Analysis of TUI Group's Response to Industry Changes

The report presents an in-depth examination of TUI Group's approach to responding to the evolving travel and tourism industry. It highlights the company's emphasis on developing new products and services to attract customers, as well as its efforts to adapt to changes in consumer behavior. The analysis also touches on the impact of tourism on economic, environmental, and social aspects, as well as the effects of demand and supply on the travel and tourism industry.

UNIT 1 Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Historical development in travel and tourism.......................................................................3
1.2 structure of travel and tourism sector....................................................................................4
TASK 2............................................................................................................................................6
2.1 & 2.2 .....................................................................................................................................6
2.3 Article on travel and tourism...............................................................................................10
TASK 3..........................................................................................................................................11
3.1 Factors affecting tourism demand (TUI group)..................................................................11
3.2 Change in demand of TUI group due to supply..................................................................11
TASK 4..........................................................................................................................................12
4.1 positive and negative economic, environmental and social impacts on tourism................12
4.2 Strategies to minimise the impact.......................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Travel and tourism plays an important part in any country as it helps to enhance the
economic growth of the nation. Here the company taken is ' TUI group ' which has world’s
leading tourism business in this industry (Blanked and Chiesa, 2013,). It has a broad portfolio
which consist of 1600 travel agencies, online portals, with approximately 150 aircraft and over
300 hotels. In the present report the structure, developments, the article on travel and tourism,
presentations will be discussed. The effects of supply and demand, the positive and negative
impacts on economic, environmental and social causes on TUI group’s business will be
explained.
TASK 1
1.1 Historical development in travel and tourism.
Covered in Poster
3

1.2 structure of travel and tourism sector.
The structure of the travel and tourism has various elements that helps to attract the customers
or tourists to visit the different places. Some examples are taken to show the services of travel
and services of torus affecting the customers interested in conference, events, family tour or any
other reason. It has been noticed that hospitality and tour management services are classified
diversely. Structure is mainly classified as travel agents, supportive service, accommodation,
transportation, attractions. In addition to this, it is crucial for the tour operators to plan best
holiday packages for tourists regarding maximize their needs. Tour operators offer effective
connection with the diverse hospitality firms to have better services. Accommodation and
supportive services are being provided by suppliers of tour operators. System mainly works in
coordinative manner so that long term sustainability can be well maintained. It all depends upon
the consumer’s interest and thus providing best service helps in increasing chance of selecting the
same service.
Different transportation services are present in the market which are classified as air, road
transport and cruise. In addition to this, it can be said that air transport is considered as one of fast
service provider to travellers. It facilitates in improving travellers experience. Also, road transport
is aspect which offers adventurous trips and helps visitors to get connected with diverse locations.
In addition to this, wide range of attractions like natural and manmade destinations allows to
improve experience. Classification of locations can be as beaches, mountains and eye catchy
views.
The structure of the tourism and travel industry will be discussed in detail below: Services related to travelling: TUI group provides various services to the travellers or
the visitors such as accommodation, transportation facilities. The company has assured
4

that their agents does his job which is to satisfy the customers by providing the proper
services and by selling the brochures. Services related to tourism: the services related to the information about the destination
or the place to be visited can be collected by tourism boards. The TUI group takes care of
its visitors by providing appropriate information needed by customers with the
promotional activities about the tourism. For example: a company is offering the services
which are rated as best by the customers, it shows that the enterprise is working hard and
has positive views of its customers. Purpose of conference and events: the organisations offering the space for conference
and the events are more liked buy the customers. The TUI group also offers the same
which helps the organisation to plan, organise and host the short term and long-term
events.
 Attracting the visitors or the tourist: attraction is the most important key for the industry
for the faster growth. The attraction can be either by package or by the products and
services provided by the TUI group.
 Accommodation services: the most important for the tourism is accommodation facility
available to the tourist in the nation. The hotel which are available in the united kingdom
which the best part to attract more tourism in the nations.
 Passenger transport: For every nation the most important for the tourism is that passenger
transport available easily. The public transport is easy affordable for the tourist. Also the
car and private vehicle available to the tourist will be more better in the organisations.
5

Private organisation: as these organisation have the most important value for the tour and treavel
sector. These are the organisation which are own buy the small group which have aim of profit
maximising.
Public organisation; these are the government control organisation the main is to give more
service to the public in low cost.
Voluntary organisation: these are the non profit organisation which have aim it serve the society
with taking an money.
6

TASK 2
2.1 & 2.2
7

 Direct: the government play various and different role in the travel and tourism business.
They form the rules and regulations which the TUI group should be following to meet the
legal needs of the firm. For instance: Minimum wages paid to the workers by the
government directly affects the business.
 Indirect: the different ways in which the government affects the economy of the country
and sets the rate of interest for the activities of the nation (Becker, E., 2016.). Moreover,
it unknowingly affects that impact on the economy such as wars in the travel business. In
this, government does not raise price but due to conflicts cited business is affected. If the
government will be monitor in a better way these will help to bring more advise impact
on the tourism sector.
8

 Economic policy: The TUI group directly deals with the tourists, hotels and travel
agents. It helps to generate the employment for the new staff or the nation which are
operating their business. The travel and tourism sector is the one to give the opportunities
for the faster growth in the global services. Hence, in every country the government has
made the rules and regulations to increase the GDP of the nation.
 Political change: The government enhance their tax rates so that business will have to pay
the more for the profits which are declined. As a result of which the country can slowly
recover the natural state of tourism. In the same context the country perceive as unstable
in political changes, it adversely affects the tourism business. If the economic will be not
in the control of the nation it will give advice impact on the price of other goods and
services.
9

10

2.3 Article on travel and tourism
Travel And Tourism of India And Australia.
The article covers the positive effects of the tourism on the economy of the India and
Australia by the TUI group. The development and the growth of the various industries directly
links to the healthy tourism industry by transportation, accommodation, wildlife, arts and
entertainment of the visitors. The investments and the payments of the goods and services
provided by the group. The improvement in the living standard of the local people who visited
tourist places for the attractions of the customers toward the destination or the historic heritages
to be visited. The improvement in the quality standards of the services provided by the group to
make the customers attract and visit again.
 Travel and tourism in India: Travel and tourism is the largest service industry in India.
It provides heritage, cultural, medical, business and sports tourism. The main objective
11

of this sector is to develop and promote tourism, maintain competitiveness of India as
tourist destination and improve and expand existing tourism products to ensure
employment generation and economic growth. In this section, it provides information
about various tourist destinations, modes of travel, accommodation and approved travel
agents.
 Travel and tourism in Australia: The tourism in Australia have also attracted across
all the nation tourist. Popular Australian destinations include the coastal cities of
Sydney, Brisbane and Melbourne, as well as other high-profile destinations including
regional Queensland, the Gold Coast and the Great Barrier Reef the world's largest reef.
Australian outback are other popular locations, as is the Tasmanian wilderness The
unique Australian wildlife is also another significant point of interest in the country's
tourism.
TASK 3
3.1 Factors affecting tourism demand (TUI group)
 There are many factors which are affecting the demand of tourism weather in positively
ways or in negatively ways. These factors include economic factors, political factors,
environmental factors, technological factors, changes in customer preferences,
 The economic position of traveller also affects their demand. To fulfil tourism demand
they need freedom, time, fitness and make journey. They also need check their fitness for
journey (Xiang and et.al., 2015). If they have good economic position, they choose
expensive destinations and in case due to some changes in economy effects there position
their demands changed.
 The growth in EU is help the customer or traveller to increase their demand or wishes of
travelling in world.
 The person of different age has different demands or choices of place. As per their age
their demand or choice of place change. Older people adjusted with their younger family
members in choosing the place or destinations. Which increases factors like high
12

spending, longer stays, etc. As kids and youngsters loves to travel more in flights and at
more fun places. In this way consumers preferences affects their demands.
 Prices are very dominant factor affecting demands. Consumer demand that a good quality
trip at a reasonable price which they can afford. There demands affected when the prices
of packages are high for destination where they want to go.
 Reviews of other peoples about the company also can affects demands (Standing and
et.al., 2014). Because of which, when a person decides to visit to any place, the visitors
takes advice of their family members, friends and other customers who have already
travelled. These reviews affect their demands as if they get good reviews they travelled
with a company and bad reviews make them to switch.
3.2 Change in demand of TUI group due to supply
The key part of every organisation is to serve it's a customer with the satisfaction to grow
properly. In this reference, the different ways to complete the demand of various businesses. TUI
group can user the following steps for easy and effective fulfilment of demand:
Accommodation: the TUI group can provide the appropriate accommodation to its
customers which will help them to meet with the demands of the customers. On the other hand,
the poor accommodation facilities can give a negative impact on the customers which can create
difficulty in retaining the customers.
Tour operators: the firm needs to operate the effective operations for completion of the
demand of the customers. TUI group should give them proper training so that they can solve the
quires of the customers (Chegg and Stango, 2017).
Products with the quality and their efficiency: TUI group can meet the customer demand
with the product and services to fulfil their demand. This organisation also helps to provide the
product with the satisfaction of the customers to fulfil their demand for the positive response of
the business.
The intermediaries and the advanced technology: the cited firm can use the advanced
technology to increase its business. They can also provide use of free WIFI to its customers
which will provide easy use of information to customers anywhere in hotel. The TUI group
connects various intermediaries of business to provide better services to their customers for
growth of business.
13

Types of products used in the business: the cited firm can provide different types of
products and services as per needs and wants of customers, this will help to fulfil customer
demands. The TUI group can attract customer by providing different types of products and
services. For instance: the company can provide products and services at cheaper or lower rates
to the customers availing luxury products and services to meet demands of their customers.
TASK 4
4.1 positive and negative economic, environmental and social impacts on tourism.
The cited firm deals in the various destination in all over the world. To conduct the
research on the India and Australia from the chosen firm will give the impact on economic,
environmental and social factors of the countries (Travel and tourism, 2017). The research
helped the group to find the growth of the business in terms of positive and negative ways.
Following are the impact on product of business based on economic, environmental and social:
Economic impact: the impact on any event, conference, etc by the change in policy or the
market trend, interest rates, Customer confidence or any other factors is known as economic
impact. Economic factors that shows the negative and positive impact on TUI group are as
follows:
Direct and indirect income: the income which is directly earned by the organisation by
offering the quality products and services (Buhari’s, and Forest, 2015). On the other hand, the
indirect income is that which is not earned directly in the business such as software, equipment,
and labours. This can help to create a positive impact on Thailand and span with increasing
profitability through their operations.
Foreign exchange: the TUI group operates it business in many countries as result of
which the group has foreign currency within the organisation. By this means the cited firm can
exchange the money within the nation. This creates a positive impact on the economy of the
country and helps it to increase the economy of the nation.
Growth and contribution in the gross product: the travel and tourism industry have a
major contribution in generating the revenue to the country. This in result create the positive
impact on the nation with increasing gross profit.
14

Leakage: the profits plays a major role in success of any business to run the operations in
the organisation. The TUI group performs their activities in India and Australia in which they
were not able to provide the facilities initially which lead to have the negative impact on its
business. Environmental impact: the performance of TUI group can give many adverse and
favourable impacts on the organisation which are discussed below:
Pollution control: The group possess threat on the natural and cultural resources such as
beaches and heritage to be visited by the customers (Thaana and Verme, 2013). The major
causes of increase in pollution through sewage and noise.
Increasing the environmental awareness: the business can recognise the benefits of the
ecosystem on the wider scale to awareness regrading environment.
Social impact: the factor can influence the business of TUI group with the following factors:
the positive impact of the society of TUI group will be opportunities to get the
employment.
The negative impact of the social impact on the local business.
The loss of amenity of the host community: the behaviour of the visitors can cause the
adverse effect on the quality of the host community of the TUI group. Some examples are:
crowding, drugs and alcoholic problems.
4.2 Strategies to minimise the impact.
The business of the TUI group has not managed their functions properly on travel and tourism in
India and Australia. As a result, the organisation has built negative image in the customers mind
which will have an adverse effect to their business. Some strategies are discussed below to show
the positive and negative impact on environmental, economic and social factors can be reduced:
enhancement of the services in the organisation: To remove the negative impact from the
economic factor the TUI group can work on it. The company can enhance its services to attract
the customers and maintain the goodwill of the organisation. The strategies will help them to
create the positive impact in the minds of the customers in India and Australia.
 The strict laws and regulations should be implemented: business should implement the
rules and regulations which should be followed strictly by the staff as well as by
customers to reduce the negative impacts from the environmental factors as pollution
(Thurnell-Read and et.al., 2014). The organisation can enforce these laws and rules. It
15

helps to create awareness about health and environment so that the business can reduce
the pollution. Diversification: TUI group can diversify their services in different cities to
reduce the negative impact of social factor (Eugenio-Martin and et.al., 2016). This
strategy can be turn into a better one and can help achieve the distribution of the tourist
activities through the nations. Eco-tourism: the negative impact through the eco-tourism
can be reduced in the cited firm by preserving the wildlife and environment which will be
helpful in reducing the social conflicts between authorities and other groups.
CONCLUSION
From the above report, it can be summarised that the company ' TUI group ' has
developed many new products and services to attract its customers. The travel and tourism
industry has developed in the past years and still developing. The structure of the industry has
become very attractive as per the segments needed by the customers or the visitors. The impact
of tourism on the economic, environmental and social tourism is discussed above. The effects of
the demand on the travel and tourism industry and the impact of supply on the TUI group
products and services has been discussed in the report.
16

REFERENCES
Books and Journals
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Bennett, S., 2015. The impact of social media on travel and tourism [infographic].
Blanked, J. and Chiesa, T., 2013, May. The travel & tourism competitiveness report 2013. In the
World Economic Forum.
Blanked, J. and Chiesa, T., 2013. The Travel and Tourism Competitiveness Report 2013.
Reducing Barriers to Economic Growth and Job Creation. Geneva: World Economic
Forum.
Buhari’s, and Forest, 2015. So, Como marketing for travel and tourism: Empowering co-creation
of value. Journal of destination marketing & management. 4(3). pp.151-161.
Dredge and et.al., 2015. The tourism education futures initiative. Anatolia, 26(2), pp.340-346.
Eugenio-Martin and et.al., 2016. Low-cost travel and tourism expenditures. Annals of Tourism
Research. 57.pp.140-159.
Jenkins and et.al., 2013. Sustainability in tourism: A multidisciplinary approach. Springer
Science & Business Media.
Reisinger and et.al., 2013. Transformational tourism: Tourist perspectives. CABI.
Scales, C., 2016. Mediating the tourist experience: From brochures to virtual encounters.
Routledge.
Chegg, R. and Stango, B., 2017. Information and Communication Technologies in Tourism
2017.
Standing and et.al., 2014. The impact of the Internet in travel and tourism: A research review
2001–2010. Journal of Travel & Tourism Marketing. 31(1). pp.82-113.
Thaana and Verme, 2013. The emergence of hybrid online distribution channels in travel,
tourism and hospitality. Cornell Hospitality Quarterly. 54(3). pp.240-247.
17

Thurnell-Read and et.al., 2014. Men, masculinities, travel and tourism. Springer.
Xiang and et.al., 2015. Information technology and consumer behavior in travel and tourism:
Insights from travel planning using the internet. Journal of Retailing and Consumer
Services. 22. pp.244-249.
Online
Travel and tourism. 2017. [Online]. Available through: <https://www.uktravelandtourism.com/>.
[Accessed on 6th October 2017].
18