After globalisation, travel and tourism business has become one of largest growing sector which enable to improve economic condition of a nation. In UK, the industry highly contribute GDP rate of the country in terms of generating income as every year there is lots of people visits different places. But the industry has faced several challenges which can affect structure of an economy in direct and indirect manner. Along with this, travel and tourism industry is highly volatile in nature, in recent times several modifications had been made in this sector so as to boom up the number of tourists in a certain time period (Baker, 2014). Many places across the globe had seen and had taken several ardent strides for its development. Easy Jet is the chosen organisation is the present coursework.Apart from this, the report will enlighten current issues and trends which have been occurred in this sector. The assignment will be describing different techniques which are being used to understand current trends.
1.1 Issues currently driving change in the travel and tourism sector
Travel and tourism sector is now becoming fastest growing and developing industry across the world. But, in past decades various drastic changes are occurred in terms of development and advancement. It also have given birth to numerous issues which highly influence the entire industry. Thus, it is necessary for management to determine these issues and resolve them as soon as possible (Becker, 2016). Below defined current issues and trends of tourism sector: -
- Terrorism – It is treated as one of the biggest problem in tourism industry because terrorist prefer to visit crowded place in order to fulfil their harmful intentions.UK is still facing such issues, recently many terrorist have blasted the embassy of the nation which also affect individuals mind set to go such places or not.
- Rise in globalisation – Globalisation has positive and negative impact on tourism sector of Britain. It increases awareness between people which results the place is able to attain more and more visitors. As government also has been made numerous modifications in infrastructure of the nation.
- Changes in customers’ needs – In present scenario, needs and wants of customers are rapidly changing and the country also capable to acquire these changes in order to provide maximum level of satisfaction to customers. In context of business associations, they tend towards providing attractive tour packages to clients according to their needs (Cohen and Cohen, 2015).
1.2 Different issues using appropriate methods and resources
Travel and tourism is influenced by different changing patterns and issues. Following are the issues which can be listed down as the one driving the change specific to UK tourism: -
Consistently, numerous noticeable changes occur in science and innovation. Both the organizations try endeavors to embrace mechanical headways in their working society. Occasion hotel makes the utilization of web and web-based social networking offices to advance its plans and draw in more visitors. Reservation and booking offices have turned out to be more helpful and efficient. .Presentation of new upgraded air creates offering quick agreeable flights. This measure is productive for aircraft to draw in more number of customers. Wellbeing and security dangers are constantly present in the nation. Psychological oppression and regular dangers are truly taken care of by both the substances. Simple Jet makes the utilization of high security CCTV cameras and related hardware with a specific end goal to screen its travellers and staff exercises. It guarantees that illicit exercises ought to be recognized and explored at speedy pace. While, Easy Jet takes measures to shield its customers and travellers from characteristic risks like tremor or torrents (Cohen and et.al., 2014). Lodging bunch names security officers to incorporate every one of the issues identified with the wellbeing and security of its guests.
It is outstanding that expansion has critical effect on oil-gas based industries. This likewise improves the cost of air tickets. Because of this, carriers confront dangers of rivalry and substitution against alternate methods for transportation. Carrier administration gets ready systems to settle its customers or traveller. Though, Travelling companies gives offers and extraordinary rebates to the guests to remain with them amid expansion period. Administrators make changes like decrease in preparing expense of lodging staff with a specific end goal to proportionate the loss of reducing cost (Connell, 2013). Through these measures, both the organizations can coordinate with the developing patterns and changes.
2.1 Evaluate current trends influencing change in the travel and tourism sector
Following are the different forms of tourism which also affects from current trends and issues in tourism of UK. These are described as under: -
- In bound and outbound tourism – There are two primary sorts of tourism, in bound and out bound tourism. In which in- bound tourism alludes with individuals who used to go inside the limit of a country. The pattern of inbound of tourism is expanding in United Kingdom. Inbound guest numbers tumbled from 32.8 million out of 2007 to 29.8 million of every 2010 – a fall of 3.0 million guests or 9% out of three years. The quantity of inbound guests has since recouped consistently, and the 2015 figure was an unequalled high (Dickinson and et .al., 2014). Then again, United Kingdom is one of the main five spenders on outbound tourism around the world. Outbound travel is expanding consistently in the United Kingdom alongside household and inbound tourism. Inhabitants of the United Kingdom made 70.4 million outbound excursions in 2016, which is a 7% expansion contrasted with 2015. Excursions taken as occasion remained the principle reason for the outing for UK outbound travelers in 2016 took after by going by companions and relatives and business trips.
- Adventure tourism – It is a kind of niche tourism which includes to explore by having a certain level of risk. Basically, adventure tourism requires specific skills as well as physical exertion. In UK, this kind of tourism is growing since past decades as people seeks to do something out of the ordinary. Adventure travel may be any tourist activity that encompasses with cultural exchange, connection with nature and physical activities.
- Medical or health tourism – It entails with those people who travel one country to another just to obtain medical or any health treatment (Hall and Page, 2014). In past, many individuals usually from less developed nations were referred to other countries for their medical treatments.
2.2 Analyse current trend using appropriate techniques and resources
A specialty market can be clarified as an idea in which the concentration is set over the decent variety, making contrasts and over the separation. The idea of specialty showcase is getting main stream in the movement and tourism industry. Different kinds of specialty tourism advertise are getting famous and these are agro-rustic tourism, experience tourism, sports tourism, gastro tourism, dull tourism, medicinal and wellbeing tourism, green tourism and confidence or religious tourism (Hannam, Butle. and Paris, 2014). There are different favourable circumstances of specialty tourism advertise and these incorporate drawing in the high spending visitors, give guide motivating forces to the nearby groups of UK, decrease the negative effect over the earth and are customary exercises. There are few detriments of specialty tourism showcase and these are there is a legitimate of estimating, age of pay at low level, requires high advertising endeavours and requires prepared human asset. With the end goal of this program dull tourism has been chosen. It is a standout amongst the most prominent composes or type of tourism as the young is indicating enthusiasm for this type of tourism. In this type of tourism voyagers wants to visit places which are connected with the demise, disaster or riddle. The chronicled esteem or the stories these goals hold are fit for pulling in the considerations of the vacationers. The parts of dull tourism incorporate calamity tourism, doomsday tourism, suicide tourism, neediness tourism and despondency tourism. The information for the dull tourism has been gathered from the statistical surveying and from the utilization of the auxiliary asset (Hartmann, 2014). In London there are different goals which has a place with dim tourism and are drawing in the guests and these goals are The Tower of London which was utilized as a jail and zoological garden for keeping creatures like lions and tigers, Jack the ripper visits, Bart's Pathology Museum, Jeremy Bentham's Auto-Icon, Cross Bones Graveyard, Southwark, Highgate Cemetery, St. Martin-in-the-Fields Crypt Café, London Hospital Museum, The site of the Tyburn Tree and The Monument to the Great Fire of London.
3.1 How travel and tourism business respond towards change
It is essential for every travel and tourism company to effectively respond towards market changes or trends in order to get high competitive advantage in a certain time period. In 21st century, rapid changes are being occurred in business environment and it is also compulsory for organisations to acquire these changes as soon as possible if they want to retain for long run in market competition. Easy Jet has conducted SWOT and PEST analysis so as to respond imperatively towards these changes, it is briefly define as under: -
The government of the nation also get hinder by travel and tourism industry due to reduction in illogical tax rates imposed of visitors.
In order to maintain safety and security, UK government also applied various strict laws and policies so as to save people from terrorists attacks or unethical activities which must follow by all travelling companies ( Kim and Ritchie, 2014).
On the other hand, London Olympic 2012 was raised the number of travellers.
The whole economy of UK, since 2008 which has put a huge impact on disposable income of people. But as per the time changes, economic condition of the nation getting is improving.
UK government also promotes foreign direct investments which supports to boom up travelling industry in respect of flourishing its operational area.
But again, the sector is struggling due to high market competition at global level.
It is essential for tour operators, like – Easy Jet to recognise the needs and wants of local communities or customers so as to deliver them higher level of satisfaction,
For example- customers now these days want the concept of empty nester households. In addition, they also become more health conscious. Travelling companies are required to consider such aspects.
Customers’ mind should be setup to answer particular questions of clients. This makes the client more agreeable to movement to new obscure spots absent much stress.
Travel organizations ought to take into account tailor influenced bundle to take into account individual to requests.
As a leading business organisation, Easy Jet have good knowledge of market conditions as well as have all necessary resources to fulfil all tasks.
It have effective work force that is able to offer quality services to visitors of London.
The firm is making less use of digital tools and techniques,
Services which are offered by the company are quite expensive rather than others.
Reduction in tax rates
Eradication of cost of fuel which results to reduces the prices of products,
Changes in technology and economic factors
Political instability and increasing the number of rivals.
3.2 Develop strategies for businesses could respond to change
Changes in business environment are common and have a vast impact on working activities of a business organisation. In order to respond towards changes, Easy Jet has conducted Marketing mix strategy which is briefly explained as under: -
- Product – Easy Jet is travelling agency which provides numerous tour services, flights over destinations within conveyance sector. The firm operates on 500 routes and it has its own 200 aircrafts which moved in 28 nations. Easy Jet has positioned itself as low cost provider airlines. Along with this, the firm also provides online booking services and gaining profits at high margins.
- Price – The firm adopted one way ticketing policy; it means the airline charges one price at market place for any flight in a single time. On the other hand, Easy Jet is being on internet since long term so as to recognise needs and wants of its customers. The pricing policy of the company is based upon market competition, this is because it want to gain high competitive advantage and increase market share in a certain time period.
- Place – The travelling agency provides its services over the globe so as to attain and retain customers for long term period. In today’s era, technology also makes easier the process of reaching target audiences and sell them products or services in an efficient manner,
- Promotion – In order to promote itself, Easy Jet is used its owned website which is offered easily through search engine as well as travel comparison websites. The firm also send emails and text messages to its customers with having attractive discounted holiday packages.
3.3 Justification of these strategies
The tactics which have been used clearly defines that UK is trying to acquire great potential opportunities in order to become most admiring or attractive place in context of tourism worldwide. For this, government is trying to improve its infrastructure, beauty and cultural. Henceforth, application of SWOT and PEST analysis is fundament to do as it will demonstrate all those factors which can affect growth and success of travel and tourism industry. Impact of travel sector to the country’s economy is easily ascertained in respect of generating various employment opportunities. For example- identification of political condition of a nation before developing tour plan supports travelling agencies understand their tax rates and legislations (Luh Sin, Oakes and Mostafanezhad, 2015). Along with this, it also aids to analyse all social elements which encourages tourists to visit at there, so that tourism plan of Easy Jet must base upon values, morale, beliefs of people. By considering SWOT and PEST analysis firms will enable to provide adventurous trips for unique experiences which results reduction in the barriers to travelling. Increasing the regional airports in order to get better connectivity or infrastructure facilities and offering the services at affordable prices.
4.1 Impact of issues and trends that drive change in the travel and tourism sector
Several issues are occurred in travel and tourism sector that are liable for all variations in this industry which results positive and negative impact over the entire global economy. Below discussions several impact which drive changes in travelling sector, such as-
- Increases revenue – In present scenario, travelling companies like- Easy Jet is tend to acquire different form of tourism and trying to deliver them to customers in the best possible manner as per their needs and wants. Along with this, every year a wide range of people visits UK which supports to generate high revenue and contribute in increasing GDP rate of the nation. It also make effective tourism operations in the best possible manner.
- Drive up employment opportunity – As per the discussion, travel and tourism sector is treated as one of the leading sector due to its wide range of area. In also require numerous people who have capability to handle all operations and working activities. Every year, various travelling agencies which requires well skilled and qualified workforce. Thus, it can be said that trends of employment rate in UK are being increased which also improving living standard of people or local communities.
- Promoting better relationship with other countries – Market trends in travelling sector also put a huge impact on improving political relations within two countries. It is also beneficial to increase loyalty and trust upon two economies. Although, there is required proper visa to visit other country as if government of one country allows people to visit then it improve interpersonal relationship of both countries.
4.2 Consequences of businesses failing to respond to market changes
In this competitive era, it is necessary for every business association to make necessary modifications as per the fluctuations within business environment. In addition, the business environment is rapidly change especially the economic environment. So that, it is essential for Easy Jet to acquire changes in its products and services and they should also have to acquire changes in order to remain its leadership over the world. But if the business get failed to respond these changes in an effective manner, then its faces several issues which are stated as under: -
- Customer base – In this modern era, customers’ preferences and needs are getting changed and it is quite difficult to stay them loyal for specific brand. Although, Easy Jet also has several competitors, like – Thomas Cook, Holiday Inn etc. who also provides similar products and services. Thus, it is necessary to retain target and potential customers of the company and for this purpose, management should determine untapped segment of consumers and develop attractive holiday packages (Oviedo-García, 2016).
- Mismanagement – If Easy Jet is not able to respond towards market trends it generate mismanagement in its functionality or operational areas. Businesses get very little to assess that all working activities and practices are performed in well- being manner. Sometimes the situation of improper time management get occurred and affect entire working environment of the company (McKercher, 2016).
- Sales and profitability – Another consequence is losses and attribution that may even lead to situations like – bankruptcy, In simple terms, if business couldn’t respond towards changes then it decreases its sales and profitability. Because due to poor quality of services are also affect customers’ mind set or interest as they do not prefer to poor brand or service. However, lack of market share and eventual loss of money from the on the business front.
From the above discussion, it get comprehended that travel and tourism industry has a vast impact on growth and success of an economy; it provides job opportunities to people in order to improve their living standing. The report has stated that different trends, like – terrorism, globalisation, liberalisation, changes in customers’ needs etc. are the main current trends that have positive and negative influence on tourism sector. Along with this, travelling companies like Easy Jet are required to adopt various forms of tourism to attain and retain customers for long term, i.e. in-bound and out bound tourism, grey tourism, health tourism etc.
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