Analysis of Travel and Tourism Sector: Factors and Strategies

This report offers a comprehensive analysis of the travel and tourism sector, focusing on the functions of legal authorities and international agencies, the influence of local and national economic policies, and the impact of political changes on travel companies. It examines the components affecting tourism demand and how supply has adapted, alongside an evaluation of the environmental, social, and economic effects of tourism. The report also explores strategies to mitigate adverse impacts, particularly for companies like TUI, providing a detailed overview of the industry's key drivers and challenges. The report covers various aspects, including the role of government, economic factors like funding and policies, and political instability's effects on tourism, using examples from China and the UK. Finally, the report delves into the components that affect tourism demand, such as economic and geographic factors.

Travel and Tourism Sector

Table of Contents
Travel and Tourism Sector...........................................................................................................1
2.1 Identifying the function of legal authorities and internation agency in travel and tourism. 3
2.2 Analysing the way local as well as national economic policies haver influence on the
success of travel companies........................................................................................................5
2.3 Effect of political change on travel companies in different nations......................................6
TASK 3............................................................................................................................................7
3.1 Component which affect tourism demand ..........................................................................7
3.2 Analysing the way supply has change to cater the effect of demand....................................8
TASK 4............................................................................................................................................9
4.1 Evaluating the positive as well as negative effect on environmental, social or economic
factors on tourism........................................................................................................................9
4.2 Strategies which can be utilise for reducing the adverse effect on TUI..............................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

TASK 2
2.1 Identifying the function of legal authorities and international agency in travel and tourism.
Legal authority in the nation has significant role to plays in supporting travel and tourism
sector in UK. The main reason that travel and tourism company is supported by government is
that tourism business is contributing a lot towards economic development of the nation. There
are various international agencies like regional tourism commission, air transportation company
and other firms operating business in nation are interested in international tourism. Big agencies
operating at global level taking high initiatives for supporting travel and tourism industry in
fostering growth and expanding business operations. Air transportation agencies and government
bodies assisting tourism companies in increasing sustainability and profitability. Legal
authorities are developing some policies , strategies and regulation in order to help tourism
organisation in reducing the negative effect of changes in external; factors on business
operations. Legal authority also plays essential role in the smooth functioning of travel and
tourism sector. Strategic decisions are taken by legal authority for ensuring the social and
economic growth of companies. Government also plays important role in promoting the
destinations. Legal authority in the country formulate effective policies which makes it easier for
the tourists to visit their countries and enjoy the holiday destinations. Legal authority plans
strategy to attract more number of travellers for visiting particular destination. In order to attract
more number of travellers government in UK have focus on strengthening the economic
condition of nation, improving social as well as condition in the nation.
Local legal authorities- earlier the government in the country was only accountable for the
success and growth travel and tourism sector. Local government also make their important
contribution in development of transportation which is the significant part of tourism activity.
International agencies- There are many international bodies which supports tourism. Some of the
global agencies can be sponsored by the governments. These are generally those institutions
who get funds from the government for helping tourism companies in growth. Role of legal
authorises is to represent the interest of government in terms of allowing the intervention of
tourism sector. In the countries where the high level of industrialisation , legal authority have to
taken the burden of responsibilities. Function of the government is to facilitate discussion with
companies in tour operators and identify the problem faced by company in operating their
business in systematic manner. It is the duty of legal authority to provide appropriate solution to

several issues faced by an organisation in tourism sector and provide them with suitable
resources which are required for smooth functioning of business.
United nation world tourism organisations-It is recognised as specialise legal authority or agency
which supports tourism industry in fostering growth. This special organisation or institution
serves as an international forum for tourism policy issues. United nation world tourism
organisations has recently planned to form partnership with legal authority in nation and also
with non government bodies in order to practical supports as well as guidance to companies
operating in tourism sector.
Sponsored bodies- Role of these authorities is to generate the awarenesses about the importance
of tourism. Function of sponsored bodies is to support tourism industry in bringing positive
change in practice and facilitating innovation.
British Authority- The function of this agency is to create national tourism agencies , improve
the value of inbound tourism. Role of British Authority help companies operating in travel and
tourism sector in managing their business and other internal operation's in systematic manner.
The several other function of legal authority in nation are to generate aware awareness
about the products or services offered by tourism companies, promote destination, develop and
implement competitive as well as sustainable policies or strategies for tour operators in order to
support them in expansion of business (Litvin, Goldsmith and Pan, 2008)
2.2 Analysing the way local as well as national economic policies have influence on the success
of travel companies
Several norms , strategies and policies formulated by the legal authority in the nation has
significant and major influences on the tourism activities. It also has a great as well as direct
effect on the business operations. The economic and social policies developed by the
government in nation plays very important role in success of Tourism sector. There are many
norms and policies are created by the legal authority in nation for influencing the travel and tour
sin business in positive manner. For instance, one of the policy is created by the government to
keep some funds separate in order to utilise for development of destination in order to attract
more number of travellers. These financial resources are provided by government in order to
support the improvement of destinations. The economic growth of companies as well as nation is
totally based on the integration of policies created by government. The rural and area of tourism

are being improved and enhanced by same process. This procedure has provided the facilities of
transportation that has helped company operating in travel industry in expanding their business
operations and increasing their growth rate. It has been analysed that economic polices have
affirmative influence on the growth of travel and tourism sector.
Funding as well as sponsorship: Financial resources are provided by both as well privates
institution. Funds are provided by government for development of tourists places as well as
destinations. Legal authority supports tour and travel companies by develop the strategic
policies which could be used by this organisation for exploring as well as capturing market
opportunities. Government in the nations by making strategic decision encourages tour operator
for making investment in the field of tourism industry.
Economic policies-Such types of policies involve both monetary and non monetary. These
policies are generally related to taxation. Economic policies are formulated by the government
for controlling the fluctuation in exchange rates , changes in pricers etc. These have direct as
well as significant influence on the purchasing and selling power of travel sector. For instance,
legal authority in UK has planned to decrease the exchange range, which has provided travel
companies a chance to gain transactional benefits. Objective of legal authority behind the
formation of economic policies is to support travel companies in improving as well as
maintaining their financial performance. Legal authority also intends to support business entities
in fulfilling business needs. Economic policies created by the government has direct influence on
the budget as well as financial plans of an enterprise operating in tour and travel companies. It
allows accompany to increase its budget for various operation which further help business entity
in improving the productivity as well as performance(Jackson, 2008)
2.3 Effect of political change on travel companies in different nations
Tourism industry is considered to be as very big sector. Political changes in the country
has direct as well as significant influence on the choice of visitors related to destinations.
Political instability in the nation leads to great decline in travelling activities , profitability and
sales of product or services offered by travel companies. In addition to this political factors have
great and important influence on the sales as well as profitability of firm. In present scenario,
tourism has become closely implicated in political action and activism and the reason is that
tourism is now seen and used as a tool for economic and political change. Visitors or travellers
prefer less to visit such country which is facing the political issues as they have threat related to

their safety at destination. There is no doubt that legal authority in the country is accountable for
providing safety as well as security to visitors, but still travellers avoid visiting such places. The
territorial unrest, political imbalance and high level of disarray might have counter influence on
travellers or visitors. There are some political issues which has significant effect on overall
development of travel and tourism sector. Unfavourable changes in political factors can have
direct as well as major effect on the decision , policies , plan or strategies created by companies
operating in travel and tourism industry. Political variables also have impact on the routine
business operation of an organisation. It has great influence on the decision make by
management team related to expanding the business operations and also on the investment
strategy(Heung, Kucukusta and Song, 2011) The implication of political change on travel and
tourism industry on three different nations are :
China-The legal authority in china as well as political parties has played significant role in
supporting tour and travel companies in fostering growth and achieving success. Both
government and political parties in the nation has supported organisations in expanded their
business and promoting their products or services. These people have contributed a lot towards
growth of tourism sector .The political stability in country has provided an enterprise to expands
its market or product segments and attract more number of travellers by providing the quality
services.
Uk- The political growth in the nation has major as well as significant effect on tour and travels
companies. A policy formulated by legal authority related to liberalising Visa process has
allowed tour and travel companies to foster growth .This action taken by the government in
nation has also provided firm an opportunity to increase its sales as well as profitability. The
political factor may have counter effect on tourism sector. The unrest in country and political
instability has major influence on choice of visitors related to selection of the destination. The
unethical practices may create threat for visitors. For example the crises in Ukraine has built
hurdles for the country in achieving growth. This has resulted in force and unrest in the nation.
The consequences' of unrest and political instability have adverse effect on tourist and great
evince are being experience by tour operators (Clarke, I. III and et.al., 2009)

TASK 3
3.1 Component which affect tourism demand
There are many internals as well as external factors have direct as well as significant
impact as well as influence on business operations of tour operators companies. Macro
environmental factors have impact on the profitability as well as sales and profit abilities of
travel organisation, it is essential for management team in an enterprise to recognised these
constituent and make appropriate plans or strategies to deal with these changes. As this activity
will aid business entity in reducing the adverse of these variables on a company. Identifying the
activities will allow enterprise to increase its potential and recognise as well as Capture several
business opportunities (Carver and Byrd,2008)
Economic variables- The several economic factors involves income of an individual, changes in
price of goods or services, poor economic condition in nation has direct as well as major impact
on the demand of goods or services offered by tour operators. Economic constituent also have
influence on buying behaviour of consumer or service user in the market. It also has great effect
on purchasing power of firm. There are two important factors which are considered mainly by
traveller making decision related to visiting at particular place or destination are cost of
travelling , prices of products or services as well as exchange rate.
Geographic factors- Weather , environmental conditions , disasters, distance , area, attractiveness
of places these are the major factors which have influence on the visitor attitude towards
destinations. As in bad weather conditions or occurrence of hazards leads to the restriction in
travelling activities and has big as well as long lasting effects on the financial stability or
performance of travel companies (Heung, Kucukusta and Song,2011)
Political constituents- changes in political factors has direct as well as significant impact on the
growth of an organisation. Amendments in laws as well as policies created by legal authority
have direct impact on the growth of industry. As per the new reforms and regulation created by
legal authority workers in TUI organisation is required to full fill all legal formalities related to
Visas, managing currency. It is essential for management team in an enterprise to keep update
themselves with the latest amendments or changes in legislations. As this strategy or activity will
help firm in eliminating legal obligations.
Attraction of destination :-It is the most important variables as destination assist in attracting
more number of tourist. Manager in TUI organisation is required to consider several variables

such as safety or security of tourist, customer behaviour, availability of resources, transportation
facility etc. As this activity will help travel companies in delivering appropriate, quality and
quick services to customers. Destination is the important constituent that can help an enterprise
in gaining customer loyalty and generating demand for their products or services. It will allow
business to increase their market share and foster growth.
Personal factors- It is needed by travel companies to develop the understanding as well as accept
the fact that every customer different choice, values and beliefs on the basis of which individual
make demand for products. These variables are required to be consider by tour operators when
planning to produce product or services. Individuals are responsible for generating tourism
demand in a specific place that is destination (Christou, Sigala and Gretzel, 2012)
3.2 Analysing the way supply has change to cater the effect of demand
Tourism supply is defined as those activities which includes products or services. There
are several resources are required for supplying the products or services. There are some special
services are demanded by transportation , accommodation and telecommunication. These
resources are required for maintaining the balance between demand and supply. These resources
are also important for formulating the suitable strategies , designing the products and as well as
developing the destination in order to attracting more number of customers. It is required by the
TUI company to create effective supply chain management system, as this activity will assist
firm in delivering quick , quality and timely services to client. This strategy will also support
business entity in gaining the loyalty of client (Jackson, 2008 ) It will also provide a firm an
opportunity to develop or maintain strong relationship with client and reattaining customer for
long term. There are several changes has been bought by management team in TUI organisations
these are:
Transportation: The TUI organisation has planned to form partnership with transportation
company. As this strategy will help business entity in providing the transportation facilities to
tourist. Management team in an enterprise has also planned to promote cost efficient airline
services with the intention to provide traveller comfort. Manager in an organisation as also
planned to provide tourist guide to visitors in order to enable customer familiar with tourist
places.
Accommodation : TUI company has formed partnership with the restaurants and hotel with the
purpose of providing accommodation facilities to visitors or travellers. Luxury, healthy and

delicious meal or food is also included in the package. This strategy adopted by management has
allowed firm to attract more number of customers and provide them with suitable services with
the help of hotel staff.
Recreational activity; These activities are also included in the overall package to make the
experience of traveller more fun. Recreational activities are executed by an enterprise with the
support of local people , political parties and other legal authorities in the nations. It is required
by TUI company to develop as well as strong relationship with the politicians as well as other
legal authority in the country. As this strategy will help business entity in getting proper as well
as continuous supply of resources as well as raw material which are required for delivering
service to client (Christou, Sigala and Gretzel, 2012)
TASK 4
4.1 Evaluating the positive as well as negative effect on environmental, social or economic
factors on tourism
Management team in TUI company has formulated suitable as well as effective strategies
for increasing sales as well as profitability. Presently, manager in an organisation has adopted the
strategies for minimising the adverse effect of tourism activities on in society, environment or
economic growth of country.
Economic factors:In present scenario, tourism industry is contributing a lot towards economic
develop of UK.. Tourism industry has helped government in generating the source of income.
Foreign income earned by the nation are spent on development of society ass well as destination.
Tourism industry has also attracted the investor to invest and assist nation in becoming financial
stable as well as developed (Mehmetoglu, 2014)
social or cultural factors- Companies operating in tourism sector has generated the employment
opportunities for the people in nation. Tourism industry plays significant role in encouraging
people to improve their living standard. This sector has also played important functions in
promoting the destination and culture.
Environmental factors-There is direct as well as strong relationship between tourism and
environmental factor. Tourism activity have both positive and negative effect on environment.
The adverse effect of the tourism activities includes increase in pollution , populations, high
chances of wastage of resources etc. (Chang and Chen, 2008)

4.2 Strategies which can be utilise for reducing the adverse effect on TUI
It is analysed that producing products of TUI group effect on UK and china tourist
destination both positively and negatively. Continues changes in exchange rate, amendment in
taxation policies have important effect on the financial performance of TUI. Major changes in
social factors such as traveller' interests towards destination, technological changes has great as
well as significant on profitability of the destinations as well as tour operators. Management
team in TUI company has adopted several unique strategies for reducing the negative effect of
environment on business activities.
Identifying the demand or requirement of visitors-
Action oriented strategies:For reducing the adverse effect of changes in social and economic
factors on tourists destinations in UK and china, management team in TUI is needed to develop
strategies which are action oriented. In which, cost required to be incur, time consumed for
project plan and workers and guides' performances should be included. Therefore, creating
strategies and decision making regarding satisfying tourists are determined. It will be beneficial
for increasing attraction of visitors and improving its effectiveness of services.
Adverting destinations:Marketing team in an TUI organisation has adopted the strategy to use
social media as the advertising tools for promoting destination, products or services. Firm has
also planned to adopt online marketing techniques for providing the services to visitors. This
strategy has provided business a chance to increase its sales as well as profitability. it will be
benefited for encouraging visitors for destination and maintaining good relation with them
(Carver and Byrd, 2008)
CONCLUSION
It has been concluded from the report that tourism industry has wide scope of growth. As
changes in macro as well as micro environmental factor has significant impact on the growth of
tourism industry. It has also been concluded from the report that tourism sector is supported by
the legal authority in the nation. Some tourism activity has direct as well as important influence
on the society as well as environment. There are several constituents which plays significant role
is the influencing the demand for tourism product or services. Among many factor\rs , services
provided by tour operator , customer experience at particular destination and most importantly
attractive of the place plays great role in encouraging the tourist to visit same place again in the

future. Project has successfully highlighted the changes made by TUI company in order to
improve services and provide additional facilities to their customers.
REFERENCES
Books and Journal:
Mehmetoglu, M., 2014. Tourist or traveller? A typological approach. Tourism Review. 59 (3). pp
.33 – 39.
Jackson, L., 2008. Residents' perceptions of the impacts of special event tourism. Journal of Pla
ce Management and Development. 1 (3). pp.240 – 255.
Carver, P. and Byrd, J., 2008. Marketing a European experience to the less traveled. Journal of
American Academy of Business. 14 (1). pp. 131‐6.