Answer :

TRAVEL AND TOURISM SECTOR

Introduction:

The travel and tourism within the context of a country play one of the most significant roles in determining the economic condition of that country. Since the past, there is a noticeable interest among the people of different countries to make a visit in different places. With the progress of time, the rules and legal factors influencing the travel and tourism industry have also changed. Through the structure of this industry, the functional strategies can be identified. Even, it is also one of the significant factors that as this industry is depended on the customer responses, the success of the functional strategies of this industry is hugely depended on the customer demand. Even in the improvement of the internal relationship of the countries like the UK and China, the impact of the travel and tourism industry is quite important.

Task 1:

1.1 Explanation of the key historical developments in the travel and tourism sector:

1.2 Explanation of the structure of the travel and tourism sector:

Task 2:

2.1 Analysis of the functions of government, government sponsored bodies and international agencies in travel and tourism:

Name of the organisations: European Union

Where they are based: Europe

When they started: 1993

How many member countries: Total 28 member countries

Functions and priorities: This organisation looks after the international business and trading policies of the European countries among them.

Name of the organisations: Government sponsored bodies

Where they are based: Based on the UK

When they started: Different times

How many member countries: Only the UK-based companies

Functions and priorities: To help and provide necessary structural and functional support to the tour and travel industry is the prime priority of these organisations.

Name of the organisations: United Nations

Where they are based: U.S

When they started: 1945

How many member countries: Total 193 member countries

Functions and priorities: The focus of this international organisation is to trade and transport in which they provide support and help to develop the relationship among the participants (Weiss et al. 2016).

Name of the organisations: World Travel and Tourism Council

Where they are based: Based on the UK

When they started: 1990

How many member countries: Not specified

Functions and priorities: The regulations and processes of the international travel and tourism industry are informed to the audiences by this global organisation.

Name of the organisations: International Air Transport Association

Where they are based: Based on Canada

When they started: 1945

How many member countries: Total 265 airline companies

Functions and priorities: this organisation performs the global airline services for the transport of the service-users (Turner, 2014).

Name of the organisations: International Civil Aviation Organisation

Where they are based: Based on the UK

When they started: 1947

How many member countries: Total 191 member countries

Functions and priorities: To decide and establish the rules and functional strategies of the international tourism industry are the focus of this organisation.

Name of the organisations: World Tourism Organisation

Where they are based: Based on Spain

When they started: 1975

How many member countries: Total 157 member countries

Functions and priorities: According to Telfer and Sharpley (2015), the international tourism industry is monitored by this organisation.

Name of the organisations: Regional Tourist boards

Where they are based: Based on the UK

When they started: Different times

How many member countries: Only the UK

Functions and priorities: to focus on the requirements of the tourists along with the additional requirements are the focus of these boards.

2.2 Explanation of the influence of local and national economic policy on the success of travel and tourism sector:

In the success of travel and tourism industry of a country, the impact of their national economic policy plays one of the most significant roles regarding the development of the connection with other countries. In fact, Riley (2014) has opined that as the tourism industry is majorly depended on the customer demand and their responses, they are greatly motivated by the economic strategies taken by the governments. The application of the flexible economic policies of a government helps the tourism industry to attract the customer attention and also to smoothen the way of flourish.

In the specific case of the UK and China, it can be noticed that the main reason behind the development of their positive internal relationship is the undertaken economic policies adopted by both the national governments. Since 2016, the UK government has taken several special policies and offers for the Chinese tourists in order to attract them to make frequent visits in this country. The UK government has noticed the fact that China has gradually been developing their tourism market. Therefore, the UK has a great scope for future to increase their tourism industry through attracting the Chinese tourists.

The UK government has expanded the validity for the Chinese tourists staying in the UK for 2 years from only 6 months. Even, they have also a plan to offer them the facilities of multiple entry visits for 10 years without any additional cost. Although it seems to have given birth to the economic loss of the UK, Sutton (2014) has argued that these policies have their potency to impress the Chinese tourists to make a frequent visit in the UK. This will be beneficial for the UK tourism industry to earn a huge amount of foreign currency.

On the other hand, the declination of the value of pound within the UK after the Referendum vote, the number of the Chinese visitors in the UK has significantly increased. Along with the hotel and accommodation services, the air transport sector also increased their profit by nearly 81% in comparison with January 2016 (Chon et al. 2013). Even the preferences of the Chinese visitors to stay in London rather than the mainland of the UK due to the cheaper price of the facilities has also been influencing the tourism industry of the UK.

2.3 Discussion of the implications of political change on the travel and tourism sector in the UK and China:

Political implications are one of the major determinates of the industrial development of a particular country. According to Saha and Yap (2014), in the current socio-political scenario of the developed countries, the focus of the governments is to design their political rules and regulations in a way through which they can successfully compete with others. Even, enrich of the internal relationship among several a number of countries based on the industrial relationship is also in their sincere concern. The similar scenario can be observed in the case of the UK and China, countries of two different continents.

The aspects of the political changes have their strong impact on the economic sector of the UK. It has been noticed by the UK government that the availability of the facilities provided by the tourism industry of this country to the foreign visitors attracts them positively. Political implications of a country signify the use and application of the authoritative power to decide the legal activities and functional strategies (Mowforth and Munt, 2015). Therefore, it is quite certain that the role of the national government is the most in the determination of the functional aspects of the travel and tourism industry.

With the changes of the political power and authority, the implications in the travel and tourism sector have been implemented. Until 2016, the UK government was not enough flexible and enthusiastic regarding the development of the internal travel and tourism industry by taking effective steps. However, the decision of the UK government in the beginning of 2016 to increase the validity of the visa of Chinese tourists in the UK visit has a positive impact on the earning of more foreign currency. As stated by Horner and Swarbrooke (2016), earlier the UK Prime Minister David Cameron focused on the Chinese tourism market as this Asia country can be a significant factor in the financial development of the UK through the tourism industry. In order to welcome a huge number of Chinese tourists to the UK, the political rules were also changed and a new scheme of multiple entry visits visa plan were undertaken to be introduced soon.

On the other hand, the political decisions of the UK government are also helpful for the increase of airline services standard. The Referendum vote of the UK has declined the value of the pound. As a result, the number of the Chinese tourists in the UK has significantly increased and this has a positive influence on the airline transport industry (Saha and Yap, 2014). It has been declared that the airline-booking rate has increased by 43% in the first three months of 2017 in comparison with the last year. Even due to the political flexibility regarding tourist facilities and other advantages, there is an interest among Chinese tourists to stay in London rather than other parts of the UK.

Task 3:

Introduction:

The tourism demand refers to the entire number of the people willing to travel to other places. Their requirements to avail the necessary facilities such as lodging, transport, accommodation and entertainment services are considered in this process. The tourism demand is of basically four types. The social demand is the qualities of the nation and society to travel in different places. On the other hand, demographic and psychological demands are the personal traits of the individual such as age, gender, religion, race and past experiences. The economic demand signifies the inflation and changes in the interest rates and finally, the environmental demand is the urge for the application of advanced technology and accessibility in the tourism industry.

3.1 Explanation of the factors affecting tourism demand:

Table 1: Factors affecting tourism demand

(Source: Mason, 2015)

Among personal and family influences, age matters a lot. Generally, the tourism demand is the highest among the young generation and retired persons. However, the ratio of the number of male and female tourists is low nowadays. The demand for these services among the physically challenged persons is automatically low. Even, the family tradition and customs are also effective here.

Chen and Chen (2014) have stated that the income status of the society influences a lot in the determination of tourism demand. The national identity and country’s culture also set the tourism demand. The working facilities attract the people to avail the services of this industry.

3.2 Explanation of the change of TUI Group by supply to meet the effects of demand:

TUI Group offers their tourism services more than 20 million customers on the global basis. Started in 1923, this company has been offering their personal hotels, travel agencies six airline services as well as retail stores (Tuigroup.com, 2017). Within the Europe, the reputation of this company has increased a lot.

Since the origin, the management of TUI Group has a sincere focus on several associated services such as tour operations, quality improvement, accommodation services and technological implementations. With the increase of the small and nuclear families, the demand for the separated rooms and preferable products has been increased. TUI Group has introduced their hotel services with around 76000 employees in order to satisfy their demands (Tuigroup.com, 2017). On the other hand, the transport system is also one of the major concerns of the tourists and they urge for the timely transport services. In order to satisfy that, TUI Group has introduced six airline services (Tuigroup.com, 2017). Even in the attempt to meet the customer demand for well-decorated hotel services, this company has started supplying the lodging and resort services with 300 hotels. Even, the availability of own tour operator services in both the UK and Ireland and the sponsorships enable them to meet the demand of the customers.

However, in order to meet the customer expectations regarding the reduction of the terrorist attack, the management of TUI Group has been maintaining the strict security in their flight and hotel management. The passengers of the airline services go through the systematic and thorough security check up in order to ensure the traveller safety. The application of the CC camera is also helpful in order to monitor the activities of the people. The availability of the security force also satisfies the tourists. Riley (2014) has also stated that sometimes natural disasters like earthquake, storms, and flood spoils the tourist property. In that case, the management of TUI Group focuses on the process to compensate the customers for a specific amount of money as per the organisational decision in particular cases.

Male-sport tourism is the application of the tourism services that are concerned with the sportspersons to carry them to other places for participating in the sports events. Due to the growth of the international games and sports, the players have to travel in different countries frequently. As a result, TUI Group focuses on their transport and accommodation services as per their needs. Even, with the changes of time, people have enough free time after their retirement from job life. Therefore, in order to provide them necessary services, TUI Group maintains medical services with healthcare specialists and medicines (Tuigroup.com, 2017). Even other facilities such as light foods, availability of fresh environment and security care are also provided. On the other hand, the availability of the cruise holidays has also been introduced by this tourism company in order to satisfy the expectations of the lovers of ship-travelling. TUI Group has been operating floating holiday spending comfortable resorts with luxurious facilities such as swimming pool, cinema, restaurants, gym, and bars in it.

Conclusion:

From the above discussion, it is quite clear that all the political, social and environmental factors have their positive and negative impacts on the business of TUI Group. This company is one of the leading travel and tourism companies on the global basis and due to this; there is a huge demand for the services of this company. However, it is quite a satisfying fact that TUI Group has been meeting their customer expectations through strategic ways. This company can increase the standard of their services by going through the training of the staffs, analysing the changing concept of the customer expectations and introducing some attractive entertainment services.

Task 4:

4.1 Evaluation of the main positive and negative economic, environmental and social impacts of tourism with reference to TUI Group businesses:

Economic:

Within the UK context, it can be observed that the TUI Group business has been offering several employment opportunities to the job seekers. As a result, there is a great opportunity for both the increase in the GDP as well as the economic status of the country. Even through the hotel, airlines and cruises services provided by this company, the number of the interested foreign customers has also been increasing (Tuigroup.com, 2017). With the help of this, the achievement of foreign currency is influenced. Even, the scope of both the direct and indirect income has also been expanding.

However, due to the inflation of the national economy, the management of TUI Group has been changing the price of their services that affects the customer attention. Even, the seasonal availability of the services also discourages the tourists. The leakage is also responsible in this regard. Also due to the recession, TUI Group suffers a lot with the fall of the GDP. As a result, the demand and interest for the services of this company among the customers also reduce.

Environmental:

TUI Group is benefitted through the expansion of the local tourist destinations. The expansion of the natural areas maintained and controlled by the government helps them to get customer attention. On the other hand, Stylidis et al. (2014) have stated that the availability of the historic and cultural sites increases the demand for the service of this company. This company often hosts communities through which awareness among the tourists regarding the safety and preservation of the natural resources are ensured.

On the other hand, extreme tourist entry increases pressure on the management of TUI Group and due to this, sometimes they become unable to take necessary care of the elements of tourist spots. Even, overcrowding and lacking in the affluent supply of water and power also creates customer dissatisfaction. Due to the extreme gathering of tourists in a single spot, air, soil, water and sound pollution occur that create tourist dissatisfaction.

Social:

The services of TUI Group help the internal people to get a chance to enjoy a cross-cultural exchange with the people of other nations. This enriches their foreign education and understands other's culture. Even, tourism services provided by TUI Group also encourage the government to focus on the preservation of different cultural heritage.

At the same time, development of the criminal and cyber offenses due to the overcrowding disappoints the foreign tourists (Mason, 2015). The commercialisation of culture also serves as a barrier in this regard. Even, it is also a fact that the traditional culture of a particular area is spoilt due to the entry of different types and kinds of tourists. On the other hand, through the import of the outside goods and materials, the value of the local goods and products declines that results in social disaster.

4.2 Explanation of the strategies that can be used to minimise the negative impacts while maximising the positive impacts in TUI Group businesses:

In order to maximise the positive impacts of the TUI Group business through minimising the negative impacts, the following steps can be applied:

1. It is necessary for the management of TUI Group to ensure the preferences and cultural background of the tourists before their arrival. Through this, they can able to meet the customer expectation at the maximum level. In order to do this, the management of TUI Group can go through the current cultural situation of their most visited customers. Even, the analysis of the changes in demand of the tourists of specific countries is also effective in this regard. However, it can be stated that the influence of the customer survey and the evaluation of the data collected from that are one of the most significant factors in order to achieve this target. Therefore, through following this strategy, the segmentation in the customer service strategies such as menu of the offered foods, quality of the services as well as type of the tourism guides can be provided as per the tourist’s choices and preferences.

2. Availability of the airline services is also needed to be ensured so that customers are truly satisfied with the company’s own transport facilities.

3. With the help and support of the national and local government, the supply of the power and water is needed to be made 24 hours available. Through maintaining a healthy relationship with the water and power supply board, the achievement of these facilities can be achieved. However, the most important factor in this regard is to payment the service charge to the government as well as the power and water supply board within due time.

4. Following the process of dashboards in order to help and guide the new visitors can also impress the customers positively towards the tourism and travel industry (Lee, 2013).

5. Through the connection to the audiences through social media and the official website is also a helpful process to maximise the positive impacts of TUI Group. The management of TUI Group can do this through informing their customers about their latest services and offers on their company website. Even, collecting customer feedback through the social media is also another helpful process for them.

6. In order to minimise the cyber and online security issues, more strict regulatory steps such as jail custody and compensation can be applied. Even, the management of TUI Group also needs to ensure the customer data protection and record keeping as a confidential factor.

7. Inflation is also needed to be controlled by TUI Group. As inflation has a direct relation with the changes in the service cost, this greatly influences the customer responses. Due to this, the management of this company needs to overcome the impact of inflation by controlling the cost of their services, sometimes reducing their revenue level. Among some special and exclusive offers, TUI Group can extend their commercial contracts with the suppliers in order to fix the price of their services for consecutive years. On the other hand, they can also control the wages of their unions; they need sot take strict steps in order to control that.

6. The local people of the tourist destinations generally expect employment with the growth of the tourism industry. Therefore, if TUI Group can offer the local people of the tourist destinations with several job facilities, they may feel enthusiastic to serve for the tourists. This will help to increase positive impact on the tourists. Even a good relationship can also grow between the tourists and the local people through which TUI Group will be benefitted financially.

Conclusion:

Therefore, it is quite prominent from the overall discussion that since the past, the tourism industry has been going through some prominent changes. In order to cope up with the customer demand, the design of the tourism companies like TUI Group has been designed. On the other hand, the impact of the government, as well as international agencies, is also significant in running the tourism services. The management of TUI Group has been getting success through meeting their customer demand effectively. Even, the availability of the supply of different elements has also been helping them. Although there are some negative sides of the tourism services of TUI Group, there are also some noticeable scopes for them to maximise the influence of their service strategies.