc (Xiang, et al. 2015). website and mobile service app are to be designed
by Whitbread hotel on the priority basis.
Place: the location of the Hotel is in London which is one of the prime locations for business
and is easily accessible to customers; still it gives ample amount of opportunities to provide
facilities to tourists or visitors.
12

Thus these marketing strategies need to be considered by Whitbread plc in order to
improve positive impression on the customers by implementing improved marketing
strategies.
3.3 JUSTIFY STRATEGIES FOR HOW SELECTED WHITBREAD BUSINESSES
COULD RESPOND TO CHANGE
The marketing strategies mentioned in above task can help in improving the marketing level
and its elements in the UK. The product selected in marketing mix enables to create a
positive image among the customers about the products and services in the tourism market
(Bowie, et al. 2016). The pricing strategy will help in achieving the customer satisfaction
along with maintaining a level of profit or revenue. The promotional mix is very important
for any company in this competitive world. The cost perspective can be justified as the
marketing mix strategies are budgeted accordingly. The principle of the place is the easy
accessibility and [rime location since the Whitbread is located in the prime location it will be
beneficial for the company.
The UK is rich in heritage and cultural sites and its effective marketing is of great significance
to the UK as people from different part of the world like to visit to gather more information
about the places they visit. The marketing mix will help the Whitbread in analysing the
existing service with the current trends as well the requirements of the tourists or visitors
(Morschett, et al. 2015). The aim of this marketing mix is to be implemented in its division
that is Premier Inn and Costa coffee so as to gain a large number of employees which will
result in improving the services and products. This results in profit or revenue generation.
Hence the strategies mentioned will be beneficial for the Whitbread divisions such as
Premier Inn and Costa and enable them to respond to the changes in an efficient manner.
13

TASK 4
4.1 ANALYSE THE IMPACTS OF ISSUES AND TRENDS THAT DRIVE THE
CHANGES IN TRAVEL AND TOURISM SECTOR
The company like Trailfinders Ltd considers the following impact of the issues and trends
followed by the changes in the external factors are:
CURRENCY RATE: there is a consistent change in the economies of the countries that
changes in currency rate (Chandiok and Sharma, 2017). The Brexit reform impacted the
business such as Trailfinders Ltd. Instability in the economy of the country and also the
constant fluctuation in the currency rate result in tourist avoiding to visit such locations or
destinations. The purchasing decision of the traveller or tourist is influenced by the
economic condition of the country that is on the exchange currency rates and inflation rate.
SAFETY AND SECURITY ISSUES: there were series of terror attacks that resulted in the
creation of stringent security criteria to attain UK visa for the people located in different part
of the world. Now a day British Citizen cannot get access to visa for touring in other parts of
the world as compared to before.
GOVERNMENT INITIATIVES: it is necessary for the Government of the UK to have efficient
business in travel and tourism sector (Xiang, et al. 2015). Different initiatives have been
taken by the UK government to allure the tourists and enhance the opportunities for travel
and tourism business. The UK government focus on preserving and renovating the heritage
and culture of the country so as to promote tourism on an international level.
TECHNOLOGY: advancement in technology helps the travel and tourism operator in
performing their business in an effective and efficient manner. The business-like Trailfinders
Ltd has implemented technologies which help them in providing quick and easy services to
its customers and also execute the technology in distribution networks such as e-commerce
or online portals etc.
14

INSUFFICIENT INFRASTRUCTURE: proper infrastructure is essential in the travel and tourism
business such as transport mode facilities, easy access to roads, sufficient electricity,
telecom service, efficient water supply etc (Tussyadiah and Pesonen, 2016). the operation of
the business such as Trailfinders Ltd is highly impacted by the need for infrastructure in the
travel industry.
WEATHER CONDITIONS: the internal element that influences the tourism segment of the UK
is its climate condition. The climate condition of any country impacts the flow of tourists and
visitors in the country. If the climate is favourable for the tourist to visit the UK, it will be
attracted to visit (Tussyadiah and Pesonen, 2016). In case, the climate is unfavourable then
the customer is bound to withdraw the visit the locations of the UK.
15

4.2 DISCUSS THE LIKELY CONSEQUENCES OF BUSINESS FAILING TO
RESPOND TO MARKET CHANGE
If the business such as Trailfinders fails to give an appropriate response to the changes in
the market then the following are the consequences faced by the company Trailfinders Ltd:
DECLINE IN SALES: business is a very complicated process which needs to focus on the
changes being occurred in the market (McDonald and Wilson, 2016). It is essential for the
company like Trailfinders Ltd to retort to the changes in the external market. If the company
does not follow and implement the change in its operation, sales are bound to reduce which
will impact the efficiency of the company like Trailfinders Ltd. Trailfinders need to be active
towards the alignment of changes in the external market with its operations so as to
maintain the sales volume of the company.
REDUCED PROFITABILITY: if the company does not implement the changes this will result in
sales reduction and ultimately reduced profits (McDonald and Wilson, 2016). The customer
will be unsatisfied if the company fails to adopt the changes in the products and services of
the company like Trailfinders Ltd which will adversely impact the sales and profitability of
the company.
CHANGE IN THE NECESSITIES OF THE CUSTOMERS, SUPPLIERS OR COMPETITORS: the
attitude of the customer might change due to dissatisfaction with the products and services
of the company like Trailfinders that do not have upgraded technologies and facilities
(McDonald and Wilson, 2016). This ineffective will result in the interest level of the suppliers
and competitors will gain a competitive advantage over the companies like Trailfinders due
to inability to adopt the changes in the market.
NEGATIVE BRAND IMAGE IN THE MARKET: if the products and services offered by the
company like Trailfinders are not compatible with the changing environment in the market.
It will create negative image owing to dissatisfaction among the customers.
16

Thus these are the consequences that clearly imply that the company Trailfinders Ltd should
adopt and implement the changes in the market so as to sustain the business from downfall.
17

CONCLUSION
Thus it can be concluded from the observation that several current issues and trends affect
the operations of the business in travel and tourism industry (Becker, 2016). There are
various other issues such as globalisation, Brexit, terrorism, infrastructure which may either
positively or negatively impact the tourism industry in the UK. It is essential for the
companies to adopt the strategies according to their needs to adopt the changes in the
external environment and sustain its business operations.
18

REFERENCES
1. Baum, T., 2015. Human resources in tourism: Still waiting for change?–A 2015
reprise. Tourism Management, 50, pp.204-212.
2. Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon
and Schuster.
3. Bower, J., 2017. Whitbread: routines and resource building on the path from brewer
to retailer. Management & Organizational History, pp.1-23.
4. Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing.
Taylor & Francis.
5. Chandiok, S. and Sharma, P., 2017. Hospitality Marketing: Strategic Issues. In
Strategic Marketing Management and Tactics in the Service Industry (pp. 213-242).
IGI Global.
6. Cummings, T.G. and Worley, C.G., 2014. Organization development and change.
Cengage learning.
7. de Grosbois, D., 2016. Corporate social responsibility reporting in the cruise tourism
industry: A performance evaluation using a new institutional theory based model.
Journal of Sustainable Tourism, 24(2), pp.245-269.
8. McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to
profit from them. John Wiley & Sons.
9. Michailidou, A.V., Vlachokostas, C. and Moussiopoulos, Ν., 2016. Interactions
between climate change and the tourism sector: Multiple-criteria decision analysis to
assess mitigation and adaptation options in tourism areas. Tourism Management, 55,
pp.1-12.
10. Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Basic Types of Foreign
Operation Modes. In Strategic International Management (pp. 319-338). Springer
Fachmedien Wiesbaden.
11. Patil, Y.S. and Deshpande, N.D., 2017. KEYWORDS Hospitality, Tourism, Greening the
Supplies, Sustainability, Star Hotels, Eco-friendly, Environmental Management.
GREENING THE SUPPLIES FOR HOTEL OPERATIONS., (193).
19

12. Scott, J., 2017. Social network analysis. Sage.
13. Telfer, D.J. and Sharpley, R., 2015. Tourism and development in the developing
world. Routledge.
14. Tussyadiah, I.P. and Pesonen, J., 2016. Impacts of peer-to-peer accommodation use
on travel patterns. Journal of Travel Research, 55(8), pp.1022-1040.
15. Veal, A.J., 2017. Research methods for leisure and tourism. Pearson UK.
16. Vila, T.D., Darcy, S. and González, E.A., 2015. Competing for the disability tourism
market–a comparative exploration of the factors of accessible tourism
competitiveness in Spain and Australia. Tourism Management, 47, pp.261-272.
17. Wachowiak, H. ed., 2016. Tourism and borders: contemporary issues, policies and
international research. Routledge.
18. Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and
consumer behavior in travel and tourism: Insights from travel planning using the
internet. Journal of Retailing and Consumer Services, 22, pp.244-249.
19. Xiang, Z., Wang, D., O’Leary, J.T. and Fesenmaier, D.R., 2015. Adapting to the
internet: trends in travelers’ use of the web for trip planning. Journal of Travel
Research, 54(4), pp.511-527.
20