Analysis of Contemporary Issues in Travel and Tourism Industry

This report provides a comprehensive analysis of contemporary issues in the travel and tourism sector, focusing on challenges and trends impacting the industry. The report begins with an overview of current issues, including security measures, technological advancements, and the effects of inflation, using London as a key tourist destination. It then analyzes two specific issues, technological advancement and inflation, and their impact on the Thomas Cook travel agency in Singapore. The report further evaluates emerging trends such as domestic, inbound, grey, and medical tourism. The analysis extends to how these trends affect Singapore, addressing issues like terrorism and natural hazards. The report also includes a PESTLE analysis to understand the political, social, economic, technological, legal, and environmental factors influencing the Thomas Cook. The report discusses various strategies to mitigate risks and capitalize on opportunities within the evolving tourism landscape. The report concludes with a discussion of the impact of these issues on travel performance and the consequences for businesses operating in the sector.

Contemporary Issues In Travel
And Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1. Analysis Of Current Issues In The Tourism Sector.............................................................1
1.2. Analysis Of Two Issues By Relevant Methods And Resources..........................................2
TASK 2............................................................................................................................................3
2.1 Evaluation Of Emerging Trends In The Tourism Sector......................................................3
2.2 Analysing The Trends That Affect The Chosen Destination................................................4
TASK 3............................................................................................................................................5
3.1 Analysing And Discussing The Emerging Trends ..........................................................5
3.2 Tourism Products..................................................................................................................6
3.3 Strategies...............................................................................................................................7
TASK 4............................................................................................................................................7
4.1 Impacts on the travel performance........................................................................................7
4.2 Discussing The Consequences Of Firm ..............................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Travel and Tourism is all about fun and entertainment. It's basically for those people who
are passionate for travelling all around the world. The project report focuses on the contemporary
issues that are involved in the travel and tourism. The assignment focuses on the issues that are
related with the tourism industry (Zaenuddin, Paramita and Fathoni, 2016). Project further
focuses on the current trends in the travel and tourism sector.
TASK 1
1.1. Analysis Of Current Issues In The Tourism Sector
In tourism sector, there are a lot of issues that are emerging in the current scenario. For
boosting the economy of any nation tourism has tremendously become an important sector and
plays a very crucial role in it. London is one of the main tourist destinations that attracts a large
pool of tourists every day (Zaenuddin, Paramita and Fathoni, 2016). Now, the issues that are
arriving in this sector because of various forces are as follows:-
 Need For Security Measures:- From the arrival of tourists to their departures, safety and
security measures are taken by the government of UK. Regular increase of illegal and
criminal activities has forced the government to take some strict measures with the
motive of protecting this industry (Zaenuddin, Paramita and Fathoni, 2016). Terrorist
attack has influenced not only the tourism sector but, airlines, hospitality and other
relevant services. It is the major current issues for taking care and security of people
within the travel and tourism sector. This can be achieved by working with localised law
enforcement and localized governments.
 Technological Advancement:- Day by day technology is changing with a faster growth.
Mobile apps like OYO; Trivago and many others are offering customers a facility to book
the hotels on their own. Effective use of internet through blogs; online advertising; doing
online advertising; using social media in effective manner etc. has enhanced the use of
technology and has boosted the revenue of economy in a effective manner (Dewi, 2015).
Airlines and tourism industry has facilitated smooth functioning of the transportation
system. Social networking sites have promoted a number of tourist destinations of the
country.
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 Rise And Fall Of Inflation:- Inflation leads a negative impact on the tourism industry.
Due to rise in the price of commodities and services, the purchasing power of the people
declines due to which, the tourism sector has got influenced by the rise and fall of
inflation n many a times. Now when the price of commodities increases, it strictly, affects
the tourism sector (Dewi, 2015). The demand of travelling will be adversely affected by
the no. of visitors who will be decreased by the hike in the prices. On the contrary, due to
fall in the rate of inflation, there will be increase in the no of tourists /visitors ion th e
country.
 Time To Delivery:- Providing services to the clients, is the main motto of travel and
tourism sector (Cao, 2015). Tickets booking; services given to customers on board and
visiting/proceeding to the planned destinations and its implementation is kept in mind
along with the given time limit. For the clients of tourism sector, time is like a paraffin.
Everyone tries to explore the destination by saving more and more time. By the score of
time is a wrathful factor in such cases (Cao, 2015).
 Globalization: It is the main creation of uniform standards and protocols. Therefore,
unique selling point of travel businesses or destination marketing companies lies in
giving rare and unique experience.
Here, the chosen destination is Singapore and the company that is making the trip
available is The Thomas Cook. At present, organisation is suffering from all these factors that
are having an adverse effect on it.
1.2. Analysis Of Two Issues By Relevant Methods And Resources
The two issues that have affected The Thomas Cook in a adverse way are:-
 Technological Advancement:- The technological advancement is such a factor that has
influenced the organisation in a negative manner. Technology is such a vast field that,
keeps on changing every single minute; every day (Bronner and de Hoog, 2016). So, by
adopting some good measures and techniques this enterprise can really lead to a big
achievement in the tourism sector. In Singapore, this organisation is suffering from
technological advancement, and because of this reason only, the number of visitors in
Singapore, have decreased a lot (Bronner and de Hoog, 2016). For giving better
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performance in this field, the enterprise, can also tie up with some good hotels and
restaurants that are providing with the best amenities over there.
 Rise And Fall Of Inflation:- Inflation has its influence on the tourism industry when there
is a hike in price of hotels and other expenses of living. Although, a very negative impact
on this sector can be seen when not only the price of food and living is on hike but also
the entertainment cost is very high (Bronner and de Hoog, 2016). Now, when everything
is on hike, then the consumer will feel himself as poor and the number of tourists will
decrease all of a sudden. For improving this, The Thomas Cook can tie up with selected
no. of agents who will provide facility for food and living and also going to arrange some
entertainment for the tourists.
 Security is the major issue which is effected on destinations to the consumers. Therefore,
it is the necessary to provide proper security to the visitors on destinations. This can be
helped to attract the more consumers.
So, by adopting these practices and measures the organisation can remain safe from the
adverse effects of such factors.
TASK 2
2.1 Evaluation Of Emerging Trends In The Tourism Sector
In tourism sector the, trends that are emerging and influencing the travel and tourism
sector, the tourism sector is basically divide in two categories:- 1.) Domestic Tourism and (2.)
International Tourism (Hendri and Arisandi, 2017). Main difference between the two is that, no
sort of visa and currency conversion is required to be done in case of domestic irrespective to
that of international. On the other hand there are some exceptional cases, where visa is also not
required for some international tours and travels.
Now, over the past few years, the population of Singapore has surprisingly increased.
There are beaches and museums that can be visited by the people either by their cars itself or
they can also visit over there, like a pedestrians (Hendri and Arisandi, 2017). Domestic Tourism,
is mainly influenced by the economic and political factors because of this only, the cost of
visiting over there increase drastically.
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Inbound Tourism:- It is also known as Incoming tourism. It basically refers to the
travelling of tourists to a different nation from their own. Here, its a precious source of income
from the tourism sector for the country and also for the improvement of economy. Singapore is
not just a beautiful place for the travel lovers but also, its providing a source of income for the
development of economy by way of hotels and means of transportation (Haque and et.al., 2017).
The Thomas Cook is trying to set its roots in this sector by generating more and more of revenue
for the government over there.
Grey Tourism:- It refers to a niche market in the tourism sector. It is the case when a
large number of senior citizens are travelling abroad. There seems to be a good growth in tjhis
sector when, around 5.4 million with age of above 55 years came to visit Singapore on their
holidays on their weekend from overseas (Haque and et.al., 2017). Biggest share of grey tourism
is in Singapore. The number of visitors from Chinas are likely to increase by 89% as compared
to that of last four years. No. of Indian tourists are anticipated to rise by 29%, with the visit from
Russians that are increasing by 24% as compared to that of Brazilians that visited only 18%
(Nguyen, Nguyen and Peeters, 2018).
Medical Tourism:- It refers to such a tourism where the visitors has to travel outside their
home country with the motive of receiving medical care (Nguyen, Nguyen and Peeters, 2018).
Growth in popularity of medical tourism has grabbed the attention of policy-makers, researchers
and the media. Originally, the term referred to the patients from the less developed nations in the
respect of treatment that's not available in their homeland.
2.2 Analysing The Trends That Affect The Chosen Destination
The trends that affect Singapore, is affected by various changing trends and the no. of
issues. The Thomas Cook, which is the business entity for travelling business is affected by the
high - cost of airlines that would be available for the travellers (Haque, Ahmed and Razak,
2017).
 Safety and Security threats are such factors that influence the business performance of a
company. Use of CCTV in flights and in rooms of hotels are giving birth to the needs for
safety of tourists in that country (Haque, Ahmed and Razak, 2017). The organisation
should provide facilities to its customers regarding all these things that makes him feel
safe and comfortable.
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 Terrorism:- There is no doubt that, in travel and tourism sector, the terrorist activities has
increased a lot. Terrorists are attacking on the tourists and on the tourist place with the
intention of making a loot and creating threat of their name in the mindset of the tourists
(Haque, Ahmed and Razak, 2017). All these things are putting a big question mark on the
reputation of tour and travel company.
 Natural Hazards:- Natural Calamities are also a challenge for the tour designer. By the
score of, all the arrangements that are made by the organisation can be futile because of
the natural calamities that, had made every thing challenging. The tour operating
company, has to face this big challenge for the sake of running its business (Pirra and
Diana, 2017). The most challenging task for a tour operator is to arrange the best suitable
alternate in case if all planning fails.
The tour operator has to ensure all sort of facility keeping in mind all the contingencies.
Let suppose, if any illegal activity is taking place then, it should be identified and investigation
should be done on the immediate basis (Pirra and Diana, 2017). In case, if there is any woman
taking the initiative to do the travelling, then, it is very necessary to take care of their privacy and
safety.
TASK 3
3.1 Analysing And Discussing The Emerging Trends
The Thomas Cook comprises a good qualified and committed to giving effective and
special visa information and also giving to application service to private and commercial. Pestle
analysis helps in finding the factors which impacts the Thomas Cook which could change to get
good response.
 Political factors :- Political factor clarifies The Thomas Cook of political environment in
the country (Mohammad and Ammar, 2016). They have aware to rising results of
environment, government is controlling of the environment effects. They should take
decisions like minimum rates of tickets so attract the peoples, these facilities provides to
low rates so impact of company. For example, the taxation rate is increased within the
nation, so that it highly impacts on market share and revenues of Thomas Cook.
 Social factors:- Social factor is rising awareness for neglect long Travels, good and
memorable Travelling, demographic changes and all (Mohammad and Ammar, 2016).
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The Thomas Cook promote the special package for company travellers. They have
change the trends and take actions for new social trends. There are also good advantages
to having peoples visiting a society. The company promote to social networking ads
through customers. Like Facebook, twitter, etc. Changes in consumers taste and
preferences, company also impact in relations to sell and profits of business.
 Technological factors:- Technological factor is very useful in the whole world. Technical
employees which controls and manage the whole network of the Thomas Cook. But still
it is conversation with the tourists (Haris and Gan, 2017). According to technology
tourists advance booking use for internet. One of the highest effect the Thomas Cook has
been the high of online booking. Tourist looking to book a trip no lengthy need, they
have use internet for online booking. The Thomas Cook allows to online booking and pre
booking system (Haris and Gan, 2017).
 Economic factors:- Economic factor main element which impact on the Thomas Cook is
exchange costly rates and high inflation rates. But the factor impact to direct company
profitability which gave increase in ticket rates (Haris and Gan, 2017). The Thomas Cook
generated by firms that deals directly with peoples, including airlines, hotels, agents and
other passport services, as well as the activities of cafe and organizations that deal
directly with guests. Economic factors effected by inflation, rates, productivity, services
etc. The Thomas Cook has strong power linkages with another companies within national
economics (Haris and Gan, 2017). There are demand of domestic and international
investment.
3.2 Tourism Products
Products offered by the tourism sector could be of any type. It could be in respect of
package offered to the clients; the accommodation offered for living; any complimentary
services offered or it could be given to the tourists in any form (Bronner and de Hoog, 2016).
 Tourism Oriented Products:- It includes all those products and services that are created
primarily for the tourists and also for the localists. These products require a great share of
investments in private sector and list of some of them are as follows:-
1. Providing accommodation to the tourists for sake of living.
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2. Making them available the means of transportation.
3. Taking them to the shopping place nearby.
4. Allowing them to go for the sight-seen in that country.
5. Taking them to the museums; temples gardens and amusement parks.
6. Offering them complimentary foods and beverages in that area.
 Residents Oriented Products:- In this case, the products and services are made available
to the tourists by the organisation itself (Bronner and de Hoog, 2016). Here, the tour
manager, made efforts for all the people who are going to visit Singapore. He made them
available with all the accommodation and residents that he could offer to them. It
includes:-
1. Hospitals in case of any emergency.
2. Public parks for the purpose of amusements and spending quality time
3. Banks and ATM's for withdrawing hard cash.
4. By providing them any sort of such facility which the tourist can avail easily and
in case of need.
 Accommodations:- The destination of tourists are well managed with different facilities
that includes:-
1. Self Catering:- The accommodation offers staying facility to all the tourists but,
they are required to take dinner and all facility at their own.
2. Guest House:- its generally made available to all those persons who are the staff
members (Bronner and de Hoog, 2016).
3.3 Strategies
The strategies used by the Thomas Cook are in respect of following. The strategies are
required to overcome that affect the tourism business of company in a negative manner.
Strategies are required to be set in a manner which is adjustable.
 Special Package:- The organisation can offer special package to its honeymoon clients;
business travellers; regular clients etc. Now, for making a grab on the clients organisation
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can introduce new schemes in off season with the motive of attracting new clients.
Offering discounts to the senior citizens (Ding, Lin and Liu, 2014).
 Government Stability:- If the government is unstable, then it can be dangerous and
unpleasant for the customers to visit. It leads to a huge impact on the tourism sectors of
country.
 Exchange Rates:- It's an economic effect. The exchange rates have a very crucial impact
on the tourism sector. When currency strengthens/weakens the tourism is also affected
(Ding, Lin, and Liu, 2014).
 Advance Technology:- By adapting advance technologies, a tour company can remain
safe from hike in fuel charges of flights. With the use of internet, people can buy tickets
and can also pay easily (Ding, Lin, and Liu, 2014).
 Stability in The Flight Charges:- Flight companies like Boeing should have control over
fluctuations of the flight rate at time of inflation.
 Company should follow marketing strategy like internet marketing. In this context,
Thomas Cook promote their services and products on internet for attracting the
consumers within the business.
TASK 4
4.1 Impacts on the travel performance
Current trends like medical tourism or the destination tourism has lead a great impact in
the tourism sector. Following are the impacts:-
Impact On The Sector Structure:- Boeing has expanded in a very appreciable manner
from the time of it's establishment. It has grown very tremendously, after the adoption of
technological changes. It has acquired several other travel companies and has set a benchmark in
the field of travel industry (Ding, Lin, and Liu, 2014).
Impact On Business:- The company has made a record growth in this field by adopting
the trends through the acquisitions and keeping the stable price fair for its loyal customers. The
rapidly increasing market share has increased the market value of company in the eyes of its
customers. It has set a benchmark before its competitors in respect of point to point model.
Another practice which was started by the company in order to attract its customers was the
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company didn't gave any commission of booking done by its customers to the agents in form of
incentives (Nguyen, Nguyen and Peeters, 2018).
Impact on the Employment Levels:- The tourism sector, generated a wide range of
employment for the large pool of talented people available in the market. Providing employment
also helps in the growth of economy. If any person is earning something, then, he is also giving
his contribution in the development of economy and with this only the rate of unemployment
also gets decreases.
4.2 Discussing The Consequences Of Firm
It is very crucial for the travel and tourism industry like:- The Thomas Cook, to respond
the market changes and adopt them as earliest as possible (Nguyen, Nguyen and Peeters, 2018).
If the company is unable to judge, respond and monitor the changes emerging in the market then,
there are chances that, it may get fail. When the company is unable to achieve its desired goals,
grab the customers and fulfilling their needs then, it may have to quit. The demand for the travel
and tourism industry will be reduced in the market. If this happened then, market share of
company would be shrinked.
In this context, Thomas Cook needs to ensure that giving the appropriate facilities and
solving the any kind of problems during and after travel. Issues like cancellation of flights,
receive detailed billing information for tax and find the alternative flights. For result, company
needs to give appropriate training and development to the employees for solving all issues and
providing the better facilities to travellers. If the changing the needs of consumers, so that it
impact on profits and market share of business. For the Boeing is the manufacturing and
designing aircraft company. If the changing the needs, so that it is highly negative effect on
manufacture and designing process of the company. Also, this impact on selling and profits of
firm.
CONCLUSION
The project report focuses on the trends of travel and issues that are emerging in the
market. Strategies that a company should follow to fight with or meet out those challenges in the
tourism industry. The assignment emphasis on how the travel and tourism sector respond to such
types of situations. Report concludes by focusing on how the various factors of external
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environment affect the tourism industry. Report analyses the various forces in the tourism sector
and methods used for adopting them.
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REFERENCES
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Zaenuddin, M., Paramita, P. D. and Fathoni, A., 2016. EFFECT OF COMMUNICATION
STYLES, PERSONALITY AND RELATIONSHIP TO CUSTOMER SATISFACTION
OF MEDIATION BY THE PROFESSIONALISM OF EMPLOYEES AT INDO
PERKASA RAINBOW TOUR AND TRAVEL SEMARANG. Journal of
Management. 2(2).
Haris, E. and Gan, K. H., 2017. Mining graphs from travel blogs: a review in the context of tour
planning. Information Technology & Tourism.pp.1-25.
Pirra, M. and Diana, M., 2017. Tour-Based Mode Choice Study Through Support Vector
Machine Classifiers (No. 17-01885).
Mohammad, A. A. and Ammar, S. A., 2016. Critical success factors for the inter-organizational
relationship between hotels and tour operators/travel agents. Journal of Tourism Research
& Hospitality, 2015.
Haque, A., Ahmed, F. and Razak, D. A., 2017. Developing Outbound Strategic Islamic Tour
Packages of Malaysia: Roles of Gender and Race. Advanced Science Letters.23(9),
pp.8535-8540.
Nguyen, C., Nguyen, E. and Peeters, P.M., 2018. Corporate social responsibility for inbound tour
operators in Vietnam: perception and reality and introducing travelife certification for the
travel sector & Response to Chi Nguyen (by Emma Nguyen) & The conditions for
successful certification and CSR in tourism (by Paul Peeters). Tourism Destination
Management Insights. 2018(2).pp.4-8.
Haque, A., and et.al, 2017. Measuring the impact of marketing capability and market control
beliefs on marketing strategy intention: a study on travel and tour agents in
Malaysia. International Journal of Islamic Marketing and Branding.2(2).pp.134-155.
Ding, C., Lin, Y. and Liu, C., 2014. Exploring the influence of built environment on tour-based
commuter mode choice: a cross-classified multilevel modeling approach. Transportation
Research Part D: Transport and Environment.32.pp.230-238.
Bronner, F. and de Hoog, R., 2016. Travel websites: Changing visits, evaluations and
posts. Annals of tourism research.57.pp.94-112.
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Hendri, H. and Arisandi, D., 2017. Perancangan Pembuatan Aplikasi Penjualan Tiket Berbasis
Desktop Pada Family Tour & Travel Menggunakan Visual Basic. Net. Jurnal Ilmu
Komputer dan Sistem Informasi.4(2).pp.166-174.
Cao, X. Y., 2015. Examining the relationship between neighborhood built environment and
travel behavior: a review from the US perspective. Urban Planning
International.30(4).pp.46-52.
Dewi, M. N., 2015. Pengaruh Gaya Hidup (lifestyle), Harga, Promosi terhadap Pemilihan
Tempat Tujuan Wisata (destination) Studi Kasus pada Konsumen Artojaya Tour & Travel
Surabaya. Jurnal Strategi Pemasaran.3(1).pp.1-13.
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