Evaluating Customer Interface Quality and E-Loyalty in Tourism

This assignment focuses on investigating the impact of customer interface quality, satisfaction, and switching costs on e-loyalty within the context of tourism, with a particular emphasis on how internet experience acts as a moderator. The task requires an in-depth analysis of the given paper by Chang and Chen (2008) and may involve additional research to support and expand upon their findings.

Contemporary Issues in Travel and Tourism
Industry

Table of Contents
Contemporary Issues in Travel and Tourism Industry....................................................................1
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Issues and Impact of Changes driving in Tourism Industries..........................................3
1.2 Issues in Depth.................................................................................................................4
2.2 Current Trends influencing Tourism industry..................................................................5
2.3 Niche Tourism market......................................................................................................6
3.1 Airlines groups could respond the changes in following ways-.......................................7
3.2 Strategies s on the response of change (360)....................................................................7
3.3 Your strategies in 3.2 need to be clearly justified with supporting arguments................9
TASK 4............................................................................................................................................9
4.1 issues and trends that drive change in the travel and tourism sector................................9
4.2 Consequences of businesses failing to respond to market change with reference to Myla
Travel, Thomas Cook and The Travel Network Group.......................................................10
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism is most important sector of economy. The report focuses on the issues
that currently direct changing the travel and tourism sector. The report will also discussed on
develop strategies on how international airline group business could respond to change. This
report will also describe the issues and trends that drive change in the travel and tourism sector.
This report will also focus on likely consequence of business falling to respond to market
change. This report will discuss the challenges which are facing by airlines. In the end report will
discuss about consequence of business falling to respond to market change.
Task 1
1.1 Issues and Impact of Changes driving in Tourism Industries
Tourism Industries in U.K. Is facing challenges due to changes driving in today's world. Few of
the major issues and their impact on the tourism industries are as follows -
1. Communication technology is also a major challenge and issue faced by the tourism
industries nowadays. People in this modern world are using mobile phones' internet
which bounds the tourists to stay connected to their family and friends around the world.
This leads to a major loss for the tourism industries as the people are less willing to
travel.
2. Political conditions in different countries also affects the willingness of tourist to travel to
that country. Therefore , Its affecting the tourism market. Political hindrance may come
in form of acceptance of visa, clearance, rules and regulations for the tourists etc.
3. Changing lifestyles of the people from different countries and places have different way
of living. People are moving from joint families to nuclear families which is affecting the
tourism industries as the tourists are decreasing in number therefore its a loss to the
tourism industry and a threat to profitability .
4. Environmental Factors like climate, pollution etc. are also some major issues faced by the
Tourism industries nowadays. Travellers hesitate to travel due to the environmental

conditions. Global warming and pollution are becoming a major issue for the tourists and
its causing a great loss to the tourism industries.
Technological advancement- Technological advancement has become major challenge And it
has changed the dimensions of whole industry. It can not be ignored that technology has
supported tour and travel commercial enterprise in improving their quality of products and
services. It has allowed business entity to improve their services. Due this factor the travel and
tourism industry is able to provide customer with wide range of services such as online booking,
and has provided firm an opportunity to improve their quality of services that have positive
impact on consumers. It has enabled business unit to provide virtual tour to its client.
Technology has majorly has aid organisation in increasing their potential and competencies.
Increased environmental awareness-It is other significant factor that has brought major change in
travel and tourism industry. Environmental awareness has high importance as it has focus on
preserving environment from degradation. T hats the reason the there is increase in demand of
green tourism by visitors and it has made compulsory for the industry to adopt such concept. The
green tourism intends to promote safety and protection of environment.
Improved security system- Security system refer to the arrangement of safety against any kind of
risk for the society. There has been continuous development in tour and travel enterprise so
providing security and safety to visitors has become major challenge for the commercial
enterprise. These factor have great effect on organisation growth and success.
1.2 Issues in Depth
1.) Fluctuating weather conditions – Tourism industry Is facing a major issue because of the
changing weather or climate on the globe. Tourist travel according their will. For
example – If a person needs to travel to Malaysia from U.K. He would ask for a best time
to travel according to the most favourable weather conditions. In that case a travel agency
can suggest him or her a suitable time according to the weather forecast. But the problem
arises when the suggested time or period converts into the a wrong decision as the
weather or climate changes very frequently due to pollution and global warming the
environmental conditions cant be predicted nowadays. It is resulting in dissatisfaction and

unwillingness to travel for the tourists. The weather forecasting is not so exact nowadays
and it is a major issue for the travel and tourism industry to grow or earn profitability.
Some places in the world are well known for their weather or climate like Goa in India
which attracts a lots of tourists from U.K. , France etc. But due to the increase in
pollution in India the climate of Goa is in danger as the moisture level of that place is
increasing, Global warming can be a cause. Hence , tourists are loosing their interest in
travel to Goa which is affecting the economy and causing a loss to the tourism market.
2.) Political Instability – The civil unrest or political instability can increase risk at the
destination for the tourists as it develops negative publicity resulting a great decrease in
tourist arrivals. It also affects the decision making of the tourists and destination can be
affected severely. As Tourism is growing industry it can be moulded by political purpose
but this manipulation can be a disadvantage for the tourists. Political instability can affect
the investment in the tourism industry as the services provided like leisure , fun etc. faces
the consequences. Hence, Political stability is must to make sure the tourism industry is
attracting the tourism which also helps in economic growth. Political instability affects
the tourism income and cause a negative impact on the social and cultural outcomes.
2.1 Evaluating the current trends influencing the change in travel and tourism sector
Secondary kind of tourism indents to avoid the rule of traditional cardinal. The reason
behind this is to developing and maintain healthy relationship with visitors and society. It has
been considered as effective strategy as this ha allowed commercial enterprise to enhance their
brand image and gain market share. It is also recognised as right activity as it facilitate
sustainable development. These kinds of tourism company seeks to share service of society and
it emphasizes on preserving environment from being degradation and protecting culture as well
as tradition. Various trends in Tourism sector are:Ecotourism, Food, and agro rural tourism.
Sustainable tourism-Is in case tourism activities are not managed carefully it can have negative
impact on the society as well as communities. It can have bad impact on image of tour and travel
commercial enterprise. The attribute of sustainable tourism is that it intends maintain balance
between domestic community and environment by catering the need of consumer.
Ecotourism-The main intention of this tourism is to ensure that it does not harm the environment
or society. The role of this tourism is to ensure that infrastructure improvement is beneficial for

all stakeholders. This tourism trend has allowed business entity to foster growth and has allowed
them to expand their business. It has greatly influenced the tourism industries.
2.2 Current Trends influencing Tourism industry
1. Modern technologies – Tourism market is greatly affected by the technologies in today's
modern world. Tourists are getting a great flexibility in bookings through internet, teletext, call
centres etc. These facilities or services are provided to the tourists 24hours a day. Nowadays it is
easier for people to book a trip themselves rather than visit a travel agency that too at cheaper
price. So, nowadays people avoid going to a travel agency for loosing money. They just take
help of internet and make the bookings themselves according to their needs and wants under
their budget. It may be beneficial for the tourists but tourism industry is facing a great issue as its
affecting their profitability and the economy is decreasing day by day. Hence, Tourism industry
is getting a huge loss due to the trend of modern technologies in today's world.
2. Growth of Regional airports – The regional airports in UK are growing as little regional
airports with very cheap fares. So, the number of passengers using regional airports is increasing
day by day. This is affecting the tourism industry as more and more people are taking flights
nowadays. People are getting comfort and saving their time by using regional airports near to
their destinations for arrivals as well as departure.
Independent Travellers – As the people are getting more familiar to internet , online bookings
etc. People are getting comfortable to travel independently. They book their tickets online,
accommodations , means of transport everything using different websites or online applications.
The tourist gets complete freedom to book their tickets , hotels etc. and within their budget . This
saves a lot of time and money of a tourist as he or she do not need to book a complete package
through a travel agency by visit them. The tourist can adjust the way of travelling the
accommodation etc according to the needs and budget separately. This is affecting the tourism
industry and economy as people are avoiding travelling through a agency and paying so much
money which is even beyond the budget and the packages provided are not according to their
desire, tourist do not feel comfortable in paying for the stuff he or she don't need at all but is
mentioned and charged in a holiday package.

2.3 Niche Tourism market
TUI group needs to expand into Niche tourism market which means to target a particular
audience or group based on income , price age , gender or interests. Therefore niche marketing
strategy refers to focusing on delivering a product or service to full fill the needs of a particular
tourist or target group. For example by serving a particular age group travellers lets take a age
group 30- 40years old couple. Targetting this age group tourist the TUI group can attract the
married couples of the same age group. The packages can be offered should consists a romantic
destination with a soothing environment which can satisfy the tourists who needs to spend a
quality time at beautiful and peaceful destination with love and adventure. The tourism industry
can expand itself into niche tourism market just by targetting a particular group or customers in
different means it can be a sport , adventure , festival etc. The only thing to keep in mind is to
how attract the targetted group and increase the popularity among the tourists.
Niche Tourism in Northern Ireland
Northern Ireland is getting popular as a world class golf destination. It was announced that the
open championship , worlds biggest golf tournament will also be held in Northern Ireland. Golf
tourism aims at the growth of the tourism market .
Developing the capability and capacity of the clubs to welcome the visitor. To increase the
reputation of Northern Ireland to golf tourism.
Opportunities of Golf tourism in Northern Ireland
Golf clubs have the opportunity to develop clusters so that it allows visitors to play different
courses during their trips. They can tie-ups with hotels and restaurants to offer a complete
package to the tourists. Holding golf exhibitions, workshops etc. Providing hospitality and
transport facilities during golf events.(Litvin, Goldsmith and Pan,2008)

3.1 Airlines groups could respond the changes in following ways-
1. Due to the technological change people are using the internet more and more , Hence The
airlines group can build a social pace and image to build a brand equity in the market
which can help to attract the passengers and increase the profitability. It simply refers to
getting popular or building a social existence so that people can follow the airline groups
and get attracted to the airline for getting their services.
2. The customers nowadays are in both the world online as well as offline so balancing
between both is necessary because only focusing on one can leads to a loss one or the
other way.
3. Changing the course in revenue generation – Due to the increase in fuel price he
economic condition and the competition is increasing in the airline business. The Airlines
groups needs to find new ways to stop the revenue flow and try to generate revenue from
different means such as selling products and across the value chain in the airline at
airports as well as flights .
4. Collecting the profiles , data and information on passengers choices , preferences and
behaviour can be a gold mine as it can help airlines to develop a strategy for delivering
the products and services to the customers . Analytics can help in achieving a great
business as the information about the passengers can help in providing a better service to
the customers.
SWOT ANALYSIS
Strength:The UK government has supported
industry and allowed them to become major
player.
Airlines
Effective marketing strategy.
Weakness:
Poor infrastructure development.
Ineffective investment strategy.
Delays in services due to high traffic.
High spoilage rate. It means that if passenger

Strong customer base
Has strong workforce.
Excellent and quality services.
It is effective transportation as travellers can
reach at any destination within few hours.
Growing income level.
High growth rate.
flight is missed there is no refund procedure.
Require huge investment of capital.
Expensive mode of transportation.
Improper management system.
Opportunity:Airlines has opportunity to
improve its investment and marketing
strategies.
Technological advancement will assist Airline
industry in improving their quality of services.
The airline companies have opportunity to
develop new products and services that will
allow firm to increase their profitability and
revenues.
Providing or introducing best offer and
packages will enable commercial enterprise in
attracting more number of customers.
Threats:
Much influence of economic and social factors.
The legal and environmental factor have great
impact on the industry.
Increase in competition.
Threat of terrorist attack.
PEST analysis
Political:Political environment in which Airline companies operates are highly favoured by
travellers. It is operating in such industry where providing safety and security to passenger is a
major challenge. So these factors have great impact on the growth and success of the industry.
Social:The change in trends, culture and belief has created the challenge for Airlines companies
in order to identify the needs and demand of passengers. It has become difficult for firm to
maintain the balance between demand and supply of products and services. Due to change in
trend there is increase in demand of industrial goods and services. This has allowed organisation
to increase its profit margin.

Economic:various Economic variables such as inflations, economic recession, income
distribution etc. has great impact on the profitability of the industry. These elements also have
great influence on the financial stability and performance of commercial enterprise.
Technology-Airline industry is utilising services in conducting operational activities .This has
allowed Airline company to improve its quality Of services and allow them to increase its
efficiency as well as effectiveness. It has provided business entity an opportunity to differentiate
their products and services from that of other industries. This activity has allowed enterprise to
gain competitive advantage.
3.2 Strategies s on the response of change (360)
Strategies are implemented in air lines to make sure that they are maintain their market positions
and reputation. To improve market value of air lines, the management should try to make public
relation, and should improve the marketing skills, and management of airline should try to
understanding opportunities presented by market.
Challenges facing by airline :
5. When some high level of technical engine supplier comes in market than with their
highly advanced product than airline have to face challenges, airlines need to upgrade
their system. They need to change their scheduling system, training and maintenance cost
as well.
6. To do long time business management have need to make reputation and brand name
because customer always go with the brand. Bad reputation, negative feedback can
immediately drive business carrier meltdown.
7. Internet reduces the cost of tickets, but management should take this problem as a
opportunity because its increase the number of customers, because customer can travel
easy for the best price.
8. Increased the cost: major challenge found in airlines during the development is they need
large amount of money to maintain their brand name and reputation in market.
9. Terrorist attack have brought a major lose in airlines so people is going to choose other
mode of transport than airline.(Middleton and Clarke, 2012)
Change in the travel business environment : unpredictable environment is having a profound
impact on airlines. Travel firms are being increase day by day. To overcome these strategies
managers of airline should try to develop innovative strategies and marketing programs. By

using this technique manager of airline can improve their market share and improve their
reputations in the market.
To overcome all these challenges:
1.) Structure : management of airline should try to focus on structure to over come the
problem, because organization structure is effective key of management. Organisation
structure is combination of responsibility, power and bases, authority.
2.) Culture: to satisfy customer management should provide a common organization
culture. Culture is combination of assumption, values and ways of doing things. Common
organisation is also useful in financial statement of airline. So management should try to
focus on culture.
3.) Planning and force casting: research and planning is the important activities in airline
marketing. To improve the market reputation management should focus on research
activity and Planning activity.
4.) Technology: to increase the convenience and reduce the cost technology is used in
airlines. Higher level of technology are used in complex and dynamic environment.
5.) Marketing and branding: management of airline should provide right service and right
product with high quality to customer. It can be done only by revenue management and
customer relation management.(Molz,2012.)
Marketing Mix:
It is required by marketing manager in organisation to formulate effective and suitable marketing
plan. The role of marketing personnel is to ensure that the marketing plan should involve various
elements of marketing mix such as Product, price, place , promotion , people, promotion and
physical evidence.
Product-The Airline companies have focus on analysing the needs and demand of
customer. It emphasizes on providing Good quality of product and Quick services to its
passenger. The organisation has planned to Introduce various offer and packages in order to
attract more number of customers.
Pricing Strategy-Commercial enterprise intends to reduce the marketing cost as it will allow
firm to minimise the price of their products and services. They have planned to provide valuable
services to passenger in exchange of prices. Airline industry has decided to divide market into
two segments. It has introduced two set of fares that is weekdays and stay-over weekend fares.

Promotion strategy- The marketing and promoting strategy of Airlines companies have focus
on representing the unique features of the industry. Specialised promotional fares have been
introduced by organisation in order to promote is brand and enhance their image in market.
Place:The Airlines have focus on establishing its infrastructure in world wide in order to attract
both domestic and global passengers. Generally most of the airline have online presence which
has allowed firm to reach wide number of customer. This has provided consumer an opportunity
to avail online booking facility.
People-The commercial enterprise have focus on targeting business class people. It emphasizes
on analysing passenger need and fulfilling their demands.
Physical evidence- The company has its own infrastructure. It intends to have focus on
developing its infrastructure.
3.3 Your strategies in 3.2 need to be clearly justified with supporting arguments.
By using structure technique management of airline can improve their marketing
reputation . As we know structure is a combination of power, responsibility. If management
provides all services at right time with structure than customer will give positive feedback.
Structure is the best solution to avoid the challenge which are faced by airline.
Planning is also another best solution to over come the challenges. If management is
having a good plan about his all services than his market value will never decrease. Management
should always keep plan for his new project and his innovation. For airline field it is best
solution to face all the challenges, for example if airline team have a plan to fight sudden
changes environment than customer will also feel relax and will give positive in the market.
Next solution is technology if management have a best technology in every field than it is
also a good solution to face the problems.
The management of airline sector should select the multitask employee so that employee
can provide the best services to their customers and can improve their own skill also. A good
management helps any organisation to improve its market value and reputations. (Molz, 2012)
Pricing strategy will allow Airline companies to reduce its marketing as well as other
cost. It provides firm an opportunity to develop their focus on reducing the price of their
products as well as services and to attract more number Of passenger.
Product development strategy will allow organisation to develop and improve the quality
of goods and enable them to gain customer loyalty. It also provides business entity a chance to

change perception of society regarding industry. This activity will allow business unit in
enhancing brand image in the market.
Promotional strategy- Marketing activities will allow Airline industries to promote their
brand and increase its sales as well as profitability.
People strategy -This will provide firm ease in identifying the needs and demands of consumer
and reducing cost of production.
TASK 4
4.1 issues and trends that drive change in the travel and tourism sector
As internet sides allow the people to do work in different parts of world. Internet sides
giving the opportunities to people to prove their skills. People can do work with different
language in different field.
Technology : technology is increases competitiveness. Technology is very useful for customers
because by using technology customer can book the cheapest tickets, it gives help to make
decision easier.
Social media networking is used for business purpose and personal purpose. There is
beneficial role of technology in travel and tourism sector. There is advantage and
disadvantageous of technology in travel and tourism sector.
People check the websites to get the advice on planning their holidays and vacations with
their family of friends. Facebook and online travel firms gives so many facilities and options to
customer to choose his or her holiday destination with all security and comfort. Internet provides
multitude informations to customer. Social media sites are the heart of technology. Technology
increases customer for travel agent.
 Taxed: when business or any company has highly taxed then its growth will be limited.
Travel and tourism is one of the most taxed in the whole world. Taxed imposed on
various sector so taxed is affect all the growth and progress of travel and tourism sector.
 Cost of fuel: raise cost of fuel and petrol, and new advanced parts of airlines, trains are
also posed a serious change in travel and tourism.
 Human resources: shortage of manpower in airlines services at then top, middle stage.
Inexperience human resources affect the quality of service. For survive in travel and
tourism industry management should trained in human resource manager, supervisor, and
leader.

 Lack of security: Malaysia is facing security threat for the travels with several and
terrorism activity.
 Communication technology: in Malaysia there is lack of communication technology,
the tourist are bound to remain connect with their family and friends in Malaysia.
 Environmental factor like pollution, climate, fuel also are major issues that are the faced
by the travels in Malaysia.(Moutinho, 2011.)
Impact of above mention issues on tourism business- All above issues have great effect on
tourism business. It majors impact on the growth, success and profitability of firm. These issues
can have great effect on the industry sustainability. It has been analysed that active organisation
in hospitality industries are able to foster growth and achieve success due to advancement in
technology. It has provided firm an opportunity to increase its sales and profitability.
Environmental factor have great impact on the industry. Hotel and aviation sectors are majorly
affected by these factors. In addition to increase in price of fuel has forced industry to increase its
price of their products and services that have major impact on the demand Of industrial goods as
well bas services. Legal and political factors has provided Airlines company an opportunity to
increase its stability and sustainability. Technological factors have assisted organisation in
improving Quality of their goods and services.
4.2 Consequences of businesses failing to respond to market change with reference to Myla
Travel, Thomas Cook and The Travel Network Group.
3.) lack of proper management: when management of Myla Travel, Thomas Cook is not
providing a good staff of airline so customer is not getting satisfy with their services. So
the management of malya travel is poor as they are not providing good quality in food,
they are not having intelligent employee at this time that's why they are facing with the
challenges. When management is going to select uneducated employee than it will also
give a negative feedback. So management should select his team as intelligent as he can.
Employee of management team Myla Travel, Thomas Cook have not skill to do
multitask. The lack of multitask skill also creates problems.
4.) Salary expense per employee: salary expense per employee is another factor that
affects the profit of airline myal travel, Thomas cook. Most of the employee reduction to
came at the low salary level so management provides a high paid salary to employee but
the profit is decreases day by day.

5.) Lack of revenue management: revenue management is very important in airlines for
hub and spoke carrier. But now days management of airlines of Myla Travel, Thomas
Cook are focusing only technology they are not focusing on revenue management.
6.) Cost of fuel: cost of fuel is raises continuously day by day so its going to difficult for
myal travel, for maintain the airline field and the management is unable to providing the
good services because the lack of resources. As high level of technology is comes in
market, they provided most expensive and high security system so its is not possible for
myal travel, Thomas cook and other clients to buy that expensive parts of airlines. Most
of the clients of airline is not able to purchase high security system which are present in
market that's why the customer is going with other competitive. Other competitive who is
able to provide high security system with the best quality.
7.) Lack of training : myal travel dose not provides development training to their employee,
motivational tannings should give to employee as they can learn the new technologies
and they can learn how they can improve their skills. Mayal travel are unable to provides
a good management and good services. Other airline services gives their employee
development trainings these kinds of trainings helps the employee to improve their skills,
the employee get to learn how they should behave with their customer, how they should
treat with the customers. All the member of management staff should try to satisfy their
customer with the services and should try to solve the customer's problem.
8.) Quality of food services: other airlines are providing the best quality of food. Other
airline are trying to give their customers a different and new taste but the mayal travel
airline not focusing on their food department. mayal travel are not giving good food
quality they are unable to satisfy their customer. Customer always want the best qualities
in food and other items. Therefore, customers are going with other airline
(Puzakova, Kwakand, Rocereto, 2009)
The consequences of failing to respond to the various changes in market may have great effect
on the growth and success of the industry. It may lead top decrease in sales volume, reduction in
profitability , increase in cost of production etc. This factor may have adverse impact on the
quality and demand Of products and services. It may result in lack of accountability and increase
in liability. Failure in giving response to change may have negative effect on the image of
industry. It may further lead to worse condition such as liquidation of organisation, poor

management, high employees turnover, inefficiency in operational and production al activities.
The organisation may left behind if it fails to adopt advance technology. This factor has great
effect on the financial stability, profitability and sustainability.
Conclusion
Based on the above report it can be concluded that there are some important strategies
like structural, cultural, technology which are useful to come over the challenges. This report
concluded that terrorist attack, changes in business environment are some challenges which are
faced by airline industry. This report also focused on consequence of business falling to respond
to market change. It described development trainings, management, fuel cost, revenue
management, etc. it also described the solutions to overcome the challenges. It focused on issues
and trends that drive change in the travel and tourism sector. Issues are like shortage of
manpower, fuel cost, lack of management, technology issues, lack of communication technology.

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