Analysis of Travel and Tourism Sector: Developments and Implications

This report provides a detailed analysis of the travel and tourism sector, examining its historical developments, structure, and the key components that shape it. It explores the functions of government and international agencies, as well as the influence of economic and political factors on the in...Read More

TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Explaining key historical developments in the travel and tourism sector.............................4
1.2 Explaining the structure of travel and tourism sector...........................................................5
TASK 2............................................................................................................................................6
2.1 Analysing the functions of government and its sponsored bodies as well as international
agencies in travel and tourism.....................................................................................................6
2.2 Explain how local and national economic policy influences the success of the travel and
tourism sector..............................................................................................................................6
2.3 Discuss the implications of political change on the travel and tourism sector in different
countries......................................................................................................................................7
TASK 3...........................................................................................................................................8
3.1 Explain factors affecting tourism demand............................................................................8
3.2 Explain how supply has changed to meet the effects of demand..........................................9
TASK 4............................................................................................................................................9
4.1 Evaluate the main positive and negative economic, environmental and social impacts on
tourism.........................................................................................................................................9
4.2 Explain strategies that can be used to minimise the negative impacts while maximising the
positive impacts.........................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and tourism industry is the largest and most profitable sector in UK. It contributes
a large amount of revenue in the economy of nation. This sector provides various services
including hotel accommodation, sightseeing and making people travel from one place to another.
It also provides various kinds of services like heritage, culture, business and tourism. It aids an
economy to increase the share of foreign exchange. Report depicts the key historical
developments and structure in travel and tourism sector. By taking the two travel companies into
consideration, that is, Thomas Cook and First Choice, many concepts related to this industry can
be explained. Present report will also analyse the governmental functions in travel and tourism
industry. Proper analysis will also be made by using given cases in the report. It would help to
know the implications and requirements of various aspects in travel and tourism industry of UK
(Beaver, 2005).
TASK 1
1.1 Explaining key historical developments in the travel and tourism sector
In ancient times, people who belong to 'elite' class used to travel and enjoy the pleasure of
travelling. Before 1950's, tourism industry was considered to be an inconsistent sector in which
different sections like hotel, travel and tour operators used to work separately. Earlier, all these
stated organizations performed their tasks at their own. During this period, international
travelling was made for the rich class people or elite groups. Thomas Cook was the one that
introduced the first package of tour. After 1950's, especially in UK, change was seen in the
industry as tour operators were developing their individual business (Chambers, 2009).
By the year 1980, development of large organizations in UK affected the tourism
industry. Companies started expanding their business by providing varied services under one
roof. Firms started providing hotel accommodation, sightseeing, and transfers from airport to
hotel. It made the travelling easy for a person. Tourism industry plays a crucial role for the
global development. After understanding the concept of culture trade, operations have become
more peaceful. This industry not only develops an economy but also enhances the level of
education. It nurtures the position of tourism business at global level. This industry has opened
various ways of employment for the upcoming generation.

1.2 Explaining the structure of travel and tourism sector
Mainly, the structure of travel and tourism sector consists of six components. They are
mentioned as below.
Tourist attraction: Tourist attraction can be defined as the places or locations where
people wants to visit. It can be said that these are the locations which are visited by people. There
are various examples of tourist attractions in UK like London Bridge, Buckingham palace,
Glasgow, etc. To reach at the desired destination, most required thing is facility of transport
(Dickinson and Lumsdon, 2010).
Transport: Transportation facility helps tourists to reach from one place to another
during travelling. For example, if a tourist wants to reach at hotel from airport then he would be
need a car or taxi. In that situation, transportation remains helpful for the people. Different
modes of travelling can be used by the travellers of UK. Some people use train and others use air
transport. There are some tour operators who owe their own airlines. For example, Thomas
Cook, that provides the services of airlines.
Accommodation: Accommodation can be defined as the place where one is going to stay
at his desired destination. This is the most important task to be performed. Place where one is
going to stay is an important decision to be taken.
Tour operators: Tour operators are the one who take all these components together and
prepare a package according to the needs of customers. They focus on the safety policies and
comfort level of travellers. They provide variety of tour packages to the target market on the
basis of their needs and demands.
Travel agents: Agents can be defined as the mediator between customers and tour
operators. They sell the holiday brochures to earn small amount of commission. Number of
travel agents are there that are working in UK (Evans, Stonehouse and Campbell, 2012).
Tourism and development: The information about different regions can be received by
the tourism board. Clients may get crucial information from the concerned board. Integration can
be seen in travel and tourism industry. For example, Thomson has bought Britannia airways that
allows the lower fares. Integration may remain good if communication and price controlling is
well between organizations. With the help of integration, tour operators are able to make good
amount of profit.
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Illustration 1: Components of tourism industry
(Source: Beaver, 2005)
§§
TASK 2
2.1 Analysing the functions of government and its sponsored bodies as well as international
agencies in travel and tourism
The functioning of government and its sponsored bodies along with the international
agencies is crucial. Government bodies make sure that whether the customer’s interest, safety
and health have been fulfilled or not. These are the issues that are concerned with the customers
or resident population. The tourist board of UK and government department plays a crucial role
in promoting the strategies and in setting market destination strategy according to the needs of
customers. Main function of international agencies and government is to conduct the research
and make plans. They involve in developing resources required for the tourism sector. Local
regulatory authorities of country plays the same role as that of central government. They make
sure that whether the operations by tour operators are conduced properly or not. The bodies aim
at increasing public interest towards travel and tourism sector (Gladstone, 2005).
BHA is a British hospitality association is private organization that sets the policies for
hospitality and tourism industry. They aim at promoting the brands' comes under the tourism
industry. It works as a representative body for hotel, clubs and restaurants.
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People 1ST is the leading organization that provides training to employees in tourism. The
organization helps to develop the skills and abilities of the new employees.
International organizations include both public and private bodies who are interested in
tourism. The public or government bodies follow the national interest. In developed countries,
policies of tourism are less because of large number of organizations conducting tourism
services. These bodies focus on developing the tourism sector sustainable. Organizations help in
generating market knowledge and promotes competitiveness. It also promotes training and focus
at fostering the tourism knowledge. The body aims at making an effective technique to develop
the tourism sector by using technical assistance. It enlightens the implementation of global ethics
in tourism sector. It focuses on preparing the policies that uplift human interest towards tourism
sector by which this industry can grow and expand at a huge level over the globe (Mamaghani,
2009).
2.2 Explaining the way in which how local and national economic policy influences the success
of the travel and tourism sector
Economic policy can be explained as an action taken by the government in economic
field. It includes taxation policy, government budgets, interest rates, money supply and labour
market. Economic policy of a country can be divide divided in into two i.e. fiscal policy and
monetary policy. WhereasHere, fiscal policy is related with taxation and monetary policy which
includes actions related with interest rates and money supply. Both local and national economic
policy policies can influence the success of the travel and tourism industry in UK. The declining
gross domestic product can badly affect the operations of the industry. However, the
decliningdeteriorating GDP can decline reduce the rate of tourist tourists that come to the UK.
Moreover, the number of tourists can increase be increased by improving the economic policy of
the country. With the change in fiscal policy, government can increase enhance the chance
chances of success of the tourism sector. As the tourist come to UK from different parts of the
World to travel. During 2009, UK economy was going through recession which affected the
image of UK nation at global level. In that case, the government of UK should lower down the
tax rates on services provided by the tour operators of other country in UKso . So that large
number of customer customers can attract be attractedtowards the UK market. Tourism sector of
UK may get affected by the seasonality factor. Because It is because; during holidays or at peak
time, large number of people travel at different places in UK. But, at the time of low off season,
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the less number of tourism attract towards the UKpeople visit the country (Middleton and et.al.,
2009).
The UK government can determine various the factors that affect the public or tourism in
UK country by evaluating the public interest. Once the requirement of people is analysed, it
becomes easy to satisfy the customer needs and their demands then it would remain easy to cope
up with public interest. At the time of low off season, government of UK can lower down the
interest rates that leads would lead to increase in more number of customersvisitors in the nation.
2.3 Discussing the implications of political change on the travel and tourism sector in different
countries
The implications of political change can affect the travel and tourism sector of a country.
It can be seen that the growth of tourism in some countries is not that high. SpeciallyEspecially,
those countriesnations that are facing political issues has affected theaffects the tourism sector
negatively as . Apeople generally do not prefer to person would not like to visit a place or
country where they find political instability. It can create a negative image in the minds of
tourists and they will switch over to the other places. For example, these days, high level of
terrorism can be seen in France. Day or another it seen that people living in France face violence.
In turnsAs a result, the people who wish to visit France would do willing not prefer to go there
by which. As a result, the tourism sector of France this nation gets has badly affected. The
tourists are diverting towards the countries that have are having safe and good strong political
environment. If we talk about China tourism will be taken into consideration, it can be seen that
from last two decades, the country has expanded itself in the field of tourism. As the economy is
expanding day be by day, the living standard of people is also increasing. And theApart from
that, government of China has removed the restrictions that increased the scope of tourism sector
in china this country (Moutinho, 2011).
Nowadays, China has become the most demanded market in tourism industry. Large
number of tourists visit at China that increased the value of china its tourism. On the basis of
WTO analysis, it is believed that by the year 2020, China would be the largest tourist country in
the Worldworld.
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TASK 3
3.1 Explaining factors affecting the demand of tourism demand
There are different factors that can affect the demand of tourism in an economy. Tourism
demand is purely based on decision taken by the tourism business. If the management of all the
factors like hotel, airline, accommodation and leisure facility is proper then the demand of
particular economy would increase. Besides these , this factors, there are also some different
factorsother reasons that can also lead to hike or lower down the demand of tourism (Pack,
2006). They are as follows follows:(Pack, 2006).
Political factors: The political factor of an economy can affect the demand of tourism in
a country. As it has mentioned above, regarding France, the economy of France is baldy effected
affected due to violence and terrorism in the country due to which number of people visiting this
nation has been reduced. On the other side, the political conditions of China and US is are great.
HoweverThis is the reason, large number of customer attraction can be seen in the China market.
That is whyThus, it can be said that, for development of a country or economy, it is necessary to
have good political condition.
Environmental Factors: Environmental factors also plays play a crucial role in affecting
the demand of tourism in a country. People would love to visit a place where the environment is
cleanis safe and healthy. If they will not find it healthy, then they will would switch over to other
places.
Technology: In today's era, technology plays the most important role in all parts of
living. Technology It remains is even useful in all the parts even in our daily life as well. From
the point of view of tourism industry, it is important to have advanced technology in the country.
It is crucialLatest techniques are required to be used in this industry for the reasons like; to have
good communication facilities as well as, easy and convenient transport facilittransportationy
and information. If these facilities are not available in a country then the demand of tourism
demand may get affected (Pan and Ryan, 2009).
Natural factors: These are another other factors that can influence the demand of
tourism in an economy. Economic factors can include earthquakes, floods, etc. If an economy is
going through all the stated issues then the touristtourists will not be interested to come at that
place. Also, The economy must have tobe free from epidemic diseases.
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In addition to other factors, the general changes in the attitudes of customers can also affect
hamper the demand of tourism if it will not adopt the changing trends of market. If the
touringtravel and tour industry provides standardized products and proper information channel to
the customers then people would like to visit the country. In turnsAs a result, the government of
UK can focus on the above factors and can influence the tourism sector in theof economynation.
It leads to maintain the a positive image of UKin the minds of tourists at the global level. It
would also enhance the trust and confidence of the people that would to stop them from
switching to another other places (Pike, 2005).
3.2 Explaining the way in which how supply has changed to meet the effects of demand
Generally, the demand of customers are always prioritized and focus focussed by the
travel agencies. They aim at working to meet out the demands of customers at in the best
possible way. The supply concept is always neglected in tourism industry.. It Supply in tourism
industry is mainly depended upon on some components like . They may include transportation,
attractions, services, information and promotion. It can be seen by taking the example of Thomas
Cook which . IT is the leading company of UK providing the tourism services. The organization
aims at providing the maximum amount of sanitisationlevel of satisfaction level to customers. It
focuses on analysing the demands of customer's and then they provide attractive packages to
them accordingly. The organization provides various kinds of packages of different place places
at different distinct price. So thatThus, all kind kinds of customers can utilise the services of the
organization effectually (Schmallegger and Carson, 2008).
The companyCompany provides the proper transportation services to its customers that
helps the customerhelp them to focus on enjoying journey. The companyFirm tries try to serve
all the required information over its websites that aids a customervisitors to get proper details
about the organization. The companyAlong with that, firm uses various promotional techniques
that result in attracting new customers as well as updating the old customersone. The
management of organization use uses internet for the promotion. The firmFirm provides
discounts on several packages at the time of less low demand. In that case, the people who wish
to travel but cannot due to monetary issue can also travel in the off seasons. The Company
evaluates the conditions of an economy so that they can fulfil the objectives of
customers.companyCompany measures the sites first in which they evaluate the condition of the
concerned economy. However, the firm can pass out the evaluated information to its customers
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so that they can effectively use the information and take decisions. The aboveAbove stated
points has have clearly explained how the way in which the company has shown their supply to
meet the demands of customers (Sharpley, 2006).
TASK 4
4.1 Evaluatinge the main positive and negative economic, environmental and social impacts on
tourism
The tourismTourism may get impacted by economically, socially and due to
environmental factors. The These impacts may be positive or negative on the tourism sector of a
country and for the society as well. The impact of tourism on society can be positive or negative.
Tourism can bring international amity, peace and understanding in UK. With the help of tourism,
the relations between two countries can become better or improved. Allowing the people of one
country to travel or visit other can uplift the trust of citizens. On the other side, it is also having a
limitation that allowing the people of other country can bring terrorism and, corruption in the
nation in the greed of earning high amount of revenue. The concernedConcerned authorities can
notcannot check the intentions of people coming to our a country. People coming with wrong
intentions can affect the peace of the countrynation (Theobald, 2005).
There are some positive aspects of tourism that are stated as below.
 It develops the positive attitudes and ideology towards both of the countries.
 It helps to learn about the cultures and rituals of the economies.
 Crossroads aids help in removing the negatives thoughts of people about a
particular place.
 It develops the healthy environment of friendship among the countries.
 It developsAlso, a sense of good positive thoughts about the cultures of each other
will be generated.
The environmental aspects can also leave an a huge impact on tourism. Sometimes, it
may affect the local ecologies of the country. It can create pollution and may impact affect the
environment adversely. At the time of peak season, when large number of tourist tourists visit to
a place leads to over consumption of resources. However, the citizens of the concerned nation
may face lack of resources in their city. Tourism has is having a power to affect the culture of the
country positively or negatively (Thevenot, 2007).
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4.2 Explaining strategies that can be used to minimise the negative impacts while maximising the
positive impacts
The strategies are stated as below that can reduce or minimise the negative impacts on
environment:
The impact of tourism on environment can easily affect get affected if the management of
tourism agencies is not done in a proper way. That is wayThis is the reason; some strategies have
been taken into consideration that remain sustainable for the environment of UK's tourist
destinations. Adopting these strategies by the government of UK would help in saving the
environment. The strategies are stated below that can reduce or minimise the negative impactn e.
The country can provide an option to be with the citizens of the country where the tourist visit
instead of hotels and resorts. With the help of this factor tourist can learn the way of living of the
citizens.
Providing knowledge about the impact of affecting tourist destinations would help to minimise
the negative impact (Wilder-Smith, 2006).
1. Strict actions can be taken against the tourists that harm the environment of the concerned
economy. However, by framing strict laws would help to lesser lower down the bad
unethical activities done by people.
2. The authorities of the UK economy can provide knowledge to local people about the
importance of tourism and their contribution towards the country's benefits.
CONCLUSION
Tourism sector is the most rapidly growing sector industry in the economy in both the
economies i.e. developed and developing. In majority of the economiesnations, the tourism
sector earns large amount of revenue in GDP. On the basis of evaluation, varied changes have
been seen from ancient period to now. The historyHistory of tourism was totally different from
today’s conditions. With the advancement of different factors at different places, the variations
can also be seen in this industry. The report has mentioned the key historical developments along
with the structure used in this tourism sector. It also defines the structure that is used in travel
and tourism sector. To uplift the tourism industry of UK, the government of UK can use the
defined practices and policies mentioned in the report.
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REFERENCES
Books and Journals
Beaver, A., 2005. A dictionary of travel and tourism terminology. CABI.
Chambers, E., 2009. Native tours: the anthropology of travel and tourism. Waveland Press.
Dickinson, J. E. and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Gladstone, D. L., 2005. From pilgrimage to package tour: Travel and tourism in the Third
World. Routledge.
Mamaghani, F., 2009. Impact of e-commerce on travel and tourism: An historical analysis.
International Journal of Management. 26(3). p.365.
Middleton, V. T. and et.al., 2009. Marketing in travel and tourism. Routledge.
Moutinho, L. ed., 2011. Strategic management in tourism. CABI.
Pack, S. D., 2006. Tourism and dictatorship: Europe's peaceful invasion of Franco's Spain. (pp.
84-85). Basingstoke: Palgrave Macmillan.
Pan, S. and Ryan, C., 2009. Tourism Sense‐making: The Role of the Senses and Travel
Journalism. Journal of Travel & Tourism Marketing. 26(7). pp.625-639.
Pike, S., 2005. Tourism destination branding complexity. Journal of Product & Brand
Management. 14(4). pp.258-259.
Schmallegger, D. and Carson, D., 2008. Blogs in tourism: Changing approaches to information
exchange. Journal of vacation marketing. 14(2). pp.99-110.
Sharpley, R., 2006. Travel and tourism. Sage.
Theobald, W. F., 2005. The meaning, scope, and measurement of travel and tourism. Global
tourism. 3.pp.23-48.
Thevenot, G., 2007. Blogging as a social media. Tourism and hospitality research. 7(3-4).
pp.287-289.
Wilder-Smith, A., 2006. The severe acute respiratory syndrome: impact on travel and tourism.
Travel medicine and infectious disease. 4(2).pp.53-60.
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Online
Structure of travel and tourism. 2015. [Online]. Available through: <http://web.sob.hu/icm/icm-
Structure-of-Travel.pdf>. [Accessed on 26thth July 2016].
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