Key Milestones in Development of Travel and Tourism Industry

This presentation discusses the key milestones in the development of the travel and tourism industry and how they have shaped the industry. It explores the factors that have contributed to the growth of the industry and the impact of these milestones on travel and tourism. The presentation also identifies the different elements of the travel and tourism industry and explores how they interrelate to create a tourist experience. It analyzes the role of each key element and how they interact to provide a tourism experience. Additionally, it determines the different factors that affect tourism behavior in generating countries and destinations and explains the models of motivation and how they influence the consumer decision-making process. Finally, it evaluates the link between the key drivers of tourist behavior and the popularity of different tourism destinations and experiences.

Contemporary
Travel and
Tourism Industry

Scenario 1
P1 Discuss key milestones in development of travel and tourism
industry and how they shaped travel and tourism industry
The travel and tourism sector has been emerged in recent time as
one of the major sector of industry due to globalisation, easy mode of
transportation and other significant reasons. Various key mile stones
are been analysed to identify the impact and level of growth seen by
the selected industry.
Some of the major historical developments and key milestones that
are been achieved by travel and tourism industry is as follows:

Year Milestone
1936 Billy Butlin opens first holiday camp
1938 Holiday with Pay act was passed.
1950 First air package holiday is organised by Horizon.
1960 First global distribution system was introduced by
American Airlines.
1969 Development of tourism act was introduced.
1992 EU sets directives on package holidays.
1999 English tourist Board was set up.
2003 English tourism Council and British Tourist Authority
merged to become Visit Britain.

Cont….
All this activities and factors helped in
shaping the effective development of travel
and tourism activities within organisation as
well as a country. The post-World war II
phase i.e. after 1945, has seen a major
growth and development in tourism sector as
it helps the firm to carry out the business
activities and action plans in an effective way
(Smith, 2015).

Some of the factors that helped in shaping up
the travel and tourism sector is as follows:
• Increase in Air based transportation: In the post-World war II era, the airlines saw
an immense growth and development of Air based transportation that catalysed the
rise of travel and tourism sector.
• Introduction of holiday camps: The introduction of concept of holiday camps that
included the customers from all age groups. The affordability and providing of a
good range of services at a cheaper cost helped in growth of such tourism services
(Higham and et.al., 2016).
• Growth of package based tours: The development of cheaper, affordable and all
inclusive tour packages will help the firm to have a good management of business
operations and action plans that will help in better rise of travel and tourism services.

P2 Identify different elements of travel and tourism industry and
explore how they interrelate to create tourist experience
In a travel and tourism industry, various elements
or components are been taken in consideration,
that will lead to a significant growth and
development of travel and tourism services.
These components will help the firm to carry out
the tourism business operations and action plans
in an effective way. This will not only initiate the
travel and tourism services within the firm.

Different components or elements of travel
and tourism industry are as follows:
• Travel Agencies: They act as an intermediate between the service provider and the consumer. They
comprises of a travel agent, who look after the needs and requirements of travellers including food,
accommodation transportation etc.
• Online travel Agents (OTA’s): With the introduction of internet in the travel and tourism services,
OTA’s have emerged as a major service provider. They include a website or a holiday portal that help
the firm to provide the services related to travelling and tourism. It has gained the popularity due to its
ease of use, fast speed and all inclusive services that are been offered.
• Tour operators: This involve certain companies which organises a tour or its component. They work
with hotels, transporters and other travel and tourism service providers. Also they provide the better
costing as compared to individual purchasing. This involves inbound (those who provide tour
services within a country) and outbound (Those who provide services on international level).
• Destination marketing organisation (DTO): this involves the national tourism boards, provincial
offices and other conventions. Their main aim is to gain a good tourist base at a destination and
market the services provided (Bilgihan and et.al., 2016).

M1 Analyse the discrete role of each key element of the travel and tourism industry
and how the different elements interact to provide a tourism experience
Each and every key element of travel and tourism industry will play a very vital and specific task that will help
the firm to provide best tourism services and experience to its customers. The roles played by elements of
travel and tourism industry are:
• Travel Agencies: As they act as the intermediate between the customers or tourists and service providers,
they will look after to provide proper services and action plans to give the proper services to a tourist. The
travel agents will provide suitable tour plan to customer as per his/her needs (Seyfi and Hall, 2018).
• Online travel Agents (OTA’s): They are the online version of travel agents and will provide the similar set
of services, through the means of internet. The customer can select their destinations, book their tickets and
have other facilities through the internet. It helps to save time and effort of a traveller.
• Tour operators: They are the major bodies who will organise the tours for their customers to provide them
a better tourism experience. Their services are usually all inclusive with food, transportation and
accommodation facilities. They are the major service providers and hence plays a very important part
(Mason, 2015).
• Destination marketing organisation (DTO): As they are the tourism boards, they will provide the
necessary support to other elements to carry out their operations in an effective way.

D1 Critically analyse the interrelationship between different elements of travel and
tourism industry and demonstrate how weakness in any one element can impact
overall tourist experience
The different components of the travel and tourism
sector are deeply interrelated as they will help in
effective providing and running of tourism services.
However, weakness of any of the component can
impact the activities of overall system. For example, if
travel agents fails to communicate the bookings of a
tourist to hotel or tour operator, it can lead to severe
consequences and may affect tourism experience.

P3 Determine different factors that affect tourism behaviour generating countries and
destinations
The travel and tourism at a destination location is deeply impacted by many
factors that prevails in the sector (Law and et.al., 2015). They not only
influence a tourist experience, but may also lay an impact on the running of
their respective businesses at a country or tourist location.
Some of the major factors that influence the tourism behaviour are as follows:
• Personal budget: This is the major factor that create a hindrance for a
tourist or a person to re think about going on a tour. The personal financial
constraints will lead the individual to cancel its plan of travelling.

Cont….
• Internet and social media: The emerging popularity of internet and social media has
been an influencing factor for a tourist. The ratings and feedbacks received by a location
or a tourist destination. This will help the individual to plan for a tour and help in its
effective execution (Cain, Busser, and Baloglu, 2016).
• Global economy: This has been the major factor that will impact the business operations
and action plans of a tourist as well as the service provider in a suitable manner. The
change in currency rates is the major issue that will lay its impact on generating a tourist
behaviour for a country or destination.
• Other factors: Other issues like social political factors, terrorism and cultural constraints
will also play a crucial role in shaping up the tourism behaviour of an organisation. These
factors will impact the overall policies and thus will lead to the setting up of goals and
action plans which will lead to development of an effective tourism plan (Skubal, N., 2017).

P4 Explain models of motivation and how they influence the consumer decision
making process
Various models of motivations involving the theories like Maslow’s hierarchy of needs,
Hertzberg’s two factor model etc. will impact the overall setting up of a tourism plan and
setting up of a tour plan. The destination that will meet this theories or constraints will lead
to have a good tourism rate at a destination (Sigala, 2017). This will also help an
organisation to handle the business operations and activities.
It will help them to decide the tourist location that they want to visit by analysing the
various feedbacks and reviews that are been received by the destination. Other than this,
they will look after that the location, country or destination meets their requirements or
operations. Apart from this, the physical, psychological and emotional requirements of a
tourist destination will be evaluated to finalize the deciding of a tourist plan (Vellas, 2016).

M2 Assess the factors underpinning tourist behaviour and their impact on decision
making process
The factors like budget, global economy, reviews of a destination on
social media and other major influencing issues like terrorism or
social political factors can impact the persons tourist behaviour and
are required to be taken in consideration to mitigate the impact on
their decision making process. This will lead an individual to opt or
drop his/her travelling plan, impacting business of various firms,
working in this sector.

D2 Critically evaluate link between key drivers of tourist behaviour and popularity of
different tourism destinations and experiences
Various key driving factors of tourist behaviour and popularity of
different tourism destinations and experiences are required to be
taken in consideration for identifying their impact on tourist
behaviours (Baker, 2014). The factors like global economy, budgeting
etc. will impact the tourist flow to a major extent and the country or
destination meeting all this key driving factors effectively will see a
good number of tourist base and gaining of popularity.

References
• Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting disintermediation
from the perspectives of hotels and travel agencies. International Journal of Contemporary
Hospitality Management. 27(3). pp.431-452.
• Mason, P., 2015. Tourism impacts, planning and management. Routledge.
• Seyfi, S. and Hall, C.M. eds., 2018. Tourism in Iran: Challenges, development and issues.
Routledge.
• Bilgihan, A.and et.al., 2016. Consumer perception of knowledge-sharing in travel-related online
social networks. Tourism Management. 52. pp.287-296.
• Higham, J and et.al., 2016. Climate change, tourist air travel and radical emissions
reduction. Journal of Cleaner Production. 111. pp.336-347.
• Smith, M.K., 2015. Issues in cultural tourism studies. Routledge.