Analysis of Contemporary Issues in Travel and Tourism Sector

This report provides a comprehensive analysis of contemporary issues within the travel and tourism sector, focusing on the UK market. It examines the impact of globalization, technological advancements, and changing consumer preferences on the industry. The report delves into key issues such as political instability, safety and security concerns, and climatic changes, along with their effects on businesses like Thomson Holiday. It further explores current trends, including green tourism, grey tourism, and customized holidays, and analyzes the niche tourism market. The report also evaluates how businesses can respond to these changes, offering strategies and justifications for adapting to the evolving landscape of the travel and tourism sector. Finally, the report concludes by summarizing the impact of these issues and trends on the sector, highlighting instances of business failures in responding to market changes.

CONTEMPORARY
ISSUE IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis of the issues driving changes in Travel and tourism sector...................................1
1.2 Analysing the current issues in the sector.............................................................................3
TASK 2............................................................................................................................................4
2.1 Current trends influencing change in UK travel and tourism sector.....................................4
2.2 Analysing the niche tourism market....................................................................................5
TASK 3............................................................................................................................................6
3.1 Analyse how travel and tourism businesses could respond to change..................................6
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
.....................................................................................................................................................7
3.3 Justify strategies for how selected travel and tourism businesses could respond to change8
TASK 4............................................................................................................................................9
4.1 Impact of issues and trends which brings change in travel and tourism sector ...................9
4.2 Business failing in responding to market change ...............................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and tourism is one of fastest growing industry in the world economy.
Globalization is one of the leading factor which has created a significant impact on the demand
and supply forces of the global market (Mowforth and Munt, 2015). It has helped minimizing the
geographical boundaries by liberalizing national policies of the country. This has helped in
integrating the travel and tourism sector of the world in an effective manner. Increasing
disposable income, high rate of information flow and enhancing travelling infrastructure has
helped in enhancing the demand within the economy (Kayar and Kozak, 2010). Travel and
tourism industry in effectively flourishing in the UK industry. The demand of developing well
defined networks and knowledge in the nation is essential to enhance the performance and
growth of the sector.
The present study will developing an in-depth understanding about the contemporary
issues faced by industry in the present market scenario and its impact on growth and
development of the companies associated. Different aspects of current issues and changes will be
critically analysed and evaluated in the study. For undertaking the present study Thomson
Holiday will be taken into consideration. The analysis will examine the impact of recent trends
on the travel and tourism sectors of the nation.
TASK 1
1.1 Analysis of the issues driving changes in Travel and tourism sector
Travel and tourism sector is one of the fastest growing and developing sector within he
economy. It creates a significant impact on the economic and social factors of the nation. UK is
one of the leading tourism destination for travellers around the world (Williams and Baláž,
2013). The heritage value, historical aspect, well developed infrastructural and advanced
industrial aspect has attracted large number of visitors for different travel purposes. Thomson
Holiday is well established tour operating company which is successfully operating its business
operations on global platform. The analysis will develop a detailed information about the issues
which are driving changes in Travel and tourism sector which effects the growth and
development of the business (Fu Tsang, Lai and Law, 2010). The major issues in the travel and
tourism sector developing significant issues in the economy are: Technological growth: It is a fundamental consideration for every tourism activity.
Technological development has helped companies in developing high and effective
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impact on enhancing industrial growth for tourism industry. Technology in travel and
tourism sector is mainly focused in two areas which involves transport technologies and
communication aspects for the industry. Transport technology helps has helped travel
industry in saving cost and time factor for the companies while enhancing demand within
the market (Page, 2014). Thomson Holiday has adopted and developing the
transportation technologies to integrate different markets with the UK market.
Communication technologies is another significant change driver for the industry as
developing technological impact and changing perspective of the travellers demand
effective synergy between information offered and prospective consumers of the
companies. Thomson Holiday is influenced by revolution in global communication which
has developed international communication to increase the reach of the business unit. Disposable income of people: The economic drivers on the global platform has created a
significant impact on demand and supply forces of the industries operating in the
international economy. This factor defines a shifting pattern of production and
consumption aspects around the world (Backer, 2012). Economic factors such as standard
of living, per capita income, rate of inflation etc. affect the disposable income of people
widely. Higher disposable income and low rate of inflation increases the demand for
travelling in the economy. This is because, if people have high disposable income at that
time only they prefer to spend their money on leisure and other related activities. This
factor has helped in changing the traditional economic assumptions of global trade
market for the tourism industry (Dasgupta, 2011). The integrated system of business
operations have changed the market trends and demand aspects within the economy.
Thomson Holiday focuses on developing different travel plans and promotional aspects
considering the economic drivers within the market.
 Changing preferences of people: This is another significant factor which has influenced
high rate of change in travel and tourism sector. The developing aspects in tourism sector
has developed wide options for travelling for the travellers (Hall, Hall and Saarinen,
2010). The reasons for travel and tourism is gradually changing to develop a significant
impact on the industry. This has helped companies in changing the product and travel
offers for the prospective travellers in the economy. Thomson Holidays analyses that
changing consumer perspective is one of the major change driver for the company which
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has influenced the company in developing travel plans such as eco-tourism, green
tourism, event tourism, heritage tourism etc. for the consumers.
1.2 Analysing the current issues in the sector
Travel and tourism industry is facing different issues within the economy which has
created a well defined impact on the growth aspects of the sector. These issues has been analysed
and evaluated from different secondary sources or the study. Major current issues analysed by
the travel and tourism sector are discussed henceforth: Political issues: This is one of of the major and most significant aspect of analysing and
evaluating the travel and tourism aspects within the country. The political factors of the
nation creates a significant impact on trade prosperity and growth in the country. The
current trends of the global economies has analysed that in the present multi polar
economies three dominant economic regions are North America, European Union and
the economies of Asia (Standing, Tang-Taye and Boyer, 2014). Every region has
different political aspects of developing trade and restricting the free movement of
commercial activities. Factors such as labour aspects, trade policies, barriers in travelling
or investment etc. are few significant aspects which has which has developed political
barriers for travel and tourism industry (Fennell, 2015). For example: European Union's
free movement and trade policies in Europe has liberalised the trade barriers in 22 nations
of the continents. However trade restitutions in Asian market has restricted the growth
and development aspect for the industry. Safety and security issues: This is one of the most crucial demand for travel aspects of
the country. Increasing cases of terrorism has created a wide impact on demand and
supply forces of the industry. The situation of terrorist attack and unrest situations in
countries have created a wide impact on the travelling demand within the economy. In
addition to this safety aspects related to natural disasters has also created a definite
impact on the industry growth (Weaver, 2011). These aspects has helped the travel
industry in developing different measures of international law to minimize the impact of
such events on the industry and enhance travel demand in the sector. For example British
Travel Agents, TUI, etc. are some major organisations which are working for the benefits
of the nation and organisations within this sector (Sigala, Christou and Gretzel, 2012).
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 Climatic issues: The climatic issue is another critical aspect of the industry demand and
development. This is one of the basic need and demand to analyse the demand aspect of
the industry. Tourism options regarding seasonal tour plans, adventure tourism, cruise
travelling etc are the significant considerations for the same (Hall, 2011). The climatic
changes in the present day situations have effected the tourism industry in different
counties and regions. UK is the nation where climate is moderate and effective for
travelling. However increasing access to weather prediction and information regarding
climate has helped the travellers in analysing the climatic conditions thus enhancing the
travel aspect in the nation.
 Loss of culture: Cultural aspect is another significant part of tourism industry. The
changing lifestyles has resulted in leaving the cultural influence way behind for the
residents. UK has developed the growth aspects of the nation effectively. The
globalization factors has integrated different lifestyles in the country which has resulted
in subsiding the individual cultural impact within normal people (Mak, Wong and Chang,
2011). The traditional English culture in food industry and living standards is hard to
find. This has resulted in losing demand for cultural and heritage travelling in the
country. Cultural value of tourist’s places gets elapsed when sudden changes are made in
order to seek the traveller’s interest.
TASK 2
2.1 Current trends influencing change in UK travel and tourism sector
UK market has analysed significant changes within the economy. It has effected the
demand and supply aspects in the market. The latest trends and changing aspects has helped in
developing the tourism aspect of the nation. UK is a well established tourist destination. The
country is rich in heritage value, cultural impact and rich historical background. Well developed
infrastructure and liberal policies of the government has helped the nation in developing tourism
aspect effectively (Cohen and Higham, 2011). The major tourism destination in the country are
London, Scotland, Wales etc. The trends which has influenced the travel and tourism sector of
UK are discussed as follows: Green tourism:This is one of the developing trend in the travel and tourism sector of the
world. Green tourism is a type of natural tourism activity which influences the travellers
to selected a destination which is surrounded by natural beauty and resources. People
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travel in the places like this to absorb the serene beauty and natural surroundings of the
area or destination. This has helped in influencing environmental awareness within
people (Yoo and Gretzel, 2011). Eco friendly activities are adopted by the people to
enhance natural and green travelling experience. UK economy has increased the demand
of green tourism subsequently. This has helped the nation in developing natural regions
and enhancing environmental awareness within the travellers. Thomson Holidays has
experienced significant increase in demand for green tourism in the UK market.
Developing tour plans for the same has helped the company in attracting large consumers
thus enhancing demand of the company (Lipman and et.al., 2012). Grey tourism: This is another contemporary aspect of tourism which has helped the
country in developing demand within niche market (Becker, 2016). This travelling aspect
targets old age travellers of the country or different parts of the world. The statistical data
reveals that 6.2 million overseas travellers visited Britain for grey tourism. This tourism
aspect has created a significant and well defined impact on the growth and development
of the industry. Thomson Holiday has planned tour operations for he same which has
helped the company in enhancing demand and developing high sales aspect within the
nation.
 Customization holiday: This is one of the most effective and well defined aspect of tour
planning and development. Companies in the present era has provided high customised
services to the consumers for developing travelling plans as per their their convince
(Law, Qi and Buhalis, 2010). This aspect considers the budget time and special demand
of the consumers and develop the best possible plans for the travellers. This tourism
aspect has helped in enhancing the demand within the industry. It has helped the
companies in developing wide profitability and growth aspects in the nation.
2.2 Analysing the niche tourism market
Niche tourism practice is one of the leading and most significant aspects of travel and
tourism industry. This provides tailored tourism plans top meet the specific needs and demands
of the consumers. This tourism practice creates a well defined impact on the growth and
development aspect of the nation (Dawn and Pal, 2011). Niche tourism helps contributes in
growth and development of the nation along with the economic and social perspective of the
nation.
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UK market is a well developed economy which has helped in creating wide and
significant tourisms demand within the economy. Niche tourism in the nation has contributed in
economic and social development of the nation. Sports tourism is a very effective aspect in
developing high growth and demand within the country (Peeters and Dubois, 2010). It is the
systematic, planned, developed and promoted approach of marketing the sport events in a
destination to gain maximum tourist attraction thus impacting the social, economic and domestic
growth of the destination country. It presents a great opportunity for destination seeking
aspirants, to increase the attractiveness, in terms of number of tourists they attract as for their
economic impact.
Wimbledon Championship in London is one of the most significant sports event which
helps in attracting large number of visitors in the country. It is one of the renowned and oldest
sport event within the country. Every year huge crowd of sports lover visits the nation and
creates a well defined impact on demographic, social and economic aspects of the country.
TRAVEL STATISTICS
 Around 493,928 travellers have visited UK for in the year 2015 for Wimbledon
championship (Connell, 2013).
 Around 24623 people have done overnight trip for attending the Championship on the
mentioned schedules in the 14 days tenure (Travel and tourism, 2016).
The stated statistics clearly portrays a well defined and significant contribution of sports
event in the growth and development of the regional growth of the country. The event has helped
in balancing the capacity and opportunity equation of the country (Huang, Yung and Yang,
2011). The sport events creates a high flow of local as well oversea travellers in the nation which
enhances development opportunity of the nation. It also helps the country in analysing the
infrastructural gap in the country and undertake effective measures to fill the same.
TASK 3
3.1 Analyse how travel and tourism businesses could respond to change
Change is the integral part of the business operations and demands to be dealt in an
effective and well defend manner by the businesses. UK is a well established tourist destination
and country is focusing on developing the tourism demand widely within the market. Thomson
holidays in an established business units providing effective and well defined activities within
the world (Quintal, Lee and Soutar, 2010). Change management is on of the essential and critical
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aspect for to company. Internal and external market analysis plays a significant role in dealing
with changes within the market. Thomson Holidays will analyse and respond towards the
changes by effectively considering the factors mentioned below: Political factors: The political factors of the country plays a significant and well defined
roles in managing the internal and external policies of the business and develop high
impact on the development aspect of the company. Analysis of government regulations,
policies and regulatory framework is important to attain a clear picture of current
working perimeters and upcoming changes within the country (Jamal, Taillon and
Dredge, 2011). For example Brexit issue may effect the travel aspect of the country
widely which may result in challenging the growth measures for the business unit. Hence
the business unit needs to develop the policies accordingly to deal with restricted visa
policies in the coming future. Economic factors: The economic factors have a significant impact on analysing the
demand and supply gap of the country and understand the changing aspects of the future
travel demand. The economic factors deals with the economic policies, per capita
income, inflation aspects etc. analysis of the above mentioned factors helps in analysing
the disposable income within people which may effectively help in analysing the demand
aspects in the country (Miller and et.al., 2010). The changing policies may directly effect
the demand and growth aspects in UK thus Thomson Holidays may analyse and deal with
to manage the changes for the company by providing discount, developing effective
pricing aspects for the company. Social factors: The changing demands of consumers and trends within the market is also
on of the significant indicator of changing market scenario for the global companies.
Changing demographic factors also influences travel demand (Lumsdon and McGrath,
2011). Thus Thomson Holidays regularly monitors the market trends and demands to
analyse upcoming changes and develop well defined strategies to deal with it. The
analysis of upcoming trends for example seasonal travel demand, medical tourism etc.
can also be evaluated by the same.
 Technological factors: These factors effect the growth and development aspect of the
businesses in a significant manner. Technological impact on transportation and
communication aspect needs to be monitored effectively to develop a well defined impact
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on business outcomes of the companies (5 key issues facing travel and tourism, 2012).
Travel industry demands wide access to effective information and technological base for
enhancing demand. This integrating business activity with changing technological aspects
helps in adapting changes by the business unit in an effective manner.
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
Responding to change in an affective manner is a significant challenge for the business
unit. It help the companies in effectively dealing with the upcoming changes thus to attain
effective and well defined results for organisational growth and development. Change
management aspects is a challenging aspect for the business unit. To deal with the changes
occurring in external environment of the company Thomson holidays can adopts the following
strategy: Adhering consumer needs and demands closely: Changing needs and demands of the
consumers plays a significant and well defined impact on the growth and development of
the business unit. Thomson Holidays can keep a close check on changing needs and
demands of the buyers effectively analysing the same to develop effective strategies for
enhancing growth measures in the economy (Cohen and Higham, 2011). A close analysis
of consumer trends in the economy will help the company in effectively analysing the
gap between consumer needs and organizational offers within the economy. This will
help the business unit in effectively analysing the trends in the market to deal with
changing market demands.
 Develop well defined promotional measures: developing effective communication and
promotional aspect also develop a significant growth measures on the business growth
and development. This strategy will help Thomson Holidays in developing effective
demand along with creating base for communication with consumers (Yoo and Gretzel,
2011). This will help the company in enhancing research aspects for the business thus
creating effective knowledge about the recent needs and demands within the economy.
The company an make use of different promotional means such as placing ad on social
networking site, newspapers, magazines and television etc.
3.3 Justify strategies for how selected travel and tourism businesses could respond to change
Dealing with change in an effective manner is a significant aspect of work management.
It will help the business unit in creating effective and well defined impact on business growth
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aspects. The company adopted different strategies to deal and adopt the change for effective
business growth (Lipman and et.al., 2012). Analysing and adhering consumer needs for
Thomson Holidays will help the business unit in developing effective impact on developing
strategic development aspect for the business. Analysis of consumer needs and demands will
help the business unit in developing competitive edge within the economy. It develop an
extensive research on different aspects of consumer trends. This aspect will help the company in
developing sustainable grwth measures. Moreover the stated aspect will be costly but profitable
aspect for overall business development within the economy (Sigala, Christou and Gretzel,
2012).
Another aspects to deal with changes proposed was to develop promotional aspect by the
company. Promotional measures are developed and designed as per the consumer needs and
recent trends. This aspect will be another significant measure to undertake market research
aspect to analyse the trends in the economy. Along-with this the stated measure will help the
company in enhancing sales and demand for the business which will help in enhancing profit
maximization along with change management.
TASK 4
4.1 Impact of issues and trends which brings change in travel and tourism sector
Effectively managing and responding towards the change is one of the important part of
travel and tourism industry. Further, the change element in the travel and tourism sector having
high impact on the operations and functioning of business venture (Mak, Wong and Chang,
2011). Moreover, the travel and tourism sector is mainly customer oriented and the firms who
are working under it have to take relative measures in order to make this industry much more
stable. Further, being one of the largest source of employment, there are various issues which
influencing the performance of this sector upto great extent. There are various issues exist in the
travel and tourism sector and some of them include: Lack of infrastructure: Infrastructure is one of the core requirements because customers
requires convenience all the time. They will spent more when they will get best of the
services in the hospitality sector (Law, Qi and Buhalis, 2010). Further, the infrastructure
requirements in the travel and tourism sector will range from physical framework i.e.
from transportation to urban framework like access of roads, water supply and telecom
facilities as well (Peeters and Dubois, 2010). Lack in infrastructure will surely have high
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