Report: Contemporary Issues in Travel and Tourism - Analysis

This report delves into the contemporary issues and trends shaping the travel and tourism sector, with a specific focus on London. It begins by analyzing the current issues driving change, such as natural disasters, terrorism, and immigration policies, and their impact on the tourism business. The report then explores various methods for analyzing these issues, emphasizing the importance of staying informed through online sources, newspapers, and market surveys. It further examines how travel and tourism businesses, specifically IAG, could respond to these changes, including SWOT and PEST analyses. Strategies for businesses like British Airways and Iberia are developed, focusing on marketing and brand development. Finally, the report analyzes the impacts of these issues and trends, discussing the likely consequences of businesses failing to adapt to market changes. Overall, the report provides a comprehensive overview of the challenges and opportunities within the travel and tourism sector, offering insights into how businesses can navigate and thrive in a dynamic environment.

CONTEMPORARY
ISSSUES IN TRAVEL AND
TOURISM

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
1.1 Analyze issues currently driving change in the travel and tourism sector..........................................3
1.2 Analyze different current issues using appropriate methods..............................................................4
TASK 2 Enclosed in ppt..............................................................................................................................5
TASK 3.......................................................................................................................................................5
3.1 Analyze how travel and tourism businesses could respond to change...............................................5
3.2 Develop strategies on how selected travel and tourism business could respond to change................6
3.3 Justify strategies for how selected travel and tourism sector could react to change...........................7
4.1 Analyze the impacts of issues and trends that drives change in travel and tourism sector.................7
4.2 Discuss the likely consequences of businesses failing to respond to market changes........................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Travel and tourism sector is dynamic sector which is constantly increasing with the
passage of time whose impact will be analyzed by an entity. This report is all about defining
current issues and trends running in the travel and tourism sector. This issues and trends are
identified with the help of statistical and non-monetary tools applied on the information collected
by the users.
TASK 1
1.1 Analyze issues currently driving change in the travel and tourism sector
The line manager of tour Operator Company has focuses on analyzing all the current
issues faced by London. This city is regarded as the heart of the United Kingdom being the
famous tourist destination in the UK (Robinson, Fallon, Cameron and Crotts, 2016). This place
offers wide variety of tourist spots that attracts wide number of visitors who explores the
aesthetic beauty of all the places. The centre of attraction of this tourist place is royal glory of
famous emperors who ruled the city and still ruling like Queen Elizabeth. The glory and dignity
of the whole Britain has maintained by this royal family who enhancing the values and beliefs of
their royal ancestors by continuing its monarchy period in the current environment. There are
several black spots which is reducing the overall image of this city in the eyes of all the visitors
who come outside the several countries to explore the exotic places and historic culture of this
place. Various current issues took places in the recent year which affected the overall tourism
business of the London (de Grosbois, 2016). This created fear among the visitors in order to visit
the places due to several reasons which are given as below:
Natural disaster- This kind of uncertainty took places in the Britain will not be controlled but it
created larger impact on the current travel and tourism business. In the recent year, Britain has
flooded in the year 2014 which spoil several tourist destinations. Whole tourism gets soiled as
normal resident find it difficult in order to maintain their survival in the areas of London. This
flood has affected major parts of England and Wales which is regarded as famous tourist spots in
enhancing the beauty of whole UK (Anwar, 2016). The current issue has disturbed the places and
disrupts the existing business of the local people which required time in order to improve their
present conditions. Holiday vacations and business meetings in the London will get postponed
which directly affects the travel operator in order to arrange vacations in another place which in
turns decreases the margin of the owner.
Terrorism- This is regarded as another important issue which is reducing the brad image of the
places as no one wants to travel a place which is under the attack of terrorists. Apart from
attacking and bombing in the famous places the most common sources of terrorism involves

human trafficking. Local people in the London are kidnapped which increases fear among
visitors to travel this city as compared to other city where they feel more safe and comfortable.
Changes in immigration-The visitor’s entered in the city of London when they get visa in form
of approval from the government of London I order to explore the beauty of the place. The
changes takes places in this particular policy will restrict its most of the users in order to enter
the city. Common example of the changes in the immigration policy is of restrictions for
students. This will directly affects its visitors as most of the visitors are the students who want to
travel the city for taking education (Pereira and de Paula, 2016). The restrictions imposed on the
student visa will shifted the demand of travelling London to the Australia. This is the reasons
Australia is called as the education city who invites students from several countries all across the
world by providing flexible terms of visas to all the students. The amendment in the immigration
policy will increases the tourism of the London.
1.2 Analyze different current issues using appropriate methods
The current issues will not affect the overall performance of the business operating under
travel and tourism sector when they analyze the future impact on their business in advance. An
individual need to update itself with all the external market information. The nature of the issues
needs to be evaluated by appointing personnel specially for collecting external information. This
information is essential for the business as this enhances their overall value in front of their
customers (Buda, 2016). The external changes are analyzed by the firm in advanced in order to
avoid legal consequences incurred in the whole travel and tourism sector. Analyzing future
trends by an enterprise will act like a fortune teller through which business tries to reduce their
pressure by alerting their employees to frame strategies to handle the external changes takes
places in the whole environment.
There are various major sources used by the corporation in order to collect important
information related to all the changes took places in the travel and tourism sector is given as
below:
Online sources- The issues will be searched with the help of internet as individuals can gather
important information at anytime according to their convenience (Giddy and Webb, 2016). An
entity can collect information about different issues in order to prepare itself in order to face
difficult situations. The inflation takes places in the external market can be assumed with the
help of past trends and patterns which gives clear idea to individuals in order to devise various
strategies in improving their overall performance.
Newspapers- The daily habit of reading different kinds of newspapers will update the
knowledge of a person regarding current issues (Pappas and Bregoli, 2016). It is essential to
know the trends and issues as this will prevent the current business from the external
environment. A person can read newspapers according to their conveniences at anywhere as with
the help of technology newspapers can be read using mobile and tablets. This has enhanced the

existing knowledge of an individual’s as this is less expensive method to gain more amount of
knowledge in lesser amount.
Market survey- The survey conducted by an entity will results into new facts and figures in
order to support their existing research study. The survey will be organized in order to improve
the internal deficiency lies in the existing business of travel and tour operator based in the United
Kingdom. The survey will emphasizes on the external market mainly includes competition
current faces by an enterprise.
TASK 2 Enclosed in ppt
TASK 3
3.1 Analyze how travel and tourism businesses could respond to change
The issues currently faced by the city of London will directly created larger impact on the
business of IAG who organizes tours in this particular city (Anwar, 2016). The overall
environment are required to be analyzed first before operating tours as this would decreases
brand image of the business among its customers or this would also reduce the amount of profit
margin achieved by the owner by selling travel packages to wide number of people during the
season time but flood in the Britain will decreases the total crowd in the city of London. The
business needs to analyze its external or internal environment by organizing SWOT analysis and
PEST analysis which is given as below:
SWOT
Strengths
Wide base of customers
Quality oriented services
Good employees
Weakness
Lack of market knowledge
Low brand value
Threat
Higher number of competitors
Opportunities
IAG acquired Thomas Cook
Investing in several airlines
Discontinue its non revenue business into new
diversified business
PEST
Political- Basic political issue faced by this airline at the Heathrow airport of the London related
to the development of third runway demanded from the UK government. This issue raised by this
entity will created controversies and invites trouble for this business. This issue reflects the
business expansion of producing new airplanes to be launched on the floor.

Economic- This involves higher inflation rates and exchange rates has increases the flight tickets
of this airlines which in turn reduces its existing number of customers. Sudden increment in the
prices will not be tolerable by its customers. This sudden increase in the prices is due to the
increase in the cost of jet fuel.
Social- Tastes and preferences of the customers will be accomplished by serving meals in the
flight as per the choice offered to the buyers while booking of the flights (Daskin, 2016). This
option has offered in order to gain the interest of most of the customers towards the business of
IAG. The comfort will also be offered to all the visitors who book tickets of this airline where
feeling of whole aircraft is created like a home.
Technology- International airline group keep pace with the technology in developing their
products or services in order to facilitate its variety of customers. With the introduction of mobile
technology this entity has adopted this particular technology in providing their flight services to
facilitate all of its customers. This offers special service to all the customers to book their flight
tickets through their Smartphone as scheduling and delaying of the flights will be easily notified
to all the customers through texts. The flight status can be checked by the buyers at anytime in
order to book their services with higher flexible payment system.
3.2 Develop strategies on how selected travel and tourism business could respond to change
IAG is a collaborative group of several businesses under which British airways and Iberia
has selected in order to devise new strategies in relation to the changes takes places in the
external market.
British Airways
Marketing strategies-British airways offered facility of lounge services on the airports for all
the travelers who have booked via flights. This strategic decision taken by the owner will target
all those customers who booked via flights as they will get accommodation facilities free of cost
without paying extra penny (Mossaz and Coghlan, 2016). The increasing prices of flights will
not affect its business as getting additional services along with the flight tickets will attract all
those customers who constantly travel for business or family purposes in a year. The external
changes will be compensated by inviting large number of people from its competitor’s towards
their airline business which in turn increases the brand value of this firm.
Iberia
Brand development- The positive aspects of this airline includes low cost flights offered in
short routes which will be expanded to long and international flight routes. This new policy will
steal the interest of wide number of customers who wish to travel in this airline in affordable
pricing charged by the owners (Gurtner, 2016). This approach increases the brand value of Iberia
among the customers who are aware about the existence of this airline. The short term routes will
be expanded to long term routes along good quality of food. This airline also got award for

serving in-flight catering which helps in inviting business class people who can organize private
parties in the flights. The exotic foods are served in the flight will be provided complimentary to
all the guests travels through this airline. This induces the brand value of this business entity in
front of all the customers who uses the services offered by this airline.
3.3 Justify strategies for how selected travel and tourism sector could react to change
British airways- The strategy adopted by British airways is to gather large base of customers
towards their own business due to the changes took places in the external environment. Changes
took place in the external market will disturb the current business functioning of this airline
which is compensate by inviting different set of customers (Fairer-Wessels, 2017). This is cost
beneficial approach lounge services are offered by airports free of cost to the airlines which is
offered to the customers in higher prices which accompanies with higher profit margin.
Iberia- Offering low cost flights to the international flights will not increases the cost as Iberia
has merged with British airways who will utilizes the old international flight. Old flight used by
Iberia in modified manner as this airline also worked in providing aircraft maintenance services.
This way profit will be earned by Iberia which in turn increases the overall profit of IAG.
TASK 4
4.1 Analyze the impacts of issues and trends that drives change in travel and tourism sector
External changes in the market will result into various changes takes places in the
organizational structure of Myla travel is given as below:
 Increasing scope of Thomas Cook by introducing newly developed services for their
customers will increases large rush of people in the United Kingdom.
 This will results into introduction of new products or services that induces the existing
market condition of this entity.
 Technology has brought by the firm which facilitates its various users in order to bring
innovative change in their current organizational structure.
 Scope of Myla travel has increases in the aviation industry which increases its
employee’s base who represent their firm in front of its customers by providing quality
oriented services.
 Low cost carrier is the core competencies of this airline which helps in getting
competitive advantage over its variety of customers.
4.2 Discuss the likely consequences of businesses failing to respond to market changes
Apart from having positive impressions of the change there are also negative reactions of
the changes takes places in the airline business is given as follows:
Customers- Increasing competition in the market will increases different airline options which
increases choices in front of customers (Gurtner, 2016). The customers will become choosing as
they power of negotiation which decreases the profit margin of the business.

Suppliers- The aircraft suppliers are less in number which increases their prices as there are lots
of sellers exists in the same market.
Brand image- Merger of British airways and Iberia will reduces the existing customers of Myla
travel for some time as consumers are confused as they get same services from Myla with the
introduction of newly merged company IAG.
CONCLUSION
It can be concluded that current issues in the travel and tourism sector has disturbed the
normal business sectors of various entities mentioned in the assignment. The issues are assessed
by an entity by applying various techniques which results in both positive and negative effects of
the changes in this particular sector.

REFERENCES
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