TUI Group: Analysis of the Travel and Tourism Sector Report

This report provides a comprehensive analysis of the travel and tourism sector, focusing on the operations of TUI Group, a leading global tourism business. It begins by exploring the key historical developments within the sector, tracing its evolution from early cultural and economic influences to the modern era. The report then examines the structure of the travel and tourism industry, including the roles of various agencies and stakeholders. A significant portion of the report is dedicated to analyzing the impact of political changes in both the UK and China on the travel and tourism sector, considering policy shifts, economic implications, and their effects on tourist demand. Furthermore, the report delves into the factors affecting tourism demand, such as demographics, technology, political stability, and economic conditions, while also examining the relationship between supply and demand within the tourism market. Finally, the report discusses both the positive and negative impacts of tourism, offering strategies to mitigate the negative consequences and enhance the sustainability of the sector.

Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Key historical development in travel and tourism sector.......................................................1
TASK2.............................................................................................................................................4
2.3 discuss various implications at the time of political change on UK and China.....................4
Task 3...............................................................................................................................................5
3.1 Factors affecting tourism demand .........................................................................................5
3.2 Relationship between supply and demand in tourism............................................................6
Task 4...............................................................................................................................................7
4.1 Positive and negative impacts of tourism .............................................................................7
4.2 Strategies to minimize the negative impacts..........................................................................9
1.2 Structure of the travel and tourism sector............................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE ................................................................................................................................13
2

INTRODUCTION
Travel and tourism sector plays a significant role within the country which helps to attain
competitive advantages. It will assists to makein making successful operations in global
economy which creates growth inlead the nation grow (Séraphin and Butler, 2013). It enhances
the overall development of the country in which organization is operating their functions in a
systematic manner. Present report is based on TUI Group which is the world's largest tourism
business exist in UK. They perform several functions with dealing other agencies. through
different agencies through more than 1800 companies. They are leading is in developing
functions through online portal and aircraft of more than 130 industriesfirms. In this context,
present report covers key historical developments which demonstrate the major role in tourism
sector enterprise. Furthermore, it covers analyzing analysis of functions of government which
take sponsorship in firms of travel and tourism companysector. Moreover, it covers the
implication of political changes on traveling business in different countries. At last, report
explains the strategies which can be used to describe negative and positive impacts on cited firm.
1

1.1
In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and vasco da gama cruised to country for earn money then business travel has been integral part of
tourism industry(Cave and Brown 2012).
Early tourism started with Nomads who travelled around the world in search of food and
shelter. Main intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu and
Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage.Early tourism
started with Nomads who travelled around the world in search of food and shelter. Main intension of this traveller is to gathered food and traded
around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the era
1
1.1 Key historical development in travel and tourism sector
Tour refers as the activity of travelling of travellers, where tourism involves all the activity which is
directly or indirectly related to operate the tour
Travel and tourism business grow very fast in UK
market because this place attract various tourist to
come and visit place. There are several attraction
take place which help to develop market functions
in systematic manner. In earlier time people using
travel for war, business and see religious place.
After than, in 3rd century various people using
travel for compete their targets. At the middle age,
people travel for developing their knowledge
regarding various animals.1908-1938- In 1908 Ford company first introduced motor car. After this, in 1919 various air services introducing sir transport facility. In 1936 butlins camp opened in UK and
government introduced Holiday pay act in 1938. 1939-1969- 1939-45 second world-war take place then tour was introduced in UK market. In addition to this, in 1949 British fully
jet powered passenger aircraft is established. In 1954 various passengers' aircraft introduced and they are going to commercial services. 1969-1994- In 1969 UK develop tourist
boards with establishing tourism Act. In 1976 collaborate with air France and British airways produce Concorde. Apart from this, in 1933 European skies introduced low cost
services for targeting lower class people. 2001-2005- After 2000, first non stop flight introduced which run in all over the world without fuel. It represents as low cost services.
Guiding services They provide them local guide facilities so that they do not face any trouble. This structure of tourism supports the TUI business to provide quality services and
good experience to the travelers.
In 1600s travelling transport firstly introduced in which
they feel comfortable during travelling (Dredge, Schott
and Munar, 2015). After this, in 1700 young man
travelling for investing money in new way for achieve
more. Railway transport mainly considered in 1800
which help to people to travel long distance areas. With
considered continuing development Thomas cook group
introduced their services in UK market. After then,
various other organization take place who operate their
transaction in UK (Dredge, Schott and Munar, 2015). In
which TUI also take place to introduced their different
types of services in market. At starting time, cited firm
only use few operations and after than they grow their
functions in various areas of world.
Technology-In international tourism expanded due to the
development in the jet aircraft and the computer
technology. The development of computer
brought reservation systems which is used
today by travel agencies so that they can direct
contact with airline (Kaur, Chauhan and
Medury, 2016).

1.1
1.2
In the early age, cultural aspects, learning languages and travelling challenges restricted (Capacci, Scorcu and Vici, 2015). In 14 century
Christopher Columbus sailed westward and
vasco da gama cruised to country for earn
money then business travel has been integral
part of tourism industry(Cave and Brown
2012).
Early tourism started with Nomads who travelled around the world in search of food
and shelter. Main intension of this traveller is to gathered food and traded around the world and gave rise to the barter system (Capacci,
Scorcu and Vici, 2015). 1500 BC is marked as the era when the Europeans visited pyramids and thus developed the tourism for pilgrimage.
Early tourism started with Nomads who travelled around the world in search of food and shelter. Main intension of this traveller is to
gathered food and traded around the world and gave rise to the barter system (Capacci, Scorcu and Vici, 2015). 1500 BC is marked as the
era when the Europeans visited pyramids and thus developed the tourism for pilgrimage.
1
1.2 Structure of travel and tourism sector
Structure of travel and tourism sector are as below maintained:
 Tour operators (travel services), Travel agents, Transportation, Accommodation services, visitors Attraction, Guiding services
Tour operators
There are many tour operators those who arrange travel for
different customers. As inbound operators are those persons
who organize trip for non resident people, they are also called
specialist operators as they have good experience to organize
tour on particular location. Outbound operators are those
persons who arrange trip for the resident who live in the same
country but planning to travel in another nation. Same as there
are domestic operators organizes for the people those who live
within the same country.
Transportation
It is another component which is included in the structure. It depends upon the budget of the persons, if having high budget for the tour then operators arrange air tickets but if
people have average budget then they organize for them road travel. As national express and Euro lines are the major railway lines that gives huge facilities to the passengers.
Visitor attraction
Tour operators such as TUI include in its travel packages, visiting theme parks, events so that travel become memorable for them.
Guiding services
They provide them local guide facilities so that they do not face any trouble.
This structure of tourism supports the TUI business to provide quality services and good experience to the
travelers.
References
Milwood, P., Marchiori, E. and Zach, F., 2013. A comparison of social media adoption and use in different
countries: The case of the United States and Switzerland. Journal of Travel & Tourism
Marketing. 30(1-2). pp.165-168.
Navickas, V. and Malakauskaite, A., 2015. The possibilities for the identification and evaluation of tourism
sector competitiveness factors. Engineering Economics. 61(1).
Page, S. J., 2014. Tourism management. Routledge.
Travel agents
They are the intermediaries between customers and
tour operators. These agents make arrangements
for the visitors and provide them local services.
Accommodation services:
Tour operators provide them accommodation
facilities such as hotels, food, breakfast etc. So that
traveler do not face any trouble in other country.

BIBLIOGRAPHY
https://sphstravelandtourism.wordpress.com/topic-structure-of-the-travel-and-tourism-industry/
http://www.tourismexcellence.com.au/growing-destinations/tourism-structure.html
1

TASK 2
2.1 & 2.2
Covered in PPT
2.3 discuss vVarious implications at the time of political change on UK and China
Each country is having its own way of working so that its working implication are also
different in so that country must focus on aits way in which they areof Working and its
implementation that is listed as follows:
Implication of political change in the Uk
 When various changes take place in the UK so that it create impact on citedits business
such as if in the UK suffer with the various problems such as their working will concern
with the problems.
 Policies changes are one more implication, when the government of UK change policies
that relates to the tourism so that it impacts on the working. This impact on the number of
visitors because it covers taxation and much legislation so that it's changing trend is not
accepted by the government. For example if government of UK says that they can take
initiative towards the change in their heritage culture so in that case management suffer
with the various changes that must be concerning in enterprise point (Di Foggia and
Lazzarotti, 2013).
 In the Uk, when some political change occur in the monitory policy so that it enhance
rates for airlines and destination market.
 Such polices impact on the ratio of tourist in which theytourists are not preferred
changes. Along with this policy, UK government also use various polices which create
majorthat impact on the positive manner. In addition to this, if the management take
initiative with safety manner so that this is beneficial for the county. This is assist for
reduce the ratio of terrorist attack. Some times this affects concern with the facilities that impacted on tourismits working. In
addition to this, when polices are taken place towards the change so in that case positive
and negative factors both impacted with this (Milwood, Marchiori and Zach, 2013).
Implication of political change in the china
In this point management can concerning when some changes are taken place. so that Iif
government bodies of China focus on this change it may impacted on the work.
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 In China aims to give sufficient time for national tourism and also planning leisure
activities to grab the eyeballs. Adding to it, infrastructure and activities shall be planned
by providing quality services. This new tourism policy of 2013-2020 is prepared keeping
in focus many points. This new policy influence people positive and negative both way
and for this change, number of tourist may impacted.
 When china adopt this new policy so that it implicated on the labour and immigrating
policy as well. In order to this, capital and credit market is also impacted. This new
infrastructure facility is also leads to enhance the economic growth of the country.
 Every country have its own time period forof working so they are not stable. Its indirectly
impacted on the TUI that they have to make change in their policies and process in their
work culture. So company faces so many issues for that instability (Navickas and
Malakauskaite, 2015).
 In context of UK tourism, there are ever seems that ratio of tourist is increasing because
of itthere is only country who have a powerful stability in their government so that TUI
have a high positively impact by this and no political change is impacted on businessthe
TUI.
TASK 3
3.1 Factors affecting tourism demand
Tourist demand gets affected by several factors and due to changes in iting demand,
business of TUI directly or indirectly gets impressed. Various elements are as below maintained:
Demographic: It is the main component that influences the mind of people to visit the nation as .
As travelers generally plan to visit such places which are having good atmospheres and, where
they can get relaxed (Scarles, 2016). But if in particular areas, there is high urbanization,
changing family structure and, high population then it will demotivate visitors to go on such
places. That It decreases the demand of tourism. As manager of TUI has observed this element
and individuals has analyzed that due to poor demographic condition people do not plan for
holiday in some locations. That It will affect impacts on the business of TUI as to a great extent
(Scarles, 2016).
Technological: It is another component which affects the demand of tourism in the country
(Baloglu, Henthorne and Sahin, 2014). As it is the modern era in which people uses internet and
2

latest technologies, . As UK has its own tourist website in which people can get all complete
information about the hotels, destinations in the country, etc. Internet now days have become the
important part of the human life as, people searches about the everything they want to know like
place, there its environment, political condition, prices of hotels, etc. then On the basis of same,
they plan to visit particular place. In the absence of relevant information, they change their plan.
It highly affects the demand of tourism in the country to great extent. TUI gives full detail to its
customers about the location, attractive distention and, accommodation that helps the firm to
gain attention of population (Chen, 2013).
Political stability: It is the another also one of the main elements that influencesd minds of
public to a great extent. As inIn a particular country, if there is political instability then due to
this, criminal activities can be highget increased. Then Also, population will not plan to go on
such places where government is does no not bother about the country. But where authorities pay
focuses focus on the development of the country, safety of population, infrastructure and,
transportation facilities then it enhances leads to enhance the scope of business of in tourism
sector (Mancini, 2012). UK government develops infrastructure, hotel and,
transportaiontransportation for visitors and political parties that are much more concern about the
safety of people. That It helps to attract more public towards the nation and itwhich increases the
business of TUI.
Changing working patters: It is another reason or factor that affects the demand of tourism
(Scarles, 2016). As In case if there is high work load and, tight official schedule then people will
do not get time to go on holiday. On the other hand, if organizations change the working
environment and provide them vacations, then in free time, employees will plan to go on holiday
with family (Schuckert, Liu and Law, 2015). That It will increase the demand of tourism but if
entities do not provide them time then they will not be able to plan any travel with family. That It
impacts a lot on the business of TUI, as if people get time then it will enhance the business of the
cited firm to a great extent.
Macro economy: There are many factors such as currency exchange rates, inflation, interestand
interest rates, etc. that put a high impact on the tourism. If there is high inflation then population
will not plan to go on holiday but if there is stable currency rate,s then people will take interest in
it and will plan their holidays (Travel and Statistics, 2012). Same is another elements of macro
economy is that if government increases currency rates then costing of tickets will and
3

accommodation will be higher so it will be over budget for the people so it decreases demand of
the tourism (Scarles, 2016).
3.2 Relationship between supply and demand in tourism
Supply and demand are interrelated as, if tour operators provides quality services and
accommodation to travelers then it will create a positive image and thus, demand will gets
higher. Organizations need to focus on accommodation facilities, quality services and, seasonal
offers by this waywhich business of TUI can gets increased (Kapiki, 2012). Tour operators
arrange travel packages for the consumers in which, they need to focus on safety and,
convenience of the public. Quality supply of services can enhance the scope ofd business of the
organization to a great extent. If they do not supply effective services to them then it will
decrease the demand to great extentof services. TUI needs to look upon providing quality
accommodation, conform confirm booking, etc. so that it can gain attention of public.
If hotel and, resorts do not provide them effective services then it will create a negative
impact in on the mind of people and they will not plan to stay in such particular placethere (Han
and Hyun, 2014). Types of products are is another reason of effecting hampering demand as . As
if TUI managers design attractive beneficial tour packages for consumers then changes in
product’s type can enhance the interest of people. But poor designed packages will decrease the
demand as wellof these products and services. Local political parties need to focus on
delieveri9ngdelivering effective services to visitors (Scarles, 2016). As byBy supplying needed
services, city can gain loyalty of people to great a high extent. Development of theme parks,
destination and, museums in the country can support TUI to attract more customers for traveling
(Gabor, Conţiu and Oltean, 2012, 2012). As location is the most important thing, so, whenever
traveler plans to go on particular place, individuals, look upon the attractive points of particular
destination.
Seasonality is another aspect as if TUI offers attractive discount in off season time then
this supply of information will help to increase the demand of consumers to great extent (Scarles,
2016). Intermediaries are the mediators between tour operators and consumers. They add their
commission and then sell the final product to visitors. That is whyThis is the reason that prices of
the packages get increased. If cited firm directly deals with the end users then it will be cheaper
for them and it will be in their budget (Ekanayake and Long, 2012). By this way, sales of the
products offered by company can get be increased to great extent.
4

Proper booking of hotels and, safer arrangement of leaving can help to make people loyal
towards the firm and next time also theyit will make them will use the services of TUI again. In
this environment, travelers will feel safe and secured. But, if there is will be poor transpiration
services, high tarriest attacks , strict norms of airport checking and visa policies then it will
demoralize the persons people to go on particular place. By this, TUI will not be able to
accomplish its objectives. So, it is essential to supply quality services to meet with the demand of
customers (Milwood, Marchiori and Zach, 2013). Tourist demand gets affected by several
factors and due to changes in it, business of TUI directly or indirectly gets impressed. Various
elements which affect demand of tourism are as following:
 Demographic: It is the main component that influences people to visit the nation as
travelers generally plan to visit such places which are having good atmosphere and where
they can get relaxed (Scarles, 2016). But if in particular areas, there is high urbanization,
changing family structure and high population then it will demotivate visitors to go on
such places. It decreases the demand of tourism. As manager of TUI has observed this
and i analyzed that due to poor demographic conditions, people do not plan holiday in
some locations. It will affect the business of TUI to a great extent (Scarles, 2016).
 Technological: It is another component which affects the demand of tourism in country
(Baloglu, Henthorne and Sahin, 2014). As it is the modern era in which people uses
internet and latest technologies, UK has its own tourist website in which people can get
complete information about the hotels, destinations in country, etc. Internet now days
have become the important part of human life as people searches about everything they
want to know like place, its environment, political condition, prices of hotels, etc. On the
basis of same, they plan to visit particular place. In absence of relevant information, they
change their plan. It highly affects the demand of tourism in country. TUI gives full detail
to its customers about the location, attractive distention and accommodation that helps
the firm to gain attention of population (Chen, 2013).
 Political stability: It is also one of the main elements that influences minds of public to a
great extent. In a particular country, if there is political instability then due to this,
criminal activities can get increased. Also, population will not plan to go on such places
where government does not bother about the country. But where authorities focus on the
development of country, safety of population, infrastructure and transportation facilities
5

then it leads to enhance the scope of business in tourism sector (Mancini, 2012). UK
government develops infrastructure, hotel and transportation for visitors and political
parties that are much more concern about the safety of people. It helps to attract more
public towards the nation which increases the business of TUI.
 Changing working patters: It is another reason or factor that affects the demand of
tourism (Scarles, 2016). In case if there is high work load and tight official schedule then
people will not get time to go on holiday. On the other hand, if organizations change the
working environment and provide them vacations, then in free time, employees will plan
to go on holiday with family (Schuckert, Liu and Law, 2015). It will increase the demand
of tourism but if entities do not provide them time then they will not be able to plan any
travel with family. It impacts a lot on the business of TUI as if people get time then it will
enhance the business of cited firm to a great extent.
 Macro economy: There are many factors such as currency exchange rates, inflation, and
interest rates, etc. that put a high impact on tourism. If there is high inflation then
population will not plan to go on holiday but if there is stable currency rate, then people
will take interest in it and will plan their holidays (Travel and Statistics, 2012). If
government increases currency rates then costing of tickets and accommodation
facilities will be costly so it will be over budget for the people. Thus, individual will not
be able to afford it so it will decreases demand of the tourism (Scarles, 2016).
3.2 Relationship between supply and demand in tourism
Supply and demand are interrelated as if tour operators provide quality services and
accommodation to travelers then it will create a positive image and thus, demand gets higher.
Organizations need to focus on accommodation facilities, quality services and seasonal offers by
which business of TUI gets increased (Kapiki, 2012). Tour operators arrange travel packages for
consumers in which they need to focus on safety and convenience of public. Quality supply of
services can enhance the scope of business of organization to a great extent. If they do not supply
effective services to them then it will decrease the demand of services. TUI needs to look upon
providing quality accommodation, confirm booking, etc. so that it can gain attention of public.
If hotel and resorts do not provide them effective services then it will create a negative
impact on people and they will not plan to stay there (Han and Hyun, 2014). Types of products is
another reason of hampering demand as if TUI managers design attractive beneficial tour
6