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Travel and tourism management is one of the fastest growing industry in the world which contribute in overall economic development. This industry generate large amount of profitability in every year by delivering quality services to their clients. Basically it is an activity in which they provide various type of facilities such as accommodation, transportation services and many more which aid in satisfying visitors needs and generate more and more money (Definition of TOURISM, 2016). Present report is based on TUI which is a multinational travel and tourism company in the UK. They deliver quality products to their customers in order to achieve their higher satisfaction level in effective manner. Various key historical developments are also mentioned in this project. It includes functions of government and international agencies which help in managing its process effectively. Along with this, implications of political changes and factors which affect the customer's demand are also mentioned in this assignment.
Implication of political change on the travel and tourism sector
Travel and Tourism sector
In the country there are various factors which define the political changes and also impact on different sector in positive and negative way. The political implications means the condition of the country where government is removed there power. A number of various dimensions are there of political implication and that can be identified by terrorism, political unrest and strikes. Obviously, if there is political change in UK than it will affect the travel and tourism of the country. The affect on the travel and tourism is depend on what type of political change is there. If there is radical change than the tourist is having fear of safety and may be they ignore the country for travelling. Political strikes or protection causes the ignorance by travellers (Chang, Kivela and Mak, 2011). Sometimes these implications create a image of stereotypes in minds of the tourist. So it becomes a problematic concerns for the UK tourism sector and they think overly to attract the tourist towards there country. According to the researches, The UK is the doubled tourism country by the tourist in comparison with the other countries. Thus the implication of the political on travel and tourism is in higher rate. There is a relation between the political change and the tourism sector. The highest purpose of the tourism is to develop the political, cultural and the economic benefits with the people, destinations of the UK so that tourism sector can improve the quality of life and peace within the different countries. Tourism is not continuous but its a integral part of the political economy. For getting positive impact, it is more important for the company to follow all the rules and regulation so that they easily serve effective as well as legal services. Negative impact is if there is no stability in their political factors which lead in reducing the brand image at market place and customers mind. It also directly impact on currencies. Negative impact define various difficulties for the company so that, for reducing this impact it is more important for the company to follow all the rules and regulations in ethical manner. On the other hand the positive impact of the political factors define stability in government in which they change one time to time so that they as per new government they set new and effective ideas for the company which helps in developing effectively. In their they also provide better training and development programs to their employees so that they easily handle all the clients and identify their demand in appropriate manner. In this TUI is one of the biggest tourism company which provide quality services by using effective strategies and policies which lead in attracting large number of clients toward the company.
After Brexit, tourism company is working as a partner in which they easily promote their capital by provide quality services to the Chinese tourist because they are influence for visiting one place to another and also other people also come UK for visiting attractive destination. It help to the company to generate larger revenue which define positive impact on UK economy.
3.1 Factors affecting tourism demand
Primary factor affect the tourism demand is economy. Demography change means the rise of educational level. Thus, technology affects communication and information in UK. There is a big change in the customer attitudes towards tourism and the tourism industry itself making a lot changes (Chen and Phou, 2013). The factor which is making a lot changes in tourism sector is the capacity of tourist and the motive he/she is having of travelling. Nowadays, the tourism destinations are having a great competition. Tourism sector in UK are investing a lot amount on transportation system and infrastructure (Chen, Chen and Okumus, 2013). According to a research there is a decline in the number of children in tourism as because most population are divorcing and living separately. Not only in UK but in many countries the price factor is there, now this is being included in the strategies by the tourism industries itself. UK is selling a quality trips on low prices with hope to receive the major market share and highest turnover of tourist with the lower income. Yes, it is correctly said that without tourist the tourism destinations is nothing. So to built the higher range of tourist in UK tourism sector is managing all scope of the satisfaction of tourist. As the demand of tourism in UK increases the hotels start charging higher prices from consumers for the rooms and facilities. With respond to gain in the demand of tourism, destination management may expand the capacity of place. Not availability of ATM and the currency brings hurdle to tourist for purchase something and without the currency of UK tourist cannot do anything in that country.
3.2 Supply has changes to meet the effects of demand
Tourists are the one who generates tourism demand. Time is the thing which changes demand for tourism services either advances changes and small changes. Demand of the tourism in UK also changes according to seasons. changes are there just because of the ' New Tourist'. Therefore the tourist wants to attain best of tourism they can because of amount tourist are spending on tourism (Gössling, Scott and Hall, 2015). New tourist are increasing the demand for tourism in UK, but the new tourist are also bringing many problems for the tourism department just because tourist want best of their money and for this the tourism sector is also bringing new changes to tourism. Seasonal demands affects mainly to tourism sector. The demand is mainly varied in three concepts those are:-
- Actual demand
- Suppressed demand
- latent demand
Actual Demand: This type of demand is very effective in demand concept, thus such type of demand mainly comes from the tourist who are actually involved with this process.
Suppressed Demand: This type of demand originally created by the two types of people who are willing to travel but due to some circumstances they cannot travel for shorter period of span (Lee, Law and Murphy, 2011). Those two kind of people are:
- The first one are those groups who wants to participate or get involved in tourism but for some reasons they cannot. They get involved on some later date.
- The second one are those who postponed their plans to travel just because of problems in supply environment.
- These reasons somehow difficult to measure that's why they are not taken into account (Plaza, 2011).
Latent Demand: The last type of demand is related to spatial and temporal expression. Ex: Few of the tourist demand for the accommodation or service over particular destinations.
4.1 Positive and negative economic, environmental and social impact of tourism
Travel and tourism is fastest growing industry so that it is more important for the company to identify the positive and negative impact of economic, environmental and social on the organization (Tung and Ritchie, 2011). In this TUI is a multinational travel company so that it is necessary to determine the actual impact of these factors on continue basis. By this organization easily develop their process in market place. For example, if income of the person is increased then they want to visit various countries for their enjoyment so that the company evaluate their demand and supply of their product according to the customers needs. Along with this there are some positive and negative impact of various factors which define by the company in order to get customers satisfaction.
Social factors: In the economy country various people are lives and all are belongs from different culture. So that it is important for the company to understand about customers needs which will aid in achieving their satisfaction (Wearing and McGehee, 2013). Understanding the various culture of the customers is more difficult so that it negatively affect the company performance. With the help of identifying the social factors company easily capture large market share and achieve customers loyalty in appropriate manner. In this TUI provide better services to their target customers according to their needs and demand so that they easily fulfil their demand and get better satisfaction level by them.
Economic factors: Tourism is one of the fastest growing aspect which contribute positively on the economy growth. It define the various job opportunities to their local people which improve their living standard it is positively affect on the economic. On the other hand revenue of the government also negatively affect because it is depend on the travel sectors. For reduce this proper utilization of resources is more important for the company. By analysing economic factors company get competitive advantage by setting their operate ion activities in appropriate manner which helps in improving economic condition in systematic manner. If any company having effective economic condition then they easily execute their business in better way.
Environmental factors: In this the organization use effective and natural resources in which they easily provide better quality products (Wilks, J., Stephen, J. and Moore, F. eds., 2013). Using high technologies will provide harm to the environment. It is an important responsibility of the company to protect the environment. For maintain this is also important for the tourist to avoid the use of plastic material so that they easily maintain the pollution free environment.
4.2 Strategies that can be used to minimise the negative impacts while maximising the positive Impacts
Government play important role in developing the overall performance of the company. For reducing the negative impact and maximise the positive impact the government set various rules and regulation which formulate in the organizational activities in order to improve their positive impact. It is more important for the company to follow all the policies effectively so that they easily develop their positive impact. There are some effective strategies which is used by the company in maximizing their performance level which are as follows:
Minimising areas: Various places as well as destination are available for the visitors in UK. For increasing the profitability level, government set high price for the customers (Gössling, Scott and Hall, 2015). In this TUI group have authority to charge high rate for the restricted location. It affect on the company performance positively.
Technology: New and advance technologies is more important for the company to produce effective products and also increase their quality. TUI group also used advanced technologies in their production process which aid in improving the overall quality of the goods. with the help of this they save their money and cost in effective way.
Provide better training programs to their employees: It is one of the best strategies which is used by the TUI group to improve their employees performance so that they easily deliver all the services effectively. It is important responsibility of the manager to provide organize various training and development programs to their employees so that they enhance their skills. It define the positive impact on the cited organization in which they attain their objectives. There are some another strategies which is used by the company for positive impact:
- One of the important duty of any organization to provide quality products and services to their clients as well as customers so that they easily invite large customers and also retain them for long time period.
- Proper communication if more important for TUI groups so that they easily communicate with their customers about any kind of problems which is faced by the customers at particular destination so that they easily resolve them effectively.
- Decision making is also an effective process which take by manager of the company. So that it is important for the manager that they make any kind of decision as per their customers needs so that they easily deliver best services to their clients.
From the above mentioned report, it can be concluded that government play an important role in improving the overall performance of the travel and tourism industry by formulate their rules and regulations. At the time of implementing all the process it define the positive and negative impact which aid in evaluating the actual position of the company at marketplace. Along with this, manager of the company undertake market research to identify their demand and supply of the products. In the positive impact of this it define lots of opportunities to their local people so that they easily improve their living standard. It directly impact ion economic growth of the country.
Books and journals
Berne, C., Garcia-Gonzalez, M. and Mugica, J., 2012. How ICT shifts the power balance of tourism distribution channels. Tourism Management. 33(1). pp.205-214.
Buhalis, D. and Darcy, S. eds., 2011. Accessible tourism: Concepts and issues (Vol. 45). Channel View Publications.
Chang, R. C., Kivela, J. and Mak, A. H., 2011. Attributes that influence the evaluation of travel dining experience: When East meets West. Tourism Management. 32(2). pp.307-316.
Chen, C. F. and Phou, S., 2013. A closer look at destination: Image, personality, relationship and loyalty. Tourism management. 36. pp.269-278.
Chen, H. J., Chen, P. J. and Okumus, F., 2013. The relationship between travel constraints and destination image: A case study of Brunei. Tourism Management. 35. pp.198-208.
Gössling, S., Scott, D. and Hall, C. M., 2015. Inter-market variability in CO 2 emission-intensities in tourism: Implications for destination marketing and carbon management. Tourism Management. 46. pp.203-212.
Lee, H. A., Law, R. and Murphy, J., 2011. Helpful reviewers in TripAdvisor, an online travel community. Journal of Travel & Tourism Marketing. 28(7). pp.675-688.
Plaza, B., 2011. Google Analytics for measuring website performance. Tourism Management. 32(3). pp.477-481.
Tung, V. W. S. and Ritchie, J. B., 2011. Exploring the essence of memorable tourism experiences. Annals of tourism research. 38(4). pp.1367-1386.
Wearing, S. and McGehee, N. G., 2013. Volunteer tourism: A review. Tourism Management. 38. pp.120-130.
Wilks, J., Stephen, J. and Moore, F. eds., 2013. Managing tourist health and safety in the new millennium. Routledge.
Definition of TOURISM. 2016. [Online]. Available through.<http://anandasanyal.blogspot.in/2009/05/definition-of-tourism.html>. [Accessed on 31st October 2017].