Unit 6 Contemporary Issue in Travel and Tourism Assignment Sample
This assignment is for Unit 6: Current Issues in Travel and Tourism. Several areas of travel and tourism are addressed, and tourism plays an important part in the country’s economy. Induced impact, direct effect, and indirect impact are the three types of contributions generated by the travel and tourist industry. Between 2014 and 2015, the contribution was valued at roughly $7.6 trillion US dollars. Accommodation, entertainment, attractions, transportation, shopping, and other activities have a direct impact of roughly 2.36 trillion dollars.
The Middle East and North Africa (MENA) region, sometimes known as MENA, has a large tourist potential due to its popular and stunning attractions. However, events like as political upheaval and terrorist actions are strongly impacting the travel and tourist sector in a negative direction. Current trends and an emphasis on niche tourism are also crucial factors. The International Airlines Group’s strategies for the travel and tourist industry will be demonstrated. Finally, based on the case study, the tour operator Thomas Cook will be explored.
1.1 Analyse issues currently driving change in travel and tourism sector for a selected tourist destination. You have to include at least three issues and give detailed explanation of the issues and its impact on the travel and tourism sector.
Travel and tourism is one of the country’s main industries, which is both appealing and beneficial to the economy. Every country in the globe is focusing on the travel and tourism business in order to increase tourist numbers in their own countries. Induced impact, direct effect, and indirect impact are the three types of contributions generated by the travel and tourist industry. Between 2014 and 2015, the contribution was valued at roughly $7.6 trillion US dollars. Accommodation, entertainment, attractions, transportation, shopping, and other activities have a direct impact of roughly 2.36 trillion dollars. This industry has a total value of $1.159 billion dollars. Statista (Statista, 2016). Sri Lanka, often known as Asia’s Emerald Island, has been chosen as the location. Wildlife parks, beaches, gorgeous scenery, and other natural wonders are the country’s main draws. The Golden Temple of Dambulla in Sri Lanka is one of the world’s most visited historical sites. Because of the government’s encouraging attitude, the number of visitors visiting Sri Lanka is growing. The Sri Lanka Tourist Development Authority is in charge of the country’s tourism concerns. The following are the current concerns that are driving changes in the travel and tourist industry: Following the civil war, the hotel management in Colombo established a price strategy for all hotels in the hospitality industry.
The group was established to improve hotel standards and to rein in exploitative hotel regulations in Sri Lanka. The lodging rates have increased from 40% to 50% per night as a result of the adoption of the pricing policy and standard. When we examine the standard, it is also out of line with the costs charged by five-star hotels. As a result of the inappropriate charge of the fee, the occupancy rate will be significantly reduced. As far as the Russian Tourist Board is concerned, overpricing is the primary reason for tourist rejection in Sri Lanka. One of the most serious problems is a lack of skilled human resource management. Because the tourism industry’s growth rate is increasing, hotels are extending their operations and infrastructure in order to meet rising visitor demand. In Sri Lanka, the number of rooms has increased by 75%, indicating that the majority of hotels have extended their infrastructure to fulfil the needs of tourists. In the travel and tourism business, Sri Lankan institutions are unable to produce a large number of efficient students. The main obstacles are a lack of communication skills as a result of inadequate training methods. The government must devise a plan to boost the number of qualified graduates and to prevent the efficient individuals in Sri Lanka’s travel and tourism sector from migrating to the UAE, Oman, and the Maldives. 2010 (Hannam & Knox)
Sri Lanka’s cultural values are diverse and distinct from those of other countries. Customers, foods, and cultural beliefs are all extremely different. Many visitors like travelling throughout the world to learn about the cultures of other nations. This location’s coastal cuisine, which includes sea fish dishes, is appealing. The richness of art and culture can be seen at Dambulla and Silgiriya.
1.2 You should analyse at least two different current issues using appropriate methods and resources in depth focusing mainly on the impact of political unrest in the Middle East and North Africa, tourism and counter tourism measures, severe weather, local and international laws.
The Middle East and North Africa (MENA) region, sometimes known as MENA, has a large tourist potential due to its popular and stunning attractions. However, events like as political upheaval and terrorist actions are strongly impacting the travel and tourist sector in a negative direction. Political instability in Lebanon has given birth to terrorism, or terrorist operations, following the Persian Gulf War, which has reduced travel and tourism in certain areas. On the other hand, the media is reporting every single incident that has left a lasting effect on the minds of travellers all around the world (Batrawi, 2014). Syria, which includes various leisure and tourist locations, is seeing a downward trend as a result of ISIS’ violent actions. People are ruthlessly murdered there, and they have lately targeted Paris and Belgium, killing innocent people. Egypt is a destination where you may find a blend of ancient beauty in the form of pyramids, mountains, and breathtaking nature. However, political upheaval and terrorist actions reduced tourist visits by almost 80%, which is rather extraordinary. Ansar Bayt Al-Maqdis (ABM) and Ajnad Misr, two terrorist organisations, are assaulting Egypt’s government and creating a violent atmosphere. We discovered a man who shot himself in the face of a police officer in Tunisia, and as a result of this occurrence, political instability erupted in the country, posing a serious threat to tourists at the time.
(3.1) Analyse how International Airlines Group could respond to change
The travel and tourism industry is characterised by one consistent phenomenon: change. To stay in excellent form, businesses must be prepared to cope with these changes on a regular basis. Iberia, British Airways, Aer Lingus, and Vueling are all part of the International Marketing Group, a well-known parent business. There are two main features of change reaction that have been discussed in this article. Iberia’s strategies for dealing with the shifting competitive landscape in Europe and Latin America, as well as IAG’s altered development strategy for British Airways’ damaged demand following the terrorist attacks in Brussels.
For a long time, Iberia has been the premier airline connecting Europe and Latin America. Iberia, however, had to resort to an evaluation phase as a result of the steady rise of new rivals. Iberia has the most extensive Latin American flight schedule. Air France, on the other hand, is fast establishing itself as a serious contender. For example, during the week of August 20, 2012 (20th-26th), Iberia has booked 172 flights for operations between Spain and Latin America, with the goal of covering roughly 17 destinations. With 169 flights to 16 different locations, Air France was not far behind. Long-haul operations are generally profitable for Iberia, but the results in 2012, along with the competitive market, were inadequate to justify any long-term strategy. To offset this trend, Iberia set out to significantly improve its per-unit revenue performance, particularly on Latin American routes, in order to maintain a significant competitive edge. Mr Willie Walsh, IAG’s CEO, stated that the best revenue management practises were being used, and the airline quickly experienced an increase in per unit revenue performance on Latin American routes.
3.2) Develop strategies on how IAG services like BA, Iberia, Vueling and Aer Lingus could respond to change. Develop strategies for at least 2 businesses. Provide detailed explanation of strategies.
Iberia is, and has been for a long time, one of the most important carriers connecting Europe and Latin America. However, the emergence of a few competitors has forced the airline to undergo some form of evaluation. On this route, Air France is one of Iberia’s primary competitors. The review time is required since other low-cost airlines and high-speed trains are also competitors on this route. The prevalence of labour conflicts in Spain, as well as the country’s declining economy, contributed to Iberia’s concerns, as all of these variables, as well as rivals, constituted a possible danger to the airline’s ability to generate effective income, since there was a trend toward diminishing revenue.
3.3) Justify strategies for how selected International Airlines Businesses could respond to change. Strategies in 3.2 needs to be clearly justified with supporting arguments.
Iberia and British Airways are the international airlines businesses that are being considered.
When it comes to the size and frequency of operations between Latin American and Spanish locations, Iberia is one of the most important carriers. However, Europe is known for low-cost airlines, and several businesses are attempting to enter the market as such. As a result, low-cost airlines and high-speed trains frequently appear on Iberia’s list of competitors, particularly on this route. The Spanish economy, as well as the country’s ongoing labour battles, are adding to Iberia’s volatility. If the current trend continues, there may be a shortage of demand for flights.
Due to low demand, the number of persons travelling per aircraft will be reduced, and aircraft will fly as ‘not completely loaded.’ This would be a loss since the number of seats available would be reduced, but the distance travelled would remain the same. Thus, reducing the number of seats per aircraft is the most practical alternative since it not only saves on the extra manufacturing costs of the extra seats, but it also means that there is now a race or rush to get a seat due to the restricted amount of unoccupied seats. On perceptual considerations, a large aeroplane that is not totally filled may have an impact on the passengers’ mentality as they consider more popular choices. British Airways’ key competitors in long-haul operations are Lufthansa, Emirates, and others. (2013, Punzel) BA is well-established in long-haul operations, with an average price that is comparable to other carriers and one of the best services available. As a result, despite these competition, they are not in any danger. Competition, on the other hand, may exist in the ground operations facilities. The rising frequency of long-haul BA flights implies that a large number of customers congregate at Heathrow Airport’s Terminal 3.
The opening of Terminal 5 for BA operations means that travellers will have plenty of space and comfort at the airports as they wait for their flights. Passengers may be enticed to purchase a BA ticket over the other two due to the simplicity of operations on the ground at the airport and the fact that the ticket prices for all long-haul flights are nearly same. As a result, it must be said that the new terminal for BA operations at London Airport will assist it in fending off any long-haul competitors, who are few in number. (2008, Symonds)
Batrawi., A (2014). Saudi Arabia’s new anti-terrorism law to criminalise any form of dissent including demanding political reform and exposing corruption. [Online]. Available at: http://www.independent.co.uk/news/world/middle-east/saudi-arabia-s-new-anti-terrorism-law-to-criminalise-any-form-of-dissent-including-demanding-9105249.html, Accessed as on 8.6.16
BBC (2016), BA owner IAG slows growth plans after Brussels attacks, [Online], Available at: http://www.bbc.com/news/business-36167287, Accessed on: 8th June, 2016
BBC. (2015). Egypt’s Al Sisi imposes strict anti-terrorism laws. [Online]. Available at: http://www.bbc.com/news/world-middle-east-33955894, Accessed as on 8.6.16.
Businesstraveller, (2015), BA outgrows Heathrow T5, [Online], Available at: http://www.businesstraveller.com/news/102101/ba-outgrows-heathrow-t5, Accessed on: 8th June, 2016.
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, Accessed on: 8th June, 2016.
Conrady., R and Buck., M. (2011). Trends and Issues in Global Tourism 2011. Springer Publishing.
Fawcett, L (2013). International Relations of the Middle East. OUP Oxford.
Hannam, K., & Knox, D. (2010). Understanding Tourism. Sage Publications
Kelegama., S. (2014). Key challenges facing the tourism sector in Sri Lanka. [Online] Available: http://www.ft.lk/2014/06/27/key-challenges-facing-the-tourism-sector-in-sri-lanka/ , Accessed as on 8.6.16
Majorca Daily Bulletin, (2013). IAG to slash Iberia work force by 3800 as it battles competition. [Online]. Available at: http://majorcadailybulletin.com/news/local/2013/03/01/33779/iag-slash-iberia-work-force-800-battles-competition.html, Accessed on: 8th June, 2016.
Page, S (2012), Tourism Management, Routledge.
Punzel, T (2013), Risks and Decision Making, GRIN Verlag.
Statista. (2016). Statistics and facts on the global tourism industry.[Online] Available: http://www.statista.com/topics/962/global-tourism/,Accessed as on 8.6.16
In this Unit 6 Contemporary Issue in Travel and Tourism Assignment Sample several aspects of the travel and tourism is highlighted, Tourism plays a major role to boost the economy of the country, Locus Assignment Help UK posting units solutions so scholars can explore assignment help and get review the quality of our work.