Analysis of Contemporary Issues in the Travel & Tourism Industry

This report provides a comprehensive analysis of contemporary issues in the travel and tourism industry, focusing on the UK market. It examines the impact of various factors, including economic issues, technological advancements, and terrorism, on companies like Titan Travel. The report delves into current trends such as gastro tourism, green tourism, and inbound tourism, utilizing appropriate techniques and resources for analysis. Furthermore, it explores how the travel and tourism sector responds to change, offering strategies for businesses like Fulham Shore Plc to adapt and thrive. The report also assesses the consequences of failing to respond to market changes, providing valuable insights into the dynamic nature of the tourism sector. The analysis includes SWOT analysis to assess the strengths, weaknesses, opportunities and threats to help companies in the industry. This comprehensive report is a valuable resource for students and professionals seeking to understand the challenges and opportunities within the travel and tourism industry.

Contemporary issues in
Travel & Tourism
Name: Lavinia Cristina Singuran
Student ID: 17004524
Batch: LH-T-D23
Lecturer: Nishi M Ramsurrun
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TABLE OF CONTENTS
Contents..........................................................................................................................................2
TASK 1............................................................................................................................................3
1.1 Analysing the issues currently driving change in travel and tourism industry........3
1.2 Analysing different current issues using appropriate methods and resources.........4
TASK 2............................................................................................................................................5
2.1 Current trends in travel and tourism sector of UK.....................................................5
2.2 Appropriate techniques and resources to analyse current trend in UK’s travel and
tourism sector........................................................................................................................8
2.2 Appropriate techniques and resources to analyse current trend in UK’s travel and
tourism sector........................................................................................................................8
Task 3....................................................................................................................9
3.1 How travel and tourism sector respond to change……………………………………9
3.2 Developing strategies related to the way Fulham Shore Plc could respond to change.
..............................................................................................................................................10
3.3 Justifying the strategies for the way business could respond to change..................11
TASK 4..........................................................................................................................................12
4.1 Analysing the impact of issues as well as trend which drive changes in tourism sector
..............................................................................................................................................12
4.2 Identifying the consequences of business failing to respond to changes in the market.
..............................................................................................................................................13
CONCLUSION............................................................................................................................14
REFERENCES.............................................................................................................................15
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INTRODUCTION
Contemporary issues can be defined as the problem faced by travel industry. Dynamic
business environment and increase in competitions are the two important factors which have
given rise to major issues. In UK, travel and tourism sector is considered to be an industry where
change has taken place at very large scale. Travel and tourism in United Kingdom has shown
tremendous progress in last few years. But various contemporary issues in an industry has
created the major hurdles in the growth of travel and tourism sector. It is very much important
for companies operating in tourism sector to develop strategies, as this will assist business
entities in dealing with challenges and help in providing appropriate response to changes. United
Kingdom is considered to be as one of the most popular tourist destination
The purpose of the report is to highlight the major issues faced by companies such as
Titan travel in tourism industry. It also has focus on analyzing the way Fulham Shore plc is
responding to change. Assignment also emphasizes on identifying the effects of various issues as
well as trends which has dive change in tourism sector.
TASK 1
1.1 Analysing the issues currently driving change in travel and tourism industry
With the passage of time, there has been tremendous changes have taken place in business
environment. Travel and tourism sector is one which where the drastic as well as positive
changes has taken place. It is required by stakeholders in Titan travel to develop an effective
strategy which is very much important in order to resolve various problems. There are number of
issues such as change in technology, political instability, increase in criminal activities or
terrorism, fluctuations in exchange rate and currency etc. has created major barriers in the growth
of companies such as Titan ltd, which is operating business in tourism sector. All these
problems have direct as well as significant impact on the profitability of firm (Prebensen, Chen
and Uysal, 2018).
In addition to this change in legislation has direct as well as major impact of company’s
business operations. It also has great influence on Mancagement decision, business plans and
policies. Change in economic condition creates challenge for firm to maintain profit margin. The
three major issues faced by Titan company are:
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Economic issues: This type of issue includes continuous fluctuations in exchange or currency
rate, change in economic condition of the country, amendment in interest rates etc. All these
issues are directly having impact on the profitability of companies such as Titan limited.
Economic issues also have direct and significant influence on purchasing decision of
Mancagement in an organisation. These issues have indirect effect on the Quality service
delivered by an enterprise to its customers.
Technological issues: This has become the major issue along with increase in globalisation.
Technological advancement has led to increase in competition within an industry, due to which
Titan limited company is facing issue in concentration on maintaining\ the quality services
provided to customer (Epstein, 2018). This factor or issues have direct and great effect on the
reputation of business entity. Technological advancement has impacted the way sharing of
information take place between organisations. This is an issue as many of the customers are
using technology for availing the products or services offered by travel companies, it has
significant effect on sales of firm.
Terrorism issues: There has been increase in terrorism activities in last few years which have
led to the threat to travel business. Terrorism issues have negative effect on the growth of
tourism business. As people prefer to travel less in such countries where such unethical or
criminal activities take place. This factor has great impact on the sustainability of firm in specific
market.
1.2 Analysing different current issues using appropriate methods and resources
The two major different issues which have significant effect on companies operating
business in Middle east and North Africa. These two destinations are very popular and tourist
prefers to visit such places due to its beauty. Political instability in North Africa and Middle East
have direct effect on the growth of organizations operating business in such countries. Political
unrest or issues in such countries restricting tourist to visit such places, this factor has effect on
their profitability of firm to lager extend (Hayes, 2018). These political issues are creating big
hurdles in the tourism business. Due to the political unrest in the Middle East and North Africa,
there has been tremendous decrease in number of tourist visiting such destination every year.
On the other hand, favorable political conditions in the country have supported an
organization in promoting as well as expanding business. The dispute between Iraq government
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and ISIS has given rise to the terrorism tension within North America and Middle East. It has
created challenges for tourism companies to operate their business in successful manner.
In addition to the political issues, increase in criminal activities such as terrorism has
negative effect on tourism business. With the globalization impact over the life styles the
travelers are getting the information of these issues. Political and terrorism issues have negative
impact on the reputation of destinations which further have impact on tourism business.
In addition to political, environmental issues have significant impact on tourism business.
For instance, good weather conditions support companies in promoting their business (Doppelt,
2017). It also supports organization in positively influencing people to visit particular
destination.
Unfavorable or bad weather conditions restrict the firm from delivering the services to
customers. Occurrence of natural disasters affects the tourism of a destination as well as
economic conditions also.
Technological issues have both negative as well as positive impact on tourism business.
The advancement in technology has assist Tourism Company in improving their services. It has
enabled business entity to provide their services to wide number of customers. Technological
advancement has enabled an enterprise to promote their business globally (Chaperon and
MacLeod, 2017). Using the technology travel companies such as Titan has able to provide
additional facilities such as online booking services to its clients.
The negative impact of technical advancement is that it has given rise to competition in
an industry.
TASK 2
2.1 Current trends in travel and tourism sector of UK
Travel and tourism sector in UK is growing rapidly and changing increasingly due to
varies and rising tastes of tourists. Advanced technologies and numerous tourism organizations
influence tourists in changing behaviors. UK’s travel tourism is expected to greatly in future as
several changes taking place presently have a huge impact on this industry (Cohen and Cohen,
2012).
Gastro tourism: UK’s food industry is benefitted from gastro tourism. Mouthwatering
delights of the country tempt visitors and food lovers all over the world and influence them in
deciding UK as a travel choice.
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Grey tourism: Growth in this form of tourism in increasing in UK as more senior citizens
are travelling to the country which accounted over 5.5 million in 2010 from overseas according
to the reports of Visit Britain.
Adventure/ Sport tourism: This is a type of tourism where tourists travel to places for
exploration and sport activities. People of UK are looking for adventures. Youth of UK are
energetic and adventurous or risk taking which affects attitudes and behaviors of young travelers
that make them the largest segment of global and domestic tourism.
Health / Medical tourism: Health conscious people of UK get involved in activities for
improving health and safety or fitness by traveling to destinations that offers such attractions.
World class medical treatments and diagnosis are offered that gives rise to this kind of tourism
and government of UK is developing its medical tourism segments.
Green tourism: This sector of travel and tourism in UK is experiencing or seeking
changes to shape the meaning of nature as tourism attraction. Natural settings in nature based
tourism attracts crowd of travelers and visitors thereby supporting and promoting ecotourism.
This type of tourism considers the unrevealed and explored flora, fauna and socio cultural
attractions.
Cultural tourism: People in UK travels to places or locations which is historically
important and culturally diverse. This type of tourism involves rural village voyages,
explorations that attract travelers experience uniqueness. Such kind of tourism provides
transportation, accommodation, sanitation, security etc. and is inexpensive compared to other
forms.
Inbound tourism: In 2017, there were 39.2 million visits to UK with spending £24.5 billion and
growth in visitors is increasing over past years (Connell, 2013). Country counted a 3.6%
international tourist receipts in 2016 where it stood sixth in the UNWTO international tourist
arrivals league.
Repeated visitors: In the year 2015, 37% of inbound travelers were repeat visitors
spending £15.1 billion in country that include 92% business and 85% friends and family and
63% holiday visits.
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2.2 Appropriate techniques and resources to analyse current trend in UK’s travel and tourism
sector
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2.2 Appropriate techniques and resources to analyse current trend in UK’s travel and tourism sector
Data related to inbound and outbound tourism of UK and
expenditures or spending
201320142015Overseas residents visiting
UK( earnings)21,25821,84922,072Residents of UK visiting
other destinations34,51035,53739,028
2015201620172018UK visits to all abroad countries(in
millions)65.770.872.872.8UK expenditure to all countries(in
$billion)47.9753.8755.1054.00
UK residents visits to USA(in millions)3.53.63.43.4UK visitors
expenditure to USA(in $ billion)5.475.895.262.1
For analyzing current travel and tourism trends in UK’s market Titan
Travel can conduct market research in an effective manner. This helps
the firm in rendering holiday packages and to destinations as per the
demand and trend in UK’s travel industry. Due to changes in consumer
taste, preference, climatic conditions choice of tourists is also changing
as they also use the same technique to analyses trends of tourism market
and destinations that are mostly visited by travellers (Falk and et.al.,
2012). To expand Titan travel’s niche market adventure tourism is
targeted where young people of UK prefer adventurous activities and
destinations. According to research conducted on UK’s tourism sector it
can be analyzed that outbound visitors for adventure tourism is
increasing at a huge rate with rise in journeys. To analyses and evaluate
trends in travel and tourism sector of UK Titan Travels uses various
methods and resources such as primary and secondary sources of data
collection. By measuring and identifying quantitative and qualitative
data an accurate conclusion of impact of trends in UK’s tourist industry
can be made. Inbound tourism of UK has a continuous growth that
accounted 39.2 million overseas visitors in year 2017 with spending of
around £24.5 billion (Hall, 2010). It showed a 4%increase in volume
and 9%value arises as compared to the statistics of 2016. Due to global
recession in 2009 outbound visitors of UK have increased rapidly every
year since 2012 which reached a highest in 2017 (Hannam, Butler and
Paris, 2014). According to UK Office for National statistics, there were
around 72.8 million abroad visits by UK citizens in 2017 which is a 3%
surpass increase than previous year. The visitor spending rose by 2%
between 2016 and 2017. Main tourist attraction of UK residents is USA
and their spending there declined to 45.26 billion in 2017 from $5.89 in
2016. UK travellers are repeated visitors that present an opportunity for
destinations go beyond traditional entrances. Repeat holiday traveller’s
stays long time their trip to UK than first time visitors and spend more
on overall journey. Certain markets like USA are repeat visits by UK
citizens that accounted 92% business, 85%friends and family and 63%
holiday visits in year 2015.

TASK 3
3.1 How travel and tourism sector respond to change
Due to emerging trends and behavioral changes of tourists Travel and tourism industry of
UK is greatly affected. Current competitive business world enabled with information and
advance technology is a leading factor that affects UK’s tourism and travel sector (Hartmann,
2014). Therefore, it is necessary for the business to have strategic Management actions for
providing cohesive criteria of success. Climate change in UK is also a factor that matters
country’s Tourism. A set of goals and objectives must be set to overcome these challenges
affecting the business. To respond to changes Fulham Shore Plc must incorporate strategies after
analyzing the trends and challenges in UK’s travel industry. Past analysis examples can be used
for conducting research for the use of initiating change. Digitalizing Titan Travel’s reservation
and payment system by advancement of information and communication technology is a major
response which the firm takes for achieving strategic position in UK’s market. SWOT analysis
can help the firm in identification of its strengths, weaknesses, opportunities and threats.
Strengths: Titan travel’s wide coverage area, huge customer base and quality of products and
services and a fair brand image in market can assist them in gaining a competitive edge in UK’s
travel and tourism industry.
Weakness: Lack of technological advancements, inflexible functions and limited services can
affect Titan Travel in targeting and gaining sales and customer attraction in UK’s wide tourism
sector.
Opportunities: Expansion plan of Titan travels, unique and enhanced services, innovative
products and mergers are an added advantage of firm that will help in attaining success in UK’s
travel and tourism industry (Stone, 2012).
Threats: Increased competition, climatic changes, inflation and exchange rates are some risk
factors that might hinder Titan Travel’s growth and positioning in UK’s tourism industry.
Potential ways through which Titan travel can improvise their capabilities and respond to these
challenges are:
 Learn and explore past mistakes and ensuring that it is not repeated
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 Employees must be considered as significant factors or assets that can lead firm to suc-
cess
 Necessary advance technologies must be adopted and followed for attaining success in
absence of people’s involvement and cooperation
 Education, communication and information must be combined with experience which is
the source of knowledge.
 Making changes in holiday packages and lodging facilities according to the needs and de-
mands of customers
Be aware of natural disasters and consequences and taking preventive actions to safeguard
health and safety of employees and customers.
3.2 Developing strategies related to the way Fulham Shore Plc could respond to change.
The travel and Tourism Company is greatly affected by various issues; it is important for
companies operating in this sector to develop an effective strategy. As these tactics or plans will
assist business entity in providing the appropriate response to changes. In context of Fulham
shore Plc, it is required by Mancager in an organization to formulate suitable change
Mancagement strategies. This activity will aid firm in eliminating or reducing the negative effect
of changes on business operations (Roberts, Hall and Morag, 2017). Mancager in Fulham shore
Plc requires to set clear vision, as this will assist an enterprise in achieving predefined goals.
In addition to this, firm need to implement advance technology at work place, as this will
assist firm in maintain or improving quality of services. It will also assist business entity in
maintaining its efficiency as well as productivity during the time of change. By utilizing the
latest technology business entity can give appropriate and quick response to changes in business
environment. This strategy will enable business entity to develop new products or services and
allow firm to gain competitive advantage in the market.
Mancager in Fulham company is required to provide training to their employees, as this
will enable workers to develop potential, skills as well as skills which is required for coping or
dealing with change. Human resource Mancager in Franco Manca and The Real Greek need to
employee talented as well as skilled workforce, as they are important stakeholders those who
will drive organization s towards success.
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It is important for Fulham Company to include all essential element of marketing mix in
promotional plan, as this strategy will help firm in achieving marketing objective. This
Marketing strategy will assist business entity in influencing people to avail the product or
services offered by an organization (Weaver, Huang and Sheng, 2018). It will also help an
enterprise in generating brand awareness and also support in promoting goods or services.
Innovation is another strategy which can be adopted for responding to change. Firm can
develop new products or services using technology.
Marketing mix of Franco Manca and The real Greek
Product: Both companies such as Franco Manca and The Real Greek produces good quality of
products and serves food which satisfy the needs as well as demands of customers. It is required
by an enterprise to improve their services and customer policies, as this will assist an enterprise
in attracting more number of people.
Price: The Real Greek and Franco Manca pricing policies. It is important for firm to adopt the
flexible or low pricing strategies, as this will help business entity in influencing people to buy
products or services.in addition to this, by adopting the low pricing strategy, an enterprise can
easily enter into new market (Wright and Sharpley, 2018).
Place: Both The Real Greek and Franco Manca has positioned their products effectively in
different markets. But placing the goods in different areas is not sufficient, it is required by
company to develop good supplier network or select distribution channel (Giaoutzi, 2017). As
this strategy will help business entities in providing timely deliveries of products to customers.
Promotion: The Real Greek and Franco Manca both the firms are using the new marketing
techniques for promoting their products. It is required by both organizations to use advance
technology for marketing purpose.
3.3 Justifying the strategies for the way business could respond to change
Both The Real Greek and Franco Manca firm by adopting the above strategies has been able
to provide quick as well as appropriate response to changes. In addition to this marketing
strategy has assisted business entities in reducing the negative effect of changes on business.
Pricing and other strategies has enabled business entities to maintain its position in market. It has
provided firms a chance to increase the demand of their products (Sharpley, 2018). A business
entity by using pricing strategy has able to generate more revenue and profit.
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Employment of new as well as skilled staff has enabled an enterprise to facilitate
innovation and has assisted organizations in expanding business. Implementation of technology
has enabled business entities to bring improvement in existing products and services.
Technology will also help organization in increasing productivity as well as efficiency. In
addition to this, it will enable an enterprise in adding value to its products or services.
Marketing mix strategy has enabled firm to promote goods or services among customers. It
has provided firm an opportunity to attract more number of customers (Li, Hung and Chen,
2018). This strategy has been proving to be useful for firm in context of capturing new growth or
expansion opportunities in the market. Innovation strategy will help an enterprise in attracting
more number of customers. It will also support business entity in catering to the needs of clients
and providing high level of satisfaction to customers.
TASK 4
4.1 Analysing the impact of issues as well as trend which drive changes in tourism sector
Some of the effect caused by issues and trends in tourism sector acquisition, mergers and
liquidations. The changes in travel and tourism sector can have negative effect on the business
Technology: By utilising the latest technology, trail finder companies is providing effective as
well as luxury services to their customers. It has enabled firm to provide good or memorable
experience to its clients. Absence of advance technology can have negative effect on the
productivity, working efficiency and quality of services. Current trend that is use of the
technology or internet for getting information as well as availing services by customer has
negative effect on the sales of an organisation.
Employment level: Workers working in two different organisations have different types of
working patterns and behavior. Changes in the structure of the business might affect the
employees of both the companies (Colantonio, 2017).
Impact on the product or services: Firm is offering the same products at different type of
customers. This unique strategy has assisted an enterprise in attracting more number of
customers.
Security: it is considered to be as major issues in Travel and tourism. Increase in terrorism and
political unrest in the country has affected tourism business. Unfavorable political conditions in
the country have led to the decline in sales and revenue of travel companies such as Trail finder.
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