Assessing the Impact of Brexit on Tourism: A TUI Case Study Report

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This report analyzes the impact of Brexit on the tourism industry, specifically focusing on the case of TUI. The report begins with an introduction outlining the context of Brexit and its potential effects on the travel sector, particularly for companies like TUI. The research methodology is detailed, including the use of questionnaires, interviews, and both primary and secondary data. The questionnaire results from 10 employees are presented and interpreted, revealing their perceptions of Brexit's potential impact on the tourism industry and their employment. The analysis includes employee responses to questions about their understanding of Brexit, its impact on the tourism sector, and potential strategies for TUI to mitigate negative effects. Interview data from two respondents provides further insights into the effects on the tourism industry. Finally, the report concludes with recommendations, such as providing offers and rewards to customers, aimed at minimizing the negative impacts of Brexit and strategies for TUI to adapt to the changing environment.
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Academic Skills -
Assessment 2
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Table of Contents
INTRODUCTION...........................................................................................................................3
RESEARCH METHODOLOGY:...................................................................................................3
Questionnaire:..................................................................................................................................4
Analysis and Interpretation:.............................................................................................................5
Recommendation:..........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13
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INTRODUCTION
Brexit is a widely popular concept that has affected all the countries of Europe. Presently
there is a analysis of the way Brexit is going to affect the employees in organisations and there
are many industries that have been affected by this changing scenario. For this the present report
is based on making a detailed analysis of the way different tactics are affecting the employees of
organisation (Perles-Ribes, Ramón-Rodríguez and Ortuño Padilla, 2019) There is discussion of
the Thomson Travel group that is a business formed by the Thomson corporations of Canada and
was listed on London stock exchange 1998. it was then acquired by Preussag AG as a transport
and industrial conglomerate (Sima, 2017). There is analysis the way different activities that is
part of Brexit referendum is posing a impact on the functioning of organisations and how
employees that are part of tour and travel industry are getting affected by this changing situation.
Aim: “To analyse the impact of Brexit on tourism industry and strategies to deal with its
negative impact”. A case study on TUI.
RESEARCH METHODOLOGY:
Research methodology is described as the practical procedure taken when conducting
research.
Primary data: It is the type of data which is gathered through interaction with the source. This
type of data can be collected through several methods such as questionnaire, interviews,
observations and experiments (Bishop and Clegg, 2018). In the context of organisation
questionnaire is used for collecting primary data from 10 sources. This method is used by the
organisation as it provides reliable, precise, and accurate content.
Secondary data: This type of data is assembled from existing information and does not involve
direct interaction with source. This type of data is collected through several platforms such as
books, journals, newspapers, websites and blogs (Andrews, 2020). This type of data is not as
trustworthy in comparison to primary data and can be affected by prejudice of main source.
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Qualitative data: This type of data is non numerical data and is based on properties and
characteristic rather than measurable statistics. This type of data can be acquired through
different sources like group discussion, audio and video recordings and so on. The data collected
from such methods is difficult and time consuming to interpret and form favourable conclusions.
Quantitative data: This type of data includes numerical and measurable information presented in
a defined format. This type of data can be obtained from diverse sources such as tests market
reports government reports metrics and many others (Tsekeris, 2020). This type of data gives
concise information to the researches which can be utilised in few specific ways.
Sampling: It is a situation in which the whole population cannot be select for the purpose of
conducting interview (Amoamo, 2018). So, there is selection of small sample that is representing
the similar characteristics as those of whole population. In present situation the whole workforce
of TUI cannot be selected for analysing their response so there has been use of 10 employees
who will be acting as respondents (Amoamo, , 2019).
Questionnaire:
1) Do you understand the basic concept of Brexit?
Yes 7
No 2
Partially 1
2) Do you feel that BREXIT is a scenario that will be affecting the
tourism industry of UK?
a) Yes, Definitely 6
b) No 3
c) Yes, may be 1
3) Do you feel that you as a employee working in TUI will posses any
affect because of this BREXIT referendum?
a) Yes 8
b) No 2
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c) May be 0
4) What can be some of the ways in which you can be affected because
of this situation of BREXIT?
a) Lay of situation 4
b) Decrease in compensation 3
c) Higher work pressure 1
d) Any other situation 2
5) What can be best possible way that can be used by Management of
TUI in order to reduce the negative impact of changing situation of
external environment because of BREXIT referendum?
a) New promotional campaigns such as digital marketing strategies 1
b) Offering of higher discounts 2
c) Formation of deals such as “Brexit aviation deal”. 5
d) Any other communication strategy 2
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Analysis and Interpretation:
1) Do you understand the basic concept of Brexit? Frequency
Yes 7
No 2
Partially 1
Interpretation:
It can be Summarized that when it was questioned to the respondent about the understand of
basic concept of Brexit there was a majority response who agreed that yes they posses a
interview of the basic concept and remaining 2 had a view that they do not posses nay type of
understand of this concept . Apart from this 1 respondent believed that partially there is interpret
of this concept.
2) Do you feel that BREXIT is a scenario that will be affecting the
tourism industry of UK?
Frequency
a) Yes, Definitely 6
7
2
1
Yes
No
Partially
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b) No 3
c) Yes, may be 1
Interpretation:
It is summarized from the above mentioned graph that according to the views of respondent
when it was questioned about the BREXIT scenario there was a response related to majority of
them agreeing with the view that yes they will be affected by the BREXIT situation. 3 had a
view that no there will be not much impact on the tourism industry of UK and remaining 1
respondent had a view that there is uncertainty related to this view as it may and it may not affect
the tourism industry of UK.
3) Do you feel that you as a employee working in TUI will posses
any affect because of this BREXIT referendum?
Frequency
a) Yes 8
b) No 2
c) May be 0
6
3
1
a) Yes, Definitely
b) No
c) Yes, may be
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Interpretation:
It can be interpreted from the above mentioned graph that while employees were questioned
regrading the affect from BREXIT referendum 8 out of 10 had a view that it will posses a impact
certainly that can be in any form. And in the 10 respondent 2 out of 10 believed that there will be
no impact because of this BREXIT referendum.
4) What can be some of the ways in which you can be affected
because of this situation of BREXIT?
Frequency
a) Lay of situation 4
b) Decrease in compensation 3
c) Higher work pressure 1
d) Any other situation 2
8
2
a) Yes
b) No
c) May be
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Interpretation:
It can be interpreted that there are some of the ways that can lead to a negative impact on the
employees because of BREXIT. For this the solutions that was favoured by majority of the staff
was that there can be a lay off situation were employees might loose job. 3 other felt that there
might be decrease in overall compensation, 1 felt that there can be higher working pressure and
rest 2 out of 10 had a view that there can be any other impact which might affect the employees
apart from the ones mentioned in the options.
5) What can be best possible way that can be used by Management
of TUI in order to reduce the negative impact of changing situation
of external environment because of BREXIT referendum?
Frequency
a) New promotional campaigns such as digital marketing strategies 1
b) Offering of higher discounts 2
c) Formation of deals such as “Brexit aviation deal”. 5
d) Any other communication strategy 2
4
3
1
2
a) Lay of situation
b) Decrease in
compensation
c) Higher work pressure
d) Any other situation
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1
2
5
2
a) New promotional
campaigns such as digital
marketing strategies
b) Offering of higher
discounts
c) Formation of deals such
as “Brexit aviation deal”.
d) Any other communication
strategy
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Interpretation:
From the above discussed options it can be said that there are different aspects that can be
used in order to deal with the negative impact of BREXIT referendum. For this the maximum
respondent was in favour if formation of deals such as Brexit aviation deals. 2 respondent were
in favour of forming a effective communication strategy, 2 others felt that there has to be focus
on offering of higher discounts and remaining 1 had a view that there has to be development of
new promotional campaigns.
Interview questions:
There is selection of 2 respondents from whom there is a direct interview which is being
conducted in order to make a detainee evaluation of their view points. For this there will be
certain recommendation and conclusions that will be drawn based on this provided analysis.1) What is your view point regarding Brexit as impact on tourism industry:
Respondent 1: The first respondent replied by saying that yes, brexit is going to affect the
complete movement of tourists from European union to UK as there will be have to following up
of increased regulations which is going to affect the overall tourism industry. There will be
increase in amount of regulations and it may affect tourists movement.
Respondent 2: Another respondent had a view that that there will be enhancement of sterling
value that will affect the tourist spending and higher number if tourist will be visiting European
union. So there will be a indirect positive impact that is going to lead to higher revenue for the
tourism industry.2) Do you believe that tourist movement will be affected by the changing external
environment because of Brexit situation?
Respondent 1: According to the view of respondent the tourist movement is going to be affected
because of the changing situationist as there will be a negative mind set that can be developed for
tourist because of the Brexit scenario and they are willing to pots pone their present plans of
travelling in near future time period.
Respondent 2: In this situation there can be a positive impact on the tourist movement as there
can be a situation in which tourist will be attract because there are low cost fares or many
attractive discounts that are being offered by transportation companies. Further people have been
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in their homes because of lock down situations due to COVID scenario that is facing creation a
situation where they have been developing interests in travelling so there can be a opposite
positive impact incoming near future because of the promotional campaigns that are offered by
TUI group.3) What is your opinion regarding your organisation getting affected because of the
BREXIT situation whether there will be enhancement or decrease in the revenue
scenario?
Respondent 1: In context of TUI it can be said that there it will be affected by the changing
situation of external environment as both COVID and BREXT are the two situations that is
going to impact the way organisations are functioning. Further there will be need of strong
recovery because of drop off in the demand of tourism situation. There will be a decrease in
revenue that has been forecasted in the coming quarter of year ending 2020.
Respondent 2: It can be summarized that another respondent had a view point that there are
possibilities that there can be enhancement of revenue for TUI group. Recently TUI has also
been part of the deal with different aviation regulators to be part of the 12 month transition deal
in order to mitigate the impact of fallout of no deal brexit. The industry sources have been saying
that there is negotiation that is taking place with a “Letter of comfort” with the civil aviation
authority and its is going to lead to achieve to have flights as normal and there will be no
prevailing of EU ownership roles.
Recommendation:
Providing offers and rewards: This strategy includes providing customers
rewards and offers to motivate them to revisit the hotels post Brexit. This strategy
should be marketed and implemented towards targeted groups for with specific
modification in accordance with customer's needs and wants. The rewards
schemes should be executed in a way which encourages customers to become
loyal customers of the brands and this type of rewards strategy include the
respective hotel or their partners. This strategy should be equally lucrative to
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different cultures and palatable to international markets in a way which ensures
maximum profitability for the company.
Invest in technology: Investing in new technologies to provide customers latest
services is key element of achieving success in the hotel industry . Investments in
augmented technology provides the hotel updated and attention garbing ways to
communicate with possible customers. As the trend of buying augmented
technology is increasing everywhere, augmented technology friendly area will
area will attract customers. The investments in AT will allow TUI to promote
their hotels through three dimensional tours and will help the management
interact with customers in a more elegant fashion.
Forming partnerships with airlines: TUI will receive benefits by partnering
with various agencies. Strategic alliance with airline services will help the
company formulate offers for their international clients. This data received from
the airline services will help the company better understand international
travelling trends. The offers provided by this partnership will help the company
attract customers of the airline to their hotel rather than their rivals. Airline
packages which provide the consumers low price tickets will entice the consumers
to avail such offers. This will help the company achieve profitability despite of
setbacks from Brexit.
Digital presence: Digital presence in this era of ever growing online activity is
not only limited to website formation but involves formation and execution of
strategic advertising policies which not only grow the organisations digital
presence but also send this information towards possible customers. The online
activities of an enterprise should be easily accessible and understood by
customers from various cultural backgrounds. This can be achieved by promoting
the company through various travel influencers and travel enthusiasts who have
significant popularity online. The credibility of these influencers should be
checked beforehand. The company needs to construct a friendly and engaging
social media persona and participate in various tends and activities that are
popular among social media users. The company should build their digital brand
with proper planing and should avoid any negative publicity. The company should
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be investing in various activities which encourage the user to promote the hotel in
various social media portals. These tactics will help TUI become more digital
friendly and will attract new consumers.
Enable direct booking: The company should invest in creating portals which
enable direct and easy ways to directly book a room so that their customers can
reach them easily and efficiently. The booking engines of the company should be
directly connected to various social media handles of the company so the
consumers can book their hotels while surfing the net casually. This will help
increase the sales of the hotels as the consumer will be able to book rooms and
access various packages and rewards easily.
Expansion in other markets: the company should focus on expanding their
market presence to other international destinations. This move will help the
company grow and recover from any loss bought by the implementation of Brexit.
This expansion should be done after completing proper research about those
markets and should be aligned with cultural preferences of customers of those
markets. Expansion will give the organisation a new set of outlet from where they
can attract and retain new consumers. This will give the company new resources
and allow the company to exert profit from these resources. The expansion should
be completed at a location which has a stable economical and political situation
and welcomes new businesses.
Provide adequate choices: Providing too many options should be avoided by the
company as it results in creating confusion in the mind of the consumers. The
options of offers and packages that are available to the each individual consumer
should be specifically targeted at them in small amounts, so they can
appropriately and swiftly decide on the best offer of their choice. Giving the
consumer too many options also creates an impression of unprofessionally in the
mind of the consumer.
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CONCLUSION
From the above mentioned different aspects it can be recommend for TUI to deal with the
changing impact of external environment because of Brexit situation. The major technique that
can be used in this situation is that different promotional campaigns and marketing methods can
be used in order to maximise sales by attracting of people through such offers. There can be
more efforts by forming some deals such as brexit aviation transition deals that have been
formed by many organisations so that they are able to deal with future risks and strike a deal that
can lead to deal with the changing macro environment.
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REFERENCES
Books and Journals
Amoamo, M., 2018. More thoughts on core-periphery and tourism: Brexit and the UK Overseas
Territories. Tourism Recreation Research, 43(3), pp.289-304.
Amoamo, M., 2019. Brexit–threat or opportunity? Resilience and tourism in Britain’s Island
Territories. Tourism Geographies, pp.1-26.
Andrews, H. ed., 2020. Tourism and Brexit: Travel, Borders and Identity. Channel View
Publications.
Bishop, M.L. and Clegg, P., 2018. Brexit: Challenges and Opportunities for Small Countries and
Territories. The round table, 107(3), pp.329-339.
Perles-Ribes, J.F., Ramón-Rodríguez, A.B. and Ortuño Padilla, A., 2019. Brexit announcement:
Immediate impact on British tourism in Spain. Cornell Hospitality Quarterly, 60(2), pp.97-
103.
Sima, C., 2017. Brexit impacts on British tourism. Strategii Manageriale, 5(34), pp.297-303.
Tsekeris, T., 2020. The European value chain network: key regions and Brexit
implications. European Planning Studies, pp.1-19.
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