Contemporary Issues in Travel & Tourism: Impact and Strategies

This report provides a detailed analysis of contemporary issues in the travel and tourism sector, with a specific focus on the UK market. The report examines the impact of technological advancements, rising fuel costs, economic factors such as inflation and recession, and security concerns including terrorism and violence. It further explores other critical issues like safety, health concerns, and political unrest, and their influence on the industry. The report also assesses the impact of these issues on businesses like Thomas Cook and discusses strategies to manage and adapt to these changes. The report highlights the importance of understanding current trends, such as the niche market of sports tourism, and the need for businesses to respond effectively to maintain and enhance their market share. The document also includes an overview of the International Airlines Group businesses and how they could respond to change. The report concludes with an evaluation of the consequences of failing to address these issues and the importance of proactive strategies in the dynamic travel and tourism landscape.

CONTEMPORARY ISSUES IN Travel &
Tourism

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Issues and their impact on tourism industry..........................................................................3
1.2 Different issues in travel and tourism sector..........................................................................5
Task 2...............................................................................................................................................7
Task 3.............................................................................................................................................10
3.1 How International Airlines Group businesses could respond to change.............................10
3.2 Strategies that can manage changes.....................................................................................11
3.3 Justification of strategies......................................................................................................14
Task 4.............................................................................................................................................15
4.1 Impact of issues in travel and tourism sector.......................................................................15
4.2 Consequences of failing to respond to change.....................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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INTRODUCTION
Tourism business has grown since ancient times to now. In the modern era, tourism has
become diverse industry which is generating high employment opportunities and income in the
country (Kasemsap, 2016). Travel sector is changing continuously because the needs of the
traveler changes any time so tour operators design such products which can satisfy them. Present
report will focus on UK inbound and outbound tourism market. Several issues which are driving
changes in travel sector will be analyzed in this study. However, market trends are changing
continuously and organizations have to modify their operations accordingly. Evaluation of
current trends which influence alterations in travel and tourism sector will be illustrated in this
assignment. Strategies of organization will be discussed to give proper respond to the changes.
Main objective of this report is to understand about contemporary issues and their impact on the
tourism business (Coles, Hall and Duval, 2016).
TASK 1
◦ 1.1 Issues and their impact on tourism industry
 Travel sector is one of the lucrative industries which are growing well in UK
market. London is one of the popular tourist destinations of UK. Tour operators design
travel packages for customers and they provide them with accommodation facilities,
services so that people can enjoy their travel. London Eye, Bunchingam place are
interesting places in London. Many foreign customers come in London to visit these
places (Khodadadi, 2016). It gives huge benefit to London as it generates high income
and is earning money from foreign exchange. As per the statistics value, tourism industry is contributing well in the economic
development of UK. In the year 2013, this sector has generated almost seven trillion US
dollars (Kasemsap, 2016). Due to high tourism activities education, entertainment,
transportation all business have grown well and they have generated income approx 2.2
trillion in the year 2013. There are several issues which are driving changes in the
industry and these are as following: Technological advancement: It is the main issue that impacts on demand and supply.
Internet surfing is one of the greatest example of technological advancement. Customers
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get knowledge about prices and quality provided by tour operators (Bondi, 2016).
Therefore, it has become the biggest issue because tour operator has to keep their travel
prices nominal and they have to provide additional services to their visitors. Competition
is very high, TUI group, Thomas cook etc. are many organizations those who are giving
quality services to the customers (Kasemsap, 2016). So to meet with competition and to
attract consumers, it is necessary to set prices accordingly so that people can take interest
in tour packages. Social media marketing is another example of technological
advancement as it helps in attracting more customers and in gaining their attention. By
this way Thomas Cook would be bale to make strong connections with mass audience
and it will attract more users towards the brand. Rising cost of fuel: Travel and tourism industry is highly depended upon the fuel costs. If
prices of fuel are high than traveler will have to spend more amount and they will have to
pay more for transportation (Coles, Hall and Duval, 2016). It creates challenge for
tourism industry as people may change their mind because it would be costly for them.
As Thomas Cook will have to increase its product's prices than can be costly for
consumers and they will not prefer to go on holidays.
 State of Economy: Rise and fall of inflation is the main issue that impacts on tourism
industry to a great extent. If there is high inflation then people do not prefer to spend
much amount in travel which decreases the business of organizations. Recession is
another issue that affects the buying power of consumers (Coles, Hall and Duval, 2016).
It influences their buying capacity so people do not take much interest in traveling to
other locations. In the year 2009, UK was suffering from recession that decreased
business of tourism industry badly. Brexit issue is the great example of this, it has
negatively impact on the economy of UK, unemployment has been increased and people
had to pay more tax. On other hand it has also impacted positively as now British can
travel easily and freely to anywhere without and restrictions (Khodadadi, 2016). Apart
from this European union has made new air service agreements, new routes have been
developed by the government. By this way business of Thomas Cook has been increased
in the UK.
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 Terrorism and violence issues: It is the main issue that impacts the travel and tourism
industry. London is the clam city but due to increasing terrorist attack and violence
activities people get afraid to come here (Higham, Bejder and Williams, 2014).
These all issues highly affect the tourism industry, as technical advancement gives more
information to the customers. They compare prices and quality of tour packages and then they
make their mind for travel (5 key issues facing travel and tourism. 2017). Same as terrorism is
the main issue which affects negatively on business. Inflation or recession is another factor
which influences mind of people. If prices of tour packages of Thomas cook are beyond their
purchasing power then they will not prefer to go anywhere.
1.2 Different issues in travel and tourism sector
Apart from above maintained issues, there are many other problems which are associated
with tourism sector and impact the business to great extent:
Security and safety:
It is secondary main issue that drives changes in travel sector. There are many
destinations where number of tourism offices and visitors bureaus are available (Tan and et.al,
2016). But they do not have much connection with local police and protection services. It is
necessary to focus on security of visitors otherwise people will not make plan to visit such
places where they are not safe. Due to this, many regions are facing economic losses currently.
Population is increasing so government should control over it and has to take necessary steps to
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Illustration 1: Impact of recession on tourism

monitor them (Rogerson and Rogerson, 2014). Thus, it can adversely impact on the business of
Thomas Cook to great extent. People will not prefer to go on risky places so it can reduce
revenues of the company, if there is high tourism activities in UK.
Health issue:
It is another issue that impacts the UK tourism (Tan and et.al, 2016). If there is any
serious disease taking place then this news can be spread through media and televisions. This can
create negative image in mind of customers and they will not prefer to go in such places where
they can suffer from any serious disease (5 key issues facing travel and tourism. 2017). It
becomes the responsibility of government to take proper measures for protecting people and to
keep clean the city. The mortality rate can get reduced which will help in improving travel
business in the country
Legislation and political unrest:
It is another secondary issue which affects the travel and tourism sector (Issues facing the
travel and tourism industry, 2017). If there is very tough policies related to visa then people will
not take interest to come here. This affects the entire business of the tourism which will affect the
economic condition of the country. If there is unrest political background then there are high
chances of insecurity , in such type of places visitors do not prefer to go for holiday (Kasemsap,
2015).
TASK 2
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Notes: Tourism is considered as the worldwide industry which has been fluctuating in respect to
crime, terrorism, natural disaster and economic forces etc. However, all such changes influences
the travel and tourism business. Hence, it is essential for Thomas Cook to assess all such changes
in the current trends and thus avoid in order to plan effective tourism growth. Thus, it helps in
attracting tourists to visit the country and enhance tourism so that satisfaction can be attained.
Terrorism attacks influences travel and tourism sector and thus decreases the number of tourists
within the country. Therefore, such current trends needs to be avoided by country through
increasing safety and security of travellers visiting the country. Thus, with the help of such
planning it helps in gaining satisfaction among tourists and enhance profit ratio. Security is
considered as another major concern and thus influences tourists to not visit the terrorism
affected countries. Hence, it decreases the number of tourists within the country and thus results
into fall in tourists visiting the destination.
Moreover, another current trend that influences change in travel and tourism is that
advancement in technology and thus it is essential for Thomas Cook to provide the latest
information to tourists in order to use body scanners, metal detectors so that individual could be
properly examined before traveling into airline or entering into any other country. Thus, it
increases the chances of terrorism and thus affects the tourists visiting the country. There are
varied number of tourists visiting UK around the year and thus influences travellers to visit the
country and thus enhance their satisfaction. Thus, all such current trends influences the change in
the travel and tourism sector and bring effective results in terms of enhancing country's image in
market.
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Notes: The current niche tourism market is sports tourism in which business aims to expand its
market and influence large number of tourists to visit the country. However, it is significant for
tourists to gain detailed information regarding the particular tourism market and enhance its
popularity so that large number of tourists could be attracted towards the tourist market. UK aims
to develop itself in such market and thus it helps Thomas Cook to expand its business operations
so that large number of sports tourists could be attracted. Such type of tourism is considered as
the most revolutionary and evolving trend which is being seen in today's travel and tourism
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industry. It attracts wide number of travellers who are interested in sports and thus organize and
host several sports events and programs. It also raises the number of travellers visiting the
country for sports activities and attain huge growth and economy. For instance, in the year 2010
London organized Olympic games and thus attracted various tourists from around the globe.
Thomas Cook develops different travel plans in terms of sports events and enhance its booking
so that sales could be improved.
However, there are different types of niche tourism market among which sports tourism
is considered as the most effective and thus increases popularity among travellers to visit the
country due to occurring such specific sports' event. Hence, it raises the market share of Thomas
Cook and influence large number of tourists visiting the country. Therefore, it is significant for
tourists to plan the destination and host several sports events so that it becomes one of the
happening destination for sport lovers. It has been measured that 30 million tourists visit the
England and UK every year. There are various sports events organized such as FIFA, Olympics
that raises UK tourism. Within the year 2011m 1.3 million people visited the country and spend
£1.1 billion for watching live sport event. Hence, carrying out survey helps in identifying the
number of tourists visiting the country and thus raises the brand image of tourist destination in
the country.
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Poster In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to
2.2 Analysing niche tourism market and provide detailed description
The current niche tourism market is sports tourism in which business aims to expand its market and influence large number of
tourists to visit the country.
However, it is significant for tourists to gain detailed information regarding the
particular tourism market and enhance its popularity so that large number of
tourists could be attracted towards the tourist market. UK aims to develop itself in
such market and thus it helps Thomas Cook to expand its business operations so
that large number of sports tourists could be attracted. Such type of tourism is
considered as the most revolutionary and evolving trend which is being seen in
today's travel and tourism industry. It attracts wide number of travellers who are
interested in sports and thus organize and host several sports events and
programs.
It has been measured that 30 million tourists visit the England and UK every
year. There are various sports events organized such as FIFA, Olympics that
raises UK tourism. Within the year 2011m 1.3 million people visited the
country and spend £1.1 billion for watching live sport event. Hence, carrying
out survey helps in identifying the number of tourists visiting the country
and thus raises the brand image of tourist destination in the country.
It also raises the number of travellers visiting the country
for sports activities and attain huge growth and economy.
For instance, in the year 2010 London organized
Olympic games and thus attracted various tourists from
around the globe. Thomas Cook develops different travel
plans in terms of sports events and enhance its booking
so that sales could be improved.
However, there are different types of niche
tourism market among which sports tourism is
considered as the most effective and thus
increases popularity among travellers to visit the
country due to occurring such specific sports'
event. Hence, it raises the market share of
Thomas Cook and influence large number of
tourists visiting the country. Therefore, it is
significant for tourists to plan the destination and
host several sports events so that it becomes one
of the happening destination for sport lovers.

TASK 3
3.1 How International Airlines Group businesses could respond to change
It involves several factors that affects the airline businesses in regard to respond to
change and thus influences the business operations in market. For instance, airline companies are
required to identify the changing environment which aims to influence tourists within the
country and thus assesses external analysis that impacts the travel and tourism sector (Kim and
Ritchie, 2014). It is as follows-
Political factors- UK possess effective political environment which helps in supporting and
developing the travel and tourism business. Hence, International Airline Group influences
through increasing the interference of government within the airline regulations (Spenceley,
2012).
Economical factors- Further, in the constant development in transportation and infrastructure
facilities it helps in increasing tourists and developing economic growth in the country (Sharpley
and Telfer, 2014).
Social factors- It is essential for Airlines Group to assess the taste and preferences of consumers
all around the globe and provide them particular travel services. Thus, it helps in evaluating the
change in demand and supply of tourists which influences the International Airlines Group
(Smith, 2014).
Technological factors- International Airlines Group identifies the innovative technology and
thus introduce new technique in the market that influences tourists within the country. Therefore,
it is essential for business to brig constant improvement and thus focus upon easy booking of
tickets through online system so that best results can be attained (Murphy, 2013).
Environmental factors- Such factor identifies that Airlines group assesses that it is essential for
them to undertake environmental protection regulation so that they should not pollute the
environment (Lew, Hall and Timothy, 2008). It is essential for them to identify the hazardous
toxidant and does not use such in their fuels to protect the environment.
Legal factors- While, it is essential for organizations to undertake effective legal regulations so
that it does not affect Airlines Group operations in market. For instance, it is significant for
business to undertake effective practice and attain desired results.