Analyzing the Contemporary Travel and Tourism Industry - Report

This report provides a comprehensive analysis of the contemporary travel and tourism industry, focusing on the TUI Group as a case study. It explores the evolution of the industry, highlighting key milestones and their impact on the tourist experience. The report delves into various factors influencing tourist behavior, including motivation models and consumer decision-making processes. It also examines recent and emerging trends in international travel and tourism, such as the impact of globalization, technological advancements, and infrastructure development. Furthermore, the report discusses the critical elements shaping the tourist experience, including weather conditions, cultural factors, amenities, and accommodation. The analysis covers the impact of internet and social media, personal budgets, and motivational theories like Herzberg's, on consumer choices. Overall, the report provides a detailed overview of the industry's dynamics, trends, and the factors influencing its evolution, with the goal of informing and educating students about the complexities of the travel and tourism sector.

The Contemporary
Travel and Tourism
Industry

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 ...........................................................................................................................................3
P2 ...........................................................................................................................................4
TASK 2............................................................................................................................................5
P3 ...........................................................................................................................................5
P4 ...........................................................................................................................................5
TASK 3............................................................................................................................................6
P5 ...........................................................................................................................................6
TASK 4............................................................................................................................................8
P6 ...........................................................................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
T&T industry is the larger portion of hospitality industry serves with the main goal is to
provide essential or desired products and services to the travellers. Respective industry
bifurcated into the five leading attributes that are lodging operations, retail stores, activities, food
and beverages, transportation services. Respective report is based on TUI group which is an
Anglo German T&T company and one of sizeable leisure, T&T company in whole globe.
Respective report is based on the central milestones in the evolution of respective industry with
different elements and their relation with tourist experience (Meyer, 2013). Further it elaborates
the various factors which affect action of tourist and models of motivation and their effect on
decision making of consumers . It also includes recent and emerging patterns in international
T&T industry. At last it includes the factors which affect quality of various global designate. All
these component highly influence process of decision making whether to go for the trip or not.
TASK 1
P1
Through out history, citizenry majorly travelled across the Britain to serve purpose of
commerce, teaching and religion and to fight in conflict (Aminudin and A. Jamal, 2019).
Development of T&T industry takes lot of time by creating milestones in order to fulfil the
wants of consumers . In year 1936 Billy Bulletin opens his first holiday camp in Skegness and in
1938 holiday pay act introduced in market place that is the foundation stone of T&T industry. In
that series many airlines take place such as in 1952 first Jet Airline passenger give their services
in order to enhance experiences of consumers. In 1960 the no. of domestic holidays takes
exceeds then 30 million and no. of foreign holidays rises to 3.5 million. In further years in early
1960s first global distribution system originated by American airlines, in 1968 countryside act
passed to make national parks that also the part of development of respective industry in order to
achieve desirable outcomes(Mowforth and Munt, 2015). In that series no. of new service
providers take placed in year 1195 Le shuttle and Eurostar carry their first passenger through the
channel tunnel, in series 2001 EasyJet a no frills airline reports 71.6 million profit carrying 11.4
million passengers. In year 2003 the English tourism council and British Tourist authority merge
to become visit become by increase business possibility in affirmative style. So T&T industry
enlarge their opportunities at a very fast pace to serve attributes of consumers in positive

manner. Respective milestones shape the respective industry to provide services in appropriate
manner such as providing services under one roof to gain potential outcomes. TUI group also the
part of T&T milestones as it originated in year 1923.
Milestones in travel and tourism industry:
There are major changes takes place in the tourism industry that known as milestones that
are as follows:
Globalisation:
The impact of globalisation on tourism can be observed by no. of ways such as global
mobility and ease in travel, population and demographic trends, terrorism, safety and security,
increase in awareness of new destinations and poverty. It records as a milestones in the history of
global tourism as it helps in eliminate poverty as tourism provides employment opportunities to
the people that not only raise the income of consumers but also raise the national income of
country.
Advance in transport technology:
The advances made in transportation which helps to the global mobility that plays very
much significant role in enhancement of tourism. Modern aircraft, cruise ships, trains and other
mode of transport enables people to move very quickly and that is relatively very cheap also.
Fast trains, road systems and even city bike rental programs helps to move, tour and explore the
whole world. Ease of travel also helps to overcome from the barriers of travel such as fear,
frustration and expense.
Infrastructure development:
Augmentation of quality is one of the most important part to improve the quality of
infrastructure through out the country as it is the major area of functioning. With the developing
of roads, trains and development of power, telecommunication, water supply and roads are the
major attributes that helps to tourist to visit the places.
P2
Tourism is one of most dynamic industry which needs capabilities in order to adjust the
consumers dynamic wants (Asongu and et.al ., 2019). In respective industry there are various
components work that shape the consumer experiences in positive manner. Here are the list of
elements of T&T industry that are as follows:

In context of respective industry there are crucial elements that are admirable weather condition,
beautiful repulsion, historical and cultural factors, availability, comforts, betterment, safety and
security, other factors.
Pleasant weather/ climate:
People prefers to travel to their favourite climate as majorly they living in cold places
long for sunny climate. As sometimes experiencing different climate work as an motivational
factor for them. In context of TUI group they best known for travel packages as per the season in
order to give one of best experiences to them. Various countries have some festivals in different
seasons which might to enchant in no. of consumers the country. Along with this, some
companies provide offers and discounts as per the changing climate which helps in attracting
large number of individuals towards them.
Historical and cultural factors:
Respective element of T&T industry exercised a tremendous effect on the travellers as
large no. of travellers are attracted towards historical places as it proved beneficial for their
enhancement of knowledge positively (Brauer, Dymitrow and Tribe, 2019. ). In context of TUI
Group they provide tour packages for the historical destinations as large no. of Americans and
Canadians visit London due to their historical and cultural attractions.
Amenities:
Adeptness are very much necessary for the holidaymaker centre as they are very crucial
for them such as for seaside resort the required facilities such as swim, yachting, yachting surf
riding and many more that re amusements are very crucial for them. For tourism service provider
two types of comforts that are earthy and man-made. In context of TUI Group they provide both
kind of amenities to their consumer so that as per their budget they opt service types (Noti,
2013).
Above mentioned factors are closely related with one another as respective services while
required by consumers simultaneously such as accessibility, accommodation, amenities and
safety and security so respective factors provide great experiences to consumers in positive
manner. All the above mentioned elements need to be considered as most essential factors which
need to be adopted by the management team in order to provide high experience to the
customers.
Accommodation:

Accommodation is one of the most important amenities that are provided by the Hotels in
order to enhance the consumers experiences. Accommodation is a group of rooms, building by
using it someone may live or stay. It is very important for person who want to travel to another
destination.
Transport:
Transport is one of major part of travel industry by using it an individual can visit places
very much easily with the advancement of transportation an individual can save time and
enhance consumer experience. It is very much essential for tour service provider to provide one
of best transportation services to their consumers in order to remain competitive.
Attractions:
attractions are the core component of tourism because it helps to organisation to attract
and enlarge business opportunities in positive manner. Attraction can be the places, people,
events, culture that enhance consumer experience.
Information centres:
Tourist information centre is a physical attraction by using it travellers can go to acquire
the knowledge and information about the destination. By availing respective centres people can
be able to take potential decisions that proved beneficial to gain profitability and sustainability in
marketplace.
TASK 2
P3
To provide one of best experiences to the consumer there are no. of component which
directly impact the tourism activity, so it is very much crucial for Tourism service provider to
study respective factors that are as follows:
Internet and social media:
In today's competitive world consumers wants to reach at information and amenities that
helps to enlarge their experience level at whole globe such as airline business, car rental agencies
in order to choose one of best (Chen and Cohen, 2019..) large no. of , people tends towards to
internet to research potentiality kinds of trips to seek out bargains. So it is very crucial for service
providers to provide information on social media for enlarge no. of consumer base in affirmative

style. In context of TUI Group they operate in both online and offline mode to enlarge business
opportunities.
Personal budgets:
Budget of consumers is very crucial for an service provider as per the budget they
planned to provide services to their ultimate consumers. It rely on the behaviour or nature of an
individual as some people with low economy class still wants to travel places that they admire
(Dogru, Isik and Sirakaya-Turk, 2019.). In context of TUI Group they provide different kinds
of tour packages as per their requirement and budget in order to satisfy them in positive manner.
So for an organisation it is very much crucial to access the various factors
P4
For an organisation motivation needed at all level in order to gain potential outcomes
from them, in context of TUI Group they by using theory of motivation encourage their
employees as well as consumers to gain higher level of profitability from them.
Herzberg's motivation hygiene Theory:
Respective theory of motivation argues that there are majorly two factors that an
organisation can adjust to influence their consumers and employees in positive manner (Page and
Hall, 2014).
The factors are:
Motivator: Respective factors encourage consumers to avail their services that are distinctive in
nature and very much important for them to avail services (.Liu and Schänzel, 2019.).
Hygiene factors: respective factors not work to encourage consumers to avail services but if
some factors not existed brings demotivation and dissatisfaction in them.
In context of TUI Group they are pioneer in their field as they provide both motivator and
hygiene factors to their consumers in order to build loyalty in them. In respective organisation
that they are the leading tourism group with broad product portfolio by providing services under
one roof such as tour operators, 1600 travel bureau and prima online portal and many more. The
key feature of their services that they provide one of best business firm civilisation which is their
worldwide obligation for economical, environmental and social positivity (Standing Tang-Taye
and Boyer, 2014). They are legends by giving excellent services under one roof such as building
and resorts, cruises, destination experiences, various tour operators, airlines and many more
facilities in order to ease consumer decision making to remain competitive in marketplace.

On other hand in hygiene factors if travel operators not able to provide some basic
services properly such as not proper accommodation, sanity, not good room service and kinds of
factors that if presented in proper manner not enhance experience of consumers but on other
hand if not properly presented in front of consumers it provide fierce experience to them which
directly influence the decision making of consumers in adverse manner (Jasrotia, Mishra and
Koul, 2019). So it is very much crucial to enchant one of great experiences to their end user in
order to remain always competitive in marketplace.
TASK 3
P5
There are different trends as well as patterns that exist in international travel & tourism
sector. Every time customers come with new demand and trends that tourism, sector has to
follow for achieving customer satisfaction. The different factors which have caused major
changes within the tourism industry are new destinations, new technologies and means of
transport (Swarbrooke and Horner, 2012). It has been said that by passing time there are various
trends, techniques as well as patterns among the tourism industry which highly influences the
experience & level of satisfaction of travellers.
Techniques for analysing and interpreting tourism patterns (qualitative and quantitative
sources)
Qualitative research is defined as the research for applying a range of qualitative methods
for inductively exploring, interpreting and understanding a given field. Qualitative research in
tourism takes inspiration from the cultural and social science such as sociology and
anthropology. The main objective of the research approach is to explore and search for
developing understanding through empirical studies. On the other hand, quantitative research for
tourism is employed for examining and understanding tourism related phenomenon such as
traveller characteristics, behaviour of tourists, destination image, etc. The quantitative research
includes descriptive and inferential research using various levels of scale. The secondary data
used for collecting tourists destination choices is available through already existing data like
internet, articles, documentaries, etc. The primary research is also conducted for analysing the
new trends of tourism within people.
Current pattern as well as trends within the industry are going to be discussed as follows:

Online booking- It is the method with the help of which customers will be able to book
their packages with the help of online tools. For this, individuals can adopt mobile application,
official websites of the company and many more. This method is currently trending among the
marketplace with the help of which individual can plan their trip in an effective manner and
within limited time frame. Therefore, most of the individuals prefer booking online tickets
(Swarbrooke and Horner, 2012).
Solo Travel – travelling is generally considered as leisure time spend with family or
friends. But it is not true nowadays as the perception of customers has changed a lot. People are
considering solo travels a lot. The tourist trend for solo trip is increasingly at high rate. The
requirements of solo travellers are different and some of them are more into social functionality
and social partners. People are more attracted towards hotel stays and cruise as a luxurious way
to spend good time. Such tourism trends are growing at a faster pace.
Eco travel – The trends of Tourism are highly influenced by mores and concerns of
customer base. For new generation, it is applicable as this has increased in marketplace. The
ideals which are driving purchasing decisions helps in creating trends of tourism (Theobald,
2012). Eco travel is a tourism trend that reflects a developing and growing concern among the
travellers of today for sustainable and ethical options. The eco travel consists of simple changes
like availability of carbon credits while booking flight and renting an electric vehicle. Other
examples for tourism includes volunteer elements.
Emerging pattern as well as trends in industry are going to be discussed as follows:
Robot: In the present modern era, AI is formulating its personal place at the competitive
marketplace in each and every sector. This is one of the advanced methodology adopted by large
number of business entity at the competitive marketplace (Standing Tang-Taye and Boyer,
2014). In the present context of travel & tourism sector, with the help of highly skilled robots,
company will be able to improve their service quality which is being offered by them to their
customers. This as a result helps in hiring less employees as robots can perform their work in an
effective manner and within less duration.
Significance of for development of this industry across globe:
Tourism is a industry that is growing very fast in all countries that is developed an
developing this is growing and helping in overall development of economy. Tourisms sector has

shown a very fast growth in industries across world. All such concepts & practises have
contributed towards innovativeness in many countries. Tourism is no longer a destination that
consist of historical building now it is based on emotions that are earned by all toursit when they
are visiting a particular destination.
Tourism experts say that in developed countries are having a focus on building up of
strong relationships with customers so that their emotional needs can be satisfied to enhance
brand awareness. Tourism has changed because of changing travel culture and touristic habits
across different parts of world.
TASK 4
P6 Investigate the factors affecting the current levels of popularity of different global
destinations
The destination lifecycle (Butler's TALC)
Tourism is known as one of the biggest growing industries of the world. This is a
dynamic industry and changes are required in this that impact business. One professor naming
Richard W. Butler developed a model known as Tourism area life cycle model (TALC) and this
is based upon product life cycle concept. The different stages of this model are mentioned below-
Exploration in Butler's Tourism area life cycle model – This is defined as the first stage
of this model and there are limited number of visitors who visits the area. The visitors are
included in making individual arrangements and pattern of visitation irregular.
Involvement in Butler's Tourism area life cycle model - This is the stage in which
number of people visiting that area are increasing. People are considering various economic
benefits such as accommodation, food, transport, guides, etc.
Development in Butler's Tourism area life cycle model – This is the stage of model in
which area has been recognised as tourist attraction. Investors and tourists are considering
opportunities for gaining financial benefits. In this stage, local residents generally lose control in
development of the area.
Consolidation in Butler's Tourism area life cycle model – According to this stage, the
number of visitors are generally high than the permanent residents. The local economy is

dominated by the tourism at this stage. Sometimes socio cultural environment opposes tourism
activities.
Stagnation in Butler's Tourism area life cycle model – This is defined as the stage in
which there are several aspects of attraction which has reached maximum capacity and cannot
develop further. That is why it is known as stagnation stage.
Decline in Butler's Tourism area life cycle model – This includes facing of various
problems including decline where area is no longer able to compete with new attractions. The
decline stage is categorised on the basis of weekends and day trips as the attraction has lost it's
appeal.
Rejuvenation in Butler's Tourism area life cycle model – Rejuvenation is another
possibility of the area. Attraction needs a complete change and the change is basically in two
different ways. The first change is new man made attraction and second is the local or national
governments.
Factor affecting tourism behaviour:
There are some factors that are affecting behaviour of tourist as discussed below:
 Motive of tourists as people are willing to visit a particular place according to their
respective motive. Motives can be leisure, prefer destination, holiday, official purpose
etc.
 Types of tourist such as lonely travellers who are travelling alone, tourist in small groups
it is initial stage of tourism growth and last is mass tourists that is stagnation stage.
Different typology of tourists and their decision making:
Typology is a very significant tool that in tourism planning for supporting of spatial
effects and demonstrating the way of growth in tourism industry.
There are tow categories of typology of tourists:
1. Feature of tourist demand: It is focussing on overall motive of travel of tourist and consist
of criteria such as economical, social and psychological etc.
2. Destination characteristics: it is based on criteria of destination that is geographic,
demographic or economic.
Such typology are prepared to develop an understanding of destination area in development of
particularities and spatial development.

Leiper's model – This is a system which shows on how a tourism expands within the tourist
original place and the target destination. According to this model, the tourist destination is
differentiated on the basis of destination tourists place. This helps in making the original place
into required tourist destination.
Global destinations refers to a geographical area where high quality services are provided
to the individuals & have very lower chance of mistakes and defaults. It has been analysed that
there are ample number of elements which might affect the whole reputation, profitability as well
as reputation of the company at the marketplace (Page and Hall, 2014). It is very essential for the
management team to view all the elements in an appropriate way as they highly affect the
popularity of services offered by them. In reference to Travel & Tourism sector, it has been said
that company offer services which highly satisfied the needs and wants of customers but there
are some external elements which influences the whole performance as well as profitability of
the company at the competitive market. Some of these factors are going to be discussed as
follows: Offers & Discounts: It has been said that offers and discounts are considered as an
essential element for marketing strategies. With the assistance of these strategies, ample
amount of new individuals will be influenced towards the organisation as well as
potential customers will be retained for a longer period of time. In reference to travel &
tourism sector, management team of the company provide various discounts, packages,
offers, coupons and many more (Noti, 2013). This as a result assist in attracting large
number of customers towards their organisation. For instance, In context of United
Kingdom's festival season, it is identified that this is the industry develop strategies
where there offer attractive packages to influence ample amount of individuals towards of
their company. For this, marketing managers need to formulated effective policies and
strategies so that they will be able to catch attention of large amount of customers
(Munoz-Leiva, Hernández-Méndez and Sánchez-Fernández, 2012). Social factor: It refers to the element which consist of values, attitudes, beliefs, norms,
customs and many more. All these factors highly influences the performance of company
at the competitive marketplace. It has been said that all these factors need to considered
by the management team of the company. Social component which consider all the
factors such as culture, historic, religion places which might impact the overall quality of

the destination places. Each single person have different taste, interest and preferences
which might influences the whole popularity of the place in positive & negative way. For
instance, Egypt is one of the most popular place for its Pyramids which grab attention of
ample of individuals across the whole wide world. It has been identified that all these
social elements might improves the overall popularity of destination due to positive
response from traveller's (Mowforth and Munt, 2015). It is needed by the merchandising
team to identify all the necessitate and consider need and demands before offering
facilities to the individuals. It is necessary for the management team of marketing
department is to examine the needs as well as wants of individuals before giving them
any kind of facilities so they will be able to think of more about the company and large
number of people will be attracted towards them.
 Opinion of friends as well as relatives: Single person extremely trust their family
members & friends. Whenever they want to spend their money in cloths or want to go for
a trip they often take suggestions from their friends before taking any kind of decisions.
They will highly support them in order to chose best and attractive places along with the
packages. Furthermore, they also consider online comments, feedbacks and reviews
before taking any kind of decisions and go for a tip. For instance, If a single person
decides to travel Greece and for this they generally take suggestions from their close one
which includes family members as well as friends so they can take effective decisions
whether to choose the destination for the trip or not. All these things extremely influences
the process of decision making (Meyer, 2013).
 Link between key drivers of tourist & popularity of tourism destination &
experiences:
 Tourism behaviour consist of overall experience of tourist who are part of a tourism
business & local community. There is a link that is present between popularity of a tourist
destination.
 Tourist expectations are related to different types of features such as architecture,
infrastructure, landscape, shopping, culture etc. such features play a very significant role
in influencing success of a particular tourist destination.

 Competitiveness of a destination is related to ability of a brand to occupy a share in
niche market. It may posses a potential for creation of a integrated value chain of
products.
 For building up of brand image it is necessary that a destination must posses a
uniqueness so that it is distinguishable for their tourists.
 Micro environment: These factor consist of various factors such as suppliers, customers,
supporting industries, destination management organisations, marketing intermediaries
etc. all these factors are present in macro environment of a destination and are posing
effect on overall number of tourist visiting a place.
 Micro environment factors: It consist various factors such as economical factors like
GDP growth, political factors such as role of government, social factors such as changing
trends of target segment of customers.
CONCLUSION
With the help of above stated report, it is concluded that travel as well as tourism industry
is an essential factor for the economy as well as individuals as it provides wide growth
opportunities and employment to masses. Therefore, it has been said that one of the most
essential factor is to examine the requirements and needs of customers so that they will be able to
provide services accordingly. It is essential for an organisation to understand the evolution of
T&T industry in order to serve their consumer base in positive way. There are various factors
that contributes towards enhancement of consumer experiences in positive manner so it is very
crucial to understand them and provide consumers properly in order to gain competitive
advantages. It has also been concluded that services which are being offered by them changes on
a regular basis as per the expectation of customers. Furthermore, trends and demands within
travel and tourism sector are Robot and ecotourism which helps in increasing the overall
profitability and customer base of the company in a positive manner. Along with this, it also
assist in contributing for the economic improvement of the state.

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