Analysis of Contemporary Issues in Travel and Tourism Report

This report provides a comprehensive analysis of contemporary issues and trends within the travel and tourism industry, focusing on the UK market and the company Titan Travel. The report examines critical factors driving change, such as environmental awareness, technological advancements, and security requirements. It explores various tourism types, including outbound, inbound, recreational, and adventure tourism, with a detailed focus on adventure tourism in the UK. The report also evaluates current trends, analyzes the impact of issues on businesses, and discusses how companies like Whitbread PLC are responding to market changes through strategies like digitalization. Furthermore, the report includes an analysis of the positive and negative impacts of environmental and economic factors on the industry, offering insights into the challenges and opportunities faced by businesses in adapting to evolving market dynamics.

CONTEMPORARY ISSUES
IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysing the problems that are currently driving changes in travel and tourism...........1
1.2: Analysing various issues by way of using suitable techniques and methods .................2
TASK 2............................................................................................................................................3
2.1 Evaluation of current trends that influence change..........................................................3
2.2 Analyse a current trend using appropriate techniques and resources...............................5
TASK 3............................................................................................................................................5
3.1 Analyse how travel and tourism businesses could respond to change.............................5
3.2 Strategies development in relation to response to changes by selected business entity. .7
3.3 Justify the strategies which are using in response to modification. ...............................9
TASK 4............................................................................................................................................9
4.1 Impact of issues and trends on driven business context. .................................................9
4.2 The likely consequences of businesses failing to respond to market changes. .............10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The industry of travel and tourism plays an significant role in developing the economy of
the country as it assists in the generation of many employment opportunities in the country and
generating huge revenues for hospitality oriented organisations(Weed, and Bull, 2012). Thus, it
is the responsibility of both the government and private sector to indulge in the activities that
lead to the development of the travel and tourism sector. For this purpose they should try to
formulate policies and strategies that assist them to achieve the target. The company named Titan
travel, a UK established company which works in travel industry is being chosen here for the
preparation of the report. This project will discuss about the current trends in the travel and
tourism industry and the related issues which are faced by the companies in the sector. In relation
to this, the strategies that are adopted by the companies in coping with these competitive changes
are discussed here(Wang, Ayres, and Huyton, 2010).
TASK 1
1.1 Analysing the problems that are currently driving changes in travel and tourism
Travel and tourism sector is one of the most fastest growing sector in the current
economy which has also supported by many private and government organisations. As there are
lots of private as well as government authorities which are engaged in providing travel and
tourism services are contributing their individual efforts so as to achieve growth and success of
tourism industry(Salazar, 2012). This also assist them in gaining huge revenues. This will lead
to an adverse impact on the growth of the tourism industry. Thus the companies have to consider
various elements so that they can attract a huge number of travellers from across the globe. The
elements which are needed to be considered are given below:
Increased environmental awareness: This is a very critical factor which is nowadays
considered as an driving change in the tourism and travel sector. This have high level of
importance that is related to the prevention of nature from any form of damage. For serving the
same purpose the tourism sector have introduced green tourism which have considered the safety
and protection of tourism of the nature. The wastages and garbage should be dumped properly in
the place that is provided by government. The pollution levels have also increased in the
countries due to travel and tourism sector.
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Modification of technologies: More and more tourism companies are modifying and
advancing technologies at the tourist places which is enhancing the experiences of the
visitors(Ryan, Ghazali, and Mohsin, 2011). Thus the government and other private companies
have provided advanced technologies rather then using outdated technologies which spoils the
experience of customers because of which they show less willingness in visiting tourist
destinations. Tourism companies provide the visitors with the argument and virtual reality so that
they can view the hotels and cabins before they book them.
Reduction in cost of airlines: Nowadays, more and more customers are shifting towards
airways as their source of transportation because it saves time which is these days is very crucial.
The companies are focusing on keeping the prices of the airlines low so that it enhances and
increases the tourism sector. The primary research the tourists do when they plan vacations is to
search the prices of flights and if they find the prices unreasonable they may cancel their plans
and thus it will affect the tourism sector badly. The rise in the level of competition amongst
transportation service providers have emerged to be a major influence in the hospitality sector.(
Rogerson, and Visser, 2011).
High security Requirements: Each and every visitor would love to visit only that place
where they can feel secure and safe because almost every one travel with their families and
friends which makes the security reasons even more crucial. The rise in the activities of terrorism
have emerged to be a major hospitality as it exempting people to visit the country. Thus, the
government of the country is focusing on stopping these activities and ensure and take
responsibilities for the protection of travellers visiting in country which will increase the
tourism. The government of UK has recently provided for the tourists of the company with the
safe and secure accommodation and other facilities in the case such activities happen in the
country which boosts the confidence of the tourists and they feel safe in visiting the country for
tourism purpose.
1.2: Analysing various issues by way of using suitable techniques and methods
Travel and tourism plays an significant role in the improving and providing support to the
economy of the country. The tourism industry helps in increasing the employment opportunities
in the market, helps in rising the living standard of people and also in generation of income.
Changes in the conditions of the environment of UK impacts the tourism sector in both negative
and positive manner(Phillips, and Moutinho, 2014).
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Positive influences of the issues: Changes in the environment and whether of UK has
impacted the tourism sector of the country in a positive way as pleasant and warm condition of
whether promoted the tourism sector. For instance, the rise in the rainfall patterns in the country
has made the environment pleasant which attracts the visitors more than any other place.
Decrease in the rates of exchange i.e. Pound Sterling persuades people to visit the country as it is
will comparatively budget friendly (Peeters, and Dubois, 2010). The counter terrorism measures
which has been taken up by the government has resulted in the more in-bound visitors in the
country impacting revenue availed in the positive manner.
Negative Influences of these issues: All of the issues can also impact the travel and
tourism sector in a negative manner also. The destinations which have significant temperature
changes like very cold or hot may impact the health of the visitors and can cause infections and
other related problems (Murphy, 2013). Also, the environmental disasters also impact the
tourism of the country as well as other conditions related to economy also. Increasing the value
of currency of country may also impact the tourists that visit to country as it will increase the
cost of tours and different people have different income which affect their overall budget which
may decrease the number of visitors that visit to country. The political unrest in the country
which has been availed through BREXIT have caused a negative influence in the sales figure of
the Titan Travel. The related sectors include food services, transportation services, food services,
communication services, hotel services and airline services. The negative quality and lack of
services provided by these sectors causes an huge impact on the travel and tourism sector.
TASK 2
The current trends create a large impact over the tourism and travel industry in UK. In order to
have proper understanding regarding the the impact of these issues and trends, various graphs,
statistical methods and tables have used. As per this purpose of of expanding the business in a
niche market of tourism, a proper analysis is needed to be done for the present trends of the
market (MOs cardo, 2011).
2.1 Evaluation of current trends that influence change
There are many types of activities related to tourism which is needed to be introduced as
leading trend in tourism and travel industry. The visitors travel from one place to another for
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various reasons. The following reasons impact the selection process of tourist destination. The
various forms of tourism are discussed as under:
Outbound tourism: This refers to the form of tourism under which the visitors tend to travel
outside the boundaries of the country so they can explore the other places.
Inbound Tourism: Under this type of tourism, the visitors travels within the boundaries
of the country (Mok, Sparks, and Kadampully, 2013). United Kingdom is considered as one of
the most suitable and beautiful destinations for the tourism which have increased the inbound
tourism of the country.
Recreational Tourism: Under this kind of tourism the visitors travels a destination in
order to relax themselves from their regular routine life.
Pleasure tourism: This is a kind of tourism which the tourists plans when they want to
spend stress free quality time in a peaceful place that can refresh their mind and soul.
Cultural tourism: Under this type of tourism, travellers plan their trips to build a
knowledge regarding the culture and history of the destination they visit.
Nature tourism: When the tourists plan a vacation to explore the wildlife and nature of
the destination or the place.
Sport tourism: This kind of tourism is conducted when the visitors are visiting the place
for a sport activity or related purpose (Isaac, and Çakmak,2014).
Religious tourism: Under this kind of tourism, the tourists plans vacations for the
purpose of visiting religious and holistic places of the destination.
Adventure Tourism: This is considered as one of the most common form of tourism
these days. Under this kind of tourism tourists visit a place for purpose related to adventurous
activities, joy and entertainment. The activities which come under adventure sports include river
rafting, mountain climbing, trekking, caving, rock climbing, waterfall rappelling, hot air
ballooning, scuba diving, sky diving and snorkelling etc.
Medical or health related tourism: under this kind of tourism, the visitors go for the
purpose improvement of health conditions, or for the fitness purpose. This tourism relates to all
the health related activities (Isaac, and Ash worth, 2011).
Here the type of tourism which is considered is adventure tourism. There are various
destinations in the United Kingdom that are related to adventure sports. The example of these
destinations include mountain experience in the lake district, motor safari in Cheshire, sea
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Kayaking in Scotland, Mountain Biking in Wales, cloistering in Pembrokeshire, Archaeology in
the Scillies and Sailing in Devon. All of the mentioned destinations attract the tourists that have
interest in adventurous sports and are willing to visit adventure destinations. The increase in the
tourism in the above sectors have increased the opportunities of employment in country and the
income generation from the sector have provided support to the economy of UK.
2.2 Analyse a current trend using appropriate techniques and resources
TASK 3
3.1 Analyse how travel and tourism businesses could respond to change.
Travel and tourism is consisting to be the most effective sector which create various
benefits to developing the economic condition of country. Business operations and activities are
significantly based on the functioning of business environment that helps in determining the
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growth and potential changes within the company. Whitebread.Plc is the UK's biggest hotel,
restaurant and coffee shop operator (Higginbotham, 2012). The company has around 50000
employees, the business mainly operates in two different divisions premier Inn and Restaurants
and Costa. After the effective implementation of digitalisation there are numerous changes in the
operations and functions of travel and tourism sector. In the past decade’s organisations were
used traditional methods which fails in providing benefits to the firm, by the use of traditional
method organisations and its management are not able to communicate with large number of
people, so organisations are concern on applying modern techniques as to grabbing attention of
more and more customers. In respect to establishing cooperation with alteration PEST analysis is
applied by organisations. The proper evaluation of PEST is described as below:
WHITBREAD. PLC PEST ANALYSIS
Political Factor This consist to be the primary element of environmental analysis. This has
direct influence on the functions and operations of the firm by analysing
the long term profitability of Whitbread.plc. Bruit has political imbalance
in the country of UK, it has direct impact on the business activities of
travel and tourism. IN each country government create some rules and
legislations which are different from the norms of other countries and it is
essential for each business enterprises to follow the rules and legislations
in respect to expanding all business operations in effective manner (Hall
and Gössling, 2013). Changes in these framework, affect the overall
business operations for example any kind of new rules and legislations
increase the income tax which is needs to be followed by the company.
Economic Factor It is essential responsibility of management and higher authority of
company to analyse the inflation and deflation rate which may impacted
on the operations of firm. It is essential for the country to evaluate the
actual rate of the currency as to providing adequate benefits to the firm or
its operations. Major two type of economic factors arises which impact
the Whitbread.plc such as saving rates, interest rate, economic cycle,
inflation rate, foreign exchange rate etc.
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Social Factor This is also considered as an another effective component of macro
environmental factors. In this culture and lifestyle of people plays
effective role. In the modern era the culture and lifestyle of people has
been changed due to change arises in the environment. This leads the
better living standard of people. The major purpose of each business
enterprises is to satisfying the needs and wants of people through offering
them variety of goods and services as per their own choice and
preferences.
Technology Factor This is also an important element of macro environmental factor which
has direct or indirect influence on the operations of firm in effective
manner. In an organisation managers are responsible for implementing
technological changes within the technologies and equipment’s which are
applied by organisations as to attaining growth and success within the
market. In whitbread.plc this kind of changes are effective in enhancing
the customers base.
The associated PEST analysis of Whitebread.Plc explains the major chnages and their
impact on the dynamic market condition. This has carried out the expansion opportunities for
company as Whitebread.Plc can expand their business operations at large market such as China,
India etc(George, 2010).
3.2 Strategies development in relation to response to changes by selected business entity.
In the modern era competition is so high at market place and organisations are widely
concern on attaining high growth and success through implementing appropriate changes within
the operations of the firm. Changes and alternations are effective in leading the business
operations in effective manner. Various kind of alteration arises within the operations of an
organisation, the changes are significantly connected to the trends and technologies of the firm.
This has direct influence on the operations of firm (Frolic, 2013). The business operations and
functions of Whitbread.plc has influenced through the changes arises in the tourism industry.
This is essential for Whitbread.plc to carry out effective deals in more expended geographical
areas like China, India etc. thus the Whitbread.plc offers variety of products and services of
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Costa Coffee and Premiere Inn and Restaurant as to grabbing the attention of more and more
customers. The expansion of company in two different areas are described as below:
Premiere Inn: It is the UK's largest hotel chin of the firm of Whitbread.plc, the company
has expanded its business operations all over the globe. The company is concern on applying the
tool of marketing mix in respect to expand and develop their functions by aiming significantly to
the targetted segments.
Costa Coffee: It is an another largest coffee chain in UK. The company is also focused
on enhancing their business operations at global market through offering variety of products and
services at market place.
MARKETING MIX OF WHITBREAD.PLC
Price This considered as the primary aspect of marketing mix. The company
is using transparent costing strategy without any terms and hidden
charges(Farmaki, 2013).
The products and facilities of the firm is expansive in comparison of
the other organisations.
Product This can be considered as the representative of firm which create value
in developing the operations of firm through offering variety of
products to their significant customers. The company is providing
luxury rooms, décor, good and qualitative mattress and appealing
interior.
Place It also refers as an essential element of marketing mix and it is the
major responsibility of organisation to select the market in which the
demand and need of products are high. Luxury hotels and locations
which offers variety of services like airport , parking, food etc.
Promotion This aspect of marketing plays vast role in gaining attention of large
number of people towards the firm or its operations. Company conduct
various promotional activities such as company provide discount and
exotic offers for online booking, apply social media tools in respect to
providing relevant information to the public, Effective techniques and
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tools such as newspaper, radio poster etc.
By this organisation can expand their business operations and promote travel and tourism
sector which create value in developing the economic wealth of country. Through the
appropriate assistance of Premiere Inn and Costa Coffee organisation can effectively able to
meet the desires of buyers(Donohoe, 2011).
3.3 Justify the strategies which are using in response to modification.
Whitbread.plc is mainly facing conflicts and issues for which companies are developing
the strategies. In the modern market competition is so high at market place and organisations are
widely focused on applying various tools and technologies as to developing their operations at
market place. In respect to promote consumer retention, there are different techniques and tools
that company can optimising for attaining goals and mission. Premiere and Costa Coffee, both
are using effective approaches and techniques in order to proper implementation of their
strategies and deal with the subjective alteration (Ralph, G., 2016).
Premiere Inn: As a famous Hotel and restaurant service provider it is essential for firm
to maintain their services standard in respect to sustaining customers for long run of business
operations. The company is using the strategy of marketing mix as it is the most effective
strategy to develop new products and services within the market place.
Costs Coffee: The company is concern on expanding their business operations at global
market as to fulfilling the needs and wants of people in respect to attaining high profit and
growth. Company needs to evaluate their strength, weaknesses, opportunities and threats in
respect to analysing actual situation of firm (Buhalis, and Foerste, 2015). This method can help
in better understanding of the effective part and the development requirements through which
organisation can attain their business goals and objectives. Hence, it can help in meeting their
business objectives.
TASK 4
4.1 Impact of issues and trends on driven business context.
Issues and conflicts are unwanted in nature and these has direct influence on the
operations and activities of the firm. The industry of travel and tourism has impacted through the
industry issues in direct or indirect manner. Trailfinder Limited is a privately owned company
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conduct its business operations within 32 travel centres which are located through out the UK
and Ireland. The employees strength of firm is around 1000. the company is mainly focused on
maintaining its quality standard in respect to sustaining their good image within the market. The
major concerned area of firm is to expand its business operations at large level through
considering the dynamic nature of market. It essential for Trailfinder Limited to evaluate various
changes as to enhancing the operations of firm. Some appropriate changes are described as
below:
Employment level: Employees are considered as the key aspect of firm and it is essential
for firm to make appropriate changes in their structure as to providing an effective working
environment to their employees( Blackman, and Benson, 2010).
Technology: Trailfinder can be determined as the tour operator company which is
concern on providing effective clients services by opting modified technologies and tools, this is
effective in enhancing the customers base and profitability.
Service and Products Impact: Products and services are consist to be the representative
of firm and this create value in gaining the attention of customers towards the firm. As a private
it is essential for Trailfinder Limited to offer variety of products and services to their significant
customers. This create value in expansion of business operations at large area.
Here are mentioned the options through which Trailfinder can expand their business operations
at large scale: Merger: The firm merge their business operations with other enterprise as to reaching at
higher profitability situations. Acquisition: The company is planning for acquiring other companies, which are posing
tough competition for the Trailfinder Limited within the market place( Benson, and
Wearing, 2011). Liquidation: When a company's obligation or debt is higher than its income and assets,
the company is said to be insolvent and can go in liquidation.
 Consortia Forming: This describes to the unions of company that is designed to support
each other by implementing effective strategies and plans.
4.2 The likely consequences of businesses failing to respond to market changes.
Travel and Tourism is consist to be the most developing sector that generate more profit
and revenue through rendering quality products and services to their customers. This can assist in
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margin and firm dealing activities and operations along with decreasing the management of
services related with costing. Furthermore organisation might be facing the issue of downfall and
for this it is required for firm to creating effective decision as to maintaining the operations of
firm. There are various consequences that can be lead to failure of firm are associated as under: Decreased services: Trail finder render appropriate services to their customers. It is
essential for organisation to provide potential services to their customers as to satisfying
their needs and wants(Becker, 2016). If buyers are not satisfied than this may lead the
firm towards creating a bad impression of firm on buyers. Destructive Brand Image: This is the major part of Trailfinder as it can be impacted the
demand of customers in negative manner.
 Lack of consumer satisfaction: Customers are considered as the major source of firm as
the growth and development of an organisation is based on the satisfaction of consumers.
If customers are not feeling satisfied with the services of firm than company may leads
towards downfall.
CONCLUSION
From the above given report it has been concluded that travel and tourism sector is
consist to be the most developing industry which has a direct influence on the economic
condition of a country. The organisations are widely concern on using various strategies as to
developing new products at market place. This procedure help in attracting huge number of
customers toward the firm or its offered products and services. The major purpose of each
business is to expand their operations at large scale through attaining high growth and success at
market place.
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