Analysis of Contemporary Issues in Travel and Tourism - Report

This report delves into the contemporary issues shaping the travel and tourism sector, focusing on the challenges and opportunities faced by businesses, particularly in the aviation industry. It examines factors such as technological advancements, security concerns, market dynamics, and infrastructural development. The report analyzes these issues using appropriate methods and resources, including a SWOT analysis of International Airlines Group, and explores strategies to respond to market changes, such as adapting to technological advancements and focusing on inbound tourism. It further assesses the potential impacts of these issues and the consequences of businesses failing to adapt, providing a comprehensive overview of the sector's current state and future prospects. The report also includes a detailed analysis of the UK tourism sector, its main attractions, and the factors driving change. It also emphasizes the need for responsible tourism practices and the importance of environmental awareness and health considerations for tourists.

Contemporary Issues
in
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis of issues currently driving changes in the travel and tourism sector.....................1
1.2 Analysis of different current issues using appropriate methods and resources....................2
TASK 2............................................................................................................................................4
TASK 3..........................................................................................................................................10
3.1 Analysis of ways to respond to change by International Airlines Group...........................10
3.2 Strategies development for selected businesses to respond to change................................11
3.3 Justification for strategy selection.......................................................................................12
TASK 4..........................................................................................................................................13
4.1 Analysis of impacts of issues and trends that drive change in the travel and tourism sector
...................................................................................................................................................13
4.2 Likely consequences of businesses failing to respond to market changes..........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Tourism is a industry which is a combination of many other individual industries to
provide better services and offers to its customers. The term tourism involves travelling for
pleasure, business, etc. It not only includes travelling but also includes accommodation, touring,
and entertaining activities for the customer (Moutinho, ed., 2011). It also combines other sectors
to provide maximum satisfaction and memorable experience to their tourist. It can be in the
local vicinity of the country or outside the country depending upon the choice of destination and
purchasing power of the customer.
The aviation industry is directly related with travel and tourism sector as it provides
travel facility to the customers. The aviation industry is a main part of the industry along with the
other means of transport such as cruise, railway, etc. and other features of the service include
accommodation and tours in destinations (Evans, Stonehouse and Campbell, 2012). A major
airline company, International Airlines Group formed by British Airways and Iberia in 2011. It is
a UK based company with the rank of sixth largest airline in the world. The aviation company is
facing challenges in the current situation which can only be resolved by forming proper
strategies. In the report, challenges faced by the travel and tourism companies and techniques to
identify as well as to respond to them are explored. The tourism companies in UK are prone to
impacts of the changes in the aviation sector and they need to develop strategies accordingly.
TASK 1
1.1 Analysis of issues currently driving changes in the travel and tourism sector
Travel and tourism is a fast growing industry and is a major source of revenue in many
countries. . UK is considered as a main attraction for tourists around the world. Tourism is a
major element in country which contributes heavily in the economy and cultural development. It
registers a large number of tourists every year. The local government has put efforts in
developing tourism places and preserving heritage of the country (Wachowiak, ed., 2016).
People travel in this country because of various reasons such as business, education, leisure etc.
There are some major tourist destination cities in the country which contribute a large portion of
revenue. The main factors driving change in this sector are:
Technological development: It has major impact on travel and tourism of a country. It
simulates communication and connectivity between various countries which provides more
options to people to explore while choosing a tourist destination. Technology creates awareness
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among tourist about the new and old destinations for the tourism and provides various ways to
travel and stay in the place (Spenceley, 2012). It also helps the countries to promote tourism and
increase the revenue. UK is considered as one of the most visited country for tourism as well as
business purpose due to various technological changes such as mobile technology, social
networks, online operations, etc. These changes have affected the search process and sources for
receiving information which adds to the various ways to approach the potential customers for
the company.
Security: The need for security has increased in all places over the world due to frequent
terrorist attacks (Connell, 2013). It reduces preferences for such destiantion to be selected by
tourists. The main concern for tourist is that the place should be safe for themselves and their
families. The attacks in UK targeting the tourism places such as London, Birmingham,
Manchester, etc. in past many years have made people more concerned for their safety before
travelling to any of its cities..
New markets: The emergence of new markets in UK has triggered more investments in
the country resulting in more people travelling to the country for the business purposes. The
increase in business prospects in a country attracts more investors and companies leading to
economical and infrastructural development of the place (Dickinson, Lumsdon and Robbins,
2011).
Increased air fares: The increase in air fares as a passenger duty and tax in UK has
caused decrease in the number of tourists. number of. The increase of 10 percent in the rates can
lead to cancellation of travel plans reducing the revenue as compared to previous years.
Education: As the world is becoming more connected, people are getting more aware
about education and qualifications. This enables them to travel to other countries to obtain better
education and degrees. It creates a diverse environment for the students and develops the socio
culture. UK receives a large student base from foreign regarding various degrees in colleges.
Infrastructural development: The development of the infrastructural facilities of a country also
leads to increase in the economy and tourism activities. It creates better lifestyle and
opportunities for the people (Pritchard, Morgan and Ateljevic, 2011).
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1.2 Analysis of different current issues using appropriate methods and resources
The current issues in the travel and tourism sector should be identified by using proper
methods and resources. Even though tourism industry is rising and generating large revenues, it
has some factors which should be considered before selecting a tourist destination (Crooks and
et.al, 2011). The large number of tourists increases the risk of exploitation of natural resources
and ecosystem of the place. With excess use, these natural resources can get depleted faster than
expected leaving the people to bear the effect of loss. These resources are the main source of
attracting tourist to the place and after loss of resources it can repel the tourist.. It can affect the
bio diversity of other living creatures in the same area leading to the verge of extinction for some
creatures and driving them to vicinity of local people.
Environmental awareness: The major issue for the tourist destinations in the country is the issue
of environmental awareness among the tourists. The exploitation of the natural resources to
provide facilities to the tourists results in depletion of the resources faster than expected leaving
the locals to bear the effects. The environment of any place is its core which should be valued by
the people living in the area or visiting the place (Kang and et.al, 2012).
Health issues: For tourists travelling to any destination, health is a prior concern as it
includes the health of self as well as the people travelling with him. The increasing pollution and
bio hazardous places needs to be identified prior to the visit in the country. These factors are
leading to decrease in the tourist levels of the country as people are becoming more aware about
the health and safety issues.
Responsible tourism: It is a form of tourism in which enables people to create better
place to live as well as visit. It includes minimizing the negative aspects of tourism on economy
and environment, creates better community and lifestyle, provides enjoyable experience to the
tourists while maintaining a clean environment, making contribution to the society for
betterment, etc. This activity makes a positive impact on a destination rather than exploitation of
the resources (Dickinson and et.al, 2014).
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TASK 2
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TASK 3
3.1 Analysis of ways to respond to change by International Airlines Group
International Airlines Group being in the travel and tourism industry needs to analyse the
market trends and demands to plan the strategies accordingly (Hall, 2010). The strategy
development team is responsible for creating the accurate and flexible strategies for the company
in order to cope up with the dynamic market while satisfying the demands of the customers. To
respond to the changes in the market company needs to perform a SWOT analysis of its strengths
and weaknesses to get an overview for responding to changes.
As per the decision of UK government to opt out of European Union, the impact of this
will be seen in a few years but as an impact on the tourism industry the air passengers will be
reduced by 3-5 percent due to the downfall in economic activity. This will show the impact in the
long run for the country (Hartmann, 2014). The decision has not only affected the tourism sector
it has also decrease the value of currency. Weaker the currency the more chances of decrease in
tourism activities are ascertained. As it affects the purchasing of the people in the country and
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