Unit 6: Contemporary Issues - Niche Market Analysis in UK Tourism

This report analyzes the niche market within the UK travel and tourism sector, focusing on the benefits of niche market expansion, particularly for the TUI group. It highlights the UK's position as a major tourism destination and examines the impact of events and inbound tourism on sector growth. The analysis includes statistical data on tourist arrivals and expenditures, forecasting growth rates and emphasizing the effectiveness of niche marketing strategies. The report defines niche marketing and explores its role in targeting specific consumer segments. The report also touches on the value of inbound tourism and its projected growth, as well as the UK's potential to achieve an international tourism balance of payments surplus.

2.2 Analysis of single trend utilizing suitable techniques.
From the analysis, it has been recognised that expansion of
business in niche market has large benefits in tourism. In the
economy of UK, the niche market is considered as suitable in
influencing the target market segment ( Mariani and et.al.,
2014). It will provide major benefits to TUI group in
attracting the potential customers of local communities to
contribute towards development through tourism.
Apart from this, UK is recognised as the major destination which has achieved major growth in tourism sector as it has many prominent places and destinations where tourist get attracted fro
m different countries. Various sports events are also organised with UK which has been contributing towards rise in number of travellers in country. Rise in sports events has caused high
growth in travel and tourism sector and increased the revenue of nation.
It has been analysed that about 37.6 million travellers have been visited in UK and made an expenditure of around £22.5 billion which represents that there is rise volume or profitability by 4%
as compared to previous years.
Through this chart, it has clearly identified that tourist arrivals in Europe are expected to be witness the modest growth rates of 2.5 percent respectively by the year 2050. Thus niche tourism
market provided major growth to the travel and tourism sector of UK. From the another chart, it has also been clearly determined that niche market in this sector has also achieved a major
growth
Niche marketing:
Niche marketing is considered as the using all the efforts of
marketing towards a well defined segment of population. It is major
and effective marketing technique which is used to target a specific
market which is considered as unique and it is usually created through
identification of various services through identification of
requirements of identification of consumers requirements. It does not
mean small target market, but it also involves various products and
services which are needed to be communicated to consumers.
Inbound tourism will be a rapidly growing tourism
sector with an expenditure of international visitors
estimated to achieve a growth of around 6% a year in
comparison with domestic spending by UK residents at
just over 3%. The value of inbound tourism is forecast
to grow from over 21 billion in 2013 to 57 billion in
2025, with the UK considering an international tourism
balance of payments surplus in 2023, almost forty
years since the UK last achieved a surplus.