Report on Contemporary Issues and Trends in Travel and Tourism Sector

This report provides a comprehensive analysis of contemporary issues in the travel and tourism industry, focusing on the challenges and opportunities faced by businesses like Thomas Cook. The report delves into various factors driving change, including technological advancements, environmental concerns, and security issues. It examines the current trends influencing the sector, such as sustainable and adventurous tourism, with specific analysis of Costa Rica's market. The report also evaluates how travel and tourism businesses respond to these changes, considering political, economic, social, and technological factors. Furthermore, it analyzes the impact of these issues and trends, as well as the consequences of businesses failing to adapt to market changes. The report uses various methods and resources to support its findings and offers valuable insights into the dynamic landscape of the travel and tourism industry.

Contemporary Issues in
Travel and Tourism

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the current issues that are driving change in the travel and tourism sector.........1
1.2 Analysing different current issues using suitable methods and resources ...........................3
TASK 2............................................................................................................................................4
2.1 Evaluating current trends influencing change in travel and tourism sector..........................4
2.2 Analysing the current trends affecting Costa Rica................................................................4
TASK 3............................................................................................................................................5
3.1 Analysing how factors of travel and tourism businesses respond to change........................5
3.2 Strategies of travel and tourism businesses that respond to change......................................6
3.3 Justifying strategies of travel and tourism businesses that respond to change.....................7
TASK 4............................................................................................................................................7
4.1 Impact of issues and trends that drive change in travel and tourism sector..........................7
4.2 Consequences of businesses failing to respond to market changes......................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9
Books and Journals.....................................................................................................................9
Online .......................................................................................................................................10

INTRODUCTION
In the 21st century of modernisation and globalisation, the travel and tourism industries
are showing rapid and significant growth and thereby they are contributing to country's GDP in a
very effective manner. This sector has developed tremendous exotic opportunities for individuals
to build their career. Furthermore, people are now concern over spending luxurious and
comfortable life as they now possess huge amount of disposable income. This allows them to
make huge contribution in the travel and tourism industry and hence it makes the mentioned
sectors as one of the fastest growing across the globe. In the recent years, the concerned group of
industry has undergone with huge and major changes related to technological and social aspects
(Moutinho, 2011). Therefore, with regard to this context, the present report will highlight crucial
contemporary issues in travel and tourism industry. For this purpose, the organisation taken into
consideration is Thomas Cook which is one of the leading tour operator agencies in UK. The
report will analyse the issues which are influencing change in travel and tourism sector in Costa
Rica. The study will also focus on evaluating various trends taking place in the concerned
industry by making use of suitable resources and methods.
TASK 1
1.1 Analysing the current issues that are driving change in the travel and tourism sector
There exist many different issues which are driving a significant and huge change in
travel and tourism sector in Costa Rica. In the concerned country, the travel and tourism industry
is crucially exposed to health, political and economic undulations. The leaders of cited industrial
group are heavily forced to give quick and effective response to the circumstances which are
outside the extent of their control and management. In lieu of this situation, a complete
awareness of the major contemporary issues and the current trends will help the market leaders
to effectively respond to critical challenges and issues which are driving change in the travel and
tourism sector (Evans, Stonehouse and Campbell, 2012). Apart from this, it will also help them
to find appropriate and impressive solutions to reduce the negative impact of such changes
within the economy.
The major current issues which are confronting the travel and tourism sector in a very
significant way are discussed as follows-
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 Advanced Technology- This is one of the most crucial parameter which have resulted the
travel and tourism industry to change rapidly in a highly significant way. One of the most
relevant examples associated with such dimension includes attractive and unique
technological services offered by hospitality and aviation industry which provides its
customers with online booking and reservation facility in an impressive and effective
manner. Furthermore, because of such an exotic advancement in technology, the travel
and tourism industry provides its core customers with premium and standard services
thereby creating a strong and positive impact on minds of huge crowd of audience
(Spenceley, 2012). In addition, Thomas Cook is highly influenced by the impressive
technological advancements. Wide range of search engines along with fascinating social
media has offered customers with the opportunity to explore and determine the world's
leading tourist destination and plan their vacations and holidays in the said manner. Increasing environmental concern- This is another important parameter which is driving
a significant change in travel and tourism industry. This issue focuses on preventing
environment from hazardous or destructive events. With regard to this fact, the concerned
group of industry lays its significant concern over launching green tourism with a view to
promote and enhance the environment safety in a very effective and significant way.
 High level security- It reflects appropriate and suitable arrangements of safety and
security within the country to render high level of security to its core tourists. With
increasing tourism activities across the globe, the industries are taking effective
preventive measures to better and improve overall safety and security measures within
Costa Rica. This helps the said country to gain highest level of tourist trust, loyalty,
commitment and confidence in visiting country over and again (Dickinson, Lumsdon and
Robbins, 2011). The rapid increase in terrorism activities results in creating negative
impact on the country as well as on the minds of the tourists and visitors and further
hampers the growth and development of the country by gaining a sudden downturn in its
GDP level. Therefore, with a view to overcome this challenge, Costa Rica lays its
concern over rendering its core tourists with utmost level of safety and protection to gain
a strong brand recognition across the globe.
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1.2 Analysing different current issues using suitable methods and resources
It is very important for the travel and tourism industry to critically and effectively analyse
the current market trends which are causing a significant and huge impact on industry's profit
and revenue generation capacity. Therefore, in lieu of this fact, Thomas Cook focuses its
attention over crucial contemporary issues that tend to create core and direct impact over the
development and growth of the organisation in Costa Rica. For this purpose, the concerned tour
operator agency lays its focus on using suitable methods and resources in a very effective and in
an appropriate manner- Fluctuations in the prices of currency- It is the most significant method used by Thomas
Cook to evaluate current issues which causing major change in the travel and tourism
industries. It helps the tourist to select preferred tourist destination in a very effective
manner (Pritchard, Morgan and Ateljevic, 2011). The increasing depreciation in the
overall currency prices is one of the crucial challenges which is being faced by various
travel and tourism industries including Thomas Cook. Increasing Inflation- This is another crucial method adopted by Thomas Cook with a
view to analyse the major contemporary issues in travel and tourism industry. The
inflation rate in Costa Rica is significantly high because of its unstable and uncertain
market conditions. This fact restricts Thomas Cook to expand its business in the said
country as the visitors prefer less to visit country where the inflation rate is excessively
high.
 Unstable political conditions- Unfavourable and unstable political situations tend to
create negative impact on the minds of visitors. It also hampers overall growth and
development of Thomas Cook in Costa Rica thereby turning company to face business
failure in a highly significant way (Sharpley and Stone, 2010). The government of Costa
Rica lays down strict norms and policies which reflects no means of support activities.
Consequent to this, Thomas Cook finds difficulty to expand and grow its business in the
stated country in a legal and in an appropriate way.
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TASK 2
2.1 Evaluating current trends influencing change in travel and tourism sector
There exists variety of current trends which influence major change in the travel and
tourism sector. Some essential factors include teletext, call centres and online booking that have
drawn a positive and significant impact on company's business operations and performance in
increasingly competitive corporate environment. With regard to this aspect, it becomes essential
for Thomas Cook to focus on vital contemporary issues taking place in the travel and tourism
sector of Costa Rica.
Sustainable Tourism- It is the fastest growing tourism activity which is significantly influencing
the change in existing travel and tourism industry. As per this concept, the travel and tourism
industries nowadays are laying their major focus on maintaining sustainable tourism activities to
gain highest level of customer satisfaction in a very effective and impressive way. Sustainable
tourism can be defined as a set of activities which tends to create no loss or harm to the
environment (Sharpley and Telfer, 2014). Therefore, Thomas Cook lays its concern over
maintaining an appropriate balance between regional communities and the environment in such a
manner which helps in fulfilling the aspirations and demands of its visitors in an impressive and
effective way.
Adventurous Tourism- Demographic segments of Costa Rica reflects a significant increase in
adventurous tourism in the recent years. This has resulted in causing a major and huge change in
the entire tourism industries. Considering this fact, the stated tour operator agency, Thomas Cook
lays its concern over offering its travellers with exotic adventurous and daring activities which
generally includes underwater swimming, river rafting, skydiving, mountain climbing etc.
2.2 Analysing the current trends affecting Costa Rica
The above discussed current trends significantly help Costs Rica to gain strong brand
recognition thereby attaining worldwide global exposure in a very significant way. The current
trends as identified in Costa Rica are sustainable tourism and adventurous tourism. Both these
trends benefit the country to attract huge crowd of visitors from different corners of the world.
Also, by offering fascinating tourism activities with exotic accommodation and food facilities,
the said country is able to increase its overall number of visitors thereby gaining high foreign
exchange currencies in a very significant manner (Smith, 2014). This allows the country to
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increase its GDP which benefits citizens to live a standard and premium life with maximum
comfort.
Apart from this, the following statistics shows the visitors' numbers and total spending in
Costa Rica in addition with the day visitors-
From the above picture, it can be said that Costa Rica is on the path of gaining maximum
visitors from across the globe by analysing various current trends which highly satisfies needs
and demands of its tourist in a very impressive and in an effective way.
TASK 3
3.1 Analysing how factors of travel and tourism businesses respond to change
In the present, technologies are changing rapidly and these changes influence every
sector of businesses like hospitality sectors, travel and tourism sectors and so on. In the context
of Thomas cook, they use upgraded technology to survive in the UK market. By using updated
technologies, they can create competitive advantage to compete with other travel and tourism
industries (Mowforth and Munt, 2015). The most effective factors which affect the most are the
changes in technologies. People use internet for choosing destination and other facilities which
directly impact the travel agencies.
To analyse changes which is considered by travel and tourism businesses, the mentioned
company have to analyse following factors - Political factors: - Political factors are directly related to government which includes tax
policy, environmental laws and tariffs. In the context of Thomas cook, this company
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Illustration 1: Visitors number and total spend in Costa Rica
(Source: Dickinson and Lumsdon, 2010)

follows government rules and regulations to maintain their stability in the market which
helps to keep their company's fair value of taxes (Nunkoo and Smith, 2014). Economic factors: - These factors are those which impact on the economic growth of the
country. Economic factors include interest rate, exchange rate and inflation rate which
affect business's cost of capital and the mentioned company analyses these aspects and
helps in economic growth of that country by keeping up to date from current changes
(Okumus, 2013). Social factors: - Social factors include population growth rate, age distribution and
emphasizes on safety and the cited company provides better safety services by evaluating
social factors which assist in introducing change in market of tour and tourism industry
(Rogerson, 2013).
 Technological factors: - Technological changes include the modification in the present
software and machinery and Thomas cook provides online services to their customers by
using such technologies (Sharpley, 2014).
3.2 Strategies of travel and tourism businesses that respond to change
For introducing change in the travel and tourism industry Thomas cook have to make
strategies for such changes, because if their implementation would go in a negative way than
they use that strategies so that they can improve their changes which are not beneficial to the
company. Therefore, the company makes strategies by providing better services and increase
facilities by using new technologies so that they can attract customers and accomplish their goals
(Smith, 2014). Strategies are also helpful in effective utilisation of resources which provides
beneficial results to this company. Thomas cook attracts tourists by providing huge number of
destinations so that tourists have options to choose one of them, currently they introduce their
websites to attract tourists through internet and for this, the company can use effective
technologies that give wide range of destinations at one place which makes easy for the tourist to
identify the best destination.
Thomas cook is well established tour and the tourism company which provides all
services to their tourists such as accommodation, hotels and resorts so that tourists fulfil their all
needs during travels. By using effective and efficient strategies, the company have advantage to
compete with other travel and tourism companies. If the mentioned company wants to earn more
profitability than it has to make that strategies which are actually needed by customers like if
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they increase effectiveness of their health and safety services then there would be chances to
increase customers (Spenceley, 2012). There are other factors also which attract customers
worldwide. It includes decline in tax rate by UK government from which company can able to
decline its air fares. Through this, more of tourists will attract to this company due to low cost
and hence sales will increase significantly (Stone, 2013).
3.3 Justifying strategies of travel and tourism businesses that respond to change
Strategies helps to utilise resources effectively, in the context of Thomas cook their
strategies are shaped by experts of marketing field and they make strategies by analyzing the
current situation of market so that they introduce new thing in the market which is required.
Technological advancement is the main aspect of accomplishing goals of the company by
providing better services to the customers (Evans, Stonehouse and Campbell, 2012). However,
the company is using social media and digital media to promote their services by using effective
advertisement of the products and services. Advertising also plays an important role in
promotion, it gives a place where the company promote its products and services effectively.
However, effectiveness of the advertisement determines the response rate (Medlik, 2012).
Thomas cook applies their strategies on the basis of requirement of customers and gives
extraordinary services to their customers which help to increase customer satisfaction. This
company also provides schemes like availability of holiday packages by reducing their costs and
other services on special occasion. Due to these reasons, Thomas Cook is able to attract tourist
for almost every part of the world. These strategies are implemented by the experts of marketing
by evaluating these strategies (Hudson and Thal, 2013).
TASK 4
4.1 Impact of issues and trends that drive change in travel and tourism sector
There are many issues and trends which affect travel and tourism sector like Thomas
cook. Some of trends and issues which impact the business of travel and tourism are given
below- Competitors: - Now days, it has become very difficult to survive in market for longer
time because new firms introduce complementary products in the market as this help in
increasing the market position. Further, Thomas cook analyzes the market continuously
so that they can overcome their competitors. In the travel and tourism sector, the other
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firms provide services on cheap price as this attracts the tourist them and the competitive
company get benefit from it (Mowforth and Munt, 2015). Governmental rules and regulations: - The mentioned firm are also affected by the
changing rules and regulations of government like tax rates and policies. Further, the
company have to maintain their services according to rules and regulations and introduce
changes in company so that they can affect their customers and help to maintain balance
between them (Nunkoo and Smith, 2014).
 Technological changes: - It is major issue for every firm because technologies are
growing rapidly which causing changes in the people’s life style. So cited company have
to choose effective technologies and recruit skilled and knowledgeable people who have
knowledge of technologies so that they can reduce the negative impact of those
technologies. Thomas cook is using effective and efficient technology for competitive
advancement. By using updated technology, the mentioned company is able to establish a
brand name for longer time and have technological advancement also (Smith, 2014).
4.2 Consequences of businesses failing to respond to market changes
Many times, the company fails to adopt changes because of some issues. The addressed
company also faces problems initially when the changes are introduced because for that the
company have to preplan the problems on the basis of assumptions so that they can minimize the
effectiveness of sudden changes. As the technology changes, the new technology becomes more
expensive and many times the company could not afford such cost of technologies and they faces
failure in front of their competitors (Stone, 2013). Other aspect which affects the company is
competitive advancement; if the mentioned organization has not planned strategies to compete
with competitive company then they fail to survive in the market. If cited company set their
prices high, which is not affordable by customers then it also leads to negative aspect to the
company. Hence, it is required to set prices according to buying capacity of customers. On other
hand, the changes of rules and regulations of the government can affect cited company. If
company fails to follow those rules and regulations, it affects customer chains. Therefore, the
company have to follow the rules so that they establish a good brand image in the market (Stone,
2013).
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CONCLUSION
It can be concluded that the above study introduces the impact of change on travel and
tourism businesses in which it gives information about current trends as well as issues to adopt
changes. Furthermore, it also gives a brief idea about the impact of these changes upon Thomas
cook and thus it helps them to adopt technological change and the changes in rules and
regulations to survive in market for longer. On the other hand, it helps to analyse that factors
which affect organisation in terms of introducing change in this company.
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REFERENCES
Books and Journals
Dickinson, J.E. and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Dickinson, J.E., Lumsdon, L.M. and Robbins, D., 2011. Slow travel: Issues for tourism and
climate change. Journal of Sustainable Tourism. 19(3 ). pp.281-300.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. CABI.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Nunkoo, R. and Smith, S. L., 2014. Trust, Tourism Development and Planning (Vol. 47).
Routledge.
Okumus, F. and et. al., 2013. Using local cuisines when promoting small Caribbean island
destinations. Journal of Travel & Tourism Marketing. 30(4). pp. 410-429.
Pritchard, A., Morgan, N. and Ateljevic, I., 2011. Hopeful tourism: A new transformative
perspective. Annals of Tourism Research. 38(3 ). pp.941-963.
Rogerson, C. M., 2013. Tourism, small firm development and empowerment in post-apartheid
South Africa. Small firms in tourism. pp.13.
Sharpley, R. and Stone, P.R. eds., 2010. Tourist experience: Contemporary perspectives.
Routledge.
Sharpley, R. and Telfer, D. J. eds., 2014. Tourism and development: concepts and issues (Vol.
63). Channel View Publications.
Smith, S. L., 2014. Tourism analysis: A handbook. Routledge.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Stone, P., 2013. Dark tourism scholarship: a critical review. International Journal of Culture,
Tourism and Hospitality Research. 7(3). pp.307 – 318.
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Online
Euro monitor highlights four key trends for UK travel and tourism sector. 2015. [Online].
Available through: <http://www.bighospitality.co.uk/Business/Euromonitor-highlights-
four-key-trends-for-UK-travel-and-tourism>. [Accessed on 1st June, 2016].
Future trends in the tourism industry. 2012. [Online]. Available through:
<http://www.ttgmena.com/Future-trends-in-the-tourism-industry/> [Accessed on 1st June,
2016].
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