TUI Group's Impact on Tourism

This assignment focuses on examining strategies that TUI Group can implement to minimize its negative impact on tourism. It emphasizes the importance of reducing environmental damage and promoting sustainable tourism practices. The assignment encourages exploring various approaches, such as offering discounts, educating local communities, and utilizing revenues for infrastructure improvements.

TRAVEL AND
TOURISM SECTOR

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical development in the travel and tourism sector ................................................3
1.2 Structures of travel and tourism sector .................................................................................7
TASK 2..........................................................................................................................................10
2.1 Functions of government, government sponsored bodies and international agencies in
travel and tourism .....................................................................................................................10
2.2 Impact of national and local policies influence on the success of travel and tourism sector
....................................................................................................................................................11
2.3 Implication of political changes on the travel and tourism sector ......................................12
TASK 3..........................................................................................................................................13
3.1 Factors that gives impact on the tourism demand ...............................................................13
3.2 Supply change at TUI group to meet the effect of demand ................................................14
TASK 4..........................................................................................................................................15
4.1 Main positive and negative economic. Environmental and social in sector pact of travel
and tourism sector with reference to TUI group business. .......................................................15
4.2 Strategies that can be used to minimize the negative impact on TUI group business. .......17
CONCLUSION .............................................................................................................................17
2

INTRODUCTION
Travel and tourism sector offers long term growth and success opportunities for
organizations that are working in this sector. Present report is based on TUI which is a leading
tourism destination of UK and offers superior quality services for its clients. The report describes
about key historical developments in the travel and tourism sector. Along with this structure of
travel and tourism sector. Moreover, Functions of government, government sponsored bodies
and international agencies has been described.
TASK 1
1.1 Key historical development in the travel and tourism sector
Travel and tourism industry has seen many changes and it has lead towards creating
major developments in travels and tourism industry. Tourism sector is playing a pivot role in
developing the economic growth of nation and it is also supporting towards growth and
development of this industry. In ancient times people used to visit from one place to another in
search of food, employment and merchandising purpose. After industrialization individuals
started moving in search of finding new market areas so that products and services that are made
by the company can be sold.
Globalization and advancements in technology has helped for providing effective
medium to people so that they can explore new adventurous places and visit travel destinations
without facing much difficulty. Advancements in airline and rail industry has helped for
attracting visitors for selling products and services that are offered by TUI group. Along with this
post industrial revolutions has supported in providing better market opportunities to people so
that they can visit from one place to another. Freedom of movement also has supported for
providing medium to people so that they can visit from one place to another. Post war factors and
some other elements also gives impact on the overall performance of the travel industry.
Major factors that have supported for growth and development of this sector includes
technology, time, money, infrastructure, social conditions. All the factors lead towards creating
development of tourism industry. Along with this sustainable growth and future development of
this sector also has become possible due to the advancements happening in technical sector.
3

Internet has provided an effective medium for people to book services and tour packages and it
has helped for providing better job opportunities for people.
In modern era people are giving preferences for visiting places for entertainment and
leisure purpose and business is one more reason for which people visit from one place to another.
In addition, that people also visit different places for identifying different trade and business
opportunities. Nowadays importance is also given for going to a different place for higher
education purpose. Industrial revolution and globalization has given impact on the travel and
tourism activities that are performed in this sector. This industry is contributing towards
development of nation and revenues provided by this sector aids in making development of the
nation.
4

HISTORICAL DEVELOPMENT OF TOURISM
SECTOR
Globalization and advancements in technology
has helped for providing effective medium to
people so that they can explore new
adventurous places and visit travel destinations
without facing much difficulty. Advancements
in airline and rail industry has helped for
attracting visitors for selling products and
services that are offered by TUI group.
Major factors that have supported for growth
and development of this sector includes
technology, time, money, infrastructure, social
conditions. All the factors lead towards
creating development of tourism industry.
Along with this sustainable growth and future
development of this sector also has become
possible due to the advancements happening in
technical sector.
In modern era people are giving preferences
for visiting places for entertainment and leisure
purpose and business is one more reason for
which people visit from one place to another.
In addition, that people also visit different
places for identifying different trade and
5

business opportunities.
1.2 Structures of travel and tourism sector
There are large number of elements that combine together for designing the structure of
travel and tourism sector. Various elements that combine together includes tourism services that
are provided to people. There are many companies that are providing tourism services to people
and it is helping for enhancing their profitability and financial revenues. Travel service provider
organizations offer attractive tour packages to people and it helps them to earn financial revenue
and profitability. Different elements that combine together for forming structure of the travel
industry includes :-
Tour operators :- Different tourism organizations are working in this industry and they offer
attractive tour packages and services to people. TUI is a travel service provider organization that
offers attractive tour packages for its business consumers. Attractive discounts and offers are
given to visitors so that they can be attracted towards purchasing services they are offered by the
organization.
Accommodations :- Hospitality industry offers accommodation services to people and it helps
them to rendering better amenities and facilities. Along with this food and gourmet services are
also offered to visitors and it aids in meeting the requirement and needs of visitors.
Regulatory bodies :- Government and other regulatory bodied form norms and policies that are
essential to be followed for all the organizations and people that are working in this sector. It
support for controlling all the activities that are performed in the travel industry.
Tourism agencies :- Tourism agencies offer different services to visitors that aids them to explore
different places. It helps for meeting the needs and requirement of people. Along with this
transportation services should be provided to people so that they can visit new places without
facing much difficulties.
Conferences and exhibition organisers :- Nowadays organizing seminars and conferences have
become a vital part of travel and tourism services business and it has helped for enhancing
revenues and profitability of this industry. Along with this organizing conferences and seminars
requires a strategic approach so that more effective policies and rules can be formed for
performing travel activities in this sector.
6

STRUCTURE OF TRAVEL AND TOURISM
SECTOR
Tour operators :- Different tourism
organizations are working in this industry and
they offer attractive tour packages and services
to people. TUI is a travel service provider
organization that offers attractive tour
packages for its business consumers. Attractive
discounts and offers are given to visitors so
that they can be attracted towards purchasing
services they are offered by the organization.
Accommodations :- Hospitality industry offers
accommodation services to people and it helps
them to rendering better amenities and
facilities. Along with this food and gourmet
services are also offered to visitors and it aids
in meeting the requirement and needs of
visitors.
Regulatory bodies :- Government and other
regulatory bodied form norms and policies that
are essential to be followed for all the
organizations and people that are working in
this sector. It support for controlling all the
activities that are performed in the travel
industry.
Tourism agencies :- Tourism agencies offer
different services to visitors that aids them to
explore different places. It helps for meeting
the needs and requirement of people. Along
with this transportation services should be
provided to people so that they can visit new
places without facing much difficulties.
7

TASK 2
2.1 Functions of government, government sponsored bodies and international agencies in travel
and tourism
Functions of government, government sponsored bodies and international agencies in
travel and tourism UK
The government of UK plays an important role in tourism sector. Usually the structure of
tourism depends on the factors like attraction, transport, tour operator , travel agent, tourism
development and much more, some time certain government policies twist the game completely.
Their are certain impact of policies that may affect the company TUI:
Direct impact of government policies : As tourism is considered as one of the biggest
industry in UK and it helps the most of the population to get jobs and wealth.
Therefore to promote this industry government started various campaigns in
order to promote the UK tourism and inspire lots of people to visit UK.
Indirect impact of government policies : As the government started various
campaigns which inspire the private sector to invest into this sector and as the
UK has one of the biggest tourism industry so the huge profit is generated by the
people.
Economic policies: Tours and travels is considered as one of the most important
industry across the world and its role is very special in the economic
contribution for the society. Its impact is direct, indirect, induced. If we discuss
about the direct impact it improves transportation facilities, accommodation
facilities, entertainment facilities and much more which are used to improve the
living standard of the people. If we discuss the indirect effect in that case Tours
and Travels investments by the government and the private sector to, purchase
from suppliers also get increases so this will also increase the economic
condition of the country.
8

Political Changes: As the politics and tourism does not share any special or strong
relation therefore if any political changes takes place it cannot affect the tourism
sector as such. For any country the tourism sector is considered as the source that
can be used to improve the culture, economy. In short tourism not only helps any
country to provide economical support but also give political science, introduce
nee culture into the society. Increases the knowledge.
Planning to minimize the negative effect of tourism:
1. Increase in traffic and pollution: As the tourism and tourist get increases the traffic congestion
will start increases due to which short distance also require more time due to which huge westage
of fuel and time takes place. In order to stop such wastage we should fix certain route that can
only be use by the tourist to travel from one place to another but outside the city and flyover type
concept should be implemented in more numbers.
2. Expensive local goods : Due to this local goods become expensive because tourists will pay
more for the same goods where local person cannot . Therefore to stop such kind of purchasing
government should make the fixed price so that it will remain affordable for both local person
and tourist.
3. Jobs will remain seasonal : Due to this people will not have any fixed job it will remain
seasonal. Therefore people will have job for few months during the traveling period and after
that they will became jobless. To overcome such problem government should introduce certain
job related schemes so that they can focus on their tourist and after that period they ca get for
their survival.
2.2 Impact of national and local policies influence on the success of travel and tourism sector
National and local policies affects the success of travel and tourism sector and due to that
overall growth of the travel sector gets affected.
National tourism policies :- Government of UK has formed Tourism development plan 2016 so
that improvements can be made in the existing travel activities that are performed in the nation.
State is making efforts for improving the infrastructure and developing the travel sites so that
9

number of visitors in the country can be enhanced. Along with this Tourism policy 2011 has also
been formed by the government in which major focus has been given for enhancing the travel
activities in the country. These policies are helping for attracting Chinese visitors in the country
and visa norms also have been modified by the government so that more number of Chineses
people can explore the travel sites of UK.
Local tourism policies :- These policies are formed by local regulatory bodies so that tourism
activities in the nation can be controlled. Along with this city and country council are responsible
for making policies and norms so that tourism activities can be carried out effectively. Under
these policies action plans are formed for improving the attractiveness and infrastructure of
theatres, parks, gardens and outdoor activities. These policies supports for regulating the
functioning of travel and tourism sector. Proper monitoring of travel sector becomes possible and
due to that impact is observed on working of the travel industry. It becomes easier to carry out
the operations of tourism industry and long term impact are observed due to this.
10

11

12

13

14

15

16

17

18

19

20

2.3 Implication of political changes on the travel and tourism sector
Political changes gives impact on the overall performance of the travel sector and due to
that working of this industry gets affected (Getz, 2013). Policies and rules that are made by
government of nation are mandatory to be followed for all the organization that are working in
this industry. Political changes gives impact on the overall performance of the industry and due
to this impact is being observed on diverse range of activities that are performed in this industry.
For example Government of UK has declared that new visitor visas will be applicable and valid
in the UK for 2 years.
It will be 4 times the usual 6 months limit for the standard visas. In addition to that plans
are also there for introducing a new 10 year multiple entry visas for China tourists at no extra
costs (Evans and et.al., 2012). These political decisions will support for rendering economic
benefits for London's tourism industry and long term effect will be observed for this. It had been
observed that the number of Chinese visitors coming to London will rise by 112 %. Spendings
over the same period had been risen by 167 per cent and forecast for the next 8 years from
oxford Economics anticipate additional growth for 77 %.
This political decision has helped for increasing number of Chinese tourists in the
country. Chinese tourists are contributing £500 million towards the tourism industry of UK and it
is also offering retail opportunities for people. Prime minister David Cameron has also
mentioned that it is easier and more convenient for Chinese visitors to come to the UK (Ghimire,
2013). UK is offering best tourism services for people and it is helping for making enhancements
in growth and financial revenues that are earned by this sector (Dupeyras and MacCallum,
2013). Moreover, changes in political conditions of a nation also gives impact on the overall
performance of the travel sector. Political situations can give positive and negative impact on the
performance of this sector and it is vital that impact of political factors should be considered so
that effectively (Hall, 2013). Better and effective policies formed by government will help for
enhancing the tourism activities in this industry. Along with this negative impact is also observed
if proper and effective policies are not formed by government and due to that impact will be
observed on overall growth and development of the travel and tourism industry.
21

TASK 3
3.1 Factors that gives impact on the tourism demand
There are diverse range of factors that gives impact on the tourism demand and due to
that effect is observed on overall performance of the tourism industry. Along with this supply
and demand are two most important factors that gives impact on the travel industry and due to
this impact is observed on overall tourism demand and supply in the nation (Hudson and Thal,
2013). The elements that are includes under demand are Demographics, technological, emerging
economics, political stability, changing working patterns and workforce and environmentalism.
Globalization, macro economics and influence of currency exchange rates are some more
factors that affects the tourism demand in this sector (John and Susan, 2015). Moreover,
inflation, deflation and level of disposable income are some more other elements that gives
influences on the tourism demand in this sector. Major elements that includes impact on the
organization includes demographic factors and TUI group needs to consider impact of these
elements so that better strategies and policies can be formed for carrying out the functions of
business (Lee and et.al., 2013).
Technological factors also affect the overall performance of the organization and demand
for tourism gets affected due to it. Demand increases when there are more number of bookings
and internet, E-mails and other social sites are also providing medium for getting more number
of bookings. More number of packages can be offered to consumers and it will aid for making
increments in profitability and financial revenues that are earned by the firm. Purchasing pattern
shown by visitors and their demand also gives impact on tourism demand in the nation.
Economic condition of a nation affects the disposable income of the buyers and inflation and
deflation situations also gets affected due to it.
3.2 Supply change at TUI group to meet the effect of demand
It is critical that management of TUI should take effective measures and steps so that
demand in the tourism sector should be met. It requires strategic approach so that required
demand in the tourism sector should be met. It is vital that appropriate and effective action plans
should be formed so that demand that generates in tourism sector can be met. Along with this
22

supply in the tourism sector can be met by properly identifying the demands and it will aid for
meeting the supply (Mariani and et.al., 2014).
Moreover, TUI group has make use of strategic approach so that required demand in the
tourism industry should be met. Data and information that is being required for making proper
action plan and strategies has been collected from reliable and authentic data sources and it has
helped for making effective strategies and action plans for the business. Along with this steps has
taken for meeting with the demands that has been generated in the tourism industry. It is critical
that staff members should posses effective capabilities and skills so that they can perform their
required functions in effective manner (Mok, Sparks and Kadampully, 2013). Along with this
there is requirement that needs and requirement of buyers should be identified so that goals and
objectives of the firm could be achieved effectively.
It will support for making positive improvements in the competence of customer service
providers and the will render better and effective services to people. Other than this existing
travel packages have been improved and it has helped for achieving the goal and objective of the
company. TUI group has launched attractive holiday packages so that more number of
consumers can be attracted for selling packages and services that are offered by the company.
Family holidays and club holidays, summer holidays are offered to visitors and it supports for
attracting the attention of visitors towards selling products and services that are offered by the
company. With this seasonal holiday schemes are also offered to visitors and it has helped for
selling more number of packages to individuals (Morrison, 2013). Company has also ensured its
active presence on social networking sites so that buyers can be made informed about the diverse
variety of holiday packages that are offered by the firm. In addition to that feedbacks are taken
from buyers so that weak performing areas of business can be identified and steps can be taken
for making making improvements in the existing performance of the entity.
23

TASK 4
4.1 Main positive and negative economic. Environmental and social in sector pact of travel and
tourism sector with reference to TUI group business.
Tourism industry of UK is contributing positively towards the growth and success of this
sector and it has helped for accomplishing required goals and objectives of the firm successfully.
Two travel destinations that have been selected for completing this project are as described :-
Thailand :- Millions of visitors goes every year for visiting the travel destination sites of
Thailand. There are many attractive places where people comes every year and Railay beach
Sukhothai old city and Ayutthaya are included in the list of most visited places. Travel activities
that are performed in the nation aids towards contributing for the economic growth and
development of nation. History and culture of ancient nation is depicted and it takes attention of
visitors that comes for visiting the nation (Mowforth and Munt, 2015). Government of nation has
also supported for making policies and rules that are required for regulating the travel activities
that are performed in the nation (Structure of travel and tourism. 2016).
Different stakeholders of the business also gets affected and due to this impact is
observed on overall performance of tourism industry of UK. Economical conditions of nation
gets improved and it gives impact on the purchasing power of people. Disposable income of
people increases and they gives major focus on spending money on travel and tourism activities
that are performed in the country. Economic contribution of nation gets improved and revenues
that are earned are spend on making economic development of nation. Other than this
environmental impacts also has been observed and level of pollution has been increased in the
country. Along with this travel destinations sites are getting polluted and due to that impact is
observed on pollution level of the country. Wastes thrown by travellers gives impact on
environmental conditions of nation and due to that beauty of the travel and tourism gets affected.
social impact also have been observed due to the travel destination sites and it has helped for
increasing employment opportunities in the country. In addition to that many travel service
provider companies that are working in this sector also finds better and effective opportunities
for serving the visitors.
24

Spain :- Visitors gives preference for visiting the country for exploring the beauty of different
travel sites and natural travel places and historical sites attracts consumers for visiting the nation.
Travel functions that are performed in the nation gives impact on the economic, environmental
and social conditions of nation. TUI group is operating and providing services to large number of
visitors that comes for visiting the country. Along with this business services also have been
started by the company in which seminars and conferences are organized.
Leading companies across the world are giving preferences for visiting the nation for
organizing their business meetings, seminars and conferences. Economic benefit has been
observed as number of people visiting the nation have increased and it has helped for ensuring
long term growth and success of travel sector of the nation (Page, 2014). Moreover, indirect and
direct income of people have increased and it is helping for selling more number of travel
packages for the visitors. Travel activators are providing a good source for generation of foreign
currency and all the revenues that are gained by the state are used for making economic
development of nation. International transaction increases and it aids for doing valuation of
domestic money.
Local community people are getting employment opportunities and it is helping them to
earn good income. People are getting more aware about the environmental awareness and they
are giving more focus for protecting and conserving the surrounding environment. Government
is also emphasizing on increasing awareness about preservation of monuments and historical
places so that their appearance and attractiveness can be maintained for longer time period
(Navickas and Malakauskaite, 2015). Cross culture transfer and exchange of information is also
made possible and it has helped for increasing the education level of people. Moreover, different
types of education benefits have also been observed. Transfer of knowledge and culture takes
place and it helps for increasing cultural exchange in the country. However, negative impact is
also observed due to the tourism activities that are performed in the nation. Crime rate has been
increased and it is giving negative impact on the image of the country.
4.2 Strategies that can be used to minimize the negative impact on TUI group business.
It is critical that TUI group should take initiatives for reducing the negative impact of
tourism so that business of group can be enhanced. There are diverse range of strategies that
25

could be used by business organization for enhancing the positive impact and reducing the
negative impacts (Scott and et.al., 2015). Moreover, attractive discount schemes can be offered
to the visitors so that more number of visitors can be attracted and it will aid for reducing the
negative economic impact of travel sectors. Open sessions can be organized so that local
community people can be made aware about the negative environmental impacts of tourism
sector.
Posters and pamphlets can be used for making the travellers aware about the negative
impact of travel sector. In addition to that individuals who comes for visiting the nation and avail
services of the company can be requested to not contaminate the surrounding environment.
Revenues generated through travel activities can be used for improving the infrastructure and it
will support for making the travel destination sites more attractive. Economic impact of tourism
activities can be enhanced by providing more employment opportunities so that people can get
more ways for earning profits and financial revenues (Prebežac, Schott and Sheldon, 2016).
Government can play a vital role in making stringent policies so that environmental impact of
travel activities can be reduced. In addition to that police and other regulatory bodies can also
play a significant role in doing monitoring of work performed by the employees. Along with this
encouragement can be given for exchange of information and it will help for enhancing the
standard of education in the community.
CONCLUSION
Aforementioned report concludes that it is critical that travel and tourism services in the
country should be performed effectively so that long term positive benefits can be reaped
through them. Tourism industry is developing and technology and globalization are playing a
vary important role in ensuring that all the required activities can be performed effectively.
Different elements that combine together for forming structure of travel and tourism sector
includes tourism services, conferences and events, accommodation services, transport services
and visitor attraction sites. Government and other international agencies also gives impact on the
functioning of these bodies and due to that impact is being observed on functioning of the
different travel organizations. In addition to that international agencies that gives impact on the
performance of the tourism sector includes United nations, World tourism organizations, world
26

travel and tourism councils and international civil aviation organization. It is vital that demand in
the travel sector should be met with the supply so that better services and facilities can be
provided to people that are working in the travel sector. Along with this negative and positive
impact of tourism is also observed and it is critical that negative impact of tourism should be
reduced. It will aid for enhancing the financial revenues and profitability of the organization.
27

28

29

30