Impact of Tourism Sector on TUI Group Performance

This report analyzes the impact of the tourism sector on the performance and productivity of TUI Group, a world-leading company in the tour and tourism sector. It covers the historical development of the travel sector, government agencies and economic policies, and positive and negative factors affecting the tourism industry in Spain and Greece. The report also discusses techniques to minimize negative influences and maximize positive impacts.

The Travel
And
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1.1 and 1.2 has Covered in leaflets ........................................................................................1
TASK 2............................................................................................................................................1
2.1, 2.2 and 2.3 covered in PPT..............................................................................................1
TASK 3............................................................................................................................................1
3.1 Factor affecting the demand of tourism............................................................................1
3.2 Supplying has modify to achieve the effects of demand..................................................2
TASK4.............................................................................................................................................3
4.1 Positive and negative factor of economical, environmental and social to tourism on Spain
and Greece..............................................................................................................................3
4.2 Techniques that are used to minimise the negative influence while maximising impacts of
positive...................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Travel industry is a highly expending sector in modern era. There are several agency and
firm are run their business task in this sector because it provide high growth in economy.
Tourism is related to luxurious services of offer by big organisation to achieve higher
profitability and market position in an effective manner. It is a large segmentation of market
which are offer this kind of services in appropriate ways. In this report select TUI group to
analyse impact of tourism sector on organisation performance as well as productivity in long
period of time. It is a world leading company in tour & tourism sector with high market share.
They have 1600 travel agencies , 150 aircraft, 325 hotels, 15 cruise liners and many more. TUI
have approximately 67000 workers with turnover of 17.2 billion euros. In this assignment covers
historical development in travel sector and their structure. It also covers function of government
agencies as well as economic policies in order to influences success of tourism industry and
positive or negative factors which create impact on commercial enterprise profitability in long
period of time.
TASK1
1.1 and 1.2 has Covered in leaflets
TASK 2
2.1, 2.2 and 2.3 covered in PPT
TASK 3
3.1 Factor affecting the demand of tourism
By understanding the components of demand within the sector of travel and tourism, this
relay on different factors. This shows the various places aid in curiosity of travelling due to this
they maintain environment surrounding as per their factors. Their main targets is to enhance
quality of services as well as provide them through satisfying by giving their services and
products. Certain components are given below:
Economic Factor: The guidance at a time of travelling relay on producing many of
services. When changes of currencies these affect nations value own currency within a negative
and positive manner.
1

Complimentary Facilities of Tourism: Sometimes, when complementary things attract
higher peoples than their own destination. If the places of country give more stuff of
complementary with their services. As it will not attract visitors or buyers but they will give a
various level of destination of satisfaction.
Geographical Factor: It is automatically related with seasons or off seasons of country.
Some places and destinations are famous for their summer, rainy, spring and winter season only
due to effective area of geographical so that visitors like to travel various places as per particular
seasons (Molz, 2012).
Hence, Tourism of London is particularly affect from those components which gave
influence on tourism domain of a country. This is needed for nation to manage affairs related
with the sector of tourism for raising tourist amount within their places such as Victoria
Museum, Albert and Madmam Tushad etc. by examining their components as well as develop
desired area. They can improve their places and earn higher rate of capital from it.
3.2 Supplying has modify to achieve the effects of demand
Tourism execute different factors which will be advantage by tourist. Their are different
tourism sides which is active as it mainly influence on others components as well. Side of supply
is always not notice but it is an main components which is needed for better tourism are
explained below: Attraction: London is popular for its art as well as peace and combination of science
which is constructed beautifully by ancestor. This is unconditionally influential and made
a belief strong of their visitors as well as localities (Laws, 2011). Information and Promotion: Flow of communication is very necessary thing which
nation seek for better tourism which should be not avoided by them. This is needed to
promote their products, services or places which make Greek unique for the purpose of
enhancing the amount of customers or visitors. By assisting of proper strategies and
attractive promotion techniques they can raised the numbers of visitors or travellers for
supporting tourism sector.
 Transportation services: It is one of necessary components which nation require to
remind clients convenience or satisfy consumers. Transportation need to make their
travelling and journey very easier. Greek has enhanced as good services of transportation
2

which include public and private for better services of conveyance within their
destination.
TASK4
4.1 Positive and negative factor of economical, environmental and social to tourism on Spain
and Greece
In current economical environment, per person income are increase and thus create
positive impact on travel & tourism industry (Mok, Sparks and Kadampully, 2013). Growth in
this sector is very and organisation has face high competition. It is a sported as highest growing
sector in all over world, its contribution in nation economy is very high. This sector has develop
opportunities of employment thus positively affect country economy as well as person income.
In UK, there are increment in total income which create negative as well as positive impact of
social, environmental, economical, political etc. on nation economy. Some of influences are
explain as follows:
Economical Effect: On Spain and Greece
Positive impact: Here are several positive impact of economy on Greece and Spain
 Both the nation is a favourite tourist destination of visitors and they have receive high
foreign capital inflows which appreciate current at market. It shows overall development
in Greece as well as Spain economy and TUI group has gain higher revenue as compare
to before.
 Increase in gross domestic product rate that shows in rise in taxation amount.
 Export business are has also influenced by tour and travel development (Hudson and
Thal, 2013).
 Organisation has achieve goals and objectives in an effective ways through this activities. Enhance employment opportunities for local people and TUI are also hire employees to
provide quality of services.
Negative Economic Impact:
 Realistic cost become high.
 Tourism sector lead to inflation between regional and local market commodities as well
as services. Rise taxation rates in resulted prices of property become very high.
3

Environmental Effect: On Spain and Greece
Positive environment Impact:
 Through tour promotion activities country has save their natural beauty and resources.
 Designing and managing all natural resources in an effective manner.
 Organisation and nation government both are develop strategies as well as plan in order
to enlarging beauty of nation or location (Surugiu and Surugiu, 2013). Surroundings cultural and heritage are saved.
Negative Environment Impact:
 Some destination place of Spain and Greece has loss their natural impact by high
pollution and population.
 In Spain and Greece several industry are work to produce product that is create high
pollution in the country which affect environment in a negative ways. Both nation
government has develop role and regulation save natural surroundings of the nation.
 Due to high pollution, various kind of health issues are arise so that local person of Spain
and Greece has negatively affect.
 It is a total services based industry so that traditional business as well as small business
are can not survive easily. Large infrastructure damages natural environment beauty and overall development of the
nation (Standing, Tang-Taye and Boyer, 2014).
Social Effect: On Spain and Greece
Positive Social Condition:
 Belief of cultures is different in different country so that its spread the reputation all over
the world.
 Government has provide information to visitor related to history of location in order to
attract large number of customers toward country. This sector allow travellers to better understand about social cultural environment which
are change with location like Spain and Greece.
Negative social Impact:
 Home festival loss their importance.
 Language prevalent are loss in the particular location.
4

Thus, TUI group is a large organisation which affect travel and tourism sector and overall
business activities (Wu and Shi, 2011). Company has several experience employees which are
know the key success factor of this sector and they apply their own strategies in order to attract
large number of visitor to ward firm product as well as services. Through this, firm are able to
gain higher profitability and competitive benefits as compare to their competitors at market
place. It help to achieve goals, objectives in given time frame in an appropriate ways.
4.2 Techniques that are used to minimise the negative influence while maximising impacts of
positive
This is important for an company to make more innovative plan of enterprise for
attracting consumers for their enterprise. While increasing the competition within market of
tourism this became more important for firm such as TUI Groups to enhance some techniques of
disruptive for enterprise. At a time of improving the plan which is undertaken by organisation
different kinds of negative impact on political, economic and social components for raising the
impact of positive once. For managing the impacts of positive, the organisation enhance or
perform the the standards of local life of peoples. This is how company cannot improve their
standards of living but they use decrement the living cost. Increment of inflation outcomes of
giving services as well as higher prices of products by local suppliers. Thus, the company is an
large multinational company as well as cover higher tourism market in Greek. Their can be
diversified influence on different ways (Garín-Muñoz and Pérez-Amaral, 2011).
This is important for company such as TUI Groups to consider regional persons for
giving employment opportunities to them for rising the standard of living of peoples. As
enhancing a enterprise plan, this is essential for effective utilizing of developing a sustainable
plan which gave a low impact of environment within competitive business. Accommodation
facilities within local areas are having primary concern for declining the environment harm as
well as nature. TUI Groups can enhance more facilities or services of transportation for carry
person from the places they are living till their destination without raising territory as well as
damage of nature (Klint and et. al., 2012). This is need to involve whole negative factors of
social impact into consideration for declining them. This is an most proper techniques which are
used by company for making it more comfortable. TUI Groups should take care of whole
components which impact the negative influence for sustaining as well as enhancing within their
competitive industry of travel and tourism. This is important to manage local persons for making
5

their enterprise more convenience along with that exists in-tray of competitive and incresing the
numbers of travellers.
CONCLUSION
In this report, it has been concluded that tourism and travel is one of emerging business
as person are more curious as well as conscious about their surrounding of environment. A
country have to involve all factors of components of their assets along with monuments for
enhancing their nations as well as raised the travellers amount. Their are different entities like as
governments, international agencies etc. which play a very main role in support and development
of tourism as well as travel sector within country. To improve, use latest technology along with
its better transportation within their area.
6

REFERENCES
Books & journal
Buckley, R., 2012. Sustainable tourism: Research and reality. Annals of Tourism Research.
39(2). pp.528-546.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34.pp.1-13.
Cuccia, T. and Rizzo, I., 2011. Tourism seasonality in cultural destinations: Empirical evidence
from Sicily. Tourism Management.32(3). pp.589-595.
Dasgupta, D., 2011. Tourism marketing. Pearson.
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.
Ghimire, K. B., 2013. The native tourist: Mass tourism within developing countries. Routledge.
Hadad and et. al., 2012. The economic efficiency of the tourism industry: a global comparison.
Tourism Economics. 18(5).pp.931-940.
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.
Hunter, C., 2012. Aspects of the sustainable tourism debate from a natural resources perspective.
Sustainable tourism. A global perspective, edited by R. Harris, P. Williams, T. Griffi n,
New York: Routledge. pp.3-23.
Klint, and et. al., 2012. Climate change adaptation in the Pacific Island tourism sector: analysing
the policy environment in Vanuatu. Current Issues in Tourism, 15(3), pp.247-274.
Laws, E., 2011. Tourist destination governance: Practice, theory and issues. Cabi.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Molz, J. G., 2012. Travel connections: Tourism, technology, and togetherness in a mobile world.
Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Roxas, B. and Chadee, D., 2013. Effects of formal institutions on the performance of the tourism
sector in the Philippines: The mediating role of entrepreneurial orientation. Tourism
Management. 37. pp.1-12.
Scott, D., Hall, C. M. and Gössling, S., 2016. A review of the IPCC Fifth Assessment and
implications for tourism sector climate resilience and decarbonization. Journal of
Sustainable Tourism. 24(1). pp.8-30.
Spenceley, A. ed., 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.
7

Wu, P. and Shi, P., 2011. An estimation of energy consumption and CO 2 emissions in tourism
sector of China. Journal of Geographical Sciences. 21(4). pp.733-745.
Wu, W. W., 2011. Beyond Travel & Tourism competitiveness ranking using DEA, GST, ANN
and Borda count. Expert Systems with Applications. 38(10). pp.12974-12982.
Online
How can political change impact a country's tourism industry?. 2017. [Online]. Available
through : <https://www.enotes.com/homework-help/how-can-political-change-impact-
countrys-tour-397450>.
History and Overview. 2017. [Online]. Available through:
<https://opentextbc.ca/introtourism/chapter/chapter-1-history-and-overview/>.
(Scott, Hall and Gössling, 2016)(Roxas and Chadee, 2013)(Buckley, 2012)(Cuccia and Rizzo,
2011)(Wu, 2011)(Connell, 2013)(Hadad and et. al., 2012)(Mok, Sparks and Kadampully, 2013)
(Hunter, 2012)(History and Overview, 2017)
8