Detailed Report: Travel and Tourism Sector Development

This report provides a comprehensive analysis of the travel and tourism sector, focusing on its historical development, structure, and the implications of political and economic factors. The report examines the historical milestones in the travel and tourism sector, the structure of the industry, and the impact of political changes on tourism. It also explores factors affecting tourism demand, changes in supply, and the positive and negative impacts of economic, social, and environmental factors. Furthermore, the report suggests strategies for increasing tourism. The report uses the TUI group as a case study, covering aspects like historical development, structure, and the influence of various factors on the sector's growth and development.

TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.1 Historical development in travel and tourism sector(Poster)...........................................3
1.2 Structure of travel and tourism sector(Leaflet)................................................................4
TASK2.............................................................................................................................................6
2.1 & 2.2 is covered in power point.......................................................................................6
2.3 Implications of political change in travel and tourism sector...........................................6
TASK3.............................................................................................................................................7
3.1 Factors affecting tourism demand....................................................................................7
3.2 Changes in supply to meet the effects of demand............................................................9
TASK4...........................................................................................................................................10
4.1 Positive and negative impacts of economic, social and environmental factors.............10
4.2 Suitable strategies for increasing the tourism ................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Travel and tourism sector is one of the fastest growing sector in the world. It helps in
improving the country economy as well as its condition. Also it helps in introducing many job
opportunity to local people because they know well about the place where they live (Blanke and
Chiesa,2013). Tourism comprises the activities of a person travelling to and stay in places which
are outside their environment. The main purpose behind travelling is just to spent some time for
leisure and for business purpose.
Some people spent their time with their friends and family members so that they can
make some memorable time with them which they never want to forgot. The present report is
based on TUI group which are one of the leading tour operators in UK. The main focus of this
assignment is on the key historical development in the travel and tourism sector which take place
from the last few years with its structure. Along with this how the government, local community
and the international agencies are going to affect the travel and tourism sector is also mentioned
in this report. Further more the impacts of these factors are also explain in detail.
TASK1
1.1 Historical development in travel and tourism sector(Poster)
From the ancient times travelling is a key factor which take place from the last many
years. People generally walk for miles while travelling from one place to another. This leads in
taking lot of time in reaching to a particular destination. But with the pace of time many new
technologies taking into account which helps in success of travel and tourism sector which
further leads in its development.
In 3000 bc people used their animals for travelling from one place to other place. It leads
in creating unstable mind and their health also. But in the modern world it is found that this
sector improve so much. Now the times vehicles and flights helps in reaching to the target
destination in a given period of time. The major key historical milestone in travel and tourism
sector are as follow:
1. In 1936, billy butlin introduced the first holiday package in Skegnes.
2. In 1938 a major thing was made in the travel and tourism sector industry in which the
Holiday with pay act was introduced.

3. In the 1950 it is found that all the key elements which are hotels, tour operators, travel
line etc. of travel and tourism industry work separately. This shows that their was lack of
cooperation between them and it is the major thing because of which this sector did not
get growth. But after some time a key change was determine in the year of 1950. tour
operators start working with all other factors and provide suitable facility to all visitors
and their clients.
4. By 1980 many agencies start offering travel services in which arrangement of holidays,
medical services, hiring of cars etc. were take place. This helps them most because it
enables the proper manage services to target customers.
5. From the last year few years it is found that this business growth getting too high because
all the elements are now working together. Through which the sufficient amount of
services which provide the quality package can be done in the appropriate manner.
Some other major development of this industry is as follow:
1. It helps in the improvement in economy of a country through which many problems get
solved.
2. Helps in introduce the job opportunities to the local group of people.
Travel and tourism sector is developing very rapidly. From the last 80-90 years it is found
that this sector developed so much and it also helps in the future development of a country so
that any country can made a special position in global world.
1.2 Structure of travel and tourism sector(Leaflet)
Structure is the procedure in which a company or an individual have to work. This helps
them in attain the target with minimum efforts and utilisation of resources. Along with this it also
leads in creating the planning function in a person. A proper and appropriate structure and format
have to get followed for getting the maximum number of outcome. An appropriate structure
helps in providing the quality service also.
According to the travel and tourism sector context its structure has got changed from the
past few years. The TUI group also changed their working pattern so that they can attain target
customers through which their profit margin can get increase and their organisation will further
introduced at the global level. The structure of the travel and tourism industry is as follow:

1. The key organisation of the travel and tourism industry are the tour operators, services
which helps in facilitating to reach to the destination, accommodation service providers,
local travel, food and shopping or entertainment and tour sites.
2. They provide different type of products and services to their clients in which tour
operators serve the facility of operating the visit by giving various rebate coupons.
Transportation service includes various supportive system through which an individual
can reach to target destination. Once a person reach to target location, it need a place
where relaxation activity get done. They provide quality service with the help of
rendering best room to their guest. Local travelling companies and route buses helps the
visitors to reach to that location which they want to see. This work is also done with the
help of tour operators. They arrange bus facility, cab facility to their customers. And at
last the touring sites or entertainment places. These are the mark location which visitors
wants to see.
3. Their main objectives is just to satisfy their customers with quality services and earn
maximum profit through them. The quality services also helps them in return visit of
customers. It is a long term benefit for these organisation.
4. These all sectors are interrelated with each other. Their dependencies can get by analyse
that if one of the element get missed whole services get affected. Like without tour
operators it is not possible to manage transportation facility, a guide facility at tour site
and proper accommodation facility at marked destination. So all are interrelated with
each other.
5. For this purpose proper coordination have to be maintained between all these sectors
because it helps them in providing quality service and each of the one success is also can
achieve with the help of proper coordination.

TASK2
2.1 & 2.2 is covered in power point
2.3 Implications of political change in travel and tourism sector
TRAVEL AND TOURISM SECTOR
Date: 28th April 2017
Political stability is a compulsory subject for any country. This leads in reduce the situation of
insecurity and safety. Political stability promotes the good and safe environment and it also
depicts the good economic condition of a country. If the government is not stable then it leads
in create a negative mindset of people.
In the context of travel and tourism sector political stability is must because if
government got changed the policies also get varied. This leads in create the disturbance in
mind of tourist that their they are not more secure in that particular country. It become a big
question on their security. There are many countries in all over the world which are halted just
because of political change environment.
But not all the time it reflects the negative change, sometime this change reflects a
positive change also. Like at the time of election in UK their currency got decreased as a result
of economic breakdown. This decline become opportunity for many people to visit at Britain
because now it become cheaper to them to travel to England.
After the Brexit, when Britain got exit from the European union implied the positive
influence. The number of Chinese visitors in UK got increased because the rate of pound as
compared to Yuan is relatively cheap. The visa life extended from six months to two years . It is
another important factor which helps in increasing the number of tourist. This situation provide
a favourable implication on the tourism sector because number of visitors get increased. The
another major thing which helps in increasing the number of Chinese tourist are opening of
many new visa centre. All such things shows that UK really wants to get and attract more and
more tourist in their country. This is a type of positive change when two countries got separate
from each other. This is an example of political change in UK with the positive implication.
Following are some of the implications of the political changes:
1. It creates in creating a kind set which signifies that the location is not in favour with the
purpose of travelling.

2. Leads in create the improper development of the tourism sector.
3. Create disturbance in understanding the policies of a country due to change in
government.
4. Reduce the number of tourist which shows is a negative factor,
5. Fluctuate the currency rate which might be increase the number of tourist.
6. Policy formulation should be made according to the tourist it is also a political activity.
Hence, it is analyse from the above mention things that political stability aid a country
as well as all the tour operators in their success. It helps in provide the guarantee of security of
all the visitors as well as offer quality services. Another major thing is that government stability
avoids the changes in policies. So this also helps in attract large number of tourist. TUI group
have to formulate their business by taking this thing into their organisational strategies. This
helps them most in covering from many unfavourable situations.
TASK3
3.1 Factors affecting tourism demand
There is different range of factors which affect the tourism demand most. There are
certain factors which influence the demand most. These factors are the essential part which helps
in increasing the demand of tourist for a particular destination. These factors are divided into few
category which are as follow:
1. Economy
2. Politics
3. Crises and threat
4. Demographic change
5. Technology
6. Price
7. Quality
8. Social
All these factors are directly related with the tourism demand. Like if economic condition
of representative country is good then everybody wants to go there. Some economical factors
which affect the demand are the recession, inflation (Chen,2011). These two are the major facts
which affect the demand according to the economical factor.

Also the change in consumer preference is also a major factor which affect the demand
most. Because if their taste got changed they avoid to use to go any destination.
The above mentioned factors are the main reason who affect the demand of travel and
tourism sector. The brief evaluation of these factors are as follow:
Economy: If the currency rates are high then it affects the demand of tourist. Level of income,
purchasing power of the customer all such are the important factors which affect the demand of
the consumers. These are economical factors which affect the demand while taking into
consideration about the economical factors. Interest rates and the inflation rate are the essential
facts which disturb the tourism sector (Deery,Jago and Fredline,2012). Like in the representative
country the inflation is taking place then no one is going to visit such country. This affect the
tourist ratio so much.
Political: Political factor includes the stability of the government. If the government is not stable
them it affects the opinion about the country of the target number of visitors. It arise a big
question on the safety of the tourist. Their safety become one of the critical issue. Hence, this
factor affects most than the any other factor.
Crises and threat: Crises can be considered as the unforeseen calamities which affect the
transportation facility to the target destination. These crises are not in the control of any one they
are totally belong to the nation. It is major threat which affect the business of the tourist sector
completely or sometimes it finish the whole business entities. Hence, these are those factors
which are not in control of each and every one and directly related with the nature.
Demographic change: If cited organisation get failed in complete the needs and demand of each
and every group then it affect the business of the travel and tourism sector. If they failed in do so
their business will leads to the shut down position (Erkuş and Eraydın,2010). Hence, according
to this factor organisation have to take care about each and every group of people and provide
services to them from such culture which they belong.
Technology: This factor can use by the TUI group because with the help of this they can expand
their business to all over the world. It is examine that tourism sector get its growth after the
technology has fully developed. This helps them in increasing their industry to all over the
world. New technologies helps in making work load easy. Like now an individual can book their
tickets through online which helps them in going to air port and cue in a line for ticket booking.
Hence, this is one of the major factor because this can expand with the help of this concern only.

Price: The price of the packages which are generally offered by the organisation can affect the
demand completely. If the prices are favourable then it helps them most because attractive price
packages are helpful for getting the target customers. The attractive price package includes the
such type of price like 10999 etc. These prices are helpful in getting the more and more
customers. This also leads in increase the tourism sector demand.
Quality: The quality of packages is also another factor which affects the demand. Organisation
haven to serve less price packages with high quality services with leading accommodation
facility (Evans,Stonehouse and Campbell,2012). This helps in increase the demand. Along with
this it also helps in rise ion the profitability of business.
3.2 Changes in supply to meet the effects of demand
For attaining the supply which is equal to the demand can only be done with the help of
completing the demand which is in the market. This helps in maintain an equilibrium point
where supply= demand. The supply have modelled by five independent factors which are:
transportation, services, attraction, information and promotion. From all of the five components
the one of the most important is the attraction.
The demand in tourism sector is related with the famous spots to whom the tourist come
to look them. Hence, TUI group have to control the demand of the target market in the tourism
sector which can only be control if they provide appropriate amount of service top their clients.
Like if they need room for 10 people they have to book only 10 rooms. This helps in
avoiding the unnecessary flow of demand in the market and made a equilibrium point in the
tourism sector. This process can also be managed with the help of technological intermediaries.
These are the applications, or sources through which an individual can contact with tour
operators (Goeldner and Ritchie,2012). This helps them in knowing the proper number of clients
for which they have to arrange the quality service.
The supply can only control with the proper and appropriate management demand. In
demand if prices are high then its means the supply is low. So, TUI have to control this fact and
supply only such amount of service which is really needed at the market.
Seasonality is a main thing of the demand and supply concept. At the time of peak season
petition of each and every product get rises. So, organisation have to maintain proper horizontal
and vertical integration with all other organisations which are related with tourism sector. This
helps them in control the seasonality factor.

The demand factors can get control with the help of optimum supply of the services. The
services are the essential part in the travel and tourism sector. Cited organisation have to provide
the quality service to their clients through which they can manage their guest. Also they have to
maintain proper sustainability. Sustainability means the remaining in the market for long term.
This can only be done with the help of proper and appropriate supply of services in the market
with maintain a proper quality and price.
TASK4
4.1 Positive and negative impacts of economic, social and environmental factors
Each and very factor have some negative and positive impacts which influence the
business most. So the positive and negative impacts of the economical, social and environmental
factors are as follow:
Economical factor: The positive impact on the economy by the travel and tourism sector is that
it helps in increasing the GDP of the country (Heung and Kucukust,2011). Also helps in
introducing the job opportunities for many local people. This leads in improving their lifestyle
also. Which shows that their disposable income ratio is also increase day by day.
One of the major negative impact on the economy is that tourism industry is based on
season. At the time of off season many people lose their jobs and it leads in decline in the GDP
also.
Social factor: Social factors are such factors which are related with the society and their groups.
Different groups have different culture and view points. TUI group provide a platform for these
society members to introduce their culture and creativity in front of tourist and visitors. This
leads in increase their income so that their lifestyle can be improved.
But the major drawback of this factor is that tourist come from other country start
providing drugs, alcohol to the local people. This affect their health. So when different people
meet together it affects their choice also.
Environmental factor: As per the tourist increase for visiting to different countries it enables the
tour operators and government to start doing such activities like securing the wildlife etc. This
helps in securing the environment of that country (Kimbu and Ngoasong,2013). As the visitors
increase TUI group start performing several activities like promoting those acts in which they

can provide necessary information which is related to safe environment. So that many people
will follow this activity.
But the major negative impact of increasing the tourist is that it leads in harm the natural
resources. They start spoiling the natural elements which are present in the nature.
4.2 Suitable strategies for increasing the tourism
Several; strategies which can use by cited organisation to reduce the negative impacts are
as follow:
1. Provide proper remuneration to such people which helps them at the time of peak season.
Also take care about their families this helps them in gain their faith.
2. The social factor can be secure with the help signing a proper contract with guest. This
helps them in gaining the faith and make healthy relationship with their clients.
3. Also they have to bound their clients if they found in any illegal activity they are not
going to support them.
4. Also they have to promotes the sustainable tourism factor in which they have to guide
their guest to do such activities which are in favour of environment.
All these things can get done with the help of making strategies which are made while
taking all the factors into account (Látková and Vogt,2012). This helps them most in supporting
the clean and healthy tourism in UK.
CONCLUSION
It is concluded form the above report that travel and tourism sector helps in the growth of
a country economy. But some factors affect its most like economical factor, instability in
political groups etc. This leads in affect the most of the activates of the travel and tourism sector.
There are many negative facts which affect the business of TUI group but after formulating
appropriate strategies it helps them in their future success.

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