Contemporary Issues in Travel and Tourism

This report provides a comprehensive analysis of contemporary issues in the travel and tourism industry, focusing on the challenges and opportunities faced by businesses. It examines factors driving change, current trends, and the impact of these issues on organizations like Thompson tour operator. The report also explores strategies for responding to market changes, including marketing mix, pricing, and product development. It further discusses the consequences of failing to adapt to these changes, emphasizing the importance of innovation and customer satisfaction. The study uses Greenwich as a case study to illustrate the practical implications of these issues and trends.

CONTEMPORARY
ISSUES IN TRAVEL
AND TOURISM

TABLE OF CONTENTS
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
1.1 Analyzing issues which drives change..................................................................................4
1.2 Analyzing various current issues ..........................................................................................5
Task 2 ..............................................................................................................................................7
2.1 Current trends which influence in the travel and tourism sector...........................................7
2.2 Analyzing current trend through suitable techniques............................................................8
Task 3...............................................................................................................................................9
3.1 Different ways through which travel and tourism can respond to change.............................9
3.2 Development of the strategies for travel and tourism business ..........................................10
3.3 Justification provided for the strategies for travel and tourism ..........................................11
Task 4.............................................................................................................................................12
4.1 Impacts of issues and trends ...............................................................................................12
4.2 Consequences of business on failing to respond to change in market.................................13
Conclusion.....................................................................................................................................15
references.......................................................................................................................................16
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INDEX OF TABLES
Table 1: SWOT Analysis of Thomson tour operator.......................................................................9
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INTRODUCTION
Travel and tourism industry is the most flourishing industry in today's scenario because
of the changing living standard of people in the world. Customers are now days more willing to
travel to different destinations and thus, tourism is providing the best tourism facilities to meet
their expectations (Bernick and Boo, 2013). Similarly, this industry is also focused in bringing
out innovative and unique services so that potential customer can be attracted towards this
business. However, this sector is facing numerous contemporary issues these days due to rise in
terrorism and uncertainty in the environmental factors. This report deeply describes the
contemporary issues in the travel and tourism industry by focusing a light on some of the
organizations of this industry. Furthermore, the reader of this report can get the understanding
about the current issues and trends in the travel and tourism sector (Blanke and Chiesa, 2013).
Moreover, this report also cover the aspect of response of this industry towards change and the
impact of that change on the travel and tourism sector.
TASK 1
1.1 Analyzing issues which drives change
As it is already known that travel and tourism industry is a fragmented industry where
numerous units are performing their role in an individual manner. The absence of collective
action impact the growth of the economy of visitor and disgrace the importance of the tourism
spot (Briscoe and Wilson, 2003). Further, in a whole world this industry is a fastest growing and
in some of the countries this is the prime leader which contribute the major part in the GDP for
the growth of economy. Further, this industry is facing several issues due to which is driving
changes in tourism industry. In UK this industry also contributes the largest part for the growth
of the economy however it has also been faced by several issues which is bringing change in that
industry:
1. Need for Increased Security: Need for security is the most important contemporary
issue which drives the changes in the travel industry. While taking the tourist to
Greenwich, travel company has to ensure the complete security (Cohen, 2004). The
terrorism is increasing day-by-day and along with that theft is also increasing which
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imposes a challenge for going on a visit. Thus, due to which travel firm has to increase
the security level so that visitors does not face any problems.
2. Advancement in Technology: The technology is getting advanced everyday and thus,
Greenwich also has to bring technological aspect in order to avoid unfortunate
circumstances (Gössling, 2013). For this purpose, in every tourist attraction places CCTV
surveillance should be increased, the security check should be done at every places. This
will create awareness among the visitors. This may lead to incur of heavy cost but it
would result a more secured trip.
3. Rise and Fall of Inflation: Due to the fluctuating economic condition of UK, tourism
company in Greenwich is facing many issues. Because of recession and other financial
crisis deployment of staff has to be done by the travel company. Further, people are less
willing to travel to Greenwich as their purchasing power has gone down (Hall, 2008).
4. Increased Environmental Awareness: Greenwich has aimed to protect the environment
because of the increasing global warming. For this purpose, tourism companies have to
educate their customers about the same and thus they have to contribute for the
environmental protection (Hays, Page and Buhalis, 2013).
These were some of the aspect due to which changes are getting introduced in the travel
and tourism industry. The companies have to face many difficulties for incorporating these
changes in the company. On the contrary, this would result as a betterment for the industry.
1.2 Analyzing various current issues
Greenwich which is a district which is situated in London, England. This place is rich in
culture and heritage. Due to the awareness of cultural tourism, people are abundantly traveling to
Greenwich (Jayawardena, 2001). Thus, the importance of this place has increased since five
years. However, the increase in footfalls has also lead to the destruction of this place and many
unfortunate circumstances have started happening. Thus, the higher authority of Greenwich have
become highly aware and they want to reduce the impact of these issues on the Greenwich.
Further, the current issues faced by the Greenwich are as follows: Environmental Issues: There is a increase of visitor to this place and due to which high
rate of environmental degradation is happening. Further, the city has to face several
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environmental issues such as pollution, resource depletion, endangerment of flaura and
fauna, climatic change, etc. This has led to severe issue related to environment. Security Issue: Increase in number of visitor has also encouraged the terrorism and theft.
Even after having highest security, the terrorism is increasing (Maitland and Ritchie,
2009). Due to this reason, people are discouraged to travel to this city and also these
attacks have reduced the grace of Greenwich.
 Economic Condition: There is downfall in the economy of UK and this has lead to the
cut down of jobs of people in Greenwich. The employment rate has got down in this
sector (Mills and Law, 2013). Further, the maintenance expenses cannot be bear by the
local authorities which led to the deterioration of the destination place.
These are some of the issues which are currently faced by the Greenwich and the analysis
can be done as follows:
Positive Impact
If there is a environmental issue than Greenwich will be highly aware about its
protection. This will help in improving the environmental condition, there will be a movement of
green tourism so that visitors can be made educated. This will prove to be a welfare of the
society and thus citizens of the Greenwich will also get benefited due to this aspect. Further, the
city can be made environmentally aware city in the world. Further, the awareness about the
terrorism and theft will help out the authority of Greenwich to increase the security level so that
chances of getting attacked can be reduced (Moriarty, Jones and Rowley, 2008). This will attract
more tourist and thus economic condition can be improved due to this.
Negative Impact
At the time of fluctuating economy, the Greenwich will get impact in an adverse manner.
Further, the firm has to terminate the employment contract with their employees. When the
people will visit Greenwich than in hotels there will be not much staff to assist them in a proper
manner. Thus, this will place a negative impact on the minds of visitor and the reduction of the
grace of this place will get start. Further, the environmental degradation will contribute more in
the global warming and due to which Greenwich may become the worst place to visit in coming
years (Pesonen, 2013).
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TASK 2
2.1 Current trends which influence in the travel and tourism sector
Different type of trends are used which have altered tourism sector in a differential way.
Visitors are also influenced due to emerging trends in both inbound and outbound tourism sector.
Further, there are different set of areas in which tourism industry do not have proper focus.
Moreover, it has focused on shifting towards different sectors in tourism like dark, creative
sustainable, sport, etc. In this modern world, organizations related to travel and tourism aims at
niche marketing and this is helpful to understand customers needs and requirement (So and
Morrsion, 2004). In this context, organization make use of this marketing in order to develop
strong customer base through specific tourism and it includes tourism like sport, adventure,
creative, etc. Moreover, it has some of the latest trends of different tourism which have been
discussed below: Green Tourism: With the changing and raising trends of protecting environment and with
the raise of carbon footprints, mainly Eco-tourism is destination by Greenwich. In this
context, one of the main aim this type of destination is to provide visitors with proper
information and this is very much helpful in contributing to the society. And countries
economy. With this respect, Greenwich has wide variety of flora and fauna and wildlife
which enables to grab attract of travellers however, emerging trends of green tourism
should be influenced by the changes within this sector. Form this it can be stated that
Green tourism is concerted with the places which are rich in natural resources and flora
and fauna. (Theobald, 2005). In addition to this, after 1990s the growth of Eco-tourism
has reached up to 34%. Grey Tourism: There is an increasing trends of grey tourism in UK and thus, Greenwich
is also encouraging this type of tourism because the old people are willing to visit the
heritage places. This is because, tourism sector is encouraging grey tourism in the
Greenwich so that more and more old citizens can be attracted (Tsiotsou and Ratten,
2010). There is a growth rate of 89% from last four years.
 Sports Tourism: This is one of the emerging tourism around the world. As per the survey,
it has been found that number of traveller are youth and they prefer to have Sports
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tourism. By encouraging this type of tourism in exotic places will help in developing
strong customer base and in developing positive perception among customers mind.
All these tourism have brought several changes in the operations of travel and tourism
sector. They have to introduce more facilities in order to encourage the Grey tourism, they have
to educate the visitors about the environmental protection for incorporating green tourism. For
encouraging sports tourism and several other kind of tourism they have to employ more people
which will enhance the employment rate in the UK.
2.2 Analyzing current trend through suitable techniques
So as to evaluate the trend of travel and tourism, research has been conducted which
would help in developing strategies in travel and tourism according. In accordance with the case,
survey research design has been used and this will help the to identify the current trends. In this
context, Greenwich is been selected to be the tourist destination in which culture and heritage
will be analyzed within the city (Urry and Larsen, 2011). With the help of this study, research
evaluates the study cultural tourism within Greenwich and also enables to identify the areas in
which they have become popular.
Data is collected with the help of secondary and primary method. In this context, primary
data is collected from the tourists and travel operators of Greenwich city and secondary data is
collected from the journals and magazines of tourism, online websites and also form the research
of previous studies on travel and tourism sector. Inductive approach is chosen to uncover the
detail description about current trends of travel and tourism sector. Qualitative research
technique has been applied to examine the data through which appropriate information will be
evaluated (Euromonitor international, 2014).
Conducting this research through data collection, it can be stated that large number of
international and national tourist are attracted in Greenwich cultural tourism. This is because of
the inheritance of large number of heritage and other cultural monuments. Establishments of
museums and Royal Borough of Greenwich which attract many people who are keen towards the
enhancement of knowledge of the various culture. When people get to know about a place more,
then they develop positive impact over the mind of travelers. This becomes helpful to attract
huge number of customer base and people around the world visit to enjoy heritage, museums,
cultural museums, Royal Borough of Greenwich, village of Greenwich which depicts the rural
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culture, etc. From this study, it can be stated that tourism related to culture is very much helpful
and in developing a strong customers base in travel and tourism and also attract people around
the world (Contemporary issues in hospitality and tourism, 2013). Travel and tour operator
companies are also promoting the Greenwich by their packages which specially concerned with
cultural tourism.
TASK 3
3.1 Different ways through which travel and tourism can respond to change
In order to assess the purpose and response of tourism industry, there are different
organizations which provide similar services among which Thompson have been selected.
Thompson is one of the major tour operator which aims at providing their customers with high
quality services and that also at affordable price (Bernick and Boo, 2013). The best method for
examining the internal and external environment and in order to do this effectively, there are
different set of tools which can be used and this includes SWOT, PESTLE, Porters five force,
etc. BY adopting this tools cited firm will be able to identify the areas in which they need
improvement. Through SWOT internal environment can be analysed and with the help of
PESTLE external factor which affects the firm negatively can be determined.
Table 1: SWOT Analysis of Thomson tour operator
Strength Opportunities
 Thompson's reputation and its brand
name.
 It provides quality and expertise in tour
packages.
 Low cost fare.
 Poor services provided to old citizens
by this company .
 Old-Fashioned brochure is distributed
by the company for the promotional
purpose (Blanke and Chiesa, 2013).
Weakness Threats
 New and innovative services are
emerging in this sector.
 The firm can expand its activities in
global concern so that profitability get
 There is strong competitors like
Thomas cook.
 Government regulations are changing
due to which company is facing
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increased. difficulty.
PEST Analysis
Political factors: Under political factors,
government regulation and policies negatively
affect the business operation at Thompson in
an adverse manner. Taxation policies on
tourism have a major impact on the plans and
policies framed by Thompson (Cohen, 2004).
Political instability not only affects that
particular state but also this impacts the travel
agency.
Economic factors: Exchange rates play a
important role in international market of
Thompson. Inflation and deflation rate or
recession in one country can impact the
economic sector of other country through
travel and tourism industry. Irregular fluctuates
in foreign exchange rates will drastically
impact the business of Thompson.
Cultural and factors: Changes within
customers needs and requirements takes place
frequently and it is important that firm make
changes accordingly. So Thompson offer
customized tour packages and online booking
service to meet customers demand.
Technological factors: Further, changes in
technology also get change with the change in
time and it is important for the firm to make
change according. It is very important for
Thompson to update themselves with the
changing technologies in travel and tourism
sector so that better services can be provided to
customers.
3.2 Development of the strategies for travel and tourism business
There are some strategies through which Thompson's business can responds towards the
change and facilitate them to enhance their business in better way. Travel and tourism industry of
UK should use suitable tools and tactics for marketing. Further, it is required to adopt novel
services as well as products (Gössling, 2013). With the help of this, business performance of
Thompson can be improved which will further assist in attracting the customers.
Marketing mix and strategies of marketing can be used to overcome the weakness and
enhance the business of travel and tourism. This can be done by offering the customized holiday
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packages which are based on adventures, relaxation, heritage, corporate travel, sports, cultural
holiday’s etc. Tourists will be facilitated by these as they will be enabled to select options as per
their desire. Government should also decrease the taxes and duties on this sector so that prices
are to be decreased. Multimedia advertising, public relations, sales promotion and many other
promotional tools are required to be employed by the organization so that it can attract the
customers from different places. Thompson Tourism should also focus more towards the leisure
and entertainment activities. It can also pay attention to hosting of concerts and events. Further,
there can be provision of novel services in night life of country and accompanied by hosting of
shows and programs. These help in generation of the interest and needs of tourists (Jayawardena,
2001).
The another pricing strategy of penetration pricing can also be used by the cited company
enhance the business of travel and tourism. Greenwich company can capture the market shares
by providing the services like accommodation, transportation, breakfast & dinner and entry
tickets to key tourist attraction at a nominal price. As relatively low price will attract more
customers and which results in there will be increase in the sale of services and profits of
mentioned company.
3.3 Justification provided for the strategies for travel and tourism
Strategies which are chosen to implement in Greenwich for its travel and tourism
business helps the sector to make changes and improve their services for tourists. There are
various places in Greenwich which form attractive tourist destinations. Also, there is presence of
perfect evenings, palaces, museums etc. Hence, if suitable marketing strategies are applied the
customers can be attracted in large numbers. Offering of customized holiday packages and
services to tourist will satisfy their needs, demands and wants of people according to their
preferences and choices. If Customized products and services are provided by the tours and
travel agencies, then it will lead to earning more revenues. Further, it will facilitate satisfaction
of the customers as their needs and wants will be appropriately fulfilled (Mills and Law, 2013).
Marketing programs and effective use of promotional techniques will also aware the
people from different parts of the world. Decreasing in the taxes and duties charged by the
government will have significant influence on the price conscious customers. Thus, with the help
of these strategies, travel and tourism business will be able to enhance their services. This will
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increase their profitability in market. In Greenwich city, the business of travel and tourism can be
increased successfully it it brings changes as per the market conditions as well as requirements of
customers (Pesonen, 2013). Modification can be made in these strategies at regular times. This
will help in managing the business. Also, it will help in providing best products and services to
the tourist of this area. As, the benefit of marketing mix strategy is that it will allow the
mentioned company to effectively promote their services in the selected place. This results in
increase in the sales and profit of the company.
The use of the penetration pricing strategy will help the mentioned company in increasing
their customer base as well as the revenue. As the low price will attract more and more
customers which result in increase in the sales of the company services. Adopting of the
penetration pricing strategy will stop the competitors to enter in the market. As this strategy will
create quick turnover of the Greenwich company.
TASK 4
4.1 Impacts of issues and trends
There are different strategies such as market development, product development and
marketing mix strategies. The organisation and destination of Thompson will be affected in the
following ways: Product and service development: Thompson adopt product development strategies
which will have significant positive impact on the organization as well as the destination.
It is because, wide range of services can be offered to the customers. This can help them
choose the appropriate services (Theobald, 2005). However, there can be certain negative
consequences of it as well. this is because a number of options confuse the customers.
This may lead to the decrease in satisfaction level among them.
 Market development: Market development strategies can be adopted by Thompson by
targeting the totally new market area. This will help in development of positive image of
the company all-round the globe. By carrying out operation of the activities in the new
market, the company will be able to target new customers. This will lead to increase in
the profit market of Thompson (Urry and Larsen, 2011). Further with the help of this, the
new destinations could be targeted. Also, expansion of their business activities can be
done which will lead to provision of satisfaction to the visitors. However, market
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