Analyzing Tourism Demand Factors

This assignment involves studying the factors that influence tourism demand, utilizing various academic sources including journal articles, books, and online resources. Key areas to focus on include destination competitiveness (Kayar & Kozak, 2010), the impact of technology and social media on travel behavior (Leung et al., 2013; Xiang et al., 2010, 2015), and the consequences of global economic crises on tourism (Papatheodorou et al., 2010). Additionally, consider the impact of online reviews (Lee et al., 2011) and hybrid online distribution channels (Thakran & Verma, 2013) on demand. Analyze these factors using the illustrated model (Illustration 1), and propose strategies to manage tourism demand effectively.

The Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Main historical developments in the travel and tourism sector........................................1
Covered in Poster ..................................................................................................................1
1.2 Structure of the travel and tourism sector.........................................................................1
Covered in leaflet...................................................................................................................1
TASK 2............................................................................................................................................2
2.1 Function of government, government sponsored bodies and global agencies.................2
Covered in PPT.......................................................................................................................2
2.2 Local and national economic policy influencing the success of the travel and tourism
sector.......................................................................................................................................2
Covered in PPT.......................................................................................................................2
2.3 Implications of political change on the travel and tourism sector ...................................2
TASK 3............................................................................................................................................3
3.1 Factors impacting demand of tourism..............................................................................3
3.2 How supply has changed to meet the effects of demand..................................................5
TASK 4............................................................................................................................................6
4.1 Main positive and negative economic, environmental and social impacts of tourism.....6
4.2 Strategies to reduce negative impact of economic, environmental and social issues......7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and tourism is one of the fastest growing industry in the world. It is providing various
types of services such as accommodation, food facilities, transportation services, etc. As a result,
it is expanding the demand of several organisations such as hospitality, airlines, railways,
restaurants, business travelling, etc. So, it is seen as one of the major industry in the world that is
contributing more than 15 % in international economic output along with one out of twenty jobs
(Papatheodorou, Rosselló and Xiao, 2010). The vast range of travel and tourism management are
classified into four sections. These sections are Medical tourism, Ecotourism, Hospitality and
Dark tourism. Large number of civilians used to travel other nations having the motto of taking
medical treatment because some of the countries are offering medical services at a very low
price. This is called as medical tourism. On the other hand, dark tourism involves all those
historical places whose memory are associated with the death and different tragedy such as
natural disasters, battle ground, etc. The present report is based on the travel and tourism
management of TUI Group. In this project, the conventional structure and development of the
travel and tourism sector is being described. The influence of regional, national as well as
international agencies on this sector is also explained here.
TASK 1
1.1 Main historical developments in the travel and tourism sector
Covered in Poster
1.2 Structure of the travel and tourism sector
Covered in leaflet
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TASK 2
2.1 Function of government, government sponsored bodies and global agencies
Covered in PPT
2.2 Local and national economic policy influencing the success of the travel and tourism sector
Covered in PPT
2.3 Implications of political change on the travel and tourism sector
Effect of political changes on tourism sector
By: XYZ
Date: 3rd November, 2017
Political alternations are making wide impacts on the travel and tourism sector of a country.
There are occurring several basic changes in the governmental policies that are creating concern
regarding safety in the mind of tourists. Due to this region, large number of travellers are
obviating to visit those countries where such alternations are going on. Modifications in the
politics in domestic nation are also influencing the tour companies of other countries. This may
be positive as well as negative. The attraction of travellers can be increased or decreased as per
that governmental changes. This is relying the kind of modification done and as a result, the
number of tourists can be maximised or minimised. If some of the country are seemed to be
unsafe or having the terrorism activities then people usually avoid to visit such places as all of
the civilians give first priority to their health or life (Garín-Muñoz and Pérez-Amaral, 2011).
But such countries can increase the number of travellers by launching some of the safety
policies. They can make certain strategies to increase the level of safety and should increase
confidence of tourists that their life is very important to them. As a result, people can take a
chance to visit such places also. Positive changes in the political policies of a country could
create a hub of travellers if they provide safe and secure services. Civilians commonly prefer to
visit those places where they have to follow minimum norms and legislation and get good
security options.
On the contrary, if there are wide rules and regulations and also have a poor condition
regarding safety in a country then very few or even no people prefer to visit such nations. Some
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of the other changes imposed by government bodies also impacts negatively on the annual
turnover of different corporations like TUI Groups. Government are imposing taxes at a higher
rate in some of the nations. Due to this large sum of wealth gets wasted in paying such taxes.
This mainly affects the source of income of a firm. Government are also creating some
legislations in favour of people. Like, they are strictly prohibiting child labour in the sector of
travel and tourism. As a result, none of the corporates can hire workers below the age of
eighteen. If any of the company found doing so then get punishment by law. Various other
laws are also made regarding minimum wages, worker’s equality act, law related to
employment relationship, etc. In addition to this, several norms are made in favour of female
workers or girls (Thakran and Verma, 2013). If they get sexually harassed or face any type of
abominable behaviour by any men then the guilty or suspected male would be treated as
criminal and get punishment by the government body.
TASK 3
3.1 Factors impacting demand of tourism
There are several factors that affect the tourism demand, Economy of an individual and
market is one of the major factor among them. It also relies on number of losses in job, exchange
rates in various nations, political factors such as environmental conditions of nations, any ban in
certain country, etc. TUI group is facing problems at present with Brexit as the British and EU
government are negotiating with their free entries in another territories (Xiang, Magnini and
Fesenmaier, 2015). Activities of terrorism and their hazards are also affecting the minds of
tourist while they are planning their holiday trip. Communication and technology system are
playing primary role in the tourism companies. Various factors impacting the travel and tourism
industries are following:
 Political factors such as issues regarding visas with another nation negatively impacts the
number of travellers (The factors that influence tourism demand, 2017). TUI group is
facing issues with Britain and EU legislation for free trading in each other nations.
 Building of new tourist’s places effects positively the tourism industries.
 Average wages of a person in a nation influence the growth rate of internal tourism. If the
income level is low in civilians of any nation then their pocket does not allow to take
extra expenditure of travelling (Kayar and Kozak, 2010). They usually cut those things
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from their daily lives in such cases. This decreases the growth of tourism activities in a
nation.
 TUI groups are having their business with many nations and as a result they are suffering
from terrorism like activities. This change the mind of people and they do not prefer such
places to visit if they see risk of their lives.
 Image of any of the country in the mind of people are also playing a significant role. If
they feel that Spain is very dangerous nation then they do not choose such place to travel.
 Representation of leisure spots also decides the tourist activities. TUI group are having
attractive images and they are doing promotional programmes to draw the attention of
travellers towards their beautiful spots.
 Climatic conditions also play a lead role in promoting tourism. If a place is having a
beautiful feeling of cold like places where snowfall occurs frequently are preferred by
large number of people for the purpose of visiting and pending their holidays (Molz,
2012).
 Crime and terrorist attacks in any place creates a negative image in the eyes of people and
as a result they avoid visiting there.
 Accommodation facilities also matters for travellers as they want safe and luxurious
services. Portable accommodation services are well known in southern part of the world.
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(Source: Factors influencing the demand in the tourist destination area, 2017)
3.2 How supply has changed to meet the effects of demand
It is essential to make balance between demand and supply of goods and services in a
business plan which are being provided by any of the company for running their operations
smoothly. There is an alternation in the supply of services or products in the travel and tourism
sector. Stakeholders in the TUI group are responding positively towards such changes and are
therefore, maintaining supply of this business (Xiang and Gretzel, 2010). On the other hand,
some of the factors requires modification in order maintain need or demands of product and
services. Certain major factors that needs to be develop in tourism sector are condition of
accommodation, quality of services and the utilisation of modern technologies.
TUI group consist of vast chain of hotels, resorts and restaurants for the purpose of
accommodation. Increment in the demand of accommodating services specially like portable
accommodation requires to enhance number of hotels and also increase partners in the form of
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Illustration 1: Factors influencing the demand in the tourist destination area

local vendors who are linked with the hospitality sector. At the period of peak season, the
demand of hotels rises to a very atrocious level (AlSayyad, 2013). But on the other hand, at off
season, very few or no one book the hotels. So, it is important to create alliances with the
regional business man so that at peak time, they earn large profits. As at that time large sum of
money as well workers are needed to manage such a large number of bookings. There exist some
issues as those local business men are not having any idea of how TUI group runs their business.
So, it is important to give them training as compromise with the work of organisation is not
allowed. TUI group has made increment in the number of workers in order to upgrade their
performance and acquire consumer satisfaction. The workers are required to be train on regular
basis so that they do not make any type of fault while working. TUI Group should manage the
booking demands in peak time and should provide their services at minimum prices to their
clients. In addition to that, they also needed to add facilities regarding medical in the holiday
packages so that they satisfy their customers at every level. This needs regular health check-up of
their clients and their medical insurances requires to be premeditated (Lee, Law and Murphy,
2011). But this needs a large sum of money in maintaining all such medical facilities. Company
should also provide online booking to their customers so that they can book their rooms easily
before their holidays.
TASK 4
4.1 Main positive and negative economic, environmental and social impacts of tourism
Major positive and negative economic, environmental and social impacts of tourism are
descried below:
Economic factors- These factors are dynamic in nature and business have no control over it.
According to WTO around 1.6 billion tourist arrivals will take place till 2020 which would be
big opportunity for tourism sector in shaping their future growth. Along with that, demand will
be increased as international tourists are attracted towards luxury and they are highly responsive
to changes in prices of services so it will facilitate in exchange rate increment. Competition is
also a vital factor when it comes to economic environment (Hall, 2010). Thomas cook, first
choice holiday etc. are tough competitors of TUI but still it has major market share in European
tourism market.
Positive impact- It will help TUI in achieving future growth and development and due to
increase in number of tourist will result in more revenues.
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Negative impact- Since, competitors are rising day by day, more pressure will be there on this
company to maintain its performance and quality so as to be a leader in marketplace.
Environmental factors- Increased rate of carbon in environment is main problem caused by
tourism industry as it is composed by air transportation provided to customers. Oxides of
nitrogen is also a major issue which is a result of plastic bags used to pack food. These are very
harmful for our surrounding. Climate change is another big issue in case of this industry.
According to World Tourism Organization, this industry contributes around 5% to global carbon
emissions.
Positive impact- It will help them in adopting better working style which will contribute less to
the pollution and other issues of climate. They can create their goodwill by involving themselves
in CSR activities.
Negative impact- Due to these problems tourism sector will face problems in future because the
change in climate will affect the quality of their services as there will be rise in intensity of
tropical storms, rainfall and more droughts and these problems will adversely affect growth of
business.
Social factors- Such issues are related with the society and its changes. Global economic
downfall and health crisis resulted in traumatic impact on this industry (Heung, Kucukusta and
Song, 2010). Demographic factors and social issues are leading to problems as attitude of people
towards tours is changing. If people feel unsafe in visiting any place then they will not prefer
those place for travelling purpose.
Positive impact- Because of such factors, tourism industry will get to know the emerging social
problems which enables them to get over such issues and adopt change in operations.
Negative impact- Their will be decline in customers if tourism sector will not follow these
changes related to society. It will also affect their productivity and existing strategies of business.
4.2 Strategies to reduce negative impact of economic, environmental and social issues
Some of the strategies that are reducing the negative impact of economic, environmental
and social issues are explained below:
 Develop risk management plan- To reduce the effect of external forces of business, it
is essential for TUI group to develop plan for risk management. It includes reducing the
factors of risk and take proactive steps to effectively deal with problems related to
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economic, environment, and society. TUI will get benefit of minimized risk, if it will
prepare suitable risk management plan.
 Risk analysis- Continuous analysis of such factors will help in reducing its impact. It
will facilitate in decreasing consequences of such activities in the organisation.
Immediate actions against such will create less problem for businesses.
 Strengthening business- Making business more powerful will help in reducing the
negative impacts of such factors and it will encourage positive effect. It can be done by
TUI group by making strong strategies, plans and policies of business (Hall, 2011).
Building consumer loyalty is also helpful in this as consumers will be in their support
even in situation of economic crisis.
 Reuse and recycle- It is important way through which cited corporation can reduce the
environmental impact. It will help business to contribute less in climate related issues
such as pollution, carbon creation, ozone layer depletion etc.
 Measurement and management- Conducting regular measurement of environmental
risks will help in reducing its effect on operations of concern as this will facilitate in
managing them in effective and efficient manner.
 Research- It is very essential in case of social factors related to business. It helps in
analysing current market trends and what society is expecting from the concern (Leung
and et. al., 2013). Counter impact of such factors can be weakened by adopting changes
as per the conclusion drawn from study. It will boost the positive effect of these factors.
 Careful business practices- It includes designing business practices which will reduce
the risk formed due to external factors (Schegg and Stangl, 2017). It involves taking
insurance policies from third party to minimize the intensity of problem in future.
 Establish meaningful relationships- Strong and trustful relationship will help in
reducing adverse impact of economic, social and environment related factors. It can be
done by building good relations with clients, investors, partners and other stakeholders.
 Solid investments- Investments in profitable sources will be key benefit for every
concern to deal with such risks as it provides financial aid in uncertain situations and
decreases the wrong impact of danger.
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CONCLUSION
From the above based report, it can be concluded that travel and tourism industry are
growing very rapidly. They are providing jobs to large number of people but such jobs are
temporary in nature as this get reduced in off season. TUI group should create attractive holiday
packages by making partnership with local business men . This sector is also providing
opportunities to various other businesses such as food related corporations, bars, hospitality
organisations, etc. Various elements of travel and tourism sector are transportation, tour
operators, tourism development, tourist attractions, travel agents, accommodation, etc. which
give their impacts on the tourism industry. The roles of local, national as well as international
government and agencies have been explained in this report.
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REFERENCES
Books & journal
AlSayyad, N., 2013. Consuming tradition, manufacturing heritage: global norms and urban forms
in the age of tourism. Routledge.
Dickinson, J. E. and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism.
Taylor & Francis.
Garín-Muñoz, T. and Pérez-Amaral, T., 2011. Internet usage for travel and tourism: the case of
Spain. Tourism Economics. 17(5). pp.1071-1085.
Hall, C. M., 2010. Crisis events in tourism: subjects of crisis in tourism. Current issues in
Tourism. 13(5). pp.401-417.
Hall, C. M., 2011. Consumerism, tourism and voluntary simplicity: We all have to consume, but
do we really have to travel so much to be happy?. Tourism Recreation Research. 36(3).
pp.298-303.
Heung, V. C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism:
Implications for future research. Journal of Travel & Tourism Marketing. 27(3). pp.236-
251.
Huang, Y. C., and et. al.2013. Exploring user acceptance of 3D virtual worlds in travel and
tourism marketing. Tourism Management. 36. pp.490-501.
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.
Kayar, Ç. H. and Kozak, N., 2010. Measuring destination competitiveness: an application of the
travel and tourism competitiveness index (2007). Journal of Hospitality Marketing &
Management.19(3).pp.203-216.
Lee, H. A., Law, R. and Murphy, J., 2011. Helpful reviewers in TripAdvisor, an online travel
community. Journal of Travel & Tourism Marketing. 28(7). pp.675-688.
Leung, D., and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of Travel & Tourism Marketing. 30(1-2). pp.3-22.
Molz, J.G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Papatheodorou, A., Rosselló, J. and Xiao, H., 2010. Global economic crisis and tourism:
Consequences and perspectives. Journal of Travel Research. 49(1). pp.39-45.
Schegg, R. and Stangl, B., 2017. Information and Communication Technologies in Tourism
2017.
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.
Thakran, K. and Verma, R., 2013. The emergence of hybrid online distribution channels in
travel, tourism and hospitality. Cornell Hospitality Quarterly. 54(3).pp.240-247.
Xiang, Z. and Gretzel, U., 2010. Role of social media in online travel information
search. Tourism management. 31(2). pp.179-188.
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Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 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
The factors that influence tourism demand. 2017. [Online]. Available through : <http://hero-
bussiness.blogspot.in/2009/11/factors-that-influence-tourism-demand.html>. [Accessed
on 3rd November 2017].
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