Development and Factors Affecting Travel and Tourism Report

This report provides a comprehensive overview of the travel and tourism industry, examining its development since 1980, including transportation, product, and destination advancements. It identifies key sectors such as accommodation, travel trade, and MICE. The report explores trends and factors influencing consumer choices, including infrastructure, environmental conditions, and security. A PESTEL analysis is used to assess political, social, environmental, technological, and legal factors impacting the industry. The report also discusses relevant legislation, such as the Tourism Act of 1969 and the Package Travel Regulations of 1992, and their effects on security, package holidays, and Air Passenger Duty (APD). The assignment focuses on Thomas Cook, analyzing its role within the tourism and hospitality sectors.

Travel and Tourism

Contents
Introduction.................................................................................................................................................3
TASK1...........................................................................................................................................................3
1.1 Explain the development of the industry since 1980 e.g. transport, product & destination
development...........................................................................................................................................3
2.1 Explain the main sectors of the travel and tourism industries...........................................................4
4.1 Explain the roles of the profit sector & not for profit sector organizations.......................................5
TASK2...........................................................................................................................................................6
3.1. Explain the trends & factors that affect consumer choice destinations............................................6
4.1. Explain the key areas of legislation and how it affects the industry e.g. security, package holidays,
APD..........................................................................................................................................................8
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Travel tourism sector plays an important role in overall development and growth where
particular country earns huge amount of profits and helpful in achieving better GDP rate of
country (Aldebert , Dang and Longhi ,2011). Further, Hospitality industry has gained wide range
of importance in present scenario in order to handling public who travel from one place to
another whether it is for entertainment and for any other special business objective. Apart from
it tourism industry is far different from other business sector who provide various innovative
services to customers in order to give them utmost satisfaction because of which hospitality has
always interlinked with tourism sector. Under this assignment the company preferred i.e.
Thomas Cook who work in both tourism and hospitality sector and explain about transportation,
product and other sector and then pestle analysis of travel industries.
TASK1
1.1 Explain the development of the industry since 1980 e.g. transport, product & destination
development.
In year 1981: -
Cox &Kings is considered as first travel agency who was founded in year 1982 in which
Richard cox become the first travel agent of British royal armed forces. This will give further
help in the further development and improvement in travel industries.
In year 1995: -
After that in June 1995 Thomas cook consider as first leisure travel industry who come
both in the business of hospitality and travel sector in order to improve the living standard o
people and participate in temperance movement also. Further, it allow organization to expand
their market at global level which help in increasing their profit and market share.
In 1997: -
Thomas cook ran first commercial packages tour provide such type of railway tickets
which are cost effective and guideline also mention there for help. This was considered one the
huge growth in transportation area which was never expected before in UK (Baker ,2014). In
respect of product development emergence of automobile sector that also contribute in tourism

development. For example, in year 1980 launched new car which was now popularly known as
Mercedes Benz which was now consider as top most car in automobile sector and luxurious
brand image at global level.
In aspect to development of Holiday destinations for which in year 1950 there was creation of
Club Mediterranean and other similar club holidays, precursor of today’s all-inclusive resorts.
This will lead to development of many tourist industries which increase the competition among
external market and customers getting wider choices in respect of travel tourism products
services including holidays and mode of destinations.
But this growth rate has been affected due to world war I, great depression arises and threats of
terrorist attacks were coming in market. But after the efforts of UK government new revolution
of development coming in market and various technological development in the form of internet
use in travel services.
An era of online booking of tickets has been coming which leads to the development of travel
tourist industry in infrastructure sector.
From the era of 1950 in transport sector there are different combination of factors which include
increase in free time availability, improvement of package tours and further growth in air
transport which help in improving the holiday package market.
Apart from it, in 1950 specially in UK development need to be made by tour operators because
they started making changes from individual business activities to more integrated operations. In
hotel industry company wants to make changes in their products and services because customer
expect more than accommodation therefore, it is important for hospitality business to include
some innovative and digitalise techniques in their industries in order to satisfy customers needs.
2.1 Explain the main sectors of the travel and tourism industries
There are different sectors in travel tourism industry which play an important in overall
growth and development of business. Further, it gives direction to this area that how they
improve their functioning by adding technological development and innovation in these
components and it describe below: -
Accommodation: -

It refers to making changes in activity programs, facility and place. It is generally given
for providing facility to tourists regarding different areas like hotels, motels and resorts. In
respect to this explanation there was a couple known as Amy and mark which were going to
travel in different place and they stay at trump hotel for 5 days and this hotel consist of different
facility like luxury room and total number of room around 261 therefore, accommodation one the
important place where tourist stay for comfort (Blanke and Chiesa ,2013).
Travel trade: -
It is considered as wholesale of company for all the character, inbound and tour
operations. Further, it consists of retail industry, business and other travel departments.
Therefore, it is best for increasing customer satisfaction by providing standard quality of
services. Under this approach there are different who come together in travel services.
Meetings, conferences and events: -
This consist of whole team which popularly known as MICE industry work for tourism
sector. Through meeting conferences, they increase the demand for services in tourism sector
like transportation, attraction and other accommodation. Through this medium consumer know
about the attractive features provided in travel sector and also assist travel companies to designed
such framework in which they offered clients attractive holiday schemes through which their
profitability increases.
Adventure Tourism, Recreation and ecotourism: -
Under this adventure tourism is divided into two parts know as soft and hard tourism
where soft related to low risk and lesser preparation and hard tourism means higher risk with
huge planning. Further recreation is done for the enjoyment of customer and ecotourism means
producing less carbon footprints that preserve environment for harmful things.
4.1 Explain the roles of the profit sector & not for profit sector organizations
Both the organization play a vital role in overall operations of travel tourism sector. They frame
various policies and strategies in order to gain huge benefits from this industry and various roles
played by various types industries which are discussed below: -
Non-profit organization: -

NPO or the charity sector plays a vital role in tourism development in the form of improvement
at various sectors like destination resorts etc. (Buhalis and Jun ,2011).
 Chambers of commerce and other travel association which work for the development of
whole tourism sector.
 Various historical and culture societies that work the growth and development of
business.
 Service club
 Various recreation and sports associations that invest in the infrastructure of various
sectors for tourism sectors.
 Service clubs and community association and various regional groups.
Various role played by profit organization are: -
 Invest finance for the better growth and development of business.
 More emphasis is given on the growth and development by including innovative ideas
and tactics in the product and
 in choosing services of tourism sector.
TASK2
3.1. Explain the trends & factors that affect consumer choice destinations
There are different factors in travel tourism sector that affect the choices of customers at the time
of choosing destination for travelling purpose by visitors which described below: -
Infrastructure development: - Before making a plan for the development of visiting the things
that attracts visitors is related to the facility of proper infrastructure that include transportation,
railways and hotels accommodations which must be properly maintain by particular country.
Favorable environmental conditions: - It is very important that natural conditions of particular
remain stable that allow tourist to visit at different destination of various countries. Apart from it
government of particular countries must arrange proper mechanism through which they save
tourist from natural calamity because unfavorable situations affect their choices.

Security arrangement: - It is duty of UK government to make proper arrangement of all the
security measures for the safety of visitors. Further at the time of mis happening arises to
particular person due to theft and terrorist attack take measures for consideration of person and
proper laws regulation must be formulate for maintaining decorum in particular country.
Therefore, the above factors must be considered by travel industries so that they can attract
visitors to travel in that particular country destination which their sales and profitability.
3.2 Explain using a PESTEL analysis, trends and factors that affect the travel and tourism
industries.
There are different types of factors and trends that affect the travel and tourism industries stated
below: -
Political factors: -
Different political factors like government regulations, policies and tariffs that were
regulated in goods and services and various infrastructure etc. In case of business various
political factor play an essential role in the regulation of business for example after joining EU
uk accepting European union and apart from it UK accepting USA campaign which adversely
affect their political instability. Issues like Visa proceeding affect it.
Social factors: -
There are many trends and factors that affect the customers taste and choice regarding
tourist destination. Therefore, it is important for the business to consider culture, emotions and
expectation of customers at the time of providing services to them. Therefore, it is important for
customers to adopt such measures like innovative tools for maintaining regular touch with
customers that help them in satisfying their wants.
Environmental analysis: -
Tourism is wholly depend upon the natural environment of business in which they are
operating their organization. Different factors have negative impact on business which includes:
Depletion of natural resources, pollution and different physical impacts that affect the tourism
sector to reach various places. Although whether it is positive and negative factors but all the

tourism industry is developed at faster step and various initiatives made by company for
controlling pollution.
Technological factors: -
Technology plays a vital role in overall development of any business or industry and
when a certain business provides facilities and are equipped with latest technology it creates a
better relation between them and the customers. Bookings tickets and online holiday bookings
have really excelled as the time progressed. Further wireless hotspot allows visitors to take the
knowledge about the location they want to visit.
Legal factors: -
There are different legal rules and regulation enforced by government that need to
followed by visitors at the time of travelling particular. Higher complexity in getting Visa and
heavy tax charges affect the choice of customer related to particular place.
4.1. Explain the key areas of legislation and how it affects the industry e.g. security, package
holidays, APD.
There is different legal legislation which were enforced in the industry of travel tourism
which they have to strictly followed for the better smoothing of their operations. Different laws
which are made under it are stated below: - Tourism Act, 1969: - this act is generally made for the establishment of British authority
and tourist board in England, Scotland and wales in order to promote the development of
tourism. Proper arrangement of funds for the establishment of accommodation like hotels
and entertainment facility. Policies are made for giving attractive holiday packages to
visitors.
 Package travel, package holidays and package regulation act, 1992: - This act is
generally made for all UK operators that offering various holiday packages have to
adhere with regulation of package travel, holiday and tour regulations. Further, it states
that tour operator whatever the terms condition fixed by them with customer cannot
breached on their own will and strict action taken for such misconduct.

CONCLUSION
It has been concluded from the assignment that tourism is not easy task because company
has to manage all the sectors which include accommodation, recreation, food beverages and
transportation facility. Further, there is vast scope of development of tourism sector so there must
be active participation of private, public and various government agencies through funding and
different tourism campaign that create awareness among customer regarding attractive offers
they get from tourism and hospitality sector.

REFERENCES
Books and Journals
Aldebert, B., Dang, R. J. and Longhi, C., 2011. Innovation in the tourism industry: The case of
Tourism@. Tourism management, 32(5), pp.1204-1213.
Baker, D .M .A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage. 2(1). p.9.
Blanke, J. and Chiesa, T., 2013, May. The travel & tourism competitiveness report 2013. In The
World Economic Forum.
Buhalis, D. and Jun, S .H., 2011. E-tourism. Contemporary tourism reviews. 1. pp.2-38.
Kayar, Ç .H. and Kozak, N., 2010. Measuring destination competitiveness: an application of the
travel and tourism competitiveness index (2007). Journal of Hospitality Marketing &
Management. 19(3). pp.203-216.
Swarbrooke, J. and Horner. S. ,2012. Business travel and tourism. Routledge.
Walker, J .R. and Walker, J .T., 2016. Introduction to hospitality management. Prentice Hall.
Xiang, Z. and Gretzel, U., 2010. Role of social media in online travel information
search. Tourism management, 31(2), pp.179-188.
Xiang, Z., Magnini, V .P. and Fesenmaier, D .R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services, 22, pp.244-249.