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Unit 1 Assignment on Travel and Tourism Sector
Diploma in Business
Unit Number and Title
Unit 1 Assignment on Travel and Tourism Sector
2.2 Implication of political change on the travel and tourism sector in different countries
The interest of visitors in a country with the tour and travel operators has impact of the political stabilities. It depends on the nature of political changes to drive the increase or decrease of the tourism in country. The pervasive unsafe environment in country before the changes may turn into the improved conditions in country to increase the tourism towards the stability. The longer unsafe political environment in country may reduce the interest of tourism sectors along with visitors. The destination are assumed to be safe and enhanced for the visitors and tourism sector. The case of Egypt with continuous unsafe political nature is an example of impact on tourism. The Egypt has dropped the tourism industry and threatened the visitors to choose the country as the destination for their journey.
United Kingdom has the great contribution of the Chinese tours and travel to London and other areas in country. The record stated that China has contribution of about $500 millions in United Kingdom’s tourism sector (Evans.et.al.2012). The increase of tourist has been noted with 112% for the year. This is because of politically stabilities of the United Kingdom. The government of United Kingdom has contribution in promotion of the tourism and tours to London like major cities in countries and offering the facilities to outer tourism business to grow with them. The government of United Kingdom is also supporting the tourist with additional facilities in countries and tourists are feeling safe and secure with government of UK. The support of government to Chinese tours and travel has enhanced the transportation among both countries. The china and UK has no shared to conflicts in decisions and processes. The feasibility of government in visa process has encouraged the tourism sector to establish the links with UK destinations.
The interest of the type and cruelty of the political changes in country decides the interest of the tourism sector. The Chinese economy is stable but the major problems are seen in the political behaviour of the country. The country has recently negotiated the travels of Korean and Taiwan due to their instability (Sahaand Yap, 2013). This has influence the tourism in country from the neighbour countries. The positive points are China government is offering the well services to rest of world for the tourism in China. The American visitors are facing security and safety during their visits in China. The country is forcing the domestic travel and tourism tonew dimension so that internal transportation as well as links with other countries can be stronger for the sustainable benefits in tourism of country. TUI is one of the leading organisational structure to make the relations strong between United Kingdom and China. The organization has branches in both the countries and encouraging the relation with governments to enhance their tourism for the key destinations in the country with the collaboration of government (Mason, 2015). The government of countries also respect the policies of each other to enhance the tourism in country for the economic strength.
3.1 Factors affecting tourism demand
There are several factors those are responsible to determine the interest of tourism for destination. Organizations like TUI Group needs to determine the destinations are effective to generate the sustainable scope in market along to accomplish the customer demands. The tourism business is being reshaped with the new demands:
Demographic: The demographic factors of tourists like their age, gender, race, occupation and education plays a vital role in selection of tourism destinations. The personal characteristics of the tourists drive their interest and the influence can be seen on the tourism. Tourists in TUI Group are moving towards the destinations those are newer for them in term of difference in culture and fashion but affordable in their economic values.
Technological:The technical enhancement in tourism business has change the pattern of travel services in TUI Group. The organization is providing the entertainment during the travel and also the journeys with the technical security are preferred by the customers. (Ridderstaat.et.al.2014) The organization is using the GPS like tracking and monitoring tools with their services to enhance the experience and security. The technology has simplified the tourism operations and has benefitted TUI Group to enhance the security and management of business enterprise.
Economical: The tourism business has great impact of economical values of the tourist and country. The various countries have various packages prices in TUI Group. The organization needs to negotiate the right margin and pricing for the services to several destination according to demands. The demands of economical services in tourism has enforced the business to align the strategies according to customer and hosting location. The values of the currency and taxes on services draw the influence on the tourism inside the country. The economical up downs results in the instability in tourism sector also.
Globalization: The workforce utilization and pattern are being changed with the globalization process. The expanse of the tourism business of TUI Group has enforced the demands to adopt the global standards (Goh, 2012). The globalization has enhanced the competition but also increased the opportunity to earn the higher benefits with endless customer chain. For the globalization, TUI Group needs to tie up with governments and needs to manage the rules and policies to work in various countries. The visa problems and currency exchange are appearing as barrier for the organization behaviour.
3.2 How supply has changed at TUI Group to meet the effects of demand
In order to meet the demands and effects of the various factors on the tourism, TUI Group can enhance the services and patterns to meet the objectives. The factors can be overcome with modified supply at TUI Group as organization can provide the accommodation to tourists to meet their demands during long and delayed journeys. In following areas, the organization can enhance the supply to meet the effects and demands:
- Provisions: The organization can add the provision of accommodation and food along with the basic tour charges so that customer and market can be covered for more benefits. Also TUI Group can encourage the tourists to make benefits with reduced cost on combo packages for their journeys (Morley.et.al.2014).
- Tour operators:The countries with beautiful destinations may not be in coverage of own tour services In such cases TUI Group can collaborate with domestic tour services to reduce the cost of organization towards the customer satisfaction and the changes in working patterns.
- Quality: The quality can be enhanced according to demands of tourists so that demographically difference can be turn into the segmented benefits for the organization. The tourism industry must need to provide the best match services within the budget.
- Type of products: The services and packages can be prepared according to economic conditions in country so that most of the market can be covered. The tourists in TUI Group should offer the variants in tour packets so that they can select the best match. The products and services during the journey also should be according to market trends and competition (Frechtling, 2012).
- Seasonal plans: Some of the destinations are only effective to visit in particular seasons so that tours and travels can be arranged to supply the demands and requirements in TUI Group. The organization can arrange the resources inside the country to make the benefits with seasonal opportunities.
- Technical changes:The supply chain can be analysed by TUI Group to add the technical features in travels and tours. The organization is making the services technically powerful as the ticketing and booking system are made online. The packages and services can be viewed on the website of organization. Also the tracking systems added to travels so that location management is easy. The technology can be used as essential part to grow and sustain in market with effective supply (De Vita, 2014).
4.1 Positive and negative impact on tourism
There are various impacts on tourism with economic, environmental and social factors. Every factor has own positive and negative impact on TUI Group.
- Economic:Egypt is economically derived from the foreign currencies so that TUI Group has impact of the economic factor. The country has high economical values for the tourism. The Thailand at other side economically not so strong to establish the tourism services effectively in country. The impact is positive in term of Egypt as it provides the scope and opportunities for TUI Group butthe uncertainty in economic status is a negative point of Egypt. The Thailand is the best choice for the economic strategies in country by tourism sector.
- Environmental:The environmental conditions of Egypt are not in the favour of tourism form the global market as there is lack of rains and cold which is mostly liked by tourists. At other side Thailand is positive location as it has greeneries and water sources in various destinations so that TUI Group can serve the tourists with better experience and satisfaction (Kim.et.al.2013). The negative point with Thailand is its uncertain climate. Egypt is also not preferred sometime due to its hot nature conditions along with high pollution in air. The positive point with Egypt is its certainty in climate stabilization so that packages and travels can be planned with effective use of resources and reasons.
- Social Factor: Both the countries have large difference in their social patterns. The Egypt has concentrated to a single social pattern as most of peoples are under the same shade of the culture. The similarity of social pattern in Egypt is although different from rest of world. Most of tourists love to taste the changes in social patterns where as many find it difficult to adopt. So TUI Group has advantages of different social patterns. The Thailand is mix of culture and has no such large variation in social structure in comparison of other countries. Therefore the capability of Thailand to adopt the various social differences is its key point for the TUI Group. Tourist easily gets in close with social structure of Thailand. In this manner, the impact of environmental and economic factors affects the growth and development of TUI Group (Sinclair-Maragh.et.al.2015).
4.2 Deal with Impacts
The impacts can be minimized on organization with the proper use of strategies. The positive impacts can be encouraged with the strong and competitive strategies form TUI Group whereas the negative impacts need the special treatment from the organization to achieve the benefits. TUI group can encourage the awareness of environment health in their brochures and packets to that destination can be managed with clear nature. Also the travels and tours can be optimized to reduce the pollution. The inflation can be reduced by making proper strategies to balance the economic differences. The environmental related positive changes and strategies starts from the initiation of the TUI Group. The nature climate and weather cannot be changed but the occasion to visit the destinations can be planned with the statics of the weather forecasts. In this manner, organization can use the occasions to enhance the tourist experience and satisfaction.
The economic factors can only be conquered with the proper align of the strategies. Countries those are weak in economic conditions can be served from their own tourist agencies and operators (Ak?n, 2015). TUI Group can select the countries with right pricing and margin to enhance the benefits with economic changes. The uncertainties of economic storms should be covered with market competition. The prices and packets can be set according to the country to achieve maximum benefits with growth. The weaker countries can be balanced with other economically strong countries so that overall profit and services can be managed effectively. Thailand can be treated with the economic prices and packets as it is economically weak but the outsiders can be charged with the value of currency in their country.
At last organization also needs to manage the social differences. The packets can be prepared according to the source country and the destination places so that social patterns can be viewed in same manner. TUI Group uses the strategies to make the synchronised experience during the travels but in many destinations, it is possible to have the cultural and social differences among the source and destination place (Georgeand Booyens, 2014). To overcome the issue, TUI Group encourages the visitors to have the experience with different social patterns. The strategies are required to accomplish the seamless experience during the stay and journey of tourist. The uniqueness of the social patterns can be used as the positive point in tourism and can be enhanced with strategies to innovate the new dimension of adventure.
Books and Journals:
Akn, M., 2015. A novel approach to model selection in tourism demand modeling. Tourism Management, 48, pp.64-72.
De Vita, G., 2014. The long-run impact of exchange rate regimes on international tourism flows. Tourism Management, 45, pp.226-233.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
Frechtling, D., 2012. Forecasting tourism demand. Routledge.
George, R. and Booyens, I., 2014, December. Township tourism demand: Tourists’ perceptions of safety and security. In Urban Forum(Vol. 25, No. 4, pp. 449-467). Springer Netherlands.
Goh, C., 2012. Exploring impact of climate on tourism demand. Annals of Tourism Research, 39(4), pp.1859-1883.
Kim, K., Uysal, M. and Sirgy, M.J., 2013. How does tourism in a community impact the quality of life of community residents?. Tourism Management, 36, pp.527-540.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Morley, C., Rosselló, J. and Santana-Gallego, M., 2014. Gravity models for tourism demand: theory and use.Annals of Tourism Research, 48, pp.1-10.
Ridderstaat, J., Oduber, M., Croes, R., Nijkamp, P. and Martens, P., 2014. Impacts of seasonal patterns of climate on recurrent fluctuations in tourism demand: Evidence from Aruba. Tourism Management, 41, pp.245-256.
Saha, S. and Yap, G., 2013. The moderation effects of political instability and terrorism on tourism development: a cross-country panel analysis. Journal of Travel Research, p.0047287513496472.
Sinclair-Maragh, G., Gursoy, D. and Vieregge, M., 2015. Residents? perceptions toward tourism development: A factor-cluster approach. Journal of Destination Marketing & Management, 4(1), pp.36-45.