Macro-level Issues in the Travel and Leisure Sector

Running Head: MANAGEMENT 0
Business Environment
Student details

MANAGEMENT 1
Contents
Introduction....................................................................................................................2
Travel and Leisure Sector..............................................................................................2
Task a: Macro-level Issues.........................................................................................3
Task b: Impacts at Micro Level.................................................................................6
Task c: Challenges & Suggestion..............................................................................7
Conclusion......................................................................................................................8
Bibliography...................................................................................................................9

MANAGEMENT 2
Introduction
From airlines, cruise lines, tour companies, theme parks, and hotel to the restaurant, all the
services and products fall under the categories of travel and leisure’s sector. There are some
necessities of travel and leisure sector such as dining, entertainment, lodging and
transportation and the combinations of these necessities offered to the tourist. Tourist chooses
these combinations for his trips and holidays (Santos, 2004, pp.393-410). In addition, the
travel agencies might do the planning of trips and holidays for tourist, depends on their
requirements. In the recent scenario, people have written guides of major destination
available on internets, they gather all the travel, and leisure information such as hotel
bookings, making plans and accommodation booking from the internet (Vasudavan, 2000,
pp.45-54).
The ‘Travel & Leisure Industry’ is been one of the world’s largest industry, which is
increasing rapidly worldwide. Moreover, the purpose of this industry is to provide leisure
travels to the tourist (Richard & Zhang, 2012, pp.568-93).
In this report, there is a discussion on the macro level issues of travel and leisure sector and
its potential impact at the micro level on both the sectors. In addition, the discussion also
contains the challenges and suggestion for these issues.
Travel and Leisure Sector
The word leisure means free time in which people wants to enjoy. The Leisure Industry is
refers to is that part of the industry, which focused on recreation, tourism, sports and
entertainment related services and products (Swarbrooke & Horner, 2012). Whereas, Travel
Industry refers to that part of the industry, which focused on railways, cruise lines, package
tours, car rentals, hotels and travel insurance-related services and products. Both the

MANAGEMENT 3
industries are interrelated as the supply chain of these sectors involve many services apart
from transport and accommodations such as restaurant, entertainment shows, clubs,
waterparks and sports activities which are preferred by tourist in their vacation planes
(Brotherton & Wood, 2008, p.90).
Task a: Macro-level Issues
The ‘Travel & Leisure Industry' has many significant issues at the macro and micro level in
the dynamic business environment. These issues are discussed with the help of ‘PESTEL
Analysis' in the below paragraphs. In considering the factors, which are included in the
analysis provides the macro level issues for the industry in the business environment. These
factors explained in the following points:-
a. Political Factors
In Travel & Leisure sector, it is very important to consider the political condition and stability
of the country (Morello, 2019). It is done to determine the actual picture of the destinations,
which attracts the customer attention towards it. On the other hands, if the place involves the
activities such as warfare, terrorism, violence and coups. These activities give negative
impacts on the development of travel and leisure industry. Strikes, travelling norms, change
in the rules and regulations of the government are the other factors, which can also harm the
image of the destinations.
This factor is a macro level issue for the travel and leisure sector as if there is political
instability in the country, it can create negative publicity of the destination and causes
decrease in arrival of tourist. In addition, if the country has the good political conditions, it
will increase the overall profitability of the business.
b. Economic Factors