Report: Key Developments and Analysis of Travel and Tourism Sector

This report provides a comprehensive overview of the travel and tourism sector. It begins by exploring key historical developments, tracing the industry's evolution from the 16th century to the present day, highlighting milestones in the 19th, 20th, and 21st centuries. The report then delves into the structure of the travel and tourism industry, examining the roles of various components such as visitor attractions, transport providers, accommodation, online travel agents, and tour operators. The analysis includes the significance of each component and their interdependencies. Furthermore, the report investigates the main features affecting tourism demand, considering factors like trade openness, population, and marketing strategies. It also explains how the supply side of the industry has adapted to meet the changing demands, providing a holistic view of the sector's dynamics and challenges.

The Travel and
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explain key historical developments in the travel and tourism sector..................................3
1.2 Explain the structure of the travel and tourism industry.......................................................5
TASK 3............................................................................................................................................7
3.1 Explain the main features affecting tourism demand............................................................7
3.2 Explain how supply has changed to meet the effects of demand. ........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.........................................................................................................................................................1

INTRODUCTION
Travel and tourism sector is part of hospitality industry with one goal and objective that
is to give necessary and desirable services to their consumers. There is a complex relationship
among various dealers in travel and tourism sector they are products of tourism, destination
marketing, operators and agents of travel are main components of that industry. This report is
based on Thomas cook that is leading organisation in travel and tourism sector and also deals in
different sectors such as foreign exchange, corporate and leisure travel, insurance and visa with
passport are main dealings of Thomas cook. This report based on historical developments in
travel industry, features of travel industry and strategies, methods and tools of travel and tourism
sector so that effective results should be achieve. In addition to satisfactory results should be
given to consumers.
TASK 1
1.1 Explain key historical developments in the travel and tourism sector
Tourism sector is an important part of economy which contributes in its development a
lot. Tour and travel ism is ancient industry that develop to serve needs of travellers in world
wide. Services and tourism go simultaneously (Baka, 2016). Tourism sector for long time remain
fragmented and desperate, but after that it develops and continue to grow and become mature.
There are many historical developments that occurs in 19th, 20th and 21st century that are
significant steps of development of travel and tourism sector and that are as follows:
Before 1945
In olden days at end of 16th century masses devote their most time in agriculture and
remain stationary, visit local places. In beginning of 18th century only rich or elite class people
often spend leisure in travel and tourism. Before 1950s that industry inconsistent in nature and all
its supporting factors works isolated. Hotels main work to provide facilities of bed nights to their
consumers. Railway with airlines work bifurcated and only work to give seats to consumers to
reach at desired place (Baker, 2014). On other hand travel agents, work to sell travel holidays
independently in travel and tourism sector. Until 1946 that is the period of world wars in that
period lot of travel and tourism encouraged by rich class in society. In that era Thomas cook
introduced its first package of tour and travels in 1841, but at that time also railways offers
excursion trips to their consumers.

1945-1979
it is the period in which actual growth of travel and tourism sector started, there are some
changes that occurs during that period. In mid 1950s the development of tour operators started in
which tour operation activities and their operators started integrate to one another. In that
scenario tour operators analyse that consumer wants different services simultaneously so they
started integrate activities with one another that gives real growth to that sector. In addition to
airlines, railways means transport services integrate with one another to get efficient results.
After 1950s operators in travel and tourism sector integrate and give them in leisure availability,
trend of paid holidays increases, enhancement in tour packages and improvements in
transportations are the key changes that occurs in travel sector that occurs onwards 1950s.
1980 to current:
In 1980s the travel industries provides full packages to consumers with medical services
and cars hiring are services that provided them to fully satisfy their consumer base. There are no.
of big giants originated in that era to give growth and development of that sector. The future of
travel and tourism sector is very prosperous onwards 20th century (Boniface, Cooper and Cooper,
2016). It is a pillar of economic growth of local economies and help in sharing culture and work
activities of other activities.
In travel and tourism industry milestones play a very key role by giving development and
economic stability to country for their development (Mowforth and Munt, 2015). There are
majorly milestones to enhancement of travel ism sector. In 18th century development is very less
behind that many factors such as less economic viability, not much interest of people in
travelling are major reasons. But in 19th century development is on peak new concepts, patterns
of work is adopted and rising interest of people and integration of major dealers in travel industry
are crucial factors that contributes in economic growth and it 20th century major techniques and
tools to further development in that industry. So major developments should be occurs in 19th
century that proved path in economic development.
Milestones of 19,20 and 21st century
18 century to 19 century Industrial revolution increase due to
technological advancement and that make
travel and trade more efficient and increase
personal income for an individual and industry.

19 century In 19 century some major changes occurs that
enhance travel industry that are in 1903 Wright
brothers invents aircraft and in 1913
Westinghouse corporation institute start paid
vacations for their workforce. In 1919 the first
schedule of airline passenger flight debuts
between London and Paris. In 1945 second
world war ends up and new era begins with
prosperity and give rise of million of people
that give time, money and interest. So all these
are the major milestones of 19 century.
20 century In 2000 trip advisor is founded. In 2001 Dennis
tito launches the space tourism. In 2004 Mark
Zuckerberg launches social networking sight
Facebook. In 2011 google gives an online
flight booking services that are major
milestones of 20 century.
1.2 Explain the structure of the travel and tourism industry
Travel and tourism sector plays main role in economic development and advancement in
that structure of travel industry is very important. In structure of travel and tourism industry its
functions, aspects and components are very important to understand its effectiveness in economy
(Dickinson and et.al,. 2014). In travel and tourism sector main components are as follows that
are main components of structure.
Visitors attractions:
Attractions are two types in world that are man made and natural that attracts visitors to
spend their time. In natural attractions includes Lake district and Blackpool beach that are main
visiting place for visitors. In artificial or man made attractions includes Alton towers that are hub

of large no. of tourist every year (Structure of the travel and tourism industry, 2016). So it
become a important part of economic development in travel and tourism sector.
Transport providers:
In travel and tourism sector transportation plays a key role. In UK consumers demands
high standard of tourism and their related facilities. In rail network involves various competitors
that work in private organisation such as Virgin, Eurostar are private players that give their
services to enhancement of travel and tourism sector (Forno and Garibaldi, 2015). So expansion
of tourism sector play a significant role in travel industry.
Accommodation and catering services are very important in travel and tourism sector in that
consist of hotels, beverages and catering services to give full and pleasant experience to
consumers. In recent world self services trends has grown in popularity and catering also gives
delighted services to their consumers.
Online travel agents:
There is increasing no. of travel agents that provides services to consumers by giving
online services through online mode. They give opportunities to their consumers to choose trips
according to their accommodation and transportation option that vary from customer to customer
and their budgets. There are many options and websites that give benefits to consumers such as
Booking.com, make my trip etc. which working in that field. These travel agents get popularity
in these days due to they provide comfortability, suitability and access to large world. It gives
discounts and low cost travelling options to their customers and select packages according to
them. It is beneficial for tour operators because it saves infrastructure cost for them and reduce
competition level also.
Tour operators:
Tour operators plays a crucial role in travel and tourism industry by providing facilities in
form of whole packages of tours. Buying packages in bulk reduces cost and increase credibility
of consumers. Brochure presented by travel agents to their customers and then sell to them
through direct or via agents (Ghimire, 2013). There are different types of tour operators in travel
and tourism industry that work to provide facilities to their customers.
Travel agents:
Travel agents are important part of travel and tourism industry to give information and
advice to their clients and book orders. Tour operators work in different fields by offering flight

services, ferry bookings and hiring of cars and provide insurance to their clients. Thus they work
as distributors of products and services. They work to putting all efforts and tour packages in
one package and give all facilities to their consumers. In today scenario role of travel agents
declines.
There is a close relationship among these departments of travel and tourism sector by completing
businesses of each other. In travel and tourism sector whole activities depends on each other for
proper functioning of them. In that sector different departments have to rely on each other such
as transportation sector have to depend on tour operators to give all facilities to consumers so
that fully satisfied and avail all benefits under one roof (Meyer,2013). So tour operators contact
with each other to give a complete tour package to their customers and there business not achieve
their objectives until they all not connect with each other.
TASK 3
3.1 Explain the main features affecting tourism demand
Tourism demand is main and important factor in growth of travel and tourism sector that
tourism motivated. Tourism sector inflow by many factors including economic, social and
technological factors. In non economic variables includes country attractiveness, effects of war
and terrorism. In economic and non economic variables of tourism demand includes:
Trade openness:
In trade openness includes outward and inward orientation of countries economy that
contributes in economic development. In outward orientation includes that country which take
advantage of opportunities that available on other countries easily. Trade openness includes to
avail opportunities that available on other countries easily. So countries have to take advantage
of available opportunities. In Thomas cook they avail opportunities and take advantage of that.
Countries and government have to provide liberty to visit other countries.
Population:
Population is an important factor to determine consumer demand and their satisfactory
level in Thomas cook. It has considered that if population of country is high then tourist ratio is
also high, country is able to generate more tourist (Hudson and Thal, 2013). There are certain
correlations among factors that describes about demand of consumers that are income, per capita

income of consumes and living standard of consumers. Hence tourism demand is a significant
and also common path of that reflect tourism demand.
Marketing:
In order to increase demand of tourism among consumers there is need to proper
promotion of tour and travel industry (Lee and Brahmasrene, 2013). If agencies and government
spends a lot of money on promotion of tour and travel activities then it increase awareness
among consumers then it directly and indirectly increase level of economic enhancement in
organisation.
Tourism taste, repeated visits are main attributes of economic and non economic variable of
consumer demand. Consumers spending power,economic viability and per capita income are
main attributes that affects demand of travel and tourism sector in that industry.
Factors that affect tourism demand:
There are majorly two factors that affect demand of tourism that are as follows:
Economic factors:
In economic factors consist of income of the consumers, per capita income, GDP of the
country and infrastructure of the country is majorly very important factors that influence the
tourism industry. In case of Thomas cook they have large consumer base and economically
sound.
non economic factors:
In non economic factors consist of accessibility, conditions of environment and cultural
heritage consist in that category which directly impacts on their profitability level and in case of
Thomas cook they deals in positive background.
Hence these are the major attributes that affect business of travel and adversely affect their
profitability ratio.
3.2 Explain how supply has changed to meet the effects of demand.
In every sphere of world consumer become more demanding and wants changes, it same
happen in travel and tourism sector that changes occurs also in that sector. Travel and tourism
sector is not properly developed in 18th century in that era only rich class people avail travel and
tourism services and they only visit local areas. In that era travel agents, travellers and other
agents works in a isolated form and provide services. But after world war industrial revolution
comes in UK and it frequently changes consumers demand and their expectations also. Also

various agents visualise that integrated services also gives more profit and satisfaction level to
consumers also. So they decide to integrate with each other to give satisfaction to their clients. In
18th century industrial revolution came and its gives tourism industry advancement. The
changing working styles of travel trade rise the economic growth in country and also economic
advancement. People become more travel enchanted and spend time and money on travel and
tourism activities. So they have to frame more integrated plans for tour so that they attracts lots
of consumers. They frame whole tour packages to allure consumer . Visitors attractions also an
important attributes that play a crucial role in travel sector. After 18th century travel attractions
raised day by day and consumer spends lot of time and money on leisure activities. Government
also spends more money on giving experience to their customers so that they economically
viable. Government spends lot of amount on develop artificial places to allure places. Transport
providers have lot of opportunities after 18th century in that period they come Wright brothers
invented aeroplanes that are key component in transport providers and they provide different
services to their consumers that is to providing train tickets and other facilities with it is
beneficial for transport providers. They expand there market share continuously to grab large
market share and enhance their economic growth and development. There are mostly two factors
that influence of demand that are ability to spend money with willingness to spend money are
determiners of demand (Meyer, 2013). So it same happen in travel and tourism sector that
consumers afford the tour packages or not. On other hand they are willing to purchase tour
packages or not. So these factors contribute in understanding consumer perspective to evaluate
future demand. In olden days people who are rich enough interest to visit places so there is less
development of tourism sector in old days. People only visit local areas that are another factor
that impacts on tourism development. There are many other factors that affect demand of tourism
sector in which includes disposable income of consumers, availability of time, variation in
demographic composition of society. There are many facilities that connected with that sector is
proper kind of accommodation, reliable transportation and infrastructure. Proper market
segmentation that brings effective results in tourism sector and marketing and advertisements are
also important determiners that helps to reach at right consumer base(Mowforth and Munt,
2015). On other hand supply factor impacts a lot on travel and tourism sector by deliver all
assets, goods and services to customers to giving delighted experiences to customers or visitors.
Tourism sector is mix up of different types of attraction that give shape to tourism sector. In

tourism supply consist of resources that are both natural and man made that helps to attract
consumers and infrastructure require to supply tourism experiences in which includes
telecommunication, accommodation with transportation(Munoz-Leiva, Hernández-Méndez, and
Sánchez-Fernández, 2012). Supply of tourism is difficult task because there have to amalgamate
different activities in one scenario. Travel and tourism sector in which services and deliverables
can not examine before purchase it. So there should balance between demand and supply factors
in that sector so that effective results should be achieve and large no. of consumers should be
attracted by that industry. Before the end of second world war (1939 – 1945) as per recorded
history, travelling was difficult, expensive and uncomfortable also. To increase their journise
they require strong motivators. From the last 150 years and at the end of second world war travel
become less affordable and difficult and people are primarily confined to Europe, north America
and other small locations but after the end of second world war wealthy minorities had time and
money to afford long distance sea. The phenomenon behind travelling changes now people travel
for pleasure. People previously travel through walked or rode domesticated animals but after that
technology become advance and they use wheels and sail as new mode of transportation. That
increase the demand of tourism that is best indicator of economic growth and enhancement.
CONCLUSION
From the above report it has been concluded that travel and tourism industry is an
important attribute in economic development of country. In travel and tourism industry changes
and development occurs from many centuries that proved success path of travel and tourism
industry. There are important functions of travel and tourism sector that gives it goals and
objectives to achieve them in proper manner. Structure of that sector in that important sectors
food and beverages, travel and tourism includes that complete travel and tourism sector. In 19th
century all factors integrate and work as a unit that helps to achieve stability and satisfaction
level to consumers.

REFERENCES
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Online

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