Travel and Tourism Sector: Historical Development and Impact

This report provides a comprehensive analysis of the travel and tourism sector, with a specific focus on the United Kingdom. It begins by exploring the historical development of the industry, detailing key milestones and transformations in transportation, accommodation, and tourist attractions. The report then examines the current structure of the sector in the UK, outlining its various components and their interrelationships. It also investigates the roles of national government, governing bodies, and international agencies in promoting the travel and tourism industry, highlighting the impact of economic and political policies on its success. Furthermore, the report delves into the factors influencing consumer demand, the evolving supply of tourism products and services, and the economic, environmental, and social impacts of tourism in London. Finally, it proposes strategies to mitigate negative consequences and maximize positive impacts, offering a well-rounded perspective on the industry's dynamics and future prospects.

TRAVEL AND
TOURISM SECTOR

Table of Contents
INTRODUCTION......................................................................................................................1
TASK 1......................................................................................................................................1
AC 1.1 Key historical development in travel and tourism industry......................................1
AC 1.2 Structure of travel and tourism sector in general and in UK....................................2
TASK 2......................................................................................................................................3
AC 2.1 Role of national government, governing sponsored bodies and international
agencies in promoting travel and tourism industry...............................................................3
AC 2.2 Impact of local and national economic policy in the industrial success...................4
AC 2.3 The implication of political changes on the travel and tourism sector.....................5
TASK 3......................................................................................................................................5
AC 3.1 Factors affecting the consumer demand in travel and tourism industry...................5
AC 3.2 Changing the supply of travel and tourism products and services in London..........6
TASK 4......................................................................................................................................6
AC 4.1 Positive and negative impacts of economic, environmental and social changes in. .6
London ..................................................................................................................................6
AC 4.2 Strategies helps to minimise the negative consequences and maximise the positive
...............................................................................................................................................7
Impacts...................................................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9

INTRODUCTION
Travel and tourism industry is one of the fastest growing service industries in UK.
The growth of industry helps to make economic development in UK. The industry is engaged
in providing travel services to the consumers for different purposes. It transports people from
one place to another in order to stay for the time period of less than one year. It transports
people at distinct venues and places through providing them transport services. It includes
taxi services, ship services, rail services and airline facilities. Further, it provides services like
tour operators, travel agents and accommodation facilities. The present report discusses about
the historical development that has been taken place in this industry in UK. Moreover, the
role of government, sponsored bodies and international agencies will also be discussed in this
report. Governing authorities are highly responsible for making industrial development
through promoting the travel and tourism sector. Furthermore, the report helps to identify the
factors that affect industrial demand to a great extent. In addition to it, the impact of
economic, environment and social impacts will be taken place in the present report.
TASK 1
AC 1.1 Key historical development in travel and tourism industry
This industry was operated before many years ago, but at that time, the industry was
not working as a growing industry. In the ancient times, less number of people was used to
travel as compared to the present time.
In the present time, number of tourists is increasing at higher rate. They travel for
their own purpose such as trade, education, accommodation, visiting to the relatives and
religious purposes. Therefore, this industry made different kind of developments so as to
provide improved services to the consumers that are explained below:
Transport method: In the earlier time, tourists travelled by foot, riding horse and
carrier wagon. These forms of transport were uncomfortable for the customers as road was
not constructed in a proper manner. In 15th Century, sprung coach was developed that made
travel experience pleasant. Further, in 18th century, turnpike roads was constructed that
enabled coaches to operate for a longer time duration. In 19th Century, public transport was
started that improved customer services. In addition to it, development of sea and rail
transport has been made that highly contributes towards the success of travel and tourism
sector (Hall, Timothy and Duval, 2012).
Grand tours: It was the traditional trip that mainly used by upper class European.
After completing education, young mends from Europe left for France. Great towns and cities
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were the most popular destination among the tourists. The Grand Tour worked as a guide or a
tutor that provided guidance to the tourists. It has significant cultural importance and provides
knowledge about the art techniques. It includes paintings and sculpture techniques as well as
gives opportunity to customers to purchase things that are not available in their home
countries.
Industrial revolution: After 19th century, society was changed to a great extent due to
urbanization. People moved from local areas or villages to urban areas for the employment
purpose. Under the industrial revolution, steam power was used to operate machinery. It
make possible to increase the production level. At that time, people worked in factories for
long working hours at lower wages (Evans, Stonehouse and Campbell, 2012). Therefore, only
upper class families could afford the expenditures on leisure activities. But, after the year
1830, social reforms were made through reducing working hours and increasing worker’s
wages. It increased the worker’s income level and their life style. This in turn, they started to
spend their money on leisure activities.
Post war developments: After the year 1950, British Travel Association (BTA) was
established. This association is greatly responsible to encourage the hotels and resorts
developments. Moreover, Tourism Act was passed in the year 1969. Moreover, development
of road and air transport facilities has made travelling easier for the tourists. Road transport
services are available at lower cost and available in all over the world (Látková and Vogt,
2012). Further, technological advancement has been introduced by aircraft services through
which tourists can reach to various destinations at very fast speed.
AC 1.2 Structure of travel and tourism sector in general and in UK
In general, travel and tourism sector mainly includes six components. It involves
tourist attractions, accommodation, transport, travel agents, tour operators as well as tourism
and development services. The industry requires attracting large number of customers and
retaining existing customers. Natural attraction includes the natural environment of countries
such as lakes, beaches and so on. However, manmade attractions include all the new and
innovative constructions. The industry provides transport services through different mediums
such as rail, sea and air transport (Gretzel, Wang and Fesenmaier, 2012). Accommodation
services refer to the development of hotels and villas that give services to stay in other
countries. On contrary, tour operators negotiate contracts with the service providers that help
to reduce their cost. However, travel agents sell tour operators brouchers to the public.
Tourist development includes boards that provide necessary information to the visitors.
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As per the scenario, in UK, this sector comprises different components in its structure
so as to make industrial growth. The country is regularly focusing to attract large number of
visitors by natural environment and manmade functions such as building towers.
Development of attraction points helps to attract larger number of people toward the UK
countries. Under the transport services, UK is conveying people by road, rail, sea and airline
travel mediums. Tour operators and travel agents are also providing services to the industry.
Tour operators provide holiday packages to the service providers while travel agents work as
a mediator between the operators and visitors. For staying purpose, industry is rendering
accommodation services through building large number of hotels, resorts, restaurants,
cafeteria and bars (Swarbrooke and Page, 2012). In addition to it, conference and exhibition
halls have been made that provide facilities to the business travellers. On contrary, public
sector fulfils the visitor’s need through providing required information to them.
TASK 2
AC 2.1 Role of national government, governing sponsored bodies and international agencies
in promoting travel and tourism industry
As per the stated scenario, government, its sponsored bodies and international
agencies are promoting regularly to the UK travel and tourism sector. UK Department of
Culture, Media and Sport are greatly responsible for promoting tourism. This department
provides funds and sets an agenda for supporting this sector. Moreover, transport department,
environment department also affect sector in an indirect way. UK has four national tourist
boards that are Visit Britain, Visit Wales, Visit Scotland and Northern Ireland. These tourist
boards are responsible for ensuring tourism development (Deery, Jago and Fredline, 2012).
Further, UK tourism act also designs rules for the sector that must be followed by the service
providers. Thus, these authorities are promoting sector by making parks, gardens and
museums in order to attract large number of visitors. Further, development of tourist
information centres, online booking facilities, sports and leisure centres as well as art
galleries is also promoting this sector to a great extent.
In addition to it, international agencies such as Gloabal Travel Association Coalition
(GTAC) and World Travel and Tourism Council (WTTC) also took active part in the
industry. These agencies are responsible for awaking customers to become a largest travel
and tourism industry. Further, these agencies make economic growth through providing
millions of jobs that helps to reduce unemployment rate. This in turn, Gross Domestic
Product (GDP) of the country also gets improved (Page, 2014). However, GTAC is focused
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on maintaining coordination between distinct international travelling agencies. The
Association is also focused on understanding the industrial needs so as to make economic
growth and development. The agency develops policies for the industry in order to ensure
long term survival. For the infrastructure development, British Hospitality Association
(BHA) and Scottish Development International (SDI) take active part in developing hotels
and resorts. In addition to it, International Civil Aviation Organization (ICAO) and
International Air Transport Associations (IATO) also help to enhance the efficiency of airline
services in order to ensure customer’s safety.
AC 2.2 Impact of local and national economic policy in the industrial success
Tourism policy is a set of rules, regulations and guidelines that plays a vital role in the
industry success. The policy works as a directive for the travel and tourism so as to meet the
set objectives and goals. It provides a framework to the industry in order to ensure industrial
development. Under the local and national economic policy, UK government mainly aims at
developing innovations, improving the industrial production and efficiency and increase the
number of UK residents who are visiting abroad every year. UK government economic
policy focuses on identifying the industry barriers and its growth areas. At the national level,
government departments, national tourist boards and other governmental agencies designed
the policy. However, at the local economy, many local tourism establishments, groups and
associations bring private and public sector together. Local Government Act 1948 and 1972
gives right to make policies to promote the industry. The authorities are providing wide range
of services to the industry. Under the local economic policy, it includes product development,
effective marketing, making infrastructural development, human resource development and
establishing sport and leisure centres and outdoor activity centres (Lee and Brahmasrene,
2013). However, under the national policy, inflation and deflation impacts the industry to a
great extent. For instance, increase the inflation rate will increase the industrial incomes and
the profitability. Further, the taxation rates also impacts the industry as higher the tax rates
will decrease the industry profits and vice versa. Further, the labour laws also impact the
industry success. For instance, reduce the employees working hours and increase the wages
rate tends to decline the industry profitability. Moreover, the government make
environmental laws to ensure environmental protection.
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AC 2.3 the implication of political changes on the travel and tourism sector
Political changes impacts the travel and tourism industry to a great extent. It impacts
the working efficiency of the travel and tourism industry. Politics refers to the power of
making rules and regulations so as to protect the visitor’s interest. Changing the government
brings political instability and impact the industry in an adverse manner. In each and every
country, government makes rules and regulations that control the industry operating
functions. For instance: When government made changes in the tax policies then it closely
affects the policies and strategies of an organization. Due to this, organization is compelled to
make changes in the pricing policy of an organization (Lunt, Mannion and Exworthy, 2013).
Raising which take place in the prices product or services adversely impacts the decision
making aspect of the customers. Thus, political changes have high level of implication upon
travel and tourism industry. In addition to this, political changes have also made impact upon
the other industries which are associated with travel and tourism industry such as airline and
hotels etc.
TASK 3
AC 3.1 Factors affecting the consumer demand in travel and tourism industry
Number of factors is existed in travel and tourism industry that impacts the customer
demands to a great extent. One of the most important factors is service prices that affect the
customer demands. It includes the cost of transportation, accommodation and meal services.
For instance, increase the service prices tend to decline the consumers demand and vice
versa. Further, the prices of complementary goods also affect the demand (Evans, 2015). For
instance, higher the cost of air travel as compared to the other transport medium reduces the
demand for air travelling.
Moreover, there are some non price factors that also greatly impact the demand. The
level of income is one of the significant factors that affect the consumer buying decisions.
Increasing the level of income tends to increase the visitors demand and vice versa. The
reason for such increases is large number of customers desire to visit at their favourite
destinations. Moreover, under the demographic factors, increasing the population contributes
to increase the industrial demand and vice versa (Estol and Font, 2016). Furthermore, the
quality of services leads to bring significant change in the demand. For instance, improving
the quality demand will be increase and vice versa. Thus, it becomes clear that both the
pricing and non pricing factors impact the demand for travel and tourism industry.
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AC 3.2 changing the supply of travel and tourism products and services in London
As per the stated scenario, London is major travel and tourism destination that attract
large number of visitors. Therefore, it is important for the industry to meet the visitors
demand at right time. In UK, industry is managing the supply of all the tourism related
products and services according to the demand. The supply chain management involves large
number of components such as accommodation, transport, restaurants, bars, food production
and infrastructure development. Increasing the customer demand need to increase the
industrial supply as higher the number of customers demand the travel products and services.
Therefore, supply has been changed by increasing the number of hotels, accommodation
services, meal services, restaurants, bars and travel services. Higher the number of hotels and
constructing higher the rooms, industry can meet the customer demands (Sharpley and Telfer,
2014). Moreover, the visitors use services of tour operators who provide appropriate advices
to them. Therefore, the tour operators make higher the contracts with the service providers
that help to manage the supply at fair prices. Further, demand can be accomplish through
improving the quality of travel services. Another, through using innovative and advanced
technology, quality can be improved that helps to mitigate the customer demands.
Furthermore, catering, food and beverages demands can be fulfil through increasing the
number of restaurants and their food production capacity. Increasing the number of airports,
railways, constructing new rout make enable the industry to meet the tourists demand.
TASK 4
AC 4.1 Positive and negative impacts of economic, environmental and social changes in
London
The stated scenario explained that economic, environmental and social changes
impacts the industry in both the direction positive and negative. The scenario indicated that
the increasing the incomes, number of jobs and contribution to the gross domestic products
are the positive impacts of economic changes. As per the scenario, increasing the customer
spending on travel and tourism helps to increase the government income. Further, it helps to
reduce the country's unemployment rate. However, the inflation, poor job security and
decreasing the wages are its negative consequences (Frechtling, 2012). According to the
scenario, risk of decreasing the value of £stg as compare to the currency of other countries
impacts negatively.
Under the environmental changes, construction of natural places, developing cultural
sites, making infrastructural development and the environmental awareness are its positive
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impacts. However, under the negative impacts, the scenario stated that pollution such as noise
pollution due to increase the flight paths impacts the country negatively (Goh, 2012). Further,
damage to the natural environment, inefficient use of natural resources such as water and
disposal of waste are the negative impacts. The industry is throwing garbage on the lands
create environmental loss to the country.
Under the social changes, preservation of the heritage, improving the life style and
cultural exchange through rendering services to the citizens of distinct countries are the
positive consequences. However, under the negative impacts, the scenario stated that
overcrowding and loss of amenities is one of the serious problems that create disturbances to
everyone's life.
AC 4.2 Strategies helps to minimise the negative consequences and maximise the positive
Impacts
By reducing the negative impacts and maximizing the positive impacts, industry can
ensure industrial growth and development. In order to reduce the negative environmental
impacts, environmental rules and regulations must be strictly followed by the countries.
Optimum use of natural resources such as water and food helps to reduce depletion of
resources. Moreover, recycling of industrial waste also helps to ensure environmental
protection (Hall and Page, 2014). However, through creating new parks and proper
maintenance of it helps to increase its positive impacts. Moreover, through organizing
awareness programmes, making Ecotourism policy and environmental management and
planning, positive impacts can be highly increased.
The positive social changes can be maximised through generating increased revenues
by providing higher the services to the customers at affordable prices. Moreover,
advancement of technology also helps to improve the product and service quality. This in
turn, foreign exchange earnings can be increased. Furthermore, developing infrastructure by
means of transport, hotels, sport centres and restaurants make economic development.
However, negative impacts can be minimized through increasing the wages rate and provide
job security to the employees.
Under the social changes, travel and tourism sector requires to undertake promotional
activities which help them in maximizing sales and profitability aspects. In the present era,
customer gives priority to the quality and uniqueness of product and services. Thus, by
undertaking research and development activity Travel and tourism sector is able to
understand the needs and wants of customers (Swain and Mishra, 2012). Through this,
companies who operate in the travel and tourism industry are able to offer unique products or
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services to their customers. Through this, travel and tourism sector cam maximize the
positive impact which are made by social changes or factors. In addition to this, by offering
the sight seen facility company who operate in the travel and tourism sector can minimize the
negative consequences made by social factor.
CONCLUSION
The present report concluded that the success of travel and tourism industry greatly
contributes towards the economic growth. The report described that different factors such as
political, environmental, economical and social impacts the industry in both the directions.
Therefore, through making efficient planning and strategies, negative impacts can be reduced
helps to achieve the industrial goals. Further, the report mentioned that established
governmental bodies and international agencies are also regularly promoting the tourism
sector. The authorities make rules, regulations and policies in order to create industry
sustainability for longer the time duration. This in turn, economic development can be made
through increasing the governmental revenues, cultural development, increasing GDP and
increasing the employment.
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REFERENCES
Books and Journals
Deery, M., Jago, L. and Fredline, L., 2012. Rethinking social impacts of tourism research: A
new research agenda. Tourism Management. 33(1). pp. 64-73.
Estol, J. and Font, X., 2016. European tourism policy: Its evolution and structure. Tourism
Management. 52. pp. 230-241.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Frechtling, D., 2012. Forecasting tourism demand. Routledge.
Goh, C., 2012. Exploring impact of climate on tourism demand. Annals of Tourism Research,
39(4). pp. 1859-1883.
Gretzel, U., Wang, Y. and Fesenmaier, D.R., 2012. Travel and tourism. Handbook of
Computer Networks: Distributed Networks, Network Planning, Control, Management,
and New Trends and Applications, Volume. 3. pp. 943-961.
Hall, C.M., Timothy, D.J. and Duval, D.T., 2012. Safety and security in tourism:
relationships, management, and marketing. Routledge.
Hall, M.C. and Page, S.J., 2014. The geography of tourism and recreation: Environment,
place and space. Routledge.
Látková, P. and Vogt, C.A., 2012. Residents’ attitudes toward existing and future tourism
development in rural communities. Journal of Travel Research. 51(1). pp. 50-67.
Lee, J.W. and Brahmasrene, T., 2013. Investigating the influence of tourism on economic
growth and carbon emissions: Evidence from panel analysis of the European Union.
Tourism Management. 38. pp. 69-76.
Lunt, N.T., Mannion, R. and Exworthy, M., 2013. A framework for exploring the policy
implications of UK medical tourism and international patient flows. Social Policy &
Administration. 47(1). pp. 1-25.
Page, S.J., 2014. Tourism management. Routledge.
Sharpley, R. and Telfer, D.J. eds., 2014. Tourism and development: concepts and issues (Vol.
63). Channel View Publications.
Swain, S.K. and Mishra, J.M., 2012. Tourism: Principles and Practices. Oxford University
Press.
Swarbrooke, J. and Page, S.J., 2012. Development and management of visitor attractions.
Routledge.
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Online
Evans, G., 2015. Negative Social Aspect of Tourism. [Article]. Available through:
<http://www.ecoholidaying.co.uk/negativeeffectstourismsocialaspects.html>.
[Accessed on 13th January, 2016].
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