Impact of Supply on Demand in the Tourism Industry: TUI Group

This report examines the relationship between supply and demand within the tourism industry, with a specific focus on the strategies employed by the TUI Group. The analysis covers how TUI adapts to meet evolving customer demands, including the provision of diverse transportation options, such as air, rail, and road transport, and the introduction of new services like electronic car facilities and a range of tours (sports, business, educational). The report further discusses how TUI addresses customer entertainment needs through cultural activities, adventurous sports, and other recreational options. Additionally, the report highlights how TUI has expanded its services to include consultancy, insurance, and financial services, as well as comprehensive travel packages that include various accommodation options. The report also discusses the company's use of online platforms to provide convenient services, compare prices, and offer discount schemes, all aimed at attracting and retaining customers in the competitive tourism market. Finally, the report explores the role of sponsorships and in-journey entertainment, such as music, television, and Wi-Fi, in enhancing the overall customer experience.

Travel and tourism

Table of Contents
3.2 How supply has meet the demand ........................................................................................1
REFERENCES................................................................................................................................3

3.2 How supply has meet the demand
Demand and supply play important role in every industry such as Tourism industry. As
these two factors have direct on its working, profitability and growth. With change in time there
is change in demand, there is also variation in services provided by tourism has taken place. To
survive and to remain in competition, agents tends to provide best and good services to their
customer. Now a days customer want all services at one place, so to increase demand for their
product so the agents provide all their services accordingly. The ways the supply has affected the
demand of TUI group (Komppula, 2014.). To satisfy the customer the company has increased
the variety of its range of product and services. They have provided variety of transportation
services as air travel, train, road transport facility etc.
TUI has divided their introduced other attractive services such as electronic cars facilities
at historical place. IN addition to these professional services and to increase the demand
company decided to provide non professional services, they planned to organise various tours
such as sports, business tour, educational tours etc. The aim of any tours and travel company is to
provide entertainment facilities to customer during their journey. To full the entertainment need
of consumer the company has planned to provide services in various forms the company
organize various cultural activities to make visitors aware about local culture. Different activities
are being conducted by them such as adventurous sports, casinos, mountain climbing, forest
safari etc. Due to change in trend and analysing the increase in various other services such as
consultancy services and insurances and financial services by customer has influenced the
company to provide this additional services to their customers.
Now a days people feels that the every services need by them should be fulfilled by travel
company these need include food and accommodation. To meet these needs company the
company has introduced various packages, they provide this service to travellers according to
their budget and requirement. Tui company have various packages that include various
accommodation facilities such as villas, cottage, guest house etc. and to provide various varieties
and type of food to their customer they have hired various agencies which serve food to their
customer. Due to change in trend the customer want to avail all the services such reservation
services, accommodation services,etc. At one click to meet this demand the travel company has
started its online services using this service using these services the customer can get all the
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services at one click, not only this but they can compare various accommodation facility and can
compare their price and make choice according to their budget by sitting at one place.
To attract the customer they offer various discounts scheme during various season. They
also offer various holidays package (Hsu and et.al, 2016). By examining the increase in demand
of various foreign tours and travel they have started sponsoring various tours and travels
facilities. They provide other entertainment facilities to customer during their journey such as
music, television,and now the Wi-Fi that is internet facilities are also provided by various tours
and travel company.
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REFERENCES
Hsu, A.Y.C. and et.al., 2016. Entrepreneurship in the Contemporary Tourism Ecosystem: The
Case of Incoming Tour Operators in Taiwan. In Information and Communication
Technologies in Tourism 2017. 56(4). pp.101-113.
Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness
for a rural tourism destination–A case study. Tourism Management. 67(4). pp.361-371.
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