University Travel and Tourism Sector Report: TUI Group Analysis

This report provides a comprehensive analysis of the travel and tourism sector, examining its historical development, structure, and the influence of government policies and international agencies, particularly focusing on the UK and China. It explores factors affecting tourism demand and how companies like TUI Group adapt to these changes. The report evaluates the economic, environmental, and social impacts of tourism, both positive and negative, and suggests strategies to minimize negative impacts while maximizing positive ones. The report delves into the implications of political changes on the sector and provides insights into the industry's dynamics, making it a valuable resource for understanding the complexities of the travel and tourism industry.

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Travel and Tourism Sector
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Travel and Tourism Sector
Contents
Introduction...........................................................................................................................................3
Task1.....................................................................................................................................................4
1.1 Key historical developments in travel and tourism sector............................................................4
1.2 The structure of travel and tourism sector........................................................................................5
Task 2....................................................................................................................................................7
2.1 Function of government, government-sponsored bodies and international agencies in travel and
tourism...............................................................................................................................................7
2.2 Influences of local and national economic policy for the success of travel and tourism industry
of U.K and China...............................................................................................................................8
2.3 Implications of political change on the travel and tourism sector................................................9
Task 3..................................................................................................................................................10
3.1 Factors affecting tourism demand..............................................................................................10
3.2 How supply has changed at TUI Group to meet the effects of demand.....................................11
Task4...................................................................................................................................................14
4.1 Evaluate the main positive and negative economic, environmental and social impact of tourism
.........................................................................................................................................................14
4.2 Explain strategies that can be used the minimise the negative impacts while maximising the
positive impact................................................................................................................................16
Conclusion...........................................................................................................................................18
References...........................................................................................................................................19
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Travel and Tourism Sector
Introduction
It is approved that travel and tourism industry has been developed today as one of the most
influenced business sector in the world. Here it would be analysed how the history of travel
and tourism have been developed day by day. The industry of travel and tourism have
influenced by variant policies of national and international government as well as national
and international economic factors and the effects which are oriented with supply and the
policies of demand for the business of travel and tourism industry. TUI is one of the most
influential travel and tourism sector of the world. It has got more than 200 others travel and
tourism sections internationally.
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Travel and Tourism Sector
Task1
1.1Key historical developments in travel and tourism sector
TUI being a very well-known and established company, has maintained a very good service
for their customers. Being a very well maintained organization the management of the
organization is successfully quite aware about the success and the development of the
business of the particular organization here, TUI travels and tourism sector. The development
of the travel and tourism sector has changed frequently with time. The most important change
that has taken in the travel and tourism sector is that the organizations are now more
concerned about the requirements and the demands of the clients or the customers of that
particular company. Once the company was started, the management of the company was not
that much stable and successful with their business, but with time and with experience the
management of the company made all the sectors of the business better for the sake of the
betterment of the business of the mentioned company. There are some basic and certain
norms or guidelines that the organization of the company must follow in order to improve the
business and the performance of the travel and tourism sector of the mentioned company
which is TUI. The factors that the company and the management of the company should be
aware of, are technology, accommodation facility of the customers, modified and improved
services and better and pleasant communications. These are the main factors that has created
great impact on the development of the travel and tourism sector of the mentioned
organization. Few years ago, the organizations were not that much concerned about the
mentioned factors. But nowadays the first priority of the management and the leaders of any
organization is to attract as much people as possible, for that the organizations must provide
something better and unique to their customers. The management of the company is now
more aware about the requirements and the needs of their clients and how to attract more
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Travel and Tourism Sector
customers for the sake of the betterment of the company and its business. Other than these
factors there are many other factors which has great impact on the travel and tourism
business, for example the communication between the employees of the organization and the
customer. Being a very open business to the customers, the management of the organization
has to face and deal with the customer themselves. Thus if the employees as well as the
management of the organization does not built a nice and pleasant communication with the
customers, the customers would be offended which is obviously not good for the betterment
of the company and the business as a whole. Thus to improve or develop the business of the
mentioned organization the employees and the management of the company must maintain a
pleasant and nice communication with the customers. Other than these factors, there are also
some other points to be mentioned such as the quality of transport and accommodation. If the
travel and tourism sector does not provide better transport, better accommodation and better
food to the customers, they would never be able to increase their business and get success.
From the above passage it is quite clear that the mentioned organization, TUI is quiet
successful in maintaining all the mentioned guidelines properly. These factors can easily be
regarded as the soul factors behind the success of the mentioned organization. Thus it is quite
clear from the above passage; the success has not come easily. It was the management of the
company and their dedication towards the organization which made it possible for the
company to get success and to be well established.
1.2 The structure of travel and tourism sector
The structure of the travel and tourism is something which is one most the important factor
for any organization or industry. Similarly, in a travel and tourism industry the size and the
structure does matter. The size and the structure of any organization is dependent on some
certain and specific factors such as the architecture of the organization, the business strategies
taken by the management of the organization, the communication between the employees and
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Travel and Tourism Sector
the customers, the quality of the service provided to the customers of the particular
organization here, TUI. TUI being one of the most established and successful organization it
is quite clear that the management of the mentioned company already possesses a good and
strong structure for their travel and tourism sector. For that, the management of the
organization has to maintain all the mentioned points above. The mentioned company is
much aware about the quality of the service that the management of the organization is
planning to provide to their customer. They are trying to change and modify the quality of
service frequently. For that the, management of the company is providing better quality food
and better quality accommodation to their customer. For customer satisfaction they are
arranging all he comfort and luxury to the customer in a very reasonable price. Other than
these there are many other factors which affects the structure of the company or the
organization. The communication between the employees of the organization and the
customers is another very important point at least for this field. If the employees of the
company does not behave properly with the clients they would never be able to develop or
improve their business and profit of their organization or the company. Another point which
should be mentioned is the communication between the management of the organization and
the employees of the organization. Being a very well established organization the
management and the leaders of the company must be cooperative and supportive towards
their employees. They should be aware of the basic needs and requirements of the employees,
and also need to provide better quality working environment to the employees of the
company. If the management of the company does not provide the requirements and support
to the employees, they might get offended which may cause disobedience among the workers
of the company which is obviously not good for the betterment of the organization and its
business. This essay deals with the different aspect of a travel and tourism sector, here, the
TUI which is one of the most renowned and established company. From the above passage it
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Travel and Tourism Sector
is quite clear that the mentioned company is successfully maintaining all the required
guidelines which are needed to run the business successfully. Thus it can easily be
understood that the mentioned company, TUI, has always managed to maintain all the
required strategies for the sake of the betterment of the organization or the company.
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Travel and Tourism Sector
Task 2
2.1 Function of government, government-sponsored bodies and international agencies in
travel and tourism
It is very important for a government body to take part in the travel and tourism industry of
that country. Local government bodies, and international agencies generally make the
strategies to increase the popularity of the destinations, which embrace the tourism sector of a
particular region. Travel and tourism witnessed several changes in past few years. Especially
with the affordable airfare announcements as well as in the global scenario. Tourism reduces
its negative impact on environment (Mitchell, 2011). Local government, government-
sponsored bodies and international agencies of United Kingdom and China plays a significant
role in travel and tourism industry. Functionality of these governmental bodies and agencies
largely effects the success factor of the above mentioned country’s travel and tourism sector.
Basic infrastructure is being provided by the Local governmental bodies of U.K and China. It
helps the industry to attain their goal of minimizing the negative impacts on environment
(Mitchell, 2011). Local government also takes care of waste management, which sustains the
tourism of a country like U.K and China (Boniface and Cooper, 2013). The government
should implement a plan in order to increase the employment and foreign exchange and
reduces the chances of negative impacts on environment as well. Governmental bodies and
international agencies of U.K and China involved to develop policies, facilities to private
sectors, so that the provided infrastructure can be accessed by the tourists. But this requires
some permissions which are taken by the local government bodies. Some projects sponsored
by governmental bodies and agencies may not look effective, but those projects have strategic
importance for the tourists and the nation as a whole (2006 ATRS World Conference, 2006).
Process and policies for movement of tourists are framed by the international governmental
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Travel and Tourism Sector
agencies from one country to another (Boniface and Cooper, 2013). If these policies are
effective to the travel and tourism industry, then it can be a reason of success for the same. To
ensure this positivity and success the governmental bodies and international agencies should
play their role appropriately (Durbarry, 2013).
2.2 Influences of local and national economic policy for the success of travel and tourism
industry of U.K and China
Travel and tourism sector has a large impact on a country’s socio-economic culture. Travel
and tourism industry can make social and economic profits by creating environmental
awareness, employment, and generating foreign exchange funds. Some countries cannot
exploit their potential of tourism (Boniface and Cooper, 2013). On the other hand, some
protected areas of a region don’t get sufficient amount of investments, which effects the
economic policies of local and national context. A weak national economic policy
discourages the local or regional people, and they survives with insufficient knowledge of
nearby tourism activities. They also don’t get any idea about the economic benefits of the
regional tourism sector (Bell, 2009). A local community get financial inclusions through the
well-planned local and national economic policy, as they are financially dependent on the
natural resources of their surroundings. An economic policy should be planned in order to
provide some share of benefits to the regional people, so that they will be interested to
participate in the travel and tourism activity in their surroundings. Not only would that but the
economic policy be effective if it is planned by considering the local people. Some of these
policies includes visa and immigration policies (Bell, 2009). The economic policy should also
include government keeping an individual fund to increase a number of visitors. There are so
many economic policies of U.K and China which affects the travel and tourism industry in a
positive way. Betterment of the infrastructure is a very integrated part of travel and tourism
industry, as it attracts more tourists and manage them properly.
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Travel and Tourism Sector
2.3 Implications of political change on the travel and tourism sector
Political situation of a country differs from one country to another. It also effects the travel
and tourism sector of those countries. Political surrounding is also plays a significant role in
the success of the travel and tourism sector (Boniface and Cooper, 2013). If the political
environment is not stable, that it will surely effect the business, and it can increase the risk of
visit to that particular destination. As an example, terrorism is a result of improper political
implication that really effects the travel and tourism sector of a region. It reduces the number
of tourists for captioned country (Shepherd, 2013). If any negative publicity has been created
for a tourism destination, then it can be considered as one of the political instabilities as well.
It also reduces the inflow of tourists. Sometimes, tourists examines the political environment
of a country before setting up a tour (Ferris and Stein, 2008). As an example, when London
was going through a political unrest, they had solved their issues by making the destination
favorable for visitors globally. London is a very popular tourist destination. But during the
political unrest of U.K., tourism became poor in that country. Now U.K can be taken as an
effective example of tourism destination. As there is a highly political stability can be seen.
People now considers U.K as a safe tourist spot. The tourism in China is considered by the
political experts, as the bridge between the alliances nations. Setting up different policies is
also considered as a political activity, as through these policies distribution of power and
decision making of the government can be shown (Shepherd, 2013). It has a large effect on
the travel and tourism industry. In U.K the political stability develops such policies which
may encourage the travel and tourism sector to grow. That’s why tourism in U.K is very
popular around the world. The policy makers of a tourist spot should be aware of all the
possible instabilities of local and national politics, and then the policy should be developed
accordingly.
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Travel and Tourism Sector
Task 3
3.1 Factors affecting tourism demand
There are some specific demand for the services and products of travel and tourism industry
which gets exceptional management and deliberation. Definite numeric values are there to
hold of tourists for specified tourism destination. Most of the issues which affect the demand
of the services and products of tourism and travel(Law, 2009). As TUI is a renowned group
of travel and tourism it has analysed till the date what are those issues which affect their
organization. The factors which affect the demand of tourism industry are described below of
the text:
 Demographic factors: There are a huge impact of demographic factors as it is being
changed the demography of the customers or consumers by the mean of tourism and
the tourist are getting the power which is spent at high. The certain limit of travelling
frequency has been developed so that the number of consumer are being grown day
by day. The total setup reminds that the young consumers who are eagerly travelling
around the world are increasing in much more frequency and it is the reason that they
are spending a lot of expenses behind this factor(Factors affecting global tourism,
2012). TUI is an influenced group for tourism and it spends facilities to those young
consumers who are under the surveillance of demographic factor.
 Technological: Today it is very natural for any kind of business purpose that they use
science and technologies in much profound way. The business policy of tourism and
travel have been come to this point of saturation where they can expand their services
to the consumers by online responses(Faria, 2008). The procedure of online
reservation has extended the business through the whole world so that the consumers
can reserve their needs by online registrations.
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Travel and Tourism Sector
 Fluctuations of currency rates: The value of currency prices helps to set the
destination of travel for the consumers so that the business of TUI can facilitate the
increasing urge of tourism in the mind of consumers(Tigre Moura, Gnoth and Deans,
2014).
 Economies: There are different economic structures for different countries so that the
policies by the mean of products as well as services of tourism of any specified
country(Africa - Conference on Developing Tourism Policies, 2015). As it may
happen that any country has got some economic crisis and it can put an impact upon
the demand of tourism products and services at there.
 Political stability: A huge impact is where the political terms and conditions arrive.
The stability of political structure makes an impact upon the tourism section of any
country(Nunkoo and Smith, 2013). The need of tourism services come at much higher
sector where the political stability is better at any country.
 Inflation of interest rates: This factors enhances the need of money so that the ultimate
costing also may increase in a parallel way. People who want to spent lesser expense
for touring at different sites across the world would be beneficial at this factor.
 Globalization: This factor influences the rate of demand for tourism and travel market
for any organization(Claveria, Monte and Torra, 2014). The willingness of the tourist
may increase at this state where the intention of tourism being globalized today.
3.2 How supply has changed at TUI Group to meet the effects of demand
As it is being confirmed that the demand section of tourism has been developed so that the
supplying section is getting deprived today. There are specific components which influence
the factor of supply at the industry of tourism and travel. The specific components are
promotion, information, transportation, services and attractions. Among all of these
components there are the most important factor is the attraction for tourism(tourism and
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