Analysis of the Business of Tourism and Hospitality Report

This report analyzes the business of tourism and hospitality, using STA Travels in Australia as a case study. It explores the importance of tourism in local communities, specifically the Whitsundays and Great Barrier Reef, highlighting its contribution to the local economy and employment. The report conducts a PESTLE analysis to evaluate the macro environmental factors influencing the tourism sector, including political, economic, social, technological, legal, and environmental aspects. It examines how these factors affect STA Travels and the broader tourism industry, particularly in light of events like racial discrimination incidents. The report concludes by emphasizing the role of the Australian government in promoting tourism and retaining tourists through online media and addressing relevant issues. The report references key sources to support its findings and provides a comprehensive overview of the tourism business.

THE BUSINESS OF TOURISM AND HOISPITALITY
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Table of Content
Introduction......................................................................................................................................3
Importance of tourism in local community.....................................................................................3
Macro environmental analysis.........................................................................................................5
Evaluation of macro environmental factors.....................................................................................6
Conclusion.......................................................................................................................................7
Reference List..................................................................................................................................8
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Introduction
Whitsundays are a group of 74 islands located in northeastern coastal region of Queensland,
Australia. An extensive stretch of corals showing a massive collection of a wide range of marine
life is present in this island area known as the Great Barrier Reef. The place is mostly devoid of
habitants. In this assignment, STA Travels in Australia is considered as an example, and a news
article is presented based on the tour operated by this company in the Whitsundays and Great
Barrier Reef. Online media coverage is done of the entire tour in order to present the news
article.
Figure 1: Logo of STA Travels
(Source: Statravel.com.au, 2017)
Importance of tourism in local community
Tourism department of Australia has maintained a high standard in their tour businesses by
allocating adequate funding in their tour sector. STA travels, being a pioneer organisation in the
tourism sector in Australia, organize various adventurous tours in different regions of Australia
(Chu and Choi, 2013, p.366). Tour to Whitsundays and Great Barrier Reef is one of them. It has
been observed that tourism is a crucial component in contributing to the local economy. In 2016,
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6.1% of the GRP of Queensland has been added depending upon the tourism purposes in this
area (Kotler et al. 2006, p.52).
In addition to this, people in the neighborhood areas of Queensland do not have much exposure
to increase their economy, other than depending on tourism. As per Tourist and Transport
Forum, 2015, 34.4% of the total workforce of the state has been employed in the tourism sector
(Australia.com, 2017). STA travels has recruited many unemployed persons from this region and
appointed as a tour guide in their company. The native people are the best sources here to impart
knowledge about the different flora and fauna present in the area.
Figure 2: Share of Employment in Australian Tourism industry
(Source: Lee et al. 2013, p.53)
Customer segmentation is another important factor that STA Travels has taken into
consideration. This company generally focuses on organizing tours involving students of
colleges and universities on their excursions. Based on demographics of market segmentation,
the company has chosen their customers (Kotler et al. 2006, p.48). They have focused on the
college and university students ranging from age 16-21 and promoted their online tour service
via face to face communication and via online website.
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Macro environmental analysis
Tourism industry is such an industrial segment that is most susceptible to factors of the
environment. In the following, a PESTLE analysis is being done considering the micro
environmental factors that are most reactive in affecting the business of tourism sector.
Figure 3: PESTLE Analysis
(Source: Hall and Page, 2014, p.45)
Political
A stable political environment in Australia has helped in flourishing of tourism industry across
the continent (Filieri and McLeay, 2014, p.55). Tourism in a turmoil free environment has high
chances in attaining its peak. However recent racial discriminations in the country saw a major
setback in the tourism sector.
Economic
Economic factors are highly crucial in identifying the fate of tourism in a country. Australia
being a developed country generally faces a good economic condition. Labor market of the
country is high along with customer expenditure.
Social
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Lifestyle of people across the world is changing at an exponential rate. Tourism sector is facing
the most premium results. People are leaning towards private accommodations and availing
expensive services. Brand recognition among customers in constantly rising and the hotels are
modifying accordingly (Sabate et al. 2014, p.524).
Technological
In the recent days, technology is biggest influence in tourism sector. Communication and transfer
methods are highly affected by technological advancements. Technology is a relative factor here
as expanding their business by online booking and transportations are most used in tourism
sector.
Legal
Public security as well as labour is crucial concerns of tourism industry. There is much
challenges and legal pressure in tourism industry. This sector needs to abide by the laws of the
country they are operating in and also of other countries, where they are providing services.
Environmental
Weather conditions affect tourism sector in a great way. A good environmental condition helps
in good supply and demand of tourism.
Evaluation of macro environmental factors
On reviewing the different macro environmental factors, an evaluation of the effect of these
factors can be done. This reveals that recent political unrest regarding racial discrimination in
Australia has affected the tourism segment of the country in a negative way. The legal factors are
also subjected to the cause, since no steps were taken, when victims addresses the government
(Kotler et al. 2006, p.79). STA Travels in this context has faced a number of challenges in
conducting the tours since a large number of tourists from other continents switched to other
destinations after the incidents of racial discrimination.
Innovative strategies were taken by the Australian governments after such consequences in order
to retain their tourists in visiting their continent and enjoy their travel services. Racial
Discrimination Act, 1975 and Equal Opportunity Act, 19874 were amended, where it was clearly
mentioned that no further incidents of this matter would be entertained (Australia.com, 2017). In
addition to this the local government of the states also took initiative steps in inviting people
across the globe to enjoy the tourism service of Australia.
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Conclusion
Tourism industry plays a great role in enhancing financial growth of a country. In order to retain
tourists across the globe, Australian government needs to undertaker specific considerations in
promoting their tourist spots on a global scale via online media and invite tourist to visit their
country and avail the service of tourism department. Tourism sector is such a business segment
that is availed by more or less every person in the community. In this way, Australia can sustain
their tourism business and make people enjoy their tourism service in future.
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Reference List
Australia.com. (2017). Visit Australia - Travel & Tour Information - Tourism Australia.
Available at: http://www.australia.com/en-in [Accessed on 3 Aug. 2017].
Chu, R.K. and Choi, T., (2013). An importance-performance analysis of hotel selection factors in
the Hong Kong hotel industry: a comparison of business and leisure travellers. Tourism
management, 21(4), pp.363-377.
Filieri, R. and McLeay, F., (2014). E-WOM and accommodation: An analysis of the factors that
influence travelers’ adoption of information from online reviews. Journal of Travel
Research, 53(1), pp.44-57.
Hall, C.M. and Page, S.J., (2014). The geography of tourism and recreation: Environment, place
and space. Abingdon: Routledge.
Horner, S. and Swarbrooke, J., (2016). Consumer behaviour in tourism. Abingdon: Routledge.
Kotler, P., Bowen, J.T., Makens, J.C. and Baloglu, S., (2006). Marketing for hospitality and
tourism (Vol. 893). Upper Saddle River, New Jersey: Prentice hall.
Lee, T.H., (2013). Influence analysis of community resident support for sustainable tourism
development. Tourism management, 34(7), pp.37-46.
Sabate, F., Berbegal-Mirabent, J., Cañabate, A. and Lebherz, P.R., (2014). Factors influencing
popularity of branded content in Facebook fan pages. European Management Journal, 32(6),
pp.1001-1011.
Statravel.com.au, (2017). Home. STA Travel. Available from: https://www.statravel.com.au/
[Accessed on 3 Aug. 2017].
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