Contemporary Issues, Trends, and Strategic Responses in Tourism

This report examines the contemporary issues and trends driving change in the travel and tourism sector, focusing on companies like Snow Deal in the UK. It identifies key issues such as technological advancements, increased security needs, emerging markets, rising fuel costs, and economic fluctuati...Read More

CONTEMPORARY
ISSUES IN
TRAVEL AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Issues which are currently driving change in tourism sector................................................1
1.2 Analysing various issues by using appropriate techniques and methods..............................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing the tourism sector.......................................................................3
2.2 Analysis of current trends using appropriate methods..........................................................4
TASK 3............................................................................................................................................4
3.1 Analyse response towards changes in travel and tourism sector..........................................4
3.2 Strategy Development in relation to the response to alterations buy selected business unit.
.....................................................................................................................................................5
3.3 Justifying strategies that is used in response to modification...............................................6
TASK 4............................................................................................................................................7
4.1 Impacts of issues and trends on driven context of business..................................................7
4.2 Consequences when business gets failed to deal with changes............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
As the world is changing; so is the nature of business in every industry. Travel and
tourism sector is also affected by these changes. This is one the fastest growing industries and
has added to the economy of many countries. This has brought many of the issues that is
contemporary to the business. It is important for the firms working in this industry to have such a
strategic plan that contemporary issues can be encountered (Aragon-Correa, Martin-Tapia and de
la Torre-Ruiz, 2015). Use of effective techniques or tools helps in encountering the these issues.
Snow Deal is one such companies that works in this industry and deals in the business of
inbound and outbound tourism. It is operational in UK. This report highlights the factors that are
affecting travel and tourism industry. It also underlines the issues and trends that are prevailing
in the travel and tourism sector. This report provides the picture of tools and techniques that can
help in tackling these issues.
TASK 1
1.1 Issues which are currently driving change in tourism sector.
There are several issues that in present scenario driving the changes in tourism sector.
The problem gets bigger as this industry is growing at a much faster rate than expected. With the
motive of refreshment, many people these days are opting for spending their holidays at some of
the tourist destinations. These issues need to be handled properly so that the growth of firm can
be maintained at higher level (Becker, 2016). Companies like Snow Deal is facing certain
contemporary issues which are there for almost every firm in the market. These are driving the
change procedure. Some of the changes are as follows: Technological advancements: With the changing technology, it has become important for
companies operating in this industry to use advanced technologies. Technology has
become one of the integral part of their life. This has made possible for the companies to
reach to a large number of people with their travel plans. Use of electronic gadgets has
increased the standards of marketing as well as it has made working procedures easier. It
can be understood in the ways that customers can buy online tickets in advance and may
not have to be present at the ticketing counter for cancelling it. The biggest issue that
these technological advancements have posed on companies is that they have to
continuously invest on technologies which can be a costly issue and one more thing is
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that technology gets almost doubled in every six months. Hence, the need to adopt these
advanced technologies is rapid. Need of increased security: In the current scenario, when the security issues have raised
all around the world, need for increasing security has also increased. Level of crime are
also increasing and hence, the customer’s demand of safety has become a prime issue
(Benur and Bramwell, 2015). It is a challenge because the number of customers opting
for tour packages are also in large number. Even the safest heavens like Las Vegas and
London is under the threat of global terrorism. Hence, companies have to hire more
security personal for the safety of travellers. Emergence of new market: This market is expanding day by day which is an opportunity
for the firms operating in it. This has increased the level of competition for companies
like Snow Deal. This firm has to meet the demands of new customers. This has increased
the situation of resource scarcity for company and increasing profit margins have also
decreased. They have to arrange appropriate resources in order to satisfy the changing
behaviour of users and managing dissatisfaction. Rising cost of fuel: Fuel prices have increased a lot and hence, company is unable to
make low cost plans.
 Fluctuations in economy: It has been seen that a lot of uncertainty in economy of nations
all around the world has been seen. Slowdown in the European and UK economy has
decreased profit margin of company.
All these three issues have higher impact on the operations of Snow Deal and has increased
requirement of making effective measures to deal with it and hence, to achieve sustainable
development.
1.2 Analysing various issues by using appropriate techniques and methods.
All the issues prevalent in tourism sector need to be determined and handled
appropriately. The analysis of issues using adequate methodologies can be highly beneficial.
Tourists love such travel packages or destinations that give maximum return on spending money
and thereby, meeting their expectations (Cohen and Cohen, 2015). Identifying the issues let
companies to think that what steps are needed to be taken so as to tackle them properly. In the
above part of this report, technological advancements, emergence of new markets and
fluctuations in country’s economy as well as emergence of new market has been highlighted.
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The issue of technological advancement is not so big and can be handled by implementing
innovative technologies that are best suitable for the industry. Economic instabilities are such on
which company cannot do any thing much they can only apply better strategies to tackle the
problems associated with it. Emerging markets provides greater scope for expansion and can
generate more financial deposits. Hence, management can use their previous data so as to make
their business strategy. The collection of data can be done by conducting surveys in people and
taking feedbacks of the clients. There are two ways of gathering data i.e. through primary or
secondary sources. In primary method, information is gathered using Questionnaire related to
their experience of trip. Secondary sources like newspaper, online studies or surveys can also be
used. This is effective in understanding the socio-political and economic conditions of different
nations.
TASK 2
2.1 Current trends influencing the tourism sector
Market trends are unstable in nature and get changed as per the course of time. Thus, it
has become essential for enterprises to examine the current trends and changes that are taking
place. Current trends need changes from the basic.. Current trends focus more on visitor’s
behaviour. Like; the tourists in modern scenario are not only visiting particular destination for
the purpose of hanging out there. Some of the current trends are as follows:
Adventure tourism: In modern scenario, taste of tourists has changed and it has
completely differed from the previous times (Forno and Garibaldi, 2015). Many people come to
UK for having adventure. This increases the satisfaction level of customers. Snow deal is
conducting such kind of trip in UK.
Sport tourism: This is barely a new concept added in the tourism industry. It is attracting
many people in the UK and helps them in visiting some other destinations. Olympics and Para
Olympics have increased the number of travellers coming in UK.
Educational tourism: There is a large increase in the number of tourists that are visiting UK for
the purpose of having education. Like the students of Art or History travels to UK to study the
culture and experience the traditions in present and past times.
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source 1: Inbound tourism forecast, 2017
This forecast is signifying that Britain's inbound tourism is incraesing day by day. Every year the
growth has been noticed. This has resulted due to the fact that many new trends have emerged in
UK like the adventure and sport tourism. It as also been noticed that people spendings have
increased and has expanded up to 14% which is a great change.
Companies like Snow Deal has to grab this opportunity and start new series of campaigns
that highlights this kind of trends.
2.2 Analysis of current trends using appropriate methods.
Covered in poster.
TASK 3
3.1 Analyse response towards changes in travel and tourism sector.
Change in the business environment effect their working as well as operations both.
Many enterprises resist to respond on the changes which is not beneficial in the long run.
Initially in travel and tourism sector many business units are using traditional approach towards
understanding customers behaviour. This lacks interaction with customers and hence they can
only reach to limited users (Current Issues in Travel and Tourism. 2017). But in the modern
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business environment organisations use technology for selling their plans as well as conducting
their promotional campaigns (Kim and Ritchie, 2014).
International Airlines group needs to determine the changes that is taking place in their
sector. This is done by conducting PESTLE analysis. These factors have influenced the business
in almost every country and it differs from nation to nation. Airlines group has to organise this
process properly so that they can respond to this dynamic environment in an appropriate manner.
Political:Their are many change in the policies related to factors like taxation, fuel prices, Visa
rules that have been made by the government in UK. This had effected the tourism market in a
larger way. The UK government policies have influenced the Airlines market on a larger scale as
their profit margins have reduced in last few years.
Economic: UK economy is one of the safest economy in travel and tourism sector can flourish.
There had been fluctuations in the Tax rates which has reduced the stability of the profit making.
Airlines also have to determine that rate of the currency so that management can initiate business
over there. If the value of the currency is low then group can take some strict steps for increase
their profit shares.
Social: Airlines group needs to determine the taste and preferences of tourists so as to deliver
services that are according t their expectations. It helps managers to create more and more profits
by underlining the consumer perspective. This change in the perspective has made vast impact
on the management and business. People are opting for the services that are avilable at lower
cost.
Technological: In transportation especially Airlines industry has witnessed a large modifications
in the technology (Luh Sin, Oakes and Mostafanezhad, 2015). The advancements have increased
the safety of planes and passengers but have also increased the burden on the company's revenue
generation capacity. The advance bookings that too online have made the service more user
friendly.
Legalities: Laws related to the travel industry has changed especially the ones that are associated
with the treatment of consumers. Consumers got empowered due to the present laws as company
needs to deliver what it has promised to consumers since they are paying for the same.
Environment: Since the environment is changing all around the world hence it is pressurising
the tourism industry to manage the tourist spots that are related to the natural beauty. Any
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damage to it may reduce the attractiveness of it and hence can affect the business of environment
over there.
All these factors have positive as well as negative impact on the business of the Airline Firms.
Changes have made negative impact on the business.
3.2 Strategy Development in relation to the response to alterations buy selected business unit.
Every change affects the operations and working of the business. The intensity of the
impact is based on how the change process have been implemented. By making business strategy
in organisation enables them to deal with all the made changes. Business organisations have to
formulate their long and short term goals and objectives. The change process effectiveness needs
to monitored in a due course of time (Mariani and et. al., 2014). Apart from this they have to
review their mission and Vision on timely basis. Other than this creating new product or services
can be major factor that could support in dealing with the changes that are present or will come
in near future.
International Airlines groups is one of the largest which ahs a fleet of around 500
aeroplanes that is flying in over 250 destinations. British Airways and Lberia are two
organisation that generates maximum profit than any other Airlines company.
 British Airways: It is one of the biggest brand name in UK and capturing the largest part
of the market. The changes and demands are part and parcel of their business. As the
marketing situations are ever changing and hence they have to create new services and
products like introducing new technological feature in market. Other than this they also
review their gaols and mission on a regular basis so as to ensure that firm is working in
appropriate direction or not. Strategy formation will support them in responding to the
alterations in effective manner (McKercher, 2016). Apart from this it enables them in
grabbing more and more opportunities present in the market. With the expansion of
market Britis Airways have focus on the needs to large number of customers.
 Lberia: Another part of International Airlines Group is Lberia Airlines that needs to
reframe their strategies as per the dynamic business environment. They can make use of
4p's of marketing as they belong to service marketing company. In this they can set their
price range according to the perspective of the consumers and can adopt appropriate
promotional style. New product or service development helps to facilitate larger part of
the market tat too properly.
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Both these companies supports international Airlines Group in dealing with the changes
in due coarse of time. This helps in making product differentiation from their competitors. These
strategies are helpful for company in their activities and responding towards changes.
3.3 Justifying strategies that is used in response to modification.
There are several strategies that are applied by the International Airlines group so as to
respond towards the impact that is posed by modifications in the business. By using and binding
all of them properly helps them in retaining their existing consumers as well as reaching to wide
range of potential customers (McWha and et. al., 2016). Strategies supports them in achieving all
their set targets and objectives that too on time and hence responding to the situation alteration
is easy and appropriate. Both business units have use respective strategies so as to deal with the
made changes that will effect tourism business as well as the whole industry. These issues are the
part of the business like increment in tax slabs as well as change in customer perspective etc. All
these modifications came into existence in due coarse of their time.
 British Airways: This firm has made a plan to produce and generate more and more new
services into the target market. This helps them in reaching to a specific segment of the
market and hence satisfying them with their services. Apart from this they need to
prepare their vision and mission as well as objectives that can be achieved in the desired
time frame. This will ultimately help it in tackling various situations. By evaluating
external market situations gets determined in this regard PEST analysis can be helpful.
The plan must be based on the fact that offering wide product range creates best
opportunities in market.
 Lberia: This company is using market mix so as to achieve their objectives and targets
within a desired time frame. They also make use of advanced technological ffeatures as
well as differentiated product range so that optimum customer satisfaction can be
achieved which is beneficial for the future of the firm.
TASK 4
4.1 Impacts of issues and trends on driven context of business.
There are many factors that influences the travel and tourism sector either in direct or
indirect way. Myla is a travel agency which is operational in UK with around 10 offices. They
are much popular brand name and are providing best services to their clients (Mowforth and
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Munt, 2015). As their growth is very quick in the market and hence providing pat way for many
other companies to achieve the same. The impact is analysed under:
 Technological issue: The aspect of technology is estimated to be the most important
scenario. As the number of customers that are connected to technological means are very
high so companies have to make use of these or either they will become last in the race.
 Employment issue: This sector is providing employment to large number of people as is
estimated to expand in the coming future. With the increase in the size of market that
various companies are estimated to be captured is increasing and hence they also have to
take care of all the employment regulation in UK (Oviedo-García, 2016). There are many
people that are getting attracted to the fancy jobs like this and hence there mobilities have
also increased.
 Holiday trends: Different customers are planning various short and long term holidays.
Company like Myla is giving focus on the fashion that is prevailing in this industry,
customised honeymoon packages and hence these packages are attracting larger number
of consumers.
 Stakeholder issues: In present time many airline companies are not convinced in respect
of specific destinations and hence they increase their share amount. It is difficult for the
companies to negotiate with Hotels as they do not offer special facilities. Hence this
industry must be based on some individual otherwise it can be challenging for them to
achieve their mission.
The impact was witnessed in the case study that Thomas cook has shut down many of its
stores and has thrown out its numerous employees. So as to tackle its financial deficits and great
loses and hence they are applying several strategies to fight with the situation.
Apart from these there are certain impact of changes that is based on four aspects like Mergers;
in which two companies can combine their business (Polezzi, 2017). Acquisition where the
bigger firm can take over the small tour operators assets, liquidation and formation of Consortia.
4.2 Consequences when business gets failed to deal with changes
If there is alternations in environment then it can produce a huge impact to the business at
the international level. Every firm is trying to do their business in a best possible way that too
being more eco-friendly. In the present case study it can be seen that bigger are adversely
affected in in the present Scenario. The consequences are reflected by following:
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 Reduction in prices: In order to attract large number of customers the companies are
making cost cuts in the marketing as well as other operational activities (Reisinger,
2015). This increases the possibility of making huge losses in the business of Myla,
Thomas Cook and others.
 Change in climate: This is major issue and has major impact on this industry. As it cannot
be predicted earlier hence may lead to seasonal losses that can be large.
 Environment friendly locations: In present times individuals are giving more emphasis
on travelling to the locations that are environment friendly. Companies like Thomas cook
have already started using solar panel technology as well as selection of the places that
are peaceful.
 Reduction in sales and profitability: The profit margins and Revenues have reduced
significantly which is not a good sign for the company's future.
 Attitude change: It can be seen that there has been considerable changes in the attitude
with respect to services, products and business image (Standing, Tang-Taye and Boyer,
2014).
 Loss of share in the market: When changes are done and business gets failed to adapt
these, it leads to loss of market share for the company of the scale of Thomas Cook it is a
big problem.
 Reduction in stakeholders: Any failure may lead to reduction in the amount of
stakeholders that are associated with the company. This decrement can be dangerous for
the firm at the times of economic crisis.
In the present case it has been illustrated by the facts its 168 stores has been closed down
and has sheded approx 1100 employees and is planning to increase this number in the coming
three years. This due to the fact that company has made a loss of around 590 million pounds in
UK.
CONCLUSION
From the above based report it can be concluded that there are several issues that are present in
the travel and tourism industry and it is important for the companies to to understand these
issues. The firms operating in this industry needs to analyse its external environment so that they
can apply various strategies to tackle the situations. These trends and issues are drivers of
changes that are going on in the industry as well as the company. It can be seen that changes
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have impacted heavily on these companies and has made their growth process slow. Apart from
this it can also be understood that in UK the condition of big companies such as Thomas Cook
are influenced by the emergence of firms like Myle as their own business is facing many kinds of
looses. It is important for the companies to apply proper tools so that they can handle all these
situations and their sustainable growth can be ensured.
REFERENCES
Books and Journals
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015. Sustainability issues and
hospitality and tourism firms’ strategies: Analytical review and future directions.
International Journal of Contemporary Hospitality Management. 27(3). pp.498-522.
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and Schuster.
Benur, A.M. and Bramwell, B., 2015. Tourism product development and product diversification
in destinations. Tourism Management. 50. pp. 213-224.
Cohen, E. and Cohen, S.A., 2015. A mobilities approach to tourism from emerging world
regions. Current Issues in Tourism. 18(1). pp. 11-43.
Forno, F. and Garibaldi, R., 2015. Sharing Economy in Travel and Tourism: The case of home-
swapping in Italy. Journal of Quality Assurance in Hospitality & Tourism, 16(2), pp.
202-220.
Kim, J. H. and Ritchie, J. B., 2014. Cross-cultural validation of a memorable tourism experience
scale (MTES). Journal of Travel Research. 53(3). pp. 323-335.
Luh Sin, H., Oakes, T. and Mostafanezhad, M., 2015. Traveling for a cause: Critical
examinations of volunteer tourism and social justice. Tourist studies. 15(2). pp. 119-
131.
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Mariani, M. M. and et. al., 2014. Managing change in tourism destinations: Key issues and
current trends. Journal of Destination Marketing & Management. 2(4). pp. 269-272.
McKercher, B., 2016. Towards a taxonomy of tourism products. Tourism Management. 54. pp.
196-208.
Baker, D. M. A., 2014. The effects of terrorism on the travel and tourism industry.
International Journal of Religious Tourism and Pilgrimage. 2(1). p. 9.
McWha, M.R. And et. al., 2016. Writing for the anti-tourist? Imagining the contemporary travel
magazine reader as an authentic experience seeker. Current Issues in Tourism, 19(1), pp.
85-99.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and
new tourism in the third world. Routledge.
Oviedo-García, M. Á., 2016. Tourism research quality: Reviewing and assessing
interdisciplinarity. Tourism Management. 52. pp. 586-592.
Polezzi, L., 2017. Translating travel: Contemporary Italian travel writing in English translation.
Routledge.
Reisinger, Y., 2015. Transformational tourism: Host perspectives. CABI.
Standing, C., Tang-Taye, J. P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing. 31(1).
pp. 82-113.
Online
Current Issues in Travel and Tourism. 2017. [Online]. Available through:
<http://www.tandfonline.com/doi/abs/10.1080/21568316.2012.748688>. [Accessed on
26th October 2017].
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