Contemporary Issues and Strategies in Travel and Tourism Sector

This report provides a comprehensive analysis of contemporary issues within the travel and tourism sector. It begins by identifying key drivers of change, such as technological advancements, changing traveler preferences, and political instability. The report then delves into specific challenges faced by the industry, including safety and security concerns, and the impact of international and political laws. The study also explores how businesses, particularly tour operators like Thomas Cook and airline groups like International Airlines Group (IAG), can respond to these changes. It examines the strategies these companies can employ to mitigate the negative impacts of market shifts and maintain their competitive edge, including adapting to technological advancements, addressing political and economic factors, and focusing on social factors and customer preferences. The report also discusses the consequences of businesses failing to adapt to the changing market dynamics, emphasizing the importance of proactive strategies for long-term success.

CONTEMPORARY ISSUES
IN TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Issues that are currently driving change in the travel and tourism sector.............................3
1.2 Current issues in travel and tourism......................................................................................4
TASK 2............................................................................................................................................6
Covered in PPT...........................................................................................................................6
TASK 3............................................................................................................................................6
3.1 International Airlines Group businesses could respond to change.......................................6
3.2 Developing strategies for maintaining the impact of respond to change..............................7
3.3 Justification of strategies.......................................................................................................8
TASK 4............................................................................................................................................9
4.1 The impacts of the issues that drive change in the travel and tourism sector.......................9
Impact of the issues on The Travel Network Group........................................................................9
4.2 Consequences of businesses failing to respond to market change......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The sector related with functions and operations of travel and tourism industries are
highly related with the growth and success of the country and other interrelated aspects. The
rising level of tourist destinations are forcing the private and public sector companies to invest
more funds and their resources in the emerging market of travelling (Korstanje and Clayton,
2012). It helps them to attain greater set of results like foreign money, profits from exchanging
values, revenue from the shopping and spending made by the tourists and visitors in the sector. It
is extremely beneficial for the factors who are employed and engaged with the sector and
industries related to the tourism market. It helps the company in addressing high level of sources
of gaining more revenue and profits (Ashworth and Page, 2011). The tourism market like
tourists, travellers, etc. and industries like tour operators, hospitality provisions, restaurants,
airline companies, etc. are highly interrelated.
Similar to this information provided for the travel and tourism market, a tour operator
like Thomas Cook has to analyse the entire factors that are responsible to influence the tourism
market and other related aspects. Thomas cook is one of the most leading tour operator who is
offering a wide range of holiday packages, effective services and attractive facilities to their
clients. Thus, it is important for them to assess the elements related with the travel and tourism
market.
TASK 1
1.1 Issues that are currently driving change in the travel and tourism sector
There are many captivating areas that assist the tourist industries in attracting the
attention of other travellers who are planning to visit or explore a place. However, the business
of tour operators like Thomas Cook are generally affected by the elements that are present in the
tourist market. They need to address the entire kinds of issues that are existing in large extent for
influencing the business and tourism sector (Le Serre and Chevalier, 2012). Paris is ranked
among the most preferred destinations in tourist world, there are various attractive places that
captivate the attention of people and motivate them to visit it. However, the team members of
Thomas Cook generally addresses specific factors and issues that impacts their travelling
business.

These issues are mostly generated and developed on the basis of political, social,
economical, technological, ethical or regional aspects which are to be monitored and controlled
by the empowered government bodies and the related local communities for holding up the
attraction level of that particular destination (Chen, 2009). In that context, Thomas Cook needs
to consider the following issues that are implementing changes in the travel and tourism sector: Adaptation to advance technologies – In current era of globalisation, the rising awareness
for the new and innovative techniques and approaches of travelling are highly impacting
the business of industries related and employed in the travel and tourism sector. The
adaptability of advance technologies of travelling a destination involves proper
transportation to the place, time to time bookings as per the itinerary, effective set of
health and safety measures, etc. By this, the operational cost and investment criteria of
the tourism industries increases which reduces their profitability and forces them to take
actions for overcome such condition (Khosrowpour, 2002). Changing preference of travelling – It is examined that the selection process of choosing
the destination to be visited is directly linked with the nature, attributes and behaviour of
the travelling parties. These factors generally decides the entire set of places to be
explored. For instance, a honeymoon couple generally prefers Paris as their destination of
visiting which is highly famous for its natural beauty, steady weather, numerous tourist
points, etc. However, the preference of destination is also based on the comments and
reviews of tourist who have visited the place.
 Political instability – A tourist destination is able to gain high number of tourists from
their neighbouring and rest of the countries, only when there is a stable political and
governmental relation with each other. The tourist is concerned on choosing the
destination or the country which has a firm and friendly relations with the hosting country
(Spenceley, 2012).
1.2 Current issues in travel and tourism
It is ascertained that the tourism business of every tourist destination specifically based
on the number of travellers visited the place and their overall spending power. Thus, the tour
operators and other related aspects of the destination are highly liable to place better and
effective set of practices, services and facilities . These factors are extremely helpful for them in
attaining greater forms of satisfaction and responses from the customer's side. Along with this,

this, it has been ascertained that the issues related with the country and their aspects are highly
responsible to affect the business of the tourist industries and tour operators (Fyall and Morgan,
2009). Thus, it is necessary for the destination's representatives to implement specific measures
and implication for reducing the impact of the specified forms of issues. For this, they need to
assess the current issues faced by the tourists in order to select the place for visiting.
In context to the information provided for tourist destination, the following are the
present issues faced by the travellers and visitors which generally impacts the functioning of
tourism sector: Maintaining safety and security – The increasing preference of maintaining a high level
of security and safety of each aspect travelling the destination is impacting the business
of Thomas Cook. This issue is indirectly generated and developed due to the activities
and practices like theft, terrorists attacks, wars, political imbalances, etc. For instance, the
recent terrorists attacks in Paris has reduced the level of tourist visited in 2015 as
compared to 2014 (Hughes, 2015). As per the study, it reports that tourist visiting rate
was reduced by 13% when compare to the travellers attended by the city in last year. The
main reason behind this decrease was the terrorist attacks in Brussels has extremely
impacted the tourist willingness to visit the place. Thus, this incidence has forced the tour
operators like Thomas Cook to maintain a high quality and level of safety and overall
security. It is the duty of every member of tourist industry to implement a perfect strategy
of safer travelling experience.
 International and political laws – It is determined that tourist market is highly impacted
by the governmental and legal regulatory framework. A continuous variation in the
structuring of international and political law can affect the business of tourist originated
industries and the travellers who are likely to visit the company (George and Henthorne,
2007). Like in Paris, the process of giving Visa to a tourist consumes more time and
money than any other operation.

TASK 2
Covered in PPT
TASK 3
3.1 International Airlines Group businesses could respond to change
Airline sector works as a medium that helps in connecting the tourist to their desired and
planned destination. The major participant of tourism market is the entire number of airline
companies which creates a link for the tourist to travel their resident country to the desirable
locations. It is evaluated that airline industries has high level of mutuality with the tourism and
corporate sector. Both of them are interdependent with each other, as airlines gives them a way
to move from a place to another and on the other side, corporate helps them to gain revenue and
perform business operations (Conrady and Buck, 2011). The airline industries are highly
accountable for maintaining their performance and giving high quality services to each and every
travellers. It gives a way of transporting or moving the person and their belonging from their
resident country to another so in an effective manner by making a visitor's travelling easy, steady
and faster.
Furthermore, there are different factors that are directly or indirectly influencing the
market of British Airways which is a member of International Airline Group. British Airways are
highly known and popular among the travellers and corporates that are moving from a place to
another either for spending leisure time, attending some meetings, taking paramedical treatments,
etc. In order to make better dealings with the tourists, it is necessary for them to overcome such
issues and challenges (Evans, Stonehouse and Campbell, 2012). In that context, an airline
company needs to concentrate their efforts and attention on developing and implementing
appropriate strategies which are assisting in achieving its greater level of achievements and
success. Moreover, following are the major components that causes great form of changes in the
business and structure of cited organisation:
 Political factors – It is termed that the business of British Airways (BA) is highly
affected by the political framework and overall framework of regulations. Thus, it is
necessary for their team to consider the entire set of political implication and accordingly
plan the approaches of attracting the clients (Swarbrooke and Horner, 2012). Along with

this, the political relation of the hosting country with the country in which BA has their
business operations should be stable so that they can function in most effective manner.
 Economic Factors – The rising in price, fluctuation in interest rate, variation in exchange
rate, inflation in economic conditions, etc. are determined as the main factors that
influence the market position of the firm. However, the airline industries like British
Airways are able to handle such variations by maintaining their fare rates and facilities
provided in the packages by reducing excess investment funds, selling extra property,
terminating staff, etc.
 Social Factors – The rising adaptability of exploring new destinations and places affects
the company, as the airline companies are unable to generate routes to every particular
place so that each and every tourist can travel to the place. Moreover, British Airways'
the team has determined a captivating and attractive range of holiday packages
(Janoschka and Haas, 2013).
 Technological factors – It is examined that the increasing awareness for adopting new,
innovative and advance technologies has impacted the airline industries in greater sense.
This has forced the cited firm to maintain the level of advance technologies which rises
the level of investments.
3.2 Developing strategies for maintaining the impact of respond to change
The necessity of developing an effective strategy can be examined by the results gained
by the company after implementing the strategical and tactical actions. The structuring of the
strategy should be based on specific approaches and theories that are to be evaluated and
accordingly, considered by the team for creating the perfect form of strategy. In that context, the
airline company could easily respond to the entire set of changes caused by the external factors
(Winiarski, 2005). The management team of British Airways and Vuiling should consider the
stated factors for influencing the business and generating the adaptability of change.
Strategy of British Airways
British Airways is one of the starring company in airline sector that is highly preferred by
the many tourists for travelling to their planned destinations. The cited company is extremely
famous for giving immense services, benefits and facilities to their passengers who are
determined as their clients. In that context, the team should develop a prefect strategy for
reducing the impacts of changes so that the company can maintain their market position and

attain greater market share. For implementing a strong market strategy, the company should
focus setting up the prices of the flight ticket by attaining the market information and analysing
the appropriate factors for determining or structuring the strategic implications (Sharpley and
Stone, 2010).
Strategy for Vueling
Concerning the strategy implemented in the context of Vueling which is based on taking
actions for initiating of cost and leading the market in a systematic manner. It is determined that
the cost leadership strategy is the most appropriate and advantageous for the cited organisation in
a significant way. As it assist the company in maintaining their brand image, company's loyalty,
corporate image and commitment over the business. This facilitates the managerial aspects in
attracting a wide extent of consumers and finally supports them by performing the business unit
for acquiring a monopolistic market and its share. Furthermore, it will fascinate the company in
maintaining their attracting level of directing the attention of all the potential clients. The cost
leadership strategy will assist the company in attaining a competitive image and attract a greater
form of market share.
3.3 Justification of strategies
The process of developing a strategy is quite easy as compare to justifying the strategy
and address the possible set of results after implementing the strategy. It has been determined
that an organisation and their related aspects are highly focused on identifying and creating an
effective strategy which has higher level of achievements and overall success. Thus, it is
necessary for them to evaluate and examine the possibilities of attaining the results and outcomes
from structuring the strategy in the organisation. Moreover, the process of justification is highly
beneficial to the company's management and their aspects to determine the potentiality and
positivity of the strategy. In that context, both the cited organisation which are British Airways
and Vueling has developed their strategy as per their business and structuring (Dickinson,
Lumsdon and Robbins, 2011). The strategies of both the companies are aimed with setting up
effective range of prices for their ticket fare, carriages, transportation fees, etc. This would help
the cited companies in building up better and effective image in the market and attain better
position.
It is examined that a company has to hold up their price level by adopting the best pricing
strategies in order to create a strong impact on the customer's mind and maintain their relation

with their aimed and existing clients. In that respect, both the cited company has to take several
strategical steps and actions which are to be determined and evaluated by the management in
order to maintain a grip on the entire factors that influences the operational and marketing cost of
the company. In addition to this, they should encourage the factors which are able to direct a
control on the pricing (Cooper and Hall, 2012). The company should choose measures for
prevent the condition of generating variation in pricing and fix the rate of travelling packages
and flight tickets.
TASK 4
4.1 The impacts of the issues that drive change in the travel and tourism sector
In context of Myla Travel, Thomas Cook and The Travel Network Group, the report
focuses on effectively analysing and examining the impact of major issues and travelling trends
that drive changes in the travel and tourism sector. Over different parameters of travel and
tourism industries, these issues create a significant level of negative as well as positive impact
(Some of the Major Current Issues Confronting Tourism, 2016). Apart from that, it may result in
merging, acquiring, reconstructing or liquidating of business entity or may also result in the
overall downscaling in the business activities. The information related to the crucial impact
caused by different tourism issues in three cited tour operators is ascertained as:
Impact of the issues on Myla Travel
If Myla seeks to integrate its business activities, functions and operation with the leading
company (The travel Network group) and driving its efforts on undertaking the merging strategy,
then this result in company is going to acquire immense market and gain a greater share
effectively. Apart from that, Myla Travel will be able to increase its probability thereby
enhancing its performance in the new international economies. Furthermore, by gaining an exotic
global exposure, the concerned organisation will be impressively able to offer luxurious and
premium services to its core customers (Korstanje and Clayton, 2012).
Impact of the issues on The Travel Network Group
If The Travel Network Group lays its attention over adopting the strategy of merging
with the Myla Travels, then the concerned entity will attain significant and impressive benefits
that will allow it to gain the leading heights of corporate success within the standard time frame.
The reason behind such success will be that the merging of business activities with Myla Travel

will provide The Travel Network Group to render standard and quality services to its core
customers and gain maximum level of customer satisfaction in an impressive and effective way.
Myla Travel is the leading travel and tour agency in UK and deals in providing fascinating
customer care services (Hudson, 2008). As a result, such merging activity will provide the
company to gain strong brand identity across the globe.
Impact of the issues on Thomas Cook
If Myla Travel focuses to merge its business activities with Thomas Cook, then it would
bring tremendous profits and benefits to Thomas Cook and the said company will be then
effectively able to overcome its business challenges and will gain confidence in opening its
stores across the globe (Knollenberg and et. al., 2014). However, such an acquisition for Myla
Travel will bring no benefits, indeed the said company would have to borne the liabilities of
Thomas Cook in a highly significant way.
4.2 Consequences of businesses failing to respond to market change
In context of Myla Travel
In case when Myla Travel fails to respond the entire specified changes and alternations
that results from the internal and external global environment of the cited company. The result
could be in form of disappointment in projecting the merger strategy by connecting it with the
activities of The Travel Network Group, it could finally lead to the possibilities of addressing
major losses for the company and their management (Gordon, 2014).
In context of Thomas Cook
In situation of getting failure while adopting the implications for reducing the striking of
changes that are taking place in the business environment, the cited company could be forced to
clear and dissolve its membership from the market which would result the company in reducing
its overall market position and the entire share from the concerned sector. Along with this, the
company is deficient to managing their internal control management system which in return
would result the organisation to impact and decrease its brand image in the international market
(Kennell and Chaperon, 2013).
In context of The Travel Network Group
It is manifested that the cited company attains a good opportunity to merge their business
with Myla Travel as it will help the company in increasing their overall capabilities for gaining

immense market share, establishing strong position and building effective brand recognition.
However, failure in responding to such changes would negatively impact the cited organisation.
CONCLUSION
From the report it has been articulated that the travelling industries should identify the
effective mediums of analysing the issues which are affecting the business and market of tourist
sector. It is evaluated from the report that implementing strategies and developing action plans
that are able to attract high level of travellers and tourists. The stated strategy for the cited
organisations is fundamentally focusing on innovating, developing and adopting new ways of
attracting numerous number of tourist and their attention for exploring and visiting the places of
particular destinations. In addition to this, the report is providing immense about the issues and
consequences that are broadly faced by the businesses engaged with travel and tourism sector.

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