Contemporary issues in Travel &

Tourism

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Table of Contents
Introduction:....................................................................................................................................3

1. Understand currents issues in the travel and tourism sector....................................................4

1.1 Current issues driving change in travel and tourism:........................................................4

1.2 Different current issues using appropriate methods and resources...................................5

2. Understand currents trends in the travel and tourism sector....................................................6

2.1 Evaluation of current trends influencing change in travel and tourism sector..................6

2.2 Discuss a particular trend with appropriate techniques and resources..............................7

3. Understand how the travel and tourism sector responds to change.............................................8

3.1 Analyse how tour operators could respond to change...........................................................8

3.2 Business strategies on how travel businesses could respond to change................................9

3.3 Justification on strategies for how the travel businesses could respond to change.............10

4. Understand the impacts of change on the travel and tourism sector..........................................11

4.1 Explain the impacts of contemporary issues and trends that drive change in tourism sector
...................................................................................................................................................11

4.2 Discussion on the consequences of the failures to respond to market change.....................11

Conclusion:................................................................................................................................12

References......................................................................................................................................14

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Introduction:
From the last few decades’ travel and tourism sector is considered as the fastest growing industry
and has managed to contribute a vast amount of economic revenues. In the year 2017 this
industry has contributed nearly £5.47 trillion, although nowadays the travel companies are facing
a range of different issues such as global economic condition, technological advancement, global
warming and so on. For example, the stakeholders who are involving in this business like tour
operators, transport companies, local or national agencies, tour guides all of them are struggling
to adjust to the dynamic changes of present market. In few cases, some of the travel industries
have failed to maintain their market position. Therefore, most of the travel industries have
adopted new policies along with technical supports through mobile phones and internet services.
This report will discuss these problems and how they are effecting on travel and tourism business
along with what are the new trends and techniques have taken by travel operators to attract
travellers. Lastly, the report will also concentrate on the consequences if such travel businesses
failed to respond to the market changes.

1. Understand currents issues in the travel and tourism

sector
1.1 Current issues driving change in travel and tourism:
Economy: Since 2008 the United Kingdom has been a state of recession which has adversely
effected on the UK based travel businesses. Inflation is the most common outcome of recession
and due to these reason travel industries have to spend more money on food, hotel lodging along
with transportation. Recently Great Britain has been separated from European Union (EU) which
led to falling of $ 1.28 in British Pound which was the lowest in the British economy over 30
years. It has limited the capability of travellers along with the travel operators, while travel and
tourism business is always considered as a highly taxed sector industry[ CITATION Che17 \l
1033 ]. Although the tax rate differs from region to region. While the stakeholders such as tour
operators, transport companies, hotels, airline sectors all of them are paying a range of taxes on
transport, aviation, service as well as luxury taxes. Apart from the tax cost travel industries are

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highly depend on transportation, but the recent hike in fuel price is effecting on this business
industry. Because it has increased the transportation cost which is effecting their business.

Digitalisation: The emergence of digital technologies along with another technological advances
has been driving changes in UK based travel industry. Information and Communication
Technology (ICT) is the widespread implementation of modern technology and it has simplified
the communicational way between travellers and tour operators. From the official websites of
these companies like Titan Travel, Thomas Cook Plc., Cox & Kings travellers can easily get a
detailed information on the rates of transportation, hotel or food fares and so on. It has abled
travellers to access available information and plan based on them along with they can easily
book hotel, transportation tickets[ CITATION Har145 \l 1033 ]. Meanwhile ICT has decreased
the communication gap among the travellers, tour operators and suppliers. In this regard social
media platforms are also playing a significant role, for example popular social media platforms
like Facebook, Instagram, Twitter or You Tube providing them a variety of different options of
travel agencies along with their services. A behavioural change has been observed among the
inbound travellers, as they have adopted a habit of check out feedback posts of previous
travellers and mostly they decide their travel plans based on such feedbacks. While the varied
cultural background of Central London has lured universal travellers, mostly the travellers prefer
some specific destinations like Buckingham Palace, Royal Observatory, London Eye and so on.

Immigration: Due to impact of high value of Euro travel and tourism business operators has
been experiencing down fall in tourism sector. For example, the value of Pound and Euro were
nearly same in the year 2010, which was limited the capacity of UK based travellers to plan on
trips on nations such as Spain, Portugal and Greece. In addition, there were a security issues due
to increasing immigration and it has also dominated the decision-making process of the
tourists[ CITATION Coh16 \l 1033 ]. Beside that rising immigration it has also increased
immigration along with security breaches and terror activities in the United Kingdom. In the year
2017, the Guardian newspaper has stated that terrorism has been risen by 54% in Great Britain.
While the high worth of Euro has restricted travellers and it has also increased the pricing value
of all the facilities of travel industry.

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 1.2 Different current issues using appropriate methods and
resources
Terrorism: Presently worldwide travel companies along are adopting various security policies in
order to avoid terrorist activities. Not only in UK terror activities are occurring across the world,
which is negatively effect on travel operators. For example, terror activities in France have
shaken the safety assurance of European countries, this bomb and mass attacks have increased
anxiety across the foreign travellers[ CITATION Vea173 \l 1033 ]. In this way, terror activities
have negatively affect the UK based travel business operations. While Titan Travel, a UK based
Travel Company operating in inbound as well as outbound tourism market, has adopted some
effective actions in order to avoid economic loss. This tour operator company has implemented
various anti-terrorism equipment such as CCTV, metal detector, baggage scanner, an explosive
detector to ensure travellers safety and monitor the employees as well as visitors all the activities.
Beside from that the management of this travel firm has also hired a team to observe CCTV
footage and ensure travellers, staffs and officers safety if any emergency situation occurs. This
team is also responsible to ensure safeness during natural disasters[ CITATION Coh16 \l 1033 ].
Although terrorism is an alarming issue travel businesses such anti-terrorism measurement has
supported this travel firm. For example, in the year 2018 BBC news has stated in one of their
news items that in 2017, more than 30.2 million foreigners had visited in Great Britain and most
of them has visited London.

High range of Costs- Transportation is a key resource of travel and tourism industry, which is
run by fuel. But the gradual rising prices of fossils fuels like gasoline is negatively effect on the
whole travel sector. Due to the high fuel cost travel operators adjusting with another spending
and they cannot improve their service quality due to lack of finance. Universal tourists have been
facing difficulties to manage their spending, especially if they are planning for long term trips.
Not only UK based travel operators, Middle Eastern or North African country based companies
are also facing the same problem[ CITATION doV16 \l 1033 ]. Therefore, travellers are
preferring low-cost destinations but most of the cases travel companies cannot manage this. For
example, world renowned travel companies such as Titan Travel, Airbnb have been forced to
innovate newer avenues to manage a cost effecting way. In addition, travel companies have to
pay a range of taxes on transportation including service tax, while it varied from country to

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country. So when a UK based company is trying to venturing on another region the company
needs to pay more money on taxation.

2. Understand currents trends in the travel and tourism

sector
2.1 Evaluation of current trends influencing change in travel
and tourism sector
In recent times travel and tourism industry has been witnessing a lot of diversification as
nowadays travellers not only travel for any generalised purpose. So many new trends are
developing in tourism industry which has been termed as niche tourism and this context will
discuss on grey tourism, dark tourism, and adventure tourism.

Grey tourism: This is one of the niche market of UK based tourism industry, this new term is
mainly related with the senior citizens of Great Britain. For example, 5.4 million senior citizens
have visited Britain, at present ‘Grey tourism’ market has contributed biggest share in UK based
travel businesses[ CITATION Sig17 \l 1033 ]. Flexible government policies are the main reason
behind these immense success of travel industries. In this regard VisitBritain has stated that
senior citizens had a positive perception toward UK than the young generation. They had also
said that mostly the senior citizens are belonging from fast growing BRIC nations like Brazil,
Russia, India and China.

Adventure tourism: This niche trend is the most popular among the youth generation of UK, as
this generation the urge to build adventurous experiences. This type of tourism mainly includes
wildlife along with Mountain climbing, surfing, road racing, underground or undersea
adventurous experiences. In addition, some tourism businesses have also developing advanced
technology which will detach travellers form worldly connection. In UK the most popular
adventurous tourist destinations are Scottish Highlands, Cumbria, Midlands, Snowdonia, Bush
craft, national forest way, Peak District and son on.

Dark tourism: Dark tourism is involved with those historical places which are associated with
death, war or tragedy. This is one of a newest trend in UK based travel industry because there are
a range of historical places which are associated with death and tragedy. For example, the tower

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of London, Bart’s Pathology Museum, Jack the Ripper Tours, Highgate Cemetery, London
Hospital Museum are the most common dark historical areas which are attacking worldwide
travellers to visit England[ CITATION Cla152 \l 1033 ].

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2.2 Discuss a particular trend with appropriate techniques and
resources

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3. Understand how the travel and tourism sector
responds to change
3.1 Analyse how tour operators could respond to change
In travel and tourism industry the macro, as well as micro environmental elements, are changing
and the tour operators are adopting new policies to respond adequately according to the market
change. Whitbread Plc. is considered as one of the largest hotel and restaurant outlet business
industry in the United Kingdom, and the management of this travel firm has been implemented
new strategies in their market policy[ CITATION Cha155 \l 1033 ]. For example, they have
developed new technologies to adjust to the new trends of the travel industry, along with hired
market experts to identify the current requirements of the consumers. The coffee shop outlets of
this business organisation have adopted customised policies to impress their guests, as they have
implemented three-dimensional coffee mugs in which visitors will see their own pictures. There
should be some feedback facilities in which visitors can share their experiences through which
the company will be able to enhance their marketing mechanisms. In this regard, the company
may install candy dispensing facilities to interact with guests while checking out or they can
offer customers with free candies if they complete the feedback session patiently[ CITATION
Mko16 \l 1033 ]. Such installation will encourage visitors to come again and establish the new
idea in their mindset toward the organisation. In these way, Whitbread can modify their service
quality by installing such customer preference services.

3.2 Business strategies on how travel businesses could respond to

change
In order to respond to the market changes Whitbread Plc. business organisation needs to change
their market policy. In this regard the senior management of Whitbread Plc. may adopt following
business strategies to respond to change.

Strong Leadership: In order to guide the employees of Whitbread Plc. the management needs to
adopt strong leaders as well as management. This hotel company needs to adopt proper business
strategies through which they could respond to market change. In this regard, transformational
leadership will be most effective to transform the employees and guide them

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adequately[ CITATION Fil14 \l 1033 ]. Apart from that transformational leaders will be able to
motivate the employees in order to meet their specific targets.

Investment timing: In order to respond to the change fresh investment within an existing
venture is one of the profitable business strategies. This business firm needs access the existing
business policies of rival companies such as Hyatt, JW Marriott to know their business strategies.
It will support them to develop different business policy from its rival company, it will also
support them to differentiate their services from the rival companies.

Create a vision: Before initiating the changes the company needs to build a proper vision for the
change which will build the way along with proper strategies to meet the target. By analysing
current market policies along with the competitive company’s positions the management will be
able to adopt the new vision and then guide its employees to achieve their personal
motive[ CITATION Arg16 \l 1033 ].

Short-term wins: In order to get a long term wins the senior management team needs to adopt
the new policy for a short period of time to know its capabilities. Because nothing can encourage
more than success, so in terms of applying new policies the seniors needs to monitor the new
policies. Because without monitoring the policy they cannot be able to apply new policies.

Communication: Whitbread Plc. management needs to adopt effective communication policies

in order to communicate with all the employees of this company from a higher level to grassroots
level employees. Because without communicating they cannot be able to know employees issue
and areas which needs more improvement.

3.3 Justification on strategies for how the travel businesses could

respond to change
Whitbread Plc. and its associate company Premier Inn & Restaurants and Costa Coffee could
respond to the dynamic changes based on the SWOT analysis of present travel and tourism
industry of Great Britain[ CITATION Hor162 \l 1033 ]. Here is a SWOT analysis has been
presented based on the market scenario by which this business firm could be able to develop its
market strategy.

Strengths-

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Great Britain is the hub of world-class technological advancements through which this business
firm can improve its organisational infrastructure.

The central position of Europe is one of the key strengths of this company as it would attract
universal travellers across the world.

Great Britain is a cultural heritage country which encouraged travel industries as most of the
universal travellers visit London to experience its historical heritage.

Weakness-

Lack of restrictions on the immigration issue has created so many issues in European countries
such as terrorism has increased in these nations.

BREXIT has decreased the economy power of European countries, which has increased inflation
and travel operators has to spend more money on micro and macro environmental elements.

Opportunity-

UK based travel operators have the potentiality to promote a range of niche tourisms such as
adventurous, dark, sport along with nature tourism.

The popularity of adventure among the youth population of the UK will support tour operators to
innovate new ways to improve the infrastructure of the tourism industry.

Threat-

Due to rising inflation in European countries the citizens cannot spend more money to travel,
which can be a threat to the UK based tour operators.

When any travel company introduce adventure experiences for travellers it has to implement
adequate equipment to monitor its services constantly, otherwise lack of infrastructure may
create fatalities.

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4. Understand the impacts of change on the travel and
tourism sector
4.1 Explain the impacts of contemporary issues and trends that drive
change in tourism sector
Over the passage of time travel and tourism industry has been developing a sustainably although
the external and internal stakeholders of this industry has been facing issues due to the dynamic
changes of travel market. For example, the travel companies like Cox & Kings, Tralfinders Ltd.
has been facing contemporary issues like terrorism, economic instability due to BREXIT and
digitalisation. Technological advancement is one of the positive issue in tourism industry which
has enabled travel operators to communicate with travellers as well as promote their services.
Through implementing technical equipment, the travel operators are also ensuring traveller’s
safety along with monitor the services[ CITATION Sha142 \l 1033 ]. In addition, UK based
travel industries are mainly facing economic crisis due to BREXIT and emerging terrorism issue.
Recent terror attacks have makes travellers avoid UK based trip as mostly tourists do not like to
visit those countries with social issues. Contemporary issues in tourism are largely effecting on
the economic side of tourism business, as due to the emerging recession travel operators cannot
manage to provide an improved service within a same pricing value. In addition, tourists are also
concerned about the rising price on transportation so the travel industries need to innovate new
cost saving ways by which they can manage their quality services without losing more money.

4.2 Discussion on the consequences of the failures to respond to

market change
Economic loss: The most significant consequence of the failures of travel industries is financial
loss, which occurs due to cancelation of trips. Due to inflation most of the travel companies have
to spend more money on hotels, transportation and aviation apart from taxation. Beside travel
industries worldwide tourists are also struggling with the emerging cost, they cannot spend more
money on outbound travelling. In addition, travel companies are also struggling to implement
technical equipment and on their monitoring cost[ CITATION Bro163 \l 1033 ]. Due to these
reasons the travel companies cannot bear the spending and also they cannot improve their service
quality. While they are also losing travellers, as lack of innovation has led to reduce profitability.
Nowadays it has been found that most of the travel operators are finding difficulties to enhance
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their profit margins after taxation as tour operators has to spend a lot of finance on taxation like
service tax, luxury along with transportation taxes.

Loss good Brand Image: Due to the recession the renowned travel companies cannot manage to
provide the same service quality towards the travellers and they have to increase prices, which
may lose their brand image. Apart from the economic misbalance employee’s strikes are also
decreasing their brand image, for example when the staffs of Air France and Lufthansa were on
strikes their brand value have tarnished due to such incidents. Mostly travellers do not want to
take services from any controversial company, as before they plan any trips normally they
discuss with their friend and families who do not prefer such companies[ CITATION Mur161 \l
1033 ].

Changes in attitudes among the stakeholders:

Changes in the attitude of stakeholders have created an issue to manage the business function of
travel and tourism sector in a strategic position. The company needs to make internal and
external stakeholders aware of their roles and responsibilities that need to be performed in the
workplace. The use of innovative business plans benefits these stakeholders to achieve target
business objectives without any issue. However, changes in demand of these stakeholders creates
issues in managing the business operation of tourism sector in highly competitive business
environment of UK. Continuous conflict among internal and external stakeholders creates issues
in addressing innovative plans that need to be followed to meet changing requirement of tourists
existing in the industry. Continuous changes in the demand of stakeholders have created an issue
in improving the quality of services provided in tourism sector of UK.

Conclusion:
In the current scenario, it can be concluded that advancement of technology has supported in
managing internal functionality of different organisations existing in travel and tourism sector.
Active involvement of stakeholders provides a scope to meet changing goals of tourists existing
in UK market. The government of UK has also thought about bringing changes in the business
function in order to meet the demand of current business trend of travel and tourism sector. The
inclusion of solo or adventurous tourism has supported in improving growth of tourism sector
that influences profit margin.

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14
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