UK Tourism Trends and Impact

This assignment delves into the current state of tourism in the UK by examining statistics on visitor numbers, total spend across various sectors, domestic tourism by region, and overseas visits. It analyzes historical trends and presents future forecasts for both visitor numbers and spending. The analysis provides valuable insights into the growth, distribution, and economic impact of tourism within the UK.

Contemporary Issues in
Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving changes in the travel & tourism industry...................................1
1.2 Discuss current issues using appropriate resources in tourism sector..............................2
TASK 2............................................................................................................................................6
2.1 Outline current trends influencing change in the travel and tourism sector....................6
Analysis-.................................................................................................................................7
................................................................................................................................................8
2.2 Analyse one niche tourism market ..................................................................................9
TASK 3 ...........................................................................................................................................9
3.1 Response of International Airlines group to the current changes in the industry:...........9
3.2 Develop strategies to International Airlines Group businesses......................................10
3.3 Give justification for strategies for International Airlines businesses could respond to
change. .................................................................................................................................12
TASK 4..........................................................................................................................................13
4.1 Outline impacts of issues and trends that drive change in the travel and tourism sector13
4.2 Outline consequences of businesses failing to respond to market change.....................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

Illustration Index
Illustration 1: Visitor Numbers and Total Spend by Sector ............................................................4
Illustration 2: Domestic Tourism by Region in UK.........................................................................5
Illustration 3: Number of Overseas visits to Britain - trend and forecast........................................6
Illustration 4: Annual spent of Overseas visits to Britain - trend and forecast................................6

INTRODUCTION
The travel and tourism sector is the biggest source of revenue generation for the
economic growth of the country. The organisation need to adapt changes to the market.
Competition is increasing day by day and as such companies are trying its level best to conquer
the demand and needs of the consumer. If demands and needs of consumers are attained than
company will flourish in its operations. Customer's want good packages at low prices which
achieves their level of satisfaction. Organisation will have negative effect like terrorism effect,
environmental effect and economic effect (Akkoyun, 2012). As such, it will hinder the growth of
the organisation. Taxation is another issue which has a negative effect on the industry. Various
taxes are levied like transportation tax, luxury tax etc. which limits the growth of the sector. This
also hinders the stability and economic growth of the country.
TASK 1
1.1 Issues currently driving changes in the travel & tourism industry
1. Technological Advancement:
Technology is currently playing a major role in tourism &travel sector. With the growing
advancement of technology & introduction of many online holiday management & travel &
tourism provider website has increased the attention of a tourist but this technological
advancement has adversely affected the local holiday planners. The method of attracting a tourist
for a manual booking of travelling tickets & rooms in hotels had been a major outbreak for local
vendors & tourism service providers.
Also, cyber security & online data privacy is been a major issue in travel & tourism industry.
The every travel business plan holds a tourists personal details like name, bank accounts details,
accommodation details etc. management of such a important & vital data with safety is a major
issue for tourism service provider.
2. Political factors:
With a rise in competition among various countries to prove themselves as a superpower may
lead to political turbulence in a country, thus leads to have an adverse effect on the travel &
tourism industry. Customers or in general, tourist avoid visiting a place with political
disturbance. Also, the safety of a tourist became a liability of tourism & travel service provider.
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Failing to which not only affect the goodwill but also reduce the tourist count visiting a place
thus causing a major impact in tourism industry.
Apart from this, the change in employment & immigration policies & laws, treatment with
immigrant posted employees, uncertainty in the foreign currency exchange, behavioral change in
purchasing power by the foreign customer had also played a crucial role in effecting the travel &
tourism industry.
3. Socio-economic factor:
Social factors has included various factors such as language barrier, lack of efficient & good
tourist guides, differences in mindsets of tourists & local public, cultural background etc. it can
either be effected due to any sort of political factors (Boo and Bernick, 2013). The travel &
tourism industry has to look after the availability of good & efficient tourist guides, & gaping up
the differences between tourists & local authorities, if any. Also, the industry has to check that
proper information & resources are been provided to the tourists so that they can know about &
enjoy their visit to a tourist spot more effectively.
4. Economic factors:
It includes absence of proper management of a tourists' money. The uncertainty of the
exchange rates cause a major trouble to tourists, as well as, to travel & tourism industry. With a
better exposure to technology & global economy, the tourists have become more money & cost
conscious. They want a complete value for money experience for the money provided to the tour
operator (Hilgert, Hogarth and Beverly, 2011). Also, with introduction to all inclusive & no
hidden cost tour packages, tourist has become aware of the exclusive services provided.
1.2 Discuss current issues using appropriate resources in tourism sector
The tourism sector is the fastest growing sector which has leading revenue generation for
the growth and stability of the country. The current issues which impacts Thomas Cook company
are as follows:
2. Terrorism in Turkey
Terrorism has badly affective tourism in many countries of the world for example
Indonesia, India, Pakistan, Thailand, France, Belgium, Spain, Turkey, Egypt including the
United Kingdom and USA
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Terrorism had an adverse effect on the economy of Turkey because of the terrorist attacks and
suicide bombings many tourists decided not to visit the country.
. The terrorism exploits the tourism sector as no travellers' want to travel to terrorist attack
country. Terrorists use various weapons by which sincere people suffer a lot. It results in
negative impact on the country and spoils its name in the world market.
Terrorism mostly attack urban population as a result tourists who travel are being
targeted by them. The safety and security is essential for company and travel sector as people
will not visit for holidays in their country where security is least prioritised. Hence, terrorist
should be thrown out of the country so that people visits to spend leisure time. This will help
company to achieve its objectives and goals.
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Due to terrorism the tourism in Turkey declined up to 35% in the year of 2016.
The country had terrorist incidents in the month of April and May 2016. The country has taken
drastic steps to restore the confidence of tourists by establishing Tourism Police and due to this
effort the country have more visitors this year as compare to last year 2016.
3. Political Instability link to Economic crises
If any country is politically unstable then it does have adverse effects on economy. As
people go on strike and protest there is no business activity. Political instability in Egypt has
affected tourism in a negative way.
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The economic effect has impact on tourism sector. The tourism industry provides sustainability
and stability of economic growth to host countries as well as tourist's country. It is quite helpful
for developing nations as it provides them, revenue in good amount which is required for its
development of economic growth (Knollenberg and et. al., 2014). However, there are hidden
costs to travel industry by which poor countries are not able to cover its costs. Increase in
demand from the tourists make the prices of goods and services to gradual hike. As a result, daily
needs of people remain affected and bring instability in economy.
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TASK 2
2.1 Outline current trends influencing change in the travel and tourism sector
Illustration 1: Visitor Numbers and Total Spend by Sector
(Source: UK TOURISM STATISTICS 2015, 2016)
Analysis-
This also shows that business of tourism has expanded and total visitor has increased.
They have spent on sector quite effectively which helped company to generate revenue.
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Il
lustration 2: Domestic Tourism by Region in UK
(Source: UK TOURISM STATISTICS 2015, 2016)
Analysis-
The regional tourists figure are also good. Most people who have visited is Yorkshire &
The Humber. The income which tourists has spent most in the region of UK is West Midlands
and Wales consecutively.
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Illustration 3: Number of Overseas visits to Britain - trend and forecast
(Source: 2017 inbound tourism forecast, 2017)
This data shows that 39.7 million visits were obtained in the year 2017 which is up by 6
% then in 2016. This shows that UK companies are effective in its function. They are garnering
more of tourists in the country and generating more revenue.
Illustration 4: Annual spent of Overseas visits to Britain - trend and forecast
(Source: 2017 inbound tourism forecast, 2017)
Analysis-
The forecast is also much larger in 2017 year than in year 2016. It shows 6 % increase in
inbound visits to the country which is remarkable from the point of view of the company and for
the nation. This figure is increased from past several years which is showing its efficiency.
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2.2 Analyse one niche tourism market
Covered in Poster
TASK 3
3.1 Response of International Airlines group to the current changes in the industry:
To Technological Advancements:
With the growing advancements of technology, the airlines' industry is also deeply
affected. Gone are the days when the tourist have to manually visit an airport to book an air
tickets. With the globalization & advancement of internet, now a person can book air tickets
from his/her home, office & even from a smartphone. So the airline industry has to cope up with
this technical advancements. Companies like Jet Airways, Spice jet etc. have collaborated with
many travel & tourism management sites to attract the customers on larger base (Mahony and
Morrison, 2010). Also, advancements in infrastructure plays a key role in meeting up with the
growing expectations of the customers of Airline industry. Better lobbies, free WI-Fi, & opening
of outlets of major brands like CCD's, McDonald's, Zara etc. have also helped in attracting local
as well as foreign customers.
Also, better security services & safeguard provided to a tourist will attract customers of Airline
industries.
PEST-Political, Economic, Social & Technological Factors:
Political Factors
Political factors have been a major mayhem for the aviation industry in past few years. The
policies for land accusation has been a major issue to be faced by airline industry. Protest by
local public, environmentalists & other political factors have adversely effected the performance
of global Aviation. The Airline industry can tackle it by means of conversation & negotiation
with local political as well as governing body. Also in case of any sort of social issue or
objection, the government or local body can act as a bridge between airline industry & local
public to solve the social problem occurred & helps in its solution with explanations &
negotiations.
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Economic Factors:
Economy also plays a major role in success of a Airline company. It can be either country's
economy as well as that of a company. Failure of Country's economy (like of Vietnam) or of a
company's economy (like of Delta airlines) can badly effect the aviation market. Apart from that,
the decrease in the fare cost also plays a crucial role in the aviation industry. Due to globalization
of market, the customer has become more aware about the factors affecting & has become cost
conscious. So it's an airline company's duty to fulfil the customers demand (Mason, 2011).
Upgrading the infrastructure as well as the services like aircraft's technology i.e. improving the
operational efficiency to meet time demands should be a major goal for global aviation industry.
Also, the front line services like pilots, air crew as well as ground staff should be as per growing
demands of global customers. The fare charges should also be more cost effective, reasonable &
should be taken by customer as value for money experience. Cost reduction on selective trips,
offers & better services can be implemented to attract the customer as well as to fix & improve
the market share in Aviation sector.
Social Factors
This particular aspect consists of various demographic factors associated with people and
customers and create negative and positive impact on the company. This include
income level of people, taste and preferences, age, living standard, marital status etc.
When any of the aspect change then will directly affect to the overall organisation
for generating income and revenue.
Technological Factors
Apart from the above, technological aspects also have major influence on the working
environment of every organisation. In the today's times, IT industry come up with new and
innovative kind of techniques which help to the firms for producing higher quality of products
and services. On the another side, cost of implementing innovative technology is huge which
create financial burden on selected company.
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3.2 Develop strategies to International Airlines Group businesses
The company must develop strategies which ensures it success in effective manner. Aer
Lingus which is giant in airline sector develops its strategies in efficient way by responding to
the change. It should develop strategies like:
SWOT ANALYSIS for Aer Lingus
The strength of company is that it is a market leader in airline sector. Weakness is that it
has no message facility to travellers. Opportunities are expanding its flights to more countries
and threats are its rivals.
SWOT ANALYSIS for British Airways
Strength for company is that provides fair tickets at low prices. Weakness is that comfort
in planes are insufficient. Opportunities are providing text message to travellers and threats are
competitors.
1. Focus on ancillary services-
The ancillary services are the main attraction of the tourists. Company should provide
necessary support to the primary service of it. Primary service here is travelling in plane to
different destinations. Ancillaries are the main part of the company's business model. It is
required that company should implement the strategy regarding the ancillaries services which
will provide extra benefit to travellers. Studies show that 83 % airline company plan to sell
directly to consumers via their mobile phones. As such, Aer Lingus should also concentrate on
providing ancillary services as it is main source of generating higher profits. Example, on board
sales of beverages, early boarding benefits etc.
2. Advantage of Dublin airport-
The company should take advantage of the Dublin airport because tourists are travelling
in large numbers for this route destination. As such, it's the ultimate source of revenue to the
firm. It should take benefit from this destination by attracting more tourists.
Strategy for British Airways:
British airways is the leading and most powerful airline industry. It is dealing with both
national and multinational flights. The strategy should be developed:
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1. Text message facility-
British airways should provide the text message facility to all the class of passengers.
With this facility, passengers are well in advance informed about the status of their flights. This
will give clarity to both passengers and the operation team in its effective functioning. The
tourist will be informed if there are flights delays or not. It will give required information to
them. This facility should be provided by the company for enhancing customer's experience.
2. Comfort in aircraft-
The company should provide comfort in its aircraft because passengers are attracted to
leisurely aircraft. It should develop the strategy to modernise the aircraft so that it may be able to
attain customer's satisfaction in effectual manner. The company can gain an advantage over its
rivals. Comfort doesn't mean to increase the price unnecessarily but giving facilities at
competitive price to achieve passengers satisfaction.
3.3 Give justification for strategies for International Airlines businesses could respond to change.
The justification of strategies for Aer Lingus is regarding focus on ancillary services.
Ancillaries services are very much helpful for the company as it give an extra benefit to it. The
passengers who are travelling will get satisfaction when ancillaries are provided to them. It can
be justified as ancillaries provide satisfaction to traveller's. This satisfaction has increased in past
years. Company which are providing services to customers are garnering an additional revenue
which seems remarkable from company point of view. This shows that in providing just an extra
facility to them, they are being attracted to the airline. Hence, Aer Lingus should implement the
aforesaid strategy in its operations.
Another justification can be done with regards to its expansion to Dublin airport. The
company must diversify its functioning to Dublin airport so that consumers will be benefited and
in turn company can earn profits from effective functioning. The statistics shows that passengers
are travel to same route in large numbers from flights (Pasqual, Padilla and Jadotte, 2013). As a
result, rivals are enjoying more of the profit. So, the company should extend its flight to Dublin
airport so that it can earn revenue.
The justification for British Airways is related to text messaging to consumers. Text
messaging is small facility but is more impacting then other one. Text messaging facility to both
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business and economy class passengers is helpful to know about the current status of their
respective facilities. The passengers are given information about their flights instantly from the
messaging hub department. The company should make this facility accessible to all the
passengers. For this, it has to implement the strategy for successful accomplishment of its
objectives.
Another justification is for comfort in aircraft. This is to give immense pleasure of flight
to travellers. It can be justified as that passenger's satisfaction can be attained by providing him
the quality services with reference to price paid. By such quality standards, company can attain
the satisfaction of traveller's and can garner revenue from the enhanced services. The customer's
behaviour shows that he will be attracted to comfort driven flight. He will think more of comfort
than for the price paid for availing services. This will give him high comfort in the flight. The
company should try to attain modernisation so that customer's loyalty and trust can be achieved
too full extent. This will give customer high leisure.
TASK 4
4.1 Outline impacts of issues and trends that drive change in the travel and tourism sector
Myla travels, Thomas Cook and Travel Network Group all these companies are impacted
by the issues and trends that drives them to bring change in their functioning. The issues and
trends are:
Myla Group Options the company has options avilable to it like connecting fklights to varuios
destinations. ehnacing customer through comfort in flight.
From three Directors point of view
From the directors point of view is that Myla will surely increase its flights to
various destinations. This will provide more satisfaction to customers as they will rely on Myla
company. As such, profits of company will enhance.
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Merger and Acquisition (Selling Myla group to Thomas Cook/Acquisition)
It can bring new avenues to company by merging and acquisition. More employees will
be employed and as a result, productivity will be more and revenue will be multiplied.
Consortium
It means pooling of various agencies to share a common goal.
Networking
It means a common network of airline which shares same information.
1. Taxation-
Taxation is the main source for filling the government revenue. It's the source of income
for the government. Company has impact on its functioning because of different taxes are levied
to it which reduces its revenues. It affects the business in negative way around the globe. Studies
shows that travel and tourism industry is the one of the highest levied tax industry. High taxes
always limits the growth of the business of travel industry. As such, its growth is reduced and it
has the negative impact on the businesses. All the sectors like airlines, hotels under the travel
industry are under the tax liabilities. The various taxes levied on travel industry are luxury tax,
transportation tax which affect its growth. All the aforesaid companies are levied with numerous
taxes.
2. Human Resource-
Human resource is also impacted on the business that drive for changes in it. The
employees which are recruited and selected in the organisation are useful for the growth of the
organisation. The tourism sector needs skilled and efficient employees which give them excellent
revenue and more productivity (Sigala, Christou and Gretzel ,2012). Employees who are selected
in the organisation should be coherent in their work. The organisation is required that the task to
be performed by the employees should be clearly stated so that they attain the objectives of the
organisation in effectual manner. It is the responsibility of the management team that the
employees carry out their work ion efficient way. This will garner more of the profits to firm
because the productivity of employees will be maximised leading to generation of revenue to
firm. In contrary, if the employees needs like good environment to work or any workplace
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related issues are not solved, then he will be demotivated. As such, organisation will be in
critical situation as it will hinder the organisation goals and objectives leading to severe loss to
the firms. As a result, effective atmosphere to work must be maintained in the firms. The firm
will be able to achieve efficiency in totality. This will bring growth and prosperity in the
organisations and consumers will be highly satisfied by the quality of services deliver to them by
the organisation.
4.2 Outline consequences of businesses failing to respond to market change
Loss of Profit
Profit will be reduced to the extent by which organisation will be outlook by rivals. Once
this level declined at the workplace then management unable to give proper and favourable
response to those changes which incurred in the market.
Loss of Jobs
Employees will lose their jobs which will impact growth of country and unemployment
will be spread in nation
Liquidation and Closure of Business
Economic stability will become unstable as business provides growth to country. Closure
of business will be threat to the nation and negative impact on it.
The travel and tourism industry is the most successful industry of the country and is
major revenue provider to economic growth of the country. It is helpful company to render
quality of services to consumers. In turn, it helps them to earn profit in effectual manner. The
tourism industry provides tour to coastal, beaches and cultural heritage sites to the visitors.
People are attracted by the standard and quality services offered by the organisation in effective
manner. The tourism industry focuses on supervision, planning and evaluating the strategies for
their effective implement and it helps consumers to get satisfied with the quality of services
offered by it.
When companies fail to respond to market change than it may have devastating factors. It will be
reduced profits of the firm, fail to achieve profit margin. It will have negative brand image in
front of the prospective tourists. As a result, reputation and dignity will be hammered too much
extent. This situation is dangerous for Myla Travels, Thomas Cook and Travel Network Group.
It will have negative impressions on the economy of the country also and will lead to instability
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in the economy. This will also lead to liquidation of the company because of lack of management
team with not responding to change and will have bitter consequences on the aforesaid
companies.
Not applying flexible approach to the changing market will make the organisation behind
of the technological advancement. With less use of modern technological tools, it will not
progress effectively and will lead to vain. It will not function properly and efficiently. These will
have negative effect on the marketing of the company. When marketing is not effective, then
business will likely vulnerable to recession (Future trends in the tourism industry, 2012.). This
will bring crisis to the firm.
Competitors will be strong enough and the firm will not be able to retain their customers.
Customer's behaviour is also another factor which should be taken under priority. Consumers are
demanding more varieties of holidays and more of the quality of services having low price. Thus,
companies need to attain the tourists demands and wants so that they can able to garner most of
the tourists and profit will be generated by them in effectual manner. If the company do not adapt
to the needs and wants of the consumer then it will not flourish in accomplishment of its
objectives and goals.
CONCLUSION
Hereby it can be concluded that tourism sector is the most revenue generating industry.
The travel sector is driven by various impacts and issues in the market. The consumers demand
and needs are increasing at a higher rate. As such, organisation need to adapt to the changing
environment. Competition is also increasing. Competitors are developing their strategies in that
way which is attracting more of the consumers to large extent. As such, company has to be
effective in its accomplishment of goals by attracting large numbers of consumers by offering
good packages to consumers at initial low prices. The company need to modernise its operation
so that it can garner large number of consumers which will provide gain to company and profit
will be generated in good quantum of amount. The company needs to respond to the changes so
that it may not lose its customers. If company do not respond to the changes, it will be in vain. It
will serious repercussions to its functioning. In the event of not responding to the changes, it may
lose its profitability margin. It will have reduced consumers satisfaction. It will have negative
impact on the economic growth of the country.
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