Travel and Tourism Sector: Analysis of Impacts and Strategies

This report provides a comprehensive analysis of the travel and tourism sector, examining its historical development, structure, and the impact of political changes. It explores factors influencing tourism demand, such as demographic and economic aspects, and how supply adjustments meet these demands. The report also delves into the economic, environmental, and social impacts of tourism, both positive and negative, and suggests strategies to mitigate negative effects while maximizing positive outcomes. Specific examples, such as the Royal Mews, Taj Mahal, and the Royal Opera House, are used to illustrate key points. The report considers the role of TUI group in the sector, emphasizing the importance of customer-centric planning and adapting services to meet evolving demands. Strategies like eco-tourism and heritage site promotion are highlighted as ways to minimize negative impacts and foster sustainable tourism practices.

Travel and Tourist Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 and 1.2 Historical developments in travel and tourism sector and Structure...................1
TASK 2............................................................................................................................................4
2.1 and 2.2 .............................................................................................................................4
2.3 Implication of political change on the travel and tourism sector in different countries...4
TASK 3............................................................................................................................................4
3.1 Factors affecting tourism demand....................................................................................4
3.2 How supply changed to meet the effects of demand........................................................5
TASK 4............................................................................................................................................6
4.1 The main positive and negative economic, environmental and social impact of tourism6
4.2 Strategies that can be used to minimize the negative impacts while maximizing the
positive impacts......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Travel and tourism sector is most signifiant and fast growing industry that contributes
effectively in the economic development. It has been noticed that there are number of services
that are related with travel and tourism sector such as accommodation, hospitality, airline, etc.
UK is considered as one of most common destination for travellers that provides better
opportunity to UK travel and tourism sector (Anderson, 2011). Present report focuses on
development of sector by considering both historical and structural values. It will provide
learning about influence of government agencies on travel and tourism sector.
TASK 1
1.1 and 1.2 Historical developments in travel and tourism sector and Structure
UK TOURISM DEVELOPMENT
Industrial Revolution
In year 1950 the lifestyle of people was dependent upon agriculture. After this, tourism
sector has become essential part of life. At initial level, hotels, travel operators, etc were having
operations separately. In 1941 Thomas Cook has introduced first tour package. In year 1945 the
UK tourism sector has changed and leads to increase in paid holidays and growth in air
transport (Assaker, Vinzi and O'Connor, 2011).
Global development
At the initial level the ability to travel was limited to the royal and upper class. But the time
has changed to great context. Low price packages has been introduced by tour operators which
has also enhanced the level of opportunities. In year 1952 with the first commercial air
flights from London, England, to Johannesburg, South Africa, and Colombo, Sri Lanka tour
operators has become established in the market. Number of events and sports activities are
being arranged that has also boosted the opportunities for global tourism sector. Olympics,
1

Oscar and common wealth games are the best example of events that support to tourism sector.
Along with this, UNWTO has also established that improves overall working in diverse
manner. It has effectively promoted the working of tourism sector.
Rise of airline sector
At the initial period of 1980 the airline sector has started providing support to travel sector
by offering medical services, transportation, etc. Number of changes has been taken into in
industry for sustainable growth.
Development of big companies
In 1990 the number of big companies has entered in market and started offering diverse
services like accommodation, transportation, etc. Use of airline services has also increased in
appropriate manner.
Royal Mews
2

Royal Mews is a mews of British Royal family that provides learning about life style of UK
royal family and make understand cultural values. It was established in year 1820 at
Buckingham palace.
Taj Mahal
Taj Mahal is an ivory-white marble mausoleum on the south bank of the Yamuna river in the
Indian city of Agra. It was commissioned in 1632 by the Mughal emperor, Shah Jahan, to house
the tomb of his favourite wife, Mumtaz Mahal.
Royal Opera House
It is an opera house and major performing arts venue in Covent Garden, central London. In
location was constructed in year 1732 and first ballet was presented in year 1734. It has also
attracted more visitors and provided great support to UK tourism sector.
3

ArcelorMittal Orbit.
The ArcelorMittal Orbit is a 114.5-metre-tall sculpture and observation tower in the Queen
Elizabeth Olympic Park in Stratford, London. It is considered as one of infrastructural
presentation that has attracted architects and other people to have visit to London.
STRUCTURE
Working and structure is dependent upon factors like tourist attraction, transport, tour
operators, travel agents and tourism development. It is necessary for sector to have effective
development of new attractions so that more and more customers can get attracted towards
services (Brotherton, 2012). It is one of key reason that London tower and London eye are
4

being introduced to strength the sector and its development.
Transportation is a medium that allows people to travel from one place to another place. It is
one of key reason that travelling options are being developed such as rail and airways. British
airways and virgin airline are best options (Conrady and Buck, 2011). Tour operator provide
number of services like accommodation, travel, etc. Collective working between all these
services has improved sustainable opportunities for the sector.
TASK 2
2.1 and 2.2
Covered in PPT.
2.3 Implication of political change on the travel and tourism sector in different countries
Political aspect is considered as one of significant external factor that plays key role in
success of travel and tourism sector. Any kind of changes in political aspect impact the
effectiveness of travel and tourism sector. It has been noticed that political changes has great
impact on the customer perception. For example, UK travellers are more attracted towards
European destinations. It means if UK government does not have appropriate relation with
European nations then it will impact the perception in negative manner (Crysta, 2011). It will cut
down the growth of travel and tourism sector in diverse manner. UK taxation policies is also
linked with political changes that will impact the overall development. For instance, UK
government has decided to increase tax on hospitality services. In this conditions the pricing of
hospitality services will also get advanced that may impact the overall outcome in diverse
manner (Damonte, 2013).
On the other side, in Germany the constitutional aspects are being considered effectively.
Any kind of changes in constitutional values will impact the functions of travel and tourism
sector. Legislative and other decisions are taken into account by government and other major
agencies (Fesenmaier and Tang-Taye, 2011). Legislations are being framed in order to provide
better protection to travellers that means political aspects impact sector in diverse manner.
TASK 3
3.1 Factors affecting tourism demand
TUI group is one of leading tour operation firm that focuses on designing of travel
product and services in order to meet key goals and objectives. In order to meet the demand the
5

manager of TUI must make sure that planning of travel package must be according to customer
interest. Demographic factors also need to be consider in appropriate manner for sustainable
opportunities in the market (Kim and Lehto, 2012). In this, characteristic like age, sex, education
level, income level etc must be considered so that segmentation of customers can be taken into
account. For example, company is offering tour plan for old age people but the customers are
demanding adventure tour package because the majority of age group among members is
between 17-25. It indicates that demographic factors must be considered effectively because it
may impact the demand of tourism services.
Inflation and economic aspect may also impact the demand of tourism services so
management need to consider it in appropriate manner (Korstanje and George, 2012). If
economic aspects are not appropriate and TUI is offering services at premium price then
customers will not prefer the services. It will decrease the demand of tourism services because
pricing is not appropriate as per need and income level. Technology is also key factor that
impacts the demand ratio in diverse manner (Lignau, 2013). By having appropriate use of
technology the booking effectiveness can be improved which is beneficial for advancement in
demand of service.
3.2 How supply changed to meet the effects of demand
In order to meet the demand the changes in supply also required so that goals and
objectives can be accomplished in desired way. For effective management of supply and demand,
it is significant for TUI to make sure about accommodation facilities. It will allow to manage
services and provide assistance to both domestic and international travellers. There are number
of organisations who provide accommodation services to customers in order to meet their
satisfaction (Lynch and et. al., 2011). In addition to this, company can also bring changes in its
services as per customer expectations so that services can be offered in appropriate manner.
Along with this, changes in services will also assist in demand and supply management so that
goals and objectives can be accomplished. By having improved focus on cultural and heritage
aspects the business firm can easily manage both supply and demand in order to lead business to
impressive level of success (McDonald and Hopkin, 2011).
Along with this, supply for tour operator service is also essential factor that allows to
have better demand in the market. It is significant for TUI to have development of services and
functional activities according to customer needs so that better support can be provided. New
6

offices of tour operations also need to be introduced so that supply can be improved in order to
meet the standards of demand (Michel, 2013). It will improve the work effectiveness and attract
travellers to meet goals and objectives in appropriate manner.
TASK 4
4.1 The main positive and negative economic, environmental and social impact of tourism
According to in-depth analysis, there are diverse impact on travel and tourism sector due
to changes in economic, environmental and social factors. Inflation, seasonality and income level
are key aspects that are linked with economic values. If income level of travellers is low then the
preference of service price will be low that may force management of TUI to bring changes in
pricing of its services (Sayres, 2011). If pricing and economic values are properly managed then
overall revenue will also be advanced in order to meet objectives. In addition to this, seasonality
is factor that may impact the business development in negative manner. For example, in winter
the people does not prefer to go ice park, etc. It impact the sale of winter park, water park, etc
because it is not according to customer preference in specific season (Michel, 2013).
Social factor also influences the tourism sector development because it is linked with the
income level. If customer income level is low then influence on tourism sector will be negative.
It is because low income level promotes low purchase power among customers (McDonald and
Hopkin, 2011). Positive impact on the business can be that understanding about cultural and
heritage views can be attained effectively. On the basis of such aspect the services can be
developed so that goals and objectives can be accomplished in appropriate manner.
4.2 Strategies that can be used to minimize the negative impacts while maximizing the positive
impacts
It has been noticed that there are number of strategies that can be developed by business
firm in order to maximize the positive impact. Eco-tourism is factor that helps in overcome the
issue regarding environment. In this, better awareness can be created among customers in regard
to environment so that better protection can be provided to members. With an assistance of this,
natural resources can be conserved in appropriate manner. In addition to this, new strategies need
to be developed as per customer needs so that better prevention can be provided to cultural and
heritage sites (Lynch and et. al., 2011). With an assistance of this, the promotion of heritage sites
can be taken into account such as British Museum, Science Museum, Buckingham palace etc. It
7

is significant for business entity in order to have better visibility of heritage and cultural sites so
that goals and objectives can be accomplished. By having sustainable development more and
more travellers can get attracted towards heritage sites (Lignau, 2013). Support of local persons
and tourism is also required in order to make sure that negative impact is being reduced. If local
citizens and travellers provide support to policies application then overall outcome can be
attained in positive manner. It will also improve the overall experience and make sure that social
issues are being targeted effectively for sustainable development (Korstanje and George, 2012).
CONCLUSION
As per above study, it can be concluded that travel and tourism sector is one of most
attractive sector. There are different government, government-sponsored bodies as well as
different international agencies existing in the UK marketplace. It has been noticed that
collective working of all organisations may boost the effectiveness of services. It also attracts the
tourism services and lead businesses to impressive level of success. European Union is
considered as one of essential authority that plays key role in travel and tourism sector. It allows
travel and tourism businesses to gain better competitive advantage so that growth opportunities
can be advanced.
8

REFERENCES
Books and Journals
Anderson, W., 2011. Enclave tourism and its socio-economic impact in emerging destinations.
Anatolia: An International Journal of Tourism and Hospitality Research. 22(3). pp. 33 –
45.
Assaker, G., Vinzi, E.V. and O'Connor, P., 2011. Modeling a causality network for tourism
development: an empirical analysis. Journal of Modeling in Management. 6(3). pp.258 –
278.
Brotherton, B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approach.
Routledge.
Conrady, R, and Buck, M., 2011. Trends and Issues in Global Tourism 2011. Springer.
Crysta, P., 2011. Advances in Culture, Tourism and Hospitality Research. Tourism-Marketing
Performance Metrics and Usefulness Auditing of Destination. 4(2). Pp.54-70.
Damonte, L., 2013. Segmenting tourists by direct tourism expenditures at new festivals.
International Journal of Culture. 7 (1). pp.51 – 57.
Fesenmaier, J.P and Tang-Taye, J.P. 2011. The consumer behavior in travel and tourism: Insights
from travel planning using the internet. Journal of Retailing and Consumer Services. 22.
pp.244-249.
Kim, S. and Lehto, X., 2012. The voice of tourists with mobility disabilities: insights from online
customer complaint websites. International Journal of Contemporary Hospitality
Management. 24(3). pp. 451-476.
Korstanje, M. and George, B., 2012. Sustainable tourism and global warming: panacea, excuse,
or just an accidental connection?. Worldwide Hospitality and Tourism Themes. 4(4).
pp.383 –394.
Lignau, L., 2013. Sustainable Tourism Development: An empty promise or the way into a better
future?. GRIN Verlag.
Lynch, P. and et. al., 2011. Theorizing hospitality. Hospitality & Society. 1(1). pp.3-24.
McDonald, L. M. and Hopkin, O. R., 2012. The future of hospitality education in Grenada.
International Journal of Contemporary Hospitality Management. 15(3). pp.156–160.
Online
Michel, R., 2013. Agents in Tourism Industry Research Paper. [Blog]. [Online]. Available
through:< https://www.advancedwriters.com/blog/agents-in-tourism-industry-research-
paper/>. [Accessed on: November 14th, 2016].
Sayres, J., 2011. Positive and negative effect of tourism in Thailand. [Blog]. [Online]. Available
through:< http://sayersjohn.blogspot.in/2011/03/positive-and-negative-effect-of-
tourism.html>. [Accessed on: November 14th, 2016].
9