Assignment on Changes in Travel and Tourism Sector

Added on -2020-06-06

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CONTEMPORARY ISSUES
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1...........................................................................................................................................31.1 Issues currently driving changes in travel and tourism sector..............................................31.2 Analysis of different issues...................................................................................................5TASK 2...........................................................................................................................................72.1 Evaluation of current trends influencing changes in travel and tourism sector....................72.2 Analyses of current trends using techniques and resources..................................................8TASK 3...........................................................................................................................................93.1 Response by travel and tourism sector on changes...............................................................93.2 Strategies to give response to travel and tourism industry..................................................113.3 Justification of strategy.......................................................................................................12TASK 4.........................................................................................................................................134.1 Impact of changes in travel and tourism sector...................................................................134.2 Consequences of business failing to respond to market changes........................................15CONCLUSION ............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONTourism industry major contributes in the economic development of nation. Changes arecontinuously transforming places and creating issues in this sector. Since long time travel andtourism industry has shown tremendous growth and has earned high profit over the period oftime (Blanke and Chiesa, 2013). At the same time, this sector has faced several challengeswhich has created issues for tour operators. Present report is based on Thomas Cook which is theleading tour operator. Company provides luxurious travel facilities to visitors. Currentassignment will discuss issues that currently drive changes in travel and tourism sector. In thepresent study current trends will be analyzed. Furthermore, study will suggest strategy that canhelp travel companies to give proper response to issues. In addition, impact of issues will beexplained in this report.TASK 11.1 Issues currently driving changes in travel and tourism sectorThere have been significant changes occurred in the last 10 years. There are many issuesand challenges that have been experienced by travel and tourism industry. In order to deal withthese issues it is essential to make effective strategies that can support in resolving long termproblems of travel and tourism industry (Becker, 2016). Technological Advancement and its used in travel and tourismIt is the major factor which has derived changes in the travel and tourism industry mostlyin a positive way. Continuous improvements and innovations in technologies are changing thetravel and tourism sector. The internet applications especially 24/7 online buying and E-ticketingare the main applications widely used by most of the visitors. People book their tickets onlinewhich is quite easy for them and saves their time. If they do not find this option in any locationthen 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 tothese technologies terms and conditions have been changed and travelers find it difficult to go toany place in such hard conditions. That has changed point of view of visitors and they canceltheir 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 inits system so that it can sustain in the market for longer duration (Hudson and Thal, 2013).Source: Google ImagesRising cost of fuelTravel and tourism sector is depended upon prices of fuel to great extent. Recent changein cost of gasoline has impact on entire industry. Due to increasing prices of fuel Thomas cookhas 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 visitorsand individual cancel their plan to go on holiday. That decrease sales volume of the corporationto great extent.TaxationIt is considered as one of the major element that drive changes in travel and tourismsector of Egypt and Marrakech. Due to increase tax rates people are not taking interest inholidays because it is over budget for them. By this way number of tourists are decreasing inboth these places which affects overall revenues of this industry. Travel and tourism industrypay high tax to government as it is major sector which contributes well in economicdevelopment of nation. Increasing tax prices affects its growth and that is why profit of Thomascook 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 issuesbecause in such high taxes it is unable to provide luxurious travel packages at affordable rates.State of economyInflation and deflation are major conditions which not only affects travel and tourismsector but also drive changes in entire nation. If there is inflation then people will not be able tospend much amount in travelling. Thus, business of Thomas cook will be affected which canimpact on its revenues (Jucan and Jucan, 2013). On other hand if there is deflation then also itwill drive changes in travel and tourism sector because it will affect income of the population. Visa feeVisa is the major issue for travelers before going to any place they have to take visa forparticular place. North Africa is facing political unrest situation and Egypt is also facing issue ofterrorism activities. Due to these condition's person who want to go to these places they have topay high visa fees. It increases their financial burden and travel become over budget. Thus, theychange 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 tourismindustry to great extent. 1.2 Analysis of different issuesThere are many issues faced by travel and tourism sector and in order to identify routcause of these problems it is essential for the Thomas cook that to take support of techniques andresources so that such type of issues can be minimized soon (Pastiu and et.al, 2014). There arevarious techniques and resources by which entity can analysis different issues. These are asfollowing:Collection of previous informationIt is considered as one of the most important resource or technique that can be used byThomas 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 thistechnique. Thomas Cook has to observe the market and consumer behavior, this can help inmeasuring 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 inanalyzing the problem of this industry effectively this will help organization in finding strategiesto resolve these issues. Survey and observation are two best resources that can be used toanalysis different issues in the travel and tourism sector.Secondary sources: It is considered as one of the essential tool of research method in whichscholar can take support of already available information such as books, journals, internetarticles, 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 todevelop 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 TurkeySecurity is the main concern for the travelers. Whenever they plan to go to any placethen they think for security and safety first. Egypt is the destination where terrorism activitiesare increasing with the rapid speed. Due to this, people are not taking interest to go in middleEast. 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 terrorismactivities take place. This impact on tourism business of the organization to great extent. Due tohigher terrorism problems travelers do not take interest in coming there. It impacts on overallrevenues of the nation and it fails to generate foreign currency through this industry. Thisviolence impact negatively on tourism sector of the region. Political unrest in Egypt

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