Comprehensive Report: Contemporary Issues in Travel and Tourism

This report delves into the contemporary issues shaping the travel and tourism sector, focusing on the UK market. It examines factors driving change, such as emerging markets, economic activity, and terrorism, and analyzes current trends like inbound/outbound tourism, eco-tourism, and sport tourism. The report employs various methods, including PEST analysis, to assess these issues and trends. It explores how travel and tourism businesses can respond to these changes, offering strategic insights and justification for those strategies. The report also assesses the impact of these issues and trends, along with the consequences of businesses failing to adapt to market changes. Overall, the report provides a comprehensive overview of the challenges and opportunities within the travel and tourism industry.

Contemporary Issues in
Travel and Tourism
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TABLE OF CONTENTS
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Issues currently driving change in the travel and tourism sector...........................................3
1.2 Current issues identified by using appropriate methods and resources.................................4
TASK 2............................................................................................................................................5
2.1 Current trends influencing change in travel and tourism sector............................................5
2.2 Analyse current trends using appropriate techniques and resources.....................................5
TASK 3............................................................................................................................................6
3.1 How travel and tourism businesses could respond to change................................................6
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
.....................................................................................................................................................8
3.3 Justification of strategies.......................................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of issues and trends that drive change in travel and tourism sector...........................9
4.2 Consequences of businesses failing to respond to market changes.....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Presently, travel and tourism sector is considered as a highly volatile industry that
supports the economy in generating revenue that in turn will assist government in developing
various travel destinations so that leisure travellers may get attracted towards it (Hall, 2013). The
travel and tourism industry is highly dependent upon the business and leisure travellers that
prefer to visit different destinations. The present report focuses on understanding and analysing
different issues that are facing by the tourist destination like London. Furthermore, the study also
assists in understanding and examining the ways through which industry can overcome those
issues through enabling strategic development. Lastly, the report will also study the impact and
effect of various issues and challenges that drive changes within the travel and tourism sector.
TASK 1
1.1 Issues currently driving change in the travel and tourism sector
Travel and tourism sector plays a vital role within the economy as it is an effective sector
that drives and boosts the growth and development of country. Therefore, government in the
country generally focuses on different ways through which they can easily promote and develop
this industry so that it may attract various leisure travellers as well as business class foreigners
towards the country. As per the existing survey, UK is among the list of top ten tourist
destinations within the world as it generally focuses on inbound tourism that mainly attracts
different travellers and visitors towards the destination (Travel and Tourism, 2014). Within the
UK economy, London is the most preferable leading destination that attracts large mass of
visitors and travellers as such destination includes large number of attractive places and
museums. It has been analysed that in the year 2011, London attracted around 15.3 million
international travellers towards their places and travellers spend around £9.4 billion in the
London. Furthermore, in the year 2013, tourist destination attracted 16.8 million visitors towards
their place that was 1.5 million more than the past year data (Evans, Stonehouse and Campbell,
2012).
With the increasing trends within the travel and tourism industry, there are different
issues present in the marketplace that constantly drive changes and modifications in the travel
and tourism sector. Different issues are identified as follows:
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 Emergence of new markets- Increase in the growth of travel and tourism market plays a
vital role in enhancing the demand of business travellers and tourists. This may also act
as a major issue within the sector as London generally possesses rich heritage and
cultural aspect but tourists prefer to visit new destination that offers new services and
attractive points. Therefore, Emergence of new markets acts as a key issue that drives
changes in travel and tourism sector (Lew, Hall and Timothy, 2008). such as, introducing
Olympics stadium in Stratford as well as increasing popularity of British museum and
rich heritage places is gaining significant pace that support the organization to target the
new customers in the market.
 Economic activity- Another issue that affects and drives changes within the travel and
tourism sector includes changing condition within the economy. For instance, with the
alteration in taxation policy, it will result in imposing higher tax rate within the sector
that will put its impact on the demand of customers within the travel and tourism sector.
However, it will also result in restricting the domestic tourists and visitors to spend more
amount on the leisure activities.
 Terrorism- Furthermore, terrorism is considered as a major issue that brings changes in
the activities of travel and tourism industry. Increasing terrorism activities in the tourist
destination will affect the demand of international travellers and visitors to the particular
destination as they will not prefer to visit such places that features high terror activities.
1.2 Current issues identified by using appropriate methods and resources
There are different methods and resources available within the UK economy through
which government can easily analyse and measure the current issues and challenges existing
within the tourist destination that is London. Thus, UK government as well as international
professional bodies will impose certain laws and regulations that will focus on enabling the
smooth running of travel and tourism sector. The UK law has also enforced the proper planning
for taking permission for expanding their business activities of the organization. However, above
identified contemporary issues will heavily impact on the business activities and service delivery
of different organizations which are rendering services within the travel and tourism sector (Witt,
Brooke and Buckley, 2013).
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As per the secondary research that through focusing on books and journals as well as
world tourism report, London is the major tourist destination within the UK economy that
contributes major share in enhancing the development of economy. However, the report has also
measured that there are different issues that impact and affect the travel and tourism industry that
are related to security and technological issues. With the increasing pace of technology,
unauthorized use of customers and travellers data may be a major issue that may lower the
demand of tourists in that particular destination. Although, with the help of survey, organizations
can analyse the impact of changes in the tax rate within the travel and tourism sector as
increment in tax rate will impact the preferences of customers that effect the inbound and
outbound tourism of UK (Travel and Tourism, 2014).
TASK 2
2.1 Current trends influencing change in travel and tourism sector
There are different trends that mainly contribute in changing the travel and tourism sector
as well as it may also result in developing new areas within the tourist destination that in turn
will attract large number of visitors and tourists. In order to gain pleasant and leisure experience,
travellers select new destination across the world. Different contemporary trends that influence
the change within the travel and tourism sector are as follows: Inbound and outbound tourism: The foremost trend that influences the travel and
tourism sector to make changes continuously includes inbound and outbound tourism.
UK economy generally focuses on inbound tourism that mainly contributes within the
country. Furthermore, the current trend in outbound tourism will also influence the travel
and tourism sector to modify its services for increasing the demand of tourists and
visitors towards their destination (The History of British Tourism, 2014). Eco-tourism: Another key trend that leads to change in the travel and tourism sector
includes eco-tourism. In the present scenario, with the increase in sustainable tourism,
many tourist destinations are focusing on ensuring eco-tourism through conserving and
preserving the environment and natural places. However, with the increasing concern
towards the environment and carbon foot print, UK economy generally focuses on the
current trend related to eco-tourism (14 Tourism Trends That Will Change The Way You
Think About Your Career, 2012).
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 Sport Tourism: Another trend that results change within the travel and tourism sector
includes emergence of sport tourism. For instance, in 2012, London has hosted the
Olympic that resulted in attracting large number of tourists and travellers towards the
destination. Thus, hosting or sponsoring the sport events will result in changing the travel
and tourism sector.
Number of foreign visitors Country
1,74,000 Ireland
80,000 Norway
61,000 United States
54,000 Spain
48,000 Germany (900,000 football-watching visitors
spend £706 million while in Britain, 2012)
2.2 Analyse current trends using appropriate techniques and resources
From the above measured current trends, sport tourism is considered as the most essential
trend within the travel and tourism sector that focuses on increasing the number of visitors and
tourists within the London. From the different sources and research carried out by VisitBritan, it
has measured that around 30 million travellers and tourists visit England and UK every year.
Therefore, the total revenue earned by the sport tourism within England was estimated around
£2.3 billion. However, as per the survey, it has been estimated that sponsoring or hosting event
within the London is beneficial in increasing the rate of tourists and travellers. It has also
calculated that around £900 is being spent by the travellers and visitors for the trip. However, the
Rugby world cup, Olympics as well as FIFA world cup are the most anticipated matches for the
tourists that also contribute in promoting and encouraging the UK tourism in the world
(Contemporary issues in hospitality and tourism, 2013).
Thee are qualitative technique through which company can easily identify the current
trends from the national statistics, the collected information and data reveal that enabling sport
tourism attracts domestic as well as international travellers to visit the destination. It has also
measured that in 2011 around 1.3 million people has spent £1.1 billion for the live sport event.
However, supporting the football league and hosting the sport events in London play a
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significant role in enhancing the number of visitors to the country. It has also been studied that
there are large number of international tourists and visitors who have visited UK in 2011 for
watching the live football event. Another appropriate technique that support in analysing the
current trends include focusing on surveys as well as taking review from the customers and
visitors regarding the tourist destination. Therefore, with the help of taking survey from the
customers they can easily identify and measures the current trends that keep attract their
customers towards the tourist destination.
TASK 3
3.1 How travel and tourism businesses could respond to change
There are different factors existing in the external environment that often results in
arising the situation of change within the travel and tourism sector. Thus, it will directly affect
the different travel and tourism businesses to respond with the change so that they can sustain
effectively in the market. Conducting PEST analysis of UK will result in analysing different
external factors that directly impact the travel and tourism sector (Vrana and Zafiropoulos,
2010).
PEST analysis of UK
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Political factor Economical factor Social factor Technological factor
 UK has stable
political
environment
that supports in
developing the
travel and
tourism sector.
 UK also
possesses
higher tax
rates.
 In the past year
2011, interest
rate was 12%
that reduced to
10% in the
year 2013.
 Constant
development in
transportation
and
infrastructure
facilities.
 Accessibility
of low value
travel services
and products
(Tripathi,
Choudhary and
Agrawal,
2010).
 UK features
rich heritage
and cultural
aspects.
 UK has
reduced
inequality in
the wealth
distribution.
 Changes in the
demand and
preference of
customers also
affect the travel
and tourism
sector of UK.
 For improving
and developing
the level of
technology,
government is
constantly
funding to the
organizations
that results in
constant
development.
 Technological
factor has also
changed the
way of
operations as
travel operators
are focusing on
booking tickets
via using
internet
services.
Therefore, from the above PEST analysis, it has been assessed that travel and tourism
businesses should properly respond to the certain changes in an effective manner (Swarbrooke
and Horner, 2012). For instance; UK government focuses on higher tax rate therefore, tour
operators such as Thomas Cook, Thomson operating within the UK must determine tax rate
while formulating or designing the holiday packages for the visitors and travellers. Furthermore,
higher the tax rate will result in increasing the budget of overall package. Another example
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includes changes in the demand and preferences of customers as well as visitors. In order to
respond with this, tour operator will focus on determining the current demand of customers and
plan the package according to their requirements so that they can easily react towards the change
(Dickinson and Lumsdon, 2010).
3.2 Develop strategies on how selected travel and tourism businesses could respond to change
In order to improve the business practices and respond to the change effectively, there are
different strategies that must be used by travel and tourism businesses. For instance: in the case
of changing demand and preferences of the visitors and customers, tour operator such as Thomas
Cook within the UK must focus on creating new travel products and services according to their
requirements. In the present scenario, visitors select the places and destinations that are based on
eco-tourism and deliver pleasant and leisure stay to the visitors (Blanke and Chiesa, 2013).
Therefore, to respond with the changing need and demand of customers, tour operator must
create and design new travel products and services to attract large number of customers and
visitors.
Another strategy that could be opted by tour operators such as Thomas Cook, Thomson
etc. is related to focus on marketing practices effectively so that they can meet the changing
demand of customers. Devising effective marketing strategy for promoting the travel products
and services is considered as an effective way that supports in developing the brand image of
travel businesses in the marketplace.
In order to respond the change within travel and tourism businesses they must focuses on
market development strategies that will assist the business to target the new market and
satisfying the needs and requirement of the new market customers. Furthermore, with the help of
market development strategies travel and tourism businesses could easily meet the current trends
and requirement of the new customers.
In addition to this, another strategy that support the businesses in responding the change
include focuses on effective marketing plan that will generally focuses on devising short and
long term marketing goals. However it will also focuses on devising the objectives and mission
statement of company that support them in responding the change in the effectual manner.
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3.3 Justification of strategies
Strategies that have been developed by the travel and tourism businesses for responding
to the change are effective as these strategies support tour operators to successful adopt the
changes within their operations (Kaminski, Benson and Arnold, 2013). Thus, it also result in
attracting large number of visitors and tourists to purchase products and services related to travel
and tourism.
The foremost strategy that is used by the businesses such as Thomas Cook, Thomson
includes creating new products and services that will meet the changing needs and preferences of
visitors and customers. However, the demand and preferences of visitors keep on changing with
the contemporary trends in the sector. Now a days, customers prefer to visit the places and
destinations that are focused on eco-tourism (Smith, 2014). Therefore, it will be beneficial for
tour operator to create and design tour packages according to the demand of customers.
However, creating new travel products by tour operator will result in successfully cope up with
the higher tax rate set by the UK government. As a result, tour operator will design and create the
affordable tour packages for the customers in order to render leisure and pleasant experience
(Hall, 2013). Furthermore, with the help of selecting effective marketing strategy, tour operator
can easily respond with the certain changes. In the current scenario, using social media sites is
considered as an effective strategy that attracts large volume of customers and visitors.
TASK 4
4.1 Impact of issues and trends that drive change in travel and tourism sector
There are different issues and trends existing in the marketplace that constantly drive
changes within the travel and tourism sector and further impact the businesses operating within
the industry (Kim and Ritchie, 2014). Different issues and trends that drive change within such
sector are as follows-
 Merger & acquisition- The foremost trend that drives changes within the travel and
tourism sector is related to make changes in business structure by introducing merger and
acquisition. For instance: merger of tour operator with the hospitality organization is an
effective trend that focuses on bringing constant changes in the sector. By using such
technique, tour operator will plan and create holiday packages by including all the
services related to accommodation and food along with its charges that will be affordable
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for the customers and visitors (Hannam, Butler and Paris, 2014). Therefore, initiating
merger and acquisition within the travel and tourism sector will also lower and cut down
the additional charges.
 Eco-tourism- Another key trend that brings changes in the sector includes emergence of
eco-tourism in the market. London as a tourist destination is mainly concerned and
possesses rich heritage and cultural aspect to attract large number of visitors and tourists
across the globe.
 E-tourism- In the present scenario, constant up-gradation of the technology results in
enabling e-tourism that drives various changes within the sector (Spenceley, 2012). Now
a days, customers prefer to use internet technology for opting services and travel products
by the tour operator operating in the travel and tourism sector. However, tour operators or
hospitality organizations within the sector also adopt different ICT tools and techniques
to serve and deliver services to their customers as well as visitors. Thus, E-tourism trend
in the market will positively impact the organizations and businesses of the sector as it
avoids waiting time for the customers (Sharpley and Telfer, 2014).
4.2 Consequences of businesses failing to respond to market changes
The above trends and issues that drive changes in the travel and tourism sector will affect
positively and negatively to the operations and activities of businesses (Evans, Stonehouse and
Campbell, 2012). In case, if business organization fails to respond to the market changes then, it
may result in arising certain consequences-
 Reducing sales of the travel products- Such consequence arises when businesses within
travel and tourism sector fail to respond the market changes. Further, it may serve as an
outcome in reducing the sales of their travel products and services within the market.
Therefore, if, tour operators such as Thomas Cook fail to respond the changes regarding
changing demand and preferences of the customers, then it may result in decreasing the
sales of hospitality products and tour packages. This in turn may not be available to
attract more number of customers as well as visitors (Lew, Hall and Timothy, 2008).
 Loss in market area- If, tour operators such as Thomas Cook within UK fail to respond
the market changes then as per the consequence, it may result in losing the market area
that they mainly target to serve their products and services. With the increasing trend
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within the travel and tourism sector, the demand of customers also increasing at a fast
pace. Therefore, tour operator must focus on responding to the change by devising and
creating new tour packages. If, in case they are unable to respond the market changes, it
may result in losing their market share.
 Negative image of the business- Another consequence is arisen when organizations
within travel and tourism sector fail to respond to the market changes. This in turn will
result in enabling negative image of the organization as they are incapable of meeting the
demand and requirement of customers as well as visitors (Murphy, 2013). However, to
sustain in the competitive market and getting competitive advantage among the rival
companies, organization must adopt and respond to the changes.
 Change in the attitude- If, businesses within the travel and tourism fail to respond the
market changes then it will result in changing the attitude and behaviour of customers to
whom they serve their travel products and services. Further, if tour operators fail to meet
the demand and preferences of customers as well as visitors then in future, they will not
purchase and acquire their travel services and products (Witt, Brooke and Buckley,
2013).
CONCLUSION
The entire study concludes that travel and tourism industry is highly volatile sector that
contributes major share in growing the economy. Further, the industry also aims to meet the
leisure needs and requirements of the visitors so that they may have pleasant stay within the
destination. Furthermore, the study has also concluded that that there are different issues
existing within the travel and tourism sector that are related to rise and fall in inflation rate,
emergence of new market etc. However, the report also summarizes that there are different
trends existing in the marketplace that constantly drive changes within the travel and tourism
sector that further impact the business activities of organizations operating within the industry.
Different issues and trends include e-tourism, terrorism activities, merger & acquisition etc.
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REFERENCES
Books & Journals
Blanke, J. and Chiesa, T., 2013. The travel & tourism competitiveness report 2013: reducing
barriers to economic growth and job creation. World Economic Forum.
Dickinson, J. E., and Lumsdon, L., 2010. Slow travel and tourism. Earthscan.
Evans, N., Stonehouse, G., and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Hall, C. M., 2013. Wine, food, and tourism marketing. Routledge.
Hannam, K., Butler, G. and Paris, C. M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Kaminski, J., Benson, A. M. and Arnold, D., 2013. Contemporary issues in cultural heritage
tourism. Routledge.
Kim, J. H. and Ritchie, J. B., 2014. Cross-cultural validation of a memorable tourism experience
scale (MTES). Journal of Travel Research. 53(3). pp.323-335.
Lew, A. A., Hall, C. M., and Timothy, D. J., 2008. World geography of travel and tourism: A
regional approach (p. 363p). Oxford,, UK: Butterworth-Heinemann.
Murphy, P. E., 2013. Tourism: A Community Approach (RLE Tourism). Routledge.
Sharpley, R. and Telfer, D. J. eds., 2014. Tourism and development: concepts and issues.
Channel View Publications.
Smith, S. L., 2014. Tourism analysis: A handbook. Routledge.
Spenceley, A., 2012. Responsible tourism: Critical issues for conservation and development.
Routledge.
Swarbrooke, J. and Horner, S., 2012. Business Travel and Tourism. Routledge.
Tripathi, G., Choudhary, H., and Agrawal, M., 2010. What do the tourists want? The case of the
Golden Temple, Amritsar. Worldwide Hospitality and Tourism Themes. 2(5). pp.494 –
506.
Vrana, V. and Zafiropoulos, K., 2010. Locating central travelers' groups in travel blogs' social
networks. Journal of Enterprise Information Management. 23(5). pp.595 – 609.
Witt, S. F., Brooke, M. Z., and Buckley, P. J., 2013. The management of international tourism.
Routledge.
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