Historical development in travel and tourism sector of London - Report

Travel and tourism
sector
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Table of Contents
INTRODUCTION ...............................................................................................................................4
TASK 1.................................................................................................................................................4
1.1 Historical development in travel and tourism sector of London...............................................4
1.2 Overview of the structure of travel and tourism sector.............................................................5
TASK 2.................................................................................................................................................7
2.1 Analyse the functions of government, government sponsored bodies and international
agencies............................................................................................................................................7
2.2 Explain the impact of local and national economic policy on travel and tourism sector..........8
2.3 Implications of political changes on travel and tourism sector.................................................8
TASK 3...............................................................................................................................................11
3.1 Factors that affect the demand of travel and tourism sector....................................................11
3.2 Changes in supply to meet the demand...................................................................................12
TASK 4...............................................................................................................................................13
4.1 Positive and negative impact of tourism in UK.......................................................................13
4.2 Different strategies to minimize the negative impact and maximize the positive impact.......14
CONCLUSION..................................................................................................................................15
REFERENCES...................................................................................................................................17
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Illustration Index
Illustration 1: Number of visitors to Africa from 1990 to 2014...........................................................9
Illustration 2: Top 12 arrivals to Shri Lanka by country of residence ...............................................10
Illustration 3: Tourist arrivals from 2014 January to 2015 January....................................................11
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INTRODUCTION
In the current age, travel and tourism sector is one of the fastest growing industry in the
world. In the United Kingdom, it contributes a significant percentage towards the gross domestic
product and economic development. It drive government revenue in the form of foreign exchange
earnings, taxation revenue and provide millions of jobs to the people. In the present age, many
people travel in different places for their leisure or business objectives thus, the demand for travel
and tourism sector is increasing very rapidly. As a result, all the organizations are facing fierce
competition from the other business units and firm who is providing services according to the
customer need can be operate successfully in the market.
Present project assignment explore the study of historical development and structure of
travel and tourism sector in UK. Moreover, the government will explain various types of national
policies which impact the operational of travel industry. Furthermore, the report will describe the
impact of travel and tourism industry on the UK economy. Besides this, various types of factors
which impact the demand of the industry will be demonstrated. In the end, different strategies
which organizations can adopt to control the negative impact and maximise the positive impact will
be discussed. So that, companies can run successfully without any hurdles.
TASK 1
1.1 Historical development in travel and tourism sector of London
In the ancient times, travel and tourism sector is not functioning as an industry itself. It is
because very few persons were travelled in different places for varied objectives. But still, in last
few decades, the number of tourists is increasing rapidly. Moreover, they demand different types of
services and leisure facilities to satisfy their need. Due to this, sector introduced many
developments so that customer can be served beyond expectations (Navickas and Malakauskaite,
2015). In the UK, London is one of the famous tourist destination where every year, large number
of tourists came to spend their vacations or business purpose. Some of the historical developments
in travel and tourism sector of London are explained below:
Before the 16th Century, visitors travelled through riding horses, foot or carrier wagon which
were very uncomfortable for them. Henceforth, with the increasing the number of travellers, sprung
coach was developed which provide better travelling experience to the visitors. While, earlier 17th
Century, Grand Tour has been organized to provide educational tour services to the young people. It
mainly belongs to rich society who can afford this and it was one of the biggest developments in
travel sector which attract high number of tourists across globe. In the middle age, introduction of
religious pilgrimages also can be seen such as Canterbury.
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In the end of Second World War in 1945, this tourism industry experienced high level of
developments due to changing social and economic conditions. In UK, after the second world war,
leisure time has been greatly increased as a result, organizations introduced paid holidays. This
emerging change encourage UK domestic tourism industry to a great extent, Through this, tourism
organization Thomas Cook was become able to serve high number of tourists and thereby increase
their turnover as well as profitability. Moreover, larger the availability of disposable income
increase travellers demand. As a result, companies introduced many changes so as to deliver best
services to the service users. Furthermore, in the age of developing technology, the way of transport
has been greatly improved (Becker, 2016). For instance, development of aircraft, railways, ships
etc. provides assistance to the travellers to visit at various tourist destinations safely and quickly.
Besides this, Euro tunnel and hovercraft are also the transportation medium through which visitors
can travel at very cheaper rate. After the year 1950, product development in terms of different types
of services, tour operators such as inbound, outbound, domestic operators, tour agencies, travel
agents etc, can be seen. Through this, Thomas Cook render excellent services to the global customer
base and enhance their satisfaction level.
Along with this, after the 18th and 19th Centuries, people living standard has been greatly
changed. In the time of urbanization, large people moved rural areas to search jobs in factories,
town and cities. During this time, workers had to work for a longer duration at less wages which
contributes to an unhealthy environment. Thus, during the industrial revolution, only the high class
families were able to afford the time and money to enjoy luxury services, But still, after 1830
onwards, decline in working hours, high pay and better working conditions emerged working class
people to have time available for the leisure activities (Verhey, Baum and Hai, 2016). Thus, it is
clear that industrial revolution is also a major step for the development of travel and tourism sector.
Besides this, use of web technology by Thomas Cook like online reservation, e-ticketing etc. had
been introduced which enhance customer convenience. Increasing in paid holidays provide better
luxurious time to the employees. In UK, the availability of disposable income to spend on leisure
services also has been increased which encourage people to travel in different countries (Berbegal-
Mirabent, Mas-Machuca and Marimon, 2016). In addition to this, freedom of movement, improved
transport, increased mobility, better infrastructure facilities and changing customer needs and
desires brought development in the sector.
Over the past 50 years, technological development can be seen in the UK travel and tourism
sector. Changing the lifestyle and leisure requirement of the visitors bring numerous changes in the
industry to serve customer beyond their expectations. Now-a-days, all the companies are serving
best services to the customers to meet their demand and reach success. Now, people have more
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leisure time to spend vacations at different places for entertainment. Euro also has been introduced
to help travellers to use an universal currency across all the European nations. Further, hospitality
industry also serving different types of rooms to the customers as per their desire in order to provide
them better feeling. Air conditioned rooms, mini-refrigerators etc. are also provided in the rooms to
meet their demand effectively. For instance, in UK, Marriott, Hilton and Intercontinental hotel are
some of the global hotels which deliver best accommodation services to the clients.
Along with this, increasing number of travellers also led to the development of internet
travel and booking agencies like travelzoo, lastminute.com and booking.com etc. Along with this, in
the initial time, UK travel sector was entirely owned by public sector while after the privatization of
British Rail in 1980, it combined private sector into the industry. For instance, Virgin Airlines is a
one of successful airline operating in UK. Apart from this, merger and acquisition also has been
introduced to take the benefits of integrations. For instance, merger of First Choice with the
Thomson Holiday is the best example of it. Besides this, online booking, holiday packages, larger
number of tour operators etc. also can be seen to encourage tourists to visit London as an attractive
tourist destination. Furthermore, increasing the growth of cruises also greatly appeal to the
customers to spend vacations for entertainment.
1.2 Overview of the structure of travel and tourism sector
The structure of the travel and tourism sector in UK has been changing at faster pace.
Accommodation, attractive tourist destinations, transportation, travel agencies, tour operators etc.
are the major services which are providing by the sector. With reference to visitor attractions,
London has many places includes both natural or man made places. For instance, British Museum,
Westminster Abbey, Trafalgar Square, House of parliament, Buckingham Palace, Tower of London,
Lake District, Blackpool etc. are some of the famous and attractive tourist destinations.
Transportation is the another essential component of the industry as in London, development of air,
road and sea transport is rendering best travelling experience to the domestic as well as international
visitors.
Along with this, accommodation service also plays an major role in the industrial growth. It
is because people demand for best hotel services with all the luxurious facilities. Best hotels of
London like Inter Continental hotel, Hilton hotel etc. are services global visitors with best
accommodation services. In addition to it, Thomas Cook and TUI travel are working as global tour
operators who are planning for tour packages for the customers by keeping into consideration their
varied need. They are contracting with suppliers in order to fulfil customer desires and need in order
to enhance their satisfaction level (Scott, Hall and Gössling, 2016). Furthermore, travel agents are
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