Impact of Market Trends on Travel Agencies

This assignment examines how various market trends, such as changing customer preferences, technological advancements, and government regulations, affect travel agencies. It focuses specifically on companies like Thomas Cook and Myla Travel Agency, analyzing the consequences of failing to adapt to these changes and outlining strategies for navigating a competitive landscape.

Contemporary issues in Travel &
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Current issues in travel and tourism sector.......................................................................3
1.2 Analysing different current issues....................................................................................4
TASK 2............................................................................................................................................5
Covered in PPT.......................................................................................................................5
TASK 3............................................................................................................................................5
3.1 How international Airlines Group business could be respond to change.........................5
3.2 Strategies of two organisation in respond to change........................................................5
3.3 Justify strategy of selected two organisation....................................................................6
TASK 4............................................................................................................................................7
4.1 Impact of issue and trends in travel and tourism sector...................................................7
4.2 Consequences of business failing in respond to market change.......................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and tourism sector is one of the biggest industry where people are spending large
amount. In past the travel and tourism activities are mainly focused on the trade and food related
requirements. But now the purpose of travelling has been changed completely. Now a days the
people are travelling for the purpose of relaxation and recreation. Many of the countries are
dependent on the tourism sector (Ashworth and Page, 2011). However, the development of
tourism sector has became extremely complex and it is a challenge for all business to involved in
this sector.
The present report is based on Thomas Cook who is planning to make a trip on bank
holiday or Sunday for the customers. Here the some issues has been explained which impact on
the travel and tourism industry. Further, some strategies has been develop that how the
international airline group business will be respond in a dynamic environment.
TASK 1
1.1 Current issues in travel and tourism sector
The issues which has been drive from the travel and tourism is changing and it is vary
from one place to another. For Thomas Cook it is important to analyse the issues which are
related with travel and tourism because the government, travel agencies, tour operator are having
many solution regarding the issues of this industry. But no one common or simple solution to
provide remedies related with these issues (Blackman and Benson, 2010). The following are
some issues which are facing the travel and tourism sector.
Use of social network as communication tool – Thomas Cook has to use new
technologies in which will offer them a advantage to both the visitors and travel industry. There
are many applications and websites such as Face Book, company websites and other social
network become integral part for the people. With the help these social network sites the
company can solve the customer issues or the consumers can make proper decision regarding the
purchase of products and services. With the high use smart phones and tablets, Thomas Cook can
directly communicate with the customers and make sturdy relationship with them. It has been
observed that the usage the more social network sites has changes the concept of travelling
products.

Increased security – At destination place, security has become the major issue for any
people. The level of tourism in increasing on regular basis so they also have to improve the
security while taking some appropriate actions (Coghlan and Gooch, 2011). Every year the
number of tourist are increased rapidly and the income of the people are continuously increasing.
So they are also expecting that travel companies have to provide proper safety measures.
Through this the level of international tourist will also increased.
Increased environmental awareness – Travel and tourism have to prevent the wildlife
in order to provide quality of services to customers. The green tourism tends to be foster on or
development to promote the safety and protection of the environment. Every person is
responsible for to make some contribution for the safety and protect the environmental issues.
The wastage which has been done by the travel and tourism industry should be dumped properly.
Technological advancement – It is the major issue in travel and tourism sector. This
sectors have to update with new and latest technologies in which they can improve their quality
of services. Through this it will help to customers to book the tickets online, hotels and many
more. Thomas Cook have also to provide proper training to employees in order to provide
quality of services to customers.
1.2 Analysing different current issues
The travel and tourism affect the local economy. As tourism industry is the booming and
revenue generated which leads in the economic growth. Through this it also enhance to visitors
for the visitors growth. Thomas Cook has to cope up with the number of issues which is related
with the travel and tourism sector (Cohen and Cohen, 2012). The tour operator have to analyse
these issues and collect the information so that they can maintain the policies, promote the
historical and natural heritage places and many more. The issues which are related with travel
and tourism are not specific but these issues are diverse in nature. There are many issues such as
safety of visitors, economic downturn oil spills and many more. They have analyse these issues
on regular basis so that the company can adopt new strategies and methods to resolve these
issues. The policies which has been framed by the Thomas Cook are outdated, it has to be being
again formulated by the policy makers. The policy makers has to focus on the needs of
customers in order to successful increase the inbound tourism in own country.
Thomas Cook has also to focus on the to establish the destination management technique
with the help of advertisement, exhibition which is based on travel and tourism sector. The

organisation has to use latest technology in which they can also increase the brand awareness.
Through this the communication can be made with customers (Cohen and et. al., 2014).
Communicating with the travellers with the help of online medium need to by used by the
manager for the analysing their issues also.
If there is rapid fluctuation in the current price of other country then it will also directly
impact on the profits of Thomas Cook. In this there will be slow growth in this sector. On other
side if there is high inflation in the market due to uncertain conditions when there not not
predictable by the tourism companies. It will also impact on the objectives of organisation. The
company have to analyse other issues also on regular basis in order to achieve business
objectives. Sometimes it also became issue for the organisation to understand the laws and
regulations of other country.
TASK 2
Covered in PPT
TASK 3
3.1 How international Airlines Group business could be respond to change
International airline group is multinational airline group who provides different services
to customers across the world. It is a British-Spanish group in this industry. This airline is
considered as beat group in the world. This organisation is trying to perform very well due to
regular respond to the change in dynamic environment (Connell, 2013). It is the responsibility of
managers to analyse these changes on regular basis so that they can bring some modification in
the policies. To respond in dynamic environment it can be understood with the help of Pest
which is described as below.
Political factor – The aviation industry have to follow some rules and regulations which
has been framed by the government. For example, government has introduced some of the
security measures in order to protect the safeguard interest of the passengers.
Economic factor – The services which has been provided by the international airline
group should be according with the need of customers. In other words the prices of services
should not be very much high or low. In 2008, this group has been affected by the recession.

Social factor – There are many consumers who are opt for the brand to use the services.
The social factor are mainly affected by the choice of customers, demands of products and
services which may be change according to the lifestyle of people.
Technological factor – This group is using the advancement of technology in which they
are updating their process accordingly (Connell, 2013). These group are providing the online
facilities in booking the tickets which will provide benefit to this industry as well as passengers
also.
3.2 Strategies of two organisation in respond to change
International airline group so many groups such as British airways, Vueling, Aer Lingus
and so on. They all are having the same business but they have to adopt different strategies to
manage their business in global; competitive market. The two business has been selected British
Airways and Lberia to analyse that how they are responding towards change in global
competitive market.
The strategies of British airways are as follows.
Product development – It is that strategy in which the organisation can launch new
products and services to expand their business in different markets. Through this it will help the
organisation also to maximise the profits. The services which are provided by this organisation is
food and luxury services to passengers at the time of travelling.
Market development - As this group as good reputation in market. The company has
cover has large market areas in which they are covering huge number of customers (Dickinson
and et. al., 2014). The customer base of this company is very strong. As this company is
providing services according to the needs of people so that they will retain for a long period of
time.
The strategies of Lberia are as follows.
This company has also to use above strategies product and market development. In
product development, the organisation has to improve the quality of services and products and it
should be provided to passengers in appropriate manner. At the time travelling the people want
that they just need good quality of services and products so that they can enjoy the travelling.
In market development, it help to this group in order to build their strong brand position
in global competitive market. The manager has to take some initiatives in which they can attract
the large number of customers and maximise the profits.

3.3 Justify strategy of selected two organisation
The marketing strategies of two organisation can be proposed good for the improvement
of existing business operation (Dunkley, Morgan and Westwood, 2011). These strategies should
be introduced at the large level of organisation. Market and product development are the best two
strategies in which both companies can respond to change in dynamic environment. They have to
also analyse the SWOT and PEST analysis for making the appropriate actions in order to achieve
objectives. These both airline company British Airways and Lberia are responding according to
their own capabilities which are change in market.
For British airways company the product development is good strategy because this
organisation provides wide range of services to passengers. It is the responsibility of manager to
identify the proper needs of customers so that they can fulfil their requirements by providing
numerous products (Evans, Stonehouse and Campbell, 2012).
For Liberia, market development strategy is good. This company has to target the large
number of customers so they have to use proper promotional techniques to target new customers.
The main target of this company should be to target the middle class range of customers.
TASK 4
4.1 Impact of issue and trends in travel and tourism sector
Thomas Cook is one of the best tour operator in UK and Myla travel is the good travel
agency which has around 9 office in UK. The Network group wants to join the group of Myla to
expand their business. On other side Thomas Cook is desire to acquire the Myla travel agency so
that this company can also provide services in travel agencies (Kang and et. al., 2012). The
following are the issues which are impact on the tourism.
Capital investment – It is the most important factor which affect the business objectives.
To acquire more market area, Thomas Cook need to invest the large amount of funds so that they
can improve the their quality of services.
Lifestyle of customers – The change in taste and preference of customers will impact on
the tourism industry. The manager of all the organisation Thomas Cook, Myla travel agency has
to proper analyse the needs of customers which are changing according to the moods of
customers. The modification in business should be change according to requirements of
customers.

Technology – The organisation has also to provide services through online in which
customers can easily book their tickets online (Kim and Ritchie, 2014). The company has to use
proper social network sites and provide discounts to customers.
Government regulation – If there is continuous change in the government regulation
then it became difficult for Thomas Cook, Myla group to operate their business in competitive
market. The manager has also analyse these regulation on continuous basis so that they adopt
appropriate strategies to work in competitive market.
4.2 Consequences of business failing in respond to market change
The above mentioned trend and issues which are require to be dealt in proper way so that
the organisation can face any type of problem. The major impact of trend and issue is that these
can hamper the sustainability of organisation in gaining their business objectives. The
technologies which has been used by the organisation should be used in proper manner in which
they can provide quality of services to customers (Kim, 2010). It is essential for the organisation
to ensure about the security measures which has been provided at destination place. If travel and
tourism company failed to respond in the market changes then it is impossible for them to enter
in the niche market and quality of services will also be deteriorated. There are many list which
are included in the negative impact such as suddenly change in the customers taste and
preferences, demand of products and services can be faced by the organisation. The managers are
required to make the proper strategies and plan and should follow all the rules and regulations
which has been made by the government to face the unfavourable consequences. The negative
impact are huge at micro and macro level to achieve the objectives of organisation (Kusluvan
and et. al., 2010). If there is any change in the customer taste and preferences it will be the duty
of organisation to introduce products according to their requirements.
CONCLUSION
After summing up report it has been concluded that the travel and tourism company need
to understand strategies by which they can achieve their business objectives. This sector are
mainly affected by the political, economical, social many more. Thomas Cook have to analyse
those factors in which they can ensure for the growth of the business. To operate the business in
global competitive market it is important for the organisation to implement proper strategies and
plan.

REFERENCES
Books and Journals