Pearson BTEC HND: Contemporary Travel and Tourism Industry Report

This report provides a comprehensive analysis of the contemporary travel and tourism industry, addressing key milestones in its development and the factors that have shaped it. It examines the various elements of the industry, including travel agencies, tour operators, lodging, and transport services, and their interrelation with the overall tourism experience. The report delves into the factors influencing tourist behavior, such as socio-economic, historical, cultural, environmental, and religious considerations. It also explores models of motivation, like Maslow's hierarchy of needs, and how they influence consumer decision-making in the context of travel. Furthermore, the report identifies and discusses key trends in travel and tourism, including bleisure travel, digital nomadism, automation, mobile bookings, solo travel, and sustainable tourism. Finally, it investigates the factors affecting the range of global destinations and their popularity, providing a holistic view of the industry's current state and future direction.

THE CONTEMPORARY
TRAVEL AND TOURISM
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Key milestones and shaping of the development of travel and tourism industry ...................3
2. Different elements of travel and tourism industry and interrelation with the tourism
experience....................................................................................................................................4
3. Factors affecting tourism behaviour........................................................................................5
4. Model of motivation and how it influences consumer decision-making.................................7
5. Key trends in travel and tourism .............................................................................................8
6. Factors affecting range of global destinations.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Travel and tourism industry is concerned with the people travelling for business or for
their purposes of pleasure. It can also be stated as travelling to another environment for a certain
period which can be related with the individual purpose of spending leisure time or can be with
the purpose of travelling for business. Travelodge is the leading accommodation service
provider which is being based out of UK which provides high quality of services in all its
segments concerned with satisfying its customers. Present report will address to development of
tourism and travel industry, explain the factors which helps in driving the behaviour of tourists
and key current patterns and trends in tourism and travel industry which will account to
international travel and tourism and will lastly investigate various factors affecting the current
level of popularity of different destination all across the world which helps in building brand
image.
MAIN BODY
1. Key milestones and shaping of the development of travel and tourism industry
Tourism is defined as the leisure time which is spend with the people for the purpose of
recreation, relaxation and using the services which are commercial in the travel list (De Lucia,
Pazienza, Balena, and et.al., 2020).
Travel has evolved from the experience of people who have roamed about in different
cities, states or countries (Diakonidze, 2019). Historically, the travel and tourism purpose was for
the royal and upper class people. Cox and Kings was the first known travel agency founded in
1758. In 1841 Thomas cook opened the first travel agency. The rail travelling became popular in
that era and was considered as the most leisure and easy travel and transport facility to the
travellers. The air flights became the first commercial travel way for the modern tourism
industry. There came a period in the tourism development that augmented the competition
among other travel industries which came by the time in that period until now. Mass tourism,
new destinations and different modes of travelling were introduced to expand the industry and
provide people the comfort factor according to their needs and wants. But this came with no
smoothness as there were terrorist attacks, world wars etc. which took place at different period of
times and were uncertain. This wasn't enough in the development of travel and tourism industry

rather it faced massive technological shift which diverted the vision from offline bookings and
services to internet or online bookings and services which were rendered by different agencies in
account for the travel purpose.
Tourism has been a major growth industry with different trends that shape the travel and
tourism industry as follows -
Bleisure Travel – Bleisure travel is growing has been growing since when the travel and tourism
industry has set up (Hall, 2019). This trend sets up the stage for people travelling for work or
business. Digital Nomad is the recent trend which has been adopted by the freelancers and
online workers in which they travel along with working.
Automation – Digitization has increased the purpose and efficiency in the travel and tourism
prospect which has made advertising cheaper for the travel companies. This latest trend has
made customers enjoy the convenience it offers.
Mobile Bookings – This trend has provided more efficiency and effectiveness in the growth of
the travel and tourism industry as mobile services help in the booking process of travelling
through aeroplane, buses, etc. and helps in increasing the business of online services which are
provided by the agencies.
Solo Travel – Solo travelling is the most self – rewarding experience that one experiences with
freedom and confidence. This trend has led to many individuals who search their existence for
their soul purpose and some travel alone because of the business or the work they are involved
in.
Sustainable Tourism – Carbon offsetting is becoming a considerable factor since each traveller
is more concerned about the weather and climatic conditions in the travel and tourism view.
This helps in the growth factor by analysing the environmental and other practical conditions in
the travel facet.
2. Different elements of travel and tourism industry and interrelation with the tourism experience
Different elements of travel and tourist industry are as follows -
Travel Agent and their Services – Travel agency, tour operator and guide services are the
intermediaries that constitute the services which are rendered in the travel process (Lee and Han,
2020). Travel agent is the intermediary between the travellers and the supply of the services i.e.
airlines, transport companies, hotels etc. The travel agent provides information to the people on

various destinations and outlines the cost structure according to the travellers plan. These factors
help analyse the tourist what necessary practical information is to be carry forwarded throughout
the travel.
Tours and Tour Operator's Services – Tour operators plan, organize and sell tours. All the
necessary arrangements for the travellers are arranged like transport, accommodation,
sightseeing and other services are bind in the packages at different prices. The tour facilities are
planned for leisure purpose of the tourist so that they decide the destination, pricing factor and
other services on their own and book accordingly. All the factors such as location, travel by,
accommodation are analysed by the tourists to ponder upon.
Lodging and Catering Services – Accommodation is main factor of the whole travel process as
the tourist not only travels but stays at a place which has been booked to live in. Accommodation
can be of different types like cottages, houseboat or five – star hotel. Tourists are also more
concerned about the catering services which includes the food and eatable items. Either eating in
a restaurant of the hotel, or a fast - food joint or somewhere else, a tourist measures all such
dimensions of where and what to eat by analysing the cost structure.
Transport Services – The transport services consist of the ways the tourist will reach the
destination booked. It consists of the transport services which are by road, rail, air and water. The
transport depends on the travel budget, how far or close the destination is, time etc. Car, coach
and taxi's on rent are made available to the tourists for sight – seeing and local movement.
Information and Guide Services – Guide provides all the information and knowledge wherever
the tourist wander about. The information provided to the tourist helps to understand the history
and culture of the place explained by the guide in their language from where the tourist resides.
Tourist Attractions – This factor consist of all the tourist destinations that have been famous
along the years of their existence. The richness and variety of destinations offer the tourist more
options to travel and analyse different aspects of the travel purpose on the destination chosen.
Tourists are attracted to the unique yet beautiful places along with other facilities provided in
sufficient budget.
3. Factors affecting tourism behaviour
There are five major factors which affect the growth of the travel and tourism industry -

Socio – economic Factors – The socio-economic factors include accessibility which affects the
tourism behaviour as the tourist destinations demand is that the place to be visited must be easily
accessible by different modes of transport which include roads, railways, air and water (Liang,
Schuckert, Law and et.al., 2017). All these transport facilities are considered when the tourist
travel to different locations. The travelodge agency takes in account of these factors as most
important and prior. Accommodation is the second aspect which reflects the catering and
accommodation facilities. It depends on the tourists lifestyles, their pay pattern, services
expected by the hotels etc. Amenities is the third wheel of this factor in which the hotel provide
all the facilities to attract customers and enables activities like skiing, roping, paragliding, surfing
etc. Other services include banking and finance, internet connectivity, hospital services etc.
Historical and Cultural Factors – Many tourist are attracted to historical place which hold
significance as they are keen in acknowledging the information the place holds. Their interest
areas include monuments, forts, castles, palaces etc. which provides them with increase in the
areas where they find all such information related to culture or history fascinating. Famous
historical places attract more people in the travel and tourism industry as this also keeps alive the
history of those old places and facilitate more travellers by visiting.
Environmental Factors – Two main environmental factors in the growth of tourism factor is
good climate which is the most attractive reason for the tourist to visit a place. People who come
from colder regions are attracted to the destinations which provide ample of sunlight and warmer
weather. This opposite happens to the people who come from warmer regions visit to the colder
destinations. Environmental factor also includes beautiful scenery which affects the tourism
behaviour as tourist prefer to visit unique and beautiful places which has enchanting scenario and
sceneries such as beaches, sunset points, waterfalls etc.
Religious Factors – Many people visit pilgrims and temples to seek blessings and inner peace.
This encourages them to have faith, belief and that emotional connect with the place they
worship (Sobbo, 2020). These holy places have also created great boom in the tourism industry
as more people are devoted towards their God whom they believe in.
Other Factors – There are other factors which contribute with the growth of the travelodge
industry. Research activities and adventures of deep seas and caves, geological studies,
paranormal studies etc. which attract tourist and increases the attractiveness of those places more

than they fall under the tourist category. This has also made the places for tourist more in terms
of being mischievous and people usually search for such destinations or places.
4. Model of motivation and how it influences consumer decision-making
Motivation is the process that guides, initiates and helps in maintaining goal oriented
behaviours, it is what causes consumers to act which involves the biological, social, economical
and cognitive forces that helps in activating the behaviour of consumer towards experiencing the
services of the company. There are various models of motivation which influences consumer
decision-making process such as -
Maslow hierarchy of needs – it states that there are different hierarchies of needs which needs
to be full- filled in order to derive motivation to individual which are stated as below
Physiological needs- it this level of hierarchy consumers must be satisfied with there various
physiological and basic needs which involves getting good quality of air, water, food, beds at the
destination where people or consumers can't be satisfied for higher order needs if these needs are
not being satisfied.
Safety needs- this level of needs is concerned with security and safety of consumers where they
are being provided with the accommodation which accounts to having services which are not
exposed to hazardous situation and accidents and which are being safe in nature as a result
accounts to satisfy the safety needs of its consumers and helps in influencing decision-making
for its target customers.
Belongingness and social needs- this needs of the customers accounts with giving and receiving
affection and friendship. It accounts with building fruitful relationship with various parties to
business operation. It accounts with greeting well to the consumers which also accounts to solve
various problems and queries of its customers which helps in fulfilment of various social and
belongingness needs which helps in building positive brand image (Sofronov, 2018).
Esteem needs- this is needs which accounts consumers desire for achievement, adequacy,
competence, strength and freedom and it also accounts with needs of the customers which
accounts with its reputation, status symbol, prestige, recognition and by which it accounts to
serves for the dignity of consumers.
Self actualization needs- these needs are being concerned with individual desire to getting fulfil
there potential by getting the maximum use of their capabilities and skills.

Equity theory-
This theory deals with comparison of inputs with that of its output where inputs are
being defined as those things that a individual or consumers does in order to receive the output
which can also be stated as the contribution being made by the customers in order to receive
some sort of benefits which helps in deriving there motivation which serves as the means of
influencing there decision to actually account to experience the services of company or not. This
could be understood as inputs which are being in terms of money which is being invested by the
consumers in regards with the outputs that are being in relation with the quality of services being
received such as food, accommodation, hygiene, ambience and various others (Tan, 2017).
5. Key trends in travel and tourism
There are various current and emerging patterns and trends in international tourism and
travel industry which has shaped the way how the companies in the industry has grown and how
they cater with the needs of its target customers. It includes trends such as
Accounting of artificial intelligence where machine has taken over the humans and
which also accounts to voice search and voice controls which helps in getting valuable insights
of the customers against there needs and wants and helps in satisfying the same in the manner
which helps in deriving customer happiness and helps the business with high rate of productivity
which helps in fostering growth for the company
It accounts with adopting with the online means of payment which helps in bringing
transparency to business by reducing various human efforts in concern with various cash
management which has helped business to redefine the business process and helps in achieving
the goals of the business more precisely.
The major trend that is prevailing in this industry is virtual reality which is disrupting
the industry and technology which helps in getting competitive edge over the competition
whereby through these customers can experience virtually interiors of hotel, restaurants interiors
and various other by just sitting form their own homes which helps in making decision-making
process in customer journey (Pencarelli,2020).
The trends in the industry accounts with wearable devices which are being used in wide
variety of ways which helps and allows company to offers a more streamlined and personalized
services which helps the company in a manner to avoid wastage of time and queuing.

It accounts with major trend that is internet of things(IOT) which is growing
prominently in this industry which is essential particularly in rooms where there is being now the
option to control al sorts of things through an app. These helps in enabling passengers to change
the temperature and connect to their devices very easily
The trends in hotel and tourism industry accounts with the voice activated devices that
has made into many hotel rooms which is also taking off many off the sectors where more and
more customers are accounting to make google searches via voices and using voice to text apps
for there work (Sharma, Nicolau, 2020).
It also accounts with trend of using location based data that allows the company and
various destination marketers with the ability to gain better and fruitful insights on how many are
using the space which helps in events to complement sales of ticket for number of people in
attendance or which can simply be in large areas of public where the data on certain activities of
its visitors are being useful.
6. Factors affecting range of global destinations
There are being various factors which affects the popularity of range of global destination
which are being mentioned as below
Recommendation from friends, families and relatives where it should not come up
with the surprise that power of reviews is being highly important for most of the tourist. While
review sites helps in getting popularity, the trust the worthiest reviews often lies with that of
getting the same with families and friends. It means offering each customer a service that makes
them to write the review that is being favourable and which helps in sharing trips around the
location and allows sharing there experience (Mahrous, Hassan, 2017).
Comprehensive information which is being available online, it outlines providing with
the sufficient information to the target audience which helps in assessment of various things and
accounts to facilitate effective decision-making and helps in getting to know the comparison with
that of its rivalries and how it is being better than that of the same in all areas. It accounts with
the company having its proper online presence all across various channels, by which its target
customers get the relevant and required information about the company and helps in facilitating
decision-making process of the company.

Availability of various special offers which serves as the means of attracting the huge
amount of customer base which helps in boosting up sales and high rate of profitability which
serves as the means of getting positive word of mouth and as a result helps the company to
account with the fostering growth and getting an edge over its competitors and winning in
marketplace and helps in generating positive and favourable word of mouth (Hong, 2018).
Closeness of the destination where interestingly many tourist don't like to travel very
long distances and the various geography of location plays a very important role. Tourist like to
explore and have destination that accounts with easy accessibility and which does not account for
huge days to travel whereby company needs to focus on customers that belong to a particular
region where the marketing efforts of the company should be focused around audiences or target
customers that are geographically close and very much easy to reach. Understanding various
travel routes is highly important and the company should account with various transport projects
that helps the same in boosting the sector for local tourism.
High end infrastructure which serves as the means of attracting large number of
audiences which also accounts with providing ambience which serves as the means of catering
needs and wants of target customers and by which they derive high level of satisfaction which
helps in building positive brand image that accounts with growth of the company.
CONCLUSION
It is concluded from the above report that the travel and tourism industry has been
expanding its area to different destinations by developing and shaping the key milestones of the
tourism industry. Different elements of the tourism industry also contributed to the growth of the
industry which were explained under different services which were rendered by the agency. And
not only this, their were various factors which affected the tourism behaviour of the industry.
Different models were put up to show that how tourism industry influence the consumer's
decision - making process along with identifying recent trends and patterns used in the
international travel and tourism industry. And the factors affecting the popularity of a range of
global destinations also helps in analysing the travel and tourism industry more effectively and
efficiently. This analysis and diversified information helps to know the travel and tourism sector
more closely with other industries.

REFERENCES
Books and journals
De Lucia, C., Pazienza, P., Balena, P. and et.al., 2020. Exploring local knowledge and socio‐
economic factors for touristic attractiveness and sustainability. International Journal of
Tourism Research.22(1). pp.81-99.
Diakonidze, M., 2019. Development of tourism services and employment perspectives: a case
study.
Hall, C.M., 2019. Tourism and rewilding: an introduction–definition, issues and review.
Lee, T.J. and Han, J.S., 2020. The contribution of the travel elements of health tourists to the
domestic tourism industry. Tourism Analysis.25(2-3).pp.2-3.
Liang, S., Schuckert, M., Law, R. and Masiero, L., 2017. The relevance of mobile tourism and
information technology: an analysis of recent trends and future research directions.
Journal of Travel & Tourism Marketing.34(6).pp.732-748.
Sobbo, K., 2020. Factors affecting consumer behaviour in tourism industry (Doctoral
dissertation, Mzumbe University).
Hong, J., 2018. Rise of the sharing economy and the future of travel and tourism industry.
Journal of Hotel & Business Management.7(2). pp.5-11.
Mahrous, A.A. and Hassan, S.S., 2017. Achieving superior customer experience: An
investigation of multichannel choices in the travel and tourism industry of an emerging
market. Journal of Travel Research.56(8). pp.1049-1064.
Pencarelli, T., 2020. The digital revolution in the travel and tourism industry. Information
Technology & Tourism.22(3). pp.455-476.
Sharma, A. and Nicolau, J.L., 2020. An open market valuation of the effects of COVID-19 on
the travel and tourism industry. Annals of tourism research.
Sofronov, B., 2018. The Development of the Travel and Tourism Industry in the World. Annals
of Spiru Haret University. Economic Series.18(4). pp.123-137.
Tan, S.H.,and et.al., 2017. The impact of the dimensions of environmental performance on firm
performance in travel and tourism industry. Journal of environmental management.203.
pp.603-611.