Impact of Economic, Social and Environmental Factors on Travel and Tourism Sector of TUI Group

This report discusses the impact of economic, social and environmental factors on the travel and tourism sector of TUI Group. It covers the historical developments and structure of the sector, analysis of government bodies and international agencies, factors affecting demand, and the positive and negative impacts of tourism. The report also explores the impact of political changes on the sector in different countries. Additionally, it examines strategies to overcome the negative impact and promote sustainable practices.

TRAVEL AND TOURISM
SECTOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 & 1.2......................................................................................................................................1
TASK 2............................................................................................................................................1
2.1 & 2.2......................................................................................................................................1
2.3................................................................................................................................................1
TASK 3............................................................................................................................................2
3.1................................................................................................................................................2
3.2................................................................................................................................................3
TASK 4............................................................................................................................................5
4.1................................................................................................................................................5
4.2................................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Travel and tourism sector plays an important role in the success of economy as the
growth of the economy is highly required. It is necessary for the activities of business to
contribute high share in the GDP and it helps in overall development of the nation. Present report
is based on TUI group which is one of the best tourism business and they consists of different
operations in the sector of tourism and they have 1800 travel agencies. They also have 130
aircraft with 6 airlines over 300 hotels and resort. Further, this report covers the historical
developments and structure of the travel and tourism sector(Andersson, 2014). It also includes
the analysis of functions of government bodies and international agencies in the sector.
Moreover, it covers the factors affecting the demand of tourism in context of TUI. At last, it
covers the understanding the negative and positive impact of economic, social and environmental
impact of tourism with respect of TUI group.
TASK 1
1.1 & 1.2
Covered in Poster
TASK 2
2.1 & 2.2
Covered in PPT
2.3
There is direct impact of the political changes on the travel and tourism sector. The
influence of political changes which directly leads to enhance the threats related to the safety and
fear in context of TUI group of UK. There is implication of the political changes on UK with the
different countries have been mentioned below: UK- There is significant level of impact of the political parties on the travel and tourism
sector in UK. They got immense amount of support from regulatory authorities in this
sector so that this the positive aspect of it. Due to the instability and terrorists attacks
there is decrease in the profitability as well as sales. Further, the UK government
introduced some of the security and safety policy which is necessary for whole sector to
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comply with this policies. Thus, it leads to higher development as this policy affects the
entire sector in the economy(Becker, 2016). China- There is great influence of political changes on the travel and tourism sector of
China as political parties make pressure on the operations of business to make the
utilization of sustainable practices. Thus, it results in profitability of the whole sector as
well as lowering down the sales. Moreover, the effective use of the political changes
leads to slowly growth in the travel and tourism sector which id beneficial for the various
tourists of China. As there are so many visitors go to UK and there is increase in the
percentage of that population which also increases the opportunities of retail and visitor
attraction for UK.
 India- There is positive aspect of the changes in political factors which influence the
travel and tourism sector of India(Crouch, 2012). There are some of the political parties
who support the growth and development in India which gives the proper direction to
member of this sector. The rate of growth is increasing as there are various new
destinations have been introduced in the travel and tourism sector. Further, the
government of India also allocated the funds for the growth of the travel and tourism
sector which is very beneficial for them so that the policy affects in a positive manner
which helps in the development of the sector.
 Thailand- In the recent times, there is protest in against of political parties results in
greater loss of funds for the tourism of Thailand. As there is decrease in the number of
tourists due to the political instability within the country so that it is negative aspect for
the specific sector of the economy. There is also one of the major reason behind the
political unrest which is that the people thinks so many times before visiting any nation.
TASK 3
3.1
In order to encourage the people for visiting different locations in the world the
marketing of travel and tourism is helpful for them. There are so many people who participate in
TUI for various purposes with the specific tourism demand. In context of this, the demand of
tourism can be defined in different ways such as technological, political and demographic impact
on the business which are mentioned below:
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Technological- It is the most important factor for the tourism sector as they always have to keep
themselves updated as the use of technological advancements. The facilities of tourism will tend
to increase in terms of use of various aspects related to the technology so that there is proper
service in the hospitality sector. If the level of technological advancement takes place to enhance
the demand of travel and tourism. It is fruitful for the entire sector where they provide comfort
along with convenience. The company provides online websites and various portals for the
giving the services related to the tourism(Domínguez, Fraiz and Alén, 2013).
Demographics- There are some of the factor of demographic such as size of the family, age
group, forces of lifestyle can affect to the demand of the products of TUI products and services.
There age over 60 years people generally avoid the travelling and so that it creates the negative
impact on the company. In creating more demand of the travel and tourism sector as there are the
young generation of people who enjoy the travelling. Thus, there is also one more factor of
demographic which is growth of population so that it also creates more demand of the travelling
sector.
Emerging economy- To attract more customers and increase the number of tourists the economic
conditions of the country also plays a major role. If the tourists arrive in the country with low
economy so that there will be less services for them in context of hospitality. Thus, throughout
the world economy has an impact on the travel and tourism sector. The UK is consistently
growing country so that there is also development in the sector of travel and tourism have
flourished the great heights. Thus, TUI group is successfully giving different services to all the
tourists in the world(Eugenio-Martin and Inchausti-Sintes, 2016).
Political stability- It has been seen that there are various tourists which are influenced by the
political stability which is maintained by the country. If there is proper politics is not maintained
than it leads to the disturbance which is not beneficial for the tourists. Further, there is an
increase in the number of tourist in the country by maintaining the effective political stability. To
enhance the demand of service for tourism the government has introduced same law in relation
with the protection of the natural places.
3.2
The impact of the demand can be lower down by the assistance of alteration within the
supply. UK is considered as the one of the major renowned destination around the world.
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Further, there are different individual who visits the nation. So that it is being observed that
different factors impact on the demand of the services of tourism. The influence of the demand
can be meet by the assistance of some changes within the supply which have been enumerated in
a particular manner:
Tour operators- To influence the demand of travel and tourism sector there are great number of
tour operators accomplished(Evans, Stonehouse and Campbell, 2012). There is ability to increase
the awareness regarding the products and services among the different individuals it is being
demonstrated that when the number of tour operators is lower than they do not have the ability.
There are large tour operators leads to generation of increase in the supply of services with
respect to the travel and tourism.
Accommodation- There are three major groups which includes the higher income, middle
income as well as lower income for the visitors within UK. The tourist with higher income
group they chooses the accommodation with luxury as well as five star hotels. However, the
lower income group people prefer the discounts and offers for the same. So that there is great
number of tourism services which can be offered to the individuals as there is lower demand of
the discount offers in relation with accommodation.
Range of facilities- It is required to be aware about the different range of products and services
which are provided to the customers that are carrying out operation in the TUI group of travel
and tourism sector. So that it can be stated that TUI group offers a unique range of services
which helps them to manage and increase in their services related to the various aspects(Getz,
2013).
Sustainability- In the present scenario, there is increase in the travel and tourism sector with the
usage of sustainable practices. To influence their operations and activities on the environment as
there are great number of organisation which are making efforts for lowering down. It leads to
enhance the supply of services which related to the travel and tourism so that there is
development of the satisfaction of the customers to the great extent.
Quality- The quality of products and service is considered as one of the most important aspect of
each and every business as well as the industry(Hall, 2013). There is proper supply of the
appropriate quality of services which assist TUI group in earning grater amount of sales as well
as profitability in the situation when there low demand. UK is required to take care of the fact
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that is attached with delivering the services with quality for an individual so that the organisation
which operates in the travel and tourism sector. Thus, it can be done by the assisting the
establishment of the standards of quality at every operational level(Guttentag, 2015).
TASK 4
4.1
TUI group has various destination all over the world and the stated firm has conduct a
research on Thailand and Spain in order to know the impact of economic, social and
environmental factors. In context of TUI, there is presence of different type of positive as well as
negative effect on the tourism industry, environment as well as society. The impact are stated
below:
Positive Impact
Direct and indirect income- There is one of the most crucial and most significant source which
assist in the income generation for the tourism within UK. To enhance the income the tourists
make payment of money in relation to the foreign exchange(Hall, Scott and Gössling, 2013).
Thus, it can be stated that there are various types of activities and other things which are also
provided to the tourists. So that against such service there is charging of money which is
considered as the income.
Employment- The tourism within UK assist in developing the society so that it offers direct and
indirect employment to increase the number of tourists. Within London there are number of
activities which are served to the tourists such as sky diving and water sports provide
employment to various number of people(Hudson and Thal, 2013).
Creation of foreign exchange- As the tourism is so effective and helps in creating more
generation of the income as there is economic development of the tourism. Further, UK is most
renowned destination so that people bring foreign exchange within the country. There are great
number of tourists so that they present more amount of foreign currency as it has direct impact
on the economic development of the nation.
Negative Impact
Pollution and damage to natural resources- There are some of the negative impact on tourism
which has over the environment so that it results to increase in the pollution ans it causes damage
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to the natural resources. There is also impact on the number of flights which has a great impact
on the environment. Thus, there is overall increase in the pollution which harms the nature. To
take corrective actions for reduction in the pollution there is requirement of association with
parties so that this actions can be take place for safeguarded natural resources. So that this can
provide favourable results for the nation(Leung and Baloglu, 2013).
Seasonality- It can be said that all the employment as well as income which is generated by the
travel and tourism sector is not permanent as it is seasonal. Further, the people also enjoys the off
season which reduces the overall development of the economy of the nation. It is essential that
the individual who are living in the society as they get many jobs throughout the year and so that
it is possible for them to make the economic development so that there may be reduce the
negative impact.
Loss of amenity as well as increase in crimes- These is also impact of the tourism on the society
as well so that it leads to destruction of the region of the local people. In addition to this, there is
also increase in the crime rate within the nation.
4.2
Travel and tourism sector business of TUI group as they are not able to manage the
functions properly in Thailand and Spain so that as a results it creates a negative impact on the
company(Mok, Sparks and Kadampully, 2013). In context of this, there are some of the
strategies to overcome the negative impact which are mentioned below:
Implementation of strict laws and regulations- The stated business can reduce the negative
impact of the factor of environment which is pollution. So that in context of this, they are enforce
by the laws and rules of the country. With the help of generating awareness about health and
environment so that there can be decrease in the pollution.
Diversification- Through diversify TUI group can remove the negative impact of social factor so
that services in different cities such as Spain and Thailand. Thus, they can achieve the
distribution of the tourists through the nation(Navickas and Malakauskaite, 2015).
Eco-tourism- To reduce the negative impact the stated business should focus on the eco-tourism
so that there is increase in the awareness of the environment related issues. So that they can
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preserve the environment and wildlife. Thus, it can be helpful in reducing social conflicts
between the authorities and other groups.
There are some of the ways to maximise the positive impacts which are as follows:
Regulating jobs at all the levels- In order to develop the provision which helps in providing the
job to local peoples, there is assessment of the government and other regulatory bodies so that it
helps in integrating. Thus, this type of provision helps in improving the standards of income
level of people and living who are nearby areas of the tourism destination(Prebežac, Schott and
Sheldon, 2016).
Staffing training, education and development- This is another positive way which helps in
maximizing the impact of the tourism with assistance of training and making them handle. In
order to minimize the negative impact training is the best way by which an individual can
enhance their capabilities and skills. Thus, it helps in developing the opportunities for
employment in the market and enhance the social development of the country. In case if training
is giving to the staff members so that positive impact can be increase by that and it will support
in sharing the information about tourism in between various types of individuals(Surugiu and
Surugiu, 2013).
CONCLUSION
From the above report it can be concluded that tourism is very important for the
development and growth of the economy as the government also plays an important role in this
sector. In context of this, they perform different functions such as direct and indirect, political
changes and economic policy. Further, it is summarised that there are some factors which affect
the demand of travel and tourism such as technological, demographic, political stability and
changing pattern of work. Moreover, in this report it also explained that effect of supply to the
demand of the cited business. There is requirement to provide appropriate facilities of
accommodation , effective tour operators and so that valuable products and services to them.
Further, the report helps to evaluate impact of economic, social and environment on the travel
and tourism sector. So that social impact is widely affected the business of tourism on the basis
of cross exchange culture and preservation of he culture heritage. At last it is also explained that
there are some strategies for the negative impact from the organisation such as diversification,
enhance services of the business and eco-tourism.
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REFERENCES
Books and journals
Andersson, T.D., 2014. Tourism in Sweden: Between a Social Project and Business
Development. European Tourism Planning and Organisation Systems: The EU Member
States. 61. p.74.
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Crouch, G.I., 2012. Competitiveness and tourism. Edward Elgar.
Domínguez, T., Fraiz, J.A. and Alén, E., 2013. Economic profitability of accessible tourism for
the tourism sector in Spain. Tourism Economics. 19(6). pp.1385-1399.
Eugenio-Martin, J.L. and Inchausti-Sintes, F., 2016. Low-cost travel and tourism expenditures.
Annals of Tourism Research. 57. pp.140-159.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Getz, D., 2013. Event tourism: concepts, international case studies, and research. Cognizant
Communication Corporation.
Ghimire, K.B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
Gössling, S., Scott, D. and Hall, C.M., 2013. Challenges of tourism in a low‐carbon economy.
Wiley Interdisciplinary Reviews: Climate Change. 4(6). pp.525-538.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Hall, C.M., 2013. Wine, food, and tourism marketing. Routledge.
Hall, C.M., Scott, D. and Gössling, S., 2013. The primacy of climate change for sustainable
international tourism. Sustainable Development. 21(2). pp.112-121.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
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Leung, X.Y. and Baloglu, S., 2013. Tourism competitiveness of Asia Pacific destinations.
Tourism Analysis. 18(4). pp.371-384.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Navickas, V. and Malakauskaite, A., 2015. The possibilities for the identification and evaluation
of tourism sector competitiveness factors.Engineering Economics. 61(1).
Prebežac, D., Schott, C. and Sheldon, P. Eds., 2016. The tourism education futures initiative:
Activating change in tourism education. Routledge.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Standing, C., Tang-Taye, J.P. and Boyer, M., 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.
Surugiu, C. and Surugiu, M.R., 2013. Is the tourism sector supportive of economic growth?
Empirical evidence on Romanian tourism. Tourism Economics. 19(1). pp.115-132.
Tribe, J., 2015. The economics of recreation, leisure and tourism. Routledge.
Online
Cederholm, T., 2016. Economic Impact of the Travel and Tourism Industry. [Online] Available
through :<http://marketrealist.com/2014/12/impact-travel-tourism-industry-economy/>
[Accessed on 19th November, 2016]
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