This unit is helpful in gaining an understanding on the travel and tourism sector along with studying the factors that influences tourism related businesses. The project manager working with TUI group have been asked to prepare a presentation and report consisting of following areas.
- Understanding the historical development and structure of the travel and tourism sector.
- Determine the influence of local, national and international agencies on travel and tourism sector.
- Develop an understanding on the factors which effect demand and supply in travel and tourism sector.
Globalisation is a crucial concept which is playing a very important role in development of travelling and tourism sector. Earlier it was known that people were not having any knowledge about destinations that are famous in abroad so they use to travel around local destinations itself but after globalisation they get to know about the destinations and people started travelling (Moutinho, 2011). This was a very effective step for the development of economy of country. The organisation referred here is TUI which is a very famous company in hospitality and tourism sector. This report will help in understanding topics related to historical development and along with this the impact of government of this sector will also be covered. Also, the impact of local and national economic policy and effect of demand and supply will also be discussed.
1.1 Key historical developments in the travel and tourism sector
Back in 1945, the main source of employment was agriculture for the most individuals. Between this period, only 'elite' people used to optimised the travelling luxuries moving one place to another. After the revolution in industry, people were expecting more drastic alternation but there were less modification observed in the industry. Industrialisation where made a negative influence on this segments as people were choosing holiday services more likely. In this time, travel agents, tour operators and hotels were working separately. In the recent period of time, most organisation were facing issues due to world war so no-one was deliver much attention to the economical situation of their country.
Between 1945-1979, there were significant change incur in the industry of travel and tourism as this has gain maximum growth in certain period of time. Hotels were considering the consumer demands and started providing different exotics and numerous existing plans in order to make such services available for the different income groups. Operators at transport groups begin new services and offers such as travelling insurance with the assistance of airline ventures. They were also rendering facilities of accommodation that was attracting more potential service user. Before 1980, individual were spending their more free time in holidays opting the services of holidays while paying. These new modification brought various positive alternation in this segment. After growth and technological development in this segment, the sector has reached new heights. This has reduced the operation cost as well as also emphasise their target group of market. Living standard of community or UK society was developing so they began to deploy more travelling activities.
In recent era, this segment play major role in the nation's economical development. This sector has been delivering employment to people who are more inclined in business activities such working as business guide, travel agents etc. In this era, the government were not much aware of the promotion and benefits through the travel and tourism sector. Organisation such as TUI render entire types of arrangement of travelling along with transportation, accommodation and many more.
Hence, youth is adopting career in travelling sector as there are various visitor who are shifting from one to other destination for more than one year. They desire to visit entire destination of tourism as well as cater this before the entire world. Photography has crucial role in the succession and promotion of the travel and tourism industry along with the social media. Potential buyer get more attracted toward these promotional activities and become curious for such places. This inspire them to visit and make a trip to certain places.
1.2 Structure of travel and tourism sector
Structure of this sector is the little bit complicated in various countries. It is that sector which does not depend on one location or region, state or sector. They are totally depend on travel arrangement which are exist in other nations. Attraction is one of the major element within the tourism industry, it can be made or prepared. There are various factors which exist in this industry that are not very possible. Along with this, transportation is important part in entire procedure due to this transport, travellers can move from one region to another, in current time period, customers are ready to pay more attention in more amount which provide better services and facilities. This was a time where there are one or two transportation mode which are available but in the recent era buyers can move towards one to another with the help of airline, cars, trains, etc. TUI group has includes 150 aircraft, 14 cruise liners. Travel agents and tour operator are determined as medium between customers as well as organisation like TUI. They are purchasing various types of packages and several brochure and after that sell them at higher price for getting large amount of profitability. Such program and sessions can be sold which directly affect to the customers and also take assistance with agents.
Human elements has provide equal significance if this is compared from attractions. Along with this, employees in hotels, drivers in transportation, etc. are present which is not possible. There are certain factors such as environment, strategies, policies and technology, etc. that are considered as most important part of travel and tourism sector. For the development in the market, organisation are plan to expand their business due to this, organisation are try to expand their business as they are make positive environment bout future scope of this industry.
2.1 Functioning of government and its bodies in tour and travelling industry
Tourism is international developing and formulating industry. This is one of the major sector which help in generating foreign income and revenue rather than import and export industry. The authorities or government has major participation in travel and tourism industry such as political development and market adjusted system. Along with this, travel and tourism sector is mainly affect by taxation policies, environment, transportation system and strategies and also management has been play important role in this sector. The travel and tourism policies are mainly followed by government regarding with social, economic and infrastructural improvement in better manner. They are initiative that laid by authorities are inter governmental, after that encouraging their new high for making friendly relationship and economic growth of an organisation.
Functioning of government – For travel and tourism sector, government frame or imposed some policies and strategies which includes consumer interest, destination, health and safety, mix of trade, infrastructure such as stay places or locations, transportation, leisure services or facilities which attract large number of customers towards their effective goods and services.
Government sponsored bodies – Government has also authorised certain government for promoting their tourism services or facilities. They are giving advise regarding effective marketing strategies which offer opportunities and also consult and cooperate with private industries that attract large number of visitors. It will assist in determining the results and make sure that it is required to movement of travellers.
The principle activity and function of the tourism ministry and on the other hand, government has been sponsored authorised body which is based on planning, marketing, researching, statistics, trade regulations, liberalization and development.