Structure of Travel and Tourism Industry Assignment

THE TRAVEL AND
TOURISM SECTOR

Table of Contents
INTROUDUCTION........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Historical developments in the travel and tourism sector.....................................................1
1.2 Structure of travel and tourism industry................................................................................2
TASK 2............................................................................................................................................3
2.1 Analysing the functions of government, government sponsored bodies and international
agencies in travel and tourism.....................................................................................................3
2.2 Local and national economic policy that influences the success of the travel and tourism
sector...........................................................................................................................................4
2.3 Implications of political change on the travel and tourism sector in different countries......4
TASK 3............................................................................................................................................5
3.1 Factors affecting tourism demand.........................................................................................5
3.2 To analyse how supply has changed to meet the effects of Demand....................................6
TASK 4............................................................................................................................................7
4.1 evaluation of main positive and negative economic, environmental and social impact of
tourism.........................................................................................................................................7
4.2 Strategies for minimising the negative impact while maximising the positive impact.........7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTROUDUCTION
According to the current market scenario, travel and tourism is considered as a rapid
growth sector in the world. With the increase in the economy, people are getting large sum of
salary and they are utilising these for travelling (Travel and tourism sector, 2016). Tourism is
considered as a big industry and many lot of organisation are establishing their business in this
sector. The report will throw light on the historical developments in travel and tourism sector
along with this different structure of travel industry is also mentioned in this assignment. Other
than this, functions of government and international agencies in travel is included in this report.
Local and national economic policy and how it influence the success in the sector is mentioned
in this report. Apart from this, factors affecting tourism demand. Lastly, positive and negative
impact on tourism is included in this.
TASK 1
1.1 Historical developments in the travel and tourism sector
In England, there are many fascinating and excited places where approximately 30
millions of people visits every year. With the change in course of time, travel and tourism sector
has changed. During the period of 1830-40's travellers use to visit Queen's Bazaar that was
situated in Oxford Street to see the Royal Clarence Vase. During the period of 1870-80,
travellers were attracted by ice-staking, rifle shooting at the time of winters this helped them in
gaining maximum popularity. 1880-1910 is considered as the period when travellers wants to
explore different and new cultures and for this, many exhibitions were conducted through which
visitor got a chance to witness different kinds of products. During the period from 1920-40,
during this period Buckingham Place was the main attraction the people use to go there to visit to
see the changing of the guard that happened on a daily basis (Mok, Sparks and Kadampully,
2013).
Therefore, from the past it can be evaluated it was during 1945, when the growth in this
sectors has been seen. Henceforth, earlier travelling was done only to transport goods from one
place to another. From the period of 1960, various factors arises for example interest in long
trips, increase in income of people along with the improvement in tour packages attracted more
and more travellers towards United Kingdom.
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According to the recent scenario, travel and tourism has shown a growth and this
happened because of the reason that are provided by the travel companies. For example: Thomas
Cook has developed its packages in such a manner that it pull attention of maximum number of
travellers and rates they have implemented are very affordable. Therefore, they are following
many strategies for grabbing attention of maximum number of people (Morgan, Pritchard and
Pride, 2011).
Although the phase and development of travel and tourism was different according to the
various time period but they have increased the popularity of the places that are available in
United Kingdom. This has helped the nation in generating more and more revenues.
1.2 Structure of travel and tourism industry
This segment consist of six components that are essential for completing the entire
process of travel and tourism:
Tourist attraction: This is considered as an main element that pull the attention of
maximum travellers. It includes both natural and man-made piece. In United Kingdom, Lake
District and Blackpool Beach are the common source of attraction where around 6 million people
visit in a year. Alton Tower is the famous theme park that are visited by maximum number of
visitors in order to enjoy and spend time with their family and friends.
Transport: For visiting it is required to have a better a proper transport through which
travellers can travel form one place to another. This may include air, train, road or water
transport. According to a study around 25% of tourist outlay for a trip therefore, travel agency of
United Kingdom are providing better services to its visitors (McCabe, Minnaert and Diekmann,
2011).
Tour Operators: They are the one who develop holidays in the form of packages, for
this, they negotiate with various transport providers and accommodation. Therefore, they buy in
bulk so that they can reduce the cost.
Travel agents: Their prime role is to sell the brochures of different travel destinations so
that they can grab attraction of maximum number of people. Therefore, it is important that a
better communication can be maintained between tour operators and public this will help them in
providing special holidays. In United Kingdom there are various travel agents which are giving
suitable offers according to the choices and preferences of the customers at a very reasonable
rates.
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Tourism development: With the increase in number of visitors in United Kingdom,
regulatory bodies have implemented different strategies for attracting more and more people
towards them (Paget, Dimanche and Mounet, 2010). For this, many man made attractions were
developed according to the different areas. Tourism development gives a large information as per
the region and includes various perspective visitors. Visitors can gain knowledge from literature,
other than this, it involves promotional activities.
TASK 2
2.1 Analysing the functions of government, government sponsored bodies and international
agencies in travel and tourism
Now a days, for a country, travel and tourism plays an important role as by providing
them best offers they attract more and more traveller towards their nation. It is well known that
the sector of travel and tourism has occupied a vast market area because of which a competition
can be seen. Therefore, role of different regulatory bodies are mentioned below in order to
understand it in a better manner:
Local Government: In previous times local government were solely responsible for the
growth of tourism sector. With the emergence of railway it help the nation in establishing a
better transport services and this is also one of the reason that for starting of tourism sector.
Thomas and Cook is one of the leading industry that is influencing the local government. A 14%
of amount in the form of taxes are paid by the company solely. Other than this, luxury taxes
imposed by the local government on public is who wants to utilise the services of travel and
tourism sector this is helping them in generating more and more revenues (Xiang and Gretzel,
2010). Apart from this, some of the restrictions are also imposed by the local government so that
travellers doesn't harm the property and the functioning of the regulatory bodies as well. Local
government is keeping a proper record of the activities and from this, it has been evaluated that
34.4 million visitors came to United Kingdom and with a record of £21.8 billion can been seen.
For giving excellent experience, local government are providing better facilities and services.
Along with this they are formulating various policies for grabbing attention of maximum number
of people.
International bodies: Government of United Kingdom are not only focussing at local
level but also providing facilities at international level as well. It is widely accepted that tourism
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is considered as a great sources for fetching foreign currency at large number. Therefore, to
increase the tourism sector it is important to maintain a coordination between the nations this
will help them in providing better facilities like visa, Passport, civil aviation and many more
(Pulina, Detotto and Paba, 2010).
Therefore, both local and international bodies plays a significant role in generating more
and more revenues in given time period.
2.2 Local and national economic policy that influences the success of the travel and tourism
sector
Economic policy can have a great impact on the business of travel and tourism as they
help the country in generating a large amount of revenues in a specific time period. For example:
suppose there is a hotel that comes under the local government, this will help the tourism
industry will be given benefits. As with the increase in more number of visitors it will help the
nation in generating more and more money (Ekanayake and Long, 2012).
Therefore, economy of the nation can have a direct impact on travel and tourism sector
directly or indirectly. Thus, monetary policies formulated by the regulatory bodies not only help
tourism sector according to the rules and regulations but also it assist them in exchanging the
rates of currency. It may differ from the time to times. During the period of vacations travelling
may become less expensive for travellers of different countries.
Henceforth, economy policy plays a vital role in increasing the popularity of travel and
tourism. So , it is important that country make changes in their economic system in such a way
that it doesn't hamper the activities of travel and tourism. Thus, travel and tourism of Scotland is
giving them maximum benefits. Regulatory bodies of the country has implemented policy like
economic strategic since 2007 and economic recovery plans that was introduced in the year
2009. It has helped them in tackling the challenges in the economy along with this it has
increased the competitive and sustainability of the economy as a result it is reducing inequality.
Hence, it is giving them a framework through which they can achieving the goals and objectives
in certain time period. As a result it will provide long term prosperity to the Scottish economy
(Akkemik, 2012).
2.3 Implications of political change on the travel and tourism sector in different countries
For a country, travel and tourism is considered as one of the important sector as it help
them in increasing their revenues which a nation can use for providing better services and
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facilities. According to the study, it has been evaluated that touristy arrival in United Kingdom
has reached to around 922 million in 2008 and it will raise to approximately 1.6 billion by 2020
which is a good statistics.
Tourism and politics can be directly linked with one another thus, they share a
relationship and consist of social science of tourism. Therefore, political trends and global
economic can affect the entire business of tourism sector. Thus, most of the nation consider
travel and tourism as an effective tool for having changes in society. Tourism plays a key role in
making proper strategies so that the sector can be grown in an better manner. As a result it will
help them in reducing the poverty and unemployment (Polo Pena and et. al, 2013).
There can be many reasons that can hamper travel and tourism sector for example
political economy: communal political divide, ethical differences are the key elements that can
influence the sector. Other than this, unstability in the political environment also affect the
growth in this sector. For example: a recent happening of Brexit has lowered down the growth of
the travel and tourism sector. This will continue till any judgement is given by the court of
United Kingdom. Therefore, it has provided a lot of positive and negative impact on the number
of travellers who wants to visit European countries.
Another example can be taken from the situation of Moscow, Russia because of the
political unrest in the country this has a great impact on the tourism industry. Now a days Russia
has focussed and managed the consequences of crises as a result it has reduced the inbound
tourism. For this, nation is using various mediums for attracting more and more travellers
towards their nation. Thus, it is helping them in generating a large number of revenues (del Mar
Alonso-Almeida and Bremser, 2013).
TASK 3
3.1 Factors affecting tourism demand
Travel and tourism is considered as an important element thus, it is defined as a term that
includes the factor through which level of demands can be increased. There are many factors that
can hamper the affect the demands of tourism and they are mentioned below:
Demographics: This is one of the factor that can play an important role in influencing the
activity of tourism. Therefore, in context with Scottish they have an effective and fascinating
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demographical area as compared to other countries in the world. This includes various natural
and man made attractive places along with this, it covers big mountains and scenic beauty.
Price factor: It is looked by the visitor so that they can properly plan their trip according
to the budget they are having. This includes the prices of travel, accommodation and many more
this can differ according to the places and it can be high or low. For example: the range of
travelling from London to Paris is around £25 or less but in some situations it can be higher than
usual (Martínez, Pérez and Rodríguez del Bosque, 2013).
Non-price factor: This includes factor like image of a destination, this can fascinate
people or vice versa. In terms of Scotland it have most of the attracting places in the form of
world heritage sites and many more .
Technology: This is considered as the biggest factor that plays a vital role in spreading
awareness about travel and tourism sector. It assist the country and travel agencies in reaching to
maximum number of people towards their countries. For example: most of the nation make
attractive advertisement for pulling the attention of maximum number of people.
Governmental Policy: The sector of travel and tourism is partially regulated by the
governmental agencies. For this, they formulate certain policies that are to understand by so as to
get effective results (Perch-Nielsen, 2010).
Therefore, all the factors that are mentioned above are required to be fulfilled in order to
increase the demands of travel and tourism sector. For this, the country is making Edinburgh
Tourism Action Plan for the same but it is not giving them effective results.
3.2 To analyse how supply has changed to meet the effects of Demand
Tourism supply is one of the key element that are to be looked out by the regulatory
bodies of the nation who are considered as the host. This includes both natural and man made
resources. Apart form this, it includes telecommunication, accommodation and transport which
are determined as an important factor and it is important to be followed in order to have effective
results. Along with this, travel agencies, tour operator, visitor manager are also important to be
concerned.
The concept of “Tourist supply chain” is derived from economy and it help them in
evaluating the difference that are required to enter in the contractual agreements to supply
chains. Therefore, supply is primarily consist of services that can make the trip comfortable
(Laws, 2011). So, by taking permissions from regulatory bodies travel and tourism sector can
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ease the entire process. In context with Scotland, an increase in number of hotel rooms is
benefiting the entire sector as more and more people are coming to exotic destinations in order to
enjoy their vacations. Along with this, Scotland, has lowered down the fares of their airlines
which is breaking the monopoly and large number of people are travelling from one place to
another. Thus, in addition to this they have set certain norms and according to the demands of its
clients. Henceforth, for increase the supply of the tickets companies have started providing
facilities of online bookings under which anybody can book their tickets form anywhere in the
world.
Investment in the campaigns has supported them in capturing a large number of market
shares in the world (Mok, Sparks and Kadampully, 2013).
TASK 4
4.1 evaluation of main positive and negative economic, environmental and social impact of
tourism
There are various factors that can have an impact on the business of travel and tourism
and it can be in the form of positive and negative. This sector plays a vital role in increasing the
GDP of a nation. Therefore, it help them in maintaining a sustainable tourism environment so
that travellers visit again and again. Thus, it have both positive and negative impact on the
economic, environmental and social element of the nation. In context with economy, they are
helping the nation in generating more number of employment opportunities so that maximum
number of people can avail that. It will assist them in increasing the sales and profitability of the
nation. As the industry is includes sectors like hospitality, service industry it will enhance the
employment in raw materials (Morgan, Pritchard and Pride, 2011).
In context with environmental factor they are helping them in maintaining and conserving
natural resources so that they can preserve all the elements. If it is not being concerned than it
can ruins the tourist spots and areas as well. By providing the awareness about knowledge about
preserving the historical and cultural sites regulatory bodies can secure the tourist attraction.
Lastly, in terms of socially, tourist must be given information about the cultures and cross
culture so that they can have proper knowledge of various religious culture and differences.
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Therefore, in context with negative side of environment, travellers can damage the
ecosystem by pollution along with the providing harm to natural and heritage sites. Thus, in
terms of social aspect, travellers can affect the sentiments of the culture.
4.2 Strategies for minimising the negative impact while maximising the positive impact
For minimising the negative impacts it is important that they every individual must take
equal participation so as to improve the business of others as well. Instead of using resources by
them alone they must work collaborately so that they can have constructive progress (McCabe,
Minnaert and Diekmann, 2011). Apart form this, they can impose penalties and fines who seem
to spoil destination and important sites. Therefore, by spreading proper knowledge about the
sites will make them aware about their behaviour inside the sites. By providing rewards for their
for a good deed this may create a healthy competition and promote responsible travelling among
the people who are not aware of travel and tourism.
Other than this, some of the strategies that will change negative impact are like tourist
must be given an option of staying in local areas instead of living in resorts and hotels. This will
help them in understanding the culture of locals that are different from others. Along with this,
giving proper information about the tourist destination will make them feel connected form the
tourist places.
Therefore, by adopting the all the strategies that are mentioned above government of the
nation can change the negative factor into positive one (Paget, Dimanche and Mounet, 2010).
CONCLUSION
From the above report it has been concluded that, as tourism is a growing sector there are
various elements that are to be explored and it will help them in creating a large number of jobs.
It promotes the economic growth, of the nation and it can be seen with the increase if the GDP.
Therefore, there are various factors that are to be followed of having an effective growth in the
travel and tourism sector.
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REFERENCES
Books and Journals
Akkemik, K. A., 2012. Assessing the importance of international tourism for the Turkish
economy: A social accounting matrix analysis. Tourism Management. 33(4). pp.790-
801.
del Mar Alonso-Almeida, M. and Bremser, K., 2013. Strategic responses of the Spanish
hospitality sector to the financial crisis. International Journal of Hospitality
Management. 32. pp.141-148.
Ekanayake, E. M and Long, A. E., 2012. Tourism development and economic growth in
developing countries.
Laws, E., 2011. Tourist destination governance: Practice, theory and issues. Cabi.
Martínez, P., Pérez, A and Rodríguez del Bosque, I., 2013. Measuring corporate social
responsibility in tourism: Development and validation of an efficient measurement scale
in the hospitality industry. Journal of Travel & Tourism Marketing. 30(4). pp.365-385.
McCabe, S., Minnaert, L and Diekmann, A. eds., 2011. Social tourism in Europe: Theory and
practice (Vol. 52). Channel View Publications.
Mok, C., Sparks, B and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Morgan, N., Pritchard, A and Pride, R., 2011. Destination brands: Managing place reputation.
Routledge.
Paget, E., Dimanche, F and Mounet, J. P., 2010. A tourism innovation case: An actor-network
approach. Annals of Tourism Research. 37(3). pp.828-847.
Perch-Nielsen, S. L., 2010. The vulnerability of beach tourism to climate change—an index
approach. Climatic change. 100(3). pp.579-606.
Polo Pena and et. al, 2013. Market orientation as a strategy for the rural tourism sector: Its effect
on tourist behavior and the performance of enterprises. Journal of Travel Research.
52(2). pp.225-239.
Pulina, M., Detotto, C and Paba, A., 2010. An investigation into the relationship between size
and efficiency of the Italian hospitality sector: A window DEA approach. European
Journal of Operational Research. 204(3). pp.613-620.
Xiang, Z and Gretzel, U., 2010. Role of social media in online travel information search.
Tourism management. 31(2). pp.179-188.
Online
Travel and tourism sector. 2016. [Online]. Available through:
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