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Sample onTravel and Tourism Sector

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TABLE OF CONTENTSIntroduction......................................................................................................................................3Task 1...............................................................................................................................................3

P1.1 Key historical developments in travel and tourism sector of London ................................3P1.2 Structure of travel and tourism industry of London ...........................................................4

Task 2 ..............................................................................................................................................5P2.1 Function of government, sponsored bodies and international agencies in travel and tourism UK ................................................................................................................................5P2.2 Local and national policy influence on success of travel and tourism sector of UK .........6P2.3 Implications of the political changes on travel and tourism sector ....................................6

Task 3...............................................................................................................................................7P3.1 Factors affecting demand of tourism ..................................................................................7P3.2 Supply changed to meet the effects of demand ..................................................................9

Task 4.............................................................................................................................................10P4.1 Main positive and negative impact of tourism on economy, environment and society . . .10



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P4.2 Strategies which can be used to minimize the negative impact and maximize positive once ...........................................................................................................................................11

Conclusions....................................................................................................................................12Recommendations..........................................................................................................................13References......................................................................................................................................14



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Introduction to Travel and Tourism Sector: In recent years, travel and tourism sector has emerged as one of the most growing and

potential sectors of the world. Along with this, high growth rate in this sector is witnessing very

tough competition among businesses. The present report demonstrates the key historical

developments in travel and tourism sector in London. In addition to this, it also highlights the

structure of travel and tourism sector. Functions of government and other regulatory bodies in

this sector have also been explained in this report. Some of the important factors which affect the

demand of tourism are also mentioned in this report.

P1.1 Key historical developments in travel and tourism sector of London

London is considered as one of the most famous tourist destinations all over the world as

it attracts more than 30 million visitors every year. The vibrant culture and amazing monuments Toll Free No. +44 203 8681 670

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are some of the things which attract people from different countries of the world. The history of

travel and tourism sector in London begins with the primitive era in which the concept of

travelling from one place to another was not so common. One of the only reasons of travelling

was to visit holy places (London's Tourism Industry, 2015). In the modern era, travelling is done

with the main purpose of either leisure or for any business purpose. During the time of primitive

era, the reason of travel was linked with one thing that was to visit religious destinations. As the

time changed, the concept of travel and tourism also started to change. It can be stated that it was

between the year 1660 to 1840 that people started travelling for other purposes rather than for

holy purpose. This period was the time in which first grand tour was introduced in market for

people which belongs to high income group. The grand tour was sponsored by different parties

and the tour ended up becoming a great success (Bernick and Boo, 2013). One of the major

objectives of this tour was to make people aware about the culture and lifestyle of other cities,

areas and countries.



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The industrial revolution is considered as the period of transformation in the entire travel

and tourism sector of London. It was in the period of 18th and 19th century in which major

changes happened in this sector. Along with this, companies such as Thomas cook as well as

Cox and Kings were also emerged in this period only (Donohue, 2007). Many new tourism

destinations were developed and the number of travellers in London also enhanced. The concept

of package tour also developed during this particular year only. Later in the year 1969, the very

first act related to travel and tourism sector was developed. Slowly the concept among people

regarding the use of travel related services and visiting the destination started to grow. In terms

of society, it can be stated that the perception of people in market changed and they started to

visit other countries to see their culture, destinations and other things. Before the beginning of

20th Century, the major development in infrastructures took place in which facilitates such as

road and transportations were developed for some destinations (Barrett, 2012). In both natural

destinations and manmade destinations, these developments took place. In the 20th century,



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technology is introduced in travel and tourism sector in which some businesses started to offer

tours and providing travel related services via online.

P1.2 Structure of travel and tourism industry of London

The travel and tourism sector of London consists of six major components which are

visitor attractions, accommodation, transportation, travel agents, tour operators and tourism

development authority. In terms of visitors attraction, it can be stated that these destinations are

either man made or are developed naturally (Bunja, 2003). For example, Blackpool beach and

Lake District are considered as some of the famous natural visitors attractions. On the other side,

manmade attractions such as Alton towers is one of the best examples of visitor attraction. The

second component of London travel and tourism sector is transportation which plays a major role

in the growth and development of this sector. Further, better transportation facilities makes it

very convenient for tourist to visit their respective destinations. Rail, road, air and sea are the

major sources of transportation within London (Trunfio, Petruzzellis and Nigro, 2006). Another

component of travel and tourism sector is accommodation which includes various kinds of hotels



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and other service providers. In addition to this, there are tour operators whose main motive is to

produce and sell tour packages related to various destinations. Travel agents are also considered

as one of the major parts of the travel and tourism industry as they act as a link between general

public and tour operators. At last, this sector consists of tourism development in which there are

various regulatory bodies whose work is to take care of the practices and activities related to

travel and tourism in London. Integration of all these components is essential for the success of

the sector. It can also be stated that all of them share interdependent relationship with each other

(Chen and Choi, 2008). For instance, if visitor attractions are developed in an effective manner

but transportation facilities are not appropriate, then tourist cannot be attracted effectively for a

particular destinations. The same thing is linked with the other components of travel and tourism

sector. In order to earn higher revenue and growth rate, all the components mentioned in the

structure are required to be effective and efficient. Development authority is required to take care

of the fact that all the laws and regulations which have been developed in terms of travel and

tourism are strictly followed by all the other components. There are many public and private



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businesses which operate in this sector of London and regulatory bodies are required to ensure

that a policy of fair practices and charges is adopted by all these firms (Clarke and Chen, 2012).

Different kinds of services which London offer has a direct impact on the future sales and

profitability of travel and tourism sector.

P2.1 Function of government, sponsored bodies & international agencies in travel & tourism UK

The main role of government, sponsored bodies and international agencies in travel and

tourism UK is to make sure that all the regulations and policies which has been developed in

context of travel and tourism are strictly followed or not. Management and marketing of travel

and tourism sector are the two core functions of government bodies developed at local, regional

and national levels.

In recent years there are many destinations developed in London and these destinations

are taken care by bodies at local, regional and national levels. These bodies also present report of

revenues earned and expenditure made by the travel and tourism sector of London. This further



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facilitates in determination of the growth rate and overall profits made by sector in one particular

year. On the other side of this, there are some international agencies such as United Nations,

World Tourism Organization, Civil Aviation organization, International Air Transportation etc.

World Tourism Organization's main function is to promote responsible, universally accessible

and sustainable tourism (Stamboulis and Skayannis, 2003). In addition to this, it focuses on both

environmental sustainability and economic growth. On the other hand, Civil Aviation

organization's main function is to plan and develop international air transportation. This

organization makes sure that air transport is focusing on both growth as well as safety of

passengers. United nations also plays very important role in the travel and tourism sector as it

deals with the development of rules, plans and policies related to this sector. Every businesses

that operates in travel and tourism sector is required to adhere these policies and rules. All these

regulatory bodies have direct relationship with government (Stone, 2013). It can be concluded

that the major function of government and these bodies is to ensure that the customers in travel

and tourism industry do not get exploited. World tourism organization is an agency which



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performs the function of managing and promoting sustainable and responsible tourism. Further

it is also considered as one of the leading and renowned organization in the travel and tourism

sector of the world. It promote tourism in many country which provides driving force to the

economic development of all its member countries. Other than this, World tourism organization

also perform activities such as promotion and marketing of tourism and competitiveness among

all its member countries. International Air Transportation association (IATA) is a trade

association which has been developed for the world airlines. Further the association includes 260

airlines which is near about 83% of the total air traffic (Barrett, 2012). The major function of

IATA is to support and deal with the issues faced by airlines. Some of its key priorities includes

expansion, reduction of airport charges and increasing fast travel capabilities.

P2.2 Local and national policy influence on success of travel and tourism sector of UK

It can be stated that the national and local policies have an direct impact on the activities

and operations of travel and tourism industry. Majority of the times such kind of policies are

developed with objectives such as elimination of customer exploitation, fair competition among



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business operating in travel and tourism sector of UK etc. The local polices developed in UK

focuses on environmental protections whereas the national policies deals with issues such as

declining number of tourist, low revenues etc. Such kind of policies have both positive as well as

negative impact on the success of travel and tourism sector of UK. In terms of negative impact,

these policies forces all the businesses which operates in this sector to use more sustainable

practices and take care of environment (Theobald, 2013). In recent years the activities of travel

and tourism directly had an adverse affect on the society and environment.

Cutting down of tress and destruction of wild life is done to a great extent for developing

tourist destination. The growing use of adventurous and wild life tours has also become a threat

for environment. All the businesses operating in travel and tourism sector are required to make

sure that all the practices and activities should not have any kind of negative impact on society

and environment. Further both the policies developed at national and local level encourages

businesses to lower down their negative impact on environment. This has increased the cost and

efforts of the firm as they are required to adopt more sustainable practices. Organizations in



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travel and tourism sector of UK are required to become aware of the fact that sustainable

practices may create issues in short run but for long run they are very beneficial (Trunfio,

Petruzzellis and Nigro, 2006). Adopting such kind of practices will help businesses to create

satisfaction among people in the market. In addition to this, they start feeling that firms are really

taking care of the environment and society. Therefore, it can be stated that national and local

policies have both negative and positive impact on the success of businesses in travel and

tourism sector of UK.

P2.3 Implications of the political changes on travel and tourism sector

Any kind of changes in political environment of a country has an direct impact on its

travel and tourism sector. It can be also stated that there is an serious impact of political changes

as they directly result in increasing the threat of fear and safety. The implications of political

changes on UK and three different countries are mentioned below as:



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UK

The political parties

have affected the

travel and tourism

industry to a great

extent. In positive

aspects it can be stated

that the sector has

always got support

from government. On

the other side, the

sales and profitability

has lower down

India

The political changes

has affected India in

positive terms. Further

political parties in the

country has always

supported growth and

development of

tourism (Hall and

Clayton, 2009). Many

new destinations have

been developed and

the travel and tourism

China

Travel and tourism

sector of China has

been affected by its

political changes. Now

political parties are

forcing the businesses

in travel and tourism

sector to use more

sustainable practices.

This has lower down

the sales and

profitability of the

Thailand

In recent years the

protest against

political parties has

resulted in great loss

of tourism money. The

political instability in

country has resulted in

decreasing the number

of tourists (Korstanje

and George, 2012).

One of the major

reason behind this is



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terrorist attacks and

instability

sector has also grown

with a good rate.

entire sector. that the political unrest

forces people to think

twice before going to

any of the country.

P3.1 Factors affecting demand of tourism

There are several factors which directly or indirectly affects the demand of tourism in a

country. Some of the major factors are explained below as:

Technology- With the help of technology, TUI group can effective promote and advertise

all its holiday packages. For example social media and email marketing can assists the

group to create need and demand of its holiday packages. The use of social media and

email will help in creating more and more awareness in the mind of customers (Chen and



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Choi, 2008). Therefore, it can be stated that effective use of technology will have direct

impact on demand of holiday packages.

Emerging economy- The economy will have direct impact on demand and sales of

holiday packages which has been provided by TUI group. Growing economy means that

people income and living standard is increasing. Further they will be left with more

money which can be spend on activities such as leisure and travelling. Poor economic

conditions will results in making the people left with very less money. This will directly

leads to decline in the demand of holiday packages which has been provided by TUI

group.

Political stability- Nations which do not have any kind of political stability are not able to

attract more number of tourist. Further majority of the people in the world do not prefer

to become tourist of a country which is not stable in terms of politics (Manente, 2000). If

the county if political stable then the interest and tax rates will be convenient. This will

affect the demand of services and holidays packages which are offered by TUI group.



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Political instability means that very less people will be interested in visiting the country

and its destinations. This will further results in lowering down the demand of holiday

packages related to country which is facing political instability.

Influence of exchange rate- If the value of Pound increases in comparison with any other

currency then people of other nation will not prefer to buy holiday packages of UK by the

TUI group. Along with this, the demand of packages among people of UK with regards

to other countries will increase as they will receive more foreign currency at the time of

exchange (Chen and Choi, 2008).

Interest rates- Interest rates prevailing in a country also makes a powerful impact on the

sales and demand of services of tourism. High interest rate will decrease the overall

demand of the holiday packages which has been provided by TUI group. The rationale

behind this is that high rates will results in less money left with people. Therefore, their

spending on services related to travel and tourism will direct gets low. On the other side



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of this, low rate of interest will increase the demand of holiday packages which has been

provided by TUI group as people will left with more money.

Disposable income- If the disposable income of citizens of UK is not high then the

demand of tourism will be low as they will be spending less of their money on such

activities (Pan, 2008). High disposable income will create demand of holiday packages

provided by the group among people. Further the money left with people can be spend on

travelling other counties. On the other side of this, if the disposable income is low then

people will be more interested in satisfying their basic needs.

P3.2 Supply changed to meet the effects of demand

The effects of demand can be lower down with the help of changes in supply. UK is

considered as one of the most renowned tourist destination all across the world. Further there are

many people which visit the country (Bernick and Boo, 2013). It has been observed that there are

various factors which are affecting the demand of tourism services of the country. The effects of

demand can be meet with the help of some changes in supply which are explained below as:



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Accommodation- Tourist in UK belongs to three major groups which are high income,

middle income and low income. Further visitors of high income group seeks for

accommodation in luxury and five star hotels whereas low income group looks for

affordable and low budgeted hotels. The kind and level of accommodation which has bee

provided by TUI group have an direct impact on its demand. Better and satisfactory

accommodation creates high demand of packages in the mind of customers. on the other

side of this, if the accommodation is not satisfactory then people will not use the services

and packages which has been provided by TUI group for next time. This will also lower

down the rate of customer satisfaction and loyalty (Trunfio, Petruzzellis and Nigro,

2006).

Tour operators- High number of tour operators also meet the effects of demand in terms

of travel and tourism sector. It can be stated that when the number of tour operators is

low then they are not able to promote their product and services to wide range of people.

Less number of tour operator means that there will high demand of holiday packages



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which has been provided by TUI group. High number of tour operates will lower down

the demand as people in market will be left with wide variety of options available with

them.

Quality- Good and satisfactory quality of holiday packages will help in ratining all the

old customers and attracting the new ones. In addition to this, it will also support in

enhancing the entire degree of demand of TUI group holiday packages in the market.

Now the people in market are made available with wide range of choice related to tour

and holiday packages. The level of competition among all the market players in travel

and tourism industry has become so intense that it is not easy for organizations to

increases their customer base and market share (Donohue, 2007). Therefore, if TUI

group supplies adequate and satisfactory services or packages then the demand will

directly get increased.

Range of services- Wide range of services will increase the demand of packages which

are provided by TUI group. The rationale behind this is that the customers will be made



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available with wide variety of options and choices (Stone, 2013). This will create

satisfaction among then and will generate more demand.

Sustainability- Nowadays the use of sustainable practices among businesses in travel and

tourism industry of UK is increasing day by day. Most of the firms are trying to lower

down the impact of their operations and activities on environment and society. This has

resulted in increasing the supply of services related to travel and tourism by developing a

sense of satisfaction among all the customers. If TUI group provides people with more

sustainable services then it will be able to create more demand of its services and

packages among customers. the reason behind this is that it will create a sense of

satisfaction among people as they will starts perceiving that the organization is really

taking care of society and environment.

Seasonality- The supply of services also depends on seasonality as it has been observed

that in summers water sports, ice tracking are some of the activities which are preferred

by tourist. TUI group needs to make sure that if packages are only limited to season but



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are in demand for the entire year. If the services are seasonal then the demand will be for

a particular time period only. Rest of the time , the group won’t be able to generate

adequate sales and profitability (Theobald, 2013). Therefore, it can be stated that

effective and unique packages should be introduced by the group in order to maintain the

demand of its holiday packages throughout the entire year.

P4.1 Main positive and negative impact of tourism on economy, environment and society

Tourism sector has emerged as one of the most potential sector of the world. Goa is one

of the major and most famous tourist destination of India. There are various kind of positive and

negative impact which tourism have on economy, environment and society. The impacts are

below mentioned as:

Positive impacts:

Direct and indirect income- Tourism in Goa is considered as one of the major and most

important source of generating income. The tourists pays money in term of foreign



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exchange which increases the income (Morrison and Mahony, 2003). Further it can be

stated that there are various kind of activities and other tasks which are offered to the

tourist (Chen, and Choi 2008). Against these services money is charged which is

considered as income.

Employment- The tourism of Goa also helps in development of society as it provides

direct and indirect employment to various people. The activities such as water sports,

sky diving etc. provides employment to large number of people in Goa. In addition to

this, indirect employment is also provided to people with the help of tourism. For

example direct employment is for a person which is offering water sports and indirect

employment is fir those which deals with repair and maintenance of the boast and jets

used in water sports.

Contribution to gross national product- Gross national product is defined as the value of

products and services which has been provided by a country In one particular year. This

rate of GNP demonstrate high rate of economic growth (Manente, 2000). Increasing



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tourist in Goa will increases the sales of services of country which further results in rise

in overall GNP.

Generation of foreign exchange- Tourism also helps in economic development by

generating more and more foreign exchange. When tourist visits Goa which is one of

the most popular destination of India, He/she brings foreign exchange in the country

(Pan, 2008). In addition to this, more tourist means more amount of foreign currency

which directly results in economic development of the country.

Conservation and enhancement of natural areas- The concept of tourism also leads to

environmental protection as it aims at conservation and enhancement of natural areas. It

is only because of tourism that many of the natural ares and beaches of Goa are

conserved and protected (Barrett, 2012). If tourism was not developed in this place then

these beaches and natural places would have been exploited by humans.

Cross culture exchange- Tourism results when people from one country moves to

another country. When people of different nation visit Goa, they bring their culture and



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values with them (Donohue, 2007). The local people become aware and get education

regarding cultures and values of other countries which is very beneficial for the

development of society.

Negative impact

Pollution and damage to natural resources- Some of the main negative impact which

tourism have on environment is that it leads to pollution and also damages natural

resources. More tourist means more flights which further results in increasing the overall

pollution level.

Loss of amenity and increasing crime- Tourism also have its negative impact on society

as it results in destruction of attractiveness of area of local people. Along with this, it also

increasing the crime rate in a country.

Seasonality- Tourism is season and therefore, all the employment and income which is

generated by the sector is not permanent and is season. Therefore, people remain

employed during off seasons which lower down the entire economic growth of a country.



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P4.2 Strategies which can be used to minimize the negative impact and maximize positive once

Strategies for minimizing negative impact are below mentioned as:

Planning and controlling- Effective planning and controlling will help in lowering down

the negative impacts of tourism (Lashley, 2007). With the help of effective action plan

and adequate control strategies pollution, crime rate and season unemployment can be

overcome easily.

Visitors and traffic management- This will help in making the entire year as season of

tourist. Further with the help of visitors and traffic management, during off season other

attractive activities can be organized which can increase the tourist (Korstanje and

George, 2012). The traffic management will help in lowering down the level of pollution.

Sustainable tourism- Another way to deal with and minimize the negative impact is by

adopting ways of sustainable tourism in which only those activities and task will be

performed which do not have any kind of negative impact on society and environment.

Ways to maximize positive impacts



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Increasing tourism income in public projects- The income and revenue which is received

from tourism can be invested in public projects. This will directly result in development

of economy and society of a country.

Provision of Jobs to all level- Government and other regulatory bodies can integrate with

each other and can from provision which provides job to local people for all levels. Such

kind of provision will help in increasing the standard of living and income level of people

living in nearby areas of an tourism destination (Future trends in the tourism industry,

2012).

Staff training, development and education- Another way to maximize the positive impact

of tourism is with the help of staff training and making them educated. Training can be

provided to them regarding what kind of activities can be useful in lowering down the

negative impact (Morrison and Mahony, 2003). Along with this, providing them with

education will help them to grow and find better opportunities for employment in future.

This will results in social development.



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CONCLUSIONSFrom the above report, it can be concluded that tourism is very essential for the growth

and success of any country. The structure of travel and tourism industry of UK consist of size

major component which are interrelated and interdependent with each other. It can be also

concluded that government and other regulatory bodies plays very important role in the growth

and success of travel and tourism industry.



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REFERENCES

Barrett, 2012. An opportunity or liability? London 2012 and security. Safer Communities. Bernick, N. L. and Boo, S., 2013. Festival tourism and the entertainment age:

interdisciplinary thought on an international travel phenomenon. International Journal of Culture, Tourism and Hospitality Research.

Bunja, D., 2003. Modernizing the Croatian tourism industry. International Journal of Contemporary Hospitality Management.

Chen, J. P. and Choi, Y., 2008. Generational differences in work values: a study of hospitality management. International Journal of Contemporary Hospitality Management.

Clarke, A. and Chen, W., 2012. International Hospitality Management. Routledge.

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