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Current Situation of Tourism and Travel Sector Sample

7820 Downloads1 I Published: 08 Mar ,2017

What is Travelling and Tourism?

Travelling and tourism is an activity in which people travel from one place to another, visit their to experience the culture, customs and life of other places. In present time, travel and tourism industry is facing few issues and challenges which affects their structure and operation in the economy. To understand the concept of contemporary issues in travel and tourism sector, India is considered as a destination place. India is a famous tourist destination and its popularity is also increasing day by day. In India, there are various places which are important destinations from the tourism point of view, many customers attract towards them. The present report will help to understand the current issues and trends in the travel and tourism sector. Further, this report will include to how the travel and tourism sector respond to the changes. Further in the current report to understand the concept that how organization responds to changes, Thompsons company is considered which is a tour operator organization. It also helps in understanding the impacts of changes on the travel and tourism sector.

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Emerging current trends influencing change in the travel and tourism sector

Development of various types of travel and tourism activities are the major trend of this industry. The various travelling activities are categorized on the basis of types, purpose and territories. The different types of tourism are described below:

Wildlife tourism

In India there are rich forest with exotic and beautiful species of wildlife. There are some species still present which are very rare in the world. All these reasons have boosted the growth of wildlife tourism in India. For this purpose, tourists prefer places like Sariska wildlife sanctuary, Corbett national park and Keoladeo Ghana national park (Anheiser, 2011).

Adventures tourism

This type of tourism is recently growing in India. It includes exotic locales and remote areas which involves various activities. In India, for this type of tourism the tourists prefer to visit places like Himalayas, Sikkim and Ladakh are for trekking purpose. For the skiing facilities, places such as Himachal Pradesh and Jammu & Kashmir are very famous among tourists (Acton, 2012).Adventures tourism

Medical tourism

From all over the world, many tourists are preferring India to gain the high quality of health care in relation to general medical attention and surgical procedures. In this country there are various types of medical institutes present which caters foreign patients and health care facilities are very cost effective as compare to UK and USA (Zhengliang, 2014).

Pilgrimage tourism

This type of tourism is increasing rapidly because India is also famous for its temples, so, many tourist visit famous temple like Golden temple and Char Dham etc. (Dickinson and Mika 2013)

Cultural tourism

India is a religious country and also rich in cultural heritage. Due to this reason, many tourist visit India to experience this for themselves. The different types of festival and fairs of different religions also attract many tourists (Types of Tourism in India, 2010).

Other trends in travel and tourism of India are as follows

Accommodation facility- Improvement and establishment of new accommodation facilities also attracts many tourists towards India. According to culture accommodation many other facilities are also offered to tourists like tents or camp. They can also visit in forts which are now converted in hotel business. The royal havelis and palaces are also converted in hotel which attracts many tourists towards the ancient culture of India. For the accommodation facility other options are also present like villas, hotels and luxury resorts etc. In present time, hostels are also becoming a part of Tourism story of India. For the convenience of lowest budget travellers, hostel option is best for them and mostly it is noticeable in Agra and Rajasthan (Evans, Stonehouse and Campbell, 2012).

Tourists demand- The tourist preference and interests are continuously changing. According to the current demand of the tourists the preference of destination places are also changes like they want to see rural culture of India. This means country has to work hard to meet the demands of the tourists.

New destinations- In current trend, tourists wants to explore new regions in India. For example, In Rajasthan, the rural villages and lesser known places like Pali district is also gaining popularity among tourists. Due to the boutiques set ups, the new places such Deogarh and Chandelao Garh which is a village hotel in Rajasthan.

Infrastructure- In the present time, government of India is spending more time and money in this area to improve its appearance and quality. The improved infrastructure in India are new highways, Delhi metro and new airports in Mumbai. Tourists who want to enjoy the experience near the beach, generally visits destination like this. The south India also attracts many customers towards its beauty (Swain and Mishra, 2012).

Education- In India many medical institutes are large in numbers which attracts foreign students to come in India. The other reason is education is very cost effective in India as compare to other countries (The Latest Trends In Indian Tourism, 2016).

Yoga and meditation- In present time human is more concern about their health. For this purpose many foreigners came to India to learn proper meditation and yoga process. To improve the health and peace of the mind they visit Kerala palace in India because there are various spa therapies are available which are very beneficial (Pirnar and Eris, 2012).

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In India, ministry of tourism has started a campaign named “Incredible India”. This campaign plays an important role in increasing the number of tourists visitation in India.

Thompsons tour operator has responded to the emerging trends in travel and tourism sector

The travel and tourism is the leading and growing industry in in the world which also helps to develop economy of country. This industry also faces few issues and challenges which affects the operations of this industry. The changes are highly changeable in this industry and the the tour operator Thompsons is also facing this challengers which gives impact on his business practices. These changes gives both positive and negative impact on the operations. To attract more tourists towards the organization, cited firm respond towards the emerging trends in travel and tourism sector. The responses are described as follows:

Technology- By adopting the new changes in technology, Thompsons is managing its operations and practices more effectively with the help of big data analytics in cloud technology. With the new trend of internet usage, cited firm develops own website. With the help of internet, tourists can book their tickets online and they can also select their holiday destination tour through the firm's website. The advancement in technology gives the positive impact on the business of Thompsons. By using the technology, cited firm also creates own official mobile app to provide quality services to customers. This mobile app makes the booking process more handy and fast which attracts more customers. Tourists can book their places and tour options in more easy way (Becken, 201).

Environment safety- The increment in fuel prices and scarcity in engine also affects the business practices of Thompsons. For saving the environment, firm focus on the safety of environment and provide opportunities to add places which have natural beauty and natural resources. Company also usage environment friendly products and also influence customers to save the environment (Sharpley and Telfer, 2014).

Globalization- The tourists needs and demands are also increasing with the increment in the globalization. Thompsons tour operator adopts these changes and responds towards this by providing booking process in more easy and convenient way. According the preference and demand, firm also add new destination places in their tours with best accommodations facility. The involvement of new destination places, increased the customer size and productivity of cited firm (Ten Trends Influencing Hospitality in India: How the Game is Changing, 2010).

Future capabilities- Thompsons is also focusing on the innovations, customization and creativity in their products to meet the future expectations. For this purpose, cited firm use the provides the digital technology facility to its customers which will help to enjoy their tour in more effective way (Albaladejo-Pina and Díaz-Delfa, 2009).

External forces- By using the PESTLE analysis strategic tool, Thompsons identifies the changes in external environment of organization because changes in external environment also affects the business practices of Thompsons. The external environment includes political, economic, social, technological, legal and environmental forces. The changes in visa policy affects the business this includes in political factor (Petroman, 2013).

Customers demand- According to the demand and requirement of tourists, Thompsons creates their tour plans. In the tour plans they add accommodation facility, food facility and transport facility according to their demand. For the better convenience all these facilities are provided in better quality which helps to develop customers trust towards the organization. To identify the current trends and demands, Thompsons have to conduct the research in more efficient way (Hall, Williams and Lew, 2014.).

Internal environment- To analyse the internal environment of firm, Thompsons adopts the SWOT analysis tool. With the help of this tool, cited firm identifies their positive and negative things. By using the SWOT analysis tool, firm improve their performance and efficiency and through this tool they also improve their service quality. According to this tool they identifies threats and opportunities. In this cited firm try hard to face the threats in both present and future time. They also grab the opportunities which are identified by this strategic tool because the opportunities are used to create the advantages in business. To improve the performance and productivity, Thompsons reduces the weaknesses and increases the strengths (Paraskevas and Cooper, 2013).

Impact of issues which drive change in travel and tourism sector

The Thompson operates in a very dynamic business environment. The industry has become highly competitive and the changes are taking place on continuous basis. It is witnessing different types of trends and changes (Acton, 2012).

Technology - Trend of online bookings and reservations is on high these days. It all has become possible because internet is easily accessible for the users. The customers can make arrangements for their tours and design packages at any time and from any part of the world. Thompson has also developed mobile apps for the conveniences of its customers.

Compliance with industry rules and regulations – Organization must comply with the industry rules and regulations. For instance there should not be any misrepresentation of information in the tour services (Cazcarro, Hoekstra and Chóliz, 2014). Any kind of fraud or cheating must be avoided.

Strategic Alliances – Trends such as strategic alliances, merger, acquisitions, joint venture etc can be seen in the industry. Organization are adopting these strategic approaches in order to facilitate strength for the business. Thompson group has also done the acquisition of four tour operators like Riviera, Luxitours, Britannia Airways and Gaytours.

Visibility – It is another issue faced by the organization. As a tour operator, Thompson is required to establish its presence on online platforms as well as in form of physical stores. The visibility could be in any form but it should be reflected in effectual manner. It helps in creating awareness about the services among the customers (Gretzel, Wang and Fesenmaier, 2012).

Consequences of business failing to respond

Different types of consequences may arise if the Thompsons fails to respond towards the market changes. These are as follows:

Low profits – The market failures can have an impact on profits. For instance, 2008 financial crisis created a huge impact on the tour operating industry as well as on Thompson (Cazcarro, Hoekstra and Chóliz, 2014). Organization had faced the problems related to reinvested profits for the business. Hence this has created restrictions on the development and expansion.

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Low quality of services – decreasing quality of services could also be the result if the company fails to respond to market changes (Anheiser, 2011). It is important that services are to be improved at regular intervals in order to attain competitive advantages. The tours offered from the company for the customers must be of high standard and quality (Xiang and Fesenmaier,2014).

Impact on branding – Another consequence can be noticed is impact on branding. Failure to responding to changes can lead to loss of reputation. It is evident that Thompson is a subsidiary of TUI group which is a biggest hospitality group in UK (Hall, Timothy and Duval, 2012). The stakeholders associated with the brand carries many expectation. If the company does not able to fulfil them, then it could be a serious threat to the company.

Customer dissatisfaction – Another issue which can arise is the lack of customer satisfaction (Albaladejo-Pina and Díaz-Delfa, 2009). The people would get dissatisfied from the products and services of Thompson. It may lead to loss of sales and profitability also. Customer loyalty is important for the business.

Conclusion

With the help of this it is analysed that travel and tourism industry is growing and leading industry in the world and it also helps to develop the economy of country. The main objective of travel and tourism industry is to satisfy their customers, so, they again and again use their services. Through the changes in the policies, trends and demands and procedure in this sector affects the industry in both positive and negative way. The present report includes the current issues which act as challenges in this industry and also drives the changes in this sector. Further this report help to understand the current trends which influence the changes in the travel and tourism sector. In this context to understand the respond of business towards the changes, Thompson tour operator is considered. It includes the various strategies which are used by organization to respond the changes which are already identified in this report. The cited firm provides various services to its customers to attract them more towards the business. It is very important to for the organisation to adhere with the changes otherwise it may creates or cause the overall reduce the market position and reputation in the industry. It also affects both sales and productivity of the company.

References

  • Anheiser, H., 2011. Cultures and Globalization:Heritage, Memory and Identity. SAGE
  • Blanke, J. and Chiesa, T., 2013. The Travel & Tourism Competitiveness Report 2013. In The World Economic Forum.
  • Cazcarro, I., Hoekstra, A. Y. and Chóliz, J. S., 2014. The water footprint of tourism in Spain.Tourism management.
  • Dickinson, J.E. and Mika, M., 2013. Awareness of Tourism Impacts on Climate Change and the Implications for Travel Practice A Polish Perspective. Journal of Travel Research.
  • Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism. Taylor & Francis.
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