Comprehensive Report: Contemporary Issues and Trends in Tourism Sector

This report delves into the contemporary issues and trends shaping the travel and tourism industry. It begins by exploring current issues like technological advancements, environmental awareness, and political changes, analyzing their impact using various methods and resources. The report then investigates current trends such as niche market development and pricing strategies, particularly focusing on all-inclusive hotels and their effects on local distributors and communities. It further analyzes how the travel and tourism sector can respond to these changes, developing and justifying strategies for tourism businesses. The impact of these issues and trends, along with the consequences of businesses failing to adapt to market changes, are also examined. The report covers topics such as natural disasters, terrorism, currency fluctuations, inflation, and employment issues within the tourism sector. Furthermore, it highlights the similarities and differences between the hospitality and tourism industries and their respective impacts on a country's development.

Contemporary
issues

Table of Contents
INTRODUCTION......................................................................................................................4
TASK 1......................................................................................................................................4
1.1 Current issues driving changes in the travel and tourism industry..................................4
1.2 Analysis of different current issues using appropriate methods and resources...............5
Task 2.........................................................................................................................................7
2.1 Current trends influencing changes in the tourism sector...............................................7
2.2 Current trends using appropriate resources and techniques............................................8
Task 3.........................................................................................................................................9
3.1 Analysis of how travel and tourism sector could response to changes...........................9
3.2 Development of strategies on how tourism businesses could response to changes......11
3.3 Justification of strategies used in travel and tourism sector..........................................13
Task 4.......................................................................................................................................14
4.1 Impact of issues and trends which drive changes in the travel and tourism sector.......14
4.2 Consequences of businesses failing to respond to market changes...............................15
Conclusion................................................................................................................................16
references..................................................................................................................................17

Illustration Index
Illustration 1: Promotional activities........................................................................................11
Illustration 2: Marketing mix...................................................................................................12

INTRODUCTION
Travel and tourism is one of the emerging service industries which are significantly
contributing in the economic development of a country. This sector is composed of leisure
travellers, groups of business travellers and other non-leisure travellers who have more
investment power to spend on tourism for the purpose of leisure and recreational services.
Tourism sector has undertaken many changes at a large scale in the realm of hyper
competition in the business world. Thus, current module explores the current issues and
trends in tourism and travel industry and impact of travel and tourism industry will also be
discussed in this unit. It will also emphasize on the trends in tourism of niche market and
pricing methods. Furthermore, with the assistance of various strategic techniques such as
PEST and SWOT analysis, current situations of the market will be discussed. Moreover, with
the references of statistical data and information, impact of changes in tourism sector will be
analysed.
TASK 1 (LO1)
1a) LO1.1 Current issues driving changes in the travel and tourism industry
Technological advancement in the business of travel and tourism:
Different types of technologies are invented in tourism sector which provide number
of facilities to the customers. They can now book their trip online and informed by their
destination with the insight of destination (Benur and Bramwell, 2015). Many travel
companies make their online websites as it becomes for customers to compare prices of
different travel agencies online. Also, it can help them to cancel the ticket if their plan would
get canceled. Different technologies like in mobile, GPS service is provided for online
mapping facility to make search based on the location. Furthermore, security check can also
be used in the tourist companies for the safety and protection of travellers/tourists. This
service offers a strong and significant performance to the travelers at their destination.
Developing technology makes the travel more expensive in UK, 2011 looking the cheapest
option consumer mind changed. It means consumer are looking for the best designation at a
reasonable price.
Increased environmental awareness:
Travel and tourism is one of the basic needs as a result of social development. There
are different ways of travel and people choose different ways to travel according to their
financial status (Cohen and Cohen, 2012). Developed countries have more travel experience

so their awareness regarding protecting environment and resources is much higher than
others. Nowadays, visitors are aware of several environmental issues, like pollution and etc.,
that's why tourist company need to adapt effective strategies to meet the demands and needs
of tourists. Furthermore, these organisations are also required to deal with local and
international considerations related to environment to sustain in the competitive world.
VIETNAM is a developing country so, tourism and travel is a common activities. In
this nation, people are not having much knowledge of environment protection which leads to
pollution and damage in many famous tourist places. If this destination were damaged
nobody will chose to travel on such places to enjoy their holidays. Everyone should urge to
participate in these actions for developing travel and tourism sector. Tourists often go to
destination that is having natural beauty depends upon unique and beautiful places willing to
pay to enjoy them.
Political changes:
Political changes can either increase or decrease a country's attractiveness for tourism.
This factor mainly refers to government issues with respect to tax policies, labour laws, trade
restrictions, etc. Furthermore, there are also other issues, like visa policies, Government
funding and support, tourist taxes and local and international regulations which can affect the
tour operations.
Strict visa policies help in combating terrorism issues. Hence, these increase the
attractiveness of a destination (Werthner and et.al., 2015). However, if the tourists find the
visa policies too strict, they may not prefer to travel that particular destination. Government
funding and support provides numerous benefits as it helps in development of a nation. High
level of support and expenditure made by the government improves infrastructure,
transportation and other attractions within a nation. Hence, this attracts the tourists to the
place. However, it also increases the pressure on other sectors as high expenditure in travel
and tourism sector may prevent the government to take care of other aspects of the country.
Tourist taxes on services may contribute to the economy of the nation. These may further
help the nation to develop its attractions with the amount obtained through taxes (Weidenfeld,
2013). However, taxes may have a negative impact on the behaviour and attitude of tourists.
They may not visit the country if the taxes are high.
Favourable government policies and foreign investment norms directly affect the
tourism sector. Global politics are an important factor travel can slow or restricted altogether.
For example, Egypt was a fantasy destination for tourists all over the world (Cohen, and et.

al., 2014). The tourism in that area has stopped due to revolution of 2011. Major political
factors are there which occur and the travel agency must adjust according to conditions.
LO1.2 Analysis of different current issues using appropriate methods and resources
1b) (i) Secondary research to identify two issues
Natural disaster:
The impact of natural disaster due to changing weather patterns around the world is a
currently developing issue for travel and tourism industry. Many islands have been washed
away due to floods and disasters which affects the tourism sector. An example of a natural
disaster is 1000 mile wide hurricane Sandy, which has destroyed the coast of U.S. The
superstore has forced airlines to cancel more than 12000 flights and disturbed the plans of
travellers all over the world.
Terrorism:
Terrorism is another current issue which has a massive effect on tourism sector because
when people hear about terrorist attacks, they become more careful for their own safety. So,
people change their travel plan and visit to other destination where risk is less.
For example: terrorist attack 9/11 had a great affect on tourism and after that, the
number of tourist arrivals fell due to this attacks.
Other issues:
Travel and Tourism sector is growing with swift pace in service industry and highly
influencing the economic growth and development of nation. With supporting the facts, some
experts contented that every country is facing major issues regarding fluctuations in the
currency prices of different nations. With the rise in depreciation in currency rates, growth of
travel and tourism industry has lower down (Connell, 2013). In the modern scenario, inflation
rate is continuously increasing, which is affecting the investment power of traveller, as a
result of which tourist organisation get affected. Ahead, in accordance with the views of
professionals and experts, employment rate is also affecting. Due to lack of training and
development programmes at the workplace of tourism organisation, employees are also
facing many issues as major emphasis is given on increasing the satisfaction level of
customers and guests rather that career growth and development of employees. Moreover,
priority is given to male candidates in the recruitment process. Due to occurrence of such
discrimination, turnover rate of employees is increasing. Also, customers would not be able
to satisfy with their services, as a result of which growth rate of tourist company will affect.

In addition to this, it is also stated by some authors that due to high level of uncertainty in the
customer demand and preferences as well as because of presence of immense competition, it
has become necessary to modify and improve the current tourism services and products
(Evans, Stonehouse and Campbell, 2012). Because of high-income power of people, they
tend to spend lavishly on leisure services and recreational activities. So, tourism organisations
are required to make adequate changes and improvements in its tour services. With respect to
these elements, professionals have provided their views and opinions to utilize the resources
in a significant manner.
1 (b) (ii) Similarities and differences in the hospitality and tourism sector and their impact on
the development of a country
There are various issues which look similar in the hospitality and tourism industry.
People who works for availing customer services in the travel services possess great role in
the tourism industry. There are various activities which are offered to tourist in hospitality
industry such as, accommodation, food services, sanitation, restaurants, bars, pubs and other
services. Issues like natural disaster and terrorism impact hospitality industry as due to
natural disaster, the hotels, bars, pubs are not able to work efficiently. Further, the food
services and sanitation could also not be provided to the tourist during the disasters such as an
earthquake or flood (Cohen, and et. al., 2014). However, in the travel and tourist industry,
employees look for the convenience of tourist, they are responsible to make them comfortable
and satisfied. Travel and tourism industry is responsible to avail proper direction and
guidance to tourists so that they can be facilitated with latest tour packages and services.
However, there are great difference in the hospitality and tourism industry (Falk and et.al.,
2012). Hospitality industry provide all lavish services to tourist and satisfy them by treating
well. But on the other hand, tourism industries are responsible to provide travelling related
services. Issues like natural disaster create obstruction in providing travelling services to the
customers due to damaged roads. Terrorism also impacts tourism industry as the
organizations have to search for other modes of travel which are safe and secure for the
tourists.
TASK 2 (LO2)
2a) Current trends influencing changes in the tourism sector
In the present scenario the development of niche market and new pricing structure can
be termed as the two latest trends in travel and tourism industry (Fennell, 2015). The concept
of niche market is linked with dealing with a specific product or service to satisfy need and

demand of a particular group of people in the marketplace. On the other side of this,
businesses operating in travel and tourism sector are also required to take care of the pricing
strategy which they have adopted. The influence of above mentioned trends on the entire
sector is provided below as:
All inclusive hotels- The operation and activities of all inclusive hotels has been
affected to a great extent by the mentioned trends. An all-inclusive resort is a kind of holiday
resort which comprises of minimum three meals; daily and soft-drinks, gratuities, most
alcoholic drinks and many other services in the one price. Their pricing distribution are made
in such a way that, all requirements of tourists get include in single package. In addition to
this, the staff member needs to be very helpful and professional so that customers’ needs can
be understood and services can be delivered according to the same. However, there is great
influence of these services on local distributors, as they lost their income and career
opportunities. All – inclusive hotels consume most of the cash of the tourists which results in
a situation that little finance is left for the local community. This is influencing the travel and
tourism sector as the local operators get less amount of money which results in poor working
conditions, log work days, short term contracts etc. The local workers are not able to earn a
liveable wage.
Short and weakened breaks- The concept of such type of breaks is also developed in
the nation where families are looking forward for short term tour. Short breaks have
increased the scope of tourism and expanded the Stag and Hen party sphere of the tourism.
Furthermore, individuals starts visiting their nearby places and cities for having fun and
relaxation during their weekends. It can be stated that prices of such tour are generally
moderate in which different type of tour related services are being offered to travellers for
short span. For instance, City stock brokers like to take short breaks of 2 or 3 weeks an d
explore the tourist destinations by taking one room along with some facilities. However, it
can be evaluated that this trend is new to the consumers and is not clearly implemented. This
is because there is no specific definition of short breaks. Hence, it may lead to faulty services
being provided to the customers due to lack of awareness.
Specialist operator- In the present scenario, the concept of niche market has also
affected specialised tour operators. Specialist tour operators put all packages together with a
combination of travel, accommodation and transfers. These operators are flexible for
customers, as they can provide whatever facility a customer demand for. For example
trekking, cycling and many more. In contrast to this, special interest tour operators make

arrangements for the tours which are based on specific themes or educational tours. For
example, these operators may be organizations such as universities, synagogues, travel clubs,
churches etc. Specialist operators can charge high prices of their packages On the other
hand, special interest tour operators design tour packages in accordance to the interest of
clients. Here, price of package can be modify according to the demand and needs of
travellers. Price of these packages can be low or high. Special interest tour operators are
experts in tourism businesses, they know the choices and preferences of customers, according
to which they provide guidance to them. Nowadays operators are providing services related
to areas such as grey tourism, health and religious and gastronomy tourism. It can be stated
that the concept of gastronomy tourism is the one which client and customers are made aware
local food and culture (Hall and Page, 2014). On the other hand, health tourisms has been
carried out with an objective to promote well being and overall, health of people. Some tour
operators has started providing focus on grey tourism in which old age people are generally
targeted. The last concept of religious tourism deals with offering services and providing
tours that are associated with religion and spirituality. It can be also stated the above
mentioned type of tours are not offered by every business or tour operator, there are only
specialized travel agents which are offering such kind of services. Thus, there are both
positive and negative points of special interest tour operators and specialist operators. If
tourist has not sufficient interest of tourist destination, and if he choose special interest
operators then, he operator can take advantage of him. Moreover, if the client possesses
sufficient knowledge then he can effectively mould his tour package and demand for desired
facilities and services. However, in case of specialist tour operators, tourist can charge high
cost. Further, it may also possible that, designed package could not become so fruitful.
Specialist operators have specialization in providing a particular type of holiday such as
Skiing or weddings or for a particular destination. In contrast to this, special interest operators
arrange holidays for a particular interest such as photography or bird watching etc. The
positive aspect of special interest operators is that these help in promoting the unique aspects
of a particular destination such as birds, wildlife and are able to satisfy the specific needs of
tourists (Connell, 2013). However, these may not consider the environmental impact of the
various activities conducted by them.
2b) LO 2.2 Current trends using appropriate resources and techniques
Introduction

Costa Rica is the Central American country with the population of 3.9 million people.
This country is an ecotourists paradise, as over 10% of its land is protected by national parks,
5% part of world's species of flora and fauna and over 17% is reserved with forests. Also, it
constituents of 2,000 species of orchids, 850 species of birds. 500,000 millions of total
species of animals and plants, 208 species of mammals and many endless species of
butterflies and moths. Thus, there are many attractions and dangers of this tourism, which
affect its growth.
Current situation in Costa Rica
Costa Rica has utilized many opportunities and created some activities in order to
encourage travellers to visit the nation. Moreover, there has been also many benefits to
people as they are acquiring knowledge of different languages and culture.
However, there are also many limitations of tourism, like over-crowding and
environment damages (Hannam, Butler and Paris, 2014). As, environment is one of the
nation's greatest priority, so an effective lodging has to built so that environment would not
get affected. Moreover, by renting a high price eco-lodge can lower down the interest of
tourist; as they tend to find less expensive eco-lodge, such as breakfasts and eco bed. So,
there are various cheaper tour packages are available according to income level group of
people. If there is cheaper tourism available then, more number of people will be attracted
who can easily afford cheaper holidays package. Costa Rica should make significant efforts
to increase eco-tourism.
As per the provided case study, the Costa Rican authorities are making significant
efforts in order to increase eco-tourism (Law and et.al., 2015). There is great impact of
tourism on local communities as well as on the economy of the UK. Some positive impacts of
tourism are given as below:
 Local communities and societies of the Costa Rica will get ample of job opportunities.
 There will be rise in the economy of the country, as due to high investment power of
tourist, more income will be generated.
 Moreover, local services like, village shops, post offices, buses and other
transportation services will get improved.
 The demand of crafts and local food will increased.

 Along with this, with the increase in the tourism ratio, the requirement to preserve
wildlife and natural habitants will also increases. So that the interest of tourist to see
wildlife and the scenery will retained (Law, Buhalis and Cobanoglu, 2014).
However, some negative impacts of tourism are mentioned below:
 Pollution and traffic congestion will increase.
 The demand for developments more facilities, shops and hotels will increase. Also, the demand for development of guest rooms, holiday home makes will increase
which will increase the expenses (Lovelock and Lovelock, 2013).
Conclusions
 The main aim of eco-tourism is to minimize the environmental damages. Moreover,
there are many approaches which can be adopted by the Costa Rica to increase eco-
tourism, some of them are stated below:
 The Costa Rica tourism authorities can ensure that tourist do not exploit natural
environment and local societies.
 The authority can also make development plans by consulting with local
communities.
 Also, they can make sure that any improvements and changes in the infrastructure of
tourism destination will provide substantial benefits to tourists as well as localities
(Kim and Ritchie, 2014).
 Moreover, the UK government can also actively participate in the promotional
campaigns of tourism destinations. For instance, the government of Costa Rica can
avail cheap eco-lodging to its tourists, in order to build their interest.
 Tourism authorities also need to research on the development of eco-tourism in an
effective manner, so that large number of tourist can be attracted.
TASK 3
3a) LO 3.1 Analysis of how travel and tourism sector could response to changes
PEST Analysis of Buffalo tour
PEST Analysis of Buffalo tour is mainly used to know the general environmental
factors and elements in the surroundings which can affect its tourism operations. PEST is
acronym for political social, economical, and technological factors.

Political factor:
Political factor has a large affect upon the tourism sector. It includes government rules
and regulation and all its legal policy under which business should operate (Lovelock and
Lovelock, 2013). There are many tax policies that imposed on the tourist, increased petrol
prices also affect the Buffalo tour and travels. Due to which interest of tourists can lower
down.
Social factor:
People who are accessing the internet at home they can book there tickets for travel
in U.K. Moreover, focus is done on the safety and security while travailing are generally
found in that country. Financial status also affect their business because middle class people
choose reasonable price transports. Moreover, local communities and societies are highly get
affected by tour operations, as their rituals and ethic rites get reduced.
Economic factor:
From last two years Buffalo tour is facing hard time due to huge impact of global
competition in the travel market. Consumer income, unemployment rate and increased petrol
price have great impact on travel industry. However, with the increase in disposable income,
the investment power of travellers has also increased, which increases the growth rate of
tourist industry.
Technological factor:
The development of technology is also affecting the buffalo travel agency. Changes in
the technology have changed the way to control the business activity (Mariani and et. al.,
2014). It has increased the business activities and operations of the firm. Online ticket can be
easily booked for holidays at reasonable price rates. Moreover, advanced technology
decreases work load of company. Online money transaction also saves the time of customers
they also get easily details of Buffalo tour.
SWOT Analysis of buffalo tour
Strengths:
Buffalo tour is very reliable for the customer, as it has built reputation in market. In
travelling all the activities should be maintained and developed for providing comfort to
customers (Navickas and Malakauskaite, 2015). It include managing efficient staff member