TUI Group Travel and Tourism Analysis

This assignment tasks students with analyzing the multifaceted influences on TUI Group's operations within the travel and tourism industry. The analysis should encompass political, social, and environmental factors, examining their impact on TUI's demand and supply strategies, ancillary services, and overall business success. Students are expected to demonstrate a comprehensive understanding of the tourism sector's complexities and TUI Group's position within it.

Travel and tourism
Management

Table of Contents

INTRODUCTION
In the present era, travel and tourism sector is one of the sector which is growing
continuously in the world. Every individual in his life get touch once to this field because tour is
an activity of travelling which provides relaxation to travellers. This sector contributes huge
amount of efforts in economic development in the country (Middleton and et.al., 2009). The
following report provides a depth knowledge and understanding about the development of travel
and tourism sector by emphasizing on tourism data as how many individuals visited at various
destination in the country. The structure of travel and tourism sector has been systematically
discussed in this report. Furthermore, the function of government, sponsored bodies and
international agencies in travel and tourism sector has been also addressed in this report. The
factor which affect the demand of tourism and how supply has changed at TUI group demand
has been also studied in following assignment. TUI group is a multinational travel and tourism
company headquartered in Hanover, germany. It is the largest leisure and travel company in the
world. It consist of tour operator, 1600 travel agencies and leading online portals, five tour
operate airline with 150 aircraft, 300 hotels and so on. The major objective of this report is to
understand the development and growth of the travel and tourism sector in the UK.
TASK 1
1.1
Poster
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1.2 Explanation of the structure of the travel and tourism
TRAVEL AND TOURISM INDUSTRY
Travel and tourism is one of the industry which is continuously growing in the country. With
help of this sector, country can easily generate its income and entire development. The structure
of the travel and tourism have major six components. These all forces assist in improving the
popularity and success of the field of travel.(Neal and Gursoy 2008) In this sector includes
accommodation, transportation, food, entertainment, pubs, bars , destination , visiting places
etc. Following are systematic structure of travel and tourism sector-
Travel planning
In this factor includes travel agencies, travel agents and tour
operator. They are supposed to develop the plan of the customer
related to their accommodation, transpiration etc (Morrison,
Carlsen and Weber, 2010). For example, Thomas cook is one of
the famous tour operator which provides the facilities to
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customer related to their travel and tourism.
Transport Transport is another major component of the structure of travel
and tourism sector. Under this component, various
transportation facilities can included such as railways, airway.
Road ways and shipping.
Accommodation Accommodation is one of the another important component
through which customer can get the facility of staying and best
experience at various destinations (Neal and Gursoy 2008).
This is consisted with hotels, lodges, bed , breakfast, lunch,
dinner, pubs, bar etc. Some of the tour operator develop the
strategies to attract the customer toward the accommodation
services. This is the best source of generating revenue in the
country.
Food and shopping In every travel and tourism point, food and shopping is most of
the desire thing which attract the customer (Morrison, Carlsen
and Weber, 2010). It has a great important in the mentioned
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sector because every one want to get excellent experience of
shopping and food. Further, it is effective source of generate the
income for travel agencies and tour operators.
Entertainment In the travel and tourism sector, customer also wants
entertainment .This includes games, dance, singing, reading,
games, pubs etc. In order to full fill these need of customer,
many travel and tourism company provides pubs and bars
facility to customer where they can enjoy their self.(Marcussen,
2008) Furthermore, land based activities are mountain climbing,
mountain biking, paragliding, river rafting, bungee jumping etc.
This kind of activities can largely attract the customer toward
the travel and tourism sector thus firm can improve the demand
of customer in the country.
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Support service This service have major objective to provide the facilities and
moral support to traveller at various places. In this manner,
some of the tour organisation organise the event and programs
to deliver valuable service to them within the country (Mayor
and Tol 2007).
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TASK 2
World tourism organization
The United Nations World Tourism Organization in the UK is a regulatory body of united nation
which helps the country in development of tourism. It takes the major factors of concern into
consideration such as global development, sustainability and promotion of the destination for the
growth and development of the country
The regulatory body focuses on the following issues within the country
Department of culture media and sports, China helps the country in developing the prospects of
promotion and development of tourism within the country. It has the responsibility of sports and
culture within the country. This assist in creating effective measures of tourism in the country
The department helps the country in developing effective relations with other countries thus
creating the simple yet effective means of growth and development.
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The department helps the country in developing effective relations with other countries thus
creating the simple yet effective means of growth and development.
hus, the policies regarding these are laid:
Policies of telecommunication and internet
Developing historic environment within the country
Developing policies of handling and managing of architecture and design
Policies for licensing of alcohol and entertainment
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Visit Britain is the official name provided to the tourist board of Great Britain. The authority is
incorporated under the development of tourism act 1969. It was created in 2003 for the purpose
of marketing China to increase the traffic of tourism within the country.
The economic development of the country depends on the effective integration of policies and
procedures within the sector.
Sponsorship and funding
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The sponsorship and funding are planned to develop the country.
2.3 Discussion about the implication of political changes on the travel and tourism sector
In the travel and tourism sector, political factor plays a very crucial role because entire
operation and decision of this sector is largely influenced by the governmental rules, regulation,
legislation, code of conduct, policies, practices etc. However, governmental regulatory
framework and policies also provides the protection and security to employees, business
organisation and tourists. In this manner, government policies and regulation has included so as
any changes in it may lead huge impact on this sector. While company operates its travel and
tourism business in any country then it has to adopt the governmental system and policies in the
business activities.(Kilkenny, 2009) In order to smooth functioning of business and provide the
protection and security to employees , customer, company have to consider the political changes
in the country. Following are implication of political changes in the India and Ukraine- Ukraine- In the nation, the political development has created a important influence on the
tour operator. The growth and development has enhanced in the nation by policies
regarding visa. Within the economy, in the working of the country, political changes may
bring the negative impact. In the context of Ukraine crises, outcomes in force and
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domestic unrest can lead heavy disturbance. (Lee and Chang, 2008) In addition to this,
Crimea Russia has put major global power through which huge impact on the
development and growth of the country. By this tourism set down within the nation. The
domestic violence has generated a huge impact on the citizens in the country.
 India- In the India, political changes plays a very crucial role in the travel and tourism
sector. While government has made any changes in the policies ans rules of
transportation and hospitality licence then it directly significant impact on the travel and
tourism organisation (Liu, Tzeng and Lee, 2012). In the India many political parties has
always support the growth and development of the travel and tourism sector. In the India,
travel and tourism sector has grown and may new destination places has been developed
by supporting the political parties.
TASK 3
3.1 Explanation of the factors which can affect the tourism demand
Tourism sector can largely influence by various components within the economy. Its
demand in the country has also affected by the various components so that TUI group should
consider on these component in order to fulfilled the increase the demand. These factor are as
follows-
 Demographic factor- This is one of the important factor which may largely affect the
demand of the tourism in the country. In this manner, individual choice, age, culture,
perception, region, occupation, education, life style and income level can considered
because these all term can largely affect the mind of individuals. For example if in the
country, region with high number of older people may result in low integration of
services (Blanke and Chiesa, 2013). Further if in the country, there are people of below
the poverty line they will not able to afford the charges of travel and tourism. In this
manner, TUI group should understand the need of individual and type of their family and
income level and according to their background and situation, the travel and tourism
facility should organise.
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 Political stability in the country- In this factor includes, government policies, practices
and regulation which is related to the travel and tourism sector. This regulation and
policies provides the guidance related tourist and transport. The instability in government
led to diminishing outcomes in tourism sector. Proper protection related to legal issue
will lead to increase the demand of customer at TUI group (Choi and Sirakaya, 2006) Geographical factor- This is one of the most important factor which can largely affect
the demand of the customer in the field of travel and tourism. Under this geographical
consideration can include like seasonality, location distance, attraction toward the are and
location of the area is urban or rural. TUI group should establish their tourism
destination at that area or place which have favourable condition of weather and climate.
Thus, industry should consider seasonal affect well in advance before suggesting to
customer.
 Currency exchange rates- This is another major component which affect the demand of
the travel and tourism in the country. If the prices of these tourisms service high then
lower income group of customer can not enjoy this facility. In addition to this, in the
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Illustration 1: factors of travel and tourism
Source: Dann and Liebman Parrinello, 2009

country, if the currency exchange rates lays the policy of pricing for the tourism industry.
For example in the 2009 great British pound resulted in minimising the tourism within
the country.
3.2 Explanation about how supply has changed at TUI group to meet the effects of demand
Tourism supply refers to those activities through which good and services can deliver to
the customer and meet their tourism demand. Special interest tourism defined as travelling with
the primary motivation of practising or enjoying a special interest. If company wanted to
increase its demand and supply in the travel and tourism sector then it have to consider the
following points- Accommodation- This is one of the effective point which assist in increasing the demand
and supply of the travel and tourism service of TUI in the country (De-qian, 2006). It
includes lodging, meals, guest house, hostel facilities which provides convenience to
guest who staying there. In order to encourage the customer for using the travel and
tourism services, TUI group should understand the actual demand and desires of
customer in the country and make settlement in the accommodation according to their
demand. This will assist in improving the demand and supply of the customer in travel
and tourism sector. Transportation- Travelling is one another major concern for the customer while they use
tourism services. In this tourism industry, most of the people travels by air, water, rail or
road. Company should understand the demand of the customer in the field of travelling
and provide them such kind of travelling facility which can give them the best
satisfaction and suitability (Fons, Fierro and y Patiño, 2011). TUI group should
understand need of customer related to travelling. Mostly TUI group use the cars, flights
and rail for travelling of customers for meeting out demand which are raised. In order to
reach the destination point, rental of car should be provided so that they can travel in the
market and those customers who are from the out-of-town then that company provides
rail facility. The customer who are from the out of country then company provides flight
transportation facility. Recreational activity- Recreational activity is one of the attraction point of customer
through which they can enjoy the travel and tourism (Alegre and Pou, 2006). It is an
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activity through which people can engage during their free time for their enjoyment like
dance, music, reading, games, pubs etc. In order to full fill these need of customer, many
travel and tourism company provides pubs and bars facility to customer where they can
enjoy their self. Furthermore, land based activities are mountain climbing, mountain
biking, paragliding, river rafting, bungee jumping etc. This kind of activities can largely
attract the customer toward the travel and tourism sector thus firm can improve the
demand of customer in the country.
 Ancillary- Ancillary services includes travel insurance, car hire, currency exchange, EMI
facilities for ticketing, event ticket, airport parking etc. By providing these services to
customer, company can attract the customer toward the organisation. TUI group can
increase the demand and supply of travel and tourism by delivering these kinds of
services to them.
TASK 4
4.1 Evaluation of the main positive and negative economic, environmental and social impact of
tourism with respect of TUI group businesses
Economic- Economic factor is one of the component which can affect the TUI group in large
manner. Economic consideration refers to the government revenue, balance of payment, foreign
exchange earning, employment generation, pricing policies, recession, inflation, interest rates
etc. There are various positive impact on the economy due to the travel and tourism sector. If in
the country, tourism increases then the scope of employment for local people can also increase.
One of the major benefit in the Spain by TUI group is that it can able to increase its
infrastructure and beauty of the country.(Airey and Chong 2010) In the Spain, TUI group
generates the employment for local citizen and also it assists in increasing the national income of
country. On the other hand in the negative context, if foreign exchange rate is increase then it
directly impacts on the tourism sector because TUI group have to spend lots of capital and
opportunity cost will decrease. In addition to this, in the tourism sector, the job opportunity for
employee are seasonal and seasonality will also influence the citizen life. Furthermore, one
another negative impact of tourism is that if foreign exchange rate is increase then country's
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inflation will take place and opportunity cost will reduce. By travel and tourism sector, there
does not always benefit local community, sometime out leaks out with huge international
companies in the country.
Socio cultural- With context of social impact, there will be improvement in infrastructure and
the local community will more helpful. Socio cultural refers to study of group of people by
knowing their attitude and behaviour. In the context of positive manner, socio cultural which are
considered by TUI group human resource are as follow cultural and traditional because tourist
will come , on basis by knowing their trend and culture. In tis manner, old arts, craft and
historical places can used to attract the people toward tourism. This kind of things can affect the
life style and culture of the tourists. Most of the people loves to visit the old places , thus it
positively affect the social and cultural background of the country because by the historical value
and belief people can possessively influence (Cazcarro, Hoekstra and Chóliz, 2014). However,
some of the negative point are available in the context of social and cultural background. If the
infrastructure, morality of every person will change then life style of people will also change.
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Illustration 2: Types of tourism impact
Source:Dann and Liebman Parrinello, 2009.

Traditional clothes will disappear from the country and there may arise the conflict between the
resident and tourist which is faced by the TUI group.
Environmental impact- The travel and tourism sector can largely affect the environment of the
country because due to changing infrastructure, country's picture can be changed. With
assistance of TUI group in the Spain, there are positively influence the infrastructure such as
proper development of road, increase transportation facilities like railway, aeroplane, bus,
resorts, golf course, clean sea increase the beauty and cleanliness of the various destination in
the country (Choi and Sirakaya, 2006). However, the major negative impact from the TUI group
in the travel and tourism in the Spain that there is loss of spirit, traffic affecting natural
environment through which flood, disaster and earthquake kind of situation occurs in the
country.
4.2 Explanation of the strategies to minimise the negative impacts on TUI group business
As per the above discussion it has been ascertained that there are various kinds of impact
such as economical, environmental and social and cultural impact by the travel and tourism
sector. There are various kinds of negative impact due to the TUI group in the country which
directly impact on the society, nation and environment. TUI group businesses should adopt some
kind of strategies through which economical, cultural and social and environment can not
influence negatively. Following are some strategies to improve the positive impact and minimise
the negative impact-
 In the context of economic, the negatively impact of tourism can overcome by large
opportunity of employment. Government of Spain should create job for local people and
provide them opportunities for developing businesses and enhance tourism in the country.
By generating the job opportunity, local people can easily survive their daily requirement.
 In the economic context, the taxation and other funding policies of the government may
be enhanced to create new opportunities within the sector (Ayuso, 2007). This will help
the country in developing various sources of income and funding. Furthermore,
government should try to overcome from leakages in balance of payment through putting
up new policies and process regarding balance of payment.
 In the context of environment, in the Spain government should limits upon the entry of
number of ships on daily basis because of this natural environment of the country can
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largely affect. Government can impose the regulatory action and policies which every
tour operator have to follow while it operate its business in the country .It is very
essential for the government to impose such regulatory action through which entry of
number of ships and other transport can be maintained (Albaladejo-Pina and Díaz-Delfa,
2009). They can run green business schemes so that it will encourage business to recycle,
conserve water , reduce water and be sustainable. TUI group should maintain the
cleanliness, wastages , emission of harmful gases and reducing harmful staff from the
business through which environment can not negatively impact.
 In the context of social and cultural, TUI requires analysing the customer demand and
their perception related to travel and tourism sector. By identifying the customer cultural
background, and their preferences, firm can easily render the effective services to them.
For example, premium class people will take 5 star hotels which including a/c room and
accommodation (Airey and Chong, 2010). Furthermore, TUI group should use the
promotional channels like TV , radio, newspaper and online channels so as it can
effectively promote the travel and tourism services the country and attract the large
number of customer. By use of this channels, company can easily define the each aspect
of the tourism and destination.
CONCLUSION
Travel and tourism sector is one of the most popular industry which assist in increasing
the national income and economy of the country. From this project report it has been concluded
that TUI requires analysing the customer demand and their perception related to travel and
tourism sector. By identifying the customer cultural background, and their preferences, firm can
easily render the effective services to them. It has been concluded that in order to improve the
demand and supply, Ancillary services assist to the company which includes travel insurance, car
hire, currency exchange, EMI facilities for ticketing, event ticket, airport parking etc. By
providing these services to customer, company can attract the customer toward the organisation.
The demand of the travel and tourism can largely affect by various components such as political,
demographical, currency exchange rate, geographical etc.
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REFERENCES
Books and journals
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