Tourism Diversification Strategies

This assignment delves into the topic of tourism diversification within the UK context. It requires an analysis of the current growth trends in the UK tourism sector, followed by a critical evaluation of various diversification strategies employed to sustain and enhance this growth. The assignment also prompts consideration of the challenges associated with these strategies.

CONTEMPORARY ISSUES IN
TRAVEL AND TOURISM
SECTOR

INTRODUCTION
Contemporary issues in travel and tourism sector affect business related to tourism
activities and reduce profitability and economic growth. The report will cover issues currently
driving changes in travel and tourism sector by analysing them with appropriate resources and
methods. Evaluation of current trends influencing changes in tourism sector will be analysed
with the use of appropriate resources and methods. Strategies and plans with justification for
business to respond changes in tourism and travel sector will be discussed in this report. Finally
the report will cover impact of issues drives changes in tourism sector with likely consequences
if business failed to respond.
TASK 1
1.1 Issues currently driving change in the tourism and travel sector
It can be said that there are various issues, driving change in sector of travel and tourism
effectively. This is affecting business of Titan Travel agency in United Kingdom.
Human resources: Human resource is one of that crucial factor of business success that skilled
and knowledgeable employees is required to bring advancement to Titan Travel business. Lack
of effective human resources will affect the work and profitability effectively. Top, middle and
lower level employees should be managed individually to achieve success.
Lack of proper infrastructure: Lack of water supply, electricity, access of roads and sewerage
will affect the travel and tourism sector as well as Titan Travel business. Proper infrastructure is
needed to drive tourism sector within country in order to increase economy effectively.
Technology advancement: It can be said that technologies are improving and developing day by
day that that lack of technology advancement will reduce effectiveness of business which will
decrease profitability. Thus, the business should acquire latest equipments, techniques and tools
to drive profits.
Economical issues: There are economical issues within nation such as inflation and tax rates
affect the tourism and travel sector which has a negative impact on business activities. The
government make changes in such rates according to the economical condition which should be
adopted by Titan Travel to run business smoothly.
Environmental issues: Environmental issues such as population analysis, weather, climate and
geographical location affect the business in both positive and negative terms. Awareness towards
environment is crucial to enhance effectiveness of business operational activities.
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Political issues: Political issues are related to the local government in which some certain
changes are made by Govt. in order to manage and control tourism and travel sector effectively.
People came from outside to visit the place is the responsibility of nation to provide security and
safety to them.
1.2 Current issues with appropriate resources and methods
It can be said that various issues are discussed above such as lack of proper infrastructure,
human resources, service level, rising coast of duel political, economical, environmental and
taxation issues. These are the main elements changing and affecting travel and tourism sector. In
order to increase tourism in nation, proper infrastructure is needed such as electricity, water
supply, access for sewerage and roads. Technological changes are also affecting travel and
tourism sector that proper equipments, techniques and tools should be adopted by business to
deliver quality services effectively. Environmental issues also affecting travel ad tourism sector
such as population, climate, surrounding environment, location. Changes made by government in
terms of policies, laws, legislation, tax rates will also has a negative impact on business.
Such issues and problems can be reduce by making effective use of methods and
resources such as primary and secondary sources effectively. Primary and secondary both are
data collection methods from which businesses are able to collect relevant information regarding
various resources. Primary data collection can be obtained by observing employees behaviour
and performance, analysing market and surveys to collect information. This will be done by
books, journals and texts.
Terrorism and violence issues: Terrorism is one of the major issues affecting tourism in a
particular nation. Safety and security of tourists is the responsibility of local people and the
government as well. Increase tension and hostility is negatively impacting the mood and
enthusiasm of the foreign visitors. Discriminating economic and social behaviour is also a
elements which has a negative impact on tourism sentiments and business as well.
Responsible tourism: Responsible tourism in every nation will help domestic market and
tourism sector to be consumed in a more responsible way. Responsible tourism help country to
minimise negative impact of economic, social and environmental elements. This will help to
generate major economical benefits for the local people and communities and enhance well
being.
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TASK 2
2.1 Current trends influencing change in the tourism and travel sector
Tourism and travel sector activities should be introduced in order to determine influence
of changes in tourism. It can be said that there are different reasons from which travellers travel
one place to another.
INFORMATION-PACK
Inbound tourism: Inbound tourism is where people travel within own country. It can be said
that UK is one of the most favourite destination for tourists as a lot of activities are managed by
UK government in order to enhance inbound tourism.
Outbound tourism: Outbound tourism is just opposite to Inbound, in this people travel to
different destinations to meet various culture and climate effectively.
Nature tourism: Nature tourism is always the first choice of peaceful and potential travellers.
Beautiful nature and environment of a particular nation attracts new people to visit the place in
order to enhance tourism.
Religious tourism: Religious tourism is where people travel to meet their family members,
collogues and friends. This will also increase tourism sector effectively.
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Adventure tourism: Adventure tourism is become famous now a days. People used to go out for
a adventure to capture special moments. They visit places where they feel entertainment and joy
to refresh mind and life effectively. River, mountains, waterfall some example of adventure
tourism.
Health and medical tourism: Such type of tourists travel for a specific purpose of providing
health and medical services and benefits to people across the nation effectively. This will be
done by organising and managing various programs related to health care activities in different
countries. This will also increase tourism that people visit different places.
Thus, it can be said that cultural trends affects, travel sector changes to provide perfection an
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effectiveness of visiting different places.
2.2 Current trend using appropriate techniques and resources
There are various techniques and resources available to evaluate current trend in tourism
sector. In order to do that, quantitative and qualitative both approaches are useful to determine
current trend increasing tourism in a particular nation effectively. The taste and preferences of
tourists changes according to the trend. Qualitative data will help to analyse effectiveness of that
current trend enhancing tourism sector. The data collection method will help management to
evaluate potential areas to expand business activities.
Adventure and Nature tourism: Adventure tourism is become famous now a days. People used
to go out for a adventure to capture special moments. River, mountains, waterfall some example
of adventure tourism. Nature tourism is always the first choice of peaceful and potential
travellers. Beautiful nature and environment of a particular nation attracts new people.
London in United Kingdom should be the first choice of management in order to expand
business and tourism sector. There are many things to do in London, the culture and people are
very energetic and nice to others., London iconic national timepiece Big Ben, London Eye,
Tower of London and River Thames are one of the best places to watch and visit. The increasing
number of tourism in London is a great sign for business in order to expand business activities
and services to achieve profitability. London tourism reached a record of 31.5 million overnight
trips in 2015 which is 2.7 million plus from 2014. a total amount of 15 billion is generated
through tourists spending in London.
The growing number of visitors and travellers in London shows that the business is able
to expand market in order to enhance operational activities and profitability. The income from
tourists is also increasing which is a good sign for UK government towards economical and
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domestic growth. The business should make strategies and plans in order to operate in London as
well.
TASK 3
3.1 Whitbread businesses respond to change
PESTLE analysis will help Whitbread, UK to understand various factors to respond
changes effectively.
Political: Political issues are related to the local government in which some certain changes are
made by Govt. in order to manage and control food sector effectively. The firm should manage
political changes to manage operational activities (Abubakar and Ilkan, 2016).
Economical: The government make changes in inflation and tax rates according to the
economical condition which should be adopted by business to run smoothly and effectively.
Social: Social factors affect the business of Whitbread such as cultural trends, living style and
behaviour of people, fashion and many other things. The business should adopt various changes
in taste and preferences of customers in order to maintain profitability and production.
Technological: It can be said that technologies are improving and developing day by day that
that lack of technology advancement will reduce effectiveness of business which will decrease
profitability (Veal, 2017). Thus, Whitbread should acquire latest equipments, techniques and
tools to drive profits and productivity.
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Illustration 1: Tourism Growth In UK
Source: Visit Britain

Legal: Legal changes such as rules, legislations and regulations and policies manage and
controlled by government also affect business. Legal factors affect structure of business that such
changes should be adopt by management.
Environmental: Environmental issues such as population analysis, weather, climate and
geographical location affect the business in both positive and negative terms. Awareness towards
environment is crucial to enhance effectiveness of business operational activities.
SWOT analysis will help to determine strengths, opportunities, threats and weaknesses in
order to respond changes in travel and tourism business and operational activities.
Strengths: The main strength of business is its structure which is very strong to assist and
provide quality services to tourists in order to enhance tourism (Horner and Swarbrooke, 2016).
Proper knowledge and skills of employees will help to assist tourists in a unique and effective
way. This will help to respond changes in travel and tourism sector.
Weaknesses: The corporation, management and individuals are lazy about their roles and
responsibilities. Negative comments and feedbacks of consumers. The location is also not so
good that tourists can easily reach from their Hotels.
Opportunities: There are number of opportunities available for Whitbread business and groups
in order to expand business and increase production as well as profitability. Education,
communication and experience and many other skills will help to understand tourists and tourism
market.
Threats: Strong competitors in UK such as Black Penny decrease business operational activities
effectiveness by reducing production and profitability. The firm should manage changes in
operations in order to gain competitive advantage (Hartman, Paris and Blache-Cohen, 2014).
3.2 Strategies to respond the change
The business should have clear vision of roles and responsibilities towards objectives of
changes in order to enhance travel and tourism sector within firm. The roles should be cleared to
employees as well to improve their performance and skill.
Creating vision: The effective vision will help business by providing aim to make changes
effectively to move firm towards success. Compelling vision will help to expand operational
activities.
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Consider timing: The most correct time should be analysed by management to ensure changes
effectiveness. A huge number of employees and largest business within UK must need time to
make changes.
Marketing plan: Marketing plans and strategies will help management to control market
activities such as promotion, changes to achieve goals and targets which lead towards production
and profitability (Baka, 2016).
Marketing mix: Marketing mix strategy help to respond changes in travel and tourism industry.
Product: Products and services offered by Whitbread should be effective to attract customers.
The customer must enjoy food with quality services to increase tourism as well.
Prices: The firm should set good prices according to the products effectiveness and quality in
order to increase sales and profitability. This will help tourists to get healthy food and snacks
which enhance tourism sector as a promotion.
Place: The products and services should be active on those areas where the demand is high and
customers can reach easily and effectively (Vasquez, 2014).
Promotion: The firm should promote activities in order to respond changes effectively. This will
also help to increase tourism by providing information.
Brand development: Brand development strategy will also help to increase market share and
profitability. This will also help towards business expansion by providing information regarding
quality products.
3.3 Justifying the strategies
The strategies and plans formulated by business to respond changes and increase tourism
and travel sector should be evaluated effectively to make sure the goals and objectives can
achieved.
Forming a powerful coalition: the leader or manager of firm should have a strong coalition to
lead changes within business (Lundberg, Fredman and Wall-Reinius, 2014). Changes made by
management should work as a function and like a team to implement plans and strategies
effectively.
Creating change vision: Vision will help employees to understand their roles and
responsibilities. Compelling vision will help to expand operational activities. This will help to
respond changes effectively.
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Marketing plan: Marketing plan and strategy will help management to control market activities
such as promotion, changes to achieve goals and targets which lead towards production and
profitability. This will help to respond changes as well.
Communicate vision: The vision should be communicate to employees and other team members
in order to understand individual roles to achieve success and goals. Discussion and meetings
will help to assess effectiveness of changes towards travel and tourism sector.
Marketing mix: Prices, Product, Place and Promotion activities should be managed and
controlled by organisation that it will help to provide information regarding operational activities
(Leung, Xue and Bai, 2015).
Brand development:This will also help towards business expansion by providing information
regarding quality products. Brand development strategy will also help to increase market share
and profitability.
Thus, it can be said that such strategies and approaches will help to respond changes
within business in order to increase profitability and production effectively. This will also help to
enhance tourism.
TASK 4
4.1 Impact of issues and trends on tourism and travel sector
Trends and issues will have a significant impact on Trail-finders Ltd which drives
changes in tourism and travel sector.
Technological issues: Techniques and equipments are improving day by day which consumes
cost for Trail-finders Ltd operational activities (Carboni, Perelli and Sistu, 2014). Changing
environment of machineries, equipments, travelling accessories affect business activities
effectively.
Unemployment: People are taking interest in Tourism and travel sector that unemployment is
increasing. Knowledgeable, skilled and efficient workers are required to operate business
activities.
Stakeholder issues: Share amounts are increasing by businesses which is a challenging issue to
provide better and quality services at low prices. Financial management of stakeholder is
necessary to respond changes effectively.
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Products and Services: Cultural trends has a significant impact on demand and supply that
people came from various countries with different choices and preferences. This will affect
products and services offered by business in the market.
Mergers: Mergers can be described as corporate strategic aspect which helps to merge
organisations into a single firm which also help to increase functional and financial strengths of
business (Gössling, 2018). For example, Co-op and Thomas Cook are merged in order to create
street travel chain in UK.
Liquidations: It is a stage where a business in unable to pay its obligations. The functional
aspects are divided among shareholders and creditors effectively.
Acquisition: This is a process of keeping records of possessions. This will help business to
acquire right information and right time.
4.2 Likely consequences of business failing to respond market changes
In case the Trail-finders Ltd firm failed to respond market changes, the consequences and
losses is described below:
Sales and profitability: The market changes will affect the operational activities which reduce
sales and profitability for business. This will also affect the vision and objectives.
Profit margins: Profit margins of firm will decrease in case of market changes that certain
strategies are required to respond them in order to maintain profitability.
Attitudinal changes: The market changes also affect attitude and behaviour of people towards
products and services which affect the internal and external activities of Trail-finders Ltd which
reduce profitability and competitive advantage (Buckley and Mossaz, 2016).
Adverse effect on image: This can be described as a negative impact which influences the
products and services in terms of quality and effectiveness. This will affect business reputation
and image in the market towards customers and reduce productivity.
In addition to this, some changes such as climate, environmental, reduction in prices and
ethical consideration should be managed by firm in order to reduce consequences. The
considerations will help to assess the current issue and consequence influencing the business
activities and operation effectively (Dickson, Misener and Darcy, 2017). Thus, the likely
consequences of business are failing to respond market changes in terms of products and services
and customers as well.
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CONCLUSION
It can be said from the above report that current issues and trends drive changes in
tourism and travel sector which should be considered by business. The firm should use
appropriate resources and methods to respond changes. Techniques and strategies should be
managed and controlled by organisation in order to manage changes and profitability. The
business should adopt management techniques to control issues and problems within tourism and
travel sector. This can be described as a negative impact which influences the products and
services in terms of quality and effectiveness. The increasing number of tourism in London is a
great sign for business in order to expand business activities and services to achieve profitability.
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REFERENCES
Books and Journals
Abubakar, A.M. and Ilkan, M., 2016. Impact of online WOM on destination trust and intention
to travel: A medical tourism perspective. Journal of Destination Marketing &
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Baka, V., 2016. The becoming of user-generated reviews: Looking at the past to understand the
future of managing reputation in the travel sector. Tourism Management 53 pp.148-162.
Buckley, R. and Mossaz, A.C., 2016. Decision making by specialist luxury travel
agents. Tourism Management 55 pp.133-138.
Carboni, M., Perelli, C. and Sistu, G., 2014. Is Islamic tourism a viable option for Tunisian
tourism? Insights from Djerba. Tourism Management Perspectives 11 pp.1-9.
Dickson, T.J., Misener, L. and Darcy, S., 2017. Enhancing destination competitiveness through
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Gössling, S., 2018. Tourism, tourist learning and sustainability: an exploratory discussion of
complexities, problems and opportunities. Journal of Sustainable Tourism 26(2) pp.292-
306.
Hartman, E., Paris, C.M. and Blache-Cohen, B., 2014. Fair Trade Learning: Ethical standards for
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Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Leung, X.Y., Xue, L. and Bai, B., 2015. Internet marketing research in hospitality and tourism: a
review and journal preferences. International Journal of Contemporary Hospitality
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Lundberg, C., Fredman, P. and Wall-Reinius, S., 2014. Going for the green? The role of money
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Mansfeld, Y., Jonas, A. and Cahaner, L., 2016. Between tourists’ faith and perceptions of travel
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Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
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Vasquez, D., 2014. Employee retention for economic stabilization: A qualitative
phenomenological study in the hospitality sector.
Veal, A.J., 2017. Research methods for leisure and tourism. Pearson UK.
Wiltshier, P. and Clarke, A., 2017. Virtual cultural tourism: Six pillars of VCT using co-creation,
value exchange and exchange value. Tourism and Hospitality Research 17(4) pp.372-383.
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Online:
Cheap assignments 2017. Diversification. [Online]. Available
through:<http://www.cheapassignmenthelp.com/travel-and-tourism-sector//>
Visit Britain 2017. UK Tourism Statistics. [Online]. Available
through:<https://www.visitbritain.org/forecast/>
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