Tourism & Hospitality Industry Analysis

This assignment focuses on the global tourism industry with a particular emphasis on destinations impacted by natural disasters or political instability. Using sources like Standing et al., Scarles, and Schegg & Stangl, students will analyze the impacts of ICT on tourism, the emergence of hybrid online distribution channels, and the resilience of destinations post-disruptions (e.g., Egypt). Additionally, students will conduct a SWOT analysis on Iberia's tourism industry. The assignment aims to evaluate students' understanding of global tourism trends and their ability to critically analyze the impact of external factors on the industry.

CONTEMPORARY ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1...........................................................................................................................................3
1.1 Issues currently driving changes in travel and tourism sector..............................................3
1.2 Analysis of different issues...................................................................................................5
TASK 2...........................................................................................................................................7
2.1 Evaluation of current trends influencing changes in travel and tourism sector....................7
2.2 Analyses of current trends using techniques and resources..................................................8
TASK 3...........................................................................................................................................9
3.1 Response by travel and tourism sector on changes...............................................................9
3.2 Strategies to give response to travel and tourism industry..................................................11
3.3 Justification of strategy.......................................................................................................12
TASK 4.........................................................................................................................................13
4.1 Impact of changes in travel and tourism sector...................................................................13
4.2 Consequences of business failing to respond to market changes........................................15
CONCLUSION ............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Tourism industry major contributes in the economic development of nation. Changes are
continuously transforming places and creating issues in this sector. Since long time travel and
tourism industry has shown tremendous growth and has earned high profit over the period of
time (Blanke and Chiesa, 2013). At the same time, this sector has faced several challenges
which has created issues for tour operators. Present report is based on Thomas Cook which is the
leading tour operator. Company provides luxurious travel facilities to visitors. Current
assignment will discuss issues that currently drive changes in travel and tourism sector. In the
present study current trends will be analyzed. Furthermore, study will suggest strategy that can
help travel companies to give proper response to issues. In addition, impact of issues will be
explained in this report.
TASK 1
1.1 Issues currently driving changes in travel and tourism sector
There have been significant changes occurred in the last 10 years. There are many issues
and challenges that have been experienced by travel and tourism industry. In order to deal with
these issues it is essential to make effective strategies that can support in resolving long term
problems of travel and tourism industry (Becker, 2016).
Technological Advancement and its used in travel and tourism
It is the major factor which has derived changes in the travel and tourism industry mostly
in a positive way. Continuous improvements and innovations in technologies are changing the
travel and tourism sector. The internet applications especially 24/7 online buying and E-ticketing
are the main applications widely used by most of the visitors. People book their tickets online
which is quite easy for them and saves their time. If they do not find this option in any location
then it creates issue for them and they change their mind to go there. Anti-terrorism techniques,
security measurements help in keeping the nation well (Thakran and Verma, 2013). But due to
these technologies terms and conditions have been changed and travelers find it difficult to go to
any place in such hard conditions. That has changed point of view of visitors and they cancel
their booking to go to such places where airport checking or other security issues are high. This

has affected revenues of Thomas Cook to great extent and corporation had to make changes in
its system so that it can sustain in the market for longer duration (Hudson and Thal, 2013).
Source: Google Images
Rising cost of fuel
Travel and tourism sector is depended upon prices of fuel to great extent. Recent change
in cost of gasoline has impact on entire industry. Due to increasing prices of fuel Thomas cook
has to increase prices of its travel packages as well (Standing, Tang-Taye and Boyer, 2014).
That has created negative situation on the organization because it enhances budget of visitors
and individual cancel their plan to go on holiday. That decrease sales volume of the corporation
to great extent.
Taxation
It is considered as one of the major element that drive changes in travel and tourism
sector of Egypt and Marrakech. Due to increase tax rates people are not taking interest in
holidays because it is over budget for them. By this way number of tourists are decreasing in
both these places which affects overall revenues of this industry. Travel and tourism industry
pay high tax to government as it is major sector which contributes well in economic
development of nation. Increasing tax prices affects its growth and that is why profit of Thomas
cook have been decreased (Schegg and Stangl, 2017). Tax have been imposed to all related

sectors such as transportation, airline, hotels etc. That is why entity has to face huge issues
because in such high taxes it is unable to provide luxurious travel packages at affordable rates.
State of economy
Inflation and deflation are major conditions which not only affects travel and tourism
sector but also drive changes in entire nation. If there is inflation then people will not be able to
spend much amount in travelling. Thus, business of Thomas cook will be affected which can
impact on its revenues (Jucan and Jucan, 2013). On other hand if there is deflation then also it
will drive changes in travel and tourism sector because it will affect income of the population.
Visa fee
Visa is the major issue for travelers before going to any place they have to take visa for
particular place. North Africa is facing political unrest situation and Egypt is also facing issue of
terrorism activities. Due to these condition's person who want to go to these places they have to
pay high visa fees. It increases their financial burden and travel become over budget. Thus, they
change their mind which impacts on the travel and tourism sector to great extent.
All these factors are main issues that drive significant changes in the travel and tourism
industry to great extent.
1.2 Analysis of different issues
There are many issues faced by travel and tourism sector and in order to identify rout
cause of these problems it is essential for the Thomas cook that to take support of techniques and
resources so that such type of issues can be minimized soon (Pastiu and et.al, 2014). There are
various techniques and resources by which entity can analysis different issues. These are as
following:
Collection of previous information
It is considered as one of the most important resource or technique that can be used by
Thomas Cook for analyzing the issues in travel and tourism sector (Inversini and Schegg, 2016).
This method includes primary and secondary sources.
Primary sources: In order to find out cause of problems researcher can take support of this
technique. Thomas Cook has to observe the market and consumer behavior, this can help in
measuring the problems. Management can conduct survey and can ask questions with staff of

tour operators regarding the issues in this industry (Stoner and et.al, 2014). This can help in
analyzing the problem of this industry effectively this will help organization in finding strategies
to resolve these issues. Survey and observation are two best resources that can be used to
analysis different issues in the travel and tourism sector.
Secondary sources: It is considered as one of the essential tool of research method in which
scholar can take support of already available information such as books, journals, internet
articles, past figures about company information to find out root cause of the problems (Wilks,
Stephen and Moore, 2013). With the help of this secondary source Thomas cook can be able to
develop effective strategy that can assist in analysis different issues and resolving them.
Different issues in Middle EasT and North Africa MENA are as following:
Terrorism in Turkey
Security is the main concern for the travelers. Whenever they plan to go to any place
then they think for security and safety first. Egypt is the destination where terrorism activities
are increasing with the rapid speed. Due to this, people are not taking interest to go in middle
East. Apart from this, travelers also find difficult to make connection with local police as well.
In such condition business of this sector get affected. Turkey is the country where high terrorism
activities take place. This impact on tourism business of the organization to great extent. Due to
higher terrorism problems travelers do not take interest in coming there. It impacts on overall
revenues of the nation and it fails to generate foreign currency through this industry. This
violence impact negatively on tourism sector of the region.
Political unrest in Egypt

It is another main issue which impact on the travel and tourism sector. Marrakech is the
destination where government is not stable and due to this unrest people feel insecure. In such
places people do not think to go there. Egypt is the destination where political issues are creating
negative situation for tourism business. Merger of lower and upper kingdoms has created a new
country parliament. Due to political unrest civil war type of condition take place in the nation. It
is the main reason that visitors are negative towards this place because they find it unsafe.
Severe weather
it is another issue which affect overall activities of travel and tourism sectors in a
negative way. If weather of place is not favorable, then people will not prefer to visit such
places. On other hand if weather is good then they like to go there frequently.
TASK 2
2.1 Evaluation of current trends influencing changes in travel and tourism sector
Tourism is the great industry which future is bright. There are various kinds of trends
that influencing travel and tourism industry to great extent (Park and et.al, 2014). These are as
following
UK INBOUND Tourism
It is the activity in which people travel from one country to other nation. The main
purpose of such type of traveling is entertainment and gaining money. It helps the government in
raising economic condition of the nation. It also supports in increasing employment rate of the
country. In the year 2015 UK was included in top five inbound tourism markets where people
have spent huge money while traveling. London is considered as key destination for inbound
tourism In 2015 total 18.6 million visitors come to this place and they have spent 11.9 billion.
This has helped and raised revenue of this industry to great extent. In England 15.2 million
international visitors come to this place who has spent approx 7.4 billion amount.

Spiritual tourism
In the recent time people have no time and live a stressful life. It affects their mental
status so travelers want to go to such places where they can feel relax. Such type of tourism is
famous in many locations (Harris and Prideaux, 2017). Thomas Cook is required to offer
consumers holiday for such places where consumers can feel happy This can attract more people
towards the Thomas cook.

Illustration 1: Income from tourism in Egypt
(Source: )
Country Number of tourists
Egypt 80000
Marrakech 480000
Adventure tourism
Youth take more interest in spending time in unique place where they can get nice
experience (Paris, Nyaupane and Teye, 2014). Adventure tourism has developed its own image
and now-a-days younger esters, old people like to go in such adventurous place. That is why
Thomas Cook has to design tour packages in such manner so that it can fulfill need of
consumers and can provide them new experience as well (Koh and Kwok, 2016). Schools
colleges are organizing such type of travel for their students so that learners can get knowledge
and can feel good (Scarles, 2016).
Health tourism
It is another trend of travel and tourism sector which influence the working of this
industry. Increasing stressful life develops more disease in human being. So, people like to go at
such places where they can get meditation facilities and other treatment such as advance yoga

etc. (Harris and Prideaux, 2017). By arranging such type of tour Packages Company can attract
more people ad can make them loyal towards the brand.
Nature tourism
It is another most important current trend of travel and tourism sector. Demand of eco-
tourism is increasing day by day. People like to go to such places where they can enjoy natural
beauty (Scarles, 2016). They less prefer to go to crowded areas and the locations where pollution
is high. By providing tour packages to natural places Thomas Cook can meet with the needs of
the travelers. It can support in making drastic change in this industry. because sales volume of
company can get increased and people will take more interest in such type of tour facilities
Britain's visitor economy facts, 2017.
Rural tourism
It is another type of tourism in which tour operators offer travel to rural areas so that
visitors can look upon the life of villages and their beauties. Such type travels can help in
improving life of rural areas (Wilks, Stephen and Moore, 2013). This can raise business of the
company to great extent.
2.2 Analyses of current trends using techniques and resources
Covered in Poster

TASK 3
3.1 Response by travel and tourism sector on changes
International airline group (IAG) is considered as largest airline group in which 547
aircraft are flying to more than 268 destinations. There are many airlines are included such as
British Airways, Iberia, British Midland International etc. Headquarter of IAG group is in
Waterside building in Harmondsworth, London. Board meeting of all companies that are
included in this group held in headquarter (Park and et.al, 2014).
PEST analyses of international airline group is as following:
 Political factors: Changing regulations and unrest political background impact on the
overall working of British Airways. Increasing interference of government completely
affect the operations of the company. Political factor affect companies to great extent and

due to which growth of the firm get affected. Terrorist attack etc. issues are related to
political factors.
 Economic factors: Changing economic condition helps in increasing income of the
traveler. Now transportation facilities and other infrastructure facilities are available and
people can afford it. Thus, they like to travel through airlines which helps in increasing
their business. Changes in economic condition impact on business unit, in such condition
British airways adopts price skimming policy, it sets its prices in such manner so that no
financial burden occur on the entity. On other hand Iberia adopts competitive pricing
policy that supports in facing economic fluctuation effectively.
 Social factors: taste and preferences of individual affect the operations of airline firms.
British Airways promotes cultural beliefs in order to promote its travel packages. This
supports in attracting new consumers and enhancing their satisfaction level. On other
hand Iberia concentrates on market trends and time to time make changes in its products
and services. It supports in dealing with social factors effectively.
 Technological factors: British Airways has noticed that people like to book their tickets
online because it is time saving for them. By providing them this option they can attract
more customers. If entity does not implement advance technologies in the workplace
then it will not be able to satisfy consumers. British Airways has its own website on
which consumers can book their tickets and they can resolve their quarries. On other
hand Iberia take support of social media to enhance communication with customers. This
helps the firm in attracting new consumers and response to changing scenarios.
 Environment factors: Cited firm is required to protect environment and must minimize
activities which harm the surrounding.
 Legal factors: It is another factor which impact on British Airways to great extent. If
government makes changes in visa policy or fuel regulations, then operations of the
company will get affected.
3.2 Strategies to give response to travel and tourism industry

SWOT of British Airways
Strength
 Strong brand reputation
 Sufficient financial resources
 Skilled employees
 International operations High digital services and effective use
of IT
Opportunities
 Positive government laws
 Improving relationship with union
 Changes in fuel prices Internationale expansion
Weakness
 Cost of management
 Declining profitability from last two
years
 Labor strike
 Over dependence on UK market
 Low return on capital invested
Threats
 Competition
 Economic changes
 Fuel price changes
 Terrorist attacks
By going through SWOT analyses of British airways it is analyzed that company has
skilled employees and adequate financial resources. That are strong points of the firm. Its strong
brand image support the firm in gaining success and attracting more consumers towards the
brand. It uses advance digital technologies that helps the entity in providing quality services to
consumers. On other hand cited firm has weakness that it is over depended on UK market.
Employees are going on strike thus, sales of the firm is getting down from last two years.
Furthermore, British Airways can get opportunity by positive government laws, legislation of
fuel prices and air transportation law support the firm in flying into new location as well. It has
build up strong relationship with union that can be better in reducing strikes and retaining skilled
employees in workplace for longer duration. But changing economic conditions, terrorist attack
are the main threats on the firm because due to which it fails to run its business smoothly.
SWOT of Iberia
Strength Weaknesses

 2nd biggest alliance Strong market share
Opportunities
 Vietnam airline Growth in Asian market
 Oceania and middle east operations
 Loss of 19.5 billion in last 10 years
Threats
 Economic changes
 Loss of continental airlines
By going through SWOT analyses of Iberia it is analyzed that company is the 2nd biggest
alliance and has strong market share. This strong points of entity support the firm in expanding
its business and entering into new market easily. But its middle east operations are poor and over
the past few years it has faced loss of 19.5 billion which has made its financial position weaker.
Furthermore, it has opportunity to grow in the Asian market this can support in expanding
business and enhancing its profitability to great extent. But economic changes and loss of
continental airlines are the main threats that can affect its growth.
Strategies
British Airways and Iberia both are most trusted organizations, they make strategies on
the bases of their vision and goal (Paris, Nyaupane and Teye, 2014). While making strategies
top management look at the external factors that impact on business environment, Both these
companies look at the customer satisfaction on first priority. British Airways adopts feedback
strategy. It takes feedback from management and customers (Wilks, Stephen and Moore, 2013).
For getting feedback from consumers it takes support of social sites on where people can give
their reviews on other and it conducts interview with managerial employees to take their
feedback. It tries to analyses lop fall in the policy and re design policy so that consumes can get
satisfactory services and skilled employees can retain in the organization for longer duration.
British airways is entered into e-commerce, where it offers e-ticketing facilities to consumers
and track their status as well (Harris and Prideaux, 2017).
Iberia adopt technology up gradation strategies in which it takes support of social
networking sites to enhance communication with customers (Scarles, 2016).. It gets view of the
travelers and accordingly it offers them attractive products and services as per their

requirements. It helps in enhancing satisfaction level of customers and retaining them in the
workplace for longer duration. Apart from this, it reduces prices by utilizing resources well This
can help in provide quality travel packages to consumers at affordable rates (Impact of Natural
Disasters on the Tourism Industry, 2015).
3.3 Justification of strategy
Planning effective strategies are beneficial for the organization because it helps in
improving profit of the organization to great extent (Koh and Kwok, 2016). British airways
adopts feedback strategy. This strategy is beneficial for the company in retaining skilled
employees in the workplace for longer duration and attracting new consumers by offering them
products as per their requirement. It is beneficial for the future of British airways because by this
way profit margin of company can be improved significantly. Feedback system will help the
firm in utilizing resources well and building positive image of the company in the mind of
consumers (Wilks, Stephen and Moore, 2013).
Technology up gradation strategy would be beneficial for Iberia because by this way it
would be able to make effective communication with consumers and attract them towards the
brand to great extent. Technology will promote the Iberia across the world. That would help in
making connection with clients easily. Use of advance technology will also assist in reducing
errs and improving efficiency level of operation. By this way it will be able to provide quality
services to travelers and will help in raising their satisfaction level (Paris, Nyaupane and Teye,
2014).
TASK 4
4.1 Impact of changes in travel and tourism sector
It is essential for the Thomas Cook and Myla travel that to respond to each change
effectively this can help organization in sustaining in the market for longer duration.
Myla group is considering the following options
Merger and Acquisition
Myla is the private organization which offers travel services to visitors on behalf of suppliers.
Myla is takeover by Swedish Pharma. Due to this merger company's operation have got changed

to great extent. In such condition it has started providing quality travel services to travelers
which is offered by suppliers. It has impact positively on travel and tourism sector. Because it
has available of sufficient resources which has helped the travel agencies in proviidng quality
services to them.
Acquisition by Thomas Cook
In recent time the Thomas Cook group have acquired two main travel business
cooperative group that is Travel business of Cooperative group along with Midland Co operative
society that had help firm in expansion of its business. Thomas cook group has made many big
acquisition in last year which has helped firm in maximizing their profit and earning leading
position in the market of Tourism.
Consortia
Consortium is another way through which firm can make necessary changes in order to
earn maximize their profit. It is a Latin word which means partnership or association. It's a
partnership between to or more individual or organization which come together with the to
participate in common activity and pooling their resources together so that they can achieve their
common goal. By adapting Consortia in their working Myla will have continuous flow of
financial resources which will help firm in carrying out its various activity in efficient manner.
Other Options
Changing conditions affects operation and functioning of the Thomas cook and Myla
travel to great extent. If there is strong economic condition, then it will raise income of
population. Thus, people will take interest in travelling and going on holidays (Harris and
Prideaux, 2017). It can raise revenues of entity significantly. In the change condition,
corporation must make changes in its functioning so that it can provide necessary facilities to
travelers. In the absence of this, cited firm fail to survive in the market for long duration. If
changes are occurring in the travel and tourism sector continuously then it can impact on
business unit to great extent. In such condition firm has to merge with big companies so that it
can earn profit. Mergers and acquisition is the common impact of changes because operations

and functioning can only get changed when firms get merged or acquired by other firms. This
will help tour operators in meeting with its objectives (Koh and Kwok, 2016).
Thomas cook and Myla travel have to modify its produces this can help in attracting
people. It will support in meeting needs of customers and will be able to satisfy them.
Changes impact on the employment level as well. Travel and tourism sector has
contributed well in the economic development of nation. It is raised economic opportunities in
the nation and has hired many candidates in the nation. Changes in travel and tourism sector
impact on employment level as well. If companies are feeling difficult to run their business so
they have to terminate some of the staff in order to maintain the cost. Even these entities do not
hire new applicant in the organization (Scarles, 2016). That impacts negatively on the income
sources of the people. On other hand if changes are positive and company will require new staff
so that it can provide extremely well services to its mass number of customers. For that Thomas
cook and Myla travel employed many people those who have necessary skills and experience of
this field. Thus, changes in travel and tourism industry impact on the employment level which
direct affects economy of the nation to great extent (Wilks, Stephen and Moore, 2013).
Changes always bring modifications in the business units. It impacts on products and
services of the company as well. If entity wants to sustain in such changing condition then it is
essential to make modification in products so that it can attract large number of travelers towards
the brand (Harris and Prideaux, 2017). If there is inflation, then corporation will have to
decrease prices of its tour packages so that people can afford it. This Supports in satisfying
consumers and retaining them in the brand for longer duration.
4.2 Consequences of business failing to respond to market changes
Changes are part of life; each organization is required to response properly to market
changes. It can help the entity in sustaining in the market for longer duration (Koh and Kwok,
2016). But if firms get failed to respond to market changes then it can create consequences in the
business unit. There are some consequences of failing to respond to market changes:
Reducing sales
If there is high inflation of and advancement in technology, then it is essential for
Thomas Cook and Myla travel that to make necessary changes in its business operations.

Otherwise sales of the company will be decreased to great extent. Changes in economy
condition make changes in the income of the person (Wilks, Stephen and Moore, 2013). After
that individual does not take much interest in the holiday thus; company may face consequences
of reducing sales. This will affect profitability of the corporation and entity will get failed to
sustain in the market for longer duration.
Reducing Profit margin
It is another consequence face by Thomas Cook and Myla travel in the absence of
respond to market changes. In the inflation changes in fuel cost condition companies have to
make immediate change in its operations (Koh and Kwok, 2016). This can help in making
effective control over cost. But if firms fail to respond properly then it has to merge with other
entities. Profit margin of the corporation can get down to great extent. This create problem for
the organization and it can fail to sustain in the market for longer duration.
Changes in attitude of customers, suppliers
It is another consequence can be faced by the Thomas Cook and Myla travel if it fails to
respond to market changes effectively (Park and et.al, 2014). Whenever any changes occur, and
entity run its business with earlier norms then customers can get negative towards the brand. For
example, if there is inflation and entity fail to provide tour packages at lower cost. In such
condition consumers will not prefer to take services of the company and they will move to other
brands. This can affect brand image of the organization to great extent. On other hand if there is
changes in fuel prices then it is required to make changes in operations. Otherwise suppliers of
the entity will become negative and their attitude can get changed towards the brand (Paris,
Nyaupane and Teye, 2014). In such condition company will lose its reputation and it will fail to
sustain in the market for longer duration. Customers are life blood of the company and if they
are not satisfied then it can damage image or the entity and its financial capacity as well.
Changing attitude of customers and suppliers can create negative situation for corporation and it
will fail to work effectively.
CONCLUSION
Study can be summarized as tourism industry is working well and contributing well in
the economic development of nation. It has become essential contributor of development. Tour

companies are familiar with the fact that changes can take place any time and they have to face
huge issues. Issues may occur in the tourism industry are such as advancement in technology,
changes in economy condition, increase fuel cost. These issues not only affect the organization
but also impact on related other industries such as airline, transportation, hotels etc. In such
condition, it is essential for the tour firms that to respond to these changes effectively. In the
absence of this, firms may lose their brand image and changes fail to sustain in the market for
longer duration.

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