Tourism Management: Challenges and Trends

This assignment delves into the complexities of managing tourism effectively. It examines current challenges faced by the industry, including environmental sustainability, economic development, and cultural preservation. The assignment also explores emerging trends shaping tourism, such as technological advancements and evolving traveler preferences. Students are encouraged to analyze various perspectives on responsible tourism practices and their impact on destinations.

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- Current issues and impact of political unrest in the Middle East and North Africa............2
TASK 2 ...........................................................................................................................................3
TASK 3............................................................................................................................................3
3.1 Way by which International Airlines Group businesses could respond to change...............3
3.2 Strategies for International Airlines Group businesses.........................................................4
3.3 Ways in which selected International Airlines businesses could respond to change............5
TASK 4............................................................................................................................................6
4.1 Impacts of issues and trends that drive change in the travel and tourism sector..................6
4.2 Consequences of businesses failing to respond to market change in travel and tourism
sector...........................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
“It's all experiences that counts in the end.” Similarly, in providing these experiences
various companies are putting their efforts. Talking about travel and tourism sector various
renown companies are operating to provide best possible satisfaction to their customers. But
there are various issues which are faced by these companies. They are ever changing as
environment is dynamic in which this sector operates. In this documents a brief justifications for
contemporary issues in travel and tourism sector has been illustrated. This will help a researcher
to develop knowledge in this sector.
This report introduces issues and trends in travelling sector which acquire huge part in an
economy of a country. All related impacts and strategies to deal with these issues have been
illustrated in this study. As we know customers are getting smarter so as their demands hence,
companies who are operating to provide these services have to adapt changes and flexibility in
its operation, an introduction to which is there in this document.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
Change is vital and necessary which occurs from time to time in everything whether it is
a person, place or thing. There are continuous changes which keeps on happening in an
environment, and a company have to deal with it by overcoming them. In UK there are various
destination available which are travelled by tourists out of which London is the most fascinating
one. Thomas Cook is best travelling agency which receives most applications from tourists to
travel London while operating in UK (Brotherton, 2012). While its operation in this sector there
are many issues which are faced by organisation in the country. Several changes in various
factors keeps on arriving which impacts operations of this sector which are illustrated below:
 Technological Advancement
This is major factor which impacts whole tourism sector directly. Technological issues keeps on
rising as various technologies are used in a company to operate its business. Likewise, in tourism
sector a firm faces these issues as technology keeps on upgrading many globalisation factors also
influences change in technology. Market and its demand also influences to use up to date
technology in operations of company to meet demand. For instance- hospitality industry like
hotels and aviation industry like aeroplanes have to be according to current scenario which
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directly impacts business operating in this sector. Technology plays a huge role which initiates
change in activity of business. Thomas Cooks have to take care of changes in this field so as ti
implement them and have best leading business.
 Increase in environment awareness
Every country wants to have a safe and pollution free environment which impacts tourists
department. People and government have become more keen in protecting its country's
environment which implies to tourism sector to adopt policies which are pollution free and does
not create any environmental harm to the country and its destination (Coghlan, 2011). London is
a very clean and green city any kind of surrounding harm is punishable in it. So, Thomas cook
have to make its travellers aware of that and make appropriate changes in policies while
providing its services to customers.
 Increase in security
Major issues related to terrorism have been addressed in London in current scenario which
directly implies to activate high security. High security also affects tourism sector as visa is not
improved easily. This leads to fall in number of people who wish to travel London which affects
tourism sector and is considered major issue. There are many attracts which have happened in
country which lead government to regulate these norms and impacted this sector. While choosing
tourist and providing them facilities they have to be analysed and identified by taking their
identification proofs and various other documents so as to maintain secure and healthy travelling
business.
1.2- Current issues and impact of political unrest in the Middle East and North Africa
Middle East and North Africa are classified as MENA which possess beautiful and
popular attractions and have a huge potential in tourism sector. Hence, these places face major
threats from various sections of society. These destinations are travelled by a lot of people so
terrorists target these places to do their unlawful activities (Coles, 2011). Simultaneously, these
issues influences travel and tourism sector as these areas are more prone to threat from various
terrorist communities. Media and coverage of these events in these areas creates a huge impact
on people due to which they fear to travel these places.
Syria is the major impacted area because it have many beautiful attractions and due to
terrorism which has been spread all over it the number of people is declining who wish travel to
that city. ISIS community have acquired Syria so immensely that people are killed brutally and
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lots of innocent lives are lost. They have also attacked Paris and Belgium which impacted whole
sector across globe. Egypt is also one of most beautiful destinations which have attractions from
traditional time which are affected by terrorists activities due to which there is 80% fall in tourist
visit has been recorded. These activities are spreading very rapidly by some parties which adopt
unlawful activities and threaten people who are innocent. So, these countries tourism is impacted
very badly that people fear to travel there.
Many measures have been taken by government of Egypt to have proper protections over
these activities so as to minimise threats. All Middle East state have jointly implemented 1540
which aims at preventing proliferation of nuclear, chemical and biological weapons (Connell,
2013). President of Egypt haver regulated legislations for tourism activities which implies that
any kind of funding to terrorists will be punishable crime and 25 years of imprisonment will be
faced by victim. United Nations have established CTC(Counter Terrorism Committee) to fight
against these harmful activities to protect every innocent citizen.
These issues are very recognizable and are impacting travel tourism sector of Middle East
and North Africa due to this even economy of country are affected. People feels unsafe to travel
to these areas as they are more prone to harmful activities which may cause threat to life of a
innocent person. These groups are continuously attacking areas in Egypt which is creating
violence in country environment. Ansar Bayt Al-Maqdis (ABM) and Ajnad Misr are two major
leaders of these groups which are continuously threatening these places which are causing huge
impact on policies of these countries related to travelling sector.
TASK 2
Covered in PPT
TASK 3
3.1 Way by which International Airlines Group businesses could respond to change
Change is a continuous process which occurs throughout lifetime. Travel and tourism
industry deals with this constantly as it includes various factors. Lberia, British Airways, Aer
Lingus and Veuling are substitutes of a renowned parent company of International Marketing
Group (Dickinson, 2010). Dreaded act of terrorism affects tourism sector of any country in
which it is happening. Recent attack in Brussel have shook whole globe in terms of safety and
security. This impacted on demand for travelling in these places due to which BA started
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offering fewer seats per aircraft and also adopted effective cost cutting and low fuel cost
measures.
Whereas Lberia has a lead in carrier services between Europe and Latin America. As its
competitors are emerging it needed to restore to an assessment period. For it long haul flights
were productive but in 2012 the results of research stated that competition rise would not let it to
have a control over it in long term. There are 172 flights of Lberia which are operating between
Spain and Latin America which aims to cover 17 destinations.
Major challenges which were faced by the company was either from competition or from
terrorism which were happening in section of their operations. For which many measure were
taken into account. From which one was to cut down cost by offering flights only in relation to
number of travellers (Dickinson, 2014). To cope up with competition company made several
other changes to have competitive advantage over its rivalry. Strategies to have lead over market
so as to overcome loss by the impact of external and internal factors have been made by
company.
3.2 Strategies for International Airlines Group businesses
Lberia is one primary carrier between Europe and Latin America for quite a long time.
Simultaneously rise in competition have impacted this airlines in such a way that it went for an
assessment period. Major competitor of Lberia is Air France on this way. Other low cost airlines
and trains with fast speed have also been in list of competitors for Lberia causing assessment for
it. Labour disputes in Spain with fall in its economy impacted revenue of economy as it resulted
in fall of demand which lead to loss in annual operations. There is a solution to every problem so
as these problems can also be solved by airlines by following ways:
 Carrying capacity should be minimised
If demand is low than there are chances that number of heads per aircraft would be low. In this
type of situation strategy to minimise number of seats available per aircraft must be made so as
to overcome.
 Classification of routes
Routes on which airlines operated can be classified as most profitable and least profitable. Most
profitable routes can be considered as most attracted or high traffic routes whereas least profit
routes are least attracted and have low traffic (Evans, 2012). This way company can put its more
focus on profitable routes.
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 Primary focus on profit maximisation
Every company aims to excel and grow in its sector which can be only achieved by earning
profit. Proper utilisation of resources and avoiding unnecessary expenses can help to gain more
and more revenues by organisation.
A solution for every problem must be acquired after complete analysis of market so that
appropriate strategy according to market can be adopted to minimise chances of failure. British
Airways has done analysis and established competitive advantage by adopting long haul flights
strategies in which it succeeded and gain lead over market. As we know best services in BA is
provided in long haul flights which is a fact that they do not need to change any strategy as they
are working really well (Frey, 2010). BA has set high standards for its competitors which can't
be matched easily by competitors in same area. This differentiates it from competitors which
makes it a best service provider.
3.3 Ways in which selected International Airlines businesses could respond to change
Change is vital it cannot be avoided as it plays a major role in business development and success.
IA group also faces issues related to this as it operated in a dynamic environment. So some
strategies are made by it to meet threats and consider opportunities. They are listed as follows:
 Lberia is considered as primary carriers between destinations of Latin America and
Spain. Low cost airlines are famous in Europe and it is known for it as there are many
capable companies who look to enter this sector. High speed trains and low cost airline
that is why considered to be major threats for Lberia in this route. Economy of Spain is
also a factor which affects demand of airline in this route. Hence, in this situation
company aims at minimising its cost in manufacturing. Number of people is decreasing
which implies low demand which means travelling per aircraft will be less which is
considered to be not fully packed aircraft. The distance travelled would be same but
passengers would be less (Guttentag, 2015). So, solution to this is to minimise seats per
aircraft would be most viable option as this would save up extra manufacturing cost of
seats. This would give company most possible returns as resources will be utilised fully
and wastage would be minimised as much as possible.
 British Airways is one another segment of IAG main competitors of which are
Lufthansa, Emirates etc. It is known for providing services in long haul flights in UK. It
offers best long haul services to clients and it operates in a very efficient way. As it is
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leading the market in providing long haul flight services it do not face any threats as
such. Competition is necessary in market so as to have a internal urge for the company to
grow and develop better than others to have competitive advantage. BA is primarily
focusing on developing its business by providing more long haul services strategies for
same are developed and prepared so as to improvise it services to have a lead over maket
in same field. Many new terminals and airports are set up so as to expand business of BA
in London so as to meet the demand of customers.
TASK 4
4.1 Impacts of issues and trends that drive change in the travel and tourism sector
Myla travels, Thomas Cook and The Travel Network Group are leading companies who
provides airlines services to various customers located across globe. While there operations they
face many problems related to trends and changes which are to brought into it. They can be
internal as well as external factor.
External Factors
 Security
Terrorism is one major problem which has made it tough for British citizen to get visa for
international countries due to security protocol (Kusluvan, 2010). As compared to previous time
it is now more strict and more difficult to get visa. Long security criteria have to be cleared by a
person who want to have visa due to terrorist attacks.
 Rates of currency
As we know currency is fluctuating and it keeps on changing from time to time. Which makes it
very difficult for a business to work as its cost has to be revised from time to time so as its rates
varies. Similarly in case of airlines, it impacts demand for travelling as cost in accordance to
currency of other countries varies.
 International policies
Every country have its own rules and regulations which keeps on changing and we know an
airline business is a international business which deals with various countries structure so these
policies have to be revised. In that case, a difference in every countries policies are there which
makes it difficult for airlines to operate (Lew, 2011). VISA laws of every country differs so as
there needs for travelling which drives change in airline businesses.
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Internal Factors
 Events
Events which keeps on happening across the globe like Music event, food event, Olympics etc.
These changes demand of people to travel and demand for travel increases as these events
occurs. So companies like Myla Travels, Thomas Cook and The travel Network Group can make
appropriate internal changes according to these so as top attract a lot of international traffic.
 Climatic Conditions
This is major factor which works in an airline and tourism industry. Demand of people works
simultaneously with climatic changes as wherever weather is good people ought to travel there
which is a major driver (Moutinho, 2011). This impacts clients of companies which are operating
in travel and tourism sector.
4.2 Consequences of businesses failing to respond to market change in travel and tourism sector
In travelling sector company have to be flexible and should have a behaviour of adopting
change frequently. Myla Travel, Thomas Cook and The Travel Network Group are major
companies which provides services to customers in relation to travelling. There are many
problems which arise and respond to them have to be very appropriate and if they are not
considered following can be affects of it:
 Weak Consumer Base
There is a trend of solo and independent travellers which companies have to consider. Hence,
tourism is not only concerned with vacations with families. So companies have to make
strategies after researching market to overcome the consequences so that consumer base is not
diminished.
 Decrease in Niche Tourism
A company while operating in any kind of business must understand preferences and values of a
customers. However in today's world travelling is considered as a passion which is there in
people to develop there knowledge (Mowforth, 2015). It not only relates to visit places but every
other related thing is also plays a vital role such as food, adventure, dark, wine etc. which are
niche tourism. For this customised packages have to be made so that demand can be met
otherwise it may create problem for companies.
 Safety and Security
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This is a major factor that has to be created by company in its customers to build a trust in them.
Tourist wants full proof security assurance and a failure in providing this can create problem for
companies and tourist may not feel safe to visit UK.
 Lower Finances
Easy financial assistance to customers is provided by Myla travel , Thomas Cook and The travel
group. Whereas companies also adopt discount policies which it provided to its customers
instead of which it can provide assistance for finances investment while travelling. This will be
beneficial for both company and its customers (Pearce, 2011). If this is not considered than
company may face threat by substitutes as customers might become double minded.
CONCLUSION
Travelling is an experience which remains with a person for its life. Hence, many tour
operates are in market which are operating to provide services for this to potential customers.
While providing these services many issues and plans are to be ascertained which are concluded
in this document. Contemporary issues which leads to change in organisation and its business
have also been concluded in this report. Impact and affects for the same have also been derives
as a result from this study. A company have to overcome changes and develop strategies so as to
meet the needs of customers which is briefly justified in this report. Myla Travels, Thomas Cook
and The travel group have also been considered in this report. IAG group and its operations with
difficulties faced by it and appropriate solution to them have bee illustrated in this justification.
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REFERENCES
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Online
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Tourism Definitions. 2015. [Online]. Available Through:
<http://www.tourismsociety.org/page/88/tourism-definitions.htm>. [Accesses on 27 June 2017].
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