Report on the Contemporary Travel and Tourism Industry: Key Elements

This report provides a comprehensive analysis of the contemporary travel and tourism industry. It begins with an introduction defining tourism and highlighting its significance, followed by an exploration of the key elements that contribute to the development of the tourism industry, including accommodation, transportation, food and beverages, entertainment, and travel services. The report then delves into the factors that influence tourism, such as environmental, economic, and cultural aspects, and examines motivation models that affect customer decision-making. Furthermore, it discusses recent trends and innovations in the international tourism industry, including the impact of the internet and social media. The report concludes by analyzing factors affecting the popularity of various tourism destinations. The report covers historical aspects, current trends, and future implications of the industry.

CONTEMPORARY TRAVEL AND
TOURISM INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key elements which helps of in development tourism industry............................................3
P2 Elements of Travel & Tourism Industry................................................................................5
TASK 2............................................................................................................................................7
P3 Factors that influence tourism................................................................................................7
P4 Motivation Models which influence decision making of customers in tourism industry .....9
TASK 3..........................................................................................................................................10
P5 Recent emerging patterns and trends in international tourism industry..............................10
TASK 4..........................................................................................................................................11
P6 Factors affecting various popular tourism places................................................................11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Tourism is a industries which include variety of services such as foods & beverages,
accommodation, spa, swimming, traveling, transportation, cruise ships and many other apparent
services related to travel. This report includes definition of tourism. Further, this report
elaborate key functions of tourism industry which helps in development & potential growth of
travel & tourism industry. Furthermore, this report explains various elements of tourism industry.
Moreover, this report highlights inter relation between different elements tor tourism. Further,
this reports elaborate factors that affects business & behavior of tourism & hospitality sector.
Furthermore, this report gives information about models of motivations and their affect on
decision making process of customers. Moreover, this report includes recent trends &
innovations in global tourism & travel sector. At last, this report explains elements which affects
popularity of tourist places at an international level.
TASK 1
P1 Key elements which helps of in development tourism industry
Definition- According to United Nations World Tourist Organization (UNWTO) Tourism
is an adventures activity which helps individuals in exploring different countries & cities which
have different cultures & environments. Tourism helps people in gaining experience &
knowledge of culture of different countries and cultures. People who explore new places & cities
are known as visitors or tourist. Tourist needs to save money for tourist expenditure (Du and
et.al., 2016).
Further, Tourism includes various activities such as Accommodation, Transportation,
Food & Beverages services, Travel Services and entertainment services. UNTWO is an agency
which provides & facilitates all these activities to promote tourism and it also encourages its
member countries to behave ethically with an objective to grow business of travel & tourism
Industry. 156 countries and 400 government & non - government organizations are members of
UNWTO.

Tourism is now a successful business and it also contributes in economic development of
countries. Government of countries also provided various laws & provisions for development of
tourism industries. Tourism industry is developed in a following way discussed below-
History of Tourism Sector
History of tourism industry is divided into three categories-
Before 1945- Before 1945 tourism includes only travelling it does not provide
accommodation, transportation, and foods & beverages. All those services are treated differently
in those times. Hotels offer services of accommodation, transportation services are provided by
air lines and railways and food is offered by restaurants. Thus all services come separately which
consume much times and cost as compared to packaged services. In 1841 1st packaged tour was
introduced by Thomas Crook. But it was not successful as railways are already doing that
business. Thus, tourism industry is developed after 1950. Tourism & Travel becomes business
after establishment of leisure travel agency by Thomas Cook. This business creates interest
among individuals to travel & explore the world (Gmelch and Kaul, 2018).
After 1945- Development & growth of tourist industry arises between 1950-1979. This
sector improves fast during this period. In 1950 tour agencies started including variety of
services in their business portfolio. Business operating under tourism industry snow offering
integrated services which further enhances profits and market share of business operating in
tourism sector. Hotels also operating with many services For Example they beside
accommodation they introduced traveling facility for their customers and they also started giving
shopping facilities to their customers by opening shopping outlets in their premises. Further,
airlines come up with insurances and accommodation booking facility for its travelers.
Moreover, for the development of this sector tourism business operators indulging in
offering various discounted services such as 20% discount on hotel prices with the booking of
airlines tickets. Growth in this sector is becomes possible when companies giving paid holidays
to their employees that is the biggest change which highly contributes in development & success
of travel & tourism industry. Expansion of business of air lines and packages services also leads
to development of tourism & travel industry (Adams and et.al., 2015).

After 1980- After this year many agencies was in the business of providing full travel services to
their clients which increases interest of customers and there is a rapid growth in air travel
business. On the other hand, this business in United Kingdom and Europe is negatively affected
due to establishment of big companies in America. USA travel & tourism industries offer wide
variety of effective services which reduces profits of agencies operated in United Kingdom &
Europe.
An enhancement in charter services are made during this period which helps in increment
of profitability, market share and customers base of companies operating under Travel &
Tourism industry. This business also becomes popular with the emergence & increasing use of
internet and social media. Now a day’s youngster are more addicted to travelling & exploring
new places and they also love to upload their own social media page related to travelling. This all
enhances profits and business operations of travel industry. Travelling has become hobby of
individuals which helps travel agencies in enhancement of their business.
With the introduction of internet in 2000 online booking facilities are given by travel
agencies and various online apps such as trivago, hotwire group and hotels.com helps in creating
awareness and facilitates easy booking facilities to customers. All this attracts customers and that
further leads to sustainable growth of this business. Social media apps such as Instagram, Twitter
and Facebook helps in promotion of business of travel & tourism industry.
All this global innovations & trends helps in development of business of this sector and it
also provides long term growth in this sector. Further in future this business is also helpful in
potential growth of economy as it brings culture trade. Development in this sector is also
beneficial in improving education facilities and creates awareness among young generation about
culture of different countries and cities (Mason, 2015).
P2 Elements of Travel & Tourism Industry
Tourism industry is very dynamic and competitive thus, it includes various elements
which directly related to its business operation. All these segments are discussed below-
Accommodation- Accommodation is main service in this industry as it is required for
the stay of visitors. If accommodation facility is not proper than visitors hesitate to go outside
and which affects business of travel & tourism industry. This is a category of products offered

under this industry. This facility is offered by hotels, guesthouse & campsites and this also helps
in enhancement of business of hospitality industry.
Transport Activities- Transportation activity is an essential element in facilitating
business of travel & tourism as it helps in bringing visitors at their destination. Transportation
also gives adventures experience to visitors as various transportation modes are new to them.
Modes of transportation include cruises.
Foods & Beverages Services- Foods & Beverages are also an important element as it
includes different types of business ventures which supplies food items to individuals. Growth of
food business is dependent on number of people travelling far away from their home. Desire of
visitors to try out new food items also develops operations of this service industry. Restaurants,
café and hotels provide foods & beverages facility to tourists. Food is necessary thing for living
thus, its inclusion in travel & tourism business is also necessary.
Entertainment Services- Entertainment services are also a significant element as tourist
who travel outside from their house needs some new things which attract them and make them
happy. Various hotels organize dj parties, pool parties and live performance which elaborate
culture of that country or city(Tan and et.al., 2017).
Travel Service- Travel services such as airlines, railways, car & bus services plays a
crucial services as they are required for moving from one place to another place. Thus, without
this element travel; & tourism industry cannot perform its business and contributes in economic
development of cities.
As tourism business offer charter services to its customers which is not possible if all of
these elements does not perform together. Hence, all these elements are connected with each
other-
Accommodation and Foods & Beverages- Many hotels also include restaurant in their
business to fulfill needs of its customers related to food. This both elements are inter-related with
each other as both increases profits of business and they both are essential for a tourist. If both of
these services are available to a visitors than they feel satisfied and visitors prefer to book a hotel
which is fulfilling both of these requirements such as accommodation and foods & beverages.

Combination of both services gives satisfaction to customers and it helps in growth of tourism
industry.
Travel Services & Accommodation- Travel services such as airlines and railways also
advertise business of various hotels and they give offers to customers on their bookings. On the
other hand hotels link its customers to various car & traveler buses so that they can explore
places in city. Travel services & hotel industries are connected with each other as they both helps
in expansion of their business by increasing market share, customer base and profitability which
further helps in growth of tourism business. (Mowforth and Munt, 2015).
Entertainment & Travel- Cruise ships operators organize entertainment programmers
such as live events and dance performances which attract customers and interlink both elements
such as entertainment and travel. If transportation does not include entertainment facility in its
services portfolio than customers does not prefer to book that mode thus, it is essential for both
the services to be performed together. Development of tourism industry is possible only when all
of these elements interact with each other and perform together. If both of this services are not
inter related with each other than business of tourism industry cannot grow as it does not attract
customers.
TASK 2
P3 Factors that influence tourism
Business of travel & tourism industry gets affected by various factors as they as
individuals of different cities and cultures have their own perception & preferences. All these
factors which has an impact on tourism behavior are discussed below-
Environment- Environment consists of floods, earthquake, rain fall and extreme climate
situation affects business of tourism industry in an adverse manner. Environment of destination
pace creates demand of tourist for that particular city or country. For Example- During the period
of harsh summer individuals of United Kingdom prefer to visit places which are cold and places
like hill station or monsoon places. If environment condition of a country is very good which
attracts customers than it contributes towards development of economy of that particular country
(Semenza and Ebi, 2019).

Economic Factors- Economic factors such as inflation rate, taxation rate, income level
and unemployment affects behavior of tourism. For Example, there is high rate of unemployment
in United Kingdom than that leads to decrease in purchasing power of individuals which create
lower demand for services of travel & tourism industry. Whereas if countries economy is
growing and income level of individuals are very high than that crates higher demand and which
leads to increase in profitability and market share of all businesses operating within travel &
tourism industry.
History & Culture of Destination- History & culture of a place includes forts, castles,
monuments, antiques, ornaments, weapons, caves and ancient architecture. Thus, all of these
cultural places attract visitors and which in turn develops business of hospitality & tourism
sector. Many individuals who are addicted to gain knowledge about various cultures and history
love to explore these places. A place which has different & unique culture attracts tourist.
History & culture affects & attracts customers and that created demand for tourism business.
Religious Significance of Destination- Many place is popular with the name of religious
gurus and lords. Individuals explore these types of places to know the details about that religious
place and to get information about magic of those places. These places influences pilgrim’s tour
and helps individuals in searching peace and get blessings. Tourist visits these types of places at
a particular period of time. Thus, that also affects behavior of tourism and that further enhances
profits of travel & tourism industry.
Technological Factors- Advancement & innovations in technology helps tourism
industry in promoting their services. Emergence of different social media sites such as twitter
and facebook creates awareness among people regarding various tourist places. Beside that many
agencies are developing their own websites to promote their business and give details about their
overall offerings. Innovation in technology also helps in providing online booking of hotel rooms
& tickets which makes easy for customers to avail facilities. Customers also gives their
feedbacks & views about destinations which helps other individuals in selecting right places and
this also helps in maximization of profit of firms who are operating business of travel &
hospitality (Prebensen and et.al., 2018).

Research Importance of Destination- Many visitors visit places and make their own
research report by doing a detailed study on importance of that place. That research helps in
providing information through various websites and this research also attracts many other
individuals. Thus, this affects behavior of tourism industry. Important research also makes place
popular and it influences geologist, architecture and many other researchers who wants to study
different cultures and historical places.
P4 Motivation Models which influence decision making of customers in tourism industry
There are various Motivation models that influence the consumer’s or travelers decision,
here the Schmoll model and Matheison & Wall model are being observed to understand the
decision making of consumers in tourism industry.
Schmoll model- The Schmoll model emphasizes of four factors that affect the decision making
process of Tourists. These factors are- Travel stimuli- It comprises external boost or influence that can awaken the desire and
needs of individuals to travel in the form of promotional stimulation, personal or trade
recommendations. This may include components such as advertising and promotion,
travel literature suggestions, reviews from other travelers as well as travel trade
suggestions. Effective & attractive travel strategy further influence decisions of making
of customers(Gretzel, 2018). Personal and Social determinants- This factor includes determination of customer's
goals in the form of travel desires and expectations as well as the objective and subjective
risks that and customers thinks in relation with the travel. This may include the socio-
economic status of the consumer, attitude, values, desires, needs and expectations in
relation to the travel all these affects decisions of customers. External Variables- This involves the confidence of the travelers in destination image,
past experience as well as cost and time constraints. For instance- Confidence of an
individual in travel service, destination, previous travel experience as well as time and
cost limitations related to the travel.
 Characteristics and features of the service- It includes attraction or amenities offered,
range of travel opportunities, type of arrangement offered by the service, cost or value

relations and other travel related factors that affect the decision of the customers who
want to travel (Eugenio-Martin and Inchausti-Sintes, 2016).
Matheison & Wall model- It refers to a five staged model developed by Matheison & Wall that
affects the buying decision of tourists. These five stages are as follows- Felt need or travel desire- A desire to travel is being felts and the pros and cons of that
desire are being analyzed by the consumer in order to plan out the trip which has an
impact o0f decisions of customers. Information and Evaluation- This includes potential tourists utilized travel
intermediaries, brochures and advertisements as well as suggestions from friends,
relatives and experienced travelers. This information is further evaluated against cost and
time constraints and the factors such as accessibility and alternatives. Different tourist
have differentt income level which affects their decision making. Travel decision- This stage includes the destinations, mode of travel, accommodations
and activities being selected by the traveler. Costumers make decisions in deciding mode
& type of accommodation. Travel preparations and travel equipment- This stage occurs when the bookings are
made and confirmed, budgets are organized as well as all the equipment are arranged.
Thus, customers make decisions according to their budget.
 Travel satisfaction evaluation- This the post stage during and after travel that includes
the overall experience of the trip which is evaluated further to interpret results that will
influence future travel decisions of customers.
Thus, it is observed that how these factors of both the models of motivation in tourism
industry influences the decision making of the travelers or consumers to initiate a trip in
considering the above components.
TASK 3
P5 Recent emerging patterns and trends in international tourism industry
The following are the different pattern and trends in the tourism sector-

 Adventure Tourism- Adventure tourism refers to connecting with a new culture or
environment being physically active during the course of time. Adventure travel includes
the activities such as caving, climbing, hiking, rafting and many other physical activities.
The growth in the adventure travel is boosted due to increasing initiatives by the
government in order to promote the tourism. Also, increase in social media trend has
driven the rise of adventure service providers and impacted on the rise of this travel trend
(Vellas, 2016).
 Educational Tourism- Educational tourism is referred as an approach for pursuing
education, carrying out research activities and knowledge acquisition. This trend is
acquiring popularity in the current times and is a fast growing component in the tourism
and travel industry. It includes the activities such as school trips, seminar vacations and
study abroad experiences that are initiated to acquire some practical knowledge and to
apply different theoretical skills learned in classrooms at totally diverse environment.
 Rise of Chinese tourism- China is considered as a very popular country for foreign
tourists as due to its people with different culture the natural highlights, ancient cities and
fast modernization. This the reason as the China ranks fourth in terms of tourists
destination after France, Spain and US. Statistically 98.8 million of tourists traveled to
China in 2015 for tourism business or work. Also, the domestic tourism for China is
rising rapidly and expected to increase the number of foreign tourists in next decade.
 Rise of cruise holidays- A cruise holiday refers to a holiday of an individual traveling on
a ship or boat and visit the number of places. Cruise line international association states
that there are 28 million of passengers traveling on cruise annually in 2018 and tor rise
about 6% of it in 2019. The reason behind this is that the travelers are concerned with
staying connected at the sea, healthy vacations etc and many more factors.
 Shopping tourism- Shopping tourism is concerned with the different opportunities of
shopping by tourists while traveling. The trend is increasing in the current times as due to
rise of Asian travelers to Europe to shop for the big luxury brands. On the other hand the
Europeans are more interested in traveling to Asia as in search for small designer brands
and unique design features which may not be available in their country(Becker, 2016).

TASK 4
P6 Factors affecting various popular tourism places
There are various factors affecting the popular tourists places. In order to understand
these factors, 4 Tourism places are being observed below-
France- France is considered as the world's favorite holiday country. According to UNWTO,
about 23 million tourists visited France in 2018. Beautiful places in the country, the cities such as
Paris and Stratsbourg, popular beaches, the French Alps and the food serves as tourists
attractions in France.
Factors affecting Tourism-
1. Beautiful destinations and the city of Fashion has gain the popularity of France Tourism.
2. Indirect environmental change impacts such as biodiversity loss, increased natural
hazards, coastal erosion etc are the reasons impacting the tourism in France.
3. Recent political events caused such as terrorism and bomb blasting has resulted to the
reduction in the arrivals of tourists in France.
United States- Tourists visits United States to see the natural wonders, cities, historic landmarks
and entertainment venues. There were about 75 million of tourists visits in US during 2014.
Factors affecting Tourism-
1. The cost of accommodation and travel is high and as a result there is slow in growth rate
of number of tourist arrivals in US.
2. Political and legal issues created by the US government such as availability of Visa and
other facilities that creates the reduction in tourist’s arrivals in the country.
3. Various entertainment places and Historical monuments have made the country popular
for Tourists arrivals.

China- China is the fourth largest tourist destination in the world with 56.9 million of
international Tourists arrivals per year. There is a boom in Chinese tourism due to its faster
modernization and ancient cities.
Factors affecting tourism in China-
1. Diplomatic and political Tensions with the neighbor countries.
2. Increase in the Modernization of the country has resulted in the increase in popularity of
the Tourism in China.
Spain- As in 2019 Spain holds the first place in the world at international tourism with 82.8
million tourists arrivals in the year.
Factors affecting the Tourism-
1. Popular destination of summer holidays has made the country as a popular Tourists spot.
2. Best transport facilities such as airlines and high speed rail has influenced the number of
tourists arrivals in the country.
3. Various places such as The Coasta Brava, the Coasta Daurada which are very popular in
the country and attracts the tourists to visit the destination (Boniface and et.al., 2016).
CONCLUSION
This report outlined definition of tourism. Further, this report summarizes history of
development & expansion of travel & tourism industry. Furthermore, this report concludes
various key elements related to business of travel & tourism industries. Moreover, this report
outlined factors that influence behavior of tourism industry. Further, this report summarizes
models of motivation which encourage consumer’s decision making process in tourism sector.
Furthermore, this report outlined current trends & innovations made in travel & tourism industry.
Moreover, this report concludes various factors that affect reputation of tourist places.

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