Travel & Tourism Organization Report

This report examines travel and tourism organizations in a global context. It analyzes the differences between organizations in the sector, the impact of a nation's economy on travel and tourism, and the effects of national and global events. The report also discusses strategies used by organizations to maintain global operations, the impact of international tourism on domestic tourism, and the challenges faced by organizations like Marriott Hotels during international expansion. The report concludes by suggesting strategies for overcoming these challenges, such as innovation, low-price strategies, online marketing, and collaboration with other businesses.

Travel and tourism
organization in global
context
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TABLE OF CONTENTS
Introduction .....................................................................................................................................4
Task 1...............................................................................................................................................4
1.1................................................................................................................................................4
1.2................................................................................................................................................4
1.3................................................................................................................................................5
Task 2...............................................................................................................................................6
2.1................................................................................................................................................6
2.2................................................................................................................................................6
2.3 ...............................................................................................................................................7
Task 3...............................................................................................................................................8
3.1................................................................................................................................................8
3.2................................................................................................................................................8
3.3................................................................................................................................................9
Task 4...............................................................................................................................................9
4.1................................................................................................................................................9
4.2..............................................................................................................................................10
Conclusion ....................................................................................................................................11
References .....................................................................................................................................12
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INTRODUCTION
In the modern era, travel and tourism has emerged as one of the fast growing and most
potential sector of the country (Ateljevic and Page, 2009). Furthermore, increasing demand
among people in the market can be termed as one of the major reason behind high growth rate of
the entire industry. The present research report explains the core differences between
organizations operating in travel and tourism. Along with this, the report also highlights the
impact of a nation's economy on activities of travel and tourism sector. The effect of global and
nation event in the tourism and travel sector is also explained in the present report.
TASK 1
1.1
It can be stated that organizations operating in travel and tourism sector are completely
different from each other. In context of travel trends, UK has witnessed increase in the total
number of visitors or travelers in the year 2014. As compared to 2013, there was 5.2% growth
witnessed by travel industry of UK in 2014. Furthermore, more than 34.4 million travelers has
visited the country in order to witnesses its rich culture and history. On the other side of this,
tourism industry of UK is also growing with a very good pace and it is contributing
approximately 9% of the total GPD which is far away from the travel industry. In the year 2014,
the total revenue achieved accounted to £125.2bn. There are many businesses operating in the
travel and tourism sector (Travel Statistics for Tour Operators, 2015). For example there are sole
traders who manages and takes care of all businesses operations by their own. Apart from this,
there are partnership firms where two or more than two parties have integrated with each other in
order to deliver services related to travel and tourism. Some businesses are carrying out
operations at small level whereas there are firms which are conducting marketing and practices
related to travel and tourism at wider level. Tour operators such as Thomas Cook offers services
such as moving around from one place to another whereas hotels such as Hilton are offering
services linked with food and accommodation.
1.2
At the time of carrying out their operations and business practices there are certain
responsibilities which organizations in travel and tourism needs to accomplish. In terms of
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stakeholders it is the most important duty of organizations to take steps which benefits them.
Further, it is the responsibility of businesses to offer adequate and higher return against the
money which they have invested. On the other hand, it is also the key responsibility of
companies in travel and tourism sector is linked with employees. The businesses need to make
sure that better and hygienic working conditions are being offered to employees. In addition to
this, offering appropriate pay, work timing and taking care of employee motivation are some
other responsibilities (Caro and Roemer, 2006). At the time of carrying out business practices,
firms are also responsible to make sure that satisfactory products and services are provided to
customers at very convenient prices. This means no false or unethical marketing should be
conducted in order to sale product or service. These businesses are responsible to ensure that
their operations and business practices do not create any kind of negative impact on environment
(Chambers, 2009). Another responsibility of these organizations to strictly follow the rules,
regulations, laws which has been framed by government and other regulatory bodies.
1.3
Strategies can be termed as the action plan which are being used by businesses in order to
achieve desired outcomes and goals. Further, there are certain strategies which has been
employed by travel and tourism organization in order to maintain global operations. Companies
such as Hilton hotel formulated wide range of strategies in order to carry out effective flow of all
its operations and activities (Evans, Stonehouse and Campbell, 2012). Here, the selected
organization is making use online marketing channels with an objective to create awareness
among customers and attract them. On the other side of this, the brand has also adopted strategy
of market research wherein researches are carried out in order to become aware of changing
customer demand and need. It can be stated that the use of this strategy help the firm to deliver
more satisfactory services to their customers (Hjalager, 2010). On the basis of changing
customer demand, Hilton hotel carries out changes in its services at regular intervals. This has
supported in increasing sales, profits and market share of the selected hospitality business. Other
than this, strategies also focuses on innovations in services which help the firm to offer
customers with something new and innovative. It can be stated that Hilton hotel is using the
strategy of differentiation in order to carry out its global operations.
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TASK 2
2.1
It can be stated that any kind of changes within a nation's economy has a direct impact on
performance of businesses operating in travel and tourism sector. Situations such as high growth
rate results in smooth flow of activities and operations whereas recession can create obstacles in
increasing sales and profits. The economy of UK is considered as fifth largest economy in the
world and at present its size is $3.04 Trillion. Inflation rate is 0.6% and it has grown by 0.1% in
the year 2016. UK's total debt is amounted to £1.56 trillion or it can be expressed that it is
81.58% of the nation's total GDP (Gross domestic product 2016). All the above mentioned facts
and data clearly indicates that UK's economy is growing with a very good pace. This has resulted
in providing adequate support to the entire travel and tourism industry. On the other side of this,
effective investments are being carried out by government for the development of industry
(Hollick and Braun, 2005). The results of this is that the industry is able to attract more and
more number of travelers along with the passage of time. Growing economy has also supported
travel and tourism industry of UK to carry out expansion in other related areas and operate
smoothly. Situations such as low economic growth means that businesses will not be able to get
adequate support from the government (Kayar and Kozak, 2010). Furthermore, travelers and
tourists also prefer to visit countries which have adequate facilities and satisfactory services.
Low economic growth directly results in decreasing the demand among traveler. This indicates
the performance of national economy has a direct impact on the activities and operations of the
entire travel and tourism sector.
2.2
Monetary policy can be termed as an effective process in which the supply of money
within a nation is controlled and taken care. The main objective behind use of monetary policy is
to maintain appropriate consumer spending and aggregate demand in the market. In the year
2008-09, the recession occurred has affected sales and profits of entire travel and tourism
industry to a great extent. In order to deal with the economic recession, Bank of England decided
to make use of quantitative easing (Lordkipanidze, Brezet and Backman, 2005). Furthermore,
quantitative easing is a kind of tool which is used in order to increase supply of money within a
nation. Central bank also opts for low interest rates with an objective to maintain appropriate
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flow of money within an economy. Nowadays, government is also taking corrective measures to
promote sustainable tourism within the country. Businesses in this sector are now forced to take
care of the fact that there activities and practices do not affect environment in negative sense.
Apart from this, government has also developed effective competition policy which act as an
obstacle for businesses to reduce and prevent situation such as monopoly in the market.
According to this policy companies are required to make sure that they do not charge prices
which are not suitable or which can results in failure of the entire market (Mamaghani, 2009).
2.3
Different type of national and global events also has direct impact on operations and
activities of organizations which are operating in the travel and tourism sector. It can be
expressed that events such as natural disaster are considered as a big threat to industry such as
travel and tourism. Events such as earthquake, cyclone, floods results in creating great losses to
life and property (Peters, Frehse and Buhalis, 2009). Along with this, these events are lower
down the total number of travelers and tourist coming in the country has they perceive that it is a
big threat to their life. On the other side of this, political unrest also results in creating several
kinds of negative impact on tourism activities. It can be expressed that stable political condition
promotes growth of businesses whereas situations such as political unrest results in creating
obstacles in expansion (Spenceley, 2012). Apart from this, disasters such as sinking of Costa
Concordia has also affected the sector in negative. In this case ship which was carrying
passengers hits the rock, gets tilts and then it finally got sank in the water. This has resulted in
creating fear among traveler and also stopped them to visit the country. Another incident which
happened was of BP oil spill in which more than 200 million gallon of oil was spilled in the gulf
of Mexico. However, it can be argued that it is not necessary that national and global events
always results in offering negative events (Janta and et.al., 2011). It can be expressed that events
such as world cup and Olympic results in promotion of tourism to a great extent. This is because
these events attracts more and more travelers and thus directly contributes in bringing more
foreign exchange within the country.
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TASK 3
3.1
In simpler term trading bloc can be defined as an agreement which is formed between the
different government with an objective to remove trade barriers. Another key objective behind
such kind of agreements is to carry out free flow of operations and activities within different
nations. It can be asserted that global integration such as development of trading blocs has
resulted in promoting businesses in travel and tourism organization. It has helped in developing
more effective relationship between nations and developing. Integration such as world bank
provides financial aid to developing and under developed countries for the development and
growth of their tourism sector (Laws, 2011). Other than this, OPEC nations makes changes in
their prices and policies related to oil and natural gas with an objective to promote more tourism.
There are some transnational corporations which are registered in one country and carry out their
respective operations in more than one nation (Morgan, Pritchard and Pride, 2011). These co-
operations are trying really very hard make sure that smooth flow of business operations and
activities are carried out. Therefore, it can be stated that integration at global level has resulted in
providing wide range of benefits to the brand.
3.2
In the modern era, international tourism has having several kinds of impacts or
implication on domestic tourism. Nowadays, new destinations are being developed and promoted
in domestic markets with an objective to promote more and more tourism. Here, government of
country also provide adequate support to domestic tourism. Other than this, international tourism
has resulted in improving the overall standard and services which has been offered by domestic
tourism (Morrison and Mahony, 2003). On contrary of this, it can be argued that domestic
tourism has also started to face several kinds of issues and challenges because of international
tourism. For example it has resulted in increasing the level or degree of competition.
Furthermore, the businesses in this sector are not able to attract new customers and retain old
ones because of growing competition in the industry. Nowadays, more and more emphasis is
required to be laid on areas such as development of new services and marketing. In order to
attract more customers, effective marketing strategies are required to be developed and
implemented by businesses (Moutinho, 2011). In addition to this, efforts also needs to placed on
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development of new services and products in order to gain competitive advantage over other
market players. International tourism has also resulted in increasing the overall supply of tourist
and visitors which can be termed as a big benefit for the entire domestic tourism.
3.3
It can be stated that the global economy has resulted in providing several kinds of both
negative and positive impact to travel and tourism organizations. The growing economy at global
level has resulted in providing different sets of potential growth opportunities to the companies
which are operating in this sector (Navickas and Malakauskaite, 2015). In terms of customers, it
can be expressed that customers are now made available with wide variety of options and
choices to choose from. Nowadays, there are many destinations and places where tourist and
travelers can visit in order to have fun and leisure. There was a time when travelers where having
very limited number of places but now time has completely changed and there are lots of options
available. However, increasing competition has emerged as one of the biggest threat for the
entire sector. Organizations operating in this sector are required to carry out innovations in their
existing services and offering at regular intervals (Pan, 2008). This means intense amount of
market research needs to be carried out by companies in order to become aware about changing
customers needs, demand and offer services on the basis of the same. Other than this, economic
upturn results in increasing opportunities for growth whereas downturn creates restrictions in
increasing sales and profits.
TASK 4
4.1
Marriott hotel is one of the leading chain of international hotels which is carrying out its
operations in different countries of the world. It can be stated that the brand has adopted for an
open communication and differentiation structure. Here, employees are being encouraged to give
their views and opinions for success of selected business enterprise. Along with this, Marriott
hotel is offering different type of products and services in different market as per need and
demand of customers (Peeters and Dubois, 2010). However, it can be argued that employee
turnover and increasing competition are the two major issues which has been faced by the
company during international expansion. The brand is investing large amount of money and
resources in hiring and selecting new employees but in situations where rate of turnover
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increases, the company is not able to deliver effective and satisfactory services to all its
customers.
Employees are considered as one of the biggest and most potential assets of any
organization. Therefore, it is required by Marriott hotel to develop effective strategies to lower
down the rate of employee turnover. On the other side of this, high degree of competition has
created several kinds of obstacles in increasing sales and profits. Changing characteristic of
people in global tourism market can be termed as another major issues which has been faced by
the Marriott hotel. Nowadays, people in the market are getting more influenced by online
marketing and advertisement (Raj and Griffin, 2015). Along with this, demand of sustainable or
responsible tourism id also increasing among them. Here, people wants that the selected business
enterprise should take care of environment and society at the time of carrying out its
international operations. In some nations adequate support from government is not provided to
Marriott hotel and this can be also termed as the major issue which has been faced by the brand.
4.2
In order to gain advantage over other market player it is required by the business
enterprise to develop unique and innovative services to attract more and more customers. Apart
from this, the brand can make use of a low price strategy in order to penetrate in the market more
effectively. Customers can be also attracted by making use of online marketing channels such as
social media, internet and emails. An aggressive marketing strategy can be used so that
competitive advantage can be gained. Another strategy that can be implemented by Marriott
hotel to overcome from these issues is linked with entering into new market or destination. It can
be stated that the brand can carry out adequate market research in order to identify new markets
where demand of such services is very high (Chambers, 2009). By entering into these new
markets, the brand can be able to easily find new customer base. However, it can be argued that
selecting a new market or destination is not an easy task and therefore company will be required
to take care of large number of factors. Implementation of new reward system and carrying out
exist interviews is another effective strategy which can be used by the brand in order to
overcome issues relate to employee turnover (Kayar and Kozak, 2010). Marriott hotel can offer
various types of monetary and non-monetary rewards in order to motivate workers and
encourage them to give their best. Apart from this, the selected business organization can make
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use strategies such as implementation of new technology. Here, Marriott hotel can introduce new
and latest technology for delivering fast and satisfactory services to customers. This will help the
brand to gain more satisfaction among customers. Another key strategy which can be adopted by
Marriott hotel is of carrying out collaboration with other businesses that are operating in travel
and tourism sector. Here, the selected business enterprise can integrate with other travel agents
and tour operators in order to generate higher sales (Evans, Stonehouse and Campbell, 2012).
This strategy is effective because it will support in carrying out growth and development of the
entire travel and tourism sector.
CONCLUSION
From the above carried out report, it can be concluded that international operations of
travel and tourism industry is not an easy task and there are wide range of challenges which
needs to face by businesses. It can be also inferred that wide differences are there between travel
and tourism industry. Furthermore, at the time of carrying out their operations, there are large
number of responsibilities which needs to be accomplished by these businesses. These
responsibilities include taking care of customers, strictly following government norms and
carrying out fair competition. From the above carried out report, it can be also concluded that
increasing competition and rate of employee turnover are the two major issues which has been
faced by Marriott hotel at the time of carrying out international operations.
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