Environmental Sustainability and Thomas Cook Group Plc Analysis

This report provides an overview of Thomas Cook Group Plc, a major British travel company, and its efforts to improve sustainability within the tourism sector. The report begins with an introduction highlighting the importance of tourism and the environmental pressures faced by the industry, specifically in the UK. It then provides a detailed overview of Thomas Cook Group Plc, its business operations, and its strategies for enhancing sustainability, emphasizing the company's focus on economic, environmental, and social pillars. The report includes a PEST analysis, examining the political, economic, social, and technological factors affecting the company's business, particularly in the context of UK tourism. Political factors such as government policies, Brexit, and terrorism are discussed, along with economic factors like exchange rates and inflation. The social factors, including lifestyle and cultural aspects, are also considered. The report concludes by summarizing the key findings and implications for Thomas Cook Group Plc and the broader tourism environment.

Hospitality, Tourism and
Events Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
An Overview of Thomas Cook Group Plc..................................................................................1
An Overview of the way of Thomas Cook Group Plc improves its sustainability.....................1
PEST Analysis- .........................................................................................................................2
CONCLUSION...........................................................................................................................6
REFERENCE ..................................................................................................................................7

INTRODUCTION
In today's market scenario, tourism is considered as fastest developing sector in a
country. In this era, enterprises are operating their business with common aim i.e. to enhance
tourism in country. Development of such companies have a large impact on overall growth of
nation. Therefore, government help them in improving their sustainability. It will help in
attracting large number of tourists towards destination of a country and assist them to visit these
place once in their life. But to enhance tourism, one of the biggest problem faced by a country is
changing pattern of weather and climatic condition (Dredge, Airey and Gross, 2014). Current
report is based on factors which impact on tourism of UK. In this regard, Thomas Cook is taken
which deals its business in travel and tour sector. This assignment entails environmental pressure
facing by all tourism and way of companies used to improve their sustainability. For this
assistance, PEST analysis will be done.
An Overview of Thomas Cook Group Plc
As stated in London Stock Exchange, it is a British travel company which established its
business in 1841 by Thomas Cook & Son, Thomas Cook AG and My Travel Group Plc. It is
headquartered in Peterborough, UK. This firm offers tour packages of five countries viz. UK,
Germany, Northern, Central and West Europe (Yeoman and et. al., 2012). It became second
largest travel company in UK by having about 97 aircraft with 2,926 stores where more than
32,000 employees are working. In addition to this, as per statistical view; in a year more than
19.1 million customers are using services of Thomas Cook. This company has been considered
as main sponsor of Peterborough United Football Clubs and Manchester City.
An Overview of the way of Thomas Cook Group Plc improves its sustainability
Tourism and hospitality businesses are referred as front line of UK's economy. This
nation provides personal and leisure services to tourists belongs to domestic and international
countries (Getz and Page, 2016). Companies working under this sector are influenced by various
changes due to increase in demands and expectation of customers. Tourism, hospitality and event
industries includes hotels, restaurants, gaming, tour operations, holiday resorts and more. In this
manner, from the last 171 years, Thomas Cook Company has faced various challenges in
operating its business. Employers of this firm concern more on energising and transforming
business in order to ensure that expectations of customers are fulfilled in every year. To get
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sustainability growth for long term, management of this group moved at pace in building
foundation by developing more strategies. It will help in creating growth of business for future in
profitable manner. In this regard, the first step taken by employers is to build organisation in
effective way through addressing costs, leveraging its brands to build on core products (Mair and
Whitford, 2013). Under this process, biggest opportunity in front of Thomas Cook to gain
sustainability is to decrease costs as well as improve profitability by delivering more services to
loyal group of customers. During leisure travel, this firm provides high-tech 'Voyage Android' to
every traveller for making connections with them. This will provide benefits to tourists to share
their need and complete the same whenever and wherever they want. This kind of innovation aid
Thomas Cook in attracting more customers towards its services.
To improve sustainability, this firm has believed that three main pillars are essential to be
encompassed that are economic, environmental and social. With adverse change in
environmental and economical imperatives, overall strategies of business are required to be
developed also. For designing business structure a company needs to encompasses with social
topics, aid Thomas Cook in creating value as well as strengthening trust of brands (Hjalager and
Johansen, 2013). For Example: Company is focussing on Travelife Sustainability System as it
will assist firm in providing better services and facilities to clients and further it will provide
maximum benefits for a longer period of time. It will help this enterprise in building trust,
reducing costs and wastage which further assist in increasing efficiency of business as well. In
context with environmental factors, it has been observed that almost 98% of carbon and harmful
gases are emitted from aircraft fleet. Therefore, this firm focuses more on it and make continuous
investment in fuel efficiencies. With this assistance, airlines of Thomas Cook are considered as
most efficient in world. As per report presented in year 2012, it has seen that this travel group
gain the top position in Carbon Disclosure Project for FTSE.
PEST Analysis-
PEST Analysis stands for Political, Economical, Social and Technological Analysis
which provides a framework of macro-environmental factors. These elements create a large
impact on business of organisation in both positive and negative manner. In context with
tourism, environmental issues play an important role (Medlik, 2012). Driven by continuous
changes in demography and trends of consumer in international market, nature of hospitality and
tourism becomes dynamical. Therefore, it becomes necessary for enterprises which work under
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tourism sector to use different strategies while operating their business. Employers of such firm
are needed to avoid 'a one size fits all' kind of policy as it will affect productivity and
profitability of business in higher manner. For improving the capability of tourism, events
workforce and hospitality, management of Thomas Cook needs to take under consideration of
building effective strategies by predicating changes in macro-environmental factors first. These
elements also demand this firm to analyse impact of the same on business while planning
tourism. In this manner, an analysis has been done in following manner:-
Political Stability: Tourism is defined as a sector which is made up by participation of
numerous companies. It has been evaluated that visitor's experience, tourism products and more
are provided by a combination of various services through tour operators. Therefore, these
activities are affected much by political factors of such countries where they plan to visit (Leung
and et. al., 2013). It includes Hotels which want more tourism in order to generate profitability in
business and Events use to make cooperation with the same for promoting locations. In this
regard, political environment of UK is considered as quite stable which puts a positive impact on
potential tourist. Infrastructure in terms of transportation facility is much effective and efficient
too. London Heathrow Airport is taken as best example in this field where the most passengers
of foreign countries are landed. Therefore, regulatory bodies of UK creates a plan for expanding
the airport so that landing capacity can be increased. The another instance in impressive
infrastructure is Red Double-Decker Bus of London. In addition to this, for encouraging and
assisting visitors of other territorial regions to visit destination of UK, this nation has made a
border policy i.e. free entry. Other than this, government also proposes a new shorter plan which
is three months group visa at minimum cost of £44. All these offers show positive factor for
enhancing tourism.
Government of UK recently propose a plan related to protect environment because of
rapid growing global warming (Smith, 2012). It includes increasing fuel rate, VAT on air ticket
and more, these things will result to pay more for transportation system. The factor which causes
a negative impact on enhancement of tourism in this nation is terrorism. Due to increase in
terrorist attacks like Manchester Arena Bombing, London Bridge and Westminster attacks in
2017 where thousands of people are died puts a large threat on tourism. Therefore, all these
issues reduce tourism in UK which impact on business of travel and tour companies also. In this
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regard, it is essential for employers of Thomas Cook to recreate travel plans which can attract
tourists so that maximum return on investment can be gained.
Despite of negative impact of terrorists, Brexit has created a positive impact on tourism
in UK. It helps Thomas Cook to grow in more economic manner as per current report of
statistics. As per last year, rate of visitors in this nation is hiked by 8% i.e. near about 38.9
million which rise economy of many organisations including Thomas Cook which work under
tour and travel sectors. After Brexit, there is a huge success in tourism and it reduces fares as
well as open up new routes after removing restrictions on agreements of air service. After
leaving EU (European Union), Government of UK, has made a new agreement related to air
services like EasyJet of British airlines can freely operate its business without any restriction. In
context with fiscal and funding policies, UK not required much financial contribution to EU
which leads to acceleration of debt plans (Fullagar and Wilson, 2012). Therefore, policy makers
are needed to make under consideration whether they have to recreate their strategies in order to
raise funds. As Brexit has impacted on decision of Thomas Cook related to investment and trade
with UK.
Economical Factors: This factor includes those attributes which create an impact on
purchasing power of tourists. It includes inflation and deflation period of a country, employment
or unemployment rate, exchange rate of currency, GDP and more. As enhancement in this sector
used to create more jobs, industries working in such areas are giving much support to small
business. This kind of contribution helps government in increasing economy and protecting
heritages of nation. Demand in tourism is mostly affected by following factors:
 Changes in oil prices that leads to reduce airline fuel surcharges as well as allowed
airways to reduce their fares for long routes.
 Low rates of international airfares and travel packages and offering the same on high
discounts.
Trends in consumer demographics and behaviour have much changed which impact on
tourism environment also. It demands industries including Thomas Cook to involve more
destinations in their travel packages (Mak and et. al., 2012). This would help to keep remaining
in competition. Tourism sector are also affected by currency rate of a nation. If a country has
strong economy as well as high international air capacity then it will give opportunity to citizens
to travel overseas. Thus, in this manner it has seen that economical condition of UK after Brexit
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becomes much stronger. In addition to this, it has high infrastructure which includes good
transportation, beautiful destinations, leisure services of hotels and accommodation etc. reflects
that people having high status only can afford travel packages of Thomas Cook.
Global distribution system for travel and tour packages are developing more in recent
years. It provides numerous benefits to travellers as they can get information of various beautiful
destinations through online services (Arnegger and Herz, 2016). As per current statistical data,
exchange rate of pound is not much strong which adhere travellers of foreign countries to spend
less money for travelling its destinations. Currently, one Euro is equal to 0.89 British Pounds. In
addition to this, financial period is also hiked in UK which increases price rates of goods and
services. Thus, this part has shown that to visit destinations of UK, visitors are required to spend
more. Along with this, in inflation period, number of tourists from foreign countries are used to
avoid to plan their holidays as it demand much money. According to statistical review, in
inflation period, 12% tourism has been reduced.
Exchange rate and fluctuations in currencies etc. play crucial role in spending power of
tourists. As per comparison of pound sterling with euro, it has evaluated that citizens of UK can
spend more on tourism while travelling European Destinations.
Social Factors: Lifestyle of people, their way of living, cultural aspects and more are
mainly changes because of increase in population, trends, growth and more. Before visiting a
place, customers are used to concern more on social trends of a country. It includes how much
places are safe, manner of people living at there and more. In addition to this, social differences,
different beliefs, crime and gambling etc. are some relevant factors of a nation which create a
great impact on tourism sustainability and profitability of tour and travel organisation in negative
manner. In this regard, UK has also consisted same kind of issues which are required to take
under consideration by Thomas Cook and other travel companies for maintaining sustainability
of their business for longer period (Getz and Robinson, 2014). Other than this, due to increase in
terrorism, many terrorists attacks have been faced by UK which reduces tourism in this nation.
Technological Factors: This factor also assist tour and travel companies of UK to
develop their strategies and offer more leisure services to travellers. It includes demand of
innovation, media technology, websites, cost of products and more. Thus, in this regard Thomas
Cook has to increase their services and offer tour packages on less price so that high competition
can be gained. If Thomas Cook develop its price strategies as well as adopt new technologies in
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business, may help this firm to remain in competition at marketplace. In this context, if they offer
services through social media and other internet services, then this will aid tourists to get
awareness about their offers and make plan accordingly. High technologies in tourism sector, aid
tourists to book their ticket through on-line services which saves their money and time both.
Along with this, they can make comparison of different companies who offer holiday packages
which includes transportation facility, hotel services and other. It will help them in acquiring
services on low cost.
In context with hospitality and event system, innovation in technology helps companies
under these sectors to promote their business and locations easily (Case, 2013). They can offer
different services to tourists as per their purchasing costs on various discounts as well. This will
help tourists to book online room services in different hotels easily without paying much to
travel agents. Along with this, development in technologies also affect business of Airways. As
through introduction of this, new aircraft are becoming more efficient in terms of fuel. They emit
less carbon and other harmful gases which leads global warming. It results to low price of ticket
and reduce pollution as well which will enhance tourism in nation.
CONCLUSION
From this mentioned report it has concluded that, in today's economic world travel sector
is considered as the fastest growing industry. In this regard, various companies are operating
their business with common purpose i.e. to enhance tourism in their nation. They perform
different activities in order to influence people of domestic and international countries to come
and visit places. They give highly contribution to government of a country in improving overall
economy and reducing unemployment rate by providing more opportunities to citizens. With
increasing number of tourists aid a country in enhancing economical rate. It will help in
improving infrastructure which includes condition of road, transportation and more. With
increasing tourism in nation, GDP rate are also enhancing which improves living condition of
people also.
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REFERENCE
Books and Journals
Yeoman, I., and et. al., 2012. Festival and events management. Routledge.
Dredge, D., Airey, D. and Gross, M. J. eds., 2014. The Routledge handbook of tourism and
hospitality education. Routledge.
Getz, D. and Page, S., 2016. Event studies: Theory, research and policy for planned events.
Routledge.
Mair, J. and Whitford, M., 2013. An exploration of events research: event topics, themes and
emerging trends. International Journal of Event and Festival Management. 4(1). pp.6-
30.
Hjalager, A. M. and Johansen, P. H., 2013. Food tourism in protected areas–sustainability for
producers, the environment and tourism?. Journal of Sustainable Tourism. 21(3).
pp.417-433.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Leung, D., and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of travel & tourism marketing, 30(1-2). pp.3-22.
Smith, A., 2012. Events and urban regeneration: The strategic use of events to revitalise cities.
Routledge.
Fullagar, S. and Wilson, E., 2012. Critical pedagogies: A reflexive approach to knowledge
creation in tourism and hospitality studies. Journal of Hospitality and Tourism
Management. 19(1). pp.1-6.
Mak, A. H., and et. al., 2012. Factors influencing tourist food consumption. International
Journal of Hospitality Management. 31(3). pp.928-936.
Arnegger, J. and Herz, M., 2016. Economic and destination image impacts of mega-events in
emerging tourist destinations. Journal of Destination Marketing & Management. 5(2).
pp.76-85.
Getz, D. and Robinson, R. N., 2014. Foodies and food events. Scandinavian Journal of
Hospitality and Tourism. 14(3). pp.315-330.
Case, R., 2013. Events and the Environment. Routledge.
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