Analysis of Contemporary Issues in Travel & Tourism Report, HND

This report provides a comprehensive analysis of contemporary issues in the travel and tourism sector. It begins by examining the driving forces behind change, including technological advancements, increased environmental awareness, and heightened security concerns. The report then delves into specific issues affecting the hospitality industry, such as currency fluctuations, inflation, and rising fuel costs, and analyzes their impact on the global market. Current trends, including adventure tourism, sports tourism, and health tourism, are explored, along with emerging trends like eco-tourism and grey tourism. The report evaluates how the tourism sector responds to these changes, suggesting strategies for adapting to market shifts and mitigating negative impacts. The analysis covers the consequences of failing to adapt to market changes, emphasizing the importance of proactive strategies to ensure the industry's sustainability and growth. The report concludes by summarizing the key findings and emphasizing the need for continuous adaptation in the face of evolving challenges.

Contemporary Issues in Travel
& Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues driving changes in travel and tourism sector.........................................................1
1.2 Analysing different issues affecting hospitality industry.................................................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travel and tourism.................................................3
2.2 Current trends in respective sector of tourism. ................................................................5
TASK 3............................................................................................................................................8
3.1 Response of tourism sector towards change.....................................................................8
3.2 Strategies to respond towards the changes in travel and tourism.....................................9
Covered in PPT.......................................................................................................................9
3.3 Strategies for develops response of selected travel and tourism response towards the
changes...................................................................................................................................9
TASK 4............................................................................................................................................9
4.1 Impact of different issues and changing trends to the driving change in travel and tourism.
................................................................................................................................................9
4.2 Consequences to the business failure to act towards market change in tourism sector. 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
TASK 1
1.1 Issues driving changes in travel and tourism sector.
The tourism industry is growing with faster rate in the marketplace. This particular sector
is gone through various technological advancement and development over the period of time.
Along with this, development of tourism sector arises some of the issue in the external and
internal working environment which are restricting the future growth of the industry. So, in order
to react responsibly towards these driving change issues in the travel and tourism the company
have to evaluate respective problem on different grounds. This should be followed by providing
training to the new joined employee in the organisation in order to deal with these issues
effectively. Some of the problem or issues faced by the travel business are discussed below.
Technological advancement: This is one of the most important aspect which is driving
change in the travel and tourism sector. This particular advancement leads to the changes in
various dimension of the tourism industry. With helps of technology the travel and tourism
businesses is expanded to a different level of growth. Like for an example the hospitality
business and the aviation company is able to provide their services to large customer base with
help of new technologies like online reservation and conformation of bookings. This provides
better accessibility to the services of the companies by customers dealing in the travel and
tourism sector. The customer can review about the particular destination and also find out
various tourism agency who are serving services for the specific location. So, the technology
advance leads to an new changes in the respective sector and largely contributed in growth of
company along with this technological advancement also leads to many illegal practices and
unfair process with the customers in travel and tourism sector. Like for example the companies
are claiming the better services ion online portal of firm but actually they are providing low
quality services at higher charges. This is the major disadvantage of technology in the tourism
sector due to which the growth of sector is restricting in marketplace.
Increased environmental awareness: This is another aspects which are driving new
changes in the practices of the travel and tourism industry. The companies delivering services to
this respective industry are aware about the natural conditions and the need to protect the natural
environment of earth. With growth of the travel and tourism sector the pollution and waste is
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also increasing which is affecting and the natural conditions of specific destination to large
extent. While the company is changing practices in order to foster green tourism in the
marketplace. This will contribute in better environment and protection of important natural
resources. The waste in the tourist destination should be dumped properly so that this does not
effect natural conditions of the location. The travel and tourism industry is also spreading
awareness and the knowledge in the customers and various involving businesses in order to
protect and maintain safety of natural environment. If the companies are not aware about the
need to protect natural environment this will influence the whole earth and the people also which
will become a major issue for the travel and tourism industry.
Increased security: Security is one of the most important aspects for an individual and
their family members. While involved in any of the tourism activities individual first access the
security level of the services given by country government and involving businesses in tourism
industry. This needs a huge investment at national and international level to provide security in
the country and provided a good environment for the tourists. After the case of 9/11 accident the
countries gone through various delivering changes in the international and national policies to
maintain the security level in then tourism sector. The America restrict entry of the Muslims in
territory boundaries and individual have to follow frisking procedures to enter in European
country after respective industry. So, the increased security is the another issue which is driving
new changes in tourism sector in order to provide better satisfactory environment to tourists and
visitors.
1.2 Analysing different issues affecting hospitality industry.
Fluctuation in rate of currency is main issue that affects performance of travel and
tourism industry of different nations. This plays an vital role for visitors in choosing tourism
place. This sector is facing huge loss to devaluation in value of money. Along with that, rising
inflation rate is another important aspect of economic surrounding. Due to unexpected and
unpredictable conditions of market inflation rate is getting higher. Therefore, these are two major
issues that affects development of travel and tourism industry. Along with that, there is rise in
prices of fuel which is another factor that is creating hurdles in growth. It is required to give
priority to such problems so that better strategies could be made in this regard. Cost of
transportation services is increasing because of these elements. Companies involved in airline
services has increased their prices and it is affecting visitors attraction as most of them cannot
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afford such high rates. Therefore, these are some barriers due to which growth of travel and
tourism sector is getting affected in negative manner.
b-2- Analysing different factors
As per various experts these issues are required to be analysed in proper manner so that
its impact on globalised market can be assessed. There are several negative impacts that a
country can face due to these problems. Cases of fluctuation in currency and inflation rate are
two main problems that are arising on rapid basis. It is affecting income level of people and they
are not earning properly. Due to this, spending power of citizens is reducing and they are not
able to bear heavy expenses of tours and travels. According to some experts and professionals,
people might face problem of inflation because of so many risks are present in business
environment. This is amongst main reason that could create unbalanced conditions. Another
reason behind this is rise in rate of fuels due to which both air and road transportation had
become expensive. Along with that, there is scarcity of these non-renewable resources which is
another cause for increased prices.
Therefore, it is required to determine better alternatives so that prices could be controlled.
There is need for making effective use of resources so that wastage could be avoided. This will
assist in handling issue of scarcity of fuel. There is tension in gulf countries due to which prices
will get affected in negative way. So, it is very important to deal with such issues by making
appropriate strategies in this manner. It is essential at global level that all the countries must take
adequate initiatives to handle such issues in order to facilitate growth of hospitality industry.
TASK 2
2.1 Current trends influencing change in travel and tourism.
Marketing trends are flexible in nature and it will modify according to the demand of
customers. Company will analyse latest trends which help in implemented alteration in the place.
In these days, people visit for new locations for certain specific motives:
 Adventures tourism- It is one of the popular tourism destination in this time. The main
purpose of the most of the visitors are come for UK to fun at adventures. This is a kind of
adventures which enhance level of satisfaction of person and any other team. It is
necessary for cited firm is to arrange trip for guest in these locations.
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 Sports tourism- This is also one of the famous place for tourist where they were always
come for watch different sports games. There are various people who come for visit for
seeing these places. In UK, most of travellers main aim is to attracting towards large
number of people towards different types of sports tournaments. This will assist company
easily for increasing their profit and also organise several kind of practices in these
locations. This will generate income in high level and the main objective is to attract
more people for watching these Olympic games.
 Health tourism: Due to World class medical treatments are offered at low cost giving rise
to increase business for medical tourism. Visibility of overseas marketing is getting a
boost gradually.
Illustration 1: Overseas visits to Britain
(Source: Overseas visits to Britain )
As per the above mentioned image, there are several number of visitors which are
continuously enhancing in Britain from 2014. Therefore, this enhancement continuously growing
in 2016 also in effective manner. This will help in improving their economic growth rate and
also increasing income in these years. In 2016, it will always going to 36.7m in a year.
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It clearly explained that market will expand by launching new services and products for
their potential customers. This will assist company for taking accessible opportunities that are
arises in the large market place. They can compete with their competitors at competitive place.
2.2 Current trends in respective sector of tourism.
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Introduction:
The travel and tourism industry is going through diversification in the current trends
providing the marketplace for growth of the respective industry. In this particular poster various
trends in the tourism industry like environment friendly tourism, grey tourism etc.
Current trends in Travel and tourism industry:
This can be evidenced that the preferences of the people are continuously changing with
the time and many people are involved in availing the various services of tourism industry, they
are constantly engaged in spending leisure time and carrying out recreational activities to take
rest from the dial routine life. People has developed various hobbies and choices with relation to
the services of tourist sector along with differentiating their preferences on the basis of type of
location or destination the operating tour businesses are providing.
The different travel and tourism companies are focusing on their services and changing
needs of visitors and their expectation with the tour operating firms. As working with an tourism
company individual have to analyse the current trends in market and react accordingly in order to
provide the quality services as per the newer needs in marketplace. Some of the new trends to the
tourism industry growth which are prevailing in mind of visitors and tourist are grey tourism,
dark tourism and eco-tourism. These can be beneficial options for an firm in order to develop a
profitable niche market for he business.
For a company targeting the eco-tourist destination for providing package to the
customer can be profitable. This will helps in attracting part of the tourist which are interested in
development of green tourism and also love natural places to visit. This targets a particular
groups of visitors. The company may target the Bukit Lawang village to provide tourism services
to the visitors which is having a great forest having rehabilitation species of orangutan which
attracted large number visitors and tourists towards their beauty in year of 1973.
Another changing trends in the tourist marketplace can be promoting the grey tourism
which is focusing on the needs and expectations of the old age people with travel sector. The
companies are targeting these people as they are having large disposable income to invest in
respective industry which they earned in their whole life. This changing trends can be also
beneficial for growth of the tourism industry in grey tourism aspects which creates niche market
of operating businesses.
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While another prevailing trend in the markets of travel industry is dark tourism which
basically targets the people who loves to visit at haunted places or dark destination. The
companies are targeting tourist who loves to take risk in life and to be adventures. This is the
most trending aspects of the market of tourist sector and can drive huge profit for the tour
operating businesses.
Medical tourism- In this modern time period, United Kingdom country is promoting
high-tech healing with the help of its private social and health care industry as visitors attraction.
This is helpful in enhancing the trade in the medical tourism, selling the idea to visitors about
travelling to United Kingdom for better medical treatment at reasonable cost.
Spas- In most of the parts of world, treatment and also therapies uses which helps in
beauty and wellness. In context to this, new types of health related tours which are gaining more
popularity in UK country are the spa tours. It provides wide range of quality services as well as
products at affordable cost. In this country spa services are good.
Mainly concept of tourism is a mix of various physical features and infrastructure
resources which affect the final destinations of tourist. Being a service industry, it is based on
experience and this is one of the main element which affect the development of tourism products
and help firm in attract large number of customers. Movement of visitors play a big role in
tourism industry and largely affect its operations so this must be consider by the tour enterprises.
Conclusion:
This can be concluded from the above represented tourism is that all the new trends in the
market of travel and tourism industry leads to creating niche market for the businesses
delivering their services to the large numbers of tourists.
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TASK 3
3.1 Response of tourism sector towards change.
Tourism sector is increasing day by day due to emergence of number of companies for
generating maximum revenue in a minimum duration. Therefore, these enterprise are coming up
with various ideas or trends for capturing attention of millions of tourist. Thus, to deal with these
competition existing companies need to modified their current policies and strategies for
attaining set objectives or goals. Along with this if there is any reformation in environment of an
enterprise then it directly have a greater impact on business operations of tourism industry.
Initially, number of firms who are involved in a travelling sector uses traditional techniques for
managing or regulating their task or activities. Later on, it has been identified by higher authority
of existing companies that adopted tool is not very much appropriate or effective as managers are
not able to communicate with clients which influence their sales. Apart from this, if travel and
tourism sector is going to adopt modern technology then they get succeeded in attaining set
objectives. Thus, advanced equipments which is used by travelling companies are; increase
usage of internet, social sites for getting aware about opinions of domestic as well as foreign
clients. It is fundamental for referred association to alter their policies to respond towards
changes which incurred in society. Hence, it is indispensable for associations to implement an
effective procedure for responding to complex surrounding effectively. However, for above
defined purpose an enterprise may use PEST investigation which is described as follows:-
Political Every enterprise trying to extend their business in a broader sense for
gaining maximum benefits in a minimum duration by satisfying customers
demands. Therefore, they are establishing their branches in various
nations; thus it is indispensable for them to assess the situations of states
before expansion process. Regulatory bodies of every nation amended few
rules and regulation or impose tax policies which have a greater influence
on benefits of an enterprise.
Economical According to this factor an organization have to determine exchange rate
and its fluctuations in country. Therefore, it is essential for organization to
identify currency rate before establishing their branches across the globe.
If values is minimum then they requires to take appropriate steps for profit
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maximization.
Social Taste and preferences of tourist are required to be determined so that all
the services are provided to them in accordance with their preferences.
Technological In the changing environment there are various technological changes
which keeps occurring and they are to be incorporated in business by
managers.
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