Analysis of Contemporary Issues and Trends in Travel and Tourism

This report provides a comprehensive analysis of the travel and tourism sector, focusing on contemporary issues, emerging trends, and strategic responses. It examines the industry's dynamics, using Costa Rica as a case study to illustrate challenges such as technological advancements, natural disasters, and economic changes. The report delves into the evaluation of current trends, including eco-tourism and sports tourism, and their influence on the sector's evolution. Furthermore, it analyzes the responses of travel and tourism businesses, such as the Thomson group, by utilizing SWOT and PEST analyses to identify strengths, weaknesses, opportunities, and threats, as well as the impact of political and economic factors. The report concludes by discussing the consequences of businesses failing to adapt to market changes and proposes strategies to improve responses within the industry.

Contemporary Issues
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Analysing the issues currently driving change in the travel and tourism sector........................3
1.2 Analysing different current issues using by using appropriate methods and resources............4
TASK 2.................................................................................................................................................4
2.1 Evaluating current trends influencing the change in the travel and tourism sector..................4
2.2 Analysing a current trend by using appropriate techniques and resources...............................5
TASK 3.................................................................................................................................................6
3.1 Analysing the responses of travel and tourism businesses in respect to change........................6
3.2 Develop strategies to improve responses of travel and tourism businesses in respect to change7
3.3 Justification of developed strategies..........................................................................................8
TASK 4.................................................................................................................................................9
4.1 Impact of issues and trends that drive change in the travel and tourism sector.........................9
4.2 Discussion regarding consequences of businesses failing to respond towards market changes9
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................11
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INTRODUCTION
As per the current market scenario, it can be stated that the travel and tourism sector is one of
significant industry that plays a key role in success of economic system. It has also been spotted that
the travel and tourism sector is facing various issues that impacts the overall development. In the
support of this, it can be stated that some of them are contemporary issues which influence tourism
sector working with assistance of external factors (Blanke and Chiesa, 2013). In order to have effective
opportunity the various activities needs to be consider in appropriate manner which can be classified as
accommodation, transportation, tourism development, tour operators and travel agency.
Current study will provide effective examination of current trends that are associated with the
working of travel and tourism sector. It also provides enhanced learning regarding diverse strategies
that can provide assistance to working of travel and tourism during change implementation.
Furthermore, the effectiveness of each strategy will also be analysed to handle different kinds of
situations.
TASK 1
1.1 Analysing the issues currently driving change in the travel and tourism sector
In order to have effective analysis of current issues the learning has considered Costa Rica as a
destination. In the support of this, it can be stated that travel and tourism sector is one of most
beneficial industry that provides great contribution to economic development of Costa Rica. It is a
destination that covers wide range of natural resources, flora and fauna, beautiful beaches etc that
attracts more and more customers destination (Felfernig, 2007).
There are number of issues that impacts the sustainable development of travel and tourism
activities within Costa Rica. It has been spotted that the technology is considered as one of commonly
used tool to boost productivity but it also impacts travel and tourism sector in negative manner.
Customers are using internet for bookings of tickets and hotels. In this regard, customers faces issues
due to increased level of hacking by unethical factors available within community (Lew, 2008). It
impacts service user perception in negative manner which influence working of travel and tourism
sector in negative way. Many persons that relates with criminal gangs provide wrong information on
internet bookings which also increases the unethical aspects within environment of Costa Rica.
Moreover, the natural disasters have also impacted the natural beauty of Costa Rica. It has been
spotted that the Costa Rica is considered as place that covers earthquake and volcanoes occurrence
aspects. Increased ratio of earthquake and volcanoes has affected the natural beauty of various
attractions present in the Costa Rica (Sharpley, 2006). Other than this, these kinds of activities has
impacted the perception of customers in negative manner and affect overall sales ratio of travel and
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tourism sector. In other aspects, it can be said that tourist have decreased visiting the places or the
destination that possess the natural disasters.
Other than this, economic changes also impacts the working of travel and tourism sector in
diverse manner. It has been identified that the government of Costa Rica has increased the tax rates on
service industry which has impacted the overall operations of travel and tourism sector in negative
manner (Williams, 2013). Hence, economic issues is being consider as the primary issues that impact
the Costa Rica destination. Moreover, the criminal activities threat is also one of critical issue for travel
and tourism sector. It has been spotted that the ratio of criminal threat has increased in recent years and
impacted the tourist places in Costa Rica. Increased ratio of robbery during vacations has influenced
the customers perception in negative manner.
1.2 Analysing different current issues using by using appropriate methods and resources
It has been spotted that there are number of issues that travel and tourism sector faces in order
to have sustainable development. Number of sources has been accessed to identify the key issues that
present in tourism sector of Costa Rica. In the support of this, it can be said that the contemporary
issues with in industry influences the public image and their responses towards leisure activities
(Bernick, 2013). As per the consideration of secondary sources, it can be stated that the technological
factors has increases the negative impact on the travel and tourism sector. Hacking has become
common now days and professional hackers are accessing customers private information which creates
an hamper situation among customers.
In the support of this, it can be said that the customers are now a days more attracted towards
effective use of internet in order to book travelling and leisure activities. It is one of key need of
customers that personal information must not be shared with anyone and it must be kept confidential.
Hacking of personal information impacts customers needs in negative manner which affect overall
operational activities in diverse manner (Iroegbu, 2006). As per the consideration of sources it has also
been spotted that the criminal aspects has also increased in recent years that also influences the
customer perception. Other than this, it has also been identified that the government has increased tax
rates on the service industry that can reduced the overall profit margin ratio of the organisation. In
other words, it can be asserted that it influence inbound and outbound tourism activities within Costa
Rica (Morrison, 2003).
TASK 2
2.1 Evaluating current trends influencing the change in the travel and tourism sector
As per the assessment of various sources, it can be said that the perception of customers is
changing in diverse manner. Travellers are becoming more attracted towards tourism activities that
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provides exploration of new destination all around the world as it amends their experience level.
Income level advancement also motivates customers to invest more on leisure activities (Bhatia, 2012).
This is also one of reason that are now more attracted towards the destination that present in different
geographical area.
In respect to above statements, it can be said that the travel and tourism sector opportunities has
been increased in year 2014 as compared to 2013. Number of business organisations has entered in
sector to provide low cost accommodation services so that customers can have better satisfaction level.
Moreover, the online booking system is also playing key role in success of travel and tourism sector
and impacts directly on the sales (Lumsdon, 2010). Average expenditure of travellers has also
increased in recent past years. It has shown positive trends during the peak of £650 that is reflecting
negative trends in peak season of 2013. As per the consideration of travel and tourism sector report, it
can be said that the revenue of industry has also been increased.
In addition to this, it can be said that the eco-tourism activities has also been increased in
diverse manner. It is considered as one of emerging trend in the travel and tourism sector. Customers
are more attracted towards destinations that provides exploration to natural beauty (Robinson, 2005). It
forces business organisations of travel and tourism sector to focus on effective development of eco-
tourism activities. In this respect, it can be stated that the travel and tourism industry can have great
opportunities in the business by developing tourism plans for Costa Rica (Rizzi, 2014).
2.2 Analysing a current trend by using appropriate techniques and resources
In order to have effective examination of current trends that relates with travel and tourism
sector, a systematic research is carried out with an assistance of various techniques and secondary
sources. As per the consideration of diverse secondary sources, it can be said that the current emerging
trends are in favour of Costa Rica. Customers are more attracted towards eco-tourism in order to attain
better experience (Briedenhann, 2004). Travel and tourism sector is focusing on development of
various eco-tourism activities within Costa Rica by accessing the natural beauty present within
destination. It also helps government and authorities to motivate communal aspects in preserving the
environment. Key attraction within Costa Rica are its flora and fauna and other natural resources, it
means the travel and tourism can easily meet the needs of customers. It has also been spotted that the
eco-tourism has grown by 34 % in last five years (Cooper, 2008).
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Illustration 1: Statics of
international visitors
In the support of this, it can be said that the agro tourism is also one of key trend in the industry.
It has been spotted that the number of people visit Costa Rica to experience the agro aspects available
at the destination. Moreover, the sport tourism is also considered as the emerging trend in the travel
and tourism sector. Number of visitors visit Costa Rica to amend their experience in regard to sports.
Football is one of major sport in Costa Rica so sports lover visit to destination and experience football.
By encouraging the sport tourism in natural and exotic destination, it will positively impact their
services and offerings (Coles, 2004). Moreover, it can also be said that the eco-tourism and sports
tourism activities are impacting the growth of travel and tourism sector in positive aspects. In this
regard, number of nature based themes hotels and resorts has also been established within Costa Rica.
By the end of year 2012 the eco-tourism activities has provided growth of $475 billion.
TASK 3
3.1 Analysing the responses of travel and tourism businesses in respect to change
In order to have effective analysis of internal and external factors the management of Thomson
group needs to focus on SWOT and PEST analysis. With an improved focus on these two factors the
organisation can easily identify organisational strength and weakness which is beneficial to provide
better responses to change. It also provides information about various opportunities and threats that can
change the operational activities of business.
SWOT Analysis
Strength
 Company has enhanced level of reputation
and brand image in the market.
 Thomson group provides premium quality
Opportunities
 Company can focus on introduction of
new services in order to attract more and
more customers.
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of goods and services in order to meet the
needs of travellers (Travel trends 2012). Organisation also provides low cost air fair
to attract more customers.
 Thomson group can also have business
expansion in the global market.
 Company has strong competition in global
market such as Thomas Cook.
 Changes in government rules and
regulations can influence busjness in
diverse manner (Middleton, 2012).
Weakness
 Time period of service delivery is high Old design of brochure
Threats
 Company has strong competition in global
market such as Thomas Cook.
 Changes in government rules and
regulations can influence busjness in
diverse manner (Coles, 2008).
PEST Analysis
 Political: As per the consideration of political aspects the changes in regulations and policies
can impact the operational activities of Thomson. Political aspects within Costa Rica is stable
so it will not impact the business of tour operator company. Taxation policies on tourism have a
major impact on the plans and policies framed by Thomson (Dale, 2001). Economic: Changes in economic aspects impacts the business operational activities in diverse
manner. In other aspect, it can be said that the exchange rates changes also influences the
operational activities of Thomson. Economic system in Central America is stable it means the
business of tour operator company will not have issue in this regard (Shukla, 2014). Social: People carry their life style on the basis of their own requirement. It means it is
necessary for management of Thomson to focus on products and services design as per needs of
customers. Online booking service also need to be modified as per customers demand to boost
business opportunities.
 Technological: In order to meet the technological changes the business organisation focuses on
various technological up gradation (Shukla, 2014). Management of Thomson uses internet tool
to cut down the costing of booking staff and lead business to impressive level of success.
3.2 Develop strategies to improve responses of travel and tourism businesses in respect to change
In order to provide better responses towards changes the management of Thomson focuses on
diverse strategies. It has been spotted that the number of customers are now more attracted towards
green tourism and sports tourism. In order to meet the key needs of customers the management needs
to focus on product development strategy, market development, use of diverse technological tools,
focus on marketing strategies (Dale, 2001).
In this respect, it can be said that the management of Thomson can focus on diverse marketing
strategies so that better brand awareness can be created among society and influence their perception in
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diverse manner. Other than this, it can be said that if economic system is having an great advancement
then management of Thomson can introduce various new products using development strategy so that
customers can have easy access to diverse tour plans as per their income level consideration (Coles,
2008). Moreover, company can also focus on new market with an assistance of market development
strategies. In this it is essential to ensure that the products and services are provided to customers as
requirements and expectations of market. The another strategies that must be used by Thomson to
respond to the changes include effective marketing mix that will assist in managing the changing
environment. In other aspect, it can be said that the management of Thomson must focus on
development of products and services as per the evaluation of market demand (Middleton, 2012).
Furthermore, the management of Thomson can also focus on change management technique in
order to improve responses of travel and tourism businesses in respect to change. In this aspect, the key
needs of customers and trends of industry also need to be considered as a critical aspect. In the support
of this, it can be said that the cultural aspects can also be taken into account while using change
management technique.
3.3 Justification of developed strategies
It has been spotted that the developed strategies are most beneficial for the development of
travel and tourism sector as it provides ability to develop various innovative products. Innovation in
products and services is advantageous for attracting more customers and lead business to impressive
level of success. In other aspect, it can be stated that the new product development strategy will
facilitate business to provide proper responses to alteration activities (Coles, 2004). In the support of
this, it can be stated that the product development strategy is also suitable for business organisation as
it provides effective products and services that can boost the operational opportunities for Thomson.
With an assistance of new services and products the company can easily increase its market share in
the international market. It is also beneficial to have various advancement in economic system of the
destination (Cooper, 2008). The new product and services offered by the travel and tourism
organization will also result in ensuring or providing wide range of choices or alternatives to the
customers.
Other than this, another strategies adopted by management of Thomson is also beneficial for
better developments within sector. With an improved focus on marketing strategies the business firm
can easily target its potential customers and lead business to impressive level of success.
TASK 4
4.1 Impact of issues and trends that drive change in the travel and tourism sector
In the support of this, it can be said that the there are number of factors that impacts the issues
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and trends that drive changes in the travel and tourism sector. In other aspect, it can be said that the
Thomson is one of leading tour operator firm that provides number of services within travel and
tourism sector. There are wide range issues and trends addressed that influence the business operations
of the Thomson that also leads some alteration in the performance and productivity of the tour operator
(Briedenhann, 2004). In the support of this, it can be said that the internal factors and external factors
changes can also impact the operations of organisation. Merger, acquisition and other internal activities
that associated with the organisation can influence operational activities. On the other hand, political,
social, environmental, changes in trends can also impact the business in diverse manner (Rizzi, 2014).
Other than this, the activities of competitors can also affect the business of Thomson and may
lead business to some failures. In the support of this, it can also be stated that the changes in prices of
alternative sources can also influence the operational activities of Thomson so it is essential for
management to consider it in significant manner.
4.2 Discussion regarding consequences of businesses failing to respond towards market changes
It has been spotted that there are number of changes and issues that has been addressed in
existing market scenario. In other words, it can be said that the changes in trends also impacts the
working of Thomson in diverse manner. Effective evaluation of changes is one of critical aspect for
business organisation. In the support of this, it can be asserted that there are number of consequences in
which businesses organisations has failed to respond as per the change in market conditions (Robinson,
2005). It also impacts the sales and profit margin ratio of organisation in diverse manner. For instance,
while operating in recession market the management of Thomson. It is essential for management of
Thomson to cut down the cost of its products and services. If management will not change pricing of
its products and services as per market scenario then it will impact the business in negative manner.
Other than this, the management of Thomson also needs to focus on various trends that can
influence business in diverse manner. In the support of this, it can be said that the s, lifestyle of people
as well as changes in market demand impacts the operational activities of Thomson (Lumsdon, 2010).
CONCLUSION
As per the above study, it can be concluded that there are number of contemporary issues that
travel and tourism sector faces while operating business in international market. In the support of this,
it can be stated that the contemporary issues also impacts business of Thomson in negative manner so
management must focus on various aspects in order to meet the organisational objectives. It has also
been spotted that the Costa Rica is considered as a destination that covers natural beauty. Moreover, in
current market scenario the customers are more attracted towards eco tourism and sports tourism
activities in order to attain better experience.
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REFERENCES
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Publishers Pvt. Ltd.
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economic growth and job creation. World Economic Forum.
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hope or impossible dream?.Tourism management. 25(1). pp. 71-79.
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Contemporary Hospitality Management. 13(1). pp.30 – 35.
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Butterworth-Heinemann.
Lumsdon, L., 2010. Slow Travel and Tourism. Earthscan.
Middleton, V., 2012. Marketing in Travel and Tourism. 3rd ed. Routledge.
Morrison, A., 2003. The liberation of hospitality management education. International Journal of
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Rizzi, M., 2014. Travel visa impacts on destination choice and perception. Worldwide Hospitality and
Tourism Themes. 6(4). pp.305 – 316.
Robinson, M., 2005. Niche tourism: an introduction. Niche tourism: Contemporary issues, trends and
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Sharpley, R., 2006. Travel and tourism. Sage.
Williams, A. M., 2013. Tourism, risk tolerance and competences: Travel organization and tourism
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Obstacle To Global Peace. [Online]. Available through:
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