Travel and Tourism Sector: Structure, Impact, Strategies, and Demand

This report provides a comprehensive analysis of the travel and tourism sector, encompassing its structure, historical developments, and the influence of local and national governments. The report delves into the structure of the sector, including transport, tour operators, travel agents, attractions, accommodation, and ancillary services. It examines the impact of political changes, such as Brexit, on the industry. Furthermore, the report explores factors affecting tourism demand, including demographic, technological, economic, and political aspects, and explains how TUI Group has adapted its supply to meet these demands. The report also evaluates the positive and negative economic, environmental, and social impacts of tourism, providing strategies to minimize negative impacts and maximize positive ones within the context of TUI Group businesses. Finally, the report discusses how factors such as globalization, currency fluctuations, and inflation affect the industry and offers solutions to mitigate negative consequences and leverage positive outcomes for the TUI Group.

The Travel
and
Tourism Sector
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Task 1: “Structure & History of the Travel and Tourism Sector,
1.1 “Explain key historical developments in the travel and tourism industry,
1.2 “Explain the structure of the travel and tourism industry,
1.2
The structure of travel and tourism sector can be divided into the following parts:
 Transport- This section of travel and tourism sector includes the means that are involved
in taking people from one place to another. These include coach operators, car- hire
businesses, airlines and airports, railway network etc.
 Tour operators- This sector works towards combining the various elements that make up
a holiday. Hence, this sector is involved in selling holiday packages to the customers.
 Travel agents- these carry out the activities related to providing advice and information
to the tour operators. They are also involved in administering bookings for the tour
operators.
 Attractions- Attractions act as an appeal to the inbound as well as domestic tourism
market. These include natural and man- made attractions.
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 Accommodation- travel and tourism industry has different types of accommodation
namely gust accommodation, youth hostels, hotels, campus, holiday parks and campsites
etc.
 Ancillary services- This comprises of the ancillary services that are in the public sector.
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Task 2: “The influence of local and national governments and
international agencies on the travel and tourism sector U.K and
China,
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2.3
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Impact of political chanes on travel and tourism sector
March 9, 2017
olitical changes has various implications for travel and tourism sector. The image of
destinations is determined by political relations within and between states. Political
instability affects the tourism revenues by causing interruptions. However, if a
destination has strong image, then political instability does not have negative implications on it.
For example, destination like Thailand has strong image for its attractions and other facilities. It
is because of this, that political instability in Thailand does not create much negative impact on
travel and tourism sector of this country. Even if there is negative impact, it may be temporary.
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It is not always necessary that political changes have significant implications for the travel and
tourism industry of the nation. For example, Brexit may not have significant impact on the
overall travel and tourism industry of UK. However, some sectors of the industry may be
impacted. Presently, the non- European travels companies face limitations to market access.
Furthermore, the related regulations may be increased due to Brexit. However, it is also possible
that with Brexit, it may become difficult for UK’s travel and tourism industry to employ citizens
who belong to European Union Member states.
TASK 3
LO 3. Understand the effects of supply and demand on the travel and tourism sector
World Tourism Organization has given the definition of tourists according to which they are the
individuals who travel as well as stay at the numerous places which are different from their
native place. Tourists mostly travel main purpose of these people or individual mostly would be
leisure, entertainment, medical etc. The analysis of this report presents the demand and supply
scenario for the travel and tourism services and products.
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3.1- Explain factors affecting tourism demand
Demand in the tourism sector is an essential element that needs special contemplation and
specific management strategy in the travel and tourism industry (Aref, Redzuan and Gill, 2009).
Demand in tourism sector can be defined as the number of tourists visited a specific tourist
destination within a particular period of time. Given below is the description of the major factors
due to which the demand for TUI tourism products and services within UK is impacted.
Demographic- The modifying demography of customers has affected the demand because
tourist is conducting great spending power that mostly includes larger number of young
customers as well as great traveling frequency for customers (Evans, Campbell and Stonehouse,
2003). The demand is determined by these factors in a positive manner. This is because spending
is increased by the tourists.
Technological- Technological factors like availability of data and information on the internet
along with this online reservation process has impacted demand because customers are now able
to receive all relevant and important information as well as demand would enhance through
enhancing and changing technology in TUI travel and tourism.
Fluctuated Currency Rate- This is the most significant factor in decreasing currencies rates for
the destination nation would automatically attract larger and great amount of tourists or
customers in exactly that nation because the money would have great value in that nation (Gelan,
2003). As for illustration of this, if rates of GBP would decline in comparisons to the US dollar
then, the demand for tourism would increase. Also, the demand for travelling services will
increase.
Economics- This factor is quite important for TUI tourism as the economic situations in various
nations would also have significant impact on the products and services of tourism. If a country
is suffering from economic crisis, then it decreases the demand for products and services of
travel and tourism companies.
Political- high level of political stability in a country attracts various tourists. Hence, the demand
of tourists all over the world increases for that nation (Goodall and Ashworth, 2013). Political
stability is the most important reasons for enhancing demand from tourists in the UK.
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Inflation- The prices increases due to inflation in the interest rate. Also it makes the customers
less willing to contribute money due to the presence of increased interest rates in the market.
Globalization- With the advancement of globalization and travel of customers, also service
givers from one nation, to the other nation has allowed the trend in TUI tourism and travel
company thus much more customers are traveling their destinations from one nation to the other
nation (Globalization, 2016). As a result of this, the demand for products and services in TUI
tourism companies increases in UK.
3.2- Explain how supply has changed at TUI Group to meet the effects of demand.
Forming a balance is important so that the supply side can be balanced with the demand side TUI
tourism services and products provided by a nation. This assists in easy operation of the
company. The authority and various shareholders in TUI Tourism Company would be putting
constant efforts for balancing these two factors with each other. Supply of the TUI tourism
services and commodities has been modifying on the basis of managing the condition easily as
well as shareholders in tourism firm have answered positively to the enhancing demand (Regan,
Carlson and Rosenberger, 2012). There are various factors that have been changed for meeting
and satisfying the needs of customers for services of tourism and commodities. These elements
are quality, kinds of products, technology, and provision for accommodation, seasonality, and
services in TUI Tourism Company. There is enhancing pressure over accommodation for
managing the enhancing demand as well as larger amount of accommodation is established at the
tourists’ destinations (Scanlon, 2006).
Tour operators of TUI tourism firm has made efforts so that tourism demand can be
increased. This has also been done to enable the customers and tourists to receive appropriate
information as well as benefits at these places. The aspect of service and quality are extremely
important for the customers in recent time and shareholders in Tourism Company have
concentrated their attention on all these aspects of managing the demand for tourism services and
products (Sharpley, 2006). Seasonality is demand for the services and commodities require to be
handled by enhancing costing for the peak season as well as decreasing amounts in the offseason
so that demand can be handled in offseason. Technology is one of the most important factors as
it enables to manage the demand for services of tourism. Online reservation as well as the online
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information has made is easy for the customers throughout the world to avail these services from
their own nation only.
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TASK 4
LO 4. Understand the impacts of tourism
4.1 – Evaluate the main positive and negative economic, environmental and social impacts
of tourism with reference to TUI Group businesses.
TUI group is one of the fastest growing company in the world of tourism industries as there are
various advantages as well as limitations of tourism activities on the other nation handling all
these activities and functioning. Factors like, namely, economic, social and environmental would
impact travel and tourism organization in a positive as well as negative ways. The positive
economic advantages of tourism and travel firm would contain economic growth, the inflow of
foreign currency, government tax base, higher employment, enhancement in export industry and
higher income for the other nation (Shaw and Williams, 2004). Negative effects of economic
factors on TUI tourism and travel industry would contain the larger amount of living and there
would be demand for public service. Furthermore, another effect would be that economy will be
highly dependent on tourism organization.
In terms of positive environmental affects planning and control, maintaining and
improving quality of the atmosphere, conservation of natural resources and community revival.
Negative affects verified for the environmental factors would contain the degrading landscape,
impact on the natural scarce resources, effect because of pollution and also the devastation of
flora and fauna of the other nation. The tourism organizations are positively impacted by social
factors. The cultural principles of the concerned country are effectively preserved as a result of
social factors. It also helps in restoring the monuments of the nation. However, social factors also
affect negatively as there are loss of domestic festivals as well as the effect on the local tradition
from the tourist entering for visiting.
Observing into the traditional and cultural aspects it can be said that intercultural
understanding, as well as globalization of tradition, are the larger positive effects required by
other nation by tourism activities when there are various negative effects of tourism activities for
social factor like local skills, commercialization of the cultural events and loss of local
individuality etc. So, the political, cultural, environmental, economic factors on the TUI travel
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and tourism group thus leads for helping other nation for understanding the analysis of entire
advantages that would be required by tourism activities (Song, Witt and Li, 2009).
4.2 - Explain strategies that can be used to minimize the negative impacts while maximizing
the positive impacts TUI Group businesses.
It is important to formulate effective strategies so that the negative impacts of various factors can
be controlled. Reduction can be brought in the negative impact of economic factors by
implementing the strategy of handling local standards of lifestyle at a controllable level so that
standard of lifestyle does not enhance much more for the local person living in the region. Much
more local individuals should be involved in the economic policy and rules for providing
advantages to them so that they can manage the enhancing amount (Song, Witt and Li, 2009).
The strategy of change can be utilized for reducing the reliance on the tourism group in which
there should be appropriate combination and reliance on various sectors so that in nay certain
condition if any industry is not doing according to the expectation so there are no larger effects
of this on the entire economy of a nation.
The negative environmental effect can be decreased through establishing the key policy
and law in an environmental setting for resolving clash amongst access to natural resources as
well as environmental deterioration of the natural resources. This rules and policy established as
well as a committee hired for assuring the conservation of environmental factors that would
assure the minimum probable environmental effects of the environmental factors on the TUI
tourism group (Shaw and Williams, 2004). Additional environmental safeguard and security
agencies require to be hired who would receive the reviews of a certain tourism place in the
country and according to the negative effect analysis on these tourism activities future laws and
policies considering the environmental effects for tourism sites would be established and grow.
Negative traditional and cultural effect can be reduced through improving a quite strong host
nation culture and tradition that can have an excellent understanding of another tradition and
culture coming in contact to which culture by tourism activities but individuals should be
dedicated to the implementation of their own tradition and culture. This would support
individuals in the host nation for implementing their own culture and not getting encouragement
from the other culture as carried by tourists coming from various regions of the world.
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Conclusion
This report discusses the influence of supply and demand in the TUI Tour and Travel industry
which is the world’s leading travel operator. The study also demonstrates the factors that affect
the demand in tourism sector. It also analyzed the positive and negative economic and social
impacts of tourism. The study also discusses the strategies that can be used by TUI industry to
minimize the negative and maximize the positive impacts.
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