Tourism Industry Trends and Challenges

This assignment delves into the current state of the tourism industry. It examines various factors influencing the sector, including technological advancements, changing consumer preferences, environmental sustainability concerns, and economic fluctuations. The analysis draws upon statistical data on tourist arrivals, spending patterns, and industry growth to highlight key trends and challenges facing tourism businesses globally.

CONTEMPORARY
ISSUES IN TRAVEL
& TOURISM

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
1.1 Analyze issues which are currently driving change in travel and tourism sector for
London: .......................................................................................................................................3
1.2Analyse current issues using appropriate methods and resources for London destinations: .5
TASK 2............................................................................................................................................6
2.1 Evaluation of current trends influencing change in the UK travel and tourism sector: ........6
2.2Analyse trends using appropriate techniques and resources for a London: ...........................7
TASK 3............................................................................................................................................8
3.1 Analyzing the way in which travel and tourism businesses can respond to change..............8
3.2 Developed strategies of Thomas Cook to respond the changes.............................................9
3.3 Justify strategies of Thomas Cook business could respond to change................................10
Task 4 ............................................................................................................................................11
4.1 Analyses the impact of issues and trends that have drive change by Thomas Cook ..........11
4.2 Discussion on the consequences of business failing to respond the market change. ..........12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14
2

INTRODUCTION
The movement of people to countries or destinations outside their common environment for
personal or business purpose, this change is knows as travel and the people are knows as tourist
or visitors. The UK is the world’s 8th biggest destination, 34.8 million people have visited UK in
2014 and spent 21.73bn money (BBC news, 2016).The project is based on Thomas cook: tours
and travels company which is a leading integrated travel and travel related financial services. It
operates its business in 92 cities across India, Sri Lanka and Mauritius (About Thomas Cook,
2016). This project includes issues which have currently changed the travel and tourism sector
for a London. It is also analysis that current issue through using appropriate methods for London
destination, currents trend which influence UK travel and tourism sector. The impacts of trends
which drive change in UK travel and tourism sector. Furthermore, strategies for travel and
tourism sector and consequences of businesses failing to respond to market change. The
Different strategies will be applied and how to develop those strategies by Thomas cook to
respond to change in market.
TASK 1
1.1 Analyze issues which are currently driving change in travel and tourism sector for London:
It evaluates that there are various aspects which are currently driving change within travel
and tourism sector in London and they are given below:
1. Technology Development:The issue which is changing the travel and tourism sector
in London is technology development and advancement. The impact of technology
advancement in this sector is that the connectivity between people and countries are
increasing day by day because of the technology up gradation. People are becoming
more aware about tourist destination, places and new attractions. The online presence
of information has also increased number of tourists in the tourism sector in London.
The technology development helps to this sector to marketing their services and
awareness of destination to attracting people more to visit their country(Ghimire,
2013).
2. High available of income: In the present time, people are getting high income so due
to this their spending capacity is also increased. Now, the individuals are more
capable to spend their money on their leisure activities and going outside in their
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vacations other then fulfilling their basic needs. The impact on travel and tourism
sector of this aspect is positive and helps to attracting people for London destinations.
3. Low cost cruise/airlines: In present time,people are involved to traveling to visits
different places or destinations by airlines services or cruise. People use airlines and
cruise to visit different places of their city or country because of low cost availability
in the airlines services. This aspect also impact on travel and tourism sector and helps
in increasing tourist in London and changes in this sector.
4. Educations and career : career: Presently, people are becoming more aware about
their studies and qualification. people get information related about their studies and
career through internet. The high income group or people as well as scholar are
travelling to London or other cities for higher degrees. The individuals are involved in
making the career outside countries so that the people travelling for their jobs and
career. The mentioned sector also provides many institution holiday packages though
attracting services for students. This aspect also forces to adopt changes in travel and
tourism sector.
5. Industry association: he travel and tourism sector are also impacted when other
industries change their strategies. The industries are airlines, hotel industry, and
restaurant industry and so on. These all are inter-related and inter-dependent on each
other. The marketing strategies of these industries are affecting the success and
driving changes in the mentioned sector.
6. Increased marketing competition: In UK travel and tourism industry day by day
competition is increased in among all tour and travel companies. The impact of this
aspect is that the companies of London have created new services which give more
benefits to the visitors. They provide services to tourists such as taxi services,
provides hotels and tour guides and other services. This high level service attracts
visitors to visit their places. This aspect is an issue which is currently driving changes
in tourism sector of London.
1.2Analyse current issues using appropriate methods and resources for London destinations:
It is evaluates that The current issue using appropriate methods and resources for
London destination. They are given below:
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 world tourism report: This is the source where issues identified for mentioned sector.
according to world tourism report UK has been highly praised and the UK is the top
number of country in holiday destinations. The people generally go UK for holidays and
enjoy. There are best designations in UK where high number of people visits in their
vacations. According to figure from the office for national statistics in 2013 32.8 million
visits to the UK and in 2014 34.8 million people visits UK and spend their money
£21.73bn. According to this data the visits increased 6% in 2014(BBC news, 2016). The
growth of visits to the UK were six million visits and increased 20% in 2015 than
2010(Visit Britain, 2016). the ceramic poppy display at Tower of London visited by 5
million people in 2014(Kitching, 2016). according to Travolution Innovation Report
2016, there are 504,006 people employed in the travel and tourism sector in the UK and
16,452 companies in 2015(Leisure tourism,2016). Value of Tourism to the UK Economy
is £126.9bn (9.0%) of UK GDP.
 Financial report: according to world financial report the UK is affordable country for
the most of the people. The rates of UK hotels, restaurant, motels and other famous
places are available for the visitors at very reasonable price. The tours and travel
company provides many offers to tourists during the time of season. Foe example when
most of the people visit across the world then the different company provides different
offers to them. Sometimes, people have different kind of holiday packages by referring to
various tours and travel companies. This also help to increasing economic growth of UK
and they have increased already their economic growth at a very certain rate(Peter, 2011).
 Political reports: Political reports also play a crucial role in the travel and tourism
industry. The huge impact of legislation and political rules on country in which the
visitors are travelling. In UK politics play an important role because they still have king
and queen and government also working in country. The both are working as a main body
of UK, they are work in combination and helps to sort out different kinds of problems of
country. The both are helps to tours and travel company to sorting out their problems so
that feel comfortable and and no more problems are happen in front of them. The
legislation and laws are also created by both main body of UK.
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TASK 2
2.1 Evaluation of current trends influencing change in the UK travel and tourism sector:
It is evaluated that the currents issue which influence change in the UK travel and
tourism sector. The major trends of travel and tourism sector in UK are the different kind of
activities. The trends are given below:
 Inbound tourism: When the people travel within the country of UK or boundary or
when local resident travel outside the area of the country then the calculation took place
in inbound tourism. According to 2015 figure the inbound tourism to the UK is 35.8
million visits which is 4% unto 2014 and the sixth regular year of growth(Visit Britain,
2016). London is the most famous destination to visit for tourists according figure of
2011. in 2011 15.3 million visitors visit in London and spent their capital over
£9.4bn(UK tourism statistics, 2015).
Headline trends in inbound tourism to the UK
Year Number of Visits
(m)
Spend
(£bn)
Average spend per
visit
Average nights per
visit Nights (m)
2003 24.715 £11.855 £480 8.2 203
2004 27.755 £13.047 £470 8.2 227
2005 29.970 £14.248 £475 8.3 249
2006 32.713 £16.002 £489 8.4 273
2007 32.778 £15.960 £487 7.7 252
2008 31.888 £16.323 £512 7.7 246
2009 29.889 £16.592 £555 7.7 229
2010 29.803 £16.899 £567 7.6 228
2011 30.798 £17.998 £584 7.6 235
2012 31.084 £18.640 £600 7.4 230
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Year Number of Visits
(m)
Spend
(£bn)
Average spend per
visit
Average nights per
visit Nights (m)
2013 32.692 £21.258 £650 7.5 245
2014 34.377 £21.849 £636 7.7 265
2015 36.115 £22.072 £611 7.6 2
This table shows that shows trends of inbound tourism of UK for the period of 2003 to 2015
based on Office for National Statistics International Passenger Survey(Visit Britain, 2016).
the no of visits in 2015 is increased 5% , after many years or growth since 2010.
 Outbound tourism: when the resident of other countries visit in the nation's area they
are under in outbound tourism. In 2015 65.7 million visits were made from the UK
destinations(Briefing paper, 2016).
 Sports tourism: This tourism is something that the visitors to come to watch a popular
sports due to popularity. For example: football match is very famous sports so in 2014
football world cup, the number of customer were so high. If the purpose of travelling is
sports related it is called sports tourism.
 Leisure tourism: when people visit destinations without any specific reason just for
entertainment then it lie under the leisure tourism. Other purpose of this kind of tourism
such as spiritual tourism, business purpose, adventure tourism and heritage and culture
also major purpose of tourism(Raj and Griffin, 2015.). This type of tourism the tourists are
also increased in UK to visit destinations in last last several years.
2.2Analyse trends using appropriate techniques and resources for a London:
It is evaluates that there are different types of techniques and resources which we are
using in current scenario to increase the market of travels and tourism sector for London. Market
research is one of the most effective technique which is followed by many companies already.
This research helps to people in many ways when choosing a destination. The research helps to
people in deciding the locations that where they want to travel. Through this source the public
can identify that which places in the world is good for travelling and effective. People select
destinations of UK for their holidays and many purpose. First is that the environment of UK is
very beautiful and pleasant which is attraction part of UK. The people behaviour in UK is that
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they respond and the UK government also given support to visitors. These factors are makes the
UK destination so special. In the London they have got superb hotels, motel, restaurants and also
available tourist guard and taxi for their visitors which provide by travel and tourism company at
reasonable price for tourists. Furthermore , the other services of air department services in which
UK government provides lots of help to their visitors. In the UK they are having airports in
almost all the cities of the country.
The other resource or technique through which public can easily choose their holiday
destinations for travelling. Travel and tourism department of London works through this
technique in an effective manner. Industry analysis is also a another resource through which
travel and tourism of London has made an impact in this global world. Globalization has taken
this global travel market to its peak and it has helped a lot to the new modern world and this
present generation and various travel and tourism companies. This resource also helps to public
to travelling to different destination on a business purpose trip. Presently people lea to visit UK
for different official trip and they are quite successful due to the environment and condition they
get in UK cities. These are resources and techniques which travel and tourism company of
London keep in their mind for a successful and prosperous destination plan. The company should
be keep in their mind the visitors needs and wants and they changes their strategies according
their needs which helps to attracting more tourists to their destinations and success of travel and
tourism company In UK.
TASK 3
3.1 Analyzing the way in which travel and tourism businesses can respond to change
Travel and tourism can respond to changes by analyzing the current market demand.
. Many changes come with the period of time , so Thomas Cook required to respond the changes
for effective business. It is necessary to respond effectively to changes.
Like, in today’s scenario, chances of terrorist attacks have been increased to a high
extent because of which people get scared to visit any nation. Example, Britain is one of the
safest nations in the world for tourists. That is the reason; every year, maximum tourists visit this
nation. However, recently, the risk of terrorist’s attacks has increased (Burns,and Holden, 1995).
Due to this, Thomas Cook is needed to make policies for safety and security of tourists and
successfully running in the travel and tourism sector of UK.
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Development of new technology has a great impact on tour and travel agency. For
example: through internet, customers are able to reach destination by booking their own ticket
online. Thomas Cook has responded to these technological changes by making their own
websites, providing full details of their tour package including transport facilities and luxury
hotels in order to attract large customer base (Burns, 2000). Firm gives online booking facility
and email address in their websites. Also by providing facility for payment through debit and
credit card, it is capturing the attention of more customers.
Recession have a huge impact on tour and tourism industry. The cost of traveling is
increasing and thus, business travelers tried to introduce cheaper ways of attending meetings
across the country by telephone and web conferencing which saved their time and money
(Cohen, 2004). Thomas Cook responds to these changes by providing cheap transport facility to
their customer and luxury hotel facility at reasonable price.
3.2 Developed strategies of Thomas Cook to respond the changes
Developed strategies of Thomas Cook to respond the changes are as follows:
Thomas Cook makes new marketing strategies for advertising their products in the
market so that attention of maximum people. Thomas Cook is required to offer services to their
customers at reasonable price like accommodation in luxury hotels, better food facility according
to their taste and preference as well as transport facilities for sightseeing. All these facilities
should be included in tour package for attracting a large base of customers (Bharwani, and Butt,
2012). Technologies are developing now a days, so, company needs to adopt new technology for
customer comfort like online booking facilities. Through this, customers who are generally busy
in their work can easily book their tickets online through tour company websites. The complete
detailed information of tour package should be explained by Thomas Cook in their website.
Company also needs to include transport facility in their package so that people would not face
any kind of problem related to transport. Destination like museums that are based on history and
science are the major strengths which maintains and increases the interest of people.
Many people visit across the world for education purpose, for knowledge etc. Thomas
Cook can provide educational tour for students including all facilities like hotels, food and
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transport facility. Now a days people are more educated and their standard of living is high, they
can spend high amount for to tour (Bluementritt, 2006). Tour company required to provide
luxury facility to their customer. Tour and travel company can hire educated employee for
providing best services to customer. They can open customer care center of their company for
solving customer problem and clear their doubts. Tour company should try to focus on customer
who's standard of living is high. The attraction of destination can offer the customer for visiting
their city. Clubs and shopping strategy is the best for better performance of travel and tourism
sector. It is necessary to reduce the taxes and duties for traveler relief.
3.3 Justify strategies of Thomas Cook business could respond to change
Thomas Cook Strategies are useful for improving the level of marketing and their
services. Strategy of using advanced technology are very facilitated for costumer who want full
details regarding their tour package. Customer are busy with their schedule they can easily book
ticket online. Tour package for students is very effective and knowledgeable, because they get
knowledge of new places and their cultural (Bramwell, and Lane, 2000). Hence this selected
strategies are beneficial and result oriented for company and customers. Tour company have
focus on solving the problem of customer related to their services. Customer can easily contact to
employees of Thomas Cook company. Through research tour agency can analysis requirement of
customer, after it can launch new product new products to meet the demand of customers.
Marketing mix elements are useful for promoting their new strategy at right place. Many people
come to know about their company and facilities are provided by them. Tour agency are highly
dependent on the cost of fuel. Summer is high season of travel, many traveler have to adjust their
spending in order to pay for additional fuel charges (Brotherton, 2012.). Company required to
overcome this challenges by seeking creative solution. Wireless communication has many
advantage to be in connection with traveler. During tour period if any customer faced problem by
their service provider, they can easily contact to tour agency customer services. Tour company is
required to keep the safety for customer during the tour package.
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TASK 4
4.1 Analyses the impact of issues and trends that have drive change by Thomas Cook
Impact of issues and trends have driven a change at Thomas cook company. It has a huge level
of positive and negative impact over the tour company.
 Impact on business: Thomas cook is active in the hospitality industry, huge level of
growth and development are faced by this company. By using high level of technology,
they are able to deal with the customers easily (Carr, 2004.). This company is providing
first class services, luxurious environment to customer and generating highest revenue.
Pollution measure are required to be taken by tour company. Improved services quality is
the impact of changes made by Thomas Cook.
Changes made by travel and tourism sector bring various facility like online booking.
Customer are satisfied with all this factor. The growth of company is observed at very large
scale. Business become more stable, they have reach to maximum number of people (Mason,
and Staude, 2009.). Thomas Cook market share will increase if their business earn profit. Many
people will come to know about their best services and their attractive package.
 Impact on the product and services: It has been clear that service quality has been
increased by the company. Highest number of people show their interest in products of
tour company. But many people don't show their interest in this products because this
products and service are very expensive and all lower standard of people cant afford it.
Their services are like inquiry or reservation or reservation can be done easily by sitting
at home. Impact of this services are Thomas Cook employee can easily establish
connection with customer (Fusco Girard, and Nijkamp, 2009). They can easily focus on
customer problem and convenience. Tour agency also show images of destination in their
websites so people can easily create their perception with about the visit.
 Impact on employment level: There is positive impact at very large scale. Skilled
employees are required to use advances technology of company. Change bring by the
company has increase the demand of the customer. For handling various tourist activities
the companies are hiring the experts who have knowledge of tour activities (Hall, C. M.,
2008). Employee should give proper training facility so they can easily handle tour
activities and give best services to customers. Skilled employee will demand for high
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salary in tour company because they can mange tour activities more efficiently and
effectively.
4.2 Discussion on the consequences of business failing to respond the market change.
Consequences of business failing to respond to market changes are as follow. All these
mentioned issues are required to be deal in proper way otherwise problem can be faced by the
business for maintaining the work and all activities. Thomas Cook required to deal with the all
these aspect in effective and in proper way (Hassanien, 2006). The major consequence other
then impact on settled in the market is that its profitability could be affected. If company not
earned profit then they cant provide luxurious service to their customer. They cant give salary to
their employee because they their company face loses. If tour company promise to provide
luxury services and after it they cant fulfill the promises it effects their business a lot. During
summer season customers like to visit out of country if all seats are booked or any other problem
like transport problem face by customer then it effects the image of company.
business failure create negative brand image of company in market. Company will not be
stable fr long period, employees of company will not interested in working with their company.
Investor will be satisfied with them, they will no longer invest with their company (Hassanien,
2006). Change in taste and preference of customers takes place frequently and it is important for
the organization to conduct market research so that they will be able know the changes.
However, when firm fail to conduct market research then it negatively affects the business
operation and they fail to provide better services to customers. Government has to power to make
changes within policies. When the rates of these policies are raised, then it affects the business
negatively. This is because when policies like fiscal increases, then firm has to raise the price of
their products. In this context, it is important for the firm to have healthy relationships with
government so that policies made may not negativity affect the organization.
For advanced technology skilled employees are required to use it, if company not hire the
skilled employees its effect the business. Employee can't make connection with the customers.
People will not like to confirm their tour package with that company. If tour company Can't
manage the educational tour for company (Law and Jogaratnam, 2005). Then it effects the profit
of company, because customer will move toward the other company. When company cant
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respond to changes then their business will fail. Customer will switch to other tour agency. There
will be reduction in customer base because customer will not like to book their ticket with their
company. When highly skilled worker are not available they cant use developed technology In
proper way. Tour company sales will be affected and company will not be stable in market for
longer period. Their are many competitor in the market all try to give their best service to
customer. If Thomas Cook fail to fulfill their responsibility its not good for their business.
CONCLUSION
For the above report it can be concluded that advanced technology are required to be adopted by
Thomas Cook so that they can provide comfort facility to their customer. People with high
standard of living like to visit across the country, and they want luxury services during tour
period. Tourism destination should be attractive so that customer feel happy and satisfied with
tour package. Tour company also introduce customer about the cultural and religious of other
country, So that customer get knowledge of their culture.
Further it can be concluded that tour company need to make tour package in which all luxury
facilities should be included. Changes come in customers demand and Thomas Cook required to
respond the changes for making their tour package attractive and interesting for customer. It is
necessary for company to meet the customer demand. If tour company fail to respond the
changes then it effects the company profit. Customers will not like to book their tour package
with their company. Tour agency is required to respond the changes for increasing overall
profitability of company. And for increasing the market share of company.
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REFERENCES
Books and journals
Bharwani, S and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4 (2). pp.150 – 162.
Bluementritt, T., 2006. Integrating strategic management and budgeting. Journal of Business
Strategy. 27(6). pp.73 – 79.
Bramwell, B. and Lane, B. 2000. Tourism Collaboration and Partnerships: Politics, Practice
and Sustainability Clevedon. Channel View Publications.
Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach.
Routledge.
Burns, R., 2000. Introduction to Research Methods. London: Sage Publications
Carr, A., 2004. Mountain places, cultural spaces: the interpretation of culturally significant
Landscapes. Journal of sustainable tourism. 12. Pp. 432-459.
Cohen, E., 2004. Contemporary Tourism Diversity and Change. London: Elsevier.
Fusco Girard, L. and Nijkamp, P., 2009. Cultural Tourism and Sustainable Local Development,
Farnham: Ashgate.
Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
Hall, C. M., 2008. Tourism planning. Policies, processes and relationships. Harlow: Pearson
Hassanien, A., 2006. Exploring hotel renovation in large hotels: a multiple case study. Structural
Survey .24(1). pp.41 – 64.
Holden, A., 2008. Environment and Tourism. London: Routledge.
Lane, M., 2007. The Visitor Journey: the new road to success. International Journal of
Contemporary Hospitality Management. 19(3). pp.248 – 254.
Law, R. and Jogaratnam, G., 2005. A study of hotel information technology applications.
International Journal of Contemporary Hospitality Management. 17 (2). pp.170 – 180
Mason, B. R. and Staude, G., 2009. An exploration of marketing tactics for turbulent
environments. Industrial Management & Data Systems. 109(2). pp.173 – 190.
Raj, R. and Griffin, K. A., 2015. Religious tourism and pilgrimage management: An
international perspective. CABI.
Online
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record-17-4-million-visits-2014.html>. [Accessed on 21 July 2016].
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BBC news. 2016. UK tourist numbers and spending set new record in 2014. [Online]. Available
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