The Travel and Tourism Sector

This report discusses the effects of supply and demand on the travel and tourism sector, focusing on TUI Group. It explores the implications of political change, factors affecting tourism demand, and strategies to minimize negative impacts. The report also examines the economic, environmental, and social impacts of tourism in Greece and Thailand on TUI Group.

The Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1................................................................................................................................................3
1.2................................................................................................................................................3
TASK 2............................................................................................................................................3
2.1................................................................................................................................................3
2.2................................................................................................................................................3
2.3 Implications of political change on the travel and tourism sector in different countries......3
TASK 3............................................................................................................................................4
3.1 Factors affecting tourism demand.........................................................................................4
3.2 Way in which supply has changed at TUI Group to meet the effects of demand.................6
TASK 4............................................................................................................................................6
4.1 Main positive and negative economic, environmental and social impacts of tourism..........6
4.2 Strategies that can be used to minimise the negative impacts while maximising the
positive impacts...........................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In today’s era, with increasing interest of people towards visiting different nations, travel
and the tourism sector has become one of the fastest growing industries in the world. The sector
completely relies on the needs and expectations of customers as if they are not being fulfilled in
the manner they want, gaining desired profits would not be possible. It is because; being in the
service industry, tourists are the key to have survival in the long run. With the passing years and
changing expectations of customers, changes are occurring in this industry at a fast pace and for
the same, tour operators improving their strategies to stay in the competition for longer span of
time (Pantano and Servidio, 2011). In the present report, TUI Group has been selected which one
of the leading organisation in travel and tourism sector with reference to which effects of supply
and demand on the travel and tourism sector will be studied along with understanding the
impacts of tourism.
TASK 1
1.1
Enclosed in poster
1.2
Enclosed in leaflet
TASK 2
2.1
Enclosed in PowerPoint Presentation
2.2
Enclosed in PowerPoint Presentation
2.3 Implications of political change on the travel and tourism sector in different countries
Implications of political change on travel and tourism sector in China and the UK
By: XYZ
26th April’ 2017
Travel and tourism sector gets highly impacted through political factors which in both ways;
positive and negative, affect the industry. Political factors consist of all taxes as well as the

instable condition of economy which put an adverse impact on the firms operating in nation.
Because of the reason of Brexit, travel and tourism industry of UK had to be bear a lot due
to the instable condition of economy as well as with change in political parties, various
norms and policies were also needed to be changed by the firms. Brexit has affected the
industry in such a way that development was nearly stopped which had the major impact on
profits and revenues that have decreased to a high extent. The major reason behind the same
was that when UK was under European Union (EU), it has a lot of support from the same as
EU provided the sector with various grants and leverages which led the tourism sector to
grow at a fast pace. At the time, when UK was considered to be the nation which was not
safe for tourists due to risk of terrorism, number of individuals who were coming from
outside were highly reduced. Apart from that, because of the instability in economic
condition due to bringing changes, UK government did not give much emphasis on giving
the benefits to tourists. It is because; at that time, major consideration of the government of
UK was balancing the economy of nation. However, on the other hand, if case of China will
be taken into consideration, it can be seen that political factors are proving to be highly
beneficial for the nation (China’s new tourism policy 2013-2020, 2017). It is due to the fact
that government of UK has given several benefits to the Chinese people like they do not
have any restriction to visit the nation as well as they are given with the 2 year VISA. Along
with that, country has reduced the taxes on tourism by which now, visitors can easily visit
the nation and gain best benefits out of the same. Along with that, various norms as well as
regulations have been imposed by the government that are playing a significant role in
effectually promoting the travel and tourism sector of country. In the UK, there are several
ministries which are giving due emphasis on the travel and tourism industry so as to reduce
the conflicts that are adversely affecting the sector. However, in the present scenario, China
is providing high advantage to the nation as maximum tourists are coming to visit the UK
which is helping in earning higher revenues. Therefore, overall, it can be said that political
factors are having high influence on travel and tourism sector of nation.

TASK 3
3.1 Factors affecting tourism demand
There are many factors which affect the demand in travel and tourism industry in both
positive and negative ways. Among all the major one are like:
Positive factors:
Improved transportation: One of the major developments took place in travel and tourism
sector of UK is that of improved transportation. The privatization in transport like TUI Group is
playing a significant role in boosting the tourism by offering various improved and differentiated
services to the tourists. With the better network and connectivity of roadways and airways,
demand of tourism services has increased to a high extent (Carlsen and Andersson, 2011).
Rise of the Millennial: The early professionals are taken as the people who have high
interest in the travel and tourism sector at the international level. As per the market research, it
has been found that approximately 50% of the world’s travel and tourism sector gets affected
with the group within the time period of 2020. As the group is having high knowledge, it is
crucial for tour operators like TUI Group to manage them effectively so as to sell selling their.
Role of the Government: Government plays a significant role in increasing the demand of
travel and tourism services as if there is flexibility in the policies imposed like the government of
UK has simplified the process of VISA for the Chinese people, tourists get attracted towards the
nation (Pantano and Servidio, 2011). Apart from that, integration of local and national bodies is
also one of the important reasons behind increased demand of tourism.
Negative factors:
Terrorism: In the present scenario, it can be taken as one of the most negative factors by
which demand for tourism is getting adversely impacted. The terrorist attacks in nations like like
France and Bangladesh affected the tourism sector there negatively. It is because; due to the
same, number of visitors gets reduced to a high extent as people plan their trips by considering
the security of countries. This leads firms like TUI Group to bear losses (Bernick and Boo,
2013).
Political Unrest: The political unrest in nations like Egypt and Turkey also prove to an
important factor by which demand in the travel and tourism sector gets affected in a negative
manner. If political parties keep on changing and there is no stability in the nation, tourist prefer
not to visit those countries (Pantano and Servidio, 2011).

Natural Disasters: The natural disasters also affect the demand of tourism as nations
where risk of earthquakes or unfavorable weather is there, people generally do not prefer to visit
the nation. In this situation, business of firms like TUI Group comes in loss due to reduced
demand.
3.2 Way in which supply has changed at TUI Group to meet the effects of demand
For the purpose of meeting effects of demand, TUI group has made various initiatives to
improve the services provided to customers by increasing the product line in areas like airlines,
hotels, cruise liners, travel agencies, etc. In TUI Group, approximately, 76, 000 employees are
working which shows that it is managing the operations in an effective manner. Also, it has
modernised the fleet by getting expanded in the luxury service segment. TUI group has entered
in the partnership with Etihad Aviation group so as to grab the markets of Germany, Switzerland
and Austria. For this company, expansion is the main strategy by which effects of demand can be
effectually met (Varum and et.al., 2011). Apart from that, services offered through TUI Magic
Life has been increased in such a way that guests are getting served with high quality. Moreover,
TUI Sensimar Lagoon is a new four star hotel that is opened in Mauritius for the purpose of
serving guests over there. In addition to this, it can be seen that TUI Sensimar Natura Palace has
also been established on Playa Blanca that is having the residency capacity of 270 rooms. At
present, it is covering around 180 destinations and meeting the demand of tourism across the
world. Last but not the least; TUI is operating in the hotel segment with covering over 25
countries with 210000 beds (Mak, 2011). Also, to fulfil the expedition demand of people all over
the world, company is offering cruise service named Hapag-Lloyd Cruises. Therefore, it can be
said that service delivery and partnerships with other organisations are playing a vital role in
meeting the effects of demand.
TASK 4
4.1 Main positive and negative economic, environmental and social impacts of tourism
The positive as well as negative economic, environmental and social impacts of tourism
of nations like Greece and Thailand on TUI Group are like:
Greece Economic impact- The positive impact of tourism on Greece is that country is having
high employment opportunities for the people of nation which is estimated around

867000. It can be said that approximately, 10.3% total employment is generated with the
same. Besides this, infrastructure in Greece is also getting improved in the public sectors
through tourism sector. However, there is one negative impact as well, that is,
development is in the hands of ministries that are not doing their job in a proper manner. Environmental impact- For TUI group, the environmental impact that Greece is having
on travel and tourism sector is significant which is helping the firm to earn higher profits
by attracting tourist at a large scale (Uysal and Williams, 2013). On the other hand, the
negative impact which environment of this nation is having on firm is that of natural
calamities taking place time to time which reduces the number of tourists coming in this
nation. However, to preserve the natural heritage, TUI Group can take initiatives like it
can make the tourists aware with respect to regarding sustainability.
 Socio- cultural impact- In Greece, the rate of crime is very high and this is the reason;
tourists stay in Corfu where the population is less and thus, there is less chances of crime
taking place which saves the sector from coming in lose. However, most of the time, it
proves to be negative for the tourism sector and so as for TUI Group as when there is less
demand, profits earned are also less.
Thailand Economic impact- With the tourism, standard of people living over there is also getting
enhanced which is the major positive impact. However, main negative impact is that
because of the happening of various blasts, economy is getting shattered which is
ultimately affecting TUI and thus, it has to suffer loss (Current Issues in Tourism, 2017). Environmental impact- The environment of Thailand is always in favour of travel and
tourism sector as there is always full moon party that proves to be profitable for the
economy. It helps TUI Group to earn higher profits as its sale come at peak. Apart from
this, negative impact of the environmental impact can be seen in terms of waste disposal
due to improper arrangement related to the same. It affects the physical environment of
tourist attraction (Tripathi, Choudhary and Agrawal, 2010).
 Socio- cultural impact- Thailand is considered as the effective aspect of tourist just
because of inclusion of varied culture and rich heritage. It would be effective to gain the
attraction of more visitors. However, the negative impact in term of socio-economic

culture is formation of conflicts due to direct contract with tourists due to cultural
difference related to language and religion.
4.2 Strategies that can be used to minimise the negative impacts while maximising the positive
impacts
For the purpose of minimizing negative impacts at the time of increasing positive effects
based on economic, social and environmental factors of countries like Thailand and Egypt on
TUI group, strategies that can be used are like:
 At first, the strategy that government of Egypt and Thailand can adopt is attracting the
visitors towards travel and tourism sector of nation so as to boost the economy. It is
needed for the government to plan regarding process of managing waste as well so that
impact on the environment of tourism can be reduced. This will help the firm, TUI group
to gain higher profits with the help of increased demand of tourism (Uysal and Williams,
2013).
 It is the responsibility of TUI Group to devise an individual strategy for Thailand and
Egypt with respect to which, demand of tourists will be met. As the nature possessed by
the nations is different, so, it is crucial for the management of firm to focus on the
deficiency so that tourists can be made satisfied (Conrady and Buck, 2011). The most
common way of doing the same is performing Corporate Social Responsibility (CSR) by
which large number of tourists can be attracted towards these countries by the combined
efforts of government that will ultimately lead to enhance the scope of business of TUI
Group.
Apart from that, TUI group can also come in partnership with the organizations that are
operating in Thailand and Egypt so that service delivery process can be improved as well as
maximized. With the same, business will grow and get successful in the market as well as
desired revenue target in those countries will be attained by the firm.
CONCLUSION
From the above report, it can be concluded that with the changing scenario, travel and
tourism industry of UK is bringing various changes and innovation in its services provided so as
to maintain the interest of tourists and gain a competitive edge over others. It has been found that
increasing competition is one of the major factors with which TUI Group is getting highly

impacted. However, due to this reason, it is important for the organisation to provide improved
and innovative services to the tourists that must be different from other rivalry firms so as to
retain the target customers for longer span of time. Also, it can be articulated that the political
factor put a he impact on the travel and tourism sector of UK as well as China. If UK will
maintain the positive and healthy relations with China, it will lead to make the sector earn more
as well as economy will also remained balanced.

REFERENCES
Journals and books
Carlsen, J. and Andersson, T., 2011. Strategic analysis of public, private and not-for-profit
festival organizations. International Journal of Event and Festival Management. 2(1).
pp.83 – 97.
Pantano, E. and Servidio, R., 2011. An exploratory study of the role of pervasive environments
for promotion of tourism destinations. Journal of Hospitality and Tourism Technology.
2(1). pp.50 – 65
Bernick, N. L. and Boo, S., 2013. Festival tourism and the entertainment age: interdisciplinary
thought on an international travel phenomenon. International Journal of Culture,
Tourism and Hospitality Research. 7(2). pp.169 – 174.
Pantano, E. and Servidio, R., 2011. An exploratory study of the role of pervasive environments
for promotion of tourism destinations. Journal of Hospitality and Tourism Technology. 2
(1). pp.50 – 65.
Varum, C. and et.al., 2011. Scenarios and possible futures for hosp;itality and tourism.
Foresight. 13(1).pp. 19-35.
Mak, B. L. M., 2011. ISO certification in the tour operator sector. International Journal of
Contemporary Hospitality Management. 23(1). pp.115-130.
Tripathi, G., Choudhary, H. and Agrawal, M., 2010. What do the tourists want? The case of the
Golden Temple, Amritsar. Worldwide Hospitality and Tourism Themes. 2(5). pp.494 –
506.
Uysal, M., Williams, J. A., 2013. Current Issues and Development in Hospitality and Tourism
Satisfaction. Routledge.
Conrady, R. and Buck, M., 2011. Trends and Issues in Global Tourism 2011. Springer Science &
Business Media.
Online
China’s new tourism policy 2013-2020. 2017. [Online]. Available through:
<https://jameskennell.com/2013/04/02/chinas-new-tourism-policy-2013-2020/>.
[Accessed on 27th April 2017].
Current Issues in Tourism. 2017. [Online]. Available through:
<http://www.researchgate.net/journal/1368-3500_Current_Issues_in_Tourism>.
[Accessed on 27th April 2017].