Analysis of the Travel and Tourism Sector: A Comprehensive Report

This report provides a comprehensive analysis of the travel and tourism sector, beginning with its historical development and current structure, highlighting key sectors like hospitality, tour operators, and transportation. It examines the roles of government bodies, sponsored organizations, and international agencies in shaping the industry, including the influence of economic policies. The report further explores factors affecting tourism demand and supply changes, particularly concerning the TUI group. It then assesses the positive and negative impacts of tourism on economic, socio-cultural, and environmental aspects, proposing strategies to mitigate negative effects and maximize benefits. The analysis draws from articles and data to provide a holistic view of the sector's dynamics and future prospects.

Travel And
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Historical development in Tourism and travel sectors.....................................................3
1.2 Structure of Travel and tourism industry..........................................................................4
The various sector of the industry works in collaborate way and each sector plays significant
role in growth of industry. Functions of organisation are associated in well structured and
systematic manner. Tourism is huge and can be broken into number of sectors...................4
TASK 2............................................................................................................................................6
2.1 Analysing the function of government, sponsored bodies and international agencies in
trace and tourism industry......................................................................................................6
2.2 Identifying the way local and national economic policies influence the success of travel
and tourism sector...................................................................................................................7
2.3 Implication of Political change on travel and tourism industry in different countries.....8
TASK 3 ...........................................................................................................................................9
3.1 Factors affecting tourism demand....................................................................................9
3.2 Change in the supply of TUI group................................................................................10
TASK 4.........................................................................................................................................10
4.1 The main positive and negative impact of economic, socio culture and environmental10
4.2 Strategies for reducing negative impact and maximizing impacts for TUI group.........11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The objective of the study is to understand travel and tourism industry with reference to the
article name “London welcomes new visitor visa for Chinese tourists. The report will
include the history and structure of the tourism and travel sector in context of both articles.
The research will have emphasizes on determining the influence of local, national
government and agencies on tour and travel industry. The report also have focus on
identifying the effect of supply and demand on tourism sector. The overall impact of
tourism activities would be analysed in relation to macro environmental factors.
TASK 1
1.1 Historical development in Tourism and travel sectors
The travel and tourism is the fastest growing industry in world. The share of tourism
sector have risen significantly in every sector. On the basis's of historic data it can be stated that
the travel and tourism has contributed a lot towards economic development of country and
generating employment in UK. In traditional times the tour and travel industry was confined to
provide and conduct informal tours in form of moving from once place to another at holy and
religious places. But in recent development in tourism sector has widened the scope of travel and
tourism industry. Now travelling is not only confined for the purpose of recreational and leisure
activities, it has been conducted for various other purposes such as education, knowledge
seeking, interest, health etc.(Carver and Byrd, 2008)
The need of travel and tourism products and services are being identified by nomads who
travel around the world in search of food and shelter. The aim of traveller in 1500 Bc was to
arrange for food and trade globally. This has given rise to barter system. The tourism was
developed by European Union.
In 14 century Columbus sailed westward and Ascot Da gamma has conducted travel
activity. The purpose off travel was to earn money. From that period business travel has been an
integral part of tourism.
The grand tour was being facilitated by British elite class between late 16th and early 19
Th centuries had given rise to new horizons of tourism. During industrial revolution period there
was increase in demand for tourism products and services. The reason for increase in demand
was mainly the introduction of tour package services in 1841.The package include paid holiday

benefit to middle class people of the society. Change in life style has created demand for
development and recreation of travel and tourism sector. Traditional period the focus of tour and
travel organisation was to generate income. But now the industry has been developed and has
focussed on attracting more number of visitors by offering them various tour packages, and other
attractive services such as online booking. The aim of the organisation is to influence visitors in
positive manner.
Sea transport-This transportation option was established in year 1831.This transportation option
intends to provide memorable experience to travellers.
In 20 century rail transport has created a new picture of tourism and travel industry. It
was established in 1820.This has created a new age revolution. The aim of this development was
to provide ease in travelling to travellers. Air travel was another development in tour and travel
industry. It was first introduced in 1992.Now it has been considered as best form of travelling.
Growth of package tour is the other development in industry. The intention of this
development is to provide accommodation services to travellers and visitors
(Chang and Chen, 2008)
1.2 Structure of Travel and tourism industry
The various sector of the industry works in collaborate way and each sector plays significant role
in growth of industry. Functions of organisation are associated in well structured and
systematic manner. Tourism is huge and can be broken into number of sectors.
Hospitality:Hospitality is the main sector of tour and travel industry. This segment intends to
provide optimum level of services to its guests and travellers to meet their requirement of
accommodation.
Tour operators: Tour operators refers to the organisation that manages and control different
components such as facilities, financial services, accommodation, and other ancillary services.
They provide such services in form of package that assist them in attracting more number of
visitors. This enterprise motivate consumers by catering all the area of tourism that include
inbound, outbound and domestic services.
Travel agent:The role of travel agent is to provide various and complete information to
travellers and visitors about the various travel options. They can provide advice related to
selection of travel option as per traveller suitability and requirement.

Ancillary services:There are various services that are supported to travel and tourism industry
these include financial services, insurance, marketing, guide, media, private training, etc. These
services are provided by private enterprises. Apart from private bodies Travel companies are
being supported by government or public department. The various public department include
culture, media and sports. These all department provide support to travel industry at national
level.
Accommodation- Tour and travel sectors provides various form of accommodation facilities
such as cottages, apartments, villas, hotel and guest accommodation for the travellers or visitors.
Transportation:This is the main segment that makes tourism industry sustainable. It enables
tourism industry to conduct various trade practices. It is significant factor in tourism industry as
it enables people to travel and visit different places. Transport operates in different ways in
London. These are:
Air travel – It plays significant role in travel and tourism sector. Air travel assist industry in
facilitating the domestic and international visitors.
Road transport-It provides adventurous experience to travellers and visitors.
Cruise travel-This transportation option intends to provide memorable experience to travellers.
Attraction-Natural interaction is the fundamental element that initiate tour and travel company.
It allows organisation to uses various natural resources in order to attract more number of visitors
from worldwide (Christou, Sigala and Gretzel, 2012)
Structure of Travel and tourism industry
The various sector of the industry works in collaborate way and each sector plays
significant role in growth of industry. Functions of organisation are associated in
well structured and systematic manner. Tourism is huge and can be broken into
number of sectors.
Hospitality:Hospitality is the main sector of tour and travel industry. This segment intends to
provide optimum level of services to its guests and travellers to meet their requirement of
accommodation.
Tour operators: Tour operators refers to the organisation that manages and control different
components such as facilities, financial services, accommodation, and other ancillary services.
They provide such services in form of package that assist them in attracting more number of

visitors. This enterprise motivate consumers by catering all the area of tourism that include
inbound, outbound and domestic services.
Travel agent:The role of travel agent is to provide various and complete information to
travellers and visitors about the various travel options. They can provide advice related to
selection of travel option as per traveller suitability and requirement.
Ancillary services:There are various services that are supported to travel and tourism industry
these include financial services, insurance, marketing, guide, media, private training, etc.
These services are provided by private enterprises. Apart from private bodies Travel
companies are being supported by government or public department. The various public
department include culture, media and sports. These all department provide support to travel
industry at national level.
Accommodation- Tour and travel sectors provides various form of accommodation facilities
such as cottages, apartments, villas, hotel and guest accommodation for the travellers or
visitors.
Transportation:This is the main segment that makes tourism industry sustainable. It enables
tourism industry to conduct various trade practices. It is significant factor in tourism industry
as it enables people to travel and visit different places. Transport operates in different ways in
London. These are:

Air travel – It plays significant role in travel and tourism sector. Air travel assist industry in
facilitating the domestic and international visitors.
Road transport-It provides adventurous experience to travellers and visitors.
Cruise travel-This transportation option intends to provide memorable experience to travellers.
Attraction-Natural interaction is the fundamental element that initiate tour and travel
company. It allows organisation to uses various natural resources in order to attract more
number of visitors from worldwide
TASK 2
2.1 Analysing the function of government, sponsored bodies and international agencies in trace
and tourism industry
The government has significant role to plays in travel and tourism industry.
The various international organisations such as international Air transportation, regional
tourism organisation, and many more organisations are interested in global tourism. International
agencies aims at reducing negative impacts of tourism, fostering sustainable development of
tourism industry The various function of international organisation include, generating market
awareness, promoting tourism products and services, promoting competitive and sustainable
tourism policies and instrument. Various projects have been implemented by United Nations
World Tourism organisation in order to provide support to travel and tourism sector. The project
intends to increase the energy efficiency and renewing energy usage of small and medium travel
enterprise. The other purpose of project is to deliver information, technology and training for
TUI.

As the national government has identified that tourism sector is playing significant role in
the economic development of country. The objective of national government include developing
tourism sector. The function of national government is to provide support to TUI in identifying
and capturing various opportunities in industry. The other role of national government is conduct
various planning activities such as formulation of policy related to tourism industry, creating
marketing strategies for organisation, granting financial support, infrastructure development,
organising various training programmes. The national government has focus on increasing the
heath and vitality of tourism sector.
Sponsored bodies such at World travel and tourism council aims at promoting tourism as
leading industry. Encouraging government to identify tourism industry as a top prior
organisation. The function of sponsored bodies include demonstrating the significance of travel
tourism sector. These enterprises are being funded by government to provide support tourism
industries. There main role is to help tourism business to grow by investing in innovation.
The Visit Britain is the name given to British authority. The authority is incorporated
with the purpose of marketing England in order to support country to attract tourist. The aim of
the authority is to built national tourism agency, enhancing the value of inbound tourism. Their
role is to assist organisation in managing their tour offices and activities overseas in order to
create impression of visitors (Clarke, I. III, and et.al., 2009)
2.2 Identifying the way local and national economic policies influence the success of travel and
tourism sector
The economic and domestic policies of legal authority have great influence on business
activities of travel and tourism industry. The policies that are framed by local government have
focus on developing region by formulating growth strategies. These policies have great influence
on various decision of TUI and has great effect on its strategies. The impact of these policies are:
Economic development-Local and economic policies has great influence on overall economic
development of country. The economic growth of the country is totally dependent on effective
integration of policies. The rural and area of tourism are being improved and enhanced by same
process. This process has provided the facilities of transportation that has assisted travel
organisation in expanding their core business activities and enhancing growth. It has been
identified that economic polices have positive influence on the growth and development of travel
and tourism industry.

Sponsorship and Funding-These functions are performed by public and private bodies with
intention of making country look attractive and effective. These organisations provide financial
support to travel company and support them in exploring various opportunities in the market and
encouraging them to invest money in promoting tourism products as well as services.
Economic Policies-This include both fiscal and monetary policies. The various taxation, pricing
strategies are included in economic policies. These have direct influence on the purchasing and
selling power of travel sector (Heung, Kucukusta and Song, 2011)
Comparison of China and UK government policies
UK government intends to promote country interest through a healthy, effective
relationship with China. The function off government is to demonstrate international security,
enhance mutual prosperity and assist China in their process of modernisation and formulating
reforms.
2.3 Implication of Political change on travel and tourism industry in different countries
It has been identified that travel and tourism sector plays very significant role in
economic development of country and assisting country in generating income. It also intends to
provide country support in delivering effective and attractive services to visitors. Government
plays very vital role in providing support and protection to visitors. The regional unrest, political
instability and high level of confusion may have negative influence on travellers and visitors.
There are some instances which has great impact on overall travel and tourism, industry.
Political factors has great influence on the travel sector. Political factors have great influence on
the various decision of the company and also on its strategies (Policy Impact analysis.2016)
These elements have great impact on business activities of firm. The implication of political
change on travel and tourism industry in three different countries are:
India-The Indian government and political parties has played crucial role in enhancing the
growth of Travel and Tourism sector. They have contributed a lot towards development of this
industry. The political stability in country has enabled business unit to expands its segments and
allow more attractive services to their guest.
Ukraine-The political development has built great impact on tour operators in the country.
Government policy related to liberalising Visa procedure has provided tour operator an
opportunity to foster growth and develop their core business activities. The political factor may
have negative impact on tourism industry. The unrest in country and political instability has great

influence on travellers. The unethical practices may create threat for visitors. It has great impact
on the development of country. For instance the crises in Ukraine has created barriers for the
country to grow. This has resulted in force and unrest in the country. The consequences' of
unrest and political instability have negative impact on tourist and major implications are being
suffered by travels and tourism sector (Jackson, 2008. )
TASK 3
3.1 Factors affecting tourism demand
It is required by TUI to identify various changes such as economic, political, social,
geographical, destination and individual factors. The evaluation will help organisation in
eliminating the negative impact and influence of these factors on business activities. It will allow
them to explore and capture various opportunities in market.
Economic factors-The various economic factors such as individual income, inflation, economic
crisis in country has great effect on the demand of tourism product and services. These factor
have great impact on consumer buying behaviour. It also has great effect on purchasing power of
firm. Cost and exchange rate are the two main elements that are considered by visitors while
choosing destination. Cost factor is associated with transportation and other services that are
offered by travel and tourism sector.
Geographic factors-The geographic factors include all environmental factors and circumstances.
It also includes destination attractiveness, location, distance etc. It is essential for TUI to
consider seasonal effect on its business activities.
Political factors-The various political factors include government policies and practices that has
direct effect on business activities of travel agency. Employees working with TUI is required to
full fill all legal formalities related to Visas, managing currency. It is their role to keep
themselves and company updated with all code of conduct related to the industry.
Destination factor-It is the most significant factor as these elements helps in attracting visitors
and travellers. It is required by TUI to consider various factors such as safety and security of
visitor when selecting transportation channel. These are the major constituent that can assist
organisation in gaining customer loyalty and increasing demand for their services. It will enable
organisation to increase their market share and enhance growth.

Individual factors-The company is required to accept that every individual have different
percepetion of living.The various individual factors include age,gender,religion, income and
influence of family (Litvin,Goldsmith and Pan, 2008)
3.2 Change in the supply of TUI group
Tourism supply can be refereed to those activities that are involved in good and services
so that demand and consumption of tourism can be meet. To attract more customer toward their
firm TUI group has make major change in the supply of their services few are mentioned below
Transportation: Tourism industry is growing industry and major changes are made into
this. To make travelling more comfortable new options are introduced. For professional who
need to travel lot in short time require fast travelling which could not be possible with train and
buses so for them TUI is promoting cost efficient airline services which provide comfort and fast
services. To attract family people in tourism car services are provided it makes it possible for
them to travel within the market which are not possible in train travelling as they run in outskirts
of city. They are also planning to provide local guide to make their experience more enjoyable.
Accommodating: To provide comfort and convenience to travellers TUI group also
provide lodging, hotel and guest house facilities. Along with it to attract customer they are also
providing their customer with luxury meal. They also trying to provide fast services to their
customer by understanding their need so that they remain satisfied by the services of TUI group.
Recreational activity: These activities are also included in the overall package to make
the experience of traveller more fun. In these travellers are included in to extra activities in their
free time it may include skydiving, rock climbing, mountain biking, horse riding, paragliding etc.
(Mehmetoglu, 2014)
TASK 4
4.1 The main positive and negative impact of economic, socio culture and environmental
TUI group has to pay special attention on the strategies they are using so that they can
earn maximum profit from it. The current strategy of cited firm is to reduce the negative impact
company activities has on the tourist destination and increase the positive impact which not only
affect the firm but also the destination place. Some negative and positive impact of this activity
on economic, socio-cultural and environmental are mentioned below:
Economic: Economy of country is majorly impacted by tourism activity. Some major impact on
economy is it strengthen the economic backbone of nation. By this the tourist destination or

nation earned foreign exchange earning, play major role in the contribution of nation GDP and
overall revenue. Major investment on infrastructure are also done. The major negative impact it
has that it give birth to inflation in countries, opportunities for local shopper decrease, job
become seasonal.
Socio-cultural: Its study of attitude and behaviour of the person. Positive impact of this are
included promotion of nations culture and heritage, local job are enhanced or enhance the job
opportunity for local people, support the local people and promote peace among countries. With
tourism the other culture also enter in country sometime people forget their own culture and start
accepting the culture of other people.
Environmental: Tourism gas strong connection with environmental factors. Tourism lead to
proper infrastructure transportation are made so that one place can be linked with other. But it
also has negative impact on environment it leads to high pollution which not only include air but
also land and noise. 4.2 Strategies for reducing negative impact and maximizing impacts for TUI
group (Middleton and Clarke, 2012.)
4.2 Strategies for reducing negative impact and maximizing impacts for TUI group
It is analysed that producing products of TUI group impact on Spain and Thailand tourist
destination both positively and negatively. However, fluctuation in interest rate and income tax
rate affect financial position, changes in tourists' interests towards destination, technological
changes affect profitability of the destinations(Yoo and Gretzel,2011). Therefore, for creating
balance as minimizing negative impacts and maximizing positive impacts, following strategies
can be applied as:
Analysing tourists' requirements:
It is essential to analyse tourists' interests towards tourist destination belonged to different
countries of the world. Therefore, different ideas are generated for attracting and encouraging
them at higher level. It will be efficient for increasing demand and sustaining their interest for
longer time period. In this regard, profitability of destination and market position of destinations
can be sustained effectively. Thus, identifying tourists' requirements and their interests will be
effective for maximizing its positive impact at higher level,
Action oriented strategies:

For minimizing negative impact of changes in social and economic factors on Spain and
Thailand tourists destinations, it is required to prepare strategies which are action oriented. In
which, cost required to incur, time consumed for project plan and workers and guides'
performances are recognised. Therefore, preparing strategies and decision making regarding
satisfying tourists are determined. It will be helpful for increasing attraction of visitors and
improving its effectiveness at maximum level.
Adverting destinations:
Using advertising tools as social and print media such as; newspaper, magazines, using social
networking sites and online marketing is to increased tourists' attraction as well number of
visitors. However, it will be benefited for encouraging visitors for destination and maintaining
good relation with them. It is also related with increasing profitability and competitiveness in
comparison to other countries' destinations. Along with this, market position can be analysed in
terms of destinations and increasing number of visitors. It influences profit level of the
destinations at higher level. Therefore, increasing customer loyalty towards destination will be
enhanced as well they will demand for visiting the destination on larger scale (Molz, 2012.)
Adopting new technologies:
As per analysing recent market trend, it is required for both Spain and Thailand destinations to
adopt new technologies for facilitating services to its tourists. Likewise, it improves efficiency
and quality services at maximum level. Similarly, it will remain easy for workers to contact with
tourists and aware them regarding new creations in its services. Thus, adopting new technologies
will be efficient for reducing technological issues and able to maximize tourists' attraction
towards its destination.
Hence, by following on above mentioned strategies will be effective for increasing number of
visitors and improving efficiency of Spain and Thailand destinations. Including this, it will be
benefited for creating proper balance between demand and supply of services. However, it will
be effective for increasing profit level and competitiveness of the destinations on larger scale in
comparison to other countries' destinations. Therefore, negative impacts of environmental factors
can be reduced as well positive will be maximized effectively (Moutinho, 2011)

CONCLUSION
It has been concluded from the study that travel and tourism has contributed a lot towards
economic development of country. It has been proved that various external factor have great
influence on business activities of travel and tourism industry. It has been identified that
government has played significant role in enhancing the growth of tourism sector. The history of
travel and tourism sector are being highlighted by report in order to show various development
in the organisation. It has been demonstrated the way government activities has influenced on
growth of travel company. It has been analysed from the report that political consequences are
mainly suffered by these industries.
The various strategies have been suggested by the project which can be used by TUI for
minimising the effect of various factors on its business operation. These plan Wil help firm in
reducing various threat to the industries and gaining competitive advantage in market.

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<http://tourismeconomics.com/economicimpact/policy-impact-analysis>[Acessed on 31 October
2017]

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