Report: Contemporary Issues and Strategies in Travel & Tourism

This report examines contemporary issues within the travel and tourism industry, focusing on how businesses can adapt and thrive in a dynamic environment. It begins by analyzing the key issues driving change, such as technological advancements, emerging markets, and resource constraints, and suggests methods like market research and risk assessment to identify and address these challenges. The report then explores how tourism businesses, specifically British Airways and Iberia, can respond to these changes through strategies like PEST analysis, market penetration, and the marketing mix. It also discusses the impact of these issues on businesses like Myla Travel and the consequences of failing to adapt. The report concludes by emphasizing the importance of proactive strategies and adaptability in the face of evolving market conditions.

Contemporary issues in
Travel & Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
3.1 How tourism business can respond to change.......................................................................1
3.2 Develop strategies for responding towards changes.............................................................2
3.3 Justify the strategies which are using in response to modification.......................................3
TASK 4............................................................................................................................................3
4.1 Impact of issues and trends on driven business context .......................................................3
4.2 Consequences when business get failed to deal with changes..............................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Travel tourism is one of the industry which is growing day by day and undertake
changes. But certain factors put a huge impact on business functions and operations of travelling
sector. Certain issues are occurred cause of high level of involvement of technological and social
changes (Becker, 2016). The report will be described how travelling companies can expand
themselves. It will be also involve that managers have to adopt certain strategies and policies in
order to respond towards target market.
TASK 1
1.1 Analyse issues which can driven up changes
Now these days, travel and tourism industry has developing day by day. But due to
dynamic nature of environment travelling companies are facing different issues and challenges
which can reduces its market image and vitality in an effective manner. Below mentioned certain
issues that is being faced by travelling agencies: -
 Technological advancement – In this modern era, new tools and techniques are
generating day by day. This flourishment helps many companies to reach their target
customers in a certain time period. Due to lack of money and time, it is not possible for
managers to adopt all innovative tools. Therefore, such companies cannot stay for long
term in global environment (Werthner and et. al., 2015). Through which, employers of
Snow deal also cannot achieve their goals and objectives.
 Emergence of new markets – Market is getting enhancing day by day due to various areas
of expansion. But it can also become issue for the refereed business organisation. Due to
different market, companies cannot reach with their target customers in an effective
manner. Along with this, it also reduces the chances of getting high competitive
advantage cause of wide range competitors. Apart from this, lack of available resources is
one of the major issue of travelling companies. If firms will not have appropriate
resources then it cannot recognise changing behaviour of customers; this might be created
higher dissatisfaction level among visitors.
1.2 Analyse current issues by using appropriate methods
Barriers and obstacles are the major thing which put a huge impact on effectiveness of
business operations of travelling companies. In order to reduce all these issues and problems
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managers have to adopt crucial methods. Along with this, visitors always want such countries
which is economically suitable for them. In order to determine, issues and barriers decision
makers needs to adopt certain methods, such are stated as below: -
 Market research – It is the foremost method in order to recognise business issues.
Marketing research can be done through two ways, i.e. primary data and secondary data.
In addition, in primary data collection method, managers of Snow deal are capable to find
out current issues of tourist which are being faced by them. Primary research is
conducted through questionnaire and online surveys after their trip (Williams and Lew,
2014). Apart from this, in secondary source of data collection employers take decisions
on the basis of past data and information.
 Risk assessment – By analysing future risks through by regulating internal and external
environment analysis, managers of Snow Deal can also knows future risks which will
affect visitors interest.
TASK 3
3.1 How tourism business can respond to change
Changes are essential in business environment; it might be influence company's working
operations in direct as well as indirect manner. In addition, British Airways can quickly responds
towards any changes. For this purpose, these travelling industries are adopted an impressive
approach; it will be also helpful for it to examine future changes. In order to achieve goals and
objectives, managers have to conduct PEST analysis.
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(Source: External environmental analysis, 2017)
PEST analysis of British Airways and Iberia: -
Political factors In UK, due to unstable political environment, travelling business are
faced many issues. Government of every country, has different rules
and regulations whereas British Airways is performed all over the
world. Thus, if there is any changes in government laws; business
operations of these companies would be also affected.
Economical factors It involves unemployment, interest rate, bank rates, income level and
poverty. In UK, due to economic recession in 2008, many people were
terminated from their jobs. Due to lower income level of people, they
are able to spend much on travelling (Cohen and Cohen, 2015).
Social factors In this, competitive era, customers needs and wants are rapidly
changing. It is quite impossible for travelling agencies to fulfil their
demands in an effective manner. Social factors also involves- values,
beliefs, attitude, behaviour, morale of visitors.
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Illustration 1: PEST analysis

Technological factors Modification in technology or innovation is the good way, through
which travelling companies can react towards environmental changes
in an effective manner. For this purpose, managers need to train their
employees as they can accept changes.
3.2 Develop strategies for responding towards changes
Sometimes changes are appropriate for business organisations. Therefore, it is essential
for travelling companies to formulate effective strategies in order to deal with environmental
changes. Along with this, managers also have to determine their goals and objectives and tries to
achieve in a certain time period (Dickinson and et. al., 2014). International Airline group is one
of largest group of travelling business by having 500 aircraft that are flying across 200 locations.
In which, British Airways and Iberia are the most profitable travelling agencies; both
organisations have different strategies in order to grow and succeed in market.
Business strategy for British Airlines-
In order to get high competitive advantage, the firm has to adopt market penetration
strategy. In this, company will provide its current services in existing market by identifying their
needs and wants. Managers can also uses effective promotional techniques in order to reach large
number of customers. Along with this, market penetration strategy is assistive in increasing
market share of existing products and services of the company. In this perspective, the refereed
firm can easily respond environmental changes.
Business strategy for Iberia: -
Iberia is another part of IAG, which also needs to formulate its current polices as per
business environment. It can endorse marketing mix because it is a service marketing firm as it
need to use 4Ps of marketing. These 4 elements are- product, price, place and promotion (Hall
and Page, 2014). According to this, travelling company need to focuses on serving effective
products and services to customers; it also have to keep average prices of its products so as
access to large number of people. Company require to choose effective tools of promotion in
order to promote itself in target market.
3.3 Justify the strategies which are using in response to modification
All these above mentioned will put a huge impact on working activities on Airline
business. For British Airways, if firm will be used market penetration strategy then it will easily
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sustain competitive advantage in a minimum time period. It will also helps companies to reach
market segmentation and fulfil customers needs in an effective manner. Apart from this, Iberia is
using marketing mix in order to ascertain its goals and objectives. It also forces business
organisation to use various promotional channels and adopt new techniques in order to grow and
succeed in target market.
TASK 4
4.1 Impact of issues and trends on driven business context
There are certain issues and problems are being faced by travelling companies. Myla
travel is a travelling agency that is located in UK by having 10 branches over there. As it is
facing many issues and challenges which also affect market reputation of the firm. Due to
alternation in business enterprise, it also reduces company's productivity and performance.
Business trends also affect employment level; because if people are get healthy and positive
working environment (Hannam, Butler and Paris, 2014). They do not prefer to retain their for
long term period. Another main issue is, lack of technology, the firm is not capable to increase its
sales and profitability in global environment. This results, Myla travel will be loosed many
people who are liable for its growth and success.
Apart from this, in order to get rid out from all these issues, managers of the refereed
company can adopt the option of Merger so as to enlarge itself. Merger is a concept in which
business entities are joined together in order to extend their market share.
4.2 Consequences when business get failed to deal with changes
There are certain consequences will be occurred if Myla travel will be failed in order to
deal with environmental changes. Firstly, it would reduces its sales revenue and profits; which
results sales ration could be diminished. Through which products prices can increase and with
this assistance customer will switch to another firm (Kim and Ritchie, 2014). Apart from this, it
also affect on the interest of shareholders. With this, the firm cannot get enough funds in order to
complete its functions in an effective manner.
CONCLUSION
From the above mentioned report, it has been concluded that there are certain business
issues are being faced by company. Managers need to examine certain external factors through
PEST analysis as they can respond towards environmental changes. For this purpose, effective
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strategies should be adopt in order to grow and diversify in competitive market; these business
strategies are- market penetration and marketing mix. Apart from this, if travelling company
would be not succeed to deal with these changes then it cannot achieve its goals and objectives in
an effective manner.
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REFERENCES
Books and Journals:
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Cohen, E. and Cohen, S. A., 2015. A mobilities approach to tourism from emerging world
regions. Current Issues in Tourism. 18(1). pp.11-43.
Dickinson, J. E. and et. al., 2014. Tourism and the smartphone app: Capabilities, emerging
practice and scope in the travel domain. Current Issues in Tourism. 17(1). pp.84-101.
Hall, C. M. and Page, S. J., 2014. The geography of tourism and recreation: Environment, place
and space. Routledge.
Hannam, K., Butler, G. and Paris, C. M., 2014. Developments and key issues in tourism
mobilities. Annals of Tourism Research. 44. pp.171-185.
Kim, J. H. and Ritchie, J. B., 2014. Cross-cultural validation of a memorable tourism experience
scale (MTES). Journal of Travel Research. 53(3). pp.323-335.
Werthner, H. and et. al., 2015. Future research issues in IT and tourism. Information Technology
& Tourism. 15(1). pp.1-15.
Williams, S. and Lew, A. A., 2014. Tourism geography: critical understandings of place, space
and experience. Routledge.
Online
Current Issues in Travel and Tourism. 2017. [Online]. Available through:
<http://www.tandfonline.com/doi/abs/10.1080/21568316.2012.748688>. [Accessed on
24th October 2017].
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