Travel And Tourism Sector

Development in Travel And Tourism Sector

Introduction to Travel And Tourism Sector

Travel and tourism sector comprises of different customers as well as visitors who travel across the places from their usual environment for the purpose of leisure, business or vacations. It is the largest service industry in terms of gross revenue and foreign exchange earnings. It is a major social phenomenon which is done for the social, religious, recreational, business trips etc. The main motives of travel and tourism are to identify the needs of customers, offer various tour packages as per their social class etc. so that business can attract more number of consumers for travelling. For conducting the present research, London is chosen as an effective destination for the travel and tourism. The report focuses on the historical development and structure of travel and tourism sector along with determining about various government authorities and policies. The report also comprises of the tourism demand as well as tourism's products and services. Furthermore, impacts of tourism on the economic, social and environment factors will also be discussed.

Task 1

1.1 Explain key historical developments in the travel and tourism sector

Key historical developments in the travel and tourism sector are explained below. Tourism industry of UK provides services like transportation, food and beverages, accommodation, entertainment and different other services which are benefited to the tourists. Tourism is refer as when tourist go to different countries with a motive to see different places and their history for their relaxation. Travel means travelling from one place to another within the country or outside the country. This sector affects the economy of both the countries i.e. home country and host country. Now a days, travel and tourism is also a major source of income for the countries to developed their economy. Travel and tourism industry was invented in early 18th century. In ancient times, people are interested in localized experiences, where they goes to small and nearby area as due to lack of transportation and communication facilities. Now days, people have curiosity to see unknown places and their history so for this they went to the foreign countries.

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There is development in transport and in information facilities like in earlier times the cost of the transportation is much more. Due to this, middle and low class people can't afford to go to the travel destination. In term of technology, there was no computer and new technologies was present by which people get the information related to the travel and tourism. In recent times, travel and tourism industry in the UK attracts people by enhancing the level of services through using new technologies. With the help of this, cost of transportation can also be minimized which can be more affordable for the travellers. This in turn helps business to enhance its number of customers. Tourism industry provides facilities like accommodation, rest houses, online booking etc. In earlier times, girls and ladies are not allowed to travel alone but due to development in travel and tourism, increase in transportation and communication facilities, females are free to travel. Through this, there is an ongoing development in travel and tourism from earlier times.

1.2 Explain the structure of the travel and tourism industry

Travel and Tourism is the fastest growing industry in the UK. There are various structures that constitute this sector which are transport, accommodation, local travel, food and shipping etc. Structure of travel and tourism industry is explained as follows.


Travel and tourism industry in the UK provide different varieties of transportation options to the people who want to travel for different places. According to their preferences, conveniences, status and lifestyles, UK based industry provides various options like airlines, buses, rails, ships so that people can easily travel from one place to another. If a person wants to reach another state in less time, then such industry will provide airline facilities according to his needs.


Such industry in the UK provides services to their customers according to their needs. There is a requirement of accommodation by the people if they are travelling to unknown places. This industry includes hotels, rest rooms, youth hostels, campus facilities etc. so that it can attract large number of customers. According to their packages, UK's travel and tourism industry selects hotels or rest rooms. If industry's accommodation facility is not attractive, then this will be a negative point for them. Accommodation services play an important role for travel and tourism industry in the UK.

Food Facilities

Travel and tourism industry in the UK also provides food facilitates according to customer's needs. In this, travel and tourism industry also provides services according to their tastes and preferences.

Guiding services

Main important service which travel industry of UK provides relevant information to their tourists. They provide information of the place where a person is going like what are the sources to reach there, atmosphere of that place, local languages and the different attractions like monuments, castle etc.

Tour operators

Tour operator helps in understanding customer’s requirements such as selection of right destination. Famous tour operator in the UK is Thomas Cook. Further, there are different tour operators according to the type of tourism. Tour operator ties up their business with hotels and transport companies.

Task 2

2.1 Analyse the function of government, government sponsored bodies and international agencies in travel and tourism

The function of government, government sponsored bodies and international agencies in travel and tourism are as analysed. The government plays an essential role in the travel and tourism industry. Governments and its sponsored bodies are involved in tourism for a various functions. Tourism has an impact on the economy of a country which brings foreign currency, increases employment, impact on the balance of payments and aids regional development. UK government have to control and monitor tourism movements across national frontiers. Government of UK should ensure that tourism sector should give the positive perspective to their customers.. The tourism merchandise may need protection and development through government aid. The industry is very diverse and government involvement is needed to regulate and coordinate the activities and provide protection to their customers. UK use tourism as a source of revenue and they get revenues from tax rates such as tax on the accommodation and meals, air travel, car rental, package holidays etc. The principal functions of a Ministry of Tourism of UK are research and development of tourist resources, statistic and planning about the destination, marketing the tourism sector of the UK, various trade regulation and Liberalization.

There are number of international bodies which are both governmental and non governmental with interest of tourism. The travel and tourism industry is also experiencing rapid internationalisation. This development has been accelerated by the process of harmonisation within the European Union. For example, Thomas Cook, probably the most famous name in UK travel and tourism is owned by the German conglomerate Preussag, which also owns the German market leader in travel and tourism.

2.2 Explanation of the local and national economic policy influences the success of the travel and tourism sector

The local and national economic policy influences the success of the travel and tourism sector are as explained. There are various economic policy which has influence the success of the tourism industry. Economic policies of the government is the direct impact on tourism. This occur when, government policies which has direct focussed on the tourism industry. For instance, if local government grant the building of a resort in a beach town then the tourist business in that town gets benefited. There are also other ways in which economic policy affect tourism indirectly. For example, monetary policy by the government doesn't considered the tourism sector. If there is a any change in monetary policy, it will affect the tourism sector in a positive or negative way. If the currency of the UK falls, then the vacations in the country will be cheaper and more people gets attract to it. The government is planning to minimize the negative effects of tourism and wants to maximize the positive impacts so that their tourism sector gets increased and they can earn more revenues. The local and national economic policy which influences the success of the travel and tourism sector in UK are created under the Development of Tourism Act. In this Act, this legislation focussed on the government’s concern to increase the foreign exchange earnings which are incurred by visitors to UK, thereby improving the balance of payments. The primary function of a National Tourist Organisation is to facilitate and coordinate the marketing of the country as a destination for visitors so that they can helped in the UK economy.

2.3 Discuss the implications of political change on the travel and tourism in different countries

The implications of political change on the travel and tourism in different countries are as discussed. Tourism growth in many countries has not been this high, in particular, those countries which faced with a range of lack of political stability that have made happen to hold back development in tourism. Tourism is a tool which not only used for economic purposes but also used for political means. Political change can either increase or decrease a country's attractiveness for tourism, depending on what the change is. If the UK has reduced the tax rates then more number of tourists will get attracted to the United Kingdom so by this other countries will also make special packages to attract large number of tourists.

Political environment impacts working and efficiency of tourism industry in any country no matter what its size, its area of operation. Political factors of the UK consists of the law, regulations and government policies which facilitates or obstruct direct marketing. The political factors influence Tourism industry of any countries in many ways. The political factors can create advantages and opportunities for tourism industry. The political environment includes critical issues such as management, strategic planning, adapting to restructuring, globalization, sustainability and the creation of social capital. This also comprises all laws, government agencies, individuals or organization in the society.

The most important of the political conditions that concern tourism marketing is the stability or instability of the prevailing government policy. For example, in economic crises, the prices of tourism places in UK is lower because the country is facing recession. To gain profitability for the economy, the travel and tourism sector is providing with less fare so that more tourists gets attracted. By this, other countries suffer the consequences because the more visitors are getting attracted to the UK because of low prices.

Task 3

3.1 Explain the main factors affecting tourism demand

The main factors affecting tourism demand is as explained. There various ways by which various changes can take place and have an impact on tourism demand. Political factors plays an important role in affecting the tourism demand such as the expansion of EU policies, taxes on the various factors such as accommodation, meals etc. The important factor is political stability of the country and its environment. The other factors includes crisis, threats, demographic change, technology like transport, communication etc. The changes which are coming from the consumers end are their tastes, preferences, lifestyles and attitudes which can influence the tourism demand in a drastic way. This is because customer is asking for standardization of products, information channels which are taking toll on the tourism industries. The travelling factor of the consumer will depend on the their needs, expectations and their economic position which can affect the tourism demand. Demographic considerations can also have impacts which will reflect in tourism demand. Management of organization continuous makes modification in their service policy by considering factors having direct influence on market demand. In this aspect, there main focus is on demographics and emerging economics. This is because; on the basis of these factors they make allocation of their resources in order to maximize their output. In present era, India and China are emerging as growing nations due to which increasing their services for them for the enhancement of revenue and profitability. By considering demographic factors, management of the TUI is able to develop effective strategies in order to enhance the level of customer satisfaction.

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3.2 Explanation of the supply has changed to meet the effects of demand

The supply has changed to meet the effects of demand are as explained. There are five components in the tourism supply which are attractions, transportation, services, information and promotion. In which most important is tourist attraction which should be presented as the main features. To satisfy the leisure- based travel demand, the supply opportunities can be in form of natural amenities, recreational sites, access and private sector business activity etc. Organizations operating in travel and tourism sector are required to supply services in accordance with the changing environmental conditions for effective market growth. By considering this approach, it is important for management of TUI to design their service system in an effective manner so they can satisfy market demand. Furthermore, they should consider taste and preferences of customers in designing policies in order to enhance the level of customer satisfaction. In festive seasons, special arrangements should be done by management of TUI. For this aspect, they can provide complete packages by orienting with the other suppliers. In this manner, they will be able to deliver better services in low prices and good margins of profits. Moreover, they incorporate advanced technological development in the operational activities in order to accomplish their aims and objectives in an effective manner. By integrating updated techniques they will be able to reduce adverse impact on environment and can make optimum utilization of available resources. For example, Hotels services are in combination with the transportation services in accordance with the convenience of customers. By this strategy, they are able to make reduction in cost along with providing qualitative services to customers.

Task 4

4.1 Evaluate the main economic, environmental and social impacts of tourism

The main economic, environmental and social impacts of tourism are as evaluated. The tourism brings both positive and negative impacts to the tourism of the UK and they are as follows:

Economic Impacts

The positive impact of the tourism can helps in providing employment, creates jobs and also helps in the retail and transportation sectors. Tourism industry also provides opportunities for the small scale business enterprises which helps in generating extra tax revenues such as airport and hotel taxes. The negative impact of the UK tourism can be on the government because cost of the infrastructure will be increased. Tourism destinations can be adversely affected by various events such as terrorism, natural disasters and economic recession.

Environmental Impacts

Eco-tourism and natured loved tourists will helps in promoting conservation of wildlife and natural resources such as rain forests. This is because, these are now regarded as tourism assets. The negative impact of tourism poses a threat to the natural resources such as supply of water, beaches, heritage sites through overuse. It can also increased pollution through traffic emissions, littering, noise and increased sewage production.

Social impacts

The improvements to infrastructure and new leisure amenities which result from tourism also benefit the society. Tourism encourages the preservation of traditional customs, handicrafts, castles and festivals which creates civic pride of the UK. Other positive impact can create a better cultural understanding between hosts and guests of the tourism. Tourists behaviour is major negative impact which can affect the host country i.e. UK culture. The interaction with tourists can also lead to an erosion of traditional cultures and values.

4.2 Explain strategies that can be used to minimize the negative impacts whilst maximizing the positive impacts

Strategies that can be used to minimize the negative impacts whilst maximizing the positive impacts are as explained. Tourism can only be sustainable if it is managed in an appropriable manner. Thus, private and public sector in tourism is required to manage the negative impact on the host community by maximizing the benefits. Following strategies can be used for minimization of negative impact and maximization of positive impacts in tourism sector:

Motivation by government and local authorities

Local community should encourage tourism entities for minimizing adverse impact of operational activities on environment. For this aspect, they can promote sustainability in tourism by providing benefits in monetary and non-monetary way.

Social events

Government can conduct social events at tourist destination in order to promote tourism. For this event, national and international tourists will be encouraged for visits. Further, they can also make use of promotional techniques to enhance visitors. For this purpose they make use of social media platform.

Use of technology

Organization operating in tourism sector can make use of updated technologies to reduce pollution and disposal of waste in an effective manner. By this approach, they will be able to save cost and can operate in more effective manner.

Standard norms and regulations

Government and local authorities can establish standard norms through policies which must be mandatory for organization to comply. In this manner, environmental issues can be reduced such as increasing conservation and erosion of natural resources.

By the applicability of above described strategies there will be reduction in adverse impact by which sustainability can be promoted in tourism sector. Further, maximization of positive impact will provide growth and development opportunities to the society.


This reports concludes that the travel and tourism sector is growing drastically. The reports here, comprises of the historical developments and structure of the travel and tourism. It also discussed about the national and local government authorities which in development and promotion of the tourism industry. There are factors which influences the demand and supply of the UK tourism sector. Furthermore, it comprises of positive and negative impacts of the economic, environmental and social factors of the UK.


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  • Xiang, Z. and, 2015. Information technology and consumer behavior in travel and tourism: Insights from travel planning using the internet. Journal of Retailing and Consumer Services.
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  • Ruhanen, L., 2013. Local government: facilitator or inhibitor of sustainable tourism development?. Journal of Sustainable Tourism.
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