Analysis of Global Travel and Tourism Patterns and Trends

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The Contemporary Travel and Tourism Industry
Assignment Number and Title:
Global Travel and Tourism Pattern and Trends
Name of Student:
Name of Professor:
Authors Note
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Table of Contents
Introduction....................................................................................................................................3
LO1................................................................................................................................................3
P1 Discussing key milestones in the development of the travel and tourism industry and how
they have shaped the travel and tourism industry.....................................................................3
P2 Identifying the different elements of the travel and tourism industry and explore how they
interrelate to create the tourist experience.................................................................................5
LO2................................................................................................................................................7
P3 Determining the different factors that affect tourism behavior..............................................7
P4 Explaining models of motivation and how they influence the consumer decision-making
process.......................................................................................................................................8
LO3..............................................................................................................................................10
P5 Identifying recent and emerging patterns and trends in the international travel and tourism
industry.....................................................................................................................................10
LO4..............................................................................................................................................12
P6 Examining the factors affecting the popularity of a range of global destinations................12
Conclusion...................................................................................................................................14
Reference List..............................................................................................................................15
Appendix......................................................................................................................................17
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Introduction
The fast emerging travel and tourism industry include various smaller business enterprises with
a common goal. Its aim is to provide quality products and services to travellers all over the
world. In a relatively shorter time span, this industry has become popular and is now the largest
industry among civilians globally. According to surveys and studies, one out of ten people is
involved with the travel industry. The travel and tourism industry encompasses a vast array of
products and services such as Lodgings. Hotels, resorts, motels, condominiums, casinos fall
under the operations of lodgings. There is also the Transport Industry which covers the
airplanes, ships, luxury vehicles, and public transport. Food and Beverages is a crucial part of
the industry consisting of banquets, bars, restaurants, catering, snack bars, and Vending
Machines. Retail stores such as Handicraft shops, gift shops, and souvenir shops are one of the
sections of this industry. Travel activities such as ethnic festivals and amusement parks are an
essential part of this business.
LO1
P1 Discussing key milestones in the development of the travel and tourism industry and
how they have shaped the travel and tourism industry
Since the last few years of the 20th-century travel and tourism has grown dynamically as an
industry. There are several reasons which have led to this robust and steady growth. Even the
global financial crisis had little effect on it. As on date, it is the largest industries in the world. It
has an economic contribution of more than 7.6 trillion US dollars internationally as of 2016
(Inkson and Minnaert 2018). This whopping figure considers indirect, induced and direct
impacts. But even the direct impact economically through sub-industries such as lodgings,
recreation, and transportation was about 2.3 trillion USD (Anfuso et al. 2017). United States,
United Kingdom, France, and Australia are top contenders as a tourism destination but several
lesser known nations are also gaining momentum in the market. In 2016 Dubai was the leading
destination for international tourists who spent about 31.3 billion USD. The number of
international tourists globally has increased from 563 million in 1996 to an estimated 1.32 billion
in 2017 (Inkson and Minnaert 2018). Europe has always been one of the popular tourist
destinations but currently, the Asia Pacific area is giving tough competition to it. Among the
factors which have contributed to its growth over the years, an agreeable climate is one of them
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(Mason 2015). It is a major attraction quotient for tourists. Climates with warmth and lots of
sunshine are able to attract tourists belonging to the cooler regions. Maximum of the seaside
resorts located in the United States and the United Kingdom are based on the warmer
southeast part. Alternately the people from warmer climate flock towards pleasant, cold and
fresh climates. Internationally there are countries like Sweden, Finland, and Switzerland which
gets arrival from tourists owing to cooler climates. Several policies have been designed by the
government of United Kingdom which has led to the growth of tourism.
 Package Holidays 1949
A vital strategy adopted by Travel and Tourism was the package holidays. Package Holidays
gained much popularity through 1960’s and 1970’s as people had more disposable income and
were keener to visit new places. Package holidays included food, transport, return flights,
accommodations and transfers.
 Development of 1969 Tourism Act
The aim of this act was to provide better co-ordination between all the factors which has
contributed to the growth of tourism. It provided for the foundation British Tourist Authority for
England, Wales and Scotland which was tasked with promoting tourism for Great Britain.
Financial aid derived from public funds for the up keeping and improvement of hotels and
accommodation were also included under this act (Brondoni 2016).
 Disability Discrimination Act 1995
The Disability Discrimination Act 1995 pioneered the change such that people with disabilities
were not discriminated. This act required that public bodies too should promote equality of
opportunities for people suffering from physical disabilities.
 Technological Developments 1990’s and 2000’s
Since the introduction of internet and Smartphone there has been a dramatic development
which has made it much simpler to travel abroad. After 1960’s technology has also improved
such that check in at international airports have become easier. The Internet has changed the
way people buy travel products. Tourists can access reviews easily. The BPO industry is utilized
by major tourism company and holiday airlines to better handle a customer’s query.
 Creation of Tourism Zones 2017
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Tourism Zones were created by the Tourism Industry Council at the end of September 2017.
This was done in order to develop quality tourism products to fulfil the expectations of
consumers as well as fixing local transport problems to provide an overall pleasant experience
to visitors.
 Change in Working Patterns
Growth of flexible working patterns has induced people all over the world to take more vacations
over the years. Flexible working patterns have enabled people to take more time away from
their jobs and spend time with family and friends which have lead to the growth in the tourism
industry.
Figure 1: Key milestones of Tourism Development in UK
(Source: Self-developed)
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Package Holidays 1949
Development of 1969 Tourism Act
Disability Discrimination Act 1995
Technological Developments 1990's and 2000's
Creation of Torism Zones 2017
Change in Working Patterns

P2 Identifying the different elements of the travel and tourism industry and explore how
they interrelate to create the tourist experience
Diverse industries contribute to the tourism industry in order to make it a more enjoyable
experience for tourists globally (Koo et al. 2015). The tourism industry deals with providing
satisfaction to travellers covering basic, luxurious and leisurely activities. It is a multibillion-dollar
industry depending upon live styles, time and disposable income. Lodging implies
accommodation for a period of time spanning one or more nights. Five-star hotels,
campgrounds, resorts, and youth hostels all come under the lodgings industry. Lodging provides
accommodations to leisure travellers, budget travellers, business travellers and special
travellers like people working for airlines, government and military. The Hotel Industry caters to
about 85% of tourism in Europe (Towner 2016). With an increase in the disposable income of
people worldwide, the industry has grown by 3.5% each year since the last seven years. Also
now there is greater demand for niche products which is 175% more than regular products in
Europe. In Europe, wellness and health resorts are estimated to grow at 50% in the future
(Brondoni 2016). Another progress has been in the demand for Branded Residences and Villas
which provide an overall satisfying experience for tourists. The travel industry is a significant
aspect of the tourism industry since it provides accessibility of destinations to tourist. Autos,
buses, cabs, airplanes, cruiser, trains and ships constitute of the travel industry. The travel
industry is once again dependent upon the money a tourist is willing to spend on a traveling
experience.
Tourists may opt for leisure travel during vacations which includes recreation and food. Time is
also a factor in the travel industry. If tourists are concerned with accessing a location fast they
prefer traveling via air. Then there are tourists who are looking for an exclusive experience and
have enough time to do so. Traveling by train is an option for these tourists. The Trans-Siberian
railway connecting Moscow and the east of Russia take up to 6 days and is availed by tourists
globally for the unique experience provided by it. The cruise industry too is showing sustainable
growth in Europe. 123 ships were carrying 6.6 million passengers in 2015. The industry has
contributed 41 billion euros to the economy in Europe in 2015 (Medlik 2016). The major
countries from which passengers embark consist of the United Kingdom, Germany, Italy,
France, Greece, and Spain. Technological progress throughout the world has increased the
popularity of the travel industry. Travel now is imminently accessible and with the simple press
of key tourists all over the world is able to book a jet or flight pertaining to their budget
estimations. The industry has boomed over the last 15 years. With the introduction of the
Smartphone and several strategic apps, travel has become radically easier. There apps and
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websites to chalk out plans. Itinerary software, tour operators and travel agents have
contributed to streamlining the industry.
Food and beverages is a vital segment of the tourism industry. It is often but not always linked
with the lodging industry. Tourists prefer to partake meals within the lodgings or in nearby areas.
Establishments providing snacks, meals, and beverages for instant consumption comprises of
the Food & Beverages Industry. Food and Beverages industry, as well as the Lodgings Industry,
are often merged together. Such as hotels which provide restaurant services enhances the
overall experience of a tourist. Contemporary customers of the Food & Beverages industry
looked towards more organic and plant-based products. A number of changes have occurred in
the F & B industry in the last few years for the shift in customer preferences. Tourists too now
opt for local products with health benefits to experience the flavour of a particular spot.
Recreational factors such as adventure sports, museums and theatres contribute actively to the
industry of tourism. All of these industries in the modern world are conveniently clubbed under
the hospitality industry to provide a unique experience for tourists. For example, there are some
hotels which arrange for ethnic festivals for tourists.
LO2
P3 Determining the different factors that affect tourism behaviour
Consumer behaviour is an essential feature of any market study and also applies to the tourism
industry. Identifying the factors which affect the behaviour of a tourist helps in understanding the
buying procedures and patterns of the industry. Global economic conditions are one of the
reasons which affect a tourist's behaviour.
A global economic recession in the year 2008 had caused a severe slump in the Travel &
Tourism industry. This is because travel for leisure is perceived as a luxury. Only when there is
ample disposable income and people are not worried about earning can they make plans to tour
and travel. Owing to the poor economic conditions globally in 2008 the tourism industry suffered
a 5% reduction (Bunakov et al. 2015). After 2010 due to improvements in the global economy
tourism has seen steady growth. An increase in digitalization has also helped in the growth of
the tourism industry. Via Smartphone and numerous apps tourists are now able to book hotels
and flights with the simple click of a button. Due to the simplicity of these services, there has
been a vast increase in tourism activities over the world.
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The advent of Social media and the Internet has made traveling and touring much easier.
Tourists can easily access opinions and reviews about destinations, strategic spots, car rental
agencies, and airlines. On sites such as Twitter, Facebook and Google travellers can easily
obtain information about the services being offered by any business. The website of a particular
business may affect consumer behaviour but if online reviews do not match travellers are less
likely to opt for it. Though dependent on the global economy personal budget of a tourist also
matters. Well informed travellers find ways to cut down their budgets. There are several airlines
which provide competitive deals to frequent fliers or if flights are booked much beforehand (Raj
and Griffin 2015). Hence the budget and know-how of a tourist also play an active role. The
personal and psychological factors of a tourist such as his lifestyle, age, family life, motivations,
self-image, attitude and professions shape his decisions to travel. Self-image is the perception
that a person has of himself and influences the behaviour of a person significantly.
Attitude is how a certain person will respond to the offer of product or service pertaining to the
tourism industry. It thus influences the position of tourism products in the market. The age of a
tourist matters while making decisions. It is, in fact, an effective discriminator. Young people
have vastly different lifestyles and choices compared to older people. Also, the youth have a
more tendency to spend money when compared to older people. Young couples without
children are more likely to travel as compared to young couples with children under the age of
six. Profession and education also rule a tourist’s behaviour since a consumer’s choices and
preferences are dependent upon his education. Social standing does matter in affecting a
tourist's behaviour about traveling (Gretzel et al. 2015). Tourists belonging to a superior social
tier dedicate considerable time to traveling for leisure. Tourists from medium or inferior social
standing dedicate a small amount of time to travel. They generally travel in groups to avail
discounts.
P4 Explaining models of motivation and how they influence the consumer decision-
making process
Maslow hierarchy of needs model
Abraham Maslow proposed a theory in psychology pertaining to the theories which motivate an
individual throughout his life. It classifies the theory of human growth throughout his lifetime. As
per Maslow, a person needs to reach his full potentiality in his lifetime guided by some basic
and complicated urges which have been defined by him.
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Figure 2: Maslow’s hierarchy of needs
(Source: Chen and Law 2016)
Hierarchy of needs is portrayed in the form of a pyramid. At the base is the physiological need
of a human which must be met first. Without meeting physiological needs a human will not look
for safety, love/belonging, esteem, and self-actualisation (Chen and Law 2016). Basic needs
under this category include food, water, sleep, and shelter. Once the physiological needs are
met a person pursues the safety needs of the hierarchy such as safe environment, health, and
job security. This level is more dominant in children since they have a greater need to feel safe.
After these criteria, a human focuses on the need for social belonging. In the absence of social
belonging a human being can feel loneliness or severe ostracisation. Following this, a human
being needs respect from his peers and society in general, as well as from himself to validate
his overall identity. Then is the need for self-actualization where a man must reach his full
potential. A desire to achieve goals related to their individual capabilities. When choosing a
product these traits come into play. A consumer related to the tourism industry can only travel if
the first two requirements are fulfilled in his life (Rihova et al. 2015). Travel is for most a leisurely
activity and hence will not take preference over foods and safety issues of a consumer. A
marketer must understand the roles these factors play in the decision making of a tourist. These
needs determine the location, type, and duration of the vacation planned by an individual. It can
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Self
Actualisation
Esteem
Love/Belonging
Safety
Physiological

even determine whether a person will take a trip at all. It will also help in understanding the
length of stay, activities, attractions and spending patterns of a tourist.
Moutinho Model of Motivation
The Moutinho model also attempts to explain the patterns of behaviour in a tourist. It is an effort
again a more specific understanding of the behaviour of a tourist. There are two categories of
motivation which urge a person to take a vacation (Moutinho and Vargas-Sanchez 2018). These
are the general and specific motivations. General motivation is when a tourist undertakes a
vacation without any specific purpose and awareness. Alternately specific motivations
acknowledge the external forces such as knowledge, personal experience, stories from friends,
advertisements, mass media and travel itineraries which influence the decision making patterns
of a tourist. Also, there are intrinsic forces which inspire a tourist to make decisions. These may
be based on past experiences where a tourist had gained satisfaction and might want to revisit
the place. Moutinho proposes that there are three segmentations of the tourism decision-making
process of a tourist. These are as follows
 The Pre Decision Stage Process
 The Post Purchase Evaluation
 Future Decision Making
As per the model, these stages are in a continuous loop with each factor affecting the other.
This model also implies that any tourism decision is a summation of cognition, motivation, and
learning. The desire to purchase tourism products vastly varies from normal purchase since
there are no noticeable returns as compared to other investments. The desire or expectations
will vary from person wise depending upon circumstances at a particular time. Thus another
complexity is presented to marketers since emerging trends also influence tourists’ decisions.
Intangible results sought by a tourist become hard to predict.
LO3
P5 Identifying recent and emerging patterns and trends in the international travel and
tourism industry
There are several emerging trends in the current market affecting tourism. With the change in
the consumer's lifestyle and preferences, a lot of trends have emerged in the past year. An
increase in last minute bookings is a growing global trend (Fennell 2015). Travellers tend to
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book for tours which require around 1-3 hours just before arrival. This makes it a bit difficult for
travels and tour operators to plan staffs and resources. Live availability is a key factor in driving
this trend. Despite this, for long tours, advance booking is a preferred method. Booking in
advance reduces the fare for a consumer. As per 2018 survey, there has been a significant
increase in travellers from a new destination such as China, Latin America, Spain, and the USA.
A lot of new destinations are also emerging as new spots such as Uzbekistan. The scrapping of
the visa schemes and superior architectural constructions has contributed to its popularity. Iran,
Bolivia, Rwanda, and Kyrgyzstan have also emerged as popular destinations. With the increase
in the youth population globally tourist are now more focused on getting once in a lifetime
experience over luxury tours. Tour operators each day are receiving more requests for such
experience from customers. Millennial now are keener to explore the world thus setting a
change in the trends of tourism. Millennial are also willing to spend more money as compared to
earlier generation on tours and travel experience. There is a rise in demand for educational and
ecological tours. Rare niche tours which educate tourists about a particular area or how to
ensure its protection have a higher demand in the market. Also, tours who utilize the funds by
donating them to animal or forest habitat restoration have higher popularity compared to regular
tours.
Another new emerging trend is the skip the line tour. Its popularity has increased particularly in
strategic sites such as the Sagrada Familia, the London Eye, and the Eiffel Tower. They are the
second fastest growing segment for travellers in the United States as of 2017 (Mathew and
Sreejesh 2017). Also, travellers now prefer a local experience above all. Tourist all over the
world are now more are more concerned with immersing and gaining knowledge about local
culture when they are visiting a location (Tribe 2016). Tour operators are now offering quaint
experiences that tourists can enjoy with a local person to obtain a full taste of the destination’s
culture. Tours related to the history and culture of any place is still popular. A destination expert
with knowledge of the proper culture is helpful in this regard. Tours which are packed with
adventure activities and sport continue to show growth for the last twenty years. Popular
destinations are Queenstown in New Zealand, Area 47 in Austria and the Interlaken area in
Switzerland which have a vast array of adventure sports which a tourist can select from. Travel
and tourism at one point of time were considered a luxury but is now within the affordability and
reach of variable social standing. A lot of economic factors have contributed to the growth of the
tourism industry. The increase in disposable income, falling costs, rise of the middle class and
lowering of travel barriers have also contributed to its growth. With alternate accommodations
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such as hostels and bed and breakfasts, a variety of low budget options are being given to a
tourist who might have financial constraints.
Yet another fast emerging trend is Bleisure or people who make time for leisure during traveling
for business (Lee 2016). It has been on the rising for the last five years owing to the increase of
millennial in the global workforce. While young people have insatiable desire to travel and soak
in new experiences they also perceive travel as a form of luxury. This is where Bleisure is
introduced which allow them to find an equilibrium between personal edification and fulfilment of
work.
LO4
P6 Examining the factors affecting the popularity of a range of global destinations
Tourists now have a variety of destinations to choose from. Among one of the popular spots is
the United Kingdom. It consists of England, Wales, Scotland and Northern Ireland. The United
Kingdom consists of two major landforms the highland and the lowland. It is famous for its rich
history, cultural diversity and scenic landscapes. The UK consists of mixed cultures of people
generally referred to as British but can also consist of Scottish, Welsh, Irish or English. The
people in the United Kingdom are generally gentle mannered and polite with an admirable
sense of humour. Not only does it have great tourist spots but these spots are also regularly
maintained with ample infrastructure so that tourists would want to visit again. London is a hub
for iconic landmarks and building (Wu 2016). It is also a cultured centre for shopping, food, and
fashion. Chester in the UK is a two-thousand-year-old city having a rich cultural heritage. Bath is
one of the countryside towns in the UK. It is famous for the natural hot springs. Cultured
Georgian Architecture at Bath completes the total experience.
Paris the capital of France has always been a favourite spot for tourists from all over the world.
The number of hotel arrivals has increased from 31.1 million in 2006 to 33.9 million in 2017
(listchallenges.com 2019). One of the vital reasons for this is Paris's romantic and beautiful
image over time. Many famous writers have described the beauty of Paris in their work. The
awe-inspiring architecture, the famous Eiffel Tower and Louvre Museum have all contributed to
the eternal beauty of Paris. Known as the City of Lights even a simple evening is considered a
pleasure by visitors. Tourists from Europe, the United States, and China keep frequenting this
city to catch a glimpse of the stunning Champs Elysees and its adjacent array of boutiques.
Disneyland in the city of Paris with its theme park attracts about 15 million visitors every year. In
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