Contemporary Issues in Travel and Tourism

This report analyzes contemporary issues in the travel and tourism sector, focusing on factors driving change, challenges faced by tourist destinations, and the impact of these issues on businesses. It examines how International Airline Groups, specifically British Airways and Iberia, can respond to these changes through strategic planning. The report also discusses the consequences of businesses failing to adapt to market changes, using Myla Travel, Thomas Cook, and The Travel Network Group as case studies. The analysis includes political, economic, social, and technological factors affecting the industry, and it concludes with the importance of understanding and adapting to these issues for sustained success in the travel and tourism sector.

CONTEMPORARY ISSUES
IN TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving change in the travel and tourism sector..........................................1
1.2 Different types of current issues faced by tourist destinations.............................................2
TASK 2............................................................................................................................................4
Covered in PPT...........................................................................................................................4
TASK 3............................................................................................................................................4
3.1 Analysing International Airline group business ability for responding towards changes....4
3.2 Developing strategies which helps British Airways and Iberia could respond to changes...5
3.3 Justification for the strategies for International Airlines businesses that could respond to
changes........................................................................................................................................6
TASK 4............................................................................................................................................7
4.1 Impact of issues that drive change in the travel and tourism sector......................................7
4.2 Consequences of businesses failing to respond to market change........................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
In today's contemporary world, tourism sector is growing at the faster pace. Tourist and
travellers are spending good percentage of their income on travelling activities. Various business
enterprises are involved in providing accommodation, catering, aviation and other essential
amenities to the travellers. They are generating higher profit margins and revenue as well as
expanding their market operations. The government authorities are also taking keen efforts in
promoting and advertising travel and tourism based policies. There is increased involvement of
large corporate houses to promote various types of tourism like heritage tourism, green tourism,
grey tourism, educational tourism and medical tourism (Knollenberg and et. al., 2014). Strategic
planning is conducted to attract tourist and also benefit them to acquire better experience and
exposure to new places.
The current report avails tourist market of UK and latest trends prevailing in cited
industry. Further, it describes one of the popular tourist destinations in world that is London. It is
recognised as an array of famous tourist attractions and one of the most visited place for tourists.
It also specifies the number of impacts which are consequences of change in travel and tourism
sector.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
Every industry tourism sector has also progressed along way with several changes and
modifications which are taking place at the constant rate. The industry is largely influenced by
different issues generated through external factors like political, social, economical, cultural and
technological. The tour operating agencies, local communities and government authorities are
involved in coordinating and adopting these changing trends (Le Serre and Chevalier, 2012).
Their participation has made things easier and effective enough. It helps in adopting new
techniques and theories that help in increasing flow of travellers in the specified destination.
There is need to assess entire set of issues which are of great importance to maintain attraction
level of the place.
Government authorities should be enrolled in determining effective plans and strategies
to develop knowledge about various issues arising in the tourism industry (Lima and Martins,
2012). Proper research work by experts and professionals help to develop policies which seek

better interest of travellers. Efforts should be made to adopt the changes taking place in
concerned industry to gain greater profit and recognition. As mentioned earlier, London is a hub
of tourist destinations and famous tourist agency Cox and Kings have addressed several issues in
its tourist industry as well (Machlouzarides, 2010). Now, below are listed certain issues that
should be carefully studied and adopted by the government and local authorities of London: Changing travelling preferences: With the course of time, taste and preferences for
travellers keeps on changing. Earlier, travellers used to visit London for purpose of
entertainment and recreational activities. But, nowadays several people visit destination
for business and educational purpose along with entertainment purpose (Mahony and
Morrison, 2013). There are several corporate offices developed that invites good amount
of professionals to visit the place for meetings and conferences. Concentration on safety and security measures: Another recent issue addressed is related
to political unrest or instability in the country. However, it is an international issue i.e.,
terrorist attacks on streets of London (Stone, 2013). The terrorist activities are rising at a
greater pace in the country which ultimately reduces interest of tourist and travellers.
They are concerned about own safety and security and want to stay away from such
threatening experiences. Addressing health issues: It is recognised that various health issues has been generated
due to increasing pollution and communicable diseases. In tourism industry, many
tourists travel form one place to another so chances of spreading communicable diseases
increases. The adaptability of safety and health measures provide better satisfaction,
corporate commitment and greater confidence to all tourists visiting the destination
(Trunfio, Petruzzellis and Nigro, 2016).
 Increased environmental awareness: With the increase in pollution and global warming,
the government authorities of London are paying more attention on improving conditions.
Various rules and regulations have been framed to be abided by travellers, travel agencies
and local communities so that it can maintain attraction level of various key tourist
destinations.
1.2 Different types of current issues faced by tourist destinations
There are several notable tourist destinations present in London such as London Eye,
Buckingham Palace, Tower Bridge, Madame Tussauds, St. Paul's Cathedral and many more.

These places are of great significance as they reflect social, cultural and geographical attributes
of the country. Cox and Kings manage tourist based activities of its clients in a very effective
manner (Euromonitor highlights four key trends for UK travel and tourism sector, 2015). Many
travellers visit here to experience glory and glamour of its past and present. Tourist destinations
are generally refereed as place with certain natural, man-made or cultural attractiveness and
values of people residing there. They are interested in developing and enhancing attraction level
of their tourist destination. In the same context, the government authorities of London are
concerned in maintaining significance of the place. However, presently there are certain issues
obstructing the path of tourism industry of concerned area and these needs to be solved out with
effective measures (Boo and Bernick, 2013). Proper planning and execution of strategies are
required to cope up with these issues, which are as follows:
Political unrest
One of the prime external factors effecting tourism industry currently is political
instability. There are various political parties existing in London's economy with different
ideologies and perspectives. It is believed that government participation is essential for
formulating and executing favourable tourism policy. Political stability is referred as promising
measure for travellers to enter the premises. Political unrest often results in conflicts, blackout
and protest of parties against each other (Khare and Khare, 2010). Like for example, the political
unrest in Middle East and North Africa has reduced mutual understanding and togetherness of its
residents. It has hampered efficiency of tourism sector.
Terrorism
The day by day increasing terrorist activities like bomb-lasts, plane hijacks are threat to
the tourist industry. The travellers are concerned about safety and security measures. They are
not at the native place so an assurance is required that they will not be harmed mentally or
physically in that country. One among the most famous terrorist activity of 9/11 has eventually
reduced the overall market of tourism and has decreased their revenue earning abilities. It has
created instability and developed feeling of fear among the individuals.
Taxation policy
Another important issue generated is related to changing taxation policies of cited
destination (Maswera, Dawson and Edwards, 2008). Cox and Kings has evidenced that when
there is rise in various types of taxes flow of travellers reduces while on the other hand with fall

in taxation policy tourists actively travel from one place to another. Thus, it can be assumed that
there is a direct relationship between taxation policy and flow of tourists. The authorities are
required to review its taxation policies time to time so that they can seek attention of the
travellers.
TASK 2
Covered in PPT
TASK 3
3.1 Analyzing International Airline group business ability for responding towards changes
Tourism sector is interrelated with aviation industry as they provide effective
transportation facilities to the individuals. They are able to comfortably travel from one place to
another and make them reach desired location. Aviation industries are highly dependable upon
tourism rector as most of the passengers are tourist and travellers (Medlik, 2012). They should
avail effective services and make easier for the visitors to move from one destination to another.
Even in order to render better services to passengers, airlines recruit flight attendant who are
responsible in providing basic facilities to travellers these amenities include food and beverage,
guidelines to travel in flights, medical care in case of emergency, solve queries of individuals
and availing gadgets to entertain them.
Aviation industry is gathering higher attention as it is considered as the fastest and
comfortable mode of transport (Sigala, 2011). This is also regarded as economical and safer
method to travel far distances. It is assumed that there are various factors which directly affect
the market of International Airline Group. It is required that aviation companies should look into
this matter seriously. In order to provide better services to tourists and attain their customer
loyalty, it is essential to study and evaluate these changes. The companies are required to adopt
effective strategies which will help in maintaining constant flow of travellers and tourists in their
airline group (Standing, Tang-Taye and Boyer, 2014). Now, below are certain factors that are
responsible in making several changes in the aviation industry:
Political factors
In order to understand impact of external factors over business operations of airline group
pest analysis will be conducted. In this, political factors are primary element according to which
stability in country is very important. The policies and regulations framed by the government

authorities’ plays crucial role smooth functioning of airline enterprises (Uzama, 2009). It is
reflected that any change in implication of policies and regulations gave rise to unnecessary
issues and restrictions which generally impact on potentiality of airline business and related
industries.
Economic factors
The second element that have crucial role in undertaking activities of airline group is
economic criteria. It mainly consists of studying and evaluating exchange rates, changes in
monetary values and taxation policies. These help to decide financial and pricing policy of the
aviation companies. When there is fluctuation in taxation policies, exchange rates and fuel prices
have greater influence on working of the aviation group (Wagen and Goonetilleke, 2007). Rise in
their prices often burdens passengers which result in increase in ticket fare.
Social factors
It is revealed that social factors plays crucial role in maintaining constant flow of
customers in the concerned company. There are several changes witnessed in customer taste and
preference after an interval of time and organisations should identify these changes within
specified time to maintain customer loyalty. The airline group needs to take feedbacks from
clients so that there can design their plans and policies accordingly.
Technological factors
Technological up-gradation is a crucial feature of aviation industry which reflects that
International Airline group are able to retain their position in the market by adopting the latest
technology. It is termed that rising standardization and adaptability to innovative and technical
approaches have great and positive influence on airline industries. The legal enforcement for
adopting new and advance set of technology affects market and overall business of every
member of the international airline group (Bell and Parker, 2009). The companies of the group
consider each and every technical aspect for determining the level of impact and consequently
take actions.
3.2 Developing strategies which helps British Airways and Iberia could respond to changes
As per the above mentioned challenges, it is believed that the leading and popular airline
companies should make proper study and evaluate external factors and formulate strategies in the
same context. The development of strategic action plan provides helps to business enterprises to
conduct activities in an effective and systematic manner. The organisational goals and objectives

are attained in an effective manner and resources are utilised in a significant manner (Future
trends in the tourism industry, 2012). Below are two prime aviation companies which are
involved in studying major challenges and preparing appropriate strategies for it.
British Airways
One of the eminent airline companies is British Airways which provides comfortable
flights to the passengers. The organisation is popular to avail quality based services to its
travellers. It focuses on attaining good number of clients and is highly focused on catering
quality services for achieving greater economic and customer values. Managerial team of British
Airways takes feedbacks and suggestions from passengers to improve quality standard of its
services. They conduct proper market study to understand changing consumption patterns and
preferences of the individuals (Khare and Khare, 2010). It focuses on availing better aviation
facilities so that customer satisfaction and loyalty is attained in an effective manner. Strategic
planning and its proper execution provide better results to the organization. It increases
profitability, performance and efficiency of the company to attain desired goals.
Iberia
It is a significant aviation company of Spain which operates an international network of
services from its main bases of Madrid-Barajas Airport and Barcelona El Prat Airport. The
company is involved in transporting passengers and freight and activities like aircraft
maintenance, handling airports, IT systems and in flight catering. According to market research
and feedbacks from customers, the marketing team of Iberia came across a major issue. It is
related to tariff charges levied on moving from one place to another. Travelling through airlines
is competitively expensive than other source of transport (Medlik, 2012). Due to this fact,
passengers often shift to other sources and do not effectively utilisation aviation facilities.
However, managerial team of Iberia prepared planned strategy that focuses on providing
reasonable and affordable price to passengers. It will benefit the organisations in effective
manner as they will be able to establish strong customer base on one hand while it will increase
profitability of the company. In addition, it will also adopt fuel efficient technology so that cost
of production can be reduced and air travel fares can be made reasonable.

3.3 Justification for the strategies for International Airlines businesses that could respond to
changes
Strategies are plan or method for achieving a particular goal. It increases possibility of
acquiring better results and deriving solutions to various challenges that can take place in the
upcoming future. There should be proper execution of resources and individuals involved in
implementation of these strategies should be skilled enough.
According to above given scenario, British Airways prepared strategies to satisfy needs
of customers and gave them quality based services (Boo and Bernick, 2013). It focussed on
strengthening relationship with prime customers of the company by providing high quality
aviation services. The cited company often provides attractive offers and schemes to existing
clients so that it increases their reliability towards the organization. This ultimately results in
retaining existing clients and seeking attention of new customers to opt for services of British
Airways. In addition to it, this strategy has benefited the concerned organisation to provide
customer focussed services and facilities that company tends to treat all their customers as a
valuable asset for the company. British Airways is able to retain its position in the international
market due to strong customer base and support.
On the other hand, discussing about strategy adopted by Iberia has helped to cover good
amount of customer in the market (Maswera, Dawson and Edwards, 2008). The firm focuses on
adopting cost effective strategies to lead the market effectively. The managerial team of Iberia
analyzed that cost leadership strategy is the appropriate and advantageous tactics for the
company. It will help to maintain brand equity and corporate image of the company. This helps
them in attracting a wide range of consumers and eventually supports them by benefiting the
business unit to acquire a monopolistic market and its share. There is better and effective use of
resources which helps Iberia to generate higher profitability. The company focuses on adopting
the latest technology in the market so that process and procedures become easier and faster to
execute. Through these activities, the firm is able to acquire better control on internal and
external activities of the company.

TASK 4
4.1 Impact of issues that drive change in the travel and tourism sector
There are various issues taking place in tourism industry which help in generating
emerging need to make certain changes. The management should properly evaluate the
consequences that are addressed while any change takes place in tourism industry. According to
given scenario, the three prime companies Myla Travel, Thomas Cook and The Travel Network
Group are facing certain issues that need to be solved properly. As per the given case, the entire
set of tourism issues and trends have positive as well as negative impact on different factors of
travel and tourism industries (Wagen and Goonetilleke, 2007). Similar to this, it will result in
merging; acquiring, reconstructing or liquidating of business entity or it may also lead to overall
downscaling in the business activities. The information about the crucial impact caused by
different tourism issues in the above three cited tour operators is ascertained as follows:
Myla Travel
As per the given scenario, Myla Travel is addressing better involvement of human and
physical resources in activities like mergers and acquisitions. This principle will benefit them in
increasing performance and productivity. The cited company is driving its efforts on undertaking
merging strategy which will help to seek and integrate business activities and operations with a
leading company. It has entered into agreement with Travel Network to acquire large market
area and gain greater profit share in a significant manner (Machlouzarides, 2010). Further, it will
help cited organisation to acquire larger probability of utilising its resources. This will enhance
overall performance of the company in the international market.
The Travel Network Group
According to other scenario, Travel Network Group is equally benefited by merger
activity between cited company and Myla Travel. It is able to achieve tremendous advantages
and success to accomplish the set standards of performance in an effective manner. As Myla
travel is a popular and leading travel agency in UK. It is mostly involved in giving set of
attractive, impressive, luxurious and premium class services to their core customers. The
company is able to attain customer loyalty as it has formed strong customer base through this
merger and acquisition process. There is greater involvement of managers and employees to
actively participate in formulating the strategies. In addition, they also play crucial role in
understanding importance of proper execution of plans and policies to satisfy needs and demands

of customers (Stone, 2013). It can thus be stated that merger which took place between both
these business entities has benefitted in expand horizons of their market area.
Thomas Cook
There is another travel company along with TN group which is acquired by Myla Group
to expand its market operations. When Myla Travel acquires the business of Thomas Cook it will
importantly benefit and supports the functions of Thomas Cook to overcome its challenges and
gain high level of customer. However, by such acquisition, Myla Travel has the opportunity to
perish its business activities by addressing the overall liabilities of Thomas Cook in systematic
manner. It is ensured that cited organisation is able to make proper use of tools and techniques
(Lima and Martins, 2012). There is greater exchange of ideas and suggestions among
professionals. They will conduct market research and acquire large amount of suggestions from
existing customers. So, surely it will help to coordinate activities in the better manner.
4.2 Consequences of businesses failing to respond to market change
The merger and acquisition that took place between Myla Travel, Thomas Cook and The
Travel Network Group was failure. It hampered the performance and productivity of the
organisation. The managerial team needs to analyze the consequences of business failing to
market change which is enlisted below:
Myla Travel
Primarily, the organisation which was responsible to undertake this agreement witnessed
several issues in the company. Myla Travel failed to respond effectively to different changes and
modifications which took place in external and internal global environment of the company.
There was a great amount of disappointment in undertaking the merger strategy. The company
witnessed major loss while correlating with activities formulated by The Travel Network Group.
It was witnessed that ability to perform various activities reduced and the mechanism also
slowed down (Wagen and Goonetilleke, 2007). The management team was unable to control and
communicate different business operations. There was situation of confusion and conflict among
employees. All these things ultimately resulted in hindering performance and productivity of the
company. There was greater need to establish coordination among employees and strategies.
Thomas Cook
On the other hand, Thomas Cook also addressed certain negative consequences. It was
forced to clear its membership from the market which resulted in reducing overall market

position and decreasing share of the company. According to this situation, to adopt various
implications made in agreement for reducing impact of changes was not proved fruitful enough.
In addition to this, the company was unable to manage their internal control over different
management system (Bell and Parker, 2009). The company faced fall in its brand image and
gradually lost customer loyalty in targeted market which is recognised as essential factor for the
company.
The Travel Network Group
According to given scenario it can be considered that The Travel Network Group was in
a little favourable condition. It was analysed that it acted as good opportunity for cited business
enterprise to merge with organisation like Myla Travel. The managerial team was able to gain
immense market share, effective brand recognition and strong position within market. There
were wider market expansion opportunities for individuals. However, failure in responding to
such changes proved as negative impact for cited business enterprise. The management should
focus on developing and making effective use of resources.
CONCLUSION
From the above report it can be concluded that there is great significance of
understanding the roles and influence of contemporary issues that are related to travel and
tourism industry. It is witnessed that tourism is widely growing sector that provides larger profits
and better employment opportunities to the economy. It enables tourism industries in acquiring
better level of information and then develops favourable strategies for company. These plans and
policies helped to focus on innovating and adopting new measures to attract large amount of
tourists. Further, it revealed importance of adopting changes taking place in tourism industry so
that effective decisions can be made. The report provides information about the issues and
consequences that are faced by the organisations engaged in travel and tourism sector.

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