Tourism Management and Sustainability

This assignment delves into the crucial relationship between tourism management and sustainable development. It examines various aspects of the tourism industry, including its impact on the environment, local communities, and economies. Students are expected to analyze current trends and challenges facing tourism, such as climate change, over-tourism, and ethical considerations. The assignment encourages critical thinking about responsible tourism practices, policies, and future directions for the industry.

TRAVEL AND TOURISM ORGANISATIONS
IN A GLOBAL CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
1.3................................................................................................................................................3
TASK 2............................................................................................................................................4
2.1................................................................................................................................................4
2.2................................................................................................................................................4
2.3................................................................................................................................................5
TASK 3............................................................................................................................................6
3.1................................................................................................................................................6
3.2................................................................................................................................................6
3.3................................................................................................................................................7
3.4................................................................................................................................................8
TASK 4............................................................................................................................................8
4.1................................................................................................................................................8
4.2................................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
One of the fastest growing industries is travel and tourism in UK. It is the major source of
economic development and foreign exchange. Hospitality sector supports in promoting culture of
country all over the world. In modern era people have no time for own self, in such busy life
people like to travel to various locations to reduce stress; various tour operators provide them
attractive packages of travel alone with accommodation and entertainment facilities. There are
many travel agents, operators etc. who are engaged in this sector. Present report will focus on
travel and tourism organizations which are operating globally. Various economical and
government influences impact on the performance of such entities and all these factors will be
illustrated in the assignment (Mowforth and Munt, 2015). Technologies are important element
which enhances business of such firms and this gives chance to organizations to enter into
international market. Impact of such advanced techniques will be covered in the report.
TASK 1
1.1
Travel and tourism both look same in nature but have huge difference. Travel is limited
to transportation whereas tourism offers all facilities like accommodation, food services,
entertainment etc.
Travel organization Tourism organization
Value:
£106.9bn
Value:
£126.9bn (9.0%) of UK GDP
Products: travel entities offers transportation
facilities like air travel arrangement, bus
arrangement, etc. as per the budget of the
person.
Products: Tourism organization offers whole
tour package to the traveller like it reserves air
tickets, book hotels, provide food,
entertainment facility etc. to the visitor.
These kinds of firms organize all things as per
the requirement of the customers (Mowforth
and Munt, 2015).
Tourism entities organize packages for public,
consumers can select best suitable package for
them. They offer different products like
historical travel, adventures activities etc.

Revenue £29bn
Government supports travel sectors and it has
increased the road lines, provides more airline
roots and makes travel easy for the traveller.
Revenue: £125.2bn
Government contribution in tourism sector is
amazing as it has developed parks, visitor
attraction points, resort to promote tourism.
Visitors can book their tickets through internet. Customers can select best suitable package and
contact the companies easily through online
medium (Paraskevas and et. al, 2013).
1.2
There are so many Travel and tourism organizations which are working worldwide.
Thomson, Easy Jet Holidays, Wexas Travel etc. are some travel operators which organize travel
arrangements for the traveller and provide them all accommodation facilities. These
organizations have various responsibilities which are as below: Responsibility towards employees: Duties of travel and tourism organizations towards its
employees are important. Employers are responsible to provide their workers with
training so that they can perform better for the enterprise. To motivate them and to
encourage them for doing good work is another responsibility of the business entities.
Company has to satisfy its workers by giving attractive wages and incentives. Travel
industry is the vast sector and regularly many up-gradations have takes place so it is
essential to provide necessary training so that they can know and understand benefits of
the advanced techniques (Gursoy, Saayman and Sotiriadis, 2015). Responsibility towards customers: Thomson Company is doing well in market and
providing all essential services to its consumers. Major responsibility of the business unit
is to satisfy them and to make safe arrangement for them. For that travel operators has to
provide them efficient accommodation facilities so that they like the workplace.
Companies have to arrange their food, living, travel arrangements and apart from it the
entity is responsible in providing them with local guide facility. Responsibilities towards government: Travel's organization is responsible to support
government in the economic development (Mowforth and Munt, 2015). Companies are
liable to follow all trade regulations provided by government without any failure.

Number of legislation has been made by authorities', like tax policy have been formulated
so organizations have to pay road tax, service tax to government on time. To shareholders: Company should provide fair returns to various shareholders like
owner or partner. If they do not get proper returns and dividend they will not be able to
invest in the firm furthermore.
 To environment: Businesses are responsible to protect natural resources and to control
over pollution (Knollenberg, McGehee and Perdue, 2016).
1.3
Travel and tourism organizations formulate such strategies which can support the firms in
growing. These strategies assist in developing operations globally. Strategies employed by
tourism businesses are as maintained below:
Human resource policy:
HRM is an essential part of every business unit. HR manager formulate activities which
support the company in growth. Recruitment of skilled person is one of the greatest strategies
and company hires such talented persons which have good knowledge about industry and
technology so that they can support the entity to a great extent. HRM policies include
sustainability of business unit (Policy Impact Analysis, 2014.). By using this policy, performance
of the company can increase. Currently, such tour organizations are motivating their human
resources by providing them all facilities so that they can work better for the enterprise.
Economic strategy supports the business unit to expand and to operate it globally.
Thomas cook is the biggest travel operator in UK and it is working well in this market. Financial
planner of company make contract with different hotels and airlines so that they can provide
efficient and cheaper products to visitors.. Travel and tourism organizations use financial
resource in marketing and communication activities so that company can expand its operations
by generating more revenues (Liu and et. al, 2014).
Environmental strategy:
Tour operators are concentrating on making travel safe and secure for customers. They
are using most convenient road sits, vehicles. Their focus is to make travel eco- friendly.I

TASK 2
2.1
Performance of national economy impacts on the activities of travel and tourism sector.
Changes in national financial condition may affect growth of the business unit. Various factors
which affect actual performance of business unit are as below: Inflation rate: If country inflation rate is high then it will adversely affect the overall
performance of the company. If there is high rate of inflation then it will influence travel
rates and adversely impact on business. Companies will not be able to provide cheaper
tour packages to the customers (Camilleri, 2014). Inflation will affect the income of
person and thus the individual will not be able to spend much amount in travelling and
shall not prefer to go on other countries, by this way revenues of tourism will get
decreased. Government policy and Taxation: If government makes changes in its existing tax policy
then it will impact the business organizations. As companies will have to pay more tax
and even travelling will be costly because tour operators will not be able to provide
cheaper products to their guests.
 Availability of credit: It is the important factor which affects the overall business. If
credit worth of country is not that much good then operators will not be able to take loan
and expand business successfully (Connell, 2012).
Performance of national economy will influence holiday choices of individual
thus overall business will be impacted.
2.2
Government has made many changes in existing policies. Monetary policies: This is related with interest rate of the country. If government
increases its interest rates then borrowing will be costly and travel organizations will
have to borrow loan from banks at higher interest rates. This will impact on the business
because by this way products of the company will be costly. Whereas if government
decreases its interest rates then lending will be easily and that will positively impact on
tourism companies (Duffy, 2014).

 Fiscal policies: Taxation policies are related with the fiscal policies. Proper tax rates
encourages sustainable tourism. If fuel taxes increases then travel will be costly thus, it
will impact on performance of business unit.
 Environmental policies: Sustainable and ethical tourism is very important, it supports
country and its culture. People wants to go to other locations because of different whether
and destinations. Government is trying to protect such beautiful locations so that travel
can be encouraged. These policies try to reduce air, surface and water pollution.
Competition policy: There are so many competitors of Thomas cook like Thomson, Easy Jet
Holidays, Wexas Travel etc., all provides packages at different rates. Airlines are the biggest
competitor if they reduce their prices then company will be able to provide cheaper packages to
traveller. By this way organization will get benefited (Ezeuduji, 2015).
2.3
Tourism always brings economic development and provides new opportunities to
country. National and global events promote travel and tourism businesses. Like any natural
disasters cause human error which affect the lifestyle and environment badly. These natural
unavoidable situation impact on travel business. People not like to go on such places which are
dangerous (Liu and et. al, 2014). Earthquake is another critical situation which has taken place
before some times in UK these decrease the value of country. If government is continuously
changing then it creates negative image in front of visitor because they think place very unsafe.
Terrorist activities, changing whether impact a lot on performance of business units. As
earthquake destroy infrastructure and roads of the city in such places people do not like to go so
they avoid travel for safety purpose (Edgell Sr, 2016).
If in any city or location Olympics, world cup are occurring then it will increase interest
of public and this will attract more consumers in the country. By this way travel and tourism
business will grow. Cultural promotion is another activities which support organizations in
development. To see world cup live many people came to UK this enhanced revenues of entities
who are linked with the travel business. That gave huge benefit to airlines, hotels, tour operators
etc. So these national, global events influence the overall business of the company. Natural
events decreases value of currency thus travel became costly for the visitor in such city. Thus,
overall business affect by these activities (Walker and et. al, 2013).

TASK 3
3.1
World banks, IMF, trading blocs, OPEC etc. are some global integrated factors which
support travel and tourism industry in growing. World bank provide loan to all banks so that they
can lend money to such tour operators and hoteliers which want to expand business at low
interest rate. Implications of various global integration are as below maintained: IMF: International Monetary Fund provides loan to such developing country those who
want to promote its tourism industry. This supports in removing trade barriers of the
sector. They lend money for developing building, hotels and to make city eco friendly.
By this way people ill like to come in the place. And business of the company will
enhance (Hay, 2013).
 OPEC: It refers as The organization of the Petroleum Exporting Countries. This unit
focuses more than any other form of energy in economic development of country. They
concentrate on controlling oil prices so that travel can became cheaper for traveller. They
continuously giving their best efforts to make country eco- friendly so that tourism can be
encouraged.
3.2
Many tour operators are continuously running towards expansion of their business.
Domestic tourism are turning into international travel business because of many opportunities
options. Effect are as below: Market opportunities: As small tour agencies are expanding their business because
international travel gives many market opportunities the owner (Hua, 2016). Company
can know about the new destinations and can provide good packages to travellers.
Enterprise can come into new market and find new trends and needs of consumers
regarding travel. By this way they will be able to provide more beneficial products to
their customers. Thus, it will give benefit to domestic businesses. Increased competition: International tourism boost up competition. That some times
harm to small firms because such small scale organizations are not capable to provide
huge facilities to visitors. People directly make coordination with large corporations

through websites etc. This will affect business of domestic firms (Gössling, Scott and
Hall, 2015). Growth: International tourism gives positive growth to domestic enterprises. As they can
expand the enterprise and can put their feet in global market. This will support in
knowing about latest technology, trends and destination. Thus, company can provide
more efficient services to clients.
 Increased supply of visitors: As International tourism enhances supply of tourists, it will
enhance brand name of the company and attract more consumer towards the business
unit. People like to see new places, new destinations so by international tourism,
domestic businesses can encourage visitors to come and rake experience (Falk and et. al,
2012).
3.3
Global economy impact a lot on travel and tourism businesses. Their impact are as
below: Increased competition: Whenever a domestic tour operator enter into global marker this
gives positive growth to entity. As it increases foreign exchange and support business
unit in getting higher results. By this way entity can gain competitive advantage. Increased customer choice: Visitors have more options of destinations, places so that
will attract more consumers towards the company. That increases interest of clients
towards the travel (Impact of Natural Disasters on the Tourism Industry, 2015). Increased need for innovation: Global economy supports innovation, companies have to
prepare unique products according to demand and needs of consumers. International
travel agencies offering travel arrangement with all accommodation and entertainment
facilities to visitors. So domestic businesses have to innovate such products which can
meet with global economy so that they can survive longer in such international market.
By offering such unique products organizations would be able to enhance business of the
enterprise by attracting more consumers (Mostafanezhad, 2013).
 Economic downturn and upturn: Tourism business influences overall economy of the
country. If country has good business then it increases foreign currency this will support
economical condition of the country. If government makes tough regulation regarding
passport and travel then people will not like to go on such places thus it will affect the

foreign exchange. In addition to this, If country has cheap exchange prices and good
value of currency then it will encourage global business (Liu and et. al, 2014).
3.4
Technologies are the biggest source in expansion of any business unit. New and
advanced techniques support entities in globalisation. There are several advantages of using such
advanced practical application: Easy commination: Internet is the biggest source of communication in modern era.
Social media, mails etc. assist in making coordination with consumers. With the use of
face book or Twitter organizations can market its products and can reach till mass
audience (Werthner and et. al, 2015). Even visitors will be able to ask their quarry
directly through internet and mails. People can know about the firm by their website. Customers choice: With the use of advanced technologies consumers can easily book
their tickets for particular location. And can design their own packages. This will support
firms to identify needs and wants of visitors and then they can easily formulate strategies
to prepare such required packages.
 Remote workforce: Such advanced technologies assist companies to handle their
workforce those who are working at far location. As Thomas Cook locations and have
knowledge of same city. With the use of internet and emails company can coordinate
with workers easily and effectively and even can hire such person those who have
relevant skills (Fennell, 2014).
TASK 4
4.1
Luxury Vacations is the domestic tour operator in UK. It offers luxury travel facilities to
people of London. Company currently working within the city. Currently organization faces
some issues related to global environment. Policies related to travel and tourism is differed in
UK than other countries. So organization has to understand and has to modify business
according to those. As UK support ethical tourism and encourage tour operators to provide such
facilities in which culture of the country do not get harm. Whereas, in other countries ethical
policy are differed from the UK. Government supports tourism business for increasing foreign
currency. But in other location rules and regulations are tough so sustainability of the company

get affected. Other global factors like war, natural disaster affect the overall international
business (Filimonau, Dickinson and Robbins, 2014). Sudden natural changes adversely impact
on the business. But as Olympics held in London that gave huge success to Luxury Vacations.
Changes in airlines cost, may impact on tourism. Fashion trends of particular location affect the
business unit. Company has to provide packages and facilities as per the trends and it fails to
provide then revenues will get decreased.
4.2
There are various issues which affect the overall travel and tourism industry. Strategies to
address such problems are as below:
 Advanced technologies: Companies can implement new and latest technologies in its
workplace so that they communicate with more customers effectively. By this way needs
and demands of public shall be identified by entities. It will support business units in
surviving in changing global environment (Han and Hyun, 2014).
 Change in business structure: This is good strategy in which enterprises can turn
business from sloe trader to corporation. By this way they will have opportunity to deal
directly with mass audience. Like they can make contract with hotels and airlines and can
offer clients better services. Contract can give benefit of cheaper products and efficient
services.
 By entering into new environment: This is effective and result oriented strategy, in
which Organizations can enter into new environment to expanding business globally
(Pforr and et. al, 2014).
CONCLUSION
From the above report it can be concluded that Travel and tourism business support
country in economic development. Travel organizations arrange travelling arrangements for
visitors like bus tickets, air tickets etc. whereas, tourism firms provides all accommodations apart
from travel. Various external factors like government policies, natural disasters, customers
choice affect the overall business of the company. For dealing with such situations enterprises
have to make strategies which can assist in getting higher results. By making product of
consumer's choice, adopting advanced technologies, change in structure of business etc.
corporations can overcome from these critical global issues.

REFERENCES
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