P. and et. al., 2011

The provided content comprises a collection of academic articles, books, and online resources related to the hospitality industry. The articles cover various topics such as tourism management, sustainable development, ecotourism, marketing strategies, and responsible tourism indicators. Notable authors include P., et al. (2011) who theorized on hospitality, Mahony (2007) who studied Irish involvement in the hospitality industry, Mak (2011) who explored ISO certification in the tour operator sector, and many others.

Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical developments in the travel and tourism sector..........................................1
1.2 Structure of the travel and tourism sector.........................................................................3
TASK 2............................................................................................................................................4
2.1 Functions of government, government sponsored bodies and international agencies in
travel and tourism...................................................................................................................4
2.2 Influence of local and national economic policies over the success of travel and tourism
sector.......................................................................................................................................5
2.3 Implications of political change on travel and tourism sector in different countries.......6
TASK 3............................................................................................................................................7
3.1 Factors affecting tourism demand....................................................................................7
3.2 How supply has changed to meet the effects of demand..................................................8
TASK 4............................................................................................................................................9
4.1 Positive and negative economic, environmental and social impacts of tourism..............9
4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts....................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
In the current era of globalization, travel and tourism sector is among the fastest growing
industry in the world. However, it provides various benefits to the individual and provides them
job opportunities so that the desired results can be attained. Also, it has become one of the major
source of revenues generation in the economy. Further, determining the historical evolution of
tourism, current structure of tourism sector and external influence on tourism impacts upon the
host communities and their environment. Also, assessing the influence of different international
and national policies upon the travel and tourism sector (Lennon, 2003). Now-a-days traveling is
not just confined for the aim of recreation and leisure purposes, but it helps individual in gaining
education, knowledge, business activities and health related factors. Moreover, there is wide
range of development within tourism activities such as adventure and eco-tourism that attracts
people from all around the world. In the current study it explains the structure and historical
developments within travel and tourism sector in London. Also, it elucidates the influence of
both local and national economic policies and thus affects the success of the travel and tourism
sector. At the end, different strategies have been implemented in order to minimize the negative
impacts and thus maximizing the positive impacts upon travel and tourism sector (Mintzberg,
Ahlstrand and Lampel, 2005).
TASK 1
1.1 Key historical developments in the travel and tourism sector
Travel and tourism sector has become one of the main consequences of economic
development in the country. However, London is one of the famous tourist destination and it
possesses wide range of historical monuments and buildings that attracts tourists. Following are
the key historical developments that involves post-industrial revolution, pilgrimages and possible
future improvements in the travel and tourism sector within London are as follows-
 In the late 16th and early 19th century, Grant Tour was facilitated by the British upper
class people, big business houses and thus it rises the new horizons of travel and tourism
sector. Further, at the time of industrial revolution, tourism demand has been raised
because of introduction of tour package services, paid holiday’s benefits to middle class
people who requires to relax and recreation. Here, people find interest regarding
exploring the remote areas and travel across different destinations (Page, 2011).
1

 Using innovating technologies and science for the development of travel and tourism
sector in London. Through using latest technology, it helps in marketing the tour
packages to both domestic and international clients. In regard to this, London has made
an extensive use of new technological for this sector and thus connect with different
companies associated with travel and tourism business and provide best offers to
travelers. Hence, it plays a crucial role in the growth and development of tourism sector
within UK (Hudson, 2008).
 Through evaluating different studies, it has been assessed that concept of mass tourism
plays a crucial role in the travel and tourism sector that was initially started in England at
the second half of 19th century. Thus, growing mass tourism results in increasing mainly
two specific reasons firstly, it helps in developing transportation technologies or
industrial revolution while another is the individual entrepreneur efforts and starting
travel company i.e. Thomas Cook. In the year 1862, company planned several
international tour packages mainly to three destinations such as Far East, India and
America (Khosrowpour, 2002).
 In the present era, London has been assessed as one of the best part of creating world
trade. The UK tourism board has developed different standards in order to promote
tourism in the country and generate revenue. Tourism authorities conducts programs for
preserving, maintaining and promoting famous historic monuments such as Buckingham
Palace, The Victoria and Albert Museum, British Library and the famous Tower of
London (George, 2010).
Following are the main factors that helps in influencing growth in travel and tourism
sector-
 Changes in the standard of living of individual- It can be assessed that changes in the
social condition of people influence companies to develop tourism in international
market. Thus, it enhances employment opportunity for people and generate revenue for
the economy. It provides chances to middle class people to possess appropriate funds for
spending upon their vacation across the globe (Giudici and et. al., 2013).
 Enhancement in technology- Developing the unique and advanced technology in the
tourism sector helps country to attain competitive advantage over other countries.
Therefore, it is essential for London to manage different development in the field of
2

science and technology and thus, offers high quality and unique services to travelers.
Development of jet aircraft, 3-D effect and other technologies has helped companies to
render best quality products and services to visitors and satisfy their needs (Hudson,
2010).
 Innovation and infrastructural development- London government promotes
development of infrastructure in the country such as better road network, rail
connectivity and water management so that visitors coming from different destination
can be attracted (Korstanje and Clayton, 2012).
1.2 Structure of the travel and tourism sector
The structure of travel and tourism sector involves varied other industries that provides
wide range of products and services to travelers in order to satisfy their needs. Following are the
different elements within travel and tourism sector are discussed underneath-
Hospitality and tour management services
It involves different individuals that are focused on developing coordination among each
and other and thus provide best products and services to travelers in order to satisfy their needs
of accommodation, transportation and sightseeing etc (Le Serre and Chevalier, 2012).
 Travel agents and tour operators- It is crucial for the tour operators to plan best
holiday packages for tourists in regard to maximize their needs. It involves companies,
individual travel agents who are focused on making connection with different hospitality
service providers and thus render different services such as accommodation,
transportation, finance etc. Such individual prepares an estimated budget and information
of destination to fulfill the needs of clients (Lima and Martins, 2012).
 Supportive services- In addition to travel and tourism sector, there are different ancillary
services such as financial services, insurance, money exchange, guiding, marketing
companies etc. Beside these services, the tour operators also provide different additional
services such as passport and visa services which is necessary in order to visit abroad.
 Accommodation- It is another crucial aspect within tour management services and thus it
directly impact upon the cost and pricing of the tour package. Here, tour operators
arranges for the specific accommodation service required by the guests such as hotels,
villas, resorts and cottages etc. It all depends upon the consumers interest and thus
3

providing best service helps in increasing chance of selecting the same service provider at
the time of next visit (Palhares, 2012).
Transportation
It is another crucial segment within travel and tourism sector and thus helps in connecting
people and making tourism sustainable so that trade activities can be carried out in an effective
manner. Selecting different medium of transportation such as air, rail, ship affects the cost of tour
package. Further, it is essential for tour operators to handle different transportation medium so
that traveling to one place from another can be made easily (Sloan, Kaufman and Legrand,
2012). Following are the different transportation ways operates within London are as follows-
 Air travel- Such type of transport helps in providing fast services to travelers within both
domestic and international boundaries. Thus, it attracts tourists by providing facilitating
services within flights (Howes, Scarpaci and Parsons, 2012).
 Road transport- Further, such type of transport provides convenience to visitors while
they are on adventurous trips and helps them in connecting with different locations.
 Cruise- After evaluating the interest of travelers, tour operators are also providing cruise
line services so that they are able to experience a unique and creative hospitality service
on water to attract guests (Mak, 2011).
Attractions
There are wide range of attractions such as natural and man-made that helps in
influencing the tourists to visit the destination. In UK there are different natural resources such as
beautiful beaches, mountains and eye catchy views so that it attracts travelers to visit the place.
Further, there are different man-made attractions as well that influences tourists to visit UK such
as ancient monuments, buildings and museums etc (Papatheodorou, 2004).
TASK 2
2.1 Functions of government, government sponsored bodies and international agencies in travel
and tourism
There are different bodies such as government and international agencies that helps in
managing tour operations in UK. However, public authority of UK has established Tourism Act
1969, in order to carry out best tourist activities within the country. In regard to this act, The
British Tourist Authority (BTA) and the English Tourism Council (ETC) have been merged and
4

developed another authority VisitBritain. Main aim of this act is to develop coordination among
all the businesses in order to render best quality services to travellers. Tour Regulations 1992
helps in controlling the functions of tour operators within UK and thus influence them to offer
attractive tour package holiday to consumers complying to the Package Travel Regulation Act
(Riege and Perry, 2000). Thus, it is essential for the tour operators to carry out the set regulations
because breaching such laws affects the consumers rights. Furthermore, there are different
government bodies in UK such as Department for Culture, Media and Sport that monitors the
tourism activities. In regard to this, authorities helps in managing the functions at three different
levels such as national, regional and local. There are different strategies developed by UK
government such as Visit Britain, Visit Wales and Visit Scotland in order to promote tourism
activities in the country (Vivanco, 2001).
Further, formulating different policies and regulations helps in managing proper
coordination among private and public bodies assists in attracting travellers from all around the
globe. Thus, public authority of UK has developed varied Tourist Information Centres within the
local council so that it helps in providing different information to tourists such as promotional
brochures, accommodation, sports and club centres, theatres, museums and art galleries etc.
There is another government agency i.e. UNWTO which is responsible for the economic growth
and development of travel and tourism business in the country. Furthermore, The World Travel
and Tourism Council (WTTC) is also assessed as the most crucial organization associated with
the travel and tourism industry (Dale, 2005). All these organizations helps in providing effective
travel services to consumers and satisfy their needs. WTTC helps in carrying out awareness
among consumers regarding travel and tourism and also it is one of the world's largest industries
providing 277 million jobs and generating 9.8% of world GDP.
2.2 Influence of local and national economic policies over the success of travel and tourism
sector
It is essential for the UK government to develop different policies and practices so that
economy of the country can be controlled and thus growth can be attained. In regard to this,
monetary and fiscal policies have played major role in UK. However, developing such policies
have significant impact upon the growth and development of travel and tourism sector. Monetary
policy of the country helps in controlling the money flow in the economy by controlling the
interest rates. However, it affects the cost of business expansion plan of different companies
5

operating in UK such as hotels, aviation and tour agencies etc. Further, there are different factors
that influences the economic policy of nation upon travel and tourism sector (Deuschi, 2006).
For instance, in order to enhance the tourist industry in the country, UK government is required
to subsidise the building rates for developing resorts and hotels. Thus, it helps in benefiting the
national economy up to a large extent.
Furthermore, fiscal policy of government helps in controlling the taxation rates within the
economy as it has direct impact upon the cost of the different services linked to the travel and
tourism sector. Thus, it is essential for companies connected to tourism business to manage the
changes in the business operations along with pricing of services with reference to fiscal or
taxation policy (Lashley and Morrison, 2013). As it affects the profitability of the companies
working in the travel sector. Also, government bodies of UK has developed different policies in
order to face the challenges within the travel and tourism sector. In support to this, government
has developed different reforms and policies so that star ratings of different hotel groups can be
managed effectively and efficiently.
2.3 Implications of political change on travel and tourism sector in different countries
There are different factors such as political stability, international trade agreements that
influences the demand of tourism services in the travel sector. For instance, at the time of
political stability in the country large number of tourists are attracted to visit towards the
destination. While, if there is instability in the political environment then people does not feel
safe to visit the place (Law, 2010). Therefore, it is essential for the government bodies to make
the stability in the political environment so that travellers can be attracted. For instance, Dubai is
considered as the world's number 1 tourist destination because government bodies take active
participation in the planning, organizing and controlling the tourism development in the country.
Thus, all these policies helps in ensuring safety and security of visitors. In addition to this, UK
government authorities are also managing and controlling the political system of the country so
that outside visitors are attracted towards the country. Further, Switzerland is also developing
tourist attraction because of its calm political interference that does not obstructs the tourism
activities in the country (Lynch and et. al., 2011).
However, political instability or unsuitable political environment hampers the tourism
activities in the country. Therefore, it is essential for the public bodies to regulate and control the
activities so that more and more tourists can be attracted towards the destination. For instance,
6

there is merely small or no tourists prefer to visit Pakistan because there is high political
instability in the country. Thus, safety and security issues are faced by the visitors. Such
activities hamper the growth and development of the tourism in the economy. Furthermore,
developing countries such as India and Nepal possess a suitable political system that helps in
supporting the tourists and offers wide range of products and services in order to attract tourists
from different countries (Mahony, 2007).
TASK 3
3.1 Factors affecting tourism demand
Here, TUI organization formulated different strategies and tour packages through
considering different factors that affects the tourism demand. In this context, following are the
different factors that affects the demand of tourism services such as-
 Emerging economies- There are different economies such as India and China that has
been emerged as the fastest growing nations. Thus, it influences the development of
tourism activities in such countries. However, it is essential for the management of TUI
to develop effectual strategy so that tourism services can be developed in order to attract
outside visitors. Also, managers and leaders of business are regularly visiting such
countries so that demand of tourism can be enlarged. Thus, emerging economies plays a
crucial role in order to attract tourists (McDonald and Hopkin, 2002).
 Demographic factors- It involves different demographic factors such as lifestyle, age,
income level of individual. For instance, there is high tourism demand noticed in the
young age group. It is because young people are always ready to visit and explore new
destination and also experience the places. Additionally, increment in the income of
middle class people influences them to visit to new places and spend leisure time with
friends and families (Teng, 2011).
 Social factors- Furthermore, social factors involves choice and preference of people that
influences their needs regarding travel and tour. Hence, it can be assessed that tour
operators are required to design the tour package as the lifestyle of people and also fulfil
their demand so that best results can be attained. However, requirement of people possess
great impact upon the demand of tourism services (Xin and Chan, 2014).
7

 Political factors- It is essential for the government bodies to develop wide range of
policies in regard to provide benefits to tourists and develop the travel and tourism sector.
As it helps in significantly contributing to the nation GDP. Political framework also plays
crucial role in simplifying the laws and regulations so that more number of tourists can
visit the country and thus enhance the economy of the country (Giaoutzi and Nijkamp,
2013).
3.2 How supply has changed to meet the effects of demand
It has been assessed that there are crucial changes being noticed among the services and
tour packages which are offered by various agents and tour operators. Thus, in order to enhance
the service quality, it is essential for the management of tour company to follow a structured
process and deliver quality services in order to fulfil the demand (Tour Operators, 2014).
Therefore, the management of TUI organization considers different elements to manage the
supply and demand-
 Seasonality- It is one of the crucial element that influences the demand and supply of
tourism services. For instance, due to seasonal business, most of the hospitality firms
increases their prices of different services and thus it affects on the demand of tourists.
Hence, it is essential for the travel agents to manage the price factors of different tour
packages and provide best costing so that more number of tourists can be attracted. TUI
management has developed different policies and practices in regard to provide best
services to consumers within good price range at the time of peak season to attract
outside visitors (Edgell, 2002).
 Managing transportation- It is essential for the TUI group to consider the interest and
lifestyle of people and then provide them required transportation such as air, rail, cruise
and road. Thus, managing such demand of people helps in influencing tourists to visit
different historical places with the help of cable cars. Here, tour operators assesses the
demand of visitors and thus provides a range of transport medium so that tourists needs
and demands can be satisfied. Apart from this, tour operator also arranges for buses,
coaches etc. for the education tours (Hudson, 2008).
 Accommodation- It is also one of the most important factors in regard to manage the
accommodation and food services for tourists. TUI group assesses the demand of tourists
regarding staying in the hotel, resort or villas and then provide a variety of choice to have
8

a pleasant stay at the time of travel. Also, hotel provide multi-cuisines facilities as per the
demand of travellers so that they can experience wide range of food culture of different
countries (Khosrowpour, 2002).
 Ancillary services- Here, tour operators also provides additional services to customers
such as financial, insurance and travel consultation etc, as per the needs of tourists.
TASK 4
4.1 Positive and negative economic, environmental and social impacts of tourism
There are different positive and negative impacts regarding economic, social and
environmental which influences the growth of tourism industry. These are as follows-
Factors Positive impacts Negative impacts
Economic Currently, the demand of travel and
tourism services has been significantly
increased. Thus, due to such increment it
raises the economic of the country. Also, it
provides different job opportunities to
people and attract several investors to
invest in international business. Another
positive impact is that it assists in
increasing the value of foreign reserves
that supports in international trade services
(Giudici and et. al., 2013). UK is one of
the most important tourist destination.
Currently, in the relevant industry
3.1million people are employed. This
sector is third largest business domain that
provide employment to number of people.
It can be observed that 9.6% of total
employment in UK comes from this sector.
From 2009-2013 tourism industry
employment rate grew by 5.4% which is
However, international tourism
plays significant role in
earning foreign exchange and
generating revenue but it may
also have adverse impact on
the economy (Lennon, 2003).
For instance, at the time when
international tour operators are
managed within the country
then it enhances the chances of
outflow of currency. Also,
there is high number of outside
visitors arriving the country
instead of domestic tourists
and thus it affects the foreign
reserves. It is well known fact
that UK is the one of the well
known and most popular
tourist destination. In case
recession level elevate at
9

just double of rate of employment in other
industries which is 2.8%.
global level then this will hit
UK economy. This is because
travel and tourism sector is one
of the largest contributor in
total value of foreign exchange
reserve. With decline in
tourism its share in foreign
exchange reserves will also
reduce. This will hit mentioned
nation economy. It can be said
that UK to some extent is
dependent on this sector to
earn foreign exchange. In case
foreign exchange reserve
decline, UK economy will
badly effect same. This is one
of the negative side of travel
and tourism sector.
Environmental It is another factor that involves different
natural resources such as wildlife, water
etc. However, growth and development in
tourism provides opportunities to wildlife
lovers to visit the country and thus
investigate the different breeds of birds
and wild animals (Mak, 2011). Further, it
is essential for the local authorities to
safeguard the environmental issues such as
increase in pollution and water
management etc. In UK there is good
biodiversity and due to this reason many
researchers time to time related to varied
Environmental factors also
negatively influences the travel
and tourism sector because
with increase in number of
travelers it leads to providing
adverse impact on the
environment in the form of
carrying out illegal activities
such as killing wild animals.
Thus, it disturbs the ecological
balance of the country (Page,
2011). In UK every year large
number of people come to visit
10

disciplines come in the mentioned nation.
Thus, UK is successfully developing itself
as global research hub. Apart from this it is
able to attract those people who prefer
Eco-tourism. It can be said that mentioned
sort of tourism create special image of UK
as tourist destination.
specific tourist destination.
Due to lack of proper disposal
of entire waste material
surrounding area aesthetic
reduces. Moreover, imbalance
comes in existence in natural
environment. Hence, it can be
said that to some extent
tourism put negative impact of
environment.
Social Here, when people travel in domestic and
international level for different purposes
such as business, adventurous etc, then it
increases the personal interactions of
tourists with the host country population
(Papatheodorou, 2004). However, such
interaction is also very effective in regard
to enhance the knowledge regarding the
culture and heritage of the host country. In
UK from varied nations people comes to
visit places. When two nations people
comes in contact, understanding about
each other culture and social values get
developed. This lead to development of
broad understanding and good relationship
between nations. Hence, it can be said that
travel and tourism industry also give social
benefits to the nation.
Further, it has various adverse
impacts as well upon the
society. For instance,
interaction of local community
to foreign culture may
influence them and they adopt
the same culture which affects
the local culture, traditions and
beliefs (Riege and Perry,
2000). UK is one of the major
tourist destination. In the
mentioned nation people
related to varied caste and
religion as tourist come like
Asian, Africa, European, black
and white etc. Their culture is
also different from each other.
In case people comes in
contact with each other than to
some extent they adopt other
religion culture. It can be seen
11

in the UK that Yoga is
followed by number of people
which is part of Hindu
religion. Some times one
culture greatly influence other
one. Due to this reason
domestic people leave there
culture value and ethics and
follow same of other one. Like
happen in India whee people
are increasingly following a
western culture. Such kind of
behavior affects the nation to
great extent. Hence, variation
or negative change in culture
that is related to specific
society badly affects the
nation.
4.2 Strategies that can be used to minimize the negative impacts while maximizing the positive
impacts
In order to minimize the negative impacts and maximizing the positive impacts of
tourism there are different strategies that could be implemented by the government authorities
which are as follows-
 Economic impact- UK government is required to encourage visitors from different parts
of the world to visit the country and thus provides positive impact upon tourism.
Additionally, public bodies are also motivated to organize different international events
in London and thus attract visitors from across the boundaries. Thus, it is essential for the
management to undertake effective marketing strategies in order to promote tourism in
London (Lynch and et. al., 2011). Further, in order to minimize the negative impact it is
essential for government to develop proper strategies so that leakage in the balance of
12

payment can be minimized so that it helps in preventing the incomes to move outside the
country.
 Environmental impact- Government authorities of UK is required to develop different
rules and regulations in regard to ensure environmental safety and protection so that
tourism places can be protected from any kind of damage. Also, public bodies organize
different training sessions in order to provide knowledge about the environmental
conditions and thus safety and security can be attained (George, 2010).
 Social impact- It is essential for UK government to launch different types of programs
and campaigns linked with the positive and negative aspects of tourism and thus aware
people in order to protect the society and culture. However, such programs can be
launched through effective platform such as television, internet and social media websites
and thus developing awareness among individual (Sloan, Kaufman and Legrand, 2012).
CONCLUSION
From the above study it can be assessed that travel and tourism industry is one of the
growing sector in terms of generating revenue and job opportunities. Also, it identifies that
development of advanced technology such as internet which helps in connecting different
overseas companies to provide best quality services and products to travelers and satisfy their
needs. The report also found that the tourism industry provides different positive and negative
impacts upon the host community. Therefore, it is essential for the government authorities to
develop proper strategies to minimize the negative impact and maximize positive impacts on
tourism.
13

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