The Contemporary Travel and Tourism Industry: A Comprehensive Report

This report provides a comprehensive analysis of the contemporary travel and tourism industry, examining its historical development and key milestones. It delves into the key elements that shape the industry, including attractions, activities, accessibility, accommodation, amenities, and affordability, using the 5A's framework. The report further explores the factors influencing tourist behavior, such as geographical and social factors, place of origin, destination characteristics, and educational background. It also investigates the role of motivation in the tourism industry, examining various models like the vacation tourist behavior model and the leisure motivation model. The report discusses the analysis of current trends in the travel and tourism industry and factors affecting the popularity of global destinations, providing insights into industry dynamics and consumer behavior. The report uses TUI Group as a case study to illustrate the development of the travel and tourism industry.

The Contemporary
Travel and Tourism
Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Milestones in the development of the travel and tourism industry and how they have
shaped the travel and tourism industry...................................................................................3
P2 Key elements of the travel and tourism industry...............................................................4
TASK 2............................................................................................................................................6
P3 The factors that affect tourism behaviour.........................................................................6
P4 Role of Motivation within Tourism Industry and its effect on the Consumer Behaviour.7
TASK 3............................................................................................................................................8
P5 Analysis of Trends of Travel and Tourism Industry.........................................................8
TASK 4..........................................................................................................................................10
P6 Factors Affecting the Popularity of Global Destinations................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
Tour and travel is done for pleasure and it is business. It basically means going out and
staying at a different place far from their usual environment for business, leisure, and any other
purpose. UK is world's 10th largest destination for tour and travel. The industry is at boom and
attracting so many customers and contributing a lot to GDP of the country. In UK it is fastest
growing industry and is expected to grow around 3.8% annually and provides 10% of overall
jobs in UK (Beck, Rainoldi and Egger, 2019). The report will consider TUI Group for
understanding travel and tourism and its development. TUI is a multinational German tour and
travel company that has headquarters in Germany. The TUI Group is the largest travel and
tourism company in the world. In the report there are elements that are interrelated to the
industry and the factors that have effect on tour and travel. Also there is discussion about the
current trends in international market and the reasons for popularity of this global destinations.
TASK 1
P1 Milestones in the development of the travel and tourism industry and how they have shaped
the travel and tourism industry
History
In early times there was travel for simple reason like animals use to migrate due to
change in weather. There were no transportation, no wheels and no ease in travelling. Gradually
the things improved the infrastructure was build and transportation facilities were enhanced
which made development in the industry (Cohen, 2017). Then people showed curiosity and and
started travelling for pleasure this all happened due to civilisation. The main reasons for growth
of this industry in UK are as follows:
 Development of Tourism Act 1969:
The aim of the act was to develop the tour and travel industry. Under this there was
establishment of British Tourist Authority which helped to promote the industry. They provided
financial assistance by providing public findings to establish hotels so as people can enjoy their
staying and get good facilities.
 Package Travel, Package Holidays and Package Tours Regulations 1992:

The organisations that provide package for holidays, tour and travel were now given regulations
and those regulations were important to be followed and were in favour of the industry as well as
tourists. All the information should be transparently shared with customers and if there is any
breach in regulations then the customers can take measured. This attracted more customers as
they felt they have power and that lead to development of this industry.
 Destination Development 1966:
Since 1990 there was development in destinations. Years ago there were many destinations that
were never visited that is why this legislation came in force and the destinations were developed.
The development of the destinations has lead to more tourist and they are now spending more
money to travel (Cristobal-Fransi, Daries-Ramon and Martin-Fuentes, 2017). So this clearly
states that if the destination is developed then it would be more profitable for the industry.
 Technological Development 1990:
Technology is the major factor for development of any industry. With coming of internet in the
era it became easier to book tickets for travelling the world. People were able to book the tickets
by sitting at there home and they can choose between the packages that they like and can explore
more places that lead to increase in interest of tourism and consequently it helped in overall
development of tour and travel industry.
By providing better destinations and allowing them to book the tickets online the
customers were attracted more towards the industry and with improvement of transportation and
infrastructure as in destination development with proper use of technology the tourism industry
is at boom and developing at a fast pace.
P2 Key elements of the travel and tourism industry
To understand the key elements to travel industry 5A's of are used: Attraction: People love to places that attract them. Not only while travelling but they like
food that is presented in a attractive way (Dixit and Mawroh, 2019). Attracting customers
is not an easy task but is of vital importance So, TUI Group focuses on providing quality
services and beautiful destinations with good transportation facility to attract more
customers and increase their visits at destinations. Activity: Tourist not only like beautiful destination nor they visit only for sight seeing the
other thing that is required by them is activities. The main source of entertainment and
indulging the tourist while travelling is providing then with activities. In relation to TUI

Group they offer many activities as part of package they take and it increases the
attractiveness of the customers. Accessibility: To reach at the place there is need of accessibility and this is the most
important factor which is responsible for growth of travel and tourism industry. The
customers should be provided accessibility from booking tickets to tour to returning back.
TUI group provides the facility to book the tickets online and provides good
transportation facility to customers and always follow the rules of the country that the
tourist is visiting and provide the access accordingly. Providing accessibility to customers
boosts the industry (Duffy and Kline, 2018). Accommodation: When customers travel they like to stay at place that is comfortable
and they expect it to be luxury. The customers that visit with family like to have big
rooms with greenery around and a good view from the place. The want a nice place to sit
and eat that is more pleasing for them. The first thing that customers want is the
availability of room and the level of comfort they will have in that hotel. Amenities: The level of interest of customers as well as satisfaction depends on the
amities that are provided. The better the facilities provided more the trip is enjoyed by the
customers (Yusof, Awang, and Ibrahim, 2017). Every one carries smart phone so the
basic need is of proper sockets. TUI Group tries to provide all the amenities that are
required by customers and they try to satisfy them at their best. They provide
personalized lavatories for ease of customers and to develop their name in the market.
 Affordability: The customers are attracted towards the trip but the main reason behind
their decision is that is the trip in their budget. So the companies should try to make the
trip that is affordable by customers. TUI Group allows many packages that are for
different income group (Filipiak, Dylewski and Kalinowski, 2020). They make the
packages and provide 6the facilities according to needs and wants of customers and that
they can afford.
The international organisations promote the tour and travel industry and try to reach
every customer to attract the customers and then provide them quality services that are affordable
to them along with some fun activities so that they can enjoy their trip. So following these factors
increase the profitability of the industry and let more customers to come and travel.

TASK 2
P3 The factors that affect tourism behaviour
Below written are the factors that influence the behaviour of tourists: Geographical Factors: The geographical and climatic conditions of the place majorly
affects the tourism industry as the customers make decision according to that. TUI Group
provide full amenities and advertise there activities to attract more customers. The place
where the customers want to visit affect the decision making of the tourist. Social Factors: Social life of people there networks always impacts the tourism industry.
As the society where they live impacts them and there mind set is change accordingly. So
the thinking power of person can change the decision making related to visit the place or
not (Ghaderi, Saboori and Khoshkam, 2017). Place of Origin: The place of birth of person also impacts the decision making of tourist.
They like to visit the place according to culture they like and also there are people who
like to visit alone and some who are socialised and visit in groups. This factor influences
the tourists that are coming to visit as they have different mind set due to the place where
they took birth. Tourism Destination: The place where they are visiting also has impact on the tourists
as people now a days are more hygienic and prefer to go at places that provide clean
environment and comfort with beautiful view that attracts the customers and let them
visit again.
 Education of Tourist: The education level of customers also has impact on decision of
tourist. More the education of customer more is the curiosity and knowledge to visit
places (Giachino, Truant and Bonadonna, 2020). They search for more options and like to
go at the best place. The decision of the tourists get affected by their literacy level.
These are the factors that influence the decisions of tourist so these factors should be
considered and taken care of to have a good business. TUI Group takes care of all the factors to
attract more customers and to gain competitive advantage in tour and travel industry.

P4 Role of Motivation within Tourism Industry and its effect on the Consumer Behaviour.
Consumer behaviour is unpredictable and it is crucial for the marketer to analyse it
precisely. This will determine the motivating factors that influence the customer decision in
respect of travel and tourism (Höckert, Rantala and Haanpää, 2020). There are many tourism
models that explains the behaviour of tourist and what impacts the perspective to influence their
decision. These model explains the complexities involved in the tourism sector and these models
can be explained as follows:
 Vacation Tourist Behaviour Model: For analysing the reason of holiday for an
individual there are two sets of motivations namely; general and specific motivation. The
general motivation is the normal reasons of travelling that sometimes the traveller are not
aware of them. The specific motivation involves the advice from friends or personal
experience. The specific motivation describes the important reason for which the person
is travelling. The tourist are also attracted towards the advertisements of the travel
agencies and the offers , discounts they are offering. This indicates that the tourism
related to purchases are affected by the individual behaviour and the external
environment forces.
The outside forces includes the memories either the conscious or the unconscious one which
motivates the tourist to travel across the globe. Furthermore, there are three stages of decision
making process:
1. Pre Decision Stage: This stage involves the factors analysed by the tourist while
planning for vacation. These factors are selecting an attractive destination, connecting
with a travel agency and formalities (Horng, Hsu and Tsai, 2017). These factors are
effectively analysed by the tourist for ensuring a comfortable journey.
2. Post Purchase Evaluation: This stage involves the analysis of the facilities provided by
the travel agency, destination overview and evaluation of experiences for future decision
making.
3. Future Decision Making: this stage involves analysing the past travel experiences to
plan for the future travelling process. The tourist evaluates the factors efficiently to
ensure the satisfaction and comfort for the journey.

 The Leisure Motivation Model: The Leisure Motivation model has been derived from
the maslow motivation theory which defines the factors which enhances the satisfaction
for the tourists. This also determines whether the tourist is gaining the satisfaction form
the leisure comforts (Islam, 2020). This model covers the four factors which can be
explained as follows:
1. Intellectual: This explains the need of individual for learning or discovery for travelling
across the globe.
2. Social: This explains the need of individual for friendship and enhancing the
interpersonal relationships for travelling across the globe.
3. Competence: This explains the need of challenge and competition for which an
individual is motivated for travelling.
4. Avoidance: This explains the need of solitude because of which individual is motivated
towards the travelling across the globe.
Hence, these are theories which motivates the individual towards the holiday and helps in
enhancing the satisfaction level of tourists. The factors that affects the consumer behaviour is
cognitive, habitual and reinforcement approach. The factors involve the destination,
infrastructure, duration, infrastructure and many more.
TASK 3
P5 Analysis of Trends of Travel and Tourism Industry.
Travel and tourism industry has encompassed many trends and patterns. These patterns
and trends have enhanced the market share travel tourism industry. The industry work for the
comfort and providing memorable experience to the customers. The industry has faced many
trends and have experienced different patterns that can be explained as follows: Impact of Digital Technology: Digital technology plays a major role in affecting the
behaviour of consumer behaviour. The digital technology will serve the industry by
connecting with customers efficiently (Kirillova, Wang and Lehto, 2018). Digital
technology helps in promotion of the industry across the world. This will attract a large
customer base towards the industry. Personalisation helps in offering the packages on the

basis of the customer demand and preferences. This will help in creating and driving
more opportunities for the industry. Sharing economy: This trend has shared the economy of the globe. Likewise Airbnb and
Uber who have shared the economy which has emerge a trend in the travel industry. This
has managed the peer to peer connections so that they don't have to develop the products.
This will save the money and will enhance their assets. Impact of changing lifestyles: The customers have different lifestyles and according to
that they have different perspectives. This will enhance the level of their expectations
from the travel industry (LaRocco, 2019)(Murshed, 2018). Customers having higher level
of income will demand for luxury amenities while those who have lower level of income
will try to save their money. Balancing Sustainability and Growth: The travel industry has maintained a balance
between the growth and sustainability by providing effective services and experience to
the tourist. The industry focused on fulfilling the needs of the customers by effective use
of technology. Sustainable tourism has contributes towards the BOP and macroeconomic
factors that have emerged the growth prospects for the industry. Increasing Popularity: The travel industry has enhanced their popularity by improving
the amenities and infrastructure to attract the tourists. Furthermore the industry analyses
the consumer behaviour which helps them to form the strategies to attract them for
travelling process. The industry introduces different offers for the customers which will
help them in gaining competitive advantage over other industries.
 Consumer Brand Interaction: In travel industry, there are many brands who are a part of
it. These brand serves the customers in an effective which creates healthy competition
among the industry (Prakash, S. L., Perera and Walker, 2019). TUI group is world's
largest tour operating company headquartered in Germany. The company works for
ensuring the comfort, travel and hospitality services for the customers.
Hence, these are the trends in the travel and tourism industry which has serve the
customer in an effective way for enhancing their satisfaction level.

TASK 4
P6 Factors Affecting the Popularity of Global Destinations.
There are many factors that affect the popularity of global destinations. Customers are the
main target for the tourism industry. The industry focuses on the customer preferences and
expectations from a tour which will enhance the satisfaction level of the customer. Some of the
factors are as follows: Environment of Destination: The destination will be analysed by the tourist on the basis
of the environmental condition and its climate aspects. The weather has a great impact on
the behaviour of the tourists (Seyfi, Hall and Rasoolimanesh, 2020). If the weather has
hot climate then it will transform the behaviour aggressive and if the climate is cold the it
will transform the behaviour into peaceful. Economy of the Country: The destination country has achieved growth in their economic
sector then they will charge high prices from the tourist to maintain their level of growth
and productivity. This will impact the choices of those consumers who want an
affordable trip but with an memorable experience. Historical importance of the Destination: The destination having an effective historical
story will attract the tourist with the aim of enhancing their knowledge. This will
influence the popularity of the destination in a positive way. This will also attract the
researcher for the development of their research projects. Socio Economic Factors: The destination must have the accessibility, accommodation
and amenities facilities which will work for the enhancement of the satisfaction of the
tourists. This will serve the effective services to the tourist to old them for longer
duration.
 Visitors visited the Destination: The popularity of the destination is also driven by the
number of visitors visited the destination (Tichaawa, 2017). As, they will provide the
feedback which will influence the choice of destination of the prospective and potential
tourists. The tourist always searches and analyse the destination they are going to visit on
the digital web. Then they analyse the feedback of the destination and then make an
informed decision.

Hence, these are the factors which affect the popularity of the global destination. There
are many destinations worldwide which has made tourism a key driver for progress of the growth
of the country.
CONCLUSION
Tourism is an activity which has high benefits and has positive impact on the
development for many regions across the world. This report explains the growth of travel and
tourism industry across the globe. Also, this report covers the motivational factors which
encourage the tourist for frequent travelling. This report explains the factors which influences the
popularity of the destination. Furthermore, this report explains the trends and challenges faced by
the travel industry. This report also explains the potential services that the ravel industry is
introducing for the customers. Lastly, this report explains the different factors that affects the
tourism behaviour and the milestone that has shaped the industry.

REFERENCES
Books and Journals
Beck, J., Rainoldi, M. and Egger, R., 2019. Virtual reality in tourism: a state-of-the-art
review. Tourism Review.
Cohen, E., 2017. The paradoxes of space tourism. Tourism Recreation Research, 42(1), pp.22-
31.
Cristobal-Fransi, E., Daries-Ramon, N., and Martin-Fuentes, E., 2017. Implementation of Web
2.0 in the snow tourism industry: Analysis of the online presence and e-commerce of ski
resorts. Spanish Journal of Marketing-ESIC, 21(2), pp.117-130.
Dixit, S. K. and Mawroh, H., 2019. Vocational education and training for hospitality and tourism
industry in India. In Tourism Education and Asia (pp. 35-48). Springer, Singapore.
Duffy, L. and Kline, C., 2018. Complexities of tourism planning and development in Cuba.
Filipiak, B. Z., Dylewski, M. and Kalinowski, M., 2020. Economic development trends in the
EU tourism industry. Towards the digitalization process and sustainability. Quality &
Quantity, pp.1-26.
Ghaderi, Z., Saboori, B. and Khoshkam, M., 2017. Does security matter in tourism
demand?. Current Issues in Tourism, 20(6), pp.552-565.
Giachino, C., Truant, E. and Bonadonna, A., 2020. Mountain tourism and motivation: Millennial
students’ seasonal preferences. Current Issues in Tourism, 23(19), pp.2461-2475.
Höckert, E., García-Rosell, J.C. and Haanpää, M., 2020. Knowing with natureThe future of
tourism education in the Anthropocene.
Horng, J. S., Hsu, H. and Tsai, C. Y., 2017. The conceptual framework for ethics and corporate
social responsibility in Taiwanese tourism industry. Asia Pacific Journal of Tourism
Research, 22(12), pp.1274-1294.
Islam, M. N., 2020. DEVELOPING THE CONCEPT OF NICHE MARKETING STRATEGY
FOR THE LEISURE-BASED TOURISM INDUSTRY OF BANGLADESH.
READINGS BOOK, p.46.
Kirillova, K., Wang, D. and Lehto, X., 2018. The sociogenesis of leisure travel. Annals of
Tourism Research, 69, pp.53-64.
LaRocco, A. A., 2019. Infrastructure, wildlife tourism,(il) legible populations: A comparative
study of two districts in contemporary Botswana. Environment and Planning E: Nature
and Space, p.2514848619877083.
Murshed, M., 2018. International tourism demand in Bangladesh: An ARDL bounds test
approach. Journal of Tourism Management Research, 5(1), pp.50-67.
Prakash, S. L., Perera, P., and Walker, O., 2019. Reasons for visitor dissatisfaction with wildlife
tourism experiences at highly visited national parks in Sri Lanka. Journal of Outdoor
Recreation and Tourism, 25, pp.102-112.
Seyfi, S., Hall, C.M. and Rasoolimanesh, S.M., 2020. Exploring memorable cultural tourism
experiences. Journal of Heritage Tourism, 15(3), pp.341-357.
Tichaawa, T.M., 2017. Business tourism in Africa: The case of Cameroon. Tourism Review
International, 21(2), pp.181-192.
Yusof, Y., Awang, Z. and Ibrahim, Y., 2017. The influence of green practices by non-green
hotels on customer satisfaction and loyalty in hotel and tourism industry. International
Journal of Green Economics, 11(1), pp.1-14.