Contemporary Issues in Travel and Tourism: A Comprehensive Analysis

This report delves into the contemporary issues and trends shaping the travel and tourism industry. It examines the impact of environmental factors, terrorism, health-related issues, political unrest, and globalization on the sector. The report also analyzes the response of major travel and tourism businesses, such as Whitbread PLC, to these changes, utilizing SWOT and PESTLE analyses. Furthermore, it explores the consequences of businesses failing to adapt to market shifts, highlighting the importance of proactive strategies for survival and success.

CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
1.1 ISSUES IN TRANEL AND TOURISM SECTOR THAT ARE CURRENTLY DRIVING CHANGE.........3
1.2 ANALYSIS OF MULTIPLE CURRENT ISSUES USING CORRECT RESOURCES AND METHODS...5
TASK 2..............................................................................................................................................6
2.1 CHANGES INFLUENCED BY THE CURRENT TRENDS IN TOURISM AND TRAVEL SECTOR.......6
2.2 ANALYSIS USING CORRECT TECHNIQUES AND RESOURCES OF A CURRENT TREND.............9
TASK 3............................................................................................................................................11
3.1 WHAT RESPONSE WILL THE CHANGE BRING TO TRAVEL AND TOURISM BUSINESS..........12
3.2 STRATEGIES ON HOW SELECTED TRAVEL AND TOURISM BUSINESSES COULD RESPOND TO
CHANGE.....................................................................................................................................15
3.3 STRATEGIES FOR HOW SELECTED TRAVEL AND TOURISM BUSINESSES COULD RESPOND
TO CHANGE................................................................................................................................17
TASK 4............................................................................................................................................20
4.1 IMPACTS OF ISSUES AND TRENDS THAT DRIVE CHANGE IN THE TRAVEL AND TOURISM
SECTOR.......................................................................................................................................20
4.2 CONSEQUENCES OF BUSINESSES FAILING TO RESPOND TO MARKET CHANGES................21
CONCLUSION.................................................................................................................................23
REFERENCES...................................................................................................................................24
1

INTRODUCTION
Tours and travels industry makes a massive share of revenue for the country. It is also
responsible for providing employment to thousands of people of the country. Hence, tours and
travel industry is a gigantic industry which is increasing consistently. From small travel agents,
office to multinational tours and travels companies all are part of this sector. In this report,
travel and tourism industry have been explained in brief so that different aspects of this
industry can be understood (Vogel, 2016). Firstly, the trending issues and trends are discussed
that have influenced this industry completely. Moreover, some of the modern methods are
explained which are required to undertake small-scale projects and to understand the
functioning of this particular sector.
2

TASK 1
TITLE- Current issues in travel and tourism sector
In recent time a number of changes took place in travel and tourism industry. The business and
operations of these tour companies have been influenced by these changes on an enormous
range. Some of these changes and major issues which are driving changes in travel and tourism
sector were discussed in the recent World Tourism Market event in London, 2017. However,
using this information an information pack has been prepared to support new trainees and to
boost their understanding of tours and travels industry.
1.1 ISSUES IN TRANEL AND TOURISM SECTOR THAT ARE CURRENTLY DRIVING
CHANGE
In recent time the travel and tourism in the UK have shown a gigantic growth. As the
government also plays a very important role in taking important actions according to the
demands of the tourist in order to grow the tourism industry. Some of the major issues which
are observed affect the tourism industry in recent times are discussed below:
 ENVIRONMENTAL FACTORS:
Most of the people now a day are so tired and exerted from their daily working life.
Hence, people choose their holiday destinations which are more inclined towards the
natural beauty and exposure of these places (Moutinho, 2011). Therefore, it is the
responsibility of the government to keep their holiday destinations clean, pollution free,
safe, etc. But the same time government also has to provide facilities like easy
transportation, good accommodation facilities in order to increase the tourism.
 TERRORISM:
The number of terrorist events which happens in a country is inversely proportional to
the growth of tourism industries and severely affects the tourist economy. Events like
mass killing, riots, shootouts, riots and many more reduce the visits of the tourists at a
holiday destination (Baker, 2014). This also makes a country unsafe for tourists and the
business law of tourism is also affected severely.
3

Figure – Factors affecting the growth of Tourism
[Source - http://articles-junction.blogspot.in/2013/07/five-main-factors-influencing-growth-
of.html]
 HEALTH-RELATED ISSUES:
The other point which plays a very important role in developing tourist economy is
health and hygiene. The tourists like to visit the destinations which are healthy and free
from diseases and other health-related issues. It is clearly evident that the most famous
tourist destinations of the world are those places which are healthy and hygienic (Lee,
2010). It is the duty of government and local people to keep these destinations free
from communicable diseases and infections because tourists like to visit those
destinations where they can enjoy and feel the beauty of the place and most
importantly they avoid the places which are not healthy for them or their family.
4

1.2 ANALYSIS OF MULTIPLE CURRENT ISSUES USING CORRECT RESOURCES
AND METHODS
There are many issues which affect the operations of the travel and tourism sector. If these
issues are not taken care of they can affect the tourist economy of any country very adversely.
On the other hand, if these issues are taken care of positively they can certainly contribute to
the tourist economy growth. These issues include international and national legislation, severe
weather, terrorism, political unrest, etc. A number of them are discussed below:
POLITICAL UNREST IN MIDDLE EAST AND NORTH AFRICA:
For encouraging travel and tourism operations in countries like Egypt and Tunisia their
government has taken several actions in order to bring more tourists to their country. However,
regardless the actions of the government the condition of tourism and travel industry didn’t
change (Lagi, et al. 2011). Strategies like attractive tour destination packages, low airfare, low
food costs, etc. is adopted by the government of such destinations but still, tourists avoid
certain destinations where there are health and security issues.
TERRORISM:
Terrorist organizations conduct terrorist activities at different tourist destinations to grow
terror and apprehension among the society. Terrorist activities like bomb blasts, mass killing,
suicide bombing, shooting, etc. impact the tourism and travel business in the nation (Garg,
2015). The terrorist activities which took place in the European nations have vastly influenced
the tourism sector. The major concern of any tourist is of their wellbeing and safety during their
stay at any particular destination.
5

TASK 2
TITLE- Current trends in the travel and tourism sector
The change in travel and tourism sector is mainly influenced by the current trends. A new
information pack has been recognized by Titan Travel which is a travel operator, for their teams
to recognize the trends efficiently.
2.1 CHANGES INFLUENCED BY THE CURRENT TRENDS IN TOURISM AND
TRAVEL SECTOR
The recent trends like sports tourism, medical tourism, inbound tourism, domestic tourism and
globalization have changed and influenced the tourism and travel industry in the UK to a
prodigious extent (Fleischer, et al. 2011). These trends attract a large number of people and
ultimately increase the tourist economy. Some of the trends are explained as follows:
MEDICAL TOURISM:
When citizens of one country travel to another country in order to receive the medical, dental
or surgical care it is known as Medical Tourism. They receive equal to or more care then their
own country and they travel for medical care so that they can afford the treatment (Hopkins, et
al. 2010). “Domestic Medical Tourism” is when people who live in one country travel to another
city, region or state of the same country to receive better health care.
6

Figure – Reasons for medical tourism
[Source - http://puertoricodreams.com/medical-tourism/]
SPORTS TOURISM:
The rate of sports tourism in the UK has been increased swiftly due to sports museums like
Palace House: National Heritage Centre for Horseracing & Sporting Art, etc. Various sports
activities like football, tennis, cricket, soccer, basketball, etc. are conducted in the UK which
ultimately increases the number of tourists who visit the UK. A gigantic 230% of an increase in
tourism can be seen in the UK at the time of London Olympics.
Figure- Sports tourism growth
[Source- http://www.face-marketing.com/Blogs/October-2011/Sports-Tourism-gains-
momentum.aspx]
GLOBALIZATION:
Globalization has attracted a huge number of local as well as international tourists by
introducing new ideas, opinions, services, products, etc. this makes people curious about a
particular destination which results to the growth of tourism. Globalization has also bought
better communication facilities, better transportation, infrastructural development, etc. which
7

have also contributed to the growth of tourism (Ivanov and Webster, 2012). In the UK,
advanced technologies like ICT are adopted by the government for the promotion of tourism.
Figure- Tourism and Globalization
[Source- https://fluffycapybaras.wordpress.com/2015/08/13/globalization-ethnoscapes/]
INBOUND TOURISM:
When the host country’s destination is visited by tourist from some other country it is known as
Inbound Tourism. In this tourism, people come to new country or destination to experience
beautiful sites, landscapes, beaches, weather, etc. Inbound Tourism is one of the major kinds of
tourism which supports the tourist economy of a country (Cortes-Jimenez and Pulina, 2010). It
also tells people that how beautiful and hygienic is the particular tourist destination.
8

2.2 ANALYSIS USING CORRECT TECHNIQUES AND RESOURCES OF A CURRENT
TREND.
The subpart of the market that centres on the particular product are recognized as the niche
market. There are several diverse parts which are reflected in the niche market such as
production quality, demographics, price range, etc. In recent time a huge growth can be noticed
in the field of sports tourism at a substantial level. Sports activities like cricket, football,
basketball, tennis, etc. have attracted a large number of sports lovers to the UK from all over
the world.
The travel and tourism industry of UK has grown to a great extent due to multiple sports events
taking place there like 2012 London Olympics (Weed, 2000–2004). A huge amount of audience
is attracted by sports events like international cricket matches, Tennis tournament like
Wimbledon, Soccer tournaments like English Premier League, Snooker tournaments like World
9

Snooker Championship, Scottish Open, UK Championship, etc. These sports are played and
watched by a huge portion of the population, hence there are many fans who come to watch
these events as well as there are also people who travel so that they can participate in these
events.
10

TASK 3
TITLE – TRAVEL AND TOURISM SECTOR’S RESPONSE REGARDING THE CHANGES
INTRODUCTION
Recently, travel and tourism sector have shown enormous growth and all of this is achieved in
very less time. It has become essential for travel and tourism industries to raise their business
standards and upgrade their business operations and services in order to achieve effectiveness
(Gössling, et al. 2012). The changes have also influenced one of the largest hotel chains in the
UK i.e. The Whitbread PLC. The Whitbread PLC business is mainly segmented into Primer Inn
and Costa Coffee. In order to attain success in the market, these businesses have to respond
properly towards the changes.
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BODY
3.1 WHAT RESPONSE WILL THE CHANGE BRING TO TRAVEL AND TOURISM
BUSINESS
A large number of hotels and restaurants are owned by Whitbread PLC, therefore, they are a
huge brand in the hotel and restaurant industry. Their restaurants, coffee shops and hotels
consist of a total staff of approximately 50,000 employees. In addition to this, Whitbread PLC
operates in the major areas of UK with approximately 2000 outlets. Primer Inn and Costa Coffee
are the two major segments in which the Whitbread PLC is mainly segmented. The response
towards the changes of the Whitbread PLC can be understood and developed by analyzing
some tools like PESTLE Analysis and SWOT Analysis.
Figure- Whitbread PLC
[Source- https://www.wikijob.co.uk/company/whitbread/jobs/digital-graduate]
12

SWOT Analysis: SWOT Analysis can be understood as a study of an organization in order to
identify its weaknesses and strengths and also its threats and external opportunities (Helms and
Nixon, 2010). The SWOT Analysis of Whitbread PLC is presented below:
STRENGTHS WEAKNESS
 Long-term experience of business
 a good relationship with suppliers
 Around 2000 outlets in major areas of
UK
 Hugh number of consumers
 Big brand name
 Understanding of hospitality industry
and hotel management.
 New products and services can lead to
new situations and challenges
 Services are very expensive.
 Having low return on their invested
capital.
 Low awareness of brand name
 It takes huge management system to
manage a large number of employees
OPPORTUNITIES THREATS
 Business expansion on a global scale
 Hugh success rate due to new market
trends
 High demand in the global market
 High-interest rate
 Competitive market due to new
market trends
 High costing of the hospitality industry.
Furthermore, in order to understand the macro environment of the business of Whitbread PLC
PESTLE Analysis is done:
 POLITICAL
Whitbread PLC’s business is influenced by the political strictness concerning business
operations to a huge extent. Moreover, the growth opportunities of Whitbread PLC are
13

also affected by the recent BREXIT issue. The business functioning of the company is also
affected by the legislation and laws of the government of UK.
 ECONOMIC
The business of Whitbread PLC is certainly influenced by the GDP of the country.
Business environment and increasing competition have also affected the chances of
economic growth for Whitbread PLC. The company is also been majorly influenced by
some factors like Foreign Exchange Rate, Inflation Rate and The rate of Exchange. If the
business operations are monitored it is clearly evident that currently, the economy of
the country may be stable but the ill effects of the recession are still observed.
 SOCIAL
Analysis of geographic and demographic aspects must be done effectively to find out
what influences the business functioning. The customers of Whitbread PLC are provided
with several services and products according to their needs and requirements. This
shows the dependency of the hospitality industry on cultural and social aspects.
 TECHNOLOGICAL
As we know Whitbread PLC is one of the largest hospitality chains in UK one of the main
reasons behind this fact is their technological advancement but they need new
technologies in order to improve their service quality and better functioning of the
organization (Yüksel, 2012). Recently it has been proved that the advancement of
technology leads to a substantial growth of the business.
 ENVIRONMENTAL
There are certain environmental policies and procedures which are introduced by the
government according to which the products and services are moulded. The tourism
business is severely affected by climatic factors like change in climate, type of weather,
severe environmental condition. Whitbread PLC should create and introduce new
business operations which follow the environmental guidelines.
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 LEGAL
Different legislations and laws are introduced by the governments which are applicable
to all the organizations and they must follow these laws strictly (Heung, et al. 2010).
Some of these laws like trade policies, taxes, government norms, environmental laws,
etc. have hindered the functioning of organizations to some extent and they also affect
the business functioning. It is also a fact that these laws are for the safe and smooth
functioning of an organization and it is mandatory for Whitbread PLC to follow them to
achieve better efficiency and function effectively.
3.2 STRATEGIES ON HOW SELECTED TRAVEL AND TOURISM BUSINESSES
COULD RESPOND TO CHANGE
In order to respond effectively towards the industrial changes, the micro and macro
environment are analyzed properly (Aguinis, et al. 2011). This will certainly bring help in
developing some strategies which in turn will bring a boost to the company’s success rate. This
analysis will enhance the functioning and business operations of Costa Coffee and Primer Inn.
Moreover, the marketing mix of both Costa Coffee and Primer Inn will be helpful in introducing
new marketing and business strategies which will ultimately help in developing the business.
ELEMENTS PREMIER INN COSTA COFFEE
PRODUCT  High-quality services
and products are
available for the
customers by Premier
Inn.
 High-quality cuisine
and suites are
available in the
restaurants and hotels
of Primer Inn along
with very royal
 The Costa Coffee
provides best quality
handmade and
roasted coffee
followed by best
quality services.
 The best quality
products of Costa
Coffee make it the
largest coffeehouse
chain in the UK as well
15

hospitality
management.
as the second largest
coffeehouse chain in
the world.
PRICE  The high price of
services and products
of Primer Inn can be
afforded only by high-
class people.
 In order to increase
the number of
customers, Premier
Inn should manage
their rates according
to all type of people.
 High-quality
handmade coffee is
available at all the
Costa coffee outlets
and just like their
quality, their price is
also high.
 The high price of
products is
complemented by the
high quality of
products. Still, the
rates can be altered.
PROMOTION  Social media websites
like Facebook,
Instagram, youtube,
twitter, etc. are one of
the best platforms for
promotions and
advertisements.
 Secondly, print
advertisement in
newspapers,
broachers, etc is also
one of the best
options for promotion
 As costa coffee is
already the second
largest coffeehouse
chain in the world,
therefore, the need to
promote it is less.
 As it is a coffee house
chains therefor
discount cards and
membership cards can
be introduced which
will catch the attention
of lots of people.
16

(Chang, et al. 2011).
PLACE The number of hotels of
premier inn could be
increased by targeting famous
tourist locations worldwide.
It will be more beneficial for
costa coffee to expand in the
urban areas because their
major consumers are upper-
class people.
According to this analysis based on multiple aspects of Costa Coffee and Primer Inn, it is
concluded that in order to successfully respond towards the changes, following are the most
suitable strategies:
Product Development: According to this, the company should develop and introduce new and
better services and products in the market in order to increase the consumer base (McGrath,
2012). This strategy is most helpful in enhancing the functions of a business, therefore, it is
most suitable for Costa Coffee.
Market Development: According to this, Premier Inn should launch its existing services and
products in the new market where people are not very aware of it so that growth and success
can be achieved (Sigala, et al. 2012).
3.3 STRATEGIES FOR HOW SELECTED TRAVEL AND TOURISM BUSINESSES
COULD RESPOND TO CHANGE
The presented strategies for Costa Coffee and Premier Inn will certainly help them to enhance
their business effectively and will also help them in responding towards the change. The
strategies which are presented for both the companies are market development and product
development (Chakrabarti, at et. 2011). The problems faced by Premier Inn is that they do
attain required growth but they also want to expand in their field of business and ultimately
become the leading company in the hospitality market. Thwat will help them to expand their
business in the new and different parts of the world whereas their products and services will
attract a large number of people which will result in the growth of their business.
17

Figure- Premier Inn
[Source- https://www.booking.com/hotel/gb/londonhammersmithpremiertravelinn.html]
Recently, Costa Coffee is facing a down market due to high prices of their products, therefore,
the strategy suggested for them is product development according to which they should
introduce new products and services which will gain the attention of the people and will help
them to achieve the desired efficiency.
Figure- Costa Coffee
18

[Source- http://www.infofranchising.pt/noticias/franchising/costa-coffee-quer-ter-mais-de-
30-lojas-ate-2015/]
CONCLUSION
The above report concludes that in order to attain desired growth and efficiency in business the
companies need to analyze the environment and work accordingly. The analysis tools help the
companies to identify their zones from where they can achieve growth. These strategies also
helped the companies to understand the market on a different level and work according to it.
RECOMMENDATIONS
In order to attain the best functionality, the companies should analyze market trends effectively
and they should control and monitor the implementation of strategies and check that they are
fulfilling the required objectives or not.
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TASK 4
TITLE – IMPACTS REGARDING THE CHANGES ON THE TRAVEL AND TOURISM SECTOR
INTRODUCTION
Changes have influenced the business operations of the travel and tourism industry to some
great extents. Multiple companies like Trailfinders Ltd. have been influenced by these changes
(Hjalager, 2010). In the presented report, different impacts of changes in travel and tourism
industry are discussed along with the consequences which take place when a company fails to
respond according to these changes.
BODY
4.1 IMPACTS OF ISSUES AND TRENDS THAT DRIVE CHANGE IN THE TRAVEL
AND TOURISM SECTOR
The travel and tourism industry is dependent on multiple fundamentals. For organizations like
Trailfinders Ltd., it is very important to recognize these issues in the business and take actions.
In the travel and tourism industry, there are many changes which should be understood and
handled accordingly. Some of the main issues are discussed below:
 Employment Issues
As it is clearly evident that the travel and tourism industry is one of the highest revenue
generating industries of the world and it is spreading very fast. Yet the work
opportunity in this sector is limited and periodic due to which many people are left
unemployed in the off-season (Kusluvan, et al. 2010). Moreover, companies fail to get
employees when they are needed. For organizations like Trailfinders Ltd., it is very
important that employees are recruited for a longer time period so that the desired
objective of the company can be achieved.
20

21

 Stakeholder Issues
Stakeholders are one of the most important parts of the travel and tours industry. These
stakeholders are hotels, travellers, suppliers, vendors, etc. and their rates affect the
company (Presenza and Cipollina, 2010). In order to offer high-quality services to the
customer organizations like Trailfinders Ltd. should maintain good relations with every
stakeholder.
 Holiday Trends
In last few years, the perception of travellers regarding holiday destination is altering in
such a way that travellers have started preferring packages with longer period of time as
well as the holiday destinations which are highly preferred are related to beauty and
adventure (Fotis, et al. 2012). Hence, Suitable holiday packages should be designed
according to the customers.
4.2 CONSEQUENCES OF BUSINESSES FAILING TO RESPOND TO MARKET
CHANGES
In travel and tourism sector market changes have made many impacts like liquidations,
acquisitions, etc. In the world full of competitors, organizations such as Trailfinders Ltd. must
adapt to changes in order to survive and to achieve the desired efficiency. Organizations that
didn’t respond to changes on time or failed to respond to market changes have faced
devastating consequences as follows:
 Low Profit
When an organization in tours and travels sector fails to response to the market change
the rate of consumption of their products and services starts to reduce, this leads to low
profits and in some cases severe loss in business (Smith and Font, 2014). In order to gain
profits and to run a business smoothly and efficiently, it is very essential for an
organization to positively respond to market changes.
22

 Negative Image in Market
In tours and travels sector when an organization fails to respond to the market change it
ultimately fails to fulfil the requirements of the consumers (Molina, et al. 2010). This, in
turn, leads to the negative publicity of the organization which further leads to the
negative image of the organization in the market.
CONCLUSION
The presented report helps us understand the importance of responding towards the market
change. It also explains us the consequences which take place when an organization doesn’t
respond to the market changes on time or fails to respond at all. It also concludes that it is very
necessary for any organization to positively monitor these market changes and take required
actions.
RECOMMENDATIONS
It is suggested to the first monitor and then understands market trends such that required
action can be taken on time. Suitable tactics and strategies should be made according to market
change in order to respond to these changes efficiently.
23

CONCLUSION
The above report concludes that the travel and tourism industry is affected by multiple
contemporary issues. This report focuses on these issues and helps us understand them on a
superior level. It also throws some light on the required alterations and changes an organization
must adapt to achieve the desired efficiency. Tours and travel industry supports the revenue of
a nation, therefore, it is very important to analyze the trends and changes in the market. SWOT
and PESTEL analysis helps us analyze the business environment of an organization. Finally, in
order to achieve the desired efficiency and result strategies are developed using this analysis
and then they are implemented accordingly.
24

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