Travel and tourism industry is now quickly emergent industry in current complicated market. People in current time are very elegant and passionate for the business as well as to the tours. Tourism is basically a part of lavish services given by diverse organizations across the world. This report focuses on the structure and historical developments in travel and tourism industry of UK. The term ‘tourism’ can be described as the travel for pleasure along with many other services i.e. accommodation, hotel room occupation, amusement arrangements and many others (Evans, Stonehouse & Campbell, 2012).
Key historical and current development in tourism
The travel and tourism industry is growing quickly with the transformation of human behaviors and the expectations. It is observed that the development in the tourism industry was started since 1945. People are interested in spending money for their vacations in different places from those where they have been already. Due to changes in the human behavior and their expectations, the growth in the tourism industry is possible. In the starting period, the growth in the industry included traveling and transport of the goods. Now, tourism not only includes traveling but also the factors that are important for soothe of the customers. From 1960 onwards, there are various factors that must be noticed i.e. increment in the interest of clients for the long tours, inclined free time availabilities, growth in the per capital income of the customers in UK, and various attractive tour packages offered by different organizations etc.
In current time, arrangement of travel sector is influenced by the establishment of various sectors in such sections. New entrants in this industry are providing special packages that are customer oriented so that more business can be brought out of the market. There are various tactics used by the organizations in the travel market. The tourism industry not only includes the traveling services but also manages the facilities for the clients. Along with this, tourism organizations also change the services as per the requirements of the customers. The tourism industry is classified based on the diversification in the business i.e. tour operations, travel services, arrangements of passports and visa, hotel industries, conducting events and conferences, and exploring the clothes and other defined stock etc. It can also be said that with the diversified business, tourism industry is divided into various parts (Evans, Stonehouse and Campbell, 2012).
In UK, tourism industry is the important part in the growth and development of economy. UK is the only country that provides various people across the world and enhances the amount of tourism. British tourism provides the experience of soothing holidays which people can drive by getting away from their daily lives, it is observed that there are various places in the country that are prominent and famous among the tourists and promotes the level of tourism in order to enhance the economic prosperity. During the 18th century, tourism for health became very crucial for UK with various Spas including health-giving mineral waters. High level of income in tourism has spent on the growth of economy of the country that demonstrates the proportion of tourism development. After the industrialization in UK, travel has become more affordable and easier. There are ranges of people that contribute huge resources in order get luxury travel and tourism services (Martínez-Ibarra, 2015).
In ancient time, rich people spent their time in making tour in different areas. In the medieval time, the tour to pilgrimage area came into existence. This made the significant presence of the tourism business among all the travelers. In 18th century, the health and culture played an important role in the growth and development of tourism business. People who have sufficient income were able to avail tourism packages. Further, in 19th century, the tourism industry in UK has been gaining popularity among large number of travelers. The improved income level of people in the tourism industry was also improving their spending desires. At the same time, the commercial aircrafts also came into continuation. Along with this, there was the growth in the railway and charters that increased the number of tourists in the country. Next, in the 20th century, the growth and development in hotels, transports, and resorts attracted the travelers to the famous destinations (Boniface, Cooper & Cooper, 2012).
Reason to select particular destination
The reason behind selection a tourism destination is an important area in the tourism literature. It is observed that tourists maximize their satisfaction while selecting a range of destinations, services and goods. The key factors while making decision for destinations are the preferences and expenditure budget of the tourists. Along with this, the decision making process of the customers can also be analyzed on various factors. According to Honer and Swarbrooke (2007), there are some internal factors i.e. lifestyles, hobbies and interests, personality, past experiences and attitudes etc. and some external factors i.e. availability of appropriate services, word of mouth, offers and promotions, climate etc. All these factors have significant impact on the selection process of destinations (Crouch, 2013).
Price is significant driver in terms tourism trips and prices paid as there is the average price for a foreign holiday. Since the year 1995, prices of domestic and foreign holiday have risen faster as compared to the consumer price index. It is also observed that the foreign holiday prices are also increased from the year 2000. The demand in tourism can be described as number of tourist in the destination on specific time.
The notion of demand in tourism consists of those factors that enhance the ratio of tourism in the country. Environmental factors have significant impact on the decision making process while scheduling to travel. Along with this, civilizing and political have both positive and negative impact on tourism and openly impacts on the demand of tourism. The demand of travel sector in UK has enhanced after the event of London Olympics 2012. Further, there are a range of famous tourist places in the country that increase the demand for travel and tourism. In UK, the demand for cultural tourism has also increased after the success of Olympics and tourist are much attracted towards the Albert and Victoria museum in London (Hall, Scott & Gössling, 2013).
Push pull factors
There are some push-pull factors that can impact on tourism as well as repeat visit. Such information is important to enhance the marketing strategies and identify the most important customers need to target. Visiting foreign countries is always excited for the people as they are not familiar with but like to experience, always gives them excitement to travel. Along with this, food and market are the pull motives that are important factor in the tourists’ decision making. Good weather is also considered as the crucial factor. Some push factors are quality and credibility of message services and spa as that is only available in high markets (Becken, 2013).
Every destination provides range of products and services in order to attract the customers. Based on destinations’ point of view, it is crucial to understand the reason to choose particular destination by the customers. By the analysis of tourists’ motivation, various factors like satisfaction push and pull motivations and destination loyalty can be analyzed. The decisions of tourists are complex. In order to understand the complexity of tourism, it is very important to understand the interactions available between environment and tourism (Harris, Williams & Griffin, 2012).
Income level: One of the key factors that impact on the demand of tourism is the income level of tourist. It is clearly observed during the past years that flow of money is very effective to enhance the demand of tourism. But, at the time of recession, travel industry is also affected the most.
Development in the security program by government: In the country, development in government security programs and tourist benefits also impact on the demand of tourist services and goods.
Demographic: The changing demography of the customers has significant impact on the demand. The reason is that tourists now have higher spending power including high traveling frequency and high number of young customers. These factors basically shape the demand in tourism in the positive manner (Leslie, 2012).
Fluctuation in currency rate: Declining rates of currency in the particular country also attract the travelers to select that particular destination as they would be able to get more services in low rates in that country. For instance, the currency rates would fall as compared to US dollars then there will be high demand of tourism in America from UK (Durbarry, 2011).
Globalization: New and increased trends of globalization and movements of tourist and service providers in various countries has increased the demand in the travel sector so more customers are going in various countries. So, globalization has generated high demand for the service in UK travel sector (Blake & Jiménez, 2007).
Elements to develop new destination
There are basically six elements that are considered by the tourists while making selection for new destination. Tourism destination can be described as the area that is selected by the travelers which meet all the requirements of tourists i.e. accommodation and entertainment. According to Buhalis (2000), there are ‘6As’ of tourism destination that are helpful in selecting a new destination. Those factors are attractions, access, accommodation, awareness, amenities and available package.
Attractions- Tourists are motivated to leave their residential place and travel to various destinations. Tourist attraction is the place of interest where tourist visit including exhibited cultural value, natural beauty, historical significance and delight opportunities. Some example of tourism attraction are monuments, historical places, art galleries, botanical garden, buildings and structures, ethnic enclave communities, carnivals, cultural events, theme parks, national parks and forests etc. Along with this, many tourist attractions are also landmarks.
Access- Transport is important to physically move tourists from one place to another. At the global level, air transport is popular among the international travelers. In UK, roads and private vehicles serve as the important form of access. Sealed roads provide higher opportunities for vehicle access. Healthy ground touring sector is also needed to serve the requirements of tourists who do not prefer transportation themselves (Albalate & Bel, 2010).
Accommodation- All the tourist destination require accommodation nearby otherwise tourist have to face many difficulties in the selected country. This is the basic need but investor will only invest in the accommodation on the condition of high economic return. Many areas in UK have excellent attraction point with tourist attraction. The successful accommodation depends upon providing right type of facility in order to meet the needs of tourists.
Amenities- These services that is important to meet the requirements of tourists while they are planning to travel. This service includes retail shopping, public services, restaurants and café, telecommunications, visitors’ centers and emergency services. In UK, many of the amenities are provided by government with local, state and national agencies. In such service, high degree of co-operation in required in order to meet the needs of the tourists (Buckley, 2012).
Awareness- With the best attractions, access, amenities and accommodation, awareness is an important factor. People must have a positive attitude toward tourism. Those who directly interface with the tourists should have positive and strong attitudes towards tourists. This consists of road houses, shops, post offices and those businesses that come in the contact with the travelers. Along with this, awareness also includes market awareness as the image of that particular destination in the mind of the tourists (Dredge, 2015).
Available package- This factor includes the items related to the available packages in the particular tourism destination. Packaged tours organized by travel agents and that must be attractive to target the tourist.
Organizations involved in ‘Tourism supply chain’
It is understood that tourism is the big segment of different industries and organizations are trying to provide the best services in the diversified manner so that high amount of business can be captured in the market. Tourism in UK can be affected by various factors including prices of the services and goods purchased by the tourists, prices of foreign holidays and spending income. Along with this, weather is also an important factor affecting tourism in UK. The decision making process is affected by the number of internal and external factors. Tourism can be seen as a simple concept and there are various interacting factors that have significant impact on the tourists’ motivation. Government has crucial role in the functions of tourism sector. Tactical decisions are taken by the government of UK in the supply chain process in order to ensure the economic and social growth. The involvement of government in the tourism sector is significant to enhance the demand of tourism in the country. With the government, there are some organizations that are engaged in the supply and demand of tourism in the country. Those organizations are as follows:
Local government- Local government of the country is responsible for the demand and supply of tourism sector. In initial days when railway started providing the transportation services, the tourism industry started achieving success. The local government operates in the way alike to the national government. Travel industry is private industry and expansion of the hotels and resort is initiated by UK government in order to enhance the demand of tourism (Delaney & MacFeely, 2013).
International organization- There are various international bodies including government sponsored with the interest of tourism. Government bodies focuses on the tourism intervention. In UK, the organizations are responsible to enhance the tourism activities with coordination and cooperation at the national level. The main sector of industry bodies focus on enhancing the modes of transportation in the competitive circumstances. Thus, combined tourism approach is used to sustain the demand of tourism.
World tourism organization- The world tourism organization is the specific organization of United Nations and famous organization in the field of tourism. The organization puts efforts to strengthen the connection with government and non-government partners by the system of membership in order to take competitive actions in tourism sector.
Tourism is the fastest growing industry in all over the world because of diversified culture. People want to explore new places by traveling and tourism industry develops it by fulfilling the requirements of tourists in all over the world. Tourism is actively provides benefit to the country socially and economically. There are various aspects of tourism i.e. function of government, structure of tourism, international agencies and government structure and bodies that impact on the economic policy of UK. The factors also impact on the demand and supply and tourism by attracting the tourists in the country.
Albalate, D., & Bel, G., (2010), Tourism and urban public transport: Holding demand pressure under supply constraints: Tourism Management, 31(3), 425-433
Becken, S., (2013), "Measuring the Effect of Weather on Tourism: A Destination- and Activity-Based Analysis", Journal of Travel Research, 52(2), pp. 156-167
Blake, A., & Jiménez, I. C., (2007), The Drivers of Tourism Demand in the UK, accessed on 16th March 2018 from https://tourismanalysis.yolasite.com/resources/Drivers_of_Tourism_Demand.pdf
Boniface, B., Cooper, C., & Cooper, R., (2012), Worldwide destinations: the geography of travel and tourism, Routledge
Buckley, R., (2012), Adventure Tourism Management, Routledge
Crouch, G. I., (2013), The study of international tourism demand: A survey of practice: Journal of Travel Research, 32(4), 41-55
Delaney, J. &MacFeely, S., (2013), Extending supply side statistics for the tourism sector: A new approach based on linked-administrative data: Journal of the Statistical and Social Inquiry Society of Ireland, XLIII, pp. 136
Dredge, D., (2015), Policy networks and the local organization of tourism: Tourism Management, 27(2), 269-280
Durbarry, R., (2011), Tourism taxes: Implications for tourism demand in the UK: Review of Development Economics, 12(1), 21-36
Evans, N., Stonehouse, G. & Campbell, D., (2012), Strategic Management for Travel and Tourism, Taylor and Francis, Jordan Hill
Evans, N., Stonehouse, O. and Campbell, D., (2012), Strategic managemen: Jor travel and own, Taylor & Francis.
Hall, C.M., Scott, D. & Gössling, S., (2013), The Primacy of Climate Change for Sustainable International Tourism: Sustainable Development, 21(2), pp. 112-121
Harris, R., Williams, P. & Griffin, T. (2012), Sustainable Tourism, (2nd), Taylor and Francis, Burlington
Leslie, D., (2012), Responsible tourism: concepts, theory and practice, CABI, Cambridge, MA; Wallingford, Oxfordshire
Martínez-Ibarra, E., (2015), Climate, water and tourism: causes and effects of droughts associated with urban development and tourism in Benidorm (Spain): International Journal of Biometeorology, 59(5), pp. 487-501.