Development, Behavior, and Trends in Travel and Tourism Industry

This essay provides a comprehensive analysis of the contemporary travel and tourism industry, beginning with a discussion of key milestones in its development and how these milestones have shaped the industry. It identifies and explores the different elements of the travel and tourism sect...Read More

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THE CONTEMPORARY TRAVEL AND TOURISM INDUSTRY

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK1.............................................................................................................................................3
P1 Discuss key milestones in the development of the travel and tourism industry and how they
have shaped the travel and tourism industry................................................................................3
P2 Identify the different elements of the travel and tourism industry and explore how they
interrelate to create the tourist experience...................................................................................4
TASK 2............................................................................................................................................6
P3 Determine the different factors that affect tourism behavior..................................................6
P4 Explain models of motivation and how they influence the consumer decision-making
process..........................................................................................................................................7
TASK3...........................................................................................................................................10
P5 Identify recent and emerging patterns and trends in the international travel and tourism
industry.......................................................................................................................................10
TASK 4..........................................................................................................................................12
P6 Examine the factors affecting the popularity of a range of global destinations...................12
Conclusion.....................................................................................................................................14
REFERENCES..............................................................................................................................16

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INTRODUCTION
Concept of travel and tourism industry is changing continuously, this also impacting on
the business of tourism organization. This is because in current time there is a different kind of
development as well as change in the behavior of customers which is impacting on business
organizations related to tourism and travel industry. Tourism can be defined as travelling of an
individual from one place to another in search of satisfaction. This satisfaction is directly related
to enjoy fun and living the life by changing the regular life cycle or routine. Under the present
report, there is discussion about the development of travel and tourism industry and how it gets
shape in the current time. There is also discussion about different elements related to travel and
tourism industry which are interrelated to creating a tourism experience. In the middle of this
report, discussion about different factors which affect the tourism behavior as well as models of
motivation and influence of the customer decision making processes. There will also discussion
on the recent emerging patterns related to international travel and tourism. In the end of this
report, there is discussion about the factors affecting popularity of global destinations.
MAIN BODY
TASK1
P1 Discuss key milestones in the development of the travel and tourism industry and how they
have shaped the travel and tourism industry
Historical Developments in the Travel and Tourism Industry
It cannot be disputed that the travel and tourism industry is one of the largest economic
sectors in the world, providing employment to hundreds of millions of people. In fact, there are
nations in the world whose economies are entirely dependent on the tourism sector. It is vital to
observe that the tourism industry has grown in leaps and bounds over the years. The first known
travel company in the world was Cox & Kings, which was founded in 1758 by Richard Cox to
cater exclusively to the members of the British Royal Armed Forces (Kleinman, 2019). In
particular, the firm handled the movement of infantrymen from the regiments to the battlefields.
It was, however, Thomas Cook who created the first leisure travel company. He founded the
company in 1842 for the sole purpose of enabling British citizens to improve the quality of their
lives by touring the world (Gierczak, 2011). By 1845 Thomas Cook had designed commercial

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tour packages that were complete with comprehensive guides as well as affordable railway and
ship tickets (Gierczak, 2011). Thomas Cook can, therefore, be credit with the emergence of
travel and tourism as both a modern and large-scale industrial sector. Indeed, his simple idea of
chartering trains to carry working-class English citizens from cities such as London to the
countryside paved the way for what has been largely recognized as the contemporary era of
tourism. In the Post World War II-era, the world has witnessed the epoch of modern mass
tourism. Technological developments air transport has made it easy for people to travel to
destinations across the world in relatively short amounts of time. Today, the explosion of the
online rental marketplace continues to disrupt the conventional structures of the travel and
tourism industry, making it almost accessible to anyone.
P2 Identify the different elements of the travel and tourism industry and explore how they
interrelate to create the tourist experience
The travel and tourism industry is not a monolithic system. Instead, it is a sophisticated
structure that is made up of several interconnecting components, all working together to make
the overall travel and tourism experiences seamless, and to provide value to customers. The first
component is the tourist destinations. A tourist destination refers to any place that has marketed
itself as place that tourists should visit, and which significantly depends on the revenues from
tourism for its survival. The second element of the travel and tourism sector is transportation.
Tourists must have the ability to move from their countries of origin to their travel destinations.
They achieve this objective through international, regional, and domestic airlines. Other tourists
also move through sea and ground transportation vessels. The third element is accommodation.
In fact, it could be argued that accommodation is the most important requirement to be satisfied
for any tourist activity to take place. Travelers and tourists need places where they can lodge

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while on their excursions. The fourth component of this sector is tourist attraction sites. These
are the places of interest that are visited by the tourists. For this matter, they must exhibit a
certain level of natural, cultural, or historical importance. Also, they must possess the capacity to
cater to the leisure and amusement needs of the visitors. The firth component of the travel and
tourism industry comprises of the travel brokers. Notably, they are the travel agents and tour
operators, whose role is to design commercial packages and make it easy for tourists to move
from their countries of origin to their destinations. The final element comprises of tour-related
services, without which it would be impossible for tourists to enjoy their excursions. They
include the financial services such as for exchange and credit card services that make it possible
for individuals to execute flawless financial transactions from anywhere in the world. With these
components working together, tourism has become safe, comfortable, and above anything else,
enjoyable.
It is vital to point out that the components discussed above interact with each other to
provide unique experiences for tourists. They are also interlinked and provide supplementary
services, meaning that one cannot do without the others. By way of example, tourism has been
noticeably stimulated by the developments in air travel. Indeed, improved air connectivity has
made it possible for individuals to fly to tourist destinations across the word in a safe and
efficient manner. Without this connectivity, it is impossible to expect the industry to thrive. The
significant growth witnessed in the hotel and accommodation sector has also made tourism
incredibly enjoyable. Today, online rental service providers such as Airbnb are disrupting the
market by allowing ordinary consumers to turn their homes into hotels and resorts that provide
boarding and lodging facilities to travelers and excursionists. Without lodging facilities in the
tourist destinations, travelers would be significantly inconvenienced. The onus is, therefore, on

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the key players in the industry to ensure that these components work flawlessly to provide
incredible value to tourists. In this regard, they should be constantly on the lookout for changing
technologies and adjust their structures as is required.
TASK 2
P3 Determine the different factors that affect tourism behavior
Factors Driving Tourist Behavior
Consumer behavior refers to the processes utilized by consumers to choose, purchase,
and consume a range of products and services, including their emotional, behavioral, and mental
responses to the said products and services. Consumer behavior is concerned with how people
formulate decisions regarding how to spend their assets to purchase those products and services
that can best satisfy their diverse needs (Griskevicius and Kenrick, 2013). When it comes to
tourism, consumer behavior and decision-making is a complex process that involves the
intersection of various sub-divisions, ultimately determining overall tourism preferences (Sparks,
Perkins and Buckley, 2013). The factors underpinning tourist behavior can either be social,
cultural, or physical. The physical factors affecting tourist behavior include the geography and
infrastructure of a destination. As already pointed out, a tourist destination can only be popular if
its boasts of a wide variety of attraction sites that are complemented by accessible and
convenient facilities. When choosing a tourism destination, individuals will first determine the
physical attractiveness of that destination, followed by the availability of facilities that can make
their stay comfortable. Social factors also influence the behavior of tourists. By way of example,
a destination that is crime-infested may not be popular among tourists. Also, a destination whose
local population is not hospitable to outsiders may not see an upshot in the number of visitors.
Moreover, cultural factors impact the behavior of tourists and determine their likelihood to visit a

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destination. It should be observed that tourist attraction sites are often situated within
communities. When visitors travel to these sites, the money they spend goes directly to the local
communities, which in turn utilize this resource to improve their economic prospects. Thus,
tourists are more inclined to visit those destinations where local populations are actively
involved in the decision making processes that inform the sustainability of the tourism projects
existing in their localities.
Place of origin is also a factor which impact the tourism behavior this is because in
relation to a broad spectrum of tourism behavior it depends upon the place that they belongs to.
This can be seen from an example of North Americans where the like to follow their own
cultures and frameworks. One more example of this function is related to Japanese and Korean
tourist would like to visit different places in groups. This can be said place of origin plays
important role in determining the behavior of individual. Tourism destination is also a factor
which impacts the tourism, this can be seen that it is a major contributing factor in altering the
tourism behavior. If a destination has all basic requirements like electricity water clean
surrounding proper accessibility communities and have its own significance then it will attract
large number of tourists. It also impact on the functioning of the organization because tourism
destination involves various factors related to fulfillment of needs in the requirements of tourist.
P4 Explain models of motivation and how they influence the consumer decision-making process
Motivation can be defined as an internal feeling of an individual which is related to
achievement of satisfaction level for working on a particular job. Motivation is directly linked
with the decision making abilities of customers within the market of tourism and travel industry.
Consumer decision making process is it that process which is related to the decision-making
ability of customer in relation to the products and services offered by organization. It includes

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different kind of strategies which starts from identification of needs and requirements of a
product. Under this stage customer will identify a need and requirement for a product and
services for its own satisfaction. After identification of the need, customer will go for
information search. Under this ad will search about the product and services which it has to
consume to satisfy the needs and requirement. For this it will take the past experience into the
consideration as well as ask from the other. After collecting the information it is time to evaluate
the alternative. Under the stage of evaluation of alternative a customer will evaluate different
alternative related to the product and services. Under the stage customer will decide the best
alternative which is available to satisfy the needs and requirement. The best alternative is chosen
by comparing between different alternatives and evaluating their requirement. After fulfillment
of all the stages of the customer will focus on purchasing decisions. Customer will choose the
best alternative which is best suitable to the requirement of the product. It includes identification
of design quality and other factors which are required by the customer. Post purchase evaluation
is the last stage where customer will evaluate about the product and services before purchasing it
and after purchasing it. This Evaluation includes, identification of quality, expiry date and many
other factors.
Equally at the heart of tourist’s behavior and decision-making is the concept of
motivation. Consumer motivation is the state in customers that drives them into identifying
specific products and services that they believe can satisfy their conscious and unconscious
needs (Cohen, Prayag and Moital, 2013). It is the fulfillment of these needs that can either
inspire them to make a repeat purchase of the aforementioned products and services, or look for
superior ones that can better satisfy the said needs. Consumer motivation is not a single process
but a series of actions that an individual takes before they purchase and consume a product or

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service. These actions may include selecting a product, evaluating its alternatives, testing the said
product, and making the final purchase (Cohen, Prayag and Moital, 2013). In light of the
foregoing, consumer motivation is influenced by a wide variety of factors. They include the
social and economic value attached to the product or service in question, as well as the opinions
of buyers who have also interacted with the product. Consumer motivation is as relevant in
tourism as it is in other consumer sectors. It denotes the forces that influence the decision of the
traveler on where to go. These forces are two-pronged. They include the push factors that induce
tourists to travel, and the pull factors that influence their decisions regarding the specific
destinations to visit.
The extent to which motivation influences consumer decision-making in tourism can be
explored using the Maslow’s Hierarchy of Needs Framework. According to this framework,
there are different levels to motivational drivers. At the lowest level of the pyramid are needs
such as food, shelter, and clothing. At the highest level are social needs such as love, as well as
esteem needs such as recognition. Individuals can only satisfy the high-level needs after meeting
those on the lowest level. Maslow’s Hierarchy can be used to categorize the levels of needs that a
tourist destination must satisfy before it is deemed suitable for travelers. At the lowest level are
the psychological needs. Tourists will only gravitate towards those destinations that can cater to
their accommodation and gastronomical needs. After the psychological needs are the safety
needs. Security and stability are important factors that tourists consider when deciding on the
destinations to visit. Thus, destinations that seek to attract a high number of tourists must
cultivate a friendly, serene, and safe atmosphere that can make the travelers comfortable. Finally,
at the top of the pyramid come the social needs. Tourists always desire to feel part of the
communities found in the destinations they visit. Attributes such as the hospitality of the local

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communities will, therefore, influence their behavior and decision-making. In a nutshell, tourists
can only make the choice on whichever destination to visit when they are sufficiently motivated.
It can be evaluated that using the Maslow's hierarchy in need Framework, organization
dealing with the tourism industry can identify the current trends which are helpful to the firm in
influencing the customer decision making process. It will also helpful to the firm in managing
successful operations by identification of customer behavior and using it to improve the
functioning.
TASK3
P5 Identify recent and emerging patterns and trends in the international travel and tourism
industry
Current Patterns and Key Trends in Travel and Tourism
As already pointed out, global tourism has grown significant in the recent past, and will
continue to witness robust growth in the years to come. Like other sectors of the global economy,
however, there are certain trends and patterns that have significantly impacted the demand for
tourism, and which all players in the industry must adapt to if they wish to continue witnessing
sustained long-term growth. The first among these trends is terrorism. Since the September 11th
bombing of the Twin Towers in New York, terrorist activities have been on the rise world over.
Following the killing of Osama Bin Laden and the dismantling of his Al Qaeda terror network,
various groups such as ISIS in the Middle East and North African region, the Al Shaabab in East
Africa, and Boko Haram in West Africa have all emerged to fill the void created. These groups
present a new face of terrorism –one that is transnational and can leverage technology to get
recruits from Europe and even the US. These outfits have shifted their bases from the Middle
East and now possess the ability to coordinate and execute attacks in the heart of European cities.

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The increase in the number of terror attacks in France, Italy, Spain, and the UK pose significant
threats to the tourism sectors of these nations.
The second trend that is shaping and will continue to shape the global tourism economy
is the emergence of the Chinese tourist. According to Wee (2017), 122 million outbound trips
were made by Chinese citizens to various destinations around the world in 2016 alone. In 2017,
Wee projected this figure to grow to 130 million outbound trips. Data released by Smith (2019)
also shows that Chinese tourists spent $277.3 billion in overseas visits in 2018. This figure
constituted an exponential rise from the $10 billion that Chinese tourists spent on outbound trips
in 2000. This figure cannot be compared to the $144.2 billion that Smith (2019) contends
American tourists spent on outbound trips in 2018. This dramatic rise in outbound tourism in
China is for a number of reasons. The most important factor is that China has produced a
generation of millennials who are free-spirited, independent-minded, and drawn to the unique
and authentic experiences provided by travelling. These millennials are remarkably different
from the generation of their fathers, which focused solely on economy-building under the Deng
Xiaoping epoch. One thing about this generation of Chinese tourists that should pique the
interest of any tourism destination is the fact that they are digitally-savvy, seek experiences they
can talk about on social media, and are increasingly leaning towards sustainable travel and
tourism options. As China continues to push its agenda for global domination, the volume of
outbound tourism from the continent is only expected to rise. Tourist destinations that can
position themselves in a manner that appeals to this lucrative market will undeniably see an
upshot in the revenues earned.
The final trend that will continue shaping the global tourism landscape in the years to
come is improved macroeconomic policies. It should be noted that there has been a widespread

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improvement of global economic policies to reflect the new age of dynamism in which the world
is about to enter. By way of example, China has liberalized its markets, and now occupies the
pole position as the low-cost producer of all consumer goods in the world. Additionally, Free
Trade Zones (FTZs), such as the European Union, are being created to guarantee lower
transaction costs and economies of scale for companies, thus boosting economies in the long-run.
Across the world, nations are signing trade agreements such as the World Trade Organization
(WTO) and the North Atlantic Free Trade Area (NAFTA) to increase the overall output of
markets. Moreover, inflation rates are being lowered across a diverse range of economies. These
macroeconomic policies are increasing the real purchasing power of consumers, ultimately
making it easy for people to travel and explore the world. The onus is now on players in the
tourism industry to take advantage of the dawn of this age of economic dynamism, by attracting
as many inbound visits as they can.
TASK 4
P6 Examine the factors affecting the popularity of a range of global destinations
Factors Affecting Current Levels of Popularity of Different Global Destinations
The popularity of a tourist destination denotes the opinions that tourists have concerning
the ability of the said destination to satisfy their leisure and excursion needs. In other words,
popularity is intricately linked to the attractiveness of a tourist destination. The more attractive a
destination is perceived to be, the more popular it becomes. The attractiveness of a destination
lies in its fundamental makeup. There are, therefore, certain conditions that a destination must
meet for it to be perceived as attractive by travelers and excursionists. Does the destination have
the infrastructure needed to provide value to the tourists? In other words, does it have good
roads, proper security, and world-class hotel facilities? Are the services provided by these

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facilities superior? Simply put, it is incumbent upon a tourist destination to enhance its facilities
and services for it to be deemed attractive.
In light of the foregoing, there are three critical factors that impact the popularity of a
wide range of global destinations. The first is the tourism environment of that destination.
Significantly, environment denotes the natural and artificial factors that support the tourism
industry in a given economy. This environment incorporates the natural landscape of an area, its
culture and civilization, plus its safety and security, among others. A destination with a
conducive tourism environment will undeniably be more popular than one without the requisite
environment. The second factor affecting the popularity of a tourism destination is its marketing
strategy. As already pointed out, the tourism industry plays incredible roles in progressing the
economies of nations. Globally, the tourism sector directly and indirectly employs hundreds of
millions of people. Against this backdrop, nations have often embarked on aggressive marketing
campaigns aimed at attracting visitors to their destinations. On this basis, the more aggressive the
marketing strategy of a destination, the more popular it will be. The third factor is the perceived
value of that destination. Perceived value, in this case, refers to the assessment of the overall
utility of a product or service based on the perceptions of customers. It should be highlighted that
the purchasing decisions made by customers are premised on how valuable the product or service
they intend to consume is to them. The perceived value of a product or service is, therefore, the
product of an emotional relationship between the customer and the service-provider regarding
the importance of the latter’s products or services in the life of the former. A tourist destination
that is perceived to be valuable by travelers and excursionists will, undoubtedly, become popular.
A destination that is perceived to be valuable, boasts of a robust tourism environment, and has
developed comprehensive and innovative marketing strategies will see its popularity soar.

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One of the most popular tourist destinations in the world is France. According to data
published by Seraphin (2017), 83.8 million people visited France in 2014, generating revenues
amounting to €43.2 billion. Many people visit France because of the perception that it is the most
beautiful country in the world, boasting of culturally significant cities such as Paris and
Strasbourg, spectacular beaches, and the French Alps. In specificity, two critical factors have
contributed to France’s popularity as a top global destination. The first among them is France’s
relative safety and security. Tourism as an industry has always been vulnerable to threats such as
global terrorism. Over the last couple of years, globalization has significantly altered the face of
tourism. The mobility of tourists has greatly increased, turning airlines, hotels, and attraction
sites into potential targets for nefarious actors such as Al-Qaeda and Isis. Brondoni (2016) points
out that despite the significant investments pumped into the tourism industries of countries such
as Egypt, Tunisia, and Turkey, these destinations are not popular with travelers and excursionists
because of the perception that they are often the targets of dramatic terrorist act. Apart from
recent terrorist attacks perpetrated by outfits like Isis, France remains one of the safest and most
secure countries in the world, making it incredibly appealing to tourists. The second factor
making France a top tourism destination is its political and economic stability. Various studies
have found that economic and political instability negatively impact the tourism industry of any
country, leading to plummeting tourist numbers and decreased revenues. France not only has one
of the strongest economies in Europe but also boasts of a stable and democratic political
environment, making the country incredibly popular with visitors. In the coming years, France
will continue to be the benchmark for other tourist destinations in the world.
CONCLUSION

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It can be concluded from the above mentioned report that there are different kinds of
functions which impact the tourism and travel industry. It can be seen that history of tourism and
travel industry is very vast where there are different kind of trends within the industry which
impacting in development of industry in an efficient way. It can also see that for driving the
customer behavior as well as identifying the needs and requirement it is important for the
organization to use tools and techniques. Motivation is also important for influencing the
customer of decision-making processes where the theory is like Maslow's hierarchy theory and
various other theories can be used. It can also concluded that there is continuously changing the
patterns and trends within the travel and tourism industry where the organization trading within
this industry has to identify for accepting the global challenges and improving its functioning.

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REFERENCES
Brondoni, S., 2016. Global tourism and terrorism: Safety and security management. Symphonya:
Emerging Issues in Management, 1(2), pp.7-16.
Cohen, S., Prayag, G. and Moital, M., 2013. Consumer behaviour in tourism: Concepts,
influences and opportunities. Current Issues in Tourism, 17(10), pp.872-909.
Gierczak, B., 2011. The history of tourist transport after the modern industrial revolution. Polish
Journal of Sport and Tourism, 18(4), pp.275-281.
Griskevicius, V. and Kenrick, D., 2013. Fundamental motives: How evolutionary needs
influence consumer behavior. Journal of Consumer Psychology, 23(3), pp.372-386.
Kleinman, M., 2019. World’s Oldest Travel Company on Quest for New Backers. Sky News.
Available at: <https://news.sky.com/story/worlds-oldest-travel-company-on-quest-for-
new-backers-11856415> [Accessed 17 August 2020].
Seraphin, H., 2017. Terrorism and tourism in France: The limitations of dark tourism. Worldwide
Hospitality and Tourism Themes, 9(2), pp.187-195.
Smith, O., 2019. The Unstoppable Rise of the Chinese Traveler: Where are They Going and
What does it Mean for Over-Tourism? The Telegraph. Available at:
<https://www.telegraph.co.uk/travel/comment/rise-of-the-chinese-tourist/#:~:text=In
%20less%20than%20two%20decades,bn%20in%20the%20year%202000.> [Accessed 17
August 2020].
Sparks, B., Perkins, H. and Buckley, R., 2013. Online travel reviews as persuasive
communication: The effects of content type, source, and certification logos on consumer
behavior. Tourism Management, 39(1), pp.1-9.
Wee, C., 2017. Emerging trends in tourism: Opportunities, challenges and implications. Journal

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of Tourism & Hospitality, 6(6), pp.1-5.