Travel and tourism refers to spending quality time by discovering new destinations along with gaining knowledge. In the current scenario, travel and tourism industry is playing significant part in GDP of world and particular locations. People are also spending more money to visit the new locations which are famous and have vital impact due to historical and modern approach. The travel and tourism industry is at the peak of all time as every destination is having high booking and numbers of visitors. The Edexcel Unit 6 Contemporary issues in Travel Tourism Assignment will analyze issues that driving changes in travel and tourism industry and resources for Dubai. In the next part report will evaluate the current trends that influencing the changes in UK travel and tourism industry and techniques for UK based destinations. Moreover, the report will analyze how could the UK travel and tourism industry respond to changes and proposed some strategies for development. At the end, report will analyze the impact of issues and trends driving the changes in travel and tourism sector and likely consequences of business.
1.1 Current issues in Dubai travel and tourism
Dubai is the most populous city of UAE that emerges as most famous tourist destinations in the current time. The city is being located on southeast coast of the Persian Gulf and boarded by Abu Dhabi on the south, Sharjha on the north-east. The majorly population of Dubai is Asian origin. Dubai has many tourist attractions such as Burj Khlifa, Dubai museum, Bastakia, Dubai Creek, Sheikh Zayed road, Aquarium, Dubai mall and Burj al-Arab. These points of Dubai city are combination of cultural and modern Dubai which is attracting the visitors to visit the city to have luxuries experience (Fuchs and Reichel, 2011).
However the city is hot spot for vacations but the business organizations are also eyeing the opportunity for expanding the business in Dubai as demand of luxuries product and services is high. There are many issues that driving the changes in the travel and tourism sector. Following issues have been identified that driving the changes in travel and tourism industry of Dubai:
- Transportation cost: For travel and tourism activities in Dubai transportation facilities have played critical role as connectivity with all leading international airports and low cost airline services. This is major factor that has influenced the travel and tourism activities of visitors from across the world (Fusco Girard and Nijkamp, 2013). The leading travel and tourism organizations are offering the low budget tour package for Dubai including transportation has significant impact on the tourism business of Dubai. In spite of that cost of the local transportation is affecting the decision of visitors.
- Economy changes: The current economical and currency exchange conditions are also driving the growth of tourism industry of Dubai. Strong financial situations, quality infrastructure, high standard facilities and high rate of currency are helping to improve the travelling activities in Dubai. In addition to this, current economic conditions of country are supporting to develop new market that required for driving the changes in travel and tourism industry of Dubai. On the contrary the fluctuation in the currency rate sometime also declines the number of visitor to Dubai that is affecting the business of travel and tourism organizations. Increase in the taxation leads to the increase in various costs and thus reduces the number of visitors in Dubai. Tourist has been visiting Dubai for spending their vacations with colleagues, families and friends and it enhances the overall profits of travel and tourism industry.
- Technology: Dubai is famous for the use of innovative and advance technology for developing buildings, malls, roads and transportation facilities that gives high standard to visitors and local people. Continues changes in the technology is forcing the travel and tourism organizations to increase the investment in this sector and affecting the financial planning of the organization. According to observation, locations like Sheikh Zayed road, Aquarium, Dubai mall, Burj al-Arab and Burj Khlifa are famous for the use of technology. In addition to this, use of technology in security, monitoring and offering the information is very integrated and systematic which also driving the change in travel and tourism industry of Dubai.
- Environmental issues: For development of travel and tourism industry of Dubai, contribution of other industry like hospitality, food, retail and real estate is vital as high quality services from these industries attracting the people to visit Dubai (Garín-Muñoz and Pérez-Amaral, 2011). On the other hand, development of industries is affecting the environmental conditions and level of pollution which is not beneficial for travel and tourism sector. The leading organizations have office in Dubai which driving the changes in the business as well travelling industry of city. By considering the facts according to environmental survey, it is been considered that change in the climate condition is affecting the business of travel and tourism. In addition to this, high employment rate is also major factor that driving the business activity of city and attracting people to visit the city.
- Holiday trends: From some latest studies it has been identified that holiday trends are another main issue that driving changes in travel and tourism sector. These holiday trends are driving the business of travel and tourism business of industry. The leading travel and tourism organizations are providing exciting offers and packages for visiting Dubai which supporting the business of tourism in city. Peoples are choosing the holiday destination according to their working patterns. They find a unique destination to spend their holidays to achieve relaxation and peaceful time. It has been found that people are much inclined towards spending leisure time at attractive destinations either with their families or for business trips and thus makes selection of Dubai expecting luxurious facilities and location in the tour.
1.2 Current issues and resources in Dubai travel and tourism
According to observation and analysis it is being identified that, different factors are having significant impact on the business of travel and tourism industry. Online sharing of information is helping to find new ways to create awareness about the potential of Dubai in travel and tourism. In current time, it is a major resource for analyzing the popularity, marketing and offering the information about the key places of locations. Dubai travel and tourism industry is using the resources more effective manners in terms of advertising and offering the facts and process to visit the city (Gössling. et. al. 2012). In addition to this, travel and tourism authority of city attracting the business organizations to develop business in city as local people and visitors are travelling to city to buy high quality products and services. This is also a key issue that have significant impact on the travel and tourism activities of city.
The travel business authority of city is targeting people by providing exiting offers and agreements. The hospitality industry of city is known for luxury and high standard services across the world, Burj al-Arab the first ever 7star hotel in world is major attraction for visitors to visit. The hospitality industry is also considered as major resource for development of travel and tourism activities. The hotel sector has attained a strong growth rate of 6.7% in past years and tourism council has started to maintain it by allocating and utilizing the resources.
The graph shows that Dubai is been most visited city as it having good business, real estate and travelling opportunities which attracting people. The GDP growth rate, economical development, employment and good infrastructure are the key resources that have significant impact on the improvement of travel and tourism industry of Dubai. The government of Dubai is also analyzing the future opportunities like sports, adventure and cultural tourism in city and working on these aspects (Govers and Go, 2012). In addition to this, feedback of visitors has been considered for analyzing the issues and factors that affecting and influencing the changes in travel and tourism industry of Dubai. The current position of Dubai travel and tourism industry is strong as it most famous tourist destination in world travel and tourism industry. Adversely, with the increasing concerns of the safety and security of the tourist there is a decline in the visits of the people. It has also been considered as a serious issue for the destination and the tourism industry to the great extent.
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3.2 Strategies to respond with changes
UK’s travel and tourism industry requires improving and implementing strategies which help to uplift the standard of the organization and also to make proper use of opportunities and to meets the goals and objectives. The organization could use different strategies such as social media marketing, campaigns and discount offers of assessing locations. All these strategies are helpful for the organization for their proper management and to overcome the effects of all issues which influencing the development of travel and tourism industry (Gössling. et. al. 2012). However theses strategies would be helping out the organization to obtain the attention of travellers and visitors but it will also responsible to improve the additional amount of financial load on different government bodies. It has been observed that with the change in taste and preferences of the people and the changes in trends, there are many changes in the industries as well. This is because the industry entirely depends upon the customers and it is very much important to make effective strategies according to their needs and expectations only. The marketing activities help the industry in influencing the customer segments to the large extent. The strategy will helpful for the London authority as it makes them capable of developing the business and also obtaining sponsorship from different leading organizations like transportation, hospitality and tourism industries.
As well as management could modernize different places by using present trends in global market that will helps to react with the alterations in more effectual ways along with meeting of consumer needs. Along with this the privatization is also considered as a rising strategy or method to respond with the transformations and improve the profit level by finest utilization of resources. The enlargement of various different locations like parks, museums, shopping markets and clubs could be used as a proper strategy for the organization to achieving excellent performance in tourism and travel industry.
3.3 Justification for strategy
In order to respond to changes in positive manners the management of travel and tourism can use the privatization strategy. This strategy will help to optimum utilization of resources which is essential for gaining more profits. The approach that private organization uses is highly influenced with the online functioning. It gives better control and monitoring of tasks and helps to forecast the factors that would have encourage the demand in global market (Hall, 2010). In addition to this, marketing of key attractions is also required that gives the edge over the other competitors which is effectively promoted by private organizations.
In addition to this, privatization will improve the quality, production, monitoring and marketing activities of travelling destinations of UK. Hence, it is being recommended to travel and tourism industry of UK to improve participation of private sector organizations to encourage the business and respond to changes more professional manners. With the emergence of new entities the tourism market would surely expand and authorities of UK would be able to develop the destination more effectively. The business activities of these private sectors would also contribute towards the advancement in the technology and would effectively attract larger number of people towards it.
4.1 Analyze the impacts of issues and trends that drive change in the travel and tourism sector.
Thomas Cook is a leading organization in travel and tourism business as it is being chosen and analyzes to understand the effects more clearly on the industry. There are wide range of issues and trends which could lay and impact on the tourism business either positively or adversely. The emergence of technological advancements had laid both positive and negative impact on the industry as it made the activities much easier along with the increase in the competitiveness within the industry. The organization is been considered as the most profitable player which offers various services for flight, hospitality and logistics in more than 200 locations worldwide. Organization has utilized internet services for the promotion of their services and also for their business. By this Thomas Cook organization has been succeeded to producing approximately 65% earnings from their online platform (Gössling.et.al, 2012). This excellent rate of earnings had been earned by the organization due to company’s IT team. Thomas Cook organization’s management team had made an association with the vendors and local suppliers. This association is helpful for the organization to enlarge the profitable holiday packages for their potential consumers.
With compared to another airline organizations, Thomas Cook airline industry represents various profitable services to their consumers which is beneficial for the consumers and add additional impression for the firm. The facilities include various fun centres for children, leisure segments and additional choices. With the changes in trends there would be a direct impact on the business of Thomas Cook as the number of customers would be diverted and reduce of level of business as well. Unlike any other organizations, Thomas Cook is also competing from both international and national competitors (Hjalager, 2010). Thus, the management of organization is working carefully to various issues to maintain their position in the market. To overcome the problem of local contenders company’s management is completely concentrated to maintain their relationship with local vendors. Online sales source obtain a crucial role in the formation of earnings for Thomas Cook and the company has also facing several problems in its website. It has been identified that about more than 60% earnings of Thomas Cook is been formed through their online platform and it is considered as a big issue as the website of the organization has been crashed in seasonal peak times and it will resulted as the loss of many travellers (Hall.et.al, 2012). In this situation, the consumes were not capable to access the website of the organization in a proper way and this made them to move on to any other choice and this results as the brand value of the organization has been down in the market place.
To overcome this type of problems and conditions management team of Thomas Cook organization has been associated with APM Compuware. The Compuware Company completely handled the responsibility of company’s online platform and website after that Thomas Cook has observed incredible improvement in production of website because Compuware has make sure about the website services and also make some essential changes in the website according to the latest and innovative technological trends from the market (Hares.et.al, 2010). APM Compuware represented a relaxing experience for the consumers and also introduces a mobile application for Thomas Cook organization. All of these changes are proved to be very positive which is adopted by Thomas Cook in the existing competitive market.
4.2 Discuss the likely consequences of businesses failing to respond to market changes.
Tourism is considered as the largest civilian industry and this industry is also helpful to improve the GDP in economy of the country. Regarding to this, it has been identified that Thomas Cook is a travel and tourism organization which exploring further areas by increasing their business activities through the use of online media in their tourism and travel functions. It has also been observed that Thomas Cook organization has focused on digitalization which could make some issues for smaller businesses (Hall, 2010). In the region of tourism and travel industry it has been recognized that there is increment in tourists from different parts of the globe and they are attempting to reach at the untouched destinations in all over the world. This type of change is enlarging various opportunities for new entrants to obtain their own market share. This increment of travellers is being increased as the individual’s are providing them information about the destinations where they are travel.
Moreover, it has been also identified that latest and innovative technology has playing a crucial role in enhancement of hospitality services in tourism and travel industry. This new phase of the industry should be seen between the travellers and tourists. According to the report of WTO it has been estimated that the total number of travellers and tourists will increase by 200% in the period of year 2020. Online technology is considered as one of the essential factor which influencing the change in the human resources development of travel and tourism industry as the online technology has bring out some essential changes in tickets booking, planning and travelling and looking for accommodation (Hjalager, 2010). This has considered as a big challenge for small tour operators to maintain their shares in market against huge businesses like Thomas Cook. Thus, for organization’s business it is necessary to oversee the significance of internet and design their strategies to fulfil the wants and needs of the consumers in an excellent way.
Selection of an appropriate marketing strategy is essential for the organization to establish a well-known name of company in the market. This is going to helps out organization to magnetize huge number of consumers to their business. It is necessary for business to focuses on their marketing activities as it considered as the major activity which drives the business of Thomas Cook organization. Marketing is also helpful for the organization to represent attractive offers for the customers which enhance their business in the market (Weaver, 2011). According to a research report it has been analyzed that internet has brings various opportunities for the business owners by which they are capable to investigate the strategies which are adopted by their competitors. This will helpful for the business to framing out their business strategies in an most efficient way. It is essential for Thomas Cook to analyze prices and it should be done by the organization in an accurate way. It could be done by the organization after having appropriate analysis of market by considered different packages and the facilities and services which are available in these packages.
From the above report it is been concluded that travel and tourism has major role in current growth and development of employment. The national governments of counties are looking to utilize the opportunities by offering the resources. Report has analyzed the current trends and changes that driving the business of Dubai and UK. Use of technology, economical conditions and development of new tourism trends are influencing the business. Moreover, report has explained factors and strategy to craft improvement and meet the objectives.
Book and journals
Evans, N., Stonehouse, G. and Campbell, D. 2012. Strategic management for travel and tourism.
Fuchs, G. and Reichel, A. 2011. An exploratory inquiry into destination risk perceptions and risk reduction strategies of first time vs. repeat visitors to a highly volatile destination. Tourism Management. 32(2). Pp. 266-276.
Fusco Girard, L. and Nijkamp, P. 2013. Cultural Tourism and Sustainable Local Development, Farnham: Ashgate.
Garín-Muñoz, T. and Pérez-Amaral, T. 2011. Internet usage for travel and tourism: the case of Spain. Tourism Economics. 17(5). Pp. 1071-1085.
Gössling, S., Scott, D., Hall, C. M., Ceron, J. P. and Dubois, G. 2012. Consumer behaviour and demand response of tourists to climate change. Annals of Tourism Research. 39(1). Pp. 36-58.
Gössling, S., Scott, D., Hall, C.M., Ceron, J.P. and Dubois, G., 2012. Consumer behaviour and demand response of tourists to climate change.Annals of Tourism Research, 39(1), pp.36-58.
Govers, R. and Go, F. M., 2012. Deconstructing destination image in the information age. Informational Technology and Tourism, 6(1), pp. 13-29.
Hall, C.M., 2010. Crisis events in tourism: subjects of crisis in tourism.Current Issues in Tourism, 13(5), pp.401-417.s
Hall, C.M., Timothy, D.J. and Duval, D.T., 2012. Safety and security in tourism: relationships, management, and marketing. Routledge.
Hares, A., Dickinson, J. and Wilkes, K., 2010. Climate change and the air travel decisions of UK tourists. Journal of Transport Geography, 18(3), pp.466-473.
Hjalager, A.M., 2010. A review of innovation research in tourism. Tourism management, 31(1), pp.1-12.
Kaynama, S. A., Black, C. I. and Keesling, G. 2011. Impact of the Internet on internal service quality factors: The travel industry case. Journal of Applied Business Research (JABR). 19(1).
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