Analysis of Travel and Tourism Industry

The assignment requires a detailed analysis of the travel and tourism industry, covering topics such as special interest tourism, measuring innovation, new directions in sociology, factors influencing word of mouth behavior, mobile applications, and consumer acceptance of technology. The paper also discusses various case studies, market resistance, risk and safety challenges, and sustainable tourism development.

Global Travel and Tourism
Pattern and Trends

Table of Contents
INTRODUCTION ..........................................................................................................................3
LO 1.................................................................................................................................................3
P 1. Key milestone in the development of the travel and tourism sector ...................................3
P 2. Identification of different elements of travel and tourism sector and exploring the way
they interrelate to create tourist experience................................................................................4
LO 2.................................................................................................................................................6
P 3. Different factors that affect the consumer behaviour in tourism sector...............................6
P4 Models of motivation and the way they influence consumer decision making procedure....7
LO 3.................................................................................................................................................8
P5. Identifying the recent as well as emerging pattern and trends in international tourism
industry. ......................................................................................................................................8
LO 4.................................................................................................................................................9
P6. Examining the factors effecting the popularity of range of Global destinations. ...............9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Tourism is among the fast going industry in the world. Ion context of UK, travel and
tourism sector is making the significant contribution in economic as well as social development
of nation. The globalization has given rise to the new trends in travel and tourism sector. As a
result of globalization a new trend of inbound tourism has emerged. There has been increase in
number of visitors In UK during last few years. According to the forecast by World trade
organization, there will be continuous rise in the number of international visitors.
The report will have focus on identifying the key milestone in the development of
tourism sector. Study also emphasizes on identifying the different elements of travel and tourism
sector. Report will include the model of motivation in order to show the way they influence
consumer decision making.
LO 1
P 1. Key milestone in the development of the travel and tourism sector
There are various milestones in the development of the travel and tourism sector such
as:Billy Butlin opens his first holiday camp in Skegness in 1936 in which they open holiday
camp that is more beneficial for travel and tourism in relation to their increase sales and profits
(Moutinho and Vargas-Sanchez, eds., 2018). Introduced Holidays with Pay Act in 1938 in which
many of regulations related to pay of holidays which is more good for raising the safety and
security of travellers. Fred Pontin opens his first holiday near Weston Super Mare in 1950. this
can help to development of travel and tourism sector.
First package air holiday organized by Horizon in 1952. this can aid to the development
of travel and tourism sector in relation to their increase sales and profits (Prebensen, Chen and
Uysal, eds., 2018). First Jet Airlines passenger service to Australia in 1959. It is the more
advantageous in relation to their increase sales and profits. Number of domestic holidays taken
exceeds 30 million for the first time and number of international holidays increases to 3.5 million
in 1960.First international distribution system evolved by American Airlines in early
1960.Countryside regulations passed to make national parks in 1968 (Korstanje, Raj and Griffin,
eds., 2018). This can aid to increase attraction and attention of consumer ultimately increasing
sales of travel and tourism business. Development of Tourism Act introduced in 1969 in which
many of regulations related to pay of holidays which is more good for raising the safety and

security of travellers. Concorde goes into service in 1976. This can aid to the development of
travel and tourism sector in relation to their increase sales and profits.
The total number of 60% of households utilise of at least one car in the UK in 1981. there
are total number of 77% of British Employees have 4/5 weeks holiday year in 1983 which help
to raise income and standard of living in the society (MacLeod, Shelley and Morrison, 2018).
Private car ownership reaches 20 million and department of National Heritage made now called
as the Department of Media, culture and sport in 1992 which to attracting more consumers and
increase sales as well as profitability in the business. In 1995, Le shuttle and Eurostar carry first
passengers through the Channel Tunnel which help to development of travel and tourism sector.
This can aid to increase sales and profits of travel and tourism business. An estimated 1.4 million
people have buy travel tickets on the internet which assists to raise the sales and profits of travel
and tourism sector (Moutinho and Vargas-Sanchez, eds., 2018). EasyJet No-frill airlines reports
71.6 million profits carrying 11.4 million passengers in 2001 which can help to development of
travel and tourism sector. This can aid to increase sales and profits of travel and tourism
business. In 2002, three in ten packages holidaymaker have flown with no-frill airlines and in
2003, English Tourism Council and British Tourist Authority merge to become which help to
development of travel and tourism sector.
P 2. Identification of different elements of travel and tourism sector and exploring the way they
interrelate to create tourist experience.
The travel and tourism sector is very big, it ranges from small to large scale business
operating both at domestic and international level. For instance, fast food counter at airports is an
element of travel and tourism sector. The different elements in travel and tourism sector are
lined with each other. All the elements in the travel and tourism sector work closely with each
other in order to provide customer with good experience. The major or primary elements of
travel and tourism sector are :Transportation, The tour operator suggest the mode of
transportation to the customer. Travel companies has form the strategic partnership with
transportation organization in order to provide customer with ease in travelling from one
destination to other (Taheri, Hosany and Altinay, 2019. ).
Accommodation, Travel firm also have formed the partnership with the hotels in order to
provide customer with accommodations facilities. It is the tour operator which suggest hotel to
customers. Catering, During the time of travelling, travellers is also required food. It is the

restaurants, dhabas which cater to the basic need of food by traveller.Tourist information
centres, It is basically a national as well as global organization which form the party of travel
and tourism industry. Intermediaries, It includes travel agencies which provides the guide
facilities to tourist. Guide is a person who is appointed by the travel company in order to provide
customer with easy access to information related to the destination.
All the different elements in travel and tourism sector have direct relationship with the
tour operators those who have depth knowledge as well as expertise in particular field. Tour
operators are considered to be as invaluable intermediary between tourist as well as suppliers of
services that is hotel, transportation companies etc. Guide is a person who plays crucial role in
making the tourist feel comfortable (Agarwal, Busby and Huang, 2018.).
Secondary elements in travel and tourism sector are hawkers as well as coolies, shop and
entertainment, communication services at destinations, insurance companies offering short term
safety as well as accident policies, publication agency etc. Advertisement agency provides the
information about the services offered by travel companies. In addition to this, Publication
companies publishes brochures, travel guide etc. Brochure are then distributed by travel
companies to the people. Both travel as well as advertisement supports travel companies in
promoting products as well as services.
LO 2
P 3. Different factors that affect the consumer behaviour in tourism sector
Tourism sector is one of the major sector that contributes maximum towards the world's
entire GDP. People travel not only for the purpose of pleasure but also to visit there family and
friends and this in turn has lead to the growth of the tourism sector(Jalilvand and et.al., 2017).
There are multiple factors that have an impact on the consumer behaviour and these factors are
as follows:Global economy, tourism is linked with the global economy. When there is boom in
the global economy, then there would be rise in the tourism sector because tourism is viewed as a
luxury form. Hence, when there is boom in the economy, income of the people is more and thus
they spend more and this in turn leads to growth in the tourism sector. While on the other hand,
when there is recession in the global economy, then there is downfall in the global economy.
Internet and social media, this is the most important factor which influence the
behaviour of the customers. In this current globalised world, the consumer behaviour is highly

influenced by the internet and social media because through social media customers get instant
reviews and opinions about the beautiful travel locations and accommodations in the entire
world. Moreover, by the use of internet customers can carry out research as well as they can even
bargain with the hotels. Hence, with the help of internet and social media customers can learn
everything about the travel destination within seconds as well as they can even pin point various
loopholes of any destination and this in turn influences their behaviour(Tan and et.al., 2017).
Personal budgets, another important factor that influence the behaviour of the customers
is personal budgets. If the personal budgets are high then their would be the growth n the tourism
sector but at the same time if the personal budget would be low than there would downfall in the
tourism sector. Though if the economy is bad, but the personal budget of the people is high then
they will travel no matter what and they may even search for options to cut there cost such as by
searching online deals. Furthermore, now-a-days travels have to no longer rely on standard price
for transportation or accommodation rather they can make their own travel choices based on the
price.
Research, deep analysis on tourism sector affects the consumer behaviour. Every
traveller carries out research before visiting any destination and based on the results of the
research decisions are taken. If the results are negative such as negative reviews or opinions then
the traveller would not prefer to visit the places and would rather invest there money at some
other place. While on the other hand, if the reviews or opinions of the people who have already
visited the place are positive then there would be repeated visits at the destination(Ukpabi and
Karjaluoto, 2017). Hence, in order to grow the tourism sector it is essential to pay immense
emphasis on this factor as well because it influences the consumer behaviour up-to a wide extent.
P4 Models of motivation and the way they influence consumer decision making procedure
There has been different model has been designed in order to explain the specific
motivations as well as decision making procedure by customers in travel and tourism sector.
Vacation Tourist behavior model
It is the hypothesis which states that while considering the reason because of which
people chose to travel, there basically two sets of motivations which are required to be
considered these are general as well as specific motivation. According to the Vacation Tourist
behavior model, in context of general motivation, model states that people travel basically for
different reasons. Sometimes many of people are not completely aware about their motivations to

travel. The specific motivation, people travel for particular purpose such as for attending
marriage, business meeting, attending seminars etc. Specific motivation has direct influence on
an individual decision to travel at particular destination. Specific motivation is mainly associated
with personal experience as well as knowledge, suggestion from friends or relatives, information
gained from mass media, travel intermediaries and advertisement. Vacation Tourist behavior
model sates that an individual decision to travel at specific destination is highly influenced by the
external factors as compared to internal variables. It also dictates that the decision of consumer in
context of travel and tourism sector is also highly influenced by conscious as well as
unconscious manner. It is required by the marketing department in tour and travel companies to
while developing the marketing plan need to consider that memory of experience has great
influence on an individual decision to visit at specific destination again. Vacation Tourist
behavior model states that experience plays a crucial role in positively influencing tourist to
visits at particular destination. Good customer experiences plays a crucial role in future purchase
by an individual.
Vacation Tourist behavior model highlights the three separate stages in decision making
procedure by tourists these are per-decision stage, post purchase evaluation and future decision
making.
Pre -decision : It is phase where the purchase decision of an individual can be highly influenced
by various factors such as access to the information related to travel company, personal factors
such as need of traveling etc.
Post-purchase evaluation : This is the stage where the customer avail the services. It is the
phase where an individual feels satisfied or dissatisfied by consuming the goods or services
offered by travel organization (Booyens, 2018).
Future decision : An individual makes decisions related to buying the services from the same
travel company in the future based on the satisfaction achieved by the after availing the specific
services. The decision making process by an individual is also highly influenced by the
experience which an individual have with an enterprise. At this stage, good quality of services
might influence an individual to make further purchases in the future.
Ma slow needs of hierarchy theory : According to the Ma slow hierarchy of need theory,
There are five factors which influences people to travel includes need of travelling,

attractiveness of destination etc. Maslow theory states that the needs of tourist can be categorised
and arrange in hierarchy according to their priorities. The need for relaxation, stimulation,
social , self-esteem and social realization need should be given high priority
Social psychological model of tourism motivation
. According to the Social psychological model of tourism motivation , in context of
travel motives there are mainly two factors these are push and pull which influence the decision
of an individual related to travelling specific destination. Tourism destinations often try to attract
potential tourists and this pull factor can instigate a person to create a motive for travelling and to
develop the corresponding motivation to visit this particular destination.
LO 3
P5. Identifying the recent as well as emerging pattern and trends in international tourism
industry.
The travel and tourism industry in UK is growing at very rapid rate. In recent time,
travel and tourism sector has gained the popularity as this sector has made significant
contribution in the economic as well as social development of nation. The few recent trends as
well as development in industry are:
Technological development: It is the advancement in the technology which has supported travel
companies in fostering growth. In context of travel and tourism industry, most of the customers
uses internet in order to gather the information about organization and products or services
offered by firm. Consumer in travel and tourism sector now prefer to make online booking
through companies' website (Cohen and Cohen, 2019). By visiting to the companies' website
customers can make online booking as well ass cancel the same whenever they desire. In context
of London, as many of the travel companies are providing the online booking as well as
cancellation facilities there are increase in number of visitors at specific destination.
Increase in spending power of customers: There has been increase in the spending power by
customers in context tourism sector. It has been possible due to development. Because of
development in the travel and tourism sector, many of the people are ready to spend money. In

context of UK, travel and tourism sector are earning higher profit by providing different services
such as transportation and various facilities such as online booking to customers.
Strategic marketing:
The future trends in travel and tourism sector indicates that particular sector will continue
to grow at rapid rate in the future. Travel and tourism companies will provide better services to
customers. In addition to this, there will increase in number of tour operators will give rise to the
intense competition in industry (Jimura, 2018).
Cruise travel can have more options : here are large ships like curies are reducing their
environmental foot prints. Just because there are many people who spend a lot of money behind
the luxurious travel.
Modern family dynamics will innovate family travel- Travel industry is providing new
programs and launching new things for the travelling process of single parent in UK.
LO 4
P6. Examining the factors effecting the popularity of range of Global destinations.
The different factors which effect the popularity of range of global destinations are :
Fluctuations in the currency : Tourism is basically a form of export from the economy point
of view. It means that people visiting United Kingdom from different places of the world and
spending money in order to avail the goods or services produced in UK. The legal authority in
the nation is promoting the tourism in order to gain the economic benefit. Changes in the
economic factors such as inflation, increase in tax rate have significant effect on tourism
industry. Important variable that is fluctuation in the rate of currency has direct effect on the cost
of visiting to specific destinations. In context of United Kingdom, the most of International
visitors prefer to visit UK when value of Pound is weaker than other currency. Since last few
years, the currency value of pound is stronger than Dollar, therefore, there is decliner in the
number of visitors in UK. Most of the visitors now preferred to visit USA. Fluctuations in the
currency rate has direct effect on the demands as well as sale of the products or services offered
by travel and tourism companies.
Weather conditions: It is the another crucial factor which has significant effect on travel and
tourism sector. Bad environmental conditions might even damage the destinations. Tsunami
which has occurred during the year 2004 has damage the many tourist destination in South East

Asia. Other example is Grenada is another most famous tourist destination which has been
adversely effected by the Huricane which has taken place in year 2003 (Kannisto, 2018). Both
little changes in environment and major disasters can effect the popularity of destination and
tourism.
Terrorism : It is considered to be as one of the crucial factor which has great effect on the
popularity of destination as well as tourism. If there is continuous terrorist attack at specific
destination then it can have adverse effect on the image of tourist place. Due to the terrorism
issue most of the people might avoiding visiting such places. For instance, terrorist attach in US
has negatively effected the popularity of destination and also tourism at such tourist place. After
the terrorist attack in US people feel unsafe to travel by flights, which has lead to decline in
number of visitors in US (Rita, Brochado and Dimova, 2018).
Political factors : These variables includes the political stability as well as instability at specific
destination. People might avoid visiting to the destination with high political instability. Tourist
willing to visit at specific destination might face in issue in getting the Visa. For instance, brexit
has adversely effected the UK image, most of the people considering the safety as well as
security issue has avoided visiting UK which has lead to the decline in number of visitors.
Climate of the country : The favourable weather condition can increase the beyatu of
destination which might attract people to visits specific destination. In context of London as a
tourist destination, The tourism industry has made their valuable contribution in econiomic as
well as social development of nation that has developed the positive impression in the mind of
people belonging to different nation. It is the reason majority of international tourist prefer to
visit London.
Culture and History :In context of London, liesure or entertainment is the main factor which
motivates tourist to Visit London. Culture attracted more than double the proportion of leisure
visitors to the city than any other driver
CONCLUSION
It has been concluded from the report that tourism industry plays crucial role in the
economic as well as social development of nation. The other fact which has been discovered in
the study is that the different factors such as social, economic, environmental factors can have

great effect on the travel and tourism business. It has also been concluded that tourism sector is
very big and consists of different elements such as transportation, catering, transportation etc.
The other fact which has been concluded is that all the elements in travel as well as tourism
sectors are interrelated with each other. It has also been concluded that guides plays an
important role in making the tourist or visitors feel comfortable.

REFERENCES
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