Tourism Industry Structure and Impacts

This assignment delves into the intricate structure of the tourism industry, outlining its core components such as transportation, accommodation, attractions, and food & beverage services. It further examines both short-term and long-term impacts of tourism experiences, encompassing environmental, economic, and social spheres. Students are expected to analyze the provided references and demonstrate a comprehensive understanding of the tourism industry's complexities.

TRAVEL AND TOURISM SECTOR

Contents
INTRODUCTION...........................................................................................................................3
TASK-1............................................................................................................................................3
1,1 Historical development factors..............................................................................................3
1.2 Structure of travel and tourism sector....................................................................................4
TASK-2............................................................................................................................................5
2.1 Functions of government and sponsored bodies....................................................................5
2.2 Local and national policy influences.....................................................................................6
2.3 Implications of political changes...........................................................................................7
TASK-3............................................................................................................................................7
3.1 Factors affecting tourism sector.............................................................................................7
3.2 Supply has changed at TUI group.........................................................................................8
TASK-4............................................................................................................................................9
4.1 Positive and negative factors under tourism..........................................................................9
4.2 Strategies can be used to minimise the impact under tour and travel sector.......................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Travel and tourism sector plays an important role in the field of economic growth and also
generating various opportunities in the field of employment sector. This report is based on TUI
travelling group which is a British Travel Group Company and its head office is located in UK
(Carter, 2007). The company conducting its operations around 180 countries and having more
than 30 million happy customers. More, than that it also covers the key historical developments
and its related structure ad hoe the government is functioning under that to promote tourism
sector and how the demand and supply factor are affecting ad made an impact of tourism sector.
TASK-1
1,1 Historical development factors
Tourism industry is considered to be one of the vital industry in the nation. It contributed
down more than 10 percent in the field of economic growth and development. The travel and
tourism industry historical development are categorised into three different time bands and they
are described as follows:
 Prior to 1945:In ancient times most of the peoples belongs to such areas related to the
cultural communities, local and rural communities. The situation will not change even
with the arising of the industrial revolution and due to that slow progress start in the 18
century world under which people belongs to higher class can only enjoyed down the
travel facility (Falk, 2011). The people who belongs to the low class are not been capable
to enjoy down the travelling and tourism facility.
Before,1950 s tourism was not developed and working inconsistently in the field of restaurants,
hotels, conveyancing, tour and travelling operators and so on and all such people are working
independently in their respective fields. Hotels mainly engaged in their business to give down a
bed on rent for night. The railways and airlines are engaged in the business to sell down the seats
and travel and tour agencies are conduct their work regarding selling of travel and tour packages.

In 1946,The World War Period the people who are rich, privileged and wealthy are only allowed
to enjoyed down the international travel and leisure facility.
 1945-1979:I the period of 1945 the development and growth takes place in the field of
travel and tourism sector and this period gives new dimension to them.
In between 1950s onwards, the development took place in UK and most of the people who
previously conducting their business individually are integrated with each other to carried down
activities in field of travel and tourism sector (Huang, 2009). Foe example:Hotels changes their
process he does not only owe bed only but along with the certain facilities and services are
provided by them to its customers. Transport and tour operators they engaged themselves under
airline business, whereas airlines offered various accommodations and insurance facility to their
travellers so they can enjoy with great comfort and leisure.
From 1950 onwards the certain factors are changing in the field of tourism industry where the
tourist operators provide certain of benefits to there passengers by increase down paid holidays
facility by improvement under the combination factors related to the package tours, holiday
packages, family tours packages and so on.
 1980 to current period:During that period most of the airlines offering down various
arrangements in field of travelling such as holidays, medical facilities, providing car for
traveller's journey and so on.
In 1990 s the development which takes place under tourism sector under UK and due to that
several big companies was affected because of such travelling companies. Most of the people are
enjoying down the travelling and tourism facility and there are 75% of people who wishes to
spent down money on Air travelling industry and enjoy it with great comfort and leisure
(Ndubisi, 2006). In today' 21 century world the travelling ad tourism playing down a very vital
role and contributing immensely in field of economic growth and development.
1.2 Structure of travel and tourism sector
It involves down six important components and they are as follows:
1. Attractions:It plays a critical role in the field of travel and tourism industry because most
of the individuals are generally travelled to see down the attractions places and which
having its own beauty and culture. It can either be natural or man made. The natural
attractions considered to be those which having its own immense beauty and are gifted
from natures such lakes, rivers, dams and so on. While man made beauty are those which

not come naturally it is the results of individuals, they are the persons who made it and
due to them the large number of people are coming and enjoying such attractions and
they are monuments, buildings, structures and so on. More ,than 6 millions people are
coming there to enjoy such places.
 Transport:To reach out any destinations the transport ad conveyancing plays a great role
because these are such things who makes the journey simpler and easier and person can
easily reach anywhere with the help of such transport and it included certain facilities in
form of roadways, railways, transports and so on. Near about 5 millions passengers will
travel down UK in each year and carry down 12 millions passengers to over 1200
destinations in a relevant period (Pesonen, 2013). Today. Near about three fourth of the
passenger could avail down the facility of air travelling to reach out any destinations so
they can quickly reach down their destination within a short span of time and through that
they can enjoy comfort and leisure during travelling.
 Tour operators:These are such persons who are arranging certain holiday packages and
selling to their customers and the package they are deciding it is accordingly to the
customers needs and satisfactions and it can sell by them or through his agents.
 Travel agents:These are certain person who acts as a link between tour operators and
public and their work is to sell down the pamphlets and brochures so that maximum
numbers of people get information regarding the tours and travels package which decide
by the company tour operators.
 Tourism development:The government and travelling department plays down a vital role
under the travel and tourism sector because without them the promotion is not been
possible. They are conducting promotional activity time to time so that maximum people
gets detailed informations regarding the tours and travelling sector and through that large
number of people will be attracted towards it (Yoo and et.al., 2012). It also helps down in
rapid growth and expansion of country and promoting various opportunities in field of
education and employment

Illustration 1: Structure of tourism.
(Source: Component of tourism industry 2013 )
TASK-2
2.1 Functions of government and sponsored bodies
There are several changes that been witnessed in the field of travel and tourism industry
regarding the affordable airfare announcement. The several changes have been made under the
economic growth and development and Tourism and travelling industry are come over to reduce
down the negative impacts that takes place in environment. The government and its related
bodies takes responsibility to promote down the travel and tourism sector and also functioning in
such a manner so that country's growth will not affect and rapid expansion takes place.
Local government
It takes the responsibility to provide down the basic infrastructure and services to the
visitors and help down the tourism sector so that they can attain their objectives without affecting
the environment. More tan that there are several other functions to be performed by local
government such as to take care regarding the garages and waste so that it will not affect the
visitors and will not pollute the environment badly so, for that government take essential

measures to control on that and it can be done with the help of strategic planning which made by
local government to ensures sustainability (Aldebert, Dang and Longhi, 2011).
Government
They proper implement their plans and strategies and conduct their work accordingly so
that the travelling and tourism industry will not be affect. The government and related bodies
provide various infrastructure facilities in the field of private sector and also develop those
infrastructures so that large number of tourists will come and accessed those places. The
government bodies sponsored down certain projects which are not profitable for the private
sector but it has strategic importance for the tourist and country point of view. They are
responsible to come up with law and regulation that can help them in increasing foreign revenue.
They are also responsible to create positive and protective environment for tourist so that they
can feel safe in the country. The main function of these bodies are development of infrastructure
which can provide their guest with safe and effective services. It also provides employment
opportunity to the public and also promote healthy lifestyle.
International agencies
International government prepare down certain policies and procedures and implement it
accordingly and these policies are working differently in each country and will be more
favourable for this sector. These agencies also work with aim of enhancement tourism business
all around the world. UNWTO is one of the greatest international agency. It collect the necessary
data and information about the recent trends and growth in tourism. With the help of this it can
help to come up with innovative idea that can increase the tourism of nation. IATA that is
international Air Transport Association is also working in the field of tourism the main aim of
this agency is to develop safe, regulate economic transport of air. There are many other agency
that work in same direction.
2.2 Local and national policy influences
Travel and tourism sector is an important aspect relating to the country's growth and economic
development. It creating down various benefits related to foreign exchange and traded funds,
environmental awareness and employment funds. There are lot of countries who does not
knowing the importance of travel and tourism sector so they are not doing anything or not
considering down any step regarding its development and growth. They are exploit down the
tourism industry by giving less priority to them and all these factors impacted negatively on

tourism factors and also reducing its value (Evans, Stonehouse and Campbell, 2012). Moreover,
the policies in context to national and local are deteriorating due to insufficient amount of
investment. The another reason is that the policies which are implementing by the government is
not fruitful and it always brings down new challenges for the travel and tourist industry and it
also affected its local community. The economic policy which been preparing and implementing
by government will not include the local community so that such people become dependent and
they are depending on natural resources in their surroundings. The economic policy will only be
effective when it promotes the tourism industry and also considering the people who belongs to
the local community. The aim of government is to bring down economic policy and
implementing in such a manner so that effective results will be come out in field of travel and
tourism sector. Economic policy directly or indirectly affect tourism of UK. For instance
according to one of the policy government allow opening resort in a beach town than it will
attract people toward it and it will automatically increase the inflows of tourist. Indirectly also
this policy have its effect on the tourism, for e.g. if the government decrease the exchange rate of
currency than conversion will become much cheaper result in tour in UK will become much
cheaper than other countries. Thus, national and local policy play major role in enhancing the
business and have major effect tourism.
2.3 Implications of political changes
Political environment would be considered as an important factor in field related to travel and
tourism industry. The certain factors such as political instability and political changes under
political factors would also raise down the concern for the tourists and the other factors such war
and bureaucracy related factors also increasing the risk factors among visitors. In, current
situation, increase in terrorism and riots also affect the visitors and creating a negative image on
the minds of travellers. The tourist only travel by considering out the political and related factors
related to the country and on that basis they take decision and making tourism plan (Gössling,
Hall, Peeters and Scott, 2010). There is high political stability in UK which attracts down more
and more visitors towards it. UK is one of those destinations where policy makers preparing
down the policy by laying down the conditions and factors which arise and made certain changes
time to time . Political change have major impact on the tourism. Fundamental change in the
political create the fear in the mind of visitors and they do not feel safe in the country as a result
they try to avoid country with political instability. The nation has several beautiful places that

attract the tourist by political changes can increased or decrease this attraction. For instance if the
UK implement such political changes that can reduce the legal boundaries and provide more
security than people will be attracted more towards it. But in case the government implement
tougher visa policies into practices than it will automatically decrease the number of visitors and
will negatively impact the organisation and its overall business.
Political changes have major impact on tourism sector people prefer the place that are free of any
turmoil activities undergoing political turmoil and many other activity have major impact on the
working of firm.
Thailand is another beautiful country that is emerging as one of the major tourist country. In
recent time country has seen major increase in the inflow of tourist. It has played major role in
the stability of the economy of nation. Political changes play major role in the growth of tourism.
Thailand in one of those country that doesn't require passport in order to enter the country. These
phenomena automatically increase its popularity in addition to this the beautiful country is had
majestic beauty that help them in attracting the tourist. Even though the country doesn't require
passport but the instability in the political still reduce the no. of visitors in the nation. For
instance in recent time the Thai anti government protest have shut down the few parts of
Bangkok as a result many Chinese visitors cancel their trip at the time of lunar year.
TASK-3
3.1 Factors affecting tourism Demand
The certain factors are there which affecting the tourism demand and they are as follows:
Under tourist industry the certain factors that are creating affecting the demand in the tourist
industry by giving the impact on the peoples jobs negatively. The population growth, taxation
matters, environmental factors are considered to be the factors that affecting the tourism industry
and reducing its attractiveness. The recession, threats in way of flood, terrorism, riots,
earthquakes. Demographic condition changes such as preference, taste, fashion individuals ,gap
generation, migration, increasing In levels of education and so on. The technological and related
factors are also affected its transportation, communication and also brings the changes under the
behaviours of individuals regarding its quality, taste, quantity and so on. The holiday packages
which bring by tour operators is according to the people's economic conditions and their demand
so that can they can begin their journey easily (Mair and Jago, 2010). The behaviour related

factors such as behaviour regarding the individual, their reaction, their opinion are also affecting
the demand related factors. The individual behaviour is uncertain and market conditions which
create is unpredictable. The tourism industry deciding the packages and bring down tye packages
according to the demand and supply factors which create in the market because the customers are
important person for them these are the only person who make sown the travelling procedure
successful. The tourism contribution nearby about 6 percent to the Gross Domestic Production.
The inefficient interest and investment rates, inadequate infrastructure facilities, inappropriate
and ineffective commodification system, poor transportation are some reasons which make the
tourism weak.
The people taste, fashion and preferences are not same it is not so that one people like the
same thing the other people like the same and wishes the same. The choices of the individuals is
based on the demographic conditions which create in the market and every time it is not bee
possible for the tourism and travel industry to bring down the same packages and provide it at
the same cost. Whatever, the travel and tourism industry decide it based on the conditions which
arise in the market and tourist and travel industry bring every time new for its customers. Price
orientation is a strategy under which tour and travel industry selling down their trips at
affordable prices so that customers will be attracting and that also helps them in increasing its
value and raising its turnover (Papatheodorou, Rosselló and Xiao, 2010). The tours and travel
industry also arranging various trip such as field trips and holiday trips for families in order to
meet down his need and expectations and that also enhancing their quality. The standardisation
product they provide gives down a positive impact on consumers minds and also helps in
increasing its turnover. The motive behind promotional activity is not only to sell down the
packages to its customers along with it reliable product should have been provided to them along
with correct placement so that every time customers get maximum satisfaction and also helps in
increasing its durability and marketability. The tours and travel industry not only meet down the
demand of the visitors only but also providing supply to them which ca be held a proper place
and proper time and also raising its value.
3.2 Supply has changed at TUI group
The tourist industry main aim is to create a balance between demand and supply factors so
that tourist industry can conduct its operations smoothly. The government and stakeholders put
an effort in order to create a balance among demand and supply factors (Perch-Nielsen, Sesartic

and Stucki, 2010). There are many factors which been changes in order to meet the demand
under tourism sector regarding its product and services and they are quality, quantity, service,
accommodation and so on. The TUI groups using down the certain approaches to meet out the
demand of their customers and they are as follows:
 Accommodation as per consumer needs: The travel and tourist industry provide various
facilities to their customers in terms of accommodation, reasonable fair charges and so
on. The main purpose of TUI group is to meet the demand of their customers by
providing various satisfactions to them.
 Efficient tour operators:The cited business conducting down various training facility and
availed such facilities to their individuals so they can build their skills and also handle
down the customer issues (Scott, Peeters and Gössling, 2010). Through this process the
tour and travel industry meet needs of the individuals by attracting its potential
consumers.
 Quality product ad services:TUI group meet down the satisfaction of the customers by
delivering right quality of products and services to them and ensures that product will be
according to the users needs and desire so that they get maximum satisfaction every time.
 Technological advancement:The TUI group using various technology in form of internet
ad Wi-Fi to meet its customers want and also the communication will make easier
between intermediaries and operators and that helps them in providing efficient services
to its users.
 Product differentiation:The TUI provide different types of product and also delivering
various services to its customers so that with that help it attracts down more and more
customers towards us and by that way it maximises there customers wants.
TASK-4
4.1 Positive and negative factors under tourism
The TUI group has various destinations across the world. It also conducts down various
research related to that field. The tourism industry considered to be one of the rapidly growing
industry as compared to other industries. There are also having several limitations and benefits
regarding such field. The certain factors related to social, environmental ad economic factors
affect the tourism ad travel industry either positively or negatively (Spenceley, 2012). The

positive factors including increasing employment, increasing national income, increase in
employment opportunities, increase in taxes, increase in taxation ,increase in export related
factors,economic development and inflow of currency. The negative factors that impact on travel
and tourism industry are inflation. High cost of living, deflation, property taxes and more
dependency of economy under tourism industry.
The positive factors which made a impact on environment are natural resources, planning and
control, beautification and also helps in maintaining the quality related to environment (Wu and
Shi, 2011). Negative factors impact negatively on environment such as environmental
degradation, destruction of flaura and fauna and also effect on natural resources and its beauty.
Economic factors impact:
 The TUI group performing their operations in several countries by considering out foreig
exchange and currency rates.
 The TUI group also exchanging their money with host nations in order to increse its
economic growth.
 The TUI also gives major contribution so that it helps in increasing the countries GDP ad
national income.
Tui group conducting down various programs worldwide so by that they increasing its profit and
the tax which they are giving that helps down country in increasing its growth ad development
(Carter, 2007).
Environmental factors impact:
They also made an impact on environment either favourably or adversely.
 It also maker an important contribution in field related to the environmental areas and
also compose down the natural areas and culture.
 They also increasing the awareness among public .
 It also made an adverse impact on environment by creating pollution problems and
destroying the natural resources.
Social factors impact:
It also affecting the tour and travel sector either positively or negatively and also create an
impact on TUI group and they are as follows:
The TUI group conducting various programs all over the country so that different people
participate it and understand the different culture (Falk, 2011).

 It also preserves the various culture so that different culture will enhance the awareness
and will tend to be helpful for the country.
 Sometimes, the travel behaviour also made an adverse impact on social factors and it also
affects the local community as well. Such as drugs, liquor,population explosion, children
trafficking and so on.
4.2 Strategies can be used to minimise the impact under tour and travel sector
There are various strategies that been formed to minimise the negative impacts under
social ,environmental and economical and they are as follows:
Keep focusing on the services that organisation provides:The TUI group takes down the possible
measures to reduce down the impacts which affected the TUI group negatively. To deal with
such stanzas it improves his quality in terms of product ad services by providing maximum
satisfaction to their users. Moreover, they provide essential services to its customers regarding
different products by attracting them every time (Huang, 2009). The strategy which form by TUI
group will be helpful for its users who specially belongs to the Spain and Thailand.
 Implementing rules, regulations and laws:The TUI group setting down various rules,
regulations and laws and implementing it into their business so the negative factor will be
remove out and positive factors will be taken.
It also aware the people to conduct their activity in a right manner so that operations will be
conducting easily and pollution will be avoided.
 Diversification:The cited business remove out such social factors which negatively
impact on them and preparing various plans and strategies so that work can be conduct in
aj effective manner and also raise their operations across the various nations.
Eco Tourism:The TUI group reducing down the negative factors which made an adverse impact
on tourism industry and keep themselves focusing towards the activities related to the Eco
Tourism (Ndubisi, 2006). So, with the help of that concept they promote tourism industry and
also preserve down the flaura and fauna, protect wildlife, preserving natural heritage.
Furthermore, it also solves the disputes and related factors which can takes place between
various authorities, groups and different departments.

CONCLUSION
From, the above report it can conclude that the TUI plays down a vital role in the field related
to the tour and travelling sector and also generating various opportunities in the field related to
growth and employment. They also performing different functions by considering out different
factors such as economical, environmental and social factors. To meet down the needs of their
customers it essentially produces and prepare the packages accordingly and made supply to them
which essentially can be done at right time and right place. Tours and travelling industry provide
various facilities to their customers so they can enjoy with great comfort and leisure.

REFERENCES
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development on the Sunshine Coast, Australia. Tourism management. 28(2), 409-422.
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Falk, J., 2011. Visitors’ learning for environmental sustainability: Testing short-and long-term
impacts of wildlife tourism experiences using structural equation modeling. Tourism
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Gössling, S., Hall, C.M., Peeters, P. and Scott, D., 2010. The future of tourism: Can tourism
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Pesonen, J., 2013. Information and communications technology and market segmentation in
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Scott, D., Peeters, P. and Gössling, S., 2010. Can tourism deliver its “aspirational” greenhouse
gas emission reduction targets?. Journal of Sustainable Tourism. 18(3). pp.393-408.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
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Wu, P. and Shi, P., 2011. An estimation of energy consumption and CO2 emissions in tourism
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