A Sample Report On Contemporary Issues In Travel And Tourism
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Table of Contents INTRODUCTION ...........................................................................................................................3 TASK 1 ............................................................................................................................................3 A. Issues helping in drive changes in travel and tourism sector ............................................... 3 B. Discussing major issues ....................................................................................................... 4 TASK 2 ............................................................................................................................................6 A. Trend in the travel and tourism sector ................................................................................... 6 B1. Analyzing the situation of Bukit Lawang ............................................................................ 8 B2. Suggestions for the future development of the orang-utan .................................................. 8 TASK 3 ............................................................................................................................................9 A. PEST and SWOT analysis of a two star hotel in Blackpool .................................................. 9 B. Developing a strategy ......................................................................................................... 11 C. Justification of the chosen strategy ...................................................................................... 11 TASK 4 ..........................................................................................................................................12 A. Impact of issues and trends on business, products and services and employment levels .. 12 B. Consequences of travel sector, if it fails to meet the changes .............................................. 14 CONCLUSION ..............................................................................................................................15 REFERENCES ..............................................................................................................................16
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INTRODUCTION Travel and tourism industry of UK is fastest growing service industry in the world which is demonstrating drastic changes (Appiah-Adu and et. al., 2000). The study undertakes the issues which drive changes in travel and tourism sector and the impact of these changes on this sector. Moreover, secondary research tool is applied to identify and select the major issues in the industry. In addition to this, the various trends and issues on the business, products and services and level of employment also discussed.
TASK 1 A. Issues helping in drive changes in travel and tourism sector Technological advancement in business In present business scenario, there are various changes upcoming the technology in travel and tourism sector. These technological issues have helped in drive changes in this sector such as use of internet, social media and mobile communication and reservation system. The use of computer systems allows communication between branches and locations to stay connected. Reservation system allows customer to book tickets online and provide customer convenience as well cut the cost of travel by reducing call volumes and give the traveler more control over purchasing process. It can be assessed that business is required to update its websites so that crucial information can be provided to them in order to improve satisfaction. Further, with the help of advanced technology it assists in making 24*7 booking facility so that customers can be attracted towards firm. Also, flexible pricing as well as virtual tour of different destination that helps in improving the business performance and attaining results. Increased environmental awareness Due to the involvement of media, people have become more aware about the environment and have shifted to the eco friendly culture (Haley and et. al., 2005). Therefore, travel and tourism companies are also engaged in developing and preserving natural resources so that they can attract more visitors to this type of destinations. In recent years, hotels, resorts and traveling agencies are participating in developing an eco friendly environment which can attract customers. Tourism agencies are offering holiday destinations at natural places and creating a peaceful environment for their visitors at their stay during their trip. Further, businesses and customers are required to use recyclable products so that they can avoid carbon issues and thus
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overcome the environment from affecting. Companies should focus upon waste management so that it does not affect the environment. Also, airline industry is required to use fuel efficient technology so that it could not affect the air. Need for increased security Security is a major problem for the growth of travel and tourism industry. The security issues in this industry are terrorist attacks and cyber crimes. Use of internet in the travel and tourism industry gives birth to the cyber crimes. There is security issues involved in online transactions as hacker may use the data for unauthentic purposes. Therefore, there are various changes take place such as transactions are secured by encryption and passwords. Various software is developed to track the consequences relating to the hacking and unauthentic use (Hammond, 2009). Government should try to focus upon security issues and thus implement security force at airports and other public areas so that proper checking of traveler's baggage can be done. Also, innovative machines of body scanning needs to be implemented in regard to proper safety and security of passengers from hijacking issue. B. Discussing major issues Carry out secondary research to identify three major issues The future of Euro zone is quiet uncertain and these crises has create impact on the tourism industry. As, Euro zone crisis has created unemployment, lower disposable income which has impacted the intra regional travel and spending. The Euro has also weakened the purchasing power of hard currencies. Author in his study provided that the euro crisis has adversely affected the economy as it prevents the economic growth as well as resulted into the lower GDP. Due to these reasons, people have lower the travel expenses in these regions and their spending on tourism has been decreased (Harssel and et. al., 2014). The nations are facing economic depression due to high deficits and debts. The Euro crisis has also affected Europe airlines and accommodations as tourists will lower down their travel budgets and the prices. The health issues are big concern in the travel and tourism industry so the factors considered in this industry are mode of transportation, destination, and duration of traveling, food hygiene, accommodation and underlying health of travelers. Author argued that health issues must be given priorities as it is the responsibility of agency to take care of the health of travelers. In this contrast, the destination where accommodations are of poor quality, hygiene and
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sanitation are inadequate, clean water and medical services are unavailable may create great risk to the health of travelers (Heeley, 2011). These types of agencies should keep medical practitioners along with them during the journey, in case of any emergency and clean water, good accommodation and sanitation should be provided to travelers. The emergence of new markets has been created a significant impact on the travel and tourism industry as the new markets has diverse the demand of tourists. They are demanding for new traveling products and destinations. India, China and Russia is emerging as new markets in this industry and therefore, tourists are demanding to visit these countries and demand for tourism in UK is decreasing. According to the author, the emergence of new market is creating a threat to the travel and tourism companies as demand for outbound tourism is increasing as well as the rejuvenation for the older reforms of the tourism. Thus, a large fund and resources are required for these purposes and it is a matter of long term (Hudman and Jackson, 2003). The issues taken in this study are health issues, emergence of new markets and Euro zone as these are the contemporary and major issues in this industry. This issues needs to focus in order to the growth and survival of the industry. Analyze these issues to look for similarities and differences. Lee and Han (2002) in his study said that Euro crisis has create a negative impact on the economy as it has prevented economic growth and caused to lower GDP. This leads to the lower traveling spending by tourists in these regions. However, it is observed that Euro zone cannot be seen as a issues as visitors done not consider it, while planning for their tourism destination. The tourists will visits the destinations which are willingly to go. These types of issues cannot prevent visitors to visit the destinations in these regions (Lee and Han, 2002). On the other hand, Euro crisis are held for a short period of time and it done not stay forever. The visitors who rely on the euro zone crisis will also visit these destinations after the end of this period. Therefore, it can be concluded that euro zone crisis cannot be seen as an issues for travel and tourism industry. Nonetheless, it may results into the positive way as it drives changes. As per the study of Matias, and et. al., (2009) the emergence of new market is creating a threat to this industry as visitors are demanding for new tourism products and rejuvenation in older patterns of tourism which involves huge budget and resources. Nonetheless, travel and Tourism Company can find the new opportunities and develop their new products as per customer exceptions. Therefore, this industry can renovate the new products and create
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significant opportunities for themselves. Conclusively, it is said that industries can create new opportunities from this issues and attract new customers. According to Middleton and Lickorish (2007) author, health issues should be considered by traveling agencies as it is their responsibility to take care of the health of tourists. There should be proper arrangement of quality accommodation, adequate hygiene and sanitation, clean water and medical facilities so that visitors can be safe and avoid any type of health issue during their journey (Middleton and Lickorish, 2007). It can be concluded that health issues are a major issue in this industry which need to be taken care by these companies in order to safeguard the visitors. If these issues are ignored, it may create a serious problem to the health of tourists. TASK 2 A. Trend in the travel and tourism sector A significant change has been witnessed in the travel and tourism industry of United Kingdom. In this task, the development and change in the tourism industry of UK has been discussed in order to identify the way in which the sector is influenced for the change. Some of the major trends in relation to travel and tourism sector have been discussed under the following heads: Extreme and sport tourism Sport tourism refers to a travel which is associated with the observation or participation in sporting events. In addition to this, it also involves event staying devoid of their common environment (Miller, 2001). Thus, sport tourism is fast growing trend in the global travel and tourism sector which generates global revenue of more than $600 billion in a year. Green tourism Green tourism is a form of ecotourism that is also known as low impact tourism with a view to protect the environment and culture of a particular area or country. The United Nations (UN) has set up fixed criteria for ecotourism. Nonetheless, green tourism covers a wider area of standards and conditions which aims at making a culture of less stressful tourism from the perspective of environment. This concept in tourism is emerging exponentially which has created vast opportunities for tour operators. It is important to note here that this type of tourism does not necessarily mean a vacation spent with little or no comfort for protecting environment but it is considered a wonderful adventure (Novelli and et. al., 2006). This type of tourism may include
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tree house platforms, rain forest canopy etc. VisitBritain also promotes the businesses and organizations involved in promotion of green tourism. Dark tourism This is another ongoing trend in the tourism industry of United Kingdom which is also known as black and grief tourism. This type of tourism involves travelling to a site which is historically associated with tragedy and death. It is a new concept of attracting tourists which is different from traditional tourist who takes travelers to macabre attractions and experiences which are disturbing. There are many dark tourism sites from a haunted cemetery with open graves to a creepy suicide forest in Japan. It has been experienced that interest of travelers is increasing in dark tourism therefore; it is a major change in the industry which can be considered as modern tourism (Pearce and et. al., 2010). Medical tourism British economy is promoting high tech healing provided by the private health care organizations for attracting more number of tourists. The country has got attention of overseas marketing by offering world class medical services and health care treatment. Thus, it is a prominent emerging area of tourism which is promoted with the concept of purification of mind, body and soul which is important for the lives of people. Therefore, the main objective of this type of tourism to provide medical treatment to inbound and outbound visitors by providing traditional services of medical which is still preferred in this contemporary era. There are significant numbers of visitors who visit United Kingdom for medical treatment (Perdue and et. al., 2004). Further, the travel companies are targeting these visitors for development of their business. Thus, from the above discussion, it can be said that it is very popular travel segment tourism. B1. Analyzing the situation of Bukit Lawang From the analysis and assessment of the case study of improved ecotourism in Sumatra, Indonesia, it can be said that it based on the ecotourism. Bukit Lawang is village in North Sumatra of Indonesia which aims to rehabilitate the decline of orangutan that is widely targeted and traded. It has been observed that rehabilitated spices are re-integrated in to the forest system and also it has become a major tourism attraction starting in 1974. The number of visitors has drastically increased in last few decades. Nonetheless, drastic expansion of this rehabilitation
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center has lead to development of hotels and restaurants which has created certain sustainability issues (Richards, 2000). Thus, in order to analyze the situation of Bukit Lawang, the designation product life cycle model has been used. It is evident that tourism follows a product life cycle with a curve of several stages which have been described below: Stage Discovery
Launch
Stagnation
Decline
Description It is an early stage in which the destination is identified for tourism purpose. The major social impact is witnessed is small and therefore resident attitudes are fairly positive towards tourism. The Bukit Lawang was discovered in 1974 therefore, it cannot said to be presently in discovery stage. It is a stage in which the number of visitors increases for a particular destination. Furthermore, it is also important to note that host community responds to the increasing number of tourists. From 1974 to 1996 there was a significant rise in the number of tourists at the aforesaid location (Ritchie and et. al., 2004). Therefore, it can be said that Bukit Lawang is not in the stage of launch presently. This is a stage of destination product life cycle in which saturation is reached. Further, it is often seen that quality of tourism service falls which is also observed in the case study. As due to expansion of this, the wild life and service was adversely affected.. This stage of destination product life cycle demonstrates that the current state of destination is matured and the scope for tourism is declined for a particular location. Thus, from the assessment of case study, it can be said that Bukit Lawang is in the stagnation situation.
B2. Suggestions for the future development of the orang-utan Robinson (2012) in his study identified the crises for Bukit Lawang due to which there are threats to this area for further development of tourism business. They suggested in their study that the lives of species of orang-utan are in danger due to rehabilitation center discussed in the case study (Robinson, 2012). From the secondary research, various suggestions have been given for the future development of the orang-utan which is listed below: It is important for the management to adopt best practices in order to protect the environment 
Research and development is important in this area to achieve sustainability in the eco tourism business therefore, management of rehabilitation center is suggested to enhance research and development capacity.
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Improved primate husbandry can be helpful in meeting future challenges of the orangutan
They are also recommended to create awareness by the dissemination of information regarding all the aspects of orang-utan to the general public, tourists and visitors (Saarinen and Tervo, 2006).
In addition to this, good corporate governance and social responsibility principles can be adopted by the management.
Government needs to focus upon educating the local people and enhancing their knowledge regarding preserving the environment. It helps to protect the bio-diversity and enable regeneration that could help bio diversity.
All these benefits local people in the firm of enhancing their knowledge and capabilities in regard to protect the environment.
While, bio diversity also obtain benefits so that regeneration can be done and improve the wildlife of the country. It can be assessed that tourists are required to not affect the local people living in the city as well as bio diversity of the place so that natural environment can be maintained effectively.
Therefore, government as well as different agencies are required to educate local people upon preserving the environment so that their way of living could not get spoiled.
Also, government should restrict the permission of traveling within the areas where wild animals regenerate in the specific season wildlife sanctuaries needs to be closed so that bio diversity can be maintained. It also should not affect the privacy of wild animals.
TASK 3 A. PEST and SWOT analysis of a two star hotel in Blackpool In this task, the macro and micro environment of a two star hotel in Blackpool has been selected in order to outline current position of the hotel. Blackpool is a sea side resort and the borough of Lancashire in North West England. In this task, a two star hotel; Sheraton has been
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selected which is a family hotel in Blackpool (Shahar, 2003). In order to do its environment scanning two common tools, SWOT and PEST have been used which are explained below: SWOT analysis It is an acronym for Strength, Weaknesses, Opportunities and Threats which is used to investigate both internal and external environment of an organization. It is important to note here that first two letters of SWOT are related to internal environment whereas remaining two are related to external environment of the organization. On the basis of secondary research, the SWOT analysis is carried out under the below table:
Strengthens There are significant numbers of tourists who visit Blackpool and in comparison to them, the hotels and restaurants are limited in number. Hotel Sheraton is a reasonable family restaurant which is strength for the hotel. Existing distribution and sales networks of the company are strong Due to initiative of green and eco tourism, there is high growth rate of the hotel Opportunities There is an opportunity for the hotel for global markets as visitors come from different geographies of the world. The demand of services of hotel is growing Emerging trend of green tourism is an opportunity for the hotel because the hotel is situated beside sea (.Swarbrooke. and Horner, 2012).
Weaknesses The hotel is a low cost hotel therefore, it is not preferred by high profile visitors as they find the hotel dark and depressing The hotel is situated in isolated area which is a drawback (Shaw and Coles, 2004). Due to poor parking services, customers give negative reviews for this family hotel
Threat The place Blackpool is not very popular across the various countries of the world There are many competitors of hotel Sheraton in Blackpool.
PEST analysis PEST is an abbreviation for Political, Economical, Social and Technological which is used for macro environment analysis. The macro analysis of Sheraton hotel is presented here under: Political Market entry in different country is a strategic decision which is significantly affected by the political factors of an economy. The political situations in Blackpool have never been
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stabilized but there has been seen improvement in this situation due to changes in the tourism industry. Yet, there are significant barriers to the entry of new entities which can be a threat to the hotel in Blackpool. Economical These factors involve economic performance indicator which affect all businesses disregarding of the industry. Economic situations significantly affect the enterprises and their performance (Thomas, 2000). Over past few years, there has been witnessed improvement in economic situations of England instead of global recession where Blackpool is situated. This is a favorable point for hotel Sheraton in respect to economic factors for this family restaurant. Social Global Tourism Management is significantly affected by the social factors therefore; hotel Sheraton is also likely to be affected with these factors of external business environment. In Blackpool, majority of the people belong to middle class who are said to be rational in purchase decision making. Therefore, these factors would have wider implications on Sheraton in favorable sense. Technological The aforesaid two-star family hotel has positioned itself as well established innovative and designer furniture and location. There has been seen drastic change in the furniture designs due to use of advance technology used in the hotel industry (Thomas, 2000). Therefore, in order to avoid negative impact of this factor, Sheraton would have to offer technological advanced ambiance to the customers. B. Developing a strategy In this section, a strategy has been developed on the basis of environmental scanning which covers all the basic elements of marketing mix including Product, Price, Place and Promotion.
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Elements Product
Price
Place
Promotion
Strategy It refers to the products and services offered by the hotel in order to increase profitability. A strategy of unique and consistent services has been adopted because of threat of higher competition. These services can include adventurous activities promoting eco tourism. This element of marketing mix refers to the price charged for particular services. The hotel entity can adopt penetration pricing strategy as it is a cheap hotel which target visitors with relatively lower budget with best quality services (.Williams, 2004). Place element of marketing mix is related to distribution and supply chain management. From the investigation of its environment, it was found that the hotel is located in a sea side area therefore; there are some limitations of selling the services. For this, online booking can be beneficial which an ongoing trend in the industry is. This element of marketing mix refers to the promotion of business for increasing sales and profitability (Friesner, 2014). For this, the hotel entity can adopt a strategy for promoting the tourism with social responsibility initiatives or green marketing.
C. Justification of the chosen strategy From the above study, it is clear that a tourism business is significantly affected by the changes in the external and internal business environment. On the basis of environmental scanning of an organization, the strategies should be developed. Therefore, on the basis of PEST and SWOT analysis, the strategy for a two-star family hotel has been developed for achieving sustainability. The strategy describes the way of designing for major marketing mix elements by the hotel. The reason for selecting this strategy is that it will help the hotel to cope up with the ongoing changes such as emergence of e commerce and changing economic situation (Pleasure beach blackpool. 2015). Aforesaid strategy will assist the hotel to follow the ongoing trends in the industry such as medical tourism, green tourism etc. Thus, it can be said that selection of this strategy is backed with suitable grounds.
TASK 4 A. Impact of issues and trends on business, products and services and employment levels Impact of issue on business There are various issues in travel and tourism industry such as euro zone, health issues, security issues, technological advancements has created a negative impact as well as positive impact on business. Due to the Euro zone, the number of visors in intra tourism has fall and the Assignment Desk UK offers Tourism Assignment Help @30% Lesser Price.
GDP in economy has been decreased. The Euro zone has created significant outcomes as if the economic conditions grow, it will prove as a better tourism opportunities for traveling companies. There are various technological issues occurred in this industry such as security and unethical issues. These technological issues give birth to the new advancement such as reservation system and use of mobile networking for customers’ convenience. The issues have affected the business of this industry in a adverse way but it also has created many opportunities to grow. Impact of issues on products and services The issues have created an adverse impact on the products and services of the tourism industry as many of old reforms have vanished from market due to their inadequate management. For example, the emergence of new markets has raised expectation of customers and they are demanding new products for and services in tourism. It has helped the business to achieve new heights of growth and develop new products such as bio tourism, entertainment packages, religious tours, adventurous tours (Rurais, 2014). Euro zone has helped in developing new regional tour packages which are under the budget of customers due to the fall the disposable income of customers. Technological issues has helped in developing new services for conducting business and delivering value to customers such as internet, social media, mobile networking and reservation system. Impact of issues on employment levels The employment levels are also affected by the issues such as euro zone, technological advancement and the emergence of new markets. The euro zone has affected the level of employment as due to euro crises raise the economic depressions and the employment opportunities are decreased in economy. Technological advancement has shrink the employment opportunities in the economy as machines were replaced by men. The issues also have created new opportunities of employment as the emergence of new markets required new employees. Hence, the employment opportunities will significantly grow and the economic will grow (Friesner, 2014).. Impact of trends on business The various tends emerged in the travel and tourism industry such as globalization, Grey tourism, medical tourism, dark tourism and green tourism which affected the business in his industry. Now days, people are traveling freely around the world. Due to the globalization and Assignment Desk UK offers Tourism Assignment Help @30% Lesser Price.
new concepts such as grey tourism and dark tourism, there has been increase in the number of tourist per year which also leads to a increase in business. Moreover, safety and security is the first priority in this sector and tourism industry has become more aware due to the tourists kidnapping, robberies and assaults (Turner and et. al., 2001). This all has increase the security and safety of tourists. The destinations which are less secure are ignored by visitors. Therefore, security arrangements must be proper in those areas. Impact of trends on products and services The diversity, globalization and services gives emphasize on the development of new products and services. The hoteliers are giving focus on increasing quality, convenience and developing unique services to deliver value to the customers. The globalization has developed new products and services such as Grey tourism, medical tourism, dark tourism and green tourism. Many of the old tour packages were replaced by the new packages in this industry. Impact of trends on employment levels The emergence of new trends has also create impact on the level of employment as the employment has been increased due to the expansion of products and services in this industry. Diversity such as medical tourism and gastro tourism gives birth to the new services development and skilled persons are required to operate these service (Thomas, 2000). But due to the technological advancements in these concepts, many employees are replaced and these technologies are reservation system, mobile communication and internet. Therefore, it is observed that these trends have created positive as well as adverse impact on the level of employment on travel and tourism industry. B. Consequences of travel sector, if it fails to meet the changes It is very essential to meet the changes occurred in the environment for each and every organization to achieve growth in the market. If any firm fails to meet these changes, following consequences may occur: Decline in the profitability Travel industry has shifted from traditional products and services to the modern services such as green tourism, dark tourism and grey tourism. The demands of the consumers are continuously increasing and their expectations are changing. Therefore, it is necessary for this industry to meet the customer expectations. If the expectation of customers is not met, they will
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not use the services provided by traveling industry. Therefore, profitability of industry will be decreased as there will be a decline in services used by visitors. In order to meet customer expectations, changes are required. Questionable sustainability The expectations of the customers are continuously becoming diverse and these are shifted from traditional to the modern patterns of tourism. If the industry will not make these changes rapidly, it will soon vanish from the market (Thomas, 2000). In order to survive in the market, it has to adopt the newer concepts developing in this industry such as dark tourism and sports tourism. This industry need to fulfill the expectations of customer’s o that it can survive in the market. If it does not meet the customers’ expectations, there may be a possibility of new entrants in this industry which may achieve first mover advantage over it. Reduction in growth There are various issues and changes occurring in the industry and new concepts are taking place so in order to achieve growth, this industry needs to makes changes. If it does not make changes according to the trends emerged in the market, the growth of this industry is declined. If industry has to achieve growth in long run, it has to cope-up with these trends emerged in the market (Turner and et. al., 2001).
CONCLUSION From the above study, it can be concluded that world tourism industry is very dynamic which is undergoing into a significant change due to emergence of new trends such as green tourism, dark tourism, medical tourism etc. It can be concluded from this study that organizations in travel and tourism industry of UK need to incorporate required changes to achieve sustainability. The issues such as euro zone, technological advancements and security issues gives birth to the new changes such as mobile internet, reservation system, new product development and new software in this industry for protection.
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Lee, C. K. and Han, S. Y., 2002. Estimating the use and preservation values of national parks’ tourism resources using a contingent valuation method. Tourism Management, 23(5). pp. 531-540.
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