Impacts on Tourism: Supply, Demand, Government, and TUI Analysis

This report provides a comprehensive analysis of the travel and tourism sector, focusing on its historical development, structure, and the influence of local and national governments and international agencies. It examines the role of government policies and political changes in shaping the industry, using examples from the UK and China. The report also delves into the effects of supply and demand, particularly within the context of TUI Group, a leading tourism operator. Furthermore, it evaluates the economic, environmental, and social impacts of tourism, suggesting strategies to minimize negative effects and maximize positive outcomes for businesses like TUI Group. The analysis covers factors affecting tourism demand, such as demographics, economy, and technology, and explores how TUI Group has adapted its supply to meet evolving demands, including accommodation, tour operations, and service quality.

THE TRAVEL AND TOURISM SECTOR

THE TRAVEL AND TOURISM SECTOR
Table of Contents
Introduction................................................................................................................................3
LO1. Understand the history and structure of the travel and tourism sector..............................4
1.1 Explain key historical developments in the travel and tourism sector.................................4
1.2 Explain the structure of the travel and tourism sector..........................................................4
LO 2. Understand the influence of local and national governments and international agencies
on the travel and tourism sector.................................................................................................5
2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples...............................5
2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector. Please provide examples of specific local and national economic policies......6
2.3 Discuss the implications of political change on the travel and tourism sector in different
countries. You need to include at least two countries................................................................6
LO 3. Understand the effects of supply and demand on the travel and tourism sector..............7
3.2 Explain how supply has changed at TUI Group to meet the effects of demand..................8
LO 4. Understand the impacts of tourism..................................................................................8
4.1 Evaluate the main positive and negative economic, environmental and social impacts of
tourism with reference to TUI Group businesses.......................................................................8
4.2 Explain strategies that can be used to minimise the negative impacts while maximising
the positive impacts for example on TUI Group businesses......................................................9
Conclusion................................................................................................................................11
References................................................................................................................................12
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Introduction
Travel and Tourism is a type of industry which is growing since very old days and has a lot
of time to reach a saturation level. This industry is very large as it comprises of travel and
tour operators, transportation, accommodation facilities like hotels, restaurants, tourist spots
and maintain those heritage sites and lastly providing services and safety to the customers or
the visitors. This report will focus on the TUI group, which is considered as one of the largest
tourism operators in the current market which 1600 tour agencies under them and 150
aircrafts to the 5 operator airlines. This report will also cover the details of the development
and structure of travel tourism along with the political impact on travel and tourism industry.
Finally this report will also cover the social, environmental and economic factors on the
travel and tourism industry along with the government and private policies that affects the
travel and tourism industry.
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LEAFTET
TASK 1
LO1: History and structure of the travel and tourism sector
Q 1.1 Explain key historical developments in the travel and tourism sector
Travel and tourism is one
such industry which seems to
be growing without any kind
of saturation. People at very
early ages used to travel for
business purpose. But
coming on to the later days,
one can notice that people
travel most of the time out of
passion, to know a place and
to know the culture of the
place. The tourism seemed to
grow more as the
transportation industry
expanded their growth.
At early stages one used to
travel by walking and slowly
due to technological
advancement aeroplanes
came, due to which one can
travel from one part of the
world to another with some
hours (Luo and Zhong, 2015).
This time saving
transportation development
have attracted many tourists
to travel even more. Along
with this the government of
many countries has also come
up with many new policies to
attract tourists. The history of
TUI group in travel and
tourism was something
related to coal and mining
business in the year of 1923.
Basically it is served as a
logistics company and in the
year of 1997 it served as a
leisure and services industry.
At that time 30% of the
interest was shown to the
travel and tourism
conglomerate and in the year
of 1999, the TUI group fully
transformed themselves in
travel and tourism sector. In
1997 it acquired 25% of the
Thomson cook’s shares
which doubled in the
following year.

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LEAFTET
TASK 1
LO1: History and structure of the travel and tourism sector
Q 1.2 Explain the structure of the travel and tourism sector
Travel planning- They are
generally done by the tour
operators and the travel
agencies. As because they
arrange all types of travelling
tickets, they have the idea of
which way to choose of
travelling by which the
customers will be benefitted
the most. People gives
responsibility to these travel
operators to arrange
transportation,
accommodation and
respective tickets to get
arranged.
Tourism sites- It is basically
the places where the tourists
are attracted to go. It might be
artificial or natural heritage,
as for example parks, forests
or some cultural sites. The
tourism sites are maintained
most of the times, to have a
good brand image and to pull
masses of customers.
Transportation- The
development of the
transportation has helped
customers to reach different
part of glob within a short
period of time. And later
prices of the airplanes were
made lesser just to make the
customers pull towards
tourism (Mason, 2015).
Accommodation- Most of
the time the travelling and
tourism purpose stays for
some number of days, and to
stay at a particular place for
a particular period of time,
accommodation is very
much necessary, like hotels
and inns. Accommodation
with food and meals are also
considered to be a huge
advantage because the
traveller will be in search of
food and will access the
food much more easily if
they get the facility from the
accommodation where they
are staying.

THE TRAVEL AND TOURISM SECTOR
LO 2. Understand the influence of local and national governments and international
agencies on the travel and tourism sector
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2.1 Analyse the function of government, government sponsored bodies and international
agencies in travel and tourism. Please use specific and relevant examples
This slide contains the description of the functions performed by the government and the
international bodies in the travel and tourism sectors. These bodies help in managing the
heritage sites.
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In this slide there is an discussion about the sponsored bodies which deals with the
promotional events and the activities. These also includes the promotion and the integration
of tourism business.
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2.2 Explain how local and national economic policy influences the success of the travel
and tourism sector. Please provide examples of specific local and national economic
policies
The local and the national economic policies affect the various economies. The functions
performed helps in the development and investment of the travel industries.
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These local and the national policies helps in enhancing the taxes and the tourists
expenditures and the results.
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2.3 Discuss the implications of political change on the travel and tourism sector in
different countries. You need to include at least two countries
The political change has an impact on the travel and tourism sector of both the UK and
China. These develop the various situations which need to be managed.
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The factors such as the terrorist activities which are involved in the UK are less wherein
when taken the case of China it is large.
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It is concluded from the above presentation that the role played by the government and the
international agencies is very significant.
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LO 3. Understand the effects of supply and demand on the travel and tourism sector
Executive summary:
In this report there has been an discussion about the TUI Group which is the most leading
tour operator in the world. This report covers the factors which affects the demand and supply
at the TUI group.
Introduction
In this report there is a discussion about the factors which affects the demand of the tourist’s
in the economy. Further there is also an discussion bout the supply changed to meet the
demands.
3.1 Explain factors affecting tourism demand
Demand in tourism depends on the people who are wishing or tending to visit to a certain
place apart from work purpose or just for the purpose of travelling. The demand also depends
on the services that are provided by the tourism industry. There are many factors on which
the travel and tourism industry depends on, which are described below:
 Demographics- In this current scenario, the population is rising effectively. And it
plays a huge role in travel and tourism. Advantage of having more population is
technological advancement and human labour for successful tourism (Ma et al. 2015).
Negative impacts include if the country is a developing country then many people
might get unemployed which is somehow related to crime.
 Economy- The economy of a country is related to the tourism. If the tourists’ spots
offer cheap prices for transportation and accommodation, then one can expect
increase in the number of tourists. For a developing country the economy is poor as
compare to developed countries. Hence it might attract medium income people to visit
that tourist place.
 Technology- Technology plays a very important factor in pulling the crowd. If a
tourist place has got a good amount of technology which will make the people feel
safe and secured, it will automatically pull the masses (Panwar et al. 2016). Other
technology includes ease of transportations, cheap costs of tickets and easy
accessibility of the place.
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3.2 Explain how supply has changed at TUI Group to meet the effects of demand
The supply of the products and the services has changed drastically as the demand changed in
the TUI group. TUI group is considered as one of the largest tourism company. And as the
demand increased day by day the supply has also to be increased. There are many types of
supply which can be classified as Infrastructure, attractions and super infrastructure. The
supply for TUI group for tourism includes accommodation, transportation, and resources
(Webster and Ivanov 2014). The TUI group also provides entertainment and good amount of
services to the tourists who avail their services. Supply of the products is very much
important for a reputed company like TUI group as the demand is very high and maintaining
the balance is very much important. The components of supply are as follows:
 Accommodation- The supply of accommodation has increased based on the increased
demands. There are various types of accommodations that are provided to support
tourism as in hotels, resorts and bungalows.
 Tour operators- With the increase amount of population and the advancements of
technology the customers has also gained knowledge and intelligent about the
services. Hence, the tour operators has also invented some new approaches to
advertise and attract the customers (Rahimi and Kozak 2017). From TUI group
perspective they have worked a lot on the internet advertisement which is helping the
company to increase the customers.
 Services- The quality services depends a lot on the current business. For a well-
established company like TUI group the services that are provided has to be good to
maintain the brand image.
Conclusion
It is concluded from the above report that the demand and the supply are interrelated factors
which needs to be managed by the TUI group. These factors helps in enhancing the profits of
the business.
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LO 4. Understand the impacts of tourism
Executive summary:
This report covers the various factors which influences the various tourist destinations. There
are various factors such as political, social and the environmental factors which affects the
tourist destinations.
Introduction
In this report there is an analysis of the various tactics which helps in reduving the negative
impacts to the TUI group.
4.1 Evaluate the main positive and negative economic, environmental and social impacts
of tourism with reference to TUI Group businesses
From social, economic and environmental perspective there are positive and negative impacts
that affects the travel and tourism industry. The below mentioned points describes the
positive and negative impacts of these sectors in travel and tourism with respect to TUI
group:
POSITIVE IMPACTS:
 Economy: The economic factors, the indirect and direct income, along with gross
income, national gross products and foreign exchange all comes under the positive
impacts of the economy (Munar and Jacobsen, 2015).
 Environmental: The positive impacts of environmental aspect is conserving the
wildlife and causing less amount of environmental pollution from the business to the
environment. Coming on to other things the TUI groups consist of 250 flights which
is a big number and the good news is that TUI has maintained all of them gracefully.
 Social: It includes the social cultures and protecting the heritage of the country or the
tourist place which has been done successfully by the TUI group.
NEGATIVE IMPACTS:
 Economy: Higher population might lead to unemployment, economic leakage might
also be there can lead to lower economy of the country.
 Environmental: Increase in the number of tourist might lead to increase in the amount
of pollution as the tourist might not be responsible to keep the environment clean (Del
Chiappa and Baggio, 2015).
 Social- There are negative impacts of the social culture, as the country or the place
might be introvert and one might have to follow some strict rules to visit to the
country which sometimes can have a bad image for the place.
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4.2 Explain strategies that can be used to minimise the negative impacts while
maximising the positive impacts for example on TUI Group businesses
There will be some amount of negative impacts when one runs a business. For this case TUI
group also have some amount of negative impacts which are basically on the social,
economic and environmental aspects. To overcome from the negative impacts TUI group has
to make some effective strategies. TUI group can follow the advices from the other country’s
tourism and can develop strategies that might be effective (Abubakar and Ilkan, 2016).
Countries include Spain, Greece, Thailand, turkey can be considered while framing the
structure of tourism for TUI group. TUI group should give chance to the local people to serve
better amount of employment. Other economic impact can be reduced by working on the
governmental policies so that the employees are more benefitted.
Coming on to environmental impacts, TUI group should abide by the laws that are protecting
the environment. Following rules will the organisation as well as the environment. A
committee can be set up to support the environmental agencies and to deal with them in a
better way.
Lastly, the negative impacts of social aspects can be lessen with the help of giving the local
community the priority and authenticity so that the tourists who visits the place should like it.
Good amount of management is required from the host countries in order to keep the travel
and tourism authentic and the tourists who are visiting from other parts of the world gets
attracted.
Conclusion
It is concluded from the above report that the various tactics helps in analysing the profits of
the TUI business. These profits help in the fulfilment of the business goals.
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Conclusion
From this report one can understand the history of travel and tourism which started from the
Greek’s from the ancient time due to business purpose and to the latest trends of travel and
tourism where a person can visit a place within some few hours, courtesy to the technological
advancements. This report also focussed on the bodies that regulate the travel and tourism
sector which are basically international, government and government aided bodies. The
economic, social and environmental aspects on travel and tourisms and the positive and
negative influence on this sectors are also discussed thoroughly. For a large company like
TUI, which consists of 1600 tour operators working under it and 150 aircrafts there are
always positive and negative impacts which might affect the economy, society and
environment. Lastly, the advices and the solutions are provided so that the reader get to
understand by which TUI group can decrease their negative impacts in the travel and tourism
sector.
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References
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