Travel & Tourism: Analyzing Issues, Trends, and Industry Response

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This report delves into the contemporary issues and trends impacting the travel and tourism sector, with a focus on the challenges faced by companies like Titan Travel and Whitbread Plc. It examines issues such as human resource constraints, rising fuel costs, taxation, and security threats, analyzing their effects on the industry. The report also evaluates current trends like domestic tourism, inbound tourism, medical tourism, and adventure tourism, highlighting the techniques used to analyze these trends. Furthermore, it explores the responses taken by Whitbread Plc to market changes, including political, economic, social, and technological factors, and discusses the importance of strategic adaptations for business growth. The analysis includes recommendations for Whitbread businesses, such as Premier Inn & Restaurants and Costa, to effectively respond to these changes and mitigate the impacts of current trends on the travel and tourism industry.
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CONTEMPORARY ISSUES IN TRAVEL & TOURISM
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Table of Contents
LO1 Understand the latest problems occur in the travel and tourism sector.................................3
1.1 Examine present issues occur in the travel and tourism sector............................................3
1.2 Analyze various latest problems using proper methods and resources................................3
LO2 Understand present trends occur in the travel and tourism sector.........................................4
2.1 Evaluate latest trends affects Travel and Tourism sector......................................................4
2.2 Appropriate techniques and resources for analyzing the current trends................................6
LO3 Understanding of the responses to change taken by travel and tourism sector.....................7
Introduction..................................................................................................................................7
3.1 Analysis of the responses taken by Whitbread Plc to market changes..................................7
3.2 Developing the strategies for Whitbread businesses such as Premier Inn & Restaurants, and
Costa in order to respond to changes...........................................................................................8
3.3 Justification of the strategies for Whitbread businesses Premier Inn & Restaurants, and
Costa to respond to the changes...................................................................................................8
Recommendation.........................................................................................................................9
Conclusion...................................................................................................................................9
LO4 Discussion about the impacts of current trends on the travel and tourism industry..............10
Introduction................................................................................................................................10
4.1 Analyzing the impacts of issues and trends that effects in change in the travel and tourism
company.....................................................................................................................................10
4.2 Discussion about the outcomes of businesses failing to respond to current trends...........11
Recommendation.......................................................................................................................11
Conclusion.................................................................................................................................11
Reference List................................................................................................................................13
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LO1 Understand the latest problems occur in the travel and tourism sector
1.1 Examine present issues occur in the travel and tourism sector
Human resource: Skill human resource play a vital role in Titan Travel, human resource is the
one who choose the right candidate for the company all over the world. For company to stay in
this competitive world for a longer period, skill and trained employee is needed at each
department of an organization. Problems occurred at every department in a company, at top level
management sector experience lack of experience employee who can able take critical decision
for company. At Low level, management has to experience lack of skill candidate. Trained
manpower is needed to stay in a market for any company.
Rising cost of fuel: Titan travel is huge rely on fuel costs. The hike in costs of fuel like gasoline
affects the entire sector. According to the idea of Anwar (2016, p.56), the high hike in gasoline
many customers have to control on their spending limit and also reduce the vacation length
which ultimately decrease the profit of Titan travel. Titan travel experiences these challenges
and to deal with it, Titan travel start giving attractive offers to customers. The hike in costs of
fuel decreases the number of customer in a travel and tourism sector. Due to which many
companies have to bear losses.
Taxation: Government imposed a high on Travel and Tourism sector. The high taxes on an
industry decrease the development and it is hard to increase the territory for an industry. Various
type of taxes are imposed on Titan travel, Starting from tour operator, airline and hotels these are
the sector where titan travel has to give huge taxes (Hartmann 2014, p.166). Due to the high
taxes on various sectors, titan travel has to increase the price on customer’s package to get profit
from it. Different region has different taxation which needs to pay; otherwise it is hard it is hard
to visit.
1.2 Analyze various latest problems using proper methods and resources
Titan travel has to deals with lots of issue and trends which is changing day by day. One of the
important factors which affect Titan travel is safety and security threats which are always an
issue of country. Terrorism and natural hazard needs to handle sincerely. As in travel and
tourism sector, there is no medical facility is given to customer and no any insurance is provided
to the customer while travelling. Therefore, to handle with such problem while traveling
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customer has to search before visit any destination. Customer has to be careful and gather all the
information which is needed about the place and possibly may occur during traveling. According
to the idea of Gong et al. (2015, p.199), many hotel and lodge owner doing illegal activities
which is possibly creates trouble for customer. Customer has to collect information about the
hotel where they have to stay and check the authenticity of the hotels before visit there through
internet. Customer also needs to check is there any CCTV camera available in hotels or not so
that in worst scenario customer can take legal action on hotels.
Every year many important decisions take place in technology, Titan travel give their best to use
latest technology in their daily uses of work. Titan travel use internet and social media platform
to advertise their package so that it is easy to engage large number of customer in a short
interval. Booking feature and reservation have become more reliable in attracting customer
attention. Drastic hike in costs of gasoline makes traveling package high. Customer has to set
their boundary on estimation which eventually decreases the profit of the Titan travel. Titan
travel also makes strategy to stabilize its customer by giving them special offer to the visitors so
that customer can enjoy their destination without any hesitation.
LO2 Understand present trends occur in the travel and tourism sector
2.1 Evaluate latest trends affects Travel and Tourism sector
Domestic tourism: Over the past decade, population of UK has shown various rate of rise from
2000 to 2010 in percentage 7.2. Due to this there is a rise of domestic travelers and mostly it
involves the visiting of beach, sightseeing by car. According to the idea of Tussyadiah and
Pesonen (2016, p.1022), the hike of domestic traveler is a major influenced by the political and
economical factors which result 1% hike in the cost of visiting UK. Tourism earning decreases
by 1.5% in UK while taxation rate as per the recent policy, UK ranks 134th out of 140 countries.
Inbound tourism: The tourism in which traveler of different country staying and visiting in
another country for a short period of time. According to the idea of Baker (2014, p.9), a huge
number about 33.4 million visitors travel to different country gives hike of marketing earning of
22.8 million dollar which is a average of 646 dollar per person.
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Figure 1: Inbound tourism in UK
(Source: Hartmann, 2014, p.166)
From the above figure, it can be seen that inbound tourism in UK has increased over the year in
UK. This figure highlights that in UK the current trend of inbound tourism affects the travel and
tourism industry of UK.
Medical tourism: Research says that medical tourism has numerous source of earning for the
hospitals as well as for the country. Medical traveler spent a huge amount of money in shopping.
Hotels and transport in the country which is about 54 million dollar income in 2011. There is
Total 19 hospital in UK which is mainly in demand by the medical tourists. However, lots of
people from UK, leave the country in seeking of better medical care to abroad.
Adventure tourism: Adventure tourism is most common among traveler which is also known
as place for adventure people. People like to visit different places for the purpose of new
experiment and entertainment. Adventure tourism mostly includes rock climbing, skydiving and
scuba diving.
Figure 2: Adventure tourism in UK
(Source: Sotiriadis, 2015, p.121)
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POSTER
2.2 Appropriate techniques and resources for analyzing the current trends
In order to analyze the current trends in the
market of tourism, the tour operator Titan
Travel in UK have used the most effective
technique in an effective way. These
techniques can help to analyze the current
trends of the tourism market and provide
some good packages to the tourist based on
the new trends (Ormond and Sulianti, 2017,
p.94). The most appropriate technique that
helps in analyzing the current trend that have
in travel and tourism of UK is market
Through market research, it has been found that the
tourist place is changing according to environmental
changes and preference of the tourist. The visitor
also uses this technique for analyzing the current
trends of market and the destinations. The choice of
the tourist place is differentiated from one’s choice
to another for selecting the destination of tour
(Aragon-Correa et al. 2015, p.494).
There are an increasing numbers of young people
who prefer to adventures among UK. Therefore,
the company provides the adventurous places for
attracting the visitors and expands their business
throughout UK and Ireland as well as all over
world. As a result it has been analyzed that the
rate of adventurous trip has increased
tremendously in UK (Anwar, 2016, p.56). The
information of visiting the place is collected from
the qualitative and quantitative methods using the
primary and secondary sources. These techniques
can help to analyze the current trends of the
tourism market and provide some good packages
to the tourist based on the new trends.
Reference List
Anwar, S.A., 2016. Emerging issues in tourism system
in relation to the people and their environment. Indian
Journal of Commerce and Management Studies, 7(2),
p.56.
Ormond, M. and Sulianti, D., 2017. More than
medical tourism: lessons from Indonesia and Malaysia
on South–South intra-regional medical travel. Current
Issues in Tourism, 20(1), pp.94-110.
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-
Ruiz, J., 2015. Sustainability issues and hospitality
and tourism firms’ strategies: Analytical review and
future directions. International Journal of
Contemporary Hospitality Management, 27(3),
pp.498-522.
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LO3 Understanding of the responses to change taken by travel and tourism
sector
Executive Summary
Travel and tourism is the most profitable business industry in UK as a large number of traveler
visit to UK. In this article here are some view-points on the factors which can affect the tourism
industry. There is also a brief discussion about how the organizations implement strategies to
overcome those factors.
Introduction
This article aimed to help the reader to understand the factors that could affect the business of
travel and tourism for Whitbread Plc. It is also help to understand the strategies that are taken by
the said company to respond to the changes. This study helps to analyze those strategies with
respect to the practical scenario and importance of those strategies for the company growth.
3.1 Analysis of the responses taken by Whitbread Plc to market changes
In order to point out the factor by analyzing the travel and tourism business management of
Whitbread Plc could take the PEST analysis (Mostafanezhad et al. 2016, p.7). Whitbread Plc can
find some better ways to respond to such changes in future. Here are the following factors;
Political factor: Political stability of UK in analyzed by this finding. Due to the ever increasing
environmental pollution, UK government controls the activities of travel and tourism businesses
and conducts several campaigns to bring the awareness of environment. The government of UK
raises the Vat on travel tickets and implements more tax on hotel and restaurant and fuel that
make a huge impact on travel and tourism organizations such as Whitbread Plc (Giddy and
Webb, 2016, p.351). In order to attract the tourist Whitbread Plc has to decrease the price of
tourism package and has to launch some brand new packages at low cost.
Economical factor: Unusual changes of economic stability have a direct impact to the
profitability of Whitbread Plc. An increasing amount of taxes on fuel and hotels caused a high
pricing on travel packages (Yuan et al. 2015, p.417). In order to counter this situation, Whitbread
Plc should keep the package rates at low for some period of time. It will affect the profitability of
the company but could able to keep the interest of tourists towards them.
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Social factor: Tourists are now a day very much health conscious. They tried to avoid a long
distance tour. It causes a huge damage to the long distance trip packages of Whitbread Plc
(Aragon-Correa et al. 2015, p.498). They can overcome this problem by providing some
attractive offer on business trip at lower price.
Technological factor: Whitbread Plc has to provide sufficient support to the tourists by
improving their communication network and recruiting more customer care executives who can
serve the customer 24*7 as per their needs (Pearce and Wu, 2015, p.120).
3.2 Developing the strategies for Whitbread businesses such as Premier Inn & Restaurants,
and Costa in order to respond to changes
The management of Whitbread Plc can make some effective strategies which could help them to
overcome the factors that are responsible for the damage of travel and tourism business of the
company. In order to overcome the situation, management of Whitbread Plc has to take some
strategies to attract more number of tourists. They could take some strategies like;
Offering special package: Whitbread could offer some special packages to honeymoon travelers,
travelers who travel for business purposes, for regular group of tourists to attract them (Buhalis
and Foerste, 2015, p.151). They could also include some special discounts on package for the
senior citizens. It also attracts the visitor of sports towards them by introducing special discount
to them who travels throughout the country to watch many sports including sports journalists.
Providing advance technology: Up-gradation of technology is necessary to make the hotel
bookings and ticket bookings easier for the customer. Introduction of new technology to the
payment gateway to make payment method easier can able to attract more customers
(Mostafanezhad et al. 2016, p.48).
Providing a steady package charge: According to Ormond and Sulianti (2017, p.94), the
management of Whitbread Plc have to take initiative to maintain a stable package charges by
controlling the fluctuation of cash flow.
Take action to the environmental changes: Whitbread Plc along with the government of UK
can make a plan to reduce the environmental pollution. This can save the natural ecology of the
environment and can attract more number of nature lovers (Buhalis and Foerste, 2015, p.151).
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3.3 Justification of the strategies for Whitbread businesses Premier Inn & Restaurants, and
Costa to respond to the changes
According to Giddy and Webb (2016, p.351), due to the high price of hotel charges and tour
packages Whitbread Plc earns a low profit compared to previous years. Extra Vats and taxes on
hotel, restaurant and tourism sector there is a huge loss in tourism business. Here are the
justifications of the strategies which could help to overcome the factors that affecting the
business of Whitbread Plc;
Special package: Whitbread Plc has set a trend of travel and tourism business in UK. They
introduced some special packages to the tourists to attract more number of travelers. The
company offers more discount on hotel bookings during off season to attract more tourists to
maintain the profitability (Yuan et al. 2015, p.417).
Fare stability: High class foreign travelers can afford the high priced ticket. An increasing sale
of these high priced ticket results a huge gain in profitability for Whitbread Plc. The company
provides high class facilities on hotels to the foreign customers with a huge amount of charges
which is affordable to those foreign clients (Pearce and Wu, 2015, p.120).
The company also maintains the package rates to keep the regular clients, hence maximize the
profit.
Technology advancement: Whitbread Plc is very much focused to the enhancement of the
technology which they are using in order to give much comfort to their customer. Up-gradation
of technology helps to meet the level of customer satisfaction which is important to attract more
number of travelers (Aragon-Correa et al. 2015, p.498). They can communicate better with the
help of internet to provide facilities to the tourist.
Recommendation
It is recommended to the marketing team of Whitbread Plc to conduct a survey among the large
amount of clients from all classes to classify their needs. According to their demands the
marketing team has to sort out the demands of the client and draw an attention to the
management to respond accordingly.
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Conclusion
From the above study it can be concluded that the travel and tourism organizations like
Whitbread Plc had inclined to make some situation oriented strategies to overcome the
troublesome period to maintain the profitability.
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LO4 Discussion about the impacts of current trends on the travel and tourism
industry
Executive Summary
This report aims in identifying how change in travel and tourism sector affects the industry. In
this study, impacts of issues and trends that drive change in the travel and tourism sector have
been discussed along with likely consequences of the business to becoming failure in the market
of UK.
Introduction
In recent days the new trends like destination trends or Medicaid trends have effects on the
market of tourism. Therefore many other industries have integrated with the tourism and travel
sectors. The Trailfinders Ltd. tourism operator has faced many changes based on current trends
and getting improved.
4.1 Analyzing the impacts of issues and trends that effects in change in the travel and
tourism company
Impact on infrastructure: The Trailfinder Ltd extends their foundation through its mergers,
liquidity, acquisition as well as formation. This tour operator has owned about 32 travel centers
throughout UK and Ireland. Those TravelCenters helps to make several acquisitions that has an
impact on the growth of Trailfinders Ltd. Company. Through adoption of some technological
changes can provide more expansion for the Limited Company in comparison to the past account
(Ormond and Sulianti, 2017, p.94).
Impact on the business: This Company has expanded the growth according to the changes of
the new trends through proper acquisition and low budget travel cost to the visitors based on
their efforts. The rapidly extension of the Trailfinders will help to increase its share and status
in the travel market. In order to building the strong goodwill in business, the customer
satisfaction is needed fast and foremost (Yuan et al. 2015, p.417). This concept will help to
compete with the other travel industries existing in the market. The discount offers on the
packages helps to get attracted the visitors on their preferable tourist destinations. This policy
helps to the tourist to choose the Trailfinder Ltd for their tour based on their efforts.
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Impact on the levels of Employment: Trailfinder Company has owned about 32 TravelCenters
in all over UK as well as Ireland. Therefore, the Company has employed about 1000 staff for
supporting and guiding the visitors and provides the good services. This Company has offered
the comfortable accommodation products through their travel center which require the good
workflow (Aragon-Correa et al. 2015, p.494). This Company also provides a magazine of the
different tourist destination where they can provide. This will help the visitors to get a view or
ideas about the places and can make a decision to choose the place where they can efforts. Thus,
the company demands for more recruitment and need more employees to provide the proper
guidelines and good services to the visitors.
4.2 Discussion about the outcomes of businesses failing to respond to current trends
In order to respond of the Trailfinder according to the current trends in proper time, is very
important for the company. If the company getting failed to judge or monitor the new trends or
policy then it loses the trust and loyalty of the visitors and stakeholders (Anwar, 2016, p.56). In the
case of fall a business there are several sequel of lacking the responses based on the market
changes or current trends. The first and the foremost outcome of the business is reduction in
profit. The reduction in profitability is based on when the company is unable to response
according to the current trends. It also effects on the company for expanding their growth and the
demand of the company will be decreased.
The falling of the business in travel market will lead to bad worse impacts on customers and it is
an advantage for other competitive travel industry. This also has effects on the employees that
the workflow will decrease as resignation of the many employees or company are compelled to
terminate the employees (Aragon-Correa et al. 2015, p.494). When the company is unable to
match the new trend it will have worse impact on the product and services. The customers of the
company will start to lose their trust on the company and find the substitutes to fulfill their
demands which are advantage for other travel company or tour operator.
Recommendation
Through analyzing the impacts of current trends it has recommended that the travel company
should changes their business policy regarding to the new changes of the travel market. It will
help to attract the visitor to choose the company for their tour that they can feel comfortable.
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Conclusion
In this study it has been discussed the impacts of the current trends on the travel industry and the
consequences of business falling according to new changes of trends in travel market. Here it has
been stated that the current trends has impacts on company’s infrastructure, business growth as
well as its employment. There are several consequences of the business falling also have been
discussed.
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Reference List
Anwar, S.A., 2016. Emerging issues in tourism system in relation to the people and their
environment. Indian Journal of Commerce and Management Studies, 7(2), p.56.
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015. Sustainability issues and
hospitality and tourism firms’ strategies: Analytical review and future directions. International
Journal of Contemporary Hospitality Management, 27(3), pp.498-522.
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.
Buhalis, D. and Foerste, M., 2015. SoCoMo marketing for travel and tourism: Empowering co-
creation of value. Journal of Destination Marketing & Management, 4(3), pp.151-161.
Elliot, S. and Papadopoulos, N., 2016. Of products and tourism destinations: An integrative,
cross-national study of place image. Journal of Business Research, 69(3), pp.1157-1165.
Giddy, J.K. and Webb, N.L., 2016. The influence of the environment on motivations to
participate in adventure tourism: The case of the Tsitsikamma. South African Geographical
Journal, 98(2), pp.351-366.
Gong, J.H., Xie, L.S., Peng, J.M. and Guan, X.H., 2015. Customer responses to integrity issues
for travel services in China: A content analysis based on online complaints. International
Journal of Contemporary Hospitality Management, 27(2), pp.199-213.
Hartmann, R., 2014. Dark tourism, thanatourism, and dissonance in heritage tourism
management: new directions in contemporary tourism research. Journal of Heritage
Tourism, 9(2), pp.166-182.
Mariani, M.M., Buhalis, D., Longhi, C. and Vitouladiti, O., 2014. Managing change in tourism
destinations: Key issues and current trends. Journal of Destination Marketing &
Management, 2(4), pp.269-272.
Mostafanezhad, M., Norum, R., Shelton, E.J. and Thompson-Carr, A. eds., 2016. Political
ecology of tourism: community, power and the environment. Routledge.
Ormond, M. and Sulianti, D., 2017. More than medical tourism: lessons from Indonesia and
Malaysia on South–South intra-regional medical travel. Current Issues in Tourism, 20(1), pp.94-
110.
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Pearce, P.L. and Wu, M.Y., 2015. Soft infrastructure at tourism sites: identifying key issues for
Asian tourism from case studies. Tourism Recreation Research, 40(1), pp.120-132.
Sotiriadis, M.D., 2015. Culinary tourism assets and events: suggesting a strategic planning
tool. International Journal of Contemporary Hospitality Management, 27(6), pp.1214-1232.
Tussyadiah, I.P. and Pesonen, J., 2016. Impacts of peer-to-peer accommodation use on travel
patterns. Journal of Travel Research, 55(8), pp.1022-1040.
Yuan, Y., Gretzel, U. and Tseng, Y.H., 2015. Revealing the nature of contemporary tourism
research: Extracting common subject areas through bibliographic coupling. International Journal
of Tourism Research, 17(5), pp.417-431.
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