Analyzing Contemporary Issues in Travel and Tourism - Module 6 Report

This report examines contemporary issues in the travel and tourism sector, focusing on the impact of technological advancements, environmental awareness, and security concerns. It analyzes the strategies of travel companies like Thomas Cook in responding to these changes, including the adoption of new technologies, addressing environmental issues, and managing security risks. The report explores current trends such as adventure and sports tourism, and evaluates the responses of businesses to external factors through methods like PESTLE analysis. It also discusses the impact of these issues on the business context, the consequences of failing to adapt, and strategies for future development. The report also covers various training programs and initiatives designed to enhance employee skills and capabilities in the face of evolving market dynamics. The report also provides an overview of strategies related to customer attraction and retention.

Contemporary
issues in travel and
tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current issues driving changes.............................................................................................1
1.2 Analyse current issues by using appropriate methods .........................................................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travelling sector.........................................................3
2.2 Analyse current trends using appropriate methods (Covered in Poster)...............................5
TASK 3............................................................................................................................................5
3.1 Analyse response towards change in travel and tourism sector............................................5
3.2 Strategies development in relation to response to changes by selected business entity.......6
3.3 Justify the strategies which are using in response to modification.......................................7
TASK 4............................................................................................................................................8
4.1 Impact of issues and trends on driven business context........................................................8
4.2 Consequences when business get failed to deal with changes..............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and tourism is one of the largest sector over the world. It is also liable for
economic growth and development of different countries. UK is known as most famous city for
the purpose of tourism (Becker, 2016). Tourism sector also has covered different areas, such as-
hospitality, food, banking transportation etc. Thomas Cook is the chosen organisation in this
present assignment; it deals in providing travelling services to people. The group has its own a
number of tour operators and airlines in UK. Thomas Cook provides its services all over the
world and its operating income is £308 million. Apart from this, the present report will be
described current changes in the travel and tourism sector. There are certain changes that can put
an impact on business activities; thus, managers have to make strategies so as to quick respond
towards these issues.
TASK 1
1.1 Current issues driving changes
Tourism is the fastest growing sector, but in past years there are revealed certain changes
in terms of growth and development. But, such alternations also generate some issues that might
be affected the sector. Therefore, managers have to make developed effective strategies and
policies in order to reduce these issues. Below described are major changes which can driven up
change: - Technological advancement – In this modern era, travelling companies, like Thomas
Cook is are tend towards adopting different tools and techniques in order to provide
effective and qualitative services to customers. So that technological advancement is also
the major issue that has changed the dimensions of this industry. For example- hospitality
and transportation industry are rendering the facility of advance booking; it can be done
through by effective uses of techniques. Apart from this, firms are also using further
technological aspects in order to improves its sales and profitability (Cohen and Cohen,
2015). Increased environmental awareness – It is also a crucial factor which bring changes in
travelling industry. Environmental awareness relates with the high level prevention of
nature regarding any harm. Along with this, green tourism is developing day by day in
order to promote environmental protection. Now these companies, companies are active
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towards environmental awareness at a very wide spectrum between tourists. Due to
higher level of tourism, business entities are improved its efforts.
 Increased security – Security against any kind of harm or threat within society. As the
level of tourism is increasing, safety and security is becoming one of the major issue for
travelling sector as well as local government. The number of visitors is increasing day
day because of their disposable (Cohen and et. al., 2014). But terrorism put a huge impact
on growth and advancement of international tourism in negative manner.
1.2 Analyse current issues by using appropriate methods
Travel and tourism is known as one the dynamic industry that is affected by different
sectors. These problems are generated through number of visitors and their interests as well.
Manchester city is one of the best tourist destination; it has wide cultural history. On the basis of
journals and articles, Manchester has been ranked in top 10 cities over the globe. In 2015, people
spent around £900 billion and almost 1800000 tourists were visited the location. Instead of this,
travelling companies are facing several issues and problems, such as- terrorism, in stable
political conditions, strict laws, global warming etc.
In UK, the unstable political situations generates different issues which can affect
working activities of Thomas Cook. The government is not much supportive and the strict laws
ruin the interest of visitors. As the firm is operate in all over the world and it is very tough for
organisations to follow all these rules and legislation (Connell, 2013). Apart from this, global
warming is also an important problem of travelling companies. It effect the ecological balance of
the globe by influencing wildlife.
Different taxes and payment modes are also affecting travellers the hamper the growth
and development of travelling companies. People are not preferred to take travelling advantages
due to high taxes and duties. It results, individuals starts avoiding to visit any place. Apart from
this, due to poor management, companies are not able to provide effective customer services to
their visitors. Terrorism is one of the biggest issue in tourism sector UK is facing such problems.
Recently, United Kingdom had blasted in which many people were lost their life. Beside this,
globalisation is also in major issue that have an negative impact on travelling industries, such as
Thomas Cook. In UK, there are several foreign companies implemented which can affect growth
and development of existing companies.
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Information Pack
Subject – To encourage employees towards training as they can quickly respond towards
current issues.
This is glad to know you that Thomas Cook is organising a training and development session
for its employees in order to improve their skills and capabilities in an effective manner. Below
mentioned are those activities which will be involved in this plan: -
 Developing a training and development plan
 Identify all issues which can hamper employees' performance
 Determine the need of training in different areas
 Hire a specialist who can effective provide training
 Develop certain strategies and policies
 Analyse current market trends.
TASK 2
2.1 Current trends influencing change in travelling sector
In order to grow and diversify in target market, it is essential for managers to identify
certain issues and problems in an effective manner. For the same purpose, proper methods and
resources are being used. Apart from this, people always wants to visit to those countries which
are economically suitable for them and also provides higher level of satisfaction. Due to dynamic
nature of market, people needs and demands are changed day by day. Current trends are known
as those aspects which can affect purchasing power of customers. For instance, in modern era
some people wants to go a tourist destination for a specific aim not for visiting. Adventure tourism – In today's scenario, the core concept of tourism has been totally
modified from ancient times. Several people visit UK in order to take an adventurous
experience (Dickinson and et. al., 2014). For example- tourists go to Africa in order to
see wildlife and take ecological experience. This phase of tourism gives higher level of
satisfaction. Therefore, Thomas Cook needs to organise such type of tours in order to
attain and retain clients for long term period.
 Sports tourism – Sports tourism is also a significant trend in tourism which attracts
several sports lover in an effective manner. It also enables travelling industry by generate
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more sales revenue and profitability by organising any event at there. In 2012,
Paralympics and Olympics was enhanced the annual turnover of country because many
individuals were went to saw this.
Illustration 1: Growth of tourism
(Source: 2017 Inbound tourism forecast, 2017)
As per the above diagram, it has evaluated that inbound tourism is expanded day by day
since the last few years. In comparison to 2016, the number of visitors are increased by 40
million till July 2017 and it is remaining over the year. Along with this, inbound tourism has
been taken place of many current trends at marketplace. This will put a huge impact on sport and
adventure tourism that is getting enhanced rapidly. Thomas cook needs to grab such
opportunities and launch several new tour campaigns through which, the firm can easily
contributes in economy development.
Information Pack
Subject – Apply different tactics in order to increase the number of customers.
Thomas Cook is implementing various strategies and policies in order gain customers'
attention and rentation. In this perspective, management is focused on Ansoff Matrix and
limited market growth strategy.
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Both tactics will be assistive in gaining high market growth and share in a pervasive manner.
2.2 Analyse current trends using appropriate methods (Covered in Poster)
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TASK 3
3.1 Analyse response towards change in travel and tourism sector
Changes in business environment are levied on its business operations and activities.
Business organisations are resisted in order to react quickly towards these modifications.
Initially, international travelling companies, such as – British Airways, Iberia are using different
approaches so as to effectively interact with their target audiences.
British Airways and Iberia is the greatest airline in UK on the basis of its fleet size. Both
comes under International Airlines group. These organisations are rendered low prices travelling
services in order to attain and retain users for long term period. But in recent years, people are
not prefer to visit UK due to many reasons. Therefore, in order to respond quickly towards
external forces managers have to conduct PESTLE analysis for getting better outcomes in future.
Political factors Economical factors Social factors
The expansion of travelling
companies is wide and it is not
explore at global level. British
Airways and Iberia both are
performing in several
countries. Every government
has different rules and
regulations which is followed
by tour operators (Hall and
Page, 2014). Thus, changes in
government rules are properly
determined by travelling
companies in order to achieve
their goals and objectives.
It is the responsibility of the
management to understand
foreign currency rates, tax and
interest rates of countries
where a group will be
commencing its business. It
helps in systematically
implementation of working
activities. For example- if the
currency rate is low then
British Airways and Iberia
have to other steps for dealing
with target market.
In this modern era, the needs
and wants of people are
changing day by day. It is too
difficult for Airline groups to
meet the expectations of
visitors in those countries
where they explore their
services. It helps companies to
grow and diversify in target
market.
Technological factors Legal factors Environmental factors
Due new and innovative
alterations in technology,
Airlines companies are able to
Certain legal laws and
legislation can bound business
activities and operations. So
British Airways and Iberia are
tend towards environmental
protections (Hannam, Butler
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deliver qualitative and value
added services to its users. For
example-travellers are getting
the facility of advance online
booking of their tickets by
technological advancement.
that tour operators have to
serve in legal and ethical
manner.
and Paris, 2014). They also
contributes in it.
3.2 Strategies development in relation to response to changes by selected business entity
A little modification is business environment can affect its overall growth and
productivity in positive and negative manner. Therefore, managers have to make proper
strategies and policies in order to deal with all future situations. Travelling agencies need to
develop short and long term goals and analyse all factors which will affect on its future
performance. In addition, IAG also have to review its vision and mission and try to improve it an
effective manner.
International airlines group is one of the biggest travelling agency by having 500 aircraft
which are flying over 250 locations. British Airways and Iberia, both need to develop its
strategies so as to respond towards target market.
British Airways – As the most popular aircraft company with high market share; it is
essential for British Airways to modify its current marketing strategies. Due to the dynamic
market trends, the firm has to focuses on producing new products and services. In this context,
British Airways can adopt new product development strategy; it helps a company grow and
diversify in current market by introducing new technologies and offerings. The strategy would be
accessible in for it in order to quick response towards current market changes (Hartmann, 2014).
Along with this, business organisation can also grab effective future opportunities. The new
product development strategy is also helpful in increasing the number of tourist as well as
profitability of the firm.
Iberia – Another group of IAG is Iberia Airlines; which needs to formulate its current
strategies and policies. In this perspective, the firm can use marketing mix it is a service
marketing industry. Marketing mix includes 4Ps, such as- product, price, place and promotion.
The strategy states that Iberia have to put its products on right place and on an average price. In
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addition, fir also have to use effective channels of promotion in order to attain and retain
customers for long time of span.
British Airways is the flag carrier and the largest airline group in the UK. It has been
efficiently placing itself in the second largest position in the measurement of carrying the
passengers. Merger with Iberia lead to the coordination in the transatlantic routes with American
Airlines. Short haul services with added values like renovated waiting launch, breakfast would
be efficient in approaching potential business class or economic class. Apart from this, the
company also using different tools and technologies while providing services for attracting and
retaining the business markets. Setting slower cost over the long hauls would be needed to
overcome the barriers placed by cost carriers. Hence, both strategies are supportive for IAG as it
can effectively deal with set course of action. This respond is also beneficial in brand
development. Tourism is one of the fastest growing industry so that each objective should be
ascertain in proper manner (Kim and Ritchie, 2014). Apart from this, travelling agencies can also
adopt further strategies, i.e. set time schedule for all activities regarding flights, focuses on safety
and security measures so that guests can gain higher satisfactory level. Collecting reviews and
feedbacks from travelling for managing healthy and positive relationship with them.
3.3 Justify the strategies which are using in response to modification
Different strategies and policies are being used by International Airlines group for
improving the capabilities of working activities. It helps in retaining existing customers and
access to potential travellers. Business strategies are helpful in achieving goals and objectives of
business organisations in a systematic manner. With this, firms also can respond towards
changes effectively. Therefore, British Airways and Iberia have to develop its strategies and
plans in order to deal with future market situations. Management needs to conduct a market
research for recognising customers' desires and demand so as to satisfy their wants (Luh Sin,
Oakes and Mostafanezhad, 2015). Managers also have to focuses on reducing business issues
and problems, such as – maximisation in tax rates, changes in customers' perspective etc. British Airways – This travelling organisation is emphasising on inventing more and
more services in order to stay for long term period in target market. It will support
managers to reach with their target and potential users. In this context, firm has to analyse
its vision and mission and make them more effective so as to deal with every situation.
PESTLE analysis is a best method for responding fast towards market trends.
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 Lberia – The firm is using marketing mix strategy in order to ascertain its goals and
objectives in an effective manner. Along with this, firm also have to use new and
innovative promotional channels for reaching large group of customers. Effective
services are also accessible in providing the best products and services to guests.
British Airways known for providing high class services at premium prices. But due to
competitive environment, the lower cost air services are placed on higher amount of market
competition. There is a competition from short hauls services are also putting impacts over
working activities of BA. Therefore, for retaining position in target market the airline inductry
cannot reduce the cost of its services. By cutting the prices it can place negative impression over
the minds of the travellers in terms of service qualities.
TASK 4
4.1 Impact of issues and trends on driven business context
Due to ever changing nature of environment, there are various problems and issues which
are being faced by employees. This can affect their business operations and activities in an
adverse manner. Myla travel is the famous travelling agency by having 10 offices in United
Kingdom. The growth and success of the firm is depend on the number of its travellers. The
travelling agency is rapidly developed in market. Therefore, several firms who are working in
similar nature must to explore its business (Mariani and et. al., 2014). Thus, the level of
competition will be increased. There are many issues and barriers which can affect on several
areas of travel and tourism sector, is described as under: - Employment level – According to the scenario, changes in travelling industries put an
impact of employment level. These companies are needed large number of employees in
order to manage working activities. Therefore, the demand of tourism will be increased. Impact on business – Above described issues will be also put huge impact on other
business. As the expansion of travelling business will be also assistive in enhancing the
area of transportation and hospitality industry. Due to technological advancement,
companies are able to deal with its target and potential customers. Currency rates: - Fluctuation in the economic market in global premises impacts over the
travel and tourism business. The changes in the exchange rates, currency rates and
inflation rates are impacting over the purchasing decisions of the travellers. The
increasing tourism in the domestic markets can be considered as the result of these.
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 Security: Safety and security issues are most important in the travel and tourism business.
The increased terrorism attacks have been increasing the debts over the safety and
security in the gravel and tourism. The 9/11 incident along with Paris attack have raised
the security in the travel and tourism services and the security measures the destinations
government.
4.2 Consequences when business get failed to deal with changes
Current trends and issues in travelling sector have to resolved in proper manner. Certain
problems are faced by companies in managing as well as sustaining competitive advantage. It is
liable to get failure of a business entity at international level. Therefore, in order to overcome
with this problem management needs to produce eco-friendly products and services. In UK,
several firms are using solar panel for its production processes. There are certain consequences
are faced by travelling companies if it cannot respond effectively with market trends, that are
described as under: -
 It can reduces sales revenue and profitability of the companies. It results, the margin of
operating income get diminished and public will switch to other firms (McKercher,
2016).
 It an organisation does not perform effectively in target market, then it cannot attract
shareholders or venture capitalists towards it. It can reduces financial position of the
company.
 It can also reduces credibility and loyalty of customers. They would not purchases
ineffective companies which does not have good market portfolio.
CONCLUSION
From the above mentioned report, it has been concluded that travel and tourism sector is
one of the fastest growing sector in all over the world. It provides job opportunities to people so
as to improve their living standard in an effective manner. Along with the new current trends in
travelling sector is – technological advancement, increasing environmental awareness etc. The
major issues for tourism sector, such as- terrorism, global warming, strict laws, unstable political
conditions. Now these days, companies are focusing on adventurous and sports tourism in order
to attain and retain customers for long term period. Thomas cook has to conduct PESTLE
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