Analyzing Climate Change Impact on Airline Industry

The assignment requires a detailed analysis of the relationship between travel constraints and destination image, using case studies from Africa and Brunei. It also involves developing origin-destination matrices using mobile phone call data, examining how destination image, perceived value, and service quality affect destination loyalty in Orlando, and understanding the role of individual entrepreneurs in competitiveness for rural tourism destinations.

Contemporary
issues in Travel &
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK-1 ...........................................................................................................................................1
1.1 The different current issues using appropriate methods and resources.................................1
1.2 The different issues by using g appropriate methods and resources....................................2
TASK -2 ..........................................................................................................................................3
2.1 Current trends influencing change in the travel and tourism sector......................................3
2.2 The current trends by using appropriate techniques and resources.......................................4
TASK -3 ..........................................................................................................................................5
3.1 Travel and tourism businesses could respond to change.....................................................5
3.2 Developing strategies on how the business group could bring a change..............................6
3.3 Justifying strategies that have been made to respond to change .......................................7
TASK – 4.........................................................................................................................................7
4.1 The impacts of issues and trends that drive change in the travel and tourism sector............7
4.2 The likely consequences of businesses failing to respond to market changes......................8
Conclusion ......................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
The change at a very large scale is been there in the travel and tourism sector. Due to this
aspect there have been a huge impact on business operations of travel and tourism companies
(Volgger and Pechlaner, 2014). In the recent times there have been also several advancements is
the travel and tourism industry and in this regard it has several positive developments.
This report will represent the current issues in the travel and tourisms sector. The current
trends in this sector will also be presented in this report. Further more this report will analyse the
how this sector will respond to change. The strategies will also be made in this report in order to
help travel and tourisms sector to respond to change. This report will also analyse the impact of
issues that drive change in this sector.
TASK-1
1.1 The different current issues using appropriate methods and resources
In this sector of travel and tourism there are different issues that are taking place. Within
the industry these factor or issues are currently driving different changes. Within Europe UK is
one of the most popular destination that is visited by most of the tourist today. Within the global
market of tourism is has been branded itself as it has rich culture and heritage. Due to there have
been impact on the GDP and economic sales of the destination.
The issues that is faced by travel and tourism sectors are as follows-:
Technological issues- Within the travel and tourism sector there have been issues that is
increasing along with the globalization. There have been impact on this sector due to change of
technologies. The different activities within this sector have been impacted heavily due change
that have been brought by these technologies. Within the business the adaptions of these
technologies are influencing sharing of information and knowledge. There have been also a great
impact on the social interactions due to implementation of these technologies. Over the
preference of tourist as well as their power of purchasing has also had an impact due to
improvement of technology. They have become more demanding and they expect advance
services from this sector of tourism. Within the UK destination are trying to adapt to customer
orientated approach by implementing technology such as e-commerce. The communication can
also be improved by adaptation of technology in this sector. In a cost effective way this sector
can attract more customer towards their business by implementing these technologies at their
business.
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Political changes – Over the travel and tourism business there have been impact due to political
environment. Over the destination different political unrest has been impacting. There have been
impact on economic issues and expense of travel due to Brexit of UK. The business of travel
and tourism sector is also affected due to political stress and conflicts that is taking place .
Economic issues – The some emerging change that is faced by this sector is due to economic
issues such as unemployment rates, fluctuation in trade rates, change in exchange rates and
global economic scale etc. Over the currency rates of destination there have been great impact
due to exit of Britain from Europe. So, due to this there have been direct impact on travel and
tourism business over the destination (Zehrer and Tschiderer, 2014). The change in economy
have an impact on business of this sector and also the power of purchasing of travellers also
change with this .
Health issues – There have been increase in specific infectious diseases among traveller who are
travelling. In the year 2003 the outbreaks of SARS is the one of the example of the spatial
mobility and the active role of tourists.
Terrorism Issues – To the sector of travel and tourism the activities of terrorism are imposing
direct threats .The different areas are being targeted by terrorists in different destinations. The
London bridge attack that took place in UK have reduced the number of travellers that are
visiting these places (Terrorism in UK, 2017.).It has developed after among tourist who area
visiting these places so the tourist area preferring places that are more safe and secure of their
family and loved ones. The debts are also been increased due to these attacks that is taking place
as for safety and security the debt need to raised in another destination.
1.2 The different issues by using g appropriate methods and resources
Within the north America and middle east the two different issues are having an impact
over business of tourism. In attracting tourists the destination have potential and also there have
been increase in the growth of travel and tourism business. Within this destination the political
unrest is having an impact over reputation of tourist destination. The travellers are not visiting
these destination due to political issues they have developed fear among travellers. Within the
business of tourist and travel the political unrest is creating hurdles. The political issues are being
there due to local riots , financial crisis , increasing unemployment rates etc within the
destination such as Egypt, Syria etc . The number of tourist that is visiting Egypt has been
reduced due to increasing rates of crimes in this destination .
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In the destinations such as Tunisia and Egypt the hurdles and the issues is also been faced
due to the number of terror attacks that is taking place in this destination. The potential is there in
these tourist detonation to attract the travellers towards them and also increase income
generation .But due to terror attacks and riots that is taking place in this destination the number
of travellers have reduced in the number and the negative impact is there on this destination as
riots that is been there. The travellers are getting information about these issues due to impact of
globalization on the lifestyle of travellers. In these destinations the counter terrorist activities are
the other issues. Against the actions of terrine the counter terrorism activities are been conducted
Within these areas the increase in terror activities are challenging safety of the travellers that are
travelling. The contract law that is being imposed by government of Egypt against these
activities and counter terrorist is also reducing the willingness of tourists to travel to these
destination .By the security measure also the legals issues of travel and tourisms are impacted .
TASK -2
2.1 Current trends influencing change in the travel and tourism sector
Due to launch of new products and brands the tourism sector is expected to expand in the
coming time period.
Spiritual tourism – As the lifestyle of people is becoming more busy and stressful so they are
increasingly mentally disturbed so they are searching for solace in spiritual leading, meditation
and moments of divine actasy.
Adventure tourism – The one of the largest segments of world and domestic tourism is youth
tourism. In the attitude and behavior of youth the adventure and risk have a special role to play.
The experiences is seek, collected and gathered by the young travellers. By number of factors
such as increasing involving higher education, cheaper long travel etc are some the growing
number of factors by which young is fuelled by (Telfer and Sharpley, 2015).
Green tourism – As today more and more people area become responsible towards their
environment so green and sustainable tourism is being preferred by them. The tourists today
want greenery places and less pollution and also where the cities and monuments are maintained
and hygienic are preferred by most of the tourist today. So, the responsible tourist in UK is
trying to promote eco-tourism where great effort will be made to develop a better experience for
both tourist and host.
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Inbound tourism – For the traveling the other residents will come and visit UK for traveling. The
most of the visitors' area attracted towards UK and come to UK in order to visits places such as
Tower of London. British Museum and many other. In the UK the inbound tourism have
increased .The number of customers have mainly increased in UK due as the weather is good,
crimes are less and facilities for transport are also good (Pike and Page, 2014).
Growing use of internet – All over the world and in this sector of tourism the use of internet has
enhance the usage of tech-logy. Over the internet the booking of trip is been done by
transliterated about the particular destination people can search out by using internet .By using
this they can also search for accommodation and food that is been offered by these places .For
particular places the review is also been checked by them.
Medical tourism – As tourist destination UK is promoting the high-tech healing by its health
care sector. In a medical tourism it rapidly increase the trade. The low -cost treatment is been
given in the medical tourism The healing treatment such as yoga, Ayurveda etc is been provided
by this sector of tourism (Zhang and Lu, 2014.).
2.2 The current trends by using appropriate techniques and resources
In order to analyze the trend the most effective technique that can be used is the market
research. In an effective manner the operator of travel and tourism of UK have been using this
technique. By providing or offering packages it helps to examine the latest trends of the market.
And based on these trends the packages can be made for the tourists. There have been change
that is being there in the preference of customers this sis due to change in environment. In order
to analyze the market this technique is being used by tourists (Pearce, 2014 ) . From one tourist
to another the choice of tourist destination differs. The number of visitors that are vising UK is
increasing. The adventurous destination are been preferred by young travelers .In order to
expand a niche tourist market the adventure tourism is been targeted. At a tremendous rate the
number of out bound tourists is increasing in UK. This was analyzed form data analysis. And
also there is an increase in number of trips. By using both primary and secondary reach the data
is collected and the information is being collected in the form of qualitative and quantitative
form.
The give below will represent the number of visitors who have visited UK and their purpose of
visit.
Purpo 2013 2014 2015 Total
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se of
visitor
s
Holida
ying
35000 37000 40345 112345
Busin
ess
6770 6500 7456 20726
Visitin
g
friend
s and
family
11000 13456 13987 38443
Miscel
laneou
s
1500 1400 1695 4595
Total 54270 58356 51483
Thus, from the above table it can be concluded the number of visitors that are visiting UK
are visiting it for holidaying purpose since last years that is in 2013,2014 and 2015.And in the
year 2014 the number of visitor that have visited UK were more in number in comparison with
2013 and 2015.
TASK -3
3.1 Travel and tourism businesses could respond to change
In the London UK international airline group is one of the leading airlines group of the
world (Mowforth and Munt, 2015. ). The British airways, Iberia etc are the businesses and have
about more than 530 aircraft that are flying in more than 246 places or destination. With the help
of SWOT and pestle analysis the manner in which international airlines group can give
competition cab be explained. The strength,weaknesses ,threat and opportunities of this group
can be identified by conducting SWOT analysis. The SWOT of this airline group is as follows-:
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Strength – The base of customers is huge of this airline and it also have a wide coverage area.
The quality of the products or services that is been offered by this group is also excellent .It has
some loyal customers and also the reputation and image in the market is also good.
Weaknesses - The function of this group is quite rigid and also the services that is been
provided is also limited. In this airline group the technology is not used properly. Till now the
old technology is been used. So, there is no technology advancement.
Opportunities - The company as the opportunity to expand its business in other countries also.
And it can also provide advance services and offer different products to its customers. In order
to receive greater support it can also merge with other companies and develop partnership. This
will be good initiative for the busies expansion
Threat – The increase in inflation rates and exchange rates are some threats that can be faced by
this company. The change in use of technology and the competition that is been faced by rival
companies are some threats for this group (Komppula, 2014).
In order to analyse the external factors the pest analysis can be used. Over the business the
political analysis will help to find out the impact of change in the political parties or conditions
in the country over the business. The impact of fluctuation rates, garbage rates etc can be
analyses by using economic analysis. The impact of taste, preference , choice etc can be analysed
through social analysis. Over the performance of business the impact of technological change
can be evaluated through analysis of technological analysis. The sector of tourism need to
respond to change if there is any change in the technology .If thee is any change in the needs of
customer then this sector also need to bring that change More and more unique and different
packages need to be made by this sector in order to attract more number of customers .The
expansion strategies are been impacted due to increasing issues of carbon footprint in the
security systems in the airline business.
3.2 Developing strategies on how the business group could bring a change
Within the Europe British airline have been considered as the success of airlines business.
Over the market competitors the value added service that is been given by these airlines is
having a positive advantage. In order to improve their capabilities the British airways need to
examine the current trends and perspective of business (Kim, Holland and Han, 2013).There
need to adopt distinct strategies and techniques in order to consider the current trends of market.
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Before planing any strategies there need to place demand over long haul and short haul tourists
need to be analysed. In order to respond to change they can adapt to marketing mix strategy .
Product – The needs of customers will be satisfied due to products that is been offered by this
group. Within the services the airline group need to add more values by giving facilities such as
loyalty, lounges etc. The more potential customer need to be attracted by this aircraft who are
willing to spend more
Price – In order to grab more number of customers this group is setting up appropriate pricing
policy. The discount can be offered by this company in order to increase the number of traveller.
Place - In different potential places this group has placed its services efficiently (Kim, 2014).
The network can be expanded by approaching potential routes of different countries such as in
Asian countries etc. In order to make their transaction smooth and provided customers with
better experience these airlines has to place distinct technologies.
Promotion – The innovative approaches can be used by this group in order to attract more
number of customers. It can promote its airline on social media sites such as Facebook ,twitter
etc.
3.3 Justifying strategies that have been made to respond to change
With proper evaluation the organization need to maintain its position within the rival
market. The better services can be provided by this airlines by considering the marketing mix
strategies and this will also help them to gain competitive advantage from rivals. Over the
demand of potential customers the lower prices is impact (Iqbal and González, 2014). The high-
class passengers is being targeted by this airline so reducing the cost will have negative impact
over their mind and can lead to loss. The more revenue can be generated by giving discounts
offers to inbound market. Within the market the better approaches can be made from
promotional strategies.
In order to devise strategies for change SWOT analysis of UK can be done
Strength – Among the world it is one of the famous destination. From all over the world it
attracts tourist. With world class facilities it can mange large number of tourists .In historic
monument UK is rich and most of the people visit UK in there holidays .
Weaknesses- The current is too costly. For people who belong to other parts of the world to
know effective marketing of anything such as historical significance is very important. As the
heritage is open but it does not limit the number of people who can come. For the support staff to
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manage this can lead to a lot of difficulty. Also in comparison with other countries the currency
of UK is very costly.
Opportunity – Many new monuments and theme parks need to be created in order to increase the
experiences of visitor. For attracting foreign tourist presence of monuments of this heritage
importance is still a very importance factor. For the local resident UK is a popular domestic
destination and in the future also it is expected to grow. In order to attract the tourist the
presence of monument in the UK is still a very important factor
Threats- In comparison with other countries one of the biggest threats to British tourism is the
strong British currency. To tourism in the country racial attacks against foreigners pose a threat
to the tourism. A more budget airline need to be launched by the government .This will
encouraged more and more tourists. At a verifying budget hotel providers need to provide
accommodation so that it can cater to diverse base of customers.
TASK – 4
4.1The impacts of issues and trends that drive change in the travel and tourism sector
Merger - In order to enhance the financial and function strength of to companies a
merger will combine various organization into one organization. In order to be the largest high
street travel chain Thomas cook and Co-op have merged together. The change on sector change
such as merger can have stress, fear of loss job etc.
Acquisition – In this custody of one asset is taken by another through either purchase of its
shares or assets (Chen, Chen and Okumus, 2013).
Liquidation – When the company is not bale to pay its due it becomes insolvent so its asset are
distributed among creditors as well as shareholders.
Security – In the travels and tourism business the safety and security issues are most important.
The different polices are been implemented by the UK government considering these issues. By
the UK government the safety and security will be measured through these polices.
Government actions – In order to attract tourist and providing opportunities for tourism business
UK government has been promoting different events and programmers to attract tourists.
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Technology – The latest and advanced technology need to be used by the travel and tourism
industry in order to provide the excellent services to the travellers. The online booking system
etc facilities need to be give to them.
4.2 The likely consequences of businesses failing to respond to market changes
Price reduction – The companies are reducing their process in order to attract more
number of customers. In the process of booking flights, food lodging etc the reduction is been
done by famous tour operator such as Thomas cook.
Change in climate – On the travel and tourism sector this will have a huge impact and it cannot
be predicted also (Carlisle and Tiffin, 2013.).
Environment friendly location – The environment friendly locations are being preferred by most
tourists today. The initiate is been taken by well known tourist operator in order to keep
environment friendly.
The tour operators have to evaluate the forces for developing the service and tourism
products that can have impact on tour package .Over the current trends the tour operator need to
have proper knowledge that are driving changes in this industry. The proper risk assessment plan
will made by tour operator by analysing the political changes and current issues such as climate
changes in destination.
The lack of adoption of the strategies can result in the failure of respond to change and this may
lead to fall in sales and reduction in the profits. In the change of the attitude of the employees,
suppliers and customers will be there if there is failure in adoption of change. The negative
impact will be there on the business and the quality of the services will also be affected.
Conclusion
Thus summing up the above report it can be concluded that major issues such as
terrorism attack, technological advancements, economical issues etc are being faced by these
travels and tourism sec tot. The current trends such as green tourism, inbound tourism etc are
being there. The international airline group is well-known British airport and it customer base is
also huge .The marketing mix strategy can be used in order to bring a change in this airline. The
change in climate cannot be predicted and may have huge impact on travel and tourism sector
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REFERENCES
Books and journals
Carlisle, S. and Tiffin, S., 2013. Supporting innovation for tourism development through multi-
stakeholder approaches: Experiences from Africa. Tourism Management. 35. pp.59-69.
Chen, H.J., Chen, P.J. and Okumus, F., 2013. The relationship between travel constraints and
destination image: A case study of Brunei. Tourism Management. 35. pp.198-208.
Iqbal, M.S. and González, M.C., 2014. Development of origin–destination matrices using mobile
phone call data. Transportation Research Part C: Emerging Technologies. 40. pp.63-74.
Kim, J.H., 2014. The antecedents of memorable tourism experiences: The development of a scale
to measure the destination attributes associated with memorable experiences. Tourism
management. 44. pp.34-45.
Kim, S.H., Holland, S. and Han, H.S., 2013. A structural model for examining how destination
image, perceived value, and service quality affect destination loyalty: A case study of
Orlando. International Journal of Tourism Research. 15(4). pp.313-328.
Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness
for a rural tourism destination–A case study. Tourism Management. 40. pp.361-371.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Pearce, D.G., 2014. Toward an integrative conceptual framework of destinations. Journal of
Travel Research. 53(2). pp.141-153.
Pike, S. and Page, S.J., 2014. Destination Marketing Organizations and destination marketing: A
narrative analysis of the literature. Tourism management. 41. pp.202-227.
Telfer, D.J. and Sharpley, R., 2015. Tourism and development in the developing world.
Routledge.
Volgger, M. and Pechlaner, H., 2014. Requirements for destination management organizations in
destination governance: Understanding DMO success. Tourism Management. 41. pp.64-
75.
Zehrer, A. and Tschiderer, F., 2014. Leadership networks in destinations. Tourism Review. 69(1).
pp.59-73.
Zhang, H. and Lu, L., 2014. Destination image and tourist loyalty: A meta-analysis. Tourism
Management. 40. pp.213-223.
Online
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Terrorism in UK. 2017. [Online] Available through:
<https://www.theguardian.com/uk-news/2017/oct/17/uk-most-severe-terror-threat-ever-
mi5-islamist/>.
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