Delivery in day(s): 5
The following assignment deals with the different aspects of the Travel and the Tourism industry. Travel and Tourism industry is known to be one of the significant revenue generators for the economy of the concerned country and employs about 200 million people across the world. It helps to highlight the current trends of the travel and tourism industry and the various issues related to the same. It also helps to identify the techniques and the resources which are appropriate and useful in the current trend of the Travel and tourism industry. The distinguishing features as well as the importance of the travel and tourism industry have also been discussed in detail. The unit 14 contemporary issues in Travel and Tourism assignment further deals with the factors the drive change and the ways in which the tourism sector responds to the probable or the unexpected change.
The components and the elements which are associated with the environment of the travel and tourism are facing different issues. These issues are driving changes within the business of tourism industry. Considering the UK as a tourism destination the issues can be elaborated. As a tourism destination UK has been considered as one of the popular destination among others. There are wide ranges and variations in the tourism product of UK. The destination has been branded itself as the most popular cultural and heritage tourism destination. This is directly impacting over the nation’s economic resources. Through the increased tourism base the tourism industry of UK has been contributing in the nations’ GDP and providing efficient employment opportunities to the human resources of the country. The tourism industry consists of the intangible and the tangible products which makes it one of the most volatile industries. The current changes and the trends are impacting over this industry and its business operations. By considering the current changes and the issues the development and other initiatives are taken in account by the organisation of tourism sector. As the sector has been dealing with diverse and wide range of components different strategies are needed to adapt these trends and approach the issues. Three factors and issues are discussed to illustrate the changes and the driving issues along with their impacts.
Current issues are greatly affecting the growth and the expansion criteria of the tourism socially within Middle East and North Africa. The Middle East and the North Africa has the potentialities in the tourism destination. Different political unrests, terrorism has been impacting over the tourism and the expansion of the tourism industry causing fear within the travellers’ mind in travelling here. The terrorism and the political unrest are acting as the barriers in the tourism of these countries. The protests are occurring within the Middle East and North Africa caused by the financial crisis, unemployment rates, local riots. Among the countries of Middle East and North Africa Syria, Tunisia, Egypt are facing the current distress and riots the most. (Shah, 2016)
Current terrorism attacks within the Tunisia the increasing riots on Egypt along with Syria the tourism has been facing hurdles in operating the business. Egypt and Syria are two destinations which have potentialities in the tourism, but the current political scenario has been impacted over the tourists’ number causing 80% down in the tourist arrivals. At the end of 2010 a 26 years old Tunisian vendor set himself on fire in protest of the treatment of local authorities, the outraged public ousted a dictatorship. These events are increasing the unwillingness of the tourists in visiting these areas. (Shah, 2016)
Counter terrorism activities by enforcing the anti terrorism activities and laws are increasing as the areas of Middle East as well as North Africa has been the prime threat for Terror activities. As the ongoing terrorism attack and increasing power of different terrorist groups are impacting over the conflict in Syria, the counter terrorism activities are becoming one of the main focuses of the government bodies. (state.gov, 2014). The presence of ISIL and their operational activities are challenging the security of these areas. The instability of the region is increasing the issues of the security. The Egyptian president has been considering the counter terrorism laws for stabilising the conflicts. The Algerian government concerned about the border security issues after the terrorist attack of 2014. (state.gov, 2014).
These laws and the activities are increasing the unrest of the destinations which has been the main reason behind the decreasing number of tourists in these regions.
Slide no 5, 6, 7
Through the lower cost airlines the tourism of Britain has been attracting the foreign tourists with efficient manner. The statistics of the slide 5 has been representing the dynamics of the growth of the tourist numbers who are using the transportation of cheap airlines from year 1999 to 2011. With the increase in the low cost carriers these airlines has been increasing their market share. The statistics of slide 6 has been showing the rapid growth of the low cost airlines and their market share in Europe from 4.9% to 35.3%, from 2001 to 2010. Comparing to the other regions of the world the low fare airlines of Europe has been gaining more profits. Through this growth the UK as a tourist destination has been improving the inter connection within the nation which is efficient in enhancing the domestic tourism. (Olipra, 2012).
Slide 12, 13
Through adapting the current trends and developing the tourism industry with these trends the UK tourism is having more night spends. This has been increasing the tourist numbers as well as generating more revenues per year. The tourism industry of UK has been adapting different changes within their approaches and placing the tourism products with proper measures. Through their official tourism websites the government bodies has been providing the information over the necessary step and measures in adapting the modern technologies, or booking through the online methods. ( Hashim, 2012).
Slide 16, 17, 18
The tourism of UK has been considering the boost in the currency from the foreign sports tourists. It has been reported that over 900,000 visitors have visited last year Britain with the purpose of sport live events. (dailymail.co.uk, 2012). These numbers of tourists had contributed £706 million in the economy. Considering the information provided within Visit Britain, the official website of Britain Tourism, the survey which has been conducted in 2014 as National Statistics’ International Passenger Survey is refereeing that more than 800,000 inbound visitors are visiting Britain for sports event. The ration refers that the number of sport tourist is one in every 43 visitors. The picture in slide 17 has been referring that the markets which has been generating most sports tourist who are visiting for live watching are Irish Republic, Norway, Sweden, USA and Netherlands. (VisitBritain, 2016)
Travel and tourism industry shows a common phenomenon of change. For that the business structure is needed to be dynamic for accepting the change for better values to the customers. The airlines like Iberia, British Airways, Aer Lingus and Vueling are the sister concern of the parent company that is International Airlines Group. Consolidation or deeper alliance can help the organisation to respond the change. Legacy end point carriers must enhance the options of the partnerships with the other networks like America, Asia in order to attract more passengers. This kind of alliances can allow the carriers like IAG to give better and enhanced service. Like in August 2010 Etihad had formed a partnership with Virgin Australia which allows them to fly around 45 destinations like Australia, New Zealand, Latin America, South Africa etc. Business model is needed to be changed in order to meet the requirements of the profitable passengers like the corporate and premium. Smaller next generation aircrafts can meet the departure frequency along that the added service like the lounge, loyalty services should be there for appealing the first class travellers. IAG needs to control the cost by applying the cost saving practices like giving a low rate of remuneration to the overseas crews. It is needed to build the brands strongly in the mind of the passengers in the emerging markets like China, where the tourism is developing and attracting a large number of visitors around the world. Partnership with Expedia can strengthen the brand by offering more services to the people. (Veal, 2011), The objective is to create brand equity where the personal attachment of the people to the brand IAG is needed to be considers and this can only be possible by providing superior service to the passengers. Partnership with the end-point carrier can consolidate the traffic which can allow more connections for the passengers. For instance the long haul operation has become productive for Iberia and for that focus has been given to the per unit performance mainly on the routes of the Latin America. The terror attacks have created deeper footprints in the travel and tourism market. Currently the attacks in France and Belgium influence the demand of the airlines in Europe. But with this impact the changes that has been implemented is the few seat aircrafts for meeting the small requirements. It has been observed that the decline in the passenger per unit revenue by 4.7% but the overall profit of the group has increased and that is amount to 1.8 billion pounds and that is the effect of the change they have implemented in the operation of the business. (CAPA, 2016).
The international organisation which is being taken by me is namely British airways, and Aer Lingus:
British airways: Being the largest airline carrier in the United Kingdom and presently serving the entire nation. British airways have faced few upheavals in the due course of time, which is affecting the company highly.
The main factors can be discussed as follows:
Airliner industry is a vast industry which due to its high amount of competition is experiencing a major setback so it is important that British airways and Aer Lingus should come up with certain strategies so as to make a proper successful journey for the passengers.
The selected international carrier chosen by me are name British airways and Aer Lingus , in this context I am going to justify the strategies which are being deputed by me :
The organisations that are operating in the travel and tourism sector like Myla Travel, Thomas Cook, Travel Network Group need to consider the external and the internal factors which influences the decision making process. Thus it is needed to be identified and analysed in the following way:
Events play a major role in the sector of the tourism. Events such as the Olympic, football, concerts and festivals have a huge potential to attract the people around the globe. With the help of the events the travel organisations can expect a sound business turnover. It is totally depend on the Government for hoisting the international events like the Olympic in London.
Currency plays an important role in the travel and tourism sector. The fluctuation in the currency affects the organisation. From the perspective of the depreciating factor in the currency rates, the organisation can achieve economies of scale. But when pounds are depreciated with the value of dollars then the tourist of UK naturally postponed their trips. In this case the organisations get affected in the terms of the business turnover.
Travel and tourism totally depend on the conditions of the weather. It is the weather of the concerned country which attracts the visitors around the globe. Dull weather or bad weather conditions affect the tourism and also the organisation operating in the travel and tourism badly. Or we can say that in UK in the time of summer the students are having their exams or apprenticeships which also affect the domestic tourism. (Fawcett, 2013)
Security is the major concern attached with the travel and tourism sector. Terrorist attacks in the France, Belgium create a negative impact on the mind if the domestic visitors due to the sense of security. In that situation the travel organisations face the loss due to the less number of customers. It is only in the hand of the Government to ensure the security to the visitors.
Developed communication can also help to gather more tourists for the organisations operating in the travel and tourism sector. Privatisation in the UK travel and tourism sector can attract more tourists which supports the organisation to address more customers.
Foreign policies or the laws related to the overseas visitors totally depend on the political relation. Suppose the simplification of the VISA process for the countries China, India will attract more tourist. Apart from that Government of UK also encourage the domestic tourism by simplifying the process of the permission. The body EU is also playing a important role to strengthen the relation of the EU countries while bringing the modification and integration process among the 28 member states. In this respect the organisations like Myla Travel, Thomas Cook, Travel Network Group can acquire more business turnover due to the participation of the visitors. (Evans and Campbell, 2013)
Economic condition of the nation is also one of the issues that can influence the visitors while selecting the trips. If the inflation rate is high like it was in the time of recession from the period 2009 to 2010 in UK, the visitors refused to plan their trip due to the affordability factor and thus it affects the organisation deeply in gathering the customers.
The market of travel and tourism is very dynamic and the organisations operating in this sector need to address the change and incorporate it in their strategy for attracting the customers and also to remain in the competition. The several areas that the organisations like Myla Travel, Thomas Cook, Travel Network Group need to focus are as follows:
Hence it can be concluded that the travel and tourism industry has a huge potential for growth in the near future and the tour operators must keep a track of the changing demands and the preferences of the tourist or the customers in order to sustain in the market for long. This strategy will also help the tour operators to survive in the market for long. Proper market research as well as marketing strategy such the marketing mix will help to create awareness regarding the tour packages as well as the other services provided by the tour operators among the target customers.
CAPA (2016). IAG tells Iberia to prepare for a changing Europe- Latin America competitive setting. [Online]. Available at: http://centreforaviation.com/analysis/iag-tells-iberia-to-prepare-for-a-changing-europe-latin-america-competitive-setting-81071 Accessed on 17/6/16
Conrady., R and Buck., M. (2011). Trends and Issues in Global Tourism 2011. Springer Publishing.
dailymail.co.uk .(2012). Sport Provides a boost for UK Tourist industry. [online available at:]. http://www.dailymail.co.uk/travel/article-2221300/Sport-provides-boost-UK-tourist-industry-900-000-football-fans-flock
Britain.html . (assessed on 17/6/16)
Evans., N and Campbell., D. (2013). Strategic management for Travel and Tourism. Routledge
Fawcett, L (2013). International Relations of the Middle East. OUP Oxford.
gov.uk. (2011). Government Tourism Policy. Online available https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/78416/Government2_Tourism_Policy_2011.pdf, Accessed on 17/6/16
Grundy, M. and Moxon, R., (2013). The effectiveness of airline crisis management on brand protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-61.
Hashim, R. (2012). Current Issues in Hospitality and tourism. CRC Press.
Molz, J.G., (2012). Travel connections: Tourism, technology, and togetherness in a mobile world. Routledge.
Olipra, L. (2012). The impact of low cost carriers on tourism development in less famous destinations.[online available at:] http://lifeasabutterfly.com/wp-content/uploads/2015/07/766-1042-1-PB-1.pdf . (assessed on 17/6/16)