Travel and Tourism Sector Analysis Report: Focus on TUI Group

This report provides a comprehensive analysis of the travel and tourism sector, with a specific focus on the TUI Group. It begins with an introduction to the industry, highlighting its significance in the UK economy and globally. The report delves into the historical development of the sector, tracing key milestones and technological advancements that have shaped it. It then examines the structure of the travel and tourism sector, illustrating the roles of various stakeholders like government, accommodation providers, and tour operators, using the TUI Group as a case study. The assignment also explores the implications of political changes on the travel and tourism industry in different countries, including the UK and China, and how these changes impact tourism demand and policy. Furthermore, the report discusses the factors affecting tourism demand, such as economic and social elements, and how the TUI Group adapts its supply to meet these demands. Finally, it covers the positive and negative economic, environmental, and social impacts of tourism, along with strategies to mitigate negative impacts and maximize positive contributions. The report concludes with a summary of the key findings and recommendations for the travel and tourism industry.

Travel and Tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Key historical development in travel and tourism sector......................................................4
1.2 Structure of travel and tourism sector...................................................................................5
TASK 2............................................................................................................................................7
.....................................................................................................................................................7
2.3 Implication of political change on travel and tourism in different countries......................16
TASK 3..........................................................................................................................................17
3.1 Factors affecting tourism demand.......................................................................................17
3.2 Supply has changed at TUI group to meet the effects of demand......................................18
TASK 4..........................................................................................................................................19
4.1 Positive and negative economic, environmental and social impacts of tourism................19
4.2 Strategies to minimise the negative impact and maximise the positive impact..................20
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................21

INTRODUCTION
Travel and tourism industry can be seen as one of the leading industry now days. In today
world there are many people who love to visit different place from one place another over a
period of time. If the person is travelling with in own country then it is a domestic travel. On
other side when they visit outside the country is international tourism. In UK tourism is one of
the most growing business sector (Aldebert, Dang and Longhi, 2011). This sector is making
contribution in gross domestic product of the country. The world travel and tourism show the
significance of tourism industry for the country. They have made many rules and regulation for
this sector in order to attract large number of people.
In this report TUI group is taken which is largest tour operator. This group provides
services of hotels, airlines, travel agencies or any in retail stores. This assignment has explained
the history and structure of the t4ravel and tourism industry. Further the influence of national and
local government on the travel and tourism sector has been discussed. Along with this there are
lots of factors which influence the demand of visitors in travel and tourism industry in UK.
TASK 1
1.1 Key historical development in travel and tourism sector
Travel and tourism industry is changing from time to time. This industry changes by
leaps and bounds and providing the convenient services to tourists. The changes only take place
only because of the major possible development in technologies, accommodation services,
amenities and many more. In modern era, this industry is investing a lots amount and resources
to provide quality of services to visitors. The travel and tourism industry has made
approximately 10 percent contribution in the economic growth. Travel and tourism industry has
made changes from time to time.
In 1936, the first holiday camp was introduced Billy Butlin in Skegness.
After that in 1938, holiday with Pay act was introduced by the government.
In year before 1945, There were many people who leaves in agriculture communities.
These people were like to mover form one place to another in local place only. In those days,
travel and tourism industry was inconsistent. For example, there were no such technologies
which provides best facilities to people. Travel and tourism industry has faced the problems in

transport, operator facilities and many more. In year, 1841, the first package tour was introduced
by Thomas Cook.
After 1945 to 1980 year, the development a taken place in travel and tourism industry.
These industry has started construction to build hotels and provide proper transport facilities to
people. The tour operators in UK has started changing the character of tourism industry for more
satisfy the needs of people. Before this there aim was that to earn only profits. Through this they
are integrating more customers to use these services. Airlines companies was also offered
insurance and accommodation booking for the travellers. The tour operators were also offering
the packages which include all factors related with the holiday package.
1981, there are many airlines companies who were offering full travelling services which
includes holiday, medical or many more services. In the year of 1990, the formation of travel and
tourism industry were affect the development of other companies. The travelling industry is
rapidly changing and making estimate of to contribute in the GDP approximately 18 percent.
In current scenario, there are so many tour operator companies such as TUI, Thomas
Cook who are providing the best and best services to people. While using the new and latest
technologies they are attracting large number of customers for visiting out of domestic place.
People are also using different services which are providing by the companies.
1.2 Structure of travel and tourism sector
The travel and tourism is broken into huge number sector. These industry are introducing
many new concept for changing the structure of travel and tourism sector (Blanke and Chiesa,
2011). These concepts are related with the distribution of chain and roles of different sectors
such as government, accommodation, tour operators and many more.
The government of UK has framed the several rules and regulations which help the
tourism industry in providing the better and convenient services to people.

(Source; Travel and tourism sector, 2016)
From the above diagram, it clearly show that the government has properly framed the
structure of travel and tourism. Lets take an example of TUI group, this tour operator has
following this structure in order to provide quality of services to visitors. These sectors are
divided into such as travel planning, transport, accommodation, local travel, food and shopping
and many more.
Travel planning – This company is providing the services to people with the help of
travel agencies, agents. Through it became easy for the people to make plan in easy way. Before
going any new places the people are consulting with them. These agents are considered as retail
shops for customers (Dickinson and Lumsdon, 2010). They generally act as intermediary who
provides all information or advice them regarding the tourism package.
Transport – Transportation is important element in tourism industry, whether the tourist
are going from airports, rails or through roads. TUI group has to provide proper transport
facilities to consumers. For example, if person is travelling from one country to another then tour
operator has to provide proper facilities in which they want to travel.
Illustration 1: Travel and tourism sector

Accommodation – The TUI group has to provide proper accommodation facilities which
include hotels, resorts, apartments and so on. The tour operator has to provide high quality of
services to consumers and fulfil their demands according to their needs. It is most important
structure which has to be provided by the organisation. It also includes the foods and shopping
which need to be provided by the organisation.
Tourist sites – It is most important leisure which often the destination to consumers. The
destination places must be very attractive which includes natural parks, museums, entertainment.
At tourist place the services regarding the accommodation, transport should be properly provided
to customers (Garín-Muñoz and Pérez-Amaral, 2011). TUI group has provide many attractive
places to customers in order to retain them for a long period of time.
TASK 2
Covered in PPT