Thomas Cook's Analysis: Contemporary Issues in Travel and Tourism

This report examines contemporary issues and trends in the travel and tourism sector, focusing on challenges and opportunities faced by businesses like Thomas Cook. It analyzes the impact of technological advancements, ecotourism, and urbanization, as well as post-Brexit issues and terrorism. The report evaluates current trends such as adventure and sports tourism, using methods like PESTLE and SWOT analyses to assess responses to changes. Strategies for adapting to market shifts are developed, with justifications for their use. The report concludes with an assessment of the impact of these issues and trends on the business context and the consequences of not addressing them effectively. It provides a comprehensive overview of the sector's dynamics.

Contemporary Issue in
Travel and Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Different current issues by using proper approaches and resources.....................................1
1.2 Analysing various issues by using appropriate methods and techniques..............................2
TASK 2............................................................................................................................................3
2.1 Evaluating current trends influencing the tourism sector.....................................................3
2.2 Analysis of current trends using appropriate methods..........................................................3
TASK 3............................................................................................................................................5
3.1 Analyse response towards change in travel and tourism sector............................................5
3.2 Strategies development in relation to response to changes by selected business entity.......6
3.3 Justify the strategies which are using in response to modification.......................................7
TASK 4............................................................................................................................................8
4.1 Impact of issues and trends on driven business context........................................................8
4.2 Results when the change are not dealt properly....................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Tourism can be stated as one of the effective sectors which has taken rapid growth within
economy. This kind of concept is not just limited to the leisure travellers but also business ones,
non-leisure and many more. In the modern scenario, there are various kinds of factors which
have changed due to the changing trends that are changing on regular basis (Becker, 2016).
There are tour operators along with travelling companies so that various kinds of issues along
with inventing techniques and methods by which all kind of issues can be resolved. Company
taken for this report is Thomas Cook which mainly deals in travel and tourism sector since 1841.
There are various things which are being discussed in this report like current issues and trends
within travel and tourism sector along with ways by which it respond on various kinds of
changes in trends. Besides this, there are various impacts which are being made due to changes
which will also be discussed.
TASK 1
1.1 Different current issues by using proper approaches and resources
This can be stated as Dominant for the country in order to consider various kind of issues
and other problems so that this sector can be restrained. One of the beautiful and appealing
destinations is Birmingham. But due to the emerging growth in tourism sector of Birmingham,
there are numerous kinds of issues which are being determined and these are even linked with
other kinds of tour agencies along with other body states (Visit Britain reports increase in
volume and value of inbound tourism in 2015). Moreover, they are even also working over the
resolution of those kinds of issues for carrying out in below described manner:
Technological Advancement & Disintermediation: There has been increment in the
annual income of country due to modifications and alternation in technologies. This in turn has
led to various kinds of organisational issues like disintermediation. This is also impacting the
process of company as well. By the help of this, company has mainly led to national growth
along with conducting operations in a better and effective manner. There are numerous issues
which are being faced by Thomas Cook which in turn affecting company in a negative manner.
Ecotourism: There are various kinds of terms which are being carried out in travelling
and tourism sector and this can provide help to the respective country in coordinating activities
accordingly (Cohen and Cohen, 2015). Another major concern is pollution in environment but
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Birmingham has implemented many challenges by ecotourism in their structure including the
information management along with growth of company which has hindered digital technologies
within company. By the help of online portal service, tasks and activities can become easy like
online tickets, hotels and many more.
Urbanisation or Urban Tourism: This can be stated as the term which can explain the
various kinds of multiple tourist practices which has the country main interest or destination.
There are number of issues which are being faced by company due the people who are more
shifting towards the urban tourism which in turn can decline the other type of destination along
with places of tourism (Cohen and et. al., 2014). Thomas Cook has come up with the problems
of which solution is highly essential and thus, it can be solved with developing and modernising
less urbanised places. By promoting and effective advertising, this can be resolved in a better and
effective manner.
1.2 Analysing various issues by using appropriate methods and techniques
Travel and tourism sector has been developing vastly in the past few decades as in
modern scenario, people are mainly preferring activities of travelling and discovering many
adventures. There are reports of the manager in which they have been carrying out many of
issues along with modifications happening within organisation which can be prevented by giving
out some kind of suggestions (Connell, 2013). There are various kinds of destinations which has
the appealing and attracting features which can be much more satisfying and less costly. But,
there are various kind of issues which have been determined within the UK after Brexit which
has limited growth of Thomas Cook and some of them are being described as below:
Post-Brexit Issues: In current situation it is still unclear that what are the impacts which
will Brexit make on the economy of the UK. Estimates can be taken upon the impact of the long
term along with short term issues which mainly vary from customer behaviour along with
confidence like immigration and employment of law, issues of purchasing power along with
posted employee impact and directive of working time and many more. Besides this, there can be
major influence on the uncertainty over movements of foreign rate of exchange and input cost
modifications like commercial consideration like workers, lease costs, workers and many more.
This is being needed by company for selling out these on the wider and broad agenda (Dickinson
and et. al., 2014).
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Terrorism: There are various kinds of threats which are increasing on a rapid scale and
among them, major one is Terrorism which has been impacting the UK to a high extent. There
are recent attacks of terrorists in the UK which have mainly impacted the tourism sector of
country as there are safety issues which come on stake for visitors. Example can be taken up of
Manchester Bombing and terrorists attacks.
TASK 2
2.1 Evaluating current trends influencing the tourism sector
There are various kinds of market trends which have become flexible in nature within
certain tenure. Earlier, people have habit of visiting the places for various kind of purposes like
business or adventures but after upcoming up of digitalisation along with better marketing and
number of travellers which are mainly increasing each and every day (Hall and Page, 2014).
Hence, it is highly essential for the Thomas Cook for evaluating and modifications which as the
certain problems along with the trends for having effective and appealing packages for
consumer.
Adventure Tourism
There are various kinds of modern tourist trends which are much more different as
compared to the earlier era or travelling trends. There are certain places of tourism which has
been including many of the places like remote places, trekking, bungee jumping and many more.
This kind of sector has been observed with the increment within the productivity of an individual
and thus, create innovation and strength within team (Hannam, Butler and Paris, 2014). Thomas
Cook, structure has many kind of packages along with various deals for supporting the offers of
adventures. For example Birmingham famous city of England where tourism can hangout at
different places for adventure purposes.
Sports Tourism
This kind of factor is highly famous and one of the reason for high tourism which in turn
has lead country for more tourists and travellers. There are many of the vents which has been
operated by Thomas Cook and due to that company has attained high profit ratios along with
better services. Example can be taken up of Olympics and Paralympics which were organised in
Birmingham, 2012 along with various visitors which were being increased in nation. There are
various kind of tourism which was increased to 36.7 million in 2017.
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2.2 Analysis of current trends using appropriate methods
There is the development which is being needed for entire trend within market which are
there at various kind of places in across globe. Hence, effective steps are highly essential which
needs to be taken for various kind of issues along with conflicts in effective way. There are
issues along with conflicts which needs to be solved and thus management of Thomas Cook has
been determining them and resolving it in order to functions can b done in much more better and
effective manner (Hartmann, 2014).
Thomas Cook needs to utilise it in appropriate places of market which in turn can aid the
trading within the various kind of market segments. This kind of process is highly essential for
the company in order to analyse the trends along with the formulation of various marketing
strategies. There are various kind of methods which are being utilised by company for
accumulating along with identifying market trend:
 Primary.
 Secondary.
 Quantitative
 Qualitative.
Niche tourism is the sector which is about certain market along with tourism stream for which
are visitors are increasing. There are some of the mentioned tourism market niche as per proof or
the accumulated research over which Thomas Cook will provide various kind of services and
products as tour packages:
 Cruise
 Adventure
 Golf
 Medical
 Wellness
 Eco-tourism
 Polo
 Religious tourism
 Film Tourism
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Adventure Niche: One of the significant speciality of market is experience tourism. The greater
part of United Kingdom organizations are expecting to this speciality as individuals are more
probable contributing in assets and find new components (Kim and Ritchie, 2014). This is a
standout amongst the most valuable fragments that is producing advantage to an ever increasing
extent. Sail round England, cycle ascend across the nation and so forth are made from this
excursion including the Exhibition hall, wildernesses, mountain climbing and so on.
Subsequently, tour design ought to be educate on the parameters of goal. For example in
Birmingham there are so many entertainment and leisure venues and consider largest
entertainment complex city of Europe where place like Resorts world Birmingham consist of
various attractive things that satisfy the needs of adventure in Niche.
TASK 3
3.1 Analyse response towards change in travel and tourism sector
There are various kind of business operations which mainly depend upon the functioning
up of business environment which can identify the growth and needed modifications within
company. There are various kind of changes which has been done after implementation of digital
technology within traditional methods along with techniques. Thomas Cook is a big brand who
mainly deals in travel and tourism sector. In order to cope up with various modifications within
company and thus for that PEST analysis or SWOT analysis can be done. Below described is the
PESTLE analysis of company:
SWOT analysis of Thomas cook:
Strength Weaknesses
The staff members of referred enterprise are
effective enough that they give their full efforts
towards achievement of the organisation’s
goals and objectives.
The impact of change is easily managed as the
work force is dedicated towards the growth of
firm.
The referred institution fails to do the full
capacity utilisation of the provided resources
like the advance applications.
Threat Opportunity
Change in the factors that has monetary impact
on business is the major threat to business like
Favourable alteration in the external factors
like reduction in the fuel cost etc. can help the
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increase in taxation. enterprise in maximisation of profit.
THOMAS COOK PEST ANALYSIS
Political Factor There are number of operations for company which has been influenced
due to determination of long term profits of Thomas Cook. There are high
chances that Brexit will bring out political instability within country and
thus it will effect the industrial sector. This has bought out political risk
along with level of corruption and protection of intellectual property and
many more (Luh Sin, Oakes and Mostafanezhad, 2015). Along with this,
tax rate along with incentives are being also considered as political risk
which can restrain growth of company.
Economic Factor There are two types of economical factors which has the potential of
impacting Thomas Cook like interest rate, saving rate, inflation rate,
economical cycle and many more which has set many of investments
along with demand within economy of company. On the other side, there
are various micro elements which can provide assistance in gaining
competitive advantage.
Social Factor There has been changing within the modern era due to Lifestyle and
Culture of society in order to have better living standard along with
various modifications. Company mainly refers to customer response
along with generating revenues so that missions and objectives can be
attained. In this kind of element, it is highly essential for investigating
leisure, educational level, population and culture and many more.
Technology Factor There are various kind of modifications which are mainly carried out in
advancement in life of an individual. By utilising digital technology,
market position of company has been improved as compared to past few
years (Mariani and et. al., 2014). There has been impact on the customer
service area along with process of chain value and structure of Thomas
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Cook.
In above statements, there has been discussion of PEST Analysis which in turn mainly represent
the major changes along with influence on flexible market. This has enabled company to expand
the area of operations within large market such as China, India and many more.
3.2 Strategies development in relation to response to changes by selected business entity
There are various kind of changes which has been made within the process of company
and those changes are mainly related to the trends and technologies which in turn can impact
conduction of operations along with practice of business. Business of Thomas Cook has directly
affected cause of alteration in tourism sector (McKercher, 2016). In order to deal in the market of
expanding countries like China, India, company needs to adopt fundamentalism nature. Along
with this, variety of packages and services are being provided by the Thomas Cook. Here, there
are two companies which are being mentioned along with strategic explanation which is mainly
attempted by organisation in business expansion:
Thomas Cook: This is one of the most effective chain who deals in travel and tourisms
sector. This company has been focusing of getting platform of opportunities where they can
expand and thus attain growth. It is highly essential for company to utilise effective strategy for
accomplishing vision.
WhiteBread Plc: This company is UK based company and one of the effective largest
hotel chain which has been expanding in whole world. There are various kind of marketing tools
which are being opted by company for expanding the business by focusing on attracting
customers.
MARKETING MIX OF THOMAS COOK
Price  This company has expensive packages as compared to the other
rival companies which comes under budget of client.
 Using transparent structure without any kind of terms and other
hidden charges.
 Flexible costing framework for certain services provided by
company.
Product  Company mainly allocates hotel and other services which are
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luxury in nature.
 Complementary services are being provided for better
experience.
 Guidance provided for entire tour.
Place  Feedback is being taken of the trip of consumer along with ease
access by website, online or app booking.
 Essential hotel along with location which give services like
airport, parking facilities and many more.
 This company has reach to every city and state of UK even
including small places.
Promotion  Discounts and other offers for booking online.
 Media can be utilised in better way like promotion of social
media or e-newsletter and many more.
 Promotion mix strategy can be utilised in international events
for promotion.
 Various tools and techniques like newspaper, radio poster and
many more.
By this, business can be expanded and thus the promotion of travel and tourism sector
everyday. By the help of this, Both of the mentioned companies will be able to meet up buyer
satisfaction level.
3.3 Justify the strategies which are using in response to modification
There are many of the conflicts along with issues which are being faced and thus in order
to improve them, certain strategies are being formulated. Number of tools and techniques are
being adopted by company so that consumer retention can be promoted and thus aims and
objectives can be attained and thus can appropriately applied within the process of company.
Thomas Cook: Company has the need of developing and altering the services in order to
expand the business along with creating high number of users. It is highly essential for the
company like Thomas Cook to arrange the objectives which they want to attain and thus
formulate plans and strategies for the same (Oviedo-García, 2016). It is being needed to evaluate
the opportunities, strengths, threats along with weaknesses in effective way. This kind of
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techniques will provide assistance in understanding the areas where the development and
innovation is being needed and thus the objectives of company can be attained. Therefore, it can
help out in assemblage of business objectives.
WhiteBread Plc: This company will be choosing the marketing mix strategy as the
product development strategy which in turn can provide help in fulfilling demands along with
making modifications within project. By the help of marketing mix , evolution of entire process
can be done.
Hence, it can be stated that ideas are much more effective which has been utilised in recent case
studies.
TASK 4
4.1 Impact of issues and trends on driven business context
There are various kind of ways which has in turn affected the the travel and tourism
sector in direct and indirect ways. Thomas Cook is one of the effective tour operator which
mainly deals in United Kingdom along with other countries as well. There is high level of
goodwill of company within market and thus it mainly effect the services and its cost which they
will be rendering (Reisinger, 2015). The main focus of the company is on expanding the area of
operations along with dynamic nature of company and market it is highly essential for evaluating
various changes which are mentioned below:
Employment level: There is the impact on the pattern along with the working behaviour
of company. There are various kind of changes which are being done on the structure of Thomas
Cook which can manipulate in better way.
Technology: Thomas Cook is one of the effective tour operator which mainly provides
the effective clients services by opting out the advanced technology which can enhance the
experience of customers along with quality of services.
Service and Products Impact: There are various kind of services which are being
provided by company to clients. Along with this, company needs to provide cost effective
services for certain customers. Below mentioned are some of factors by which company can
expand area of operations:
 Merger
 Acquisition
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 Liquidation
 Consortia Forming
4.2 Results when the change are not dealt properly
There are various kind of changes which are mainly needed by company to lead various
kind of consequences which are being described below:
This can mainly lead to declining in margin and firm in dealing with activities with decreasing
management of services (Standing, Tang-Taye and Boyer, 2014). Therefore, company will be
facing the downfall condition. Effective and essential decision will be managed in effective
manner. There are various consequences which can lead to failure: Decreased services: There are various kind of effective services which will be provided
by Thomas Cook and it needs to be made sure that the maximum level of satisfaction
can be given to customers. Destructive Brand Image: This can be stated as one of the effective part which can in
turn affect the demands along with needs of consumer in negative manner.
 Lack of consumer satisfaction: There are various kind of users along with buyers who
can not attain the demands along with needs if the failure in change attempt. This in
turn can lead to company for business downfall (Timothy, 2014).
CONCLUSION
From the above report, it can be concluded that there are many of the contemporary
issues which are being faced by travel and tourism sector due to market and trends change.
Besides this, determining issues along with managing process is the process which company
needs to follow so that objectives can be attained in better and effective manner.
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REFERENCES
Books and Journals
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Cohen, E. and Cohen, S. A., 2015. A mobilities approach to tourism from emerging world
regions. Current Issues in Tourism. 18(1). pp.11-43.
Cohen, S. A. and et. al., 2014. Understanding and governing sustainable tourism mobility:
Psychological and behavioural approaches (Vol. 43). Routledge.
Connell, J., 2013. Contemporary medical tourism: Conceptualisation, culture and
commodification. Tourism Management. 34. pp.1-13.
Dickinson, J. E. and et. al., 2014. Tourism and the smartphone app: Capabilities, emerging
practice and scope in the travel domain. Current Issues in Tourism. 17(1). pp.84-101.
Hall, C. M. and Page, S. J., 2014. The geography of tourism and recreation: Environment, place
and space. Routledge.
Hannam, K., Butler, G. and Paris, C. M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Hartmann, R., 2014. Dark tourism, thanatourism, and dissonance in heritage tourism
management: new directions in contemporary tourism research. Journal of Heritage
Tourism. 9(2). pp.166-182.
Kim, J. H. and Ritchie, J. B., 2014. Cross-cultural validation of a memorable tourism experience
scale (MTES). Journal of Travel Research. 53(3). pp.323-335.
Luh Sin, H., Oakes, T. and Mostafanezhad, M., 2015. Traveling for a cause: Critical
examinations of volunteer tourism and social justice. Tourist studies. 15(2). pp.119-131.
Mariani, M. M. and et. al., 2014. Managing change in tourism destinations: Key issues and
current trends. Journal of Destination Marketing & Management. 2(4). pp.269-272.
McKercher, B., 2016. Towards a taxonomy of tourism products. Tourism Management. 54.
pp.196-208.
Baker, D. M. A., 2014. The effects of terrorism on the travel and tourism industry.
International Journal of Religious Tourism and Pilgrimage. 2(1). p.9.
Oviedo-García, M. Á., 2016. Tourism research quality: Reviewing and assessing
interdisciplinarity. Tourism Management. 52. pp.586-592.
Reisinger, Y., 2015. Transformational tourism: Host perspectives. CABI.
Standing, C., Tang-Taye, J. P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing. 31(1).
pp.82-113.
Timothy, D. J., 2014. Contemporary cultural heritage and tourism: Development issues and
emerging trends. Public Archaeology. 13(1-3). pp.30-47.
Online
Visit Britain reports increase in volume and value of inbound tourism in 2015. 2017. [Online].
Available through:
<https://www.hospitality-interiors.net/news/articles/2016/01/457364505-visitbritain-
reports-increase-volume-and-value-inbound-tourism-2015>.
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