Analyzing Contemporary Issues in Travel and Tourism for U&Me Agency

This report examines contemporary issues within the travel and tourism industry, specifically focusing on the U&Me travel agency. It begins with an introduction and then uses PESTLE and SWOT analyses to assess the impact of political, economic, social, technological, legal, and environmental factors on the agency's operations. The report identifies the agency's strengths, weaknesses, opportunities, and threats. It proposes strategies for U&Me to adapt to these challenges, including adjusting pricing structures and fostering a respectful work environment. The report justifies these strategies and outlines potential consequences if recommendations are not followed. It concludes by emphasizing the significance of adapting to the changing environment, and provides an evaluation of the research process.

Contemporary Issues in
Travel and Tourism

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
Covered in PPT............................................................................................................................3
INTRODUCTION...........................................................................................................................4
TASK 2............................................................................................................................................4
PESTLE and SWOT analysis......................................................................................................4
Strategies that U&Me travel agency............................................................................................6
Justification of proposed strategies..............................................................................................7
Development of strategies to implement recommendations........................................................7
Issues if recommendations are not followed by travel agency....................................................7
CONCLUSION................................................................................................................................8
EVALUATION...............................................................................................................................8
REFERENCES................................................................................................................................9
BIBLIOGRAPHY..........................................................................................................................10

TASK 1
Covered in PPT

INTRODUCTION
Contemporary issues occur within real world of travel and tourism, changes in economic
situation, policy changes are the factors that create issues which impact on travel agency. The
present report is based on U&ME travel agency, they help UK residents to book holiday
packages and provide accommodation facilities. It explains potential impacts of issues and trends
on travel agency using SWOT and PESTLE analyses (Lundberg, Fredman and Wall-Reinius,
2014). This study justifies range of strategies that company progress to response to fluctuations it
is opposite. Moreover, it explains two of the plans that travel agency corporate would accept and
also define growth of plans to tool the two references. Furthermore, this study justifies that if
there are no improvements what need to happen in travel agency. It explains evaluations of
learning and bibliography of all sources used for whole report.
TASK 2
PESTLE and SWOT analysis
PESTLE analysis- PESTLE is considered as strategic tool that helps to identify impacts
of trends on U&Me travel agency.
Political factor: Political factor such as laws, regulations, political stability and
instability, government policy, foreign trade policy are political elements that play significant
role in determining factors that impact U&Me long term productivity and profitability. Change in
travelling regulations and rules defined by region government advisories make impact on
company growth in which they are enabled to switch their activities according to it.
Economic factor: certain economies' performance has determinants monetary factors,
economic development, interest rates, unemployment rates, inflation rates are the factors include
in economic stage. Inflation rates is one of the issue that impact on U&Me travel agency the
most, in economy high inflation rates is contemporary problems that affect business growth
(Yuan, Gretzel and Tseng, 2015). It put pressure on firm to make some changes in their
businesses structure.

Social factor: There are many factors which will be impacting travel agency like cultural
barriers, population growth rate, age distribution, career attitudes, and safety emphasis and health
consciousness. Cultural barriers affect U&Me the most, workers in company are belongs to
different culture which make difficulties to manage the whole management according to them.
Technology factor: Technology factor mentions to technology inducements, equal of
automation, invention, and research and growth activity. Innovation in technology such as
applications for gathering information is one of the element that makes impact on U&Me travel
company.
Legal factor: Employment law is one of the legal factor that impact U&Me travel
company, changes in this law bring many challenges for firm, if they do not satisfy workers
according to law employee turnover begins and place it higher.
Environmental factor: Marketplaces have various ecological values and standards
which impact profitability of firm in those market (Phillips and Moutinho, 2014). Even within
nation often states have different liability laws and environmental laws. Texas liability clauses
Illustration 1: PESTLE Analysis
(Source: PESTEL Analysis, 2017)

in case of environmental disaster or mishaps make impact on U&Me business. If company want
to expand their business in new market this trend make difficulties for them.
SWOT analysis-
Strengths-
 Travel agency provide many benefits to residents in UK, they offer additional services to
its customers.
 Company give respect to its customers that helps to gain their loyalty.
Weaknesses-
 U&Me travel agency Scrap to unceasingly give exciting and new trips while balancing
level of quality.
 Company face challenges while having changes in external and internal environment of
business because of lack of skilled people.
Opportunities-
 Growing number of travellers help to increase profit margin of Travel agency and give
the best opportunity.
 On the increase number of offer trip there will be fixed management overhead cost which
is regarded to as opportunity for U&Me
Threat-
 Entrance of other travel agency into UK' niche.
 Terrorism might be impact on company services.
Strategies that U&Me travel agency
Travel agency have to develop new strategies or plan to respond to above changes which
they are facing since for so long.
Follow travelling rules and regulations- U&Me travel agency should implement new
regulations and rules in their structure which helps to make their business successful.
Understand liability and environmental norms- company should understand and
identify environmental standards of nation and new market where they want to enter, they must
work according to these norms and contribute in CSR activities.
Restructure employment law- U&Me travel agency have to give equal opportunities to
worker as career growth. Worker have right to perform in environment free from harassment and

discrimination, organization must create health environment and pay fair wages to all employees
according to their post in workplace.
Respect workers belief and culture- U&Me travel agency has to give respect to its
workers, they try to manage and make them comfortable according to their culture, everyone
should respect each other and different types of culture which helps to make strong team or
group of people.
Reduce costs due to high inflation rates- Inflation rates make negative impact on
company growth, thus to respond to this issue they can reduce costs of each services which helps
to retain potential customers and attract the new ones. This strategy contributes to respond to
change which travel agency are facing.
Justification of proposed strategies
U&Me travel agency should adopt two strategies which has been stated above, first,
company should make some changes in their price structure because high prices never attract
customers. Firm must reduce cost on each services that contribute to gain competitive advantages
and make large customer base.
Second, through understanding employees culture and reduce culture barrier, company
can build good relationship with its staff members that helps to achieve organizational desired
goals and objectives.
Development of strategies to implement recommendations
Development plan 1: U&Me travel agency required to reduce accommodation service
charges to respond to high inflation rates (Roberts and Stone, 2014). They also re-price their
pricing structure as whole and must reduce some extra charges on each facilities and products
offer to customers.
Development strategy 2: Management of company understand individual culture, fulfil
their needs, teach everyone to give respect to each other and also try to understand importance of
another culture which is quite effective way to make environment healthy around workplace.
Issues if recommendations are not followed by travel agency
Thus, if U&Me travel agency cannot follow the recommendations and adopt changes in
their business structure they cannot be unable to sustain for longer. Without changes in ventures
or policies growth and success is difficult to gain. If they do not follow rules adhere by

government, reduce culture barriers, reduce costs of products or services, and firm cannot
succeed in marketplace.
CONCLUSION
It could be concluded from the above report that political, social, technology, economical
and other factors impact U&Me travel agency. In respond to change travel agency make different
strategies which helps to overcome within issues. The current study discussed about company
strength, weaknesses, threats and opportunities. Restructure pricing structure and reduce culture
barriers are two types of strategies that organization should adopt. But if they do not follow
recommendations they cannot be able to get the best results.
EVALUATION
Secondary research methods are very helpful and effective way to gather information, I
have learned a lot during research procedure. I can be able to communicate with people if it
required to gather information, it stated as strength. But finding data through internet is to
difficult due to some privacy errors.

REFERENCES
Book and Journals

BIBLIOGRAPHY
https://www.business-to-you.com/scanning-the-environment-pestel-analysis.
http://sk.sagepub.com/books/travel-and-tourism/n24.xml
https://www.travelresearchonline.com/blog/index.php/2017/12/conducting-a-swot-analysis-for-
your-travel-agency.
https://www.reuters.com/brandfeatures/venture-capital/article?id=11869.
https://www.futuremarketinsights.com/reports/uk-outbound-travel-sector-analysis-and-forecast.
https://www.useoftechnology.com/advantages-disadvantages-communication-technology-
organization/.
https://www.tandfonline.com/toc/ftpv20/current.
http://oecdobserver.org/news/fullstory.php/aid/3342/The_growth_of_medical_tourism.html.
https://www.rsmuk.com/ideas-and-insights/issues-for-travel-and-tourism-in-2019.
https://www.rsmuk.com/ideas-and-insights/seven-big-issues-for-travel-and-tourism-in-2017.