Tourism Industry Structure and Services

This assignment delves into the complex structure of the travel and tourism (T&T) industry. It explores various segments like tour operators, transportation providers, accommodation facilities, and entertainment options. The text analyzes how these components interact and contribute to a holistic travel experience. Specific examples of companies such as TUI group are used to illustrate their roles in shaping the T&T landscape.

Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Enclosed in Poster..................................................................................................................1
1.2 Enclosed in Poster..................................................................................................................2
TASK 2............................................................................................................................................3
Enclosed in PPT...........................................................................................................................3
2.3 Implication of political change on T&T sector....................................................................11
TASK 3..........................................................................................................................................11
3.1 Factors affecting tourism demand.......................................................................................11
3.2 Methods to increase supply in order to meet demand.........................................................13
TASK 4..........................................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Travelling is a phenomenon which leaves the visitor with everlasting and breathless
experience due to the fun, leisure, adventurous and other activities undertaken in the entire tour.
Travel and tourism (T&T) is the quickest growing sector which has made significant
contribution in development and growth of the nation (Mowforth and Munt, 2015). The aim of
the current research is to create understanding of Travel and Tourism sector along with the
government impact on the operations of tourism sector. For the current research, TUI group has
been selected and its structure and role has been explained in the report. Furthermore, the effects
of demand and supply regarding the services of the concerned organization have also been
clearly described.

TASK 1
1.1 Enclosed in Poster
In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to country
for earn money then business travel has been
integral part of tourism industry(Cave and Brown
2012).
Early tourism started with Nomads who travelled around the world in search of food and
shelter. Main intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu and
Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage. Early tourism
started with Nomads who travelled around the world in search of food and shelter. Main intension of this traveller is to gathered food and traded
around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the era when the Europeans visited
pyramids and thus developed the tourism for pilgrimage.
Key historical developments in T&T sector
Travelling can be defined as a process in which the visitors are engaged in undertaking numerous activities starting from leisure, fun,
entertainment, adventure, and site seeing and many more. People travel to get insight about cultural and lifestyle of different regions. It also aids
in gaining relative knowledge regarding social and political environment of diverse regions (Horner and Swarbrooke, 2016). The development of
the concerned sector has been enumerated underneath:
Tourism in its early forms
At the time of circa 3000 BC, people used to travel
mainly for two reasons. These encompass of trade and
pilgrim tours. Before that, the villagers used to move from
one place to another in quest for food. Thereafter, with the
rapid industrialization process people became more and more
engaged in trading (Hall and Page, 2014). This caused them
to move to diverse regions to crack deals. However, masses
at that time were more devoted and religious which give rise
to the pilgrim tours.Tourism in 20th century
With the advent and growth of aviation industry, T&T sector became the fastest growing industry in comparison to communication, technology, retail and manufacturing.
Citizens were more indulge in travelling to distinct regions to gain knowledge and understanding. Leisure and entertainment were the two main factors which instigate the passengers
to travel (Navickas and Malakauskaite, 2015).
Major development in T&T sector
Guides: In the early period, the main role of guide was to provide the travellers with guidebook so as to make them understand about history of the region.
Further, they were concerned with providing necessary information to travellers and charge some bucks.
Transport: Transportation sector has experienced a drastic change as in the middle ages animals were used by people to travel. In the early 19th and late
20th century has witnessed the launch of trains and aeroplanes which caused easy movement to the diverse places.
Introduction of Jet airways was witnessed in 1960's (Ghimire, 2013).
In the year 1994, channel tunnel was launched.
A380 Airbus super plane got started in 2005 (Sharpley and Telfer, 2014).
Spas: Entertainment, renaissance, aristocracy are some of the main influencer which caused the rise of spas in UK. It became an imperative social venue
for the passengers.
Resorts: Last but not the least, a rise in the recreational activities brought the development of resorts. The climatic condition witnessed in the southern
Europe, introduction of Ships and accommodation at the cheaper rates has caused the growth and development of resorts.
No. of Passengers 20141950International tourist arrivals880.1 million25.3 millionInternational tourist receipts852 billion2.1 billion
T&T in 19th century
With the passage of time, tourism activities got
diversified in every region. Tour operators came into
force and provided the passengers with different
experience. Some of the common operators in UK at the
particular time period included Henry Lunn and Thomas
Cook. Moreover, steam trains were more prominent at
that time which caused the travellers to travel faster
from one region to another.

No. of activities 1950 Mid-17th
century
19th century 21st
century
Spas
Resorts
Trains
Aiways

1.2 Enclosed in Poster
In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to country for earn money then business travel has been integral part of
tourism industry(Cave and Brown 2012).
Early tourism
started with Nomads who travelled around the world in search of food and shelter. Main intension of this traveller is to gathered food and traded
around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the era when the Europeans visited
pyramids and thus developed the tourism for pilgrimage. Early tourism started with Nomads who travelled around the world in search of food
and shelter. Main intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu
and Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage.
Structure of T&T sector
Food services:
Restaurants, hotels, cafe and other fast food chain centres are the major service providers. They offer lunch, breakfast and dinner meals to the visitors
according to their taste and preferences. Several edifices has been opened in UK after reviewing the taste of diverse regions such as Chinese people are
provided with the respective food, Indian, continental and many more (Pike, 2015).
T&T is a vast sector in which there are number of people or corporations engaged in rendering services. Tour operators such as TUI group
offer packages to the passengers so that they can travel safely (Telfer and Sharpley, 2015). These organizations are concerned with booking
tickets, facilitating accommodation, booking cabs and other local transports, serving food and site seeing adroitness, etc. Some of the services
are offered by private or voluntary groups as discussed above. Nonetheless public companies are also engaged in rendering services such as
transportation, visa, currency exchange, etc. Therefore, the entire sector operates in collision with both public and private organization. ATour operators:
Some of the tour operators such as TUI group and Thomas Cook are the main
providers of packages in T&T industry. They are involved in rendering best
tour experience at the cheap rates. The needs and requirements of the
travellers is analysed and based on it, the services are devised by them (Ma
and Hassink, 2014). Apart from it, the policies and practices introduced by
the governments is also reviewed before contriving any strategy.
Transportation:
The travel service operator such as TUI group is involved in
booking tickets. They make reservations in advance by determining
the demand of the customers. This in turn aids the customers to
travel from one location to another after selecting an appropriate
mode. This in turn assists the customers to travel as per their
preferences.
Accommodation:
Travellers require a place to get relaxed. For this purpose, resorts are developed in diverse
corners of the world. Furthermore, room accommodation services have also been rendered to
the passengers for a peaceful stay at the lounge. These are some of the voluntary enterprises
which have strong contacts and link with the TUI group. They render room services at the
cheap prices and provide quality services. All these aid in facilitating the experience of the
customers.
Local transport:
The passengers require transport to move freely
from one region to another. Cabs and auto are
some of the voluntary service providers that aid
the travellers in moving from one location to
another (Ridderstaat and et.al., 2014).
Entertainment:
People crave for adventurous, fun, leisure activities when they travel to different region. The guides and other small vendors aid the visitors
experiences in acknowledging them about the historic stories and belief of the region.

Entertainment
Visa and
currency
Local
transport
Accommodati
on
Transportation
Restaurants
Travel and
Tourism sector

TASK 2
Enclosed in PPT

Notes: The major role of government in promoting Chinese tourism
 The government of the UK has introduced a new system wherein special consideration is
being provided to the Chinese citizens.
 They are provided with the visit visa of 2 years which is identically four times then the
usual visit visa provided to any other tourist.
 Planning and organizing of activities in the best interest of Chinese people is undertaken.
 The government also aims to enhance the hospitality services by rendering them with
special Chinese meals, guide books in their native language and many more.

Notes: The major function performed by the government sponsored body has been identified and
enlisted below:
 Information regarding the contribution of Chinese people has been catered by these
bodies.
 However, it has been assessed that people of China has contributed £500 million to the
UK's economy in the last year.
 Significant assistance was provided to the government in the development of T&T sector
by creating parks and other recreational activities.

Notes: Some of the international bodies and its functions has been enumerated beneath:
 UNWTO or United Nations world tourism organization has made its significant efforts in
creating and promoting sustainable tourism in the current sector. It has managed to
improve the relationship between two nations that is China and UK. Chinese facilities
and other activities are rendered as well.
 International Civil aviation is concerned with setting regulations and other standards in
regards to create safety and security of people. These international agencies has also
made efforts to protect the environment and the other historic places of the UK in order to
attract tourist from diverse nations.

Notes: Influence of local policies on the success of T&T sector has been enumerated below:
The leaders of London and Partners has made a significant contribution in the growth and
development of travel and tourism activities. It has made significant contribution by rendering
the Chinese people with flourishing experience. At local level the policies were formulated in
regards to provide them with several hospitality services. These includes Feng Shui meal in
breakfast, guide books translated in Chinese, staff has been appointed which knows how to speak
the native language of China, acceptance of Chinese currency at different corners of the world.
All these activities and plans are undertaken in regards to gain wider share of tourist from host
nation. Further, it assist in development and growth of the economy. No matter, a high amount of
success and profit is made by the entire travel and tourism sector.

Notes: The influence of the national level policies on the success of the Travel and tourism has
been enumerated underneath:
The national or economic policies of the UK are devised in such a manner which aids the
growth and development of the under developed regions. The amount or money generated by the
government through these activities help in development of another region. Moreover, this can
be assessed by the amount of activities undertaken by several departments to attract tourism.
Olympics and other national level games are conducted so as to gain the attention of the
customers. Moreover, in order to attract the tourist from China, efforts has been laid by the
national government to promote small and medium size enterprise. They produce and goods and
other products which are more preferable by those people. These are some of the most prominent
activities undertaken at national level for the purpose of sustainable growth and development.

2.3 Implication of political change on T&T sector
Travel and Tourism Magazine
23rd January 2017
Tourist are more likely to prefer those regions which are free from all sorts of political.
Travelling is preferred when people want to get rid of day-to-day tensions of life. They visit
different regions in regard to gain peace. Therefore, political changes of a country play a
significant role in attracting large number of tourist. When these parties remain same over a
period of time then the economic or political conditions remain stable. However, with the
frequent changes in regime may cause the visitors disinterested in travelling to the respective
location. In addition to the above, high amount of terrorist attacks and wars may cause a
negative impact on the minds of the tourist. All these is more likely to affect the operations of
the Travel and Tourism sector. Travellers does not want to risk there life by going in the nation
which has frequent wars and other attacks. As it can be witnessed from the last terrorist
onslaught which has significantly affected the Travel and tourism activities. Tourist does not

want to take risk and cause their life into danger. Therefore, people prefer less to travel to Paris
now-a-days. However, to overcome these issues policies has been designed by the national and
local level government so as to attract wide number of tourist from China. This in turn will aid
in removing the negative publicity that was made due to the last terrorist attack in Paris. In
addition to this, after reviewing the above factors, the policy makers will be more cautious in
devising the plans and practices of the country. Moreover, UK being a political stable country
aids in brining wide range of tourist. However, plans and strategies are devised in such a
manner which will render best experience to customers thereby meeting their security and
safety concern.
TASK 3
3.1 Factors affecting tourism demand
Demand can be defined as the component through which the services of the company can
be raised. It is the actual requirement of the services by the citizens. Travel and tourism demand
is affected or influenced by large number of factors. There are basically four types of demand
which includes actual or effective, postponed or deferred, suppressed and potential demand
(Penrose, 2011). All the four types depicts about the propensity of the traveller to get engage in
tour activities. The demand of TUI group services can be analysed from the following activities. Economical: There is a cause and effect relationship between the price and demand of
the products or services. The packages that has been offered by the concerned tour
operator aids in catering the attention of more and more customers. If the TUI group
offers these services or packages at an economic price then the demand will increase.
However, some other economic factors that is likely to affect the demand of the services
includes the packages offered by its competitors such as Thomas Cook (Roth, 2015). Individual: Travelling activity is also influenced by the amount of characteristics and
personal factors of the buyer. People are more likely to travel when they are provided
with the appropriate paid leaves by the companies. Awareness and education are also
another essential component through which the demand for the services of the concerned
company increases. Generally, people under the younger age groups are fond of
adventures. Further, more amount of knowledge about the diverse place instigate them to
visit attractive destination (Global Talent Trends and Issues for the Travel and Tourism
Sector. 2015). However, the older people prefer to travel to religious and other spiritual

place. Similarly, investment, employment, income, family background are some of the
basic factors which also influences the demand of TUI group. Destination: Demand of the concerned organization is also influenced by promotional
campaigns made by the tour operators. If the locations in UK and other regions has
gained positive publicity then the demand for the packages of the particular location will
be increased. Safety, security, credibility, quality, technology and development, CRS are
some of the other determinants of tourism demand (Peng and et.al., 2015). Geographic: Seasonality is one of the most imperative determinant of demand. In the off
seasons people do not prefer to travel much. The changes in atmosphere, weather are
some of the most important factors which increases the demand of the services.
Additionally, families prefer to visit different locations at times of Christmas or winter
vacations so that their child can also assist them. However, people travel more when the
climatic conductions is moderate.
 Social and cultural: The social and cultural environment of the respective region also
aids in attracting larger tourist which in turns intensify the operations of the TUI group.
Some people are fond of historic places (Morley, Rosselló and Santana-Gallego, 2014).
Therefore, the cultural and ancient building present in the region is more likely to
intensify the demand of the organization.
3.2 Methods to increase supply in order to meet demand
Demand and supply are two interdependent aspects. In order to meet the above demand
the TUI group has made significant efforts. Devising certain strategies and plans helps the
organization in achieving its desired objectives thereby supplementing its efforts to the
sustainable growth and development of the region (Gartner, 2013). The same has been discussed
beneath:
 It has been assessed that with the last recession that took place in the UK, people are
demanding the tourism packages at cheaper rates. Therefore, the company needs to
develop or create cheaper packages which will ensure to meet the current requirements of
the customers (Kim and et.al., 2014).
 Apart from this, at times of peak season the hotels and resorts are running full. Therefore,
significant effort has been made by the government and travel and tourism agency to

build new rooms. This will ensure extra accommodation facilities present at the time of
the peak seasons.
 Further, with the growing demand of the travel and tourism activities, the visitors require
relevant information regarding the places and other factors. Therefore, TUI group aims to
clear all the doubts of the passengers regarding their safety and security. Moreover,
informations regarding the currency exchange system and visa availability is also
rendered (Ritchie and et.al., 2014).
 The demand for the tourism activities is more likely to be affected by the seasonality
factor has it has been discussed above. Therefore, TUI group needs to make changes
price of the services or package offered to the customers so as to meet the requirement of
the off season. Excessive profit can be made in peak season such as Christmas and
summer vacations. Contrary, the prices can be reduced in off season so as to attract the
low level customers (Chen and Chen, 2014).
 The respective firm has made the significant use of technology so as to meet the current
requirement of the company. Online booking system and reservation has been introduced
by the TUI group so as to book the packages and tickets by using the websites and other
mobile application launched by the company (Mason, 2015). This will enable the
customer to pre-book the tickets and services even from their home country.
From the above analysis it can be assessed that the TUI group has been making significant
efforts to meet the requirement of the customers.
TASK 4
4.1 Impacts of Tourism
The South - East Asian nation of Thailand is one of the developing nations which enjoy
the benefits of a huge tourism industry. The trends shown by this nation are very bright, and the
same is accompanied by a highly optimistic government. In the year 2010,the number of tourists
visiting the nation crossed a figure of 15 million. Similarly, the tourism industry of Greece is also
highly developed, and formulates to be one of the pillars of the nation. It has been reflecting
constant growth. However, it is also accompanied by certain demerits in all the fields of
economy, environment, society and so on.
Economic Impact

The business activities of TUI group, particularly in Thailand, has created jobs for many
local people. These opportunities of employment are either generated directly from the tourism
industry, or indirectly from the related sectors. Similarly, in Greece varied business opportunities
are created for both big and small scale entrepreneurs (Chen and Chen, 2014). Apart from this
both the economies have largely benefited from the immense foreign exchange which is received
by the tourists from all over the world.
In order to develop tourism the government of both the nations have incurred huge costs
for establishing appropriate infrastructure in the nation. Moreover, the job and business
opportunities created are completely seasonal in nature, and hence makes the community
susceptible for a larger portion of the year. The spending made by tourists on different activities
of TUI group do not benefit the local population and is taken out of the nation.
Environmental Impact
In order to promote tourism the TUI group has assured not harming the environment, and
undertaking the activities which promote ecotourism. This in turn assists in conservation of trees,
wildlife and other natural resources. In addition, the issues of over fishing and deforestation has
also been reduced in Thailand, due to increased employment opportunities. Similarly, in Greece
also the TUI Group has initiated various awareness programmes for their own employees to
reduce the environmental impact.
However, not every tourist is aware about conservation, and hence is likely to pose a
threat on the natural as well as cultural resources of the region (Gartner, 2013). In addition, an
increased number of tourists in the region and the activities of TUI group are likely to impact the
water supply, beaches, heritage sites and so on due to overuse. Moreover, the sport of scuba
diving and other related water sports organized by TUI group may have a negative impact on the
coral reefs and the vegetation inside the sea. On the other hand, the environment of Greece has
been impacted due to increasing level of pollution, which is directly a consequence of increasing
number of tourists in the nation.
Social Impact
The developmental activities undertaken by the government in the nation shall also
benefit the local community. Moreover, It preserves culture and tradition of the region, and

promote the related art at an international level. This exchange of information and access further
enables exchange of cultural understanding (Ghimire, 2013). In the case of Greece the exchange
and exposure of culture at different levels has allowed the guests to exploit the same and act in a
manner which is detrimental to the local communities. This leads to erosion of the local value
and principles. One of the primary impact which the TUI group has made on the local people is
by displacing them from their lands and developing huge infrastructures in the form of hotel or
resorts.
4.2 Strategies to minimize the negative impacts
The activities of TUI group has been evidenced to make large negative impacts on the
factors of economy, society, and environment in Thailand and Greece. Moreover, these negative
impacts have subdued the positive impacts which they have made in the nation. Hence, some of
the strategies which may help to minimize their negative impacts on the different elements are:
Economic
The TUI group shall develop a strategy to employ people from the local communities.
This in turn shall assure that increase in tourist activities has a direct impact on the earnings of
the local people (Hall and Page, 2014). Moreover, it shall also be assured that wages of these
employees is received with extra benefits during the season time. More and more local
businesses shall be promoted and assisted.
Social
In respect to the detrimental effects caused to the life of the local community, the
management of TUI group shall specifically train their employees in respect of the same.
Moreover, the visitors shall also be provided guidance to not engage in such activities (Horner
and Swarbrooke, 2016). The management of the TUI group can also plan for activities which in
essence the local culture of Thailand as well as Greece, and in no way hampers the personal or
cultural life of the local people.
Environment
The representatives of the TUI group shall assure that none of their activities hamper the
natural resources in the surrounding region. They shall communicate a strict warning to all the

employees, as well as the visitors in respect to usage or exploitation of natural resources. Every
effort shall be made by them to reduce their carbon footprint and become environmental friendly.
CONCLUSION
The travel and tourism sector has of the world has developed to a large extent, and has
been accompanied by developments in all the related sectors. It is comprised of elements of tour
operators, food service providers and other elements which enable the visitors to travel around
the world. An extremely instrumental role is played by the government and other related
agencies in financing the development and assuring safety of the tourists. In respect to the same
various local and national policies are issued by the government. However, this sector along with
the TUI group has impacted Thailand at social, environmental and economic levels.

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