Analysis of the Travel and Tourism Sector: TUI Group Performance

This report provides a comprehensive analysis of the travel and tourism sector, with a specific focus on TUI Group. It begins with an introduction to the sector and outlines key historical developments, including the impact of globalization, technology, and industrial revolutions on the industry. The report then delves into the structure of the travel and tourism sector, detailing the roles of various components such as tour operators, accommodations, regulatory bodies, and tourism agencies. It further explores the functions of government, government-sponsored bodies, and international agencies, particularly in the context of the UK, examining how government policies directly and indirectly affect the tourism sector. The report also addresses the economic, environmental, and social impacts of tourism, referencing TUI Group's business practices, and suggests strategies to mitigate negative effects, such as traffic congestion, expensive local goods, and seasonal employment. The analysis highlights the importance of sustainable growth and the need for strategic approaches to minimize adverse impacts, concluding with an overview of the sector's challenges and opportunities.

TRAVEL AND
TOURISM SECTOR

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Key historical development in the travel and tourism sector ................................................3
1.2 Structures of travel and tourism sector .................................................................................7
TASK 2..........................................................................................................................................10
2.1 Functions of government, government sponsored bodies and international agencies in
travel and tourism .....................................................................................................................10
2.2 Impact of national and local policies influence on the success of travel and tourism sector
....................................................................................................................................................11
2.3 Implication of political changes on the travel and tourism sector ......................................12
TASK 3..........................................................................................................................................13
3.1 Factors that gives impact on the tourism demand ...............................................................13
3.2 Supply change at TUI group to meet the effect of demand ................................................14
TASK 4..........................................................................................................................................15
4.1 Main positive and negative economic. Environmental and social in sector pact of travel
and tourism sector with reference to TUI group business. .......................................................15
4.2 Strategies that can be used to minimize the negative impact on TUI group business. .......17
CONCLUSION .............................................................................................................................17
2

INTRODUCTION
Travel and tourism sector offers long term growth and success opportunities for
organizations that are working in this sector. Present report is based on TUI which is a leading
tourism destination of UK and offers superior quality services for its clients. The report describes
about key historical developments in the travel and tourism sector. Along with this structure of
travel and tourism sector. Moreover, Functions of government, government sponsored bodies
and international agencies has been described.
TASK 1
1.1 Key historical development in the travel and tourism sector
Travel and tourism industry has seen many changes and it has lead towards creating
major developments in travels and tourism industry. Tourism sector is playing a pivot role in
developing the economic growth of nation and it is also supporting towards growth and
development of this industry. In ancient times people used to visit from one place to another in
search of food, employment and merchandising purpose. After industrialization individuals
started moving in search of finding new market areas so that products and services that are made
by the company can be sold.
Globalization and advancements in technology has helped for providing effective
medium to people so that they can explore new adventurous places and visit travel destinations
without facing much difficulty. Advancements in airline and rail industry has helped for
attracting visitors for selling products and services that are offered by TUI group. Along with this
post industrial revolutions has supported in providing better market opportunities to people so
that they can visit from one place to another. Freedom of movement also has supported for
providing medium to people so that they can visit from one place to another. Post war factors and
some other elements also gives impact on the overall performance of the travel industry.
Major factors that have supported for growth and development of this sector includes
technology, time, money, infrastructure, social conditions. All the factors lead towards creating
development of tourism industry. Along with this sustainable growth and future development of
this sector also has become possible due to the advancements happening in technical sector.
3

Internet has provided an effective medium for people to book services and tour packages and it
has helped for providing better job opportunities for people.
In modern era people are giving preferences for visiting places for entertainment and
leisure purpose and business is one more reason for which people visit from one place to another.
In addition, that people also visit different places for identifying different trade and business
opportunities. Nowadays importance is also given for going to a different place for higher
education purpose. Industrial revolution and globalization has given impact on the travel and
tourism activities that are performed in this sector. This industry is contributing towards
development of nation and revenues provided by this sector aids in making development of the
nation.
4

HISTORICAL DEVELOPMENT OF TOURISM
SECTOR
Globalization and advancements in technology
has helped for providing effective medium to
people so that they can explore new
adventurous places and visit travel destinations
without facing much difficulty. Advancements
in airline and rail industry has helped for
attracting visitors for selling products and
services that are offered by TUI group.
Major factors that have supported for growth
and development of this sector includes
technology, time, money, infrastructure, social
conditions. All the factors lead towards
creating development of tourism industry.
Along with this sustainable growth and future
development of this sector also has become
possible due to the advancements happening in
technical sector.
In modern era people are giving preferences
for visiting places for entertainment and leisure
purpose and business is one more reason for
which people visit from one place to another.
In addition, that people also visit different
places for identifying different trade and
5

business opportunities.
1.2 Structures of travel and tourism sector
There are large number of elements that combine together for designing the structure of
travel and tourism sector. Various elements that combine together includes tourism services that
are provided to people. There are many companies that are providing tourism services to people
and it is helping for enhancing their profitability and financial revenues. Travel service provider
organizations offer attractive tour packages to people and it helps them to earn financial revenue
and profitability. Different elements that combine together for forming structure of the travel
industry includes :-
Tour operators :- Different tourism organizations are working in this industry and they offer
attractive tour packages and services to people. TUI is a travel service provider organization that
offers attractive tour packages for its business consumers. Attractive discounts and offers are
given to visitors so that they can be attracted towards purchasing services they are offered by the
organization.
Accommodations :- Hospitality industry offers accommodation services to people and it helps
them to rendering better amenities and facilities. Along with this food and gourmet services are
also offered to visitors and it aids in meeting the requirement and needs of visitors.
Regulatory bodies :- Government and other regulatory bodied form norms and policies that are
essential to be followed for all the organizations and people that are working in this sector. It
support for controlling all the activities that are performed in the travel industry.
Tourism agencies :- Tourism agencies offer different services to visitors that aids them to explore
different places. It helps for meeting the needs and requirement of people. Along with this
transportation services should be provided to people so that they can visit new places without
facing much difficulties.
Conferences and exhibition organisers :- Nowadays organizing seminars and conferences have
become a vital part of travel and tourism services business and it has helped for enhancing
revenues and profitability of this industry. Along with this organizing conferences and seminars
requires a strategic approach so that more effective policies and rules can be formed for
performing travel activities in this sector.
6

STRUCTURE OF TRAVEL AND TOURISM
SECTOR
Tour operators :- Different tourism
organizations are working in this industry and
they offer attractive tour packages and services
to people. TUI is a travel service provider
organization that offers attractive tour
packages for its business consumers. Attractive
discounts and offers are given to visitors so
that they can be attracted towards purchasing
services they are offered by the organization.
Accommodations :- Hospitality industry offers
accommodation services to people and it helps
them to rendering better amenities and
facilities. Along with this food and gourmet
services are also offered to visitors and it aids
in meeting the requirement and needs of
visitors.
Regulatory bodies :- Government and other
regulatory bodied form norms and policies that
are essential to be followed for all the
organizations and people that are working in
this sector. It support for controlling all the
activities that are performed in the travel
industry.
Tourism agencies :- Tourism agencies offer
different services to visitors that aids them to
explore different places. It helps for meeting
the needs and requirement of people. Along
with this transportation services should be
provided to people so that they can visit new
places without facing much difficulties.
7

TASK 2
2.1 Functions of government, government sponsored bodies and international agencies in travel
and tourism
Functions of government, government sponsored bodies and international agencies in
travel and tourism UK
The government of UK plays an important role in tourism sector. Usually the structure of
tourism depends on the factors like attraction, transport, tour operator , travel agent, tourism
development and much more, some time certain government policies twist the game completely.
Their are certain impact of policies that may affect the company TUI:
Direct impact of government policies : As tourism is considered as one of the biggest
industry in UK and it helps the most of the population to get jobs and wealth.
Therefore to promote this industry government started various campaigns in
order to promote the UK tourism and inspire lots of people to visit UK.
Indirect impact of government policies : As the government started various
campaigns which inspire the private sector to invest into this sector and as the
UK has one of the biggest tourism industry so the huge profit is generated by the
people.
Economic policies: Tours and travels is considered as one of the most important
industry across the world and its role is very special in the economic
contribution for the society. Its impact is direct, indirect, induced. If we discuss
about the direct impact it improves transportation facilities, accommodation
facilities, entertainment facilities and much more which are used to improve the
living standard of the people. If we discuss the indirect effect in that case Tours
and Travels investments by the government and the private sector to, purchase
from suppliers also get increases so this will also increase the economic
condition of the country.
8

Political Changes: As the politics and tourism does not share any special or strong
relation therefore if any political changes takes place it cannot affect the tourism
sector as such. For any country the tourism sector is considered as the source that
can be used to improve the culture, economy. In short tourism not only helps any
country to provide economical support but also give political science, introduce
nee culture into the society. Increases the knowledge.
Planning to minimize the negative effect of tourism:
1. Increase in traffic and pollution: As the tourism and tourist get increases the traffic congestion
will start increases due to which short distance also require more time due to which huge westage
of fuel and time takes place. In order to stop such wastage we should fix certain route that can
only be use by the tourist to travel from one place to another but outside the city and flyover type
concept should be implemented in more numbers.
2. Expensive local goods : Due to this local goods become expensive because tourists will pay
more for the same goods where local person cannot . Therefore to stop such kind of purchasing
government should make the fixed price so that it will remain affordable for both local person
and tourist.
3. Jobs will remain seasonal : Due to this people will not have any fixed job it will remain
seasonal. Therefore people will have job for few months during the traveling period and after
that they will became jobless. To overcome such problem government should introduce certain
job related schemes so that they can focus on their tourist and after that period they ca get for
their survival.
2.2 Impact of national and local policies influence on the success of travel and tourism sector
National and local policies affects the success of travel and tourism sector and due to that
overall growth of the travel sector gets affected.
National tourism policies :- Government of UK has formed Tourism development plan 2016 so
that improvements can be made in the existing travel activities that are performed in the nation.
State is making efforts for improving the infrastructure and developing the travel sites so that
9

number of visitors in the country can be enhanced. Along with this Tourism policy 2011 has also
been formed by the government in which major focus has been given for enhancing the travel
activities in the country. These policies are helping for attracting Chinese visitors in the country
and visa norms also have been modified by the government so that more number of Chineses
people can explore the travel sites of UK.
Local tourism policies :- These policies are formed by local regulatory bodies so that tourism
activities in the nation can be controlled. Along with this city and country council are responsible
for making policies and norms so that tourism activities can be carried out effectively. Under
these policies action plans are formed for improving the attractiveness and infrastructure of
theatres, parks, gardens and outdoor activities. These policies supports for regulating the
functioning of travel and tourism sector. Proper monitoring of travel sector becomes possible and
due to that impact is observed on working of the travel industry. It becomes easier to carry out
the operations of tourism industry and long term impact are observed due to this.
10

11

12