A Comprehensive Report on the Travel and Tourism Sector in TUI Group

This report provides a detailed analysis of the travel and tourism sector, specifically focusing on the TUI Group company. It begins with an introduction that defines the sector and outlines its historical development, key structures, and the influence of government and international agencies. The report then delves into the factors that affect tourism demand, including demographics, economics, technology, and workforce changes, as well as economic, environmental, and social factors. It assesses how the supply chain within TUI Group has adapted to meet these demands. The report also explores the positive and negative impacts of these factors on the tourism industry, suggesting strategies to mitigate negative effects and enhance positive outcomes. The report covers the history of the tourism industry, the structure of the TUI group, the factors affecting tourism demand, and the relationship between supply and demand within the company. It also discusses the impact of economic, environmental, and social factors on tourism and evaluates strategies to overcome negative impacts and increase positive ones. The report concludes by summarizing the key findings and providing a comprehensive overview of the tourism sector within the context of the TUI Group.

The Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 History of travel and tourism sector .....................................................................................1
1.2 Structure of travel and tourism sector in TUI group company............................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................5
3.1 Factors affecting tourism demand in TUI group company..................................................5
3.2 Evaluation how supply has changed to meet the effects of demand in TUI group company
.....................................................................................................................................................8
TASK 4..........................................................................................................................................10
4.1 Impact of economic, environment and social factors on tourism ......................................10
4.2 Evaluate the strategies which can overcome the negative impact and increase the positive
impact .......................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

Illustration Index
Illustration 1: sources of tourism.....................................................................................................4

INTRODUCTION
In the order to define the travel and tourism sector in TUI group company, there are
different approaches to explain the factors of travels and tourism industry. History and sources
can be explained through various historical development process. Furthermore, there is
explanation of key historical developments and structures in TT sectors. Analysis of government
sponsored bodies and functions of international agencies also described. Implications of political
changes on travel and tourism sectors are described in this presentation. There are different
factors such as economic, environmental and social, which affects the tourism demand. TUI
group company changed its supply chain to meet the needs of customers. These factors affect the
tourism industry in positive and negative manner as well. Negative effects can be overcome
through planning a proper strategy and positive affects can be increase through making business
strategy. Sources of tourism industry can be divided into many types such as travel and planning,
local travel, food and shopping, accommodation, sites and transportation. History of tourism
industry can be classified in to three aspects which is described below. Travel and tourism sector
can be classified into three factors such as private sector, public sector and voluntary sector.
Factors that affecting tourism demand including demographics, emerging economics,
technological factors, changing work pattern, work force and macro economic factors.
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TASK 1
1.1 History of travel and tourism sector
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The travel and tourism
industry is very old industry
and in now days, it is one of
the fastest growing industry
over the world. Many people
are interested in to buying a
holiday package of tourist
sectors by which they can get
information and knowledge
about the tourist destination.
People are buying these
holiday packages because the
facilities given by these sectors
has been improved. They help
customers to plan for a tour in
an affordable price. History of
tourist industry is very
interesting and unique. Before
1945, it did not provide
facilities which are provided in
present time and it did not
share any contribution in
economic growth. There are
lot of factors involved in this
organisation which provide
helps to develop their
operations such as
technological advancement,
social conditions, better
infrastructure, better
History of travel and
tourism sector can be divided
into three different parts such
as :
 Before 1945
 1945-1979
 1980 to present time
before 1945, travel and
tourism sectors are playing
different roles in operation. It
was inconsistent. In the mid
time of 1945-1979, tourism
sectors increases the free time
availability, improved their
packages by giving them more
suitable offers.
1.2 Structure of travel and
tourism sector in TUI
group company
The structure of the tourism
industry has been changed
from past till now. New
concepts are included in the
structure of its
organisation(Sharpley, and
Telfer, 2014.). New concepts
such as changes in chain of
distribution, roles of
government organisations,
Tour industries are
developed because of the
income of people increased.
As increased income, people
increased their spending
desires. Middle class family
and rich people are keen to
travel tourism destination.
They are willing to gather
information about all the
places over the world. This is
the fastest growing industry
and competition level is
highest among these
businesses. There is cut throat
competition in the market of
tourism sectors. They
improved the quality of
products and services offers to
the customers. In the middle
ages, there is lackness of
transportation and safety
declined. Less knowledge of
common languages and
acceptence of currency are also
not facilitated. After some
times, there is increasing in
systems, speeds and modes of
travels. Tour packages are
developed and invention of
mobility is done in the
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accommodation services and
so on. Rather, then these
factors, government bodies
and international bodies also
play a key role in developing
the tourism sector. There are
various local and international
policies which affect and
influence the success of
tourism sector. These policies
may be in favour to develop
and promoting tourism or may
be these have negative impact
on tourism sector.
Apart from this structure, there
is also existed one another
structure in TUI group
company travel industry such
as : distributors, regulatory
bodies, other industry players,
public sector organisation and
transport. Distributors include
travel agents, travel suppliers,
selling direct to customers and
increasing use of web.
Regulatory bodies include
trade associations and statutory
bodies. Public sector
organisations includes
department for transport,
transport and accommodation,
travel agents and tour
operators. These all factors are
very important in the tourism
operation due to play a key
role. There are different
sectors and divisions in the
structure of tourism industry.
 TRAVEL
PLANNING : The
first sector of tourism
industry is travel
planning. Tour
operators plays an
important role in travel
planning. These are
the sources who
operate the tourist
industry. These tour
operations are helping
in to promote the
products and services
of the industry among
customers to increase
the growth.
 TOURISM SITES :
In now days, travel
industries are adding
travel sites in their
package such as
natural forms,
mobility Era 1800-1944. In
modern Era 1945 to present,
there are undetectable changes
done in the tour and travel
industry. Development of mass
tourism and online tour
packages are also involved in
this development process o
tourism industry. Growth of
time, safety, money and
interest level is also increased.
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department for culture, for
media, foreign office.
Transport includes road, sea,
rail and air. Other industry
players who represents views
to the government.
historical buildings
and different parks to
attract the travellers.
Wildlife and forests
are the natural
components in the
destination.
 TRANSPORT :
Transportations are
playing an important
role in travel and
tourism industry.
Success of travel
packages are
depending on the
transport systems of
the destination place.
 ACCOMMODATIO
N : Accommodation is
an attractive feature in
any holiday package.
It includes food and
beverages
facilities(Sharpley and
Telfer, 2014.). Apart
from these factors,
facilities, quality of a
product and discount
offers are also
included in
accommodation.
Time period of history :
Time period development
3000 BC Travel tourism was in business form
1500 BC Travel tourism was leisure
6 BC In cultural mode
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5 BC Religion form of travel industry
Middle ages They added holiday plans in existance of
packages
16AD pilgrimages
18th century History of tourism industry as a grand tour
1840 Individual travels was invented in this time of
period
1990's Increases in multinational airlines links
20th century Online tour operations developed
Structure of tourism industry can be understand by following diagram :
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Illustration 1: sources of tourism
sources of tourism, 2016 [online]. Available through :
<www.locusassignments.com/solution/unit-1-historical-development-tt-
sector-assignment>

TASK 2
Covered in PPT
TASK 3
3.1 Factors affecting tourism demand in TUI group company
There are different types of aspects which affects the business environment of tourism
demand. These factors are :
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 Demographics : There are five important factors which affects the tourism demand such
as population growth, migration, travel parties, aging and household competition.
Migration is affecting the structure of society and business as well. Population is also
growing fast. These all changes affects the demand of tourism organisation. They also
affect the types, origins, nature and destination choice of travellers.
 Emerging economics : these situations are affects the buying power of consumers. Cost
of the product and travel have been affect the demand of tourism industry(Sharpley and
Telfer, 2014.).
 Technological factors : these factors are influencing the business and demand of the
products as well. Technological advancement also increase the opportunities for the
business. Increasing level of internet and mobility, provide the approaching to the
customers through internet communicational methods. Increasing the use of mobile apps
also increase the demand of the products because by these apps, customers can gain the
knowledge about the products and company as well. These technological factors also
provide the help to business to ensure about the services given to the customers.
 Work force : changes made within the working pattern and work force also influence the
demand of the productivity. Changes such as sales activities, online approaches and so
on.
 Economic factors : these factors plays a large part in influencing the demand. These
factors are connected with services, goods or money. Economic factors such as interest
rates, recession period, taxes, inflation rates, exchanging rates and demand and
supplySharpley, R. and Telfer, D.J. eds., 2014.. Level of disposable income of a person
and retirements have been the most concern components in economic factors. These
factors affect the tourist behaviour in buying the holiday packages.
Apart from these factors, there are several other factors which are listed as below :
 external factors : economic scenario, threats, government policy and demographic
changes.
 internal factors : geographic, new tourists, consumer power and consumer attitude.
 Price factors : such as transport cost, accommodation cost, food, entertainment cost and
shopping cost.
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 non price factors : weather conditions such as heavy rains and floods also impact on
demand of tourism industry.
 Religious factors
 socio economic factors
 historical and cultural factors : it includes culture, flavour principles, religious beliefs and
national culture.
 destination factors : it includes attractions, access to marketing, political stability,
investment and services. Credibility, CRS technology, development level, travel
formalities, safety and security are also included.
 Motivational factors : it includes symbolic, contrast, pleasure, obligatory, extension and
tourist motivation.
 Experience : it includes experience and visitation, globalisation and mere exposure
effects.
Tourism demand means a total number of persons who travel to destination place and use
facilities provided by tourism industry at place away from their residence. There are different
types of demand such as actual demand, potential demand, postponed demand and suppressed
demand. Actual demand means people who are travelling at a point of time. Potential demand
means people who could travel if they motivated. Postponed demand means people who desire to
travel but can not travel due to temporary reasons. Suppressed demand means people are not
interested in travel. Individual factors include paid holiday, stage of family life cycle, family
influences and income or employment(Sharpley and Telfer, 2014.). Features of tourism demand :
 planned demand
 highly price elastic
 seasonality
 changing demand pattern
 no tangible return
 price inelastic also exist
 include a higher value of expenditure
 there is no any law of diminishing return
demand can be measures through different measurement level such as product level,
geographical level and time level. Product level include total product and tourism items.
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