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Impact of International Companies on Tourism Sector

University: UK College of Business and Computing

  • Unit No: 12
  • Level: Undergraduate/College
  • Pages: 10 / Words 2406
  • Paper Type: Assignment
  • Course Code: R/508/0578
  • Downloads: 574
Question :

Companies of travel and tourism sector want to understand history of tourist destinations as it will help them in expanding their business. They also want to increase their knowledge about various factors may impact tourism sector either in direct or indirect way.  

  • Examine history and structure of complete Tourism sector.
  • Assess the impact of local, national and international bodies on companies of travel and tourism industry.
  • Explain how supply and demand influence tourism sector.
  • Evaluate economic, social and environmental influence of tourism.  
Answer :
Organization Selected : Vodafone


In today's era of sophisticated market travel and tourism sector have boosted very rapidly. In the era globalization people are very smart and crazy towards their work as well as to the adventures. Tourism is not an ordinary services, it is the part of luxurious services provided by different organization all over the world. There are lots of agencies are providing travel and tourism services to people. The big segment of the market is tourism sector which is contributing large to the economy of United Kingdom. There are various factors which affect the tourism factor such as environmental, social, economical and political factor. The whole project is about the history of travel and tourism sector. The report also came to know the structures of travel and tourism sector. The assessment is also evaluating the strategies which overcome the negative and positive impact on travel and tourism. Furthermore, the report also determine the other factors which affect the tourism and travel sector such as technological factors, dynamic working pattern and working force.


1.1 History of travel and tourism sector

The travel and tourism industry is very crucial old industry and in today's it is one of the fastest growing industry over the world. Many people are interested in to purchasing the holiday packages of tourist sectors by which they can get information and knowledge about the tourist destination (Giaoutzi, 2017). People are purchasing these packages of holidays because the facilities given by travel and tourism sectors can be enhance and improved. They help customer's to plan for a tour in an inexpensive price. There is very interesting and unique history of travel and tourism. Travel and tourism did not provide all the facilities which are providing in modern time before 1945. Travel and tourism sector has no share of contribution in the growth of economy. There are lots of so many factors which influence the development and growth of the tourism sector such as better infrastructure, advancement in technology, social and political conditions, amended accommodation services and hygienic destination point and so on. Government bodies also plays a critical role in developing and growth of travel and tourism sector. There are many local and international policies which has great impact on the favour and promoting of travel and tourism sector and sometimes they also have negative effect on tourism sector. In today's era the formation of tourism industry is highly affected by the number of industries developed in travel and tourism sector (DANGI and SINGH, 2017).

The division of travel and tourism sector is in three different parts like:

  • Before 1945
  • 1945-1979
  • 1980 to current time.

Travel and tourism is playing so many roles in operation before 1945 which was not consistent. In 1945-1979 travel and tourism is improved to high level as it boosted free time availability, improved the holiday packaged by providing more appropriate offer to people (Mahrous and Hassan, 2017).


Historical Development


Before 1945

At this time only richer people can travel alone and enjoy leisure and travel.


In this year, the development and growth of the travel and tourism take place. Middle class people also make opportunities of holiday packages.

1980 to current day

In this year, many airlines, trains are offering full travel services like arrangements for holidays, medical, services, hiring car etc.

Number of tourism industry open up to give travel opportunities to people.

1.2 Examining the structure of travel and tourism

The structure of travel and tourism is has been changes and develop from earlier time in compare to current time. Many new ideas, strategies and concepts are developed in this sector. Changes are like travel services which include services which assist people to move from one place to another such as proper convenience facilities to destination point. For example train, buses, taxi, aircraft, vessels, boats etc. are included in travel services. The most important services which have great impact on the boosting the travel and tourism sectors is tourism services itself which includes several activities start from travelling, accommodation, hotels and restaurants and so on. Tourism services are the main structure of travel and tourism sector. Travel and tourism industry is involved in many different activities like conferencing and events. Tourism services not only covered the business of transportation but also the medical facility as well. It is very important to have hospital near to destination point.

Furthermore, accommodation services also have key role in boosting the travel and tourism industries. Accommodation services include the arrangement of stay for the customer outside with the availability and proper arrangement of food facility. Improper facility of accommodation leads to failure of particular destination point. Traveller transport services also plays a great role in the growth of travel and tourism sector. It is the complimentary services provided by many industries in United Kingdom to attract many customers which includes the activities of arrival and departure of passenger (Vanhove, 2017). On the other hand Traveller passport is another structural department of travel and tourism sector that check the passport of each and every passenger and aid in making available to facility of VISA. This department not only give proper guidance but also assist in taking passport in legal manner. Collaboration of private and public sector is also another structure if travel ad tourism which are furnished by the outsiders (Tse and Prideaux, 2017).


2.1 Explain the factors affecting tourism demand

Travel and Tourism sector is extremely affected by some factors that survive in the country. Travel and Tourism sector is straightly affiliated to economic, political and environmental factors of United Kingdom (Sharples and Marcon-Clarke,2017). They generally have a large effect on travel and tourism sector. Any alteration or modification in these leads to impact on travel and tourism industries. People only visit country when they feel secure and comfortable. Furthermore, the need of tourism enhanced when these factors are steady and in better condition. Along with this, there are some more factors that is affecting international travel and tourism need is given as follows-

Political factor- Political conditions largely affect the travel and tourism sector as political interruptions create lots of barriers between the countries which leads to loss in the economy of the United Kingdom. It is very important to make stability in the political factor so that the travel and tourism sector can boosted.

Environmental Factor- Environmental factor is related to the surrounding of the country. Climactic conditions plays significant role on the mind of the visitors as because of natural disasters people used to travel less in that country. But natural distorter in climatic conditions cannot be controlled by anyone (Armenski, Dwyerand Pavlukoviġ, 2018). There are many agencies in UK which are trying to minimise those effect by the efforts which aid in expanding the travel and tourism sector of UK.

Price factor- price factor is the key element which affect the travel and tourism industries of UK. Many agencies of UK is facing intense competition in the market. Pricing factors helps in retaining the customers. Competition is at peak level in the travels and tourism sector, hike in prise decreases the demand in tourism which largely affect the economy of UK (Borg, 2017).

Terrorism- It is most critical and bad factor affecting the travel and tourism of the country. Terrorist attacks leads to decreases in the demand of terrorism as because terrorist attack makes people fear to travel and visit the destination of the country. Attack in India and Paris and US is the best example for this as because of terrorist attack leads to downfall on the demand of travels and tourism sectors.

Income level of people- income level of people is the non price factor which affect the travel and tourism sectors of UK. The increase and decrease in the demand of the people directly affect the tourism industry as because in travelling there is need of money. People are sometimes not accepting the holiday packages from various agencies only because of lack of money.

2.2 Examining how supply has changed to meet the effect of demand

In United Kingdom there are many agencies working for the enhancement of travel and tourism sector as every one has its own supply chain management that assist in controlling its resources. Tourism sector consists of many sectors and provide broad scope of services in order to fulfils the requirement and demands of consumers. Nowadays with the enhancement of edification in the behaviour of people and generate interest toward the amusement and fun in order to get them self out of dissatisfaction life (Nurse, Edwards, and Dookie, 2017). There are many agencies which are doing many efforts to overcome all the factors affecting the demands of tour and travel sectors are as follows:

Offering Environmental Sustainability: UK government is doing its efforts to reduce the carbon emission generated from various industries and transportation as because people wants healthy and green environment. So it is very important to provide hygienic and healthy environment to the people and visitors so that more and more people visit the destination of UK which increases the economy of country.

Pursuing laws, rules and Legislation: As there are so many agencies and tourism industry operating in the United Kingdom. They all are following and obeying the rules and regulation which are set by the government of UK. Rules and laws are very important as it leads to enhancement in the productivity and profitability of the travel and tourism industries.

Unsuitability of political conditions- Political unsuitability leads to great impact on the travel and tourism sector. The reputation of the country is largely effected by the political factor.

In order to control the deduction in the travel and tourism sector.

Enhancing the use of technology- the role played by technologies is very crucial in the development and growth of the travel and tourism sector. Outdated technologies leads to decrease in the tour and travel industries. Technologies plays effective role in the maintaining the relationship between the visitors and the country (Elbaz, Haddoud and Shehawy, 2018).


3.1 Explain the positive and negative economic, environmental and social impacts of tourism

Travel and tourism sector is directly related to political, economical and environmental factors of country. These factors have advanced effect on tourism sector as modification or alteration in any one of the factors leads to whole effect on whole industry of tour and travel. Furthermore, social group plays a critical function in attracting people to move. So individual likely to have more than societal impact rather than the above. As tourism industry is flourishing very fast it is anticipated that it will consist of different optimistic and counter feature. These all factors carry optimistic as well as antagonistic effect.

Optimistic economic benefit includes high rate of income, GDP etc. the image of country is maintained by the efforts of the government so that many people is attracted towards the country. The tax will be impose if there will be rise in the rate if GDP. The revenue of government is increased. By tour and travel of different people from different countries leads to inflows of foreign currencies. These all factors leads to boost tourism sector in UK.

In the aspects of environment it is anticipated that emergence in tourism demand will make government more solicitous towards protective of the environment. It will make power on local bodies to create policy to fresh and protect atmosphere. By proper planning the resources can be conserve to the great extend. There will be full power of authorities of government on environment and society. It creates a better and affirmative picture of country. The quality of environment will be preserved and controlled (Moutinho and Vargas-Sanchez, 2018).

3.2 Explain strategies that can be used to minimize negative impact while maximise the positive impact

Government have made many strategies to minimise or reduce the negative impact of above factors affecting travel and tourism industries which helps in measuring and make some alterations in the services. By measuring and making alteration leads to help in minimizing the negative impact. Furthermore, Government also made up some laws and rules and regulations which helps in increasing the travel and tourism sector. It is very essential to make strategies and plan for boosting the travel and tourism sector as because increase and decrease both have directly impact on the economy of the country. The beating impact is also minimized by interacting with local people to identify the destination point.

Government can also reduce the cost of tourism so that they many customers are attracted towards the destinations of United kingdom. Many agencies and tourism industries are contributing towards society and doping social welfare by proving employment to people which create positive picture of the destination. In boosting the travel and tourism sectors it is very important to make balance between all the factors like political factor should be stable, environmental factors should be stable and the most important is social factor.

Government should also make investment in healthier and easy convenience facility. So that, visitors do not face any troubles in reaching the destination point it leads to positive impact on the tourism sector. Low facility of convenience leads to positive impact on the travels and tourism sectors (Jacob, 2017).

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