Contemporary Travel and Tourism Industry Detailed Analysis

This report provides a comprehensive analysis of the contemporary travel and tourism industry. It begins by discussing key historical milestones and their impact on the industry's development, including the rise of air travel and package holidays. The report then identifies and explores the various elements of the travel and tourism industry, such as travel agencies, online travel agents, tour operators, and destination marketing organizations, analyzing their interrelationships in creating a tourist experience. Furthermore, the report examines the discrete role of each element and how their interactions contribute to the overall tourism experience. It also delves into the factors influencing tourism behavior, including personal budgets, internet and social media, and the global economy, as well as how these factors impact decision-making processes. Various motivation models, such as Maslow's hierarchy of needs, are explored to understand their influence on consumer choices. The report assesses the factors underpinning tourist behavior and their impact on decision-making, and critically evaluates the interrelationship between different elements, highlighting how weaknesses in any one element can impact the overall tourist experience. Finally, the report identifies recent and emerging patterns and trends in the international travel and tourism industry and analyzes the factors affecting the popularity of various global destinations.

Contemporary Travel and Tourism Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
SCENARIO 1..................................................................................................................................1
SCENARIO 2................................................................................................................................10
P5 Identify recent and emerging patterns and trends in the international travel and tourism
industry......................................................................................................................................10
M3 Analyse recent patterns in international travel and tourism and highlight their significance
to the development of the global travel and tourism industry...................................................11
P6 Examine the factors affecting the popularity of a range of global destinations...................11
M4 Analyse the factors affecting the popularity of different destinations and assess their level
of importance to a destination’s popularity...............................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism is a physical, social and economic activity that operates on domestic
as well as international level. It plays a very crucial and significant role in the economy of a
nation. It is one of the most effective and significant sector that has seen the most effective
growth in recent years (Bilgihan and et.al., 2016). It is one of the major industries which generate
highest number of revenue as well as employment. For the present report, UNWTO is been
selected for the reference.
The current report will lay emphasis on the key historical developments in travel and
tourism sector. Also, various elements of travel and tourism industry is been analysed with their
interrelation with each other to create tourist experience. Other than this, the factors generating
countries and destinations with factors affecting tourism are been analysed to identify the impact
on decision making process. Also, the recent and emerging patterns of global travel and tourism
industry is been identified with significance to development of this industry with factors
affecting popularity of a tourist destination.
MAIN BODY
SCENARIO 1
P1 Discuss key milestones in development of travel and tourism industry and how they shaped
travel and tourism industry
The travel and tourism sector has been emerged in recent time as one of the major sector
of industry due to globalisation, easy mode of transportation and other significant reasons.
Various key mile stones are been analysed to identify the impact and level of growth seen by the
selected industry. Some of the major historical developments and key milestones that are been
achieved by travel and tourism industry is as follows:
Various key mile stones are been analysed to identify the impact and level of growth seen
by the selected industry. In recent time, the travel and tourism sector has seen a tremendous
growth due to rise in awareness and financial condition of people.
Year Milestone
1936 Billy Butlin opens first holiday camp
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1938 Holiday with Pay act was passed.
1950 First air package holiday is organised by
Horizon.
1960 First global distribution system was
introduced by American Airlines.
1969 Development of tourism act was introduced.
1992 EU sets directives on package holidays.
1999 English tourist Board was set up.
2003 English tourism Council and British Tourist
Authority merged to become Visit Britain.
All this activities and factors helped in shaping the effective development of travel and
tourism activities within organisation as well as a country. The post-World war II phase i.e. after
1945, has seen a major growth and development in tourism sector as it helps the firm to carry out
the business activities and action plans in an effective way (Smith, 2015).
The change in socio economic circumstances, improvement in technology and
introducing better travel packages and services based on consumer’s needs and demands. For
example, the development of sea side resorts and steam boat services is the major result of steps
that are been taken in development of travel and tourism sector.
Some of the factors that helped in shaping up the travel and tourism sector is as follows:
 Increase in Air based transportation: In the post-World war II era, the airlines saw an
immense growth and development of Air based transportation that catalysed the rise of
travel and tourism sector.
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 Introduction of holiday camps: The introduction of concept of holiday camps that
included the customers from all age groups. The affordability and providing of a good
range of services at a cheaper cost helped in growth of such tourism services (Higham
and et.al., 2016).
 Growth of package based tours: The development of cheaper, affordable and all
inclusive tour packages will help the firm to have a good management of business
operations and action plans that will help in better rise of travel and tourism services.
P2 Identify different elements of travel and tourism industry and explore how they interrelate to
create tourist experience
In a travel and tourism industry, various elements or components are been taken in
consideration, that will lead to a significant growth and development of travel and tourism
services. These components will help the firm to carry out the tourism business operations and
action plans in an effective way. This will not only initiate the travel and tourism services within
the firm.
Different components or elements of travel and tourism industry are as follows:
 Travel Agencies: They act as an intermediate between the service provider and the
consumer. They comprises of a travel agent, who look after the needs and requirements
of travellers including food, accommodation transportation etc.
 Online travel Agents (OTA’s): With the introduction of internet in the travel and tourism
services, OTA’s have emerged as a major service provider. They include a website or a
holiday portal that help the firm to provide the services related to travelling and tourism.
It has gained the popularity due to its ease of use, fast speed and all inclusive services that
are been offered.
 Tour operators: This involve certain companies which organises a tour or its component.
They work with hotels, transporters and other travel and tourism service providers. Also
they provide the better costing as compared to individual purchasing. This involves
inbound (those who provide tour services within a country) and outbound (Those who
provide services on international level).
 Destination marketing organisation (DTO): this involves the national tourism boards,
provincial offices and other conventions. Their main aim is to gain a good tourist base at
a destination and market the services provided (Bilgihan and et.al., 2016).
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They are interrelated to each other as they work in coordination to develop and provide travel
and tourism services. They will help a tourist or a traveller to carry out the effective management
process of tour and travelling firm.
M1 Analyse the discrete role of each key element of the travel and tourism industry and how the
different elements interact to provide a tourism experience
Each and every key element of travel and tourism industry will play a very vital and specific
task that will help the firm to provide best tourism services and experience to its customers. The
roles played by elements of travel and tourism industry are:
• Travel Agencies: As they act as the intermediate between the customers or tourists and
service providers, they will look after to provide proper services and action plans to give
the proper services to a tourist. The travel agents will provide suitable tour plan to
customer as per his/her needs (Seyfi and Hall, 2018).
• Online travel Agents (OTA’s): They are the online version of travel agents and will
provide the similar set of services, through the means of internet. The customer can select
their destinations, book their tickets and have other facilities through the internet. It helps
to save time and effort of a traveller.
• Tour operators: They are the major bodies who will organise the tours for their
customers to provide them a better tourism experience. Their services are usually all
inclusive with food, transportation and accommodation facilities. They are the major
service providers and hence plays a very important part (Mason, 2015).
• Destination marketing organisation (DTO): As they are the tourism boards, they will
provide the necessary support to other elements to carry out their operations in an
effective way.
All these components will work in proper coordination to look after the proper management
of tourism services and other action plan that will help in suitable management of providing a
good tourism experience to their customers.
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D1 Critically analyse the interrelationship between different elements of travel and tourism
industry and demonstrate how weakness in any one element can impact overall tourist
experience
The different components of the travel and tourism sector are deeply interrelated as they will
help in effective providing and running of tourism services. However, weakness of any of the
component can impact the activities of overall system. For example, if travel agents fails to
communicate the bookings of a tourist to hotel or tour operator, it can lead to severe
consequences and may affect tourism experience.
P3 Determine different factors that affect tourism behaviour generating countries and
destinations
The travel and tourism at a destination location is deeply impacted by many factors that
prevails in the sector (Law and et.al., 2015). They not only influence a tourist experience, but
may also lay an impact on the running of their respective businesses at a country or tourist
location.
Some of the major factors that influence the tourism behaviour are as follows:
• Personal budget: This is the major factor that create a hindrance for a tourist or a person
to re think about going on a tour. The personal financial constraints will lead the
individual to cancel its plan of travelling.
• Internet and social media: The emerging popularity of internet and social media has
been an influencing factor for a tourist. The ratings and feedbacks received by a location
or a tourist destination. This will help the individual to plan for a tour and help in its
effective execution (Cain, Busser, and Baloglu, 2016).
• Global economy: This has been the major factor that will impact the business operations
and action plans of a tourist as well as the service provider in a suitable manner. The
change in currency rates is the major issue that will lay its impact on generating a tourist
behaviour for a country or destination.
• Other factors: Other issues like social political factors, terrorism and cultural constraints
will also play a crucial role in shaping up the tourism behaviour of an organisation. These
factors will impact the overall policies and thus will lead to the setting up of goals and
action plans which will lead to development of an effective tourism plan (Skubal, N.,
2017).
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P4 Explain models of motivation and how they influence the consumer decision making process
Various models of motivations involving the theories like Maslow’s hierarchy of needs,
Hertzberg’s two factor model etc. will impact the overall setting up of a tourism plan and setting
up of a tour plan. The destination that will meet this theories or constraints will lead to have a
good tourism rate at a destination (Sigala, 2017). This will also help an organisation to handle the
business operations and activities.
It will help them to decide the tourist location that they want to visit by analysing the
various feedbacks and reviews that are been received by the destination. Other than this, they
will look after that the location, country or destination meets their requirements or operations.
Apart from this, the physical, psychological and emotional requirements of a tourist destination
will be evaluated to finalize the deciding of a tourist plan (Vellas, 2016).
M2 Assess the factors underpinning tourist behaviour and their impact on decision making
process
The factors like budget, global economy, reviews of a destination on social media and other
major influencing issues like terrorism or social political factors can impact the persons tourist
behaviour and are required to be taken in consideration to mitigate the impact on their decision
making process. This will lead an individual to opt or drop his/her travelling plan, impacting
business of various firms, working in this sector.
D2 Critically evaluate link between key drivers of tourist behaviour and popularity of different
tourism destinations and experiences
Various key driving factors of tourist behaviour and popularity of different tourism
destinations and experiences are required to be taken in consideration for identifying their impact
on tourist behaviours (Baker, 2014). The factors like global economy, budgeting etc. will impact
the tourist flow to a major extent and the country or destination meeting all this key driving
factors effectively will see a good number of tourist base and gaining of popularity.
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SCENARIO 2
P5 Identify recent and emerging patterns and trends in the international travel and tourism
industry
The trends that are been set within an organisation are deeply affected by the measures or
actions that are been followed within an industrial sector (Prebensen, Chen and Uysal, 2018).
This trends and operations that are been taken in consideration by the firm will impact the setting
of proper travel and tourism trends within a market of a country or a tourist destination. Some of
the major current and upcoming trends that exist in international travel and tourism industry are
as follows:
Current trends in travel and tourism industry:
 Modern family trends: In the current travel and tourism scenario, many families prefer
to travel together as a unit to get the maximum benefits and a good experience that is
inclusive in nature. Many tour operators too, offer the packages that are developed
keeping the family trip in mind.
 Adventure tourism: Most of the younger customers loves adventure and hence, it is an
on-going as well as emerging trend in many countries which offer its visitors will a good
exposure to thrilling adventure and experience (Radojevic, Stanisic and Stanic, 2015).
 Seasonal tourism: Some tourist destination like Cherry blossom valley in Japan or Alps
in winter becomes tourist hotspot in a particular season of the year. Thus, it leads to the
seasonal tourism within the industry.
Emerging trends in travel and tourism industry:
 Cruise based travelling: With the improvement in economic condition of people around
the world, the luxury tourism facilities are been opted by the people. This is emerging
and upcoming as one of the most followed tourism trend due to services it provides (Han
and Hyun, 2015).
 Solo travelling: With the globalisation, improvement of technologies like Google
translate and rise in awareness, people (Majorly group of people in their 20’ and 30’s)
prefer to travel alone. This helps them to explore the destination freely and without any
sort of constraints.
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M3 Analyse recent patterns in international travel and tourism and highlight their significance to
the development of the global travel and tourism industry
The recent tourism trends that are been followed within the organisation like the family
trips, adventure travelling and seasonal tourism will lead to emerging of new tourist destinations
around the globe and will fuel up their development along with growth of travel and tourism
industry. It helps the firm to meet the operational requirements of tourism service provider.
P6 Examine the factors affecting the popularity of a range of global destinations
A wide range of operations and action plans are been taken in consideration by the
organisation that will help in effective placing of a tourist destination on the mind set of an
individual traveller (McWha and et.al., 2016). Besides this, considering the destination as a
whole, these factors are required to be taken in consideration that will impact the overall growth
and development of popularity of range of global destination. Some of the major factors that can
affect the range of global destinations are as follows:
 Infrastructure: A tourist will look after the proper management and availability of
infrastructural facilities that are been taken in consideration by the organisation which
will lead to have an influence on a tourist and developing his/her perception towards a
destination. A poor infrastructural facility will make the tourist reluctant to visit a
destination, decreasing its market and popularity.
 Service Quality: This is also a major factor that will be taken in consideration by a
customer and it affects the popularity and market of a location or destination
(Bærenholdt, Haldrup and Urry, 2017). Providing a superior quality of service will help
the organisation to have a good market share and meeting of business operations and
handling of tourism activities in a significant manner. Besides this, it will improve the
image of the destination and enhance the market share.
 Cultural factors: Many times, the cultural background and practices of travel and
tourism plays a very significant role in the setting up of processes that are been taken in a
tourist destination. For example, in Arab countries, you are required to follow certain
rules and regulations in order to prevent the violation of their cultural code. This may not
be accepted by many tourists, thus affecting the overall operations and other activities of
the firm.
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 Security: In present era of terrorism becoming a major issue for the travel and tourism
industry, the proper providing of effective security measures are meant to be taken in
consideration (Cohen, 2013). The unsafe and dangerous conditions that are prevailing in
certain tourist location, affecting their growth and development to a greater extent. This
may lead to a tourist to drop his idea to travel and may have a negative perception for the
tourist destination.
M4 Analyse the factors affecting the popularity of different destinations and assess their level of
importance to a destination’s popularity
Various level of operations are been taken in consideration by the organisation which will
help in proper management of significant operations. The discussed factors may have a negative
and adverse impact on the operations and thus, are required to be managed effectively. This
factors are of utmost importance and significance for a tourist destination and thus, will have a
deep influence on the overall operations and activities that are ben followed by the tourist
destination.
CONCLUSION
On the basis of the report and the analysis performed, this can be said that the travel and
tourism department plays a very deep and significant impact on the operations and action plan,
that is been followed. The report focused on the major mile stones that are been covered by
travel and tourism sector in past time with analysis of different factors that can impact the tourist
experience. The influence of different models and concepts of motivation of decision making
process of a customer is been evaluated. Other than this, the recent and emerging patterns in
travel and tourism sectors are discussed with the factors impacting the popularity of various
global destinations. The factors affecting the popularity of the operations are to be met and thus
will impact the business operations and tourism facilities that are been offered by the selected
firm. Other than this, their influence on a tourist experience and destination is been analysed to a
greater extent.
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REFERENCES
Books and journals
Bærenholdt, J.O., Haldrup, M. and Urry, J., 2017. Performing tourist places. Routledge.
Baker, D.M.A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage. 2(1). pp.9.
Bilgihan, A.and et.al., 2016. Consumer perception of knowledge-sharing in travel-related online
social networks. Tourism Management. 52. pp.287-296.
Cain, L.N., Busser, J. and Baloglu, S., 2016. Profiling the motivations and experiences of spa
customers. Anatolia. 27(2). pp.262-264.
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.
Higham, J and et.al., 2016. Climate change, tourist air travel and radical emissions
reduction. Journal of Cleaner Production. 111. pp.336-347.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
McWha, M.R. and et.al., 2016. Writing for the anti-tourist? Imagining the contemporary travel
magazine reader as an authentic experience seeker. Current Issues in Tourism. 19(1).
pp.85-99.
Prebensen, N.K., Chen, J.S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
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