Contemporary Issues in Travel and Tourism

This document discusses the contemporary issues and trends in the travel and tourism sector. It explores the factors driving changes in the industry, such as technological advancements, fluctuating fuel costs, and the state of the economy. The document also provides methods to analyze these issues and trends, as well as strategies to respond to them. It highlights the importance of responding to changes and the consequences of failing to do so. Overall, it offers valuable insights into the current landscape of the travel and tourism industry.

CONTEMPORARY ISSUES IN TRAVEL
AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving changes in the travel and tourism sector........................................1
1.2 Different methods and resources to analyses current issue...................................................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travel sector...............................................................3
2.2 Methods to analyses current trends.......................................................................................5
TASK 3............................................................................................................................................6
3.1 Whitbread business respond to change.................................................................................6
3.2 Strategy to respond to changes..............................................................................................7
3.3 Justification of strategy.........................................................................................................8
TASK 4............................................................................................................................................8
4.1 Impact of issue and trends that drive change in tourism industry.........................................8
4.2 Consequence of business failing to respond to changes.......................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and tourism industry significantly impact on economy of nation. In the year 2016,
it has contributed 217 billion British Pound. In the recent time people spend such large amount in
travelling, this increases revenues of the sector significantly. Present study is based on Titan
Travel which is UK based tour operator. Current study will discuss issues that drive changes in
the sector (Hudson and Thal, 2013). Furthermore, study will involve various sources that helps in
identifying issues in the industry. It will evaluate current tends that are influencing changes in
travel and tourism industry of UK. Study will explain responses given by business to every
change. It will develop strategy so that entities can give proper response to the changes and can
sustain in the market for longer duration.
TASK 1
1.1 Issues currently driving changes in the travel and tourism sector
Over a period of time travel and tourism industry of UK has been changed drasticly.
There are many issues that are currently faced by this sector. These are explained as below:
Changes in technologies
Technological advancement has changed scenario of the market. Use of internet is
providing facilities to visitors to get detail about any location and book their tickets online. E-
ticketing facilities attracting many visitors towards the location and they make their mind to
visits particular destination (Inversini and Schegg, 2016). On other hand changes in technologies
are affecting negatively as well to the sector because due to this tour operators like Titan Travel
have to make frequent changes in their practices and have to provide this facility to consumers.
Fluctuating cost of fuel
Changes in fuel and oil prices impact on airline industry, due to which travel cost gets
increased (Pastiu and et.al, 2014). This brings drastic change in the travel and tourism industry of
UK. This increases prices of travel packages thus, visitors have to spend huge amount which
enhances their budget. It influences mind of consumers due to which sales of travel packages get
decreased.
State of economy
There are various factors that impact on economy of the nation to great extent. Increasing
interest rate, decreasing employment opportunities, inflation, deflation are the major causes due
1

to which economy of the nation get affected. If there is inflation them people will not prefer to
spend much amount in travelling that impacts on the travel industry.
1.2 Different methods and resources to analyses current issue
There are various issues due to which travel industry of UK has been changed drastically.
Political unrest is the major factor that is creating issue for the region (Scarles, 2016). Due to
political unrest condition infrastructure and development of the destination are getting affected.
If there is unstable political condition then it affects development of the country. Furthermore,
terrorism is the another issue that impact on the nation.
Issue of Terrorism in UK
Security is the main factor that is look upon by visitors whenever they plan to visit any
place. If there is high terrorism activities then it influences their mind.
Severe weather
It is anther issue that can impact on travel and tourism industry of UK to great extent.
Travellers like to go to such places where weather conditions are favourable (Wilks, Stephen and
Moore, 2013). If in any location weather is not good then they do not think to go thee. Sever
weather condition influence mind of travellers that affect revenues of the industry.
There are various methods that can help in analysing these issues (Wilks, Stephen and
Moore, 2013). These are explained as below:
Current legislation
Government makes modification in its legislation so that condition of the nation can be
improved. If there is increasing terrorism then government makes strict visa policies and enhance
security laws. By identifying the rationale of amendments in the law issues of the particular
location ca be identified (Jucan and Jucan, 2013).
Primary and secondary data collection sources
It is another research method that helps the person in gathering details about any issue in
the country. Travellers can make contact with the local community people and can gain data
about current issues faced by the region. Apart from this, government websites and travel
agencies' website are the other sources that helps in analysing the issues and finding the current
environment of particular location (Koh and Kwok, 2016).
2

TASK 2
2.1 Current trends influencing change in travel sector
Current trends that are making changes in the UK travel and tourism industry are
discussed as below:
INBOUND tourism
It is the tourism facility that provides travel to the visitors from one country to other
nation. People go from one nation to other to enjoy the location with family or for business
purposes (Rogerson and Rogerson, 2014). Inbound tourism contributes well in raising revenues
of the tourism industry. Statistical records of 2015 reflects that approx 18.6 million visitors have
visited the London in this year. Total spend made by them 11.9 million. Apart from this in the
year 2015 approx 15.2 million international visitors have travelled to England and total spend of
them was 7.4 billion.
Illustration 1: inbound tourism
Source: (Britain's visitor economy facts, 2013)
3

Illustration 2: Inbound tourism facts
Source: (Britain's visitor economy facts, 2013)
Adventure tourism
It is another trends that influence the young people to travel from one place to other.
Young people like to get engaged in adventurous activities thus, they visits such places where
their this need can be fulfilled. Titan travel make arrangement for them such adventurous
travelling that attracts many people towards the UK (Sharpley and Telfer, 2014).
Sport tourism
UK is the nation which organizes many international sport activities. This is the main
trends due to which many people visits the location. London is the destination which has
organized Fifa world cup that has attracted many international visitors towards the location. 31.5
million international and domestic visitors came to London in 2015. Rugby world cup has
contributed 1.2 billion in the economy of London (Smith, 2014).
4

]
Illustration 3: Sport tourism
Source: (The Economic Impact Of The 2015 Rugby World Cup, 2015)
Medical tourism
London, England are the places which is good for the people those who are suffering
from health issue. Many people come here to get meditation facilities. Titan travel needs to offer
them such facilities so that entity can earn more revenues (Kim and Ritchie, 2014).
2.2 Methods to analyses current trends
Covered in poster
TASK 3
3.1 Whitbread business respond to change
Whitbread Plc is the leading hotel firm in UK. It has employed approx 50000 employees
those which offer quality services to consumers. In order to respond to the change cited firm
need to conduct PEST analyses. It is the effective technique that helps in analysis external
market condition of the nation (The Economic Impact Of The 2015 Rugby World Cup, 2015).
5

 Political factors: Changes in political condition, laws can impact on Whitbread Plc thus,
it is essential for the entity to have an eye on political conditions and conduct operations
accordingly. Economic factor: Inflation, deflation etc. impact on purchasing power of consumers. If
economy condition is getting worst and people do not have adequate income sources then
cited firm needs to make changes in its pricing policies so that it can attract new buyers
and can earn revenues. Social factors: Cultural belies, taste, preferences impact on the consumers to great extent.
If social preferences are getting changes then it will influence mind of customers as well.
In such condition company can respond by promoting its brand (Smith, 2014). Whitbread
can adopts social media marketing techniques in order to make people aware with the
products so that they take interest and come to the place to experience its services.
 Technological factor: In the recent time people like to book their table in restaurant
through internet. They gather information from internet about the firm and then make
mind to go there. In such condition Whitbread Plc needs to implement advance
technologies so that it can meet with the needs of consumers. (Koh and Kwok, 2016)
3.2 Strategy to respond to changes
Whitbread Plc can take support of feedback system strategy for its premier Inn restaurant.
Taking feedback from employees will assist the cited firm in identifying the issues in the current
practices. This will also support management in identifying needs of potential buyers. By this
way management can be able to make changes in current practices and can be able to provide
products and services to consumers as per their requirements (Hudson and Thal, 2013). This can
assist the entity in gaining success in the international market.
Whitbread plc can also implement strategy of technological advancement for its costa
division. By implementing the latest technologies in the workplace it will be able to improve
operational efficiency. Proving facility to book their tables through its website, pay online etc.
facilities can attract consumers towards the Whitbread. This will assist cited firm in minimizing
operations cost and improving profitability of the business unit (Pastiu and et.al, 2014). This
strategy will support the firm in conducting operations as per the current trends. By this way it
can be able to sustain in the market for longer duration.
6

3.3 Justification of strategy
The main aim of the Whitbread Plc is to enhance its profitability and enhance satisfaction
level of consumers so that they retain in the workplace for longer duration. Feedback strategy is
beneficial for cited firm in meeting with this objective. By taking feedback from employees
entity will get to know current trends, needs of consumers and preferences of buyers (Jucan and
Jucan, 2013). That will assist the firm in making changes in current practices accordingly. By
taking feedback entity can be able to utilize resources well and will be able to meet with the
needs of consumers. This will assist in responding properly to the changes.
Technological advancement is another strategy for the Whitbread Plc for its costa
division (Rogerson and Rogerson, 2014). That will assist the cited firm in providing simple and
easiest way to book their table in advance and make payment. They will not require to spent
much time for booking and payment. Technological advancement will support the entity in
minimizing its cost and improving efficiency. By this way it will be able to coordinate well with
consumers as well. This will raise satisfaction level of customers. By this way cited firm will be
able to accomplish its goal significantly.
TASK 4
4.1 Impact of issue and trends that drive change in tourism industry
Trailfinders Ltd is the big tour operator which conducts its business in many locations.
Changes impact on entire industry to great extent.
Merger and acquisition
It is the main impact of changes and issue, due to changing preferences and economic
conditions small size firms fail to run their business separately. In such condition they get
acquired by big size firms. This can impact positive on Trailfinders Ltd because it will be able to
acquire small firms. This will enhance its market and it would be able to expand its business
worldwide (Hudson and Thal, 2013).
Consortia
Changes can impact positively on the tourism industry because by this way Trailfinders
Ltd can get option to work in partnership. It will support in fulfilling resource needs. That will
help in conducting operations smoothly. this is the way that can help in improving quality of
services of the cited firm and it will be able to enhance its profitability and customer satisfaction
(Koh and Kwok, 2016).
7

Employment opportunities
Changes can impact on employment opportunities. If trends are favourable then it will
enhance employment opportunity in the nation but if it is negative then company will have to
terminate its staff members that will affect economy of the nation (Kim and Ritchie, 2014).
4.2 Consequence of business failing to respond to changes
It is essential for Trailfinders Ltd that to properly respond to market changes. If it fails to
give proper respond then it may create consequence for the business unit. Consequence are
explained as below:
 Decreasing profit: It is the main issue that can be faced by the cited firm in the absence of
proper respond to changes. If consumers needs are getting changed and entity does not
modify its products then it will fail to satisfy consumers,. This will decrease its sales
volume. Apart from this if economic condition are changing then it is essential for
Trailfinders Ltd that to make changes in its pricing polices. In the absence of this it will
fail to retain consumers in the firm for longer duration (Sharpley and Telfer, 2014).
 Changes in supplier's attitude: In the absence of proper response to change Trailfinders
Ltd can lose its suppliers relationship. This will affect its product and services because it
will fail to get quality raw material at affordable rates. By this way it will fail to provide
high quality products and services to clients.
 Sustainability: If Trailfinders Ltd fail to respond to changes then it may fail to sustain in
the market for longer duration.
CONCLUSION
From the above report it can be concluded that tourism is the fastest growing sector but
this industry is facing huge issues. Political factors, economical changes affect the entire industry
to great extent. Companies that are operating in the industry are required to respond to the
changes so that these firms can sustain in the market for longer duration. In the abstinence of
poor response these entities may lose their profitability and their brand image may get affected
badly.
8

REFERENCES
Books and Journals
Forno, F. and Garibaldi, R., 2015. Sharing Economy in Travel and Tourism: The case of home-
swapping in Italy. Journal of Quality Assurance in Hospitality & Tourism. 16(2). pp.202-
220.
Godfrey, J., Wearing, S. and Schulenkorf, N., 2015. Neo-colonialism and the volunteer tourist
gaze: Commercial volunteer tourism in Cusco, Peru.CAUTHE 2015: Rising Tides and Sea
Changes: Adaptation and Innovation in Tourism and Hospitality. pp.135.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Inversini, A. and Schegg, R., 2016. Information and Communication Technologies in Tourism
2016: Proceedings of the International Conference in Bilbao, Spain, February 2-5. 2016.
Springer.
Jucan, C. N. and Jucan, M. S., 2013. Travel and tourism as a driver of economic
recovery. Procedia Economics and Finance. 6. pp.81-88.
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.
Koh, S. G. and Kwok, A. O., 2016. ASEAN beyond talk shop: a rejoinder to regional
tourism. Current Issues in Tourism. pp.1-6.
Pastiu, C. and et.al., 2014, January. The role of travel agencies in tourism development in Alba
county. In Faculty of Tourism and Hospitality Management in Opatija. Biennial
International Congress. Tourism & Hospitality Industry (p. 327). University of Rijeka,
Faculty of Tourism & Hospitality Management.
Rogerson, J. M. and Rogerson, C. M., 2014. Urban tourism destinations in South Africa:
Divergent. Urbani izziv. (25 (s)).
Scarles, C., 2016. Mediating the tourist experience: From brochures to virtual encounters.
Routledge.
Sharpley, R. and Telfer, D. J. eds., 2014. Tourism and development: concepts and issues. Channel
View Publications.
Smith, S. L., 2014. Tourism analysis: A handbook. Routledge.
Wilks, J., Stephen, J. and Moore, F., 2013. Managing tourist health and safety in the new
millennium. Routledge.
Online
9

Britain's visitor economy facts. 2013. [Online]. Available through
<https://www.visitbritain.org/visitor-economy-facts>
The Economic Impact Of The 2015 Rugby World Cup, 2015. [Online]. Available through
<https://www.statista.com/chart/3814/the-economic-impact-of-the-2015-rugby-world-
cup/>
10