Contemporary Issues in Travel & Tourism (PDF)

Contemporary issues in
travel and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues driving changes in travel and tourism sector.........................................................1
1.2 Different current issues by using appropriate methods and resources.............................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travel business or a tourist destination..................3
2.2 Analyse a current trend using techniques and resources..................................................4
TASK 3............................................................................................................................................5
3.1 How travel and tourism business could respond towards changes ..................................5
3.2 Develop strategies to respond changes.............................................................................7
3.3 Justify these strategies......................................................................................................8
TASK 4............................................................................................................................................8
4.1 Impact of issues and trends which drives changes...........................................................8
4.2 Consequences of businesses falling to respond market changes....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term travel and tourism can be used interchangeably, in which tourism can be
defined as a movement from place to place in order to improve knowledge of different sites and
places. Thus, travel and tourism sector has undertaken all changes at wide context. The travel
and tourism industry is getting progressed and advanced because the number of customers are
raised day by day. In UK, tourism industry has contributed around 3.12 million jobs; visitor
exports are a key component of the direct contribution of Travel & Tourism. In 2016, United
Kingdom generated GBP27.3bn in visitor exports. The business has indicated high advance as
far as benefits, incomes and items and administrations. In any case, in the meantime the business
faces a few difficulties and issues that must be dealt with adequately by the organizations
working in this industry. The report will outline the entire aura in which travel and tourism
business operates; there will be a discussion on various issues which can occurred in travel and
tourism as well as its impact on business operations. The present scenario of travel and tourism
industry has been changed that supports to attain and retain customers towards tourism.
TASK 1
1.1 Issues driving changes in travel and tourism sector
Due to globalisation, criteria of travel and tourism business has been totally changed. Now it
has become one of the leading activity worldwide which has a vast impact on economic
condition of the country. But, in the present scenario several changes has been occurred in this
sector that has a vast impact on growth and success of travel and tourism industry.
Following is defined different issues which are involved in travel and tourism sector, such as- Lack of proper infrastructure – Basically, travel and tourism requires effective and
innovative infrastructure that is able to attain and retain visitors. It requires number of
physical aspects, such as - like passage ports to transport modes to urban structure like
access streets, power, sewerage, water supply and telecom. Thus, it is too difficult to
manage all these things a systematic manner. Human resources – Availability of proper human resources is also one of the key
challenge for travel and tourism business. To obtain vitality or advancement in
travelling business, there is required trained or well skilled workforce at each level, i.e.
managerial, supervisory etc. Thus, tourism sector is facing talent crisis at the level of
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front line staff, top or mid level of administrations. Rising cost of fuel - Tourism and travel industry is significantly dependent on fuel costs
cause several transports are required to visit one place to another. The most recent
increment in the fuel value like gas highly affects the entire segment. With the fuel cost
on ceaseless increment, numerous clients may require changing their spending or length
of the excursion length in order to pay for included fuel costs. The organizations
working in this industry contemplate this test and search for inventive approaches to
manage it. Technological advancement – Due to technological advancement, there has increased
market competition for every industry in order to accomplish organisational goals and
objectives. By using these aspects Titan travel will also improve its service quality. But
adoption of digital techniques also increases cyber crime or web attacks which have an
adverse impact on firm's activities or operations. On the other hand, role of technology
allows to render virtual tour to companies as they can make perfect use of it. For
instance – virtual tour has improved potential tourism in terms of giving new experience
to travellers.
 Increasing environmental awareness – Another critical aspect that drives changes in
travel sector is environmental awareness, as it is significantly important in order to
protect natural resources or environment from any kind of harm. Although, people are
tend to aware about environment as well as companies also take participation so as to
get wide spectrum of travel and tourism. Each gathering has their obligation to
contribute for the security and insurance of ecological assets.
1.2 Different current issues by using appropriate methods and resources
The term travel and tourism has a crucial role in raising and supporting economic growth of the
nation. It increases job opportunities and improves living standard of people; it results driven
disposable income of people. But technology advancement and changes in whether conditions
are most of major issues which has a huge impact on growth of travel and tourism business.
Studies conducted so as to forecast demand of travel and tourism which is too limited. On the
other hand, terrorism and violence issues also known as one of the major concern for tourists
who visits UK. It increases fear and hostility which has a harmful impact on current mood or
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enthusiasm of tourists and they don't prefer to visit such places.
Beside this, improper availability of airlines reduces the accessibility of tourist
destinations; it also requires different trained workforce which is quite difficult to identify
because a few have ability to handle foreigners in proper manner. Along with this, air
emissions, solid waste, sewage, chemicals and oil are higher in UK.
Sometimes, cultural value of a specific region get reduced or degraded while making
certain modifications in order to capture customers' eye and giving more attention to their value.
Thus, to raise the demand of tourism cultural value to be compromised, for this traditional
foods, costumes etc. should be provided which leads to bring positive feelings in customers
mind. Instead of addressing negative impact, tourism also has positive impact upon a nation.
The present economy condition of UK is to fulfil job requirements. Since many years, aura of
tourism industry is rapidly increasing, it is able to generate potential job opportunities to people
in order to improve living standard of individuals. Therefore, the business is considered as a
feasible sector not only providing direct employment but also of creating several indirect jobs.
It enables government and its regulatory bodies will earn maximum tax revenues which can be
used for different developing activities of a nation.
TASK 2
2.1 Current trends influencing change in travel business or a tourist destination
Different forms or types of tourisms pertained in order to maintain distance from traditional
cardinal rule; it means to develop a healthy and positive relationship between local communities
and visitors which is one of the most significant thing for getting sustainable tourism
development. Following are the main forms of tourism which are in market trend, such as-
 In bound and out bound tourism – Both tourisms have a significant impact on financial
health of the nation. When a nation like UK attain numerous inbound tourism, the
visitors spend amount on hotels and other amenities. It generates jobs by consuming
taxes. On the other hand, outbound tourism creates certain in origin of a nation as here
tourists buys different things, i.e. plane tickets, travel insurance etc.
 Health tourism – In order to reduce day to day work life stress people prefer to go on
health tourisms where they can get best health treatments. Many travelling companies
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are providing the same at very lower costs in order to attract more and more people from
various backgrounds. The visibility in the overseas markets is gradually getting a boost.
Medical tourism involves various elements, i.e. Yoga, naturopathy, Ayurveda etc.
 Agro-rural tourism – It is assessed that people who lived in rural areas cannot get aware
about tourism activities and current market changes. Hence, the need to rural tourism
has been determined and considered it is as priority. The concept has been taken so as to
improve the quality of work life of rural people and giving them innovative experience
of tourism. Rural tourism also provides several facilities in respect of sanitation,
accommodation, accessibility and security.
2.2 Covered in Poster
TASK 3
3.1 How travel and tourism business could respond towards changes
Changes in cooperative world has a wide hindrance on attitude or interest of visitors.
Thus, to respond in an imperative way it is necessary for travelling companies to develop
marketing plan and policies; it results accomplishment of business goals and objectives in the
best possible manner. Although, for every business association it is fundamental to respond
effectively towards market changes. Whitbread Plc is a multinational chain of hotels and coffee
shop which headquarters is in UK. The organisation has its own origins in brewing. The annual
revenue of Whitbread Plc is £3.106 billion by having 750 hotels over the globe.
Henceforth to respond in an effective manner, the firm has conducted internal and
external environmental analysis by using SWOT and PEST analysis. Brief description of both of
them is stated as under: -
PEST analysis of Whitbread Plc: -
Political factors Economic factors
The political stability of a nation is extremely
essential in order to identify the image of
tourist destinations in specific regions to
Financially or economically, tourism industry
is treated as one of the largest industry,
customers also getting high satisfactions in this
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attracts more and more visitors. Political
factors involves terrorism, warfare, coups and
violence also has an adverse impact on growth
and development of tourism industry (Mariani
and et. al., 2014). Various elements like –
strikes, political unrest, laws and regulations
that is regulated by the government of each
state or nation. Although, political instability
generates poor publicity; it results an inevitable
decline in visitors arrivals.
realm. Along with this, UK is a developed
nation, here disposable income of people is
always high. It results people are capable to
spend more and more amount in leisure or
travelling activities (Luh Sin, Oakes, and
Mostafanezhad, 2015). Therefore, sales and
profitability of travelling industry is also able
to maintain strong market position or goodwill
of the company in comparison with its
competitors.
Apart from this, fluctuations in currency rates
of nations also affect marketing of international
tourism suppliers.
Social factors Technological factors
There are specific features or traits in tourism
sector which have a crucial role in order to
make a business popular among its target
audiences. The prone of tourism industry is to
maintain quality of products and services.
Basically, innovative cultural or attractive
infrastructure of tourism is always attracts
customers. While formulating plan for a
specific tourism location Whitbread Plc always
considered values, beliefs and norms of people
who belongs from diverse cultural (Hannam,
Butler and Paris, 2014.).
Aside from this, while travelling people always
consider certain factors like – drug usage, level
of social interaction, criminal activities and
crowed behaviour.
In the aura of technology of innovation, every
business entity is trying to acquire latest
market trends or tools so as to produce in better
manner. Likewise, Whitbread Plc has also
adopted innovation in its domain; the firm is
trying to modifying its business operations,
transportations, restaurants, bars etc. so as to
deliver luxurious experience of tourism
activities to people (Kim and Ritchie, 2014).
When considering airline business, the cited
tourism company used all up to the mark tools
in its fleet or plans. Therefore, optimum
utilisation of technology supports to make
comfortable tourism business.
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SWOT analysis of Whitbread Plc -
Strength
Increasing constant demand of tourism
Customer focused and great social experience.
Ability to provide specific market.
Effective branding and merchandising
Weaknesses
Competition for independent license house
Negative public image
Higher opportunity cost
Opportunities
Emerging market trends
New products – diversification, bring new
innovations etc.
International market- enhance greater share.
Threats
Economics of scale from larger companies.
Political instability of the nation.
High market competition.
3.2 Develop strategies to respond changes
Various techniques and policies can need by tourism organisations for getting higher
edge of competitive. In this, Whitbread Plc can acquire techniques of marketing mix so as to
retain and achieve consumers for a long period of time. It aid organisation in grabbing better
further opportunities within future as well as give higher share of market. There are four
elements of marketing mix are discussed below: Product: This goods of companies must satisfy their wants and needs of consumers in a
better possible way. Services and products are given by Whitbread Plc are very attractive
and qualitative which enables for retaining consumers for a long time. Additionally,
operating a tour concentrate on creating a innovative and effective services of travelling
for their customers as well as targets for providing better experience of tourism sector. Price: This policy of pricing of an organisation play a imperative retaining and attaining
customers. Whitbread Plc is one of most leading brand of hotel. Hence, enhance company
that how to decrease producing as well as operating cost. This organisation also run
within international market as it achieve product as well as competitive differentiation
policy of pricing for retaining within market successfully. In this pricing policy, goods of
company are different from their competitors.
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 Place: Whitbread Plc is mainly known by internationally because of novel and
innovative goods and services. This company is having 70,000 rooms and 750 hotels all
over the world. They are situated in various areas like as tourism places, airports, malls
etc. In this Whitbread Plc is also aid in enhancing enterprise in various areas for
improving strength of business.
3.3 Justify these strategies
Whitbread Plc is an independent tour provider company by having a chain of numerous
hotels and restaurants. The firm tends to provide quality service to its target and potential
customers and always look ahead how to fulfil needs and wants of people in the best possible
manner. In this manner, the firm has used an effective strategy which will provide numerous
benefits to the firm and supports it in gaining high competitive edge (Hall and Page, 2014). As
per above discussion, to respond towards market changes positively, Whitbread Plc has acquired
external market analysis; it will aids to determine all those factors which have direct and indirect
impact on growth and vitality of the company. On the other hand, to boost up the quality of its
offerings the tour provider is using different techniques by considering marketing mix
components, i.e. product, price, place and promotion. Along with this, due to changes in market
trends the firm offers travel services to people by using different forms of tourism. It will
enhance the performance level of company and expand functional areas by enlarging client base.
TASK 4
4.1 Impact of issues and trends which drives changes
In past decades, travel and tourism industry has obtained higher growth and rapidly
becoming one of the fastest growing sector over the world. Trailfinders Ltd., is a largest
travelling service provided company which remains privately owned, and has a staff of over
1000, and has made travel arrangements for over 15 million clients. The entire business
association has left a strong foot print on consumers' mind. Along with this, in UK tourism
business is running effectively due to its imperative brand image, promotional activities, quality
of services, best holiday packages, tourist information centre etc. rather than other countries
(Dickinson and et. al., 2014). As per the above discussion, different issues or barriers which
drive changes in tourism industry which are stated as under: - Impact on business – Companies which are involved in providing travelling services to
visitors are getting higher growth and development within their business. By
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implementing new technologies or measurements, Trailfinders will be able to deal with
raising demand of tourism. Although, the sales of ratio of tourism is high rather than
other industries as well as it also improves revenue generation abilities of organisations
tremendously. Apart from this, in context of environmental awareness which also has a
vast hindrance on aviation sector. Firm are now focusing on clear set of standards so as to
decreases wastages in a systematic manner. Ahead, due to fallen in fuel prices now
people prefer to cover domestic tourism by using various methods of transportation. Impact on products and services – Changes in market trends are also able to improve
service quality in an effective manner so as to sustain maximum competitive edge in a
certain time period. Adoption of new techniques improves the quality of products and
reduces production (Connell, 2013). Along with this, number of products and services
also affected due to uncertain economic and security measures because wide range of
population is not interested to get these products as they are too expensive. Another
services, i.e. virtual tour, reservations can be done easily by accessing at home; it
facilities firm to focus on customers' conveniences in order to attain and retain them for
long term period. Impact on employment levels - In past decades, tourism industry is able to provide
employment opportunities to local people of UK. Due to its wide nature, large number of
workforce is required in order to fulfil all tasks and activities in the best possible manner
and highly contribute in organisational growth and advancement. In this modern era,
demand of tourism activities are raising day by day thus, employment generation has
taken large place in development of travel and tourism business (Cohen and et. al., 2014).
In this manner, Trailfinders Ltd., has decided to hire people who have capability to
effectively hire well skilled and qualified people.
 Lack of differentiation - It is treated as one of the major challenge that is being faced by
travel and tourism business. Small and large business associations offers similar products
in order to gain high competitive advantage rather than its competitors. For this purpose,
Trailfinders Ltd., have to develop or design new and attractive tour packages on regular
basis which supports to uplift economic growth of business organisations.
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4.2 Consequences of businesses falling to respond market changes
In 21st century, travel and tourism industry has become one of the successful in sector in
United Kingdom, it provides coastal areas, clean beaches and archaeologic sites to visitors who
come from western countries. UK has ranked 25th over 140 nations in terms of travel and
tourism. On the basis of 2012, World travel and tourism council stated that tourism sector of UK
had earned 52.80 billion which 14.5% share of its entire GDP. Traifinders Ltd., is one of the
leading firm which offers travel services to clients in UK and Ireland by having own centres in
30 at there. Due to globalisation and invention of ICT tools different challenges in travelling
industry are being occurred (Cohen and Cohen, 2015). It is essential for firms to develop plans
so as to respond effectively towards market variations and gain high competitive edge. But
sometimes businesses get failed so face these challenges which can affect their business
operations or practices. There are various consequences are being occurred while a business fail
in order to respond towards changes which are stated as follow: - Decreases in sales and profitability – There could be increases chances of potential loss
as customers will prefer to those organisation which are capable to poised with market
trends. On the other hand, not adopting strategies and effective tools might be resulted to
failure in responding towards environmental changes (Becker, 2016). It may results fail
in reductions or sales in profitability of the firm and it cannot get high competitive edge. Changes in attitude of stakeholders – failure to implement changes also moved interest
of stakeholders of the company, i.e. employees, management, customers etc. because
every stakeholder wants to connect with that brand that have high market value and
share. As if firms will respond towards changes then it cannot stay for long term period in
target market; thus employees or stakeholders will turn around their interest within that
organisations. On the other hand, it might be also lead to external vendors who are more
dominating towards business capitalising on the business conditions; it reduces the ability
to move in line changes with market conditions.
 Negative impact over image of associations – It also lead to decreases confidence of
social and further elements upon business and its extinction as well. Apart from this,
businesses are not able to respond towards changes then it put a negative impact on
market position of the company in respect of quality of products or services (Baker,
2014). Because, in this present scenario every firm is tend towards acquiring new and
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innovative techniques so as to respond effectively towards market which improves the
quality of their offerings.
CONCLUSION
From the above mentioned report, it get analysed that travel and tourism plays a crucial
role in growth and success of every country's economy. The report has stated different issues
which initiates changes in travel and tourism industry, for this an analysis has been made by
using appropriate methods. In addition, current trends of tourism also has presented so as to
render a better understanding of entire industry. In order to respond effectively towards market
changes, it is essential for business associations to create SWOT and PESTLE analysis so as to
assess numerous factors which are involved in internal and external environment.
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REFERENCES
Books and Journals:
Baker, D. M. A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage. 2(1). p.9.
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Cohen, E. and Cohen, S. A., 2015. A mobilities approach to tourism from emerging world
regions. Current Issues in Tourism. 18(1). pp.11-43.
Cohen, S. A. and et.al., 2014. Understanding and governing sustainable tourism mobility:
Psychological and behavioural approaches (Vol. 43). Routledge.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
Dickinson, J. E. and et.al., 2014. Tourism and the smartphone app: Capabilities, emerging
practice and scope in the travel domain. Current Issues in Tourism. 17(1). pp.84-101.
Hall, C. M. and Page, S. J., 2014. The geography of tourism and recreation: Environment, place
and space. Routledge.
Hannam, K., Butler, G. and Paris, C. M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Hartmann, R., 2014. Dark tourism, thanatourism, and dissonance in heritage tourism
management: new directions in contemporary tourism research. Journal of Heritage
Tourism. 9(2). pp.166-182.
Kim, J. H. and Ritchie, J. B., 2014. Cross-cultural validation of a memorable tourism experience
scale (MTES). Journal of Travel Research. 53(3). pp.323-335.
Luh Sin, H., Oakes, T. and Mostafanezhad, M., 2015. Traveling for a cause: Critical
examinations of volunteer tourism and social justice. Tourist studies. 15(2). pp.119-131.
Mariani, M. M. and et. al., 2014. Managing change in tourism destinations: Key issues and
current trends. Journal of Destination Marketing & Management. 2(4). pp.269-272.
McKercher, B., 2016. Towards a taxonomy of tourism products. Tourism Management. 54.
pp.196-208.
Oviedo-García, M. Á., 2016. Tourism research quality: Reviewing and assessing
interdisciplinarity. Tourism Management. 52. pp.586-592.
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