Positive and Negative Impact on Travel and Tourism Sector Assignment
Diploma in Travel and Tourism
Unit Number and Title
Positive and Negative Impact on Travel and Tourism Sector
Travel and tourism is growing industry with large contribution to economy of the country. The Positive and Negative Impact on Travel and Tourism Sector Assignment will discuss the factors driving the changes in industry, the report will discuss the changes made by tourism to meet the demands of customers. Later report will determine the impact of economical, social and environmental effects on tourism. The report will use the strategies to overcome the negative impact and to enhance the positive changes in destinations.
Poster is created to illustrate the key historical developments in travel and tourism sector. The poster also presents the international structure of tourism industry in which various agencies and packages are included. The poster is attached at next page.
3.1 Factors affecting tourism demands
The challenging competitive environment of tourism business is being affected with the demands in industry. TUI Group needs to understand the factors driving the demands so that suitable strategies can be made to meet the organizational objectives. Following three factors are affecting the demands in tourism:
- Technological: The changes in technology have reshaped the environmrnt of business to reach the customers and to fulfill their satisfactions. Tourists are demanding the services for easy pay and management of purchases in tourism. They are moving towards the online systems and safety equipments. Customers of TUI Group are expecting the web interface and easy control to their interaction in tourism services. The technological changes are adding the services and comfort to customers and enhancing the efficiency in business. The customer prospective towards the new technology is being a barrier in tourism to accomplish the implementation of technologies in cost effective manner. Technical changes are encouraging the use of safety, security and entertainment related services in travel and tourism. Customers are expecting the technical advance and efficient services in tourism with TUI Group (Parra-López and Calero-García, 2010).
- Globalization: It has opened the door for tourism to meet the organizational objectives with global market of opportunities. The expansion of tourism in various countries has enhanced the scopes and competition for TUI Group. Globalization has empowered the customers to find the best returns in their money so that tourism has effect of low prices but quality services in organization. Organizations has opportunity to earn the benefits with global market but the competition and rapid changes in customer demands like easy service control, more luxury, new and innovative culture, adventurer destination choices etc are affect the demands in tourism.
- Macro-economy: The changes in currency exchange rates affect the demands in tourism. Customer prefers to visit the destination with is stable in currency rate and has high exchange amount in return. The interest rate on currency also diverts the customer decisions to participate in tourism. TUI Group has expansion in many countries and need to be aware with macro economical factors like currency exchange rate, interest in pricing and purchases, inflation and disposal income of customers in region (Peeters and Dubois, 2010). Organization has impact of inflation and governmental interests on pricing of tours and travels. The sources are incomes are being changes and disposal income is increasing in present life style. High disposal income inclines the customers to demand the service of tourism to visit attractive destinations.
3.2 Changes in supply to meet effects of demands
The business can sustain and grow only with the satisfaction of customers and opportunities in market. TUI Group has aligned the services and products according to demands in tourism sector to retain in market with high benefits:
- Provisions: the organization started to offer the quality food and accommodation along with tourism packages so that customer satisfaction can be achieved. TUI Group is offering the provision of food and accommodation services with tourism packages. The quality and in time service factors are also being considered in provisions.
- Product types: TUI Group has demand for the classified products to meet the customers with different interest and income levels. The organization has categorized the tours and services into various levels like regular, special, adventure and sport tourism. Also the services are classified according to demand of comfort and supplementary requirements in journey (McCabe and Johnson, 2013). The product and services are designed for economic pricing value so that most of customers can enroll themselves for tourism.
- Technological implements: The demands in tourism for safety, security and accessibility are assessed with enhance technological implementations in TUI Group. The organization has use the internet based services to offer high integration of customers into their services with organization for registration, payment, offers and availability of resources. Web and mobile applications are being used to serve the customer demands in time with quality services.
- Seasonality: Customer’s demands in tourism for the services of tours in specific season are addressed by organization in the form of arrangement of seasonable packages. The seasonality of tour packages are used to meet the demand and benefits in specific time of year. TUI Group has enhanced the resources and assets to accomplish the supply during specific season of high demands in market. TUI Group offers the visit to several destinations in specific time of year so that management can be made easy and market benefits can be achieved (Buckley, 2012).
- Sustainability: TUI Group has introduced the benefits for the older customers and plans to enroll the customers in business. The sustainability is achieved with improved quality of products and services. The marketing planning, currency exchange facilities and payment modes are offered to achieve high sustainability in tourism. Organization also use the innovative ideas like welcome procedure for tourist, assistance in journey and customization in tour packages to attain customer satisfactions and sustainability.
4.1 Positive and negative impact on tourism
TUI Group has two Thailand and Greece as the major destination in tourism and travel. The organization has a large number of visitors in both destinations. As results the following impacts are remarkable in both countries with tourism of TUI Group:
- Economical: Greece has ancient background with mixture of modern infrastructure to attract and comfort the visitors. TUI Group has coverage to all larger museums, hotels and natural destinations in country. The economy of the country is driving with tourism business. The appearance of visitors in country and stay there for a long time has improved the economic strength of country. The country has direct and indirect employment in tourism for about 6.5 millions peoples. The employment contributes the 16.7% of total employment in country. At other side, Thailand is naturally enrich and has beautiful destinations to attract the visitor, TUI Groups have regular tours to Thailand and country has about 20% contribution in economic strength through tourism.
- Environmental: TUI tourism in Greece has empowered the growth of the environment in country. Greece has enhanced the development of environment to attract the customers. The proper management is seen to reduce the pollution and crowds. The Greece has although lack of greenery and natural phenomena but has used the resources effectively to aid the enjoyment for visitors. Practices are used to naturalize the environmental conditions (Sandbrook, 2010). The government of Thailand is offering the services to preserve the nature of destinations. However, the increase in tourism to these destinations has impact the environment conditions of destination. The destinations are being inclined towards more benefits regardless to save the nature and natural resources.
- Social: Greece has destinations those are designed according to global demands and attraction points so that local social and culture values are affected. It becomes harder for local culture to meet the beach and modern life. The Greece is socially and culturally focused to ancient pattern and the changes are introduced in their culture due to tourism. Local community is facing the issues to reserve their cultural values and social ethics with TUI Group. At other side, Thailand is also facing the issues to preserve the ethics related to animals and natural phenomena. The destinations have improved the social level of living patterns and behaviors but TUI Group is also placing influence of normalization of global culture in destinations (Holden, 2016).
4.2 Minimization of negative impacts
Tourism sector need some strategies and plans to use the destination for future sustainability purpose. If the destinations will be used in same manner, it will become difficult to make visits and sustain on their behalf. In order to minimize the negative impact and to encourage the positive changes, TUI Group can use the strategy to employ the local community of destination so that employment can raised and development can introduce in hosting destination. The organization also needs to collaborate with inbound service providers and to engage itself in public interest to reduce the cost and to support the economy. TUI Group needs to follow the governmental policies to contribute the economy of destination. Organization also can encourage the visitors to stay in destination for a long time so that contribution in economy can rose.
TUI Group should plan to help in environmental practices at destinations so that pollution can be reduced. The organization can improve the vehicles to reduce the addition of carbon dioxide and other components through smoke. Also the natural places should be kept clean and attractive. Visitors can be guided to preserve the natural characteristics of destinations. Organizations may contribute the destination to develop the environment for the greenery, fresh airs and clean roads so that environmental hazards can be reduced (Moutinho, 2011). The strategy to support the environmental factors will enhance the brand image and reputation in local community. Organization may use this strategy in Greece and other destinations.
Rather than to go forward in modern life style, the organization may guide the visitors to feel the ancient cultural and ethical values at destinations. The social culture and patterns can be empowered with visitors as they can be directed to study the culture and social patterns in destination. Organization may use the destination promoting on the basis of culture and social values at destinations. Strategies can be made to make sure the growth of society in destination along with the positive changes of tourism. The destination can be enhanced to answer the modern practices and their implementation in destinations. TUI Group can offer the seamless experience to customers during their stay and journey in other countries by promoting their ethical values (Mason, 2015). Also the packages can be prepared with similarity of customer culture so that they feel comfort and leisure during their visits.
The report has been discussed the factors those are driving the demands in tourism and determined the possible changes in supply to meet the demands. The report also has been discussed the positive and negative impact of economic, environmental and social factor of tourism on destinations. The report has been addressed the strategies to overcome the negative impacts and to enhance the positive changes in destinations.
Books and Journals
Buckley, R., 2012. Sustainable tourism: Research and reality. Annals of Tourism Research, 39(2), pp.528-546.
Holden, A., 2016. Environment and tourism. Routledge.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
McCabe, S. and Johnson, S., 2013. The happiness factor in tourism: Subjective well-being and social tourism. Annals of Tourism
Research, 41, pp.42-65.
Moutinho, L. ed., 2011. Strategic management in tourism. CABI.
Parra-López, E. and Calero-García, F., 2010. 3 Success factors of tourism networks. Advances in tourism destination marketing: Managing networks, pp.27-39
Peeters, P. and Dubois, G., 2010. Tourism travel under climate change mitigation constraints. Journal of Transport Geography, 18(3), pp.447-457.
Sandbrook, C., 2010. Local economic impact of different forms of nature?based tourism. Conservation Letters, 3(1), pp.21-28.