Tourism Sector Competitiveness

This assignment delves into the key elements that shape the competitiveness of the tourism sector. It examines the interplay between sustainable practices, economic performance, and the global context in which tourism operates. The provided sources offer insights into factors such as climate change, economic crises, and public-private collaborations, highlighting their influence on tourism's success.

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

2.3 Implication of political change on travel and tourism in different countries
Travel and Tourism sector
Date : 28th April, 2017
There are many factors which are related with political changes. Political changes of any
country can give positive or negative impact. The positive impact will improve the economic
growth of the country. The implication of political changes on travel and tourism in different
countries are explained as below. Lets us take an example of first UK. In UK the government
are making different policies and rules in relation to attract large number of customers. The tour
operators has to follow these rules and regulations in such a manner through which they can
provide a legal services to customers. The political changes are giving both positive and
negative impact on the country. The negative impact if there is no stability in the government
then it will reduce the number tourists. It will also impact on their currencies. If became
difficult for the companies to follow the rules and regulation of new government at a point of
time. The government has to make rules and policies according to the organisation which gives
them also benefits to fulfil their objectives. The positive impact is that if the government is
changing from time to time, then new government will bring a many new ideas for the
development of these sector. According to this the organisation have to also provide proper
training and development programme to employees which will give them benefits to attract
large number of customers. TUI is largest tour operator in UK which provides so many services
to visitors. It is there responsibility to satisfy all the needs of customers while making the
different strategies and policies. In this country there are many people who love to come visit
this place. The cited tour operator has to provide services according to the needs of customers
who are belonging from different cultures.
Another example is China, this country is becoming one of the fastest growing country
in tourism sector. The government of Chine is making policies more easier to attract large
number for customers and which will be convenient for the visitors. The visitors who want to
visit the UK country then their visa is valid for two years. The government is reviewing the plan
on continuous basis. The tourist of China has make contribution about £500 million annually to
UK economy. If there is any change in the government policies then it may also affect on to UK
economy. The visitors of Chinese are getting the facilities at lower amount and UK government

has also opened office for them to provide visa. Through this they are attracting the people in
order to fulfil their needs. The visitors of this company are making large amount of contribution
than UK people. UK country is offering range of hospitality services and using user-friendly
tool so that Chinese visitors attract more.
The tourism company after Brexit, is working as closely partners in order to promote
the capital with the increase in Chinese tourists and boost the people to come UK for visiting in
future. This will give the positive impact to the economy of UK.
TASK 3
3.1 Factors affecting tourism demand
Tourism demand is the concept where the expenditure is made by the visitors before,
during or after the trip. This is broad term which covers the factors of government level. The tour
operator has to determine the factors which are affecting the demand of customers (Ghimire,
2013). There are many customers whose demand are changing from time to time so it became
very important to determine the factors of tourism demand.
The elements of tourism demand are also be determine by the organisation in order to
fulfil the needs of customers. The key elements of tourism demand are tourists, geographical,
tourism industry. In tourism industry it includes the variety of organisation for which they are
responsible for supplying the tourism product. These organisation are located at different place
who are providing the services according to the needs of customers. In geographical, it includes
traveller-generation, tourist destination and transit route region. In tourists, they are important
elements (Gössling and et. al., 2010). The organisation has to fulfil their needs according to their
requirements.
The following are the factors which are affecting the tourism demand and it need to be
considered by the organisation.
Economic factors – In this te company has to provide services according to the
capabilities of customers. There are many people whose income are low and cannot afford to use
these services. TUI group has to identify those factors which are influencing the demand of
customers. If the income of the people are then they have to set the prices accordingly.

Social factor – The visitors are going to another place. It is there responsibility to
understand other cultures. The tourism company has to provide proper facilities such as
accommodation, amenities and accessibilities facilities (Heung, Kucukusta and Song, 2010).
These facilities should be related with the culture of people. It is the responsibility of TUI group
that provide services according to the people that in which society they want to live.
Demographic factors – It includes age, gender, education, occupation of different people
who are belonging from different place. In this factor, it became difficult for the organisation to
determine the needs of different people who are belonging from other countries. Ultimately it
will impact on the demand of tourism.
Cultural factors – There are many tourist who are attracted towards the historical places.
The organisation need to understand the choices of people that what kind of destination they
want to visit. For example, if family makes an trip then they wish to visit historical place to
understand the culture of other countries (Hjalager, 2010). In this way if the organisation is not
providing the services then it may impact on the tourism demand.
3.2 Supply has changed at TUI group to meet the effects of demand
The demand and supply of tourism company are interlinked with each other. The
company has to provide services according to the demand only. The supply of products and
services will not so much excess or shortfall arises. The taste and reference of customers are
changing from time-to-time so it the responsibility of managers to conduct proper market
research in order to determine the needs of services. If the customers are making plans according
to seasons then the supply should meet demand of customers. The services should be provided
which are highly in demand. It is important for the organisation to meet out with the equilibrium
point with the help of satisfy the needs of customers (Hudson and Thal, 2013). The following are
some provision which has to followed by the organisation in order to meet the needs of
customers.
Accommodation – When people make plan the firstly they decide that whether the tour
operator will provide proper facilities or not. Accommodation includes services related with
infrastructure, hotel and many more. At destination place the visitors are likely to visit on malls,
natural parks etc.
Technologies intermediaries – With the help of intermediaries technologies the tour
operator will came to know about the demand of customers. Through this they can supply the

products and services. The organisation has to use new and latest technologies which help them
to meet the supply with the demand. In modern era, it became easy for the organisation in order
to determine the needs of customers with the help of latest technologies.
Types of products – The tourists demand those products and services through which
they can fulfil their needs (Mair and Jago, 2010). TUI group has to identify the needs of
customers and provide products according to them. The products can be include services. For
example, tourists want that at the destination place, they want proper infrastructure facilities,
restaurants, car facilities and many more. The demand of product should not be extended by the
supply.
Quality – At the time of providing the services the organisation must be ensure about
that they have to provide quality of services. They have to provide proper training and
development programme to new and existing employees in order to provide high standards of
services. Quality can be measured in terms of services.
Seasonality – There are many customers who are planning according to season. In this
the demand of customers are increasing but the organisation are not able to fulfil the supply. In
this case, the organisation make collaboration with other companies in vertical or horizontal.
TASK 4
4.1 Positive and negative economic, environmental and social impacts of tourism
It is important for the organisation to determine the positive and negative impact of
economical, social and environmental factors (Malakauskaite and Navickas, 2010). TUI is
largest tour operator so it is there responsibility to determine these factors on regular basis. With
the help of these analyses the organisation can retain in market for along period of time. Lets
take an example, if there is increase in the income of the people then they wish to visit paces of
different countries and through this the organisation can also determine the demand and supply
of products and services. Here are following positive and negative impact of these factors which
ahs to determine by the organisation in order to satisfy the needs of customers.
Social factor – In an economy there are many people who are belonging form different
culture, religion etc. The organisation has to understand the culture of different people in which
they can fulfil their needs. The positive impact of this factor is that it will be easy for the
company to provide services to own country visitors because they know how to fulfil there

demands (Moutinho, 2011). But the negative impact is that it became difficult for organisation in
order to determine the needs of other people because their religion, caste are different.
Economic factor – In this it gives an positive impact on the economy. If there is an
development in the infrastructure facilities, hotels then it will provide job opportunities to local
people. With the help of this it will improve their life style ans make contribution in the growth
of economy. The negative impact is that the revenue of government will depend on travel and
tourism sector. The company have to use proper resources in providing the quality of services to
customers.
Environmental factors – The organisation has use proper natural resources in order to
provide quality of services. If the natural resources are used unnecessary then it will harm to
environment. It is important for the organisation to protect the environment from the wastage of
resources (Papatheodorou, Rosselló and Xiao, 2010). At destination place, the tourist have to
avoid the use of plastic materials which will impact on the economy.
4.2 Strategies to minimise the negative impact and maximise the positive impact
The government has made many rules and regulation to minimise the negative impact.
The organisation has to follow these rules and regulation on regular basis in order to maximise
the positive impact. Here are some strategies which has to be followed by the organisation in
order to maximise the positive impact and minimise the negative impact.
Strategies to minimising the negative impact.
Eco-tourism – The government as well as organisation has prevent the wildlife. They
should not neglect this (Peeters and Dubois, 2010). Through this it will also not impact the
environmental issues of the country.
Reducing area – The can provide limited number of place for the visitors and from that
they can change high amount in order to increase the profits. The organisation and government
has authority to charge high amount where the people are using restricted area.
Diversification – The company can provide so many products and service to visitors at a
destination place. Through this it will opportunity to organisation to expand the places in which
it will not impact on the economy.
Strategies for positive impact
 It is the responsibility of organisation to provide high quality of services so that
customers will retain for a long period of time.

 The organisation can collaborate with other companies in order to fulfil the demand of
customers on the time of season (Perch-Nielsen, Sesartic and Stucki, 2010).
 TUI group has to make proper communication with customers which will also help them
to resolve their issues if they are facing any problem at destination place.
 The organisation has to provide facilities in accordance which dose not generate so much
environmental wastage. They have to take care of local people also.
 The goals and objectives of organisation should be set in such a manner through which
they can satisfy the needs of customers.
 The manager has to make decision on the basis of customers needs so that they can enjoy
the destination place in appropriate manner.
CONCLUSION
After summing up report it has been concluded that the government has framed many
rules and regulations for the travel and tourism company in order to provide quality of services.
While determining positive and negative impact, it will give advantage to company to determine
their position in market. Further, the manager has to conduct the proper market research in order
to determine the supply and demand of products and services. With the help of positive impact it
will provide job opportunities to local people an make contribution in growth of economy.

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Online
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on 28th April 2017].
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m>. [Accessed on 28th April 2017].