Travel and Tourism Sector Report: Company Analysis and Factors

This report provides a comprehensive overview of the travel and tourism sector, examining its historical evolution from pre-1945 to the present day, highlighting key developments such as the rise of package tours and the impact of technological advancements. It delves into the core element...Read More

TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
1.2...........................................................................................................................................4
TASK 2............................................................................................................................................5
2.1 ..........................................................................................................................................5
2.2 ..........................................................................................................................................5
2.3...........................................................................................................................................5
TASK 3............................................................................................................................................6
3.1...........................................................................................................................................6
3.2...........................................................................................................................................7
TASK 4............................................................................................................................................8
4.1...........................................................................................................................................8
4.2 ..........................................................................................................................................8
CONCLUSION................................................................................................................................9

INTRODUCTION
Following report is prepared on the travel and tourism. This following study will assist in
understanding various historical developments that has taken place in this sector and also better
understanding of the structure of tourism will be done through this report. All the functions that
government and the international bodies perform in tourism will be discussed further
(Blanke,and Chiesa,2011). TUI is a worlds famous tourism company and this report will help the
learner to understand how this company is affected by the political changes, policies etc. In order
to understand the impacts of different factors pastel analysis will be done for the tourism sector
so that effects of each can be comprehended in detail.
TASK 1
1.1
Travelling sector is a largest industry type and it has done various developments from the
past to what it is now. Therefore the history of tourism can be studied in detail by dividing it into
different time frame. The time line is give below which shows the changes that took place over a
period of time in the tourism sector:
Before 1945
Approximately till the end of 16th time period where factory farm living was fixed. Very few
movements were done from the local area to rural communities. Even after the industrial
revolution which brought few changes in city-like and manufacturing plant evolution, only
people who were rich were enjoying the leisure time in travelling and the labour class continue to
work only. Also after industrialization the holidays were reduced therefore this also reduced the
rest time for people (Dickinson and Lumsdon,2010). During this era there no importance was
given to the developments of historical places which was important in order to increase the total
culture of travelling. Before 1950s the tourism industry was considered to be very conflicting.
Every one including transportation, hotels, causal agency, travelling broker used to work
separately. During the period of world war only the privileged group used to travel from the
whole society. After this the first package or tour was introduced in 1841.
1945-1979
Margin growth took place in the tourism sector in the year 1945, which can be construct on the
basis of the changes that took place in it. In UK changes were made in the sector from turning

the activities of tourism into more integrated from being an individual business. Hotels apart
from giving only accommodation services also started giving other facilities to customers. The
airline companies started giving customer insurance facilities also. After 1950 many new
changes were made in this sector like increase in free time availability, paid holiday increased,
packages were improved by the tour operators and all these changes made this time different
from post 1950s time period. It was realised that through investing in this sector business can be
raised as people started travelling from one place to another with an increase in the awareness
among the travellers.
1980 to till date
By this time the travelling companies started giving the passengers full travel services which
includes holiday arrangements, services related to health and transport facilities
(Evans,Stonehouse and Campbell,2012). During the 1990 many new companies were launched
in the tourism particularly in Europe. Aviation industries were developed to a good extent
although non-scheduled traffic also increased to a great extent. It is expected that this industry
will do a great contribution in the development of economy. Also international universal society
is maintained peacefully through the process of tourism. This sector is also contributing in
developing education who are ready to take business ion this sector. This is the stage where
maximum improvements were realised by the cited sector due to economic growth. People
started taking interest in various locations for the sake of knowledge, entertainment or with the
purpose of research and development. The facilities which were provided by different touring
companies were raised in order to give tough competition to other agencies.
1.2
Tourism consist of various main elements which are as follows.
1.Tourist attraction- Attraction can be natural or it can also be created manually. It is not tough
to understand that people get attracted to beautiful places like Blackpool beach, or beautiful lakes
as these places are experiencing a good number of tourist visit every year. Apart from this
attractions are also created artificially so that it can also be included in the tourists places.
2.Transport- This factor is one of the most important element in the tourism sector. Tourist
require different form of transport in order to reach their destinations. Railways has been
modified excessively to provide the customers with best services although doing journey by train
is less prefer by people in UK (Frey and George,2010). Also air transport is very famous which

provide the passengers strict timetables of schedule flights. It is mostly favoured by the business
class. Apart from these flights charter flight facilities are also provided to the customers which
can be hired for non schedule journeys. This medium of transport is famous among most of the
travel agencies.
3.Tour operators- They are the bodies which provide customers with different travelling
packages. In this the contractors provide the customer with travelling and accommodating
facilities. Different schemes are given by the different travelling agencies. These are broadly four
types of tour operators which provide the customer with mass market.
4.Travel agents- The main job of travelling agents is to convince people to select a particular
travelling agency to plan their holiday. They act as link between the agents and the tourists.
Single travelling agency has their different agents across the country. They charge the touring
company their share in the profit when any customer is provided by them to the company.
5.Tourism development- The traveller commission provide the customer with all the information
required by him prior to select the place to visit. They can simply get all the information by
writhing the question in the tourist information system which provides the customer with all the
relevant answers (Guttentag,2015).
TASK 2
2.1
Covered in PPT
2.2
Covered in PPT
2.3
Any alteration brings a positive or negative effect with it in the company. Likewise,
political change may also either increase or decrease the total tourism. The effect largely deepens
upon the nature of change that is brought by the political parties. In order to understand the
impact in more details examples of different countries can be taken.
In Egypt during the time of political disturbance people faced various problems. The main
difficulty was that the ATM machines were blank. This effected the tourism to a great extent as
due to this problem people discouraged travelling as they were more focused towards this
inconvenience. Tourism experienced great loss during this period although it did not last for

much time but its effects were long lasting. Not only people of Egypt discouraged tourism but
also people who were earlier planning to visit this plan switch their option to some other place
due to the political unrest which was taking place there. Another example can be taken of
Zimbabwe. So much loss of life property and resources was experienced during the time of
tsunamis (Mairand Jago,2010). This has a long lasting effect on the minds of tourists as now that
place is less favoured to be visited. People are scared and do not like reserving a beach vacation
on Sumatra or Java. The major problems with these factors are that they are not under the control
of tour operators. They can just respond to the change by accepting its effects and no alternative
can be chosen to convince people for this.
All the above examples shows how the tourism industry gets seriously affected by the
changes that place in the political sectors. These changes are tough to be managed ad their
adverse can not be minimised much as no one has control over these. Not only in other but
change in tourists domestic state also has direct impact on the tourism industries.
In order to succeed in this sector it is necessary that the various agencies go hand in hand with
the political changes. To continue the various operations it is necessary that the governmental
changes are in favour of so that they can continue their operations effectively. As movement of
people take place across the boundaries it is necessary that less restrictions are imposed by the
governing authority.
TASK 3
3.1
There are various elements in the tourism sector that affect directly or indirectly to this
industry. In order to understand each it is necessary for TUI to go through each factors in details.
These factors are :
1. Income- The income of the customer directly affects his demand for tourism. At the time
of rescission in the economy the total demand of tourism declines although this factor is
not permanent in nature. Income of the customer keeps on fluctuating and similarly his
demand for the same fluctuates (Mammadov,2012).
2. Taste of customer- Ever customer has different taste. It is not necessary that everyone
wish to travel during their holidays. In that case even is the economy is experiencing a

good improvement tourism sector will remain affected. In this case people stay at their
places and feel more comfortable than going out from their comfortable zone.
3. Complementary goods- In the tourism sector the cost of additive factors also has its
influence on the total demand by the costumer. For e.g. Increase in the price of air tickets
will directly change the demand for tourism as it will fall in this case and vice versa.
4. Quality- Service quality by the host destination has its direct influence on its demand by
the customer. It is necessary that the customer is satisfied with the amnesties supported
with existence of other attractive elements as this has direct impact on demand for
tourism by the customers.
3.2
For each concern procedure this is important to make equilibrium between the request
and supplying. The balance here is in context of the product and services. Supply is being
changing in the business industry so that the smooth working could be overseen for which
partners of TUI Groups in addition reacted emphatically in light of the fact that request was
expanding because of the adjustment in the supply (Moutinho,2011). Various calculates are there
in which alterations are done such so that demand can be fulfilled and management can be kept
in the given industry.
Accommodation organizations were directed by this tourism Group with the goal that
extension looked for could get administered for which higher number of settlement were created
so more number of people could get the settlement organizations at time. To keep up the idea of
the organizations companies extended its staff people with the objective that they could give
better and convincing services to its prime customers. Parties and their solicitations could be met
by the association. To manage the consistency value were extended in the zenith time and
articulation for diminish in the assessing in the off season was kept with the goal that demand of
the customers could get supervised in like way. Advancement was another viewpoint that was
locked in upon by TUI Group with a specific end goal to deal with the request of the customers
(Narayan,2010). To deal with the request of the customers in the apex season there were
distinctive creative types of progress that were associated by the social occasions like for basic
booking and diminishing the broking changes TUI has developed the online site with the help of
which people could without quite a bit of an extend book the organizations and make portions by
basically tapping on a couple of associations. Portion course of action of this organization is

direct and secured by the firewalls which ensure that the portions ought to be conceivable
adequately and safely (Navickasand Malakauskaite,2015).
TASK 4
4.1
Tourism industry is a sector which is fastest processing industry among the different
business options which has different favourable and a few negative perspectives. Positive
financial benefits include high pay, high activity, and authorities involvement to basic, higher
revenue of taxation assessment, increment in the charge concern, monetary promotion, and flow
of cash outside. Non favourable impacts will lead to the increase in price of average cost.
As per the environment viewpoints, favourable variables which are joined with the ecological
perspectives are characteristic asset preservation, arrangement and power, change of state of the
environment, renewal of whole and maintaining the state of earth. Destructive components that
are associated with the condition are decimation of greenery of the host nations, debasement of
the scene, affect on the earth because of impurity, and rare resources get effected accordingly
(Peeters and Dubois,2010).
Taking the social components in consideration there are various constructive angles
appended with cultural variables they are social estimations of the nation will be moderated,
chronicled reference point of the nation will likewise stay ensured in light of the fact that travel
and tourism segment like to keep the recorded landmarks protected and secure so it could give
the data to the guests in regards to the historical backdrop of the nation. Certain negative
viewpoints joined with the social components are loss of the residential celebrations and effect of
the nearby culture that is being followed in the nation (Perch,Sesartic and Stucki 2010). These
are sure elements and the negative and positive angles that are appended with these elements
which will encourage the cited company to develop and could likewise influence the advance of
the organization. It is fundamental that company ought to take a shot at the negative perspectives
and ought to attempt to oversee them so that nation and culture ought not get hurt and business
could run easily and adequately
4.2
For each business it winds up plainly important to build up the systems which could help
it to develop in the market. As talked about already that it is important that TUI Group ought to

chip away at the negative angles so it could work easily in the market, it is fundamental that it
ought to build up the methodologies with the impact of which it could limit the negative effects
and augment the positive effects (Roxas and Chadee,2013).
To deal with the pessimistic monetary effects TUI Group should define the methodology of
dealing with the nearby benchmarks of life at the administrative level in order to deal with the
way of life, it is additionally important to incorporate the neighbourhood individuals in the
financial arrangement so they could get profited in like manner. To lessen the reliance TUI
Group could differentiate the business as per the necessity of market. It is a standout amongst the
best procedures that could be embraced by the gatherings in order to limit the negative
perspectives (Scott,Peeters and Gössling,2010).
Unsupportive impacts associated with the concern status can be minimised by implementing the
strategies that could assist in natural supportability instead of influencing it. This is essential that
company makes a commitment towrds proper use of resorses and should ensure that no harm
will be made to the surroundings (Tsiotsou and Ratten2010).
Adverse cultural impacts can be minimised by serving the broad group different
programes which adds to their welfare. Giving training offices and additionally improved
structure will assist the broad group to improvise. (Wu and Shi,2011).
CONCLUSION
The given above report concluded that tourism sector is contributed much in the total
economy of the country. Although this sector is affected by various factors like political and
other social issues. TUI in order to expand its business need to respond the demand in the market
so that it can increase its scale. For this it can use the various strategies given above to minimise
the risk.