Responding to Change: Strategies for Travel & Tourism Businesses

This report examines contemporary issues affecting the travel and tourism industry, focusing on factors such as competition, climate change, and emerging markets. It analyzes current trends like the rise of online booking and green tourism, evaluating their influence on the sector. The report also explores how travel and tourism businesses can respond to change through strategies informed by PEST analysis, addressing economic trends, market changes, and global forces. Furthermore, it discusses the potential impacts of these changes and the consequences of businesses failing to adapt, emphasizing the importance of understanding motivational and determining factors for tourists. The document provides valuable insights into navigating the evolving landscape of the travel and tourism industry.

Contemporary issues in travel and
tourism
1

Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................1
1.1 Current issues in the travel and tourism sector......................................................................1
1.2 Analyses of different current issues in respective industry using appropriate methods and
resources.......................................................................................................................................3
Task 2...............................................................................................................................................4
2.1 Evaluation of current trends influencing change in travel and tourism sector with proper
analysis.........................................................................................................................................4
2.2 Analyse a current trend using appropriate techniques and resources....................................5
Task 3...............................................................................................................................................6
3.1 Analyse how travel and tourism businesses could respond to change...................................6
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
......................................................................................................................................................8
3.3 Justify strategies for how selected travel and tourism businesses could respond to change. 9
Task 4.............................................................................................................................................10
4.1 Impacts of change in current issues on travel and tourism sector........................................10
4.2 Discuss the likely consequences of businesses failing to respond to market change..........11
Conclusion.....................................................................................................................................12
Reference List................................................................................................................................13

Introduction
There are a few comprising variables that influence inbound and household tourism in the UK
today, in any case, the 3 most unmistakable components comprise of, rivalry from different
destinations, atmosphere and the rise of new markets (Hamilton, Jacqueline and Richard SJ Tol
168). Tourism in the UK can be influenced by rivalry from different destinations. The numbers
going to nations that aren't generally seen as normal occasion destinations have begun to rise in
this manner affecting on the UK's inbound and residential tourism; one of a kind occasion
destinations are starting to be seen as all the more engaging, in which the standard destinations .
For example, the UK, France, Spain is deficient in going by numbers. Likewise, Britain will need
to attempt diverse strategies when attempting to pull in more visitors. Today, the travel and
tourism industry is progressing at a very fast rate and the number of tourists and customers of
this industry are also increasing at the same speed. This progress can be seen in its products, and
the services offered by this industry to its customers. But this industry also faces various issues
and changes that bring about various changes in the industry and therefore needs to be handled
properly by the companies of the travel and tourism industry. In the following assignment, we
have discussed the various issues and trends in the travel and tourism industry and how the
industries respond to those changes. We have also discussed the impact of the various changes in
the same industry.

Task 1
1.1 Current issues in the travel and tourism sector
During present times, travel and tourism industry has developed as the quickest developing
businesses contributing towards the economy. This segment has turned out to be imperative for
the monetary development of UK as UK is a standout among the most well known visitor goals
among the explorers. There are sure issues in travel and tourism industry presently driving
changes in this industry. As a right hand supervisor of a major a famous tour operator of UK, I
have broken down the accompanying issues:
Accessibility- Making simpler for vacationer to enter or go to the UK implies their recurrence of
go to the UK will increment go to the UK as well as inside of the nation for instance by adding to
our methods for transport it permits simplicity of go for visitor, for instance, the rapid trains
implies voyagers can visit the nation in a shorter timeframe giving them the chance to unwind
and appreciate the extravagances of the city which consequently would develop our economy
(Taylor, Tim, and Ramon Arigoni Ortiz 809). The level of accessibility ought to be extended to
permit inbound tourism.
Weather conditions- This is a positive viewpoint for Britain as it is a method for more inbound
tourism. Numerous British voyagers pick Mediterranean occasions over Britain; this is because
of the hotter atmosphere and ensured daylight. Be that as it may, an adjustment in the atmosphere
can prevent tourism. This would be Britain's opportunity to pull in a more extensive number of
vacationers. England loses out to destinations, for example, the Mediterranean consistently
simply on a premise of the poor atmosphere. Temperatures in the UK have ascended by around
one degree since the 1970s. On the other hand, the models propose that the UK could encounter
hotter, drier summers later on. As expressed in The Guardian ascend in temperatures will
advantage Britain's tourism as it results in more residential visitors holidaying in Britain.
Rise of new markets- The rise of new markets is useful for Britain, rise of new markets implies
place, for example, Asia and the Middle East are quickly developing markets and are willing to
visit Britain and spend significantly more than what typical guests would spend. The Chinese

specifically are the greatest spenders, Britain would profit by urging fresher markets to visit
Britain as they will probably spend their cash because of the UK's capacity to offer distinctive
things.
Inflation increase: Rise and fall of inflation alludes to the expansion in the cost of items and
different administrations amid the time of expansion and subsequently fall in the capacity of
travelers to buy those items and services. This has influenced tourism division of UK. There is
additionally increment in the quantity of vacationers going to UK amid the fall of inflation.
Technology: Advance booking and various other facilities have become possible because of
technological advancements only. Technological advancements have made it possible to
advertise many unknown tourist destinations via social networking sites (Sharpley, 2006)

1.2 Analyses of different current issues in respective industry using appropriate
methods and resources
According to Giraldi (2016:1345), two main factors trigger a tourist to purchase a holiday
package. These factors are motivational factors and determining factors. The latter refers to those
factors that verify whether a tourist can afford desired products whereas the former refers to
factors that encourage a tourist to purchase a holiday package. From the motivational factors
point of view, tourists exhibit the tendency of purchasing an experience instead of a defined
product. Motivational factors are divided into two: those that results in a person choosing to
travel and those that directs a person to prefer a particular tourist destination over others (Stylos
et al., 2016:5345).
As we all know, that every year, changes keeps on taking place in the world of science and
technology. Therefore, each industry tries to adopt those technological changes in their working
environment so as to provide better services to customers. The impact of the inflation on various
industries and companies cannot be neglected. The impact of inflation is very huge especially on
the companies that are oil-gas based. As a result of inflation, the price of the air tickets also gets
influenced. This results in the major threat for the airline industry as tourists look for alternative
means of transport due to increase in price of air tickets

Task 2
2.1 Evaluation of current trends influencing change in travel and tourism sector
with proper analysis
This slide shows that how current trends influence the travel and tourism business. This slide
shows how use of internet technology changes the customers demand regarding the various
facilities. In recent time people prefer online booking for their travel tickets and all other
facilities related to staying, food and others.in the above poster a graph shows the total number of
visitors and the money earned by the UK. The changes take place due to the changes in the
technologies and easy way of transaction.
Recently people are more attracted from the green tourism. As this is related to the environment
so people needs to maintain the environment healthy. Inbound and outbound tourism are related
to the tourists within the boundaries of the country and people travel from outside of the
boundaries of the country. Basically travel and tourism industry is that sector which influence by
each and every aspect of the surroundings of the people and business environment.

2.2 Analyse a current trend using appropriate techniques and resources
In order to attract more tourists to nature-based locations, developers need to look at these
aspects when analyzing this sector of tourism: destination image, motivation, satisfaction and
future behavior. Leisure tourists might visit a particular area based on natural resources they
prefer to see, what attractions the area has to offer, and the recreation experiences the visitor can
do there. Destination image is a key aspect that can assist those who with the natural-area
identify the weaknesses of the destination, highlight the strengths and help predict behavior of
the visitors and planning for the future by providing critical insights and development. By
definition, “destination image is the tourists’ overall perceptions of a specific destination or as
the mental portrayal of the area…is multifaceted and consists of cognitive, affective and
behavioral elements (Lee, 2009).” Visitors with positive impressions of a destination are more
likely to select the location again, or develop an attachment to the place. For tourist motivation,
studies have shown nature-based tourism motivation comes from the need to engage with nature,
be physical, experience learning and novelty, escape the mundane schedule of everyday and
connect with other cultures and groups. Highlighting these aspects of a destination will appeal to
visitors seeking these, even if they do not realize it yet.
This technique is also used by the tourists in order to analyse the latest market trend and select
their destination accordingly. For example, according to a research, it has been seen that most of
the young tourists like to travel to adventure destinations as this type of tourism is mostly liked
by them (Frey and George, 2010). Here, we have chosen adventure tourism as an example for the
expansion of a niche tourism market. According to the data collected from the research, it has
been found out that the number of outbound tourists for adventure tourism in UK has increased
to a great extent in the last few years and the number of trips of tourists is also increasing in UK
every year.

Task 3
3.1 Analyse how travel and tourism businesses could respond to change
PEST analysis includes various external factors that will affect the functioning of the
International Airlines Group. With the help of PEST analysis, it can have the overview of the
external environment in which the business activities of International Airlines Group are
operating. It includes:
Economic Trends
Studying and evaluating social and economic trends is important as it helps in evaluating how
the tourism sector will respond to the changes. Trends such as changes in the currency, changes
in the tourism culture, and security issues such as terrorism may have an effect on the tourism
sector, which affects the overall economy.
Economic Recession
Among the reasons as to why tourism is not significantly affected by economic recession is that
its products are not basic needs to human beings and thus it is not considered a must too many.
Some of the type of tourism that affected by recession is international tourism because most of
the tourist must get involved in currency conversion, which may be an expensive process.
Market Changes
Market changes that expected in world market shares of visitor arrivals include the reduction of
the number of tourists who visits a particular country. Other changes include less consumption of
tourist’s products as they may be expensive. The trends seem likely since most of the tourists
dependent on the value of money to tour a country and when there is recession, they tend to
withdraw from the visits, as they deem expensive. The regions that gains include the money
exchange and those that lose include the tourism sector and market as a whole.
Global Forces
7

The implications of the global forces have been addressed especially the new horizons.
Globalization has vested into new areas leading to modernization as new technology is
introduced. Most people are exposed to new ways of doing things, which has facilitated their
progress. New realities have not been addressed and require better solution and people needs to
be subjected to believing and taking as a reality the new inventions all over the world.
Therefore, before entering into any new market, the following factors should be closely analyzed
by the company:
 The laws prevailing in the country related to travel and leisure.
 The various rules and regulations related to trade tariffs.
 The political stability of the country in which it is operating.
 The importance of the leisure and travel in the economy of the country in which it is
operating.
 How efficient are the financial markets in the country in which the company is operating.
 The level of the skills of the various workforces working in the industry.
 The type of the economic system of the country and its stability.
8

3.2 Develop strategies on how selected travel and tourism businesses could respond
to change
The above PEST examination and SWOT investigation of International Airlines Group has
helped us break down the different outer variables and the qualities, shortcoming, openings and
dangers of the organization. Presently we will apply the different components of promoting
blend keeping in mind the end goal to examine how organizations of International Airlines
Group.
Item: The different results of the chain of Premier International Airlines Group are Hotel rooms,
espresso and other airline services offered by the eatery. The International Airlines Group should
take appropriate care of the cleanliness at its lodgings and eateries.
Price: The contenders of International Airlines Group are expanding step by step in the
neighbourliness business. Thusly, the different lodging network and eateries of International
Airlines Group should centre on keeping the cost of their items sensible in the market but then
aggressive.
Advancement: The International Airlines Group should concentrate increasingly on expanding
the attention to their different items among the clients in the market and to draw in a greater
amount of the clients in the meantime (Hamilton and Webster, 2012).
Place: The place alludes to the area of the different organizations of International Airlines Group
like the area of its easy jet. It ought to be chosen remembering the simple openness through the
different vacationers going to the well known goals of UK.
9