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Travel and Tourism Industry | Case Study

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Added on  2020-02-05

Travel and Tourism Industry | Case Study

   Added on 2020-02-05

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CONTEMPORARYISSUESINTRAVEL TOURISM
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Analyzing the issues presently driving the change in travel and tourism sector ..................31.2 Analyzing the different current issues using appropriate methods and resources ................5TASK 2............................................................................................................................................5TASK 3............................................................................................................................................53.1 International airline groups businesses responses to change.................................................53.2 Strategies developed by businesses to provide response.......................................................73.3 Justification for the selected strategies..................................................................................8TASK 4............................................................................................................................................94.1 Impact of issue and trends that drive changes in travel and tourism sector...........................94.2 Consequences of the businesses failing to respond to the market change...........................10CONCLUSION..............................................................................................................................10REFERENCES .............................................................................................................................112
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INTRODUCTIONTravel and tourism is biggest growing industry at present in UK. It further play importantrole in supporting economy by creating jobs, contributing in the global GDP etc. It has beenidentified that 1 in 11 job is created by travel and tourism sector. In 2014, it generated US$7.6trillion to the world wide economy (UK tourism statistics, 2014). To boost the travel and tourismof UK, government also takes significant step like, initiating campaign like visit Britain etc.According to the reports of Office for National Statistics, UK is listed as eight largest foreigntourism destination ranked by number of visitors. The international tourist helps in enhancing theforeign exchange earnings and overall revenue of the nation. Overall, it can be stated that traveland tourism industry serve as major economic booster. However, at present the industry is facingmany issues that will be discussed through this paper (Robson, 2013). In this report, variousaspect of travel and tourism industry will be studied in the context of provided case study. Here,the learning will be shown regarding issues presently driving change in travel and tourism sector.Further, analysis about the impact of issues and trends which drive change will be provided.Thereafter, strategies will be developed on how selected entities will respond to change. TASK 11.1 Analyzing the issues presently driving the change in travel and tourism sector In the present section, learning will be shown regarding the issues which are faced bytour operators while providing holiday packages to North African countries. There are manytourism companies that provide tour packages to Egypt (Smith, 2014). It is leading destination ofNorth Africa that is famous among travelers for, Pyramids, natural beauty, attractive beaches,deserts etc. Presently, there are many factors that are driving change in travel and tourism sector.To sustain in the present dynamic market, it is important for organizations to consider thesefactors significantly. The description of which are provided as follows:1.Need for increased security: The safety concern among travelers is increasingsignificantly after terrorism incidents at famous travel destination like, America (Worldtrade center attack), recent attack in Paris etc (So, 2014). It has been identified fromvarious news reports that terrorist are targeting travel destinations majorly. This hasfurther created unrest among international travelers. Therefore, customers prefer travel3
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package for destinations which are safe and secured. Hence, it is important for entities toconsider emerging needs for enhanced security. The selected destination, Egypt is alsoprone to terrorism risk in past therefore, tour operator must provide assurance regardingsafety and security of its customers and design the tour package only after analyzingpresent political conditions of the country (Ritchie, 2011). 2.Advancement in technology: The technology is important factor that assure sales ofholiday package at present. It is important for the organizations to ensure technical upgradations while providing services in the present competitive market (Mich and Hull,2012). Considering this aspect, it is becoming viable for tourism entities to provide onlinetour packages etc. This increases the convenience for customers as well as company.Further, for marketing the selected destination, Egypt, virtual tour can be used. Atpresent, customers prefer online booking of holiday packages by making e-payment etc.therefore, entities should ensure that security is provided against internet hackers etc(Sundbo, 2014). 3.State of economy: The economic conditions of home country also play important role indetermining e sales of tour package. Such as fall in the disposable income of UK willaffect the purchase decisions of citizens (Kiráľová and Pavlíčeka, 2015). It is expectedthat individuals will resist taking international tour packages to save money. Likewise,increase in unemployment level will also reduce demand of holiday packages etc further;increase in VAT in Egypt will make traveling to the cited destination costly. 4.Increased environmental awareness: There is significant rise in environment concernamong public. The operations of travel organization have direct impact on surroundings(Reisinger, 2013). Such as it is alleged that tourism activities are major contributor inincreasing marine, air and noise pollution. Therefore, many conservative groups boycottand restrict services offered by tourism entities. Therefore, it is important for touroperators to consider emerging needs related to environment while providing its services.1.2 Analyzing the different current issues using appropriate methods and resources From the provided case scenario, it is clear that tourism destination falling within MiddleEast and North Africa can be affected. There are wide ranges of issues that are likely to affecttravel packages which will be offered for Egypt by the tourism company. The significance of4
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