Contemporary Travel and Tourism: Industry Analysis and Forces

This report provides a comprehensive analysis of the contemporary travel and tourism industry. It begins by exploring key milestones that have shaped the industry's development, examining how historical events and technological advancements have influenced travel patterns and consumer behavior. The report then delves into the core elements of travel and tourism, highlighting their interrelationships and impact on the tourist experience. It further investigates the various forces, including social, cultural, and geographical factors, that influence tourism behavior and decision-making processes. Additionally, the report examines motivational models and their role in consumer choices. Finally, it evaluates recent and emerging trends in international travel and tourism, assessing the forces affecting the popularity of various global destinations. The report offers a detailed overview of the industry's evolution, current state, and future prospects, providing valuable insights for students and professionals alike.

The Contemporary
Travel and Tourism
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 .................................................................................................................................................1
P1) How key milestones contributed in shaping travel and tourism industry as well as in
development. ..............................................................................................................................1
P2) The distinguished elements of travel and tourism and their interrelation to create tourist
experience. .................................................................................................................................5
LO 2.................................................................................................................................................6
P3) Examining the distinguished forces affecting the tourism behaviour and it's impact on
decision making. ........................................................................................................................6
P4) Understand the models of motivations and how they influence consumers decision-
making process. ..........................................................................................................................7
LO3..................................................................................................................................................8
P5) Evaluating recent and emerging patterns trends in international travel and tourism. .........8
LO4..................................................................................................................................................9
P6) Examine the various forces affecting the popularity of a range of global destination. .......9
CONCLUSIONS............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In modern world travel and tourism is the fastest growing sector which is contributing in
the development of the economy. It a economic and social process that encourage moving of
people across the boundaries or destinations for business purpose or for personal reasons. It
focus more on forces which directly or indirectly affect the economy of the nation. This report
includes how travel and tourism has changed over the years. Whereas, various models are
studied and also throw light how they affect the decision making tourist. Moreover, evaluating
forces which are affecting popularity rage of place as well as focusing on emerging patterns in
global market. (Abubakar and Ilkan, 2016.)
LO1
P1) How key milestones contributed in shaping travel and tourism industry as well as in
development.
Travel and Tourism plays a vital role in contributing economic growth and development
in an effective manner (Travel and tourism, 2018). This particular field or sector is offering or
serving it's product or services over the decades as well uplifting themselves gradually.
Moreover, there are uncountable key milestones and historical that emerged within 19th , 20th and
21st century that has directly developed certain ways for the upliftment of travel and tourism
aspect that are explained as follows:
Current 1980: In the current era of 1980s travel and tourism has came up with the
dynamic changes in this industry. It decided to provide full packages to it's customers including,
vehicles on rent, medical facilities, guide translator etc. in order to satisfy customers needs and
preferences. But in today's world it is one of the fastest growing industry worldwide and is
upgrading up an economy of the nation in proper manner. In other words it can be stated that
travel and tourism has become one of the leading leader of success in the international market. It
includes appropriate ethics, norms, policies and culture as well as sustainability for long time
duration. As the transportation facilities were available on rents it was easy for the people to
move from one place to another. During this era all things got simplified and customers were
motivated to travel across the globe without ant fear. Medical , vehicles, guide, translator , place
to rest, food etc. were available to them through out there journey. It created a positive sign in
1

the minds of the customers which leads to raise in travel and tourism within nations as well as
out side nations. (Boniface and Cooper, 2016)
Milestones in Travel and Tourism industry.
Time duration Why individuals
travels/ aim
Travel agents usual are
distance travel
Place
1600 In this case people
used to travel from one
place to another either
for religious purpose
or for business
purpose.
No They used to travel by
sea on boats and uses
carts and animal rides
to travel within the
domestic area.
1800 In this era, people
started travelling with
friends and family
1555158698
(2)members to visit
holly places to have
fun and enjoyment.
No The mode of travelling
was either horse cart,
bullock cart, boat and
ships at international
tour as well as for the
domestic area. 1
1900 In this time duration
the core purpose of the
travelling of the
people was to
entertainment, study at
different places,
business or visit
religious holly places.
Yes During this time
duration people started
travelling across the
globe with the help of
ships, steam boat,
canals, aeroplanes etc.
People also started
using the railroads and
aeroplanes to travel
within national and
2

international levels.
Apart from this there are many distinguished sectors like, food, transportation,beverages,
accommodations and tourism aspect. As this a most important concern of people for movement
in various location of the country so that more exploration can be done. In case any issues occur
in travel and tourism facilities while serving facilities and is not able to achieve the demand of
the client ten it creates negative sign in the mind (Buhalis and Foerste, 2015). To attain
competitive advancement in the market then good quality of good and services need to offered to
the consumers accordingly. Here, the distinguished aspect are explained as:
3
Different Sectors
Entrainment
It is related to the services
Related to entertainment
like, theatre, live musics,
Casino etc.
Transportation
This is related to that sources
which are useful for transport
Like, aeroplanes, cars, bus
etc.

1555158698 (2)Thus , from the above stated graph it can be concluded that various sectors of
tourism and travel are needed to an individual while enjoying the tour to some other place.
P2) The distinguished elements of travel and tourism and their corelation to create tourist
experience.
Travel and tourism is stated as essential element which is helping the economy of the
country to flourish at a high level. But this sector needs more dynamic changes to meet the
emerging needs, demands and preferences of the customers while travelling. Here, are two
elements in which this industry is classified which are explained as :
Direct element: Direct elements includes all the necessary items like, accommodations,
conveyance and other act which are important while travelling to some other place within or
outside the country (Eid and El-Gohary, 201). This essential elements plays a critical role while
travelling as this are the facilities served to the customers while travelling within the country or
at international level. As without this necessary facilities travelling becomes become very
problematic for the people and they lack enjoyment and entertainment. Firm by analysing direct
element in their working premises will be able to raise the customer base for the services. It will
directly leads in achievement of set goals in the global market which is a positive sign for the
firm. Whereas, if this is not examined appropriately in the open market place then market value
4
Accommodation
This is related with the
facilities of
accommodation like, motels,
inns and
Hotels etc.
Informations
This is related with the
information
Of travel and tourism and
all other
releated informations.

of decreased. Due to which travel and toursim is unable to generate huge profits for it's growth
and development.
Indirect elements: In travel and tourism industry indirect aspects includes airports,
electricity facilities, telephone facilities etc. This aspects are very essential to make a trip
comfortable and pleasant. As before planning a tour customers check out this certain indirect
services in the areas to have a pleasant vacations.
For examples: If X person is thinking to visit the place of Eiffel Tower in Paris and they
are tracking out the facilities of transportation, accommodations, food and beverages etc.
according to their needs and preferences visitors of specific nation is fulfilled with the services
and can enjoy the vacations.
Interrelationship of such forces to create traveller experience.
It has been discussed that both the elements are interrelated with each other as both the
direct and indirect elements have their on impact on this sector. This are interlinked with each
other to serve best services as well for creating best travel experience for the customers.
Nowadays travelling agents are providing abundance of information about the holiday packs and
other relevant information regarding the trip to choose the best place for vacations. All this
activities are done to frame positive image of the place in the minds of the customers and they
choose accordingly (Fang and Law, 2016). Today's generations prefer to visit best places in
appropriate budgets so that they can have best experience of the holiday. In case any of the
services fails to meet the demands of the customers it results to give negative impact on the
customers mind as well as decrease the value of the tourism agent. If the requirements are not
able to meet by the firm then the set goals are not meet in due time. It can be said that both the
elements are essential to meet the best tourist experience from their offerings and al;so able to
attract huge customers towards it (Xiang and Fesenmaier, 2015).
5

LO 2
P3) Examining the distinguished forces impacting the tourism behaviour and it's effect on
decision making.
UK and Australia was affected socially and culturally at a tremendous scale in the early days.
Due to the emerging travel and tourism the culture got diversified at a large scale and people
were able to explore many places. It created interest for travelling across or within the nation.
In travel and tourism sector there are various forces which are affecting the tourism
behaviour and are framing tough competition for others. However, there are distinguished forces
which are affecting in decision making process which are expli9aned as follows:
Social factor: Social factor includes the dynamic dynamic trends of individuals that are
occurring on regular basis This frequently changes in the trend are tremendously affecting both
tourism activities as well as customers too. If the firm fails to meet the changing demands of the
customers then it creates heavy loss in very term like, finance, customer loss etc. for them
accordingly. As the taste of the customers are changing it become difficult to examine them on
continuous basis. This directly affect negatively the decision making process of travel and
tourism. As firm need to modify the policies as per the requirements due to which functioning of
the business is affected at a large scale.
For Example: Now a days people are preferring for more adventurous places so, that
they can enjoy more with their family, friends. On the other side certain section of the public are
looking for holly or religious places to visit as this places provides peace of mind to them (Giap
and Ye, 2016.). So, it can be seen that both aspects are different from one another and are
gradually impacting in decision making.
Cultural factor: Cultural forces includes cultural and language problem which frame
large differences while moving to some other places either within the nation or outside the
country. As a results it creates huge impact on the decision making power of the customers. As
the business is becoming cultural diversified it become difficult to cope up with every cultural
forces. Due to which the productivity and profitability ratio decreases. Also it directly affect the
decision making process greatly. Due to this firm is unable to take appropriate decision for the
benefit of the company.
For Examples: If Y person is planning to visit Spain and if that person does not known
Spanish language it will frame a huge affect on it's decision making. If that individual does not
6

understand or is able to speak Spanish language then they will not be able to flourish and enjoy
the Spain destination.
Geographical factor: Here, geographical forces includes the atmosphere and other
forces which are connected to those forces. This forces indirectly creates direct or indirect effect
on decision making. Normally, all this forces affect the travel and tourism industry to meet their
set goals on time (Gretzel and Koo, 2015). Travel and tourism decision is positively and
negatively affected by geographical factor because this is related with travellers interest level.
Moderate climate tatarct large number of customers due to which objectives are meet on time.
Theresa too hot climate restrict visitors to make plan for that destinations.
For Example: If a person is deciding to visit to natural beauty destinations and if the
weather does not match with the places then customer will change it mindset and will switch to
some other options. Thus changes in program design huge affect on the decision making power
of travellers . At the end it will choose to change it's plan or date or else will postpone the
vacations.
Thus, all the above discussed forces are affecting the tourism behaviour tremendously as
impacting positive and negative forces in decision making.
The critical analysis of rationale tourist destination popularity are discussed as follows:
 The climate of destination helps in attracting more travellers.
 Lifestyles and culture is one of the rationale factor which pull large section of the people
towards the destination.
 Facilities and security provided by that particular nation government. By this visitors are
more keen interested to visit the destination.
P4) Understand the models of motivations and how they affect consumers decision-making
process.
In the era of 21st century motivation plays a critical role in encouraging and processing an
individual in proper manner. (Motivational theory, 2017). Whereas, Maslow's model of
motivation is stated as tool in encouraging an individually acquiring basic requirement which
are explained as follows:
Physiological needs: Here, food, water, shelter etc. are basic needs which are for which
people work day and night. Organization focus more on this needs so that skilled employees can
be retained back in the travel and tourism industry for longer time period. (Vellas, 2016.). So, It
7

is the responsibility of the travel industry to fulfil all the basic needs of the customers to have a
pleasant stay. In travel and tourism the physiological needs are vehicles, rooms, food, etc. To
bind customers this needs should be fulfilled accordingly.
Safety needs: Laws, norms, safety, fear, stability etc. comes under safety needs. this is
necessary to provide assurance to it's customers in order to convene to be a part trip and can
have wonderful stay. However, customer's need to ensure that they are safe and secure by the
facilities offered to them before the trip begins.
Love and belongingness: Travel and tourism provides happy and safe environment to
the visitors. They treat them with love and care due to which journey become like home and
customers enjoy it. By doing so good image is farmed in customers eyes and force them to visit
the place again and again.
Esteem needs: While travelling across the globe customers are respected and are
honoured in the community. (Han and Hyun, 2015). By doing travellers will be interested to .
Company provides best services to it's customers so that goodwill can be raised in customers
eyes. This directly or indirectly create positive image in the customers eyes so that best decision
can be taken.
Self actualization needs: In case of travel and tourism esteem needs includes affordable
tour package, comfortable journey, budget etc. and are planned respectively. However, top level
management and their managers are accountable to render best services to it's visitors. It
directly leads to creates positive impact in decision making process.
Theory X and Theory Y
Theory X:
In this theory it is believed that staff members are naturally self di-motivated and does not like
there working. This theory includes includes the following points which are explained as
follows:
disfavour working
need to be controlled
emerging needs to be supervised at very step.
Y theory:
In this mangers should create work environment in such a way that it provides opportunities to
employees to take initiative in the company activities.
8

 In this staff can perceive their jobs as normal and relaxing.
 Employees logical capabilities need to be utilized effectively. This will help the firm to
use resources to solve the organizational problems.
 If timely rewards are given then productive results can be achieved.
Process theory of motivation
Process theory is concerned with ideas which explains how the development and changes
in entity occurs. Travel and tourism must use the following theory of motivation to enable
individual as well as team performance -
Cognitive evaluation theory : In this theory it is explained about the impact on internal
motivation of an individual by external consequences. Cognitive evaluation theory involves the
following two system of motivation.
 Intrinsic Motivators :It is the motivation that comes from within, that is, the internal
interest of the work. Intrinsic motivation includes responsibility, competence and
achievement.
 External Motivators : External motivator is that type of motivation which is controlled
by someone else. It includes promotion, pay, working conditions, feedback etc.
Travel and tourism should use the cognitive evaluation theory so that it can appraise the
performance of its worker .If the amount which the worker deserves is paid timely by the manger
than staff members gets motivates within and work with interest to achieve the desired goals .
Thus, it will lead to success and will flourish in the market place.
LO3
P5) Evaluating recent and occurring patterns in open market place.
In today's world travel and tourism are raising tremendously as well as booting the
countries economy at a rapid scale. Here, are many emerging patterns and trends of customers
demands in global travel and tourism which are explained as :
Ecological and educational tours are in demand: In the era of 21st century young
generation and students mostly prefer to travel to those destination where entertainment and
information in such kind of trips at international level. Thus trends has raised the global tourism
as customers search out for best destination in terms of price, location, security etc. The
9

emerging needs of this trends has raised the global tourism tremendously due to which set goals
are achieved and growth of business is done at a tremendous scale.
For example: One of the most famous and fun loving place is Warsaw in Poland .
Visitors will be benefited by visiting this location and will be able to acquire informative
knowledge. (igala, 2017). Whereas, it will provide both fun and enjoyment as well as knowledge
in this place too.
Last minute booking is raising: In modern world last minute booking raises rapidly due
to the good quality of internet facility and other online booking sites. Customers can themselves
choose and book tickets online by seeing online rating stars on the sites as well as by checking
other ambience in photos etc. This is another factor which is responsible to raising the global
tourism. It leads to raise in productivity and profitability ratio which is a positive sign for the
business.
For example: If an individual is planning to visit Poland with it's friend , in short time
duration they can book online tickets, and che4ck out hotels facilities online or on various
booking websites and app (Jaelani, 2017).
Solo travel: In the era of 21st century people prefer to go on vacations solo to freshen up
from the daily overloaded busy life. They prefer more for such kind of trips as this gives peace of
mind from their hectic business life seclude. Such travels is famous or popular in order to seek
great experience and chance to explore towards local culture in effective manner. It has become
easy way for customers to take their own trip with their quarries in it. In addition to this this
industry provides trip offers for single travellers (Laws, 2015). Solo travellers are more
interested in exploring destinations globally. Due to which set goals are achieved on time and
emerging needs of the customers are meet.
LO4
P6) Examine the various forces affecting the popularity of a range of global destination.
In travel and tourism there are various forces affecting the popularity range of
globalisation or emerging preference of global sector. Here are some of the distinguished which
are affecting popularity range of location which are explained as follows:
Economic factor: Economic factor sates that financial stability of a nation as well as
administration operating in within a country. Mostly the stable group travel and expand act in
10

distinguished nation. Eventually, Warsaw in Poland, gets resources of accommodations and
transportation etc. facilities to it's customers. However, other countries are lacking behind and
are not able to meet the emerging needs of the customers which leads to negative impact on the
popularity range of international destinations.
Social factor: This forces involves customs, values, career attitudes, norms, beliefs, age,
etc. individual living in particular nation . There are abundance nation like, USA, UK, Australia
where large number of travellers are interested to visit (Mason, 2015). Due to which large tourist
are attracted to this places as they have wide area to explore. For Example: In Poland Warsaw
is the place which is frequently visited place by tourist as it attract travellers because of their
beliefs, rituals ans so on. Thus, these forces either create good or bad image which directly
impact the hospitality development in the open market place.
Political factor: If the political condition of the nation is not stable visitors does not
prefer to visit the place. Frequently changing the political situation creates negative impact on
the travellers and they switch top some other destination. Due to which that destination is not
explored because of political in stability.
Economical factor: The continuous fluctuation in tax rates, interest rates, wages etc.
divert the mind set of the customers to visit the place. The unsuitability in economical forces is
another reason on not visiting the destination at a large scale. Due to profit is not maximized at a
large scale.
Environmental factor: Climate, pH level of soil and water etc. comes under
environmental factor which directly or indirectly affect the tourist destination number globally.
The destination should be attractive as well as resources should be utilized effectively so that
customers make up their mind to visit the place.
Social factor: The culture, society norms, etc. also affect the client to visit the place.
Culture and lifestyle of the place mostly attract the tourist and force them to visit the place. By
doing so productivity and profitability of travel and tourism industry raises at a large scale.
Technology factor: Using of modern technology in their services like payment through
online, relevant information can be gathered on official websites etc. attract travellers for the
destination at a large scale. Lacking behind in this does not attract large section of the people.
Due to which competitive advantages are not gained.
11

Apart from this forces there are many more forces which are impacting the business
across the national boundaries. If they have sufficient services and good facilities as well as
proper accommodations facilities than they will be capable to sustain for long time duration in
the market.
CONCLUSIONS
From the above it can be summarized that travel and tourism play's vital role in the era of
21st century. It is the fastest growing industry and are able to generate tough competition for
competitors . Identifying various key elements and milestones so that business can be expanded
across the globe . With the support of direct and indirect elements are helping to interconnections
to have best experience among tourist. Some of the external forces are directly affecting the
popularity range of global location.
12

REFERENCES
Books and Journals
Abubakar, A. M. and Ilkan, M., 2016. Impact of online WOM on destination trust and intention
to travel: A medical tourism perspective. Journal of Destination Marketing &
Management. 5(3). pp.192-201.
Battour, M. and Ismail, M. N., 2016. Halal tourism: Concepts, practises, challenges and
future. Tourism management perspectives.19. pp.150-154.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of Destination Marketing & Management. 4(3). pp.151-161.
Eid, R. and El-Gohary, H., 2015. Muslim tourist perceived value in the hospitality and tourism
industry. Journal of Travel Research. 54(6). pp.774-787.
Fang, B., Ye, Q. and Law, R., 2016. Effect of sharing economy on tourism industry
employment. Annals of Tourism Research. 57(3). pp.264-267.
Giap, T., Gopalan, S. and Ye, Y., 2016. Drivers of growth in the travel and tourism industry in
Malaysia: A Geweke causality analysis. Economies. 4(1). p.3.
Gretzel, U., Sigala, M., Xiang, Z. and Koo, C., 2015. Smart tourism: foundations and
developments. Electronic Markets. 25(3). pp.179-188.
Han, H. and Hyun, S. S., 2015. Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness. Tourism Management. 46, pp.20-
29.
Jaelani, A., 2017. Halal tourism industry in Indonesia: Potential and prospects.
Laws, E., 2015. Health tourism. Health and the International Tourist (Routledge Revivals), 199.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Sigala, M., 2017. Collaborative commerce in tourism: implications for research and
industry. Current Issues in Tourism. 20(4). pp.346-355.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services. 22, pp.244-249.
Online:
Travel and tourism . 2018. [Online]. Available Through:
<http://www.tugberkugurlu.com/archive/definintion-of-tourism-unwto-definition-of-
tourism-what-is-tourism>
Motivational theory . 2017. [Online]. Available Through: <https://contactzilla.com/blog/5-
psychological-theories-motivation-increase-productivity/>
13