E123 Module: Contemporary Issues in Travel & Tourism Report

This report delves into contemporary issues within the travel and tourism sector, examining the dynamic shifts driven by technological advancements, industry associations, and the paramount need for enhanced security measures. It analyzes the economic conditions, security concerns, and environmental impacts, providing insights into the current and future trends affecting tourism organizations. The report further explores how International Airlines Group businesses, specifically British Airways and Aer Lingus, can respond to these changes, developing and justifying strategies to navigate market fluctuations, political shifts, and environmental challenges. The analysis includes marketing strategies, pricing models, and promotional tactics to enhance business performance and address the evolving needs of the modern traveler. The report also explores the impact of these changes on the travel and tourism industry and the likely consequences of businesses failing to adapt to market changes.

Contemporary issues in Travel &
Tourism
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TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
1.1 Analysing issues currently driving change in the travel and tourism sector..........................3
1.2 Analysing 2 different current issues using appropriate methods and resources....................4
Task 2...............................................................................................................................................6
Prepared in PPT...........................................................................................................................6
Task 3...............................................................................................................................................6
3.1 Analysing how International Airlines Group businesses could respond to change...............6
3.2 Developing strategies on how British Airways and Aer Lingus could respond to change....7
3.3 Justifying strategies for how British Airways and Aer Lingus could respond to change......8
Task 4...............................................................................................................................................8
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector
......................................................................................................................................................8
4.2 Discussing the likely consequences of businesses failing to respond to market change.......9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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INTRODUCTION
In today's scenario, the tourism industry plays a significant role as the standard of
people's living will be enhance all over the world (Wachowiak, 2016). Compared to earlier, the
various tourism service are provided as per the customers requirements and apart from that, now
customers are more willing to travel to different destinations. Furthermore, the development in
the infrastructure projects and increase in the number of tourist spends by these sectors create
environment problems. The present scenario is based on some organizations and in context to
this; the study deeply describes contemporary issues in the tourism sector. The research project
describe various issues current and future trends that affect the tourism organisation. The
strategies are to be develop to resolve environmental, social and economic impacts by this sector.
Apart from this, it also focuses on developing skills required before undertaking small-scale
projects.
TASK 1
1.1 Examine various issues related to current driving change tourism sector
Nowadays, in a corporate world, The tourism industry can be divide into various units
that perform their role individually. From the travel and tourism industry point of view there are
different places in UK. There are major destinations all over world and these destinations'
popularity is increasing day by day (Becker, 2016). From all the different places in UK, Scotland
is the most significant place and every year almost 12 million visitors visit this place. In addition
to this, the industry contribution for the economic development. Further, the various issues faced
that are dynamic in the tourism sector are describe below- Advancement in Technology: The technology is changing rapidly and due to this it is
building connectivity between people and countries. In order to avoid unfortunate
circumstances, Scotland has to bring technological aspect in their country. As the
technology is getting advanced in this sector so, they used latest CCTV at the placed and
security checking also start (Slocum, Kline and Holden, 2015). This will create
awareness among the visitors. On the other hand, adoption of new technology incurs
heavy cost but this would result in more secured trip for the customers. In context to the
customers because of the new technology, more and more customers are aware about new
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destination and attractions. For example, presence of the internet will increase the number
of tourist. Apart from this improvement in the transport will bring diving changes in the
tourism industry. Apart from this, it also brings technological breakdown in the air
transportation along with this a change in the technology helps in bringing more and
more tourist to UK (The Tourism Industry: Contemporary Issues, 2016 On the contrary,
this would result better for the industry.
 Industry associations- Different facilities like accommodation, transportation and other
services are provided by travel and tourism industries to the tourist. To provide these
services to the tourist, cited industries have to dependent on the strategies of other
companies (Telfer and Sharpley, 2015). Therefore, they have to be dependent on the hotel
industry for accommodation and for transportation they have to depend on the airline
industry. To get these services, they have to inter related as well as inter dependent on
these industries. Hence, the travel companies face various issues for incorporating
changes in the organisation.
 Need for Increased Security: The most important contemporary issue that drives
changes in the travel industry is need for security. Travel industry has to ensure the
complete security, while taking the tourist to Scotland. The coercion as well as theft is
now increase day-by-day that impose challenges (Wu and et.al., 2016). Thus, the facility
of security is check this will resolve many problems more effectively.
1.2 Analysing 2 different current issues using appropriate methods and resources
2 Different current issues1. Economic Condition: In the off season, the economic condition are in negative; it will cut
down the jobs in Scotland and the rate of employment level is reduce.2. Security Issue: With the population of visitors increase leads to increase in the proportion
terrorism and theft (Falconer, 2015). With this reason, many people are discouraged to
visit to the city.3. Environmental Issues: With an increase of visitor, the rate of environmental degradation
has also increased (Scotland, 2016). Therefore, the various problems the city are now
facing with the environment pollution and wastage of resources etc.
Appropriate methods
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 Financial report- From the financial report it is analysed that UK is more affordable for
most of the public as compare to different destinations all over the world. For the tourist,
different hotels, famous places etc. are available at very reasonable rates. During the time
of season for the tourist there are different kinds of offer available in UK (Oviedo-García,
2016). With the different and innovative packages, more and more people are attracted
and are travelling to the cities of UK. This has resulted in increasing economy growth of
the mentioned country.
 United Nation's report- The United Nation's report is an appropriate method, to analyse
the proportion of terrorism in the country. From this report, it has been evaluated that
most of the time mentioned country has been targeted by the violence attract (Mowforth
and Munt, 2015). From the help of the United Nation report, it is assessed that f cited
country is one of the secured place in the world and most of the tourist celebrate their
holiday in UK's place.
Positive Impact
Scotland will have to highly aware about its protection, if there is an environmental issue.
These issues can be resolved by go through the e co-tourism. It will enhance the social welfare
and the citizens in the Scotland are getting benefits through this (Han and Gao, 2015). Further,
the increase in the security check create awareness of theft as well as terrorism leads to
minimising attack. Therefore, number of visitors will be increase and also the economic
development.
Negative Impact
Scotland will get impact, due to fluctuating in the economy. Further, the company
terminate contract of employment with the staff members. Further, the Scotland country in the
future become a worst to the visitors as this is because of the environmental degradation will
contribute more in the global warming (Bernick and Boo, 2013).
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TASK 2
Attached in PPT
TASK 3
3.1 Study on how the International Airlines Group organisation could respond to change.
International Airlines Group businesses may meet various changes in future such as
change in the government policies, preference of the customers and climactic changes. For the
aim of evaluating the change respond of tourism sector and the business of international Airlines
group is select (Telfer and Sharpley, 2015). Following changes may impact the business in either
positive and negative manner.
Political change- Coming towards the change in the political factors, such as political
stability as well as changes in the government policies. Changes in the government policies may
lead to effect the business as a whole. The business may be affected it will lead to adverse impact
on the enterprise, if the changes occurred in the policies are against the terms and conditions of
the company (Dickinson and Peeters, 2014).The major impact of taxation policy that are frame
by the Airline group. As the business have no other option rather than to accept the government
policy this may be in relation to trade restrictions etc.
Economic changes- Change in the inflation rate, taxation policies etc. leads to adverse
impact on the tours and traveller business. Exchange rates play an important role in international
market of Airline group. The business of Airline group will drastically impact due to Irregular
fluctuates in foreign exchange rates. For instance, if there is increase in the inflation rate, then
this result in decrease in the purchasing power of the customers. Apart from this, increase in the
taxation rate result in decrease in the purchasing power of the consumers. Therefore, the rate of
inflation change in one country that highly impact the economic condition in another country by
the tourism sectors (Becker, 2016).
Environmental changes- This is the another major change that is to faced by the tourist
and travel business. Many of time due to excess rain, it leads to landslide. Due to landslides the
business are unable to sent there tourist in the restricted place to ensure their safety prospectus.
Changes in the climate leads to complication of the journey of travellers. It is related to the
climatic changes the wide range of climatic changes in environment places a direct impact of the
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tours and travel business in UK (Wu and et.al., 2016). Changes can be related to water
availability, reduces landscape ethics, biodiversity losses, altered agricultural products etc.
changes affects the business of tours and traveller.
Social and cultural factors: On the basis of people own requirement, they possess their
life style. To meet the customer demand, Airline Group have to offer customized tour packages
and online booking service.
3.2 Develop strategies on how British Airways and Aer Lingus could respond to change.
Towards the change and facilitate, to enhance British Airways and Aer Lingus business
in better way there are various type of strategies by which a firm can responds. The increase in
the firm performance in the country attract a large number of visitors when the innovative
promotional strategy is used for marketing and also develop unique products and services.
Marketing mix and strategies
The weakness can be resolve and also develop the business of tourism sector that various
marketing strategies such as marketing mix can be adopt. These are as per the customers
requirements that are based upon in the adventures, heritage and corporate travel by offer them
packages for the holiday. The travel sector can choose various options as per their needs
(Lamsfus and et.al., 2015). Further, the reduction in the taxation rate as well as duties in the
tourism sector so, the price is also at the lower rate of tourism sector. In order to attract the
customers from various countries they can use promotional strategy such as social media
advertisement, public relations and sales promotion etc. British Airways should also focus more
towards the other activities relate to entertainment and conduct exhibition shows and programs
so as to provoke the interest and needs of tourists (Welcome to UK Travel and Tourism, 2016).
Penetration pricing strategy
This strategy will help the company in enhancing the business of travel and tourism. The
various services can be offer such as transportation, breakfast and dinner facility and also tickets
entry to attract the tourist at fair price. Aer Lingus industry can capture the market shares (Xiang,
Magnini and Fesenmaier, 2015). By providing services art low price may also attract more
customers that leads to profits and sales of tourist service can be increase of cited organisation.
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3.3 Justifying strategies for how British Airways and Aer Lingus could respond to change
Implementation of the strategies in British Airways and Aer Lingus for its tourism
industry helps to make various change and also improvement in the tourist services. It is also
possible if the British airways can adopt promotional strategies to attract the large number of
customers. Henceforth, the best marketing promotional strategies are able to satisfying the
customer in an effective manner. Furthermore, according to customers preferences and choices
give to the visitors such as packages service for the holiday satisfying more people in an efficient
manner. Customized packages and services by the British airways' industry earn more profits if
the tourist sector satisfy them more desired manner (Mills and Law, 2013). Marketing strategy
such as adopt promotional techniques and marketing plan may result in people may be more
aware about the different services as well as places in the world. Therefore, marketing mix and
strategy will the travel sector to increase the service as well as profits in the various market.
Providing services as per the customers needs and desire that will enhance the sales of the
British Airways. On a timely basis, the strategies are change with aim to provide the high-quality
of services to the visitors. Implementation of the marketing mix strategy adopt by the cited
tourism to promote effectively the services in the target market place (Urry and Larsen, 2011).
On the other hand, enhance the customer base as well the generate more revenue of the
Aer Lingus with the use of the penetration pricing strategy in their business. As customer are
more attracted with the low prices. Therefore, offering services at low price result in increase in
the sales of the company services (Blanke and Chiesa, 2013). Adopting of the penetration pricing
strategy will result in increase the market share this leads to stop the competitors to enter in the
market.
TASK 4
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector
With reference to Myla Travel, Thomas Cook and The Travel Network Group, the
presented research report mainly focuses on effective in examine the affect of main problems
and tourism trends it will drive respond to change in the tourism sector. The various different
factor of tourism industries create various types of issue some are impact positive and other
remains negative (Pesonen, 2013). the resultant into merger as well as acquisition and
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liquidation of business organization entity. The various affect through various different current
issues is described below-
Impact of the issues on Myla Travel
If Myla Travel focuses on various strategy that are relate to merger the various activities
and operations of business with The Travel Network Group that leads to capture market share .
Furthermore, Myla Travel will increase more profits that will improve economies at the
international level and they also provide luxurious as well as premium services to attract more
customers (Wellington, 2015). On the other hand, they adopt acquisition strategy and it also
focus on getting Thomas Cook, then this result in company suffer loss and suddenly the business
activities will be turn downward. It is a main reason that Thomas Cook earn profits through
sudden transformation in its phenomenon that leads to in open 200 stores in Britain country. If
the business of Thomas Cook will be acquired by the Myla, then all the liabilities are to be borne
by the company and result in giving bad performance of the company.
Impact of the issues on Thomas Cook
If Thomas Cook will be acquired by the Myla Travel, then this result in benefit for the
company to get more challenges and retain more customers. Therefore, with this acquisition,
Thomas Cook will be beneficial (Dickinson and Peeters, 2014). As they will take various
advantages to enhance its business thereby increase a number of stores in most of the countries
part.
Impact of the issues on The Travel Network Group
In this case, if Travelling Network Group is now merged with the Myla Travel that laeds
to achieve results more effectively and gain tremendous advantages by set the targets. The reason
is Myla is one of the leading travel agency and provides impressive luxurious and premium
services to its core customers (Contemporary issues in hospitality and tourism, 2013). Therefore,
by merged with the successful brand, cited company will be able to develop its business and
gain brand image at the global level.
4.2 Discussing the likely consequences of businesses failing to respond to market change
Myla Travel
According to the scenario, If Myla Travel fails to undertake the strategy for merger so,
they merge various activities with The Travel Network Group that are failure to respond to the
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changes that are take place in the global external environment (Lamsfus, and et.al., 2015). It
leads to risk of loss to the tourism company as they are not able to capture market position at the
international level. Furthermore, failure to survive for long period at the global as well as vital
corporate environment, that leads to create substantial losses to the overall firm functions.
The Travel Network Group
If Travel Network Group merge with Myla Travel, then it will reflect a good opportunity
for them. This is because company will gain immense market share and strong brand recognition,
if they will merge with Myla travel. On the other hand, if company will fail to merge with Myla
travel than they will lose the job opportunities, this result in minimization at the productivity
level of the firm.
Thomas Cook
Thomas Cook will be forced to closed various of its stores, if there is failure in changes.
This result in reduce in the overall market share of the company (Core List UK, 2016.).
Therefore, this will lead to destroy its brand image in the international market, as the company is
insufficient to manage its internal control system
CONCLUSION
The aforementioned report explain that, travel and tourism is the major sector that help
the country in increasing the economy growth of the country. This report concluded that it is
very important for every organization of travel and tourism to exist in the industry as per the
latest trends of market. Furthermore, it has been concluded that, if Myla Travel focuses on
undertaking merging strategy with the Travel network Group then the company will go to
acquire immense market share. On the other hand, if focuses over acquiring Thomas Cook, then
the company will suffer from loss and there will be sudden downturn in its overall business
activities.
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Online
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travelers-use-social-media-when>. [Accessed on 28th June 2016].
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