Understanding the Tourism Environment

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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