Contemporary Issues, Trends and Business Response in Tourism

This report provides a comprehensive analysis of contemporary issues in the travel and tourism sector, focusing on factors such as economic conditions, security concerns, technological advancements, and environmental impacts. The report examines the challenges faced by the industry, particularly in regions like the Middle East and North Africa, and explores how these issues influence customer perceptions and travel behaviors. It investigates the responses of international airline groups to market changes, including strategies like competitive pricing, route adjustments, and technological investments. The report further evaluates the strategies of specific companies like British Airways and Vueling, highlighting their approaches to addressing challenges and meeting customer needs. It justifies the effectiveness of these strategies, emphasizing the importance of market research, service customization, and marketing efforts in achieving business success within the dynamic travel and tourism landscape.

Contemporary Issues in
Travel and Tourism
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Analysis of issues driving change.........................................................................................1
1.2 Analysis of different current issues.......................................................................................2
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................3
3.1 International airline groups businesses responses to change.................................................3
3.2 Strategies developed by businesses to provide response.......................................................4
3.3 Justification for the selected strategies..................................................................................5
TASK 4............................................................................................................................................6
4.1 Impact of issue and trends that drive changes in travel and tourism sector...........................6
4.2 Consequences of the businesses failing to respond to the market change.............................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
In current market scenario, the travel and tourism sector is having great level of success
that helps in economic as-well-as social development. The aspect of volatility in travel and
tourism may not be new, the industry is on a major part is dependent on the leisure travellers. It
has been identified that the industry has faced various changes in recent years as per the
transformation in diverse activities (Blanke, 2013). Travel and tourism industry is exposed to
fluctuation or changes in political, economic and health care areas. It is necessary for business
organisations to have understanding in regard to the contemporary issues that may influence the
working of the sector.
Current report will focus on effective understanding of diverse recent issues that may
impact the working of travel and tourism sector. It will also provide information about current
trends that promotes positive aspects in the industry. It will also analyse the responses of travel
and tourism organisations towards change activities. Furthermore, the impact of changes on
travel and tourism sector will also be evaluated in the report.
TASK 1
1.1: Analysis of issues driving change
As per the detailed study, travel and tourism sector is having great opportunity in the
market. It has been identified that the industry covers number of activities which are segmented
under sub sectors. Classification of activities can be as accommodation, transportation, food, etc.
Lack of collective working between these sub segments influences the economic growth and
perception of customers (Evans, 2012). In current market conditions, the industry is having
various opportunities in the international market and it also has great contribution to the
economic development as well. Moreover, industry is facing number of issues that drives
changes in the work culture of travel and tourism sector. Economic growth has the largest
support from this sector because it operates number of activities in order to meet needs of
customers. Classification of issues can be as security, technology, economic and environmental
(Hays, 2013).
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The ratio of terrorist attacks has increased in past years that impacts the customer’s
perception and influences negatively on the development of travel and tourism sector. In present
scenario, the consideration of security is essential section and it may facilitate in overcoming the
contemporary issue (Miguéns, 2008). During designing of tour plan, it is necessary for
management of company engaged in travel business to make sure that the security aspects are
properly maintained. For example, if security elements are not considered effectively then issues
such as theft may be faced by the customer. It will enhance the dissatisfaction level and impact
business in negative manner.
Other than this, the advancement in technology is also one of critical issues for the
business organisations. It is because; the working of travel and tourism sector is mostly
dependent upon technological tools. If technology is having rapid changes then; it will influence
the working in negative manner (Smith, 2014). For example, the company has invested in
allocation of technology but new booking technology has been introduced in the market. It will
force management to re-invest on technology changes as per industrial standards. Economic
issue is also one of the critical factors that need to be considered by the organisations for
sustainable development. For example, the UK economy is facing recession issue, these kinds of
conditions force management to cut down investment on employees (Witt, 2013). This kind of
change in work conditions influences overall growth of the sector. Further, people are less
willing to travel as their purchasing power has gone down. Moreover, environmental aspect is
also one of critical issues because global warming is increasing. Thus, it is necessary for
organisations to have changes in their activities so that issue of global warming can be cut down
(Hudson, 2011).
1.2 Analysis of different current issues
There are number of issues that impact business of travel and tourism sector in diverse
manner. However, as per case scenario, the Middle East and North Africa is considered as a
destination. Number of travellers visit to experience the culture of Middle East and North Africa.
Classification of key issues that impact the working of the sector are environmental, security and
economic. In addition to this, it has been identified that the terrorism is one of critical issues at
the destinations and it impacts customer perception in negative manner (Domegan, 2008). It is
significant for business to ensure that the proper protection is being provided to clients.
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Advancement in ratio of visitors in last 10 years has also enhanced the potential of terrorism and
theft. It is one of key reasons that the people are having negative perception and hesitate to visit
to these two destinations (Balmer, 2013).
Economic and legal issue also have negative impact on the work conditions such as
downfall in economic aspects creates unemployment conflicts. It also decreases the availability
of human resource within travel and tourism sector. In respect to this, the legal procedure of Visa
is also complicated that impacts business in negative manner. It is significant for government
authorities to introduce policies in such manner that the complexions in procedures can be
reduced (Robson, 2013). It will enhance the morale of visitors to spend their holidays in the
Middle East and North America. During recession, it is one of critical tasks for the travel and
tourism to manage the expenses and provide support to development. It is significant for
management to design system that can hold reserve which can be used during the time of
recession (Murphy, 2013).
Other than this, environmental issue also influences the customer’s perception in negative
manner. It has been identified that the increased ratio of visitors at the destinations also increases
the rate of environmental degradation. Thus, it is necessary for authorities and travel sector to
make sure that the policies are designed in appropriate manner so that issue can be overcome
(Hall, 2008). Further, the destinations have to face several environmental issues such as
pollution, resource depletion, endangerment of flora and fauna, climatic change, etc. It is
necessary for the business firms to have effective designing of policies so that goals and
objectives can be accomplished in desired form.
TASK 2
Covered in PPT.
TASK 3
3.1 International airline groups businesses responses to change
In order to have sustainable development the business firm needs to focus various
activities that can provide better response to change activities. As same, the international airline
group also provides a support to change. It has been identified that the customer needs changes
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in diverse way. In this respect, management of airline business focuses on market research
activities so that needs can be identified in appropriate manner. Moreover, the company also
design airline services as per customer requirement (Goodson, 2014). For example, customers
are demanding quality services at very low cost. In this respect, the management of airline
company adopts competitive pricing strategy so that goals and objectives can be accomplished in
appropriate manner. In addition to this, it can be said that the company also focuses on
transformation of operational activities as per changes in market trends. For example, the
customers are more attracted towards Asian countries (Frow, 2011). In this regard the
management of international airline firm enhances the number of flights on Asian routes. It also
facilitates in meeting emerging trends and lead business to impressive level of success.
Other than this, technological changes also have great impact on the working of
international airline company. Business firms also provide response to the technological change.
For example, the low carbon emission technology is being introduced in the market. It forces
management to invest on purchase of low carbon emission engine so that industrial standards can
be accomplished in appropriate manner (So, 2014). Moreover, in order to have effective
implementation of activities during change management of airline firms also focuses on number
of activities that provides detailing of the market. Pestle analysis and Swot is being accessed by
the firms to interpret the market conditions as it facilitates in designing of activities. Responses
are also provided in regard to the political and legal changes to meet goals and objectives
(Ritchie, 2011). It has been noticed that the government is having various changes in policies in
regard to improve working of the sector. In this respect, companies are also having changes in
organisational policies as per consideration of political and legal factors. During economic
changes the companies also have transformation in prices of its products so that they can easily
sustain in the market.
3.2 Strategies developed by businesses to provide response
There are number of strategies that are developed by the business firms to provide
effective response to the changes. In order to understand the responses in effective manner the
working of British Airways and Vueling will be evaluated. It has been identified that the
businesses focuses on effective identification of needs so that strategies can be designed in
appropriate manner (Pesonen, 2013). British Airways mostly focuses on the price changing
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strategy to provide better response to the change activities. If economic conditions are good then
management of BA focuses on the decrease in pricing of products and services so that better
profit can be attained (Morrison, 2013). On the other side, if economic conditions are not good
then management reduces pricing of products.
Vueling focuses on changes in its services as per consideration of market needs and
emerging trends so that better response can be provided. Company also focuses on the
promotional activities so that better awareness can be created among employees in regard to the
changes. It leads business to impressive level of success. It has been identified that the
companies also consider transformation in marketing mix elements effectively so that goals and
objectives can be accomplished in desired way (Moriarty, 2008). Marketing mix and strategies of
marketing are being used to overcome the weakness and enhance the business of travel and
tourism. Changes in package of flights is also one of significant activity that helps in attracting
more customers and provide better response to change. Company make sure that the customers
are having selection of services as per their interest.
Other than this, both organisations also focuses on various sales promotion activities so
that customers can be targeted in desired form (Ritchie, 2011). Various promotional strategies of
marketing are also to be used such as multimedia advertising, PR, etc. These kinds of
developments facilitate in meeting goals and objectives.
3.3 Justification for the selected strategies
As per the detailed study, the selected strategies by the British Airways and Vueling are
appropriate for the business because it facilitates in meeting goals and objectives. It has been
identified that the strategies selected to implement in airline sector, helps to bring transformation
and improve services for better opportunities in the international market. As the Airline sector
provides services in regard to transportation between different destinations. With an assistance of
airline sector the people used to travel at different geographical areas so the implementation of
better marketing strategies will satisfy the customers in the best possible manner (So, 2014).
Proper designing of flight packages as per customer needs also facilitates in satisfy their
expectations. Market research is also appropriate for the businesses because it helps in identify
number of key needs that required to be consider for better success. Preferences and choices
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identification helps in offering services in appropriate manner and lead business to impressive
level of success (Frow, 2011).
Marketing activities designing is also beneficial for the airline businesses because it helps
in creating better awareness within market. It is also advantageous to have better sales and attain
optimistic profit margin ratio. Customization in airline services as per industrial standards and
need of travellers facilitate in generating more revenues. Marketing programs and effective
access to promotional techniques assist in attracting customers (Frow, 2011). Changes in tax
rates and duties that are designed by the government also influences business in diverse manner.
It means the consideration of policies in appropriate manner lead business to various
developments (Goodson, 2014). Pricing strategy selection is also suitable for the businesses
because it facilitates in attracting more and more customers. Use of competitive pricing provides
ability to sustain in the market because it allows business to offer price at low level as compared
to the other rivals present in the market. Consideration of market conditions during design of
activities is also beneficial because it facilitates in meeting goals and objectives effectively.
TASK 4
4.1 Impact of issue and trends that drive changes in travel and tourism sector
According to given case conditions, the Myla travel is considered as one of leading travel
agency company that provides number of luxurious services for the travelers. It has been
identified that the company is more focused towards assessment of activities that are performed
by its competitors. This is because it provides effective understanding of key issues and trends
that is beneficial for further developments (Hall, 2008). In given case scenario, the director of
independent travel has stated that there are number of issues that companies faces in travel and
tourism sector. Performance of big giants in the sector also have great impact due to issues.
Thomas Cook can be one of key example. Moreover, it further impact as well as drive change
within the travel and tourism sector. Classification of key issues can be as Euro crisis, cost of
fuel, etc. Euro Crisis- It has been noticed that the Thomas Cook Plc has transformed its work style
by analyzing euro crisis in appropriate manner. Number of changes are being placed in
leisure activities in order to attract customers and lead business to impressive level of
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success (Murphy, 2013). As, with the euro crisis, it has also been witnessed that the
income level of people has also decreased due to euro crises which has also increased the
rate of unemployment. These kinds of activities have negative influence on the business
of Thomas cook because low income level influences spending level of people on the
holiday packages.
 High fuel costs- Changes in fuel prices also have great influence on the working of the
organizations. This is because the increase in fuel price enhances the pricing of
transportation services (Robson, 2013). It means business must have pricing decisions as
per cost of fuel. In other aspect, the advancement in the fuel costs also forces Thomas
Cook Plc to have increase in overall budget. It facilitates in meeting objectives and lead
business to impressive level of success.
In addition to this, directors of Myla travel also addresses various trends that need to be
consider in effective manner for sustainable development. With an enhanced level of detailing,
the business firm can focus on effective designing of strategies that boost opportunities. In regard
to this, the E-tourism is referred as one of significant aspect. Application of various information
technology tools within work culture also enhances the productivity of the Thomas Cook
(Blanke, 2013). It also facilitates in delivering of the services and meet customer needs
effectively. Use of internet has also increased so customers are using it for booking of e-tourism
packages and other plans. It also provides convenience to the customers and drive change in the
activities and operations of Myla group.
4.2 Consequences of the businesses failing to respond to the market change
As per the given case scenario, business firms are facing number of issues in regard to the
operational activities. It has been identified that the changes in market trends also have impact on
the work culture of the Myla group. However, if entity has failed to provide appropriate response
to the change then overall results can be influenced in diverse way.
Operating losses- It has been noticed that if Myla group fails to provide effective
response in respect to various market changes. In such kind of situation, it is possible that the
business may face operating loss issue (Evans, 2012). It is necessary for business to understand
this aspect in appropriate manner. For instance, fuel prices increase also enhances the charges of
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airline services. It has great impact on the traveling sector and may arise operating losses for the
firm.
Decrease in the leisure and luxurious travel products- Customer need changes rapidly
so it is necessary for business to consider it in appropriate manner. Another consequences may
create failure issue is decrease in ratio of customers and visitors. If products are not according to
the needs then it may be possible that the ratio of customers may decrease that will influence
luxurious travel products (Hays, 2013). With the Euro crisis it may results in decreasing the
individual consumption level that further decreases their power to purchase the leisure and
luxurious travel products.
Negative image of the travel agency- It is also necessary for management to focus on
activities that may create positive image of company in the market. Furthermore, if the
businesses fail to respond to the market change then it may also results in enabling negative
image of travel agency in the travel and tourism sector. For example, the current trend is to offer
services with a help of internet so that better convenience factor can be provided (Miguéns,
2008). If management of Myla travel is not focused towards internet use then it may influence
business in negative manner. It may also create negative brand image in the market so
management must consider it in appropriate manner.
CONCLUSION
As per the detailed study, it can be concluded that the contemporary issue is considered
as one of significant aspect for the company. If any business firm is not considering issues and
trends in appropriate manner then entity may face critical issues. It has been identified that the
travel and tourism industry have faced various changes in recent years as per the transformation
in diverse activities. Travel and tourism industry is exposed to fluctuation or changes in
apolitical, economic and health areas. Eco-tourism, sports tourism, heritage tourism, etc are key
trends in current market conditions so businesses must have development as per consideration of
these aspects. Moreover, technological use is also beneficial for the sustainable development of
the travel and tourism sector.
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REFERENCES
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organisations. Current Issues in Tourism. 16(3). pp. 211-239.
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tourism: a review. Tourism Review. 68(2). pp.14 – 30.
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Smith, S. L. 2014. Tourism analysis: A handbook. Routledge.
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