Tourism Trends and Challenges

This assignment delves into the evolving landscape of tourism, examining significant issues and prevailing trends shaping the industry. It analyzes diverse aspects of tourism, including sustainable practices, the rise of medical tourism, and the controversial phenomenon of dark tourism. The provided sources offer insights into these topics, guiding a comprehensive understanding of the current state and future directions of tourism.

Contemporary Issues
In Travel And
Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
TASK 2 ...........................................................................................................................................4
TASK 3..........................................................................................................................................12
3.1..............................................................................................................................................12
3.2 .............................................................................................................................................13
3.3..............................................................................................................................................14
TASK 4..........................................................................................................................................15
4.1..............................................................................................................................................15
4.2..............................................................................................................................................16
CONCLUSION ..........................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
In this report readers cab get the knowledge about the contemporary issues which are
faced by travel and tourism sector. It also has been mentioned that to which extent these issues
affects this industry and how the companies working in these sectors respond to such changes.
Some key issues and their solutions are thoroughly investigated in this report. Some current
trends and their analysis justifies the position of travel and tourism industry(Moutinho, 2011).
This report is based on the case study of Thomas cook group, which is a British global travel
company, which is also listed on London Stock Exchange. This group owns a wide number of
tour operators and airlines which operates at United kingdom, Scandinavia and Belgium. Its also
owning and operating Condor which is scheduled airline and it owns a website for the booking of
hotels, that is Hotels4u. Maya travel agency and Thomas cook group are now making some
alterations in these promotional strategies so as to mould themselves as per the issues and trends.
TASK 1
1.1
Travel and tourism industry is a very big industry in itself it is not only limited with the
services as well as it also deals in selling products. Demand for tourism of a country can be
considered as the supply for the other country(Spenceley, 2012). This industry is generating a
high part of governments revenue. Travel and tourism is a very fast growing industry and it
covers various services through which revenue is divided among several industries. As in this
sectors various companies are providing different services to their customers. Some of the issues
which are driving changes in this industry and their impact on the companies which are working
in this sector is explained below : Advancements in technology (security and anti-terrorism measures) : Terrorism is a fact
which always makes adverse impact over the tourism sector. Terrorists groups wants to
make barriers in the development of certain countries. And tourism industry is a sector
where they can attack over people of different countries through a single attack.
Terrorism has made many social impacts over travel and tourism industries(Evans,
Stonehouse and Campbelln 2012). Companies working in such industries like Thomas
cook group has implemented better security systems in providing those services so that
they can prevent these kind of unethical interventions (Wachowiak, 2016). Through the
1

advancement of technology related to security system prevention against terrorism is
easy(Sharpley and Stone2010). Currency fluctuations : Currency fluctuations is a factor which impacts the travel and
tourism sector in a strong way. Fluctuation in currency is nothing but the increase and
decrease in value of currency. These fluctuations keeps going on daily basis which gives
rise to a situation in which the currency value of one country may gets stronger than the
other country and vice-versa. Because of this reason tourists gets confused about the
countries where they want to travel as if the value of currency of other country is higher
than the value of currency of his own country then it will be not affordable for him to
travel their with convenience(Morgan, Pritchard and Pride 2011).
 Recessions : Recession affects every industry. Their are a number of service provider
which depends on travel and tourism sector. Further some industries which are providing
products related with travel and tourism they are also depends on it. Recession can bring
worst impact over travel and tourism as well as other industries which are dependent on
it(Connell, 2013).
1.2
United Kingdom is a very famous place among the tourists from around the world. UK
has several destinations which can be visited by tourists. As per a survey, UK is a destination
which is highly praised by the tourists from all over the world. On the other UK is considered
affordable and interesting as compared with other countries hosting tourism. Tourists can easily
get their services and they are economical also. Political factors such as tourism policies and
security policies plays a vital role in tourism of United Kingdom. Now a days entities working
travel and tourism sector are using various methods which are assisting these entities in
providing better services to their customer(Lyons, and et.al., 2012). This encourages tourism in
UK, Firstly because tourists chooses UK as their tourism destination because of its soothing
environment. Secondly UK government and Thomas cook group has implemented certain
technical measures to fight with terrorism which gives the feel of security to the tourists. There
are two contemporary issues which is faced this industry and these are mentioned below : Security issues : Political unrest in countries like North Africa and some parts of Middle
East is becoming reason for increased terrorism in these countries. Terrorism affects the
industry of travel and tourism very badly. Countries like Egypt, Jordan, and Lebanon is
2

facing political unrest and instability. These factors has developed terrorism in these
countries, because of this tourists from across the world feels insecure in travelling these
countries. As Egypt is very famous for its heritage like Pyramids which are the centre of
attraction for all the tourists. Hence the government of Egypt should implement such
policies and they should take severe steps against terrorism so that society and tourists
feels safe in Egypt as well as destinations like pyramids can be safely maintained. Further
incident of Sharm-el-Sheikh, causes the loss of 8% in foreign tourism receipts and 0.56%
loss in GDP (Dickinson, Lumsdon, and Robbins 2011).
 Environmental issues : Environment is one of the most important factor which affects the
travel and tourism sector in a significant manner. Tourism and travel industry needs to
maintain infrastructural facility for tourists which causes water pollution. Further vehicles
are used for travelling purpose which causes air pollution. Developing infrastructure
leads to adverse affect over the local people who are residing there. The management of
Thomas cook group should develop such policies and technology so that these factors can
be removed.
TASK 2
3

4

5

6

Scott,Peetersand Gössling,2010
7

8

9

Scott,Peetersand Gössling,2010
10

11

12

TASK 3
3.1
International Airline Group can change their activity level as per the need of the
customers so as they can satisfy them. Modification in activity level can provide International
Airline Group, the benefit of customer satisfaction. Customer satisfaction can help an entity to
sustain easily in a targeted market(Dunkley, Morganand and Westwood2011). There can be a lot
of changes which can easily make some huge and effective impact over the working of
International Airline Group. Now a days price of fuel are in controlled state as Gulf countries is
producing fuel in high quantity. Which means the price of fuel is not so high. International
Airline Group can take benefits out of this situation through the implication of some strategies.
In this situation if they provide their services at the same price then they can earn comparatively
a high margin of profit because the cost is low. Secondly International Airline Group can also
provide their services to its customers at a low price to attract the customers towards itself.
13

Providing services at same price can pay a huge amount of profit to International Airline Group
but it will not work in long run. On the other hand if the cited entity will provide its services to
its customers at a low price, surely will not give required profit to it. But undoubtedly it will be
beneficial for cited entity in long run(Falk and et. al., 2012). Further this strategy will also result
in high customer population. If this will become possible for the company to gain a high number
of customers then it can increase the profit percentage of the company.
There can be some another changes which can make significant impact over the working
environment of cited entity. Technology can be an element which can make both positive or
negative impact over the working of International Airline Group. Now a days technology is
changing very fast. New updates are launching every day, customers wants to get updated
services so as to achieve the level of satisfaction(Hall, 2010). In aviation industry, technology
matters a lot updated technology can provide a secured and highly comfortable ride to
passengers. If cited entity updates the technology of its air crafts then customers will be attracted
towards it and vice versa. Further there can some other major factors which can make significant
impact over the operations of cited entity. These benefits are like economic factors, legal factors,
environmental factors and political factors etc. (Hannam, Butler, and Paris 2014).
3.2
Developing strategies can be helpful for the International Airline Groups like British
Airways, Iberia, Vueling and Aer Lingus in order to capture targeted market and to gain potential
customers. Cited entities can adopt various strategies to respond towards changes in market of
travel and tourism. Entity can provide new services like bundled services which a customer can
use during his journey. As now a days, airline companies are providing services like free Wi-Fi
up to a certain limit to its customers. This will provide immense satisfaction to its customers as
they can easily be connected to the world while travelling. Further they can make several
strategies by the implication of the elements of marketing mix(Hartmann, 2014). Four P's of
marketing mix are as follows : Product : A product is a thing which is produced to sale to the potential customers and to
provide satisfaction to them by fulfilment of their needs and requirements. Products can
be of two types ; goods and services. Management team of cited entity needs to analyse
the requirements of potential customers so that they can render such services which can
satisfy customer's needs (Forecasting and trend analysis. 2010).
14

 Price : It can be considered as the amount which a customer is required to pay in return
of the services and goods provided to him. In marketing mix price is one of the most
important factor. The International Airline Group can opt for different pricing strategies
which are as follows :
◦ Market penetration pricing
◦ Neutral pricing
◦ Market skimming pricing Place : Place can be said as a market which contains the potential customers. Cited entity
needs to find the market where it can sale its services efficiently and effectively. Potential
buyers allows an entity to sale its products without too many efforts. Cited entity needs to
make analysis over the market so as to find the area of its potential buyers. International
Airline Group needs to provide its services in such market where potential buyers can
easily get the access(Ladkin, 2011).
 Promotion : Promotion can be considered as an activity through which an entity displays
its new services to acknowledge the potential buyers about its products. It boost up the
brand recognition. Cited entity after following the above mentioned strategies, now needs
to promote such products and services.
Further International Airline Group can also use SWOT analysis to analyse its Strengths,
Opportunities, Weaknesses, and threats through which they can easily frame such strategies
which assist it to develop their business enterprise and to accomplish its objectives and goals(Ooi
and Laing2010).
3.3
Cited entity can make strategies in order to respond towards the changes in the business
environment. They can opt for various strategy measures like SWOT analysis. As they are
already opting SWOT analysis before framing any plan or strategies. So they are aware of their
strength, weaknesses, opportunities and threats. Justification of strategies can be made easily if
the strategies are framed in accordance with elements of SWOT analysis and marketing
mix(Pomering,Noble and Johnson 2011). International Airline Group has made certain strategies
so as to dominate its rivals in targeted market. Strategies of cited entity can be justified through
the undermentioned points :
15

 Communicational : Communication with the customers is an important aspect. For
providing information for the new services and offers Cited entity needs to communicate
with its customers. Cited entity has the data related to its potential customers through
which they can communicate with them. They can email their customers about various
offers and new services which they are providing(Smith, Costello and Muenchen 2010). Environment : Unethical competitive environment can lead to loss for every company
which is existing in that particular market. International Airline group has made certain
strategies to eliminate the unethical practices in business environment. It is important for
an entity to stay in the competitive market and to capture that market by the implication
of certain strategies(Reddy,York and Brannon 2010).
 Customer satisfaction : Implication of marketing mix techniques allows an organisation
to achieve the goal of customer satisfaction. As customers are the soul of any business
enterprise weather it belongs to any manufacturing industry or to a service industry. Cited
entity has properly analysed over the data regarding the needs and requirements of its
potential customers. As cited entity is framing decisions as per the requirement of its
customers Hence it can be justified that International Airline Group is satisfying the
needs of its customers(Kusluvan and et. al., 2010).
Through above mentioned points it can be justified that International Airline Group is
efficiently responding towards changes in its business environment. Positive response towards
the changes gives positive results. Satisfying the needs and requirements of customers can results
in high rate of profitability of cited entity.
TASK 4
4.1
Changes in business environment can make several impact over the working efficiency of
any business enterprise. Changes can establish new strategies and new ways to capture a targeted
market. Myla Group is providing luxurious services to its customers. In United Kingdom Myla
Group is having more than 10 offices. Its market area is limited up to the boundaries of countries
as it is dealing in inbound business operations. There are certain impact of changes over the cited
entity, these are as follows : On sector structure : There are certain changes which impacts over the working of an
enterprise in a significant manner. On sector changes can be described as the change in
16

the structure of the business organisation. Changes can be like mergers, acquisitions,
formation and liquidation (The impacts of issues and trends that drive change in the
travel and tourism sector. 2015). In merger two entities combined themselves for a
mutual purpose while acquisition can be described as a situation where an entity acquire
the other one for different purpose. Such changes can impact the existing business
environment that impact may be positive or negative. Thomas cook group has already
closed its 168 stores and terminated 1,100 workers in past few years as customers are
now spending less on foreign holidays. It has also faced the euro crisis. UK’s second-
biggest travel company has already cut down its airline fleet and sold off some of its
hotels(Benckendorff and Zehrer 2013). On businesses : Changes in business environment of travel and tourism can make
significant impact over the business operations of Myla Group, Thomas Cook Group and
The Travel Network Group. Thomas Cook Group suffered a loss of £590 million in
previous year and now the management has decided to slash costs. Thomas Cook had
planned to operate its travel agencies on bank holidays and Sundays, to extend opening
hours during a week, which can be classified as an effort to fulfil requirements of
customers(Kim, 2010). On services : Changes can impact the services provided in travel and tourism industry.
Tourists requires new services when they are on vacations. As they want to experience
something new hence tour operators should make changes in their services so as to satisfy
the needs and requirements of tourists. Customer satisfaction is core of any business
enterprise.
 On level of employment : Due to changes it may be possible that business enterprises may
cause some downfall which results in less revenue. This will directly affect the
remuneration paid to employees who are working in the cited entity. In past few years
Thomas Cook Group has terminated many of its employees which is the result of changes
in business environment of travel and tourism sector(Stone, 2011).
The above mentioned factors can be classified as the impact of changes in the business
environment of travel and tourism industry. Tour operators requires to analyse such factors and
they needs to frame such strategies which can assist it to accomplish their business objectives
and goals so take maintain the growth rate of cited entity.
17

4.2
Changes are inherent in any business environment. Its not possible that an organisation
which is existing in a business environment, can ignore this fact. Management of cited entity
needs make such strategies which can easily meet out such changes. Further this will assist cited
entity to enhance its revenue and profitability. But the consequences may goes in an opposite
direction if an entity will not respond positively towards such changes(Mariani and et. al., 2014).
Such consequences are mentioned below : Reduced sales : If an entity respond perfectly towards various situations in a positive
way then it will be profitable for such enterprise. But if they will not respond positively
towards such situations then it may reduce customer interest in buying products from
such entity. Further the grip of cited entity will be loosed over targeted market. And
other firms operating in such environment will take advantage of such situation. This
will ultimately reduce the level of sales(Cohen, 2011). Change in attitude : Irrelevant and irresponsible reaction towards marketing issues may
result in change in attitude of stakeholders of tour operators or cited entity. Stakeholders
are an important element of business environment. Their interest towards cited entity
will get a down fall which can make an adverse effect over profitability of cited entity.
 Negative image of services and products : Changes should be made as per the
requirement of tourists. If tour operators will continuously provides services with
obsoleted features then customers will set a negative image in their mind in respect of
such products or services as well as regarding service provider.
These aforementioned points can be classified as consequences of ignorance of changes
in business environment of travel and tourism industries(Scott, Peeters and Gössling, 2010).
CONCLUSION
As per above mentioned facts and figures mentioned in the report it can be concluded that
there are certain issues which can impact the travel and tourism industry. If these issues can be
analysed properly then tour operators can easily get success as well as they can accomplish the
needs and requirement of their customers. Further this will also assist Thomas cook group and
Myla Group to accomplish their business objectives and goals.
18

REFERENCES
Ashworth, G and Page, S.J., 2011. Urban tourism research: Recent progress and current
paradoxes. Tourism Management. 32(1). pp.1-15.
Battour, M.M., Ismail, M.N and Battor, M., 2010. Toward a halal tourism market. Tourism
Analysis. 15(4). pp.461-470.
Benckendorff, P and Zehrer, A., 2013. A network analysis of tourism research. Annals of
Tourism Research. 43. pp.121-149.
19

Carlisle, S and et. al., 2013. Supporting innovation for tourism development through multi-
stakeholder approaches: Experiences from Africa. Tourism Management. 35. pp.59-69.
Cohen, E and Cohen, S.A., 2012. Current sociological theories and issues in tourism. Annals of
Tourism Research. 39(4). pp.2177-2202.
Cohen, E.H., 2011. Educational dark tourism at an in populo site: The Holocaust Museum in
Jerusalem. Annals of tourism research. 38(1). pp.193-209.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
Crooks, V.A and et. al., 2011. Promoting medical tourism to India: Messages, images, and the
marketing of international patient travel. Social Science & Medicine. 72(5). pp.726-732.
Dickinson, J.E., Lumsdon, L.M and Robbins, D., 2011. Slow travel: Issues for tourism and
climate change. Journal of Sustainable Tourism. 19(3). pp.281-300.
Dunkley, R., Morgan, N and Westwood, S., 2011. Visiting the trenches: Exploring meanings and
motivations in battlefield tourism. Tourism management. 32(4). pp.860-868.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Falk, J.H and et. al., 2012. Travel and learning: A neglected tourism research area. Annals of
Tourism Research. 39(2). pp.908-927.
Hall, C.M., 2010. Crisis events in tourism: subjects of crisis in tourism. Current issues in
Tourism. 13(5). pp.401-417.
Hannam, K., Butler, G and Paris, C.M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Hartmann, R., 2014. Dark tourism, thanatourism, and dissonance in heritage tourism
management: new directions in contemporary tourism research. Journal of Heritage
Tourism. 9(2). pp.166-182.
Kim, J.H 2010. Determining the factors affecting the memorable nature of travel experiences.
Journal of Travel & Tourism Marketing. 27(8). pp.780-796.
Kusluvan, S and et. al., 2010. The human dimension a review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2).
pp.171-214.
Ladkin, A., 2011. Exploring tourism labor. Annals of Tourism Research. 38(3). pp.1135-1155.
Mariani, M.M and et. al., 2014. Managing change in tourism destinations: Key issues and current
trends. Journal of Destination Marketing & Management. 2(4). pp.269-272.
Morgan, N., Pritchard, A. and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Ooi, N and Laing, J.H., 2010. Backpacker tourism: sustainable and purposeful? Investigating the
overlap between backpacker tourism and volunteer tourism motivations. Journal of
Sustainable Tourism. 18(2). pp.191-206.
Pomering, A., Noble, G and Johnson, L.W., 2011. Conceptualising a contemporary marketing
mix for sustainable tourism. Journal of Sustainable Tourism. 19(8). pp.953-969.
Reddy, S.G., York, V.K and Brannon, L.A., 2010. Travel for treatment: students' perspective on
medical tourism. International Journal of Tourism Research. 12(5). pp.510-522.
Scott, D., Peeters, P and Gössling, S., 2010. Can tourism deliver its “aspirational” greenhouse
gas emission reduction targets?. Journal of Sustainable Tourism. 18(3). pp.393-408.
20

Sharpley, R. and Stone, P.R. eds., 2010. Tourist experience: Contemporary perspectives.
Routledge.
Smith, S., Costello, C and Muenchen, R.A., 2010. Influence of push and pull motivations on
satisfaction and behavioral intentions within a culinary tourism event. Journal of quality
assurance in hospitality & tourism. 11(1). pp.17-35.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Stone, P.R., 2011. Dark tourism: Towards a new post-disciplinary research agenda. International
Journal of Tourism Anthropology. 1(3-4). pp.318-332.
Wachowiak, H. ed., 2016. Tourism and borders: contemporary issues, policies and international
research. Routledge.
Online
Forecasting and trend analysis. 2010. [online]. Available through
:<http://www.sustainabletourismonline.com/destinations-and-communities/
implementation/ongoing-management/forecasting-and-trend-analysis>. [Accessed on
20th February 2017].
The impacts of issues and trends that drive change in the travel and tourism sector. 2015.
[online]. Available through :<http://westthamestravellers.blogspot.in/2015/06/the-
impacts-of-issues-and-trends-that_1.html>. [Accessed on 20th February 2017].
21