Unit 6 Aspect of Contemporary Issues in Travel and Tourism Assignment
Introduction
The current difficulties in travel and tourism that will help with the development of research abilities related to the field of travel and tourism It will be possible to create a knowledge of how the travel and tourist industry is responding to change as well as the impact of change by looking into current concerns and trends in the industry.
Task 1
1.1 Analyse issues currently driving change in the travel and tourism sector for a selected tourist destination. You have to include at least three issues and give detailed explanation of the issue and its impact on the travel and tourism sector.
There are several problems that are connected to travel and tourism. Different changes in the sector are now being driven by these variables or problems. The UK has been selected to highlight the problems. Among other locations in Europe, it is one of the most visited. These make it the most well-liked travel destination for cultural tourism. The location has established a name for itself in the international tourism business because to its rich culture and legacy. The economic size and GDP of the destination have been impacted by this. The destination has been upgrading its strategies in response to the present tourism demand through renovations and enhancements of the existing tourist amenities. 2012 (Horner).
The travel and tourism industry is undergoing changes as a result of several variables and problems. These elements and problems include:
Challenges with technology: The travel and tourism industry has seen an increase in these issues as a result of globalisation. The advancements in technology have an effect on the tourist industry. Through the technological improvements different activities within the travel and tourism business of UK has been impacted heavily through the modification of the technological implementations. 2012 (Horner).
Political shifts: The travel and tourism industry is impacted by changes in the political climate. The locations have been affected by various political upheavals. The recent UK withdrawal from the European Union has an influence on travel costs and economic issues. The travel and tourism industries have been impacted by political tension and disputes resulting from shifts in politics or political parties. 2012 (Horner).
Economic problems: New economic problems for the travel and tourism industry are arising due to changes in exchange rates, the size of the global economy, unemployment rates, fluctuations in trade rates, interest rates, etc. Recently, the British withdrawal from Europe has had a significant influence on local currency rates, which in turn has a direct impact on local travel and tourism as well as business.
Task 3
3.1 Analyse how International Airlines Group businesses could respond to change.
Changes are a recurring problem for the travel and tourist industry, as well as for the related service and hospitality subsectors. International airline groups require the appropriate business and service structures. The Spanish-British global airline holding company known as The International Airlines Group is officially registered in Madrid, Spain and England/UK. The consortium includes six significant airline firms, including British Airways, Iberia, and others. (2013) Evans and Campbell
Despite delaying the merger, it has maintained the corporate structure. The arrangement has allowed the Airlines to function independently while the company has been thinking about possible synergies between the two businesses. The main benefit of this strategy is that it allows them to maintain acquisition while avoiding prejudice. At the commencement of the summer 2015 schedule, the firm has established itself as the market leader in the North Atlantic with a seat market share of 14%. Virgin Atlantic is clearly trailing BA with a share of 38% of the seats.
Unit 6 Aspect of Contemporary Issues in Travel and Tourism Assignment
IAG has improved its labour reform efforts.
In the LCC market, it has positioned itself ahead of Air-France KLM and Lufthansa.
In contrast to the brand business model, IAG has inherent advantages. (2013) Evans and Campbell
Weakness:
Return on Invested Capital, or ROIC, is insufficient for IAG. The cost per available seat kilometre for 2016–20 places BA firmly in the higher cost airline category.
In Asia Pacific, IAG has largely been a tiny player (Evans and Campbell, 2013)
Opportunities:
Asia Pacific region expansion has been quite positive.
It would be effective to deal with the Big Three legacy through more airline acquisitions.
Savings will result from the consolidated airlines’ increased integration Risks:
For BA and Iberia, the increasing rivalry among LCCs on short routes has presented a possible danger. (2013) Evans and Campbell
Unit 6 Aspect of Contemporary Issues in Travel and Tourism Assignment
Iberia and BA now face competition from Ryanair and Easyjet.
Emirates, Etihad, and Qatar Airways, the Big Three Gulf Carriers, compete in the long-haul markets.
Task 4
4.1 Analyse the impacts of issues and trends that drive change in the travel and tourism sector with reference to Myla Travel, Thomas Cook and The Travel Network Group.
The tourist business is thought of as one that has prospered like nothing other and is becoming better every day. With regard to well-known travel agencies like Myla Travel, Thomas Cook, and The Travel Network Group, which are thought of as the major tour operators who are assisting the travel and tourism industry to grow in leaps and bounds, a significant growth has been demonstrated over the past couple of years as a result of the efforts of various travel and tourism agencies.
Following is an analysis of how certain challenges and trends affect the travel and tourism industry.
Technology-related problems – The use of technology is one of the most significant factors today since it not only helps people communicate with one another on a local and national level, but also gives them access to a global marketplace. In the current situation, everyone uses the internet and mobile phones to have the convenience of staying connected whenever and wherever they want, according to a survey performed by Thomas Cook.
Approximately 70% of people use the internet to look up different sorts of locations, and 75% of them use computers to do so. This demonstrates unequivocally that technology is playing a crucial role in society. For instance, wi-fi and mobile internet services have made it easier for a couple planning a trip to the UK from a tiny Canadian town to do so with the press of a button, boosting the accessibility to look for and book their vacation. (Iqbal, 2011) Technology has also facilitated “online check-in,” “online booking,” “online ticketing,” “facilities for online food and beverage,” and other activities.
Workplace concerns An rising number of people are feeling the need to travel across the world due to the continually evolving laws and responsibility that are being hindered by the travel and tourism industry. More people are drawn to working in the travel and tourism industry as a result of increased individual mobility, but only if they have the necessary technical expertise, moral understanding, and interpersonal skills. The recruiting of such people who have the necessary talents to help in the construction of an overall advantage for the firm as well as themselves is done by tour operators like The Travel Network and Thomas Cook. (Iqbal, 2011)
Unit 6 Aspect of Contemporary Issues in Travel and Tourism Assignment
Conclusion
The challenges that are now causing change in the travel and tourism industry are analysed for a specific tourist site in this case study that is related to contemporary concerns in travel and tourism. Additionally, two distinct current events are being examined utilising appropriate techniques and resources, with a particular emphasis on the impact of the political unrest in the Middle East and North Africa. Additionally, the present patterns that affect change in the travel and tourist industry in the UK have been assessed. Additionally, the impact of the variables influencing change in the travel and tourism industry has been examined, and the likely repercussions of companies failing to adapt to market changes have been highlighted.
References
Baker, D.Mc.A. (2015). Tourism and the health effects of infectious diseases. [online available at:]. http://www.palermo.edu/Archivos_content/2015/economicas/journal-tourism/edicion12/03_Tourism_and_Infectous_Disease.pdf.(assessed on 4/7/16)
CAPA (2016). IAG tells Iberia to prepare for a changing Europe- Latin America competitive setting. [online available at:]. http://centreforaviation.com/analysis/iag-tells-iberia-to-prepare-for-a-changing-europe-latin-america-competitive-setting-81071 .(assessed on 4/7/16)
Evans., N and Campbell., D. (2013). Strategic management for Travel and Tourism. Routledge
Grundy, M. and Moxon, R., (2013). The effectiveness of airline crisis management on brand protection: A case study of British Airways. Journal of Air Transport Management, 28, pp.55-61.
Horner, S. (2012). Business Travel and Tourism. Routledge
Iqbal, T (2011). The Impact of Leadership Styles on Organizational Effectiveness. GRIN Verlag.
Jenkins, D (2011). Managing Empowerment. Random House.
Kozak, M (2010). Managing and Marketing Tourist Destinations: Strategies to gain a competitive edge. Routledge.
LaGrave, K. (2016). How Terrorism Affects Tourism. [online available at:]. http://www.cntraveler.com/stories/2016-03-31/how-terrorism-affects-tourism .(assessed on 4/7/16)
Page, S.,( 2012). Tourism management. Routledge.
