Comprehensive Analysis of the Travel and Tourism Sector in London

This report provides a detailed analysis of the travel and tourism sector, specifically focusing on London. It begins with an introduction to the sector's global significance, followed by an examination of its historical evolution, particularly in London. The report then delves into the current structure of the travel and tourism industry in London, outlining its key components such as visitor attractions, accommodations, transportation, and regulatory bodies. The role of government, sponsored bodies, and international agencies in the UK's travel and tourism sector is also explored, along with the influence of local and national policies on the industry's success. Furthermore, the report analyzes the factors affecting tourism demand and how supply changes to meet these demands. It concludes by assessing the positive and negative impacts of tourism on the economy, environment, and society, and suggests strategies to minimize negative impacts while maximizing positive ones. The report provides a comprehensive overview of the sector, its challenges, and its potential for growth.

TRAVEL AND TOURISM
SECTOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1Key historical developments in travel and tourism sector of London..................................1
P1.2 Structure of travel and tourism industry of London............................................................2
TASK 2............................................................................................................................................3
P2.1 Function of government, sponsored bodies and international agencies in travel and
tourism UK..................................................................................................................................3
P2.2 Local and national policy influence on success of travel and tourism sector of UK..........4
P2.3 Implications of the political changes on travel and tourism sector.....................................5
TASK 3............................................................................................................................................6
P3.1 Factors affecting demand of tourism...................................................................................6
P3.2 Supply changed to meet the effects of demand...................................................................7
TASK 4............................................................................................................................................7
P4.1 Main positive and negative impact of tourism on economy, environment and society......7
P4.2 Strategies which can be used to minimize the negative impact and maximize positive
once..............................................................................................................................................9
CONCLUSION AND RECOMMENDATIONS..........................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
In current corporate scenario, travel and tourism sector has been considered as one of the
emerging and potential sectors around the globe. However, this is due to the fact that level of
competition within this industry is increasing day-by-day and entrepreneurs are investing high to
establish the place. Herein, researcher aims at developing the understanding of the global
environment within which the travel and tourism sector operates (Clarke and Chen, 2012).
Further, report examines the historical evolution of tourism, current structure of the tourism
sector, external influences on tourism and the impact it has on host communities and the
environment. The main purpose behind carrying out this study is to gain understanding on travel
and tourism, the influence of government, effect of supply and demand and its impact on tourism
(Bernick and Boo, 2013).
In the current study, researcher evaluates the key historical development in the travel and
tourism sector of London. Along with this, report also demonstrates the structure of sector within
UK and the functions of government and other regulatory bodies associated within the sector.
Lastly, investigator will analyse the factors that affects the supply and demand of TUI group in
travel and tourism sector.
TASK 1
P1.1Key historical developments in travel and tourism sector of London
In the present world, London is considered as the most popular place in terms of
attracting tourist from around the globe. However, this is the destination which hosts over 30
million tourists every year. London’s vibrant culture and mind-blowing monuments attract
people from around the globe. Considering the travel and tourism sector of London, it can be
said that, it began from the ancient era when moving from one country to another was not so
common. People only visit to new destinations because of holy places (Lashley, 2007). But
contradicting to this, in the modern era, travelling is done with the aim of spending leisure time
or for any corporate work. However, the time is changing and meaning for the people about
travelling is also changing. Now-a-days, lot more people are visiting different parts, just for the
sake of leisure time or luxury. Further, the major reason behind this is the increase in spending
power of people that encourages them to invest more rather than saving for future. In the period
from 1660 to 1840 when people started moving to different places except for the reason of holy
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places (UK Tourism facts and figures, 2013). This encouraged the travel and tourism sector to
organise the first grand tour which belongs to only high level income people. However, this was
the biggest turn around the history of travel and tourism sector as people were highly attracted
towards and started saving money for travelling to new places so that they could see the world.
In context to London, industrial revolution is considered as the period which transforms
the entire course of travel and tourism sector of London. During the period of 18th and 19th
century when companies like Thomas Cook, Cox and Kings and TUI group entered into the
market and changed the level of travelling for the people (UK Tourism Statistics, 2013). Due to
this, several new destinations were developed as well as lot more number of people started
travelling to/from London. Further, in order to attract customers, companies started developing
affordable packages which were as per the expectations of middle class people. Through the
means of the target audience get wider and companies have more people to attract from. During
the period, first ever act related to the travel and tourism was developed which helped people in
availing reliable and suitable services. After this, people started to visit new places with the
curiosity to see their culture, food and festivals etc. Thereafter, development in infrastructure
played significant role as better facilities of roads and transportation helped in reaching to new
and attractive destinations for the people. Lastly, in the middle of 20th century, online booking
has helped several companies to establish themselves at international boundaries with more
reliability and ease (Manente, 2000).
P1.2 Structure of travel and tourism industry of London
Looking at the travel and tourism sector of London, it can be said that it consists of six
major components which includes visitor’s attractions, accommodations, transportation, travel
agents, tour operators and development authority of tourism. In context to visitor’s attractions,
London has several places which are either man made or natural. However, Lake District and
Blackpool beach are some of the naturally developed places for the visitor’s attraction
(Theobald, 2013). While on the other hand, manmade attractions in London are Alton Towers
which are highly popular among the people.
The second major component of travel and tourism sector of London is its transportation
or logistics facility. However, having such convenient transportation facility in such prominent
places helps tourist in moving from one place to another with ease. The major logistic sources
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that are available for people are rail, road, air and sea. Therefore, through the help of this,
government is enhancing the experience of people.
Other than this, accommodation is one of the major components of this sector which has
given great importance and attention by the authority and local ventures operating in this sector.
Further, hotels and other services provider’s makes valiant efforts to provide quality of services
to the visitors so that travelling experience of people can be improved (Daleand Oliver, 2005).
Along with this, there are several tour operators which offers attractive packages at affordable
prices so that they can influence people from around the globe to visit London once. Further,
travel agents are the mediators which help in creating link between tour operators and general
public. Lastly, development authority of London tourism consist of several regulatory bodies
which are responsible for developing various policies and regulations for carrying out the
operations effectively and efficiently in London. There are several private and public owned
companies operating in this sector which authority has to make sure that all are abiding proper
practices to carry out the operations and charging fair prices from the people (Gjeraldand
Oggard, 2010).
Therefore, it can be said that integration of all these components is essential for the better
functioning of entire travel and tourism sector of London. They are responsible for generating
value for money for each of the component and government authority should undertake potential
measures to maintain the level of quality so that visitors can have leisure and luxury of time in
London.
TASK 2
P2.1 Function of government, sponsored bodies and international agencies in travel and tourism
UK
In the present condition of travel and tourism sector, the major role of government,
sponsored bodies and international agencies is to ensure that companies operating in are abiding
each and every defined policies and regulations appropriately so as to avoid any cheat or fraud
situation. Further, the main function of governmental bodies is to develop management and
marketing of travel and tourism sector at local, regional and national level so that they can
promote their products and services in effective and appropriate way (Deuschl, 2006).
In context to London, there are several new destinations which are under the control of
legal bodies at local, regional and national level. Further, government authority is also
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responsible to present the report based on revenue generated and expenditure made by the travel
and tourism sector of London. This indeed leads in determining the overall growth attained by
the sector as well as profits earned during the functioning of one year.
Apart from these, there are few international agencies such as UN (United Nations),
WTO (World Trade Organisation), Civil Aviation authority and international air transport etc.
which focuses on ensuring the travel and tourism around the globe is carried out in effective and
efficient manner (Croes, 2000). However, WTO’s main aim of existence is promote responsible
and sustainable tourism in order to ensure environmental sustainability and economic growth.
Further, Civil Aviation Authority is responsible for planning and developing international
airports so that links between one country to another can be developed appropriately. Further, it
also makes sure that the suitability of air transport on two different grounds growth and safety of
passengers (Frechtling, 2012). While on the other hand, United Nations plays significant role in
the travel and tourism industry as it deals with the development of various rules and regulations
as well as policies and practices related to the functioning of the industry. However, it is the duty
of senior authority of businesses that are operating in travel and tourism industry to adhere all the
policies and rules to carry out operations in ethical and reliable manner.
P2.2 Local and national policy influence on success of travel and tourism sector of UK
There are several local and national policies that affect the course of travel and tourism
sector directly. The main purpose behind developing these policies is to make sure that,
exploitation of customer’s can be minimized as well as companies compete in fair manner so that
decorum of overall sector in UK can be maintained. However, various local policies have been
framed by the authority of London which constantly focuses on environmental protections while
on the other hand, national policies deals with the issues related to declining the number of
visitors, low revenues etc (Donohue, 2007). The effects of such policies can be considered as
partly positive and partly negative on the growth and success of UK travel and tourism industry.
Evaluating the negative impacts, it can be said that, these policies enforce the companies
operating in this sector to make the use more sustainable practices and take care of the
environment. Due to recent developments in travel and tourism sector UK, it has adversely
affected the society and environment.
Now-a-days, in order to enhance the level of functioning, cutting down of trees and
destruction of wild life is carried out at great extent which indeed affecting the natural lifestyle of
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the country. However, people from different parts of world are excited to have adventurous and
wild life trips has also increased the threat in maintaining the environment conditions
(Rodgers2001). Looking at this condition, it is important for the companies operating in it to
make sure that they abide all the policies and regulations so that negative impact on society and
environment can be minimized. Further, promoting sustainable and responsible tourism will
assist the course of industry in UK and also helps the operators to offer better places for the
people to visit and explore different parts of UK. Along with this, it will help in developing
better image of the places within the minds of people and they will be attracted and encouraged
to visit which indeed leads to generate higher revenues. Henceforth, it can be said that, various
national and local policies have both negative and positive impact on the success of businesses in
travel and tourism sector of UK (Ryan, 2003).
P2.3 Implications of the political changes on travel and tourism sector
Political environment of the country is considered to be one of the major macro factors
that affect the course of companies irrespective to their sector. Especially by operating in travel
and tourism sector, political environment can have direct impact on it. In other words, it can be
said that there is major impact of political changes on the cited sector because of the reason that
it increases the threat of fear and safety (Sisay, 2009). Following are the implications of political
environment on different countries:
 United Kingdom: In this, political parties affect the entire course of travel and tourism.
However, but considering the positive aspects of it, sector has been supported by the
government to a great extent. While on the other hand, sales and profitability of sector
has been declined due to increasing terrorist attacks and instability (Zhang, Chong and
Jenkins, 2002).
 India: Herein, despite of fluctuating political environment, travel and tourism sector has
always supported the growth and development of travel and tourism sector. There are
several new destinations which have attracted people from different parts of the world to
visit which directly leads to enhance the sales and profitability of local businesses.
 China: Constantly changing political environment has affected the course of travel and
tourism sector in China. At present, companies operating in this sector are forced to use
sustainable practices to maintain the level of the sector. This adversely affected the sales
and profitability of the entire industry (Trunfio, Petruzzellisand Nigro, 2006).
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 Thailand: In recent past, protest against political parties has resulted in generating
adverse results for the tourism sector companies. However, political instability has led to
generate less number of tourists which directly affected the sales and economic
conditions. Further, political unrest enforces the people to think twice before making any
decision regarding visiting to Thailand.
TASK 3
P3.1 Factors affecting demand of tourism
There are various factors that affect the demand of tourism sector of UK. However, it is
the duty of senior authority of travel and tourism sector to make sure that they evaluate and
analyse the each and every factors (Youell, 2000). Various factors have been explored that
affects the demand of tourism and among those factors, there are various forces that are not
controllable as well. In the below mentioned section, major factors are discussed in brief manner: Technology- Demand for travel and tourism get affected especially at the time when
travel agencies are using technological aspects on higher extent because that increases the
efficacy of service provision. Hospitality industry has been using technological devices
and sources at higher extent. These devices update the information about the company on
official web portals. Hotels are also investing huge resources in promotional aspects and
strategies so as to increase awareness among people and as a result, demand for tourism
can be augmented (Future trends in the tourism industry, 2012). Online presence of all
the entities shows their concern regarding technological up gradation. Economic aspect of the nation- The demand for tourism changes as per the purchasing
parity ratio and this also affects the economic aspects of the nation. Hence, from the
discussion, it is clear that people of UK have spending ability because of the stability in
economic aspects. The economy is also generating more profits due to stable inflow and
outflow of resources.
 Interest Rate- Interest rate prevailing in the economy affects the ratio of credits and
borrowings and this also changes client's decision regarding spending on travel and
tourism services. In UK, interest rate fluctuates and this directly impacts spending of
clients on different amenities. In the case, if the disposable income of people of UK is not
high then it is apparent that the demand of tourism will not be high because of their
inability to spend resources in the same activities (Zhang, Chong and Jenkins, 2002).
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P3.2 Supply changed to meet the effects of demand
In general, effect of demand can be managed and controlled with the help of bringing
change in supply. However, there are several factors that are affecting the course of demand of
tourism services within the UK. Following are the changes in supply which can help in meeting
effects of demands:
 Accommodations: In UK, tourists come from different parts of the world and are of three
major group’s high, middle and low income. In order to maintain the demand between
each of the category, discounts and offers within the packages are offered to the
customers in terms of accommodations so that more tourism services can be supplied to
the people (Trunfio, Petruzzellisand Nigro, 2006).
 Tour Operators: UK consists of high number of tour operators therefore; it becomes easy
to meet the demand of services. Further, they are able to promote the varied services to
large number of audience.
 Quality: In general, it is considered as the most important aspects for the business
irrespective to its sector. However, it is important for the TUI group to offer quality of
services to its customers so that they can satisfy wide range of needs and wants of
customers and generate higher revenues and profits.
 Range of Services: There are wide ranges of services that are offered by the TUI group to
its customer base like different packages consisting honeymoon package, adventurous
trip, historical trip etc. so that clients can select as per their suitability (Youell, 2000).
Further, individual can also develop its own package as per his/her requirement so that
desired results can be generated.
TASK 4
P4.1 Main positive and negative impact of tourism on economy, environment and society
In contemporary scenario, tourism sector has been growing widely because of the
attractive and luxury services involved in the service provision. In the present research study,
major destination of India that is Goa has been taken into account which serves the best view of
beaches to the visitors. Tourism of Goa is one of the major aspects that enhance the economic
prosperity of the country; however on the other hand, it has several pessimistic impacts as well
on the environment and economy of India (Lashley, 2007). Both the positive and negative
impacts are discussed in the below mentioned section of the report:
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Positive impacts: Source of Direct and indirect income- Tourism of Goa has been considered as a crucial
source for augmenting income level for the economy because tourist prefer to visit the
place for more than once in a year. This also increases value of the tourist destination and
as a result, government of India is able to spend more resources in tourism development
of Goa. Outsiders (Tourist from USA, Turkey and UK) help the country to acquire
foreign currency which is more vital for economic growth and prosperity of India
(Manente, 2000). The tourism of Goa is getting populous because there are numerous
sports activities conducted at the place which is not available on any other destination. It generates the opportunities of employment- It is an apparent fact that tourism of Goa
serves varied serves which entices and retains customers and this also helps the local
people to get the opportunity to involve them in serving such amenities. Tourism
generates huge opportunities of employment and in terms of results; it accelerates the
economic value of the nation. Direct and indirect both the sources of income further
allows people to spend more resources in travel and tourism services and the direct
impact it gives to tourism industry (Croes, 2000). This is the major reason for which
government of India has been assisting the economy in all the practices. Contribution in fostering the value of Gross National Product- Gross National Product
is the value given to a product and service by the chief authority of the country. The value
can be calculated for a particular period only and the major focus needs to be paid on
labor and manufacturing costs. With the help of GNP ratio, the frequency of economic
prosperity has been increasing. Hence, this is highly valuable for the growth of Indian
economy. Spending in services increases the growth aspects of tourism and as a result, it
augments the value of overall GNP of the nation (Zhang, Chong and Jenkins, 2002). Opportunities of earning foreign exchange- Tourism industry are famous in the
economy because it helps India to earn more money through foreign exchange. People
from other countries visit the nation frequently and as a result, ratio of visitors has been
augmenting continuously. Thus, the ratio of earnings helps the economy to get more
success opportunities in future also. Develops the opportunities of cross cultural relationships- Tourism entity when meets
different people learn diversified things and this also encourages them to become more
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culturally diversified. People who prefer to visit Goa are guided properly by the local
entities and at the same time, they can make others familiar also towards diversified
cultural and social values (Clarke and Chen, 2012). This another way of educating people
about the social and cultural aspects of Goa and this also attracts visitors towards tourism
of Goa. Hence, the overall development of the nation can be done through changing the
way of directing social and cultural aspects. Apart from this, social and cultural values of
different nations can be exchanged and awareness can be generated for social values and
beliefs.
Negative impact Tourism activities pollutes environment and natural resources as well- There are
various activities involved in tourism aspect that pollutes the natural environment and
society as well. When people visit to different places through fights, it generates more
pollution in the environment. Apart from this, there are several practices as well that are
integrated in travel and tourism which highly pollutes the environment (Bernick and Boo,
2013). Inconsistent source of income- Tourism is not a consistent source of income because
people prefer to avail tourism services during seasonal time period only. This affects the
degree of employment and at the same time also hampers economic growth of the nation.
 Increasing the degree of criminal activities- Travel and tourism has been involving
several activities which encourage people and other integrated persons to indulge
themselves in criminal and illegal activities. This has direct negative impact on the
society and it also affects tourism aspects of local place (Theobald, 2013).
P4.2 Strategies which can be used to minimize the negative impact and maximize positive once
Here, in the below mentioned section, several strategies have been mentioned which can
be implemented properly to minimize the negative impacts:
 There should be proper planning of the activities so that pollution and other aspects can
be controlled. The frequency of issues involved in tourism can be reduced through the
same because the people involved will plan and schedule each and every aspect about
tourism (Ryan, 2003). Thus, pollution control strategies can also be developed at the
same time for reducing the issues of tourism
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 The authority of travel and tourism should put a close eye on the activities involved in
travel and tourism as this can reduce criminal activities. Proper emphasis should be given
to traffic management so that pollution and other issues can be controlled. Hence, the
value of tourism can be maintained. Awareness should be generated among people so that they can contribute more in
protecting the environment through varied facets (Donohue, 2007). In such respect, the
value of go green strategy can be adopted so as to prevent social consequences.
Ways to maximize positive impacts
 All the staff members’ needs to get training and education on different aspects so that
better services can be provided to the visitors. The staff members have to learn different
methods through standard of tourism services can be encouraged. This is also necessary
so that clients can be retained. Training is also vital for performance upliftment of the
employees and as a result they will be able to contribute more in tourism development.
 Projects related to tourism activities needs to be developed more so that economy can be
developed at faster rate. Further, the tourism entity should make possible investment in
different projects (Bernickand Boo, 2013).
 It is vital for the ruling bodies to develop new provisions for travel and tourism
management so that new opportunities for employment can also be developed. This is
crucial in terms of increasing the standard of living in the society.
CONCLUSION AND RECOMMENDATIONS
In conclusion to the above report, it has been observed that, travel and tourism sector is
one of the essential parts of the country in terms of economic growth and employment
opportunities. Now-a-days, lot more people are visiting different parts of the just for the sakes of
leisure time or luxury. Further, the major reason behind this is the increasing spending power of
people has encouraged them to invest on them more rather than saving for the future. Further,
researcher analysed that there are several major components of travel and tourism industry which
are interrelated to carry out operations in more effective and efficient manner. Thereafter, local
and national policies plays crucial role in promoting and encouraging sustainable and responsible
tourism.
On the basis of current condition of travel and tourism sector in UK there are various
recommendations that can be provided to the senior authorities which are as follows:
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 Government should promote and encourage companies to indulge sustainable tourism
practices.
 Further, companies like TUI Group and Thomas Cook to undertake corrective measures
in order to mitigate the negative implications of travel and tourism sector on society and
environment.
 It is important for the government and local authority to promote and market the new
destination with its culture and ethnicity so that people can be attracted towards it and
place generate higher revenues.
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REFERENCES
Journals and Books
Bernick, N. L. and Boo, S., 2013. Festival tourism and the entertainment age: interdisciplinary
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Clarke, A. and Chen, W., 2012. International Hospitality Management. Routledge.
Croes, R. R., 2000. Anatomy of Demand in International Tourism: The Case of Aruba. Uitgeverij
Van Gorcum.
Dale, G., and Oliver, H., 2005. BTEC National Travel and Tourism. Heinemann.
Deuschl, E. D., 2006. Travel and Tourism Public Relations: An Introductory Guide for
Hospitality Managers. Routledge.
Donohue, R., 2007. Travel and Tourism Public Relations. International Journal of Contemporary
Hospitality Management. 19(1) pp.96–97.
Frechtling, D., 2012. Forecasting Tourism Demand.Routledge.
Gjerald, O, and Oggard, T., 2010. Exploring the measurement of basic assumptions about guests
and co-workers in the hospitality industry. International Journal of Contemporary
Hospitality Management. 22(6).pp. 887-909.
Lashley, C., 2007. Discovering hospitality: observations from recent research, International
Journal of Culture. Tourism and Hospitality Research. 1(3). pp.214 – 226.
Manente, M., 2000. Tourism consumption and interregional economic impacts in Italy.
International Journal of Contemporary Hospitality Management. 12 (7). pp.417 – 423.
Rodgers, J. 2001. Travel and Tourism. Heinemann.
Ryan, C., 2003. Recreational Tourism: Demand and Impacts. 2nd ed. Channel View Publications.
Sisay, A. 2009. Historical Developments of Travel and Tourism in Ethiopia. The Author.
Theobald, F. W., 2013. Global Tourism. Routledge.
Trunfio, M., Petruzzellis, L. and Nigro, C., 2006. Tour operators and alternative tourism in Italy:
Exploiting niche markets to increase international competitiveness. International Journal of
Contemporary Hospitality Management. 18(5). pp. 426–438.
Youell, R., 2000. Travel and Tourism. Pearson Education Limited.
Zhang, H. Q. Chong, K. and Jenkins, L. C. 2002. Tourism policy implementation in mainland
China: an enterprise perspective. International Journal of Contemporary Hospitality
Management. 14(1). pp.38-42.
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<http://www.ttgmena.com/Future-trends-in-the-tourism-industry/>. [Accessed on 29th
January, 2016].
UK Tourism facts and figures. 2013. The Telegraph, [Online] Available at:
<http://www.telegraph.co.uk/earth/environment/tourism/8587231/UK-Tourism-facts-and-
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