Travel and Tourism Sector Assignment Sample
1.1 Key historical developments within the travel and tourism sector
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Travel and tourism sector has become one of the foremost consequences of economic development within the country. However, London is one of the famous tourist destination and it possesses big choice of historical monuments and buildings that pulls tourists. Following are the key historical developments that involves post-industrial revolution, pilgrimages and possible future improvements within the travel and tourism sector within London are as follows-
- In the late 16th and early 19th century, Grant Tour was facilitated by British upper class people, business houses and thus it rises the new horizons of travel and tourism sector. Further, at the time of economic revolution, tourism demand has been raised thanks to introduction of tour package services, paid holiday’s benefits to bourgeoisie folks that requires to relax and recreation. Here, people find interest regarding exploring the remote areas and travel across different destinations (Page, 2011).
- Using innovating technologies and science for the event of travel and tourism sector in London. Through using latest technology, it helps in marketing the tour packages to both domestic and international clients. In regard to this, London has made an thorough use of latest technological for this sector and thus connect with different companies associated with travel and tourism business and provide best offers to travelers. Hence, it plays a crucial role within the expansion and development of tourism sector within UK (Hudson, 2008).
- Through evaluating different studies, it has been assessed that concept of mass tourism plays a crucial role within the travel and tourism sector that was initially started in England at the second half of 19th century. Thus, growing mass tourism results in increasing mainly two specific reasons firstly, it helps in developing transportation technologies or industrial revolution while another is that the individual entrepreneur efforts and starting travel company i.e. Thomas Cook. within the year 1862, company planned several international tour packages mainly to three destinations like Far East, India and America (Khosrowpour, 2002).
- In this era, London has been assessed together of the only a neighborhood of making world trade. the uk tourism board has developed different standards so on market tourism within the country and generate revenue. Tourism authorities conducts programs for preserving, maintaining and promoting famous historic monuments like Buckingham Palace, The Victoria and Albert Museum, British Library and thus the famous Tower of London (George, 2010).
Following are the foremost factors that helps in influencing growth in travel and tourism sector-
- Changes within the quality of living of individual- It are often assessed that changes within the social condition of people influence companies to develop tourism in international market. Thus, it enhances employment opportunity for people and generate revenue for the economy. It provides chances to bourgeoisie people to possess appropriate funds for spending upon their vacation across the planet (Giudici and et. al., 2013).
- Enhancement in technology- Developing the unique and advanced technology within the tourism sector helps country to realize competitive advantage over other countries. Therefore, it's essential for London to manage different development within the sector of science and technology and thus, offers high quality and unique services to travelers. Development of jet aircraft, 3-D effect and other technologies has helped companies to render highest quality products and services to visitors and satisfy their needs (Hudson, 2010).
- Innovation and infrastructural development- London government promotes development of infrastructure within the country prefer road network, rail connectivity and water management so as that visitors coming from different destination are often attracted (Korstanje and Clayton, 2012).
1.2 Structure of the travel and tourism sector
The structure of travel and tourism sector involves varied other industries that provides big choice of products and services to travelers so on satisfy their needs. Following are the varied elements within travel and tourism sector are discussed underneath-
Hospitality and tour management services
It involves different individuals that are focused on developing coordination among each and other and thus provide best products and services to travelers so on satisfy their needs of accommodation, transportation and sightseeing etc (Le Serre and Chevalier, 2012).
- Travel agents and tour operators- it's crucial for the tour operators to plan best holiday packages for tourists in regard to maximize their needs. It involves companies, individual travel agents who are focused on making regard to different hospitality service providers and thus render different services like accommodation, transportation, finance etc. Such individual prepares an estimated budget and knowledge of destination to satisfy the wants of clients (Lima and Martins, 2012).
- Supportive services- additionally to travel and tourism sector, there are different ancillary services like financial services, insurance, money exchange, guiding, marketing companies etc. Beside these services, the tour operators also provide different additional services like passport and visa services which is vital so on attend abroad.
- Accommodation- it's another crucial aspect within tour management services and thus it directly impact upon the worth and pricing of the tour package. Here, tour operators arranges for the precise accommodation service required by the guests like hotels, villas, resorts and cottages etc. It all depends upon the consumers interest and thus providing best service helps in increasing chance of selecting the same service provider at the time of next visit (Palhares, 2012).
it's another crucial segment within travel and tourism sector and thus helps in connecting people and making tourism sustainable so as that trade activities are often administered in an efficient manner. Selecting different medium of transportation like air, rail, ship affects the worth of tour package. Further, it's essential for tour operators to handle different transportation medium so as that traveling to a minimum of one place from another are often made easily (Sloan, Kaufman and Legrand, 2012). Following are the varied transportation ways operates within London are as follows-
- Air travel- Such kind of transport helps in providing fast services to travelers within both domestic and international boundaries. Thus, it attracts tourists by providing facilitating services within flights (Howes, Scarpaci and Parsons, 2012).
- Road transport- Further, such kind of transport provides convenience to visitors while they're on adventurous trips and helps them in connecting with different locations.
- Cruise- After evaluating the interest of travelers, tour operators are also providing cruise line services so as that they are able to experience a singular and artistic hospitality service on water to attract guests (Mak, 2011).
There are big choice of attractions like natural and man-made that helps in influencing the tourists to travel to the destination. In UK there are different natural resources like beautiful beaches, mountains and eye catchy views so as that it attracts travelers to travel to the place. Further, there are different man-made attractions also that influences tourists to travel to UK like ancient monuments, buildings and museums etc (Papatheodorou, 2004).
2.1 Functions of state, government sponsored bodies and international agencies in travel and tourism
There are different bodies like government and international agencies that helps in managing tour operations in UK. However, public authority of UK has established Tourism Act 1969, so on hold out best tourist activities within the country. In regard to this act, British Tourist Authority (BTA) and thus English Tourism Council (ETC) are merged and developed another authority VisitBritain. Main aim of this act is to develop coordination among all the businesses so on render highest quality services to travellers. Tour Regulations 1992 helps in controlling the functions of tour operators within UK and thus influence them to provide attractive tour package holiday to consumers complying to the Package Travel Regulation Act (Riege and Perry, 2000). Thus, it's essential for the tour operators to carry out the set regulations because breaching such laws affects the consumers rights. Furthermore, there are different government bodies in UK like Department for Culture, Media and Sport that monitors the tourism activities. In regard to this, authorities helps in managing the functions at three different levels like national, regional and native. There are different strategies developed by UK government like Visit Britain, Visit Wales and Visit Scotland so on market tourism activities within the country (Vivanco, 2001).
Further, formulating different policies and regulations helps in managing proper coordination among private and public bodies assists in attracting travellers from all around the globe. Thus, public authority of UK has developed varied Tourist Information Centres within the local council so as that it helps in providing different information to tourists like promotional brochures, accommodation, sports and club centres, theatres, museums and art galleries etc. there's another agency i.e. UNWTO which is responsible for the process and development of travel and tourism business within the country. Furthermore, the earth Travel and Tourism Council (WTTC) is additionally assessed because the foremost vital organization associated with the travel and tourism industry (Dale, 2005). of those organizations helps in providing effective travel services to consumers and satisfy their needs. WTTC helps in completing awareness among consumers regarding travel and tourism and also it's one of the world's largest industries providing 277 million jobs and generating 9.8% of world GDP.
2.2 Influence of local and national economic policies over the success of travel and tourism sector
it's essential for the uk government to develop different policies and practices so as that economy of the country are often controlled and thus growth are often attained. In regard to this, monetary and monetary policies have played major role in UK. However, developing such policies have significant impact upon the expansion and development of travel and tourism sector. Monetary policy of the country helps in controlling the income within the economy by controlling the interest rates.However, it affects the cost of business expansion plan of different companies operating in UK such as hotels, aviation and tour agencies etc. Further, there are different factors that influences the economic policy of nation upon travel and tourism sector (Deuschi, 2006). For instance, in order to enhance the tourist industry in the country, UK government is required to subsidise the building rates for developing resorts and hotels. Thus, it helps in benefiting the national economy up to a large extent.
Furthermore, fiscal policy of government helps in controlling the taxation rates within the economy as it has direct impact upon the cost of the different services linked to the travel and tourism sector. Thus, it is essential for companies connected to tourism business to manage the changes in the business operations along with pricing of services with reference to fiscal or taxation policy (Lashley and Morrison, 2013). As it affects the profitability of the companies working in the travel sector. Also, government bodies of UK has developed different policies in order to face the challenges within the travel and tourism sector. In support to this, government has developed different reforms and policies so that star ratings of different hotel groups can be managed effectively and efficiently.
2.3 Implications of political change on travel and tourism sector in different countries
There are different factors such as political stability, international trade agreements that influences the demand of tourism services in the travel sector. For instance, at the time of political stability in the country large number of tourists are attracted to visit towards the destination. While, if there is instability in the political environment then people does not feel safe to visit the place (Law, 2010). Therefore, it is essential for the government bodies to make the stability in the political environment so that travellers can be attracted. For instance, Dubai is considered as the world's number 1 tourist destination because government bodies take active participation in the planning, organizing and controlling the tourism development in the country. Thus, all these policies helps in ensuring safety and security of visitors. In addition to this, UK government authorities are also managing and controlling the political system of the country so that outside visitors are attracted towards the country. Further, Switzerland is also developing tourist attraction because of its calm political interference that does not obstructs the tourism activities in the country (Lynch and et. al., 2011).
However, political instability or unsuitable political environment hampers the tourism activities in the country. Therefore, it is essential for the public bodies to regulate and control the activities so that more and more tourists can be attracted towards the destination. For instance, there is merely small or no tourists prefer to visit Pakistan because there is high political instability in the country. Thus, safety and security issues are faced by the visitors. Such activities hamper the growth and development of the tourism in the economy. Furthermore, developing countries such as India and Nepal possess a suitable political system that helps in supporting the tourists and offers wide range of products and services in order to attract tourists from different countries (Mahony, 2007).
3.1 Factors affecting tourism demand
Here, TUI organization formulated different strategies and tour packages through considering different factors that affects the tourism demand. In this context, following are the different factors that affects the demand of tourism services such as-
- Emerging economies- There are different economies such as India and China that has been emerged as the fastest growing nations. Thus, it influences the development of tourism activities in such countries. However, it is essential for the management of TUI to develop effectual strategy so that tourism services can be developed in order to attract outside visitors. Also, managers and leaders of business are regularly visiting such countries so that demand of tourism can be enlarged. Thus, emerging economies plays a crucial role in order to attract tourists (McDonald and Hopkin, 2002).
- Demographic factors- It involves different demographic factors such as lifestyle, age, income level of individual. For instance, there is high tourism demand noticed in the young age group. It is because young people are always ready to visit and explore new destination and also experience the places. Additionally, increment in the income of middle class people influences them to visit to new places and spend leisure time with friends and families (Teng, 2011).
- Social factors- Furthermore, social factors involves choice and preference of people that influences their needs regarding travel and tour. Hence, it can be assessed that tour operators are required to design the tour package as the lifestyle of people and also fulfil their demand so that best results can be attained. However, requirement of people possess great impact upon the demand of tourism services (Xin and Chan, 2014).
- Political factors- It is essential for the government bodies to develop wide range of policies in regard to provide benefits to tourists and develop the travel and tourism sector. As it helps in significantly contributing to the nation GDP. Political framework also plays crucial role in simplifying the laws and regulations so that more number of tourists can visit the country and thus enhance the economy of the country (Giaoutzi and Nijkamp, 2013).
3.2 How supply has changed to meet the effects of demand
It has been assessed that there are crucial changes being noticed among the services and tour packages which are offered by various agents and tour operators. Thus, in order to enhance the service quality, it is essential for the management of tour company to follow a structured process and deliver quality services in order to fulfil the demand (Tour Operators, 2014). Therefore, the management of TUI organization considers different elements to manage the supply and demand-
- Seasonality- It is one of the crucial element that influences the demand and supply of tourism services. For instance, due to seasonal business, most of the hospitality firms increases their prices of different services and thus it affects on the demand of tourists. Hence, it is essential for the travel agents to manage the price factors of different tour packages and provide best costing so that more number of tourists can be attracted. TUI management has developed different policies and practices in regard to provide best services to consumers within good price range at the time of peak season to attract outside visitors (Edgell, 2002).
- Managing transportation- It is essential for the TUI group to consider the interest and lifestyle of people and then provide them required transportation such as air, rail, cruise and road. Thus, managing such demand of people helps in influencing tourists to visit different historical places with the help of cable cars. Here, tour operators assesses the demand of visitors and thus provides a range of transport medium so that tourists needs and demands can be satisfied. Apart from this, tour operator also arranges for buses, coaches etc. for the education tours (Hudson, 2008).
- Accommodation- It is also one of the most important factors in regard to manage the accommodation and food services for tourists. TUI group assesses the demand of tourists regarding staying in the hotel, resort or villas and then provide a variety of choice to have a pleasant stay at the time of travel. Also, hotel provide multi-cuisines facilities as per the demand of travellers so that they can experience wide range of food culture of different countries (Khosrowpour, 2002).
- Ancillary services- Here, tour operators also provides additional services to customers such as financial, insurance and travel consultation etc, as per the needs of tourists.
4.1 Positive and negative economic, environmental and social impacts of tourism
There are different positive and negative impacts regarding economic, social and environmental which influences the growth of tourism industry. These are as follows-
Currently, the demand of travel and tourism services has been significantly increased. Thus, due to such increment it raises the economic of the country. Also, it provides different job opportunities to people and attract several investors to invest in international business. Another positive impact is that it assists in increasing the value of foreign reserves that supports in international trade services (Giudici and et. al., 2013). UK is one of the most important tourist destination. Currently, in the relevant industry 3.1million people are employed. This sector is third largest business domain that provide employment to number of people. It can be observed that 9.6% of total employment in UK comes from this sector. From 2009-2013 tourism industry employment rate grew by 5.4% which is just double of rate of employment in other industries which is 2.8%.
However, international tourism plays significant role in earning foreign exchange and generating revenue but it may also have adverse impact on the economy (Lennon, 2003). For instance, at the time when international tour operators are managed within the country then it enhances the chances of outflow of currency. Also, there is high number of outside visitors arriving the country instead of domestic tourists and thus it affects the foreign reserves. It is well known fact that UK is the one of the well known and most popular tourist destination. In case recession level elevate at global level then this will hit UK economy. This is because travel and tourism sector is one of the largest contributor in total value of foreign exchange reserve. With decline in tourism its share in foreign exchange reserves will also reduce. This will hit mentioned nation economy. It can be said that UK to some extent is dependent on this sector to earn foreign exchange. In case foreign exchange reserve decline, UK economy will badly effect same. This is one of the negative side of travel and tourism sector.
It is another factor that involves different natural resources such as wildlife, water etc. However, growth and development in tourism provides opportunities to wildlife lovers to visit the country and thus investigate the different breeds of birds and wild animals (Mak, 2011). Further, it is essential for the local authorities to safeguard the environmental issues such as increase in pollution and water management etc. In UK there is good biodiversity and due to this reason many researchers time to time related to varied disciplines come in the mentioned nation. Thus, UK is successfully developing itself as global research hub. Apart from this it is able to attract those people who prefer Eco-tourism. It can be said that mentioned sort of tourism create special image of UK as tourist destination.
Environmental factors also negatively influences the travel and tourism sector because with increase in number of travelers it leads to providing adverse impact on the environment in the form of carrying out illegal activities such as killing wild animals. Thus, it disturbs the ecological balance of the country (Page, 2011). In UK every year large number of people come to visit specific tourist destination. Due to lack of proper disposal of entire waste material surrounding area aesthetic reduces. Moreover, imbalance comes in existence in natural environment. Hence, it can be said that to some extent tourism put negative impact of environment.
Here, when people travel in domestic and international level for different purposes such as business, adventurous etc, then it increases the personal interactions of tourists with the host country population (Papatheodorou, 2004). However, such interaction is also very effective in regard to enhance the knowledge regarding the culture and heritage of the host country. In UK from varied nations people comes to visit places. When two nations people comes in contact, understanding about each other culture and social values get developed. This lead to development of broad understanding and good relationship between nations. Hence, it can be said that travel and tourism industry also give social benefits to the nation.
Further, it has various adverse impacts as well upon the society. For instance, interaction of local community to foreign culture may influence them and they adopt the same culture which affects the local culture, traditions and beliefs (Riege and Perry, 2000). UK is one of the major tourist destination. In the mentioned nation people related to varied caste and religion as tourist come like Asian, Africa, European, black and white etc. Their culture is also different from each other. In case people comes in contact with each other than to some extent they adopt other religion culture. It can be seen in the UK that Yoga is followed by number of people which is part of Hindu religion. Some times one culture greatly influence other one. Due to this reason domestic people leave there culture value and ethics and follow same of other one. Like happen in India whee people are increasingly following a western culture. Such kind of behavior affects the nation to great extent. Hence, variation or negative change in culture that is related to specific society badly affects the nation.
4.2 Strategies that can be used to minimize the negative impacts while maximizing the positive impacts
In order to minimize the negative impacts and maximizing the positive impacts of tourism there are different strategies that could be implemented by the government authorities which are as follows-
- Economic impact- UK government is required to encourage visitors from different parts of the world to visit the country and thus provides positive impact upon tourism. Additionally, public bodies are also motivated to organize different international events in London and thus attract visitors from across the boundaries. Thus, it is essential for the management to undertake effective marketing strategies in order to promote tourism in London (Lynch and et. al., 2011). Further, in order to minimize the negative impact it is essential for government to develop proper strategies so that leakage in the balance of payment can be minimized so that it helps in preventing the incomes to move outside the country.
- Environmental impact- Government authorities of UK is required to develop different rules and regulations in regard to ensure environmental safety and protection so that tourism places can be protected from any kind of damage. Also, public bodies organize different training sessions in order to provide knowledge about the environmental conditions and thus safety and security can be attained (George, 2010).
- Social impact- It is essential for UK government to launch different types of programs and campaigns linked with the positive and negative aspects of tourism and thus aware people in order to protect the society and culture. However, such programs can be launched through effective platform such as television, internet and social media websites and thus developing awareness among individual (Sloan, Kaufman and Legrand, 2012).
From the above study it can be assessed that travel and tourism industry is one of the growing sector in terms of generating revenue and job opportunities. Also, it identifies that development of advanced technology such as internet which helps in connecting different overseas companies to provide best quality services and products to travelers and satisfy their needs. The report also found that the tourism industry provides different positive and negative impacts upon the host community. Therefore, it is essential for the government authorities to develop proper strategies to minimize the negative impact and maximize positive impacts on tourism.
Books and Journals
Dale, G., 2005. BTEC National Travel and Tourism. Heinemann.
Deuschi, E. D., 2006. Travel and Tourism Public Relations: An Introductory Guide for Hospitality Managers. Routledge.
George, W. E., 2010. Intangible cultural heritage, ownership, copyrights, and tourism. International Journal of Culture, Tourism and Hospitality Research. 4(4). pp.376–388.
Giudici, E. and et. al., 2013. Is intangible cultural heritage able to promote sustainability in tourism? International Journal of Quality and Service Sciences. 5(1). pp.101–114.
Howes, L., Scarpaci, C. and Parsons, E. C. M., 2012. Ineffectiveness of a marine sanctuary zone to protect burrunan dolphins (Tursiops australis sp. nov.) from commercial tourism in Port Phillip Bay, Australia. Journal of Ecotourism. 11(3). pp.188-201.
Hudson, S., 2008. Tourism and Hospitality Marketing: A Global Perspective. SAGE.
Hudson, S., 2010. Wooing zoomers: marketing to the mature traveller. Marketing Intelligence & Planning. 28(4). pp.444–461.
Khosrowpour, M., 2002. Issues & Trends of Information Technology Management in Contemporary Organizations. Idea Group Inc.
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Riege, A. and Perry, C., 2000. National marketing strategies in international travel and tourism. European Journal of Marketing. 34(11/12). pp.1290–1305.
Sloan, P., Kaufman, S. C. and Legrand, W., 2012. Sustainable Hospitality and Tourism as Motors for Development: Case Studies from Developing Regions of the World. Routldge.
Teng, C. C., 2011. Commercial hospitality in restaurants and tourist accommodation: Perspectives from international consumer experience in Scotland. International Journal of Hospitality Management. 30(4). pp.866-874.
Vivanco, L., 2001. Spectacular Queztals, Ecotourism and Environmental Futures in Mote Verde, Costa Rica. Univeristy of Pittsburgh- Of the Commenwealth System of Higher Education. 40(2). pp.79-92.
Xin, T. K. and Chan, J. K. L., 2014. Tour Operator Perspectives on Responsible Tourism Indicators of Kinabalu National Park, Sabah. Procedia-Social and Behavioral Sciences. 144. pp.25-34.
Edgell, L. D., 2002. The Ten “P’s” of Travel, Tourism and Hospitality Marketing. [PDF]. Available through : <https://www.extension.iastate.edu/NR/rdonlyres/458279F5-112D-4B5F-AC85-F95C06BC64FA/75277/The_T> . [Accessed on 29 January 2016].
Giaoutzi, M. and Nijkamp, P., 2013. Emerging Trends in Tourism Development in an Open World. [Online]. Available through: <http://www.ashgate.com/pdf/SamplePages/Tourism_and_Regional_Development_Ch1.pdf>. [Accessed on 29 January 2016]
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