Contemporary Issues and Trends in Travel and Tourism: TUI Group Report

This report provides a comprehensive analysis of contemporary issues and emerging trends in the travel and tourism industry, using the TUI Group as a case study. The report begins with an introduction to the travel and tourism sector, emphasizing its significance and volatility. It identifies and examines key issues driving change, including technology, terrorism, safety, security, and low-cost airlines, along with their impacts on businesses like TUI Group. The report also delves into the factors influencing these changes, such as political, demographical, and economical factors. The analysis extends to evaluating emerging trends, including inbound and outbound tourism, and innovative strategies like low-cost airlines and business integration. The report further explores the implications of these issues and trends for the sector, focusing on TUI Group's response and the consequences of failing to adapt. The report concludes with a discussion of the impacts of issues and trends, as well as the consequences of a business failing to respond. Finally, the report provides a detailed look at how TUI Group can respond to these changes and develop effective strategies to address them.

Contemporary Issues in
Travel and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Issues currently driving change........................................................................................1
1.2 Analysis of different issues using appropriate methods and resources............................3
TASK 2............................................................................................................................................4
2.1 Evaluate emerging trends influencing change..................................................................4
2.2 Analysis of current trends using correct techniques.........................................................7
TASK 3............................................................................................................................................8
Overview of the company......................................................................................................8
3.1 Analyse how to response towards change........................................................................9
3.2 Develop strategies for respond to change.......................................................................10
3.3 Justify strategies.............................................................................................................11
TASK 4..........................................................................................................................................12
4.1 Impacts of issues and trends...........................................................................................12
4.2 Consequences of business failing to respond.................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Travel and tourism can be described as hospitality industry having vast group business
with common objective. They put their efforts to render important or desired goods or services to
travellers. This industry become largest civilian field in world in current scenario as per statistics
one out every ten individuals at global level. Contemporary issues of travel and tourism are refer
to challenges faced by industry which can impacts their contribution ad structure of economy. It
is the fact that, it is highly volatile in nature and is dependent on various elements (Becker,
2016). This assignment is based on Touristic Union International which is multinational travel
and tourism company that headquartered in Hannover of Germany. It may be considered as
largest leisure in this field and owns travel agencies, hotels, airlines, cruise ships and retail
stores. This organisation is abbreviated as TUI Group deals at global level to provide their
product and services. It is relevant to tourist destinations of London which is known as Kew
Garden. This report will be discussed about different methods for understanding current trends
and issues in this sector. The factors drive changes and strategies to deal with the same will also
mentioned below. Positive and negative impacts of trends and contemporary issues on this sector
will be focussed to analyse and control them.
TASK 1
1.1 Issues currently driving change
Travel and tourism may described as fastest growing industry in world. And in past few
years had revealed drastic change in this sector in order to development and advancement. This
factors have also facilitate arise certain issues that impacts on travel sector. These effects are
huge towards business operations along with having high standard of relevance with
technological as well as social changes. It is essential to identify such problems due to current
trends and control them (Cohen and et. al., 2014). Several issues facing by Kew Garden and their
impacts along with development of TUI Group which facilitate changes are defined below:
Technology issue:- These issues related to various technological aspect which using for
providing travel and tourism services to people. It can be considered as major one issues which
have changed dimensions of this sector at very huge level. This includes that hospitality and
aviation industry has rendered facility to ticket online, checking online, book accommodation
online, hire a car by enhanced technology. It impacts positively as they are able to provide better
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services to their clients. In this prospect, social media and search engines are helpful to explore
destinations of global area. They are capable to make connections with agencies and plan
vacations at their home only to plan their perfect vacations.
Terrorism:- This can be described as most emerging issue in tourism sector having its
negative impacts on clients. People feel afraid of visiting several tourist places because of terror
attacks and it will results to reduce income of the industry. Finally, facilitate to reduce the annual
economic income of any nations as it contribute a precious amount of money. Generally, it is
analysed that terrorist visit as these tourist area to complete their bad intentions (Connell, 2013).
Due to this reason people don't want to visit and avoid those place which are already suffered
with such issues.
such issues.
Safety and security:- This can be described as the aspects of safety and security which
are necessary to take care about this through travel and tourism industry. People feel afraid to
travel in other countries due to robbery, natural disaster and terror attack. It will affects the
economy of specific country because due to these negative factors tourists avoid to visit there
and it results in decreasing of annual income.
Low cost airlines:- There are various kind of firms are established due to which
competition becomes higher between them. For this aspect, they are providing their services at
low cost which may results in decreasing clients of TUI. They have to make more effective and
efficient strategies or policies by which they can attract and retain their customers.
Factors affect these changes: -
Political factors:- There are several political authorities established at the place where
branches of an organisation are situated. It is necessary for travel and tourism companies have to
follow the norms of these authorities so that they will not affect negatively on firm. Global
political climates are an important element in international level. As region undergo change,
uncertainty or in some cases violence and war, travel cease altogether. It basically impacts on
marketing concepts of TUI which is necessary to promote their travel and tourism services
amongst people to enhance profitability as well as productivity.
Demographical factors :- This term describes about gender, age, income and many more
components which impacts on organisation. It includes that middle age generally provides higher
income and greater propensity to travel. This group is most likely to use hotels and prefer longer
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trips repeatedly. Such clients may become regular or loyal customers for TUI. It will facilitate to
earn long tern profits for the company as well.
Economical factors :- This term refers to many related issues which is faced by people
while travelling to different countries to visit several tourist places or historical areas. It involve
the currency fluctuations which directly affects cost level of travel for millions of people. It
seems to expensive for TUI when international destinations launch marketing campaigns in
foreign markets, currency values are always a consideration.
There are various impacts on above discussed issues which drive changes in TUI group
for that they have to make several policies and rules to solve these problems. It will support to
increase more client towards organisation and attain better profitability as well.
1.2 Analysis of different issues using appropriate methods and resources
There are various kind of problems are generated through contemporary issues of travel
and tourism industry towards social, environmental and economic aspect. It is important for
firms to observe such issues and analyse them in proper manner manner by utilising correct
methods and resources. The TUI Group have to study about these problems and establish
appropriate policies along with strict rules to avoid negative impacts on several destinations such
as Kew Garden.
Technological issues are observed in soft wares used by agencies it is mandatory to
evaluate them and control them. The TUI Group is needed to take care of security of data
relevant to personal detains of clients. And try to prevent cyber attacks by implementing various
kind of effective as well as efficient methods or techniques (Dickinson and et. al., 2014).
Delayed response due to slow connectivity should be improved by enhancing power of internet
sources is also necessary.
Sometimes these changes have a negative impact on economy of country at the beginning
value of pound was declining sharply. This will results in decreasing in annual economic income
of the nation. In India, it will contribute a very large and precious amount of money to annual
income for building economy more strong in front of many of efficient global countries.
The problem of terrorism is very critical and sensitive because people avoid those place
to visit which are already suffered from such issues. The TUI Group have to make several rules
and strategies to make its security strong to prevent these terror attacks. This will support to
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enhance client count along with improvement in profits of travel and tourism agencies which
may help to improve social and environmental issues.
For example in India:- In this country, they have implemented aspects for improving safety and
security by kept in mind protection of tourists. There are various kind of tourism destinations
which follow rules and regulations of protection by which which people feel safe travelling
there. This will increase annual income of country which results in attaining strong economy.
For example in Romania:- this nation has applied several strategies to make
low cost of airlines and provide at reasonable price to people. By this, people are feeling easily
affordable to visit various tourist places. This will results in improving clients for travelling
agencies die to low cost airlines services.
Pollution:- There are various aspects utilised by firm which may cause several kind of
pollution then TUI have to make sure that they should apply some new strategies to reduce it.
And also try to use ozone-friendly equipment to render better services to people.
Natural disaster:- The travel and tourism companies need to provide some of precaution
related activities or something like that to protect people from natural calamity.
TASK 2
2.1 Evaluate emerging trends influencing change
There are various kind of tourist events which require to be introduced as a major trend in
the industry of travel and tourism. People used to travel from one place to another due to their
own different reasons. Their various motives impact the selection procedure of tourist
destinations. Different types of tourism are described below:
Inbound tourism: - This term can be defined as kind of tourism in which people travels
within the boundaries of a particular nation (Hall and Page, 2014). It is considered that
United Kingdom is one of top most tourist destinations and this reason has led to improve
in in bound tourism of it. Travellers prefer to visit tourist places of their own country
believes in it. TUI have to make separate strategies with implementing new innovations to
render better services to clients. This will facilitate to make them feel comfortable in whole
journey of visiting and get satisfied and regularly prefer the same tourist agency to become
loyal for it.
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Outbound tourism: - It may understand as the form of tourism when people are travelling
outside the boundaries of particular country so as explore other destinations. It includes the
world tour destinations for which TUI require to build various legal as well as customer related
formalities along with necessary information to customers. They have to make separate team to
solve or answer properly to each and every query of people in appropriate manner (Hannam,
Butler and Paris, 2014).
Recreation tourism: - It is a kind of tourism in which travellers just go to their favourite
place to relax themselves far from worries of their lives from their regular daily schedule.
It may involve various destinations which are generally inside or nearby but in some cases
it may be outside the nation as per client’s choice or preference.
Innovation and operating strategies
 Lost cost airlines: - This term refers to make several kind of packages of travel and
tourism for customers by reducing cost of airlines. There is an emerging
competitive crisis. The current recessionary environment in some developed
countries provides an opportunity to include low cost alternative offering. This
approach involves great deal more than merely offering current clients to buy
services for less and feel comfortable to visit with their budget of income.
 Integration in travel and tourism business: - It includes vertical and horizontal
integration defined as innovative competitive strategies to deal with different
situations to control the scenario of organisation. The vertical one consider
complete control of production and distribution of product. Similarly, horizontal
integration is basically acquisition of business activities which are at the same level
of value chain in similar or different industries.
The trends of travel and tourism in respect to Kew Garden of London:
 Currency: When tourist come to visit places they need currency of that particular
country. Various challenges are faced due to this as the difference in two values may vary
which ultimately effects the decision of visitor. Generally, people do not opt for very
expensive holidays and due to recent fluctuations in value of pound this may lead to
decline in the tourism. TUI focus on this factor because many of clients are preferring this
agency due its reasonable costs. Then they try to make such strategies to provide choices
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of trips in different places in which tourist can choose one as per their income by
avoiding destinations that affects by fluctuations of pound such as Kew Garden, London.
 Sustainable Tourism Takes Centre Stage: - Sustainability cab be described to
remain at constant place in terms of attaining development. Due to emerging trends,
it becomes quite difficult to sustain at particular level of success. In case of Kew
Garden, customer count is not remaining same every year and due to this reason
profitability of destinations become variable. It seems to be important to cope up
changing fashion to maintain same position in market. In tourism, there are so many
factors which can affect it business operations and activities, thus, these factors must be
considered while developing a marketing. In order to retain higher sustainability,
management must have focused on reducing wastage determine those factors which can
affect people health while travelling. TUI is concentrate to maintain the proper developed
designs of travel and tourism packages which can provide many of job opportunities in
country. Because it will improve annual income of nation and build economic condition
strong in front of the whole world. This will facilitate to launch certain fresh social firm
projects into trips which may render employment local people. By these policies, it is
easy to attract more clients towards the Kew Garden by increasing its effectiveness
through well designed and managed systems of it.
 Long Haul City Breaks: - This term can be described as longer journeys of several
days in which people spend more time at tourist place. It includes everything from
fine dining, penguin spotting modern art to street food and so on. As per
modifications of trends, desired and preferences of customers also get changed then
Kew Garden have to establish extra adventurous activities or events according to
client's demands. It will help to enhance number of customers and profits. This kind
of holidays can be described as that in which people need to splash cash in order to make
most of their trip. Sometimes, it seems to be an necessary expense but it has actually a
great value for many of exotic destinations to enjoy several attractive things. It improves
clients by attracting those who want each activity of adventure at same place. Kew
Garden may implement many more attractive adventures and other aspects regarding long
haul city breaks to improve profitability along with increased customer count.
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 Travel technology Hits the high Street:- There are various technologies that are
adopted by travel agencies. Through theses technical concepts, they provide virtual
reality of several destinations where client want to visit. Travel agencies may
provide audio and video display of Kew Garden to attract more customers. It
becomes easy for people as they gain knowledge about destination to visit there.
These kind of destinations includes several resorts and hotels which utilised some
effective technologies to display a natural adventures into artificial way so that people
can enjoy. Kew garden can improve its productivity as well as profitability by increasing
efficiency of providing attractive services through applying innovative technology to
render virtual reality. These kind of technical view of several sceneries or landscapes are
really beautiful and tourists are fond of visiting these places.
 Micro adventures: - This kind of adventures are small, local, simple and cheap which
people can visit easily by spending little amount of money. The Kew Garden destination
can implement various small adventures so that people having small budget of income are
also able to visit there. This will impact positively as it improves the customers as well as
profitability of it. Implementation of micro adventurous activity can attract that group
people who has less money to spend and they avoid these tours. They are unable to afford
it. But if in case, Kew Garden have to apply small packages to those groups to enhance
clients which impacts on economic condition of UK in terms of increasing annual
income.
2.2 Analysis of current trends using correct techniques
There are various kind of trends are introducing in market as per different scenarios which
are necessary to be analysed by appropriate methods. TUI can use most effective technique
for reason of evaluating current trend of market is known as research of market area in
order to improve number of tourists at Kew Garden.
Market research technique: - This method can be described as procedure or set of activities
which connected the producers, customers and end users to market through knowledge
(Hartmann, 2014). It is used to and define marketing opportunities and issues. It also helps in
generating refining and evaluate promoting actions along with monitoring marketing
performance to improve understanding its process.
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It will support to analyse the changing trends properly. Travel and tourism operators of United
Kingdom have been using this method to operate their businesses in more effective as well as
efficient manner. By this, they become to study about fashion of market and rendering packages
to visitors as per their taste or preference in current scenario. In the same way, tourist is also
analysing the trends of market and destinations to visit by using this technique (Luh Sin, Oakes
and Mostafanezhad, 2015).
The choice of destination differs front tourist to one another according to their wants,
demand, tastes and preferences. This is due to dissimilar value and beliefs of their own
religion and tradition or mind set ups. They have their various kind of choices and
regarding that only they will choose the place to visit along with packages of travelling.
For the purpose of analysing the trend, analysis and evaluation of data relevant to as
number of visitors visiting UK. For collecting qualitative and quantitative by using primary
or secondary sources data of collecting.
TASK 3
Overview of the company
This report is based on TUI Group which may considered as leading travel and tourism
organisation at global level. It was founded in 14932, almost 95 years ago by Friedrich Joussen
who is chief executive officer of this company. It's headquarters are situated in Hannover and
Berlin in Germany. They have around 1600 branches, sic airlines including approximately 150
air crafts. It has various innovative hotels having 239000 beds, 15 cruise liners with creative and
strong tour operators by which they are able to provide better services.
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Illustration 1: TUI Group Converts 18 Boeing
737 MAX Orders to the 737 MAX 10

(Source: TUI Group Converts 18 Boeing 737 MAX Orders to the 737 MAX 10, 2017)
This firm deals in major holiday destinations all over the world and renders their offers of
products to around 20 million customers. They have an effective as well as efficient good or
services with unique features of holiday experience around 180 regions. It's has approximately
revenue of €18,535 million, operations income is €1,079.7 million and net income may around
€910.9 million along with work force of 67000 number of staff members. The mission statement
TUI Group is to generate superior shareholder value and build leading travel firm and provide
wider varieties of services or goods. They have several alternative choices of different and
flexible travel experiences to complete expectations of people. Vision statement of TUI is
THINK TRAVEL AND THINK TUI in context to discover smile through engaging employees
and customers of the organisation. They have certain values like trusted which involve
reliability, consistent and quality along with uniqueness and inspiration that contains exclusive,
designed, fresh, effortless and so on.
3.1 Analyse how to response towards change
There are several changes and modifications which are introducing in current scenario of
market. It is so because of changing desired and demands of people. People wants everything
new with uniqueness and innovations in these destinations such as Kew Garden. They
interestingly accepted different kind of product or services as per market trends and get
themselves up to date.
New type of passengers: - It is described as those changes which arises due to face new
types of clients having their different thinking or preferences. It is important to observe and
analyse the needs, wants or demands of new customers for fulfilling their expectations. TUI
Group have to attract new customers and retain the current ones by applying some new or
innovative strategies to fulfil desires of their all clients.
Online Word for the customers: - This term refers to those activities on which firms
will make conversation with clients indirectly through some promotional procedures (Reisinger,
2015). In this, organisation use several modes like advertisements, pamphlets and banners to
provide information about product. TUI Group need to render their services with amount of
money charged should be mentioned in online pamphlets to convey information to people.
Analytics:- It can be defined as to utilise firm's own tools and techniques to analyse and
evaluate changes to respond in proper manner for favour of company. It is important to know
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