The Contemporary Travel and Tourism Industry

This report discusses the development and elements of the travel and tourism industry, factors influencing the tourism sector, models of motivation and influence on consumer decision making, and recent trends in international travel.

The Contemporary Travel
and Tourism Industry

Contents
INTRODUCTION.......................................................................................................................................3
LO 1............................................................................................................................................................3
P1 Development of tourism and travel industry.......................................................................................3
P2 Elements of travel and tourism industry.............................................................................................4
LO 2............................................................................................................................................................5
P3 Factors influencing the tourism sector................................................................................................5
P4 Models of motivation and influence on consumer decision making...................................................7
LO3.............................................................................................................................................................8
P5 Recent and emerging trends in international travel.............................................................................8
LO 4............................................................................................................................................................9
P6 Different factors affecting the global destination................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................12

INTRODUCTION
Travel and tourism is a field for pleasure and business. It also includes the theory and
practice of touring, the business of attracting of attracting customers, accommodating, and
entertaining tourists, and the business of operating tours. Tourism may be international, or within
the traveller's country. The World Tourism Organization (UNWTO) is the specialized agency
which is responsible for the sustainable and accessible tourism. It was founded in the year 1975
and is a leading international business in the tourism sector in order to promote tourism and
travelling to increase the economic growth of the countries. The report will outline the
development of the travel and tourism industry. Further it will discuss about the different
elements of the industry of tourism and travel. Later it will discuss about the factors which
influences the travel and tourism sector. Also the report will highlight the motivational methods
which are used to influence the customer’s process of decision making. Furthermore it will
demonstrate the recent and emerging trends in the sector of international tourism and travel
industry. In the end the report will evaluate and analyze the different types of factors which
affect the popularity of a global destination.
LO 1
P1 Development of tourism and travel industry
Travel and tourism industry plays a very crucial and vital role in enhancing, appealing
and supporting the economy of any country. This sector is seen as one of the main leading
industries in the world (Marine-Roig and Clavé, 2015). According to the research by the World
Travel and Tourism Council (2001), the report indicated that tourism has created more than ten
percent of the global economic output and 1 in 10 jobs worldwide in every country. The
development of the travel and the tourism industry was given a much importance because of the
following reasons
The time line chart of travel and tourism industry developments:
Time period Development
3000 BC Travel mode was for only reason of business

1500 BC Travel mode was religion and leisure or pleasure, mainly done by
Egyptian
6BC Heritage and cultural mode
5BC Religion form of tourism mainly considered by Greece.
Middle ages Holy day or holiday came into existence, mainly done by European
16 AD Pilgrimages by European
18th century History or cultural tourism referred as grand tour.
1840 Inclusive individual travel was invented first by Englishmen
Thomas Cook
1990s Development of multinational airlines like Delta, American Airlines
etc
20th century
VFR, mass international tourism, online tour operation etc (Lyons,
Hanley, Wearing, and Neil, 2012)
P2 Elements of travel and tourism industry
Travel and tourism industry is gaining importance because of the numerous advantages
and the benefits which it brings for the country (Buonincontri and Micera, 2016). There are
majorly three elements of the travel and the tourism sector which are discussed below –
 Accommodation – this refers to a place where in the people lives temporarily in places
like guest’s house, lodge, hotels, caravan cottage inns etc. When the people go out for the
purpose of the travelling and roaming around then the first thing which they need is to
have a place to live and rest. So there the need of the accommodation arises for that
person to live and stay. This need of shelter leads to development of many other needs
like eating, drinking recreation, sports, conventions, professional meetings and wedding
banquets associations and others.

 Restaurants and caterer – when a person goes out to travel it is not possible for them to
carry the eatables and food with them every time. So for this they have to rely upon the
restaurants and the hotels. This is an industry which is engaged in the business of
providing food and beverages and related services to the customers and the tourists. This
type of industry is engaged in the food and beverage sector because it is the most
promising sector because of the reason that many people loves to travel. Even the people
when go out to travel in different countries can live without buying clothes or other types
of clothing but no tourists that can survive without the taste of the food.
 Transportation – this is another major element of the travel industry. Without this
element the travel and tourism industry cannot even exist. This is because of the reason
that is there will be no medium to go to another place then there will be no existence of
the travel and tourism industry. It is a service based business which is engaged in the
field of the transportation. Transportation can be done in many ways like by land, sea and
air (Sainaghi and Baggio, 2017). There are also facilities which are carried out by the
private or state-owned companies and authorities. Transportation services and the mode
of transport are also greatly affected the tourism industry, particularly the ease of air
transportation services, which provides affordable prices for all circles, led to increased
activity traveled from place to place, or other area.
 Money changer – this is another element of the travel and tourism sector because
without this element the travelling, food and accommodation anything is not possible. For
any action done while travelling the money is needed. When a person travels to a foreign
country then he needs to have the currency of that particular country so for this he needs
to take help of the money exchanger. The money changer takes the domestic currency
from the travellers and then they provide the equivalent amount of the money in the
foreign currency. This helps the travellers in spending the money easily.
LO 2
P3 Factors influencing the tourism sector
The travel and tourism industry is the world’s fastest and largest growing industries as
well as a major source of the foreign exchange earnings and also generate more employment

opportunities for many countries. There are many factors that influence the running of the
tourism industry. These factors are as follows –
 Economy of the country – this is the major factor which influences the travel and
tourism industry. The economy faces many different stages in the working. Sometimes
the economy is at boom and sometimes the economy faces the recession period. At times
of any economic turbulence and disorder the country’s tourism industry is majorly
affected. As there is economic slowdown in the country so there will be less tourists and
the tourist business will be hampered and will suffer loss. On the contrary if the economy
is doing well then the tourism and travelling business of that country will flourish and
prosper (Oviedo-García, 2016). More tourists will come in the country and also many
people of the country will go out to travel which will increase the tourism business of the
country.
 Environmental factors – these are the factors which relates to the environment of the
country where the people go for travelling and roaming. There are majorly two
environmental factors which affect the tourism that is good climatic condition and the
beautiful scenery. Good and pleasant climate is the most important feature for the
attraction for any tourist place because if the climate will be good then more and more
people will be attracted towards the place and in turn tourism will increase. Also the
tourists are attracted to the beautiful ambience and scenery at the tourist place.
 Religious factors – many a time the religious factor also affect the business of tourism
and travel. Many people often make religious monuments and pilgrims to attract the
tourists. The religious factors increases the tourism because the tourist are attracted
towards the places of religious importance because they get inner peace by going to such
places, get blessings of their deities etc. And because of this reason the tourism and
travelling is booming at the holy places.
 Cultural and historical factors – the presence of the historical monuments and the
cultures of the country also affects the tourism and travel industry. This is because of the
reason that many people love and enjoy exploring destinations where there are famous,
marvelous forts, castles and palaces of earlier kings and queens, ancient monuments etc.
Also many tourists are attracted to places of historical significance and that which have a
legacy of rich cultural heritage.

P4 Models of motivation and influence on consumer decision making
Travel and tourism industry is gaining importance because of the numerous advantages
and the benefits which it brings for the country. Travel and tourism industry plays a very crucial
and vital role in enhancing, appealing and supporting the economy of any country. For this the
country’s economy employs many models of motivation that influences the consumer’s decision
making process. For this the model used by different companies are Maslow need hierarchy
model of motivation. The model is explained as follows –
 Physiological needs – these are the needs which are the foundation or basic to every
human being. Without the fulfillment of this need the person cannot go further in the
pyramid of fulfilling the other needs. This need is considered very important for the
survival of the human being and is the first step in internal motivation. This includes
travelling for the purpose of buying the groceries, shopping for the apparels, going out for
having food and eatables etc.
 Safety needs – after the fulfillment of the basic needs that is the physiological needs
come the safety needs. This needs work for keeping oneself safe from the harms like
shelter, health, safety and safe environment. For fulfilling the safety needs it includes
travelling for the work, exercise for maintaining the health, travelling for the medical aids
etc.
 Social belonging needs – after the fulfillment of the above two needs comes the need for
the interpersonal and social belonging. Humans need to feel a sense of belonging and
acceptance among the different social groups regardless of whether the group is small or
large (Gretzel, Ham and Koo, 2018). For the accomplishment of the needs of the social
belonging it includes travelling for the social events, for providing the religious services
etc.
 Self – esteem needs- these are the ego needs which are to be fulfilled after the fulfillment
of the above three needs. The esteem represents and demonstrates the typical feeling of
human desiring to be accepted and valued by others. For fulfilling the self-esteem needs
the person can travel to work for status, independently going for the adventure seeking
etc.
 Self- actualization needs – this is the last need which is to be fulfilled by the person to
be fully satisfied. This level of need refer to what a person’s full potential is and the
realization of that potential. For self-actualization need to be fulfilled the person can
travel for restlessness, variety seeking, curiosity etc.

LO3
P5 Recent and emerging trends in international travel
The travelling and the tourism business is now gaining more popularity and importance because
now a days as the living standard of the people has increased so they now don’t think travelling as a
luxury rather they think it as an essential and necessary part of their life. They do not pay attention to the
money spent on the travelling rather the people values the memories and experiences what they have
while travelling. Now a days because of globalization and the effect of cross border cultures the people
prefers to invest their money in adventures, travelling, roaming rather than in purchasing collectibles,
expensive cars etc. The recent trends which are emerging in the international travel and tourism are as
follows –
 Eco – tourism – this factor is increasingly becoming popular because more and more
travellers are becoming more conscious towards the environment to maintain its
sustainability. Eco-tourism means travelling to a relatively untouched environment with
the intention to give something back to the society which you visit. This type of travel
gives visitors an insight into the effect humans can have on the environment and for
travellers to appreciate the planet more.
 Technology – this is a factor which keeps on updating every time. In this ever changing,
globalized and dynamic environment the technology is the only factor which keeps on
changing continuously. In travel and tourism industry the technology plays a very
important and crucial role. . The technological development has been influencing the
tourism business and with that it also helps in increasing the demands of the products and
services among the tourists. Increasing use of the internet is the main reason behind the
success of tourism industry and this helps the tourism industry in approaching the
customers through the use of various different types of internet communication methods.
With this technological help the tourism business has been able to communicate with the
tourists with more personal contact. Apart from this the increasing use of mobile apps are
also helpful as the customers are having more accurate, correct and precise information
through these apps and also the business is ensuring to maintain their customer services
through these apps. More independent travellers - According to the Independent Traveller's World (ITW),
the number of independent travellers is on the increase. In a recent survey carried out by

ITW, 44% of the people considered themselves to be independent travellers when they
were asked about being the independent traveller. The survey also showed that the
number of people using travel agents had gone down from 56% to 28%. This means that
people now prefer to select individual elements from various operators and put together
their own holiday, rather than booking a package holiday. This is possible only because
of the updating in the technology because it made it easier for the travellers to choose for
the locations and every other arrangement on their own without relying upon the agents.
So, the travel agents are losing their business because of the reason that people are able to
discover a much simpler way to book their holidays, over the internet.
LO 4
P6 Different factors affecting the global destination
The tourism demand refers to the total numbers of the persons who are travelling and
who wishes and aspires to travel and use the different types of services and the facilities provided
by the tourism business. The major global destination in the United Kingdom is Manchester. It is
a major city in the northwest of the England which is rich in the industrial heritage. There are
some factors which affects the popularity of the destination globally are as follows –
 Demographics - it refers to the characteristics of the people living in the particular area
to form a group of people with same characteristics especially in relation to their age,
gender, income etc. In the present scenario the households and the families are changing
towards the variety while on the other hand the migration to and from different countries
are impacting the structure of the society and due to which it is changing the shape of
global destination. The world population has been growing recklessly and because of this
it brings changes and influences the tourist’s types, their origins, their travelling nature
and destination choice, types of accommodation they prefer, the activities preferred by
the tourists. There are three major areas in the demographics which are impacting the
tourism demand such as population growth and aging, migration and household
composition and travel parties.
 Emerging economies – this is another factor which influences the popularity of the
global destination. Emerging economic situation has been impacting on the tourists

buying behaviors because if the economy is high in prices then the tourists and travellers
will not buy much things. On the contrary if the economy is low or moderate then the
people will buy more and more things. Also the cost of the products which are attached
with the tourist and the cost of travel have been impacting over the demand of the tourism
product. Tourism organizations have been providing competitive prices to gain the
attractions of the tourists.
 Technological factors – this is also a major factor that impacts and influences the
popularity of the global destination. If the place will be outdated in the terms of the
technology then there will be very less tourists travelling to those countries. The
technological evolution and development has been influencing the tourism business as
well as helping in increasing the demands of the products and services among the tourists
(Hernández-Martín, Rodríguez-Rodríguez and Gahr, 2017). Increasing internet sensation
has been influencing the success of tourism industry and this helps in approaching the
customers through the different types of internet communication methods. Also the use of
mobile technology has been opening the door for the business to grow in the tourism
sector. Through this technological help the tourism business has been communicating
with the tourists with more personal measures. Apart from this the increasing use of
mobile apps are also helpful as the customers are having more accurate, correct and
precise information through these apps and also the business is ensuring to maintain their
customer services through these apps.
CONCLUSION
With the analysis and study of the report it can be concluded that tourism and travel is a
competitive and dynamic sector of the economy. Tourism refers to an activity of people
travelling to and staying in different types of places outside their usual ambience and
environment for many purposes like business, leisure, roaming etc. The report outlined the
development of the travel and tourism industry. Further it talked over about the different
elements of the tourism and travel sector. Later it discussed about the factors which influences
the travel and tourism sector. Also the report highlighted the different types of motivational
methods which are used to influence the customer’s process of decision making. Furthermore it
demonstrated the recent and emerging trends in the sector of international tourism and travel

industry. In the end the report evaluated and analyzed and summarized the different types of
factors which affected the popularity of a global destination.

REFERENCES
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da Costa Liberato, P.M., Alén-González, E. and de Azevedo Liberato, D.F.V., 2018. Digital
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Femenia-Serra, F., Neuhofer, B. and Ivars-Baidal, J.A., 2019. Towards a conceptualisation of
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