Contemporary Issues in Travel Tourism

This report examines contemporary issues and trends affecting the UK travel and tourism sector, focusing on London and the broader UK context. It analyzes issues such as security concerns, technological challenges, economic factors, emerging markets, environmental awareness, and health and safety regulations. The report employs both quantitative and qualitative methods to measure these issues and trends, drawing on data from various sources including the International Passenger Survey and UK tourism statistics. The report also investigates how businesses, specifically Thomas Cook, respond to these changes, outlining strategies such as globalization adaptation, sustainable tourism initiatives, technological integration, and the use of PESTLE and SWOT analyses. The impacts of these issues and trends are discussed, along with the consequences of businesses failing to adapt to market changes. The report concludes by emphasizing the importance of responsiveness to change for success in the dynamic travel and tourism industry.

CONTEMPORARY ISSUES IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION................................................................................................................................3
Task1.....................................................................................................................................................3
1.1 Measuring issues currently driving change in the travel and tourism sector for London..........3
1.2 measuring various present issues using appropriate methods and resources for London.........4
Task 2....................................................................................................................................................5
2.1 Evaluating current trends influencing change in the UK travel and tourism sector..................5
2.2 Measuring a current trend using appropriate techniques and resources for United Kingdom. .7
TASK 3 ...............................................................................................................................................8
3.1 Travel and tourism businesses respond to change.....................................................................8
3.2 Strategies of Thomas Cook for respond to change....................................................................9
3.3 Justification of strategies towards respond to change.............................................................10
TASK 4...............................................................................................................................................11
4.1 Impacts of issues and trends that drive change in the travel and tourism sector.....................11
4.2 Consequences of businesses failing to respond to market change...........................................12
CONCLUSION..................................................................................................................................13
REFERENCES...................................................................................................................................14

Illustration Index
Illustration 1: Visit and spend figures...................................................................................................7
Illustration 2: Outbound expenditure....................................................................................................8

INTRODUCTION
Travel and tourism can be defined as an activity through which people visits different places
to have an experience of culture followed in other nations. There are many travelling agencies who
are provides information about accommodations, transportation and other services to travellers of
the tourist place (Evans, Stonehouse and Campbell, 2012). Further, there are also many
contemporary issues like political, economic and social which affect the travel and tourism in the
nation. The present file defines the existing issues of driving changes in travel and tourism sector
for London. It assesses the current trends which influence changes in this industry in United
Kingdom. It also analyses how travel and tourism business could respond to change. Further, this
report presents strategies of Thomas cook business for the changing environment. It justifies travel
and tourism business strategies for alteration in the state. It measures impact of issues and trends
which are changing the travel and tourism sector in the country.
TASK1
1.1 Measuring issues currently driving change in the travel and tourism sector for London
There are many current issues like security and technology, economy, emergence of new
market, environment awareness and tourism health issues which are changing conditions of travel
and tourism sector in London. Security is also an important factor which is creating problems for
tourist in the city (Wachowiak, 2012). Security agency is taking huge safety measures to stop
terrorist attacks in the city. This process is affecting the frequency of visitors to come in the London.
For example, London attacks are also affecting the rate of tourist. This thing created huge loss for
travel and tourism sector within London. Technology also plays an important role in this industry.
Hackers are hacking tourist and travel websites in the London. They are stealing private information
like banking information of users in the United Kingdom (Moutinho, L. 2011). These things are
affecting the visitor’s frequency of tourists in the city. Generally, government of Britain has made
many cyber laws like Computer Misuse Act. These rules were not able to stop these types’ of
crimes. Further, these things are creating fear in tourist to use websites in the United Kingdom.
They are reducing frequency of foreign visitors to come in London. In addition to this, Economy of
United Kingdom is also affecting travel and tourism sector. As per Hutchinson, these are the most
popular places of London which are given below in the table.
Places Frequency of consumers (2013)
British Museum 6701036

National Gallery 6031574
National History Museum 5356884
Tate Modern 4884939
Epping forest 4400000
Generally, many travellers are coming to visit London. As per table, frequency of consumers
has been fixed for many years due to economic issues in United Kingdom. This is generating
limited income to travel and tourism sector of UK (Hutchinson, 2015). So this industry is facing
shortage of money for developing tourists places more in the nation. In addition, Economic
condition is running on the medium mode. These issues are also affecting the frequency of visitors
in London. There are many new markets which are emerging in United Kingdom. Government of
Britain has also made rules and regulations regarding safety of environment in the tourist places.
For example, authorities are also banning plastics, rubber and extra cheap elements which are
harming the climate of London (Sotiriadis and Apostolakis, 2015). This process has increased the
expense of travel and tourism sector in the city. These things are reducing profit of hospitality
organizations in the country. In addition to this, health safety issues are also important factor for
hotel and travel agencies in nation. Government of UK also oblige these firms to follow health and
safety procedures at tourist place for security of visitors. These things are creating problems for
organization to manage hospitality activities in travel and tourism sector (Connell, 2013). These
regulations are affecting income level of travel and tourist agencies in London.
1.2 measuring various present issues using appropriate methods and resources for London
There are many issues in travel and tourism sector which can be solved by using appropriate
methods and resources in the nation. To overcome the issues, Government of UK can follow various
policies to increase frequency of visitors in United Kingdom. Authorities can also use risk
identification method by analysing risk in the city. Security agencies can use digital techniques to
identify suspected people in the nation. For example, authorities can use CCTV camera to measure
activities of these types of citizens in London (Spenceley, 2012). This way, these agencies can focus
on removing the extra barriers regarding security. As a result, Foreign citizens will face less
complexities regarding checking as comparison of before in the United Kingdom. These approaches
can also contribute an effective role in increasing the frequency of tourists in London. Government
of UK can increase its security to reduce terrorist attacks without affecting visitors by following the
above stated policies.

Travel and tourism sector can facing issue economic issues which is affecting its
business in the nation. So Authorities of UK can develop the various policies for travel and tourism
sector to improve the GDP (Gross domestic product) of the country. They can also use risk
identification and problems solving methods to solve this economic issues in the nation (Lyons and
et.al., 2012). For example, government of UK can help these hospitality organizations by providing
financial supports to increase new activities of business in order to develop tourist places. These
strategies can help this sector to increase employment opportunities in the nation. Hospitality
organizations of London can earn effective income with help of such sources. This method can help
the nation to maintain inflation rate in the effective manner. It also contributes an effective role to
reduce recession in United Kingdom. In addition to this, travel and tourism organizations can use
demographic segmentation in London (Hughes, Weaver and Pforr, 2015). These corporations can
divide its tourist’s packages on the basis of income. This process will attract the visitors to visit
London.
(Source: UK tourism deficit, 2014)
As per tourism alliance. International passengers are reduced after the 2009 which is given
in the graph. Government of United Kingdom can consider this issues to more the more GDP of
UK. This process can help to reduce Britain tourism deficit (UK tourism deficit, 2014).
Travel and tourism sector can earn more profit by providing such kind of services to
visitors in the city. Hospitality organizations can provide additional facilities in optimal price to
travellers in the tourist places. Emergence of new market can also help the travel and tourism sector
of London to increase frequency of travellers in the UK (Sharpley and Telfer, 2014). This thing also

provides effective opportunities to generate more income in the nation. This way, local citizens of
nation can spend more money on travel and tourism sector in the United Kingdom.
TASK 2
2.1 Evaluating current trends influencing change in the UK travel and tourism sector
There are many current trends which are influencing the changes in travel and tourism sector
of United Kingdom. The current trends in travel and tourism sector of UK are as follows which
influenced the changes this industry.
Domestic tourism: Domestic tourism impact the travel and tourism sector in the Britain. For
example, adventure, green and sport tourism are the popular trends in the nation. Many tourists are
coming in the country to enjoy this type of tourism (Kang and et.al., 2012). The impact of such type
of travel and tourism industry is increasing various type of facilities and other support services for
adventure, sport and green niche market in the United Kingdom. Many hospitality organizations
like Hilton, Marriott and Star woods are providing effective facilities like food and beverages, room
service and extra gaming activities to increase frequency of visitors in the Britain (Cohen and et.al.,
2014)
Inbound tourism: It is activity of non residential people that are travelling in foreign countries
for different purpose like business and leisure. For example, proper data is considered from the
International Passenger Survey which is given below the table. It reveals volume and value of visits
of UK by overseas residents. The changes due to inbound tourism in UK are as follows.

 Visits- The UK monitored 3.37 million inbound travellers in October 2015. It achieved 12%
up from October 2014. It also set a new record in the nation. Tourist quantity are also 4%
rise on January-October 2014 at 30.50 million. It shows the rolling 12 months to October are
also 4% up at 35.55 million. This data provides appropriate knowledge regarding inbound
tourism in the United Kingdom which help government to evaluate current trends in this
sector.
 Spending- Foreign visitors spent £1.96 billion in the UK. Spending Percentage change of
October 2015 is 9% more than previous data of October 2013. In addition, Inbound
expenditure is 1% down year to date. Spending of October 2015 is containing £18.43 billion
as well as £21.73 billion respectively (Inbound visitor statistics, 2015).
Out bound tourism :When citizen of UK go to other countries for various reason such as tourism,
business and holidays. It is called outbound tourism. As per UK tourism statics, this table defines
outbound tourism expenditure of citizens of United Kingdom. The changes due to outbound tourism
in UK are as follows.

As per outbound expenditure diagram, It also consist various areas of expenditure like
accommodations, food and beverages, railway, road, water, air, transport equipment rental, travel as
well as reservation charges in foreign countries. In addition to this, it also cover expenses of
cultural, sport activities, exhibition and conferences and other consumption products (UK tourism
statics, 2015). For example, This statics also helps the authorities to assess the present trends for
travel and tourism sector in the United Kingdom.
2.2 Measuring a current trend using appropriate techniques and resources for United Kingdom
There are many appropriate techniques and resources to measure the current trends in the
United Kingdom.
In the Britain, there are many running trends running like sport, adventure as well as green tourism
in the tourism.
 Quantitative Techniques- It also plays important role investigator to know about latest trends
of travel and tourism sector of UK. For example, researcher can use interview and survey of
visitors methodology to collect quantitative or primary data in the nation (Kim and Ritchie,
2014). This method aids the investigator to take experience about sport, adventure, as well
as green tourism which are running in travel and tourism sector of UK. This techniques can
also help hospitality and travel agencies to make effective strategies to attract the consumers
in the United Kingdom.
Illustration 2: Outbound expenditure
(Source: UK tourism statics. 2015)

 Qualitative Techniques- Investigator can also use secondary or qualitative to know about
present trends in travel and tourism sector in the United Kingdom (Pearce, 2014). For
example, researcher can follow journals, books, online articles as well as magazines to
creates awareness regarding green, adventure and sports tourism trends in the United
Kingdom. These types of data can also contribute effective role to make perfect strategies
and plans to earn more profit from domestic and foreign visitors in the Britain (Dickinson,
Lumsdon and Robbins, 2011).
Trends analysed through above techniques
It has been analysed that there has been a presence of around 1 billion international tourists in the
year 2012 that came to UK. In the same way, around 1.8 billion is beng expected to reach by 2030
(The Case for Responsible Travel: Trends and Statistics, 2016). It was further found that
international tourism to UK grew by 4.7% in 2014 to 1,138 billion. It is further expected to reach a
target of 1.5 billion by 2020 (Sustainable Tourism, 2016).
Conclusion
From the research, it can be said that adventure, sport as well as green tourism are helping
to increase frequency of visitors by developing effective policies for better service in the United
Kingdom. It also helps the hospitality organizations to manage their operations with aid of
qualitative and quantitative techniques in different tourist destinations of nation.
TASK 3
3.1 Travel and tourism businesses respond to change
Travel and tourism is world's one of the leading industries which helps in economic
development and job creation of the country. Travel and tourism are highly changeable industry and
Thomas cook is also facing these changes. The impact of these changes are both in positive and
negative manner. As per the impact of changes, it has made various changes I its working for
attracting more customers and increasing the market position (Lundberg, Fredman and Wall-
Reinius, 2014). The response of Thomas Cook towards the changes are explained below.
 Globalization: With the increase in globalization, customer's needs and demands are also
increasing. To respond to this change, Thomas Cook has provided the facility of expedited
booking process and greater convenience in booking process. Along with this, it has
increased its travelling destinations which has increased its business. It has provide a mobile
app also for making the process handy and fast (Dickinson and et.al., 2014). It is providing
holiday offers, hotels and resorts, luxury facilities in affordable prices.
 Infrastructure and mobility: Energy scarcity and increasing prices of fuel are working as a

challenge for the Thomas Cook. It has applied the policy of sustainable tourism in its
services and products. It focus on the health and safety of environment along with travels. It
is providing opportunities of trips to the green and natural places and also helps take care of
nature by using eco-friendly products (Hartmann, 2014). It provides luxury infrastructure to
the people so that travellers prefer it next time again.
 New Technology: By using cloud solutions ad big data analytics, Thomas Cook is managing
its working effectively and providing better quality services to the customers. It has
provided all facilities in its mobile app for making the booking and other process easy. With
the help of it, users can get all information related to the products and services of the
business (Becker, 2013). By integrating the work with technology it is able to manage the
work along with the employees performance
 Capabilities for future: Company is focusing on customization, innovation and seamless
user experiences for increasing the future capabilities. It is providing innovative services and
facilities to the user along with the use of technology which makes them easy to access and
handle. This leads to a comfortable and satisfied experience for the customers and this
increase its brand image and reputation which will play it in future by increasing the number
of customer's.
 PESTLE analysis- It is helpful for Thomas cook organisation regarding change. Political,
economic, social, technological, legal and environmental factors also help the firm to make
better market strategies to respond change in the market. This thing can also help the firm to
increase consumers which can help to improve travel and tourism sector in the organisation
(Evans, Stonehouse and Campbell, 2012). On the other firm, enterprise are facing problem
to identify these factors due to lack of employees in the market.
 SWOT analysis- It is internal analysis which can help the Thomas cook to improve its
efficiency and performances as effective response in the United Kingdom. This process can
also help the organisation to reduce the weakness and increase strength. In addition, It can
aid the firm to identify the opportunities and threats which can help to increase increase its
income in the travel and tourism industry. These things can help the Thomas cook to drive
positive change in its sector.
3.2 Strategies of Thomas Cook for respond to change
To develop the strategies travel and tourism sector have to do PEST analysis which is as
follows.
 Political factor: It has huge impact on the working of travel and tourism industries. Thomas

Cook need to follow all the laws and policies formed by the UK government. Company need
to focus on eco friendly and user friendly products, using transport which emit less CO2
(Moutinho, 2011). The taxation policies of government is increasing the prices of fuel which
affects the business. It can only use those routes and destinations where the UK government
allows which somewhere restricts companies in expanding their business in other regions.
 Economic Factor: Recession in UK has impact the business in economic factor. It leads to
increase in unemployment and also increase the market prices which lead to decrease in
customer demands. Changes in the economic policies of UK affect the working procedures
of Thomas Cook. Due to the increase in taxes, it has to increase its ticket prices and fairs of
hotel and resorts which leads to decrease in number of users (Spenceley, A., 2012).
 Social Factors: As the time changes customer's demands and perceptions are also changing
to fulfil their demands and satisfying them, Thomas Cook is providing them quality services
with all facilities. They are thinking innovative and creative for serving quality services and
satisfying their users.
 Technological Factors: With the development of technologies companies are also getting
benefits in various ways. It has changed the working processes of the Thomas Cook and
makes it manageable and maintainable (Hughes, Weaver and Pforr, 2015). For this, travel
and tourism sector is using appropriate ERP systems along with databases. To maintain the
competitive environment they are providing innovative services in more effective way
which are provided by their competitors.
 Marketing plan- It can help the Thomas cook to design blueprint of marketing efforts in the
travel and tourism industry. It provides opportunities to firm for designing proper goals and
objectives which aid the firm to make effective strategies for positive change in the United
Kingdom.
 Marketing Mix- Thomas cook can also develop its market strategies through consideration
on various aspects like product, place, promotion and price. This way, organisation can
provide consumer services by making effective strategies in travel and tourism sector. For
example, effective location of firm in travel and tourism sector can render better revenue by
giving effective service to consumer in affordable price (Evans, Stonehouse and Campbell,
2012).
 Segmentation- Generally, Thomas cook organisation can use demographic segmentation on
the basis of income, age and gender to develop proper planning for giving better service to
consumers in the United Kingdom. This method can provide effective guidance to firm for

making proper strategies for positive change in the travel and tourism sector.
 Product life cycle- Thomas cooks can also use product life cycle for making strategies which
create positive impact to earn income. With help of this method, organisation can design
better strategies to earn better profit in each phase of product life cycle. This way, consumers
can get effective travel and tourism services for consumers in travel and tourism sector
(Dickinson and et.al., 2014)..
Along with the macro environment, micro environment also affects the working of the
industries of this sector. Company needs to develop such strategies which take care of the macro
and micro environment both. They need to satisfy their employees also as they are the most
important assets of the business. Industry can also offer its workers trips and tours for refreshing
them and performing well. They need to provide special offer to the employees for increasing their
motivation and confidence level. They need to focus on good relations with suppliers, customers,
distributors etc so that they can create a good image and reputation of the company (Thomas cook.
2015).
3.3 Justification of strategies towards respond to change
Thomas Cook has respond to the changes by accepting and adopting them in the positive
manner. The various factors in which it improves its performance along with customer satisfaction
are as follows.
 Creating new products and services: Thomas cook adapt the change and think innovative
and creative for providing quality products and services. It has promised the customers for
24 hour hotel satisfaction by providing quality services and resolving the issues at the time
faced by customers. It is providing services for every age of user such as adults, kids,
families, couples, etc. It is providing free wifi, holiday concierge, late breakfast until noon,
gym, spa, delicious food, etc (Thomas Cook Group. 2015). The strategy is likely to aid
towards creating an overall brand loyalty of consumers. It can further aid in garnering new
sales.
 Marketing Plan: Thomas Cook has created effective marketing plan for influencing people
and achieving good performance along with market position. It is providing luxury services
for offering full comfort to the customers in affordable price. The long term objective of
Thomas Cook is to enhance its business with innovative services and short term objective is
to satisfy customer's needs and demands by providing Innovative and quality services with
the limited use of natural resources (Veal, 2006).
 Marketing Strategies: The marketing strategies used by the company are to attract more

customers and to increase its market position along with its brand name and image. It
provides various facilities to the every kind of client as per their needs and demands.. It uses
social media, innovative advertisement for attracting customers. Company provides
customers special offers, discounts, facilities, etc which help them in marketing through
word of mouth which is the most effective way. The social media sites may thus assist the
employees in infleniug toe consumers as well as understanding the overall requirements of
clients. The loopholes in the policies as per the comment given by client can also be
understood accordingly (Dickinson and et.al., 2014).
 Marketing Mix: Products provided by Thomas Cook is of high quality and created while
keeping the safety and health of the customers. Price of these products ad services are
affordable which does not make users to think twice. It provide valuable services such as
spa, gym, food according to the taste, holiday destinations, special trips and tours, etc as per
the money (Sharpley and Telfer, 2014). For promotion, travel agents of the company give
face to face advice to the people and company can also promote its products by the help of
travel agents i.e. Widow Display. The travel agents of Thomas Cook are available at town
centres and I major shopping centres which attract more customers. The promotion strategy
may aid in attracting visitors to UK. It can include international visits as well thereby
causing an increase in foreign exchange.
TASK 4
4.1 Impacts of issues and trends that drive change in the travel and tourism sector
The impacts of issues and trends that drive change in the travel and tourism industry sector
is as follows:
 Impact of Globalization: Globalization has helped travel and tourism companies in
enhancing their business and providing their services to the various places and their people
This thing also help the government of UK to increase its GDP through getting higher
income as tax (Cohen and et.al., 2014). The policy of sustainable tourism affects the
working of these industries but they leads to safety and health of the customers along with
the clean and safe environment. On the other side, globalization has increased so much
competition due to high frequency of national and international level travel and tourism
companies in the nation. This thing affect the income of organizations in the United
Kingdom.
 Employment: Increase in number of customers and growth of the business leads to increase
in employment opportunities. Adults like to travel and enjoy the sights and sounds and for
this they can find company providing best services by the use of internet. Travel and tourism

industries need staff having knowledge of different languages and ability to work in various
culture (Kim and Ritchie, 2014). For example, Easy Jet is recruiting candidates for
permanent and for certain seasons; and the main reason behind this is the increasing use of
Easy Jet services.
 Technology: In the world out of the 100% frequent travellers, most use the mobile apps,
85% use computers and over 50% use internet. Use of technology makes the working of
travel and tourism industries easy and manageable. Use of Microsoft Expedia in Europe is
increasing and it is making the operations easy and simple to handle. Airline industries are
using drones for scanning and accessing planes for maintenance. Use of 3D tech in travel
and tourism sector helps in diagnosing any technical problem (Francis, 2015).
 Holiday Trends: Due to the less time and job insecurities, travel and tourism industries are
providing holiday offers of shorter days. For example, TUI is providing shorter holiday
trends along with different services for different people such as individuals, single woman,
families, gay people, couples, etc. They provide holiday trends as per the seasons along with
similarities or differences between them which helps customers in selecting appropriate
holiday trip for them. Industries in UK are providing facilities such as city breaks, cruising
on big and small ships, beach, tailor made holiday, special interest holidays, etc which
attract more people.
 Mergers: When two or more companies combined and involves one company and its
stakeholders I exchange within the security that have other company. For example, Thomas
Cook merged with the My Travel company due to the customers preference towards online
booking. This results in better performance and increment in customers (Shankman, 2013).
4.2 Consequences of businesses failing to respond to market change
Consequences of travel and tourism business failing to respond to market change are many.
One of these are climate change, which affects the businesses at global level. Customers are
preferring those industries which are using ozone-friendly products and focusing on the safety and
clean environment. Companies are also trying their level best by using solar panels, recycling the
products and looking after the surroundings. For example, Euro Star is using less carbon off set
energy and British Airways is using 25% less carbon full flights (Pearce, 2014). The businesses are
not responding well to the market changes due to the fear of reduce sales and profitability, change in
the customers attitude, etc. They does not want to take risk and think that the change will bring
change in customers attitude and this makes them to select other companies. The changes also
affects the supplier of the company. It they found that the applied changes are not appropriate for

them then in such condition they will stop providing services to the company and selects other one.
Fail in respond to market changes also affects the competition among the companies. If one
company does not work according to the requirement of time then other will get benefits of it as
customers will move towards the other companies. This leads to increase in competition which
affects the market position of other company (Coles and Hall, 2008).
The main task of these industries is to satisfy their customers by fulfilling their needs ad
demands no response towards the expectations leads to decline in customers. The companies work
on three features which are to satisfy customers, to attract them for coming again and again. This
also affects the brand name and image of the company. People feel like they are not treated well by
the hotels and resorts which let the firm's image down. By providing home like comfort tour and
travel sectors can attract their customers and also increase their economic status (Dickinson and
et.al., 2014). For offering the online booking services, some travel and tourism agencies moved into
online booking which helps customers to book their tickets easily. If the business does not respond
to change in proper manner then it can cause an overall reduction in profit and sales figures thereby
putting a question mark on overall sustainability of company. It may further make consumers move
to competitors. However, adoption of change is likely to garner more customers for the company
(Cohen and et.al., 2014)..
CONCLUSION
Travel and tourism is one the leading and growing industries in the world. The main motto
of these industries are to satisfy their customers so that they use the same services again and again.
With the change in time policies and procedures in this field are also changing which are providing
new opportunities to them along with challenges. Thomas Cook is one of the travel and tourism
company which is satisfying its users by providing various services at value for money. It is also
implementing the changes in its work for better performance and brand image. These changes
effects the companies in both positive and negative manner. Companies are trying to take full
advantage of these changes for increasing its market position and reputation. It is essential that the
company adheres with the changes else it may cause an overall reduction in market position and
reputation, sales as well as profitability of company. It is further recommended to the company that
there should be a provision of more services to the consumers as pr need. Hence the firm is required
to indulge in market research.

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