Global Travel and Tourism Pattern and Trends: A Comprehensive Analysis

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Global Travel and Tourism Pattern and Trends
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Table of Contents
Introduction....................................................................................................................................3
LO1................................................................................................................................................4
LO2................................................................................................................................................6
LO3................................................................................................................................................9
LO4..............................................................................................................................................11
Conclusion...................................................................................................................................14
Reference List..............................................................................................................................15
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Introduction
Travel and tourism sector organisations operate in the competitive market economy by
providing services and products to the customers of the sector and generate profit. The
operations of the travel and tourism business organisations influence the growth of the economy
of a region through the sustainable practices implemented by them in order to develop the local
and regional economy.
The study focusses on the trends of tourism industry in the global business environment and the
historic development of the tourism sector of the business environment. The relationship
between the various elements of tourism industry and their impact on the tourist experience is
evaluated and analysed in the study. Various factors that drive tourists towards a destination are
also evaluated in the study. The factors that affect the popularity of a tourist destination are
evaluated in the study as well. An effective understanding of the relation between tourist
experience and the popularity of tourist destinations are established in the study.
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LO1
Key milestones in the development of the travel and tourism industry and how they have
shaped the travel and tourism industry
Several modifications in the activities of the travel and tourism industry of the UK and the world
has influenced the growth of the sector in the business environment. Improvement in policies for
tourists and tour operators such as introduction of the Pay Act of 1938 enabled tourist
organisations and the tourist to explore different destinations without compromising with the
annual salary (Sharpley, 2018). It provided the tourists with the opportunity to explore tourist
destination throughout the year. The growth and expansion of cheap commutation also
enhanced the travel and tourism industry to gather better profit and perform better in the
competitive market economy. The development of Jet Airways and Easy Jet ensured tourists
could travel to different destinations at low price. The Tourism Act of 1969 ensured business
organisations operating in the UK market economy could develop their business operations
outside the country and received appropriate recognition as profitable businesses in the market
economy (Kannisto, 2018). The global political scenario has improved over the years especially
the upheaval caused by the world wars had negatively affected the tourism industry of the
region. The comparative peacefulness of the region post-cold war era have enabled the
travellers to explore tourist destinations in and around Europe.
Different elements of the travel and tourism industry and their interrelationship to create
tourist experience
The different elements within the travel and tourism industry refer to the following sectors:
 Attraction element of the travel and tourism sector engages the natural and artificial
attraction markers of a destination and enhances the popularity of a destination
(Weidenfeld and Leask, 2016). Cultural, religious and various other attractive element of
a region enhances the popularity of a region in the global tourism market.
 The accommodation sector of travel and tourism industry refer to the hotel and catering
businesses that are also categorised under the hospitality sector to provide the tourist
with better experience during their travel to different locations (Camilleri, 2018). The
accommodation element of a region also offers the tourists with necessary relief and
serves as an attraction for the destination.
 The transportation sector of the travel and tourism industry acts as an effective element
responsible for enhancing the popularity of tourist destination. The proximity and
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frequency of commutation to various destinations appeal to tourists, which affects the
region’s popularity in the market economy. The development of air, road and water
transportation ensures the destination is able to provide effective interest to the tourists
(Law et al., 2017). The availability of regular commutation to and from the destination
affects the popularity of the location in the travel and tourism industry.
 The organisation element of the travel and tourism industry offers tourists with the
opportunity to gain better tour packages and better tour plans for vacations. The
organisation sector incorporates all the elements for providing the tourists with an
effective and memorable tourist experience in different destinations. It is essential for all
the elements to function effectively in order to provide the tourists with appropriate
experience in the competitive market economy.
It can be stated the interrelationship between all the elements play an effective role in providing
the tourists with appropriate experience at various tourist destinations. The tourism industry of a
region functions successfully through the interrelation of each element. Any type of malfunction
within a single element would affect the tourist experience for the region. Since the travel and
tourism industry survives on the profit generated through service providing activities, it is
essential for organisations to develop their functioning in the competitive market economy
through appropriate mutually dependent activities (Vellas, 2016). The attraction element and
commutation element of a region are directly related to ensure the tourists are able to reach the
destination in an efficient manner. The organisation element as well as the commutation
element ensures the tourists are able to experience the benefits of a smooth and efficient
functioning travel and tourism system of a region.
It can be stated that issue with a single element of the travel and tourism sector may affect the
tourist experience for the destination. The elements are inter-related to each other in a way that
presents the tourist experience with an absolute amalgamation of the tourist experience in the
destination. A poor commutation system affects the tourists experience in visiting the region, as
they would not be able to reach the destination easily. The lack of proper accommodation and
organisational activities in the destination affects the tourists’ experience within the destination.
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LO2
Different factors that affect tourism behaviour
The presence of various factors in the travel and tourism industry affects the tourists’ decision to
visit a tourist destination. These factors play as essential role in determining the potential of a
destination and the flow of tourist traffic to the destination. Tourism behaviour is identified as the
psychology of the tourists who visit different destinations according to the popularity and
uniqueness of the region. Tourists travel to different destinations with the intention to enjoy
leisure, business and medical purpose, for ecology and educational purposes or due to religious
purposes. People even travel for sports and recreation purposes depending on the destination’s
popularity and uniqueness. Depending on the type of tourism a destination experiences there
are multiple factors that influence the tourism behaviour for a region:
 Disposable income is a major factor that influences the tourism behaviour to any
destination. Increasing disposable income allow the tourists to spend more and avail
better products and services at a destination. The ability of tourists as customers to
spend more on services has increased due to the improvement in global economy and
payment structures (Hamari et al., 2016). Sustainable tourism development and
effective planning among the tourism systems of various popular destinations have
allowed the global tourism industry to flourish.
 Discretionary time has been a major reason for growth in travel and tourism for
multiple regions. The availability of time for customers to visit different destinations
ensure the success of the region and its popularity in the competitive tourism market
(Veal, 2017). The effectiveness of acquiring enough free time to travel and visit new
places is an essential aspect of growing tourism in various regions. Appropriate time
through the development of working days and maximum working hours has enabled the
tourists to gain discretionary time for travel.
 Social media plays an essential role in determining tourism behaviour towards a
destination. In the age of globalisation, digital marketing and social media presence of
tourism industry of a region, affects the popularity of a region and plays an essential role
in attracting tourists to the region (Benckendorff et al., 2019).
 Tourist system of a region including the accommodation, organisation, commutation
and attraction elements of a region influence the tourism behaviour in the region. The
popularity of a destination is based on the efficiency of the tourist system and the
experience tourists gather from the destination. These factors play an effective role in
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determining the popularity of a destination in the competitive tourist market economy.
The necessity for an effective growth in popularity of a destination.
Apart from the factors that influence the growth in popularity of a region, there are multiple other
elements such as the global economic condition and the political stability of the tourist
destination. These factors influence the tourism behaviour regarding a destination and affects
the popularity of a destination.
Models of motivation and their influence on consumer decision-making process
Consumer decision-making process is influenced by the attraction quotient and several other
attributes associated with the destination. It is essential for tourism organisations to improve
their business procedure in order to attract the tourists to a destination. Improvement in
infrastructure and internal development allows the destination to improve the flow of tourists to
their destination. The push-pull factors of tourist attraction methods affect the tourists’ decisions
to visit a destination. Several models of motivation provide a brief idea about the factors that
influence the tourist customers’ decision-making process regarding a destination:
Plog’s model of tourist decision-making
According to Plog’s model of consumer behaviourism in the travel and tourism industry, tourists
can be classified into several groups based on their decision-making process of selecting and
visiting a tourist destination (Horner and Swarbrooke, 2016).
The Allo-centric behaviour of tourists is determined as the behaviour of tourists that are
adventurous in nature and seek to travel to new destinations (Jeon et al., 2018). Every time they
travel, they choose a new destination. These tourists cannot be considered as returning
travellers to a destination and are mostly wanderers in the tourism industry.
The Psycho-centric behaviour of tourists are the exact opposite from the wanderers, as they
prefer to visit a destination after careful consideration of the tourism system of the region
(Maximiliano and Skoll, 2016). Customer reviews, opinions and existing amenities of a
destination enable the location to attract tourists that prefer to study their destination before
visiting. Usually these customers are repeating tourists and return to the same destination
depending on the experience they had in the tourist destination during their visit in the first time.
The Mid-centric behaviour exhibited by the tourists of a region can be identified as the mixture
of both the wanderers and the repeaters to a destination (Yoo et al., 2018). They choose the
destination in an adventurous way but return to the destination according to the type of
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experience they had in the location. In the global tourism scenario, the mid-centric tourists
generate maximum income for a destination.
Considering the factors that provide the tourism industry with constant income, it is essential for
the destinations to manage their available resources in an effective way in order to attract the
mid-centric as well as the psycho-centric tourists to their destinations. The factors act as pull
factors for the destination in attracting tourists. Appropriate tourist experience ensures the
destination is able to generate better revenues through business transactions and are able to
gather repeating tourists to their destination.
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LO3
Current patterns and key trends in travel and tourism
Introduction
The trends affecting the profitability of global tourism organisations are identified through the
type of business transactions the destinations garner in the competitive business environment.
The influence of different factors on the destinations as well as the continuous development of
the tourism systems play an essential role in attracting tourists to a destination. Trends in the
tourism and travel sector can be recognised through the increasing number of tourist arrivals,
increase in local business transactions and the length of stays for the tourists.
Recent and emerging patterns and trends in the international travel and tourism industry
The key trends that influence international tourism and travel industry are as follows:
 The growth and development of digital technology in the tourism industry enabled
tourists and customers to gain awareness regarding different destinations of a region.
Digital technology ensured the transactional procedures are facilitated along with the
booking system and payment procedures are benefitted in the tourism industry. Digital
technology enhances the ability of tourism organisation to increase their communication
with tourists and are able to create better packages to satisfy the demands of the target
tourist demographic (Vellas, 2016).
 New methods of marketing tourist destinations enable the tourism organisations to
attract greater number of tourists. Development of the destination with appropriate
amenities assure the tourists that the region is developed. Improvement of facilities
ensure the tourists are able to enjoy the facilities provided by the destination. Developed
and efficient tourism system of a destination promote the economic growth of the region
and present better profits from tourist activities (Giaoutzi, 2017).
 The growth of sharing economy through the development of Airbnb and Uber in the
travel and tourism industry has influenced the flow of tourist traffic to destinations in a
positive way. The impact of Airbnb in the hospitality and the accommodation industry of
destinations has been fluctuating since it encourages community involvement of a
destination in the tourism activities with the guest community (Guttentag, 2015).
 The involvement of Uber in the commutation industry in various destinations provide the
tourists with the opportunity to travel without being involved with the local traders.
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Despite the ease and comfort, Uber services provide to the tourists it does not enable
the growth of sustainable tourism in a destination (Font and McCabe, 2017). Hence, it
hinders the progress of economic development for the local community. Uber’s
expansion in the era of globalisation improves commutation system for a destination but
does not allow the tourists to enjoy the local authentic experience from the destination.
It is observed from the trends and patterns of global tourism industry that certain aspects of
globalisation has benefited the tourists and the local community of the destination. Digital
marketing of tourist packages and increased communication with tourists allow the development
of local destinations effectively, which attracts domestic and foreign tourists efficiently. The
growth of a region through tourism ensures the economic development of the region as well.
This encourages the progress of outbound tourism as well. Hence, it is observed that the
tourism system of a region influences the success of the overall tourism experience for the
tourists as well as the local residents, which enables them to participate in better business
opportunities. Travel and tourism development of a region helps the economic growth of the
area in different levels- national, regional and community levels. The practice of sustainable
tourism development plans ensure the involvement of the local communities in catering to the
specific needs of the tourist customers (Dodds et al., 2018).
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LO4
The factors affecting the current levels of popularity of different global destinations
Popularity of different global destinations are evaluated through the TALC model that
determines the life cycle of a tourism area. The cycle provides information regarding the scope
of development in a tourism area through various aspects and the consequential growth in
popularity for the region. The TALC model enables the region to attract more tourists to the
destination and improve their attraction quotient (Krešić et al., 2016). The TALC model proves
that the tourist destination evolves its popularity in various stages- exploration stage enables the
allo-centric tourists to identify the potential of the destination through basic amenities available
in the region, involvement of the local authorities and communities allow the destination to
develop a better understanding of the attributes the destination has to offer to the customers.
The development stage of the destination enables the region to develop their economic, social
and cultural aspects through globalisation and appropriate tourism development activities. This
stage encourages the inflow of psycho-centric and mid-centric tourists to the destination.
Figure 1: TALC Cycle
(Source: Kristjánsdóttir, 2016)
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The developed stage of the tourism destination enables the region to improve their attraction
quotient in the competitive business environment and improve their economical condition. The
practice of sustainable tourism development attributes in the destination allows tourist
destinations to attract customers and maintain the popularity of their destination constantly. As
observed from the TALC cycle the consolidation and stagnation stages must be avoided for a
destination to make improvements in their profit gathering ability. The growth of popular
destinations is largely based on the type of economic and sustainable tourism development
model the region adopts in order to gain popularity. However, the allo-centric tourists always
discover new offbeat destinations that serve as new destinations that would generate better
income in the future.
Factors affecting the popularity of a range of global destinations
The development of numerous destinations with a growing popularity proves that the reaches of
globalisation are affecting the economic and regional development of areas across the world.
Considering three popular tourist destination, it can be analysed that external elements and
aspects of globalisation have improved the popularity of the regions.
 The demand for tourist vacations in Dubai can be identified through the economic
development experienced by the region and the direct relation to its growth in popularity
as a major tourist destination. The political and economic scenario of the region is better
than the other middle-eastern countries. Dubai offers improved and modern amenities to
the tourists and boasts of luxurious items available at cheap prices (Bevolo and Gofman,
2016). The destination manages to implement variety of tourism experience in their
package deals that is unavailable in other regions. The USP of Dubai as a destination
lies in the marketing scheme that the destination serves in the global tourism industry.
 The development of Bali as a tourist destination in the South East Asian region can be
traced back to the significant utilisation of community involvement the region has
implemented in sustaining the destination in the global tourism market. The involvement
of the local market economy in providing tourism facilities to the guest community at
affordable prices and performing tourism activities that support the environment ensures
the destination is able to maintain its popularity against other popular destinations
(Hughes and Scheyvens, 2018).
 The development of Iceland as a major tourist destination was based on the region
through social media. The popularity of the region was due to the popularity of the
television show filmed in the location.
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