Examining Contemporary Issues in the Travel & Tourism Industry

This report provides a comprehensive analysis of contemporary issues driving change in the travel and tourism sector, focusing on the negative impacts of terror attacks, national and international laws/legislation, and the Euro debt crisis on European tourism. It examines these issues using appropriate methods and resources, including a detailed analysis of BREXIT and extreme weather threats in London. The report evaluates current trends influencing the sector, presenting the latest statistics on tourist numbers and key tourism markets, including an analysis of the UK's inbound and outbound tourism trends with charts and tables illustrating travel patterns and spending habits. Furthermore, it explores strategies for Whitbread businesses, such as Premier Inn & Restaurants and Costa, to respond to change, employing SWOT analysis to develop effective business strategies. The report concludes by emphasizing the importance of adapting to external factors and implementing proactive measures to ensure sustainable growth in the travel and tourism industry. Desklib provides solved assignments and study resources for students.

Contemporary issues in Travel & Tourism
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Table of Contents
1.Introduction.............................................................................................................................3
2.Task 1......................................................................................................................................4
3.Task 2......................................................................................................................................6
4.Task 3....................................................................................................................................13
5.Task 4....................................................................................................................................15
6.Conclusion.............................................................................................................................17
References................................................................................................................................17
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Introduction
Tourism is travel of people from his native place to the new places at least at a distance of 40
miles where traveler can stay that place and enjoys activities over there. Tourism is basically a
journey from one site/location to another site/location for various reasons. There has no any
particular limited reason for tourism; it can vary over the situation and time.
 Person can travel for the educational purpose,
 Person can travel for some beauty, attraction and magic of places,
 Person can travel for seeing art and craft of places for learning purpose,
 Person can travel for exploring the new places and destination,
 Person can travel to know about the culture of another places,
 Person can travel for gathering the historical data or information and
 Person can travel for business purpose.
As per the research and trends, it is noticed that, tourism influences the social, economic and
environment such as –
 Tourism generates the earning of local public in that tourist places
 Tourism generates employment of people in that tourist places
 Tourism generates tax in various tourist places
 Tourism supports for infrastructure and development.
Tourism is basically an industry of service. It include the service of -
 Transportation
- Rail transportation (trains), water transportation (cruise ships), air transportation
(Airlines) and road transportation (Taxi, car etc.)
 Accommodation services and
- hotels, entertainment venues, and restaurants
 Other hospitality services
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According to the research, in this recent year, there are many current issues are introducing in
travel and tourism sector. This project is all about the concept of analyzing different issue and its
impact on travel and tourism sector.
Task 1
1.1 Analyze issues currently driving change in the travel and tourism sector. You have to
include at least three issues and give a detailed explanation of the issue and its impact
on the travel and tourism sector.
Issue 1# Terror attack: negative impact over European tourism
The most threatening factor of travel and tourism sector is terror attack. In Europe, for last three
years there are many terrorism attacks ‘news they have received. This attacks influence the
behavior of travelers.
 In 2016, the residents of Spain were avoid their planning of summer vacations to Egypt
and Turkey due to the fright of terrorism attack (Zhang and Song, 2018)
 In 2016 (March), Brussels terror attack affects the destination of Rome, Berlin and Paris.
According to the survey, it is noticed that flight searches and flight bookings to Brussels
unavoidably dropped and it is the long time impacts of different tourism industry as well
as other industries (Shalander et al, 2017).
 In 2015(November), the terrorism attack of Paris has also affected the tourism sector. As
per the survey, it is notices that, situation is still unstable. The number of international
tourist of night spent in the city was lower than before after that attack.
Issue 2# National and International law/Legislation: negative impact over European
tourism
As an assistant manager for a UK based tour operator Titan Travel, it is required to keep in
mind that different countries have various laws. Titan group has to follow all the guidelines
structured by government of this country. Internationally, in recent days, UK suffers competitive
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price in different sectors. This competitive price impacts over the travel and tourism sector
(Shalander et al, 2017).If the travelers from European Union states are needed to have visas, the
Union states is also need Britons traveling to Union states to have visas. This can create
disincentive to and from the UK. It affects the holiday package of Titan Travel group.
Issue 3# The Euro Debt Crisis: negative impact over European tourism
Britain stands in the front line in terms of euro crisis. Russia, Japan, India, China, US and other
major countries are included in the massive market of Euro zone. China is the country who lends
money to Europe. The crisis of Euro debt collapses the system. According to the report, near
about 344 million Europeans use this Euro daily basis (Zhu et al,2018 ). Therefore, they will less
able to buy items. Governments are unable to repay the crisis of this Euro debt. As a result,
financial crisis has been noticed in UK. Therefore,
 Investors will think twice to invest again in market
 Cut jobs
 No more staff recruitment
1.2 Analyze different current issues using appropriate methods and resources. You should
analyze at least two different current issues using appropriate methods and resources
in depth. You can for example, analyze the impact of political unrest in the Middle
East and North Africa, terrorism and counter-terrorism measures, responsible
tourism, severe weather, BREXIT, weaker pound sterling, rise and fall of inflation
local and international laws
BREXIT analysis:
BREXIT means Britain and Exit. The main issue behind BREXIT is that the British
banks currently have the EU passport that large than to provide financial service
throughout in European Union. This will great impact on the political, cultural, social and
economic status. There is many reasons in this current issue. The main contention was
economic.
 EU established the Fiscal compact and wants to tight control over the national
budget but Britain was to agree with this rules (Shalander et al, 2017).
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 Germany imposed tax named Tobin Tax on financial transaction but London was
not comfortable to this.
EU is the massive market of UK’s import and export business. After BREXIT the
economic condition was not as before. As a result economic turbulence is occurred
UK and also affect on travel and tourism sector.
Extreme Severe Weather Threat in London:
Weather is another most important threatening factor in London. Over the year, UK
becomes drier and warmer. This will affect on the health of human being. Diseases and
different health issue are spreading like a wave. For that reason, developer developed one
important device in epidemiology named satellite data, which used as a substitute source
of exposure information or data of environment.
Task 2
2.1 You should evaluate current trends influencing change in the travel and tourism
sector. Your information pack should include latest available statistics regarding the
number of tourists and main tourism markets. You need to make use of charts, data
and text tables created by the student.
According to the research, current key trends of UK are- UK domestic or inbound tourism
and UK outbound tourism.
Inbound visitor statistics for 2017
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October 2017 August-October,2017 January-October,2017
% Change
Vs
October,
16
% Change
Vs August-
October,
16
% Change
Vs
January-
October,
16
All Visits 3150 -6% 10,120 -1% 33,250 5%
Spend £1,920 1% £7,230 6% £20,940 10%
Nov,16-Oct,17 Benchmark to best ever rolling 12 months
% changes Vs
Nov 15-Oct
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When Record Current
Deficit
Total Visits 39,340 7% Sep,16-
Aug,17
39,590 -250
Spend £24,460 10% Nov,16-
Oct,17
£24,460 0
The number of tourists and main tourism markets
As per the recent survey, it is stated that, Spain has stood in front of the line with near about
14.68mn from UK, 2016. France hold the position of second with 8.54mn and Italy has
followed France with 4.09mn.
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Figure: Top travel tourism market in UK
[Source: Pham et al, 2017 ]
Travel trends of the UK
Chart presentation of 5 years travel trend of UK
Figure: 5 years travel trend of UK
[Source: Zhang and Song, 2018]
Table presentation of 5 years travel trend of UK
Total Number of Tourists Visit
2016 70,814,780
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2015 65,719,911
2014 60,081,883
2013 57,792, 474
2012 56,537,596
The Yearly spending amount in UK
Chart Presentation of Total amount spent every year by UK tourists
Figure: Total amount spent every year by UK tourists
[Source: Zhang and Song, 2018 ]
Table Presentation of Total amount spent every year by UK tourists
Average Spend Per
Visit
Average Amount
Spend UK per day
Total Amount Spent
Abroad By British
Tourists
2012 £573 £55 £32.4bn
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2013 £597 £57 £34.5bn
2014 £591 £578 £35.5bn
2015 £594 £57 £39.0bn
2016 £618 £60 £43.8bn
2.2 Your company wants to expand into the niche tourist market. You should analyse a
current trend using appropriate techniques and resources and produce a poster to be
included in your information pack. You need to analyse one niche tourism market and
provide detailed description about it, including reasons for its increasing popularity,
and most recent travel statistics. You should include data and text tables, and charts.
Modern strategy influences the market of travel and tourism industry.
 Develop Public Transport
Public transport facility can encourage more travelers. This facility increases revenue
in Titan tourism organization. Tourist prefers pick and drop facility at home. If the
organization facilitates this system then it is expected this facility will encourage the
travelers more (Zhang and Song, 2018).
 Spread Campaign
The modern strategy in tourism marketing is to spread well campaign all over the
world. It can helps to provide necessary information to the travelers about the various
new services.
 Reinvest for development
As per the hotel statistic summery report, it is stated that reinvestment can use
development purpose. It can improve the financial position of UK as well as tourism
sector.
 Improve visa service
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Government should reform the visa service for travelers. If this travel and tourism
sector can develop then financial growth also increased in that state.
 Tourism promotion and advertisement
Promotion and advertisement is very important for attracting tourist and development
of state. Titan Travelers has to focus more on promotion and advertisement strategy.
Task 3
3.1 Analyze how Whitbread businesses could respond to change.
External Factors influence Whitbread businesses
Whitbread is a member of brands, which can provide hospitality of business in one form or
shape. The external factor that influences the Whitbread business are follows-
 Globalization
The ultimate reason of globalization is economy and culture. Economy is the important
factor to affect the Whitbread because countries always fully depend on another country.
Therefore, if any country faces economic recession then it automatically turns to the other
country (Kumar et al,2017). Cultural reason also influences the Whitbread business
because in UK various communities and cultures involve. This variety can bring the
recreational activity and variety of food.
 Economic Status
Economic statuses can great impact on the overall Whitbread business because people
can lose their jobs due to economic recession. Recession is greatly involved in tourism
sector as well as other sector because in recession period people can lose their job or lose
their job security so they want to save money and stop spending money over luxury
things like going on travels or trips, primary recreation, and eating at restaurants (Bower,
2018).
 Political Status
Political condition also affects the Whitbread business. It involves some government rule
and regulation, legislation. Good political image can improve the business and negative
political image can down the business (Cheshire and Hay, 2017).
 Environment status
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Environment condition also affects the travel and tourism sector. As per the research, it is
stated that in rainy season tropical resort loses their customer (Zhu et al,2018 ). In winter
snowfalls also affects the Whitbread business. According to the survey, it is noticed that
due to snowy and frosty weather across UK tourist r people did not able to go out.
3.2 Develop strategies on how Whitbread businesses such as Premier Inn & Restaurants,
and Costa could respond to change. You need to select and develop strategies for at least
two Whitbread businesses. Provide a detailed explanation of your strategies.
Before developing strategies in Whitbread business, it is required to analyze the SWOT. SWOT
analysis is very important tool to develop the new business strategy because it can develop the
strength, circumvent the weakness, capitalize the opportunity and manage the threats (Cheshire
and Hay, 2017).
S-W-O-T
S- Strength
 Brand name
 Eco friendly
 Market share improvement
 Cultural diversity
 Various types of travelers visiting UK
 Global Diversity
 Large chain in tourism hospitality
W- Weakness
 Political condition
 Environmental condition
O-Opportunity
 A developing market service such as internet services
 Moving into new market segment that improved profits
 Joint venture, merger or strategic alliances
T- Threats
 Number of competitors increase
 Taxation is introduced in different sector
 Political factor increase
 Terrorism attack
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After analyzing SWOT in Whitbread business, it is proved that Whitbread PLC Hotel has to
response according to changes of market and business environment. The effective and ultimate
strategy is adaption of new methodology and creation of current product and service (Kumar et
al,2017). This hotel has to capitalize the marketing mix and adapt modern and smart technology
to compete with the dynamic market demand.
3.3 Justify strategies for how selected Whitbread businesses Premier Inn & Restaurants,
and Costa could respond to change. You should justify strategies you have given in 3.2.
The ultimate strategy for improving Whitbread PLC Hotel that is already discussed in 3.2 tasks is
adaption the new technology or methodology and creates modern or new products and services.
This strategy is helpful to attract the new customer and also retaining the existing ones. As
discussed before that Whitbread, business has to capitalize on the modern strategies of PEST
(Political-Economic-Social- Technological) and SWOT (Strength, Weakness, Opportunity and
Threat) analysis to grasp the opportunities and to deal the various challenges in travel and
tourism sector (Pham et al, 2017). Creating different types of product is the massive option for
the customer. No one can prefer limited option to choose anything. According to the customer,
demand and taste variety of product should be created. Variety of product with different price
will be the new option for the low and mediocre income customer. Formation of good relation
with customer is the basic step of travel and tourism market and creativity with product and
service can attract the customer in their business. Therefore, this modern strategy is defiantly
justifying the changes of Whitbread business Premier Inn & Restaurants, and Costa.
Task 4
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism
sector
Dynamic level of travel and tourism sector is considered to have impacts on the social
environment of the tourism destination.
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Merger: In Trail finders Ltd a privately owned tour operator with 32 travel centers located
throughout the UK and Ireland and over 1000 staff. This merging process can helps to merge two
centers into one single center (Bower, 2018). There will be one common center who control both
the centers. For example, this common center will collect data from UK branch as well as Ireland
branch and represent the one single data in terms of Trail finders Ltd. Otherwise it cannot be
possible handle data of both branches.
Structure of employment: As per the report, in Trail finders Ltd a privately owned tour
operator with 32 travel centers located throughout the UK and Ireland and over 1000 staff. It is
required to manage the structure of employment. If the employment structure is not followed by
this company then different types of challenges has to face (Cheshire and Hay, 2017). According
to the market, demand and creativity proper management should be there based on the proper
skill. As the worker of strategy development team it is required to apply modern strategy based
on the proper utilization of skill.
Inclination of service and products: In competitive market, every company focuses on their
product and service. Therefore, Trail finders Ltd is required to focus more on creativity on
product and service. Only creative thinking or application can separate this company from other
companies. With the creativity of product and service, this company has to focus on the price. It
is keep in mind different categories of people is involved in tourism sector. Therefore, great
service, creative product and reasonable price will be the ultimate choice of customer (Zhu et
al,2018).
Adopted Technology: Adapt the technology is another useful thing in today’s competitive
market. Modern technology can open various ways of development. Modern technology and its
utilization can develop the tourism sector. Trail finders Ltd believe that modern and smart
technology only can creative product and service in advanced way.
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4.2 Discuss the likely consequences of businesses failing to respond to market change.
This is very clear that Trail finders Ltd organization has to adjust and manage the different
changes appear in the tourism sector. This section will discuss the consequence of business
falling of Trail finders Ltd organization to respond to market change.
Reduction of profit margin: Failure by Trail finders Ltd organization to respond of the changes
of market such as recruiting qualified employees, adopt the modern technology, and distinguish
their product and service from other competitive organization will reduce the profit margin. As a
result, customers are unsatisfied and unhappy hence unable to embrace the service and products
of Trail finders Ltd (Pham et al, 2017).
Formation of bad image: This reduction of profit margin affects the bad reflection of brand
image of this Trail finders Ltd. This means Trail finders Ltd organization fails to advertise and
sell their products and service (Zhu et al,2018).
Conclusion
This project is all the concept of different case study based on the travel and tourism sector. This
project analyze the different current issue and it impact. This assignment is also analyzed SWOT
and PEST analysis and discussed different methodology.
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