The Impact of External and Internal Changes on Tourism

The assignment discusses the importance of the tourism sector in the global economy, particularly in the UK. It highlights the need for tourism companies to adapt to current threats and opportunities in the environment. The study focuses on tour operators, traveler agencies, and restaurants, providing a comprehensive valuation process and introducing new services or products for potential travelers. It also explores strategies for overcoming the challenges posed by external and internal changes.

Contemporary issues in Travel & Tourism

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the current issues which driving change in travel and tourism sector.................1
1.2 Analysing different current issues with suggesting methods and resources.........................2
TASK 2............................................................................................................................................2
2.1 Evaluating the current trends which influence changes in the travel and tourism sector.....2
2.2 Analysing a current trend using appropriate techniques and resources................................3
TASK 3 ...........................................................................................................................................4
3.1 Analysing the full ham shore plc businesses could respond to change.................................4
3.2 Developing strategies how Fulham Shore plc business could respond to changes. .............5
3.3 Justifying the strategies for how selected the Fulham Shore plc business could respond to
change.........................................................................................................................................6
TASK 4............................................................................................................................................7
4.1 Analysing the potential impact of issues and trends that affect change in the travel and
tourism sector..............................................................................................................................7
4.2 Consequences of business failure to respond market change...............................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Travel and tourism is the wide spread term which transforming different innovative and
creative things for the travellers and tourists. In this process many of the issues and challenges
that company faced due to changes the needs of customer or market as well. All issues related
employees, customers or market lead low profit making possibilities for the company. Travel &
tourism industry has facing contemporary issues such as driven changes, security issues,
advancement in technology, inflation etc. Present study will be based on contemporary issues of
tourism sector. For which Titan Travel tour operator company will be taking into action. It is the
UK based tour operator focusing on UK inbound, domestic and outbound tourism market.
Further study will be introducing the current driving changes in tourism industry. Study also
introducing different approaches as well to overcome the issues. It will also justify the strategies
to handle the changes.
TASK 1
1.1 Analysing the current issues which driving change in travel and tourism sector.
The current issues in tours and travel industry which driving new changes in the market.
Some issues are given below:
Lack of proper infrastructure : infrastructure environment play a most significant role in
tourism sector which express the destination through physical framework from entry ports to
entry ports (Anderson and Dees, 2017). All tourism destination places should have the facility of
roads, electricity, sewerage, water supply and telecom. So that, travellers can get happy and
satisfied with the services of tour operators. However, Titan Travel should needs to arrange
proper facilities or services of hotels, transportation, airlines to give comfort to travellers.
Otherwise, these issues can lead to low customer visits.
Human resource : Availability of staff or employees are the another significant issues that faced
by tourism company due to which they cannot attend clients properly. In order to sustained the
position in the market Titan Travel needs to hire trained, talented or skilled employees to manage
managerial functions, customer service etc. Along, with tourism industry also facing shortage of
sufficient skills required in the employees due to which client facing language issues, cultural
issues etc (Baum, 2015).
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Taxation: Taxation is the biggest issue or challenge which drives changes in prices. This affect
the business growth and long term channel to perform the efficient task (Boniface, Cooper and
Cooper, 2016). This sector consists high taxation rates imposed by government, this issue affect
the whole industry and tour operators. There are different tax imposed across the whole industry
which includes airline sector, transportation, hotels which paid tax in service tax, luxury tax,
transportation tax, aviation tax or other different taxes. The main issue involves is tax rates are
always differed country to country and always unstable.
1.2 Analysing different current issues with suggesting methods and resources
Travel and tourism industry affects by different issues and factors such Titan Travel is the
well known brand of UK that facing current issues such as security and safety threats which
always present within the country environment (Boniface, Cooper and Cooper, 2016). For that,
tour operators and government both needs to adopt some specific methods or sources to handled
the situation of protecting those issues. For example, hospitality industry or hotels can adopt the
use of CCTV cameras in order to make the better performing goals. Apart from that, In order to
meet the goals and best forming result outcomes (Dwyer and et.al., 2016). Apart from that,
moreover, it becomes the better forming results and goals in order to meet out the result
outcomes and goals. Such as hotels or tour and travellers company also needs to managed the
centralised security precautions for their customers safety. All company needs to make efforts
towards the issues and adopt technological advancement to maintained the secure environment
for travellers (Nagle and Müller, 2017).
Inflation or uncertain market is the another current issue that faced by hospitality or
tourism industry. Inflation issue affect directly to the oil and gas industries which directly
influence the prices of air tickets. Due to this issue, air line companies facing threats in customer
bookings. In order to get out of this issues air line company can adopt the method or strategy to
stabilize its customers (Peng and et.al., 2015). To adjust company loss or expensive, company
can invest low amount on training of employees or in other section.
TASK 2
2.1 Evaluating the current trends which influence changes in the travel and tourism sector.
Domestic tourism: UK has shown a good results in terms of traveller visits. It rises by
7.2 % of tourism market from 2000 to 2010 (Smith, 2014). Travellers are more exciting and
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willing to visits UK destination places such as museum, sightseeing by car, etc. domestic tourism
are always influenced by political and economic factors which can be like for every 1% rise in
the cost of visiting UK (Veal, 2017). On the apart, due to changes in rates of taxation, UK
tourism earning rate has been fall by 1.5%.
Inbound tourism : this is the another type of trend in travellers or residents are belongs
from another country and visiting or staying in other countries for some specific time period. As
per the data, it has been calculated that 33.4 million of travellers travel to the country which
helping to rise market earning.
Grey tourism: this tourism reflect those travellers who comes under senior citizens who
travel the world (Veretekhina and et.al., 2017). This tourism trends has been showing the rate of
tourism earning and their trend within the travellers.
Medical tourism : Medical tourism refers to those people who travelling to other country
for getting the treatment. Apart from that, it discovers the long term growth and managing
successful business growth. As per the statistical data 62,000 people from the country have
travelled to abroad for medical care.
Travel and tourism sector is the high effective managing results in order to meet out the
results and goals (Xiang, Magnini and Fesenmaier, 2015). Many of the tourism industry which
affect the better quality and output results for effective management task.
2.2 Analysing a current trend using appropriate techniques and resources.
COVERED IN POSTER
TASK 3
3.1 Analysing the full ham shore plc businesses could respond to change.
Fulham Shore plc is the well known restaurant business in the UK who recently joined
the strategy development team (Vellas, 2016). Restaurants are always served in heavy
competition market which needs to adopt new changes for taking its business task more effective
and challenging. Overall, it brings new managing task which helpful to create long lasting result
ideas and growth.
Sometimes, individual business owner fails to get the level of customers due having
inefficiency level of managing task. Since the cause and impacts of their acts are alienated by
high time and managing task (Nagle and Müller, 2017). Overall, it brings new managing task
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which makes good impact on the overall managing behaviour. There are various opportunities
are involved which company could adopt several forms of results such as offer services,
discounts, new family packages etc. in order to expand the business function, Fulham Shore plc
can also merge business with other hotel or a organisation in order to get higher profit. The major
threats include in IAG are increasing inflation and exchange rates, changing technology and
increasing competition aspects (Veal, 2017).
PEST analysis model can helps to identify the external environment or recent current
status of market situation. It helps to bring new market opportunity and threats to develop the
new managing task. For example, political factors helps Fulham Shore plc to measure the current
changes happened in the political manner. These helps Fulham Shore plc to take better changes
in company policies (Baum, 2015). More over, it also helps to keep the best management source
to identify the new management strategies for new clients and goals. Overall, it brings new
managing and effective leading sources to take new steps and best forming results.
3.2 Developing strategies how Fulham Shore plc business could respond to changes.
In order to adopt changes and new managing task Fulham Shore plc needs to adopt some
changes and new effective goal which required to keep the customer attraction alive. Developing
strategies in tourism market has always been based on the new statistical market. Fulham Shore
plc can make changes in technologies, socio economic changes, changes in consumer demands,
environmental changes etc (Boniface, Cooper and Cooper, 2016).
Technological changes
 Create new connection with customers and address their specific queries, it helps
customer more comfortable to travel to new unknown places without much worry.
 Fulham Shore plc can adopt online delivery system by using company online application,
it helps to feel customer more happy and satisfied with the company practices.
 Introduce new offers and discounts on websites to take attention of new travellers.
Socio economic changes
 Socio economic change can also helpful to make new developing target market goals and
managing legal sources and growth (Smith, 2014).
 Fulham Shore plc and The real Greek both can develop the more understanding results to
make the new major operating task. Apart from that, both groups also makes the proper
arrangement of food services.
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 Another strategy to get overcome from social economic forces are to understand the
needs of current lifestyles by taking feedbacks from the customers.
Changes in consumer demand
 There has been increasing in demand for holiday packages for non family group. Besides,
it also helps to give new services to customers. For that, Fulham Shore plc and The Real
Greek both requires to offering appropriate lodging facilities and customized packages as
per the needs of groups (Xiang, Magnini and Fesenmaier, 2015).
Environmental changes
 Companies need to be aware about the current natural resources which gives negative
consequences to industry. Both the group should have acquired proper certainty
recuperation steps to reduce the chances of environmental causes.
 Companies needs to stop or need to take concepts or steps to stop ways in which
environment gets polluted. Place or location must also needs to free from uncertainty
factors.
3.3 Justifying the strategies for how selected the Fulham Shore plc business could respond to
change.
By creating new product or services with the help of technological manner will help
Fulham Shore plc to take the high interest from customers. This process also helps to reduce the
adverse impact of IAG. With the help of creating new changes will help to make clear vision that
aid to understand the needs and goals. This has been done by determine the results of new
different technologies (Veretekhina and et.al., 2017). By offering new types of services lead to
more opportunity growth for the organisation. Overall, customers or visitors always preferred to
have quality services and managing good performance making growth in terms of managing
successfully growth.
By applying political or social changes into business functions can help to understand the
current market growth which is also very much essential for the company atmosphere (Zeng and
Gerritsen, 2014). All these market approaches or changes strategies will helpful to assessing the
long term profit and market stability to the company.
Building on change within corporate culture is the another technique to implement better
source full task and management performance. Employees or staff must have knowledge and
skills to adopt new market changes which is very much good for the management task.
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Moreover, it brings new management task full growth that affect the business goals to attempt
better customer service (Zeng and Gerritsen, 2014). Overall changes brings new opportunity and
growth between the market channel in order to meet out the effective management and company
long term growth. All these strategies to respond changes will help Fulham Shore plc to attract
new visitors.
TASK 4
4.1 Analysing the potential impact of issues and trends that affect change in the travel and
tourism sector.
There are several issues and changes has occurred in travel and tourism sector that
Trailfinders Ltd faced during their managing functions. There are some issues which driven new
changes within the market (Baum, 2015).
Lack of proper infrastructure : lack of proper availability or requirement in the tourism
and travel sector brings new threats for the company. Such as improper roads, improper
connectivity issues etc. besides, it also brings the new managing task full channel or affectivity
growth.
Employment level: it is the another issue or trend which occurs new certain changes
within the industry level. Ineffective performance of employee can lead low profit generating
task for Trailfinders Ltd (Boniface, Cooper and Cooper, 2016). Besides, it also helps to re correct
the managing successful growth for the new arrangement process. Apart from that, low
employee skills reduce the level of satisfaction of customers. To get over from the issues
company requires adopting the best technique or tools of recruitment selection process in order
to meet out the result and new managing successful business to grab the new opportunity and
growth.
Service level : it is the another issue that affect the business trend and reduce low
opportunity trend (Boniface, Cooper and Cooper, 2016). Customer service in travel and tourism
sector must be proper and up to date. It helps to retain potential customers and give long term
result growth.
Lack of differentiation : lack of differentiation lead low effectiveness result in
outcomes. Due to presence of small and large offering similar products and service the level of
competition will become high. For that, Trailfinders Ltd needs to develop frequent new product
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or services for their clients to get good feedbacks and result growth. However, in tour and
travellers needs and demands has been change constantly (Dwyer and et.al., 2016). So that, it is
essential for Trailfinders Ltd to adopt innovative techniques and unique product and services.
4.2 Consequences of business failure to respond market change
Change management is the most important and crucial stage which every company needs
to adopt within the company environment (Vellas, 2016). New changes in travel and tourism
industry helps to sustain new opportunity of product or services. On the other hand, it also helps
employees to get new knowledge and training opportunity.
Some major specific area which are likely caused by some issues such as acquisition,
liquidations, horizontal and vertical merges. Tourism industry needs to introduce frequency
changes between the working environment to be able to survive in the competitive market. It is
required to managing the long term channel and growth to keep the market sustain and profit
making charges. Consequences can be destroyed company profit, get low profitability, fail to
achieve customer satisfaction (Veretekhina and et.al., 2017). Company faced different
consequences if they failed to meet the new changes and market requirement. Some
consequences given below:
 Trailfinders Ltd might be faced low customer attention and low sales.
 There might also be blow on the image and the reputation of the organisation.
 It might even lead external loss of funds or money.
 Business environment can change in different company operations for various reasons.
Many of the changes fails to adopt by the company for various reasons. Due to which
Trailfinders Ltd might be facing low productivity in marketing and low certainty level of
task.
 Restructuring of teams, departments or the whole organisation.
Negative impact
Due to sudden changes occurred in the working environment can lead some fear within
employees related to job status, they wonder that if company start terminating employees due to
earning less profit. Besides, change can also bring employees stress and frustration level within
the working areas (Veal, 2017). Due to which employees may feel anger and think to quit the
job. Overall, these are the consequences faced by the organisation in the situation of new sudden
changes.
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Another consequences are low market response and getting low customer deals due fail
managing changes and target goals.
Consequences of failing respond to change
These consequences might be reduced Trailfinders Ltd sales and profitability margin,
change in attitudes of customers, suppliers, competitors etc (Veal, 2017).
CONCLUSION
It has been concluded from the overall assignment, that travel and tourism industry has
become an important contributor of the global economy of UK. Tourism sector have known
about the current threats and opportunity involves in the environment. External or internal
environment both are uncertainties which is necessary to adopt by the tourism companies.
Present study has been based on different aspects and taken tour operator, traveller agency and
restaurant to conduct the overall valuation process. Overall, it brings new services or products for
the potential travellers. Study has been explained about the current changes its impact or some
strategies to get over from those threats.
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REFERENCES
Books & Journals
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Management, 50, pp.204-212.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Dwyer, L. and et.al., 2016. Achieving destination competitiveness: an importance–performance
analysis of Serbia. Current Issues in Tourism. 19(13). pp.1309-1336.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Peng, B. and et.al., 2015. A meta-analysis of international tourism demand elasticities. Journal of
Travel Research. 54(5). pp.611-633.
Smith, S. L., 2014. Tourism analysis: A handbook. Routledge.
Veal, A. J., 2017. Research methods for leisure and tourism. Pearson UK.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Veretekhina, S. V. and et.al., 2017. Current trends influencing the competitiveness of
international tourism. Journal of Advanced Research in Law and Economics. 82. (24).
pp.658-669.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services. 22. pp.244-249.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A
review. Tourism Management Perspectives 10. pp.27-36.
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