Analysis Report: Travel and Tourism Sector Developments

This report provides a comprehensive analysis of the travel and tourism sector, focusing on key historical developments, the structure of the sector, and the roles of government, government-sponsored bodies, and international agencies. It examines the influence of local and national economic policies, including GDP and currency exchange rates, on the industry's success. The report also explores the implications of political changes, such as safety policies, on tourism. Furthermore, it investigates factors influencing tourism demand, such as consumer income, tastes, and the cost of complementary goods. The positive and negative impacts of tourism are evaluated, along with strategies to minimize negative effects and maximize positive ones. The report uses Thomas Cook as a case study and provides an overview of the sector's dynamics and challenges. The report covers topics such as transportation, accommodation, and attractions and their influence on tourism.

Travel and Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Key historical developments in travel and tourism..........................................................3
1.2 Structure of travel and tourism sector..............................................................................3
TASK 2............................................................................................................................................4
2.1 Different function of government, government-sponsored bodies and international
agencies..................................................................................................................................4
2.2 Influences of local and national economic policy............................................................5
2.3 Different implications of political change........................................................................6
TASK 3 ...........................................................................................................................................7
3.1 Various factors influencing tourism demand...................................................................7
3.2 Changes in supply for effects of demand.........................................................................8
TASK 4............................................................................................................................................9
4.1 Positive and negative impacts of tourism.........................................................................9
4.2 Different strategies for minimising negative and maximising positive impacts............10
CONCLUSION .............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
This present report is based on the travel and tourism sector of the Thomas cook. Thomas
cook is the world known travel company which is established by the Thomas cook at the
international level (Moutinho, 2011). Present report contain all relevant information like,
different key historical developments and structure of the travel and tourism sector. What is the
different function of government, international agencies and government-sponsored bodies in the
travel and tourism sector and how local and national economic policy can affect the success of
travel and tourism sector. What is the different implications of political change in various
countries of travel and tourism sector and various factors which influencing the tourism demand.
This present report also contain the information like, how the supply changed with effect of
demand. It has been also evaluated for the positive and negative economic, social and
environmental impacts of the tourism and various strategies which can be utilized for minimising
the negative impacts and maximising the positive impacts.
TASK 1
1.1 Key historical developments in travel and tourism
The travel and tourism sector is one of the largest sector in the world. There are different
factors which are effective for the travel and tourism sector. They are as follows:
 The first period is 1830-1840: In the period of 1830-1840, the tourists are used for
visiting in the different destinations. In this period, the zoological park covering the 15
acres area for the development of the travel and tourism industry. It provide the different
tropical plants and animal etc.
 Period of 1870-80: In the period of 1870-80, the travel and tourism sector started for
emerging as the new attraction for the tourists. At the time of winters, it provide the ice-
skating to the tourists (Dickinson, and Lumsdon, 2010).
 Period of 1880-1910: In the period of the 1880-1910, the provide the new exhibition
place for the tourist. In this culture, the new culture has explore on the demand of the
tourist.
1.2 Structure of travel and tourism sector
The travel and tourism sector can be divided into different factors of economy. These all
factors of Thomas cook travel and tourism sector are as follows:

 Transportation: It is one of the factor of travel and tourism sector in which it provide the
transport services for the tourist and want to reach at the destinations of tourist. The
transport services like, taxis, airlines and railways (Evans, Stonehouse and Campbell,
2012). So, many people use transport services for their effective visit. Information and coordination: Information and co-ordination is also one of the sector of
the travel and tourism sector in which it provide the different informations to the tourist
and make coordination with them. The travel sector need to provide the appropriate
information when the tourist visit the new and historical place. Accommodation: Accommodation is the effective sector of travel and tourism sector. The
travel sector should provide the different facilities to the tourism when they travelling far
from their place. The different accommodation like, effective place, hotels, better food
and other entertainment services etc. Tour operations and wholesalers: The tour operations and wholesalers provides the bulk
services in travel and tourism sector for the tourist. There are different services like,
meeting and events, attractions, tickets in the package which all provides by the Thomas
cook travel and tourism sector. Attractions: It is one of the factor in which Thomas cook travel and tourism company
attract their tourist customers for the long destination. The effective attraction like,
cultural, natural, historical and entertainment attraction etc. Government: Government is also a sector of the travel and tourism sector in which the
government provides effective planning, promotion, rule and regulation and advice to the
travel and tourism sector (Ghimire, 2013).
 Meeting and events: In which the travel and tourism sector conduct different meeting and
large and small events for their tourist customers.
TASK 2
2.1 Different function of government, government-sponsored bodies and international agencies
The government playing an important role in the travel and tourism sector. Government
provides the different policies and strategic planning for the travel and tourism sector.
Governments generate the rules and regulations for the legal work activities (Spenceley, 2012).
The government should provide the different area like, infrastructure, industrial, social and

economical etc. the government involvement is important for the growth of the tourism sector
because it implement the strategic planning for the travel and tourism sector.
There are different development of destination for the company tourist people. They are
as follows: International agencies: The international agencies have governmental and government
sponsored for the tourism sector. This organisation provides different cooperation and
coordination at the national level of the economy. The government can influence the
national governments in case of the tourism sector. This organisation take responsibilities
and concern when there are large number of tourism activities in the travel company. In
case of the industrial countries, the international organisations provides the transportation
and cooperation for their tourist people. So, the international agencies is one of the sector
which provide the effective destination for their tourist people. Local government: It is also one of the sector which is effective for the development of
destination for their tourist. In the earlier time, the local government was responsible for
the growth and success of the travel and tourism sector. For the transportation services,
the local government generate the railway for the tourism sector in the UK. So, the local
government provide the local tourism destination for their tourist people.
 United nations world tourism organisation: In case of the tourism, it is one of the
important organisation for directing the international organisation. It is the important and
effective agency of United nations in which it reduce the different issues which is
creating in the tourism sector (Lipman and et. al., 2012). So,it is one of the sector of
travel and tourism sector.
2.2 Influences of local and national economic policy
The local and economic policy can influence the success of the travel and tourism sector.
In case of the UK, the travel and tourism sector survive in the tourism sector because the GDP
rate is high in the UK and most of the company cannot pay the high GDP rate. Because of the
high GDP rate, the number of the tourist people has decreased in the UK.
The local and economic policy is changing according to the modern time and it helps in
maximising the number of tourism people in the travel and tourism sector (Perch-Nielsen,
Sesartic and Stucki, 2010).

The travel and tourism company should know about the policies of the local government and can
take benefits from the effective policies of the government the governmental economic policies
can indirectly affect the travel and tourism sector. The affect can be related from the monetary
policy of government. The main aim of the monetary policy is not for the tourism industry but
the monetary policy of the government does totally reflect the exchange rate of the currency. If
the currency of the one country falls down in that case the number of the tourism people
increases and if the currency of the one country increases in that case, the number of the tourist
people will decreases. So, the number of the tourism people will depend on the rate of the
currency. Most of the government policies is helpful for developing the travel and tourism sector.
The positive change in the economic policy will increase the number of tourist and the negative
change in economic policy will decrease the number of the tourist people. The positive changes
are required for the development of the travel and tourism sector. So, the local and economic
policy can influence the travel and tourism sector of UK economy.
2.3 Different implications of political change
The Thomas cook travel and tourism industry is one of the popular and largest industry
of the UK economy. Tourism is one of economic sector of the different countries. The tourism
industry of the UK country has been affected by the political changes and used as tool for the
political changes. The number of the tourist depend on the political changes. If the political
changes are positive then it will maximise the number of the tourist and if the political changes
ar negative in that case the negative changes of political will decrease the number of the tourist.
So, it totally depends on the situation of the political changes (Hudson and Thal, 2013).

In the modern time, it provide the safety policies for the UK economy tourism. The
safety policies is one of the necessary factor for the travel and tourism industry because the
safety policies are helpful for motivating the tourist for the effective travelling and provide the
better security and legal boundaries to the travel and tourism industry. The tourism and political
make a effective relation for the tourism. The travel and tourism industry can reduce the poverty
by the tourism because it provide the employment for the employed people and can take the
political action for the development of the tourism sector. The political changes are affecting
the travel and tourism sector of UK. The number of the tourist people of UK is more than the
European number of the tourists (Scott, Peeters and Gössling, 2010).
TASK 3
3.1 Various factors influencing tourism demand
Tourism demand is based on their taste, income and cost of complementary goods.
Demand means capacity of purchasing any goods and services at the possible price. For demand
in specific place, the individuals need to provide the destination for wants and needs of the
tourist people. The tourism industry demand includes, accommodation, health and care, holidays
etc. There are different factors which can affect the demand of the tourism. The actors are as
follows: Income of consumers: It is one of the factor which influence the demand for the tourism.
If the income of the consumers increases in that case, the demand for the tourism will be
increases and if the income of the consumers decreases in that case, the demand for the
tourism will be decreases. The population of the country is one of the source for the
tourism which identify the financial condition of the consumers. So, it is one factor which
can affect the demand for the tourism. Taste of consumers: Taste of the consumers is also a factor which can affect the demand
for the tourism sector. If the taste for destination of the consumer is based on the
consumer believes in that case, the demand for tourism will be decreases and if the
consumers demand is based on their needs and wants in that case, the demand for the

tourism will be increases. So, it is a demand for tourism which is totally based on the
consumers believes and their taste (Peeters and Dubois, 2010).
 Cost of complementary goods: It is a factor of the demand for the tourism at the UK
economy. In case of the air travel, if the prices of the air travel increases then the demand
for the tourism will decreases and if the prices of the air travel decreases in that case, the
demand for the tourism will increases.
So, these factors totally depend on the demand for the tourism sector.
3.2 Changes in supply for effects of demand
The supply is one of the component of the tourism industry. There are different resources
which is needed for the supply of the tourism (Wu, and Shi, 2011). They includes, infrastructure,
telecommunications and accommodation. These all are the important resources which is required
for the tourism industry. The tourism industry employ many companies which is effective for the
supply of services to the tourism industry. There are different supply factor for the different
elements. They are as follows: Natural or environment resources: It is one of the resources for the demand of the
consumers. These resources includes, natural improvement, environmental awareness,
resources and ecotourism etc. the environmental and natural resources are utilized for the
keep up the demand for the supply. Man-made resources: It is also a type of resource which is made the man. The man-made
resource includes, power lines, road, schools, water supply systems, dams and sewage
disposal systems. The man-made resources is one of the recreational facilities which is
develop for the supply. So, the man-made resources are important for increasing the
supply of the resources. Transportation: Transportation is one of the resource which is important for the tourism
industry. Without the transportation, the tourist cannot reach their destination. The
transportation includes, railway, airlines and taxis etc. so, the transportation is important
factor for the development of the travel and tourism industry. Operating sector: It is also the main resource which is important for developing the
tourism industry. The operating sector includes, accommodation, transportation,
attractions events and food service for the tourism sector (Zapata and Hall, 2012).

 Hospitality: It is the resources which includes, customs, work, language of different
destination, relaxation based behaviours etc. It also take place in the culture wealth area
which is related from the tourism sector.
TASK 4
4.1 Positive and negative impacts of tourism
There are positive and negative impact of social, economic and environmental on the
tourism. They are as follows:
Economic effects Positive effects: It is important and positive in two sector which includes direct sector and
indirect sector. In the direct sector it provide the employment within the tourism industry
and in the indirect sector, it includes, transportation and retail etc. it provide the more and
more job within the tourism industry (Garín-Muñoz and Pérez-Amaral, 2011).
 Negative effects: It is the opposite from the positive impact. In the negative effects, it
increases the price of the products and services for the tourist. Sometimes, the different
area affected by the negative impact of the economic effects and financial condition.
Social effects Positive effects: Sometimes social effects are effective and useful for the tourism
industry. It also increase the rights of the human and create the interactions among the
adult and visitor which is effective for the cultural understanding.
 Negative effects: Sometimes the social effects are negative on the tourism industry. There
are different types of the effects on the local community which includes, drugs problems
alcohol problems and crowding etc. These all effects are negative of the tourism on the
society. So, these are the negative social effects on the tourism industry.
Environmental effects Positive effects: It is one of the positive environmental effects on the tourism industry.
The festivals, handicrafts and the traditional customs which is effective for creating the
humanity for the local community. The positive environment increase the conservation
of life and human and natural resources.
 Negative effects: Sometimes the environment generate negative impact on the tourism
industry. The environmental effects includes some cultural resources like, beaches, water

supply, cultural heritage and coral part etc. the negative environment arise the pollution at
the public place (Hjalager, 2010).
4.2 Different strategies for minimising negative and maximising positive impacts
There are some strategies which are discussed for minimising the negative impacts of the
tourism industry. The strategies are as follows:
 Every people need to understand about the protection of the environment which is
important for the tourism sector and provide the benefits to the local community. So, it
can minimise the negative impact of the tourism sector.
 The environment provides the knowledge of tourism destination to the informing tourists.
It can minimise the negative impact which is increases on the tourism industry.
 The invariable law must be implemented for the tourism industry because it decease the
damage from the tourism sector (Weaver, 2011).
In other case, there are also some strategies which can be discussed for maximising the
positive impacts of the tourism industry. They are as follows:
 The positive impact of the tourism sector is important for improving the environmental
planning and the environmental management.
 It is also effective for arising the awareness and environmental education. So, it the
positive impact of the tourism sector on the environment.
 In case of the positive impact, it provides the effective and useful securities and
enforcement of the regulations and laws of environment. So, in the positive impact, it
should be improved.
 It provides the effective and new employment opportunities for reducing the poverty and
unemployment and also helps in the development of the economy.
 It provides the financial helps to the local community of the environment.
CONCLUSION
In this report, it has been concluded that the travel and tourism sector is one of the
important tool of achieving growth and success for UK economy. It provides employment and
job opportunities to many peoples improving their living standards. Along with this, travel and
tourism sector helps in to maximising the interest of travellers by giving them attracting offers
and packages. Along with this, structure of travel and tourism sector involves informational
technology, transportation, government polices and accommodations. The main aim of these

industries is to giving quality services to their customers. If Thomas Cook is not able to provide
quality services to its customers so as they have right to claim against the organisation.
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