CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

Explore the current issues and trends in the travel and tourism industry, analyzing responses from companies like Whitbread PLC and Trailfinders Ltd. Understand the impacts of changes and strategies for effective management.

CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................5
TASK 2..............................................................................................................................................7
2.1................................................................................................................................................7
2.2................................................................................................................................................9
TASK 3............................................................................................................................................11
3.1..............................................................................................................................................11
3.2..............................................................................................................................................13
3.3..............................................................................................................................................16
TASK 4............................................................................................................................................18
4.1..............................................................................................................................................18
4.2..............................................................................................................................................19
CONCLUSION.................................................................................................................................21
REFERENCES...................................................................................................................................22
1

INTRODUCTION
The travel and tourism industry is one of the huge industries in the world. It has been
continuously growing with time and also facing different changes in the operations of the
industry. In this report, different areas of travel and tourism industry have been discussed in
order to attain effective understanding and knowledge of the required areas. Initially, the
current issues and trends are analyzed that have a certain influence on the tourism operations
(Connell, 2013). Further, the response is evaluated which are taken by the tourism industries
regarding the changes. At last, the impact has been identified on the travel and tourism
industry regarding the changes.
2

TASK 1
There is number of changes that occur in the recent time in travel and tourism industry. These
changes have influenced the business operations of the tour companies to the huge extent. The
event at London Excel was helpful in developing knowledge for handling the issues in travel and
tourism industry. An information pack has been developed which helps in understanding the
changes and issues effectively.
1.1
The travel and tourism in the UK have attained a huge growth in the recent time. In addition,
there is number of issues that occur in the industry which made several changes in the industry
(Moutinho, 2011). The UK is one of the highly preferable destination sites by the tourist and the
government also takes necessary actions for fulfilling the demand of tourists in order to grow
tourism industry. Recently, there are several issues that observed that affects the travel and
tourism industry in the country. Some of the issues are explained below:
 HEALTH ISSUES
It is the major aspect which affects the tourists to visit certain destination sites. The
major concern of the tourist at the destination site is that they are safe and healthy so
that they enjoy their tour. It is the responsibility of the government to take necessary
actions at the destination sites to encourage tourism.
 STATE OF ECONOMY
The recession period has resulted in a negative influence on the economy of the
country. It also increases the unemployment rate in the country (Wachowiak, 2016). The
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low economy has a great influence on the travel and tourism industry as the price of
products and services increases.
Figure – UK Economy
[Source - http://www.cityam.com/article/tourists-splash-cash-despite-weak-
economy]
 TERRORISM
The terrorism issue has influenced the travel and tourism industry to a great extent.
There are several terrorist activities that occurred in the European countries which
further influence the travel and tourism operations (Evans, et al. 2012). For instance,
mass killing in France where 141 people died and then in 2011 when several people died
due to riots. The tourists avoid visiting such kind of destination sites due to this issue.
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1.2
There are different issues that are observed in the travel and tourism sector which affect the
operations at great extent. There are other issues also along with the aforementioned issues
which affect the travel and tourism industry. The issues are severe weather, national and
international legislation, political unrest, terrorism, etc. Some issues are explained below:
 TERRORISM
The terrorists conduct terror activities at different sites in order to develop fear and
anxiety among the individuals. There are several terror activities of terrorists like mass
killing, bomb blasts, firing, explosion, etc. It further influenced the travel and tourism
industry in the country (Baker, 2014). The terrorist activities in the European countries
have highly influenced the tourism operations. The tourist's concern for their health and
safety during the visit to such kind of destination sites. For instance, terrorist activities in
France, London, Syria, and Turkey affect the travel and tourism industry.
5

Figure – Terror threats on Tourism Sites
[Source - https://www.express.co.uk/travel/articles/629745/Turkey-s-tourism-in-
DECLINE-following-HIGH-THREAT-of-terror]
 POLITICAL UNREST IN NORTH AFRICA AND MIDDLE EAST
The government of Egypt and Tunisia has taken several actions for encouraging travel
and tourism operations in the country so that tourists visit their countries. Irrespective
of the government actions, the situation of travel and tourism industry didn’t change
(Dickinson, et al. 2014). In addition, the nearest areas are suffering from political unrest
and infrastructural development such as Libya and Algeria that affects the travel and
tourism industry.
There are several strategies such as low airfare, attractive tour destination packages,
etc. are developed by the government but the tourist avoids certain kind of destination
sites where the health and security are not assured.
6

7

TASK 2
There are different trends in the travel and tourism sector that influences the change at great
extent. An information pack has been developed by the travel operator name Titan Travel for
their employees to understand the trends effectively.
2.1
The current trends have influenced the travel and tourism industry in the UK in the great
industry. The major current trends are sports tourism, domestic tourism, globalization, and
inbound tourism (Sharpley and Stone, 2010). The trends are explained in details as follows:
 Sports Tourism
The trend of sports museum in the UK has been increased rapidly. There are various
sports activities that are conducted in the UK such as cricket, football, tennis, snooker,
etc. which attract the huge number of tourists. For instance, in London Olympics, the
tourism industry has grown by around 230%.
 Domestic Tourism
The local people in the country visited the destination site of the country in the
domestic tourism during the vacation and weekend period (Falk, et al. 2012). The local
people usually visited other cities in the country due to watch sports tournaments or
visit scenic places.
Figure – Tourism in UK
[Source - https://www.visitbritain.org/visitor-economy-facts]
8

 Globalization
The globalization has enhanced different activities in the country such as exchange of
ideas, products, opinions, services, etc. which helps the local people as well as the
tourists. The globalization has positively influenced the travel and tourism industry to
the great extent and develops growth opportunities (Desbordes and Richelieu, 2012).
The improvement areas are the development of communication, transportation,
infrastructure development, etc. The UK government also uses advanced technology like
ICT for promoting tourism.
 Inbound Tourism
The tourist from other countries visits the destination sites of the host country in
inbound tourism. The UK travel and tourism industry have been strengthened by the
inbound tourism operations (Sharpley and Telfer, 2014). The major preference of the
tourists at the destination sites are beautiful sites, transport facilities, weather, etc.
Figure – Inbound Tourism in the UK
[Source -
https://www.visitbritain.org/annual-review/annual-review-2015-16/inbound-
tourism-performance]
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2.2
The niche market is the subpart of the market that focused on the specific product. There are
different aspects which are considered in the niche market such as price range, production
quality, demographics, etc. The sports tourism has attained a huge growth in the recent time
which strengthens the travel and tourism industry of the country at the substantial level
(Hannam, et al. 2014). In the UK, various sports activities have been conducted such as cricket,
football, snooker, tennis, etc. which attracts the sports lover from all over the world.
POSTER
In the UK, several cricket tournaments have been conducted such as international cricket
matches, county cricket, etc. There is huge fan following of cricket that attracts people from
different countries to visit the country. In addition, the major tennis tournaments conducted in
the UK is Wimbledon and other tennis tournaments which are also watched by the visitors.
Further, several football tournaments are held in the country like English premier league, cup
matches, etc. that is highly famous in all over the world. It is also a major reason due to which
people visited the country. Along with this, the major snooker tournaments also attract visitors
10

like World Snooker Championship, UK Championship, Scottish Open, World Open, European
Masters, etc. These sports tournaments and events in the country have highly attracted the
visitors from all over the world (Dickinson, 2011). In addition, it strengthens the travel and
tourism industry to great extent.
Figure – Sports Tourism
[Source - https://www.sportengland.org/research/benefits-of-sport/economic-value-of-
sport/]
According to Sports Tourism Index, it has been evaluated that the sports tourism in the UK has
been increased by 125% which helps in strengthening the country’s economy. In addition, it is
observed that the tourists have an opportunity of visiting different sports in the country at the
same period of time. Also, the cost of travelling and accommodation is low as compared to
other countries which also attract the tourist from different countries.
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TASK 3
TITLE – RESPONSE OF TRAVEL AND TOURISM SECTOR REGARDING THE CHANGES
INTRODUCTION
In the recent time, the huge growth has been attained by the travel and tourism sector. It is
essential for the industries in travel and tourism sector that they made enhancement in their
business operations to attain effectiveness. Here, the Whitbread PLC which is one of the largest
hotel chains in the UK has been influenced by the changes. The Whitbread PLC business is
majorly segmented in Primer Inn and Costa Coffee (Cohen and Cohen, 2012). These businesses
have to respond properly towards the changes in order to gain success in the market.
BODY
3.1
Whitbread PLC is a huge name in the hotel and restaurant industry of the UK as they have a
large number of hotels and restaurants. They have around 50,000 employees that are working
in their hotels, restaurants, and coffee shops. Also, there are around 2000 outlets of Whitbread
PLC that are operating in the major areas of the UK. The Whitbread PLC business is majorly
segmented into Primer Inn and Costa Coffee. The appropriate response towards the changes
could be developed by analyzing tools like SWOT Analysis and PESTLE Analysis. The SWOT
Analysis for Whitbread PLC has been explained as follows:
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STRENGTHS WEAKNESSES
 Large number of outlets in the market
of UK
 Increasing market share
 Huge experience in business
 Strong partnership with suppliers
 Large consumer base
 Strong brand name
 Understanding of hospitality
management
 There are chances of business quality
might affect due to business expansion
 Situation problems arise due to new
products and services
 Low brand awareness in market
 Huge competition
 Ineffective business operations due to
political condition
OPPORTUNITIES THREATS
 Huge growth opportunity due to
market trends
 Demand in the global market
 Economy growth in business
 Rate of interest is high
 Competition is huge which affect the
profitability
 Costing is high
Further, the PESTLE Analysis is helpful for Whitbread PLC in understanding the macro
environment of the business effectively.
 POLITICAL
The political strictness regarding the business operations has been influencing the
business of Whitbread PLC at great extent. In addition, the current BREXIT issue also
affects the growth opportunity for them (Kaminski, et al. 2013). The laws and legislation
of the UK government somewhere influence the business functioning.
 ECONOMIC
The economy of the country is stable right now but the effect of recession period is still
observed in business operations. The inflation rate, the rate of exchange, and the
foreign exchange rate has been influencing the Whitbread PLC. The chances of
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economic growth for Whitbread PLC have been affected due to the business
environment. The GDP of the country has the certain influence on the business.
 SOCIAL
The hospitality industry is highly dependent on the social and cultural aspects.
Whitbread PLC provides several products and services to their consumers as per their
requirements (Telfer and Sharpley, 2015). In addition, the demographic and geographic
aspects influence business functioning which should be effectively analyzed.
 TECHNOLOGICAL
The advancement in technology has provided the substantial growth in the business. In
the case of Whitbread PLC, they are using technology in their business operations but
they need advanced technology to smoothen the functioning and providing quality
service to their consumers.
 LEGAL
The laws and legislation regarding the business have hindered the business functioning
to the certain extent. The trade policies, governmental norms, and taxes have the
certain influence on the business functioning (Cohen, et al. 2014). It is important for
Whitbread PLC to follow requires laws and legislation in order to attain effective
functioning.
 ENVIRONMENTAL
The products and services which are provided by the Whitbread PLC have been based
on the environmental policies and procedures of the government. In addition to this,
there are certain aspects such as the change in climate and severe environment that
affects the business. The business operations of Whitbread PLC should be enhanced by
considering the required areas effectively.
3.2
The micro and macro environment of the Whitbread PLC has been analyzed effectively and it
will be helpful in developing the strategies in order to effectively respond towards the changes
in the industry. The business operations and functioning of Premier Inn and Costa Coffee could
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be enhanced through the analyses. In addition to this, the marketing mix of both the companies
also helps in selecting the appropriate strategy for the business development.
ELEMENTS PREMIER INN COSTA COFFEE
PRODUCT  The hotels and
restaurants of premier
Inn are equipped with
high-quality suite and
food items along with
the different services.
 The products and
services provided by
Premier Inn are of high
quality and fulfil the
consumer
requirement.
 The Costa Coffee
provides high-quality
handmade coffee
along with superior
services.
 There are different
competitors in the
market that are
providing similar
services to the
consumers.
PRICE  The existing price of
the products and
services of Premier Inn
are quite high which is
not affordable by
middle-class people.
 It is important for
Premier inn to
effectively manage
their prices for gaining
huge consumers
(Pomering, et al.
2011).
 All the Costa Coffee
chains provide the
handmade coffee to
their customer and the
quality of coffee is also
high.
 The price of their
products is very high
than usual but it
complements the
quality of products.
Still, it needs
enhancement.
PROMOTION  There are several  Costa Coffee has a
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platforms such as
social media sites,
print advertising which
could be used for
promoting the
products and services
at the different level.
huge reputation in all
over the world such
that the requirement
of promotion is low for
them.
 The brand name easily
gains the attention of
the consumers.
PLACE  The business of
Premier Inn could be
expanded to different
areas in the world as
the growth
opportunity is huge.
 The major consumers
of the Costa Coffee are
the upper-class people
and business class
people. It is important
to expand the business
in developed areas for
business growth.
According to the aforementioned analysis of Premier Inn and Costa Coffee on different aspects,
it has been evaluated that the most appropriate strategies for responding towards the changes
are:
Market Development – In this strategy, the company introduced their existing products and
services in the new market for attaining desired growth and success. This strategy will be most
effective and appropriate for Premier Inn.
Product Development – As per this strategy, the company develops new products and services
in the existing market in order to increase their market share. This strategy is effective and
suitable for Costa Coffee in enhancing their business functioning.
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3.3
The strategies which have been selected for Premier Inn and Costa Coffee would be helpful in
effectively enhancing their business operations and also giving an appropriate response
towards the change in business. The strategies which are incorporated into the companies are
Market development and Product development. The problem facing by Premier Inn is that they
attained required growth in the major market but they want to expand their business for
becoming the leader in the market (Mariani, et al. 2014). The market development strategy will
be helpful for them in expanding their business in other major areas of the world. Introducing
their products and services in the new market helps in gaining effectiveness
Currently, Costa Coffee has been facing low profit due to their high prices and similar products
such that they need enhancement in their business which could be done by introducing new
products and services. The product development strategy is helpful for them in working with
this aspect effectively.
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CONCLUSION
It has been concluded from the above report that the companies need to regularly analyze the
environment and take required actions for attaining growth in business. The analyses tools are
helpful for the company in identifying their different zones regarding the business. Also, the
strategies are developed as per the market requirement in attaining business growth.
RECOMMENDATIONS
The company should effectively monitor and control the implementation of strategies such that
they are fulfilling the required objectives or not. Also, the market trends should be effectively
analyzed so that better functioning could be attained.
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TASK 4
TITLE – IMPACTS ON THE TRAVEL AND TOURISM SECTOR REGARDING THE CHANGES
INTRODUCTION
There are several changes that have been observed in the travel and tourism industry which
has been influencing the business operation to great extent. The changes have influenced
various companies like Trailfinders Ltd. In this report, different impacts have been discussed
regarding the changes in the travel and tourism sector. Also, the consequences are discussed
when the companies failed to respond towards the changes.
BODY
4.1
There are several elements on which the travel and tourism sector has been dependent. It is
essential for Trailfinders Ltd. that they understand the issues in the business and effectively
take appropriate actions. There are several changes and issues that are observed in the travel
and tourism sector which should be handled suitably. The major issues are explained below:
 Employment Issues
The travel and tourism industry is one of the largest industries in the world but the
employment opportunity in this segment is seasonal. There are several individuals that
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are unemployed during the rest of period (Hall and Page, 2014). In addition, when the
companies required the employees they don’t have them. It is important for
companies like Trailfinders Ltd. that they recruit potentially skilled employees for a
longer period of time so that they fulfil their objectives effectively.
 Holiday Trends
The consumer perception regarding holidays has been enhancing with time such that
the consumer is preferring holiday packages for the longer period. In addition, the
preferable destination site is related to adventure and attractive. The requirements of
the consumer should be fulfilled by developing suitable packages.
 Stakeholder Issues
The travel and tourism industry has been based on the involvement of several
stakeholders. The stakeholders are suppliers, hotels, travellers, vendors, etc. and their
prices might affect the tour companies. The tour companies like Trailfinders Ltd. has to
effectively maintain the healthy relation with every stakeholder in order to provide
high-quality services to consumers.
4.2
The changes that are observed in the travel and tourism sector have the certain influence on
the business operations. It is necessary for the tour companies like Trailfinders Ltd. to take
appropriate actions toward the changes and attain stability in their business. There are several
consequences which are observed in the travel and tourism sector when the companies failed
to respond towards the changes which are explained below:
 Low Profit
The inefficiency of the tour companies towards the changes results in the low
generation of revenue and profit (Minca and Oakes, 2012). It is essential for the
companies to effectively respond to the changes for gaining huge profit.
 Negative Image in Market
20

The insufficiency of the tour companies towards the requirement of consumers affects
the business operation to great extent. It further develops the negative image of the
company in the market.
CONCLUSION
The aforementioned report is helpful in understanding the issues and changes that occur in the
travel and tourism industry along with the consequences that occur when the company failed
to respond towards the change. In addition, it is essential for the tour companies to effectively
monitor those issues and take necessary actions.
RECOMMENDATIONS
Suitable strategies and tactics should be used by the tour companies for handling the changes
effectively. Regularly monitor the business trends and changes and implement required
measures.
21

CONCLUSION
It has been concluded from the above report that the travel and tourism industry has been
attaining huge growth with time and also facing several changes that influence the operations
of the industry. In addition, the report is helpful in understanding the areas due to which the
travel and tourism industry has been affected along with the areas that are in demand by the
tourists. Overall, the report helps in developing the huge understanding of the travel and
tourism industry.
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