Overcoming Economic, Environmental, and Social Challenges: A Case Study of TUI

This assignment details the strategies employed by TUI Group to tackle negative impacts in its operations. It focuses on enhancing services for customers from Thailand and Spain, implementing laws and regulations to reduce pollution, diversifying business activities worldwide, and promoting eco-tourism practices. The report evaluates these strategies' impact on economic, social, and environmental aspects within the tourism industry.

Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical developments.................................................................................................1
1.2 Structure of travel and tourism..............................................................................................2
TASK 2............................................................................................................................................3
2.3 Implications of political changes..........................................................................................3
TASK 3............................................................................................................................................4
3.1 Factors affecting tourism demand.........................................................................................4
3.2 Supply has changed at TUI Group to meet the effects of demand........................................5
TASK 4............................................................................................................................................6
4.1 Positive and negative factors and its impact on tourism.......................................................6
4.2 Strategies can be used to minimise the negative impacts.....................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
Books and journals......................................................................................................................9

INTRODUCTION
There is a great importance of travel and tourism sector because it helps in development of
economic growth by contributing an amount in this field so that it helps in development of
country. This report is based on TUI travel plc it was a British travel group and having
headquarters located in UK. The company operated in more than 180 nations and having 30
millions customers. Moreover, this report also covers the historical developments,structure,
factors and impact of external factors on travel and tourism sector.
TASK 1
1.1 Key historical developments
The tourism is considered to be the main industry as compared to others. It creating down more
than 10 percent of the economy output and generating various job opportunities. This question
describe about the key historical developments which takes place under tours and travel and also
influence of local factors, governmental factors and economic policies, effect under the demand
and supply these all factors either give a positive impacts or negative impacts on tourism
industry.
 Before 1945
In ancient times mostly the people living under agricultural, local area and rural community.
With the beginning of Industrial revolution there is no change come under travel and tourism
sector because the process which going on past that will be following and company moving very
slowly and there progressing is also low. Prior to 1950 s tourism industry was inconsistent under
hotels, restaurants, tour operators and all these people are working separately. Hotel were mainly
focusing on his business related to sell bed for nights, airlines and railway indulges in the activity
related to sell seats and travel agents engaged in selling travel and holidays and all such persons
are working independently and playing there part.
Until 1946,the world war was arisen between that period and the people who are wealthy,
privileged and carrying status are enjoying the international travel facility.
 1945-1979
The 1945 is the year under which the development is started and took place under the travel and
tourism industry and also made contribution by contributing some amount under the economic
growth.
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From the mid of 1950 s period the development is started and took place in the tourism sector
under UK and it also changes the character of the industry from the business activity of
individuals to the integrated activities. Many hotels are started who essential aim is not to give
bed only for night with that there are certain facilities and services provide by them to its
customers and customer can enjoy all such facilities for which he spent money. Transport
operators are involving under the airline business and airlines offered various facilities to Their
customers by offering down various services' such as food facility, blanket facility and so on and
also provide insurance and accommodation for the travellers who made booking.
From 1950 s the certain more improvement took place under the travel and tourism industry and
every industry whether it would, be a transport, airlines, railways takes care of there customers
and there need by made improvement under package tours, paid holidays and offered down the
various packages to attract its customers and captured the entire market.
 1980 to current day
By the 1980s there are several airlines who are offering down the various arrangements by
considering down their customers such as holiday, medical services, renting car and so on.
In 1990 s the formation and development took place under UK and due to this the several big
companies are affected with this and contribution tend to be increase in the field of economic
growth and development also takes place and in future the tourism business plays an important
role under the global and economic development there contribution is also an immense in such
field and it also helps down in enhancing education and improving its position.
1.2 Structure of travel and tourism
The structure consist down six components under travel and tourism industry and they are as
follows:
 Attractions: The attraction plays an important role under the travel and tourism industry
because people are generally travelling to see down the places which attracts them. The
attraction can either be in form of natural or man made. The natural attractions are those
which come from nature and man made attractions are due to human and forming by
human. The natural attractions such as lake, rivers, natural beauty and it attracted down
more than 6 millions people towards itself and man made attractions such as towers, park,
monuments which are constructed by an individual are attracted tourists towards it.
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 Transport:In order to reach out destinations the transport plays an important role because
without them the journey been not possible and it included railways, roadways, airlines
and many more. Over 5 millions passenger travel each year under the UK and national
express and euro lines carry down more than 12 millions passenger in a year to over 1200
destinations. Air travel is also an important medium and more than 75 percent package
holiday uses down air travel. The person can reach down its destination at short span of
time as compared to other modes and provide more leisure and comfort to its customers.
 Tour Operators:Tour operators also an important structure under the travel and tourism
industry. They are producing the holiday packages and offering it accordingly by
considering down there customers and its needs and sold it directly either by himself or
through his agents.
 Travel agents:There job is to sell down the brochures which contains the tours and travel
package, holiday packages which decided by tour operators and provide it to the public
and they are a link between tours operators and public.
 Tourism development:for development the Govt. and tourism plays an important role
under tourism sector and promoting the industry time to time. The aim behind it to attract
more and more people towards it and that helps in increasing rapid growth and
development of the country and promote settlement in field of education, employment.
TASK 2
2.1 and 2.2
Covered in ppt
2.3 Implications of political changes
Due to devaluation of currency results in high operating cost for some business. The increase in
fuel prices made an impact on air fares. It increases the cost for the travellers and now it will be a
more attracted destination for leisure visitors only. The economic conditions are not stable at all
and due to that it instability is involved under future plans. The certain businesses quit their
operations and switching their business activities and leaves down the UK. The increasing in
prices also affect the Hotel industry as well. In the different kinds of nations, there are different
rules, regulations and policies need to be implemented that impact on the functions' ad
operations. On the tourism activities, it can be impact on the demand and outcomes on the
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political stability. Political instability is very complex and it can be impact on the performing
different task at workplace. With this regard, following are different fundamental aspects exists
that can be impact on the travelling sector:
 United nation: US is the peace building in which assists to support in the nation from
different conflict, riots, etc. In this way, TUI group need to understand the political
changes of the nations which could be lead to different nations.
 World trade organisation: World trade organisation is lead with international
businesses which assists to develop travel and tourism activities in systematic manner. In
this regard, global understanding for TUI group need to solve business issues through
increasing their growth.
 World tourism and travel council: World travel and tourism activities need to be
forecast so tat economic development will be ascertain that create effective results at
workplace. It assists to provide research facility for TUI group to contribute important
part in GDP.
TASK 3
3.1 Factors affecting tourism demand
The certain factors such as primary affecting the tourism demand under tourist industry. The
some of them are as follows:
The primary factors that are affecting tourism demand under the tourist industry and it directly
gives a negative impact on jobs of the people. The population explosion, environmental, taxation
matters are affecting the tourism sector and reducing the attractiveness of tourist. The crisis and
threats in form of earthquakes, droughts, floods, terrorism, riots. Changing in demographic
conditions such as taste, fashion and preferences of people, migration, generation gap, rise of
educational levels. Technological changes and it directly made an impact on transportation,
communication and change in behaviours of consumers regarding the product quality,
quantity ,durability and so on. These are the certain factors that affect the tourism demand. The
holiday package which been decided is according to the individual's economic condition and so
they are able to make down journey easily. The behavioural related factors including an internal
state of mind relating to the capacity and motive to make the journey. The factors which are
coming out made an impact on tourism industry are unpredictable and uncertain. The tourism
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industry take down the concern of consumers because these are the only person behind it to make
down the packages and trip successful. The tourism contributing around 6 percent to the GDP.
The low investment rates, poor infrastructure facility, ineffective communication system, poor
conveyancing facility are the essential reasons behind it and it makes the tourism weak. The
people choices are not similar every time, it becomes changing due to demographic condition
related to taste, fashion, preferences and every time they want something new so it makes
difficult for the tourist industry to provide same packages every time at the same cost. So, travel
and tourism industry enhancing down the situation which arise in the market by deciding down
its packages according to the condition which create in market and every time bring something
new to attract its customers. Price orientation is also the one concept the tourist and travelling
industry selling down there quality trips at low prices in order to increase its market shares and
through that they are increasing its profit and marketability and increasing its turnover. There are
also arranging field trips and holidays for families in expectation to increase its quality. With
such standardisation they give a positive impact on their consumers and taking attention of them
and that helps in increasing its demand or turnover. The object behind promoting is not only to
sell the package, reliable product to its consumer alone with it correct placement should also
been with correct set so that activities put on a right track, growth and development will also
increase. The tours and travelling industry should meet out the demand of the travellers and users
by providing supplying and it should be done at the right place and right time and raising its
objectivity.
3.2 Supply has changed at TUI Group to meet the effects of demand
To meet the demand of customers the tours and travel industry time to time supplying down
the various services so that customer get various satisfaction from this and there needs will be
fulfilled. The TUI group using down the following ways to meet the demand of their customers
and they are ad follows:
 Accommodation as per consumer needs:The travel and tourism industry provide
accommodation facilities to there customers and charging fairly for such accommodation
that he has been provided. The main object behind TUI group it is to meet down the
requirements of customers by attracting towards them.
 Efficient tour operators:Chosen business need to operate down the efficient operators for
completing down the requirements of customers. TUI group arranged the proper training
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facility for such people who can easily handle down the queries related to the users. By
this process the industry can easily meet down the demands of the people and can also
attract its capable users.
 Quality products and services :TUI group can easily meet the demand of the users by
providing quality of products and services to them. Along, with it the organisation are
also capable to provide the products according the demands of the customers by
providing satisfaction to them. Thus, this business will be able to meet the demand of its
customers.
 Technological advancement:The TUI group can use advance technology easily to meet
its customer demand and regarding that context, it also provides Wi-Fi and other facility
to the intermediaries and operators so by help of that they can easily provide the
information as per the need and connect with them easily and communicate it anywhere.
With the help of this, TUI group will connect down the various business and
intermediaries so by help of them provide effective services to its customers.
 Product differentiation:The TUI group provide various types of product and services to
the customers according to there needs and requirements. Through, with the help of this
TUI attract down more and more customers easily. For example:they provide different
types of products and services to its customer as per the needs and requirements of
different class of people and meet there demand accordingly.
TASK 4
4.1Positive and negative factors and its impact on tourism
The cited business has various travelling destinations across the various parts of the nation.
Regarding such context it has conduct down various research work under the Spain so they get
knowledge regarding the factors relates to environmental, economical and environmental factors
which impact on TUI group.In research they are find out the various impacts in form of positive
and negative which affect the industry. The following are the impacts in form of economic,
environment and social factors are as follows:
Economic factors impact:.
 The TUI group operations their functions in many countries so they doing business by
considering out the foreign currency rates.
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 The TUI group exchange their money with their nations so that helps down in increasing
economy of the nation.
 The TUI group contributing major part of its income so that it helps down country in
increasing GDP and national income .
 TUI group performing there activities worldwide, so it helps them in raising profit and
the tax which they are paying to the government that tax helps down country in
increasing growth and development of the nation.
Environmental factors impact:
The TUI group perform there activity helps down country growth and development and it also
made an impact on environments favourably or adversely.
 TUI group make an essential contribution in the field of environmental areas and protect
down the natural areas and culture by enhancing them.
 They can create the awareness and increasing it among the people.
 They a;lso impact negatively on natural resources by creating pollution on such factors
and also increasing the pollution in the form of air and noise.
Social factors impact:
Social factors also impact the business either in a positive way or negative way. Regarding to
such context the following factors that create a impact on TUI group are as follows:
 The TUI group performing there activity and conduct it all over the world so that
different people with different culture take part and understand the culture.
 It also preserves the culture and customs and also encourage the reason behind it .The
different culture helpful for the country to enhance the global awareness.
 The visitor attitude can also make a negative impact on social factors and it also made an
adverse impact of host community. For examples human trafficking, drugs, overcrowding
and so on.
4.2 Strategies can be used to minimise the negative impacts
The TUI group not able to performed down their functions under Thailand and Spain and due
that it creates a negative impact on the industry. In this context, there are some strategies that
been prepared to overcome the situation which take place under economical, environmental and
social and can be an explained as below:
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 Focusing down the services of the organisation:The TUI group remove down the certain
negative impacts which affect the TUI group. To deal with such situation the TUI group
enhancing its product and services and giving maximum satisfaction to its customers.
They essentially provide the services to its customers so that helps down customer in
attracting towards its product. This strategy helpful for such customers who are belonged
from the Thailand and Spain.
 Implementation of laws, rules and regulations:The cited business, can reduce the negative
factor in form of pollution which previously made an impact on environment. Moreover,
they prepare down various laws and implementing it to reduce such negative factors and
also try to create an awareness and generate among people so that business can conduct
oits activity without creating any pollution problems.
 Diversification:TUI remove down the negative impacts of social factors and providing
various strategies and plans so they can conduct there work properly and can raised there
activities across the different parts of the world.
 Eco tourism:The chosen business, can reducing down the negative factors which affect
the tourism industry and keep focusing on the concept related to the Eco tourism. So,
through that it can preserve down the wildlife, culture and en compassion for living
creatures. Furthermore, it is also reducing the conflicts and disputes which can takes
place between different authorities, departments and groups .
CONCLUSION
It can conclude from the above report that the TUI plays an important role in the field of tourist
and travelling industry and also give an immense contribution in the field og tourism sector.They
perform down various functions by considering out different factor in field of social, economic
and environmental factors. It also considered different factors which affect the demand and
supply in the field of travel, and tourism industry such as demographic factors, technological
factors, political factors and working accordingly to meet the demand of there customers by
supplying out various products and service and providing maximum satisfaction to them
Moreover, the supply factors also affect the industrial activity. Regarding such context, tours and
travel industry provide various facilities to there customers in form of accommodations, tour
packages, food facilities, insurance and so on and taking care of certain things in offer to provide
comfort and leisure to them .This reports evaluate down the impact related to the economic,
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social and environmental aspects on the tour and travelling industry. Lastly, it also prepared
down the various approaches to minimise the negative impact by promoting diversification and
Eco tourism.
REFERENCES
Books and journals
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