Analysis of Tourism and Hospitality Industry Trends

This assignment provides an in-depth analysis of the tourism and hospitality industry, covering various topics such as sustainability, adventure tourism, and travel safety. It includes a comprehensive review of academic sources, research papers, and online articles related to the industry, providing insights into its current trends and challenges. The assignment is suitable for students studying tourism management, hospitality, or related fields.

CONTEMPORARY ISSUES IN TRAVEL AND TOURISM
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Table of Contents
Introduction....................................................................................................................................................3
LO1 current issues in the travel and tourism sector.......................................................................................3
1.1analyse issues that are driving change in travel and tourism sector.....................................................3
1.2 analyses different issues by usage of different methods and resources...............................................4
LO2 Understand the current trend in the travel and tourism sector...............................................................4
2.1 current trends that bring changes in the travel and tourism sector......................................................5
2.2 analyze current trends through usage of different techniques and resources.......................................5
Lo3 Understand how travel and tourism sector responds to change in airline businesses............................5
3.1 how travel and tourism businesses could respond to change...............................................................5
3.3 justify strategies for how selected travel and tourism businesses could respond to change................6
LO4 Understand the impacts of change on the travel and tourism sector.....................................................7
4.1 analyze the impacts of issues and trends that drive change in the travel and tourism sector..............7
4.2 discuss the likely consequences of businesses failing to respond to market changes.........................7
Conclusion.....................................................................................................................................................8
References......................................................................................................................................................9
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Introduction
There has been a huge growth in the travel and tourism sector all over the world. This is on
account of increase in travel activities of individuals and families for relaxation; indulging in
adventure and spending personal time with each other (Hall and Page, 2016). Continuous
technological advancements has further made travel easy for the travelers but there is a set of
many challenges as well which should be handled in an appropriate manner (Grundy and Moxon,
2013). The current study thus deals with many different firms in UK travel and tourism sector in
order to study current issues and trends in this sector. This will be followed by assessing how
travel and tourism sector firms respond to different changes and what is its impact on overall
working of the organization.
1.2 Provide detailed answer
2.1 Provide detailed answer
4.1 Answer not relevant. Please see brief and unit content
4.2 Your answer is too brief. Provide detailed answer. Please read brief and unit content.
LO1 current issues in the travel and tourism sector
1.1analyse issues that are driving change in travel and tourism sector
There is an existence of many issues that are driving the process of change within Travel and
tourism sector. Emphasis of this section is thus on assessing how these issues have impacted the
overall working of Titan travel in UK and all around the world.
 Environmental issues – With the increase in global warming a lot of climatic changes are
taking place in the world including London. This is sure to put an impact on overall
operations of titan travel which can be in form of decrease in demand of tourism flow if
rains are there in London which may impact profit and sales figures (Robinson and
Picard, 2016). As Titan travel has tour packages to South Asian nations as well hence the
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tourists may deter going to these places that suffered from cyclone in 2017 and 2018
(Aquino, 2018). Hence the company will have to plan the packages accordingly in order
to get maximum gains and minimum losses.
 Increase in competition – Titan travel is facing immense competition from tour operators
within London and worldwide that are offering similar kinds of services to people. The
need is to offer unique products and services to lure them towards company. This is also
not an easy task due to presence of saturation in new products to be rendered to people
(Holland and Leslie, 2018). Due to this, there is an increase in switching rate of the
consumers who prefer those travel operators who provide quality services but at low
rates. Titan travel can best respond to this issue if it focuses on offering value for money
deals to the consumers.
 Economic issues – The presence of brexit issue within London has further led to decrease
in tourism activities. This is followed by weakening of pound, rise in price of crude oil
that is impacting the profitability figures of the company (Bamford and et.al., 2015).
There is a less interest in UK people to make travelling plans outside London on account
of Brexit issue. However on a positive note, there is flow of international tourists to the
nations that can help in maintaining sales revenue of Titan travel. Other than this, terrorist
attacks also deter to the tourists to make a visit to any nation and hence the travel agency
has to cancel tour package to that destination.
1.2 analyses different issues by usage of different methods and resources
There has been a usage of secondary data sources to assess the issues faced by tour and travel
industry as well as Titan Travel. Information has been collected through the use of books, news
and journal articles.
As per a report by Smart travel there has been an attack on Bardo Museum in Tunisia which has
questioned the safety of travel to nations like Middle East and North Africa. Several countries
like Syria have plunged into violence which has severely impacted the tourism activities in these
nations (Jauhari and Bharwani, 2017). For example, Syria was a home to many tourist landmarks
such as Aleppo’s citadel; Palmyra etc. that have been destroyed comply on account of war. Even
the nations that are close to conflicting cities such as Jordan and Lebanon have seen a drop in
tourist arrival. This is sure to affect the operations of Titan travel as well in Middle East as well
as North Africa (Kim, Lee and Ham, 2013). This can be in form of absence of tourism packages
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in and around Syria region. Even if a package is set for one of places then Titan Travel has to
adhere with all the safety and security precautions. This may increase its overall cost structure
which may pass on to the travellers.
Then there is also an issue of bad weather conditions in Srilanka that runs its tourism activities
on the slogan being Wonder of Asia. As per a report, it suffered from high torrential rains during
the year 2017 which led to decrease in tourist flow by 2.5 percent. This can thus impact the
tourism plans of Titan travel to Sri Lanka (Is it safe to travel to Sri Lanka. 2017). Issues can
mainly arise if some of flights scheduled by the tour operator are from Srilanka and other such
nations that are impacted by climatic disturbances. Titan travel may have to spend money for
booking alternate flights which may impact the profitability of firm in a long run.
There has further been a rise in activities related to responsible tourism all over the world. Same
trend is required to be followed by Titan travel as well and it should set stringent norms for
safety and security of passengers and it should also ensure that the staff members and the
travelers abide by the same. If the company is unable to do so then it may face legal
consequences and penalties which may further affect its overall brand image and reputation
(Jones, Hillier and Comfort, 2016).
LO2 Understand the current trend in the travel and tourism sector
2.1 current trends that bring changes in the travel and tourism sector
There is an existence of many new trends that are bringing changes in overall working of Travel
and tourism sector. These may act as a boon or a bane hence the need on part of Titan travel is to
assess the type of trend and bring changes in its working accordingly.
 Presence of multigenerational travel – 2017 was the year of solo travel but there has been
an increase in an interest towards multigenerational travel for 2018. Family members of
all ages are travelling together so as to reconnect with each other and create new bonds
(Fanelli, 2018). A survey conducted by GroupAccommodation.com has found that 60
percent of the travellers who are planning a trip for 2019 wish to spend time with their
loved ones (Karantzavelou, 2018). Hence titan travel is required to include such packages
that focus on family tours. They should also focus on travel places that cater to needs of
the members of all ages.
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 Travellers from the east - The year 2017 has seen an upsurge in outbound market from
East majorly being Arab nations and India. It is being predicted by 2020 that Arab market
will focus mainly on luxury travel and is most likely to grow by 50 percent (Holland and
Leslie, 2018). On the other hand, 50 million people from India will travel abroad. Hence
titan travel should focus more on this new travel group so as to gain sales and revenue
figures. They should put more emphasis on the places these travellers wish to visit and
the kind of food that should be served to them.
 Online review will impact bookings – Titan travel is required to pay huge attention on its
online reviews so as to avoid complaints from consumers. Statistics suggest that 9 out of
10 travelers focus on online reviews before they make a travel decision (Kallbekken and
Sælen, 2013). The best strategy in this regard is to handle consumer complaints in a
prompt manner and make their journey good in terms of comfort. Hence Titan travel
would have to spend bucks on its consumer service department and ensure that all the
employees are well trained.
2.2 analyze current trends through usage of different techniques and resources
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Adventure Tourism
What is adventure tourism?
Tourism activity about connecting with
the nature and new culture followed by
being physically active at the same time
(Allied market research, 2018).
Includes: hiking, backpacking, zip lining,
mountain climbing, free fall, rafting, skiing,
snowboarding.
Top companies in adventure tours
 Austin adventures
 Explore worldwide
 G Adventures
 Mountain Travel Sober
Why is it getting so popular?
Need to gain actual experience than material
possessions.
It is safer and more affordable than previous
times (Hall and Page, 2016).
Social media, TV documentaries, shows on
discovery channel has increased its overall
popularity.
Travel statistics on adventure tourism
1. Adventure tourism market to grow by more than 40 percent till the year 2020.
2. It was valued at 444850 million dollars in 2016 and will reach to 1335738 million
dollars by 2023 (PR news wire, 2018).
3. Europe dominates in adventure tourism accounts to 40 percent of total market share.
4. In 2016, the land-based adventure activities generated maximum revenue while air-
based adventure activities will see an increase now (Allied market research, 2018).

Lo3 Understand how travel and tourism sector responds to change in airline businesses
3.1 how travel and tourism businesses could respond to change
A frequent change in the operations of travel and tourism business is a common thing these days.
Hence it is best for companies such as Whitbread Plc. to respond to them in best possible
manner. For example, there is a presence of many Socio-economic changes in UK on account of
brexit issues which is leading to outflow of workforce from the nation. Hence the company
should carry out training and development activities of existing employee so as to deal with the
issue of staff turnover. It should also provide attractive packages to staff members to retain them
in the company for a longer period of time.
There is also an increase in use of new technology such as provision of chargeable phone mats
by organizations to its consumers. Hence Whitbread Plc. should focus on the same so as to
ensure that consumer stays in the hotel or restaurant for a longer period of time. There has further
been an increased use of social media hence the company must emphasize on connecting with
consumers through these platforms.
There is also an increase in culinary tourism which has made mandatory for Whitbread Plc.
which is the largest hotel, restaurant and coffee shop operator in UK to meet food and drinks
demand of consumers. It can thus respond to change by customizing the food offerings as per the
taste and preferences of consumers.
3.2 develop strategies on how selected travel and tourism businesses could respond to change
There can be a use of many strategies by which Premier Inn & Restaurants as well as Costa
coffee can respond to the changes. Premier Inn & Restaurants is facing a lot of competition from
similar firms that are providing same kind of food and services. Hence the restaurant is required
to respond to the change by providing them good service that is friendly and confortable enough
so as to make them visit the restaurant more and more. Work should also be done on overall
ambience so as to make stay of guests for longer time within the restaurant. This will help clients
to create memories and make a visit to place again and again. In the same lines, it can make
changes in the menu as well. The suggestions for same can be given by servers who should be
able to assess the needs and preferences of consumers when they come to have food in
restaurant. The suggestions given by them can help head chef to make changes in menu
offerings. In the same lines, Costa coffee is required to respond to change with respect to
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technology in the area of coffee brewing; use of advanced machinery. It can do so by providing
training to the staff members so that they are able to adapt themselves to the technological
demands.
3.3 justify strategies for how selected travel and tourism businesses could respond to change
The above mentioned strategies given to Premier Inn & Restaurants as well as Costa coffee for
responding to change can be justified on the following grounds. There is a lot of competition in
restaurant business hence if a comfortable eniovrnment is provided to consumers then he is most
likely to pay visit to the restaurant and show increased loyalty. This is as restaurant business falls
in service industry and the manner in which consumers are treated matter most for its successful
running. In the same lines, with increase in culinary tourism it is essential to lure consumers by
bringing a change in menu. The servers are best possible means to find out what exactly is liked
by client and how they should be served. Technological advancement is also present in coffee
houses hence training the staff will help them to serve the consumers in a better manner.
LO4 Understand the impacts of change on the travel and tourism sector
4.1 analyze the impacts of issues and trends that drive change in the travel and tourism sector
The issues and trends present in travel and tourism sector are most likely to impact operations of
Trail finders Ltd that has big presence in UK with 32 travel centers.
 Rising cost of fuel – the UK tourism industry including Trail finders Ltd is highly
dependent on fuel cost. Companies have a general tendency to pass this cost on
consumers. If this happen on a regular basis then consumers may be seen adjusting the
vacation length and also avoid visiting far off places (Holland and Leslie, 2018). This is
most likely to put an impact on overall operations of Trail finders Ltd in terms of
generating sales revenue and profit figures.
 Lack of Differentiation – This is one of the biggest challenges that is being faced by
travel industry as competitor firms of Trail finders Ltd are offering similar products and
service. The requirement on part of Trail finders is to develop innovative products and
services so that they are able to maintain their mark in the industry.
 Security issues in form of terrorist activity - the presence of increased terrorist attacks in
London in 2017 has made it mandatory for Trail finders Ltd to raise its safety measures.
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It is further required to comply with the policies laid by government in this area on a
stringent basis. It should also train its employees in this area.
4.2 discuss the likely consequences of businesses failing to respond to market changes
If big businesses such as Trail finders Ltd are not able to cope with the ongoing market changes
then they may face financial crisis in near term future. For example, if tour operator does not
train its staff as per the technological advances then consumers will get attracted to other firms.
This can further disrupt the progress made by Trail finders Ltd and the firm may be in a more
vulnerable situation during recession or crisis. In the same way, if the company does not offer
customized tour packages to the clients then there may be a decrease in overall sales revenue of
company and decrease in consumer loyalty (Kim, Lee and Ham, 2013). This can further make its
image as that tour operator which is not responding to the market changes. In all the
consequences can be far reaching in form of reduced profit figures, failure in attainment of profit
margins etc. All this may led to quick liquidation of the firm as the management is unable to
modify its working as per the changes. Hence it must be understood by the management officials
that proper business and profits can only happen if it adopts the said changes. It is thus essential
for company to conduct thorough analysis of the changes so as to gain a better perspective about
future operations that may put an impact on firm working.
Conclusion
It can be concluded from the above report that travel and tourism industry is increasing on a
global basis. But still there is a presence of certain challenges such environmental changes,
technological advancements as well as increasing competition that are acting as threat for overall
working of company. Other than this, there is also an existence of many trends such as rise in
adventure trips; online reviews; multigenerational tourism among others. The firm should adapt
themselves as per these trends so as to attain success in near term future.
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References
Books and journals
Bamford, D. and et.al., 2015. Going the distance: Sport operations management in the public
and third sectors. Routledge.
Duarte Alonso, A. and Krajsic, V., 2014. Small restaurant businesses and the importance of
knowledge of cost management: an exploratory study. International Journal of Leisure
and Tourism Marketing. 4(1). pp.31-49.
Grundy, M. and Moxon, R., 2013. The effectiveness of airline crisis management on brand
protection: A case study of British Airways. Journal of Air Transport Management. 28.
pp.55-61.
Hall, C.M. and Page, S.J., 2016. The Routledge handbook of tourism in Asia. Taylor & Francis.
Holland, J. and Leslie, D., 2018. Small and medium-sized tour operators. Tour operators and
operations: development, management and responsibility. pp.86-107.
Jauhari, V. and Bharwani, S., 2017. An exploratory study of competencies required to cocreate
memorable customer experiences in the hospitality industry. In Hospitality Marketing
and Consumer Behavior (pp. 159-185). Apple Academic Press.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
of Contemporary Hospitality Management, 28(1), pp.36-67.
Kallbekken, S. and Sælen, H., 2013. Nudging’hotel guests to reduce food waste as a win–win
environmental measure. Economics Letters. 119(3). pp.325-327.
Kim, H.B., Lee, D.S. and Ham, S., 2013. Impact of hotel information security on system
reliability. International Journal of Hospitality Management. 35. pp.369-379.
Molina-Azorín, J.F., and et. al., 2015. The effects of quality and environmental management on
competitive advantage: A mixed methods study in the hotel industry. Tourism
Management. 50. pp.41-54.
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Robinson, M. and Picard, D., 2016. Emotion in motion: Tourism, affect and transformation.
Routledge.
Online
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