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Report On UK Inbound & Outbound Tourism Market

   

Added on  2020-01-28

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CONTEMPORARY ISSUES IN Travel &Tourism

TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................31.1 Issues and their impact on tourism industry..........................................................................31.2 Different issues in travel and tourism sector..........................................................................5Task 2...............................................................................................................................................7Task 3.............................................................................................................................................103.1 How International Airlines Group businesses could respond to change.............................103.2 Strategies that can manage changes.....................................................................................113.3 Justification of strategies......................................................................................................14Task 4.............................................................................................................................................154.1 Impact of issues in travel and tourism sector.......................................................................154.2 Consequences of failing to respond to change.....................................................................16Conclusion.....................................................................................................................................17References......................................................................................................................................182

INTRODUCTIONTourism business has grown since ancient times to now. In the modern era, tourism hasbecome diverse industry which is generating high employment opportunities and income in thecountry (Kasemsap, 2016). Travel sector is changing continuously because the needs of thetraveler changes any time so tour operators design such products which can satisfy them. Presentreport will focus on UK inbound and outbound tourism market. Several issues which are drivingchanges in travel sector will be analyzed in this study. However, market trends are changingcontinuously and organizations have to modify their operations accordingly. Evaluation ofcurrent trends which influence alterations in travel and tourism sector will be illustrated in thisassignment. 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 thetourism business (Coles, Hall and Duval, 2016).TASK 11.1 Issues and their impact on tourism industryTravel sector is one of the lucrative industries which are growing well in UKmarket. London is one of the popular tourist destinations of UK. Tour operators designtravel packages for customers and they provide them with accommodation facilities,services so that people can enjoy their travel. London Eye, Bunchingam place areinteresting places in London. Many foreign customers come in London to visit theseplaces (Khodadadi, 2016). It gives huge benefit to London as it generates high incomeand is earning money from foreign exchange. As per the statistics value, tourism industry is contributing well in the economicdevelopment of UK. In the year 2013, this sector has generated almost seven trillion USdollars (Kasemsap, 2016). Due to high tourism activities education, entertainment,transportation all business have grown well and they have generated income approx 2.2trillion in the year 2013. There are several issues which are driving changes in theindustry 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. Customers3

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 travelprices nominal and they have to provide additional services to their visitors. Competitionis very high, TUI group, Thomas cook etc. are many organizations those who are givingquality services to the customers (Kasemsap, 2016). So to meet with competition and toattract consumers, it is necessary to set prices accordingly so that people can take interestin tour packages. Social media marketing is another example of technologicaladvancement as it helps in attracting more customers and in gaining their attention. Bythis way Thomas Cook would be bale to make strong connections with mass audienceand it will attract more users towards the brand. Rising cost of fuel: Travel and tourism industry is highly depended upon the fuel costs. Ifprices of fuel are high than traveler will have to spend more amount and they will have topay more for transportation (Coles, Hall and Duval, 2016). It creates challenge fortourism 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 forconsumers and they will not prefer to go on holidays.State of Economy: Rise and fall of inflation is the main issue that impacts on tourismindustry to a great extent. If there is high inflation then people do not prefer to spendmuch amount in travel which decreases the business of organizations. Recession isanother 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 toother locations. In the year 2009, UK was suffering from recession that decreasedbusiness of tourism industry badly. Brexit issue is the great example of this, it hasnegatively impact on the economy of UK, unemployment has been increased and peoplehad to pay more tax. On other hand it has also impacted positively as now British cantravel easily and freely to anywhere without and restrictions (Khodadadi, 2016). Apartfrom this European union has made new air service agreements, new routes have beendeveloped by the government. By this way business of Thomas Cook has been increasedin the UK. 4

Terrorism and violence issues: It is the main issue that impacts the travel and tourismindustry. London is the clam city but due to increasing terrorist attack and violenceactivities people get afraid to come here (Higham, Bejder and Williams, 2014). These all issues highly affect the tourism industry, as technical advancement gives moreinformation to the customers. They compare prices and quality of tour packages and then theymake their mind for travel (5 key issues facing travel and tourism. 2017). Same as terrorism isthe main issue which affects negatively on business. Inflation or recession is another factorwhich influences mind of people. If prices of tour packages of Thomas cook are beyond theirpurchasing power then they will not prefer to go anywhere. 1.2 Different issues in travel and tourism sectorApart from above maintained issues, there are many other problems which are associatedwith 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 manydestinations 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 isnecessary to focus on security of visitors otherwise people will not make plan to visit suchplaces 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 to5Illustration 1: Impact of recession on tourism

monitor them (Rogerson and Rogerson, 2014). Thus, it can adversely impact on the business ofThomas Cook to great extent. People will not prefer to go on risky places so it can reducerevenues 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 anyserious disease taking place then this news can be spread through media and televisions. This cancreate negative image in mind of customers and they will not prefer to go in such places wherethey can suffer from any serious disease (5 key issues facing travel and tourism. 2017). Itbecomes the responsibility of government to take proper measures for protecting people and tokeep clean the city. The mortality rate can get reduced which will help in improving travelbusiness in the countryLegislation and political unrest:It is another secondary issue which affects the travel and tourism sector (Issues facing thetravel and tourism industry, 2017). If there is very tough policies related to visa then people willnot take interest to come here. This affects the entire business of the tourism which will affect theeconomic condition of the country. If there is unrest political background then there are highchances of insecurity , in such type of places visitors do not prefer to go for holiday (Kasemsap,2015). TASK 26

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