Tourism is the most quickly flourishing sector in the country which has a significant impact on the growth and economy of the United Kingdom nation. Travelling in the modern age is concerned with exploring new places so as to get space from the daily routine of the life. It has evolved over the period of time. Main objective of the present study is provide readers with an insight of activities of travel and tourism sector and the influence of government on the industry. It also highlights the concept of demand and supply as well as the impact of tourism on UK and TUI group (Lepp, Gibson and Lane, 2014).
Travel and tourism is the essence of every economy as it aids in the growth of GDP. It provides wide range of job opportunities for the people as there are several departments which provides wide range of services. The structure has been highlighted underneath:
Airlines and railways: These are concerned with booking the tickets of the passengers and determining the fare prices for the voyages. They aid the people to travel from one place to another by using the means of airlines, railways or ships (Murphy, 2013).
Travel Agents: They are mainly concerned with providing the clients with the overview of several packages. They determine certain seasonal as well as family packages for the people who love to travel in vacations.
Accommodation: Room Division is the major department of T&T sector so as to provide a safe and relaxing stay the restaurant (Routledge, 2013). These are also involved in providing hospitality services to the visitors so as to facilitate the customers with healthy and friendly stay at the hotel.
Local transport: Passengers are unaware about several place in the native country. They require transports in the form of car, local buses or cabs, in order to move from one area to another. These are also a means of travel and tourism sector wherein the tour operators arrange cheapest means of transport for the tourist to visit the historical places (Sirgy and Uysal, 2016).
Leisure and fun: People love to explore new place. They travel so as to crave fun and entertainment by experimenting varied means of leisure activities in form of paragliding, swimming, coasting, river rafting, etc. All these are provided by the tour operators as well as the sectors involved under it.
Impact of Political Changes
Date: 2nd December 2016,
Travel and Tourism Publication,
Political factor play an imperious role in creating demand or supply of the travel and tourism services. These changes constitutes of the terrorism, alterations in political bodies, laws and norms of the country. It can be ascertained that the political environment of the United Kingdom is quite stable which cause the tourist to visit London over and again. Visitors prefer secure and safe environment where they can stay safely. Therefore, terrorism causes huge threats on the minds of the visitors. Apart from it, with the change in the political bodies, new norms and policies are also inlaid which sometimes may hamper the tourism sector. However, the government of UK has introduced a new policy which states that Citizens of China are provided with the visit visa of 2 years keeping in mind their significant contribution of 5200 million GBP in the growth of the country. This almost 112 percent more than the previous year data. Contradictory to this, it has also been ascertained that with the change in the president of the China, there is much more improvement in the political conditions of the said country. It has significantly contributed in the promotion of Outbound tourism. Therefore, it can be said that political factors have a consequent impact on the tourism industry.
Demand of the product or services of tourism sector are evaluated and measured by several factors as well as constraints. The TUI group manages it operations by considering the following points in mind:
Demographic factors: The demand for the said services are significantly increasing with high number of young consumers making voyages to sea and coastal area. They are more engaged in exploring new places and involved in adventurous activity. Additionally, the increase power of money and disposable income has created a positive demand for the travel and tourism services.
Economies: If there pertain economic stability in the country then the demand for the respective industry will increase and vice versa at the times of crises (AlSayyad, 2013).
Currency rates: If the currency of the UK is declining in comparison to that of the US or China, then more and more tourist are likely to get attracted as it means more value for their money and they can spend higher amount.
Technology: IT is playing a crucial role in the development and growth of the TUI operations. As with the wide range of information present on the websites of the said company, more and more people are taking active participation in reserving their tickets through online system.
Political Stability: It can be ascertained that the UK has a stable political environment which aids in attracting wider range of customers (Becker, 2016). This is so because tourist love to travel at those place that are free from political harm such as terrorism and other factors which creates a positive demand for these services of TUI group.
Demand and supply are the two opposite factors which have significant impact on each other. Therefore, with the increasing demand for the travel and tourism services, the TUI group is making constant efforts to raise the supply of these services by using varied tools and techniques so as to make them stable and enhance its operations. Some of the methods have been highlighted underneath:
With the rising number of tourism, the TUI group is engaged in the development projects such as establishing more and more restaurants so as to provide accommodation facilities to the visitors. This in turn will enable the company to manage its demand with the supply (Blanke and Chiesa, 2013). In addition to the above, there are certain people that prefer cheap packages. Therefore, special offers are created by the said company to match their demand. Likewise, the revenue of the enterprise is managed by charging high prices for the tour packages in the seasonal period and providing the customers with cheap or relatively low fares in the off season. This in turn assist in managing the demand with its supplies. Moreover, technological changes have assisted the TUI group in matching its demand with its supply. Reservations are made by the customers via the use of online booking system which in turn facilitates the enterprise in making arrangements beforehand so as to meet the supply with its demand (Evans, Stonehouse and Campbell, 2012).
Travel and tourism industry is highly influential by the economic, social and environmental factors of the country. TUI group is the most popular company that operates its business activities in the particular industry.
Some of the impacts of these factor on Turkey and Spain have been enumerated underneath:
Economic: These comprises of the inflation rates, recessionary period and other taxes and polices introduced by the government keep the economic conditions stable. It can be ascertained that in the previous years, GDP of the UK has gone down which caused low spending by people. It can also be seen that Spain and Turkey are highly stable countries which have more value for its currency as compared to UK. This in turn cause the people to avoid visiting host country (Roth, 2015).
Environmental: With the growing wastage and air pollution in varied countries has caused the visitors to involve less in travel and tourism activities. It is a negative impact and also the government of Spain is involved less in removing these discrepancies. However, the climatic conditions of the both the countries that is Spain and Turkey is so moderate that facilitates the TUI group to market the destination and large number of visitors.
Social: These comprises of the factors that are connected with the community, safety or culture. There are huge intercultural deviation between the United Kingdom and the host countries that is Spain and turkey which possess a negative impact on the operations of the travel and tourism activities of the TUI group (Zhou, Bonham and Byron, 2007). However, several packages that are provided by the said enterprise keeping in view their respective taste and preferences of food and living habit.
For every negative impact or changes there are some kind of alternative available to minimise the same. In regards to the above proposed negative as well as positive impact of environmental, social and economic factor, the changes or strategies that can be adopted by the TUI group or the government to motivate the people to engage more and more in the travel and tourism activities have been enumerated below:
- The government of the UK can take measures to improve the economic condition of the country so as to facilitate the people to engage more in the leisure activities (Lepp, Gibson and Lane, 2014). For this purpose, TUI group is making efforts to provide cheap fares to the citizen of the country so as to spent more amount in tourism sector.
- The government as well as the said company can make efforts to reduce criminal and other activities from the host country. This will reduce the number of theft cases which will attract larger share of visitors.
- In addition to the above, the government authoritative of the Spain and Turkey must make efforts to remove pollution from the country by minimising wastage. The TUI group can provide tourist with the local buses rather than personal cars so as to minimise pollution (Mahrous and Hassan, 2016). Likewise, the government can lay strict actions against waste dispose and splitting litter on road. They may even impose compensation fees or amount so as to protect the nature keeping in mind the environmental issues.
- The company can even provide training and other programmes for the sustainable development of the country. This in turn will create a sense of affiliation for one another. It will assist in promoting integrity and peace between nations. Henceforth, promoting the travel and tourism activity (Molz, 2012).
The above report depicts that Travel and tourism is the essence and life line of every economy as it provides significant contribution in the growth and development of the country. It can be said tourism has evolved since the period of time and is now concerned and connected with varied sorts of services (Murphy, 2013). The demand and supply of the TUI group can be managed by formulating effective strategies of off and peak season prices. Government of the UK and China is laying prominent efforts to reduce the barriers and promote tourism activities.
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