Impact of Sports Tourism on Travel Industry

This assignment delves into the influence of sports tourism on the travel industry. It examines how hosting major sporting events can attract a large number of tourists and boost economic growth. The analysis includes real-world examples like the 2010 London Olympics and emphasizes the importance of planning and marketing for successful sports tourism ventures.

CONTEMPORARY ISSUES IN Travel &
Tourism

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Issues and their impact on tourism industry..........................................................................3
1.2 Different issues in travel and tourism sector..........................................................................5
Task 2...............................................................................................................................................7
Task 3.............................................................................................................................................10
3.1 How International Airlines Group businesses could respond to change.............................10
3.2 Strategies that can manage changes.....................................................................................11
3.3 Justification of strategies......................................................................................................14
Task 4.............................................................................................................................................15
4.1 Impact of issues in travel and tourism sector.......................................................................15
4.2 Consequences of failing to respond to change.....................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
2

INTRODUCTION
Tourism business has grown since ancient times to now. In the modern era, tourism has
become diverse industry which is generating high employment opportunities and income in the
country (Kasemsap, 2016). Travel sector is changing continuously because the needs of the
traveler changes any time so tour operators design such products which can satisfy them. Present
report will focus on UK inbound and outbound tourism market. Several issues which are driving
changes in travel sector will be analyzed in this study. However, market trends are changing
continuously and organizations have to modify their operations accordingly. Evaluation of
current trends which influence alterations in travel and tourism sector will be illustrated in this
assignment. Strategies of organization will be discussed to give proper respond to the changes.
Main objective of this report is to understand about contemporary issues and their impact on the
tourism business (Coles, Hall and Duval, 2016).
TASK 1
◦ 1.1 Issues and their impact on tourism industry
 Travel sector is one of the lucrative industries which are growing well in UK
market. London is one of the popular tourist destinations of UK. Tour operators design
travel packages for customers and they provide them with accommodation facilities,
services so that people can enjoy their travel. London Eye, Bunchingam place are
interesting places in London. Many foreign customers come in London to visit these
places (Khodadadi, 2016). It gives huge benefit to London as it generates high income
and is earning money from foreign exchange. As per the statistics value, tourism industry is contributing well in the economic
development of UK. In the year 2013, this sector has generated almost seven trillion US
dollars (Kasemsap, 2016). Due to high tourism activities education, entertainment,
transportation all business have grown well and they have generated income approx 2.2
trillion in the year 2013. There are several issues which are driving changes in the
industry and these are as following: Technological advancement: It is the main issue that impacts on demand and supply.
Internet surfing is one of the greatest example of technological advancement. Customers
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get knowledge about prices and quality provided by tour operators (Bondi, 2016).
Therefore, it has become the biggest issue because tour operator has to keep their travel
prices nominal and they have to provide additional services to their visitors. Competition
is very high, TUI group, Thomas cook etc. are many organizations those who are giving
quality services to the customers (Kasemsap, 2016). So to meet with competition and to
attract consumers, it is necessary to set prices accordingly so that people can take interest
in tour packages. Social media marketing is another example of technological
advancement as it helps in attracting more customers and in gaining their attention. By
this way Thomas Cook would be bale to make strong connections with mass audience
and it will attract more users towards the brand. Rising cost of fuel: Travel and tourism industry is highly depended upon the fuel costs. If
prices of fuel are high than traveler will have to spend more amount and they will have to
pay more for transportation (Coles, Hall and Duval, 2016). It creates challenge for
tourism industry as people may change their mind because it would be costly for them.
As Thomas Cook will have to increase its product's prices than can be costly for
consumers and they will not prefer to go on holidays.
 State of Economy: Rise and fall of inflation is the main issue that impacts on tourism
industry to a great extent. If there is high inflation then people do not prefer to spend
much amount in travel which decreases the business of organizations. Recession is
another issue that affects the buying power of consumers (Coles, Hall and Duval, 2016).
It influences their buying capacity so people do not take much interest in traveling to
other locations. In the year 2009, UK was suffering from recession that decreased
business of tourism industry badly. Brexit issue is the great example of this, it has
negatively impact on the economy of UK, unemployment has been increased and people
had to pay more tax. On other hand it has also impacted positively as now British can
travel easily and freely to anywhere without and restrictions (Khodadadi, 2016). Apart
from this European union has made new air service agreements, new routes have been
developed by the government. By this way business of Thomas Cook has been increased
in the UK.
4

 Terrorism and violence issues: It is the main issue that impacts the travel and tourism
industry. London is the clam city but due to increasing terrorist attack and violence
activities people get afraid to come here (Higham, Bejder and Williams, 2014).
These all issues highly affect the tourism industry, as technical advancement gives more
information to the customers. They compare prices and quality of tour packages and then they
make their mind for travel (5 key issues facing travel and tourism. 2017). Same as terrorism is
the main issue which affects negatively on business. Inflation or recession is another factor
which influences mind of people. If prices of tour packages of Thomas cook are beyond their
purchasing power then they will not prefer to go anywhere.
1.2 Different issues in travel and tourism sector
Apart from above maintained issues, there are many other problems which are associated
with tourism sector and impact the business to great extent:
Security and safety:
It is secondary main issue that drives changes in travel sector. There are many
destinations where number of tourism offices and visitors bureaus are available (Tan and et.al,
2016). But they do not have much connection with local police and protection services. It is
necessary to focus on security of visitors otherwise people will not make plan to visit such
places where they are not safe. Due to this, many regions are facing economic losses currently.
Population is increasing so government should control over it and has to take necessary steps to
5
Illustration 1: Impact of recession on tourism

monitor them (Rogerson and Rogerson, 2014). Thus, it can adversely impact on the business of
Thomas Cook to great extent. People will not prefer to go on risky places so it can reduce
revenues of the company, if there is high tourism activities in UK.
Health issue:
It is another issue that impacts the UK tourism (Tan and et.al, 2016). If there is any
serious disease taking place then this news can be spread through media and televisions. This can
create negative image in mind of customers and they will not prefer to go in such places where
they can suffer from any serious disease (5 key issues facing travel and tourism. 2017). It
becomes the responsibility of government to take proper measures for protecting people and to
keep clean the city. The mortality rate can get reduced which will help in improving travel
business in the country
Legislation and political unrest:
It is another secondary issue which affects the travel and tourism sector (Issues facing the
travel and tourism industry, 2017). If there is very tough policies related to visa then people will
not take interest to come here. This affects the entire business of the tourism which will affect the
economic condition of the country. If there is unrest political background then there are high
chances of insecurity , in such type of places visitors do not prefer to go for holiday (Kasemsap,
2015).
TASK 2
6

7

Notes: Tourism is considered as the worldwide industry which has been fluctuating in respect to
crime, terrorism, natural disaster and economic forces etc. However, all such changes influences
the travel and tourism business. Hence, it is essential for Thomas Cook to assess all such changes
in the current trends and thus avoid in order to plan effective tourism growth. Thus, it helps in
attracting tourists to visit the country and enhance tourism so that satisfaction can be attained.
Terrorism attacks influences travel and tourism sector and thus decreases the number of tourists
within the country. Therefore, such current trends needs to be avoided by country through
increasing safety and security of travellers visiting the country. Thus, with the help of such
planning it helps in gaining satisfaction among tourists and enhance profit ratio. Security is
considered as another major concern and thus influences tourists to not visit the terrorism
affected countries. Hence, it decreases the number of tourists within the country and thus results
into fall in tourists visiting the destination.
Moreover, another current trend that influences change in travel and tourism is that
advancement in technology and thus it is essential for Thomas Cook to provide the latest
information to tourists in order to use body scanners, metal detectors so that individual could be
properly examined before traveling into airline or entering into any other country. Thus, it
increases the chances of terrorism and thus affects the tourists visiting the country. There are
varied number of tourists visiting UK around the year and thus influences travellers to visit the
country and thus enhance their satisfaction. Thus, all such current trends influences the change in
the travel and tourism sector and bring effective results in terms of enhancing country's image in
market.
8

Notes: The current niche tourism market is sports tourism in which business aims to expand its
market and influence large number of tourists to visit the country. However, it is significant for
tourists to gain detailed information regarding the particular tourism market and enhance its
popularity so that large number of tourists could be attracted towards the tourist market. UK aims
to develop itself in such market and thus it helps Thomas Cook to expand its business operations
so that large number of sports tourists could be attracted. Such type of tourism is considered as
the most revolutionary and evolving trend which is being seen in today's travel and tourism
9

industry. It attracts wide number of travellers who are interested in sports and thus organize and
host several sports events and programs. It also raises the number of travellers visiting the
country for sports activities and attain huge growth and economy. For instance, in the year 2010
London organized Olympic games and thus attracted various tourists from around the globe.
Thomas Cook develops different travel plans in terms of sports events and enhance its booking
so that sales could be improved.
However, there are different types of niche tourism market among which sports tourism
is considered as the most effective and thus increases popularity among travellers to visit the
country due to occurring such specific sports' event. Hence, it raises the market share of Thomas
Cook and influence large number of tourists visiting the country. Therefore, it is significant for
tourists to plan the destination and host several sports events so that it becomes one of the
happening destination for sport lovers. It has been measured that 30 million tourists visit the
England and UK every year. There are various sports events organized such as FIFA, Olympics
that raises UK tourism. Within the year 2011m 1.3 million people visited the country and spend
£1.1 billion for watching live sport event. Hence, carrying out survey helps in identifying the
number of tourists visiting the country and thus raises the brand image of tourist destination in
the country.
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Poster In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to
2.2 Analysing niche tourism market and provide detailed description
The current niche tourism market is sports tourism in which business aims to expand its market and influence large number of
tourists to visit the country.
However, it is significant for tourists to gain detailed information regarding the
particular tourism market and enhance its popularity so that large number of
tourists could be attracted towards the tourist market. UK aims to develop itself in
such market and thus it helps Thomas Cook to expand its business operations so
that large number of sports tourists could be attracted. Such type of tourism is
considered as the most revolutionary and evolving trend which is being seen in
today's travel and tourism industry. It attracts wide number of travellers who are
interested in sports and thus organize and host several sports events and
programs.
It has been measured that 30 million tourists visit the England and UK every
year. There are various sports events organized such as FIFA, Olympics that
raises UK tourism. Within the year 2011m 1.3 million people visited the
country and spend £1.1 billion for watching live sport event. Hence, carrying
out survey helps in identifying the number of tourists visiting the country
and thus raises the brand image of tourist destination in the country.
It also raises the number of travellers visiting the country
for sports activities and attain huge growth and economy.
For instance, in the year 2010 London organized
Olympic games and thus attracted various tourists from
around the globe. Thomas Cook develops different travel
plans in terms of sports events and enhance its booking
so that sales could be improved.
However, there are different types of niche
tourism market among which sports tourism is
considered as the most effective and thus
increases popularity among travellers to visit the
country due to occurring such specific sports'
event. Hence, it raises the market share of
Thomas Cook and influence large number of
tourists visiting the country. Therefore, it is
significant for tourists to plan the destination and
host several sports events so that it becomes one
of the happening destination for sport lovers.

TASK 3
3.1 How International Airlines Group businesses could respond to change
It involves several factors that affects the airline businesses in regard to respond to
change and thus influences the business operations in market. For instance, airline companies are
required to identify the changing environment which aims to influence tourists within the
country and thus assesses external analysis that impacts the travel and tourism sector (Kim and
Ritchie, 2014). It is as follows-
Political factors- UK possess effective political environment which helps in supporting and
developing the travel and tourism business. Hence, International Airline Group influences
through increasing the interference of government within the airline regulations (Spenceley,
2012).
Economical factors- Further, in the constant development in transportation and infrastructure
facilities it helps in increasing tourists and developing economic growth in the country (Sharpley
and Telfer, 2014).
Social factors- It is essential for Airlines Group to assess the taste and preferences of consumers
all around the globe and provide them particular travel services. Thus, it helps in evaluating the
change in demand and supply of tourists which influences the International Airlines Group
(Smith, 2014).
Technological factors- International Airlines Group identifies the innovative technology and
thus introduce new technique in the market that influences tourists within the country. Therefore,
it is essential for business to brig constant improvement and thus focus upon easy booking of
tickets through online system so that best results can be attained (Murphy, 2013).
Environmental factors- Such factor identifies that Airlines group assesses that it is essential for
them to undertake environmental protection regulation so that they should not pollute the
environment (Lew, Hall and Timothy, 2008). It is essential for them to identify the hazardous
toxidant and does not use such in their fuels to protect the environment.
Legal factors- While, it is essential for organizations to undertake effective legal regulations so
that it does not affect Airlines Group operations in market. For instance, it is significant for
business to undertake effective practice and attain desired results.

3.2 Strategies that can manage changes
International Airlines Group is working well in the travel and tourism sector. It is
necessary for strategy development team that to understand business environment and develop
strategies accordingly. So that optimistic results can come out and cited firm and respond to
change in positive manner. By making impressive strategies organizations can manage their
work perfectly and can satisfy needs of consumers well. It will help in attracting more consumers
towards the brand.
It is necessary to formulate strategies as per he current market trends and needs of
customers so that optimistic results can come out (Godfrey, Wearing and Schulenkorf, 2015).
British Airways is one of the leading travel company that arranges travel for the travelers.
Technological advancement is the great change that impact on the business to great extent.
British Airways can modify its products and services. As there are many more competitors of
British Airways (Guo, 2014). So to survive in such environment cited firm needs to make its
products in such manner which can satisfy consumers and can attract them. Whenever, people
travel then individual prefer to get quality services. So Cited firm can create new products and
services which can attract more customers. It can include quick answers to customers quarry in
their services. By this way organization will be able o coordinate well with the visitors and will
be able to design attractive packages (Miles, 2014).
Apart from this British Airways can adopt marketing strategies, it is the great tool
through which business can make connection with consumers. It can adopt social media
marketing strategies to spread brand name of the company (Pelliccia, 2016). Face book, Twitter
etc. are main social sites which can help in increasing number of consumers in the organization.
Advertisement should be in such manner which can fulfilled short term and long term objectives
of the company soon. By adopting both strategies British Airways can response to technical
changes and can increase its performance and revenues.
Aer Lingus can focus on conventional tourism as it impacts a lot on social factor. It can
give high returns and enhance earning of cited firm (Canavan, 2017). Now days due to heavy
pollution Eco-tourism is increasing and visitors also take more interest in such type of tourism
activities. Cited firm can use marketing mix strategies for responding positively to changes. It
can promote its products in different manner and can take support of wireless communication
13

technologies. By this way it would be able to attract more consumers towards the brand. As
British Airline is the biggest competitor so Aer Lingus should include additional services like
accommodation facilities in it, so that it create unique image and can attract more travelers. It can
offer adventure travel packages to customers. That would increase their interest and will attract
them towards the brand (Prebežac, Schott and Sheldon, 2016).
Illustration 2: Adventure tourism
Source: (Boluk and Carnicelli, 2015)
§
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They can also include in their products rural travel that attracts more visitors. Prices
should be kept nominal so that more people take interest in its product and services (Forno and
Garibaldi, 2015). Cited firm cam also make strategy of developing its brand name and changes in
business practices. Currently its travel packages are common and it is unable to satisfy different
customers needs. So it should focus on making changes in its practices as per the current market
trends. It will help in attracting more visitors towards the brand (Coles, Hall and Duval, 2016).
3.3 Justification of strategies
As British Airways can adopt marketing strategies, it can give positive result to the
organization. By adopting effective marketing techniques cited firm will be able to make
connection with mass audience through online marketing techniques. Social medial marketing is
also called viral marketing (Williams, 2016). Maximum public use Facebook and Twitter such
type of sites. By giving advertisement of these sites British Airways would be able to
communicate its vision with mass audience. And it will be able to make them aware about their
services and packages. This will create unique image of organization in front of service users.
15
Illustration 3: rural/ agro tourism
Source: (Higham, Bejder and Williams, 2014)

Apart from his adoption of social sites will help them in giving quick response to customer's
quarries. It will enhance business of the company to great extent (Kasemsap, 2016).
Aer Lingus can adopt strategy of modifying its products and services as per he needs of
customers. Introduction of new product and build brand image of the organization and people
will pay attention on it (Bondi, 2016). There are many airlines those which are working in the
travel sector. But few of them are offering travel at adventurous places and rural place. If cited
firm offer rural travel packages then it would help them in attracting more consumers. It will
give positive result to the company and can enhance revenues of the firm (Khodadadi, 2016).
TASK 4
4.1 Impact of issues in travel and tourism sector
Issues and trends drive changes to great extent. These all impact on the business of the
Thomas cook and Myla travel both to great extent (Rogerson and Rogerson, 2014). Impact of
these issues are as below maintained: Impact on structure of organizations: As due to technological advancement Thomas
cook has offered to Myla Travel for mergers (Radojevic, Stanisic and Stanic, 2015). By
this way people will prefer to select best products so it is necessary for the entities that
they should have sufficient resource to satisfy the needs of service users. Mergers,
acquisition take p;lace in the structure. As if Thomas cook acquire cited firm and it will
be bale to generate high revenues because financial and human resources of the company
will get higher (Hsu and et.al, 2017). Impact on businesses: As technological advancement is the main issue and current trend.
People always gather necessary information from internet regarding travel packages
before going to any place (Tan and et.al, 2016). Due to this organizations like Thomas
Cook and Myla Travel will have to adopt new technologies in the workplace. By this way
they will be able to meet with the competition and will be bale to survive in the market.
Because of changing market trends, both organizations will get affected as they will need
to incorporate some additional services and benefits for customers in their travel
packages. It will impact positive on the businesses as more customers will get attracted
towards the brand and it will increase revenues of the Thomas cook and Myla Trav to
great extent (Kasemsap, 2015). Security and safety is another main issue that can impact
16

negative on both businesses as demand of the products will get down and can decrease
productivity and profitability of the companies. Impact on products and services: Changes in technologies force Thomas cook and Myla
Travel to make modifications in their product and services. Sudden changes in legislation
and policies impact negative on the business and organizations have to immediate modify
their products and services (Issues facing the travel and tourism industry, 2017). Some
time it impacts positive as well, easy visa policies increases demand of the travel and
people take interest in the products.
 Impact on employment level: Due to sudden changes companies ail to provide quality
services to customers. That impact on he economic condition of the organization. As
government do not get sufficient amount to invest in increasing employment
opportunities in the country (5 key issues facing travel and tourism. 2017). Apart from
this technological advancement reduces requirements of human resource in the Thomas
Cook and Myla Travel. As they will not need much staff members because technical
equipment can handle the operations well. Due to this, populations do not get
employment opportunities. But as companies are modifying their products so they will
need much staff those who can execute heir plan in workplace. As security is the main
issue and government is planning to hire more people in the department those who are
physically fit and those who can provide security to visitors (Kasemsap, 2015).
4.2 Consequences of failing to respond to change
There is high chances of failure if organizations do not respond timely to changes. If
Thomas cook does not respond to change then it can reduce sales of the company. As it can be
seen in the company's performance that it has closed 168 stores and 1100 workers have been
tightened their belts (Hsu and et.al, 2017). As Myla Travel has taking support of technical
equipment that is why its sales have been increased and now Thomas cook is interested in
expanding its business in the same market. If both firms do not give proper respond to changes
then profitability of the organizations can get reduced.
Security is the main issue if tourism organizations fail to make effective products and
services then perception of customers will get changed and they will not like the services of the
companies (Issues facing the travel and tourism industry, 2017). As it will create negative image
17

of the firm in front of consumers. Apart from this Thomas cook and Myla Travel will not be able
to survive in the competitive world. That can create situation of failure for the entities. In the
absence of poor response to changes organizations can not run their operations well and it can
harm their reputation to great extent (Kasemsap, 2015).
CONCLUSION
From the above report it can be concluded that travel and tourism organizations have to
pay attention on the current trends and they have to make necessary changes in their services. By
this way entities will be able to run their business and will be able to gain profit. Knowledge
about needs of consumers and market trends are very important it can reduce consequences of
failure. It can be articulated that variety of tools and resources can enhance knowledge. Changes
in products and services and adoption of marketing strategies can help in increasing interest of
customers. By this way business of the tourism in UK can get enhanced.
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