Contemporary Issues in Travel and Tourism: Analysis and Strategies

This report provides a comprehensive analysis of contemporary issues in the travel and tourism sector, with a specific focus on the Indian and UK markets. It begins by identifying key issues driving change, such as security concerns and taxation in India, and explores various other challenges like health and safety. The report then examines current trends, including heritage, cultural, and adventure tourism, and assesses their impact on visitor numbers. Furthermore, it delves into how travel and tourism businesses, particularly the Thompson firm, can respond to these changes by utilizing tools such as PESTLE analysis. Finally, it evaluates the effectiveness of response strategies and the consequences of failing to adapt to evolving consumer needs. The report concludes with an overview of the key findings and recommendations for the industry.

CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1.1 Issues currently driving change in the travel and tourism sector...........................................2
1.2 Different issues using appropriate methods and resources....................................................3
Task 2...............................................................................................................................................4
2.1 Discussing current trends influencing change in the travel and tourism...............................4
2.2 Assessing how these trends impact the change in term of the type of visitors and their
numbers........................................................................................................................................5
Task 3...............................................................................................................................................6
3.1 Determining how travel and tourism businesses could respond to change...........................6
3.2 Developing strategies on how organization
could respond to change..............................................................................................................7
3.3 Justifying strategies for how Thompson firm........................................................................8
Task 4...............................................................................................................................................9
4.1 Examining how effective were the responses and analyse the impacts on the performance
of the Thompson organisation.....................................................................................................9
4.2 Analysing the consequences of organisation failing to response to the changing needs.......9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Illustration Index
Illustration 1: International Tourist Arrivals (millions)...................................................................7

INTRODUCTION
In today’s highly competitive environment, one of the fastest growing sectors is travel
and tourism. In these days, majority of people are highly involved with leisure activities and due
to this, they usually visit different tourist places. Different individuals visit to several places for
different purposes such as business trips, spending their holidays, education etc (Sharpley and
Telfer, 2014). These are some of the most common reasons due to which most of the tourism
businesses are framing various strategies. With the help of these strategies, they are planning to
make better experience for tourists. In this regard, the present study gives brief description about
the tourism environment for selected country i.e. India as well as current developing issues such
as terrorism and security, health and safety concerns, negative social and cultural impacts etc.
` In addition to this, next section provides appropriate information about the travel and
tourism organization as well as its respond towards the emerging trends and changing needs of
consumers. For the same, Thomson holidays are being taken into consideration which is a UK
based travel operator.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
Tourism is considered as one of the fastest growing industries as high number of people
within different countries are involved in different tourism activities. For the same, tourism
organizations are adopting various strategies through which they can easily attract more number
of customers towards their country (Cohen and et.al., 2014). For this particular section, India has
been selected as a destination. It is a country that is known for its lavish treatment to all the
visitors. It is one of the most famous tourist destinations due to its cultural heritage and festivals
held abiding attractions of visitors.
However, there is a huge growth of tourism in India such as Domestic tourism of India is
as old as Indian society. The country witnessed more than 562 million domestic and 5 million
foreign tourist’s arrivals. India is also ranked at 11th position in Asia pacific region as well as the
best country brand for value of money (Cohen and Cohen, 2012). While maintaining this
position, they are facing several issues regarding security, globalization, changing needs and
demands of consumers, taxation, marketing and promotion etc. Following are the two current
issues faced by them at the time of attracting huge base of visitors towards their country such as:

Security: It has been founded as a major problem for the growth of tourism for a number
of years. The whole sentiments of foreign tourists are highly affected due to the political unrest
and terrorist attacks in different parts of country (Mowforth and Munt, 2015). In the year of
2002, terrorist attack took place in Gandhinagar due to which there is a huge decrement in the
number of tourists of country. It has raised the concern of safety for visitors. However, they are
driving change for regaining the trust of people. Security at tourist’s spots, airports as well as
hotels has been beefed up to regain the confidence level of tourists (Terrorist attack in
Akshardham, 2002)
Further, changes are taking place from the side of government as well. They are taking
proactive approach in addressing these issues and identifying its potential impact on the industry.
(Updhyay and Sharma, 2014).
Taxation: Another major common issue faced by India nowadays is that it is a high-taxed
industry. It is the major reason which is making this country more expensive as a tourist
destination. It is highly affecting the growth of India with respect to increasing tourism. For this
reason, inbound tourism is one which is the most affected. There are varied taxes which are
covering right from the tour operators, transporters, airline industries to hotels. It includes
various taxes such as service tax, luxury tax, tax on aviation etc. It highly affects and hampers
the overall growth of tourists (Hannam, Butler and Paris, 2014). However, government of
country is planning to take several initiatives through which they can reduce these tax rates.
Further, the above given two issues are the current issues which are driving changes in the
number of visitors of India. These are the major issues due to which industry is hampering the
growth of tourists in country.
1.2 Different issues using appropriate methods and resources
From the past several studies, it has been founded that India is rewarded with the tag of
“Incredible India”. The above given section has presented two major issues which has affected
the total growth of tourists in India. In addition to this, there are various issues which might arise
due to its rich culture and heritage (Cohen and Cohen, 2015). Due to the increasing violence in
India, terrorism is regarded as one of the biggest issues.
Terrorism issues

Moreover, customer’s needs and demands are changing day by day and it is becoming
quite crucial for the government of country to take several initiatives. Terrorism and violence are
becoming the first and foremost issues for tourists everywhere in India. They are increased due
to lack of monitoring activities of security agencies in the nation. Further, People of country have
lack of roles and responsibility regardingit. So many terrorists conducted many serial blast in
major cities of India like Mumbai, Jaipur and Delhi (Janoschka and Haas, 2013). For example,
Terrorist group attacked on oberai hotel and central railway station of Mumbai in 2008. Many
national and international citizens assassinated in the attack. So, terrorist issues also affect the
frequency of visitors in India (All posts tagged 26/11 Mumbai attacks, 2008).
Health and safety issues
Health and safety reasons are the most severe issues in the country. Many citizens and
foreigners are injured and died in the nation every year. It creates problems for visitors who are
come to visit new tourist destinations in the India (Isaac and Çakmak, 2014). For example, Swine
flu is viral disease which produced many complexities for national and foreign tourists regarding
health and safety in the major cities of India. Due to Swine flu disease, many people were
infected and died in the nation. As per the data, Union health ministry of India calculated 322
death in Gujarat state in 2015. In addition to this, 321 death occurred due to infection of Swine
flu in the Rajasthan state which increased so much health and security issues in India (Test
Positive for Swine Flu, 2015).
Task 2
2.1 Discussing current trends influencing change in the travel and tourism
There are many changes occurred in the trends which create so much impact on the travel
and tourism sector of India. Indian government tries to develop heritage and cultural tourism,
adventures and hotels for effective improvement in the nation.
Heritage and cultural tourism: Indian government emphasizes to improve its heritage and
cultural sector. They renovate ancient temples, forts and museum to improve travel and tourism
industry in India (Hall and Page, 2014). For example, they repair and maintain forts like fort of
Aamer, Jaigarh and other heritage places in a regular time intervals for attracting many national
and international visitors at heritages locations. This trends also increases the income and profit
of tourism sector in the India.

Improvement in Hospitality sector: Indian government tries to develop hospitality sector
at tourist places of India. Better hospitality services contribute an effective role in increasing
number of visitors at various tourist locations of India (Timothy, 2014). For example, Indian
travelling authorities also develop many hotels and resorts at various tourist locations like Jaipur,
Shimla and Mumbai to increase frequency of visitors in the India. These current trends provide
effective opportunity to earn better income and revenue from all types of tourists in India.
Adventure tourism: This is a current trend which lures many visitors in India. Tourism
authorities are developed many adventure places for better enjoyment and pleasure of national
and foreign visitors in the India (Kennell and Chaperon, 2013). For example, they also encourage
tourist for many adventure like Panji jumping and rafting. These efforts also enhance the number
of local and international visitors as comparison of previous years.
2.2 Assessing how these trends impact the change in term of the type of visitors and their
numbers
Generally, these trends create positive impact to increase the numbers of national and
international visitors in the India. It is represented in below diagram.
Illustration 1: International
Tourist Arrivals (millions)

(Source: Current tourism trends in India, 2015)
As per the above diagram, figure states that numbers of tourists were increased in 1995 to
2000 due to focus on changing trends within travel and tourism sector of India. Frequency of
visitors was raised by 0.6 percent per year till year of 2000. Then after, Indian government faced
higher fall rate due to inappropriate travel and tourism policies as well as economic instability in
the nation. In order to improve travel and tourism sector, Indian government developed
“Incredible India program” to increase the level of travel and tourism operations in the country.
In addition to this, authorities of Indian Tourism organization focused on development of
heritage, hospitality, adventure as well as green tourism. This process contributed an effective
role for travel and tourism sector to increase in an appropriate manner. It attracted many
international and national visitors which are revealed in a pink and blue line respectively in the
nation. Further, it helped in earning effective revenue and profit from the travel and tourism
industry in India. As per the World trade organization (WTO) forecast, this industry of India will
grow by 8 percent per annum in the world. So, improvement in heritage, hospitality, adventure
and green tourism helps tourism industry to increase its growth in a better way (Current tourism
trends in India, 2015).
Task 3
3.1 Determining how travel and tourism businesses could respond to change
Mainly, Thompson air travel organization can effectively respond to change the
requirement of tourists. Management of firm can use PESTLE analysis to give better response to
the changing needs of visitors.
PESTLE analysis Political and Legal factors- Management of Thompson can analyse political and legal
factors like taxes, tariffs, employee’s health care policies as well as proper safety
regulations in the nation (Sharpley and Stone, 2014). These factors contribute an effective
role for organization to make its proper strategies regarding improvement in travel and
tourism sector which can increase its business in the United Kingdom. Economic factors- Thompson can also measure economic environment of UK. This
aspect covers level of economic stability, inflation and Gross domestic product rates,
currency fluctuation level etc. which help the organization for responding effectively

against the changing needs of its visitors (Kaminski, Benson and Arnold 2013). These
also aid in improving current policies to earn better income from national and
international visitors in the UK. Social factors- Management of Thompson can determine the requirement of visitors, their
life style and trend regarding tourism. These factors contribute an effective role for the
organization to develop better policies for responding effectively towards the altering
requirements of tourists in the travel and tourism sector of UK (Fennell, 2015). Technological factor- Thompson organization can monitor the technological aspects like
network coverage, internet and communication facilities at tourism places etc. With the
help of technological factors, corporation can make its travel and tourism strategies in a
better way which provide huge help to manage its operations and increase its sales of air
tickets in the nation.
 Environment factors- Management of Thomson can measure the climate aspects like loss
of plantation which can harm the environment of nation. This process can help in
developing effective strategies as per the demand of visitors as well as government of UK
(Bramwell, 2015). This way, firm can respond changing requirements of visitors in an
appropriate way.
3.2 Developing strategies on how organization could respond to change
Management of Thompson can develop many strategies as per the changes in travel and
tourism industry. Some of them are described in below paragraph.
Advertisements: Organization can effectively promote its airline services as per the need
of visitors that helps to increase its business in travel and tourism sector. For example,
Thompson can use online media like Facebook, YouTube as well as Twitter to advertise its air
services which can contribute effectively to give proper response to the travellers. Thus,
Thompson can increase its travel and tourism services in an appropriate manner in United
Kingdom.
Tour packages: Management of firm can design proper tour packages as per the current
trend of visitors which can help in responding them in a better way within travel and tourism
industry (Falk and et.al., 2012). For example, trends related to adventure and heritage have

increased in comparison of previous years in the nation. So, management of Thompson can
design its tour and travel package for tourists as per the current situation in the nation.
Campaigns: Organization can conduct campaigns for travel and tourism destinations. Firm
can provide better knowledge to visitors regarding tourism places in the nation (Phillips and
Moutinho, 2014). For example, Thompson can design campaign on the basis of current trends
and needs of visitors. It can provide knowledge about adventure and heritage places of UK which
can help to increase its business in an appropriate manner. This way, corporation can respond in
a better way towards the changing needs of visitors in United Kingdom.
3.3 Justifying strategies for how Thompson firm
As per Cohen, and Cohen (2012), generally, suggested strategies are appropriate for
management of Thompson in the United Kingdom. Such strategies can contribute an effective
role for corporation to increase its business by enhancing the percentage of its market share in
travel and tourism sector (Cohen, and Cohen, 2012). According to Mowforth and Munt (2015),
many visitors utilize Facebook, twitter as well as Youtube in all over the world. So, these
advertisement tactics can effectively create better awareness regarding air services of Thompson.
With the help of such strategies, firm can earn better revenue and income from its tourists in the
United Kingdom (Mowforth and Munt, 2015).
As per the Reisinger (2015), organization focuses on including the factors such as
adventure, heritage and green tourism while providing services to its customers.. So, by
developing proper tour packages, management of Thomson can increase the level of its tourism
services in the nation (Reisinger, 2015). As per Sharpley and Telfer (2014), Thompson
contributes an effective role in travel and tourism sector to increase number of tourists as well as
visitors through providing better services to them in the UK (Sharpley and Telfer, 2014).
According to Hannam, Butler and Paris (2014), Campaigns can help in creating effective
awareness in the mind of tourists regarding tourism places in the United Kingdom. This process
can interact various visitors to visit different types of adventure and heritage places so that
organization can achieve better income by selling air tickets and packages in the market
(Hannam, Butler and Paris, 2014).

Task 4
4.1 Examining how effective were the responses and analyse the impacts on the performance of
the Thompson organisation
Visitors showed positive response on the services of firm in the nation. Travellers got
better knowledge regarding the travel and tourism destinations of UK. Due to this reason,
performance of organisation had been increased as compare to past years in the travel and
tourism sector (Janoschka and Haas, 2013). Management of organisation sold good number of
air tickets due to usage of effective advertisement strategies in front of its consumers in the
nation.
In addition to this, corporation got optimistic response from visitors of nation. Many
consumers added through tour packages for visiting adventure and heritage places in the United
Kingdom. Due to this reason, management of Thompson gained effective market share in the
travel and tourism sector (Hall and Page, 2014). Further, organisation collected good amount of
profit revenue from visitors.
Management of organisation found positive response from its travellers in the travel and
tourism sector. Many types of visitors got effective knowledge regarding the adventure, heritage
and green tourism places in the nation. In addition to this, Thompson also increased its
performance and efficiency in the travel and tourism sector (Isaac and Çakmak, 2014).
Organisation also enhanced its profit percentage by effective selling airline tickets to passengers
in the UK.
4.2 Analysing the consequences of organisation failing to response to the changing needs
Generally, if organisation can give positive response as per the changing needs of visitors
in the travel and tourism sector, then it can get many benefits. Otherwise, enterprise can face
many problems in the market. Following are the problems represented in below paragraph.
As per Timothy (2014), consequences can be higher if organisation fails to give
appropriate response to the changing needs of tourists in the market. Advertisement strategies of
organisation can also create negative impact in mind of visitors which may reduce its market
image in the United Kingdom (Timothy, 2014). Sales of airline tickets can be reduced in
comparison of previous years.

According to Kennell and Chaperon (2013), if organisation cannot fulfil the expectations
of visitors by providing appropriate tour packages, then it can create conflicts between
management of Thompson and tourists which can directly produce negative impact on its travel
and tourism services in the nation (Kennell and Chaperon, 2013). As per the Sharpley and Stone
(2014), organization can also face legal obligations due to mismanagement in travel and tourism
operations (Sharpley and Stone, 2014).
As per Kaminski, Benson and Arnold (2013), if management of Thomson is unable to
give better response against the changing needs of visitors, then it can reduce its market share in
travel and tourism sector of UK which will lead company to the loss in the market (Kaminski,
Benson and Arnold, 2013). On the other hand, organisation can also feel complexities to manage
its general operations at work place. This way, Thompson can disappoint its visitors in travel and
tourism sector (Fennell, 2015).
Conclusion
From the report, it is found that security and taxation issues of India can affect the travel
and tourism operations. Further, terrorist as well as health and safety issues can create negative
impact on the tourism sector. Adventure, heritage and improvement in hospitality sector
contribute an effective role for Indian government to increase frequency of visitors in the nation.
In addition to this, political and legal factors may help Thompson to respond effectively towards
the changing needs of consumers in the United Kingdom. However, it can be concluded that
effective responses of organisational strategies create positive impact on its business in the
nation.

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