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Historical Developments in The Travel and Tourism Sector

University: Icon College of Technology and Management

  • Unit No: 2
  • Level: Diploma
  • Pages: 11 / Words 2651
  • Paper Type: Assignment
  • Course Code: JNB523
  • Downloads: 865
Question :
With the help of this report understanding of marketing concepts in facilitated within the hospitality industry. Also the case of the Delta Air is taken into consideration for which various questions are top be answered such as:
  • Concept of marketing along with impact of marketing on the industry
  • Relevance of consumer market in different market segment  
  • Importance of the components of marketing mix are analysed
  • Pricing strategies and policies are analysed for the industry
Answer :
Organization Selected : First Choice


According to the current market scenario, travel and tourism is considered as a rapid growth sector in the world. With the increase in the economy, people are getting large sum of salary and they are utilising these for travelling (Travel and tourism sector, 2016). Tourism is considered as a big industry and many lot of organisation are establishing their business in this sector. The report will throw light on the historical developments in travel and tourism sector along with this different structure of travel industry is also mentioned in this assignment. Other than this, functions of government and international agencies in travel is included in this report. Local and national economic policy and how it influence the success in the sector is mentioned in this report. Apart from this, factors affecting tourism demand. Lastly, positive and negative impact on tourism is included in this.


1.1 Historical developments in the travel and tourism sector

In England, there are many fascinating and excited places where approximately 30 millions of people visits every year. With the change in course of time, travel and tourism sector has changed. During the period of 1830-40's travellers use to visit Queen's Bazaar that was situated in Oxford Street to see the Royal Clarence Vase. During the period of 1870-80, travellers were attracted by ice-staking, rifle shooting at the time of winters this helped them in gaining maximum popularity. 1880-1910 is considered as the period when travellers wants to explore different and new cultures and for this, many exhibitions were conducted through which visitor got a chance to witness different kinds of products. During the period from 1920-40, during this period Buckingham Place was the main attraction the people use to go there to visit to see the changing of the guard that happened on a daily basis (Mok, Sparks and Kadampully, 2013).

Therefore, from the past it can be evaluated it was during 1945, when the growth in this sectors has been seen. Henceforth, earlier travelling was done only to transport goods from one place to another. From the period of 1960, various factors arises for example interest in long trips, increase in income of people along with the improvement in tour packages attracted more and more travellers towards United Kingdom.

According to the recent scenario, travel and tourism has shown a growth and this happened because of the reason that are provided by the travel companies. For example: Thomas Cook has developed its packages in such a manner that it pull attention of maximum number of travellers and rates they have implemented are very affordable. Therefore, they are following many strategies for grabbing attention of maximum number of people (Morgan, Pritchard and Pride, 2011).

Although the phase and development of travel and tourism was different according to the various time period but they have increased the popularity of the places that are available in United Kingdom. This has helped the nation in generating more and more revenues.

1.2 Structure of travel and tourism industry

This segment consist of six components that are essential for completing the entire process of travel and tourism:

Tourist attraction: This is considered as an main element that pull the attention of maximum travellers. It includes both natural and man-made piece. In United Kingdom, Lake District and Blackpool Beach are the common source of attraction where around 6 million people visit in a year. Alton Tower is the famous theme park that are visited by maximum number of visitors in order to enjoy and spend time with their family and friends.

Transport: For visiting it is required to have a better a proper transport through which travellers can travel form one place to another. This may include air, train, road or water transport. According to a study around 25% of tourist outlay for a trip therefore, travel agency of United Kingdom are providing better services to its visitors (McCabe, Minnaert and Diekmann, 2011).

Tour Operators: They are the one who develop holidays in the form of packages, for this, they negotiate with various transport providers and accommodation. Therefore, they buy in bulk so that they can reduce the cost.

Travel agents: Their prime role is to sell the brochures of different travel destinations so that they can grab attraction of maximum number of people. Therefore, it is important that a better communication can be maintained between tour operators and public this will help them in providing special holidays. In United Kingdom there are various travel agents which are giving suitable offers according to the choices and preferences of the customers at a very reasonable rates.

Tourism development: With the increase in number of visitors in United Kingdom, regulatory bodies have implemented different strategies for attracting more and more people towards them (Paget, Dimanche and Mounet, 2010). For this, many man made attractions were developed according to the different areas. Tourism development gives a large information as per the region and includes various perspective visitors. Visitors can gain knowledge from literature, other than this, it involves promotional activities.


2.1 Analysing the functions of government, government sponsored bodies and international agencies in travel and tourism

Now a days, for a country, travel and tourism plays an important role as by providing them best offers they attract more and more traveller towards their nation. It is well known that the sector of travel and tourism has occupied a vast market area because of which a competition can be seen. Therefore, role of different regulatory bodies are mentioned below in order to understand it in a better manner:

Local Government: In previous times local government were solely responsible for the growth of tourism sector. With the emergence of railway it help the nation in establishing a better transport services and this is also one of the reason that for starting of tourism sector. Thomas and Cook is one of the leading industry that is influencing the local government. A 14% of amount in the form of taxes are paid by the company solely. Other than this, luxury taxes imposed by the local government on public is who wants to utilise the services of travel and tourism sector this is helping them in generating more and more revenues (Xiang and Gretzel, 2010). Apart from this, some of the restrictions are also imposed by the local government so that travellers doesn't harm the property and the functioning of the regulatory bodies as well. Local government is keeping a proper record of the activities and from this, it has been evaluated that 34.4 million visitors came to United Kingdom and with a record of £21.8 billion can been seen. For giving excellent experience, local government are providing better facilities and services.Along with this they are formulating various policies for grabbing attention of maximum number of people.

International bodies: Government of United Kingdom are not only focussing at local level but also providing facilities at international level as well. It is widely accepted that tourism is considered as a great sources for fetching foreign currency at large number. Therefore, to increase the tourism sector it is important to maintain a coordination between the nations this will help them in providing better facilities like visa, Passport, civil aviation and many more (Pulina, Detotto and Paba, 2010).

Therefore, both local and international bodies plays a significant role in generating more and more revenues in given time period.

2.2 Local and national economic policy that influences the success of the travel and tourism sector

Economic policy can have a great impact on the business of travel and tourism as they help the country in generating a large amount of revenues in a specific time period. For example: suppose there is a hotel that comes under the local government, this will help the tourism industry will be given benefits. As with the increase in more number of visitors it will help the nation in generating more and more money (Ekanayake and Long, 2012).

Therefore, economy of the nation can have a direct impact on travel and tourism sector directly or indirectly. Thus, monetary policies formulated by the regulatory bodies not only help tourism sector according to the rules and regulations but also it assist them in exchanging the rates of currency. It may differ from the time to times. During the period of vacations travelling may become less expensive for travellers of different countries.

Henceforth, economy policy plays a vital role in increasing the popularity of travel and tourism. So , it is important that country make changes in their economic system in such a way that it doesn't hamper the activities of travel and tourism. Thus, travel and tourism of Scotland is giving them maximum benefits. Regulatory bodies of the country has implemented policy like economic strategic since 2007 and economic recovery plans that was introduced in the year 2009. It has helped them in tackling the challenges in the economy along with this it has increased the competitive and sustainability of the economy as a result it is reducing inequality. Hence, it is giving them a framework through which they can achieving the goals and objectives in certain time period. As a result it will provide long term prosperity to the Scottish economy (Akkemik, 2012).

2.3 Implications of political change on the travel and tourism sector in different countries

For a country, travel and tourism is considered as one of the important sector as it help them in increasing their revenues which a nation can use for providing better services and facilities. According to the study, it has been evaluated that touristy arrival in United Kingdom has reached to around 922 million in 2008 and it will raise to approximately 1.6 billion by 2020 which is a good statistics.

Tourism and politics can be directly linked with one another thus, they share a relationship and consist of social science of tourism. Therefore, political trends and global economic can affect the entire business of tourism sector. Thus, most of the nation consider travel and tourism as an effective tool for having changes in society. Tourism plays a key role in making proper strategies so that the sector can be grown in an better manner. As a result it will help them in reducing the poverty and unemployment (Polo Pena and et. al, 2013).

There can be many reasons that can hamper travel and tourism sector for example political economy: communal political divide, ethical differences are the key elements that can influence the sector. Other than this, unstability in the political environment also affect the growth in this sector. For example: a recent happening of Brexit has lowered down the growth of the travel and tourism sector. This will continue till any judgement is given by the court of United Kingdom. Therefore, it has provided a lot of positive and negative impact on the number of travellers who wants to visit European countries.

Another example can be taken from the situation of Moscow, Russia because of the political unrest in the country this has a great impact on the tourism industry. Now a days Russia has focussed and managed the consequences of crises as a result it has reduced the inbound tourism. For this, nation is using various mediums for attracting more and more travellers towards their nation. Thus, it is helping them in generating a large number of revenues (del Mar Alonso-Almeida and Bremser, 2013).


3.1 Factors affecting tourism demand

Travel and tourism is considered as an important element thus, it is defined as a term that includes the factor through which level of demands can be increased. There are many factors that can hamper the affect the demands of tourism and they are mentioned below:

Demographics: This is one of the factor that can play an important role in influencing the activity of tourism. Therefore, in context with Scottish they have an effective and fascinating demographical area as compared to other countries in the world. This includes various natural and man made attractive places along with this, it covers big mountains and scenic beauty.

Price factor: It is looked by the visitor so that they can properly plan their trip according to the budget they are having. This includes the prices of travel, accommodation and many more this can differ according to the places and it can be high or low. For example: the range of travelling from London to Paris is around £25 or less but in some situations it can be higher than usual (Martínez, Pérez and Rodríguez del Bosque, 2013).

Non-price factor: This includes factor like image of a destination, this can fascinate people or vice versa. In terms of Scotland it have most of the attracting places in the form of world heritage sites and many more .

Technology: This is considered as the biggest factor that plays a vital role in spreading awareness about travel and tourism sector. It assist the country and travel agencies in reaching to maximum number of people towards their countries. For example: most of the nation make attractive advertisement for pulling the attention of maximum number of people.

Governmental Policy: The sector of travel and tourism is partially regulated by the governmental agencies. For this, they formulate certain policies that are to understand by so as to get effective results (Perch-Nielsen, 2010).

Therefore, all the factors that are mentioned above are required to be fulfilled in order to increase the demands of travel and tourism sector. For this, the country is making Edinburgh Tourism Action Plan for the same but it is not giving them effective results.

3.2 To analyse how supply has changed to meet the effects of Demand

Tourism supply is one of the key element that are to be looked out by the regulatory bodies of the nation who are considered as the host. This includes both natural and man made resources. Apart form this, it includes telecommunication, accommodation and transport which are determined as an important factor and it is important to be followed in order to have effective results. Along with this, travel agencies, tour operator, visitor manager are also important to be concerned.

The concept of “Tourist supply chain” is derived from economy and it help them in evaluating the difference that are required to enter in the contractual agreements to supply chains. Therefore, supply is primarily consist of services that can make the trip comfortable (Laws, 2011). So, by taking permissions from regulatory bodies travel and tourism sector can ease the entire process. In context with Scotland, an increase in number of hotel rooms is benefiting the entire sector as more and more people are coming to exotic destinations in order to enjoy their vacations. Along with this, Scotland, has lowered down the fares of their airlines which is breaking the monopoly and large number of people are travelling from one place to another. Thus, in addition to this they have set certain norms and according to the demands of its clients. Henceforth, for increase the supply of the tickets companies have started providing facilities of online bookings under which anybody can book their tickets form anywhere in the world.

Investment in the campaigns has supported them in capturing a large number of market shares in the world (Mok, Sparks and Kadampully, 2013).

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