Travel and Tourism Industry Analysis: Trends, Factors, and Impact

This report provides a comprehensive analysis of the travel and tourism industry, covering its historical development, key milestones, and current trends. The report examines the elements that create a tourist experience, differentiating between direct and indirect factors and their interrelation. It delves into the factors influencing tourism behavior, including geographical and social factors, and their impact on the decision-making process. Furthermore, the report explores models of motivation and their influence on consumer choices. It identifies recent and emerging patterns and trends in the international travel and tourism industry and analyzes the factors affecting the popularity of various global destinations. The report aims to provide a holistic understanding of the industry's complexities and future directions.

Travel and Tourism
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 key milestones in development and how they shaped travel and tourism industry...............3
..........................................................................................................6
P2 Elements of travel and tourism industry and their interrelation create tourist experience....6
TASK 2............................................................................................................................................8
P3 Determining different factors affecting tourism behaviour and its impact on decision
making process............................................................................................................................8
P4 Explain the models of motivation and how they influence the consumer decision making
process.........................................................................................................................................9
TASK 3..........................................................................................................................................10
P5 Identify recent and emerging patterns and trends in the international travel and tourism
industry......................................................................................................................................10
TASK 4..........................................................................................................................................11
P6 Factors affecting popularity of range of global destination.................................................11
CONCLUSION..............................................................................................................................12
REFERENCES.............................................................................................................................13

INTRODUCTION
Now a days, travel and tourism sectors plays very important role in an economy as it
become one of the fastest and leading industry across the whole world. Also, this aids society to
enhance their standard of living and turn into developing economy. Along with this, travel and
tourism sector means to develop an economy and provide information regarding different
cultures to people who are moving from one place to another either they are going for
professional purpose or personal purpose (Cole, 2015). In this project contains many challenges
which belongs to the both positive and negative impacts on economy in context to developing
industry. In context to this present report includes various topics such as to discuss about the key
milestones for overall development in travel and tourism industry by characterising various
elements of this sector. Furthermore, explain models of motivation and determine how it
influence the consumer decision-making process . At the end, it going to be discussed about
present and future patterns and trends in both tourism industry and international travel.
Simultaneously, to analyse factors which are affecting the popularity of a range of global
dimensions.
TASK 1
Key milestones in development and how they shaped travel and tourism industry
Travel and tourism sector is a crucial part of an economy as it contributing towards
overall development and growth of an economy (Blanchard, Visintainer and La Rochelle, 2015).
The main motive of this sector is to provide various opportunities and enhance standard of living
of people. Along with this, it includes various historical and key mile stone which occurs within
19th , 20th and 21st century. As this tourism and travel sector are moving towards by the motive of
overall development of an economy. There are various steps of it which are discussed below:
Before 1945: In the 16th century people gives their precious time in agricultural sector
and visit in local areas. After that, starting of 18th century, people are becoming richest and elite
class who spend their time especially in travel and tourism sector. In addition to this, before
1950s travel and tourism sector are becoming leading industry as people are supporting them
and get various opportunities from as they believe that this sector enhance their growth and
develop them in an appropriate manner. Along with this, the objective of this sector is to offer
various facilities like laundry system, food & beverages and accommodation to their potential

customers. Also, travelling agents offer various tour and travel package to their customer's at
reasonable price.
Mid (1945 to 1979): This duration is an actual time period in which travel and tourism sector are
growing. Also, in this mid duration they face many challenges which affects the growth and
development of an economy (Greene, 2017). Along with this, travel and tourism sector are
maintaining their relations with other tour operator for expanding their business at global level.
Both railways and airlines industries also moving towards travel and tourism sector.
Current(1980) : Now, at this stage travel and tourism sector is one of the leading sector
in whole world and it attract various people towards their business by proving many offers to
their customers such as car on rent, medical services and other services for satisfying their
customers effectively (Guriță, 2015).Along with this, travel and tourism sector develops country
for maintaining their growth and sustainability at market place. Simultaneously, this is
considered as a pillar of success as it generating values in people and adoption different culture,
ethics in order to gain competitive advantage.
Key milestones in travel and tourism industry in different sector of time are as follows:
Period Why individuals
travel/purpose
Travel agent usual
distance travel
Destination
1600 In this duration
individuals use travel
for specific purpose
i.e., business and
religious.
No Mostly, Citizenry
used to travel from
seas and also by cart in
domestic area.

1800 In this period of time,
people love to travel
travel for spending
their time with their
loved ones.
No Their mode of
transportation was was
bullock cart, ship
house cart and so on.
1900
In this era the aim of
people is to explore
something new or
unique and for
enjoyment or
entertainment purpose
(Karolak, 2017).
Yes In this period people
use canals, steam
boats, aeroplanes,
billboard, roads and
many more for
travelling in both
domestic and
international country
in order to explore
different places and
things.
2000 Now. At this stage,
people are going with
their friends and
families for making
memories and also it
may be personal or
professional.
Yes The source of travel of
people are cars, bikes,
aeroplanes, trains,
ships, buses and so on.

As per the above mentioned table, it has been observed that travel and tourism sector are
very important for people because this is a way through which they can spend their precious time
with each other , explore new place and learn new things. It may be used for both professional
and personal purpose. Along with this, they also offer various facilities such as food, vehicle in
rest, and many more for satisfying customers need and demand effectively. On the other hand, if
this sector not satisfied their customers then it will creates its negative image in front of their
customers and market place (Kugler and Turvey, 2015). Also, it is a way through which they
generate competition in the market by offering good quality of product and services among
customers. Except from this there are various other sectors which are given as below:-
From the above drawn chart, it has been described that to define every sectors of travel and
tourism which are useful for an individual at the time of travelling and enjoying their precious
time in an effective manner (Lewis-Cameron and Ramgulam, 2019).
Different sectors
Entertainment
This is a mode by which
people can entertain
themselves or others like
playing casino,live music,
theatre shows and so on.
Informational
It means to provide information about
Every sectors to their customers.
Accommodation
It is related to facilities which is offered by the companies
to their potential customers like hotels, motels and inns.
Transportation
This is a way by which people can go from one
Place to another and its includes bus, airlines
And ships.

Elements of travel and tourism industry and their interrelation create tourist experience
This travel and tourism sector create competition at market place and develop economy
in an accurate way. Along with this, it is necessary for industries to bring some changes in their
product and services according to the need and requirement of customer's with the motive of
satisfying customer's demand. In addition to this, it includes tow elements which plays very
important role in travel and tourism sector (Marek, Brock and Savla, 2015) Furthermore, these
tow elements are described as below:-
Direct elements: In this element includes various activities which are directly related
with a travel and tourism sector such as transportation, accommodation and many more. Along
with this, it plays crucial role in this sector as it is related with basic facilities by which people
can attract towards it and moves from one place to another place.
Indirect elements: This element refereed by which people travel and tourism sector
attract more customers towards their industry. This is because it belong to communicable
facilities, electricity, ATM facilities and many more by which they create unique image inform
of customers mind and maintain their sustainability for longer period of time. In reference to this,
travel and tourism sector generate valuable thinking in customers mind as they offer them
various facilities by which they can feel comfortable and stay pleasantly in their journey.
For example: when any individual or group of individuals plan for trip in city of
Switzerland then they will contact with best travel and tourism sector and analyse the facilities of
it such as accommodation, travelling simultaneously, food and beverages in order to full=dill
customers demand and requirement (Puffer and et. al., 2015).
Interrelation of such factors in order to create tourist experience in this sector are determined
below:
Both internal elements and external elements are interrelated with each other and also it
create crucial impact on travel and tourism sector. The motive of this sector is to satisfying
customer need or and requirement or provide them better experiences by using this elements.
Along with this, they provide various benefits or offers which is related to tour packages as this
aids people to prepare an appropriate budget. Also, this aids an organisation to give proper
knowledge and information of travel and tourism sector that individual can learn about their
practices and make good experiences. Simultaneously, it will create a good image in front of
customers mind for maintaining its position and sustainability at market place for longer period

of time in an effective manner. Mostly, people prefer those place whose are in their budget so
that they can make good memories or experience by their journey. On the other hand, if any of
the elements are not fulfil an expectations of their customers need then it will create a negative
image or decrease their value in customers mind (Ramos, Dionísio and Pereira, 2018). Along
with this, it directly affects on their goodwill or image of the company. Simultaneously, then
company will not be able to meet their aims or objectives and not maintain their sustainability for
longer period of time. So, it is necessary for an organisation to use both direct and indirect
elements for providing best services and for maintaining better experiences among customers in
order to gain competitive advantage. Also, this process aids companies to attracts large number
of customers towards their travel and tourism sector and enhance their productivity and
profitability effectively.
TASK 2
Determining different factors affecting tourism behaviour and its impact on decision making
process
In travel and tourism includes various sector which directly affects the tourism behaviour
in order to achieve their goals and objectives effectively at market place. There are many factors
by which decision making process are effecting and these are given as below:
 Geographical factors: In this geographical factor contains environmental condition and
other amenities which are interconnected with each other. Along with this, both negative
impact and positive impact affects decision making process which is necessary for an
organisation to attain their goals and objectives (Wenyu, 2019).
For example: When individual wants to go for hilly areas but due to bad environmental
condition can change or cancel their trip accordingly. In addition to this, if an individual change
their plan then its effect their decision making process by which it will create negative impact on
country and individual mind.
 Social factors: This factor refers to an individuals taste which are changing according to
their demand and requirement. In context to this, need and requirement of people a4re
changing frequent that are affect travel and tourism industry. Along with this, if an
organisation not fulfil their demand then this will create negative impact on customers
mind and change their decision making process by which they will move towards loss.

For example: It has been analysed that people are frequently change their taste and they
demand something unique or different by which they can enjoy in their trips. Simultaneously,
there are some people who want to travel because they ho in religious place for getting peace.
So, this social factor affect decision-making process (Wolcher, 2016).
 Cultural factor: This factor says about the values of different different cultures by which
people face many problems at the tile of travelling in to another place or country such as
language barriers, different laws and regulations and so on. In this manner, all these
issues create a huge impact on individuals and tourism decision making process.
For example: When an individual make plan for trip of Europe or and they are not
aware about their customs, languages or so on then it will creates negative impact on their
decision making process. Also, they will not enjoy trip trip effectively because all these issues.
As per the above mentioned factor, it has been analysed that, all the other factors such as
geographical, cultural and social has directly affects their decision making process as their wrong
decision can spoil their precious time or other resources of both individuals and organisation.
Simultaneously, it is necessary for everyone to take right decision after the whole market
analysis because it will be better for both organisation and individuals.
Explain the models of motivation and how they influence the consumer decision making process
Motivation plays a very important role in the success of any organisation. Motivation is
required in each and every field for developing a person in an effective manner. There are
different models and theories of motivation adopted in the organisations for making effective
decisions (Puffer and et. al., 2015). The most common motivation theory model is the Maslow's
model and according to this there are some basic requirements of individuals. This model is
described below-
Physiological needs- These are those needs which are biological needs essential for an
individual for his survival. These needs includes clothes, air, food, shelter etc. The travel and
tourism takes care of the basic requirements and needs of the tourists and these include good
accommodation, healthy food, fresh air, luxury travel, etc. It is advisable for travel and tourism
industry to give these basic facilities to individuals in an appropriate manner. This builds trust
and healthy relationship between customers or clients and company.
Safety needs- Safety needs are the protection factors like security, laws and norms,
freedom, stability, fear and freedom, etc. The travel organisations provide security and safety to

potential customers. The management takes special care that tourists can enjoy their stay during
the travel and stay. The basic duty of the travel and tourism agencies is protect tourists from any
danger or harm like theft, robbery, etc.
Love and belongingness- Love and belongingness is an essential part of human nature.
In the case of tourists and travel companies if an individual experiences a good stay and travel
(Lewis-Cameron and Ramgulam, 2019). Then this helps in enhancing love and belongingness
among these individuals. This helps to take effective decisions and encouraging people to travel
and visit the tourist places.
Esteem needs- These are the needs which are related to status symbol of the individual
in the society. If the tourists are treated well and they are respected during their journey then a
person feel comfortable and safe and this increases the work efficiency of travel and tourism
agencies.
Self actualisation needs: These need says that it is necessary for both managers and
agents to provide about an information regarding their budget, tour and travelling packages or
any other offers to their customers so that they can make their plan accordingly. Along with this,
manager is responsible for all the process by which their customers can change their decision of
their trip (Kugler and Turvey, 2015). In this manner, manager of an organisation can provide
information about their services and create a positive impact on customer's mind so that they will
visit again and enhance their brand position at market place. Also, it will attract more customers
and retain old customers for longer period of time.
TASK 3
Identify recent and emerging patterns and trends in the international travel and tourism industry
Now a days, travel and tourism sector is a leading industry across the world and it enhance
standard of living by which both economy and individual are develop. In context to this, there
are various emerging trends and patters in international travel and tourism industry are given as
below:-
Last minute booking: In present era, travel and tourism sector plays crucial role in an economy
as they provide various offers or an attractive facilities on their websites by which customers are
attracting towards and book their tickets on last minute.

For example: When an individual is planning to travel Edinburgh with their family
members on short duration of time then they will book by the help of travel and tourism websites
as they offer them various befits and packages (Karolak, 2017).
Ecological and educational tours: In this context, mostly students can visit for the purpose of
enjoyment and enhancing their knowledge trough trips.
For example: Edinburgh is a very beautiful place by which can enjoy their thing and
learn something through exploring and enhance their knowledge accordingly. Along with this, it
will influence an individual for visiting new places as it helps them to gain knowledge and enjoy
such places effectively.
Solo travel: In toady's context, people love to travel alone because they want some break from
their working schedule or peace in their life. Along with this, solo travel usually prefer those
people who are frustrated from their busy schedule and this type of travel aids them to take a
chance for making new experiences and memory in an effective manner (Greene, 2017).
For example: Now, it is easy for an individual to get information regarding travel and
make their own trip accordingly. So, that they can spend their time and explore the new thing by
the help of travel and tourism industry. Also, this sector also provides various offers on solo trip
which motivates an individual to make their solo trip as it is attractive as well as cheaper in price.
TASK 4
Factors affecting popularity of range of global destination
In travel and tourism sector there are various factors which are effecting an economy in a
positive manner and aids organisation to expand their business at global level by increasing
demand. Along with this, many of the factors are given as below:
Economic factors: This factor says about the financial condition of both organisation as
well as country. Mostly, those people can travel who have good amount of finance as it will easy
for them to explore different different thing in various countries. For example, Edinburgh is a
place which are situated in United Kingdom, this place provide good facilities to their customers
such as accommodation ,transportation, and many other facilities by which they will
comfortable or enjoy their trip. Their main motive is to satisfy their customers so they will make
more plan for visiting its gain and again simultaneously, if particular country not satisfy their
customers then, it will create negative impact on customer mind about the country.

Social factor: It contains norms, values, custom, attitudes, lifestyle and demographic
characteristics (Guriță, 2015). In addition to this, there are various countries like UK, Australia
and many more have largest hub for travellers as it attract people for visiting their places
because this will helps for enhancing knowledge, exploring things and so on.
Political factor: This factor contain governmental rules and regulations, political
stability and instability, tax policy, and many more. Political factor can about the overall
development and growth of an economy. Along with this, it is important of both organisation and
country to develop travel and tourism sector in order to gain profitability. If government helps
people for making travel and tourism industry then it will create positive impact in customers
mind and attract people towards it by which economy can move towards development and
growth in an effective manner.
Reason why many different destinations are trending
 It attracts people to visit the new places and highlight culture to learn and generate the
knowledge.
 Marketing and Promotion is an element by which customers get various information and
influence the people to make destination decision in effective manner.
 Travel companies provides various offers and benefits on travelling packages which
develop an interest in people.
CONCLUSION
As per the above mentioned report, it has been concluded that, in present era travel and
tourism sectors plays crucial role and by the help of this, it develop both individuals and
economy in an effective manner. From the above report it has been examined that key mile
stones bring various opportunity by which this sector can improves their decision making
process. Also, both indirect and direct element interconnected with tourism sector by the motive
of satisfying customers. Apart from this, there are various other factor which are emerging trends
and pattern in travel and tourism sector. Lastly, different factor such as social, cultural, political
and geographical affecting popularity of range of global destination.

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