TRAVEL AND TOURISM INDUSTRY INTRODUCTION
In this paper I will be researching on the development of travel and tourism industry, its structure, the relevant bodies which play an influential part in this sector and finally the factors that affect the travel and tourism industry. The travel and tourism industry has undergone a sea change with the advancement of technology which has enabled the travel from different parts of the world more affordable and convenient and enabled the travel industry to uti lise the services of tourism sector for the mutual growth of both industries across the globe. Let us understand the history and the time lines of development of tourism industry from the post world war II era.
Task ± 1 Development of Travel & Tourism Ind ustry
Since the end of World War II the travel and tourism industry has undergone a lot of changes the first International Congress of National Tourism Bodies was held in the year 1946, this was held in London. And this laid the foundation for the creation of international non-governmental organization. This was followed up with another meeting in the year 1947 which was held in Hague, and the temporary Headquarters of the organisation was located in London. This was followed in 1948 by the nationalisation of railways and the creation of the European Travel Commission. The first package holiday by air was offered to tourists in the year 1950. This was followed up the First jet liner which was launched in the year 1952 which greatly influenced the travel in dustry and experienced the outburst of travel growth and movement of tourists to and fro from different locations. In the year 1958 the first Being 707 jet service was launched and it created a big impact which enabled the tourists to travel to long distan ces and in shorter times. The next advancement in the European tourism was when the Hovercrafts were introduced in the English Channel which enabled the easy crossing of tourists from and to mainland Europe this was launched in the year 1968. This was foll owed up with an act called the development of tourism act this was promulgated in the year 1969. The long haul Jumbo Jet Boeing 747 was launched in the year 1970 which enabled the travel to longer distances more comfortable and affordable was introduced. T his was created in conjunction with the Pan am airlines which has assessed that the huge demand created by the influx of more tourists would require a bigger aircraft to increase the capacities and thereby deduct the load on the airports which would enable the replacement of short and small flights. Then in the year 1973 ATOL (Air Traffic Operator¶s License) which was a protective scheme and it mandated that all the companies offering air holiday packages and flights in the United Kingdom are required to hold this license. This was specifically created to protect the concerns of
the travellers who were paying up for the bookings and if there was a failure the same would not be addressed and hence the requirement was raised which ensured the protection of this customers. Incidentally, during the early setting up stages of the ATOL there has been a failure of the Court Line Group which included the second largest tour operator of the time it collapsed in the year 1974. And a lot of tourists were either stranded or were not able to travel due to the collapse of the company. Then the government responded by giving prompt response to protect to all the tourists and customers of the company and then in introduced the Air Travel Reserve Fund Act (1975). The following year saw the launch of Concorde which is considered to be a miracle at that time as it reduced the travel times on the North Atlantic flights by half. Then in the year 1992 the European commission Travel Legislation was introduced. Then the biggest achiev ement in the British Isles was achieved when the Euro Tunnel was finally connected with the mainland Europe. This paved the way for introduction of the Eurostar Train service which has created a faster easy way to travel across the English Channel. Then in the current century the launch of the A380 happened in the year 2006 which had the capacity to carry more number of passengers and on longer routes. As we have seen the history let us now understand the structure of the travel and tourism industry.
Task - 2 Main Sectors in the Travel and Tourism Industry
The main sectors in the travel industry can be classified into three different parts namely Public, Private and Voluntary Sectors. Let us understand this sectors in brief.
They are major groups who decide on the policy and guidance for the growth of the tourism sector in the United Kingdom. This is the government body which is responsible for supporting the British tourism industry. The role of this organisation is to work with the industry and provide the required amount of support. National Parks Association Just consider the case of the National Parks Association which works for the development of tourism by providing different options to the tourists to enjoy their time this in turn provides a livelihood to most people who reside in the surrounding areas of the parks and benefits the council also. The national parks association also conducts different activities like tourism impact survey, this activity gets the students to observe the students to have an idea of the impact tourism has on a particular area both negative and positive. This is carried out using a questionnaire and by observing the patterns of tourist activities in a given area. National Parks Association also conducts certain other activities like scenario playing to understand the needs
and requirements of the tourists in which ever location they are visiting. These are the kind of services that are carried out by the support services in public sector. The structure of these organisations is to basically support them in the advancement of the tourism industry and to ensure sustainable growth of the industry from a long term perspective.
These agencies play an important role in the growth of the travel industry and are the front line that has direct interaction with the tourists. They form part of the group that has a close understanding of the requirements of the tourists and plan their packages and advertise different tourist locations throu gh their interactive communications methods like pamphlet advertising, online advertising in their websites. National Lottery The support services which form part of the private sector are the National Lottery, British Airports Authority and Travel Publis hers they form part of the support services sector in the private domain as they provide the required support to the organisations with the extension of their infrastructure and the national lottery on its part supports the following four causes namely art s, heritage, sport, and the joint good cause of health, education, the environment and charitable expenditure. British Airports Authority on the other hand has been partnering with the local tourism boards to ensure the growth of this organisation and ther eby derive the benefit of more travels by tourists it¶s a mutual win-win situation for both. Hence, we can say that this support services provide the required funds and infrastructure for the development of the tourism industry from a private sector point of view. Hence, we can say that the structure of the support services in private sector for the development of tourism industry and they are basically the driving force behind the tourism sector.
Voluntary sector consists of different bod ies involved in the lobbying and being the force factors who work for the benefit of the tourism sector and the benefit of the respective associations they represent. They are namely National Parks Association, YHA (Youth Hostels Association), National Tru st, ANTOR (Association of National Tourist Office Representatives), FTO (Federation of tour Operators), ATOC (Association of Train Operating Companies), Museums Association, UK Inbound Tourism, Tourism Concern and PSA (Passenger Shipping Association). Let us have a look at one of this organisation. FTO: The vision of the Federation of Tour Operators (FTO) is to ensure the continued long term success of the air inclusive holiday by influencing governments and opinion formers on the benefits to consumers and other
stakeholders of air inclusive holidays compared to other forms of holiday arrangements.
Task ± 3 Factors affecting Consumer Choice in Choosing UK Destinations
The major factors that affect the travel and tourism industry are Weather conditions, Economic activity, health concerns, terrorism, Currency fluctuations, Let us understand each of them in brief. Climatic Conditions: Climatic Conditions play a major role in the travel and tourism industry as people would require more ve nues to decide on the travel depending on the weather conditions and the locations of their choice. The frequent changes which are observed of late had a major affect on the tourism and travel industry due to severe fluctuations in the temperature, which is preventing lot many people from moving and visiting different tourist locations.
Economic activity: The recent recession which was followed by severe job losses to many people had a knock out effect on travel and tourism in the United Kingdom as lot many people have stopped travelling and have started to adopt thrift measures to sustain this down turn. This has created a vacuum in the industry with lot of cancellations or no new bookings being received for the last twelve months. However, as the economy is lifting back to normalcy there are signs of some improvement which can be noticed in the travel and tourism industry as well, which are still small off shoots. However, they are a positive sign for the industry. Health Concerns: The other major concern faced by the industry is the issue of spread of health disasters like SARS, H1N1 Flu which severely affects the travel and tourism industry and bring a lot of resource curtailment due to this factor. Currency Fluctuations: The changes in pound value have an impact on the travel and tourism industry as frequent fluctuations create instability and affects the planning activities of the tourists and also to an extent the tour operators as they would have factored in the current rate of pound and would have co llected the cost of travel accordingly. However, the changes in the currency value would create a negative effect and would force the tourists / tour operators to adopt various methods or curtail their plans which would have a negative impact on the overal l tourism industry.
Task ± 4
The other factors that are affecting the travel and tourism industry are the political and environmental factors. Let us have a look at how they impact the industry:
Political Factors: Regional differences and policies adopted by the governments have a major impact on tourism industry like restrictions imposed on travel, visa regulations, tax policies and luxury taxes would discourage tourists from travel and hence would create less revenue. Hence, political factors play a key role in the growth of the industry. Environmental Factors: Environmental concerns are raising and tourists are becoming aware of the same, some places which are perceived to be non environmental friendly are being dumped by the tourists as they do not want to visit or support such. On the positive side national parks authority has been relentlessly working towards the proper upkeep of its parks to ensure that both environment and the tourist industry can be sustained with equal importance. This is a classic example of how both should be integrated to ensure that the tourists can enjoy the beauty of the natural atmosphere even in case of huge travel to one location by tourists.
World Tourism Organization, About UNWTO http://www.unwto.org/aboutwto/his/en/his.php?op=5 Civil Aviation Authority, History of ATOL http://www.caa.co.uk/default.aspx?catid=1080&pa getype=90&pageid=6494 Civil Aviation Authority, About the CAA http://www.caa.co.uk/default.aspx?catid=286 ATOC, About ATOC http://www.atoc.org/about-atoc FTO, What does FTO do? http://www.fto.co.uk/about-fto/what-does-fto-do/ ANTOR, About Us http://www.antor.com/about_us/
Westdorset, Overview of factors affecting Tourism in the UK http://www.westdorset.com/xsdbimgs/Overview_of_factors_aff ecting_Tourism_in_th e_UK_2007.pdf Naturenet, Impacts of tourism, http://www.naturenet.net/education/tourism.html