Analysis of Contemporary Issues in Travel & Tourism (Module Report)

This report delves into the contemporary issues and trends shaping the travel and tourism sector. It begins with an analysis of factors driving change, such as the need for increased security, technological advancements, economic conditions, inflation, the impact of the Eurozone, environmental awareness, and legislation. The report then examines these issues using various research methods, including the impact of terrorism, digitalization, competition, and climate conditions. Furthermore, it evaluates current trends influencing the sector, including inbound and outbound tourism, specialist tour operators, adventure tourism, sports tourism, agro/rural tourism, medical tourism, green tourism, grey tourism, and faith tourism. The report analyzes these trends, utilizing qualitative approaches and secondary data to understand their impact on the industry. Finally, the report discusses how travel and tourism businesses can respond to these changes by developing and justifying strategies to adapt to the evolving landscape.

Contemporary issues in Travel
& Tourism

TABLE OF CONTENTS
INTRODUCTION:..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analyse issues currently driving change in the travel and tourism sector............................1
1.2 Analyse different current issues using appropriate methods and resources..........................3
TASK 2............................................................................................................................................3
2.1 Evaluate current trends influencing change in the travel and tourism sector.......................3
2.2 Analyse a current trend using appropriate techniques and resources...................................4
TASK 3............................................................................................................................................4
3.1 Analyse how travel and tourism businesses could respond to change..................................4
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
.....................................................................................................................................................6
3.3 Justify strategies for how selected travel and tourism businesses could respond to change.7
TASK 4............................................................................................................................................8
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector
.....................................................................................................................................................8
CONCLUSION:...............................................................................................................................9
REFERENCES :............................................................................................................................10

INTRODUCTION:
Travel and tourism sector is rapidly growing with increase in number of customers every
day. It has provided ease to other industries that are directly or indirectly connected to it.
Tourism sector highly contributes in GDP of a nation (Eugenio-Martin and Inchausti-Sintes,
2016) It helps in improving the economic condition. The instant rise in this sector is because of
increase in services and facilities that allows people to travel all around the world. Besides this, a
lot of tour operators has improved their quality of services, so this has attracted people towards
travelling. Moreover, government has developed effective and strong policies regarding safety
and security of people. This has resulted in gaining trust of people and tour operators. This
assignment will show various issues driving change in this sector. Also, how current trends has
influenced change in tourism sector is studied. In another section it is discussed that how tourism
sector can respond to change by developing strategies (Phillips and Moutinho, 2014) Moreover,
the impact of issues that drive change in tourism sector is analysed.
TASK 1
1.1 Analyse issues currently driving change in the travel and tourism sector
Travel and tourism sector depends on certain factors that allows them to grow and
develop. This sector provides both leisure and work related experience to people. There are
different types of tours ion which business tours has emerged significantly. But, in recent times
there are various issues that has changed the trend of this sector (Hanna and Butler, 2015) There
has been a great impact on issues and trends on tourism sector. Every country focus on
maintaining its status and dignity so that it can attract people to visit it. There are various issues
that has changed the entire industry affecting its growth. These are described below :-◦ Need for increased security- This is the most common and popular issue that has
directly affected tourism industry. Now people are more concerned towards security
rather than services. They want assurance of their security before travelling to another
place. Besides this, due to increase in terrorist attacks, it has created a feeling of fear
among people to travel (Hall, Williams and Lew, 2014) Moreover, local bodies has
felt the need of providing security to people by working with tour operators.

 Advancements in technology – Technology has almost affected every business sector. It
has provided a platform to grow and develop. In tourism sector technology has played a
crucial role in improving the quality of services. Also, there has been increase in facilities
that has allowed people to travel. Tour operators are using technology to expand their
range of services. State of the economy- Generally, tourism sector depends on economic condition of a
nation. People likes to visit those countries who are having a good economic condition.
But, in present times there has been downfall in economy of specific countries (Tavakoli
and Mura, 2015) It is due to several issues such as war Therefore, people prefer to travel
to those places that are having stability in economy. Rise and fall of inflation – Tourism sector consists of variety of services that are directly
related to income level of people. Along with this, any shift in inflation will have an
impact on prices of those services. Also, inflation will affect currency rate of country.
Thus, rise in inflation will increase price of services restricting people to travel and fall in
inflation will decrease it. Impact of the Eurozone- Due to Brexit the area that is been highly affected is Europe. It
has entirely changed its policies and laws for tourists (Abubakar and Ilkan, 2016)
Besides this, the trade and tariff policies has modified due to which tour operators are
finding it hard to maintain relations with Europe. Increased environmental awareness- People do not travel to those places that are having
threat of occurring of any natural calamity. Apart from this, happening of natural
disasters in Japan has rise awareness among people not to travel. Moreover, Government
has taken several actions to protect their environment. Usually, people travel to explore
nature in different countries.
 Current national and international legislation- Due to the poor relations of countries
with its neighbours has forced them to change its policies (Battour and Awais, 2017)
Moreover, change in political situation of nation is continuously modifying its legislation.

This has enforced them to develop strong policies regarding migrants. It has driven
change in tourism sector.
1.2 Analyse different current issues using appropriate methods and resources
Tourism sector is entirely surrounded by various issues that have a direct impact on its
growth. This industry has to face different kinds of issues in certain time. On the basis of
extensive research methods, different sort of issues and factors are been taken in consideration
that will help in better handling of business operations and other activities in travel and tourism
sector (Bramwell, 2015). These issues are meant to be rectified effectively that will help in
better execution of business operations that will help in effective execution of different
operations that are been performed in the organisation that is been followed in and travel and
tourism firm. These issues occur because of change in trends or other things There are various
issues faced that is analysed as below :-
Terrorism: This issue has emerged in recent time. It has reduced the number of people who
often likes to travel. Recent attracts on Paris and London has created a negative impact on
behaviour of people. These attacks have restricted people to travel (Dedeke, 2016.).
Involvement of digitalization: As with the passage of time, all the operations that are been
performed by the travel and tourism sector are been digitalised. This approach is used to make
the services more effective and faster. However, various threats factors like hacking f
confidential information of the tourists or customers is the big issue that is been faced by the
organisation.
Increase in the competition: with the globalisation, many approaches are been taken in
consideration that are to be taken in effective consideration by the organisation. As many service
provider will be acting in the market, the prices or the cost of services will be fluctuating, that
can impact on the revenue generation of a firm.
Climatic conditions: Variation in the climatic conditions and the uncertainty about the weather
is the major issue that is been face by a travel and tourism sector (Ivanova and Light, 2017).
The travels or tour operator has to effectively look after the better measures to provide the better
services that will help in the better handling of the operations associated with the operations that

are been followed in the travel and tourism sector in the united kingdom or any other country
around the world.
TASK 2
2.1 Evaluate current trends influencing change in the travel and tourism sector
Tourism and travel sector is affected by many factors. It changes the entire trends of
industry. These trends influence internal and external environment of this industry. Moreover, it
also influences people behaviour and changes their needs. Thus, business has to evaluate those
trends so that appropriate measures can be taken. In UK there has been increase in inbound and
outbound tourism (Holden, 2016). Furthermore, there are many trends that has increased in
recent time. These are discussed below :-
Inbound and outbound tourism – in outbound tourism tour operators take residents of one
country to another. This type of tourism is rapidly increased in UK. It has created a platform for
business to provide these services to people. While inbound tour operators provide services to
non residents. They are local tour operators who helps in assisting propel who arrive in their
country.
Specialist tour operators – They are special tour operators who provide services only for
specific purpose. They are generally related to a particular field and works their only. People
usually prefers to travel for specific purpose such as medical, sports, faith tourism, etc.
(Ashworth and Isaac, 2015)
Various trends in travel and tourism sector are as follows:
Adventure tourism: this is the one of the major trend ongoing since a long time. Many tourist
destination involving beaches, forests or mountains offer the facility of adventurous activities to
the tourists or customers (Ashworth and Isaac, 2015).
Sports tourism: Such tourism is observed by the organisations that involved in the sports and
thus work in a better and significant manner. It involves the various major sports and their events
like cricket or football world cup that help the respective nation to gain a good idea about the
needs and requirements of a sport enthusiast.

Agro/ rural tourism: this involve the development of country or rural area as the tourist
location to provide their customers with a unique experience. This involves the practices of
tourists or customers staying in the village with the rural people and having an experience of
living their lifestyle (Young, Reis and Higham, 2015).
Medical tourism: various countries offer cheaper medical facilities than that in UK. Thus, this
had lead to the development of medical tourism, where the patients come to a country for the
cheaper medical services.
Green tourism: This involves the approach like visiting to a natural or ecologically rich
destination that will help in the better handling of the business operations. It involves the places
full of mountains, lakes, and other environmental resources like wildlife and exotic flora and
fauna (Holden, 2016).
Grey tourism: it is one of the latest emerging trend in travel and tourism that involves the
people visiting old, abounded and so called haunted places, related to death to get an adventurous
and unique experience. It is however least popular.
Faith tourism: many countries have the religious shrines of the devotees all over the world.
Thus, when the devotees pay a visit to these shrines, they get the help from the services provided
by travel and tourism sector.
2.2 Analyse a current trend using appropriate techniques and resources
With the usage of qualitative approaches like questionnaire, the primary and secondary
data about the various ongoing trends are been taken in the consideration by the organisation that
will help in the better assessment of different practices that are been followed in the business
organisation working in travel and tourism industry. The travel and tourism sector in the united
kingdom will lay a very deep and significant impact on the overall operations of the company
that will lay a significant approach on the business approach that is been taken in the
consideration by the firm of travel and tourism sector (Battour and Awais, 2017).
The assessment of the trends will help in the better development of services and high
quality products that are been taken in consideration by the firm. These goods and services are
been offered to the tourist to have a better handling of the business operations in the better way.

Other than this, the detailed analysis of the various trends like faith tourism or medical tourism
will he;lp the travel and tourism firm to collaborate with the respective firms or organisation that
work for the convenience of the travellers. Other than this, the assessment process will help the
government of local tourism development board to intake the innovative and high quality
measures that will help in the better development of tour and travel services on a tourist hotspot
of destination. This will help the travelling sector to provide its customers with high quality of
services and gain a good satisfaction level (Abubakar and Ilkan, 2016.).
TASK 3
3.1 Analyse how travel and tourism businesses could respond to change
Every industry operates around its macro and micro environment. Any change in these
will affect the entire industry. Therefore, it is very important to analyse changes so that it
becomes easy to survive for long term. It is very essential for tourism sector to make strategies
according to change in current trends (Ivanova and Light, 2017) It will help in providing better
facilities and improving the quality of services. Moreover, it will be beneficial in maintaining
growth in this sector. For this there are various strategies that can be followed by businesses in
tourism sector. These are as follows :-
PEST- It will help in analysing the changes in external environment. By this it will be easy to
identity how changes such as political, economical, social and technological can impact tourism.
Then, accordingly strategies can be developed to respond to change.
 Political – The laws and regulations developed by government allows tourism sector to
provide services accordingly. It included policy of issuing visa to people, providing
safety and security, etc. (Dedeke, 2016). Therefore, businesses in tourism sector can
analyse what can be the future political situation of country. With this it will be easy for
them to build relation with government.
 Economic- Any change in economic condition of country forces tour operators to make
changes in their packages and pricing policy. Business can evaluate economic condition
that will help them in setting price of packages. Also, it will allow them to change their

prices by doing market segmentation. Moreover, it will enable business to set standards
price.
 Social- Society is closely related to tourism sector. It is because this sector provides
employment to locals and people ( Bramwell, 2015). Thus, by analysing change in social
environment business can respond to change. It can make changes in their operations and
services.
 Technological- As discussed above technology play a vital role in improving quality of
services. Therefore, business can use it to expand its services. Also, it can be used to
develop products by identifying people needs.
SWOT- It will help in analysing the changes in internal environment. By this it will be easy to
identity how strengths, weakness, threats and opportunities can impact tourism (Young, Reis
and Higham, 2015). Then, accordingly strategies can be developed to respond to change.
 Strengths – By improving its strengths business can on focus on gaining more market
share. It will help them to get stronger competitive advantage in the market.
 Weakness- By identifying weakness business can develop strategies to improve it. It will
be easy to implement strategies whenever a change occurs.
 Threats – By analysing internal environment threats are identified. For overcoming
threats proper plans and measure are taken (Phillips and Moutinho, 2014). So business
can analyse threats that it can face so that strategies can be developed accordingly. Opportunities- Change in internal environment can arise opportunities for growth. It can
help business to develop strategies for growth by providing new products and services to
people.
Improvements Response to change-
Adapting and creating new products and services- It is the best method to respond to change.
In this business can introduce new products so that it can attract people. In this new places,
facilities, etc. can be provided to people. It will be beneficial in maintaining growth of business.

3.2 Develop strategies on how selected travel and tourism businesses could respond to change
As per the above discussion it has been analysed that in the travel and tourism sector
there are several kinds of changes which impacts the performance of travelling corporation. As
Thomas cook is working well in the travel and tourism sector so it is important for carry out such
effective business activities and function through which it can maintain its sustainability in the
competitive and changing business environment. By use of the several; strategies, cited venture
can easily cope up with changes and make its business effective. One major change is related to
the technology so in order to cope up with changes in the technological changing environment,
company should conduct market research so as it can easily acknowledge about the changing
equipment and technology (Boluk and Carnicelli, 2015). By conduct market research it can
purchase more advanced technology and equipment that helps in increasing speed and process of
business activities.
Thomas Cook can receive advertising systems, it is the considerable apparatus through
which business can make association with customers. It can embrace online networking
advertising systems to spread brand name of the organization. Face book, Twitter and so forth
are fundamental social locales which can help in expanding number of buyers in the association.
Commercial ought to be in such way which can satisfied here and now and long haul goals of the
organization soon (Bondi, 2016). By embracing the two procedures British Airways would
response be able to specialized changes and can expand its execution and incomes
With help of Pestle analysis, company can easily analyse the external factor that affect
business activities and function. In these analyses, corporation can easily focus on several
elements such as political, legal, social, cultural, environmental etc. so as it can make strategies
accordingly and carry out function of business in more effective and efficient manner. In
addition to this, by help of environmental analysis, company can overcome upcoming risk in the
business environment.
Thomas Cook can centre around traditional tourism as it impacts a great deal on social
factor. It can give exceptional yields and upgrade acquiring of refereed to firm. Presently days
because of overwhelming contamination Eco-tourism is expanding and guests likewise
appreciate such sort of tourism exercises (Canavan, 2017). Refereed to firm can utilize

advertising blend methodologies for reacting emphatically to changes. It can advance its
products in various way and can take support of remote correspondence innovations. By along
these lines it is ready to pull in more purchasers towards the brand.
Cost leadership- Thomas cook can set the lowest cost of product as compared to its
competitors. This will help company to gain more market share and customers. They can follow
and implement strategy of cost leadership. In this company can segment the market and then
accordingly do pricing of product. This will help in charging different price for different types of
packages. Moreover, it will help them to attract large number of people. In this way company
will be able to earn more profits and gain competitive advantage in the market.
Differentiation – Thomas cook can develop unique and different products for their customers.
This can be done by identifying their needs in different markets. It enables firm to follow
generic marketing strategy in this. It means setting low cost of new products. With this Thomas
cook will be able to distinguish their products and services from competitors.
3.3 Justify strategies for how selected travel and tourism businesses could respond to change
As per the discussion it has been analysed that in the travel and tourism sector due to the
changing working environment, customer taste, demand, technology, legislation various changes
has been occurred. These changes affect the performance of corporation in this sector. In order to
cope up with changes, Thomas cook can adopt several strategies such as market research, social
media, marketing strategy, business environment analysis etc. In order to cope up with changes
in the customer taste and preferences regarding the services in travel and tourism, company have
to conduct market research so as it can identify actual taste and demand of users (Coles, Hall and
Duval, 2016). This is the best strategy for cope up with changes in the customer taste and
preferences. Social media is another one of the effective strategies to manage the changes in the
travel and tourism sector. With help of social media company can promote and advertise the
product and services on the internet. With help of social media, company can attract large
numbers of customer and influence them for purchasing (Forno and Garibaldi, 2015). Marketing
strategies can also help to the Thomas cook in order to cope up with changes in the trends. With
help of impressive marketing strategies company can conduct marketing activities in more

effective and efficient manner through which they can easily promote and advertise its
commodity and services in the market (Godfrey, Wearing and Schulenkorf, 2015). In order to
cope up in the business environment, company should conduct the internal as well as external
analysis. With help of internal analysis, corporation can easily assess its internal strength,
weakness, opportunities and threats through which it can design its own competitive strategies.
On the other hand in order to cope up with changes in the external environment such as political,
social, economical, environmental etc. company can use Pestle analysis. With help of this
analysis, corporation can easily manage the risk associated with changing environment.
TASK 4
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector
As per the above discussion it has been analysed that there are various kinds of new
trends and changes occurred within the travel and tourism sector by which Thomas cook
performance can influence (Guo, 2014). The major changes regarding to the technology,
environmental changes, inflation rate, changing trends of fashion, customer demand and
requirement etc. Due to these changes several are of the business enterprise can affect so it is
very important for company to understand these changes and make modification in the existing
practices These kinds of changes affects the performance and procedure of business which are
discussed below- Effect on product and services: Changes in advances technologies, Thomas cooks to
make adjustments in their item and services. Sudden changes in enactment and strategies
affect negative on the business and associations need to prompt adjust their products and
services. With assistance of the new and advanced technology corporation in the travel
and tourism can easily increase the quality of product and services and develop its
impressive brand image in the market. Effect on employment: While changes occurred in the travel and tourism then company
have to change the structure and criteria of employees recruitment. As in order to operate
the advanced technology, company required qualified employee so it is very important to
recruit high qualified specialist and workers (Higham, Bejder and Williams, 2014).

Furthermore, company also have to change the wages and salary structure of employees
according to their efficiency and productivity. Effect on organizations: As innovative progression is the principle issue and current
pattern. Due to the changes in the technology and customer tastes and preferences,
company have to make necessary changes in the existing working system and procedure.
In order to operate technology, company have to provide training and development
opportunity to its workforce so as they can understand the criteria to operate new
technology. Furthermore, to cope up with changes in the customer demand, company
have to conduct market research and invest large amount on the new styles and trends
along with product and services (Hsu and et.al., 2017). The major impact puts on the
corporation regarding capital investment because in order to purchase the new and
advanced technology corporation have to invest large amount of capital.
 Effects on the structure of corporation- Due to changing trends in the travel and tourism
sector, organization structure can also affect. Due to changes in the external environment,
corporation have to make new policies, strategies, practices, system and structure so as it
can cope up with new changes in the business.
4.2 Discussing the likely consequences of businesses failing to respond to market change with
reference to Thomas Cook
Reduced sales and profitability- If Thomas cook is not able to respond to change then it can
result in declining of their profits and sales. This will have a negative impact on their brand
image in the market. It reduces business efficiency and its operations. It creates a risk of getting
dissolved from the market. Also, it creates a negative image in the mind of customers.
Profit margins- Due to not responding to change their profit margins can reduced. It will allow
them to provide extra service to customers in order to earn more profits. Decreasing profits
margins means fear of going into loss. Also, Thomas cook have to cut down its expenses in order
to maintain stable profits. The trust of customers, employees and stakeholders will be highly
affected.

Change in attitudes- Customer attitude towards Thomas Cook will go in negative way. They
will prefer to use another company services instead of Thomas cook. Change in customer
attitude will affect companies image leading to decline in market share. Moreover, they will not
prefer to engage with company. Due to this the CRM of company will be affected and they will
not be able to retain their customers.
CONCLUSION:
The above report has summarised the current issues that occurs in travel and tourism
sector. Travel and tourism sector depends on certain factors that allows them to grow and
develop. This sector provides both leisure and work related experience to people. Tourism and
travel sector is affected by many factors. It changes the entire trends of industry. These trends
influence internal and external environment of this industry. Travel and tourism sector there are
several kinds of changes which impacts the performance of travelling corporation. There are
various kinds of new trends and changes occurred within this sector. Every industry operates
around its macro and micro environment. Any change in these will affect the entire industry.

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