Strategic Management in Tourism: An Analysis of Industry Trends and Challenges

This assignment content focuses on various aspects of travel and tourism, including strategic management, crisis events, medical tourism, special event tourism, tourist typologies, and online distribution channels. The texts also explore the roles of information technology, social media, and low-carbon economy in shaping the industry. The selected readings are from 2010 to 2015 and come from reputable sources such as Taylor & Francis, Routledge, CABI, and Journal of Place Management and Development.

Travel and Tourism Sector

Table of Contents
Introduction .........................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Historical developments in travel and tourism sector...................................................................3
1.2 Explain structure of the travel and tourism sector..........................................................................3
TASK 2.................................................................................................................................................3
2.1 Functions of government, government-sponsored bodies and international agencies .............3
2.2 Explain local and national economic policy influences the success of tourism sector.............3
2.3 Discuss the implications of political change on tourism industry in different countries........3
TASK 3 ................................................................................................................................................4
3.1 Factors affecting tourism demand..............................................................................................4
3.2 Supply has changed to meet the effect of demand....................................................................4
TASK 4.................................................................................................................................................4
4.1 Positive and negative impact of tourism sector.........................................................................4
4.2 Explain strategies to minimise the negative impact and maximising the positive impacts.......4
Conclusion............................................................................................................................................4

references..............................................................................................................................................4

Introduction
Travel and tourism industry is a combine part of hospitality industry where in this sector
organisations provides higher quality facilities to their concerning clients. UK is 8th biggest
tourist destination where sop many people visit every year. Mainly tourism industry has sated
to provide best higher quality services and ensure possible way by making their visit most
comfortable and memorable. In this report, TUI group has been chosen for this study. TUI
holds number one position in tourism business. It has numerous travel agencies , airlines and
hotels etc. all over the world providing facilities to travellers for all major holiday
destinations. In this present report will discuss about various factors which may affect the
demand and supply of tourists and their impact of various government legal aspects which
may create an positive or negative impact on tourism business. ( Blanke,
and Chiesa, 2013 )
TASK 1
1.1 Historical developments in travel and tourism sector
Tourism sector is a one of the leading sector from past few years. The trend of tourism
development is coming from the ancient times. In past era 16th till 18th century travel and
tourism was the established foe the only high class people. They use to all such facilities and
willingly have to pay large amount for all these kind of enjoyment. On the other hand lower
class people were not able to take part of all these travelling facilities. They only travel for job
related purpose from rural areas to urban. Lower class people spent most of their time in
working to earn money to maintain their livelihood. ( Evans, Stonehouse
and Campbell, 2012.)
In the middle era, on 19th century the tourism sector was running successful and there are so
many new developments was emerged. On the other and in this era organisation has to be
develop tourism industry packages for high class or medium class people where both are take
participate in enjoy all such facilities. They turned to become an integrated activity for both
classes and set their affordable prices. In UK the development of tour operating agencies,
transportation facilities, accommodation etc. came into in the late 90th century all these
facilities emerged by providing holidays packages which can aid to generating more profit
from the concerning clients. ( Hall, , 2010.
)

After the end of 19th era current marketplace situation is rapidly grow where changed in living
standard , customer perception and so many other thing were change as rapidly. So in that
situation tourism business has to be more expand their business and provide more better
services from the existing services where as they provide better transportation services, new
holiday packages, develop destination locations, variety of product rages and differentiation in
packages where customer feel comfortable with their own convenient. There are lot so many
new development which may be emerged in this present era. These all developments are also
help to provide business effectiveness and generating high revenues and create a good
business image. On the other hand in this time companies are established to maintain good and
healthy relationship with concerning clients where they can have to frequently take their
travelling facilities. In this time they develop their packages and destinations. As per the
purpose of travelling in current era customer want to feel more comfortable and fully
facilitates. With the help of all these tourism sector country increase their economic grade and
aid to developing in economic growth also. Tourism industry is new revolution in existing
marketplace. It can aid to generate large amount of profits and help to their economic growth.
( Mehmetoglu, 2014. )
1.2 Explain structure of the travel and tourism sector
The structure of tourism industry is combination of some elements which accomplish the
different requirements of the tour purpose. There are various elements which may include in
structure of travel and tourism sector.
Attractions- In tourism sector destination places are more important where they can attract large
number of customers. So in that case company has to be develop their destination point. On
the other hand company will focus on these service facilities. Where they ensure to provide
high quality services. These attraction can be aid to improving company brand image and
profitability. Such attractions centres like natural and man- made places like beaches, forests,
lakes etc. and man made attraction may be museums, resort, pools etc. further, they provide
better transportation services, new holiday packages, develop destination locations, variety of
product rages and differentiation in packages where customer feel comfortable. (
Molz, 2012. )
Transport- In tourism sector transportation facilities are create render impact on the whole business
process. Transportation help to moving on place to another place. A bad service of transportation
tools where clients were uninterested and unhappy with such trip. So in that situation travellers
make ensure to provide better transportation services where customer get feel more comfortable and

relax. Further , nowadays, clients prefer to have complete comfort ability in the transportation
services where they can take the complete experience of holidays with full enjoyment.
Tour operators- Tour operator has plays a vital role in whole journey. Tour operator is a person
who represent their own company provide proper guidance to whole trip. Tour operates
maintain whole trip as according to time management. Tour operates is only responsible for
the whole tip facilities an d services which may provided in during the journey. In trip tour
operator ensue there services and accommodation will provided as in higher quality and full
comfortable. So TUI operates the tour according to this criteria and make arrangements of
accommodation and other facilities as per the purpose of travelling. ( Moutinho, 2011. )
TASK 2
2.1 Functions of government, government-sponsored bodies and international
agencies
As per the purpose of travelling in current era customer want to feel more comfortable and
fully facilitates. With the help of all these tourism sector country increase their economic grade and
aid to developing in economic growth also. Tourism industry is new revolution in existing
marketplace. It can aid to generate large amount of profits and help to their economic growth.
Tourism industry is libel to their economic growth as well as market development. On the other
hand government and international agencies ha various functions to which may affect the tourism
industry. There are the various functions of government bodies:
Development of plans: Government bodies like European union create an environment for
providing better investigation of tourism sector. In this government can make strategies to operates
all these tourism sectors which may protected for the costumes and government also ensure that
industry will have to contribute there such amount to overall economic developments.
Encouragement through certifications: Government has made some policies of providing
certificates and incentives to best on of tour operating industries. Like TUI on passing some
standards made by law. These are the standards and laws are create trust factor in concerning
clients. All these certificates and licensing letters are provided by local governing bodies or
other nation level agencies. ( Thakran, and Verma, 2013.
)

There are the various functions of international agencies:
As tourism activities are at the wide level where the role of international agencies for
increasing tourism in countries has become important. These agencies are make organisation more
better. The world travel and tourism council (WTTC) is one such international body that works for
eliminating barriers from growth of tourism sector. Some of the major functions of the international
body:
Improvement in local culture: in this point improvement in some areas of culture . Where they
build strong communication with other cultural origins. International agencies are help to
develop some under maintain areas. Such as like parks, streets, roads and other public areas.
In this point agency must ensue to redevelop their such parts where they can attract large
number of people. ( Thakran, and Verma, 2013.
)
Flexible policies: In this point international agencies were focus on flexible policies to maintain
their effective workforce environment. It is aid to increasing there productivity an
profitability Flexibility in policies were also create impact on customers as well as employees
where customer has to feel more comfortable and employee were get to feel healthy workforce
environment. In this international agencies were conduct campaigns to create awareness in
their concerning marketplace. In this case it can aid to encourage towards their tourism
industry. ( Xiang, and et.al. 2015)
2.2 Explain local and national economic policy influences the success of tourism
sector
In tourism sector business has affected by its local and national economic policies. Economic
development of country is render on tourism industry. Tourism industry Tourism industry is
new revolution in existing marketplace. It can aid to generate large amount of profits and help
to their economic growth. Tourism industry is libel to their economic growth as well as market
development. Local economic policies and nation policies has create render impact on the
success of tourism sector. Economic policies like taxation rates, inflation rate, fiscal policies
are highly affect the organisation success. All these things affects the demand and supply of
the customers. If there is decreasing demand and supply graph is highly affected to
organisational productivity or profitability. When national economic growth moves at a slower
pace it increase possibility of inflation which directly affect cost of living nation. So in that
situation some of the people are not able to adopt all these facilities and travelling facilities.

So in that time period they can ignore all these kind of such plans which may affect to
organisational productivity. In that time tour and travel agencies are going down and face lot
of loses. ( Xiang. and et.al.2010.
)
On the other hand government spend a big amount for development of tourist place where
they attain more customers and aid to increasing economic growth. Economic growth is render on
tourist where they aid to increasing their productivity and profitability. Economic policies are
highly affected to business concern where in that situation organisation some time face lot more
success and lot more loses. Apart from central government there are local authorities that also focus
on travel and tourism sector for doing welfare of local people by creating employment
opportunities. State government at local level build their own economic policies. Under these
policies they prepare budget allocation which may affect the tourism sector profitability. This will
create a problem for the local government. Where as it bring policies for travel and tourism sector.
Hence, it can be said that economic policy of the nation and local government greatly affect the
growth of tourism sector of the nation. It can be said that economic policy play a significant role in
growth of tourism sector in the nation.
2.3 Discuss the implications of political change on tourism industry in different
countries
According to TUI group if we talk about tourism change is visualize part of politics. The
understanding and linking of tourism is quite small of the societal field of study in relation with
tourism. There are no of governmental components stricken the structure, processes and the
inclination of the touristy improvement . By making connections between political change and
implications in the tourism there are some traits which outline the concept of public, policy and
politics in relation and interrelations with tourism( GretzelU.2010). There are different policies in
different countries.
Politics is related with the activity of power and decision-making criteria among the public
by certain policies which has been made by the government. Public policy is decided by the
officials of the government to decide what is to be done or not done according to the problems and
queries that need political interference. Government is the authorized establishment and related
policy-making processes by how the selection are made according to public policies. However in
order to discuss the public policy the communication criteria is quite sophisticated. A written
document is not regarded as a policy. Policy is an output of a decision and plan of action devising

operation. Following are concepts which has been covered in the public policy:-
 the main motto of the government taking place or state of doing things
 achievement of objectives and targets by the public from the government-regulated
 reason of the achievement of plans, proposals or strategies.
 Different types of governmental programs which are established in order to achievement of
the goals and these programmes are the approved programmes by the government.
Implementation should be included in decisions and actions in relation with government policy.(
Thakran, and Verma, 2013.

It is essential to disintegrate the public policy output which are the formal steps taken by the
government and the policy from the public policy outcomes effecting the government policy
genuine outcomes. Following are the political actions explained as with respect to tourism :-
 Improvement in economic competitiveness
 Rectification of property rights
 Benefits to the public in a broader spectrum
 Reduction in risks and uncertain situations
 Advance and innovate high capital costs projects would be supported
development of educational, economical and social well being in borderline and peripheral areas
these are the above political implications in travel and tourism sectors in different countries.
TASK 3
3.1 Factors affecting tourism demand
There are various factors that affect the demand and supply of the tourism business.
Demographic : Price is not only factor which can increase or decrease supply or demand . There
are various other facts may available which may create a impact on supply and demand ratio.
Country population, age of people, taste, preferences and consumer behaviour etc. all these factors
are create an impact on the supply an demand of the tourism business. Some of the people are
belong from the different backgrounds will have various trends and cultures so they will like to visit
places in accordance to their choice. On the other hand tourism business is directly propositional to

their demand graph.
Technology : In this factor technological elements were create a influence. In this process
backward technology were laid to impact on demand an d supply curve. In this point clients
were like to book online facilities such as online tickets booking, reservations, urgent booking
and lot more other facilities which can be provide by the tour operators through the new
technology. So in that situation lack of all these facilities and advancement induct has to face
so many consequences. With the help of new technology advance company has to develop
there demand graph and supply chain of product. It can be helpful to increasing their
profitability and productivity. ( Thakran, and Verma, 2013.
Economic condition : Most of the time economic condition were also create an impact on the
tourism business. Due to case of inflation rate which is greatly impact on the whole activities of
tourism industry. The organisation face challenges in meeting the expenses of fixed costs and also
in booking of airlines and hotel rooms for customers. On the other hand there are big difference in
currency rates and fuel cost which made tourism industry go down.
Inflation : In this point said organisation has influenced with the rate of inflations. Where in
current marketplace inflation rate is rapidly fluctuated. In inflation time people use to spend less on
travelling. At that they ignore all such kind of things. So in that situation said organisation demand
graph and supply graph is going down and decrease their productivity r and profitability ratio. But
after recovery of country from recession the firm was able to recover its position and increase its
revenues.
3.2 Supply has changed to meet the effect of demand
Accommodation:
In tour and tourism sector accommodations has create a render impact ondemand and supply
curves. in this case said organisation will provide better transportation services, new holiday
packages, develop destination locations, variety of product rages and differentiation in packages
where customer feel comfortable. So in that situation effective accommodation is help to creating
their effectiveness of company and increasing their demand an d supply chain . ( Hall, , 2010. )
Tour operators : Tour operator has plays a vital role in whole journey. Tour operator is a person
who represent their own company provide proper guidance to whole trip. Tour operates maintain

whole trip as according to time management. Tour operates is only responsible for the whole tip
facilities an d services which may provided in during the journey. In trip tour operator ensue there
services and accommodation will provided as in higher quality and full comfortable. So TUI
operates the tour according to this criteria and make arrangements of accommodation and other
facilities as per the purpose of travelling. So in that situation tour operator has to be develop there
demand of concerning sector and aid to improving their productivity.
Quality : On the other had quality is a most important part of the whole system where said
organisation focus on quality improvement. Where company has to be provide effective
quality services so there lot more people will attract with those services and accommodations.
So in that situation travellers make ensure to provide better transportation services where
customer get feel more comfortable and relax. Further , nowadays, clients prefer to have
complete comfort ability in the transportation services where they can take the complete
experience of holidays with full enjoyment. ( Thakran, and Verma, 2013.
Technology advancement : In this factor technological elements were create a influence. In this
process backward technology were laid to impact on demand an d supply curve. In this point
clients were like to book online facilities such as online tickets booking, reservations, urgent
booking and lot more other facilities which can be provide by the tour operators through the
new technology. So in that situation lack of all these facilities and advancement induct has to
face so many consequences. With the help of new technology advance company has to
develop there demand graph and supply chain of product. It can be helpful to increasing their
profitability and productivity. ( Hall, , 2010.
)
As per the purpose of travelling in current era customer want to feel more comfortable and
fully facilitates. With the help of all these tourism sector country increase their economic grade and
aid to developing in economic growth also. Tourism industry is new revolution in existing
marketplace. It can aid to generate large amount of profits and help to their economic growth. All
these elements are help to creating and increasing their demand and supply in current market place.

TASK 4
4.1 Positive and negative impact of tourism sector
According to TUI group there are certain positive and negative environmental, social and economic
impacts on touristy. Basically impact is the visualization created by ones eye and the looking
experience. Tourism is a year-round travelling activity and affects only after some time stages,
development stages and some speculations in varying effects. Following are the main positive and
negative impacts according to political, social and economic conditions:-
Environmental impacts:-
it consists of Ecotourist, wild life touristy and adventure touristy all take place in topographies such
as high alpine regimes, forests, wildlife sanctuaries, lakes, rivers, aquatic and coastal regions ,
famous towns, hill stations, deserts, resorts, submarine areas,plains and plateaus villages and
coastline resorts. The reason to visit these places is for the aspirations and good experiences and
fulfilment of desires of travelling these enormous destinations. The positive impact of this is to
increasing the awareness of the different environmental attributes gaining from these places, and the
negative impact is the devastation of the happening from the visualization of the people( Chiesa, T
2013).
Sociocultural impacts :-
sociocultural impacts are dealing with societal and cultural aspects of tourism, the integral aspect of
the tourism is the searching of legitimacy,aspirations in finding different cultural setup in its natural
surroundings. Cultural tourism provides the knowledge and understanding of different cultural back
grounds, ethics and communication with different parts of the world. There are different types of
societal interaction between the traveller and the host. These are commodification of the culture and
the objection effect or demonstration effect. Commodification effects can be used by the
destinations by means of attracting tourists for an instance by making a culture a commodity and
promoting and selling for the intake process .the manifestation effect is caused due to the big
difference produced between the tourist and host. This is only due to the misrepresentation or miss
interaction in the communication process by not understanding the language specially in developing
countries. Foreign language is not easily understandable in towns and villages and the local
languages of developing countries are not understandable by foreign tourists . Above these are the
positive and negative impacts of tourism with respect to social as cultural factors.( GretzelU.2010)

4.2 Explain strategies to minimise the negative impact and maximising the positive
impacts
According to TUI company following are the strategies used for minimization off negative impacts
and maximization of positive impact with respect to travel and tourism
Communication:- communication plays very important role as touristy is considerer . By
communicating well with foreign travellers by means of good networking channels like
transportation, accommodation and by adopting some methods of different language translator
sources for their convenience .
Environmental : its is any thing that influence its life and surrounds the organization indifferent
ways .by keeping the environmental surroundings clean and adoption of many advance methods to
remove pollution and by cultural heritage surroundings in relation with the atmosphere (Campbell, D
2012) .
Advertising :- it includes media, blogs, posters, adds, emails and other methods to engage tourists
and by providing them with best holiday packages with discounts for further references and entice
them as well . This is the best method in order to attract travellers by providing valuable and best
offers according to their expectations and demands to overcome their aspirations and satisfaction as
well. These are the following strategies in order to maximize negative impacts and minimize
positive impacts . By these methods we can encourage the touristy and get over to the development
of tourism industry in a best possible ways. ( GretzelU.2010)
Conclusion
As per the present report has been found various tools and techniques to creating
effectiveness in their organisation. In this present report describe historical developments of tourism
industry and focus on present era where tourism industry were growing rapidly. On the other hand
focus on tourism industry where it is new revolution in existing marketplace. It can aid to generate
large amount of profits and help to their economic growth. It has been concluded as tourism
activities are at the wide level where the role of international agencies for increasing tourism in
countries has become important. There are various government bodies which can be help to provide
some legal compliance for their tourism business. In this report has been concluded various aspect
of demand and supply element which can be help to increasing productivity in current market place.
( GretzelU.2010)

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