Travel and Tourism Management Report: Demand and Supply Analysis

This report provides a comprehensive overview of the travel and tourism sector, examining its key components, historical developments, and structure. It explores the impacts of political changes in countries like India, China, Nepal, Egypt, and Bangladesh on the tourism industry. The report delves into factors affecting the demand and supply of tourism, including demographic, geographical, and economic aspects, such as per capita income and media influence. It also analyzes how changes in supply meet demand, highlighting the importance of quality services, seasonality, and accommodation. Furthermore, the report discusses the positive and negative economic, environmental, and social impacts of tourism, using Spain and Egypt as case studies, and proposes strategies to minimize negative effects through education and governmental initiatives. The conclusion emphasizes the need for responsible actions and education to mitigate challenges like terrorism and promote sustainable tourism practices.

TRAVEL AND TOURISM
MANAGEMENT

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INTRODUCTION
Travel and tourism sector is one of the civilian sector which mainly consist of five major
parts i.e., lodging operations, transportation services, food and beverage operations, retail stores
and activities. The main objective of this sectors is to render desired services to the travellers in
order to make their journey comfortable. The cited sector is one of the fastest developing sector
where different companies have been working in order to render quality services. Earlier, travel
and tourism sector were restricted up to elite group in order to enjoy the pleasure of travelling.
But with the changing time, the purpose of travelling has become enlarged such as for business,
sports, leisures etc. This has resulted in growth of the stated sector in terms of revenues and
services as well. Although, the concept of tourism and its effects can be better understood with
the consideration of TUI Group which is one of the world's leading tourism business. Apart from
this, the report is about to explain various historical developments in the adapted sector.
Additionally, the structure of the aforesaid sector is being discussed in the current document
(Paget, Dimanche and Mounet, 2010).
TASK 1
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TASK 2
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2.3 Political change implications in several countries
Political changes plays a crucial role in effecting the country. Every country has different
effect on travel and tourism industry of the concerned country.
 India: The government of India has made several plans for the growth and enhancement
of the travel and tourism industry of the Indian economy. The government has formed a
campaign name with 'Incredible India' for the revaluation of the value of Indian tourism.
It is seen that, the stated economy has friendly culture which helps the country to attract
the new tourists. Besides this, the negative factor which affects the tourism of the
country is terrorism. The attacks of terrorists in most parts of the country like Jammu and
Kashmir has seriously affected the tourism industry adversely (AlSayyad, N., 2013).
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 China: In china political decisions has a huge impacts on the tourism activities which has
resulted in up and down falls. In 2008, the economy got a chance of conducting Olympic
games in which there were several expenses being made by the China government. This
leads in attracting the large number of tourist in the cited economy. On contrary to this,
the decision of China government of taking over Thailand has resulted in devastating the
tourism sector.
 Nepal: In the world, Nepal has formed a positive image with reference to peacefulness
and beauty. But the political environment of Nepal due to violence and other issues
resulted in lowering down the image of this economy. Apart form this, the major impact
on this economy due to Maoists attack that leads to formed a barrier for the tourists who
wishes to visits this economy (Anderson, 2011).
 Egypt: The tourism sector of the Egypt economy has covered the major portion in the
development of the economy. The stated economy is well known for its famous historical
destinations and pyramids. But the economy is facing the issues of corruption in which
political parties has been played a major role. The outcome of this situation is affecting
the position of the cited economy in the minds of tourist. The impact of the same is on the
revenue generation capacity of the economy form the stated sector (Paget, Dimanche and
Mounet, 2010).
 Bangladesh: The Bangladesh has an autonomous body named as Bangladesh Parjatan
Corporation (BPC) which works for expansion of tourism industry in country. It has
opened many institutions at various places to impart training to students in hospitality and
tourism sector (Tourism in Bangladesh: Present Status and Future Prospect, 2015). It
also aims to meet the demands of tourism sector by bridging the gap between present
policies and future strategies. Due to political crisis, instability and terrorist activities
occurring in the country, the development of tourism sector has hampered.
TASK 3
3.1 Factors affecting the demand and supply of tourism
There is a high importance of demand and supply in tourism sector. It depends upon
various factors like demographic factors and geographical factors etc. From the geographical
point of view , Demand of tourism could be referred as the willingness of tourists to travel and
spend money on tourist facilities away from the area where they used to live. Tourism has a sole
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aim to improve the lifestyle of local people. They create better living conditions for all the
citizens. Through research it has been observed that factors affecting demand of tourism varies
from place to place. The first and very significant factor which affects the demand for tourism in
a considerable way is per capita income of a any country. The thing which should be noted is
demand for tourism of one country is supply for the other country. Hence it can be observed
from this fact, per capita income of a country decides the demand of tourism for another country.
As higher per capita income provides better economic power which helps tourists to enjoy
tourism and its amenities. Media also plays a vital role in tourism demand (AlSayyad, N., 2013).
As many of the tourists visits to the tourist sites because they have seen the commercials
and advertisement regarding that tourist place. So it can be clearly visualize that media is an
important factor for the movement demand in the graph. Because media through its creative
advertisement and promotional strategies creates an unique image in the mind of tourists for any
tourism place. They gets attracted towards the tourists places through these advertisements. One
another factor which influences demand for tourism is price. Price play an important role not
only in demand of tourism but each and every thing in market. Like it effects the demand of
goods just like that it also influences the demand for tourism. Generally tourists want to visit
those places where they can get amenities in affordable price. So that they can visit and enjoy the
destination without any hesitation (Paget, Dimanche and Mounet, 2010).
Thus tourism countries should make such policies and strategies through which the price
to be paid by tourists gets lower as well as they can generate considerable amount of profit.
Reducing price doesn't means compromising with the quality. Tourism companies should
generate such techniques through which quality of tourism remains same and its price gets lower.
Just like other industries demand and supply of tourism industry also gets influenced by
customer satisfaction. As in tourism industry the business is totally about satisfying the
customers as customers likes to visit at the places which provides them immense satisfaction.
Hence tourism companies needs to satisfy the needs and requirements of its customers by
providing them services which they want and way of providing should also be in a way which
attracts the other customers. Further Accommodation facilities also play a vital role in changing
the rate of demand in tourism industry. Because people likes to visit the places which has good
infrastructure, communication, and health facilities etc. these factors are interlinked with each
other and they needs to manage so that demand for tourism gets high.
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3.2 Change in supply has met the demand effect
Here are several factors which remained helpful in order to change the effect of demand.
Following factors are explained below.
 Quality services: It is seen that the customer demand is majorly affected due to lower
quality services. However, the organizations like TUI groups has focused on enhancing
its services in a way that the aims and objectives of the customers can be attained
effectively. The management of the organization has centred on rendering proper training
and development to the employees by which they are able to take care of the customer
needs. Training has resulted in uplifting the current position of the employees in order to
meet the future goals and objectives of the company. Besides this, the organization also
needs to keep in mind the quality standards for the protection of environment (Paget,
Dimanche and Mounet, 2010).
 Seasonality factor: This is the another factor which results in affecting the consumer
demands. However, the stated organization has focused on overcoming this factor by
creating less rates packages or discounted packages to the customers. This makes
compulsory for the companies to study the season's pattern in different countries so that
mentioned firm can make right decision of targeting customers of right places. This
nature of company differentiates it from other tour operating agencies. By focusing on the
explained factors, the management of TUI has become one of the renowned organization
for offering the best services (AlSayyad, N., 2013).
 Accommodation: This is another factor by which the customer demand gets affected.
The management of TUI group needs to focus on providing comfortable accommodation
to the customers. They required offering proper food facilities, stay facilities and other
recreational facilities. This will catch the attention of the customers in a way that the
profitability of the firm can be raised. Apart form this, the organization can also focus on
rendering gym facilities to the customers because in present situation the customers are
getting fitness freaks.
TASK 4
4.1 Positive and negative impacts with reference economic and other factors
In context to Spain and Egypt, both the positive and negative impacts on economic,
environmental and social are explained beneath.
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Positive and negative implications
 Environmental factors: There are various initiatives has been taken by the government
so that the beauty and quality of the destinations may get enhanced. Rehearse ecotourism
is a very devoted motion in this textual matter. Flora and bio-reserves are existence aged
suitably for the publicity of the commercial enterprise. On contrary to this, the negative
implications of the same are pollution, natural resources exploitation etc (Paget,
Dimanche and Mounet, 2010).
 Social factors: The heritage and culture of an economy is being served and saved by the
concept of tourism. By moving form one country to another, the impact is on exchanging
of the cultures. Several steps have been taken by the government of the stated economies
for safeguarding the societal factors. Besides this, the negative impact is that it may result
in spoilage of the cultural values of the economy.
 Economic factors: The positive impact is that the stated sector has become one of the
high revenue generating source for the two economies. On other hand, the cons is that it
is a seasonal factors which can affect the earnings for a particular time (Conrady and
Buck, 2011).
4.2 Strategies to minimise the negative impacts
In order to minimise the negative impacts certain strategies are are adapted that are
explained below.
 Education: The government of the economies required focusing on raising the
knowledge of the travellers. This can be done with the help of print media and television.
The people will be able to get the appropriate knowledge about the requisite subject
matter.
 Initiatives form the governable bodies: This is the another strategy which will result in
enhancing the position of the country. They need to frame such kind of policies and
provisions which can act favourably for the industry. It has to be assured that travellers
from different countries does not faces issues in the host countries (Brotherton, 2012).
CONCLUSION
With the help of above report, it can be aforesaid that the tourism sector get affected by
the several elements. As a result, the economies require focusing over the impacts in order to
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lower down the negative implications. Besides this, several changes have been noticed in the
industry. Issue like terrorism has negatively affected the popularity of the tourism. There is a
need to make the people more educated and responsible in their actions.
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