Impact of Trends and Issues on the Travel and Tourism Sector

This report provides an in-depth analysis of contemporary issues and trends affecting the travel and tourism sector, with a focus on Titan Travel, a multinational British company. It examines issues such as enhanced security requirements, technological advancements, the emergence of new markets, terrorism, severe weather, international conflicts, and inflation rates. The report utilizes various methods to analyze these issues, including an examination of inbound and outbound tourism trends, niche markets like adventure tourism and agrotourism, and the application of PEST analysis to assess political, economic, social, and technological factors. It also explores how the travel and tourism sector responds to change, develops strategic responses, and addresses the impacts of these issues and trends, including the consequences of failing to adapt to evolving market conditions. The analysis incorporates statistical data and examples to illustrate the challenges and opportunities within the industry.

Contemporary issues in
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues bringing change in travel and tourism sector.............................................................1
1.2 Analysing current issues using methods...............................................................................2
TASK 2............................................................................................................................................3
2.1 Current trends influencing change in travel and tourism sector...........................................3
2.2 Analysing current trends using correct techniques...............................................................5
TASK 3............................................................................................................................................5
3.1 Response of travel and tourism sector towards change........................................................5
3.2 Developing strategies for responding towards changes in travel business...........................6
3.3 Justification of strategies used for responding to change......................................................7
TASK 4............................................................................................................................................8
4.1 Impacts of issues and trends that bring change in travel and tourism sector........................8
4.2 Consequences of business that fails to respond to changes..................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The changes are considered as most important part of every business and then if these changes
are positive in nature then it can provide growth to the company. Tourist industry is reasoned as
the essential sector for the today time period. Recently, tourism sector became more profitable
sector so there is new entrance in this industry. It directly enhancing economic growth of the
country in effective manner. This will also the main reason for became more competitive
advantage and challenging. This report is based on Titan Travel which is multinational British
company of UK (Dickinson and et. al., 2014). It will provide best and luxurious hotels and other
facilities which demanded by customers. It also includes some necessary details which are
responsible for doing changes in tourism industry and in this report also using various methods.
It will describe the current and future tendency which directly determine the developing
strategies and effective changes. This help in making business more responsible towards
travelling sector and its impacts on tourism industry that will be considered.
TASK 1
1.1 Issues bringing change in travel and tourism sector
In this sector, there are different issues which are responsible for deliver changes in effective
manner. These problems also diverge from one place to another. There are some changes which
take place because different like customers, authorities and other tourism agency etc. The attacks
of 9/11 on London that convince organisations for making changes in their plans and strategies.
It is the responsibility of every firm is to identify these issues and try to work on it. Titan travel
can be analysed these problems which are directly answerable for modification. There are some
current issues which are responsible for alteration are as under:
 Requirement of enhanced security- Tourism industry is increasing day by day that will
modify safety which became more difficult factor in front of authorities of specific
country as well as travelling and tourism sector (Hall and Page, 2014). It is the duty of
the country is to provide security to their tourist because there are large number of
travellers who come regularly. They will also improve their safety and health system
which attracting more customers. In the country, there are different international tourists
were visited so this will increase fright of terrorist. They need to protect their people for
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strictly checking should be done of all tourists who come for any purpose. It will assist in
reducing entry of number of people to the country.
 Advancement in technologies- This is most important factor which help in changing and
improving in the sector of travel and tourism industry. Currently, there are many sources
of search engine which assist in choosing best destination for the travellers and they plan
for their vacations in that place. They will also contact with likely travel agency company
which arrange their whole trip (Hall, 2013). It also assists in providing realistic tour for
their customers in beautiful location. This system is assistance for many hotel industry
and tour operators. So, advancement of technology is important for brining changes in
travel and tourism industry.
 Beginning of new markets- Today's world, market is growing in the effective manner.
There are various customers who approach some travel agencies for deciding their
destination plan to best place. Then organisation will ready to satisfy their demand and
needs in proper manner. This will also possible that firms are not prepared for facing
these situations and conditions because of inaccessibility of major resources and some
other problems arises. So, it is essential for Titan travels is to ready for face some
challenging situations that will occurs on their directions.
 Terrorism- Travel and tourism is the largest business in today's world. Terrorist activity is
not happened by giving any notice. The recent terrorist activities attack take place in
different areas where most of the company plan holiday package that are affected by
these actions. There are many countries which suffers from these attacks that includes
Egypt and turkey.
 Severe weather- It is important for the company is to analyse the weather before planning
to go on tour. There are various changes occurs in weather of few countries. The research
are facilitate for adaptive capacity of tourist towards environmental condition change and
variableness.
 International conflicts- Travel and tourism are directly affect by global issues and
problems which occurs at the time of tour. There are various challenges arises by
international conflicts and errors in proper manner.
 Inflation rate- Some people are also ignore for taking holiday package by increasing
inflation rate in price of destination and specific locations.
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1.2 Analysing current issues using methods
Travel and tourism industry is determined as one of the important sector of the whole
world and this will also affect by different other industries. These types of issues are different
from one place to another place. In 2015, UK, became the 8th biggest tourist destination of world
and approx. 36.115 million people visited in the country. But still now, country also facing these
issues of tourism. On the other side, political situation creates various issues or problems and that
will enhance fear of terrorism (Ladkin, 2011). It directly effects on country economy that make
such issues. By using this suitable method, these issues will identify on time and they provide
time to make proper changes and also take corrective steps which is right for the organisation. It
is essential for industries for increasing their development and success.
Titan travel can identify some issues such as advancement of technology, position of
economy, growing the new market, increase and decrease in inflation rate etc. Management has
to framework its strategies so that they can analyse some issues and try to understand such issues
and also try to solve them. Titan travel should check that in which separate they are shifting
control and tries to accurate it. It is the responsibility of management is to aware their customers
for doing best work and provide benefit to the visitors which cannot face any issue or problems
from their position. There are different factors which can be analysed are as follows:
Terrorism and Counter Terrorism measure
The major activities which create threats in UK is terrorist attacks. Government has to
take different measures which help in controlling difficult situations and also it is main reason of
Tourism industry that will affected and brining new changes in better manner (Marson, 2011).
There are number of visitors who visit to UK for seeing destination and they hope that company
will provide best security services during travelling from one place to another.
International and local laws
There are different types of taxes which are levied on tourists which will affect growth in
travel and tourism sector. By this tax, there are large number of reduction in customers’ volume
in this industry. Some people who are come from outside the country they cannot afford more
money for paying amount of tax and expenditure of tour. It will directly affect visitors coming
rate who are come in that location. These types of laws and regulations act as barriers and
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obstacle but still it will help in making protective country. Because this act will reduce the
entrance of wrong intentional people for coming in the country.
TASK 2
2.1 Current trends influencing change in travel and tourism sector
It is essential for the company is to know the reason of basic changes in this sector
policies and program (Morgan, Pritchard and Pride, 2011). There are certain trends which are
discussed as under:
In Bound tourism- In this sector, the organisation measures that how many people for
come to visit in UK and also know that they are happy for services which provided to them.
Summary of UK traveller in
2016
Statistics Change from last years
Number of travellers 32.10 m 5.15%
Total spending 22.13 m 4.12%
Total number of nights spent 211.2 m 2.56%
Average duration of visit 8.36 m -9.36%
Average expend per stay 699 -1.63%
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Illustration 1: Decrease in Outbound Tourism, 2017
(Source: Decrease in Outbound Tourism, 2017)
Outbound Tourism- It states the percentage of travellers who leave UK and visit to
another country. This will prepare the data according to the expenditure that people before
leaving the country. United Kingdom will decrease in this portion because there are various
people who are left UK and travel to the other countries day by day (Moutinho, 2011). This act
will directly affect country economic growth and tourism sector.
This sector totally depends upon choice of visitors where they want to visit and where
they do not go for any purpose. There are different types of niche markets in tourism industry
which are as follows:
Adventure Tourism- this is that sector which mainly liked by those people who are
interested to go on adventurous place. So, when customers come for visit a travel agency firstly
required to understand their interest and demand which help in making their package where they
can plan holiday. They also provide them best facilities and services that are needed to be known
by customers.
Agrotourism- There are various people who like visit old and ancient places and have
make interest in knowing information of rural or history existence. It is needed that the travel
agencies should plan to provide these places for visit and give direction for helping visitors for
understanding more locations properly (Pomering, Noble and Johnson, 2011). Some people are
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also enthusiasm to know the different countries history so travel companies will provide them
that holiday package where they can visit to that particular place.
There are many sections that include dark, green, grey, sports tourism, etc. which give
choice to the desired customers who are willing to visit this type of locations. In tourism sector,
they are developing Adventure tourism and sports tourism which are loving to experience these
tourism sectors especially young people are more interested to reserve and advance booking of
that place. On the other side, sports tourism is that place where different types of activities and
functions of sports are organised and arranged by country. These types of tourism sectors help in
developing more profit and revenue by attracting large number of customers towards these
locations.
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2.2 Analysing current trends using correct techniques
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TASK 3
3.1 Response of travel and tourism sector towards change
This will analyse that travel and tourism can react towards modification and organisation
have to execute PEST analysis. It is essential area that will covered this segment. International
Airline group has to perform PEST analysis which shows the changes that will occurs in future
time period (Pritchard, Morgan and Ateljevic, 2011). It stands for political, economic, social and
technological factors. PEST analysis is as under: Political factors- It is that factor which directly impact on country growth. There is some
organisation that are expand in various countries, but condition is different in each
country. This is essential for analysing and researching these factors which create
changes within an enterprise. Each country has their different government and various
rules and regulations. It is duty of common people is to strictly follow these rules and
norms and firm will change their policies and plans according to the alteration in
governments norms. By this company will make new rules and regulations according to
the demand of authorities. Economic factors- There are many fluctuations in plans and policies of government and
it is responsibility of people to follow it in better manner. If any variations in transaction
rate it must be ascertained by firm’s administration to its employees. Before starting
some business in country, it is important to know its currency rate which should be
ascertained presently and if currency rate is suitable then firm will not have to take any
steps to enhancing profit (Sharpley and Telfer, 2014). But if profit amount is reduced
then some activity will be taken place by the organisation. Social factors- It is that factor which help in knowing current trends and fashions which
are demanded by customers. Firm will also examine buyers needs and wants and provide
them their choice-able products and services. It is necessary step because it assists in
enhancing profit and gain trust of consumers. So, customers changes are totally based on
changes in current trends. An enterprise will adopt new trends and fashions equipment
which help in attracting more buyers towards their goods and services.
 Technological factors- This is that factor which continuously changes according to the
demand of customers. Company need to adopt latest techniques and equipment which
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assist in attracting large number of buyers towards specific goods and services. It will
also change the economy of the country and it directly effects on industry growth and
success. This will provide facility to book advance tickets to their visitors who willing to
come and see destination place in their free time. Currently, people are booking their
tickets before six months of travel (Contemporary issues in travel and tourism. 2016).
Technology support in planning holidays in advance.
Therefore, International Airlines Group have to give response to these changes in proper
manner. Management provide various resources to firm so that they are capable to evaluate these
modifications. An organisation must conduct PEST analysis which will help in knowing
regarding the positive changes that will directly affects these alterations properly. This will assist
in analysing external factors that effects on business operations and growth.
3.2 Developing strategies for responding towards changes in travel business
Travel and tourism sector supports various businesses for preserving growth of economy.
Such as food companies, hotel industries, airline industry etc. These sectors are properly running,
and it is will indirectly enhancing the travel and tourism organisation growth. There are different
types of functions and activities that require to performed by firm and, they have to reach their
goals whether it is long and short term.
International airline group is one of the largest airline group that has more 600 aircraft
which provide ride to 250 destinations. This business is profitable for making more income and
revenue and in this segment, is British Airways, Vueling, Aer Lingus and Iberia. There are many
other changes which take place in British airways and Iberia and it must redevelop their
strategies. There are various steps which are as under:
British Airways
It is one of the leading airline organisation of the country. It will lead in providing
different services according to the demand of the customers. The basic change in market
conditions, firm will have to bring such modification in presenting new plans or policies, latest
technologies, new services etc. Technology act as another strategic factor for adopting different
tools and techniques for increasing growth and development of countries. There are various
technologies which made for protecting country people by terrorist activities and other problems.
Company will use different types of technologies by which they identify wrong person and know
their intention by using these techniques. One is self checking in passenger machine in which
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