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Contemporary Issues in Travel Tourism Assignment

   

Added on  2020-06-06

15 Pages4389 Words84 Views
CONTEMPORARY ISSUES IN TRAVELAND TOURISM

CONTENTSINTRODUCTION.......................................................................................................................................1TASK – 1....................................................................................................................................................11.1Issues currently driving change in the travel and tourism sector in UK.......................................11.2Analysis of various issues using appropriate methods and resources...........................................2TASK – 2....................................................................................................................................................32.1Assessment of current trends persuading change in the travel and tourism sector.......................32.2Assessing these trends by making use of suitable techniques and resources................................4TASK – 3....................................................................................................................................................43.1Analyzing how travel and tourism businesses could respond to change......................................43.2Developing strategies for IAG to respond to changes..................................................................63.3Justifying strategies for responding towards change....................................................................6TASK – 4....................................................................................................................................................74.1Analyzing the impacts of issues and trends that drive change in the travel and tourism sector....74.2Discuss the likely consequences of businesses failing to respond to market changes..................8CONCLUSION...........................................................................................................................................8REFERENCES............................................................................................................................................9

INTRODUCTIONThe world around which the business operates is full of issues and transforming placethat influences almost every sector, especially travel and tourism sector the most. Talking inreference with the travel and tourism sector, this industry is advancing and progressing with afast pace each passing day. Further, it has shown high progress in relation with the product andservices, profits and revenues (George, 2010). However, the sector also come across with variousfactors that influences and give challenges to the companies operating under this industry. Thus,taking the above discussion in consideration this current study will highlight the current issuesand trends influencing the travel and tourism sector of UK and will evaluate how this sector willresponse to these changes and issues. Later part of the report will highlight various ways throughwhich international Airline group has responded towards the emerging trends. Internationalairline group (IAG), is a British-Spanish multinational airline holding group that significantlyowns 5th position in the airline industry (International Airlines Group, n.d). The firm also ownsnumerous aircrafts and is headquartered in London. The final part of the report will also evaluatethe likely consequences IAG will have if the company is not able to respond to the marketchanges. TASK – 11.1Issues currently driving change in the travel and tourism sector in UKUK is being regarded as the major tourist destination in comparison with otherdestination all across the world. The popularity of the destination is increasing at a fast pace. Thecontribution of UK as a tourist destination is also contributing high in the national income of thecountry. However, there are many aspects which are driving change in the travel and tourismsector and these are being defined below: Technological and infrastructural development– The development of technology hassignificantly impacted the travel and tourism sector. It has helped the business to growtheir connections amid various nations and thus, people are becoming more aware inregards with the attractions as well as destinations (Grimwade and Carter, 2000). Further,the online presence of the companies of this sector has also increased with changing time1

and this has attributed an increase in the tourism ratio between the tourists. Pertaining tothe rising globalization and recent trends, the need of developing the infrastructure is alsorising. Government of UK is also supporting through improvement and contribution inthe development of resorts and infrastructure so as to attract more and more customersfrom America and Western Europe. Further, the government is planning to 149 programsfor developing the transport facilities of more than £100000. Taxation and deregulation of Airlines – Comprehending in relation with the travel andtourism sector, this is the most taxed sector. The industry growth is majorly affected bythe high level of taxes. There are various taxes being imposed on this sector all aroundthe globe. These taxes starts from the tour operators, transporters of hotels, airline sectorsetc. The taxes also range from transportation tax, aviation tax, luxury tax and service taxon transportation etc. However, these taxes differ from place to place (Meng, 2010).Further, because of the deregulation, the airline industry is facing a paradigm shift whichis being reflected by the current influence of deregulation. The deregulation has impactedthe flow of air travel and infrastructure grid was also subject to the government and thus,there was partial deregulation in this industry. It has helped IAG to reconfigure there airroutes as well as equipments and has significantly improved the capacity utilization. Lack of differentiation – Because of the standardization all around the world, theuniqueness in the products and services is always missing. Same product and services arerepeatedly offered all throughout the world in the globalized market. This consistency inthe products and services is considered as the most important challenge being faced bythe companies related to travel and tourism industry. There are many firms in this sector,which are offering similar products and services in the market. Hence, the competitionwithin the industry is very intense. Customers have wide options and can switch towardsother due to low switching cost (Tsiotsou and Ratten, 2010). Globalization – Due to globalization, the world trade in relation with the internationaldirect investment has increased the growth in the business travel. Air travel has increasedby 6.6 percent a year and the overall airline industry have been grown by 9 percent andwill continue to grow rapidly. It has also impacted the demand and supply of air servicesand thus, leads to make improvements in the air trade policies. For example, open skypolice has influenced the demand for air lines significantly that resulted in permitting2

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