Maximizing Impact on Tourist Destinations: TUI Group Strategies

This assignment focuses on the TUI Group's strategies to maximize its impact on tourist destinations. By analyzing various sources ranging from academic texts like 'Tourism Review' and 'Annals of Tourism Research' to industry reports such as the World Economic Forum's Travel & Tourism Competitiveness Report, students will explore different approaches to boost tourism demand and ensure sustainability in travel and tourism.

Report

TABLE OF CONTENTS
s
Introduction......................................................................................................................................3
LO1..................................................................................................................................................3
1.1................................................................................................................................................3
Covered in poster........................................................................................................................3
1.2 Structure of travel and tourism industrial sector...................................................................3
LO2..................................................................................................................................................4
LO3..................................................................................................................................................5
3.1 Explain factors affecting tourism demand............................................................................5
3.2 How supply has changed at TUI group to meet effects of demand......................................6
LO4..................................................................................................................................................7
4.1 Explain positive and negative economic, environmental and social impacts of tourism in
TUI group....................................................................................................................................7
4.2 Explain strategies that can used to minimise negative impact by TUI group.......................8
CONCLUSION................................................................................................................................8
REFERENCES :............................................................................................................................10

Introduction
Travel and Tourism is one of the major business sector and help in the effective
management of the various kind of clients and customers. It of the plays a very crucial and
significant role in the execution of the different sort of business operations that will help the firm
to cater the different sort of business firm. This report will lay the emphasis on the historical
development of travel and tourism. Also, the structure of the travel and tourism industry will be
taken in effective consideration. Other than this, the function of the government in travel and
tourism growth and the impact of the political changes will be discussed in regard of China and
UK. Also, the Report will lay emphasis on the meeting of the demands by TUI Group and the
effect of meeting the demands is been taken in consideration. Other than this, various strategies
are been discussed that will be taken by TUI Group to maximise the impact on the tourist
destinations.
LO1
1.1
Covered in poster
1.2 Structure of travel and tourism industrial sector.
The structure of travel and tourism industry is quite complex and interconnected that helps the
industry to cater the needs and demands of the customers and handle the business operations in
a better way. The interconnection of the various constituent business in the industrial sector will
lay a very deep and crucial impact on the business operations that will be practices in the firm.
Some constituent part of the structure of travel and tourism sector are as follows:
 Tour
operators:
they are the
major service
providers that
are placed on a
tourist hotspot
or attraction.
They provide
 Tourist
attraction: it is
a place, natural
or man made
that is used as
the hotspot
location to
attract the
customers.
 Transportatio
n: This will
involve the
facilities of
arrival and
departure as
well as moving
from one
location to
 Tourism
development:
it can be a
governmental
body that look
after the
development of
the travel and
tourism

the better
facilitates to
meet the needs
and demands
of the user.
They will look
after the
fulfilment of
the needs and
demands of the
users and help
them to have a
better
experience and
stay at the
tourist location.
 They work
with the
collaboration
of travel agents
who will look
after the
booking of the
customers and
hotels in which
the tourist will
stay.
This will
involve the
various
services related
to its
environment
for example,
boating,
paragliding,
scuba diving
etc. this will
act as the
major product
or services that
will be
provided by the
travel and
tourism sector.
another, at a
tourist location.
It will involve
a driver, who
can also act as
the guide to
provide the
detailed
 information
about a specific
location. Many
times, drivers
also look after
the
accommodatio
n facility to the
customer in
return of
minimum
charges.
industry in a
tourist
attraction.
They will also
help in
providing the
essential and
vital help like
safety,
accommodatio
n,
transportation,
hospitality etc.
to the
customers.

LO2
Covered in PPT
LO3
3.1 Explain factors affecting tourism demand
An economy consists of many factors affects tourism sector. It is because this sector is
directly related to economy. Moreover, it factors consists of environmental, political, legal, etc.
so any change in this will affect this industry (Ring, 2016). All policies and regulations will
have to be modified. The demand is also affected by this. There will be increase in demand if
these factor are stable. Besides this, there are several factors by which this sector gets affected.
They are as follows :-
TUI is providing its services at global level. So change in certain factors is affecting
tourism demand. In order to overcome this TUI should develop strategies so that they can grow
and develop in the industry.
Price – Prices is the most influencing factor that can affect any industry. It can lead to growth
and development of industry. There is very stiff competition in tourism sector. In this TUI is also
getting competition from its rivals such as TUI (Crotti and Misrahi, 2015). Due to this TUI is
not able to maintain its competitive pricing strategy. This is leading to affect demand of tourism
sector. Due to change in price TUI is not able to retain its customers. They have to frequently
change its pricing pattern. Besides this, fluctuation in prices is also a major issue in this. It has
made it difficult for TUI to set a standard price. So company is not able to target specific
customers. Furthermore, transportation cost is increased. This has resulted in rise in price in
tourism sector leading to fall in demand.
Non price – in this factors other than price is analysed. It includes income level of income. Any
change in this results in fall in demand. On basis of income level tour operators and companies
develop different packages (Forno and Garibaldi, 2015). Thus, this industry is highly dependent
on this factor. So TUI packages are expensive and not affordable to people. Other than this, fall
in income level of people has resulted in decrease in demand.

Terrorism – In recent times, this factor is affecting demand in tourism to a great extent. It has
created feeling of fear in people in all over the world. Generally, people do not prefer to travel to
those destinations where there is high risk if terrorist attacks. Moreover, after Paris and US
attacks there has been downfall in tourism demand.
Environmental – It is related to natural disasters. There are many tourist destinations that are
having high risk of occurring of natural disasters. The examples can be taken of Japan. This is
also affecting demand in this sector.
3.2 How supply has changed at TUI group to meet effects of demand
There are many sectors that is having its own supply chain management. This is because
it they are providing wide range of service in vast areas (Eugenio-Martin and Inchausti-Sintes,
2016). Tourism sector is an industry that is spread all over the world. So they must have a strong
supply chain management so that people demand can be met easily. Moreover, TUI can develop
an effective plan so that it can manage and maintain its supply chain in order to fulfil people
needs. The way in which TUI supply chain has created an effect on demand is as follows :-
Following Laws and Legislation: This is the main thing which has been modified by TUI. They
are effectively following laws and regulations of different countries. This will help them to
maintain relations with government to continue their business operations.
Reducing tourism in countries with unstable political conditions: - TUI can reduced its
business operations in countries that are having unstable political conditions (Sirgy and Uysal,
2016). This will help management of company to focus on other tourist destination areas for
growth.
Enhancing use of technology:- TUI can use technology in providing services to people. By
using internet TUI can communicate with customers effectively. They can solve their problems
and issues in quick time. By doing this customer relationship management can be maintained and
improved.
Improving quality of services and accommodation: - this is the most common thing that can be
done by TUI. They can improve its service quality to retain its customers (Moutinho and
Vargas-Sanchez, 2018). It can be done by providing comfortable hotels, flights and mode of
transportation. This will help TUI to improve its revenue.

Competitive pricing strategies: - TUI can use competitive pricing strategy in order to set
standards price for their packages. By analysing data and information management can evaluate
price of per package. It will help TUI to attract more customers and increasing its customer base.
LO4
4.1 Explain positive and negative economic, environmental and social impacts of tourism in TUI
group
The social, economic and environmental factors of a country are directly related to
tourism industry. Any change in them will lead to affect overall industry. People generally travel
to explore different tourist destinations. Moreover, they want to know about different culture and
society that exists in country (Clift and Page, 2015). There are various positive and negative
aspects of these factors on tourism sector. According to these factors services are been provided
by tour operators and companies to people.
The positive aspect of economic factor is rises GDP and income of government. It allows
government to maintain and historical monuments and keeping country neat and clean. Also,
efforts are made by them to improve country image so that more people are attracted towards it.
Besides this, there is inflow of foreign currency in the country resulting in increase in revenue of
government.
Its negative impact is that in order to maintain historical monuments' government rise rate
of tax. This creates direct impact on local people (Becker, 2016). This can also lead to rise in
inflation rate. So it overall affects the economy of country and income level of people.
Positive impact on environment factor is it forces government to emphasis more on
protecting the environment. For this policies and laws are developed to maintain and control
pollution within the country. This leads to conserving resources by proper planning and taking
effective measures. This creates positive image of country and better living atmosphere.
On the other hand, its negative impact is there is risk of affecting of flora and fauna. It is
because people will visit wildlife and nature (Boniface, Cooper and Cooper, 2016). So this
increases pollution in that particular areas forcing government to take strict actions. Furthermore,
it affects atmosphere in that area affecting life of local people.

The positive impact of social factor is it helps other people to know different cultures.
Moreover, there is inflow of rise in people during festive seasons. This result in increase in
revenue in the market. Furthermore, foreign people gets to know about what ethics and cultures
are followed by locals. It also allows people to know about history of nation.
Its negative impact is festivals can get affected due to other people. They may try to
affect festivals by spreading rumours.
4.2 Explain strategies that can used to minimise negative impact by TUI group
It is very important for companies in tourism sector to minimise the negative impact of
above mentioned factors. This will help them to grow and sustain in the market. Every industry
is affected by change in certain factors ( Xiang, Magnini and Fesenmaier, 2015). This create a
high impact on their growth. Moreover, it will allow them to take several actions and measures
according to change occurred. TUI can develop strategies to provide more services in Turkey
and Thailand. This will help TUI to grow in these areas. Thus, in order to minimise negative
impact there are various things that TUI can do:-
TUI can formulate strategies on which type of services has to be provided to people.
Moreover, they can communicate with locals and know about different tourist destinations across
Turkey and Thailand. Besides this, they can reduce their packages cost so that it is affordable to
people.
Moreover, TUI can get involved in social activities. They can contribute more in CSR. It
will create a positive image of TUI in industry. Also, it will allow other companies to increase
their contribution. Besides this, TUI can organise workshops or educational programs. It will
help in improving their brand image (Adams and Johnston, 2015). TUI can engage in
maintaining green and sustainable tourism. It can be done by visiting places only for specific
purpose. TUI can reduce tourism in sacred areas. By visiting these areas communities or nature
can be affected. So TUI can reduce tourism in these areas. This will help company to reduce
negative impact of factors on its growth and development.
CONCLUSION
Thus, it can be concluded that travel and tourism plays a very crucial role in the handling
of the business operation in a better way. Other than this, the function of the government in

travel and tourism growth and the impact of the political changes is been discussed in regard of
China and UK. Also, the Report laid emphasis on the meeting of the demands by TUI Group and
the effect of meeting the demands is been taken in consideration. Apart from this, various
strategies are been discussed that will be taken by TUI Group to maximise the impact on the
tourist destinations.

REFERENCES :
Books and Journals :
Adams, K., Snyder, J., Crooks, V. and Johnston, R., 2015. Tourism discourse and medical
tourists’ motivations to travel. Tourism Review, 70(2), pp.85-96.
Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and
Schuster.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of
travel and tourism.
Clift, S. and Page, S., 2015. Health and the International Tourist (Routledge Revivals).
Routledge.
Crotti, R. and Misrahi, T., 2015. The travel & tourism competitiveness index 2015: T&T as a
resilient contribution to national development. The Travel & Tourism Competitiveness
Report, 2015, p.13.
Eugenio-Martin, J.L. and Inchausti-Sintes, F., 2016. Low-cost travel and tourism
expenditures. Annals of Tourism Research, 57, pp.140-159.
Forno, F. and Garibaldi, R., 2015. Sharing economy in travel and tourism: The case of home-
swapping in Italy. Journal of Quality Assurance in Hospitality & Tourism, 16(2), pp.202-
220.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Ring, A., 2016. Alternative models within the framework of the World Economic Forum’s
Travel & Tourism Competitiveness Index–Suggestions for theory development.
Sirgy, M.J. and Uysal, M., 2016. Developing a eudaimonia research agenda in travel and
tourism. In Handbook of eudaimonic well-being (pp. 485-495). Springer, Cham.
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 :
Thompson group, 2018. [Online] Available Through : <https://www.TUI.co.uk/>