Unit 1 Historical Development in TT Sector Assignment

Unit 1 Historical Development in TT Sector Assignment

Introduction

The historical development in TT sector has been evaluated with efficient method. The history of travel and tourism has been identified through the explanation of the historical development in the travel and tourism sector and the structure of this industry. The influence of the local and national governments and agencies over the travel and tourism industry is discussed by analysing the function of the government and its sponsored bodies and the international agencies within the travel and tourism. The economic policy and the political changes are also discussed for evaluating the influences on the travel and tourism sector. The effects of supply and demand within the travel and tourism have been analysed. The positive and negative impacts of tourism along with the strategies to reduce the negative impacts are discussed.

Task 1

1.1 Explain key historical developments in the travel and tourism sector supported by a timeline chart of major developments over the period.

In ancient time the rich people of the Rome spent their summer time by making tour in different coastal areas. In the medieval age the tour to the pilgrimage had came into existence. This had made the tourism business’s presence among the travellers. People of the medium income and rich background started to take interests in travelling to different countries and places. This trend leads to the rise of the accommodation and inns for place to sleep and eat. Later in the 18th century, the health and culture played key role in the growth of the tourism business. People capable or having sufficient income, were arranging the travel and tourism packages for them. In later centuries the English people travelled for educational purpose to different countries with the help of travel and tourism business. In the 19th century the industry has been gaining the popularity among the mass people. (Lyons, Hanley, Wearing, and Neil, 2012) The increased income level of the people in society was increasing their spending desires. In this similar time the commercial aircrafts came into existence. The growth in the railway and charters were increasing the number of tourists. In 20th century the developments in the resorts, hotels, transport are attracting the travellers to popular destinations.

The historical development in the travel and tourism sector:

The time line chart of travel and tourism industry developments:

1.2 Explain the structure of the travel and tourism sector. Create a diagram to show the structure of the travel and tourism sector followed by an explanation.

Within the structure of the travel and tourism there are different sectors and divisions:

Travel planning: The tour operators and the tour agencies are mainly approached for the tour planning in current days. The tourism industry has been operated by these tour operators. The tour operators develop the tourism products along with accommodation and other facilities to the travellers. (Evans, Stonehouse, and Campbell, 2012)

Tourism sites: The attractions within the destination in forms with artificial or natural forms. Different parks, historical buildings are created by the government or travel industry to attract more travellers. The wildlife, forest etc and other nature features are the natural resources of the destinations.

Transport: Transport plays a large part in attracting the tourists to the destination. The destinations availability depends over the transport system of that place. Developments in the rail, airlines, road transport are making the destinations available and easier to reach for travellers.

Accommodation: Accommodation is the key feature within the travel and tourism industry. Accommodation along with food and beverages are searched by the travellers. Quality services, facilities, discounts etc are desired within the accommodation. Hotels, lodges, resorts are the different forms of accommodation. (Evans, Stonehouse, and Campbell, 2012)

Travel and tourism: Apart from these the travel and tourism sector is also divided within three distinct groups:

Task 2

2.3- Draft an article for publication in Travel and tourism magazine discussing the implications of political change on the travel and tourism sector in different countries

Within a particular country the success of the travel and tourism has been dependent over the political environment and the factors within it. The political stability within a country along with the governmental policies and other factors play a huge role in the success of the tourism business. (Hudson, and Thal, 2013) The decision of the tourists in visiting any country depends over the political situation within that country. Instability in the political factors leads to the unwillingness of the tourist to visit that country. Apart from the political instability the terrorism attack or war or strikes within the local groups can impact over the tourism. Along with the terrorism activities the anti terrorism activities are also impactful over the tourism success within that country. The anti terrorism and terrorism activities are raising the concern over the tourism activities and safety of the travellers within that country. Within the political issues the instability of the political environment also impacting over the image of the destination by increasing the negative image and publicity. (Connell, 2013) Reading this the inflow of the tourists within that destination will be significantly reduced. Before making any travel decision or buying the tourism package the travellers examines the political environment of the destination. The decision making processes of the travellers impacted by the political environment of the destination. (Hudson, and Thal, 2013)

Considering UK the high stability within the destination has been considered as the major factor for the success of tourism as well as the leading position of the destination in the tourism business. The political stability on UK is the underlying and significant factors for the increasing tourists’ inflow within the destination. Fewer activities of terrorism and anti terrorism are raising the positive reputation of UK. (Connell, 2013)

As the Chinese tourism has been contributing in large number to the UK tourism, £500m annually, the UK government has been considering the new visitors visas for Chinese tourists. By analysing the Chinese tourism market as the fastest growing one, the UK government has been strengthening the Chinese and UK relationship. UK government has also encouraging the tourism like TUI group to maximise the Chinese spending power by making the Chinese tourists attracted to the UK destination.

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Task 3

3.1 Explain factors affecting tourism demand

The tourism demand has been referred to the total number of persons who are wishing to travel or tend to use the facilities and the services provided by the tourism business, which are placed away from their residence or work. There are different factors within the business environment of tourism which are affecting the tourism demand. (Connell, 2013)

Demographics: in current scenario the households and the families are changing towards diversity. On the other hand the migration is impacting over the structure of the society and changing the shape of it. The world population has been growing in a fast measure. These changes influences on the tourists types, their origins, their travelling nature and destination choice, types of accommodation they are preferring, the activities preferred by the tourists. There are three major areas in the demographics which are impacting over the tourism demand such as:

• Population growth and aging
• Migration
• Household composition and travel parties

The population growth and the longevity have been increased within the demographics factors. This has been impacting the demand as well as business of tourism. Volunteer tourism and global citizenship as well as increase of generation Y has been taken in account within the demographics tourism. Aging population has been changing the family structures. This is impacting in the tourism product demand. (Connell, 2013)

Emerging economics:emerging economical situation has been impacting on the tourists buying behaviours. Cost of the products which are attached with the tourism and the cost of travel have been impacting over the demand of the tourism product. Tourism organisations have been providing competitive prices to gain the attractions of the tourists.

Technological factors: the current tourism business has been impacted with the technological factors. The technological evolution has been influencing the tourism business as well as the demands of the products. Increasing internet phenomenon has been influencing the presence in the internet and approaching the customers through the internet communicational methods. Mobile technology has been opening the door for the business in tourism. Through this technological help the tourism business has been communicating with the tourists with more personal measures. Apart from this the increasing use of mobile apps are also helpful as the customers are having accurate information through these apps and the business is ensuring to maintaining their customer services through these apps. (Hudson, and Thal, 2013)

Changing work pattern and work force: the changes within the work pattern is influenced by the current changes in the business activities such as changes in the sales activities, online approaches to the customers, etc has been changing the working pattern and work force diversity.

Macro economic factors:changes in the exchanging rates, inflation, interest rates, level of disposal income, retirements have been the concern the within the tourism demands. These factors influence the tourists’ behaviours in buying the travel packages.  (Evans, Stonehouse, and Campbell, 2012)

3.2 Explain how supply has changed at TUI Group to meet the effects of demand

The supply of all or different assets goods and services within the tourism which can be enjoyed by the tourists or can be brought by the travellers are referred as the supply of the tourism products. There are different components within the supply:

• Infrastructure
• Super infrastructure
• Attractions
• Marketing management and image of destinations and related tourism products

The tourism supply has consists of composite of different products such as accommodation, transport, natural resources, different attractions within the destinations, entertainment, facilities and quality of services, tour operators and agencies etc. (Ghimire, 2013)

Components of tourism products: 

Creating a balance between the demand and the supply of the tourism products is important for tourism industry. The tourism industry and the stallholders within it have been giving continuous efforts in maintaining the balance. (Murphy, 2013) The supply of the tourism products has been changed in accordance with the changes in the demand of the tourism products. In order to meet the demands in the tourism the changes in the supply at TUI group:

Accommodation:the changes within the demands impacts over the accommodation. Higher number of facilities of accommodation has been developed in the destinations. The types of accommodations are also been changed in accordance with the emerging changes in the family structure, increasing aging issues in the demands.

Tour operators:with the increasing generation Y and the technological factors impacting over the demands in the tourism and the tour operators. The increasing technological impacts are forcing the tour operators to change their ways to approach the travellers as well as marketing activities. The tour operators like TUI group have been increasing their presence in the internet in this respect. The tour operators with different measures are helping to manage the demands in the industry. (Murphy, 2013)

Services: the services have the prime importance within the travel and tourism supply. The quality of the services is maintained by TUI group in order to maintain the supply. (Lyons, Hanley, Wearing, and Neil, 2012)

Task 4

4.1 Evaluate the main positive and negative economic, environmental and social impacts of tourism with reference to TUI Group businesses.

Factors like economical, social and environmental have both positive and negative impacts over the tourism industry and business. As the tourism has been considered as the fastest growing industry in current business environment it has been facing with several limitations as well as benefits.

Positive impacts:

• Economic:within the economic factors higher income, direct and indirect income, contribution of the gross national products, economic development within the destinations, inflow within the foreign currency and the revenue generation of the government etc. are the important positive economical factors impacting the tourism. The growth of the other sectors apart from the tourism within the economy is also helpful in the economical stability and maintaining the demand in the tourism. (Sigala, Christou, and Gretzel, 2012)
• Environmental: the environmental factors are effective for the success of any tourism business or sector. The positive impacts of the environmental factors are the conservation of the natural resources and also enhancement of the natural attractions within the destinations, conservations of the historical and cultural sites, the improvements of the infrastructures of the business environment etc. The TUI group has been making positive steps in increasing the awareness of the environmental impacts among the tourists and helping the host government to increase the environmental awareness among the host communities. (Lyons, Hanley, Wearing, and Neil, 2012)
• Social:within the social factors the culture and the heritage of the local community, cross cultural exchange, education etc are imposing positive impacts on tourism. Conservation of the cultural values, rehabilitation of the cultural and historical monuments, etc are also impacting positively on the tourism business.

Negative impacts:

• Economic: high unemployment rates, higher taxation rates, leakage, inflation, overdependence on the economy, higher cost of living, demand for the public services etc are the negative factors which are impacting over the tourism business.
• Environmental: the increasing issues of globalising, pollution, overuse of the wildlife and environmental resources, damages to the environmental representations like wildlife, rainforests etc, increasing waste disposal have been turning into destructive measures for the environmental resources. Negative impacts over the flora and fauna, landscape features, damages of the scarce resources etc. are also impacting threats to the tourism sector.  (Walker and Walker, 2012)
• Social: among the negative impacts of the social factors include the loss of social amenity of host country, commercialisation of host culture such as the songs, dance forms, traditional events, loss of the local artefacts or historical features within the artefacts, local traditional skills,  loss of authenticity in all forms, increasing crimes among the locals etc.

Through the activities of tourism the host country and its people can have both positive as well as negative impacts. The factors within the economy, social and environment have been significant for both limitations and growth of tourism industry. (Sigala, Christou, and Gretzel, 2012)

4.2 Explain strategies that can be used to minimise the negative impacts while maximising the positive impacts TUI Group businesses

For dealing with the negative impacts or consequences of the factors within social, environmental and economic dimensions the tourism group has to frame proper strategies. By considering particular countries like Spain, Greece, Turkey, Thailand, and Egypt the strategies should be developed. (Hjalager, 2010) Through proper strategies the negative impacts over the host country and tourism can be minimised. The local standards of lives also needed to be considered while implementing the strategies. The local people should be included within the policy formed over economy in order to provide benefits to them. Business strategy of diversification can be used by TUI Group while approaching different destinations. This strategy will help to reduce the over dependency on the other sectors. As a result with fall of one particular industry or sector the while economic structure cannot be impacted.

The negative impacts of environment can be reduced through development of major policies regarding environmental conflicts. Through proper policy implementations the conflicts ion access of the natural resources and the decay of the environmental resources can be minimised. Regarding this a committee can be developed for maintaining the policy. The committee and the policy should be developed in order to ensure the minimum impacts of the travel and tourism activities over the natural resources. (Evans, Stonehouse, and Campbell, 2012) The tourism group should cooperate with the environmental agencies for better development of the strategies.

The cultural negative impacts can be minimised by maintaining the host culture within the tourism activities. By imposing minimum impacts of the tourism activities on the host community and their cultural and social authenticity the tourism group can impact on the host culture with positive measures. The host country communities should be involved within the tourism activities while keeping their own skills and cultural events authentic. The management of the use of technological equipments used in the tourism communication and operations are also needed be considered regarding this. The tourism group should ensure least possible impact over the tourism. (Evans, Stonehouse, and Campbell, 2012)

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Conclusion

Through understanding of the travel and tourism sectors and the relation of this industry with the historical developments are associated with the travel and tourism sector the travel and tourism organisation can improve the current strategies. The government and the locals are involved with the travel and tourism business in a greater manner. The economical, environmental and social factors are influenced through the travel and tourism activities. The travel and tourism growth are imposing in both positive and negative manner over these factors. Demand and supply are balanced by the shareholders within the travel and tourism in order to maintain the growth of the industry.

Reference

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