Comprehensive Report: Travel and Tourism Sector Analysis and TUI Group

This report offers a comprehensive analysis of the travel and tourism sector, examining its historical development, the roles of government and international agencies, and the influence of local and national policies. It delves into the implications of political changes, such as Brexit and US presidential elections, on tourism in the UK and USA. The report also includes a management report that explores factors influencing tourism demand, including economic, socio-psychological, and technological aspects, and assesses how the TUI Group adapts to meet market trends. Furthermore, it investigates the social, economic, and environmental impacts of TUI's operations in Greece and Sri Lanka, proposing strategies to mitigate negative effects and maximize positive contributions. The report utilizes various sources, including poster presentations, PPTs, and articles, to provide a detailed overview of the sector's dynamics and the strategies employed by a major player like TUI.

The Travel and Tourism Sector
TRAVEL AND TOURISM SECTOR
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The Travel and Tourism Sector
Table of content
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
1.1 Historic development in travel and tourism sector (Refer to poster presentation)....................4
Task 2...............................................................................................................................................4
2.1 Role of government sponsored bodies, government and international agencies in travel and
tourism (Refer to PPT).....................................................................................................................4
2.2 Influence of local and national policies upon success of travel and tourism sector (PPT).......4
2.3 Implications of political change upon travel and tourism sector in UK and USA (Article).....4
Task 3 (Written management report)...............................................................................................5
3.1 Influential factors to tourism demand........................................................................................6
3.2 Change in supply of TUI group for meeting demand................................................................8
Task 4 (Written management report)...............................................................................................9
4.1 Social, economic and environmental impact of tourism activities of TUI groups in Greece
and Sri Lanka...................................................................................................................................9
4.2 Strategies applicable for reducing the negative and maximising the positive impacts of TUI
business operations........................................................................................................................11
Conclusion.....................................................................................................................................12
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The Travel and Tourism Sector
Introduction
Tourism is the socio-economic phenomenon that is characterised by movement of people
or groups outside their actual environment for personal, professional or recreational purposes
(Walker and Walker, 2011). Tourism industry of United Kingdom has flourished massively since
its decision of Brexit and exhibits further prospect of growth. Understanding the tourism
business with reference to the contemporary market environment of the tourism industry is
essential for the travel and tourism entities in the current market to ensure that the company’s
policies and operational decisions remain in line with the market. This particular study aims to
study different aspects of travel and tourism sector and factors that influence business prospects
of the market entities. For this, the researcher has assumed different functional positions in TUI
Group and conducted four different tasks. TUI group is the market leader in the global tourism
business with the turnover of €17.2 Billion in financial year 2015-2016 (TUI Group, 2017).
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The Travel and Tourism Sector
Task 1
1.1 Historic development in travel and tourism sector (Refer to poster
presentation)
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The Travel and Tourism Sector
Explanation: the poster describes various historic developments in travel and tourism sector.
The earliest stage from 3000 BC to 2nd BC is known as the Empire period in which tourism was
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The Travel and Tourism Sector
conducted with the purpose of making pilgrimage to religious places. Following this, Middle
Age Period started from 500 to 1400 AD and is characterized by flourishing state of religious
travels. The next development is known as Grand tour and dates back to 16th century. It was
marked by rich English people engaging in luxurious travels. Post – Industrial tourism ranges
from 1850 to 1900 AD and comprised of various technological and social changes. Next came
the era of communication and transportation advancement fro 1945 AD to 1990s and is known as
the Post War Period. During this period, communication and transportation advancements led to
rapid tourism growth.
1.2
As per Lerper’s tourism model, there are basic five elements of the tourism operations of a
company.
HUMAN ELEMENT Tourists
The individual that consumes the product that tourism organisations offer in the market
Purpose of travelling: leisure, business, family, medical or academic
TUI possesses 30 million such tourists that have at least once consumed its services
(TUITravel Media Centre – Thomson, 2017)
Traveller generating region (TGR)
The place where generally tour begins and ends
Tourist destination region (TDR)
Place where tourists visit during the tours
TUI currently avails its customers, opportunity to visit around 180 regions across the globe
GEOGRAPHIC
ELEMENT
Transit Route
This is the route where the travel takes place
TUI uses multiple routes and travel measures such as cruise, air carrier, and motor vehicles for this purpose
INDUSTRIAL
ELEMENT
Industry
Components that generate and avail the services
Incorporates common interest organisations such as Hotels, restaurants, airlines and other
transportations, local travel agencies, organisers of recreational activities such as clubs,
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The Travel and Tourism Sector
special events, attractions (Weaver, 2012)
TUI currently works in collaboration with 5 airline operations that avail 150 aircraft and
14 cruise liners for transportation
It also works with around 350 hotels and 1600 travel agencies across the world
INTEGRATION WITHIN THE TRAVEL AND TOURISM INDUSTRY
While the small-scale tourism operators within the UK tourism sector undertake horizontal integration, large corporate
entities such as TUI utilises the vertical integration (TUITravel Media Centre – Thomson, 2017). It helps the company to
link the services and its different agencies at different layers of the operational chain. TUI utilises different integration
strategies for its operation as per the needs, for instance, it utilises forward vertical integration in case of travel agency as
it owns its chain of travel agency while it utilises backwards vertical integration for stay and transport services. The
organisation avails airline services via TUI Fly and for the stay, it provides 350 TUI hotels.
TRANSPORT
This is an important component in the structure of travel and tourism industry. It comprises of travel services by road,
rail, air and water. These help the customers to reach their destination. This element helps in bringing people together
thereby sustaining tourism by facilitating trade.
TOURISM SERVICES
These are provided by the tour operators by putting together different components of a holiday and selling the complete
package to the customers. These can be inbound, outbound and domestic tourism services.
ATTRACTIONS
There are different types of attractions such as natural and man-made. Attraction act as an appeal to the domestic as well
as inbound tourism market.
EVENTS
Events are a type of attraction that appeals to the tourists. For example, Edinburgh Festival or Notting Hill Festival are
events that attract a number of visitors.
ACCOMMODATION
This is another element of travel and tourism industry. Accommodations may be of different types such as hotels,
holiday parks and campsites, guest accommodation, youth hostels etc.
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The Travel and Tourism Sector
REFERENCE LIST
Weaver, D.B., (2012). Organic, incremental and induced paths to sustainable mass tourism convergence. Tourism Management, 33(5), pp.1030-
1037
TUITravel Media Centre - Thomson. (2017). Thomson and First Choice predict travel trends for 2016 - TUITravel Media Centre - Thomson .
Available at: http://press.thomson.co.uk/thomson-and-first-choice-predict-travel-trends-for-2016/ [Accessed 10 Apr. 2017]
Task 2
2.1 Role of government sponsored bodies, government and international
agencies in travel and tourism (Refer to PPT)
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The Travel and Tourism Sector
The business operations in travel and tourism industry are determined by taxes levied by the
government. Hence, the role of government is assessed on the basis of aspects such as visa
systems, taxes,
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The Travel and Tourism Sector
Government sponsored agencies such as London & Partners pact ravel and tourism industry by
working to enhance the authenticity of the UK culture
Various international agencies such as World Tourism Organization (WTO) play an important
role in the industry by developing global code of ethics.
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The Travel and Tourism Sector
International Air Transport Association design policies and regulations which have a significant
role in the operations of the selected industry.
2.2 Influence of local and national policies upon success of travel and tourism
sector (PPT)
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The Travel and Tourism Sector
Increased validity of visa for Chinese tourists has led to multiple visits of these tourists to UK.
Hence, this national policy has influenced the success of travel and tourism sector.
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