Understanding the Tourism Environment

This assignment explores the changing distribution channels within an international tour operator, the influence of the public sector on tourism, and tourism theory and concepts concerning supply and demand.

Understanding the Tourism
Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analyse the changing distribution channels within an international tour operator.....................1
TASK 2............................................................................................................................................3
Analysis of the influence of the public sector on tourism with a particular focus on how
government agencies impact upon tourism sector.......................................................................3
TASK 3............................................................................................................................................5
Explain how tourism theory and concepts concerning tourism supply and demand...................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Travel and tourism industry is a sector that comprises of exchanging tourist within nations and
offers them with all required facilities. The sector as an entire involvement of travel sites, tourist
spots, world heritage sites, travel modes, travel infrastructure to reach those destinations and
security or safety of tourists. This assignment is based on TUI Group which is a multinational
travel and tourism company. This form was incorporated in 1923 and is headquartered in
Hannover, Germany (Jovicic, 2019). This firm offer different kind of services to its customers
like transportation, accommodation and many more. The report will cover topics which define
different distribution channels of travel and tourism, factors and trends that driving the changes
and initiatives of tour operators to develop their distribution channels. Further, will define
influence of the public sector on tourism and impact of government agencies upon tourism
industry. Tourism theory and concepts will also define in context of tourism supply and demand.
TASK 1
Analyse the changing distribution channels within an international tour operator
Distribution channels refer to those tools that are beneficial to distribute and provide needed
products and services to consumers. In current time there are several kind of change occurred
due to digitalisation and organisation adopt and implement this change in their distribution
channels. In Context of TUI, there are several changing distribution channels and the description
of them as below:
Online Sales- It is the main foremost distribution channel that can be used by TUI to offer its
services to its potential clients. With the help of this tool the management of respective company
can sale its diverse services like air tickets because now these days several airlines have closed
their own ticket offices in many markets. So by using this channel consumers can purchase their
airline tickets online in effective manner. With the help of this channel, they onlny not take the
advantages of purchasing tickets apart from it, they can take the benefits of accommodation
services that are offered (Cavagnaro, Staffieri and Postma, 2018). They can book their room
online and make their payment also online way by using net banking etc.
Travel search engines- It is another changing distribution channel that offering
advantageous deals on travel products. They have user friendly websites that assist people search
for the best prices. By using this tool customers can get information about prices of products of a
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firm by using different websites of search engine and make comparison among the prices that are
offered by several websites. So that they can get affordable prices and purchase the product and
service.
Elements of travel websites- Corporate websites will assist the travel and tourism business in
term of distribution channels by offering and providing the benefits of services and products that
are offered by these kinds of enterprises (Giddy and Webb, 2018). This distribution channel
helps in making personal interaction with customers to get information about their needs and
demands so that they can offer goods and services as per their need.
Computer reservation systems- It is another distribution channels of TUI that is used by the
firm to automate booking and reservation of air ticket or for inventory purposes. With the help f
it, Airlines installing software in their intermediaries computer terminals and started their
distribution system of its services in more effective and appropriate manner. With the help of this
distribution channel organisation like TUI can provide effective airline services to its potential
clients in term of quick and effective ticket booking and reservation facilities.
There are several factors and trends that are driving the changes in term of distribution
channels. The description them as below:
Digital innovation technology- it is the main aspect that play an important role to drive the
change. When digital innovation occurred in term of technology then company adopt it to make
development in their business. With the help of this they offer self check in, online booking and
payment, in room services. This factor and trend make growth in the business of travel sector
organizations like TUI.
Internet marketing and distribution- It is another factor that driving the change due to
accessibility of internet marketing. When digitalisation occur competition in travel sector arise
so by adopting this factor in business of TUI, the management make change in its distribution
channels so that they can sustain till long term in particular business sector.
Consumer behaviour- It is an essential factor that drive the change in distribution channels of
firm. Now these days’ customers are more sophisticated and better educated than they were a
decade ago (Moutinho and Vargas-Sanchez, 2018). Now, with online ratings and ever more
international travel, target audiences have the ability to research and understand their travel and
accommodation options. This trend has begun to redefine Travel companies away from the brand
uniformity of the past.
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A tour operator refers to a person and enterprise that specialise in packaging holidays. It can be a
firm hat purchases individual travel components, separately from their suppliers and combines
them in a tour package which is sold with their own price tag to the public instantly or with the
help of middlemen that known as tour operator. Now these days digitalisation create impact over
each business function so due to which there are several kind of change occurred in customers
need (Hansen, 2018). In term of fulfilling consumers need, tour operator take initiatives of
making change in their distribution channels to fulfil their needs and making development in
their distribution channels by using technology and internet. They consider different practical
steps like, market analysis, consumer behaviour determination and competitive analysis etc.
Through market analysis, they identify the needs of market in term of offering products and
services though online way. So that they can easy to reach in customers and provide benefits in
easy manner. Now these days’ customers’ preferences are changed and there have the need of
self check in and others. So by developing distribution channels by using advance technology
they fulfil their need which helps in making development in distribution channels of companies
like TUI. Apart from it, most of the company adopt digitalisation in their business due to which
competition arise, and the tour operator of respective firm adopt it their distribution channels so
that they can minimise the factor of competition and making improvement in allocation channels
to sustain or survive in to competitive environment in appropriate manner. It will help in
development of the business in term of enhancing productivity, increasing profitability and
improving customer base.
TASK 2
Analysis of the influence of the public sector on tourism with a particular focus on how
government agencies impact upon tourism sector
Tourism is acknowledged as one of the most reliable economic and sociological phenomenon of
current era. In this millennium, this industry constitutes a structural element of the changes of the
global economy (Benckendorff, Xiang and Sheldon, 2019). Public sector refers to the
involvement of government in making development and growth in the business of the firm that
operating their business in to tourism industry.
Tourism requires positive situations to thrive these are stability and security, a sound legal
structure with provision of different servicer and required infrastructure like roads, water
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supplies and a favourable atmosphere. All the states are able to provide. It is the national
authority who has the influence and political cloud for determination and course direction. The
level of commitment and engagement are most essential because there are two factors exist with
varying levels of effect in each nation of the globe. Public sector management consists action
implementation and policy direction by the national authority (Cocola-Gant, 2018). The
principles of accountability on behalf of the public have the needed support of the legitimate
framework and political system prevailing. In travel and tourism sector government and public
sector of different destination create positive and favourable impact n term of offering needed
support for operating the business of travel and tourism companies in appropriate manner. By
offering roads for offering better quality transportation services to target audiences, the
government plays an important role. A destination like Spain, the public sector create favourable
influence in term of charging less tax on transportation and offering better quality security and
safety to customers of company.
With basic understanding of the importance of planning, government have to find out their role
in tourism which is to generate effective environment in which the domestic tourism industry can
flourish, assist in term of creating job option, maximise revenue, administrate stakeholder issues
and identifying compromise to confront stakeholders from several industries and reach
consensus. The national authorities of a nation play an important role by framing policies and
plan because the development of tourism of one nation is closely connected to the policies of that
nation. It is a course of action that pursued by a government, expressed as a board statement of
general intent that leads the action of public and other in carrying out the national authority’s
demand (Jamal, 2019). The government has the power to command such a massive origin to
improve strategy which matches the demand and supply factors like and measurement of tourist
and market origins, the visitors’ satisfaction, atmospheric protection and effective rewards for
developed and capitalists.
Government agencies have to offer laws; rule and controls for tourism in order to assure its
tourism sector can sustain its degree and compete with different tourist locations. They have to
develop a structure which makes sure it’s tactical and strategic in attractiveness in the tourist
location in order to maximising the number of traveller’s visitation. The protection of interest is
another essential component of the destination area which is required to be considered. By
maintaining the attractiveness of tourist location, a new destination may have to be investigated
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or artificial origin may be required for getting attention. Government agencies have to be
concerned with the acceptance in the society whether they welcome of in conflict with the tourist
interests. These agencies require making a good balance among two essential components. The
publicity on tourist destination assists its national economic system and attraction of
competitiveness across the world (Butowski, 2019). Tourist that is attracted by the promotion
will come to visit instead of other place so that the national economic system will develop. If the
destination does not match with what the government agencies publish, the national reputation
may decline. These agencies play an essential role in tourism sector as the planner, coordinator,
regulator, protector and promoter of the destination interest.
These authorities play an effective role in tourism development in term of investing in
tourist attractions and infrastructure, maintain public realm, and atmospheric assets like beaches,
interpret local heritage and support festivals of specific destination, events and tourism
promotion. The government working with different partners and committed to support or
developing tourism of different destination of a nation. The national authority of a national also
offers different kind of support to a travel and tourism company like TUI. The company offer
transportation service by airline. So the government offer safety and security service to the firm
so that the people and target audiences feel safe and always to take the benefits of the services
and products that are offered by the venture.
TASK 3
Explain how tourism theory and concepts concerning tourism supply and demand
There are different concepts and theories of tourism that are developed for finding out the needs
and demands of traveller and potential clients of a firm. There is an effective theory of tourism
that is known as Plog’s theory which is developed by Stanley Plog, an American research in
1973 (Hall, 2019). This theory is developed by the person to know the popularity of a destination
that is associated to the inherent personalities of travellers. As per this theory, the travellers are
classified as per their different personalities, they are as:
Psychometrics- It refers to these individuals who prefer to visit familiar environments or
cultures. They do not like to make experiment with accommodation, food and entertainment.
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Allocentrics- It refers to those individual who have strong need for new experiences. They
seek destinations that are unfamiliar and with totally belong from different culture and
environment.
Midcentrics- It refers to those travellers that are not adventurous but they are not afraid to
try new experiences.
This theory is beneficial to determine the needs and demand of customers so that the
firms that are operating in tourism sector can fulfil their need by supplying effective service to
manage and fulfil their demands (Fang, 2020).
In Spain San Sebstian is a popular destination which is the capital of Gipuzko province and
located in the Basque country of north Spain of the coast of the Bay of Biscay. This beautiful
seaside city is well loved for its excellent beaches and outstanding culinary tradition. The main
attraction of this destination is great beaches, pretty cathedrals and others like international film
festival. Cause of these all attraction, this Spanish destination is liked by the customers and high
in demand due to beaches. This location is being more popular cause of playa de la Concha
which offer sunbathing and water activities like swimming, kayaking and water skiing that are
highly in demand. Now these demands of traveller are changed due to demographics of them and
they prefer this destination. To support this demand that get occurred, it is very crucial to have
strong supply side which is full equipped with the requirements of the demand. Supply side
includes of the accommodation accessibility, several kinds of required services like food and
transportation etc. in particular location. By offering effective services making good relation with
the local travel agencies and tour operators, the management of TUI can manage the supply
demand factor of the firm in effective manner. Now these there is several kinds of changes are
occurred in tourist needs and they want to fulfil their demand through appropriate supply. By
offering online booking, registration and payment services, the effectively supply required
services (Prayag, 2018). The company also consider those destination in its tour packages that
are highly demanded so that they can offer products as per need of different types of tourist with
the purpose of managing the supply chain aspect of the firm.
CONCLUSION
This has been summarised form the above mentioned information that travel and tourism
sector is a great sector in which there are number of business and individual associates to support
each other and maintaining the industry as a whole. The national authorities of different nations
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are supported to the organisation to make growth in particular industry. By offering needed
services and products as per consumer’s need these businesses maintain the aspect of supply and
demand in tourism sector.
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REFERENCES
Books & Journals
Jovicic, D.Z., 2019. From the traditional understanding of tourism destination to the smart
tourism destination. Current Issues in Tourism. 22(3). pp.276-282.
Cavagnaro, E., Staffieri, S. and Postma, A., 2018. Understanding millennials’ tourism
experience: values and meaning to travel as a key for identifying target clusters for youth
(sustainable) tourism. Journal of Tourism Futures.
Giddy, J.K. and Webb, N.L., 2018. The influence of the environment on adventure tourism: from
motivations to experiences. Current issues in tourism. 21(18). pp.2124-2138.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Hansen, A., 2018. Environment, media and communication. Routledge.
Benckendorff, P.J., Xiang, Z. and Sheldon, P.J., 2019. Tourism information technology. Cabi.
Cocola-Gant, A., 2018. Tourism gentrification. In Handbook of gentrification studies. Edward
Elgar Publishing.
Jamal, T., 2019. Justice and ethics in tourism. Routledge.
Butowski, L., 2019. Tourist sustainability of destination as a measure of its
development. Current Issues in Tourism. 22(9). pp.1043-1061.
Hall, C.M., 2019. Constructing sustainable tourism development: The 2030 agenda and the
managerial ecology of sustainable tourism. Journal of Sustainable Tourism. 27(7). pp.1044-
1060.
Fang, W.T., 2020. Rural Tourism. In Tourism in Emerging Economies (pp. 103-129). Springer,
Singapore.
Prayag, G., 2018. Symbiotic relationship or not? Understanding resilience and crisis
management in tourism. Tourism management perspectives. 25. pp.133-135.
Online
Tourism Distribution Channels. 2020. [Online]. Available Through: <
https://www.researchgate.net/publication/319085744_Tourism_Distribution_Channels>.
8 factors that have changed the way we travel. 2020. [Online]. Available Through: <
https://www.hotelmanagement.net/operate/8-factors-have-changed-way-we-travel>.
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Tourism theory. 2020. [Online]. Available Through: < https://prezi.com/ra3bzt33cyso/plogs-
theory/ >.
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