Contemporary issues in travel and tourism
Table of
Contents
INTRODUCTION
Travel
and tourism industry is facing such challenges which can affect their structure
and contribution in the economy. It is mainly dependent on the various factors and
highly volatile industry (Holloway, 2009). The subsequent
report enlightens the various aspects of this mentioned industry. In the
present report different techniques have taken into account to understand the
current issues and trends in the particular sector (Peter, 2011). Further the
impact of change has been explained along with the description of preventive
steps in order to reduce the negative impacts of changes. Strategies
formulation task will be taken into special consideration while the construction
of this study. The negative and positive consequences of change are also
portrayed articulately.
TASK
1: UNDERSTAND CURRENT ISSUES IN THE TRAVEL AND TOURISM SECTOR
1.1:
Analyze issues currently driving change in the travel and tourism sector.
UK has considered as the
major tourist destination all over the world. Its popularity is increasing day
by day. There are various places in UK which are key places from the tourism
point of view. There contribution is also so high in the nation’s economy. Scotland,
Wales, London these are the famous tourist’s spots and register half of the
tourist who visited at these places. Out of all these Scotland is most
significant place contributed a lot in the travel and tourism sector (Werthner
and Ricci, 2004). It has registered almost 12 million visitors every year. To
increase the number of visitors the local government is putting their immense
efforts in the field of developing more tourist destinations. The purpose of
travel is different in Scotland related to leisure travel, business travel and
education purpose. The main attractions of Scotland are Edinburgh zoo, castle, Balmorals
castle, lochness etc. Edinburgh, Aberdeen and Glasgow are the major cities of
the country and generate more revenues for the Scotland (Sharpley, 2006). There are various aspects
which are driving the change in the travel and tourism sector such as:
Technological
development: technology has its major
impact on the travel and tourism sector. It has increase the connectivity
between the countries and people are becoming aware about the new destinations
and attractions. Other than that online presences also increased the tourism
ratio among the tourists (Stokes, 2006).
High
disposable income: people are getting high
disposable income and due to this their spending capacity has increased. Now
they are capable of spending much money on the leisure activities other then
fulfilling the basic needs. It has the positive impact on the travel and tourism
sector (Farmaki, 2013).
Educations:
now a day’s people are becoming more aware about their education and
qualifications. They are receiving all the information online and high income
group people and scholar are travelling to other cities for higher degrees.
Industry
associations: travel and tourism sector
is dependent on the strategies of other industries also. Hotel industry,
airline industry and restaurant industry all these are inter-related and inter-dependent
(Chenoweth, 2009). The marketing strategies
of other industries are affecting the success of travel and tourism industry.
Therefore these are the factors which have introduced changes in the current
sector.
1.2:
Analyze different current issues using appropriate methods and resources.
United nation’s
report:According to the united nation’s report United Kingdom has been targeted
sometimes by the bombing and violence attack. UK has a destination where many
of the tourists travel largely. UK generally consists of many of the locations
which are world famous and people tend to travel to those places. If we talk
about UN’s report UK is a secure place to travel and celebrate vacations.UK has
been a destination where most tourists which to travel.
World
tourism report:
If we talk about
the report of world tourism UK has been highly praised and is among the top
holiday’s destinations. People generally tend to go there and enjoy. It has
been a destination where most number of people visits for vacations. If we talk
about the statistics and last year’s survey then UK has been a place which is
visited by most of the people and in percentage about 10% of total. (Carr,
2004).According to the survey from the tourism department UK is one of the
destination followed by most of the public.
Financial
report:
If we talk about
the financial report then UK is the destination which is affordable for most of
the public. The different hotels, motels, Restaurants and other famous places
are available for the tourists at very reasonable rates. There are many kinds
of offers available during the time of season i.e. when most of the people tend
to travel across the world. Sometimes, people tend to have different kind of
packages by referring to different tour and travel companies. This also helps
in the economic growth of the country i.e. UK. They have increased their
economic growth at a very certain pace (Peter, 2011).
Political
reports:
Political reports
also play a very important in the travel and tourism. They have huge impact on
the country in which the tourists are travelling. In UK where politics plays a
very important role because they still have King and Queen as an in charge with
the government also working in the main body. Both of them work in combination
and helps in sorting different kind of problems. They help the tourists in
sorting out their problems so that feel comfortable and no problems occur in
front of them (Werthner and Ricci, 2004[NN1] ).
2.1: Evaluate current
trends influencing change in the travel and tourism sector.
The major trends of travel
industry are the introduction of various types of tourism activities. This
sector has categorized the various travelling activities on the basis of its
types, territories and purpose(Tsiotsou and
Ratten, 2010). Different types of tourism are:
Inbound
tourism: when people travel within
the boundary of country or when local residents travel outside the territory of
the country, they calculation took place under inbound tourism.
Outbound
tourism: when the resident of other
countries visits in the nation’s territory they fall under the category of
outbound tourism (Weiler, 1999). It is
more beneficial for the countries.
Sports
tourism:Sports tourism is something
that could become popular due to popularity of any sports within any reason and
it the level of tourism increases due to any particular sports. In Brazil
football is very famous so in 2014 world cup, when Brazil hosts the football
world cup event, the numbers of customers were so high. If the travelling
purpose is related to sports it is called sports tourism. The major impact of
sports tourism is that it creates short term employment, sudden footfalls of
customers is its nature and most importantly sports tourism strengthen the
popularity level and maintain the enthusiasm of people towards any sports.
Leisure tourism: when
people visit without any specific purpose just for entertainment and fun it lie
under the leisure tourism. Other than these types of tourism adventure tourism,
spiritual tourism, business purpose travelling and heritage and cultural are
also major examples of various types of tourism activities (Manente, 2000).
Here the alternative
form of tourism is sports tourism. Due to 2012 Olympics held in London the economy
has gained huge boost and it has brought down huge transformations on the
ground of tourism development. It boosts up the level of employment and most
importantly the economic development also increases at very large scale. The
case study of London Olympics can help in understanding that how changes in
tourism sector ensuring the economic development. It is to acknowledge that due
to sports tourism London has experienced huge pitfalls of visitors and tourists.
Along with such kind of benefits and advantages the London has faced various
disadvantages as well. They have faced the problems of huge pollution, waste
management and most importantly the security factors were also a major problem.
Further the level of employment was seasonal due to sports tourism.
Impact of
sports tourism:
Sports
tourism really benefits different countries in earning a lot of benefits. They
helps in different ways and making the tourism for people a successful one. If
we talk about the London Olympics which was held in 2012 was a successful one
in which thousands of tourists attended this event and it was appreciated all
across the globe. Most of the people also used this tour as a trip to enjoy
other regions of UK also. They enjoy not only the games but also the whole of
United Kingdom. The support staff and security staff of UK really supported the
tourists and helped them in every possible aspect so that they may not face any
kind of problem. These were the important factors through which they helped the
tourists. There were some demerits also as the pollution created which effected
the environment and the waste products lying around. Since, UK is a very clean
and safe destination that’s why these factors were not accepted. But if we talk
about the tourism as a whole, it was a successful one and people enjoyed it a
lot.
Current
trends in travel and tourism sector are as follows:
·
Establishment of new hotels
is the revolutionary movement for developing the travel and tourism. Countries
are providing license to the five star hotels so that they can provide best
staying facilities to visitors.
·
Constructions of shopping
malls areotherefforts to attract the visitors. It provides them more fun
options to the tourist (Holloway,
2009).
·
Government is investing a
lot on their tourist spots. They are taking the help of universities and
archeological experts to improve the level of tourism in their regions.
·
Various airlines and tour
operators are also providing more lucrative offers to the customers. [NN2]
2.2: Analyze a current trend using appropriate techniques and resources.
When we talk about the modern era, there are different kinds of
appropriate techniques and resources which we are using in the current so as to
increase the market of travel and tourism. Market research is one of the
effective technique which is being followed by many of the travel and tourism
companies. It helps the tourists in many ways before choosing a destination. It
helps the public in deciding the location where they want to travel. Through
this source they can find which place in the world is good for travelling and
effective. People tend to choose UK for their vacation of many reasons. First
of all, the environment is very pleasant, the kind of behaviorin which the
public responds and the support given by the UK government. These are the
factors which makes the destination of UK so special. They have got superb
hotels, restaurants and motels which all are available at very reasonable price
for tourists. The other service in which UK government provide a lot of help to
the people is in the department of air service. They are having airports in
almost all the cities of the country.(Grimwade and Carter, 2000).
There is another technique through which people can easily choose
their destination for travelling. Travel and tourism department works through
this technique in an effective way. Industry analysis is also a technique
through which travel and tourism has made an impact in this global world.
Globalization has taken this global market to its peak and it has helped a lot
to the modern world and this generation and different travel and tourism
companies. This technique also helps the people
travelling to different destinations on a business trip. People tend to visit
UK for different business trips and they are quite successful due to the
conditions and environment they get in that country. These are the factors
which they need to keep in mind for a successful and happier destination plan.
(Lennon, 2003).
TASK
3: UNDERSTAND HOW THE TRAVEL AND TOURISM SECTOR RESPONDS TO CHANGE
3.1
Analyzing how travel and tourism businesses could respond to change
In order to analyze the way
in which travel and tourism sector responds change the City of London has been chosen
as a tourism destination. In order to get the appropriate findings SWOT and
PEST analysis are used to assess the respond to change (Riege and Perry, 2000).
Strength
London is one of the most
famous tourist destinations in world due to its strengths like wide assortment
of places like British museum, maritime museum, natural history museum, London
eye, Buckingham palace, greater night life, sports and adventurous tourism
activities, health and leisure tourism, etc. there is no doubt that London
holds significant strengths as tourism destination but at the same time some weakness
are also there in its tourism sector (Farmaki, 2013).
The infrastructure of city is its biggest strength and there are lots of eye
catching destinations as well. Further for any tourist destination the major positive
factor could have been the good connectivity which is available with London.
Weakness:
The major weakness of London
for tourists is that it is the most
expensive city in world and thus tourists have to pay massive amount for
visiting this city. On the other hand high entry fees are charged by the
destination places in London.
Opportunity:
The opportunity can be
created for this sector by reducing the tax rates so that people have to pay
fewer charges (Carr, 2004). On the other
hand government can make its visa policy flexible for tourists so that the
number of tourists can be increased.
Threats:
The interest of people
towards other destinations like Amsterdam, Paris, Berlin, Madrid, etc. is
increasing which is a major threat for the travel sector of London. Other than
this terrorism attacks and lack of security issues could also treated as major
threats or the cited city.
The
micro and macro environmental factors associated with travel and tourism sector
of London can be analyzed by using PESTLE analysis (Beaver, 2005).
Political factors:
The
key political factors that are making most effect on travel and tourism sector
of this country are high taxes and duties as well as frequent changes in visa
policies by every new ruling party.
Economic factors:
This
sector has also affected by the recent economic crisis. On the other hand
London is considered as the most expensive city in world which is not a good
sign for any tourist destination.
Social factors:
The
changes in travel and tourism sector of London have also facilitated by social
factors such as culture of the city and lifestyle of people is very much favorable
for the city(Cooper and Hall, 2012).
Technological factors:
The
technological factors in travel and tourism sector include online bookings of
different destinations as well as hotels, resorts and other palaces. This
technological advancement has largely affected the profits of middleman and
tour agents. Environmental factors such as level of pollution also make
significant impact on the travel and tourism sector (Swarbrooke and Horner,
2012). Finally the legal polities of London are quite strict which help
in eliminating the negative impact of increased tourism.
3.2 Developing the
strategies that how travel and tourism business could respond to change
In order to respond the
change a set of well developedstrategiesis required for London so that the
travel and tourism sector of this city can be operated properly (Meng, 2010). Initially it needs to use
different marketing strategies and tools for attracting increased number of
tourists in relation to competitive cities. Different museums as well as other
historic and scientific attractions of the London are its major strengths and
by doing rebranding of these destinations interest of people towards them can
be increased (Korstanje and George, 2012).
On the other hand hosting of different sport events like Olympic Games can
largely contribute in fostering the travel and tourism sector.
The
personalization of different attractions can offer a wide range of options to travelers
for visiting the city. The development of different venues, parks, museums, galleries,
clubs and shopping streets is the best suitable strategy for better performance
of travel and tourism sector. But initially it needs to reduce the taxes and
duties to give some relief to travelers (Sobral,
Peci and Souza, 2007).
3.3 Justifying
strategies for travel and tourism business
The
rebranding strategy of London in terms of travel and tourism is likely to make
its position stronger is relation to other famous cities like Paris, France and
Lisbon Amsterdam. The rebranding is expected to change views of people about London
and it will be recognized as the as the city with comprehensive mixture of
different tourisms attractions in terms of entertainment, heritage, adventures,
sports, etc (London
Design Festival, 2013).
The changed image of London is likely to attract more number of national and
international tourists (George, 2010). The strategy of
personalization of different venues and attractions can provide a range of options
for tourists to choose the best destination within the London. The availability
of different attractions is likely to attract people who have different
preferences.
TASK
4: UNDERSTAND THE IMPACTS OF CHANGE ON THE TRAVEL AND TOURISM SECTOR
4.1:
Analyze the impacts of issues and trends that drive change in the travel and
tourism sector
J.W. Marriott is one of the
leading hotels all around the globe. It has its presence in different countries
and serving millions of people daily. Hotel industry is different sector than
the travel and tourism (Wilkins and Hall, 2001).
But the negative aspects of one industry put its impact on the other industry.
Hotel industry has played its significant role in the development of tourism
and the growth of hotel industry is totally dependent on the tourism sector.
J.W. Marriott has successfully provides its contribution in increasing the
tourism (Swarbrooke and Horner, 2012).
It
is providing world class services to their services and luxurious and
comfortable environment is generating the highest revenues for the industry. Its
main competitors are other hotelier chains like Sheraton hotels, Dorchester
hotel and other five star hotels are there main competitors (Williamson, 2003). The organizational culture of the company is
also favorable for the tourists and choosing it as their preferable staying
location. Competitive prices and improved service quality is the impact of
issues and current trends and these factors are responsible to drive change in
the travel and tourism sector (Korstanje and George, 2012).
Due to various changes in travel and tourism sector the hotel is bringing the
various facilities like online booking etc. Through this factor the customer
satisfaction has become very easy. Further virtual tour is also biggest change
in the travel and tourism sector. With the help of this facility the cited
hotel can mould the decision making process into positive way. The hotel is in
position to provide satisfactory services to their customers and most
importantly they can win the trust of customers. Further the major impact of changing
issues and trends is that it is enabling the hotels to put more efforts so that
they can improve their service quality and visitors can get fair return on
their investment. The hotel has acquired various other brands which also
increases the market share and services range of the company. In 2012 the
Marriott group has acquired the Gaylord hotels and management company which was
the huge success for company. Recently the group has acquired the Proteahospitalitygroup
in Africa and become largest hotelier chain within the Africa. It allows them
to improve their competitive advantage. The major benefit of merger and
acquisition is that it facilitates to increase the customers base and network
of company also increases at very large scale. Ahead merger and acquisition is
required for hotels as it increase their capacity and operational efficiency
can also rose at very large scale. Thus these are some noticeable merger and
acquisition deals that has been signed by Marriot.
4.2 Discussing the
likely consequences of business failing to respond to market changes
In
case if the business is not able to respond the change in market in an appropriate
manner then it can lead the business to its fall. Due to such consequences the
business of JW Marriott can largely affected in terms of its revenue and profitability.
Marriott is well known for its luxurious services but if it is not able to
respond to market change than the perception of people about this hotel can change
and that can harm its goodwill in market (Vrana
and Zafiropoulos, 2006). The business of a hotel largely relies on the
world of mouth marketing and negative image of a hotel can result poor position
in front of competitors. Initially Marriott has to make appropriate changes in
its prices as per the economic scenario and change in demand and supply. During
the peak season hotel can raise its prices but when the demand is low it has to
cut down its prices to attract guests (Wong,
2004). On the other hand it is also important for the hotel to adopt
technological advancements to remain in competition as all other key players in
industry are providing services like online booking. If Marriott dose not adopt
this change then it will lose a big part of customers which can be attended
through online presence. Additionally, if the services of Marriott are not
appropriate and updated than it will lose its customers and very soon it will
have to survive for guests(Korstanje and George, 2012).
CONCLUSION
The keen observation of
various reports like financial and political reports, international tourism
report has clear the insight about the current trends in travel and tourism
sector. Industry analysis and market research helps in gaining the deep understanding
of growth and development in the tourism sector of Scotland. With the help of
this report one can easily understand the pattern of strategy formulation. Both
the factors like which affect the industry (change in currency, exchange rates,
political relations etc.) and other one which has felt the change (like
employment generation, more economic contribution, GDP growth etc.) are also
clearly understandable through this report (Swarbrooke
and Horner, 2012).
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