Unit 6 Contemporary Issues in TT Sector Assignment

LO 1 Understand current issues in the travel and tourism sector

Introduction

The objective of this section of the task will be to investigate as well as analyse various issues which are at present delivering multiple changes in a selected tourism industry. Also various current issues in the same industry will be analysed through appropriate resources and methods. For this section of the task a specific destination for travel and tourism will be chosen on the basis of which the discussions will be carried out. The chosen destination to answer of this part of the project is India as this is emerging tourists’ attraction in the global market and is undergoing through a lot of changes currently. Various latest available statistics will be used for looking into the topic at hand.

P 1.1 Analysis of issues driving change in the travel and tourism sector

The destination basis which this discussion will be carried out is India which is Asia’s major tourist attraction. The destination attracts a lot of tourism happens in the nation due to the significant number of incoming tourism from USA and other European countries apart from Russia and adjacent Asian nations. The reasons which make this destination a good case study to discuss is that this destination has been going through a lot of significant structural and other changes in past couple of decades due to the opening up of the economy of the nation as well other infrastructural and technological advancements. It will be essential to first look into consistent rise which the destination has been experiencing in last one decade or so for the incoming tourism. Following is the table for the same:

• Economic Factors driving changes: One of the major driver of tourism development and thus the change in the tourism industry for any destination is the incoming business tourism. Prior to year 1992 the economy of India was closed for the foreign companies. Post the opening up of the economy, a huge number of foreign companies expanded their operations to the country and hence the incremental business tourism started happening for the destination. For the official works of these newly entered foreign companies with their operations in India, a lot of incoming tourism happened and this leads to significant indirect tourism (Wearing, 2003). 
• Technological Developments driving the changes: One of the major factor which drives the changes in the tourism sector through enhancing the global appeal of the destination is the easy access of the information regarding the tourist destination . This aspect has been very beneficial for the selected destination due to the advent of the Internet which has made the process of sharing of information regarding the various destinations and attractions within the country, the services available etc. and has become much easier during last couple of decades. This along with other technical developments including the advent and rapid expansion of the mobile networks etc. have been able to drive the changes and the growth for the destination in terms of tourism (Wearing, 2003).
• Infrastructural development driving the changes: The country after opening up of the economy has also seen a lot of developments for the infrastructure of the destination in terms of the roads and airlines. The growth story of the low cost airlines of India has been one of the major contributors for internal as well as international tourism for the nation. Following graphic shows the exponential growth which has been experienced by the low cost airlines of the country since its inception. All of these contributed to a lot of changes for the ease of access for the travellers and thus enhancing the tourism scene of the nation.

P 1.2 Analysis of different current issues through suitable resources and methods

Due to the significant cultural change of the nation, foreign travellers have become a lot less apprehensive about India. This has been driven by availability of information which has changed the notion of the destination from an unsafe to a relatively safer destination and this can be analysed through the incremental share of female tourists for the dentation which has grown by 40% doing the period.  

These factors have also been able to have serious effect on the tour operator’s industry’s trends and developments.

Apart from this some of the other current issues which are driving changes to the destination include the following:

• Security concerns due to the terrorism and attacks on foreign tourists:  There have been few instances of terrorism in Indian subcontinent over the period of last few years and this leads to a significant negative mind set for the prospective travellers to the country. Also there have been incidences related to attacks on the foreign nationals.
• Development and maintenance of various ancillary services: Due to the recent development of various ancillary (supplementary) services in the country including the Internet, mobile connectivity, banking and finance, hospitals, etc. it is possible for it to retain higher number of tourists for a longer time.  

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LO 2 Understand current trends in the travel and tourism sector

Introduction

The objective of the task in this section will be to investigate as well as analyse various issues which are at present delivering multiple changes for the travel and tourism industry of the UK. Also a specific current trend for the tourism industry of any selected tourism industry will be analysed through appropriate resources and methods. For this section of the task the specific destination for travel and tourism will be chosen on whose support the latter discussion will be carried out.

The destination that will be looked into for the purpose of analysis of the niche tourism destination will be Bhutan. The country practices responsible tourism and a brief description regarding the destination will be given along with the reasons for its increasing popularity and the recent travel statistics for the country.

P 2.1 Evaluation of current trends leading to change in the travel and tourism sector of the UK

The most important current trend which impacts the various changes for the destination is the expansion in the infrastructure related to tourism for the country. The UK government has a lot of focus on the development of the service industry and the same is positively influencing the travel and tourism sector of the nation. Due to the rapid expansion of regional airports, the connectivity of the internal locations of the destination has enhanced along with the rise of various low cost carriers which is a very important factor for the evolution of the tourism sector for any nation. Also the advent of the internet has made the process of international flight and hotel bookings much easier and the same has also driven a lot of positive changes for the designation (Burns, 2013).

However, the major current trend which has been able to influence the destination’s tourism negatively and dampen the incoming tourists to some extent is the recent global economic meltdown as well as the Euro Crisis. Due to the factors, in view of the fact the disposable income of the prospective incoming tourists of the country shrank significantly during last 5-6 years, the same lead to loss of tourism revenue for the destination along with a medium term slump for the industry. Also the factor that GBP is one of the costliest currencies in the world affects the attractiveness of the destination for the incoming tourists.

But the physical and cultural features and trends of the destination makes it a highly sought after destination which also has a lot of influence on the industry. The country and the country side is full of beautiful destinations. Also the ever developing cultural aspects of the country which complements well the history as well as various cultural icons which are present in the destination. UK has a rich collection of churches, museums, galleries, castles which are most sought after destination for the country. Also the trends of various musical festivals and the gastronomic tourism have led to various innovative tourist activities which have changed the face of the destination tourism significantly in recent years (Higgins-Desbiolles, 2007).

P 2.2 Analysis of the current trend through suitable resources and techniques  

The destination which will be looked into for the purpose of analysis of the niche tourism destination is Bhutan. The specific type of niche tourism which is practices in this Asian country is responsible tourism. Bhutan has been able to successfully implement a responsible tourism model for the purpose of protecting of the nature and the internal environment of the country along with the preservation of the lives of the local people. This has also been able to bring out the various advantages for the tourism through keeping a check on the count of incoming tourists through levying a specific tax for the foreign incoming tourists. This money is spent for the development of the nation and its infrastructure as well as for betterment of the lives of the domestic people of the country (Burns, 2013).

Responsible tourism is one of the most impactful current trend and feature of the overall global travel and tourism industry.  This has also become very successful for the customers who are concerned for the fact that the focus of this type of tourism majorly remains on environmental aspects and the maintenance of the same of the destinations. A strong ethic for the use or disruption of the environment and the related factors is the basis of this type of tourism and in view of the fact this is imperative for continued sustenance of the attraction of the tourism of the country, the success of the same is immense. Following are some of the other factors which lead to the success of the responsible tourism in Bhutan:

• Minimizing the negative social, environmental and economic impacts
• Helping the developing of the economic position of the locals and enhancing their working conditions
• Tourists’ involvement in the conservation of cultural and natural heritage of the destination which further aids in the preservation of the comprehensive diversification across the globe.

Following are the some of the statistics regarding the tourism sector of the nation which clearly shows the success of the tourism strategy which has been adopted by Bhutan:

LO 3 Understand how the travel and tourism sector responds to change

Introduction

The objective with which this section of the task will be carried out is to analyse the approaches the travel and tourism sector will react to the various changes going on for the industry, develop various plans for the chosen travel and tourism sector for responding to these modifications, and advocate how these strategies will help the response of the chosen travel and tourism towards any change.

The tour and travel organization selected for the purpose of this is Glenshee Ski Centre which is one of the major Ski resorts in the UK and is situated in Scotland. For the first part of the task a brief and succinct SWOT and PEST analysis of the Glenshee will be carried out to understand the way the entity can respond to the changing industry trends (Oppermann, 2000).

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

Introduction

The objective with which this section of the task will be carried out is to carry out an analysis regarding the impacts of changing issues and trends for the tourism sector with respect to a specific business as well as the following consequences it faces in the failure to respond to these market changes. In this task we will be taking an example of a specific company of travel and tourism sector in order to discuss the way the company will be impacted in case it fails to react to the changes.

P 4.1 Analysis of impacts of trends and issues which are driving changes in the sector

The numerous changing components and trends of the travel and tourism industry drive various impacts for the industry. It is necessary that the businesses continue to make various strategic decisions for the company in view of these changing factors as the tourism industry is a part of the service industry which is highly customer specific. Technology plays a very important part, changes in which leads to major strategic shifts for the companies in the industry. This has brought out a lot of positive changes in the travel and tourism industry. The recent advent of internet and social media has led to the change the way information sharing happens for the industry. The information seeking and information sharing is one of the most vital activities of the tourism industry which has changed significantly during last few years.

• 36% of the tourists visit various social networking sites for destination selection
• 34% of leisure travellers look for social feedback and recommendations on ideas via sites like TripAdvisor and Facebook
• 33% of the travellers use social media as the main source of travel inspirations and ideas

These trends have made these social networking websites very important for strategic decision making for the companies in the industry which calls for starting and managing various pages in the famous social networking websites for engaging with the consumers and influencing their decision (Mill, 2002). Collette Vacations has a strong focus on technology as the element of their marketing communication. The Executive Vice President of the company Paula Twidale, states that the “we are having online communication with our customers on platforms like Facebook sweepstakes has helped in providing valuable customer reaction."

Economic factor is the other important aspect which decides on the pricing as well as the profit margin for the company. This had some negative effects on the industry in view of the fact the purchasing power of the prospective tourism lowered during the economic meltdown, the companies needed to use a single pricing for upmarket and online channels. Some of the major companies like Virgin Holidays, however continued its pricing strategy of variable pricing policy as per the time of booking.

P 4.2 Discussion of the likely consequences of businesses failing to respond to market changes

Some of the likely consequences of businesses failing to respond to market changes are as following:

• Reduction in sales: In case the companies in any sector fail to change as per the various changes and trends in the industry the first thing which it loses is the consumers of the company and along with the market share of the company. The example which has been looked into the previous parts of the report is Glenshee skiing resort of Scotland and this section of the task will also be discussed basis the company as well. The change which was suggested for the company was offering low cost services in view of the recent recessionary pressures on the purchasing power of the consumers. If the company fails to implement the same, it will be arduous for the company to attract travellers in the same ratio.
• Reduction in profitability: This will lead to financial loss of the company which will eventually make the operations of the company irrelevant and impossible. The companies in the travel and tourism industry are also no exception. This will also lead to a lack of sustainable income for the company and also the company will be facing a lot of completion from the other businesses with lower price and same or similar offerings.
• Change in attitude of the consumer due to negative image of the business: In view of the fact the existing economic scenario of Europe will not be able to support high spending from all the consumers, the business will find it difficult to ensure high number of travellers for the destination consistently with only highly priced offerings. Unless there is a change in pricing, the consumers will stop identifying the company as a potential service provider which will lead to negative image of the business. 

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Conclusion

The factors which have been looked into in this paper include the problem areas which are currently bringing a change in the travel and tourism sectors of India as well as UK. Also these current issues have been analysed through appropriate methods and resources which include various data and statistics of the related tourism destinations and drawing inferences from them. Also a detailed discussion on the niche tourism offering by Bhutan, which is responsible tourism, has been carried out. The country practices responsible tourism and a brief description regarding the destination has been given along with the reasons for its increasing popularity and the recent travel statistics for the country. The further points which have been discussed includes an analysis of the approaches in which the travel and tourism industry can react to the various changes going on for the industry, development of few strategies for the chosen travel and tourism organization for responding to these change, and explain how the implementation of these strategies will further help the chosen selected travel and tourism business to respond to the changes. The affect of rapid issues and trends in the tourism industry and the its consequences on a businesses have been looked into.

References

Burns, P. and Holden, A. (2013) Tourism: A New Perspective. London, New York: Prentice Hall.
Gray, C & Juhler, C 2000, The impact of information and communications technologies in EU rural areas, Small Business Research Trust, Knutsford, Cheshire.
Joo, J 2002, 'A business model and its development strategies for electronic tourism markets', Information Systems Management, vol. 19, no. 3, pp. 58-69.
Mill, A.S. and Morrison, A.M. (2002) The Tourism System: An Introductory Text. Dubuque, IA: Kendall-Hunt.
Oppermann, M. (2000) Where psychology and geography interface in tourism research and theory. In A.G. Woodside, G.I. Crouch, J.A. Mazanec, M. Oppermann and M.Y. Sakai (eds) Consumer Psychology of Tourism, Hospitality and Leisure. Oxon: CABI.
Parrinello, G. (2002) Motivation and anticipation in post-industrial tourism. In Y. Apostolopoulos, S. Leivadi and A. Yiannakis (eds) The Sociology of Tourism Theoretical and Empirical Investigations. London: Routledge.
Pearce, P. (1982) The Social Psychology of Tourist Behavior. Oxford: Pergamon.
Pearce, P. (1993) Fundamentals of tourist motivation. In D.G. Pearce and R.W. Butler (eds) Tourism Research, Critiques and Challenges. London: Routledge.
Swarbrooke, J. and Horner, S. (2003) Consumer Behavior in Tourism. Oxford: Butterworth- Heinemann.

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