Travel and Tourism Sector Report: TUI Group Analysis and Strategies

This report offers a comprehensive analysis of the TUI Group within the travel and tourism sector. It begins with an introduction highlighting the significance of the industry and the role of TUI Group, the world's leading tourism business. The report then delves into the historical development of the travel and tourism sector, particularly in the UK, and examines its structure, including travel services, tourism services, conference and events, and visitor attractions. It further explores the implications of political changes on the travel and tourism business in different countries, considering the roles of international organizations like the UN and WTO. The report also investigates the demand factors affecting TUI Group, such as demographics, technology, and economic conditions, along with how supply changes influence demand. Finally, it assesses the impact of various factors on tourism and proposes strategies to overcome negative impacts, concluding with a summary of key findings and references.

TRAVEL AND
TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Key historical development in travel and tourism sector......................................................4
1.2 Structure of travel and tourism sector...................................................................................5
TASK 2............................................................................................................................................7
2.1 and 2.2...................................................................................................................................7
2.3 Implication of political changes on travel and tourism business in different countries........7
TASK 3............................................................................................................................................8
3.1 Demand factors that affect to TUI Group.............................................................................8
3.2 Explain how supply change to the demand of TUI Group....................................................9
TASK 4..........................................................................................................................................10
4.1 Impact on tourism...............................................................................................................10
4.2 Strategies to overcome negative impact..............................................................................12
CONCLUSION..............................................................................................................................13
REFERENCE ................................................................................................................................14

INTRODUCTION
Travel and tourism sector play a major role in success of the global economy. Growth of
this industry is high in today's time. It is important business activity which contribute high share
in GDP, employment and enhance overall development of nation (Adhikari and Bhattacharya,
2016). Present report is based on TUI Group which is world's number one tourism business.
They consist of various operations in tourism sector and have 1800 travel agencies. Cited
business is also leading in online portals and they have more than 130 aircraft, over 300 hotels.
Along with this, they have 30 million customers in 180 different regions (Tourism, 2016). This
report covers explanation of key historical development in travel and tourism sectors.
Furthermore, it emphasizes on functions of government which play a major role in travel or
tourism business. Moreover, it evaluates impact of economical, , environmental and social
aspects on tourism sector in the chosen enterprise. At last, it explains strategies which can be
adopted to minimize negative impact on TUI Group businesses.

TASK 1
1.1 Key historical development in travel and tourism sector
Travel and tourism is main industry which grow very fast in UK. UK is the 8th world's
largest tourism destination and foreign tourist spend more than $22.072 billion every year
(Goodall and Ashworth, 2013).. Tourism started with wealthy and economic perspectives in
UK which influence to local and national economic policy. In UK various types of tourism
categorised such as leisure, business and visiting friends. Leisure tourist is mainly describes for
the purpose enjoying on holiday or taking short break. Further, business tourists are travelling
for meetings, conference or events associated with the organization. This is important for
growing market share in UK when hotels and resorts provides conference facilities. Beside this,
visiting friends and relatives tourists are people who travelling for visit family and friends. In
this context, they are not spending on accommodation facilities (Hall, Gossling and Scott,
2015).
In earlier times people travelling for war, trading and religious pilgrimage. After 3rd
century people travelling for their goals and visit temples. During middle ages most transport
was established by foot and horseback and some people buy wagon. In early 1600s various
other travelling transport were introduced which was more comfortable and afforded by only
rich man. In 1700 wealthy young man travelling across the boundaries and they spend more
money (Page, 2014). Railway transport is developing from 1800 and with the help of this,
people could able to travelling more distance. Along with this, below table show history of
twentieth and twenty-first century:
Year Development
1908-1938 In 1908 Ford introduced motor car
then 1919 commercial air services
began. In 1936 first butlins holiday
camp opened. In 1938 government
introduced Holiday with pay Act.
1939-1969 19389-45 second world war running.
Then in 1949 first package for tour

was introduced in UK by Vladimir
Raitz. Along with this in 1949 first
British fully jet-powered passenger
aircraft is established. Further, in
1954 707 passenger aircraft
introduced and they go into
commercial service (Malaysia,
2013).
1969-1994 In 1969 UK develop tourists boards
with established tourism act. In 1976
they collaborate with air France and
British airways produced Concorde.
Along with this, in 1993 European
skies allowed low-cost airlines.
2001-2005 In 2001 first non-stop flight is
opened around the world which run
without refueling (Thomas, 2014).
With the continuing development firstly Thomas Cook Group introduced their services in UK.
After then, many other business operate their functions in UK. In that, TUI Group also
established their organization in nation for their development. Now onwards, cited business
grow in various countries along with UK.
1.2 Structure of travel and tourism sector
Structure of travel and tourism sector consist various components which attract to
tourists (Adhikari and Bhattacharya, 2016). In this context, various example considered such as
travel services, tourism services, conference and events and many more things. Below are the
structure of travel and tourism explain:
 Travel services: Travel services includes accommodation and transport facilities which
offer to customers by TUI Group. Travel agents operate their job with selling brochures.

It creates link between organization and public (Benson, Tilbury and Wickens, 2012).
They provide information related to the travelling and cater for holidays. There are
various travel agents who provides services to customers.
 Tourism services: Tourist boards offer information for providing services to visitors
which they want. Tourism information concern with promotion of TUI Group in any
form. It creates positive and negative effect to the organization. For example, if
business offer good services it generates positive impact on customers. Similarly,
enterprise not operate well as it creates negative effects on users (Berne, Garcia-
Gonzalez and Mugica, 2012).
 Conference and events: TUI Group also offer for conference, events and meetings. In
this context, they planning for organising and hosting short term and long term events.
For organising conference cited business has requires scale training, workshops and
information sessions.

 Visitor attractions: Attraction are very enticement for tourists to travel for a
destination. Attraction can be either packaged into a tour and stand for product
(Johnston, Crooks and Whitmore, 2015). TUI Group attract to tourist through giving
them various segment into natural for example parks and zoo. Historical for example
museums and monuments, etc.
TASK 2
2.1 and 2.2
Covered in ppt.
2.3 Implication of political changes on travel and tourism business in different countries
Different country has different rules and regulations. In this context, economic impact of
tourism demand on the basis on political stability. Political instability is very complex and
multidimensional system which creates major impact on travel and tourism business. Political

instability is a condition of country economy in which government controlled TUI Group's
functions. With the help of this, travel and tourism business maintain their operations which
influence on enterprise. Various types of dimensions of political instability can be identified
within the travelling business such as international wars, terrorism, riots and strikes, etc. Political
changes are different for every country. In this context, below are the international agencies
which affect to political changes in different countries: United nations: United nations is peace building which support to countries from
conflicts, wars and riots, etc. It brings together to international financial institutions,
government and contributors countries which helps to determine different rules of
different nations. Thus, TUI Group can easily understand political changes of different
countries. World tourism organization: World trade organization is leading in international
businesses in the field of travel and tourism sector. It determines global understanding for
TUI Group and solve their problems which they face in different nations. Main aim of
this is to promote travel business to enhance growth of the company. Thus, with the helps
of political changes organization support by various activities. World travel and tourism council: World travel and tourism council forecast to the
economic and employment impact of travel and tourism in various countries and different
geographic regions. This provide research for TUI Group and show contribution in GDP
which help to grow business in different nations. International air transport association: In travel and tourism business more than 200
million people work in worldwide. International air transport association provide training
to TUI Group which gives them skills and knowledge to maximize career opportunities to
expanding business. In this context, different nations introduced their rules which helps to
expanding business over the world.
 Interrelationships with government: In travel and tourism business government play
various roles. In this context, European union make some policy objectives through
government make relations with cited firm. Policy objectives of European union are
promotes development of sustainable, responsible and high-quality tourism and maximize
potential of EU financial policies for developing tourism. Along with this, ministry of

TUI Group is especially common in countries where it plays major part in success of
economy.
TASK 3
3.1 Demand factors that affect to TUI Group
Travel and tourism marketing is helpful to encourage people to visit desired location in
the world. Different people participate in TUI for different purposes, every purpose comes with
specific tourism demand (Dredge, Schott and Munar, 2015). In this context, tourism demand can
be defined in various ways which depend on economic, psychological, geographic and political
basis. Following are the demand factors which effects to the business:
 Demographics: Demographic factors such as age group, family size and lifestyle forces
affect to the demand of TUI products and services. This is because, above 60 years age of
people generally avoid travelling. Thus, it creates negative impact on the organization.
Similarly, young generation people enjoy travelling so that it create more demand of
travel and tourism in TUI Group. Further, it can be possible that population growth
creates more demand of travel sector (Forno and Garibaldi, 2015).
 Technological: Advance technology factors also affect to demand of travel and tourism
sector. If cited firm provides effective technology to customers, it helps to generate more
demand for their services. In this context, they can offer better services through advance
technology so that enterprise will be able to attract potential customers. Thus, efficient
technology also generate more demand of product and services of TUI Group.
 Emerging economics: There are various economic aspects which affect to the demand of
company's products and services (Gotham and Lewis, 2015). If country's economy is
very effective, it creates positive impact on customers and their demand as well. For
example, economy growth of the nation is very high it helpful to TUI Group that they are
able to generates more demand of their products and services easily. Apart from this, it is
also beneficial for the nation that they can achieve more GDP from the operations of
chosen enterprise.
 Political stability: Political stability also helpful to determine effective system of
government (Hadjikakou, Chenoweth and Li, 2014). If in country, political laws and
regulations are stable TUI easily operates their functions without any difficulties. Thus,

firm can achieve more demand because they are able to give better services to the
customers. It creates positive impact on firm demand.
 Changing work pattern: Some times customers are not happy with the work pattern of
company. In this context, organization can have negative impact on their operations
(Inversini and Masiero, 2014). This is because, changing in duty and time of employees
of TUI Group affect to firm and workers easily not recognize customers choice. Thus,
customers not satisfy with the company services so that they not demanding cited
business products. As resultant, it creates negative impact on the company.
3.2 Explain how supply change to the demand of TUI Group
Customers services is the major part for every company to enhance growth of enterprise.
In this context, there are different ways for completing demand of various businesses. TUI Group
can use following ways through they can easily fulfil effective demand of their customers: Appropriate accommodation to the customers: Chosen business can provide appropriate
accommodation facilities to customers through they can meet with demand of customers
(Johnston, Crooks and Whitmore, 2015). Further, poor accommodation facilities can
create negative impact on customers. Thus, TUI Group need to provide effective
accommodation facilities so customers can easily attract towards the business. Effective tour operators: Cited business need to operate effective operators for
completing demand of customers. TUI Group should give them proper training so that
thy can easily handle queries of customers. As resultant, the enterprise able to meet with
customers demand so that they can attract potential users (Kapiki, 2012). Efficient quality products: TUI Group can also meet with customers demand with
providing them products and services which fulfil their demand. Along with this,
organization also able to provide product which satisfy customers expectations. Thus,
cited business will be able to meet with customers demand. Advance technology intermediaries: Chosen business can use advance technology to meet
with customers demand (Klint, Wong and Dominey-Howes, 2012). In this context, they
can provide WI-FI to the operators and intermediaries so that they can easily provide
information to customers anywhere in the world. With the help of this, TUI Group
connect various intermediaries of business to provide better services to customers.

 Different types of products: Cited business can provide different types of products and
services according to customers needs (Krstic, Jovanovic and Stanisic, 2016). Through
this, TUI Group will be able to attract different types of customers easily. For example,
they can provide cheaper products to lower class people and luxury products to standard
people. Thus, they will be able to meet with different customers demand.
TASK 4
4.1 Impact on tourism
TUI Group travel has various destination in all over world. In this context, the cited firm
conduct research on Thailand and Spain in order to know the impact of economic, environment
and social factors. In research they find various impact on their business in term of positive and
negative (Lo, Mak and Chen, 2014). Following are the impact on product of business on the
basis of economic, environmental and social:
Economic impact
When interest rates, consumer confidence and other policies create impact on any event,
policy change and market trend is known as economic impact (Berne, Garcia-Gonzalez and
Mugica, 2012). Following are the positive and negative impact of economic factors on TUI
Group sector: Direct and indirect income: This is defines as income which directly earn by company
through offer product and services. Along with this indirect income which is not directly
earn by business such as software, equipments and labour. This create positive impact on
Thailand and Spain, because with the help of these aspects TUI Group earn more profits
from their operations (Marieb, 2016). Generation of foreign exchange: Cited business operate their functions in many countries
so that they consist foreign currency within the organization (Matasci, Kruse and
Thalmann, 2014). Through this, TUI Group can exchange their money with cited nations.
Thus, it creates positive impact on economy of the country. Contribution to gross national product: Travel and tourism sector contribute major
income for the country. Thus, it creates positive impact because by this chosen
organization develop their nation with earning gross national income (Scott, Gössling and
Peeters, 2016).

 Leakage: Success of every tourism sector depend on profits which they earn from the
operations. TUI Group perform their activities in Thailand and Spain market some time
they are not able to provide all facilities in these market. Thus, it creates adverse effect on
business.
Environmental impact
Environmental impact consist with large area of business in which organization operates
(Airey, Tribe and Xiao, 2015). Environment consists both aspect such as man-made and natural.
However, it creates adverse effect in tourism businesses. These impact linked with construction
of general infrastructure such as roads and airport. In addition to this, it also affects to resorts,
hotels and other golf courses. Negative impact of tourism development gradually destroy
environment resources. This is because, in travel or tourism sector TUI Group perform many
activities that can give adverse and favourable impact on company. In this context, below are the
positive and negative impact on cited business: Conservation and enhancement of natural areas: TUI Group can contribute towards the
natural environment in context of protecting and enhancing natural areas such as water
bodies and landscapes, etc. (Buckley, 2012). Increasing environmental awareness: Chosen business can recognising wider benefits of
ecosystem services so that they can increase awareness regarding environment.
 Pollution: TUI Group posses threats of natural and cultural resources such as beaches and
heritage sites, etc. It is cause of increase pollution through increase sewage production
and noise (Simm, C., 2016).
Social impact
Social impact greatly influence to the business in both term positive and negative. In this
context, below are the factors which create impact on TUI Group: Cross culture exchange: Chosen enterprise perform their operations in various parts of
world so that it considered different types of culture. With the help of this, organization
can easily understand different culture of country (Séraphin and Butler, 2013). In respect
to this, in Thailand and Spain it greatly affects because there culture is very different
from other countries. Preservation of cultural heritage: Tourism sector of TUI Group encourages the
preservation of traditional customs and festivals. This is because, it creates better

understanding of different culture which helpful to enhance global awareness in cited
countries (Benson, Tilbury and Wickens, 2012). On the other hand, it greatly affects to
cited firm when they are operates their functions in Thailand and Spain marketplace. This
is because, chosen destination do not want to loss their heritage culture.
 Loss of amenity to host community: Some time visitor behaviour can have adverse effect
on quality of life of host community of TUI Group. For instance, crowding, drugs and
alcohol problems etc. These problems generally seen in Thailand and Spain marketplace.
4.2 Strategies to overcome negative impact
Travel and tourism business of TUI Group not managed their functions proper in
Thailand and Spain. Thus, as resultant in organization it creates negative impact on the company
(Wu, Ho and Tse, 2016). In this context, below are the strategies by which negative economical,
environmental and social impact can be reduce: Enhance services of the organization: TUI Group can remove negative impact of
economic factor that is leakage. In this context, they can enhance their products and
services for customers. With the help of this, they will able to provide services by
themselves. Thus, this strategy is helpful to attract more customers of Thailand and Spain
(Hall and Page, 2014). Implementation of strict laws and regulations: Chosen business can reduce negative
impact of environmental factor as pollution. In this context, they can enforce towards the
laws and rules of country. Along with this, they try to generate awareness about healthy
environment so that business can reduce pollution. Diversification: TUI Group can remove negative impact of social factor through diversify
their services in different cities of Thailand and Spain (Telfer and Sharpley, 2015). This is
better strategy through they can achieve well distribution of tourist activities through the
nations.
 Eco-tourism: Cited business can reduce their negative impact through focus on eco-
tourism. With the help of this, they can preserve wildlife and environment. Further, it is
helpful to reducing social conflicts between authorities and other groups (Forno and
Garibaldi, 2015).

CONCLUSION
From the above report it can be concluded that government play very important role in
travel and tourism business. In this context, they perform various functions such as direct,
indirect, economic policy and political changes. Furthermore, it summarized that some factors
affect to the demand of travel and tourism, business such as demographic, technological, political
stability and changing pattern of work. Moreover, it explained about the supply which effect to
the demand of cited business. In this context, organization needed to provide appropriate
accommodation facilities, effective tour operators and valuable products or services to them.
Beside this, this report helped to evaluate impact of economic, environment and social aspects on
travel and tourism sector. In this context, social impact is widely affected to the business n the
basis of cross exchange culture and preservation of cultural heritage. At last, it explained
strategies that can be used to minimize negative impact from the organization such as
diversification, eco-tourism and enhance services of the businesses.

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