Contemporary Travel and Tourism Industry: Key Factors and Trends

This report provides a comprehensive analysis of the contemporary travel and tourism industry. It begins with an introduction to the industry's importance and scope, followed by a discussion of key milestones in its development, from ancient times to the present. The report identifies various elements within the industry, such as transportation, accommodation, and tourist attractions, and examines the factors that influence tourism behavior, including the global economy, social media, and personal budgets. It also explains motivational models, like Dann's and Plog's, and how they impact consumer decision-making. Furthermore, the report identifies recent trends in international travel and tourism and examines the factors affecting the popularity of various global destinations. The report concludes with a summary of the key findings and insights.

CONTEMPORARY
TRAVEL AND
TOURISM
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Discussion of Key Milestones in Development of Travel and Tourism Industry................3
P2. Identification of Different Elements of Travel and Tourism Industry .................................5
TASK 2............................................................................................................................................6
P3. Determining all the different factors that affects tourism behaviour....................................6
P4. Explaining models of motivation and how they influence the consumer decision making
process.........................................................................................................................................7
TASK 3..........................................................................................................................................10
P5. Identifying recent and emerging patterns and trends in the international travel and tourism
industry......................................................................................................................................10
TASK 4..........................................................................................................................................14
P6. Examining the factors affecting the popularity of a range of global destinations..............14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Travel and tourism is one of the biggest source of income and supporter of the economy
around the globe. Travel and tourism is a very important and huge part of hospitality sector and
services. Travel refers to the movement of individuals from one location to another in order to
explore the beauty and monuments of different locations. Individuals who are travelling are
known as tourist and this industry is known as tourism industry (Fürsich, 2019). Travel and
tourism also refers to the combination of all the activities which are undertaken by the people for
visiting different destinations in order to enjoy the leisure, adventure and spirituality of the
particular place. Tourism industry is one of the highly changing and dynamic service industry
which is very trendy as the increasing accessibility and digitalization. The report is divided into
two parts where first part is a briefing paper is developed for highlighting the keys historical
developments in the travel and tourism industry along with identifying various factors associated
with travel and tourism industry and interrelated with it. The second part of the report is
developed for Titan travel, which is a part of Saga group and is one of the most preferred and
popular tourism organisation in the UK. This part of the report focuses on the recent imaging
patterns and trends in international travel and tourism industry along with examining various
factors which are affecting the popularity of a range of destinations around the globe.
TASK 1
P1. Discussion of Key Milestones in Development of Travel and Tourism Industry
The world tour organisation (UNWTO), is a specialised agency of United Nations and the
leading international organisation in the field of travel and tourism. the world tour organisation
serves as a global form for tourism policy issue and instrumentation. It is one of the major
organisation playing a very vital role in promoting the development of responsible sustainable
and universally accessible tourism and travel industry. The world tour organisation pays
particular attention to the interest of developing countries by increasing the implementation of
global code of ethics for tourism and travel. There are several milestones which came into the
way of development of travel and tourism industry from early 90’s till now. In next section these
key milestones according to the period are discussed and elaborated. The world travel and
tourism council indicates and states that tourism is one of the main industry in the world creating
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more than 10% of the global economic outputs and where is job opportunities for local and
international individuals.
Before 1945
In ancient times and at the end of 16th century people living in agricultural era and
communities. They were stationary seldom moving song local area to rural communities (Zhou,
2019). Then at the time of industrial revolution in 18th century in urban factory development
scenario only is it an elite class enjoyed the travel and leisure and the workers but not able to
afford these services. Right to 1950 tourism was an industry which was inconsistent and
fluctuating all the different elements of 8 used to work separately from one another as that time
international trade and next business practices very low. All these different element of travel and
tourism industry such as accommodating unit and travel agents used to work independently.
1945-1979
From the year 1945 the main growth of travel and tourism industry and its development
started. The UK from the mid 1950’s the development of tour operators started changing their
characteristics by moving to integrated business practices rather than individual business
activities. For instance, hotels that are accommodation provides started dealing in other services
as well such as offering food and beverages and travel and tourism and many more services to
customers rather than just providing accommodation that is simply a room and bed. Hotel started
to develop range of services such as food shopping arcades and many more for increasing the
spend of guest within the land of the hotel complex.
1980 to current period
Once travel and tourism industry started developing and by the time of 1980 there is
different types of airline services but established serving full travel arrangements and packages
to people for their holidays. Other transports also started such as renting cars, Private charters
and many more. But in 1990 tourism industry specially of UK and Europe was affected due to
development of big companies. But in the result of air travel other travelling services improved
and evolved rapidly (Bento, 2019).
Future
The tourism business is huge help to the global economy development in the current and
in future. The increasing international trade and understanding between different countries
developing better relationship between varied economics which is the gift of tourism and travel
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industry enabling in developing more peaceful and internationalized universal society around the
globe. The involving technology and digitalization along with globalisation also contributed to
the expansion and innovation of travel and tourism industry. The increasing development of the
industry is enhancing Bose the education system and the position of tourism business in the
world.
P2. Identification of Different Elements of Travel and Tourism Industry
There are several factors and elements of travel and tourism industry which exist in it for
making the travel of visitor’s exciting and satisfactory (Cassar, Whitfield and Chapman, 2020).
There are numerous components which are present in tourism and travel industry combining
which it enhances the experiences of clients rendering them curated travel experience. The most
essential and major components of travel and tourism industry are as follows:
 Transportation is the mean by which people moves from one place to another according
to their pocket and preferences. Transportation is one of the most essential and important
element of travel and tourism industry as without it it's not possible to attract people
towards a destination. There are many different types of transportation system nowadays
for travelling to national or international places. These are airlines services, railway
services, group transporter, rent a car and many more.
 Accommodation is another very essential component of travel and tourism industry as
people visiting different destinations and places away from their houses or domestic
environment which feels like home for particular period of travel. The accommodation IS
rendered to people in form of hotels, motels, camps, guest houses, resorts, apartments and
stay homes. These accommodations are marketed privately and through the tour operator
in a form of package (Prakash and et. al., 2019). The direct marketing and promotion of
accommodation requires a huge amount of money and investment on advertisement on
the other hand tour operator guarantee is the occupancy rate throughout a peak season
related to the destination. Beas accommodation providers also take care of catering needs
of people providing them best quality food and beverages inform of various outlets,
cafeterias and in house or in a form of galleria.
 Tourist attractions is basically establishing the need for attraction in a particular
location or destination for inviting more footfall who is the principal of tourist attraction.
There are different tourist attractions available in separate destinations such as huge
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theme parks, museums, any heritage buildings or infrastructure and exceptionally evolved
and unique architecture and some art galleries. It depends on the economy and the
country for having different tourism attractions. Many places and countries have number
of visitor attractions in the area to widen their appeal and attract huge potential tourists.
TASK 2
P3. Determining all the different factors that affects tourism behaviour
There are several different factors that affect travel and tourism behaviour of an
individual a group of people. These factors are very necessary and essential to be tracked and
determined by different hospitality and tourist organisations potentially attracting the attention of
clients for guests towards their services and offerings (Dogru, Isik and Sirakaya-Turk, 2019).
The various factors which affect the year of travel and tourism industry are as follows:
 Global economy- According to world travel and tourism council global industry was
declining in the past as the result of struggling economies. It was suggested that as the
economy bounces back the in travel and tourism industry will also gain its boom stage
and will grow faster. Travel is often seen as a luxury and a lot of investment activity and
many people are earning less and saving more to the struggling economy they
automatically eliminate travel from their budgets. As the world economy struggle in past
years the travel and tourism industry also suffers. It implies that global economy places a
very important role in determining the behaviour of tourism industry as people and
customers buying behaviour change accordingly and according to their earnings.
 Social media- Another very important factor affecting tourism industry is social media
and internet. Nowadays with increasing digital technologies and easy access to internet
customers make many of their decisions and develop their opinions with their research.
With the help of Internet, it is very easy to gather all information and it also effects the
tourism industry. Nowadays people make use of digital tools for comparing different
destinations and travel packages as all sorts of information is available on the Internet in
just few clicks. Social media is a huge platform for conducting marketing and
promotional activities which plays a very important role in consumer behaviour and
buying patterns along with affecting the behaviour of travel and tourism industry.
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 Personal budgets and references- As travel and tourism industry is increasing the trend
of it is also evolving and now personalized experience and fulfilling all the desires of
customers is the main motive of different hospitality providers. At the time of bad
economy some people still want to travel and explore different destinations therefore,
person budgets and references plays a very important role in influencing the behaviour of
travel and tourism industry. The savvy travellers find out many ways and different offers
or deals online which helps them to cut their cost and enjoy their holidays. Therefore, it is
very important factor influencing tourism and travel industry behaviour as nowadays
travel is no longer depend upon the standard prices of transportation and Accommodation
the now make the choices according to their preferences and prices available.
P4. Explaining models of motivation and how they influence the consumer decision making
process
Motivation dresses to increasing encouragement and enthusiasm of people towards
different luxury activities and destination. It is one of the most essential tool used by
organisations and travel and tourism industry businesses to influence the decision making
processes and buying behaviour of customers (Pencarelli, 2019). There are several models of
motivation which can provide insight in relation to determining the behaviour of individual
towards a particular destination. In this section to motivational models are discussed which are
Dann' tourism motivational model and Plog' motivational model.
Dann’s tourism motivational models
According to this model of motivation it states that there are numerous elements within tourism
and travel industry which allows and motivates an individual to accomplish self recognise needs
and desires. Hence there are two motivational theories which are known as push factor and pull
factors.
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 Push factor refers to needs and motivational factors such as adventures comma
recreation escapism etc. These few does which increases an individual to fulfill their
socio- psychological needs.
 Pull factor seeds and refers to those elements which automatically attracts the
individuals towards them and related to the services and everything. These Motivational
factors are service quality infrastructure of the destination and the travel to the
destination.
Plog's motivational model
This motivational model is divided into three broad categories which highlights the tourism
behaviour.
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Figure 1: WHY DO PEOPLE TRAVEL?,2020
 Allocentric individuals’ behaviour is positively influenced towards new experiences and
adventures and their incline towards exploring different destinations.
 Psycho-centric people are exactly opposite of allocentric people as their interest are
developed towards those locations and places where they could have quality time with
families with appropriate accommodation and best quality services.
 Mid-centric individuals are the mixture of both the above kind of people as their
behaviour can be influenced towards either of the two types of destinations.
TASK 3
P5. Identifying recent and emerging patterns and trends in the international travel and tourism
industry
Travel and tourism is the world’s biggest industry and amount to words the development
of economies present around the globe. The travel and tourism industry is widely dependent
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upon the vacations and leisure. Travel and tourism industry is increasing announcing rapidly
contributing approximately 10% of the total GDP and continuously growing at very fast pace.
Travel and tourism industry is evolving creating wealthy opportunities for the businesses along
with few challenges over the period. Some of the patterns and imaging trends of travel and
tourism industry are as follows:
Patterns of travel and tourism industry
 Inbound visitors- Travel and tourism industry is international and national both,
international arrivals are where tourist travel across international borders into the
countries for vacation (Cohen and Spector, 2019). The other hand domestic arrival is
where tourist travels within their country for exploring places and destinations. The
inbound visitors are those persons who travel from their domestic country to international
water bodies for more than 24 hours but less than few months. It has been noted that
international tourism arrival as well as tourism receipts have been increased since 1995
for inbound visitors for the business purpose as international trade is increasing due to
globalisation and digitalization which has positive impact on travel and tourism industry.
 Outbound visitors- The outbound visitors comprise actions of resident of particular
country travel to staying in places outside the country and the usual environment for less
than 12 executive months for the purpose of leisure or business. In general majority of
international travels takes place in travellers uncomfortable region but some sources of
market for international tourism states that increasing disposable income and the resulting
expansion of middle class society worldwide international travel has shown rapid growth
(Saarinen, Rogerson and Hall, 2019). Many emerging economics and rapid growth of
travel and tourism industry in advance economics such as Asia, Eastern Europe, Middle
East, Africa, Latin America and many more shoes increase in international arrivals.
Thus, the travel and tourism industry is benefited positively as inbound visitors is
bringing more and more business and revenues. Also, through Outbound visitors as well the
travel and tourism industry is positively impacted as the companies get more international
exposure which is beneficial for them to increase their trade in future as better relations are
developed and company has little idea of the external and new environment.
Trends of travel and tourism industry
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According to ADI, 2018, travel and tourism industry is enhancing travel arrangements are
nowadays made online. Also it proves that the present global travelling industry face is multiple
challenges and enhances the need for fulfilling and meeting the needs and desires of customers.
There are various business trends establishing and emerging in travel and tourism industry
impacting the business and overall growth. These trends are elaborated below:
 Personalization- The travellers your customers around the globe admit that standard
travelling process is not enough in current scenario. The customers looking for more
personalized and curated experience while travelling to different destinations. Their food
Titan travel have to consider make use of more personalized approach for rendering a
unique experience to their guests. Personalization has become the first priority of the
businesses in travel and tourism industry which is being adopted by various progressive
brands offering customised and personalized services to their clients. This is a new
commercial trend which is beneficial for everyone but economy will be struggling as
existing traditional travel and tourism service provider will go out of business and people
are getting affected. The trend offers new knowledge and information for businesses and
enable in increasing the database of travel companies and industry which is helpful for
future exposure of the industry and for making arrangements for developing better
services for satisfying consumers.
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 Recognition technology- The high technology of recognition includes fingerprint, facial
recognition retina scanning and other biometric identification methods (Basri, Anuar and
Aminudin, 2019). Aviation technology face recognition has greater potential for the
travel and tourism industry. The main aim of purpose of this allergy is collecting all the
data and identifies the personality of the traveller. Technology can be used by Titan travel
for rendering personalized experiences and services to their clients by storing the data
and some clicks gaining all the information about the client. It will enable the
organisation to appropriately bifurcate their customers and reward their regular customers
with some special customised services. Due to increasing use of technology many
physical travel and tourism service providers are losing their business and moving to
virtual platforms which is saturating the market and making it more competitive.
Technology will be rendering ease to the industry and to consumers. People can make
their booking in just few clicks and in just few minutes. On the other hand, the travel and
tourism industry will be seeing huge increase in their revenue and profit units as online
platforms and digital means reduces costs and improves profit units.
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 Online booking- Digitalization and technology advancement is taking place in all
different business sectors as well as in travel and tourism industry. Online booking is one
of the great example of digitalization where potential clients can make their bookings
online through internet and accessing online applications. Titan travel can make use of
this emerging trend as many of its competitor has already adopted this technology
(McGregor and Robinson, 2019). A company can develop its own personalized online
platform with the help of its official application. It will enable the organisation to make
their bookings, store their data of their customers and most importantly rendered them a
personalized travelling experience. It will also work as a great promotional tool for the
business making the most from the evolving trends also in impact decision making of
customers in a very potential manner. Online platforms are great way of increasing
revenues and rendering ease to consumers but physical stores and retailers are losing their
businesses due to it. Nowadays, people do not prefer to go out and make their bookings
which make them dependent on technology as well. The travel and tourism industry is
positively impacted through these online booking services as data is stores which enable
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in making future predictions and majorly to study the behaviours of customers and it
keeps them attracted and encouraged.
TASK 4
P6. Examining the factors affecting the popularity of a range of global destinations
The popularity of different travel and tourism destinations is affected by range of
different phases and factors. Every destination is different from one another which is popular for
its respective characteristics and features that showcases the major attractive elements for
travellers to visit the place and enjoy their vacations. Some of these factors are as follows with
respective examples:
 Beauty and Relaxation- There are travellers who take vacations for enjoying the natural
beauty of nature and atmosphere. People are stressed up from their lives and by vacation
they mean relaxation. This factor induces the popularity of a tourism destination, for
example, Australia and Sri Lanka is famous for its scenic beauty of green jungles and
ocean. The destinations are most often visited by people for enjoying their time and
having peace.
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 Exploring the art and history of the place- Travellers of many types and can be
attracted to the destination for various factors one of which is art and architecture of the
place. For instance, Egypt is visited by explorers and most probably scientist for
exploring the art of the pyramids and other Egyptian tools. The explorer is not attracted
by the beauty but because of the science and art factor.
 Spiritual relief- Many visitors travelling to places is due to the popularity of the place in
spiritual basis. Travellers go to places for finding their spirituality and for knowing the
facts behind their believes. For example, India is known to be a holy place for people
who are in search for their true self. Many international tourist visit the country for
gaining knowledge about the numerous spiritual facts and enjoying its positivity.
CONCLUSION
Herein the above report it is summarised that tourism is a highly essential activity as well
as a large industry which is needed to be regularly analysed and evaluated for determining
different facts and functions of the business sector. The key milestones and different elements by
which travel and tourism industry is affected are evaluated for understanding the evolution of
this industry and different operations within it. Long visit tourism behaviour is also understood
and analyse in order to understand the preferences of people and development of industry. At the
end recent emerging trends and patterns of travel and tourism industry are examine along with
the factors affecting the popularity of global destinations. It enabled in gaining a global insight
on the aspects that affect the current environment of the travel and tourism industry.
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REFERENCES
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Cohen, E. and Spector, S., 2019. Transhumanism and cosmic travel. Tourism Recreation
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in Sri Lanka. Journal of Outdoor Recreation and Tourism. 25. pp.102-112.
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