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Travel and Tourism Sector - TUI Group

University: Icon College of Technology and Management

  • Unit No: 15
  • Level: Undergraduate/College
  • Pages: 7 / Words 1728
  • Paper Type: Assignment
  • Course Code: M/508/0547
  • Downloads: 827
Question :

This unit reflect that TUI is the leading tourism industry and they have broad portfolio of travel sector including effect of demand and supply and influence of tourism.

  • Determine the structure and history of travel and tourism industry
  • Discuss the influence of national and local government on international agencies of travel sector.
  • Explain the effects of TUI on demand and supply of tourism sector.
  • Demonstrate the impact of tourism on TUI group
Answer :
Organization Selected : TUI group


Tourism is defined as the activity which is conducted by people for variety of purpose such as education, leisure or business. Travel and tourism industry is recognised as the commercial enterprise which offers holiday packages as well as other facilities to the people at specific destination. In addition to this tour and travel operators also provides several other facilities to customers such as food , transportation and accommodation services with intention to make tourist comfortable. Tourism activities has been executed by the people during the traditional times as well. But with the change in time and situation there has been rapid development has been analysed in the tourism industry. Touristy sector is contribution a lot towards the economic and social development of nation. Tour and travel companies are providing variety of quality services at reasonable price which has allowed firm to attracting the more number of tourists and influence people to support growth of tourism. Tourism sector has played significant role in promoting the destination and supported society in improving the living standard.

The purpose of the project is to developing the history and structure of the travel and tourism sector. It also has emphasizes on analysing the role of government in growth of tourism sector.


1.1 key historical developments in the travel and tourism sector

Earlier tourism activities was only conduct by people in the society mainly for the religion purpose. The first travel activity has been executed by the Columbus sailed westward during the 14th century and the second journey was facilitated by the Ascot Da gamma for the business purpose. The concept of tourism evolved as earlier people travel for the search of food and shelter. Due to the lack of transportation facilities the people in the society has to walk a mile for the search of basic facilities. Considering the condition of the people , the government in The European Union has decided to provide transportation facility to people which has contributed towards the development of tourism. From that time, there has been continuous growth in tourism sectors. As the tourism industry has supported the people in improving the living standards and fulfilling the basic need, the tourism sector is supported by the legal authority in nation . Earlier , travel and tour operators company only conducts the informal tours for the visitors. During the traditional times the travel activities were conducted by people mainly for the religious purpose with the change in social needs , trends , journey has been executed by people for the objectives of relaxation , leisure , education etc. This factor has lead to the increase in demand for tourism products which has allowed the firms to increase sales and generate high profits or revenues. But the development in other things , the travel companies has able to provide formal tour packages to the visitors. The tour operators organisation with the support of the other sectors has form partnership with the purpose of delivering quality as well as addition services to travellers in order to provide them comfortable as well as memorable experience at destination. Continuous development in the economic condition as well as technological has helped travel organisation in providing additional facilities such as online and online booking services etc.

At the time of 16th and early 19th century there has been drastic as well as major improvement has taken place in travel and tourism sector. In the 1841 grand tour was organised by British elite class which has also leaded to the rise in demand for goods as well as services offered by tour operators companies. During the traditional time tour packages were designed by the travel organisation considering the status as well as income level of people in the society. Tourism activities has encouraged people to improve their living standards (Jackson,2008). Change in social trends, need has created demand for development and recreation of travel and tourism industry.

In addition to this emergence as well as development in the transportation system such as:

Sea transport- This transportation choice was implanted in year 1831.Sea transportation option intends to provide memorable experience to visitors.

Air transportation – This transportation facility has been provided to allow travellers to migrate from one destination to other quickly.

With the passage of time there is tremendous improvement in the tour packages provided by travel companies to travellers.

1.2 Structure of travel and tourism industry

Tour and travel organisation are working in coordination as well as cooperation with each other order to provide good facilities and memorable experience to customers. Tourism sector is very big and consists of different segments :

Hospitality- It is recognised that the supporting segment which enables travel companies to provide basic food as well as accommodation facility to the visitors. Purpose of Hospitality segment is to provide the optimum level of facilities to travellers .

Tour operators- These are the organisations which arranges the various facilities for the visitors. Purpose of the Tour operators company is to provide comfort and fulfil the needs as well as demand of tourist at particular destination. Tour operators offers different services in the form of complete tour packages which include food , accommodation , transportation etc.

Travel agents- The function of such organisation is to provide transportation facilities for tourist and advice them about the transport mode which can be used by them for reaching at the particular destination.

Ancillary services- Such types of service include insurance, financial services, marketing, guide etc. are provided by the private organisation operating in tourism sector.

Accommodation – There are different types of accommodation facilities such as villas, cottages , hotels are provided by tour and travel organisation to visitors according to the budget.

Transportation services- Tour companies has able to provides such types of services with the support of transportation industry. Transportation services are provided by touristy enterprise fore allowing tourist to migrate from one place to another (Litvin,GoldsmitandPan,2008). There are some transportation modes which can be used by travellers for moving from one destination to other such as sea , road , air etc.


2.1 Analysing the function of legal authority, government sponsored bodies and international agencies in travel and tourism.

The legal authority in the nation plays important role in supporting the travel and tourism sector in fostering growth and accomplishing success. There are many global agencies like regional tourism organisation, air transportation intends to support tourism sector in expansion and achievement of objectives. Objectives of international agencies are to assist tour operators companies in identifying the ways for minimising the adverse effects of macro environmental factors on business operations (Heung,KucukustaandSong,2011). It also intends to support business intends to support tourism companies in increasing the sustainability in the market and gaining the competitive advantage.

International organisations have to perform different function. The important role of tourism industry is to assist travel companies in promoting products or services, generating brand awareness. These global agencies also support tour operator’s organisations in development of policies. The world tourism agencies has implemented different projects for supporting the travel sector in expanding scope of operations and delivering additional facilities to tourists at destinations. Purpose of the project executed by the global agencies is to increase the energy efficiency as well as renewing energy utilisation by travel companies operating on small scale. Role of international agency is to render information, technology and other resources to Tui company in order to help firm, in smooth functioning of business. Function of global companies is to provide training to the employees in TUI , so that they gain the potential for delivering thee quality and quick services to visitors or customers.

Government in the nation has enforced several policies and formulated some laws in order to provide high level of security as well as safety to visitors. Legal authority in the country has significant role to play in the growth of tourism . One of the crucial function is to formulate as well as implement fiscal as well as monetary policy in order to provide financial benefits to an enterprise operating in tour and travel industry (Christou,SigalaandGretzel,2012). In addition to this role of government is to help companies in promoting products, services and destination. Function of legal authority in nation is to provide infrastructure facility and access to the resources which are required by an organisation in order to facilitate operation in smooth way.

There are some sponsored bodies like World travel and tourism council has aim to promote the industry. The function of this council is to influence legal authority for supporting the travel and tourism company. It also intends is to promote the importance of the tourism. Sponsored bodies are provided funds by legal authority in the nation in order to support the growth of tourism sector.

Visit Britain is recognised as the British authority..Role of this special agency is to promote destination and helps travel companies in development of plans or strategies for attracting visitors. Purpose of Visit Britain is to establish national tourism agency in order to increase the value of inbound tourism (Mehmetoglu,2014). The function of this special council is to help travel organisation in managing their business operations and also tourist at particular destination.

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