Analysis of Contemporary Issues in Travel and Tourism (India)

This report provides a comprehensive analysis of the contemporary issues and trends impacting the travel and tourism sector in India. It begins by identifying key challenges such as safety and security, technological advancements, cultural and political issues, environmental concerns, and economic changes. The report then explores emerging trends like wildlife, adventure, medical, pilgrimage, and cultural tourism, along with accommodation improvements, changing tourist demands, and new destination development. The report also examines how tour operators, specifically Thompsons, respond to these trends through technological integration, environmental safety measures, globalization strategies, and customer-centric approaches. Furthermore, it highlights the use of PESTLE analysis to understand external forces. The report concludes by discussing the impact of these issues on the travel and tourism sector, offering valuable insights into the industry's dynamics and future.

Contemporary issues

Table of Contents
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Measuring issues currently driving change in the travel and tourism sector for India ....1
..........................................................................................................................................................3
Task 2...............................................................................................................................................3
2.1 Emerging current trends influencing change in the travel and tourism sector ................3
Task 3...............................................................................................................................................5
3.1 Thompsons tour operator has responded to the emerging trends in travel and tourism
sector ......................................................................................................................................5
Task 4...............................................................................................................................................7
Impact of issues which drive change in travel and tourism sector ........................................7
Conclusion.......................................................................................................................................9
References .....................................................................................................................................10

Introduction
Travelling and tourism is an activity in which people travel from one place to another,
visit their to experience the culture, customs and life of other places. In present time, travel and
tourism industry is facing few issues and challenges which affects their structure and operation
in the economy. To understand the concept of contemporary issues in travel and tourism sector,
India is considered as a destination place. India is a famous tourist destination and its popularity
is also increasing day by day. In India, there are various places which are important destinations
from the tourism point of view, many customers attract towards them. The present report will
help to understand the current issues and trends in the travel and tourism sector. Further, this
report will include to how the travel and tourism sector respond to the changes. Further in the
current report to understand the concept that how organization responds to changes, Thompsons
company is considered which is a tour operator organization. It also helps in understanding the
impacts of changes on the travel and tourism sector.
Task 1
1.1 Measuring issues currently driving change in the travel and tourism sector for India
In India, there are few issues which are currently driving the changes in travel and
tourism sector, these issues are described below:
Safety and security
The safety and security is a major challenge in travel and tourism sector. The purpose is
to focus on security and to reduce the chances of terrorism etc. In this industry many tourist
bureaus and offices have no contact with the local police departments. Due to low level or lack
of security that affects the operation of cited industry. In recent, sexual harassment and rape case
etc. are continuously increasing which gives negative impact and many tourists are not moving
to India. The safety and security agencies are adopting huge security measures to stop the
terrorist attacks (Blanke and Chiesa, 2013).
Technological issues
Due to the advancement of technology, many people like hackers tries to hack the
national travel and tourism website of country. It affects the tourists frequency in the country and
they interest lowers to visit the India (Spenceley, 2012).
Cultural and Political issues
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India is a multi-religious country in which cultural clashes creates violence in the
country. Due to this reason, many tourist do not prefer to visit India. The changes in political
conditions has also become a challenge for this industry. For example, government setting the
visa conditions more difficult then tourist will be less interested to go (Scott, Hall and Gössling,
2012).
Environmental issue
The environmental issues such as changes in climate or weather conditions also create
problems in this industry. The natural disaster like floods, tsunamis and earthquakes creates a
huge challenge in front of tourism industry. The health issues like swine influenza and other
diseases also creates a negative impact on the tourists mind. The environmental issues have
change the perception of tourist to visit India (Some of the Major Current Issues Confronting
Tourism, 2006).
Economic changes
The travel and tourism is highly taxed industry. Tourists have to pay few percentage of
tax on air line tickets, rent charges for transport facility and hotel rooms. The changes in inflation
rate and the bank rates such as rise and fall also gives impact on the travel and tourism sector.
This industry is highly based on the cost of fuels, the changes in fuel prices also gives huge
impact on the industry. At present time in Indian, rises in the prices of fuel is also a big challenge
for this country (Cazcarro, Hoekstra and Chóliz, 2014).
All these issues affects and drives the changes in the travel and tourism of India.
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Illustration 1: India Tourism Statistics
Source: (http://www.travelbizmonitor.com/Data-Analysis/india-tourism-
statistics-21531)
With the help of this image, it is clear that Andhra Pradesh, Tamil Nadu and Uttar
Pradesh are the favourite destination places of tourists. The top ten states of India are listed
above which attracts more tourists with their natural place, resources and religious places.
Task 2
2.1 Emerging current trends influencing change in the travel and tourism sector
Development of various types of travel and tourism activities are the major trend of this
industry. The various travelling activities are categorized on the basis of types, purpose and
territories. The different types of tourism are described below:
Wildlife tourism
In India there are rich forest with exotic and beautiful species of wildlife. There are some
species still present which are very rare in the world. All these reasons have boosted the growth
of wildlife tourism in India. For this purpose, tourists prefer places like Sariska wildlife
sanctuary, Corbett national park and Keoladeo Ghana national park (Anheiser, 2011).
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Adventures tourism
This type of tourism is recently growing in India. It includes exotic locales and remote
areas which involves various activities. In India, for this type of tourism the tourists prefer to
visit places like Himalayas, Sikkim and Ladakh are for trekking purpose. For the skiing facilities,
places such as Himachal Pradesh and Jammu & Kashmir are very famous among tourists (Acton,
2012).
Medical tourism
From all over the world, many tourists are preferring India to gain the high quality of
health care in relation to general medical attention and surgical procedures. In this country there
are various types of medical institutes present which caters foreign patients and health care
facilities are very cost effective as compare to UK and USA (Zhengliang, 2014).
Pilgrimage tourism
This type of tourism is increasing rapidly because India is also famous for its temples, so,
many tourist visit famous temple like Golden temple and Char Dham etc. (Dickinson and Mika
2013)
Cultural tourism
India is a religious country and also rich in cultural heritage. Due to this reason, many
tourist visit India to experience this for themselves. The different types of festival and fairs of
different religions also attract many tourists (Types of Tourism in India, 2010).
Other trends in travel and tourism of India are as follows: Accommodation facility- Improvement and establishment of new accommodation
facilities also attracts many tourists towards India. According to culture accommodation
many other facilities are also offered to tourists like tents or camp. They can also visit in
forts which are now converted in hotel business. The royal havelis and palaces are also
converted in hotel which attracts many tourists towards the ancient culture of India. For
the accommodation facility other options are also present like villas, hotels and luxury
resorts etc. In present time, hostels are also becoming a part of Tourism story of India.
For the convenience of lowest budget travellers, hostel option is best for them and mostly
it is noticeable in Agra and Rajasthan (Evans, Stonehouse and Campbell, 2012). Tourists demand- The tourist preference and interests are continuously changing.
According to the current demand of the tourists the preference of destination places are
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also changes like they want to see rural culture of India. This means country has to work
hard to meet the demands of the tourists. New destinations- In current trend, tourists wants to explore new regions in India. For
example, In Rajasthan, the rural villages and lesser known places like Pali district is also
gaining popularity among tourists. Due to the boutiques set ups, the new places such
Deogarh and Chandelao Garh which is a village hotel in Rajasthan. Infrastructure- In the present time, government of India is spending more time and
money in this area to improve its appearance and quality. The improved infrastructure in
India are new highways, Delhi metro and new airports in Mumbai. Tourists who want to
enjoy the experience near the beach, generally visits destination like this. The south India
also attracts many customers towards its beauty (Swain and Mishra, 2012). Education- In India many medical institutes are large in numbers which attracts foreign
students to come in India. The other reason is education is very cost effective in India as
compare to other countries (The Latest Trends In Indian Tourism, 2016).
 Yoga and meditation- In present time human is more concern about their health. For this
purpose many foreigners came to India to learn proper meditation and yoga process. To
improve the health and peace of the mind they visit Kerala palace in India because there
are various spa therapies are available which are very beneficial (Pirnar and Eris, 2012).
In India, ministry of tourism has started a campaign named “Incredible India”. This campaign
plays an important role in increasing the number of tourists visitation in India.
Task 3
3.1 Thompsons tour operator has responded to the emerging trends in travel and tourism sector
The travel and tourism is the leading and growing industry in in the world which also
helps to develop economy of country. This industry also faces few issues and challenges which
affects the operations of this industry. The changes are highly changeable in this industry and the
the tour operator Thompsons is also facing this challengers which gives impact on his business
practices. These changes gives both positive and negative impact on the operations. To attract
more tourists towards the organization, cited firm respond towards the emerging trends in travel
and tourism sector. The responses are described as follows:
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 Technology- By adopting the new changes in technology, Thompsons is managing its
operations and practices more effectively with the help of big data analytics in cloud
technology. With the new trend of internet usage, cited firm develops own website. With
the help of internet, tourists can book their tickets online and they can also select their
holiday destination tour through the firm's website. The advancement in technology gives
the positive impact on the business of Thompsons. By using the technology, cited firm
also creates own official mobile app to provide quality services to customers. This mobile
app makes the booking process more handy and fast which attracts more customers.
Tourists can book their places and tour options in more easy way (Becken, 201). Environment safety- The increment in fuel prices and scarcity in engine also affects the
business practices of Thompsons. For saving the environment, firm focus on the safety of
environment and provide opportunities to add places which have natural beauty and
natural resources. Company also usage environment friendly products and also influence
customers to save the environment (Sharpley and Telfer, 2014). Globalization- The tourists needs and demands are also increasing with the increment in
the globalization. Thompsons tour operator adopts these changes and responds towards
this by providing booking process in more easy and convenient way. According the
preference and demand, firm also add new destination places in their tours with best
accommodations facility. The involvement of new destination places, increased the
customer size and productivity of cited firm (Ten Trends Influencing Hospitality in India:
How the Game is Changing, 2010). Future capabilities- Thompsons is also focusing on the innovations, customization and
creativity in their products to meet the future expectations. For this purpose, cited firm
use the provides the digital technology facility to its customers which will help to enjoy
their tour in more effective way (Albaladejo-Pina and Díaz-Delfa, 2009). External forces- By using the PESTLE analysis strategic tool, Thompsons identifies the
changes in external environment of organization because changes in external
environment also affects the business practices of Thompsons. The external environment
includes political, economic, social, technological, legal and environmental forces. The
changes in visa policy affects the business this includes in political factor (Petroman,
2013).
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 Customers demand- According to the demand and requirement of tourists, Thompsons
creates their tour plans. In the tour plans they add accommodation facility, food facility
and transport facility according to their demand. For the better convenience all these
facilities are provided in better quality which helps to develop customers trust towards
the organization. To identify the current trends and demands, Thompsons have to conduct
the research in more efficient way (Hall, Williams and Lew, 2014.).
 Internal environment- To analyse the internal environment of firm, Thompsons adopts
the SWOT analysis tool. With the help of this tool, cited firm identifies their positive and
negative things. By using the SWOT analysis tool, firm improve their performance and
efficiency and through this tool they also improve their service quality. According to this
tool they identifies threats and opportunities. In this cited firm try hard to face the threats
in both present and future time. They also grab the opportunities which are identified by
this strategic tool because the opportunities are used to create the advantages in business.
To improve the performance and productivity, Thompsons reduces the weaknesses and
increases the strengths (Paraskevas and Cooper, 2013).
Task 4
Impact of issues which drive change in travel and tourism sector
The Thompson operates in a very dynamic business environment. The industry has become
highly competitive and the changes are taking place on continuous basis. It is witnessing
different types of trends and changes (Acton, 2012).
 Technology - Trend of online bookings and reservations is on high these days. It all has
become possible because internet is easily accessible for the users. The customers can
make arrangements for their tours and design packages at any time and from any part of
the world. Thompson has also developed mobile apps for the conveniences of its
customers.
 Compliance with industry rules and regulations – Organization must comply with the
industry rules and regulations. For instance there should not be any misrepresentation of
information in the tour services (Cazcarro, Hoekstra and Chóliz, 2014). Any kind of fraud
or cheating must be avoided.
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 Strategic Alliances – Trends such as strategic alliances, merger, acquisitions, joint
venture etc can be seen in the industry. Organization are adopting these strategic
approaches in order to facilitate strength for the business. Thompson group has also done
the acquisition of four tour operators like Riviera, Luxitours, Britannia Airways and
Gaytours.
 Visibility – It is another issue faced by the organization. As a tour operator, Thompson is
required to establish its presence on online platforms as well as in form of physical stores.
The visibility could be in any form but it should be reflected in effectual manner. It helps
in creating awareness about the services among the customers (Gretzel, Wang and
Fesenmaier, 2012).
Consequences of business failing to respond
Different types of consequences may arise if the Thompsons fails to respond towards the market
changes. These are as follows:
 Low profits – The market failures can have an impact on profits. For instance, 2008
financial crisis created a huge impact on the tour operating industry as well as on
Thompson (Cazcarro, Hoekstra and Chóliz, 2014). Organization had faced the problems
related to reinvested profits for the business. Hence this has created restrictions on the
development and expansion.
 Low quality of services – decreasing quality of services could also be the result if the
company fails to respond to market changes (Anheiser, 2011). It is important that
services are to be improved at regular intervals in order to attain competitive advantages.
The tours offered from the company for the customers must be of high standard and
quality (Xiang and Fesenmaier,2014).
 Impact on branding – Another consequence can be noticed is impact on branding. Failure
to responding to changes can lead to loss of reputation. It is evident that Thompson is a
subsidiary of TUI group which is a biggest hospitality group in UK (Hall, Timothy and
Duval, 2012). The stakeholders associated with the brand carries many expectation. If the
company does not able to fulfil them, then it could be a serious threat to the company.
 Customer dissatisfaction – Another issue which can arise is the lack of customer
satisfaction (Albaladejo-Pina and Díaz-Delfa, 2009). The people would get dissatisfied
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from the products and services of Thompson. It may lead to loss of sales and profitability
also. Customer loyalty is important for the business.
Conclusion
With the help of this it is analysed that travel and tourism industry is growing and leading
industry in the world and it also helps to develop the economy of country. The main objective of
travel and tourism industry is to satisfy their customers, so, they again and again use their
services. Through the changes in the policies, trends and demands and procedure in this sector
affects the industry in both positive and negative way. The present report includes the current
issues which act as challenges in this industry and also drives the changes in this sector. Further
this report help to understand the current trends which influence the changes in the travel and
tourism sector. In this context to understand the respond of business towards the changes,
Thompson tour operator is considered. It includes the various strategies which are used by
organization to respond the changes which are already identified in this report. The cited firm
provides various services to its customers to attract them more towards the business. It is very
important to for the organisation to adhere with the changes otherwise it may creates or cause the
overall reduce the market position and reputation in the industry. It also affects both sales and
productivity of the company.
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References
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Dickinson, J.E. and Mika, M., 2013. Awareness of Tourism Impacts on Climate Change and the
Implications for Travel Practice A Polish Perspective. Journal of Travel Research. 52(4).
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Paraskevas, A. and Cooper, C., 2013. Crisis knowledge in tourism: Types, flows and
governance. Annals of Tourism Research. 41. pp.130-152.
Petroman, I., 2013. Types of cultural tourism. Scientific Papers Animal Science and
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Pirnar, I., Bulut, C. and Eris, E.D., 2012. Improving the performance and competitiveness of
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Scott, D., Hall, C.M. and Gössling, S., 2012. Tourism and climate change: Impacts, adaptation
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