Comprehensive Report on Travel and Tourism Management - Semester 1

This report provides a comprehensive overview of the travel and tourism industry, beginning with its historical development, tracing its evolution from the establishment of early travel agencies to the modern era. It then delves into the structure of the industry, breaking it down into key components such as transportation, accommodation, tour operations, government bodies, attractions, and travel agencies. The report examines the functions of government, government-sponsored bodies, and international agencies, highlighting their roles in regulating, promoting, and supporting the tourism sector. It further analyzes the influence of local and national economic policies on the industry's success, including the impact of economic factors, and assesses the implications of political changes on tourism in various countries. The report also explores factors affecting tourism demand and how supply has adapted to meet these demands. Finally, it evaluates the positive and negative impacts of tourism on economic, environmental, and social-cultural aspects, proposing strategies to mitigate any negative consequences. This report is a valuable resource for understanding the multifaceted nature of the travel and tourism industry.

TRAVEL AND TOURISM
MANAGEMENT

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1...............................................................................................................................................1
1.1 Historical development of travel and tourism sector.............................................................1
1.2 Structure of travel and tourism industry................................................................................2
Task 2...............................................................................................................................................3
2.1 Function of government, government-sponsored bodies and international agencies in travel
and tourism..................................................................................................................................3
2.2 Influence of local and national economic policy on the success of the travel and tourism
sector............................................................................................................................................5
2.3 Implication of political changes on travel and tourism sector in different countries............5
Task 3...............................................................................................................................................7
3.1 Factors affecting the tourism demand....................................................................................7
3.2 How supply has changed to meet the effects of demand in UK............................................8
Task 4...............................................................................................................................................9
4.1 Evaluation of main positive and negative impacts of tourism...............................................9
4.2 Strategies to minimize the negative impacts of tourism......................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

INTRODUCTION
Travel and tourism industry is one of the fastest-growing industries in the world. Tourism
comprises of all activities that are undertaken by the person travelling from one place to another
or for staying at the place different from its usual living environment for not more than a year for
the purpose of leisure, business or any other purpose. The following report depicts about the
history and structure of the travel and tourism sector. In this report influence of national and
international government on the travel and tourism industry has also been discussed. In these
effects of demand and supply on the travel and tourism industry is also going to be interpreted.
At last impact of tourism on economic, environmental and social culture has also been
interpreted.
TASK 1
1.1 Historical development of travel and tourism sector
The first travel agency was founded in 1758 by Richard Cox who became the travel agent
of the British royal Armed Forces. He opened an agency name as Cox & Kings. Almost after
100 years in year 1841, Thomas Cook opened the first leisure travel agency. This agency was
designed in order to assist the Britons to improve their lives by seeing the world and at the same
time participating in the temperance movement (Baker, Bloom and Davis, 2013). In year 1845,
Thomas ran his first commercial tour package, complete with the cost effective railway tickets
and a printed guide in order to help the travels.
The popularity of rail travel in tourism industry continued and at the same time auto
mobile presented additional milestones in the development of the tourism (Bergsten, 2005). In
year 1886 Karl Benz's wife took a long journey in order to kick of interest in auto travel and
helped to publicize his car company which is now known became the Mercedes Benz.
In year 1950, the development of Club Mediterannee was seen and the similar club
holiday destination, which has become the precursor of today's all inclusive resorts. In year 1952,
the first commercial flights from London to South Africa and the first light of the jet age which
indicates the start up of new modern tourism industry.
Thus, the decade that followed was considered to be one of the beneficial time periods for
the development of all travel and tourism industry. At that time more and more tourism industry
was established which in turn increases the level of competition. Increased competition forces
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the customers to move towards the mass tourism by introducing new destination and various
modes of holidaying (Bitner and Booms, 2002).
The growth of tourism industry was affected at the time of World War 1, World War 2
and at the time of Great Depression. At the starting of present century, global events has badly
pushed the international travel industry downward due the attack on the World trade centre in
New York on 11 September, 2001, sensed threat of the future terrorist attack, war in Iraq, West
Nile Virus and health scares including SARS, BSE.
After sometime these industry began to grow due to the massive technological shift due
to increase internet use and modification of travel services. By the year 2000, online travel
booking develop at the exponentially rate. And by the 2014, Expedia global leader had expanded
to include brands like Hotels.com, trivago, Hotwire Group and Expedia CruiseShip Centers
which in turn assist the tourism industry to earn revenue of over $4.7 million.
1.2 Structure of travel and tourism industry
The tourism industry is very large and can be broken into many small sectors. These
sectors are sum up in the form of the structure. The structure of travel and tourism industry of
London includes the following things:
Transportation: - Transportation is necessary to tourist, they need transportation facility
when they are going to airports or coming from there or taking scenic tours. Without the proper
availability of transport facility an individual will not be able to travel properly from one place to
another (Evans, Stonehouse and Campbell, 2012). Types of transport includes in London are: -
airlines, coach operators, railways, taxis, cruise liners and car rental companies.
Accommodation: - It is made up by the organisation in order to provide accommodation
and sometimes food, beverage and entertainment to the visitors who travel from one place to
another. Accommodation provided to the visitors creates a healthy image in the mind of the
visitors. Types of accommodation which are provided to the visitor are: - Hotels, bed &
breakfast, farm stays, apartments, resorts and camping grounds in Lomdon.
Tour operations and wholesalers: - These businesses organise tours and events which are
generally the element of holiday package. Wholesalers such as Sunlover holiday buys travel
products in bulk and then package those into travel deals. Wholesalers can further be segmented
into two groups i.e. inbound and outbound providers. Tour operators usually work at the local
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level. They provide specific attraction and regions to the visitors, such as a day trip to the local
wine region.
Government: - Government cannot be classed under the tourism industry, but it has a
major influence on tourism industry of London(Goeldner and Ritchie, 2006). Especially due to
its huge role in planning tourism, research, regulation, advising and promotion.
Attraction: - Attractions are often the lure for tourist to travel to a destination.
Accommodation, transport and restaurants are considered as the primary service for the travels
but it cannot be the motivational factor for travel. Attraction can either packaged into a tour or it
can be sold out as standalone product. Some attraction points are commercial while some are
owned by the government, some of them are free and others are not. Attraction can ve divided
into segments like Natural (i.e. Parks & Zoos), Cultural (galleries, theatres), Historical (museums
and monuments) and many more.
Meeting and events: - MICE involve the planning, organizing and hosting of short-term
events. In order to attract these events many major cities have designed convention centres. This
competitive sector contributes beneficially to the industry due to its size, cost and ancillary
services involved in travelling events.
Travel agent: - Travel agents and agencies act as a retail shop for the consumers in
London and at the same time is considered as the public face of the industry. Agents are simply
the intermediary that sells out the tourism services that are offered by the other businesses
organisation (Gooroochurn and Sugiyarto, 2005). These agencies normally target the general
public, niche markets and corporate markets. They provide wide range of services like travel
advice, visa information, sale of tickets and insurance needs.
TASK 2
2.1 Function of government, government-sponsored bodies and international agencies in travel
and tourism
One of the major functions of the government is to remain in the power. Government do
not give up its responsibilities unless forced to do so. Every government make efforts to increase
its legitimacy in the eyes of the people. Government identify itself with the ancient traditions,
with fear of a common enemy and with the hope for the future. Government recognize the
principle through which public must be served and protected. Government also supervise the
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resolution of conflict interest, enforcement of laws and rights, provision of postal services, the
working of political process, monitoring of national and international trade and income and
many more.
Government of UK take care to foster widespread ideological loyalty to the nation
through the patriotic ceremonies, civic education, and propaganda. Government employ
intelligence gathering organization for national defence and employ the armed forces (Hall,
Timothy and Duval, 2012). Government undertake the supervisory and regulatory functions in
order to carry out the national goals by developing bureaucracies to handle each and every
complex function that affects the travel and tourism sector.
Government of UK is the sponsored body’s works according to the guidelines provided
by the government in order to increase the economic growth of travel and tourism sector. These
government bodies see that no problem is faced by the tourist when they are visiting to different
places away from their home for the purpose of entertainment or holiday.
The role of international agencies is to promote, sustain and universally access in the
field of travel and tourism sector. These agencies works as one of the drivers for the economic
growth, environmental sustainability and inclusive development of the travel and tourism sector.
These agencies support the travel and tourism sector in advancing the knowledge about these
sectors and introduce tourist about the various tourism policies followed in worldwide. These
agencies provide various information to the tourist about the place where they want to visit and
at the same time also inform them about the various procedure and rules of travel and tourism
imposed by the government for the benefit of the visitors.
International agencies also encourage the implementation of the Global Code of Ethics
for Tourism in UK to maximize the contribution of tourism to socio-economic development and
at the same time minimizing its negative impacts (Law, Qi and Buhalis, 2010). These agencies
promote instrument of tourism in order to achieve the United Nations Millennium Development
Goals (MDGs) which works with an aim to reduce the poverty and fostering sustainable
development.
These agencies generate market knowledge, sustainable tourism policies and instruments,
promote competitive, works to make tourism an effective tool for the development of the
countries around the world and foster tourism education and training.
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2.2 Influence of local and national economic policy on the success of the travel and tourism
sector
Economic policy is the term used by the government in order to describe the actions of
the government that are intended to influence the economy of a city, state and nation. Some of
the examples of the government influence are government expenditures, setting tax rates, setting
interest rates. Functions of this policy are to revolve around the budgets of the government.
Which means that government needs to decide the way in which funds need to be invested so
that it benefits the economy as a whole.
This policy protects the travel and tourism industries from the international economic and
financial crises. Economic policy aid the tourist to know about the conduct of stimulus policies
that could be faced by them against the financial crises. This policy looks at the current available
methodological resources in order to measure the direct and indirect impact of the travel and
tourism on the economy (Middleton and et.al., 2009) This policy influence the action of the
government that take place in economic field against the travel and tourism industry.
These economic policies are influenced by the international institutions as well as
political belief and the consequent policy of parties. Economic policies are the part of success in
tourism industry because it influences the development of local and national economic growth
which has the great impact on the development of the region's economy, lifestyle and amenities.
Local and national economic policies imposed by the government have lead the travel
and tourism sector to the higher growth rate. Travel and tourism industries have contributed to
world GDP which has been increasing continuously for the consecutive 5 years in 2014.
Imposition of local and national economic policy has not only contributed towards the success of
the travel and tourism sector it has also contributed towards the growth of the world.
2.3 Implication of political changes on travel and tourism sector in different countries
Political situation affects the travel and tourism industry. Because no tourist wants to go
to the place where there is political instability irrespective of the fact that there is large number
of potential destination for booming tourism. Tourist wants to move on to the place that offer a
safety and security to their life. The country with political instability cannot be able to provide
the safety.
One of the beneficial examples is of Burma. Burma is the country which is under the
monopoly of the military Junta General than Shwe. This is one of the developing countries in the
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Asia. The country good geographical and social features with temperate climate and offers
variety of destinations. But the tension between the world’s biggest country like UK and USA
and the military government has resulted into the improper development of the country in travel
and tourism sector.
Tourist also does not want to visit to the place where there is the high chance of terrorist
attack. Therefore, the tourist wants to move on to the place where there is no fair of life and they
are available to get the safe and the secure environment. Continuous change in the government
policy also affects the growth of the country in lieu of travel and tourism sector (Moutinho,
2011). Thus, in order to develop the travel and tourism sector government should see that they
continuous changes need not to be paid in the policies especially that affect the travel and
tourism industry. Because now-days travel and tourism industry is contributing the high rate of
percentage towards the GDP of the company.
Moreover, on the other hand it can also be concluded that sometimes change in the
political factors can prove to be good for international tourism of the country. If the political
changes that are taking place are in favour of the tourist than in that case country will be able to
increase its GDP in lieu of travel and tourism sector. For example: - At the time of election
period in UK the value of its currency declines as a result of economic breakdown. Therefore, it
became the chance for the tourist to visit to the UK by paying cheaper price than any other time.
As the changes are implemented in an specific form.
Thus, it could be said that political instability affects the travel and tourism sector both in
positive and negative manner. The government of the country should continuously make efforts
that they do not change their policies constantly (Page, 2014). And at the same time they should
also see that the policy imposed/changed proves be beneficial for the tourist. This in turn will aid
the company to increase its GDP in favour of travel and tourism industry.
Thus, from the following report it find out that the function undertaken by the
government & international agencies and economic policy introduced by the government affects
the tourism industry.
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TASK 3
3.1 Factors affecting the tourism demand
There is variety of factors present that affects the demand of the tourist in selecting the
destination or a country. Thus, some of the factors that affect the demand of tourism are as
follows:-
Revenue: - Income generated/ earned by the individual person affects its decision in lieu
of travel and tourism of the TUI Group. Income generated by an individual depends upon the
condition of inflation and deflation. A tourist with limited capital prefers to visit to the place that
offers cheaper tour package of the TUI Group.
Price: - Value of the country’s currency also affects the demand of the tourism. Tourist
prefers to move on the country which has lower value of the currency as compared to those
countries that have high currency value.
Socio-culture relation between the various countries: - Socio-culture relation between the
various cultures also affects the demand of the TUI Group. Tourist prefers to move on the place
for holiday where they find a safe and secure culture relationship between the countries (Park
and Yoon, 2009). For example- tourist will not prefer to move on to the place like Burma where
there is tension between the military and the country like USA.
Government regulation and policies: - Imposition of the government policy also affects
the demand of the tourism. Tourist will prefer to move on to the place where government
policies and regulations are in favour of the tourist. Tourist will not prefer to visit the countries
where government policies and regulations are constantly changing.
Political relation between the countries: - Political relationship between the countries
also affects the demand of the tourism of the TUI Group. Tourist prefers to visit on to the place
where there is political instability. Because a country with political instability will only be able to
provide safe and secure visit to the tourist.
Economic relation between the countries: - A healthy economic relationship between the
countries also affects the demand of the tourism.
Restriction on the use of foreign currency: - Restriction on the use of the salt currency
affects the tourism demand. An individual only prefer to visit to the place where there is no
restriction on the exchange of the foreign currency.
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Change in climate and weather: - A tourist wants to prefer to the place where there is
moderate climate. Thus, it can be said that climate and weather condition of the country can also
affects the demand of the tourism industry.
Technological: - Demand of the tourism increases in the country which prefer to use
latest technology in transportation, and in providing various services. Thus, the growth of travel
and tourism industry increases in the country which prefers to use the technology.
Interest rate fluctuation: - Continuous fluctuation in the interest rate of the of the country
also affects the demand of the tourism (Pike, 2005). Tourist prefers to visit the place that is
providing high interest rate . Constant fluctuation in the interest rate decreases the demand of the
tourism in the particular country and affect the operations of the TUI Group.
Work pattern: - Working pattern of the individual country also affects the demand of the
tourism. Many individual moves on from one place to another in order to start up its new
business. Thus, in lieu of working pattern of the country highly affects the mind of the tourist.
An individual want to establish it business only in the country which provides healthy working
environment.
Workforce: - Workforce of the TUI Groups also affects the demand of the tourism. A
country with poor workforce will always have the lower contribution in travel and tourism
industry.
Globalisation: - Globalisation largely affects the demand of the tourism in travel and
tourism industry in relation to the TUI Group(Sharpley, 2006). Globalisation aid the individual
to start or operate its business at international scale. This in turn increases the demand of the
tourism.
3.2 How supply has changed to meet the effects of demand in UK
Change in supply affects the demand and equilibrium price which is offered by the TUI
group. Supply has changed to meet the effects of the demand in UK in several ways:-
Accommodation:-Accommodation facility provided to the tourist affects the demand and
supply of the tourist of the TUI Group. Tourist normally prefers to visit at the place which
provides the better accommodation facility. A healthy accommodation facility increases the
demand of the tourist which in turn increases the supply.
Tour operates: - Behaviour of the TUI Group also affects the demand and supply of
tourism in UK. If behaviour of the tour operates is not good than it can cause the decline in the
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demand of the tourism. Thus, the country should make a continuous efforts to see that tour
operates behave properly with the tourist.
Quality and services: - Quality of services provided by the country also affects the
demand and supply of tourism in lieu of travel and tourism industry. Poor quality of services will
result in the reduction in supply and demand of the tourism.
Types of products technology: - TUI groups normally prefers to move on the place which
provides various services by using latest technology (Song and Li, 2008). This feature is
normally undertaken by the tourist who moves from one place to another in order to start up its
new business or operates its existing business unit.
Thus, from the following analyses it is found out the various political, economical, socio
culture, technological, work pattern and many more factors affects the demand and supply of
tourism in lieu of travel and tourism industry (Tribe, 2005). Some factors prove to be beneficial
for the tourism while availability of some factors badly affects the demand of tourism.
TASK 4
4.1 Evaluation of main positive and negative impacts of tourism
The destination chosen for tour purpose is Dubai (United Arab Emirates). It is one of the
most popular places visited by the tourists every year. The life in Dubai is very luxurious. There
are both negative and positive impacts of tourism in Dubai. Presenting here brief description
about the impacts of tourism on Dubai, UAE.
ENVIRONMENT
Positive Impacts: The positive impacts enjoyed by the visitors as well as local people.
The extent and type of impact will depend on the management of the tourism scheme. Tourism
can be good for environment if the resources and natural areas are used in such a manner so that
they can be preserved for future as well. The Historical monuments and cultural sites are also
required to be preserved. Tourism can be used to educate people about the importance of
environment. E co – tourism is also famous in Dubai and the like cities.
Negative Impacts: The negative impact on environment arises when t6he number of
tourists exceeds the expected limit. Since the weather of Dubai is too hot, due to which many
tourists avoid visiting Dubai, therefore tourism management should develop more comforts and
facilities to tourists for protecting them from heat and other environmental disasters (Xiang and
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Gretzel, 2010). The population of Dubai is not very large but due to seasonal factors tourism
affects at a huge level. It also has negative impact on wildlife, water overuse and waste disposal.
ECONOMY
Positive Impacts : The main reason for tourism being increasing in Dubai is the economy
of that area. It has many options for earning revenue by engaging the people in tourism industry,
because it becomes a source of earning foreign income. It is a source of direct and indirect
income for the country that has multiplier effect on its economy. Tourism contributes to the gross
national product of the country. It helps in generating foreign exchange and government
revenues.
Negative Impacts: The money generated from tourism is negatively utilised by people
directly or indirectly. The leakage of money is the biggest drawback of tourism. Tourism leads to
inflation for the local public of the country. People start depending on tourism for their living.
SOCIAL
Positive Impacts: Tourism affects the society both directly and indirectly. It helps in
promoting connection between different cultures. The tradition of Dubai is also unique from
other countries. People come here to visit the cultural heritage and other traditional places for
gaining experience of different culture.
Negative Impacts: The negative impacts of tourism on the culture of Dubai is that the host
communities losses their amenity (Marsh, 2013). Too much crowd also affects the society of this
country negatively. Criminal offences increases, loss of authenticity and other issues arises due
to tourism.
4.2 Strategies to minimize the negative impacts of tourism
Environment: The government of Dubai can contribute their efforts in better tourism by
providing the tourists facilities of all types like the air conditioning facility at historical and other
visiting places. The tourism industry can save the sensitive areas and habitat by direct financial
contributions. It can also contribute to increase government revenues by collecting money by
way of user fees, income taxes, taxes on sales or rental of recreation equipment and licence fees
etc. It can contribute by improving environment management and planning (Zhang, Song and
Huang, 2009). In Dubai programs for raising environment awareness should be introduced.
Other regulatory measures also needed to be considered for better tourism management.
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