The Contemporary Travel and Tourism Industry

Table of Contents

Introduction......................................................................................................................................2

The Overview of UNWTO..............................................................................................................3

LO 1.................................................................................................................................................4

P1: Analyzing some leading factors of this industry.......................................................................4

P2: Elements of the tourism industry and their interrelation for creating tourist experience..........6

M1: Impact of each element and correlation to the tourist experience............................................8

LO 2.................................................................................................................................................9

P3: Determining factors of tourism behavior..................................................................................9

P4: Explaining the moods of motivation and its impact on the consumer....................................11

M2: The factors and impacts on consumer decision making........................................................12

LO 3...............................................................................................................................................14

P5: Patterns and trends in the global travel and tourism industry.................................................14

M3: Norm and significant for global tour and tourism business...................................................16

LO 4...............................................................................................................................................17

P6: The factors have an impact on the making new era of searching destination.........................17

M4 Analyzing factors affecting various destination....................................................................19

Conclusion.....................................................................................................................................20

Reference.......................................................................................................................................21

1
Introduction

Tourism is mainly referring to provide accommodation and including activities to the customer
for business purpose. Tourism refers to travels and such activities that people do for pleasure,
business or fun. Travel and Tourism industry is mainly a service provider organization deal to
provide travel and tour service to the customer. The travel business and tourism industry are
broadening day to day and face an international aspect which creates a new destination for
visitors. The World Tourism Organization (UNWTO) is also created factors to develop and
promotion of tourism. This service industry can be productive and lucrative by the grace of some
particular cell or element which key standard of any industry. Those of cell maintain the pathway
to become leading and progressive industry around the world. There also some factors such as
global economy, internet, and technology execute competence in motivation and influence
potential tourist behavior also decide to go on a tour. The travels and tourism industry recently
facing some mobility and trend in international tour and travel business and which have a
significant role in the development of this industry. A marketing manager of any popular
destination has to play global strategy to attract potential visitors and travelers to gain
international development because people are more concern to search for the new location of the
tour. In this specific industry or organization, the marketing manager must investigate those of
factors influencing and ride for observing new location or market dimension. Therefore, the aim
of this report is to focus on travel and tourism industry by collecting and analyzing data for
integrated success of this industry. This report helps to determine those factors which have vital
role for shaping this sector and help to customer destination choice.

2
The Overview of UNWTO

World Tourism Organization (UNWTO) refers to the agency which is trusted for the
development and enlargement of tourism. The UNWTO is a leading global organization to work
in the field of tourism to support and promote the tourism industry. This Unit helps students with
creating an opportunity to search different components and vital factors of this sector and this
industry for making tour destination and they can illustrate that process elements are
interrelating. The goal of this unit for students to perceive the process, formulation, and structure
of contemporary travel and tourism industry. Students can be able to prove and search the
interaction between various components of the tourism industry. This unit helps to search
relation with accommodation, attraction, and transportation elements to determine the
international experience (untwo,2019).

3
LO 1

P1: Analyzing some leading factors of this industry.

Travel or tourism industry refer service business industry which offers different service to the
customer for travel. This sector is gradually broadening also more grower service industry
(Carlisle, 2010). It helps to gain development in understanding and prosperity of the world
tourism industry.

Historical development of travel and tourism:

Grand tour is the traditional trip of Europe undertaken by the upper-class citizen of the countries
and it helps to improve the tourism sectors in the UK and the other countries. It was mainly
organized by wealthy young people of European and the ruling society wat to control the overall
cultural harmony and expansion of its empire (Medlik,2012). This grand tour has an influence on
the tourist choice of destination also make sound tourism culture.

Thomas Cook also a man is considered the pioneer of the international tour company and was a
religious man who creates huge inspiration and light for world travel (Enloe,2014). He first
arranged a train on 5 July 1841 for long day travel and help to shape the nowadays travel
industry.

There some key factors that lead to grower faster the travel and tourism industry include:

Changing socio-economic culture: The development of socio-economic culture and change of

circumstance leads to faster the industry. Well established economy leads people to engage with
travel and tourism. If people earn more than they are more eager with tourism on the other hand
if people earn low and the economy become low then people cut their tour budget. The changing
income of people and more leisure time creates an opportunity for the travel industry for gaining
success (Krippendorf,2010).

Technological advancement: The expansion of technology has a great impact on this particular
industry to develop and make the leading industry. Technology like computer system, mobile

4
communication, internet, and marketing all plays dominating part for the progress of the travel
firm and tour management industry (Castells,2011). Technology makes the industry to obtain
prosperity more rapidly because the customer can easily manage a tour in a short period of time.
The consumer can get an online hotel reservation, online booking, internet banking and online
checking for hotel and travel availability.

Changing Cultural factors: The change in customer demand also make able to go ahead for the
achievement of the tourism industry. Culture of society is getting free and customer creates more
demand for leisure and tour which also a factor of enlargement of this specific industry. Free
culture makes people prosper to engage society deeply and it encourages people to engage with
tourism such as getting service from this sector.

5
P2: Elements of the tourism industry and their interrelation for creating
tourist experience.

Travel and tourism are related to creating and providing service to the customer. Travel means
movement from one location to another and it may be road, sea, and air. Tourism organization is
a service providing industry those of combination of some element relates to serving travel and
tourism (Morgan & Ranchhod,2009). The UNWTO also refers to some elements that relate to
creating the tourist experience.

1. Travel Agent:

A travel agent serves people and potential tourist by providing information on different
tourism location, inform them about many packages, greetings and show overview to budget
and cost of specific travel and tours and service available like currency exchange, insurance,
and car rent (Murphy,2012).

2. Tour Operators:

Another element of tourism is tour operators which provide different tour package to the
customer. They may provide a holiday package with travel by rail or air or road. They may
provide accommodation with hotel, guestroom, and food which can interrelate to create
tourist experience (Page,2014).

3. Information and Guideline:

Information and guideline service refer sharing information to the customer about tour
package, communication, recreational, currency exchange, ticket process, etc. Information
availability attracts potential visitors and creates a tourism opportunity (Heidari & Parvaresh,
2014).

4. Transportation:

Travel and tourism include various transportation medium such as travel with airlines, car
rentals or parking availability, etc. a tourist can attract by various transport service (Evans,
Stonehouse & Campbell,2012). Low cost with maximum quality service, a tourist can take
his or her experience.

6
 5. Tourist Attraction:

Tourist attraction includes the establishment of particular service like particular tourism
location. It may be a wild park, a heritage site, museum or educational institute which can
attract customer to get tourist experience. The ancient or heritage site is now becoming a
more desirable destination for the visitor (Swarbrooke & Page,2012).

M1: Impact of each element and correlation to the tourist experience.

Travel is relating to some aspect such as cultural, economic and social which referee the
movement of people one place to another place for personal or group recreational purpose (Page
& Hall, 2014). The UNWTO refers to some key elements of the tourism organization and which
element interact to serve tourist experience. There is interrelation among elements that execute a
vital role in the progress of this industry and failure to those elements creates downstream to the
industry. These are:

Accommodation: Accommodation service is consisting of providing hotels, resorts,

guesthouses, and apartments to customer. Accommodation service can relate to create customer
satisfaction and attract tourist to be quality insurance (Sparks & Kadampully,2013). It may need
a big invest and complex operation, especially in holidays.

Various kinds of Transportation: Different kinds of transportation are also a mandatory

element of the travel and tourism business sector. Good transportation also plays a big role in
creating tourism experience (Smith,2014). A tourist may choose different transportation based on
their budgets such as road, rail or air transport. Transportation advantage creates a new
destination of tourism and visitors are always eager to go tour.

Travel Agencies: Travel agents provide tour service with hotel booking, car rental, travel
package, and food service. Travel agencies affect directly to the tourism industry by providing
cooperative service and help to become a grower industry. A travel agent is responsible for the
client’s reservation overall tour package. They offer different types of a holiday package with
different charge and tourist can take offer according to their budget (Medlik,2012).

7
Information and guidelines: Information and guideline also a core function of the travel
industry that marks an important step for the tourist experience. This industry can supply the
service of tour network and information to the potential customer to attract them to tour
experience (Eide & Mossberg,2013).

LO 2

P3: Determining factors of tourism behavior

Travel business and tourism sector also grow up with the existence of some business factors.
There have some specific factors which have a great influence on tourism behavior. These
factors lead and make the proper execution of this industry and have a crucial effect on the
overall standardization of the travel organization and tourism service business industry (Chen &
Chen, 2010). Different factors such as push and pull factors that influence tourist habit and
behavior in travel organization and tourism. Push and pull factors find a way of searching and
obtaining new place and destination for travel and tour by providing and attracting people with
specific factors.

 Push factors:

This factor is responsible to force people to go to tour as far s own home and creates
determination among people to just enjoy and feel the actual life with the pure environment.
Push factor creates a condition to force people to travel (Cohen,2011).

Globalization:

Globalization refers to becoming countries to cope up and tie to work such as bonding and how
they relate to making a trade and free economy. The global economy is an important factor in
tourist behavior in the tourism industry. Travel is always considered as passion and luxury
(Castles, Haas & Miller,2013). When people earn more and global economy is high then people
can make many tour and travel. People want more relax and they find to go. On the other hand,
when people earn less and the world economy is lower than people may eliminate tour from their
predetermined budget.

8
  Pull factors:

Pull factor is such of creation and combination of activities which attract people to go a specific
place and creates opportunities. It shows the path of achieving something new. This factor helps
a man to sustain one location by providing and fulfilling actual needs (Landry,2012).

Religious factors

Religious factors relate greatly to tourism behavior. The tourism sector is also highly affected by
the influence of religion. People go tour to capture inner peace in a particular destination such as
mecca, Bethlehem, Kashi and another place which have a direct impact on tourism (Turner &
Turner,2011).

Technological Advancement:

Advancement of technology such internet makes the life of people easy to find. There has a great
impact on tourism. The consumer has the power to get instant news, receives and opinions about
travel and tourism as well as they can know more about car rental facilities, airline ticket
booking and online payment advantage which leads to the customer to choose the destination of
tour and travel and motivate people to tour. People can share their opinion about any hotel or
travel package for social media like Facebook or Twitter or Google (B., & Le,2010).

Personal Budget or Environment:

A personal budget is also a big factor to travel and tourism to customer behavior. People want to
go to tour even the bad economy of a country. They may cut their budget and cut their
destination. Many travel agencies may offer last minute discount to people to travel. Tourist may
catch a discount offer and get tourist experience (Hays, Page & Buhalis,2013).

9
P4: Explaining the moods of motivation and its impact on the consumer.

Consumer motivation is a state of mind that leads to buying product or service to fulfill the
conscious or unconscious need of people. Consumer behavior is always valuable and the
important context of the decision-making process and creates more value for the organization
(Martin & Morich,2011). Consumers are frequently going tour and there is another group who
are motivated by experienced visitors to go tour. There is some motivation model.

Plog’s Model of tourist observe and behavior

The PLOG’S has been described as a reference for designing, planning, and maintaining of
tourism infrastructure and marketing for customer attraction.

 Allocentric (The Wanders) - A tourist who search for innovation and new
destination and new experience to get extremely variety of tourism. The visitors are
fearless to go out and search for new encounters and want to fly away to get a new
destination of tourism (Coghlan,2012). The visitor like to get individual free from all
and focused to organized agenda. He or she be flexible to investigate local territory in
own plans.
 Psychocentric (The Repeater) – A visitor falling in this type is who is come back to
the particular destination again and again. The visitor cannot be excited to discover a
new era of destination. This type of visitor may go tour with family or friends to a
certain destination or ordinary hotel or travels agency (Kozak & Martin, 2012).
 Mid-centric (Combination) – These types are the combination of two types of
visitors who showing the earlier point. They may also fall in two types. This types of
visitor can choose a certain destination of the tour or may go search new destination.

10
M2: The factors and impacts on consumer decision making.
Consumer motivation refers to a situation of mind which leads the visitors to buy products and
services to fulfill their conscious and unconscious need. Tourist behavior also plays an important
role in taking tour service. There some factors that have a specific impact on the decision-making
process for a visitor. These are

1. PLAG’S Model
2. Henley Center Model of Holidaymaking

Henley Center Model of Holidaymaking:

This model leads vital impact on customer decision making process by providing deferent
phase of options such as experience or well-structured environment. It follows some steps to
impact on the customer decision making the process.

1. Recognizing a problem

This model focus on recognizing the problem related to specific travel with external and
internal simulation.

2. Researching Information
It includes the search for information with creates value for an organization and need
to solving a specific problem by internal and external searching of information
including personal sources and public sources of information.
3. Evaluation of competition

This step describes the process of this model which creates pressure to evaluate its internal
and external threats to compete with competitors.

 Bubble Travelers
This types traveler doesn’t have much money and information about destination such
where he or she may go, how they go etc. They wait long to perceive their mind and then
go tour at a particular destination (Decrop, 2010).

11
 Idealized Experience Seekers
This types of traveler are may be experienced outside tour. They are agreeable any
destination and may offer people to go tour.

 Seasoned Travelers
They are more certain about the destination and determined to go tour at a certain time.
They search new and innovative destination (Zhang & Law, 2009).

 Complete Immerses
These visitors have the desire to go to the remote area, culture and legal experience of
local life. They are very organized.

12
LO 3

P5: Patterns and trends in the global travel and tourism industry.

The travel industry has to identify a new pattern and work with to gain more excellence. The
emerging situation and modernization of that particular industry are becoming broad
(Herlan,2018). A niche market refers to the overall subset of market segmentation which
focused on a specific product to satisfy a range of the market. It may be segmented as a niche
market and these are

Adventure Tourism

Adventure tourism means that of tourism which says to go tour t far away from home, remote
area with full of enjoyment and exotic emotions. In this tourism, tourist is more likely to go
beyond the overall pressure of society and try to invent some new aspect of the tour (Walker &
Walker,2011). It is an unusual adventure tourism majority be younger. It includes hard tourism
and soft tourism. Adventure tourism helps the sector by providing some advantages. These are

 Employment Generator
 Foreign exchange
 Economy Development
 Support Local Communities
 Creating Business Opportunities
 Local foreign Investment

Dark Tourism

It refers that like tourism where associated death and life risk and this contains the historical
reference for tourism as a dark site. It is always choice by powerful people who are strong-
minded for going to that of burden place (Macey,2012). Dark tourism creates an opportunity for
nowadays and makes proper destination which helps to maximize the local tourism.

13
As an assistant marketing manager of popular destination, there has some specific role to
execute. There some changing trend be found.

1. Last minute booking is increasing: In recent years, the last-minute booking is as usual
for any tour business. The customer plays this trend to book or confirm at last time to go
destination. The customer wants to know more about that of a particular tour such their
actual service and then they confirm their booking. This trend will create difficulties for
travel organization to execute operations with resources and staffing in advance (Dunne,
Flanagan & Buckley,2011).
2. Travelers are visiting new destinations: It has seen that visitor are eager to go to a new
destination. They want to track on a new area of their thinking and it creates difficulties
for certain popular destination. The marketing manager has to take strategy to attract
customer with supplementary advantages (MacCannell,2013).
3. Ecological and educational tour is a demand: Ecological and educational tour is getting
more demanded among new visitors. Visitors want to go to a touch of nature and learn
about ecology and explore education. Ecology and nature are becoming a more popular
destination for visitors and they spend time with ecology as well as the educational tour.
As an assistant marketing manager, there needs to help to develop an international strategy
(Cross,2011).
4. Travelers enjoy a local experience: In recent time, visitors are more eager to local
experience in the destination. They test the local food, local culture, and lifestyle at the
time of traveling and get a tour. The marketing manager must have to consider these
trends and patterns to make a global destination.

14
M3: Norm and significant for global tour and tourism business.

Travel sector and tourism service providing industry have been facing recent actual patterns to
make global trusted travel industry. The tourism industry needs to overcome those trends for
aching global destination. It makes faster grower and getting more broaden to provide global
travel and tourism service (MacCannell,2013). The UNWTO have observed this pattern and
trends.

Travel for everyone: This pattern is accelerating with grower income and expecting middle-
class people and creates an opportunity for international travels. It is turning already a broader
pattern of travels.

Barriers Persist: Travel impediment or barriers act like any other form of barriers to growth.
Every business grows up with facing factors barriers.

Requesting new experiences: The tour agencies are facing request to experiencing a new
destination. Visitors are more flexible to get the experience of a new destination at their budget
(Morrison, 2013).

History and culture: People are now more concern about their history and heritage. The
marketing manager has to need to focus on destinations culture and history. The visitor is eager
to know about destinations culture and history at overview.

15
LO 4

P6: The factors have an impact on the making new era of searching
destination.
Traveler search new place for the tour by determining some factors which lead them to go to a
certain destination. There are some crucial factors that maintain significance on the travel and
tourism industry. Each factor are responsible for creating business process fulfilment such travel
industry.

Figure 1: PEST analysis, Source: chrisbell.com

It affects to popularity range of international and attracted destination. Some of this factor has
been described below:

Economic Factor: Economic factor include all types of cost, benefits, wages, the law of
economics which affect the overall economics. Economic factors are a very important factor in
the development of an organization. A well-established economy can determine the prosperity of
any country (Hansmann & Kraakman,2017). The world economy has a great impact on travel
and tourism. People are encouraged to go to tour if the economic condition is well unless they
cut off their tour. The economic factor is crucial to create the popularity of the global destination.
Example as labor cost or interest rate of the loan.

Environmental factors: It is also an important factor to leads the range of global destination for
travel and tourism industry. The environment creates natural advantages for any country to
become a popular destination (Boniface,Cooper & Cooper,2016). Environmental advantage

16
creates an opportunity to the grower the industry. Example: Good weather or natural resources.
Green land is becoming a global destination for tourism because of environmental advantage.

Infrastructure factor: Infrastructure factor helps to attract visitors at anywhere if there is

belong infrastructure development. Well designed and developed infrastructure is helpful to
develop a global destination. Example; Africa cannot become a world destination of travel and
tourism because of lower infrastructure development.

Political factor: Political factor is also crucial factors influence the popularity range of global
destination of the travel business sector and tourism industry. Political stability creates an
opportunity for visitors to determine the destination. Political instability creates barriers to
explore tourism industry. Political factors make Nederland and Sweden become a global
destination of travel and tourism. Example: Government policy or the law (Cohen, Prayag &
Moital,2014).

Social Factor: Social factors refers to people’s expectations, their norms and habit of daily life.
Social factor has a crucial and desired a model in the global destination of the tourism sector.
Social factors cause the change of dimension of trends and patterns of international tourism.
Social security help to grow up tourism unless local tourism cannot grow and cannot affect to
popularity range of global destination. Example: Proper education, Employment (Pearce,2013).

17
M4 Analyzing factors affecting various destination.
Travel and tourism service industry provides tourism service to the potential customer such as
travel service, hotel service, car service, offer tour package and provide information about
tourism. Every business industry has cope to up with some vital factors which directly affect the
business organization. Such that the travel and tourism industry, there have some important
factors and have also a great impact on this industry. Economic factor leads a society to prosper
and gain Excellency. Economic factor creates an opportunity to explore business such as travel
and tourism industry. Well, the economic factor may set up all necessary dimension and help to
achieve modern pattern and trends. Europe has become an attractive destination for tourism
rather than Africa because of economic factors (Frank & Cook,2010).

Security factor also plays an important role in determining different dimension and attract
customer by providing social security of visitors. Security concern creates barriers for any
country or popular destination to gain excellence. Comprehensive information also an important
factor. The information tourist needs to available to know about any destination. People are now
a concern to search for a new destination and global tourism try to maintain comprehensive
information to a potential customer (Morrison,2013). The information should available online
for attracting customer and create value for capturing changing dimension and patterns.

18
Conclusion
There are some elements of the travel and tourism industry refer to service organization which
provides travel and tourism service to the customer by such providing hotel service, tour package
service or provides information about tourism. There are some elements of this industry which
play a great and momentous role in the development of the travel and tourism industry.
Transportation is important to a factor which creates an opportunity for traveling business and
tourism industry to make new destination based on customer demand. Good transportation
creates an easy way for the movement for visitors. These elements are accommodation,
transportation, service agents, tourist attraction, and so on. There are some factors which relate to
customer attraction and these have a great impact on tourism behavior. The industry which plays
a great and momentous role in the development of the travel and tourism industry.
Transportation is important to a factor which creates an opportunity for traveling business and
tourism industry to make new destination based on customer demand. Good transportation
creates an easy way for the movement for visitors. These elements are accommodation,
transportation, service agents, tourist attraction, and so on. There are some factors which relate to
customer attraction and these have a great impact on tourism behavior. These elements determine
the process and opportunity for tourism and have a crucial effect on the overall development and
shine of this industry. The factors lead to determine the choice of tourism destination about
where and how to travel and how to create the service available to a particular tourism
destination. These factors are world economy, internet and technology, political sustainability
and environmental factors. There has a link between all elements of this industry to interact with
each other to execute its overall activities. Travel and tourism industry recently find out some
patterns and trends to international tourism. Some of these factors affect directly to the popular
range and making of global destination.

19
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