Managing Change in Tourism and Travel Sectors

The provided report discusses the importance of responding to changes in market trends and customer preferences for organizations operating in the tourism and travel sectors. It highlights the negative consequences of not adapting to these changes, including loss of business and a negative impact on product image. The report uses analysis tools such as PEST, SWOT, and marketing mix strategies to examine the effects of these changes on the tourism industry. It concludes by emphasizing the need for organizations to be proactive in managing change to remain competitive and successful.

CONTEMPORARY
TOURISM
ISSUES
IN
TRAVEL
&
TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current issues which are driving changes in travel and tourism...........................................1
1.2 Different current issues using appropriate methods and resources.......................................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travel and tourism sector...........................................3
2.2 Current trends using appropriate techniques and resources in travel and tourism................4
TASK 3............................................................................................................................................5
3.1 Analysis the way travel and tourism could respond to change.............................................5
3.2 Develop strategies on travel and tourism for respond to change.........................................6
3.3 Justification of strategies for how travel and tourism business could response to change...7
TASK 4............................................................................................................................................7
4.1 Analysing on impacts of issues and trends that drive changes in travel and tourism sector.7
4.2 Consequences of businesses failing in response to market change.......................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Tourism business is growing nowadays as many people love travel the whole world. It
helps the government of a nation to generate funds and revenues. This can be both domestic and
international based on the choices of destination where visitors want to go. It is creating many
job opportunities for unemployed people. Titan Travel is a multinational travel company in
Europe, having lot of travel agencies, hotels, airlines, cruise, ships etc., they provide different
travel schemes to their customers (Saraniemi and Kylänen, 2011). As travel and tourism is
growing in a rapid speed problems related to them are also increasing. Through this report, it can
be evaluated that travel and tourism has both negative and positive impact whether related to
environment or overcrowding. Current issues faced by different sectors are mentioned in this
assignment. How this department is responding to all the changes. Identify to impacts and take
possible steps to eliminate them.
TASK 1
1.1 Current issues which are driving changes in travel and tourism
Travel and tourism has expanded and transformed in last 10 years which has brought
some changes that may be positive sand negative. Certain issues and challenges has also arise in
this period of time (Apostolopoulos, Leivadi and Yiannakis, 2013). There are ample number of
complexities which are faced by this department so it requires lot of coordination between
employees working there. Some of the issues are mentioned below:
Human resources: Human resource is very important in any department because they
provide with best resources to an organisation. This includes service sectors like banking, airline,
retail, stakeholders etc. they think of better outcomes through which they can gain maximum
profits.
Overcrowding: Overcrowding is one of the reason why travellers avoid going in such
places where there are maximum number of visitors.
State of economy: Visitors should checkout economic conditions of a particular area
whether it is rising or diminishing. This will have an effect on travellers expenditure which they
have planned.
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Rising cost of fuel: This kind of industry totally depends upon fuels and gasoline. Titan
Travel company should make sure that there is ample fuel before starting any trips. This will be
very beneficial for customers because this will led them not to pay extra charges for excess days.
Taxation: From government's point of view this assist them in increasing their revenues.
This highly have a great impact on the business established in a particular nation. Several taxes
are imposed regulatory bodies like: transport tax, aviation tax, service tax, luxury tax etc. thus, it
depends upon in which area they are working (Sharpley and Jepson, 2011).
Political Environment: It can be said as one of the essential element which can have an
impact on travellers. This can be positive or negative in nature. For example: if conditions of an
area is not appropriate than it can be a big disadvantage for the country as there will be less
number of visitors and vice versa.
Therefore, all these issues should be kept in mind so that travel and tourism industry can
conduct their work smoothly. Traveller must look out all these circumstances before going to a
trip. This will help them having a good vacations (Current issues which are driving changes in
travel and tourism, 2016).
1.2 Different current issues using appropriate methods and resources
There are various problems which are facing by Middle east and North Africa which is
damaging their natural beauty, construction buildings that attracts maximum number of visitors.
According to national news channels in last few years there has been increase in terrorist attack.
This has raised a sense of fear among visitors who are visiting their country (Weaver, 2014).
Hence, there has been a limited amount of travellers in any particular nation where conditions are
not appropriate.
Terrorism: This is one of the major issues which are facing by all the nations throughout
the country. It has threatened this sector and nation as well because it affects the economy which
have a direct impact on stock exchange market. ISIS have a great impact on the country where
they have invaded and places which are most affected are Iran, Syria, Iraq and cities around
them. All these movement hamper the government of an nation (Tsiotsou and Goldsmith, 2012).
This is creating a bad impact on people as one religion is targeted i.e. Muslims.
Natural calamities: Climate changes and natural disaster can effect a particular tourist
spots. It hamper the natural beauty of some places which leads to economic crisis. For example:
Heatwave that has hit the coastal area of UK in the year 2013, because of drowning around 760
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people died and government have to spend approximately millions of Euros for reconstructing
them.
Therefore, Government of Middle East and North Africa should take certain major steps
so that they can eliminate terrorism like: illegal migrations should be avoided so that they can
minimise the chances of terrorist attack (Neuhofer, Buhalis and Ladkin, 2014). Security level
should be raised by using advance tools and techniques which they can implant in their borders.
They can aware all their citizens, if they see any unsuspected person or activities they should
report to police immediately. For natural calamity government must ensure that natural resources
are utilized in limited so that it can be kept for future generations. Visitors should watch news
regarding climate change before planning any trip. They must avoid going to such places where
climatic conditions are not appropriate.
TASK 2
2.1 Current trends influencing change in travel and tourism sector
Medical and health tourism: People visit places where they can treat their health issues.
Certain destinations provide with best therapy at very low cost which is gradually increasing the
business in medical field. Visitors go to these locations to release their stress. This mainly
includes Ayurveda, Yoga, spas etc.
Sports and Adventure tourism: This kind of tourism is boosting where they have best
sports facilities and adventure sports (Hall,2013). It is trending in young people as they are
sporting in nature. It includes activities like trekking, rock climbing etc., because some of the
sports needs licences to perform i.e. sky diving it requires a proper place with skilled person who
actually know about this sport.
Inbound tourism: In this category, person who travel within the boundary of nations are
included. As a result it is increasing the rate of tourist in that particular area where there are lot of
destination to visit.
Outbound tourism: They usually travel outside their country to the places so as to visit
unexplored destinations. This increases the revenues and popularity of other nations as well.
Rural tourism: It mainly attracts those people who are doing researches on any particular
topic. The study is done to improve the quality of rural areas which are backward from other
areas. They get to know about their culture, folk values, crafts etc.
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Natural tourism: This can also be termed as eco - tourism they attract visitors who love s
nature. Tourist visit such places to explore and experience the natural settings.
Therefore, with the change in individuals mind about choosing a correct destinations for
their vacation it is also changing the system (Robinson, Heitmann and Dieke, 2011). Now travel
companies are providing with schemes according to the needs and requirements
2.2 Current trends using appropriate techniques and resources in travel and tourism
With the changing scenario travel and tourism is also advancing. They are using
appropriate tools and techniques which is enhancing their business in forward direction. Some of
the challenges they have to face on a regular basis are providing growth to local communities
without damaging or making harm to their cultures and surroundings. Although it is not easy to
determine all the hardships which travel agencies faces. Hence, government are using different
trends tools and techniques like providing best offers to their tourist who are visiting their places.
Visitors do a clear study of markets which are available and most favours by them.
To know the recent trends visitors should collect information which are both qualitative
and quantitative nature. This will increase the outbound tourism through out the world. Choices
of destinations may differ from person to person some may choose adventures sport fro their
vacations or other may select places where they can get calm their mind. Travellers can check
out all the schemes and offers provided by any travel agencies through social media or internet.
They can also get all this information from secondary sources like newspapers, magazines. This
will assist them to know changing trends and give an option about what destination will be
suitable for their holidays. Some changing trends are:-
Low cost airlines: A company is always focusing on the way to maximize efficiency in
product or services by minimising its costs. This will develop low cost airlines specially in UK.
Booking system: Implementation of modern technologies impose changes in current
trends of booking system for tourism services. Booking through online system is an easier way to
book a ticket. Tour operators of such companies are approaching this type of trends in order to
gain efficiency in business.
Epidemics- Tourists or travellers concern on epidemics and its impact on destination
before to visit a place. Thus, Government of UK, has made some laws for health and safety of
visitors.
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TASK 3
3.1 Analysis the way travel and tourism could respond to change
Whitbread Plc is the UK's largest hotel having its own restaurant and coffee shop with
50,000 employees working here. Today, this company is doing very well in business and has
expanded over in large area of UK. Since, this firm operates over in two division Premier Inn &
Restaurants and Costa, so changes in market policies could impact over it business. Thus, on
considering these changes within market company, this firm has used many strategies to bring
modification in its policies which could compliments the same. To understand how it could
respond on these changes it is better to analyse SWOT/ PEST as internal and external factors
which are discussing in below:-
SWOT
Strength: The largest division of this firm is Premier Inn which consists 750 hotels
having 65,000 rooms. Its Costa Coffee chain has 3,401 shops in 31 countries worldwide which is
the second largest international shop after Starbucks. Therefore, its larger coverage area,
maximum customer base and its brand image in market are consider as its strength which proves
better from other companies.
Weakness: Main weakness of this group is that it has failed in reducing unit cost as well
as in getting higher return on invested capital. Its diverse portfolio and potential risk in financing
cost also shows its weaknesses.
Opportunities: This time company has opportunities to expand its business through
capitalizing the availability of prime high retail space in streets (Weaver, 2011). It can proves
much better by maximizing its rates of occupancy in hotels.
Threat: Supply Chain, decline in economy, impact of consumer's demand, etc. are some
major threats for its business. This firm also needs to look forward his competitors which are
increasing day by day.
PEST
Political: Hotel sectors have to follow all rules and regulations to run their business
smoothly as these are so much susceptible of terrorist attacks. Therefore, these laws are made by
government to provide safety for its customers (Page, 2014).
Economical: Its business has so much effected by fluctuation of foreign exchange and economic
rates of country.
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Social: It includes factors like customers' choices, demand, changes in their lifestyle and
preferences which can affect business of any organisation including this hospitality sector also.
Technological: To compete with other companies of same field, it is necessary to adopt
all latest technologies like online booking by this company.
3.2 Develop strategies on travel and tourism for respond to change
Travel and tourism sectors need to develop some strategies by which they could be
responsive to present changes in market. The main objective of Whitbread Company is to
provide hospitality and leisure that makes its customers happy when they visit at their place
(Strategies used by organisations to respond to change. 2017). The strategies used by its two
divisions are describing as below:-
Marketing Mix Strategy of Premier Inn & Restaurants:
Product: This division of Whitbread has offered wide range of products for every type of
its customers while visiting which includes travelling, luxury services and hygienic as well as
organic food.
Price: It has served its every kind of services to customers at an affordable price.
Place: This company has its deposition over 590 budget hotels having 42000 rooms,
which shows its effective competitive advantage for its rivals.
Promotion: It has promoted high quality brochure to all its customers who are staying at
their hotels. Premier Inn promises a 'Good Night Guaranteed” a unique no quibble money back
which encompasses all elements of a customer's stay starting from when they checking in till
leave.
Marketing Mix of Costa Coffee:
Product: This Division of Whitbread offers Coffee as its main product to its customers.
This product has include wide range as hot chocolate, special drinks with ice blended, etc. and
other supplements food also like sandwiches. Thus, Costa Coffee is more interested in pull
strategy rather than to push.
Price: Costa Coffee relies on its commitment to give best coffee taste. In price strategy, it
doesn't believe to minimize or offers at low rate. Its main strategy is to deliver value of its
products to customers.
Place: It has presented with fantastic place in UK with over 1000 stores.
Promotion: Costa Coffee has much lack of presence over in this strategy.
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On examining above strategies, it has been identified that in order to develop effective
response to change, Whitbread has to use in both its division the following strategies:-
Product Development: Developing new product or modifying existing ones are include
as product development. This strategy is made by keeping an eye on customer's needs, choice
and competitors' market share. Using this strategy, Whitbread should launch some more new
products in market which extends its brand. It proves beneficial to adopt when a company's
existing products are saturated with falling revenues and profits.
Market Development: In order to develop and maintain the brand image of its product
in eyes of customers to this firm use this strategy. It is growth strategy which is used to identify
and develop new market segments for existing products.
3.3 Justification of strategies for how travel and tourism business could response to change
Whitbread Plc of company use product and market development strategies including
marketing mix to response for changes. These strategies are use to serve customers with its new
products in an effective way which builds its brand image more stronger than others (Lamsfus
and et. Al., 2013). The range as well as price of its products vary with middle, higher and
premium class customers. Some promotional tools like social media, online marketing etc. used
by this company to develop in market as well. Its affordable and nominal price strategies also
proves effective to serve large number of customers. Some more strategies used in order to build
more effective brand images by this firm are:-
Brand development: Brand strategy includes a plan which encompasses specific, long-
term goals etc. These can be achieved only with evolution of a successful brand. Whitbread used
this because it is directly connected to needs, emotions, demand of customers as well as with
environment of customers.
Product life cycle: It divides marketing of a product in four stages that are introduction,
growth, maturity and decline which are essential in explaining international pattern of trade.
TASK 4
4.1 Analysing on impacts of issues and trends that drive changes in travel and tourism sector
Trailfinders is the largest travel company of the UK, having 29 travel centres over there.
It is offering a wide range of products in market like Holiday Corporate and other air-travel
packages. This company wants to acquire its competitors for business expansion. This time
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Trailfinders needs to focus on response to changes in environment. In order to make its decision
better, a management report has presented below:-.
Impact of trends on customers: Lifestyle of customers- In today's modern world, lifestyle and choices of customer's need
are changing rapidly. So, travel agencies should keep an eye on these changes to modify
its product and services .
 Technology- With advancements of technology, it is essential for tourism sector to keep
updated as customers wants techno savvy and online facilities.
Methods that can be used to expand its business are: Mergers- An organisation can gains more benefits by merging with other companies that
makes them to use availability of resources in an effective way.
 Acquisitions- It includes the process of combining low sectors with big ones in order to
increase market share and coverage area.
4.2 Consequences of businesses failing in response to market change
It is essential for any company to manufacture its products and services on basis of
customer's choice and demand. Since, Tourism sector is totally based on customer orientation so,
it is necessary for them to response on changes. Modification arise for many reasons like for
proactively and reactively. For instance, if an enterprise is seeking benefits such as to reduce
costs, improving production, resolving situations and need to adapt changing circumstances etc.
If they didn't do that, then will face following problems in their businesses as:-
Fail in Profitability: Trailfinders need to response on these changes as it could affect on
its profit sharing and in getting revenues as it fails to increase in sales of product or services.
Negative Image: If products or services offer in market are not relevant to customer's
choice then it will lead negativity of its brand in market. It affects majorly on sales which
increases higher inventory. This will enhance costs and slower-moving items take up valuable
warehouse space. In order to dispose inventories, companies have to offer discounts of
inventories for which they require to track stock.
Therefore, changes are necessary in order to manage optimize risk exposure, minimize
severity of any negative impact and moreover to be successful at the first attempt. It will
maximise value, reducing incidents, disruption as well as by responding to such modifications
align services with business needs.
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CONCLUSION
It has been concluded from above report that organisations need to respond on changes in
market. These changes are included the environment and choice of customers so, if organisations
do not take it seriously then they will suffer loss in businesses as it impacts negatively on images
of their product. The report has also shown the impacts of these changes on trends of tourism and
travel sectors of the UK by using analysis as PEST, SWOT, marketing mix strategies etc.
REFERENCES
Books and Journals
Apostolopoulos, Y., Leivadi, S. and Yiannakis, A. eds., 2013. The sociology of tourism:
theoretical and empirical investigations. (Vol. 1). Routledge.
Hall, C. M., 2013. Wine, food, and tourism marketing. Routledge.
Lamsfus and et. al., 2013. Conceptualizing context in an intelligent mobile environment in travel
and tourism. In nformation and communication technologies in tourism 2013 (pp. 1-11).
Springer, Berlin, Heidelberg.
Neuhofer, B., Buhalis, D. and Ladkin, A., 2014. A typology of technology‐enhanced tourism
experiences. International Journal of Tourism Research. 16(4). pp.340-350.
Page, S.J., 2014. Tourism management. Routledge.
Robinson, P., Heitmann, S. and Dieke, P. U. Eds., 2011. Research themes for tourism. CABI.
Saraniemi, S. and Kylänen, M., 2011. Problematizing the concept of tourism destination: An
analysis of different theoretical approaches. Journal of travel research. 50(2). pp.133-143.
Sharpley, R. and Jepson, D., 2011. Rural tourism: A spiritual experience?. Annals of tourism
research. 38(1). pp.52-71.
Tsiotsou, R. H. and Goldsmith, R. E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Weaver, D., 2011. Can sustainable tourism survive climate change?. Journal of sustainable
Tourism. 19(1). pp.5-15.
Weaver, D.B., 2014. Asymmetrical dialectics of sustainable tourism: Toward enlightened mass
tourism. Journal of Travel Research. 53(2). pp.131-140.
Online
Strategies used by organisations to respond to change. 2017. [Online] Available through
<https://www.locusassignments.com/solution/heritage-cultural-tourism-management-
assignment>
Current issues which are driving changes in travel and tourism. 2016. [Online] Available
through <https://www.locusassignments.com/solution/heritage-and-cultural-tourism-
assignment>
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