Challenges Faced by TUI Group: Effects of CSR and BREXIT

This report discusses the challenges faced by TUI Group in the travel and tourism industry, including the shift towards luxury and adventure tourism. It also explores the impact of corporate social responsibility and BREXIT on the company. Additionally, it highlights the benefits and challenges of working in a team.

BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Key issues faced by organisation...........................................................................................3
TASK 2............................................................................................................................................3
Corporate Social Responsibility.............................................................................................3
TASK 3............................................................................................................................................4
Effect of BREXIT on TUI Group...........................................................................................4
TASK 4............................................................................................................................................5
Working in team.....................................................................................................................5
REFRENCES...................................................................................................................................5

INTRODUCTION
There are a number of challenges faced by travel and tourism industry as well as number
of other industries due to introduction of BREXIT and other external factors. In the following
report focus and elaboration is don on TUI group and the effects of CSR and BREXIT on it
(Milano, Cheer and Novelli, 2019). Also, some other problems faced by company are discussed.
TASK 1
Key issues faced by organisation
There has been a tremendous change in perception of people due to which the tour and
tourism industry is facing a number of problems. It has been notices that major investment in
travel and tourism these days is done on luxury tourism. TUI has an immense scope to grow in
this sector. Also, in recent times it has been noticed that most of the tourists are interested
towards adventure tourism. They like to travel and do various types of adventure tours. This
includes a number of activities (D’Urso, Disegna and Massari, 2019). The old traditional places
are visited by very less tourists and these adventurous destinations have become attractions for
major group of tourists. Also, people days want good holiday packages to spend their holidays.
They look for far away places and attractive destinations. Due to this company requires to
interestingly plan their tour. They need to take care of their stays, dine outs, adventures, travels
etc. This have led to increase in job of TUI, Also, there are numerous competitions emerging in

market about which company needs to be alert as they can prove to be major threats for
companies. Company can use various techniques such as feedbacks, questionnaire to understand
the needs and wants of customers. They can then specifically fulfil require the demand of each of
its customers. In this way company can deal with the challenges and major issues regarding
changing perception of people towards tour and trips.
TASK 2
Corporate Social Responsibility
When a company involves corporate social responsibility in their strategy, they are taking a
step towards building their brand image in the society. This helps company to make its customers
loyal towards it. A firm which carries out corporate social responsibility effectively gains trust of
people. The employees of such company use goods and services to do good of society. This
helps company to retain its employees, it is also helpful as in such cases while recruiting
company do not need to spend much. They can easily attract a number of customers towards
them. They do not need to advertise or promote their goods and services as companies who do
CSR are always gaining positive word of mouth in society (Ketola, Blombäck and Wigren,
2009). Embracing CSR activities goes a long way for company as it is very helpful for company
in future as well. This helps in sustainable growth as well as long term success of a company. It
is also seen that customers are ready to pay more prices when they come to know about the good
deeds of a company through their CSR activities. Companies can also see an increase in foot
falls as they conduct more such activities. TUI group believes in sustainable growth of
environment along with their business. They own TUI Care Foundation, TUI Academy, TUI
Junior Academy and TUI Future Funds which are some of its association towards society. They
have improved lives of a number of people through these foundations of their. All these are
working to make lives of people better in society.
TASK 3
Effect of BREXIT on TUI Group
There have been seen major effects on business of TUI group due to introduction of
BREXIT. The company saw a major fall in its business which was almost half within the quarter

of which BREXIT was introduced. The company also faced a number of losses because it had
already made a number of booking earlier itself and due to introduction of BREXIT these
bookings were also cancelled (Koller, Kopf and Miglbauer, 2019). TUI also said that it will
change its operating model as being a traditional model is becoming a reason for TUI to lose its
share and is becoming difficult for company to face its competitors. Company is highly relying
on EUROPE due to which company faces this problem. They have now decided to stop relying
on Europe up to an extent. Company have decided to adopt market development strategy.
Through this company will tap into a number or other new markets which will help it to earn
profits and regain the loses it faced earlier. They have decided to launch their services in Asian
countries such as India and China. They have decided that despite the changes in environment
due to BREXIT they will not stop operating. They are still operating in Europe with a number or
legal rules and norms. There have been tight security and increase in a number of legal
formalities as well. Company have decided that they will expand and continue to earn business
despite the effects of BREXIT on it.
TASK 4
Working in team
While working for this presentation I learned a number of things. This task helped me and
my team members to successfully understand the effects of external factors on TUI Group.
While working in a group it is important for us to understand the capabilities of everyone. While
conducting this project we listed down each of members skills and then divided the tasks
between us accordingly. There were a number of benefits which I saw while conducting this
group project. I saw improvement in my communication skills, my team effort increased, I also
came to know about my leadership qualities. At a point in a group someone needs to step up and
act as leader in order to guide the group towards success. There were also some challenges in this
project. There were a number of difficulties faced as there were difference of opinion amongst
team members. They found it difficult to understand each other’s idea. There are some areas
which I still need to work on. Some of such areas are my extrovert behaviour. I point out others
qualities as well as mistakes at too soon. I need to learn to effectively mention it to them. This is
something I should work on.

REFRENCES
Books and Journals-
Ketola, T., Blombäck, A. and Wigren, C., 2009. Challenging the importance of size as
determinant for CSR activities. Management of Environmental Quality: An
International Journal.
Milano, C., Cheer, J.M. and Novelli, M. eds., 2019. Overtourism: Excesses, discontents and
measures in travel and tourism. CABI.
D’Urso, P., Disegna, M. and Massari, R., 2019. Fuzzy clustering in travel and tourism analytics.
In Business and consumer analytics: New Ideas (pp. 839-863). Springer, Cham.
Koller, V., Kopf, S. and Miglbauer, M. eds., 2019. Discourses of Brexit. Routledge.