BTEC HND Travel and Tourism: Contemporary Issues Analysis Report

This report delves into the contemporary issues affecting the travel and tourism sector, examining the impact of technological advancements, political instability, and socio-economic factors. It analyzes how these issues influence the industry, specifically focusing on the responses of International Airlines Group. The report covers the impact of terrorism, political instability, and economic crises on the tourism sector, supported by illustrations and data analysis. It outlines current trends, analyzes a niche tourism market, and develops strategies for businesses to adapt to market changes, including cost reduction, infrastructure upgrades, and customer service improvements. Furthermore, the report assesses the consequences of businesses failing to respond to market changes and provides a comprehensive overview of the challenges and opportunities within the travel and tourism sector. The report is a comprehensive analysis of the tourism sector, providing valuable insights into the challenges and opportunities facing the industry.

Contemporary Issues in
Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving changes in the travel & tourism industry...................................1
1.2 Discuss current issues using appropriate resources in tourism sector..............................2
TASK 2............................................................................................................................................6
2.1 Outline current trends influencing change in the travel and tourism sector....................6
Analysis-.................................................................................................................................7
................................................................................................................................................8
2.2 Analyse one niche tourism market ..................................................................................9
TASK 3 ...........................................................................................................................................9
3.1 Response of International Airlines group to the current changes in the industry:...........9
3.2 Develop strategies to International Airlines Group businesses......................................10
3.3 Give justification for strategies for International Airlines businesses could respond to
change. .................................................................................................................................12
TASK 4..........................................................................................................................................13
4.1 Outline impacts of issues and trends that drive change in the travel and tourism sector13
4.2 Outline consequences of businesses failing to respond to market change.....................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

Illustration Index
Illustration 1: Visitor Numbers and Total Spend by Sector ............................................................4
Illustration 2: Domestic Tourism by Region in UK.........................................................................5
Illustration 3: Number of Overseas visits to Britain - trend and forecast........................................6
Illustration 4: Annual spent of Overseas visits to Britain - trend and forecast................................6

INTRODUCTION
The travel and tourism sector is the biggest source of revenue generation for the
economic growth of the country. The organisation need to adapt changes to the market.
Competition is increasing day by day and as such companies are trying its level best to conquer
the demand and needs of the consumer. If demands and needs of consumers are attained than
company will flourish in its operations. Customer's want good packages at low prices which
achieves their level of satisfaction. Organisation will have negative effect like terrorism effect,
environmental effect and economic effect (Akkoyun, 2012). As such, it will hinder the growth of
the organisation. Taxation is another issue which has a negative effect on the industry. Various
taxes are levied like transportation tax, luxury tax etc. which limits the growth of the sector. This
also hinders the stability and economic growth of the country.
TASK 1
1.1 Issues currently driving changes in the travel & tourism industry
1. Technological Advancement:
Technology is currently playing a major role in tourism &travel sector. With the growing
advancement of technology & introduction of many online holiday management & travel &
tourism provider website has increased the attention of a tourist but this technological
advancement has adversely affected the local holiday planners. The method of attracting a tourist
for a manual booking of travelling tickets & rooms in hotels had been a major outbreak for local
vendors & tourism service providers.
Also, cyber security & online data privacy is been a major issue in travel & tourism industry.
The every travel business plan holds a tourists personal details like name, bank accounts details,
accommodation details etc. management of such a important & vital data with safety is a major
issue for tourism service provider.
2. Political factors:
With a rise in competition among various countries to prove themselves as a superpower may
lead to political turbulence in a country, thus leads to have an adverse effect on the travel &
tourism industry. Customers or in general, tourist avoid visiting a place with political
disturbance. Also, the safety of a tourist became a liability of tourism & travel service provider.
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Failing to which not only affect the goodwill but also reduce the tourist count visiting a place
thus causing a major impact in tourism industry.
Apart from this, the change in employment & immigration policies & laws, treatment with
immigrant posted employees, uncertainty in the foreign currency exchange, behavioral change in
purchasing power by the foreign customer had also played a crucial role in effecting the travel &
tourism industry.
3. Socio-economic factor:
Social factors has included various factors such as language barrier, lack of efficient & good
tourist guides, differences in mindsets of tourists & local public, cultural background etc. it can
either be effected due to any sort of political factors (Boo and Bernick, 2013). The travel &
tourism industry has to look after the availability of good & efficient tourist guides, & gaping up
the differences between tourists & local authorities, if any. Also, the industry has to check that
proper information & resources are been provided to the tourists so that they can know about &
enjoy their visit to a tourist spot more effectively.
4. Economic factors:
It includes absence of proper management of a tourists' money. The uncertainty of the
exchange rates cause a major trouble to tourists, as well as, to travel & tourism industry. With a
better exposure to technology & global economy, the tourists have become more money & cost
conscious. They want a complete value for money experience for the money provided to the tour
operator (Hilgert, Hogarth and Beverly, 2011). Also, with introduction to all inclusive & no
hidden cost tour packages, tourist has become aware of the exclusive services provided.
1.2 Discuss current issues using appropriate resources in tourism sector
The tourism sector is the fastest growing sector which has leading revenue generation for
the growth and stability of the country. The current issues which impacts Thomas Cook company
are as follows:
2. Terrorism in Turkey
Terrorism has badly affective tourism in many countries of the world for example
Indonesia, India, Pakistan, Thailand, France, Belgium, Spain, Turkey, Egypt including the
United Kingdom and USA
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Terrorism had an adverse effect on the economy of Turkey because of the terrorist attacks and
suicide bombings many tourists decided not to visit the country.
. The terrorism exploits the tourism sector as no travellers' want to travel to terrorist attack
country. Terrorists use various weapons by which sincere people suffer a lot. It results in
negative impact on the country and spoils its name in the world market.
Terrorism mostly attack urban population as a result tourists who travel are being
targeted by them. The safety and security is essential for company and travel sector as people
will not visit for holidays in their country where security is least prioritised. Hence, terrorist
should be thrown out of the country so that people visits to spend leisure time. This will help
company to achieve its objectives and goals.
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Due to terrorism the tourism in Turkey declined up to 35% in the year of 2016.
The country had terrorist incidents in the month of April and May 2016. The country has taken
drastic steps to restore the confidence of tourists by establishing Tourism Police and due to this
effort the country have more visitors this year as compare to last year 2016.
3. Political Instability link to Economic crises
If any country is politically unstable then it does have adverse effects on economy. As
people go on strike and protest there is no business activity. Political instability in Egypt has
affected tourism in a negative way.
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The economic effect has impact on tourism sector. The tourism industry provides sustainability
and stability of economic growth to host countries as well as tourist's country. It is quite helpful
for developing nations as it provides them, revenue in good amount which is required for its
development of economic growth (Knollenberg and et. al., 2014). However, there are hidden
costs to travel industry by which poor countries are not able to cover its costs. Increase in
demand from the tourists make the prices of goods and services to gradual hike. As a result, daily
needs of people remain affected and bring instability in economy.
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TASK 2
2.1 Outline current trends influencing change in the travel and tourism sector
Illustration 1: Visitor Numbers and Total Spend by Sector
(Source: UK TOURISM STATISTICS 2015, 2016)
Analysis-
This also shows that business of tourism has expanded and total visitor has increased.
They have spent on sector quite effectively which helped company to generate revenue.
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Il
lustration 2: Domestic Tourism by Region in UK
(Source: UK TOURISM STATISTICS 2015, 2016)
Analysis-
The regional tourists figure are also good. Most people who have visited is Yorkshire &
The Humber. The income which tourists has spent most in the region of UK is West Midlands
and Wales consecutively.
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Illustration 3: Number of Overseas visits to Britain - trend and forecast
(Source: 2017 inbound tourism forecast, 2017)
This data shows that 39.7 million visits were obtained in the year 2017 which is up by 6
% then in 2016. This shows that UK companies are effective in its function. They are garnering
more of tourists in the country and generating more revenue.
Illustration 4: Annual spent of Overseas visits to Britain - trend and forecast
(Source: 2017 inbound tourism forecast, 2017)
Analysis-
The forecast is also much larger in 2017 year than in year 2016. It shows 6 % increase in
inbound visits to the country which is remarkable from the point of view of the company and for
the nation. This figure is increased from past several years which is showing its efficiency.
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2.2 Analyse one niche tourism market
Covered in Poster
TASK 3
3.1 Response of International Airlines group to the current changes in the industry:
To Technological Advancements:
With the growing advancements of technology, the airlines' industry is also deeply
affected. Gone are the days when the tourist have to manually visit an airport to book an air
tickets. With the globalization & advancement of internet, now a person can book air tickets
from his/her home, office & even from a smartphone. So the airline industry has to cope up with
this technical advancements. Companies like Jet Airways, Spice jet etc. have collaborated with
many travel & tourism management sites to attract the customers on larger base (Mahony and
Morrison, 2010). Also, advancements in infrastructure plays a key role in meeting up with the
growing expectations of the customers of Airline industry. Better lobbies, free WI-Fi, & opening
of outlets of major brands like CCD's, McDonald's, Zara etc. have also helped in attracting local
as well as foreign customers.
Also, better security services & safeguard provided to a tourist will attract customers of Airline
industries.
PEST-Political, Economic, Social & Technological Factors:
Political Factors
Political factors have been a major mayhem for the aviation industry in past few years. The
policies for land accusation has been a major issue to be faced by airline industry. Protest by
local public, environmentalists & other political factors have adversely effected the performance
of global Aviation. The Airline industry can tackle it by means of conversation & negotiation
with local political as well as governing body. Also in case of any sort of social issue or
objection, the government or local body can act as a bridge between airline industry & local
public to solve the social problem occurred & helps in its solution with explanations &
negotiations.
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