Tourism Impacts and TUI Group Strategies

This assignment examines the multifaceted impacts of tourism on the TUI Group, considering both positive and negative economic, environmental, and social consequences. Students are tasked with evaluating these impacts and proposing strategies that TUI Group can implement to mitigate negative effects while maximizing the positive contributions of tourism.

The Travel
and
Tourism Sector
)
Table of Contents
TASK 1: The History and Structure of the Travel and Tourism Sector……………………...3
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1.1 Historical Developments in Travel and Tourism Sector....................................................3
TASK 2: Influence of local and national governments and international agencies on the
travel and tourism sector region UK and China, ....................................................................4
2.1 Provide, power point presentation, regarding the perform of government, government
sponsored bodies and international agencies in travel and tourism..........................................4
2.2 Local and National Economic Policies Influence the success of Travel of Tourism
Industry......................................................................................................................................4
TASK 3. Understand the effects of demand and supply on the travel and tourism sector…...10
3.1. Explain factors affecting tourism demand.……………………………………………....10
3.2 How Supply Has Changed at TUI Group to meet the Effects of Demand……………….11
TASK 4: Understand the impacts of tourism…………………………………………….......12
4.1 Evaluate the most positive and negative economic, environmental and social impacts of
Tourism……………………………………………………………………………………….12
4.2 Give an explanation for strategies that can be used to minimise the negative impacts while
maximizing the positive impacts TUI Group businesses…………………………………….12
References…………………………………………………………………………………….13
Taskk 1: “Structure & History of the Travel and Tourism Sector,
1.1 “Explain key historical developments in the travel and tourism industry,
1.2 “Explain the structure of the travel and tourism industry,
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1.2 Structure of travel and tourism sector
The structure of travel and tourism industry is quite dynamic and complex as it is made of
wide range of inter related organisations that include both commercial and non – commercial
ones. The structure of this sector consists of six essential components namely tourist attractions,
transport, lodging and catering, tour operators, travel agents and information & guiding.
 Tourist Attractions : These are the places visited by tourist which can be either natural
or man – made. For example – Blackpool beach, Alton towers, London eye etc.
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 Transport : Proper mode of transportation is required to reach the destinations. Major
transport modes in UK includes airways, railways that have been modernised extensively
and sea ferries which are becoming popular for travelling to France and Ireland.
 Tour operators : They provide holiday packages by negotiating into contract with
providers of transport and accommodation.
 Lodging and catering : It is important to provide proper accommodation facilities to
visitors, for this various hotels and guest houses are available.
 Travel agent : They act as a link between public and the tour operators. The amjor travel
agents in UK are Going Places, Lunn Poly and Thomson.
 Information and guiding : Tourist boards provide information and guidance related to
the place visited by prospective tourists.
Task 2: “The influence of local and national governments and
international agencies on the travel and tourism sector U.K and
China,
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2.3 Article for publication in travel and tourism magazine
Introduction
Political changes greatly influences the business of travel and tourism in a particular region. If
the there is political unstability in a country, then, it will create negative image in the minds of
people regarding that place and they will feel such nation is unsafe for tourists.
Main Body
Fair international trade agreements positively affects the business of TUI and helps in
enhancing its revenues. Political stability, culture and environment of a region are mostly
dependent on the political changes and background. For instance, there are no stringent
regulations regarding visas in London so many people are attracted to visit this destination.
United Kingdom : UK is a beautiful country which attracts tourist from across the globe like
Southern England and London are favourite tourist destinations. The political parties of the
country has invested £ 10 million for promotion of Northern Tourism. Moreover, government is
taking steps to organise next Olympics in London that will prove to be a boon for the nation as
many people would be attracted and there would be increase in overall businesses. More people
visited London due to launch of a new visa scheme wherein they can travel 4 times in usual 6
months.
China : The business of travel and tourism sector in the country has increased upto 3.2% due to
political contribution as they promoted culture destination across the world which atttracted
number of tourists. China National Tourism Administration is the main body responsible for
regulating this sector. Goverment has taken various measures to solve the problems of
transportation facilities and conflicts which were hampering tourists to visit in this country.
Conclusion
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In a nutshell, it can be inferred that political stability greatly contributes in the development of
travel and tourism sector which are beneficial for the organisations. The efforts of political
parties and changes in them extensively influence this sector.
TASK 3
3.1 Explain factors affecting tourism demand.
There are various factors that have a great impact on the demand of tourism some of them are
economic factors which are ranging with the exchange rate to the job, politics, growth in size of
European Union, environment and taxation, crisis and threat which include earthquake, epidemics
and terrorism, change in the demographic which includes shifting of age structure, effects of
migration and the rise in the educational level, change in the technology like transportation,
communication and information sharing techniques, change in the attitude of the consumer, product
standardization, growth in the information channels and pricing strategies (Greaves, et. al., 2010).
It can be seen that international tourism is growing at the growing rate in the last decades and new
destinations are emerging in the tourism sector. Hence, travel and tourism sector is facing issues in
managing the arrivals and keeping the position. There are certain reasons due to which tourism
demand is being getting affected these factors are:
Price Factors: TUI Group is facing issues with the competitive pricing. It could be evaluated that
from the last decade competition in the tourism sector has increased at the increasing rates which is
directly affecting the price of the tourism companies. Fluctuation in the pricings could be seen due to
which it is becoming hard for TUI Group to manage the price and provide the appropriate price to the
target customers which is resulting in the reduction in the number of customers of TUI Group.
It could also be analyzed that transportation cost is also getting increased with the increase in the
price of the fuel and fluctuation in the economic aspects of the country. There are transportation
services provided by TUI Group to its customers which are getting hiked with the change in time and
are affecting the price of the travelling packages that are being affected by the company to its target
customers (ENSIGHTEN, 2015).
Non –Price Factors: Income is one of the factors that directly affect the demand of tourism which
affects the company. Income of the customer has a great impact on the demand of tourism.
There are various people available in the market who do not prefer to travel because the packages
provided by TUI Group are expensive and do not suits the pocket of the customer which directly
impacts the demand.
Natural disasters also have a great impact on the demand of the tourism. People prefer less to travel
to the places which remain at the risk positions due to the natural disasters. This directly affects the
tourism of that country as well as the companies working in the tourism sector of that company.
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3.2 Explain how supply has changed at TUI Group to meet the effects of demand.
For every business it is necessary to create balance between the demand and supply of the
products and services that are being offered so as to ensure the smooth flow of the business as
well as the industry. Supply in the tourism industry is being changing so that the smooth
functioning could be managed for which stakeholders of TUI Groups also responded positively
because demand was increasing due to the change in the supply. There are various factors in
which modifications are done so as to meet the demand for the product and services offered in
tourism. Some of the elements are provision for accommodation was kept, quality of the services
was increased, seasonality was managed, and technology was also deployed in travel and tourism
sector.
Accommodation services were managed by TUI Group so that increase in demand could get
managed for which higher number of accommodation were developed so that more number of
people could get the accommodation services at t peak time. To maintain the quality of the
services TUI Group increased its staff members so that they could provide better and effective
services to the target customers, changes were brought in the information system due so that
utmost services could be availed to the service users of TUI Groups and their demands could be
met by the company.
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TASK 4
4.1 Evaluate the main positive and negative economic, environmental and social
impacts of tourism with reference to TUI Group businesses.
Tourism industry is one of the fastest growing industries in the world with which there are various
positive aspects attached and several negative aspects. Factors like economic, environmental and
social have both positive as well as negative aspects attached for the tourism industry as well as
companies working under it. Positive economic benefits include higher income, higher employment,
and government tax base, higher receipts of taxation, increase in the export business, economic
development, and inflow of the foreign currency. On the other hand negative impacts of the
economic factors will include increase in the cost of living, inflation rate, demand of the services of
public, increase in the property tax, and increase in the dependency of the economy on the travel and
tourism sector (Dwyer, et. al., 2010).
Coming to the environmental aspects, positive factors that are attached with the environmental
aspects are natural resource conservation, planning and control, beautification of the surroundings,
revitalization of the community and maintaining the quality of the environment. Negative factors that
are being observed in concentration with environment are destruction of flora and fauna of the host
countries, degradation of the landscape, impact on the environment due to pollution, and scarce
resources will also get affected.
Looking towards the social factors there are various positive aspects attached with social factors they
are cultural values of the country will be conserved, historical monuments of the country will also
remain protected because travel and tourism sector prefer to keep the historical monuments safe and
secure so that it could provide the information to the visitors regarding the history of the country.
Certain negative aspects attached with the social factors are loss of the domestic festivals and impact
of the local culture that is being followed in the country (Gartner, et. al., 2011).
4.2 Explain strategies that can be used to minimize the negative impacts while
maximizing the positive impacts TUI Group businesses.
For every business it becomes necessary to develop the strategies which could help it to grow in the
market. As discussed previously that it is necessary that TUI Group should work on the negative
aspects so that it could work smoothly in the market, it is necessary that it should develop the
strategies with the effect of which it could minimize the negative impacts and maximize the positive
impacts.
To manage the negative economic impacts TUI Group will have to formulate the strategy of
managing the local standards of life at the managerial level so as to manage the standard of living, it
is also necessary to include the local people in the economic policy so that they could get benefited
accordingly. To reduce the dependency TUI Group could diversify the business according to the
requirement of market. It is one of the most effective strategies that could be adopted by the groups
so as to minimize the negative aspects (Greaves, et. al., 2010).
Negative impacts attached with the environment could be minimized by applying the policies which
could help in environmental sustainability rather than affecting it. It is necessary that TUI Group
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should make positive contribution in managing the environment and ensuring that environment could
remain protected.
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