Comprehensive Report: TUI Group's Role in Travel and Tourism Sector

This report offers a comprehensive analysis of the travel and tourism sector, with a specific focus on TUI Group. It begins with an introduction to the industry's growth and TUI's role as a leading company, followed by an exploration of historical developments and the sector's structure. The report then delves into how political changes impact the tourism sector in various countries. It examines factors affecting tourism demand, and how TUI has adapted its supply to meet these demands. The report also assesses the positive and negative impacts of different factors on TUI, using Spain and Egypt as case studies, and proposes strategies to minimize negative effects and maximize positive outcomes, including eco-tourism and diversification. The report concludes with a summary of key findings and provides references for further study.

Unit 1
Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Historical development in travel and tourism sector.............................................................3
Covered in poster.........................................................................................................................3
1.2 Structure of travel and tourism sector....................................................................................7
Covered in leaflet.........................................................................................................................7
TASK 2............................................................................................................................................8
2.1 Covered in PPT......................................................................................................................8
2.2...............................................................................................................................................11
2.3 Implication of political changes on travel and tourism sector in different countries...........15
TASK 3..........................................................................................................................................16
3.1 Factors affecting tourism demand........................................................................................16
3.2 Explaining how supply had changed at TUI group to encounter the effects of demand.....17
TASK 4..........................................................................................................................................17
4.1 Positive and negative impact of different factors about TUI...............................................17
4.2 Strategies to minimise negative impact and maximise positive impact..............................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Tourism is one’s one of the largest growing industry in world. It is also considered as
major source of foreign exchange earnings and employment opportunities for many developing
countries. World tourism demand continues to exceed expectations and show resilience against
extraneous factors. In current scenario many people are there who love to visit at different place
and want to spend their leisure time in beautiful destination. The government of different
countries are also framed many rules and regulations where tourism companies must comply
with them (Assauer, Vinz and O’Connor, 2011). This report is focused on TUI group which is
the world’s leading company in tourism. This entity is offering a wider range of services to their
customers in hotels, travel agencies, airlines etc. One of the aim of this company to provide best
holiday packages to customers through which they retain them for a long period of time. Further,
historical development in this sector has been explained and along with their structure. Apart
from this, how national and local policies are influencing the victory of travel and tourism sector
in discussed in detailed.
TASK 1
1.1 Historical development in travel and tourism sector
Covered in poster

1.2 Structure of travel and tourism sector
Covered in leaflet

TASK 2
2.1 Covered in PPT

2.2

2.3 Implication of political changes on travel and tourism sector in different countries
Implication of political change
By: XYZ
Date: 7th October 2017
Political changes in any country has given both positive and negative impact on
different sectors. The positive impact of these changes will improve the economic condition of
country in growth and development. As the influence of political changes on travel and tourism
sector has been described here with different examples. In UK, 2016 they are allowing new
visitors visas for Chinese tourists in London which is valid for two years. The government of
this country are making plans to introduce a new multiple entry for 10 years where no extra cost
will charge on Visa. This is giving positive impact on the economy of county because they are
expecting to raise number of visitors by 112% to visit London. As per current scenario, China is
considered as fastest growing tourism market which is providing convenient services to visitors.
Along with this they had made contribution in the UK which provide opportunities tour
operators and increase the visitor’s attractions during the year. But if there is instability of

government, then it impacts on the revenues and reduce the number of visitors during the year.
Another example is China, where government of this country are making different
policies regarding welcome foreigners (Chen, Lai and Yeoh, 2012). If there is any change in
UK policies, then it will impact on tourists also who are visiting to China. This country is
delighted in the records of Chinese booking because tour operators of this country are serving
best services to their customers in terms of traditions. Moreover, visitors of London are getting
services at cheap rate through which they are attracting more customers towards their country.
As, this shows that there is an increment in the booking services which is giving advantage to
government to meet out with their expenses.
After Brexit, tourism companies in UK are closely working with Chinese as a partner
through which they generate revenue from visitors. Moreover, they can contribute some amount
of percentage in GDP of country. Thus, it will give positive impact on both countries in
development and expansion of tourism sector.
TASK 3
3.1 Factors affecting tourism demand
As there are many factors which is affecting demand for tourism. Tourism demand is that
where expanses are made by visitors before, after or during the trip. It is responsibility of tour
operator to determine that what are the major factors which is affecting to demand of customers
and impacting on their profits. As there are several customers whose demand from each other
and changing from time-to-time so it become essential to determine their needs on actual time.
Some of the key elements which are included in tourism demand and must be analyse by TUI
group so that they can take appropriate action in time (Hudson and Thala, 2013). These elements
are; economic, demographic, culture and many more. In this sector many organisations are
interlink with each other so all are responsible for analysing demand and supply of goods
regarding the need of customers.
Apart from that there are some primary factors which is affecting to tourism demand such
as income of people. If their income is high, then they will prefer to go high class places where
they can spend their leisure time and enjoy the trip in best manner. Some of these factors are
enumerated as below:

Demographic factor – As in concerned with age, gender, education, of different people
who belongs from different places. Sometimes, it become difficult for TUI to determine the
needs of every people so ultimately it is impact on their demand and supply. Old tourists are
having a more needs of care and protection in the tour, like in travelling their company has to
provide a care taker for them. So some time older people refused to go for the tour due to their
age factor on the tour. Occupation is an another factor, some important and urgent business
meets creates a conflicts in the schedule of the tour so that businessman and professional person
refuses for tours.
Culture factor – Nowadays, there are many visitors who attracted towards the historical
places to gain the knowledge regarding place (Make and et. al., 2012). So, it become major
responsibility on organisation to understand their choices about destination places that what kind
of places they want to visit. For example, if friends of teenagers are making trip, then they are
wishing to visit haunted or adventure places. In this manner, TUI group must provide services
otherwise it can impact on their profit and tourism demand. UK is having a great historical
culture and evidences are available like their structures and monuments. Most of the people
which visits the UK are having a huge attraction of the culture and festivals which are organised
in different cities of the country.
3.2 Explaining how supply had changed at TUI group to encounter the effects of demand
Tourism demand and supply are link with each other. Tour operators of TUI must deliver
services according to the demand of customers. They must analyse that whatever services which
are providing by them should not be in excess or deficit. If anyone of these condition is found,
then it may impact on the organisation profit or customers demand. In modern era, demand of
customers is changing according to their taste and preferences so managers of TUI has properly
analyse their needs to meet out with their yearnings (Moutinho, 2011). However, there are also
some kind of customers who are making trip according to season, then accordingly entity must
meet out their demand and supply services accordingly. Further, it is important for organisation
to maintain their equilibrium point to retain in market for a long period of time. Following are
some factors which must be encounter by TUI to meet the effect of demand.
Technologies intermediaries – With the help of new technology it become easy for
organisation to analyse the demand of customers. For example, they can conduct online survey