Analysis of Tourism Industry Challenges

This assignment requires analyzing the tourism industry, identifying potential challenges, and developing strategies to adapt to market changes. It involves researching contemporary issues, policies, and international research related to tourism. The assignment also touches on responsible tourism, destination branding, and medical tourism. By understanding these concepts, students can develop a comprehensive approach to managing tourism businesses effectively.

Contemporary issues in
travel and tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current issues driving change in tourism sector...................................................................1
1.2 Assessment of existing issues with the use of suitable methods or resources......................2
TASK 2............................................................................................................................................3
2.1 Recent trends influencing change in tourism sector.............................................................3
2.2 Covered in Poster..................................................................................................................4
TASK 3............................................................................................................................................4
3.1 Reaction of tourism sector towards the change.....................................................................4
3.2 Developing strategies for responding towards change in travel organisation.......................5
3.3 Justification of strategies used for responding to change......................................................6
TASK 4.......................................................................................................................................6
4.1 Impacts of issues and trends that bring change in travel and tourism sector........................6
4.2 Consequence of organisation that fail to respond change.....................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Voyaging is a term which implies development of a person in far off topographical areas
with various targets for instance business dealings, summer or winter get together, destination
marriages, wander far and wide, family excursion and so forth. Tourism part builds step by step
because of augmentation popular which implement number of firms to extend their business over
the globe (Wachowiak, 2016). Cox and kings is a multinational travelling companies whose
main objective is to serve domestic as well as foreign visitors that are roaming across
international boundaries. This assignment is classified into various groups for highlighting the
eminent role of tourism sector in world economy. Initially, it describe the existing barriers which
influence change overall industry. Along with this shows emerging trends with the use of
necessary methods or resources for understanding the environment by identifying hidden
factors which act as a obstacles in tourism companies. Later on it also describe methods by
which international airlines groups is going to respond towards change by considering their
image at marketplace. Lastly, issues encountered by Myla travel while running their business
operations as well as outcomes of failure are also outlined in this project.
TASK 1
1.1 Current issues driving change in tourism sector
Tourism industry is growing in a rapid way because most of the visitors are keen
interested in travelling and love to roam around the world for experiencing something new or
different. Cox and kings is an enterprise whose major objective is to facilitate visitors during tour
by providing necessary facilities such as foods or shelter, vehicles, comfortable seats for sleeping
while long journey (Moutinho, 2011). Along with this, they are responsible for ensuring safety or
secure environment for their customers in order to acquire their trust or loyalty for further
relations. Therefore, due to increase in consumers demands various international companies are
trying to expand their business for generating maximum income and coming up with innovative
ideas. Thus, it is essential for managerial team to make effective schemes for understanding
emerging change in tourism sector. Hence numerous of issues or barriers which may drive
reformations is highlighted as follows:- Technological advancement::- Due to rise of modern world there are numerous of crisp
or new systems are shows up which is exceptionally helpful and gainful for overall
1

organization as well as industry in various way. For instance; diminishes the era or
working span by finishing all the undertaking as quickly as time permits like web, media
transmission is another case which indicates headway of innovation. Consequently it is
key for cox and kings to receive new apparatuses according to circumstance and change
their arrangement as per prerequisite for organization. Subsequently, there are number of
advantages of building up present day innovation, for example, quick reserving, online
administrations which is exceptionally agreeable for traveller as they can book their
tickets from any place on the planet (Sharpley and Stone 2010). Prerequisite of greatest security:- Safety and protection is one of most critical segment
for each visitor in light of the fact that each traveller is worried about their well-being
since "well-being is seen as wealth". Hence it is fundamental for referred organization to
roll out improvements according to visitor requires by actualizing different
methodologies. Alongside this it is the obligation of a country to shield their visitors from
any abuse and dangers which influences life of an explorers. Development of new markets:- To snatch new and propelled openings administrators of
an organization required to extend their business crosswise over universal limits so they
can create most extreme income. At first they have to recognize the request of an
alternate clients with the goal that they can fulfils it in a defined time period but
sometimes it turn out to be additionally testing because of absence of advantages. Along
these lines an association needs fitting assets for managing changes and to fulfilled
distinctive clients.
 Recent national and international legislation:- Number of laws or acts are acquaints by
administering bodies with evacuate segregation and wrongful thing which influences life
of people. In this way an association need to focussed on principles and directions which
was changed by lawful bodies previously settling on any choices (Spenceley, 2012).
Apart from this two major issues which affects the tourism sector is described below:-
 Employment: An organisation can boost up its value and respectability in the market by
attracting and retaining better qualified and different language skilled employees as they
can provide better services to the customers regarding the customer satisfaction having a
positive impact on the output expected. Recruitment criteria need be change regarding the
2

requirement of skilled employees to solve the service issue of customers and increase the
profit of the travel and tourism sector.
 Technology: There is an issue that people find difficulty regarding the booking in travel
and tourism sector and they need to visit the office to book the tickets and need to visit
their again to have a confirmation of tickets. So that travel and tourism have to change
this criteria by conducting everything online which saves time and money both as well as
customer satisfaction regarding the smooth service of the agency.
1.2 Assessment of existing issues with the use of suitable methods or resources
Issues resemble undetectable seeds which develops whenever or any place with no alert
or data and impact general achievement or development of an organization. Along these lines it
is fundamental for every last association to recognize their deterrents in a compelling way since
it influences their income and whole relationship in different way. Consequently for above
clarified purposes, directors of a venture needs to receive distinctive apparatuses and procedures
for beating every one of the issues as quickly as time permits. Thus, it essential for organization
to make plans and policies in order to protect their customers and try to offer best services to
their customers in an appropriate manner. Ever tourist wanted safe or secure environment for
spending their holidays with full entertainment as well as dream to spend some time in stress free
surroundings (Morgan, Pritchard and Pride, 2011).
Instead of this various major issues or obstacles encountering by cox and kings and later
on it becomes top most barriers for their business. Thus, these are stated as follows:-
 Enhancement in recent technology creates problems for less skilled employees while
understanding.
 Establishment of new brand creates more competitive environment for existing firms.
 Alteration in economy of UK which is related with demand , inflation , deflation and so
on.
Hence, it is necessary for managerial department to make plans and policies according to
requirement of a company for overcoming these issues which were emerging
3

TASK 2
2.1 Recent trends influencing change in tourism sector
Latest patterns or thoughts are adaptable in nature and it changes as indicated by time
goes as changes is a constant procedure. It is basic for organization to break down current
patterns and also distinguish changes which were happening since it influences general business
operations in different way. For instance, in the present current world there are number of
individuals are available which are occupied with meandering new places for particular reasons
or point rather than fun (Connell, 2013). In this manner, number of late patterns are develops in
travel and tourism segment which are featured underneath:- Adventure tourism:- Most of the clients are quick to do new and distinctive things from
world since they need to encounter something one of a kind. As of late, number of
understudies or adolescents are there which are keen on going far and wide just to
attempt bold outing for instance African safari, swim with whale sharks in Australia and
so forth. Games tourism:- Another significant pattern which shows up is sports tourism as it pull
in number of guests with the intend to see national diversions or Olympics and so on like
Paralympics helps different tourism part in creating most extreme income in 2012 on the
grounds that few of guests are intrigued to see that amusements.
 Business and recreation travel:- Few individuals go for extending their business over the
globe to produce most extreme income and attempt to serve household and in addition
outside customers. Actually number of people which are moving starting with one place
then onto the next for pleasure, excursions, family trip, cook-out, quality time and so on
(Lyons and et. al., 2012).
2.2 Covered in Poster
TASK 3
3.1 Reaction of tourism sector towards the change
Business surroundings are never constant as changes keep on taking place due to the
modifications that take place in the factors that are present outside the boundaries of an
enterprise. In order to understand how the tourism industry react to each change that take place
in the environment it is important to study each separately which is done in the following text:
4

Political environment – Each country has their own rules and regulation for different
types of industry which has to be consider while carrying out the business activities. This way
same company has to operate in distinct manner due to the fact that it is important to carry out
operations fulfilling the obligations against it (Stone, 2012).
Economic environment – the state of economy keeps on fluctuating as rise and fall in
the value is a part of business. As the operations of the refereed organisation are done
internationally it is effected by the increase and decrease in the value and hence has to plan their
operations accordingly. Tourism industry is the one which is highly influenced by the rate of
change in the exchange value. When organisation wish to start business in the new area it has to
first understand the present economic condition of that place so that accordingly planning of
services is done.
Social environment – In order to do good business it is important to understand the
demand and likings of a particular area. It helps in increasing total sales and and experiencing
growth in the long run. Change in the social factors like movement of customer from one place
to another change in current trends etc. has their direct impact on the tourism industry. As the
given sector is highly dependent on user study of same becomes crucial for it (Kang and et. al.,
2012).
Technological environment – Methods tools and applications used in the process of
service production are part of this factor. Whenever there is an introduction of new technology it
has its both positive and negative impact on the business. Since growth is taking place in the
applications related to tourism industry it has proved to be a blessing for the business. Now
customers can be provided services with higher efficiency and also the total market share has
raised.
3.2 Developing strategies for responding towards change in travel organisation
There are different organizations which assist travel and tourism part with sustaining in
economy. These organizations resemble Hotel industry, sustenance industry, Airline industry and
so on. On the off chance that these ventures are running great then it will in a roundabout way
increment the travel and tourism industry too (Pritchard, Morgan and Ateljevic,2011.). There are
different sorts of exercises that organizations need to perform, they likewise need to satisfy their
long haul and here and now destinations and to accomplish this organizations need to go
acknowledge these progressions.
5

Global Airline Group is one of the biggest carrier aggregate having higher than 500
flying machine with them flying more than 250 goals. Other carrier organizations that are
productive in this portion is British Airways, Iberia, Vueling and Aer Lingus. For adapting up to
changes British Airways and Iberia need to revamp their procedures. The means are as per the
following:-
English Airways
it is one of the most leading organization in world. It leads in showcase by giving
administrations according to client's inclinations. With the adjustment in showcase circumstance,
organization should acquire transforms them by presenting new approaches, new advances, new
administrations and so on. They ought to likewise check time to time that whether organization is
working in rectify heading or not and for this their goals and mission vision will be checked. In
the wake of actualizing changes organization should attempt to get an ever increasing number of
clients so their business isn't affected and they will have the capacity to extend in advertise.
Thus, fundamentally British Airways needs to comprehend tbheir clients well and give benefits
according to their decisions (Crooks and et. al., 2011).
Iberia
This is another same type of organisation which is spread around a huge system travelling
to more than 109 goals in 39 nations. They likewise need to redo their systems all together work
in a dynamic domain. IAG organization gives administrations to carrier industry like aiding in
repair and upkeep of airplane and so forth. So organization should influence utilization of 4P's to
know to in what manner will changes affect them. Thusly organization will have the capacity to
put costs as needs be. . They will likewise need to present new items or administrations in
showcase with the goal that clients are pulled in towards them.
7 P's for responding towards change
 Product: Organisation need to change or modify their products and services according to
the trends of the market so that they can stand in the competition and grab the market to
gain profit.
 Price: It will fluctuate according to the changes in the features of the product as well as
in reference to competitor's pricing strategy.
6

 Place: This is also plays an important role as the firm need to grab the market so the
distribution strategy should be change for the effective output regarding the change
observed in the trends of market.
 Promotion: The firm's tools and techniques should be change because everyone like to
follow the trends and to motivate people the firm have to take care of preferences of the
customers.
 People: They are the basic element regarding the manufacturing to profit of the firm so
employees training should be according the current trend so that to provide better service
to the customers than competitors to gain customer satisfaction.
 Process: The manufacturing and distribution criteria must be change to save money as
well time to have a positive impact on customers.
 Physical evidence: It can be defined as the feedbacks of the customers regarding the
service by which the firms can boost up their service level.
3.3 Justification of strategies used for responding to change
In order to deal with the changes internation airline is using a number of strategies that
are helpful in maintaining their customers and doing good business. In order to respond change it
is important that proper planning is done in advance so that the performance of business do not
get effected. Justification of the strategy used are as follows:
British Airways – In order to respond to change this company has adopted the method of
conducting pestle analysis which is of great help (Falk and et. al., 2012). Through this
organisation can get to know about the changes that take pace in the surrounding in which it is
operating. When work is done as per the requirement of the customers and government their are
higher chance that set targets are achieved and growth is assured in the long run.
Iberia – All those planning which is done by this organisation may help the management
in giving customer more variety of services. Marketing mix is an important concept that helps
management in understanding every area of the business which needs to be consider before
taking any decision. This way they will take better judgements related to their organisation and
may successfully achieve the competitive advantage.
This way it can be summarised that the strategies which are adopted by both the
organisations are effective as their results can be improved by implementing the discussed
strategies.
7

TASK 4
4.1 Impacts of issues and trends that bring change in travel and tourism sector
In the present business conditions there are various issues that are encounter in the
tourism industry. Myla is a UK based organisation which has a good growing rate. As this
organisation is doing a good business there are a number of other business also who has become
a part of it (Kusluvan and et. al., 2010). It is effected by a number of changes that is taking place
in the industry among which the most important one are as follows:
Level of employment – Each of the organisation has required level of employees and
they have to carry out the operations as per the requirement of management. Since the given
industry is service oriented it require more of work force. In the situation when the employment
rate is high it become difficult for the given organisation to get the required number of
employees. Apart from this it is also necessary that those who are appointed in the work has got
the require skills and capacitate so that they can do their work accordingly.
Technology – To give services management needs to adopt the latest application so that
it can attract more and more customers and also can sustain in the market for the long run. Myla
organisation is giving its compete efforts towards giving its customers compete satisfaction for
which luxury is given the most priority.
Myra travel – It is an independent fastest growing company having speciality in luxury
travel across UK .Thomas cook saw opportunity to acquire the company due to its rapid growth
rate and continue loses faced by Thomas cook travel network . If Thomas cook acquire the
company he will definitely axe employee of Myra travel even skilled employee will also suffer
as Thomas cook will prefer to work with its own company members . So a total disaster will
happen to the owner of Myra if he sold out the company to travel giant Thomas cook .the change
in environment and business management will also affect the employees of Myra travels
Thomas cook- Thomas cook is a large travel agency with lots of investors but in recent
past the company is getting stiff completion from smaller travel agency group as a result the
company has slumped to a £590million loss and have to take loans of £200million. Acquiring
Myra will increase and stabilize the growth and the company will be back on track. But the
major problems arise is that the idea of acquisition is not formally supported and by slashing
2500 jobs i.e. (1/6) of its workforce it will increase the workload which will further reduce the
efficiency of the company and will lead to the downfall.
8

The travel new group- Director has got the offer letter from the travel new group
consortia .As the company is a collaboration of different travel agencies the inclusion of director
in the organisation will boost the working and growth of travel new group as they will be infused
with new and innovative ideas this will led them to grow effectively in market and can challenge
the large organisation like Thomas Cook with rejuvenated ideas and joint ventures .
4.2 Consequence of organisation that fail to respond change
If issues are there within or outside organisation, than it creates a problem for the
business. If a firm is not be able to adopt the changes in environment of market than it is a
problem for entity to attain its targets (goals and objectives). Somewhere the profit ratio is also
gets affected with changes in environment (Hartmann, 2014). Technology is the biggest change
in outside world. If a company is not be able to work according to the firm than demands of
consumers cannot be met with that. Technology helps to provide a quality product which satisfy
needs and wants of consumers. The consequences a firm is going to face are as follows:
 Consumer base: In this competitive world the environment is also changing it is
required by the organisation to opt changes and work accordingly. Change in time and
market also brings changes in likes and dislike of customers which has to be met by
business. The companies who provide quality product to customers than they will move
towards those. To retain them it is needed to work with change in market and
environment of business.
 Business: Some business are there who are not ready to accept changes in market, the
result of this comes they wind up or left behind by other companies. If they are not
coping up with change then they will loose their customers and profit (Cohen and Cohen,
2012).
 Decline in income: Decline in income would be there if firm is not adapting the change
in environment. Decline means affect on brand image and values of their goods and
services. This will result in shift of their existing customers to other companies.
 Mismanagement: This thing is with those companies whose management does not work
properly, no coordination among the different levels, which will result in mismanagement
and firm will not be able to work according to market (Ralph, 2016).
9

CONCLUSION
From the above report this has been summarised that with the change in the business
environment there are various issues that are encountered by the tourism industry. In order to
continue as an effective business unit it is important for the organisation dealing in this industry
to analyse the market in a way that whatever change that take place in the surroundings can be
identified and accordingly adopted in own business.
10

REFERENCES
Books and Journals
Wachowiak, H. ed., 2016. Tourism and borders: contemporary issues, policies and international
research. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Sharpley, R. and Stone, P.R. Eds., 2010. Tourist experience: Contemporary perspectives.
Routledge.
Spenceley, A. ed., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
Lyons, K., and et. al., 2012. Gap year volunteer tourism: Myths of global citizenship?. Annals of
tourism research. 39(1). pp.361-378.
Stone, P.R., 2012. Dark tourism and significant other death: Towards a model of mortality
mediation. Annals of tourism research. 39(3). pp.1565-1587.
Kang, E.J., and et. al., 2012. Benefits of visiting a ‘dark tourism’site: The case of the Jeju April
3rd Peace Park, Korea. Tourism Management. 33(2). pp.257-265.
Pritchard, A., Morgan, N. and Ateljevic, I., 2011. Hopeful tourism: A new transformative
perspective. Annals of Tourism Research. 38(3). pp.941-963.
Crooks, V.A., and et. al., 2011. Promoting medical tourism to India: Messages, images, and the
marketing of international patient travel. Social Science & Medicine. 72(5). pp.726-732.
Falk, J.H., and et. al., 2012. Travel and learning: A neglected tourism research area. Annals of
Tourism Research. 39(2). pp.908-927.
Kusluvan, S., and et. al., 2010. The human dimension: A review of human resources
management issues in the tourism and hospitality industry. Cornell Hospitality
Quarterly. 51(2). pp.171-214.
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.
Cohen, E. and Cohen, S.A., 2012. Current sociological theories and issues in tourism. Annals of
Tourism Research. 39(4). pp.2177-2202.
Online
Ralph, 2016. [Online]. Available through:
<https://www.hospitality-interiors.net/news/articles/2016/01/457364505-visitbritain-
reports-increase-volume-and-value-inbound-tourism-2015>. [Accessed on 17th
November, 2017].
11

12

13

14