Travel and Tourism Management: A Comprehensive Analysis of TUI Group's Business

This assessment delves into the dynamic world of travel and tourism, focusing on the TUI Group, a leading tourism business. It explores the historical evolution of the sector, its structure, and the key factors influencing tourism demand. The study analyzes the impact of tourism on the environment, economy, and society, highlighting both positive and negative effects. It also examines strategies to minimize negative impacts and maximize positive outcomes for TUI's business operations.

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Travel and Tourism management
Student’s Name:
Student’s ID:
Date: 03.05.2018
Professor Name:

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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
L01:..................................................................................................................................................3
1.1. Key historical expansions in Tourism and Travel sector......................................................3
1.2. Structure of Tourism and travel sector.................................................................................4
Task 2...............................................................................................................................................5
L02: PowerPoint Presentation.........................................................................................................5
Task 3...............................................................................................................................................6
L03:..................................................................................................................................................6
3.1. Factors that affect the tourism demand.................................................................................6
3.2. How supply is changing at TUI for meetings demand effects..............................................6
Task 4...............................................................................................................................................8
L04:..................................................................................................................................................8
4.1. Main Negative and Positive environmental, economic and social impacts of Tourism with
TUI group business......................................................................................................................8
4.2. Strategies to minimise negative impact for maximizing positive impact on TUI Group
business........................................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Travel and Tourism sector is regarded as the fastest rising service industry, as its share has been
increasing heavily over the years. For each nation, Travel and Tourism has become the revenue
source generation and exchange of foreign earnings. Besides, it also increases its market share
and holds a considerable position for generating employment because of their integrated nature.
This assessment is about TUI group that is known as the leading tourism business with a huge
brand portfolio of its tour operator airlines, leading online portals, and other incoming agencies.
The Company also has around 67,000 employees, and a turnover of 17.2 billion Euros. However,
the study will also make analysis of the factors that affects tourism demand, along with the
positive and negative effects on Social, Economic and Environmental factors of Tourism on TUI
group.
Task 1
L01:
1.1. Key historical expansions in Tourism and Travel sector
Tourism industry has been considered as a biggest economic driver at present while the growth
rate has remained higher in contrast to retail, communication and manufacturing industries. It is
anticipated that the industry will support around 266 million jobs in 2013 that is higher when it is
compared to other sectors (Bianchi, 2010). Despite of the economic clues in the last three years,
around 1 billion tourist has crossed border for purpose of tourism. However, major expansion has
attributed the tourism industry through creation of the foreign exchange funds, which has became
a key source for the international and national employment. Below is the Leaflet made on the
topic.
Time Period Development
3000BC and 1500BC Travel mode business in Egypt, and Travel mode was a kind of pleasure and
religion

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18th Century Cultural and Historical tourism known as Grand Tour
Middle Ages Holy day regarded as Holiday came to existence done by European
1990s The Development of airlines like American and Delta
20th Century Online Tour operations and Mass International tourism
In the Ancient time, the rich people of Rome spent time in summer by going out for tours in various
Coastal areas. During Medieval age, it saw that the tour to Pilgrimage came to existence. This also
had made business of tourism among certain travellers. In order, people having medium income
and the rich background started in taking huge interests for travelling to certain places and
countries. Besides, this trend has also led to rise in hotels and accommodations for place to eat and
even sleep. During 18th Century, culture and health played a decisive role in the growth line of
tourism packages. People that had effective income were also arranging tourism and travel
packages. During 19th Century, the industry also saw gain in popularity among wider audience.
This is where the increasing income level people in society were raising their desires in spending. In
the same time, this saw that commercial aircrafts also came to existence (Bianchi and Stephenson,
2013). However, the growth saw in Charters and Railway was increasing tourist numbers. While in
20th Century, the developments in hotels, transport, and resorts were attracting certain travellers in
famous destinations.
1.2. Structure of Tourism and travel sector
On identifying the structure, Travel and Tourism sector shows three sectors that are Public,
Private and Voluntary. Below figure asserts the divisions where this sector is divided into key
segments. Below figure asserts that Travel Planning includes tour agencies and operators that are
approached presently. As tourism industry is operated by tour operators, it also helps to facilitate

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accommodation with the travellers (Gössling, et al. 2010). Besides, tourism sites include
attractions within destinations in artificial and natural forms. This includes the historical
buildings that are created by travel industry or government for attracting travellers. In order,
transport also plays a decisive role that attracts tourists in major destinations. However, as the
destination depends on transport system, the developments could be seen through airlines, rail,
and road transport (Adriana, 2009). Accommodation is also a desirable aspect, as this includes
beverages and foods searched by quality services, travellers, discounts, facilities, etc. Thus,
lodges, resorts and hotels also form a key area of accommodation.
Figure 1: Structure of Tourism and travel sector
(Source: Author)
Task 2
L02: PowerPoint Presentation
(Refer to PPT)
Travel and
Tourism
Travel and
Planning
Travel
agents
Agencies
Tour
operators
Transport
Airlines
Road
Rail
Accomoda
tion
Bed and
Breakfast
Hotels/
Lodges
Fooding
Restaurants
Sites
Parks and
Zoos
Wildlife
Mueseums
Local
travel
Cabs
Buses
Rent a car

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Task 3
L03:
3.1. Factors that affect the tourism demand
As opined by Curtin (2010), the demand for tourism services and products are considered as a
decisive factor and this needs special consideration from the industry in particular. Because there
has been concern on the competitive environment of tour’s operator industry, the manager of
TUI group has intended to analyse the effects of demand in tourism industry of UK. Besides, the
major factor that affects demand for tourism services and products in UK are been detailed with
a change phenomena (Shaw, Bailey and Williams, 2011). Demographic factors show the change
of demography affects demands since tourists have high spending power. This mainly includes
high number of the youths that have a high travelling frequency. In order, technological factors
like availability of information and online reservation system on Internet have affected
customer’s demand, which gets information within the industry.
Besides, Battour et al. (2017) argues that Currency rate fluctuations also affects since decline in
currency prices for a target country will attract high number of tourists. In such case, money will
show higher value in the country. For example, if the value of GBP falls to US dollars, then there
will be a high demand for tourism services in UK. Further, Political stability also affects where
tourist have high demands. On the other hand, inflation showed in interest rates must increase
with the overall cost of money, and the customers willing to spend fewer amounts with the high
interest rates (Dwyer, et al. 2009). Considerably, the increase in the trend of globalisation and
association of service providers from one to other country has enabled this trend to be more
decisive. Hence, this is where TUI group by considering all the factors must create high demand
for their services and products in tourism industry of UK.
3.2. How supply is changing at TUI for meetings demand effects
As opined by Bilgihan, et al. (2016), TUI group being the leading tourism company in UK
should create a balance for supply and demand of their key tourism products, which can be
offered to a country such as China where the industry can run effectively. Besides, the

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stakeholders and the government in the tourism sectors are putting large efforts that could strike
a equilibrium between two factors. In order, the supply of tourism services and products has been
changing in respect to the circumstance where stakeholders in the business have reacted
effectively with rising demand (Hares, Dickinson and Wilkes, 2010). However, TUI group
should try to look at other services such as Provision of lodging, seasonality, quality, service,
product types, and technology to remain deployed in travel and tourism sector.
However, it can be also analysed that due to rise in pressure over accommodation, TUI group in
UK has to manage their increasing demand, and the high accommodation numbers developed in
tourist places. As opined by Brida, Cortes-Jimenez and Pulina (2016), the tour operators of TUI
is also trying to manage effectively for increasing demand of tourism services and products.
Thus, this is done because tourists are able to seek proper facilities and information on these
destinations (Sharpley and Telfer, 2015). In case of TUI, service and quality are regarded as a
prime aspect for the tourists at present because the stakeholders in the industry are heavily
focused on the attention to supervise the demand of products and services of tourism.
For TUI group, the seasonality of demand in their services and products matter hugely, and this
is where it has to be directed by rise in prices for a peak season. In order, reducing of prices in
Off-season might show that demand can be directed as well. Thus, technology has been a key
element that will manage demand for tourism services and products of TUI group with process
of online reservation (Liu and Park, 2015). Moreover, it is seen that online reservation has also
become effective for tourist to avail services from home country. Below table shows, what TUI
group has provided effectively.
Travel and transport TUI provides electronic conventional cars and carrier carts to support for the
business interest and purpose of travellers.
Recreational activities It provides Casinos, Golf, music, dance, mountain climbing, scuba diving
and forest safari.
Accommodation TUI offers facilities like hotels, villas, guest accommodation, food service,
catering, and lounges to have good delight at international level.
Table 2: Supply and Demand TUI provides

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(Source: Author)
Task 4
L04:
4.1. Main Negative and Positive environmental, economic and social impacts of Tourism
with TUI group business
According to Page and Hall (2014), Tourism has shown negative and Positive effect in Countries
such as Spain and Egypt. One of the effect seen is Egypt is dependence of country’s global
tourists which makes majority of their market share while tourism only employs 12% of its
population workforce, and this could be viewed as a negative effect on their economy. Because
tourism result in increase in demand for their goods and services, the price hike in Egypt affects
local resident, as income do not increase proportionally (Sharpley, 2014). From social prospect,
the ethnic festivals, and religious rituals have even reduced to several tourist expectations.
However, the green house gases introduced in the atmosphere has been causing chances of
global warming, and that is detrimental in Egypt. These factors could heavily make an impact for
TUI to do their business in UK (Mok, Sparks and Kadampully, 2013). However, the positive
impact that will be effective for TUI to do business is that Egypt is trying to develop Coastal and
desert areas outside city cordons. Economically, some of its tourism services and goods are not a
subject to exchange with international trade, and this will open export facilities to diversify the
export base with foreign earnings (Hays, Page and Buhalis, 2013). Socially, Egypt lifestyle, and
their way to create jobs has led to a cultural understanding, and way to increase their foreign
investment.
In case of Spain, the positive economic impact showed is the job creation facility, as the industry
generates two out of 10 jobs worldwide while the negative effect is the unforseen terror, political
upheaval causes in Barcelona despite its partying weather (Williams and Shaw, 2013). Besides,
the positive environmental effect is the sustainable tourism in Spain spotlights more on
responsible planning, as this is why more customers are becoming aware of the lasting benefits.
Thus, TUI can do their business environmentally if Olympics and Mega Football events take

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place repeatedly, which will attract large tourists to visit even if there is no case of harmful
gases. As opined by Connell (2013), the positive social effect in Spain is that tour operators are
focusing on experiential learning, and in that case, TUI will seek impressive experiences for their
guests. Moreover, commercialisation is putting an end to Spain acrobatic social culture, which is
featured through genuine travel experience.
4.2. Strategies to minimise negative impact for maximizing positive impact on TUI Group
business
According to Hall, Timothy and Duval (2012), in order to contract with the negative
consequences made for Spain and Egypt so that positive impact can be produced for TUI
business group, it is imperative to manage these factors at first. It is important that the local
people of Spain and Egypt must be included in an economic policy, which will provide benefits
to handle the increasing price of tourism products (Page and Hall, 2014). Because TUI group
provides affordable rates, it would be not divulging for the company to make their business with
the global tourists. Thus, the negative economic effect can be reduced by using a diversification
strategy, which could reduce dependency for tourism products of TUI group. On the other hand,
the negative environmental effects could be decreased by developing a policy, which will resolve
the conflict between access to the environmental decay and natural resources.
Hence, this is where protection agencies have to be appointed for conducting a review of Spain
and Egypt regarding their future policies (Hays, Page and Buhalis, 2013). Further, the negative
social effect could be decreased by maintaining strong host culture that ascertains mix of strong
culture through the key tourism activities. This is where people must be dedicated with strong
adoption with own culture. Moreover, TUI group can use latest technical equipments and active
communication to develop feasibly in travel and tourism industry.
Conclusion
The paper concludes on a strong understanding that is made for travel and tourism sector of TUI
group in UK that expands many plans to develop its territory and do business in other countries.
This assessment shows the history and the major structure of tourism and travel sector, which is
followed by influence of the national and the international governmental agencies of tourism

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industry. Further, the key effects associated with demand and supply for TUI group is been made
whereas the implication of positive and negative effects of tourism in Egypt and Spain is defined
with economic, environmental and social factors.

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