Contemporary Issues in TT Sector Assignment
Diploma in Travel and Tourism
Unit Number and Title
Contemporary Issues in TT Sector
This case study is associated with different issues that drive change in the travel and tourism sector and various information are prepared for supporting the training of new employees who will join the team of business strategy on current issues driving change in travel and tourism. Also, in respect of the International Airlines Group, the analysis of the travel and tourism business environment is analysed and new strategies are developed in this respect.
1.1 Analyse issues currently driving change in the travel and tourism sector for a selected tourist destination.
There is a growing inclination towards UK as a destination for tourists from various parts of the world in comparison to other tourist destinations in Europe. In UK, there are so many places of attraction that inspires the tourists to visit that tourist destination . The nation’s economical growth is taking place with the help of tourism. There is a steadfast growth in the number of tourists in UK. To sustain this growing popularity of the tourists, the government of UK is playing an active role towards developing tourism. In this regard, the issues currently driving change in the travel and tourism sector for UK is being considered.(Page, 2012) A lot of changes are taking place in the travel and tourism sector and there are different factors that are influencing different tourist destinations with different factors. In relation to the stakeholders, these factors associated with the travel and tourism sector are taken into consideration as important issues that are related with the travel and tourism sector as well as the tourist destination. The adverse impact on the travel and tourism sector is being controlled by the government as well as the various travelling agencies.
There major issues that are currently driving change in the travel as well as tourism sector for UK are as follows,
- Environmental impact – The travel and tourism sector in UK is having a strong impact of the environment. There is the occurrence of negative factors which are impacting the different activities related with the travel and tourism sector in an adverse way. With the steady development of the tourist’s number in various attractive locations in UK, there is also the rise of different type of pollutions such as air pollutions as well as water pollutions in these places. (Hall, 2012) Along with that, the negative impact of noise pollution is also on the rise in various places of attraction for tourists in UK. Apart from these, there are also various other factors that are creating a negative impact on the environment due to the development in tourism which are erosion of the soil, greenhouse effect and so on.
- Technological development – In the travel and tourism sector, changes in the technology are significantly affecting the tourism business in UK. The small tourism businesses are facing the sustainability issues due the changes in technology that are occurring. Considering the positive impacts, the travel agencies as well as the destination for tourists will be generating a growing amount of revenue. The development of technology is assisting the tourists to gather a large quantity of information in respect of the destination for tourists and other aspects in relation with the travel and tourism sector. (Hall, 2012)
- Impact of globalisation – Globalisation has helped in the occurrence of a multitude of scopes in respect the travel and tourism sector. Different technologies are being applied and various multinational organisations are emerging to produce, operate, distribute and do business in the global market. There has been a huge growth of the people as well as tourists in relation with globalisation towards travelling aspects like business, leisure, education, health, and many more that is being supported by the multinational companies, travel agencies, hotels, service providers and many more. (Molz, 2012)Also, due to globalisation there has been the development in the growth of communication, technological implementation, business related scopes regarding globalisation and sustenance of the travel and tourism sector.
1.2 You should analyse at least two different current issues using appropriate methods and resources in depth focusing mainly on the impact of political unrest in the Middle East and North Africa, terrorism and counter terrorism measures, severe weather, local and international laws.
Two different current issues focusing mainly on the impact of political unrest in the Middle East and North Africa as well as terrorism and counter terrorism measures are mentioned as under,
- Issues related with political unrest – In North Africa as well as Middle East, there has been a lot of political unrest that is presently taking place. Civil wars as well as revolts that are associated with political demonstrations are seriously affecting the popularity of these places as tourist destinations. The global crisis in respect of the financial scenario is also a major issue associated with the political unrest in these two places of tourist destination. Factors like rise in prices, employment growth, and cultural division are aggravating the issue of political unrest in these places. There are also various issues that are acting as catalysts in respect of the violent protests and riots that are occurring in the Middle East as well as North Africa. (Jenkins, 2011) A very important issue in respect of the political unrest that is taking place in these places is the issue of unemployment where a majority of unemployed youths being confused, frustrated, and directionless are getting themselves involved with the various political parties, and taking part in the protests thus giving rise to a growing chaotic situation in these places. These situations are affecting the Middle East as well as North Africa by portraying a negative image which makes the tourists sceptical, whether they should be visiting these places or not. Also, from the everyday news reports associated with the political unrest in these places, there is a very negative effect on the transport, hospitality, as well as other segments of the travel and tourism sector that is the diminishing the interest of the tourists to travel to these tourist destinations. (John, 2016)
- Issues related with terrorism and counter terrorism measures – Terrorism is a very significant issue in the world which is definitely creating a lot of hindrances regarding the smooth running of the tourism business, especially in these two places such as the Middle East and North Africa. Since, the numbers of tourists are getting reduced in these places; there is a significant downfall in those places’s economical growth as because the tourism is considered to be a significant reason for the earning of foreign exchange. There is the existence of terrorist groups in North Africa as well as the Middle East which are the reason for different terror attacks that have happened in these places resulting in the death of civilians. In these moments of crisis, the government is required to take actions proactively. (Kozak, 2010)For improving the situation as well as increasing the tourist’s number in these places, effective measures are required to be taken by the government. In this regard, counter terrorism measures are being implemented to curb the rise in terrorism, by fighting as well as preventing the occurrence of terror attacks and it should be ensured that the root cause of terrorism must be concentrated upon and it should get sorted as soon as possible.
3.1 Analyse how International Airlines Group businesses could respond to change.
The International Airlines Group businesses are affected by the changes taking place in the travel and tourism sector. The exchange rates, technological innovations, changes due to economical conditions are the matters of serious concern. The International Airlines Group is providing their services on an international level. There can be various types of influence in respect of International Airlines Group for responding to change which are mentioned as under,
- Social influence – Through the evaluation of the current trends and the lifestyle of the customers that is based on the global market, the market approach and the services are to be carried out by the International Airlines Group. It needs to consider the trends related with the travelling decisions for the tourists who wish to take their services.
- Economical influence – The economical factors that affect the business related with the International Airlines Group are the issue of rise in prices that affects the customer’s decisions making ability in regard of air travel. The lower cost airlines are taking advantage of the situation and trying to create an impact on the purchasing decision of the tourists. The International Airlines Group should try to penetrate the mass developing market of the tourism sector in respect of the current economical scenario in the global market. (Iqbal , 2011)
- Technological influence – The influence of technology is huge in respect of the International Airlines Group. The major innovations in technology are significantly affecting the International Airlines Group business. By adopting the changes related with the airline’s technical operations, there is the possibility of responding towards changes linked with the technological innovations. This changing scenario related to technological innovation impacts the scenario of booking, offering services and technological implementation.
- Political influence – The policies of the government that are related with the airlines business and the operational scenario in relation to security is needed to be considered in respect of the business functioning of the International Airlines Group. The political change that is taking place in the countries where International Airlines Group is currently functioning, affects the visits associated with inbound as well as outbound tourists and the transport system. (Iqbal, 2011) As a result, the International Airlines Group is required to implement various business strategies by analysing the current political scenario.
3.2 Develop strategies on how International Airlines Group businesses could respond to change.
In this respect, two airline companies are being selected which are British Airways as well as Aer Lingus. Let us discuss the various strategic aspects that are needed for responding to change which are as follows,
British Airways: The biggest as well as famous airline in UK is considered to be British Airways. The airline is well-known throughout the world as well. But during the last couple of years, the airline has fallen from its cherished position of repute and is not being able to function in a profitable manner and taking this aspect into consideration certain strategies are being developed which are mentioned as under,
- Establishment of revised fare chart for distance covered: There is the requirement of establishing a revised fare chart that will assist the passengers who will board the plane to purchase the tickets with amount which is considered reasonable.
- Establishing priority plans: It is very much significant that the airline being the biggest in the league should be planning every aspect very sincerely which requires identifying the crisis situation such as where they are facing significant losses and what are the reasons for the customers getting dissatisfied with their services. This could be done by designing a flow chart to reflect upon the situation and which possesses easy accessibility.(Moxon, 2013)
- Establishing plan of contingency:This strategic aspect takes into consideration the scenario that reflects in what ways does the passengers of British Airways are getting impacted due to the delay in flights or because of it taking sudden halts without any prior announcements. There is a need for the airline to reflect on this issue and they should reduce the delayed timing as well as offer the passengers with sufficient amenities to compensate for the loss of time. (Iqbal, 2011)
- Establishing appropriate time management: Time is considered to be an indispensable factor in the travel and tourism sector. It has been observed that there has been delay of the connecting flights with any prior notifications and because of this the passengers are unnecessarily harassed, therefore British Airlines should take utmost priority to solve this matter and take measures for appropriate management of time and ensure that this time management is required to be followed very strictly.
Aer Lingus: This airline company is considered to be the second largest airline in Ireland that was founded by the Irish government and privatisation of the airline occurred within 2006 & 2015. The various strategies that need to get developed for responding to change are mentioned as under,
- Establishment of appropriate planning – The airline company being the second largest airline in Ireland should have a very good introspection of the present situation and then reflect upon the various changes that are required to be considered for establishing the appropriate plans to sort out the discrepancies the airline is presently facing.
- Consumption of cost – The airline company is required to sustain the factors associated with pricing when they are planning to redesign the structure of air fares. This requires them to consider the passengers from various income groups and in that respect an effective plan of research should be made to link the various expenses that are related to it and air fare should be made as much reasonable as possible. (Moxon, 2013)
- Solving internal issues – At times, it has been observed that the employees who are working with Aer Lingus are not being able to have a healthy social life and as a result they are not feeling happy. In this respect, the manager should take the initiative of chalking out various plans for making the employees feel satisfied, then giving them appropriate training and also assist them in building their skill set so that they are able to perform their work effectively and in a dedicated way.
3.3 Justify strategies for how selected International Airlines businesses could respond to change.
British Airlines as well as Aer Lingus are the two airlines that are considered in this regard. The strategies that are required to justify in what ways the selected International Airlines business could respond to change are mentioned as under,
- Development of circumstances for appropriate planning – The airline industry is going through a rough phase in the present scenario and because of that, the industry is suffering from huge losses also, therefore it is very much necessary for British Airlines as well as Aer Lingus to conduct appropriate planning as the primary step to develop effective ideas by focusing on those areas that require to undergo change.
- Reassessment - It is significant that the two airlines i.e. British Airlines as well as Aer Lingus are required to do a proper reassessment of the feedback that are received from the passengers and then appropriate reflection should be made regarding what is needed to be implemented. (Scott, 2012)
- Justifying the structure for price – The two airlines i.e. British Airways as well as Aer Lingus should possess fairness when they are doing the implementation of the structure for price. It has been observed that at times the air fare is quite high that makes it quite impossible for the normal passengers to afford it. Though, there is the use of loyalty points by the British Airways which can be later redeemed by the passengers who are constantly travelling with the airlines but this is not the proper reason for the airlines to make a huge increase in the prices and cannot be accepted by the passengers.
- Appropriate structure of the organisation – Both the airlines company i.e. British Airways as well as Aer Lingus should possess an appropriate organisational structure since it is the responsibility of the senior management of the two airlines company to organize the overall functioning that takes into consideration the observation the smooth operation of various departments as well as the better functioning of the airlines. (Scott, 2012)
- Cancellation problems – It has been observed that at times passengers have to face a lot of difficulties for cancelling a particular ticket and the cancellation process takes a lot of time that creates a lot of confusion and problem for the passengers therefore appropriate strategies are required to get implemented so that the problem related to cancellation should get resolved at the earliest.
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector with reference to Myla Travel, Thomas Cook and The Travel Network Group.
The impact of issues and trends that drive change in the travel and tourism sector are mentioned as under,
- Technological issue – Technology is considered to be the most important aspect that assists in connecting individuals at a domestic level and simultaneously on an international level as well. According to a research conducted by Thomas Cook, it was observed that in the current scenario, internet has become the part-and-parcel of every household and in the same way mobile phones are being utilised for better connectivity. Technology assists in searching for better locations for holidaying and also there is the easy option of online booking on the click of a button. (Frechtling, 2012)
- Holiday trend – Now-a-days, individuals are focusing more on holidays that are either of longer duration or shorter duration. There are different kinds of mindset of people who are travelling. In this respect, the three discussed travel organisations have minutely observed the holiday trend of different individuals and drew an inference that people who are travelling mostly one to do it with families as well as friends and as a result the travel companies are focusing on the family packages that are producing a positive impact.
- Employment issues – With the growing popularity of the travel and tourism sector and with the growing fascination towards travelling, the number of people who wish to travel is having a steadfast growth. (Frechtling, 2012) For sustaining this ever increasing demand of tourists, the travel companies are having the requirement for more manpower and therefore more individuals are required to join the travel companies, but in this respect there is the need to possess appropriate skills to deliver the work effectively.
4.2 Discuss the likely consequences of businesses failing to respond to market change with reference to Myla Travel, Thomas Cook and The Travel Network Group.
The likely consequences of businesses failing to respond to market change are mentioned as under,
- Eco-friendly destination – In the current scenario, people are putting a lot of emphasis on travelling to eco-friendly destinations. In this respect the discussed travel companies are planning to offer various attributes associated with living with the local people in the midst of the environment, offering organic foods, mixing with local cultures and so on, but this requires a lot of investment and therefore the travel companies have incurred significant losses in this respect. (Evans, 2012)
- Change in climate – This is an erratic aspect that has a severe impact on the travel and tourism sector, since it is quite tough of foretelling of the climatic change accurately. For instance, everyone remembers that massive devastation caused by tsunami that affected the tourism business severely and the travel companies had to face huge amount of losses. (Evans, 2012)
- Reduction in prices – The tour companies such as Myla Travel, Thomas Cook as well as The Travel Network Group provide every facility that is required for travelling starting from documentation of flight tickets, lodging, food, sightseeing and so on. This entire process requires a lot of cost to be incurred but at times for attracting an increased number of customers, the travel companies reduce the prices and this is a major risk that they deliberately undertake since this give rise to significant losses for the travel companies.
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Contemporary issue TT Sector case study delves with the various contemporary issues associated with the travel and tourism sector that includes the analysis of the issues that are presently driving change in the travel and tourism sector. Then issues are discussed that are focusing mainly on the impact of political unrest in the Middle East and North Africa as well as terrorism and counter terrorism measures that are taken in these places. Also, the impacts of issues and trends are analysed that are driving the change in the travel and tourism sector and along with that the likely consequences of businesses failing to respond to changes in the market are discussed.
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