University Report: Contemporary Issues in Travel and Tourism

This report examines contemporary issues in the travel and tourism industry, focusing on the impact of economic crises, political instability, and environmental concerns. It analyzes how these factors affect the industry's growth and development, using Thomas Cook as a case study. The report covers the business environment through PESTLE analysis, discussing political, economic, social, technological, legal, and environmental factors. It also explores marketing strategies employed by companies like British Airways and Aer Lingus to respond to market changes and enhance customer satisfaction. The report highlights the importance of adapting to challenges and implementing effective strategies to achieve long-term goals in the dynamic travel and tourism sector.

Contemporary Issues in
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1................................................................................................................................................1
1.2................................................................................................................................................2
2.1 Covered in PPT.....................................................................................................................3
2.2 Covered in PPT.....................................................................................................................3
3.1................................................................................................................................................3
3.2................................................................................................................................................4
3.3................................................................................................................................................7
4.1................................................................................................................................................8
4.2................................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the present era, travel and tourism is one of the growing industries in the world.
Therefore, each and every country tries to make favourable environment in order to attract
tourists in the country. It can help to generate revenue and support the nation’s economy. But in
the last decade various uncertainties in the political stability in different part of the world and
increase the different types of threats such and economic crises, terrorism having a negative
impact on this sector (Moutinho, 2011). The present report explains all the current issues and
future development of tourism sector. This report also mentioned that how a tour operating
company can use various marketing strategies to increase sales of organization which can help in
attaining their long term goals and objectives. This report is based on Thomas Cook which is one
the largest companies in the travel and tourism sector. They are operating their business activities
in United Kingdom and other parts of the world. The firm provides wide range of products and
services to its customer such as airline services, holiday packages, cruse packages, hotels and
restaurants and so on (Evans, Stonehouse and Campbell, 2012). The purpose of this report is to
understand current issues in the tour and travel companies and how the firm can respond to
change to expand their business activities in other countries.
TASK 1
1.1
Travel and tourism industry is one of the attractive business. After globalization, income
of the consumer and their living standards are increasing which are changing the tourism sector
dramatically. On the other hand, there are various challenges which are faced by the tour
operators. These issues are increasing day by day which is not good sign for the industry
(Wachowiak, 2016). Political instability in various parts of the country especially in the Middle
East and Europe can increase the problem. These are following current issues which can impact
growth and development of travel and tourism sector:
Economic crisis: This is one of the important issues which have negative impact on the
travel business. There are various developed and developing countries which are facing financial
crises. For example, last year financial crises in Greece can increase the risk of this sectors
(Spenceley, 2012). Apart from that, UK is now not the part of EU.
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Environmental issues: Today people are more aware regarding environmental issues
which can increase concern of travel and tourism industry. Increase in the global warming and
other issues negatively affect the natural beauty of the country (Connell, 2013). Due to increase
in number of tourist in the country it can increase mass construction and development activities
on the economy which is not good for natural and environmental resources of United Kingdom.
Therefore, government is making various polices which is reducing the travel business.
Local and international laws: This is another issue which affects performance of the
tourism sectors. There are various countries where visa rules are not favourable for tourist
especially in the western countries which can have adverse impact on such business (Dickinson,
Lumsdon and Robbins, 2011). For example, recently Syria immigrants’ crises are also reducing
the number of visitors in the country. Government of United Kingdom are also making several
laws and legislation of travel visa and immigrations.
1.2
United Kingdom is one of the most attractive tourist destinations in the world. There are
various places which are historical rich and are famous for their beauty (Pritchard, Morgan and
Ateljevic, 2011). According to higher authorities, UK is one of the less expensive as compare to
other European countries. On the other hand, there are various issues which can affect the tourist
attraction in the country.
Political unrest: Despite best offers made by the travel and tourism organisation, tourists
are not willing to visit tourism destination due to the political crises. Political uncertainty also
affects the flow of tourists in the United Kingdom (Crooks and et.al, 2011). There are various
countries such as Syria, Libya, Egypt, Turkey and other middle east and north America countries
which are facing government unrest. There are various historical and cultural tourist destinations
which attract new visitors. For example,
Terrorism: Being one of the largest and growing industry, travel and tourism contributes
heavily in the economy of the country (Kang and et.al, 2012). Terrorism always creates various
challenges for country which can affect people behaviours. Terrorism can create threat such as
terrorist attacks and wars which can increase risk on the business. They can attack the heritage
and historical places which is also one of the important factor.
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Severe weather: This is another issue which is increasingly growing day by day because
tourists are more sensitive towards climate change and other environmental issues which impact
the tourist places. There are several studies on environment and climate changes are shown that
it can increase issues such as heavy rains, uncertainties in the climate and so on. It can create
health related issues between the visitors (Dickinson and et.al, 2014).
Thus, political unrest and terrorist activities in the country can affect the travel industry
and its growth in the near future. Governments and business organisations are required to take
various precautions in fighting against terrorists and try to make sound environment for the
visitors. For this, they requires various strategies and focus and the law enforcement which can
help to provide safety and secure environment in the country (Hall, 2010).
TASK 2
2.1 Covered in PPT
2.2 Covered in PPT
TASK 3
3.1
Travel and tourism business environment refers to those factors which affect the tourism
business from marketing initiatives to gaining profits at the end by maintaining the quality of
service and goodwill of the group (Hartmann, 2014). It includes various factors such as profits,
sales, visitors numbers , passenger numbers etc. PESTLE Analysis is essential strategy which
could be beneficial in this field which means Political, Economical, Social, Technological ,Legal
and environmental factor analysis which could be described as follows:
Political analysis: Since travel and tourism business covers large network all over the
world so it need to be very conscious about the political factors of every country it is dealing
with . The UK’s national and local governments can have an influence on the tourism industry
through their policies (Ooi and Laing, 2010). The most recent example is Iraq and Iran political
conditions taking place now days, in such conditions it is the duty of the tourism group to make
the visitors or clients aware of the situation . This will not only help the group to make the safe
move but also increase confidence in the eye of the clients. The tourists destination should be
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real and safe in terms of political instability due to any political violence and protests, effects of
tourism , warfare , coups etc. (Ashworth and Page, 2011). Therefore the tourism groups should
be very well aware of present situations taking place in the destination regions and then offer any
package to its visitors.
Economical Analysis: Tourism group also require to take into account the economical
factors of the clients and should draft the tour packages as per their requirements and capabilities
because every person do not has same per capita income and expenditure capabilities so to
develop and expand the market share of the business every income group should be taken into
account (Pomering, Noble and Johnson, 2011). The tourism group should also take into account
various other economic factors of the destination region such as labour cost which helps to
determine the tour guide cost because every destination has its own labour cost policy and tour
group sometimes also provide guide and other facility to its clients. It should also take into
account the crude oil prices which leads to calculate the travelling expenses to provide travelling
facilities to the clients.
Social Analysis: Tourism businesses need to be aware of these factors in order to meet
the needs and expectations of tourists which includes demographic factors such as age, sex,
education level, income level, marital status, religion, birth rate, death rate, and average family
size (Smith, Costello and Muenchen, 2010). As per these factors business group should alter the
plans and packages for the clients.
Technological Analysis: Today in the technological world internet has a huge impact on
the tourism industry. It creates the communication channels between actual and potential
customers as well as other businesses, e.g. Facebook and increase percentage of clients through
various online sources. It has also increased financial transactions between tourism businesses
and their clients because digital transaction is the most easier and effective source of payment
now days (Hall and Page, 2010).
3.2
It is important for a business unit is that make effective strategies which can help respond
change and make their business beneficial. Airline industry is one of the uncertain business
which can affected by various factors. International Airlines Group such as British Airways,
Iberia, Vueling and Aer Lingus are required to make their strategies accordingly. In the context
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of British airways and Aer Lingus are required to make new product which can help to satisfy
customers needs and expatiations (Reddy, York and Brannon, 2010). For this, they can use
various tools and techniques which can help to know their customer need. For example, they can
take feedback from their customers and try to improve product which can increase the customer
satisfaction level. It can leads to increase the customer loyalty and brand image in the market.
Further they can reset their long term goals and objective and try to focus on the sustainable
business model which is one of the increasing business model of the organisations (Kusluvan and
et.al, 2010).
Marketing strategies are played a prominent role in the success of each and every
business unit. These strategies can help to promote their product and services more effectively
and increase the sales of the firm. Therefore, marketing managers of British Airways and Aer
Lingus are required to design their marketing mix which can attract large number of customer
and provide consistent growth in the future. There are following marketing mix of both
companies:
British Airways Aer Lingus
Product: It is important for a multinational
company to provide quality product to its
customers (Carlisle and et.al, 2013). Therefore,
British airways is offered excellent product in
term of customer satisfaction. In the aviation
sector it is required that their flights are
connected to all major airports in the world.
Company can make their product which can
satisfy the needs of their customers (Kim,
2010). For example, they can provide all types
of tickets at the reasonable price and their
flights can connected with all busiest airport
world wide. And the most important thing time
schedule should be followed by the company.
Another important thing is the customer
services, British Airways can provide all
Product: Air Lingus is provide mixed fleet to
its product portfolio like Boeing and Airbus.
They provide high quality product and offer
best services between the journey which can
help to lead the customer satisfaction level.
Price: Price of the product is also matter in the
competition and profitability. Therefore, Air
Lingus is provide lower rate and at the time of
advance booking they can also provide
discounts which can help to increase the sales
of the company (Mariani and et.al, 2014).
Place: Air Lingus also focused on their
distribution channels, for this they can provide
their air tickets counter at all over the world.
Apart from that company can also using online
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committed services to their customer at the
right time.
Price: Price is another important element in the
marketing mix. British Airways can provide all
classes services at the competitive price in the
market which can provide strategic advantage
over its rival companies (Rogerson, 2013).
There are various strategies which can be used
by the firm's in order to increase the sales of
the company. For example, they can offer
penetration pricing strategies and gain
maximum revenue from the market before
their rival companies. Apart form that they can
also use economic pricing strategies which can
help to attract large number of customer in the
market. The main objective of such strategy is
to increase the market share of the company.
Place: Distribution channels are also
significant to the company (Cohen, 2011).
British airways having strong distribution
network across the world. Apart from that
company also having various travelling
agencies and tour operators where they can sell
their products.
Promotion: This is one of the important
aspects for each business organisation. There
are various promotional tools and techniques
which can help to promote their products in to
the market. British Airways can spend large
amount of money in the advertising and
promotional activities (Minca and Oakes,
platform for selling their product.
Promotion: Promotion played a important role
in the promotional activities of the company.
Air Lingus can using electronic media, print
media and social media platform which can
help to promote their product to target
customer's (Blackman and Benson, 2010). For
example, company can use Facebook, You
Tube, Instagram and other social media
platforms.
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2011).
3.3
A multinational corporation is working in the international environment, where different
types of challenges are facing by them. They are dealing with multinational customer which
having different kind of needs and demand. Therefore, International Airlines Group is required
to make effectively strategies and marketing plan which can respond any upcoming changes in
the industry (Scott, Peeters and Gössling, 2010). The company is having a old customer's data
and they can use this in the promotions and they can use this in to make advertisements and to
communicate with their targeted customers. More justification is described in the points and
these are:
Communication: Communication is too important for a company for the consistent
growth and development in the business. For example, if organisation wants to make a offer to
their potential customer. They required to communicate with their customers by using
appropriate methods and tools. They can conduct feedback from main or telephone which is too
important for the improvement in their services (Pearce and et.al, 2013). International Anilines
group required to communicate with their different stakeholders which can help to build sound
relationship between them and create a good image of the company.
Environment: To build a ideal image in the public, business organisation required to
avoid unethical business practices. There are various companies which are using these tricks and
try to make profit. But in the long term they going to lose their market share and profitability as
well. Therefore, firm's can making a sound competition in the market.
Customer satisfaction: In the present era, all business organisation are operating their
business with the customer centric approach. In this approach company required to identify the
current and changing needs of the customer's and make their product accordingly (Wearing and
McGehee, 2013). The advantage of such approach is that it can increase the customer
satisfaction level which is most important thing for the firm. It can leads to increase the revenue
and profitability of the company which is the common goal for each and every business entities.
TASK 4
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4.1
There are various issues which are facing by the tour and travel companies all over the
world specially UK based organisations. Myla group which is one of the growing business unit
in the country which provide luxury services to their customer across UK. Now the company
wants to merge with two international companies Thomas Cook and The Travel Network Group.
It having large impact on the overall business activities and employment situation in the country
(Lamsfus and et.al, 2013). There are following impact which can affects their operations and
other aspects of all three companies:
On business operations: Changes in the business environment of tourism industry
having a large impact on their business activities. Due to global financial crises, uncertainties in
the oil prices and political unrest in the Egypt and other middle east countries can reducing their
expansion plan and profitability of the company (Moutinho, 2011). Therefore. Thomas Cook is
suffered huge losses $590 million in the last year and now higher authorities has decided to
reducing cost. Where as, The Travel Network Group is facing similar situation. On the other
hand Myla group wants to merge with these companies in order to expand their business
operations.
On services: It is also impact on the services which is offered to the company in this
sectors. Tourists requires new services when they are on vacations. As they want to experience
something new hence tour operators should make changes in their services so as to satisfy the
needs and requirements of tourists (Evans, Stonehouse and Campbell, 2012).
Employment situation: Due to global crises and other global factors Thomas Cook and
The Travel Network group is reducing their operational and other cost. Therefore, they cutting
the large number of jobs and using new technological platform which can help to sustain their
business in the market.
4.2
There are various issues which can affects a business operations directly or indirectly. It
requires a careful analyses which can overcome the potential risk. These all factors are heavily
impact on the business and its profitability (Wachowiak, 2016). There are following
consequences on the companies such as Thomas Cook, Myla group and The Travel Network
Group:
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Reducing sales: If a business unit is respond systemically and perfectly thy can make
their profit in such situation. On the other hand if a company can not respond positively and
without a proper planning, it can adverse impact on the business performance and sales of the
company (Spenceley, 2012).
Loss market share: This is another impact of all global issues on the organisation, where
company can lose their market share, if they can not use appropriate strategies and market plan.
If tour operators will continuously provides services with obsoleted features then customers will
set a negative image in their mind in respect of such products or services as well as regarding
service provider.
These aforementioned points can be classified as consequences of ignorance of changes
in business environment of travel and tourism industries (Connell, 2013).
CONCLUSION
As per the above mentioned report it has been mentioned that which kind of issues which
can impact on the travel and tourism sector. This is important for the business unit they can
analyses these trends and issues carefully which can help in sustain in the market. If these issues
can not be evaluate in a proper manner they can adverse impact on the business performance.
Apart form that this report also assist various companies such as Thomas Cook, The travel
Network group and Myla Travel.
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