The Travel and Tourism Sector

Table of Contents
Introduction.................................................................................................................. 2

Task 1.......................................................................................................................... 2

1.1: Key historical development in the travel and tourism sector...........................2

1.2: The structure of the travel and tourism sector.................................................4

Task 2.......................................................................................................................... 8

2.1: Analyzing the function of government, government-sponsored bodies and

international agencies in the travel and tourism sector..........................................8

2.2: The influences of the local and national economic policy on the success of
travel and tourism sector...................................................................................... 11

2.3: The implications of political change on the travel and tourism sector in
different countries................................................................................................. 14

Task 3........................................................................................................................ 15

3.1: Explaining the factors affecting tourism demand...........................................15

3.2: Explaining how TUI group has changed its supply to meet the effects of
demand................................................................................................................. 16

Task 4........................................................................................................................ 17

4.1: Evaluating the main positive and negative economic, environmental and
social impacts of tourism with reference to TUI group..........................................17

4.2: The strategies that can be used to minimize the negative impacts while
maximizing the positive impacts...........................................................................18

Conclusion.................................................................................................................. 18

References.................................................................................................................. 18
Introduction
One of the profitable and sustainable businesses in the present world is the travel and tourism
business. Many countries largely depend on its tourism sector for the income and economic
growth of the country. For example, the travel and tourism sector of Thailand has around 40%
contribution to the GDP of its economy. Like the other countries, the UK government has
recently taken steps to flourish its tourism sector by providing different facilities to the tourists.
For example, the authority of UK has taken steps to induce the tourists of china in London
(Atherton and Atherton, 2011). The validity of visa of chinas tourists has been increased from
six months to two years. Moreover, the cost has been reduced by 11% this year for the chinas
tourists. In the contrary, the tourists of china have contributed 500 million to the economy of
UK. Again, the number of chinas tourists have been increasing day by day. So, it is assumed that
the London will be one of the most visited cities in the world.

Task 1
1.1: Key historical development in the travel and tourism sector

TUI group is one of the leading tour operators in the world. This is a multinational company
headquartered in Hanover, Germany. The company was listed in London stock exchange as well
as Frankfurt stock exchange. Again, the company has a broad history of portfolio. The broad
portfolio of TUI group includes tour operators, travel agencies, and several airlines companies
with more than 150 aircrafts, several hotels, online portals and cruise liners around the tourist
destination all over the world (Azariah, n.d.). Moreover, the company serves more than 30
million tourists in more than 180 regions in the world. However, the company is searching for
the tour guide oficers, project oficers and executive oficers. And I have been shortlisted as a
project oficer of the company. Hence, I will have to face interview for the position of project
oficer. So, I need to shows my skill and quality in the travel and tourism sector, which are given
below.
 Historical development of travel and tourism sector
Historical Current
development development
Early stage Technology
Egyptian era Infrastructure
Assyrians and Time
Persians
Greek and Romans Security
European era Independence of
movement
Pilgrimage Money
Grand tour
French revolution
Industrial revolution

Historical development

The history of travel and tourism sector is much enriched. The present condition of the travel and
tourism sector is not a work of some days, rather it has taken centuries to come to the present
condition. However, in the ancient period, people was used to stay in a single place unless they
are compelled by the nature or for the need of food. Later on, they gradually started to develop
and find the routes for trade purpose. And this was true for both the land and water routes. In the
Egyptian era, the tourism began to flourish for the shelter and accommodation of government
oficials in different parts of the country or world. In this time, several rest houses were built.
After that the Assyrians and Persians time began, in that period the development of route was
aimed to military purpose (Azariah, n.d.). However, this has contributed the tourism sector.
Different types of vehicles including four wheeled cart was developed in Assyrians and Persians
era. Moreover, the tourism sector was developed during the Greek and Romans time for the
purpose of visiting cities specifically Athens, and for the purposes of sports as well as religious
purpose.

By the way, the tourism business was developing in the European era for pilgrimages purpose,
where the people went to visit the holy places to repent for their turpitudes and one of the
mentionable places is Jerusalem which was considered as the holy place for all religions. Later
on, in the sixteenth century, the Grand tour was developed and remained in existence till the
eighteenth century. In that time, there was a custom that no person gather true knowledge
without passing some time for traveling around the Europe with a tutor (Atherton and Atherton,
2011). And this concept was also developed in France where people were taught drawing,
dancing, and riding. But in the people were taught how to make different sculptures and art as
well as music. And this concept of grand tour came to an end by the French revolution and
Napoleonic war. After that the Victorian age began and the tourism sector was developing by
Industrial revolution. Finally, after the Second World War, the travel and tourism sector was top
to the development.

Current development

However, the current development of travel and tourism sector has been influenced by the
income and the profession of the people as well as the technological development around the
world. Different technological inventions and innovation, for example, the invention of airplane
has contributed to the tourism sector (Beeton, 2005). Again, the infrastructural development
has contributed to the development of tourism industry. Moreover, the security of the destination
places and income of the people are also contributors to tourism development. Finally, the
availability of money on the hand of people, independence of movement and available time of
people also contributed the current development of travel and tourism sector. So, it is assumed
that the present trend will continue and the sector will be flourishing in the future.

1.2: The structure of the travel and tourism sector

The structure of travel and tourism sector

 Accommodat
The transportation of
Tour ion of travel
tourism sector includes
operator of sector includes
airlines, cruise liners and
tourism hotels, guests
rail travel.
sector accommodatio
includes the n, holiday
transport, parks,
hotel, food campsites,
self-catering
and youth

The tourist
attractions
include the
The travel
land
agents
attraction, sea
provide
side attraction Ancillary services
guidance, car
and other of tourism include
service, cruise
man made different supportive
service,
attractions service, for
advice and
including example, guest
informtion
building and house and rest
 Figure: Structure of travel and tourism sector

From the above leaflet and figure, we can say that the travel and tourism sector includes the
transportation, tour operator, travel agent, accommodation, attractions and ancillary services
(Holloway and Humphreys, 2016). These components are given below.

Transportations

The transportation system is an important part of the travel and tourism sector. The transportation
services include air-travel, cruise liners, rail travel and many other car travels. The TUI group
ofers different transportation systems based on the timing, location, cost and ability of the
tourists. Moreover, different supportive component are also included in these transportation
systems (Miller, 2001).

Tour operators

Tour operator is the head of the TUI group. Because, tour operators integrate all the components
of the whole tour package. So, the tour operators have to maintain relationship with the transport
agency, accommodation agency, ancillary service providers and other restaurants authorities.
Moreover, tour operator makes timely and regular contract with these parties.

Travel agents

Again, the services of the travel agent are crucial for a comfortable and successful tour. The
agency services include the advice and information, ticket booking, guidance and training to the
tourists. Moreover, travel agents also provide car, cruise, airplane, insurance, hotel and many
other supportive facilities (Miller, 2001).

Attractions

The term attraction means the beauty or significance of the places that the people come to notice
and realize. A reliable survey shows that there are around 6400 attractive sites in the UK. The
attractive sites of UK can be put into the following categories (Puri and Chand, 2009).

Natural attractions- the natural attraction of UK includes the land sight, sea sight and
other natural beauty.
Man-made attractions- the man-made attractions include different building,
construction, park, museum and other structures.

Accommodations

The term accommodation refers to the housing, sleeping and other staying facilities. The
accommodation system of travel and tourism sector includes the followings (Holloway and
Humphreys, 2016).

Hotels and restaurant

Campus
Youth hostels
Swimming pool and gymnasium
Holidays park and campsites
Self-catering
And other guest accommodations
Again, the above mentioned accommodation systems have different rankings based on the cost
and facilities of the systems. For example, five star hotel and seven star hotel. The facilities of
seven star hotel are more than the five star hotel.

Ancillary services

The above mentioned elements are the main components of a tour package. But there are some
other related and supportive components which is known as ancillary service (Miller, 2001). The
ancillary services include the short term travelling, party spots, different riding facilities, wastage
keeping facilities and many other related facilities.

Task 2
2.1: Analyzing the function of government, government-
sponsored bodies and international agencies in the travel and
tourism sector

TUI group is one of the leading tour operators in the world. Recently, I have been appointed as a
project oficer of the company. Now, I have been assigned with the duty of attending in a
conference and discussing the functions of government, government-sponsored bodies and
international agency in travel and tourism sector (Leslie and Russell, 2006). Again, I will have to
discuss how the local and national economic policy can influence the success of travel and
tourism sector.
The TUI group is considering to expand its business in china. So, the company must understand
how government and other related parties can influence the travel and tourism sector. Both the
government of UK and china can influence the business of TUI group in china. So, the
government of a country can influence the tourism business positively or negatively (Leslie and
Russell, 2006). Again, their influence may be direct or indirect. For example, the government of
UK has taken step to flourish the tourism sector of the country and is trying to encourage the
visitors from china by minimizing the cost of travelling and extending the validity of visa in UK.
So, this can be said as positive influence on travel and tourism sector.
On the other hand, the government can put different restrictions on the tourists from the china,
which can be said as negative influence on the tourism sector. By the same way, the government
of china can also influence travel and tourism sector (Oelkers, 2007).

Moreover, the number of visitors from the china has been increasing day by day. Because, the
national and local government of UK have cut cost for the tourists from china by 11% for this
year. Which will induce the tourists from the china (Puri and Chand, 2009). Again, the
government has facilitated the travel and tourism sector by providing different modern car,
accommodation, transportation and many other supporting services for the tourists.

Beside the government, other government-sponsored bodies including local, national and
international agencies may influence the travel and tourism business of a company and country.
For example, the local agency or authority in which the tourist spot is situated can put different
limitations, rules and regulation on the access of the tourist to the spot, which will influence the
tourism business (Leslie and Russell, 2006). Moreover, united nation, world tourism organization
and international civil aviation organization can put positive and or negative impact on the
tourism business.

So, the policies and actions of the above mentioned government, government-sponsored bodies
and international agencies may influence the travel and tourism business positively or natively in
a direct or indirect way (Oelkers, 2007).

2.2: The influences of the local and national economic policy on

the success of travel and tourism sector

All of the business organizations run their businesses to earn profit. But the profitability and the
survival of these organizations depend on the economic and other financial policies of the
government. Since, the tourism is also a business sector, so it success will also be influenced by
the economic policies of both the local and national government (Shaw and Williams, 2004). If
the government takes expansionary economic policy then it will help the business. On the other
hand, the contractionary economic policy of government will hinder the progress of tourism
business.

For example, if the local government takes policies to subsidize the tourism business and reduces
the restrictions on tourists from different countries especially from china then it will help the
tourism business to be flourished and vice versa. This scenario can be seen in case of the UK
(Tourism business & employment survey 2006, 2007). The policy of the government to increase
the validity of visa from six months to two years and to reduce the cost by 11% have increased
the number of travelers from china.
In the contrary, if the government of china takes policy in which it will impose more cost on the
travelers to UK then it will reduce the number of outgoing travelers to UK. Moreover,
government intention to develop a particular sector will influence the business success (Shaw
and Williams, 2004). For example, the government may exempt the travel and tourism business
from paying tax.
However, the economic policy of the local and national government will influence the travel and
tourism business by changing the interest rate, exchange rate, inflation rate, tax rate and
unemployment rate. Through the above factors, the government can influence the success of
travel and tourism sector. Finally, the government economic policy to increase the safety,
develop the transportation facility and infrastructure of tourism sector will influence the success
of its business.

2.3: The implications of political change on the travel and tourism

sector in different countries

The success, survival, existence and profitability of business organizations are influenced by the
legal, economic, political, technological and other environmental factors. Political factor is one
of the most important macro environmental factors of a business that can influence the other
macro factors of the company. The political change and movement can facilitate or hamper a
business organization. By the same way, the political change of UK can and will influence the
travel and tourism sector of the country (Shaw and Williams, 2004).

For example, if the change of power from one party to another party increase the stability of the
country and safety of the travelers then it will help the tourism sector of the country. On the other
hand, if the change of power hampers the stability of the country and reduce the security and cost
of the travelers then it will hamper the travel and tourism sector of the country. Moreover, the
appeal of the tourists about a particular country is also influenced by the perceived security and
safety of that particular country (Tourism business & employment survey 2006, 2007). For
example, if the tourists think that the present condition of UK is not stable and secure for the
travelers, but the change of power will increase its stability and security, then the tourists will not
travel today. Rather they will travel in the future. Again, if the consumers think that the present
condition is stable and secure then the number of travelers will increase in UK.

Moreover, the political instability of UK will threat the tourists from china and so the number of
tourists from china will be reduced in UK. By the same way, if the political situation of china is
unstable then it will compel the citizen to travel outside (James, 2006).
From the picture of Syria, we can see how the political change can influence the travel and
tourism sector of a country. At present, none will be willing to travel in Syria because of the
political instability in that country. But if the political change ensure the stability of tourists then
they will be eager to travel in that country.

Task 3
3.1: Explaining the factors affecting tourism demand

There are different factors that influence the demand of a product. Some of these factors are taste
of consumers, price of the product, and the availability of alternative product (Tapper, 2001). As
a part of product development team of TUI group, I have to identify and explain the factors that
can influence the demand of tourism product of TUI group. The manager of product
development team must consider the following factors before developing the product.

Demography

The demographic factors include the age, gender, religion, race, educational background, income
level and the status of the people in the society. So, based on these factors, TUI group will
develop the new tour package (Shaw and Williams, 2004). For example, if the majority of china
are young people, then the company should develop the product by considering the need of
young people.

Technology

Again, the technological change induce or reduce the demand of a product. For example, if the
technology help the TUI group to make the tour more feasible and comfortable, then the
customer will choose TUI group for their tour and vice versa (Tapper, 2001).

Economic condition

Again, the economic factors including interest rate, inflation rate, exchange rate, tax rate and
unemployment rate of the country will influence the demand of the product of TUI group.

Political stability
Moreover, the political stability of UK will also influence the demand of TUI group product. If
the travelers think that the political situation of UK is stable and the country is safe for the
tourists, then it will increase the sale of the product of TUI group.

Workforce and income level

The diversity of the workforce and the income level of the people influence their demand for
tourism product (Tapper, 2001). For example, if the people have more disposable income in their
hand, then they will be able to make a trip to a foreign country.

Environmentalism and globalization

Finally, the increased concern about the environmentally friendly product and the speed of
globalization influence the demand of tourism product.

So, the manager of product development team of TUI group must consider the above factors
before developing its tourism product.

3.2: Explaining how TUI group has changed its supply to meet the
effects of demand

It is the norm of the business that it must adapt itself to the changing situation to ensure its
existence. So, the TUI group must change its strategy and product ofering to meet the changing
demand of the customers.

Accommodation

The change in the income level, technology and the working condition of the people has made
them to lead an enriched life. So, the TUI group must ofer an accommodation system with all the
modern facilities.

Tour operators

Today, people emphasize on the time rather than on the money. So, the people want to get the
entire tour package with a single tour operators rather than different agents. So, the TUI group
must ofers a package that is able to meet such needs (Law, 2000).
Technological intermediaries

Again, the technological intermediary of TUI group must consider the demand of the consumers.
For example, the group must select an airline company that is able to provide all the modern
travelling facilities with other entertainment options.

Quality of product and services

Again, the people want quality rather than the quantity. They also eager to pay a higher price for
a higher quality product. So, TUI group must ensure the quality of transportation,
accommodation and other supporting services (Law, 2000).

Seasonality

Finally, based on the seasonal preference of travelers, TUI group ofers on the peak and of the
peak product to their customers. This has helped the company in meeting the need of the tourists.

Task 4
4.1: Evaluating the main positive and negative economic,
environmental and social impacts of tourism with reference to TUI
group

All of the businesses have different impact on the economy, society and the environment in
which they run their businesses. By the same way, as a tourism business, the TUI group gas the
following positive and negative impact on the environment, economy and society (James, 2006).

Positive impacts

Here, I will discuss the impact of TUI groups product on Thailand and Greece (E-tourism Usage
Patterns of Tourism Business in Chiang Mai, Thailand, 2012). The product of TUI group
contributes to the GDP and economy of the destination countries that means Greece and
Thailand. Secondly, the group crates employment opportunities for the people of the destination
country. Again, the group helps the development of many other related businesses in the targeted
country. Moreover, the group facilitates the infrastructural development of the country. Finally,
TUI group facilitates the interchange of culture between the people of origin country and target
country.

Negative impacts

In the contrary, TUI group puts some negative impacts on Thailand and Greece. The destination
country may be over dependent on the tourism sector and TUI group which is not a good signal.
Moreover, TUI group may induce the leakage, inflation and the damage of natural resources of
destination countries (E-tourism Usage Patterns of Tourism Business in Chiang Mai, Thailand,
2012). Again, the natural, land, wild and water resources of the destination countries may be
hampered by the travelers of TUI group. Moreover, this tourism business may increase the
number of crime and fraud in the destination countries. Finally, commercialization of culture and
beauty is not a good thing (James, 2006).

4.2: The strategies that can be used to minimize the negative

impacts while maximizing the positive impacts

Since, the TUI group put different positive and negative impacts on the destination country, so it
should take some strategies to maximize the positive impact and minimize the negative impact
(Evans, 2001). The following strategies can be taken by TUI group.

Clarification of rules and regulation to the tourists

Social awareness about the negative impact of tourists
Facilitates the enhancement of positive impact
Must set proper place for the wastage disposal
Giving and taking suggestion from the government of Greece and Thailand
Developing and ofering naturally friendly product

These are the basic steps that can be taken by TUI group to maximize the positive impacts while
minimize the negative impacts on the destination countries that means in Thailand and Greece.

Conclusion
In fine, it can be said that the travel and tourism sector has been able to draw the attention of
authority in different countries about their prospect. So, the proper maintenance will help the
country to flourish its tourism sector (Evans, 2001). Moreover, by providing security and safety
to the tourist, the country can flourish its income. Again, the development and ofering of a
tourism product must be based on the demand and supply condition.

References