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Introduction to Current Issues in Tourism Sector

Travel and tourism industry is the most flourishing industry in today's scenario because of the changing living standard of people in the world. Customers are now days more willing to travel to different destinations and thus, tourism is providing the best tourism facilities to meet their expectations. Similarly, this industry is also focused in bringing out innovative and unique services so that potential customer can be attracted towards this business. However, this sector is facing numerous contemporary issues these days due to rise in terrorism and uncertainty in the environmental factors. This report deeply describes the contemporary issues in the travel and tourism industry by focusing a light on some of the organizations of this industry. Furthermore, the reader of this report can get the understanding about the current issues and trends in the travel and tourism sector. Moreover, this report also cover the aspect of response of this industry towards change and the impact of that change on the travel and tourism sector.

Task 1

1.1 Analyzing issues which drives change

As it is already known that travel and tourism industry is a fragmented industry where numerous units are performing their role in an individual manner. The absence of collective action impact the growth of the economy of visitor and disgrace the importance of the tourism spot. Further, in a whole world this industry is a fastest growing and in some of the countries this is the prime leader which contribute the major part in the GDP for the growth of economy. Further, this industry is facing several issues due to which is driving changes in tourism industry. In UK this industry also contributes the largest part for the growth of the economy however it has also been faced by several issues which is bringing change in that industry...

1. Need for Increased Security

Need for security is the most important contemporary issue which drives the changes in the travel industry. While taking the tourist to Greenwich, travel company has to ensure the complete security. The terrorism is increasing day-by-day and along with that theft is also increasing which imposes a challenge for going on a visit. Thus, due to which travel firm has to increase the security level so that visitors does not face any problems.

2. Advancement in Technology

The technology is getting advanced everyday and thus, Greenwich also has to bring technological aspect in order to avoid unfortunate circumstances. For this purpose, in every tourist attraction places CCTV surveillance should be increased, the security check should be done at every places. This will create awareness among the visitors. This may lead to incur of heavy cost but it would result a more secured trip.

3. Rise and Fall of Inflation

Due to the fluctuating economic condition of UK, tourism company in Greenwich is facing many issues. Because of recession and other financial crisis deployment of staff has to be done by the travel company. Further, people are less willing to travel to Greenwich as their purchasing power has gone down.

4. Increased Environmental Awareness

Greenwich has aimed to protect the environment because of the increasing global warming. For this purpose, tourism companies have to educate their customers about the same and thus they have to contribute for the environmental protection.

These were some of the aspect due to which changes are getting introduced in the travel and tourism industry. The companies have to face many difficulties for incorporating these changes in the company. On the contrary, this would result as a betterment for the industry.

1.2 Analyzing various current issues

Greenwich which is a district which is situated in London, England. This place is rich in culture and heritage. Due to the awareness of cultural tourism, people are abundantly traveling to Greenwich. Thus, the importance of this place has increased since five years. However, the increase in footfalls has also lead to the destruction of this place and many unfortunate circumstances have started happening. Thus, the higher authority of Greenwich have become highly aware and they want to reduce the impact of these issues on the Greenwich. Further, the current issues faced by the Greenwich are as follows...

Environmental Issues

There is a increase of visitor to this place and due to which high rate of environmental degradation is happening. Further, the city has to face several environmental issues such as pollution, resource depletion, endangerment of flaura and fauna, climatic change, etc. This has led to severe issue related to environment.

Security Issue

Increase in number of visitor has also encouraged the terrorism and theft. Even after having highest security, the terrorism is increasing. Due to this reason, people are discouraged to travel to this city and also these attacks have reduced the grace of Greenwich.

Economic Condition

There is downfall in the economy of UK and this has lead to the cut down of jobs of people in Greenwich. The employment rate has got down in this sector. Further, the maintenance expenses cannot be bear by the local authorities which led to the deterioration of the destination place.

These are some of the issues which are currently faced by the Greenwich and the analysis can be done as follows...

Positive Impact

If there is a environmental issue than Greenwich will be highly aware about its protection. This will help in improving the environmental condition, there will be a movement of green tourism so that visitors can be made educated. This will prove to be a welfare of the society and thus citizens of the Greenwich will also get benefited due to this aspect. Further, the city can be made environmentally aware city in the world. Further, the awareness about the terrorism and theft will help out the authority of Greenwich to increase the security level so that chances of getting attacked can be reduced. This will attract more tourist and thus economic condition can be improved due to this.

Negative Impact

At the time of fluctuating economy, the Greenwich will get impact in an adverse manner. Further, the firm has to terminate the employment contract with their employees. When the people will visit Greenwich than in hotels there will be not much staff to assist them in a proper manner. Thus, this will place a negative impact on the minds of visitor and the reduction of the grace of this place will get start. Further, the environmental degradation will contribute more in the global warming and due to which Greenwich may become the worst place to visit in coming years.

Task 2

2.1 Current trends which influence in the travel and tourism sector

Different type of trends are used which have altered tourism sector in a differential way. Visitors are also influenced due to emerging trends in both inbound and outbound tourism sector. Further, there are different set of areas in which tourism industry do not have proper focus. Moreover, it has focused on shifting towards different sectors in tourism like dark, creative sustainable, sport, etc. In this modern world, organizations related to travel and tourism aims at niche marketing and this is helpful to understand customers needs and requirement. In this context, organization make use of this marketing in order to develop strong customer base through specific tourism and it includes tourism like sport, adventure, creative, etc. Moreover, it has some of the latest trends of different tourism which have been discussed below:

Green Tourism

With the changing and raising trends of protecting environment and with the raise of carbon footprints, mainly Eco-tourism is destination by Greenwich. In this context, one of the main aim this type of destination is to provide visitors with proper information and this is very much helpful in contributing to the society. And countries economy. With this respect, Greenwich has wide variety of flora and fauna and wildlife which enables to grab attract of travellers however, emerging trends of green tourism should be influenced by the changes within this sector. Form this it can be stated that Green tourism is concerted with the places which are rich in natural resources and flora and fauna. In addition to this, after 1990s the growth of Eco-tourism has reached up to 34%.

Grey Tourism

There is an increasing trends of grey tourism in UK and thus, Greenwich is also encouraging this type of tourism because the old people are willing to visit the heritage places. This is because, tourism sector is encouraging grey tourism in the Greenwich so that more and more old citizens can be attracted. There is a growth rate of 89% from last four years.

Sports Tourism

This is one of the emerging tourism around the world. As per the survey, it has been found that number of traveller are youth and they prefer to have Sports tourism. By encouraging this type of tourism in exotic places will help in developing strong customer base and in developing positive perception among customers mind.

All these tourism have brought several changes in the operations of travel and tourism sector. They have to introduce more facilities in order to encourage the Grey tourism, they have to educate the visitors about the environmental protection for incorporating green tourism. For encouraging sports tourism and several other kind of tourism they have to employ more people which will enhance the employment rate in the UK.

2.2 Analyzing current trend through suitable techniques

So as to evaluate the trend of travel and tourism, research has been conducted which would help in developing strategies in travel and tourism according. In accordance with the case, survey research design has been used and this will help the to identify the current trends. In this context, Greenwich is been selected to be the tourist destination in which culture and heritage will be analyzed within the city. With the help of this study, research evaluates the study cultural tourism within Greenwich and also enables to identify the areas in which they have become popular.

Data is collected with the help of secondary and primary method. In this context, primary data is collected from the tourists and travel operators of Greenwich city and secondary data is collected from the journals and magazines of tourism, online websites and also form the research of previous studies on travel and tourism sector. Inductive approach is chosen to uncover the detail description about current trends of travel and tourism sector. Qualitative research technique has been applied to examine the data through which appropriate information will be evaluated.

Conducting this research through data collection, it can be stated that large number of international and national tourist are attracted in Greenwich cultural tourism. This is because of the inheritance of large number of heritage and other cultural monuments. Establishments of museums and Royal Borough of Greenwich which attract many people who are keen towards the enhancement of knowledge of the various culture. When people get to know about a place more, then they develop positive impact over the mind of travelers. This becomes helpful to attract huge number of customer base and people around the world visit to enjoy heritage, museums, cultural museums, Royal Borough of Greenwich, village of Greenwich which depicts the rural culture, etc. From this study, it can be stated that tourism related to culture is very much helpful and in developing a strong customers base in travel and tourism and also attract people around the world. Travel and tour operator companies are also promoting the Greenwich by their packages which specially concerned with cultural tourism.

Task 3

3.1 Different ways through which travel and tourism can respond to change

In order to assess the purpose and response of tourism industry, there are different organizations which provide similar services among which Thompson have been selected. Thompson is one of the major tour operator which aims at providing their customers with high quality services and that also at affordable price. The best method for examining the internal and external environment and in order to do this effectively, there are different set of tools which can be used and this includes SWOT, PESTLE, Porters five force, etc. BY adopting this tools cited firm will be able to identify the areas in which they need improvement. Through SWOT internal environment can be analysed and with the help of PESTLE external factor which affects the firm negatively can be determined.

3.2 Development of the strategies for travel and tourism business

There are some strategies through which Thompson's business can responds towards the change and facilitate them to enhance their business in better way. Travel and tourism industry of UK should use suitable tools and tactics for marketing. Further, it is required to adopt novel services as well as products. With the help of this, business performance of Thompson can be improved which will further assist in attracting the customers.

Marketing mix and strategies of marketing can be used to overcome the weakness and enhance the business of travel and tourism. This can be done by offering the customized holiday packages which are based on adventures, relaxation, heritage, corporate travel, sports, cultural holiday’s etc. Tourists will be facilitated by these as they will be enabled to select options as per their desire. Government should also decrease the taxes and duties on this sector so that prices are to be decreased. Multimedia advertising, public relations, sales promotion and many other promotional tools are required to be employed by the organization so that it can attract the customers from different places. Thompson Tourism should also focus more towards the leisure and entertainment activities. It can also pay attention to hosting of concerts and events. Further, there can be provision of novel services in night life of country and accompanied by hosting of shows and programs. These help in generation of the interest and needs of tourists.

The another pricing strategy of penetration pricing can also be used by the cited company enhance the business of travel and tourism. Greenwich company can capture the market shares by providing the services like accommodation, transportation, breakfast & dinner and entry tickets to key tourist attraction at a nominal price. As relatively low price will attract more customers and which results in there will be increase in the sale of services and profits of mentioned company.

3.3 Justification provided for the strategies for travel and tourism

Strategies which are chosen to implement in Greenwich for its travel and tourism business helps the sector to make changes and improve their services for tourists. There are various places in Greenwich which form attractive tourist destinations. Also, there is presence of perfect evenings, palaces, museums etc. Hence, if suitable marketing strategies are applied the customers can be attracted in large numbers. Offering of customized holiday packages and services to tourist will satisfy their needs, demands and wants of people according to their preferences and choices. If Customized products and services are provided by the tours and travel agencies, then it will lead to earning more revenues. Further, it will facilitate satisfaction of the customers as their needs and wants will be appropriately fulfilled.

Marketing programs and effective use of promotional techniques will also aware the people from different parts of the world. Decreasing in the taxes and duties charged by the government will have significant influence on the price conscious customers. Thus, with the help of these strategies, travel and tourism business will be able to enhance their services. This will increase their profitability in market. In Greenwich city, the business of travel and tourism can be increased successfully it it brings changes as per the market conditions as well as requirements of customers. Modification can be made in these strategies at regular times. This will help in managing the business. Also, it will help in providing best products and services to the tourist of this area. As, the benefit of marketing mix strategy is that it will allow the mentioned company to effectively promote their services in the selected place. This results in increase in the sales and profit of the company.

The use of the penetration pricing strategy will help the mentioned company in increasing their customer base as well as the revenue. As the low price will attract more and more customers which result in increase in the sales of the company services. Adopting of the penetration pricing strategy will stop the competitors to enter in the market. As this strategy will create quick turnover of the Greenwich company.

Task 4

4.1 Impacts of issues and trends

There are different strategies such as market development, product development and marketing mix strategies. The organisation and destination of Thompson will be affected in the following ways...

Product and service development

Thompson adopt product development strategies which will have significant positive impact on the organization as well as the destination. It is because, wide range of services can be offered to the customers. This can help them choose the appropriate services. However, there can be certain negative consequences of it as well. this is because a number of options confuse the customers. This may lead to the decrease in satisfaction level among them.

Market development

Market development strategies can be adopted by Thompson by targeting the totally new market area. This will help in development of positive image of the company all-round the globe. By carrying out operation of the activities in the new market, the company will be able to target new customers. This will lead to increase in the profit market of Thompson. Further with the help of this, the new destinations could be targeted. Also, expansion of their business activities can be done which will lead to provision of satisfaction to the visitors. However, market development strategies of the Thompson organization also have negative impact. This is because these result into increase in competition.

Market Penetration

The another strategy of market penetration can be adopted by the Thompson as to increase the market share. This can be done by targeting the existing or new customers in the existing market. As this will result in increase in the market share in the existing market. This result in, the cited company can achieve the growth within the existing market.

These are some of the issues and trends which has a major impact on the travel and tourism sector of UK. Thompson company have to spent lot more time in designing the strategies for bringing this kind of change. Thus, it can be said that this is time consuming process but in turn this would result in the favour of this company.

4.2 Consequences of business on failing to respond to change in market

In order to survive in this competitive market, organization must respond towards the change. The same applies to the travel and tourism sector also. This industry is highly fluctuating and the preferences of consumers changes at a fast pace. If any organization fails to cope up with the changes than the consequences are highly adverse. There are different set of issues which are faced by Thompson company if they fail to adopt changes. In this context, following are the consequences which firm has to face...

Decrease in Profits

Performance of organization will highly affect the performance if they fail to adopt the change. This will cause to losses and it also affects the growth and revenue of Thompson travel operator. Firms will have negative impact if they fail to cop up with the change according to emerging trends. In this context, people will not prefer to make use of services which are provided by the organization. As stated above, there are different organizations which provide similar services and they make use of different strategies so that they will be able to attract customers. However, if cited firm fails to adopt the changes, then they will not be able to maintain their revenue. As a result, all the customers who used to adopt the services of Thompson travel, even they will shift to other firms which provide similar but improved services.

Loss of Market Share

If the changes which are prevailing in the environment will not be managed by the Thompson company, then there will be loss in shares. It is important for any organization to adopt change as per the strategies which they want to implement. However, when they fail to do so, than it affects the firm negatively and inversely affects the market share. Organizations should focus on making use of marketing tool so thatthey will be bale to provide their customers with adequate information related to the services which are provided by the firm. Moreover, the demand of customers should be satisfied so that they get motivated only then organization will be able to raise their market share. If the cited company fails to satisfy the customers' requirement, then this results in decrease in the sales of the company. Hence, the market share of the company will fall.

Dissatisfied Customers

The ultimate aim of any organization is to satisfy their customers and in order to do that effectively and efficiently, it is important that they provide their services in such a way that they get satisfied. However, if Thompson company fails understand their customers and do not make changes in their services timely, then customers will not prefer to make use of services which are provided by them. The perception among customers mind will become negative and this will inversely affect the growth and firm will face losses. With this respect, firm should aim at providing their customers with adequate services and make their satisfied. If company fail to respond on the latest trends & issues and also let down in bringing the changes, then the costumers will dissatisfy.

Negative Corporate Image

When the changes are not adopted by the Thompson company than the new advancement will not be introduced. Thus, competitors may get chances to attract the consumers of Thompson and this will negatively impact the image of the company. All the changes should be managed within the organization so that firm will be able to perform their business operations effectively and efficiently. As a result, Thompson will be able to change the negative impact of customers and will be bale to achieve their organizational goals and objectives.

Thus it can be concluded that for getting success in this industry and to create a competitive edge, a travel and tourism business should cope up with the changes and bring changes in their operations and services accordingly. To incorporate changes, marketer of Thompson company must forecast the changes and incorporate those changes in the organization so that customer's loyalty can be retained and potential customers can be attracted.

Conclusion

As per the above study it can be concluded that it is vital for every organization of travel and tourism to exist in the industry as per the latest trends of market. This will help the company to meet the changing demands of customers or visitors. Moreover, it will also assist the company to meet the challenges and issues of this industry. Greenwich, which is one of the emerging tourism destinations is effectively running its business tourism industry. Further, this city adapts the new trend's tourism and also offering the excellent services in every aspect of tourism that is heritage, culture, green, grey, adventurous, etc.

References

  • 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.
  • Blanke, J. and Chiesa, T., 2013. The travel & tourism competitiveness report 2013: reducing barriers to economic growth and job creation. World Economic Forum.
  • Briscoe, G. and Wilson, R., 2003. Modelling UK occupational employment. International Journal of Manpower.
  • Cohen, E., 2004. Contemporary Tourism Diversity and Change. London: Elsevier.

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