TUI Operations: Analyzing Trends & Policies in Travel Tourism

This report analyzes TUI operations within the travel and tourism sector, highlighting key developments, the structure of the industry, and factors affecting tourism demand. It explores the impact of political changes on the sector, examining both positive and negative economic, environmental, and social impacts of tourism in destinations like Turkey and Thailand. The report further investigates how supply has adapted to meet changing demands, emphasizing the importance of balancing supply and demand for effective tourism management. Additionally, it discusses strategies for minimizing negative impacts and maximizing the positive contributions of tourism, offering a comprehensive overview of the complexities and dynamics within the travel and tourism industry.

Travel tourism
sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................2
1.1 Historical developments in the travel and tourism sector.....................................................2
1.2 Structure of the travel and tourism sector.............................................................................3
TASK 2 ...........................................................................................................................................3
2.1 &2.2.......................................................................................................................................3
TASK 3............................................................................................................................................4
3.1 Factors affecting tourism demand.........................................................................................4
3.2 How supply has changed to meet the effects of demand......................................................4
TASK 4............................................................................................................................................5
4.1 Positive and negative economic, environmental and social impacts of tourism...................5
4.2 Strategies used to minimise the negative impacts and maximising the positive impacts....6
Conclusion.......................................................................................................................................7
References .......................................................................................................................................8
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INTRODUCTION
Present report is based on TUI operations related with the tourism sector. Report tells
about the main key development which takes place in travel and tourism sector. Travel and
tourism is one of the fastest growing industries and helps in improving the economy of the
country. Government plays an important role in increasing the number of visitors in the country.
(Peeters and Dubois, 2010). The main aim of this assignment is to study how local and national
economic policies affect number of visitors. The main factors which impact the tourism demand
are also described under this. There are number of factors which affect the visitors to visit the
different places , factors can be personal or can be social.
TASK 1
1.2 Structure of the travel and tourism sector
Structure means how the tourism industry really works or how all the components of its are
interrelated and work to achieve the results. Mainly it includes six components: Attractions: Attractions in the tourism industry can be either natural or man made.
Natural attractions include lake, beach or can be many more which attract a large number
of visitors each year(Deery, Jago and Fredline, 2012). Man made attractions include
theme parks, London tower and many more. These man made attractions attract a large
number of visitors every year. Transport: Transport is one of the main part of tourism sector. Visitors use various
transport modes to go to the destination. Without transportation the activity of travelling
can not be take place by the visitor because visitors need different modes of
transportation like buses, railways or airways to go to the different places. Tour operators: Tour operators produce various holidays packages for the visitors with
the effective facility of accommodation and food. Tour operators tries to make an
effective package for the public in order to deliver them value for money. Travel agents: Travel agents are the link between the tour operator and the public. Travel
agents sell the products of tour operators to the public(Seetanah, 2011). Travel agents
contact directly with the customers and try to influence them to to visit various places.
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 Tourism development: Today number of developments takes place in the tourism. Boards
provide important information to the public. These development commissions try to
inform the visitors about the various destinations
Number of changes takes place in the tourism sector and its structure. TUI also changes its
structure or working pattern in order to attract large number visitors to the various destinations
every year (Erkuş-Öztürk and Eraydın, 2010). To make a destination more attractive or popular
governments tries to strengthening or improve the social conditions.
TASK 2
2.1 &2.2
Covered in ppt
2.3 The implications of the political changes on the travel and the tourism sector in the different
countries.
Political factors or situations prevail in the country affect the needs and demands of the
tourist. Political stability in a country encourage the situations of stability and safe environment
and attract large number of visitors in order to visit the country. On the other hand political
instability encourage the condition of instability and create a negative image in the mind of the
customers or visitors. Political stability influence the visitor decision. So to attract a large
number of visitors in the country it is necessary to first maintain the political factors in that
country.
Government of country makes policies or rules for different industry and it become liable
for every industry to follow the same other it will give rise to a legal action. If government of
country changes the policies related with tourist destination than it will affect the number of
visitors come in that country. Political change can either increase the number of visitors or can
decrease. Attractiveness of a country get affected by policies set by government. If there are
unsafe conditions at a country that that place will fail to attract large number of visitors on the
other hand safe and hygienic conditions automatically attracts large number of customers.
Various policies and rules or regulation made by the government affect the activities of
tourism in different countries. For example political stability in the Turkey will attract large
number of tourists there on the other hand political unstability of Thailand negatively affect the
tourism activities and and decrease the number of tourists there. For this to attract large number
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of customers it is very necessary for Thailand to maintain political stability so that maximum
number of visitors can come there and overall GDP and wealth of the country can be increased.
TASK 3
3.1 Factors affecting tourism demand.
A large number of factors are there which affect the demand of tourists. These factors
influence the decision of visitor to visit a particular place. Factors which affect the demand of the
tourist are as follows: Economic factors: Economic factors include inflation and deflation rates exist in the
nation. Other than these economical factors, it includes interest rates, taxes charged by
the visitors. Inflation comes under the economic factors of the country. Inflation leads to
decrease the purchasing power of the people living in that country. Demographic changes: The organisation should do research to understand the various
demands and needs of the different visitors according to their age, gender and many
factors. Political situations: Political stability of the nation also affects the tourism demand. Safe
and political stability will attract large number of visitors. Decisions taken by the
government or policies and procedures set by the government also affect the tourism
demand. Social factors: Social factors also affect the needs and demands of the various tourists.
Social factors includes from where the visitor belong including friends, reference groups
etc.
 Quality of the product: The service and quality of the service provided by various
enterprises affect the visitor's traffic (Wang, and et. al., 2012). Product of high quality
attract large customers and low quality products fails to attract the customers.
 Price: Low price service will attract large number of visitors.
Other than these factors the other factors that affect the needs of the tourism include:
 Technology
 Threats and crises
3.2 How supply has changed to meet the effects of demand.
For satisfying the varies needs or demands there should be a proper provision of supply.
When supply becomes equal to the demand than it helps in maintaining the equilibrium point.
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Supply get affected by the various factors include services, transportation, information,
promotion and on many more. In the tourism sector one of the main factors that affect the
activity is attraction. Demand in the tourism sector arises related with the famous places or spots
which attract the visitors (Látková and Vogt, 2012). It is the necessary for maintaining demand
and if there is no demand than it is the responsibility of TUI group to create demand or influence
the visitors for visiting the place. The demand can be created by offering effective services to the
visitors. Besides this, with the demand it is necessary to manage the supply also. Supply can only
be managed by proper management. It is necessary to create equilibrium of demand and supply.
Supply affect the prices of product. TUI should try to make an effort to maintain the level of
demand and supply. In tourism factor, one main factor that affects demand is the seasonality. In
the peak season, the prices of each service are set high by the enterprises to earn more. In the
opposite situation, when demands gets low than prices of the products set low by firm to attract
large number of visitors t. Services are the main and core benefits in the tourism industry
provided to the visitors so effective maintenance of the services is one and important
responsibility of TUI. By properly managing the supply and demand, the enterprise can achieve
success. So proper emphasis should be given by TUI to make a balance between supply and
demand of the services otherwise it will result in high prices of services in shortage of its supply
and this will create disequilibrium. So efforts should be done to maintain a equilibrium in the
demand and supply.
Being a service industry it become more complex for manger of tourist destination to
manage the supply. But it is very effective because it helps in saving the cost of business
operations. Excess of supply will give birth to unnecessary cost or in case of under supply
manager will fail to meet or satisfy the needs of various visitors. At today's business environment
needs of visitors are changing at a fast speed supply of tourist destinations are changing to meet
with the demands of customers and at the same time to achieve efficiency.
For example as large number of special events held at Turkey almost every month so it
become necessary for that country to maintain the special tourist services including their
accommodation and many more. As during the time of special events number of visitors will
increase there than to maintain special services or provide them the same is become very
necessary for the country. In absence of theses facilities satisfaction level of tourist van not be
achieved by the country.
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It is very necessary for every business to make a balance between the demand and
supply. In the tourism industry as the supply and demands of the customers are changing over
the time so it become very complex for the TUI to make a balance. For making a balance and
increase the quality of the services TUI increase the number of staff and also do some necessary
technological changes.
TASK 4
4.1 Positive and negative economic, environmental and social impacts of tourism
Tourism activity has number of impacts on economy of the nation (Webster and Ivanov,
2014). These can be positive or can be negative. Positive impact of social factors of tourism on
Turkey and Thailand can be the following:
 One of the main and positive impact of tourism is that it creates a number of
employment opportunities and helps in increasing the wealth of the country.
 It helps the people of the nation to meet with the new people from different culture and
learns something new about their lifestyle and behaviours.
 This results in development of the basic infrastructure of the nation and facilitates local
people to enjoy the same.
 It helps in increasing the youth exchange.
Negative impact
 Increasing the number of people will harm the basic infrastructure of the nation.
 Number of issues will arise like theft, crime and many more.
At one side social activities of tourism increase the standard of living of people of both
countries Turkey and Thailand by providing them employment opportunities on the other than it
will harm the basic infrastructure of bothcountries.
Economic impact
When number of tourists increase in the nation than it affect economically to the nation. The
economic impact on Turkey and Thailand can be both positive or can be negative. When the
traffic of visitors increases in the country it produce a lot of employment opportunities for the
local people and contribute in rise their standard of living (Medlik, 2012). This helps in raising
the wealth of country.
Positive impact
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 When a nation become attractive as a tourist destination than increases the income of that
country.
 Increase the standard of living of the people.
 Helps in development of hotels, basic services and many more things.
Negative impact
 Seasonality of the tourist traffic.
 Money spent on various facilities.
Other than this the activity of tourism has numerous an effects on the economy of nation.
Enterprises should try to maximise the positive impact of the activity and should try to minimise
the negative impacts.
From all these point it can be concluded that at one hand tourism activities help the basic
development of both countries Turkey and Thailand by increasing the number of hotels and
restaurants there. On the other hand government of both countries have to spent large amount of
funds on various tourism activities.
It is the responsibility of the manager of TUI to study the impact of all these factors and
then make the products and services in order to better satisfy the needs and wants of the
customers.
4.2 Strategies used to minimise the negative impacts and maximising the positive impacts.
There are number of strategies which can be used to minimise the negative impacts and
to maximise the positive impacts. Following strategies can be followed by TUI for decreasing
the negative impact of tourism impact:
 Government should give emphasis in maintain the tourist places and shouts try to develop
new palaces in order to attract more visitors there. This will positively increase the
number of visitors.
 Local people should be communicating to promote the cultural values in order to attract
the number of visitors.
 For reducing the negative impact TUI should try to make effective policies for the
visitors.
 There should be political stability in order to increase the number of visitors.
 Proper strategy should be made and implemented by the TUI to attract the number of
visitors.
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 It is necessary to first study about the needs and wants of the visitors in order to provide
them value for money and to satisfy their wants and at the same them influence them for
the repeat purchase (Moutinho, 2011).
 Try to minimise the unethical practices.
TUI can work in this ways or adopt all these ways in order to increase the number of visitors and
minimize the negative effect.
CONCLUSION
From the data above in the report it can be concluded that government of the nation plays
a big and important role in increasing and managing the visitor’s traffic. Tourism activity
impacts the economy of the nation both positively and negatively. This activity provides many
opportunities to the local people to show their skills and talents to the other members of the
country and earn also (Mowforth and Munt, 2015). Local people got a chance to interact with the
other people and get the opportunity to learn more about there culture and lifestyles and this
increase the knowledge of the local people. Tourism activity results in promoting the national
values to other people. There should be political stability in the nation to attract the customers.
There are number of factors which negatively affect the business operations but by adopting
proper strategies and implementing them TUI can minimize the effect of change.
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REFERENCES
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