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Diploma in Travel and Tourism
Unit Number and Title
Unit 6 Contemporary Issue in Travel and Tourism
In this Unit 6 Contemporary Issue in Travel and Tourism Assignment Sample several aspects of the travel and tourism is highlighted, Tourism plays a major role to boost the economy of the country. The contribution arising from the travel and tourism sector are divided in three categories which are induced impact, direct impact and indirect impact. The valuation of the contribution is around 7.6 trillion US dollars from the period of 2014 to 2015. Direct impact contributes around 2.36 trillion US dollars which involve the accommodation, entertainment, attractions, transportation, shopping etc. Middle East and North Africa are often known as MENA which have a huge potential in the tourism sector due to the popular and beautiful attractions. But the events like the political unrest, terrorist activities are influencing the travel and tourism sector heavily towards downward. The current trends and focusing on the niche tourism also play an important role. Strategies of the International Airlines Group will be shown based on the travel and tourism business. Lastly the tour operator Thomas Cook will be discussed based on the given case study.
One of the largest sectors of the countries is travel and tourism which is attractive and boost the economy significantly. Each and every country across the world is giving their focus to the travel and tourism industry for increasing the tourist expanses in the concerned country. The contribution arising from the travel and tourism sector are divided in three categories which are induced impact, direct impact and indirect impact. The valuation of the contribution is around 7.6 trillion US dollars from the period of 2014 to 2015. Direct impact contributes around 2.36 trillion US dollars which involve the accommodation, entertainment, attractions, transportation, shopping etc. Overall this sector has fetched around 1,159 bn dollars. (Statista, 2016). The selected destination is Sri Lanka which is also known to be the Emerald Island of Asia. The major attraction in this country is the wildlife parks, beaches, beautiful sceneries etc. Golden Temple of Dambulla in Sri Lanka is one of the heritage spots very popular across the globe. The visits in Sri Lanka are increasing due to the positive approach by the Government. Sri Lanka Tourism Development Authority is responsible to look after the tourism issues in Sri Lanka. The current issues that are driving the changes in the travel and tourism sector are as follows:
Middle East and North Africa are often known as MENA which have a huge potential in the tourism sector due to the popular and beautiful attractions. But the events like the political unrest, terrorist activities are influencing the travel and tourism sector heavily towards downward. Political instability in Lebanon gives rise to the terrorism activities or terrorist activities after the Persian Gulf War have diminished the travel and tourism activities in those areas. On the other side media who is covering the every single incidence which have created a solid impression on the mind of the travellers across the globe (Batrawi, 2014). Syria which covers several destinations for the travel and tourism are observing a declining trend due to the terrorist activities of the ISIS. Peoples are killed brutally in that place and also they have attacked Paris and Belgium very recently which took innocent life. Egypt is a place where the mixture of the ancient beauty covering the pyramids, mountains and also the amazing scenery covering the place. But the political unrest and terrorist activities dropped the tourist visit around 80% which very much remarkable. The terrorist groups Ansar Bayt Al-Maqdis (ABM) and Ajnad Misr are attacking the Government of Egypt creating an environment of violence. In Tunisia we found a man fired himself in front of the policeman and for this incident political unrest took a severe place in the country which threatens the tourist during that time. Overall we can observe the violence is spreading in those countries of MENA which are declining the tourism industry. (BBC, 2015).
Implementation of 1540 by all the Middle East states which aims to prevent the proliferation of the nuclear, chemical and biological weapons. Illicit trafficking is given focus in this 1540 resolution. Abdul Fattah Al Sisi, president of Egypt has taken measures for the counter tourism activities by amending the legislation for the Jihadist groups. Funding the terrorist will be penalized and have to face the imprisonment up to 25 years. Cyber crimes are also given preference where imprisonment is around 7 years with high fines. At international level, different measures are also adopted to establish peace and to counter the terrorism. United Nations in their security council established the Counter-Terrorism Committee (CTC) for combating with the terrorist attacks and to form a member states jointly to fight with the terrorism. (UN, 2016).
The Travel and Tourism Industry deals with one constant phenomenon and that is change. Businesses have to be prepared to deal with these changes on a frequent basis to stand in good shape. Airlines like Iberia, British Airways, Aer Lingus and Vueling belong to the much renowned parent company of the International marketing Group. Two primary aspects of response to change have been highlighted here. Iberia’s tactics to deal with the changing Europe Latin American competitive setting and the revised growth plan to be determined by IAG for the affected demand of British Airways post the terrorism activities in Brussels.
Iberia for quite some time now has been the leading carrier between Europe and Latin America. But due to the gradual emergence of other competitors, Iberia needed to resort to an assessment period. The largest offer on Latin American flights is provided by Iberia. However, Air France is rapidly closing in as more than a considerable competitor. An instance of relevance can be of the week of August 2012 (20th-26th) Iberia had scheduled 172 flights through the week for operations between Spain and Latin America aiming to cover a total of around 17 destinations. Air France was not far behind at all with 169 flights covering 16 destinations. Generally, the long haul operations turn out to be quite productive for Iberia but in 2012, the results and the competitive market made it insufficient for them to justify any long term plan. In order to counter this change, Iberia aimed at considerably improving their per unit revenue performance especially on the Latin American Routes as it wanted to retain the competitive advantage by a considerable margin. The Chie of IAG, Mr Willie Walsh confirmed that the best revenue management steps were being incorporated and expectedly the airline soon saw a hike in the per unit revenue performance catering to Latin American routes. (CAPA, 2012)
One of the major aspects that can affect the travel and tourism sector of any country is the dreaded acts of terrorism. One of the events that recently shook Europe and the rest of the world were the terrorist attacks in Brussels which was consequential for instant low demand for aircrafts especially in Europe. However Mr Walsh stated that they were not willing to wait for the impacts of the terror attacks as earlier they had anticipated similar outcomes during the Paris attacks which held them in good stead now. Complimenting the falling demand was important and hence BA started offering fewer seats per aircraft. IAG still surpassed the estimates of profit provided by analysts (145 million) as BA acquired an operating profit of 155 million pounds in the first quarter as a result of effective cost cutting and low fuel costs. Although the passenger unit revenue declined by 4.7%, the overall profit registered in 2015 was an increase by 64% that amounted to 1.8 billion pounds. This is a prime example of how IAG reacted to Terrorism and change. (BBC, 2016)
One of the primary carriers between the destinations of Europe and Latin America is Iberia and has been for quite some time. However, the inception of a few competitors has ensured that the airline enters into some sort of an assessment period. Air France stands as one of the leading competitors to Iberia on this route. The assessment period is necessary as other low cost airlines and fast speed trains also made the list of relevant competitors on this route. Prevalence of labour disputes in Spain along with their falling economy added to the concerns of Iberia as all of these factors along with the competitors posed potential threat to the airline in generating effective revenue as there was a tendency prevailing for the falling demand of the aircraft which could lead to an annual operating loss. The strategies that can be adopted to counter this situation are:
Analysis should be done on the prevailing and anticipated market trends keeping the consumer base and the airline market in mind. . (Majorca Daily Bulletin, 2013). British Airways has enjoyed competitive advantage in the long haul sector operating out of the UK for a long time and hence should look to consolidate its position so that it keeps intact its competitive power. It is a well known fact that BA provides top notch services especially in the long haul operations, so there is no immediate need of changing anything as such as the present course of operations has worked for them. However, strategies can be adopted to help the passengers on the ground as BA flight operations have outgrown the Heathrow Airport Terminal 5. For passenger convenience, Terminal 5 has been made available for passengers. BA shifted eight long haul services from terminal 5 to terminal 3 in London Heathrow. The following airline flights were shifter to terminal 3 as on 2015. They include Accra, Cape Town, Denver, Las Vegas, Miami, Nairobi, Phoenix and Vancouver. This differentiated them from their competitors as far as ground operations are concerned and this will hold BA in good stead even if major competitor’s crop up for the long haul market as their ground operations facility will be difficult to match. (Businesstraveller, 2015)
The International Airlines Businesses taken into consideration here is that of Iberia and British Airways.
Companies like Myla Travel, Thomas Cook and The Travel Network group should look to consistently consider all the factors that affect the travel and tourism sector of UK and of any country actually. These factors can be distinguished as internal and external factors. The primary external factors include:
The Internal factors include the following:
Myla Travel, Thomas Cook and The Travel Network Group have to remain open to change if they are to entertain thoughts of growing. Adverse consequences can be a result if these companies do not respond pertinently to change. The following factors are to be considered, the failure of which will lead to adverse consequences for these tourism businesses.
This Unit 6 Contemporary Issue in Travel and Tourism Assignment Sample provides an effective insight on the various ways that countries across the globe react and respond to change so that the overall status of the travel and tourism sector of the country remains intact. Different countries in the world have a distinct set of reasons that drive change in that particular region and hence the means implemented in order to counter the change in all these countries is different. The economy of many countries is solely dependent on the travel and tourism sector. One example of that can be the Emerald Island of the nation of ‘Sri Lanka’. On the other hand the main complexities in countries like the UK is the process of dealing with the country’s recession and travelling to such places often involves an incredibly high cost and thus these are the factors that need to be mended. This provides a contrast of roles that Travel and Tourism plays in countries like Sri Lanka and the UK. We get a detailed analysis of the development and justification of the various strategies implemented by the International Airlines Group to respond to the various aspects of business factors of change pertaining to British Airways, Aer Lingus, Iberia and Vueling. Finally we get insight on the impacts of issues and trends that drive change in the tourism sector with reference to organisations like Myla Travels, Thomas Cook and The Travel Network Group. A brief analysis is also provided on the various consequences that may arise due to the failure of administering and implementing ways and methods that initiate an effective response to change on the part of these travel and tourism organisations. These are the various avenues covered by this effective study.
Batrawi., A (2014). Saudi Arabia’s new anti-terrorism law to criminalise any form of dissent including demanding political reform and exposing corruption. [Online]. Available at: http://www.independent.co.uk/news/world/middle-east/saudi-arabia-s-new-anti-terrorism-law-to-criminalise-any-form-of-dissent-including-demanding-9105249.html, Accessed as on 8.6.16
BBC (2016), BA owner IAG slows growth plans after Brussels attacks, [Online], Available at: http://www.bbc.com/news/business-36167287, Accessed on: 8th June, 2016
BBC. (2015). Egypt’s Al Sisi imposes strict anti-terrorism laws. [Online]. Available at: http://www.bbc.com/news/world-middle-east-33955894, Accessed as on 8.6.16.
Businesstraveller, (2015), BA outgrows Heathrow T5, [Online], Available at: http://www.businesstraveller.com/news/102101/ba-outgrows-heathrow-t5, Accessed on: 8th June, 2016.
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: 8th June, 2016.
Conrady., R and Buck., M. (2011). Trends and Issues in Global Tourism 2011. Springer Publishing.
Fawcett, L (2013). International Relations of the Middle East. OUP Oxford.
Hannam, K., & Knox, D. (2010). Understanding Tourism. Sage Publications
Kelegama., S. (2014). Key challenges facing the tourism sector in Sri Lanka. [Online] Available: http://www.ft.lk/2014/06/27/key-challenges-facing-the-tourism-sector-in-sri-lanka/ , Accessed as on 8.6.16
Majorca Daily Bulletin, (2013). IAG to slash Iberia work force by 3800 as it battles competition. [Online]. Available at: http://majorcadailybulletin.com/news/local/2013/03/01/33779/iag-slash-iberia-work-force-800-battles-competition.html, Accessed on: 8th June, 2016.
Page, S (2012), Tourism Management, Routledge.
Punzel, T (2013), Risks and Decision Making, GRIN Verlag.
Statista. (2016). Statistics and facts on the global tourism industry.[Online] Available: http://www.statista.com/topics/962/global-tourism/,Accessed as on 8.6.16
In this Unit 6 Contemporary Issue in Travel and Tourism Assignment Sample several aspects of the travel and tourism is highlighted, Tourism plays a major role to boost the economy of the country, Locus Assignment Help UK posting units solutions so scholars can explore assignment help and get review the quality of our work.