Contemporary Issues Driving Change in Travel and Tourism Sector

This report provides an in-depth analysis of contemporary issues affecting the travel and tourism sector, focusing on the impacts of technological advancements, environmental awareness, and political changes. The report examines key issues such as the rise of niche markets, changing traveler preferences, and the influence of political and economic factors on tourism. It assesses the impact of these issues on businesses like TUI Group and British Airways. The report also explores tourism trends like leisure and grey tourism, along with strategies for addressing these issues, including the role of all-inclusive hotels and short breaks. Furthermore, the report analyzes the current situation of tour businesses and proposes strategies for adaptation and growth, offering a comprehensive overview of the challenges and opportunities within the tourism industry. The report provides a detailed overview of the factors impacting the tourism industry, and how businesses can adapt.

CONTEMPORARY ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a. Issues currently driving change in the travel and tourism sector........................................3
b) i. Analysing different current issues impacting the tourism sector....................................5
b) ii. Analysing the issues.......................................................................................................6
TASK 2............................................................................................................................................6
a. Two trends in tourism is the emergence of niche markets.................................................6
b. Current trend in Costa Rica................................................................................................9
TASK 3..........................................................................................................................................11
a. Analysing the current situation of two main tour businesses...........................................11
b. Proposed set of strategy....................................................................................................13
c. Justification of the strategies............................................................................................14
TASK 4..........................................................................................................................................15
a. The issues and trends that drive change in the travel and tourism sector.........................15
b. Exploration of contemporary issues in travel and tourism...............................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Contemporary issues are determined as the set of factors that are highly affecting travel
and tourism sector. These issues are related with the traveller’s market and concern for exploring
the tourist places and destinations. In the current era of globalisation, tourism sector has become
one of the most leading and emerging markets of industry. Thus, it has attracted many
individuals and corporate to invest their time and money in this sector. It is extremely beneficial
for them to achieve set of results, achievements and profits (Akkoyun, 2012). Moreover,
travelling market has addressed numerous forms of trends which are generally adopted by the
travellers and their related aspects. Structuring of the tourist trends allows visitors to ascertain a
path or direction of moving on a destination.
In that respect, involvement of participants like hotels, restaurants, theme park, resorts,
tour operators, airline companies, etc. in the tourism sector are highly necessary. Similar to this,
report is providing huge information about the significance of identifying and overcoming the
issues faced by tourist market and their representatives which are to be addressed and evaluated
by them in order to direct the business to a greater level of achievements.
TASK 1
a. Issues currently driving change in the travel and tourism sector
Present market of travel and tourism is getting affected with the factors involved in the
sector. It is evident that this impact is generated due to the issues which are linked with
traveller’s market. Thus, it is essential for the members of travelling sector to determine the
number of issues and level of influence charged by them. Similar to this, tourism sector of
London is also addressing the impacts of such contemporary issues which are extremely
influencing their aimed market and their participants (Anderson, Zhan and Scott, 2004). The
level of consequences created and developed by these issues is directly linked with the
probability of earning revenues and gaining market share. Moreover, following are the issues
which are presently driving change in travel and tourism sector of London: Technological advancements – The rising adaptability of new and innovative
approaches and techniques are highly impacting the tourism market and business of
firms employed in the sector (Pasqual, Padilla and Jadotte, 2013). It is witnessed that
London has become one of the most preferred destinations by travellers of national and

international market. Thus, it has become an emerging tourist place which is liked by
most of the visitors. Moreover, this rise of attention forces great pressure and emphasize
on factors that are providing assistance and their services in the concerned sector like
increasing investments, offering advance facilities, providing 24*7 resources, etc.
Businesses of tour operators like TUI Group is mostly stricken by these advancements
and thus, these companies have to be updated with the current prevailing technology in
the tourism sector (Euromonitor highlights four key trends for UK travel and tourism
sector. 2015). Other than this, giving the option of online booking and ticketing is also
ascertained as one of the best measure or aspect for technological advancement. The
main benefit of employing technological tools is that it reduces the time period required
in booking but on the other hand number of staff members required in carrying out
operations reduces. Increased environmental awareness – It is addressed that the increasing awareness for
developing healthy environment and implementing better dimensions of naturalism
generates boundaries for the tourist market and their aspects. This involves identifying
set of activities and practices that maintain the friendliness in environment (Hilgert,
Hogarth and Beverly, 2003). For instance, business of airline companies like British
Airways is affected from the implication of acts that forced them to control the carbon
emission from their aircraft and other related machineries. Considering the current era of
globalisation, as per which people have become more environment freak and are highly
conscious about maintaining level of nature and ecology. Thus, factors of tourism
industries should also implement approaches and methods like planting trees, conserving
environment and promoting natural factors, etc. for meeting such requirements and
needs. Focusing on environmental awareness services enhances overall cost of the tour
operator and in turn has adverse impact on the company.
 Political changes – Further, set of issues also include the indirect impact of rising
changes in political parties, implications of policies and regulations and instability in
governmental relations which are one of the main influences of political aspects. It is
evident that the market of tourists and their concerned factors are mainly affected by the
variation in political elements (Bartram, Brown and Fehle, 2009). However, London has
maintained relations with its entire neighbouring countries and other respective nations

as well. But still, tourists generally investigate and attain fruitful information before
planning to visit the place. In addition to this, it is ascertained that tourist market is
highly influenced by the alteration in government structure and legal regulatory model.
A continuous modification in the construction of institutional and political law can
impact the business of tourist sector and traveller’s emotions that are likely to visit the
destination (Berne, Garcia and Mugica, 2012). In London, documentation process and
activity of giving Visa acquires more time and money from the tourist.
b) i. Analysing different current issues impacting the tourism sector
Two issues which are currently developing in travel & tourism sector of London are:
There are numerous issues that are generally faced by tourism sector which has a direct
as well as indirect link with the destination and its related factors. It is necessary for the
responsible bodies and parties to identify current issues and accordingly, take actions in order to
reduce their level of impact and overall presence from the market (Ployhart and Moliterno,
2011). In that context, it is necessary for the concerned aspects to adopt the methods that are
helpful in determining the form of issue and their level of impact. For this, they need to
implement the whole structure of process by following the stated instruction step by step.
Similar to this, London's tourism sector should also address the current set of issues faced
by their clients while the destination. They should consider the strategic methods and techniques
for identifying the issues related with tourist sector which would start with conducting an
analysis by filling up the questionnaire by group of 1000 tourists and determine the issues which
are: Rising tourism trends – In the present tourism market, the types of trends has been grown
by an increasing rate that enables the travelling industries to develop and promote
tourism. It enhances them to address many reasons that could be used to attract large
number of tourists and travellers towards them. For instance, adventure and sports
tourism has gained a high level of growth and support from the tourist that eventually
provided sources to the industries and destination to improve them and become better in
gaining more clients.
 Changing preference of travelling – The process of selecting a set of destinations to be
visited by travellers is directly connected with the nature, attributes and preferences of
travelling members. These factors mostly determine the types of places to be visited and

explored by them. In case, a honeymoon couple prefers London as their favourite
destination for visiting and on the other hand, pleasure travellers who prefer beaches,
forests and adventure tourism avoids London. Thus, a tourism destination is mainly
capable of attracting the attention of travelling parties or a specific segment (Hudson,
2008).
b) ii. Analysing the issues
The reason for the generating such issues is the rising population of youngsters and
students that are between the age group of 15-25 years and 25-35 years. They have an efficient
forms of talent that encourage them to explore the world. The specified issues are generally
addressed by the fluctuation in the political parties ruling the location, thus, changes in the
government bodies creates new implications of policies and regulation which develops a new
area for tourist. The changing preference of the tourist are also caused by these factors and the
attractiveness of the destination.
Conclusion
These set of areas are to be concerned by the tourists and accordingly needs to generate
the plan of visiting the places (Knollenberg and et. al., 2014). It is witnessed that the set of
fluctuations in the political framework and destination preference generally leads to impacts and
the elements responsible for this impact are:
 Taxation policies and procedures
 Foreign Exchange policy
 Documentation processes and Visa allotment dates
 Facilities provided to the travellers
 Level of attractiveness and beauty of the places
TASK 2
a. Two trends in tourism is the emergence of niche markets
Types of tourism trends prevailing in London Leisure tourism – It is a kind of tourism where people visit one or more destination
without any specific reason or purpose, but for entertainment, enjoyment and amusing
themselves and their partners. A leisure tourist could be of national and international
market but would have a clear thought of exploring the place. It has brought a lot of

change in the tourism sector, as the tourist generally visiting the place for relaxing,
energising and entertaining themselves (Khosrowpour, 2002). Thus, gives a great source
of opportunities to the entire market to tourist to develop many ways of increasing their
market share and revenue level.
 Grey tourism – It has been ascertained that the London is addressing the form of tourism
where the old age persons are gradually visiting and exploring new places in order to
entertain themselves and participate in most of the tourist activities. As per this tourism,
the travel companies and accompanied agents specifically focuses on motivating and
attracting old age people to visit the host destination. It is proved that the old age people
are having higher form of disposable income, thus, they are capable of spending more
capital on leisure time and happy lifestyle.
Ways of influencing change in the sector within the stated trends All-inclusive hotels – It is addressed the level of participation for the hotel industries in
the tourism sector is highly impacting the overall market and its trends. The attractive
packages offered by them are the main factors that retains the attention of the individuals
travelling to the destination. In addition to this, the price range of the packages are also
determined as the change implementing factor (Janoschka and Haas, 2013). It is
necessary that the entire team of hotels and their council should focus on offering the
forms of services and facilities as specified in the packages. Along with this, they could
offer a range of packages that includes each and every cost which a tourist have to pay
while travelling. The description of all-inclusive hotels' packages should include the
charges for meals, transportation to and from airport, accommodation charges and any
other related fees. This attracts the tourist which is basically looking for a comfortable
stay with a defined budget. All inclusive includes large number of services which takes
into consideration minimum lodging, three meals daily, soft drink, gratuities, most
alcoholic drink etc. It is a kind of convenience provided to the customers. Pricing policy
of all inclusive hotel is different where one common price is decided which is affordable
and meet with the requirement of customers. Short and weekend breaks – A tourist destination mostly faces high level of tourist during
the weekend time when they have an off from their offices, businesses, job, schools,
colleges. This period of break forces them to take a leave from their routine lifestyle and

explore a place in order to be energised, relaxed and motivated (Korstanje and Clayton,
2012). It is evidenced from the market research that the period of short and weekends
breaks generally decides the selection of the destination/s to be visited by the traveller/s.
It has become the current trend which is highly preferred by the national tourists. In that
respect, the tourist industries should offer two types of packages which would be based
on short time basis and weekend days. The short breaks offers must include hour based
rooms with no breakfast or meal services which would eventually reduce its price. This
has increased the number of tourist destination and expanded the areas of stag and hen
party sector.
 Specialist operators – It is assessed that the number of tour operators and their offered
holiday packages are also motivating the tourist to visit new places and attain the placed
services. This is examined from the survey and the report that travelling as per the offered
packages has become a new trend of exploring, moving and visiting new sets of
destination (Machlouzarides, 2010). The specialist operators who would offer some
special packages are generally an acknowledged party that would has the information
about the special sites and places over the destination. The charges of such packages are
mostly high as they have some uniqueness and individuality. The main difference in
between specialist tour operator and special tour operator is that former one considers
together packages with combination of travel and accommodation. Moreover, later one
focuses on delivering special tour packages to the customers as per their needs. Special
interest operator offer holiday related to special interest such as bird watching,
photography and in small groups they stay together.

b. Current trend in Costa Rica
Considering the deprived case study of Costa Rica, it has been examined that the cited
place has a wide extent of natural environment which includes parks, animals, creatures, etc. and
has maintained the level of cultural beauty. This set of features has helped the aspects of Costa
Rica in attaining better results from the tourist market and travellers. Moreover, the structuring of
eco-tourism is focused on developing boundaries of natural beauty and forests that are attracting
the attention of greater number of tourist (Petrova and Mason, 2004). It has been defined that the
nature, scope and behaviour of the traveller/visitor are directly links with their overall preference
and interest to visit the destination. In that condition, the appropriate information is to be
ascertain by the help of conducting market researches and assessments in order to determine the
appropriate strategies of attaining greater impact of tourism sector. This process of assessing the
information is beneficial for the aspects of Costa Rica in determining the dimensions of current
trend i.e. ecotourism prevalent in the country.
Illustration 1: A view of beach from Ecolodge of Costa Rica
(Source:Lima and Martins, 2012)

In building the pillars of ecotourism in Costa Rica, their residents and government has
implied greater form of efforts that has enabled them. Moreover, Costa Rica has accepted the
defied set of these opportunities and has created wide range of lodging and
other activities in order to encourage tourists and travellers to visit the country. This implication
of the Costa Rican government in enhancing their level of generating economy and developing
the country as well as providing benefits to the residents of the country which includes
educational assistance and increasing their standards of living (Le Serre and Chevalier, 2012).
However, these set of activities were examined as cautious in the developing the boundaries of
ecotourism such as forcing damages on the environment, reducing level of resources and
overcrowding. The environment is considered as the main strength of the country and determine
as its greatest priorities.
For this, they have built lodging for the tourist that won't destruct or reduce the level of
naturalism of its surroundings. Furthermore, the only thing that would decrease an individual's
interest in dealing their ecolodge is its price. The renting price of ecolodge tend to be quite
expensive thus, it is evident for the government to offer cheaper packages for spending the
holidays and give the opportunity to the tourist to avail the entire facilities, natural beauty to the
Illustration 2: Natural Waterfall in Manuel Antonio, Costa Rica
(Source:Mahony and Morrison, 2003)

people visiting Cost Rica (Maitland and Ritchie, 2009). Along with this, they are forced to
manage their entire set of managerial activities which includes developing new ways of
attracting tourist and travellers by implementing techniques like promoting, advertising, fairs,
carnivals, etc.
TASK 3
a. Analysing the current situation of two main tour businesses
SKI MIQUEL – A Tour operator
SWOT analysis
 Strengths
◦ Attaining high growth rate and holding strong position in market.
◦ Company has skilled team of workforces and effective leaders.
◦ It is having strong level of generating capital (Mason, 2008).
◦ The high number of packages for destinations sites which gives world-wide
relevance.
◦ A good knowledge and overall information of each and every destination.
◦ Great past time work and possibilities to attract the public
 Weaknesses
◦ Facing greater level of competition from similar other tour operators.
◦ Less effective cost structure and unable to specify better strategies.
◦ Rising number of entrance for small companies.
◦ Their staff members have less knowledge of new destinations (Morgan, Pritchard and
Pride, 2011).
 Opportunities
◦ New sources of acquisitions
◦ Effectiveness of gaining higher profits.
◦ Projected capital
◦ Increasing worldwide presence and recognition.
◦ Improving the understanding of knowledge over various destination by conducting
training sessions.

◦ Developing the links between tourist and sacred sites which are becoming new
destination (Buhalis and Crotts, 2013).
 Threats
◦ Rising turnover of workers and employees increases the price
◦ Government policies and regulations
◦ Technological advancement
◦ Higher level of competition lowers the rate of profitability
◦ Lack of scientific education/cognizance from the policy makers
◦ Addressing the sources of increasing the funds
PEST analysis Political factors: The key political factors that are creating greater level of impacts on
travel and tourism sector of the tour operator in form of implementing high taxes, fees
and duties. The implication of changes in visa policies and procedures by every new
ruling party is also affecting the operations of Ski Miquel (Conrady and Buck, 2012). The
intervention made by the political bodies forces great form of impacts on their business.
Political headwinds, policies framework in tourism market and lack of funding are the
main factors to impact the functioning of organisation. Economic factors: The tourism sector is highly affected by the incidences like economic
crisis and inflation. On the other hand, Ski Miquel is considered to be the most trusted
company that offers high quality holiday package. Thus, it needs to maintain the price
level of their packages (James, 2002). It is evident that the increasing variation in
economic implications like packages fees, tickets, accommodation charges and facilities
taxes are the most affecting elements of enterprise's development. Social factors: The implementation of changes in travel and tourism sector is also
expedited by social factors such as culture of the city, religious beliefs and standard of
living lifestyle could impact the business of the Ski Miquel. The likes and dislikes of the
visitors are the generally addressed as the main reason of reducing the market awareness
of the destination. However, rising preference of eco-tourism and adventure tourism can
be determined as the promoting factors.
 Technological factors: The technological factors in context of Ski Miquel includes online
bookings, mobile applications and ticketing status for different destinations as well as