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Research paper
http://www.kingstonfoodbank.net/
Strengths:
Weaknesses:
Opportunities:
Threats:
1 – research – what are other foodbanks doing? … who can we
learn from? …who is solving this? What is happening during the
year in Kingston (windows to fundraise)? What have they done
in the past, where are their gaps?
2 – brainstorm – share what you know, (S+W we have) and
where are the opportunities and threats …
3 – best opportunities – bring the best ideas forward … work
them up, develop ideas/strategies – work them through to a few
tactics (short-term, long-term)
4 – small, deliverable … come up with a ‘step forward’ …
5 – write it up
Partnership strategy to proactively get third-party events
Event strategies – a great fundraiser to develop
Take a current event – add to it …
Board development and attraction – to add endowments and
bequests
Other ideas…
Writing it up! STAY STRATEGIC
12pt font – Calibri – spacing 1.5
Page one – cover with your name
Page two – current situation analysis – what is happening, right
now. You may want to include areas of the SWOT, the strengths
and weaknesses. State the area you will ‘tackle’, in hopes of
improving, adding or growing. (one page).
Page three - research – what you found out, site sources (one to
two pages) you should provide the research, and narrate how
this could/would/should/ maybe considered.
Page four – opportunities and threats – forming the strategy for
your fundraiser – within your ‘strategy area’, show the areas
you feel there is or are growth opportunities or development ---
working towards long-term growth and sustainability (one
page).
Page five – THE IDEA – this is where you showcase the
fundraising idea (idea, possible partners, tactics to ensure
success, extra fundraisers at an event to add to the $$$, …) I
can assist you with your deliverable!
Addendums – attach pieces to your presentation, to help
showcase your ideas (if necessary).
Rubric, in short form:
Followed the format, including cover page – 5pts
Professional – 10 pts
CSA – 15 pts
Research – 20 pts
Forming the Strategy for Fundraising – 20 pts
IDEA and the idea work-up/deliverable – 30 pts
Running head: TRAVEL AND TOURISM INDUSTRY OF THE
UK
Research on analyzing Impact of economic and social
environmental factors over business of Travel and Tourism
Industry of the UK
[STUDENT NAME]
[INSTITUTION]
[COURSE NAME]
[DATE]
Abstract
Purpose: Purpose of this research is to explore impact of
economic and social environmental factors over the business of
travel and tourism industry in UK.
Design/methodology/approach: This research is designed
through using exploratory research design under qualitative and
quantitative research formats. Additionally, inductive reasoning
is also used to conduct this research for effective presentation
of data. Content analysis is conducted to analyze the data by
gathering data from primary and secondary sources. Random
sampling method under non-probability sampling strategy is
followed to maintain reliability of the research.
Findings: Results of the research shows that there is wide scope
for UK travel and tourism industry to increase its business in
global marketplace, if, economic and social environmental
changes have been addressed by the firms effectively. Economic
and social environmental factors such as high interest rate,
inflation rate, vat tax, exchange rate, economic policies of UK
government, culture & sub-culture, life style and cultural &
social events have been found that affect growth and business of
travel and tourism industry.
Research limitations/implications: This dissertation is related
with the assessment of the economic and social environmental
changes in UK and with the high number of respondents; it
could be not possible to collect data within limited time and
cost. Additionally, action plan and budget plan should be
followed to reduce the limitations of the research.
Practice implications: Findings are beneficial for UK travel and
tourism firms for increasing their growth and success through
determining the impact of economic and social environment
over the business of the industry.
Originality/value: This study contributed in the literature
related to the economic and social environmental factors that
increases or decreases business of UK travel and tourism
industry.
Table of Contents
Chapter 1 Introduction 5
1.1 Research Overview 5
1.2 Research Background 6
1.3 Research problem 6
1.4 Purpose Statement 7
1.5 Research Aim and Objectives 8
1.6 Research Question 8
1.7 Rationale of the Study 8
1.8 Scope of the Study 9
1.9 Summary 10
Chapter 2 Literature review 11
2.1 Introduction 11
2.2 Structure of UK travel and tourism industry 11
2.2.1 Types of Tourism: 12
2.2.2 Sectors included in Travel and Tourism Industry of the
UK 14
2.2.2.2 Travel Agents: 17
2.2.3 Attractive Places in the UK 19
2.3 Changes in UK travel and tourism from past two decades 22
2.4 Economic and Social Environmental Factors in Travel and
Tourism Industry: 29
2.4.1 Economic factors affecting UK tourism industry 29
2.4.2 Social environmental factors affecting UK tourism
industry 35
2.5 Association that work for UK travel and tourism industry: 38
2.6 Summery 39
Chapter 3 Research Methodology 40
3.1 Introduction 40
3.2 Research Design 40
3.3 Research Approach 41
3.4 Research Philosophy 42
3.5 Data Collection methods 42
3.6 Sampling 43
3.7 Questionnaire 43
3.7.1 Trait of Questionnaire 43
3.7.2 Design of Questionnaire 44
3.7.3 Piloting 44
3.7.4 Statistical data analysis 44
3.8 Research Form 45
3.9 Ethical Guideline 46
3.10 Summary 46
Chapter 4 Findings and data analysis: 47
4.1 Introduction 47
4.2 Findings from literature review analysis 47
4.2.1 Structure of Travel and tourism industry in the UK 47
4.2.2 Changes in UK travel and tourism industry 48
4.2.3 Impact of economic environmental factors over the
business of UK travel and tourism industry 49
4.2.4 Impact of Social environmental factors over the business
of travel and tourism industry in UK 50
4.3 Findings from questionnaire 51
4.4 Summary 59
Chapter 5 Discussion Chapter 60
5.1 Introduction 60
5.2 Evaluation of the findings 61
5.2.1 Changes in the structure of UK travel and tourism industry
61
5.2.2 Role of travel and tourism industry in country’s growth 62
5.2.3 Evaluation of Impact of economic and social
environmental factors over the business of travel and tourism
industry 63
5.3 Recommendations to improve business of travel and tourism
industry 65
5.3.1 Adopt flexible and effective Services 65
5.3.2 Offer Discount and other services 65
5.4 Summary 66
Chapter 6 Conclusion 67
6.1 Summary 67
6.2 Contribution 69
6.3 Limitations and Recommendations 70
References 72
Appendix 1 81
Chapter 1 Introduction1.1 Research Overview
The main purpose of the research is to assess travel and tourism
industry of the UK. Main objective of the research is to identify
the impact of economic and social environmental factors over
business of travel and tourism industry of the UK. So, a
systematic or customized way in terms of chapter one to six is
formulated to attain the objectives of this research effectively.
Particular information that is comprised by particular chapter
can be discussed as follow:
Chapter one is related with the discussion of main objectives
that are base of this research. In this chapter, background and
main purpose of the study is included. Along with this, research
problem is also discussed in this chapter. Research rationale and
purpose is also elaborated in this chapter to present a systematic
way to attain the research objective.
Second chapter is related with the literature review that
comprises of conceptual framework of the research. In the first
portion of this research, theoretical background is included that
is followed to attain the research aim. So, the main terms are
discussed in this chapter.
Third chapter is related with the methods that are followed to
solve the research problem is known as research methodology.
In the research methodology section, various parts are included
such as research philosophy, research method, research design,
research approaches, etc. concepts are discussed those are
followed to reach at the result of this research. Data collection
that is used to collect data is also elaborated in this chapter. In
addition, case study in terms of assessing the impact of
environment on travel and tourism firms in the UK industry is
presented effectively.
In the fourth chapter, findings and data analysis that are
received from analyzing collected data are discussed. Data that
will be collected through case study analysis and through the
response of questionnaire will be discussed in this chapter to
reach at the result of this research.
Fifth chapter is related with the discussion of the research
findings.
Sixth chapter is related with the conclusion and
recommendation part of the research. This chapter shows the
existing impact of economic and social environment over the
business of travel and tourism industry of the UK.
Recommendations to increase profitability and income of travel
and tourism industry are also discussed in this chapter. 1.2
Research Background
In the competitive business environment, competition and
number of competitors are increasing rapidly in every industry
that put pressure on the firms to manage each and every point in
attention. In this, travel and tourism industry is interesting and
full with challenges such as environmental threats (Huybers,
2007). In this context, weather is a supportive factor that
supports or encourages travel and tourism in particular country
(Marvell, 2005). On the customer traffic and booking, climate
has impact in positive and negative manner over this industry.
As in the UK, different economic, social and other
environmental factors are included under the factors that have
impact on the business of travel and tourism industry in positive
and negative manner such as demand, income level, culture,
pollution, safety, security, peaceful environment, cultural &
historical place, etc (World Tourism Organization and United
Nations Environment Program, 2008). 1.3 Research problem
In the present business environment, competition is increasing
rapidly that has changed scenario of running the business in the
marketplace. At the same time, present market condition as well
as environment also has impact on the business that makes it is
critical for the firms to stay in a good position with attractive
customer base and high profit. Various problems have been
faced by the researcher throughout this research that is related
with identifying the impact of environment over travel and
tourism industry of the UK (Huybers, 2007).
Several problems are described by various authors in this
industry that are faced by the firms to run their business
successfully. In the travel and tourism industry, the impact of
current trends and environmental pollution also presented that
also affects the business of the firms that run their business in
this industry (Holden, 2008). So, to analyze the impact of
changed environmental condition on the travel and tourism
industry of the UK is included under the research problem
(World Tourism Organization and United Nations Environment
Program, 2008).1.4 Purpose Statement
Main purpose of this research is to increase knowledge and
literature about the travel and tourism industry of the UK.
Along with this, another purpose of this research is to analyze
the impact of economic and social environmental factors on the
business of travel and tourism industry in UK (Marvell, 2006).
So, it can be argued that the main point of this research is travel
and tourism industry of the UK. Along with this, it can be also
stated that economic and social environmental factors are
important part of the travel and tourism firms that can be used
by them as a supportive tools to increase the customer base and
income of the companies (Huybers, 2007).
Along with this, high competition and use of effective &
supportive strategies encouraged the tour and travel firms to
develop their strategies to attract the customers and increase
business and organizational growth & success (Schwab, Blanke
and Chiesa, 2008). So, to attain the objectives or aim of the
firms, different supportive and effective frameworks are
developed as well as used by these firms according to the
economic and social environment and culture of the UK (Dale
and Oliver, 2005).1.5 Research Aim and Objectives
Main aim of this research is to evaluate the impact of social and
economic environment over the business of travel and tourism
industry in the UK. This aim is attained through following some
objectives. These objectives are as follow:
1. To analyze the structure of travel and tourism industry in UK
1. To evaluate changes in the business of UK travel and tourism
industry from past decades
1. To assess the impact of economic and social environmental
changes over the business of travel and tourism firms in UK
1. To recommend a robust framework to determine growth for
UK travel and tourism industry 1.6 Research Question
1. What is the structure of UK travel and tourism industry?
1. What changes in the UK travel and tourism industry have
occurred from last two decades such as from 1991-2000 to
2001-2010?
1. Which economic and social environmental factors affect and
their impact on business of travel and tourism industry in
UK?1.7 Rationale of the Study
Environment is an important part of the travel and tourism
industry that has become the reason to attract the customers
towards particular country. In this, economic and social
environment are recognized as most prominent factors that
affect to the business of travel and tourism industry in any
country. To develop understanding and knowledge about these
factors, example of different firms of the UK those are
operating in this industry are taken as a case study section
(Marvell, 2006). At the same time, to increase the growth and
customer base, suitable framework is also supported in this
research. To increase income and profit of the firm, attractive
frameworks are also discussed in this research that will be
beneficial for the travel and tourism firms to increase their
customer base and business in the country (Schwab, Blanke and
Chiesa, 2008). These frameworks will also help the firms to
avoid the negative impact of climate and environmental changes
on this industry by diverting customer’s attention from one
point to another point. Additionally, to enhance the knowledge
about the factors that are included under the environmental
factors, this research is beneficial (Holden, 2008).1.8 Scope of
the Study
The main aim of the research is to assess the impact of
economic and social environment over the business of travel
and tourism industry in the UK. Role of these economic and
social environmental factors in organizational growth and
failure is also included under the aim of this research.
Additionally, to search or identify appropriate strategies for
increasing income of the travel and tourism firms in the UK is
also reflected into the purpose of this research (World Tourism
Organization and United Nations Environment Program, 2008).
So, to conduct this research, several supportive tools,
techniques, concepts and factors are analyzed and discussed in
this research. So, these concepts have wide scope in terms of
identifying factors that support the sustainability of travel and
tourism firms in this industry in good position and increase
income of them into positive direction (Dale and Oliver,
2005).1.9 Summary
Concepts that are included in the overall research are discussed
in this chapter in the form of research overview that consists of
information about the whole research. Along with this, research
background that stands to conduct this research has been also
described in this chapter. After this, main purpose and
objectives of this research have been also elaborated that is
main theme of this research related to the identification of
environmental factors that affect travel and tourism industry.
Rationale and scope of this study have been also discussed in
this chapter.
Chapter 2 Literature review2.1 Introduction
Economic and social environmental factors have significant
impact on the organizational growth and success in terms of
supporting their services and products. Several concepts and
factors are discussed in this chapter. This chapter is important
to enhance understanding about the different aspects and
concepts related to travel industry and its structure. It is also
important to explore the information that would be helpful to
achieve the research aim and objectives significantly. It would
also be effective to determine the reliability of research
findings based on the concepts and theories that would be
identified in this chapter.
This chapter is covered into various sections. In the first
section, changes in inbound and outbound travel and tourism
industry of the UK are covered that comprises of various
aspects that are part of the travel and tourism industry. In the
next section, economic and social environmental factors and
their impact in travel and tourism industry is identified.
Different UK organizations that are working in this industry are
also assessed in this chapter to show the impact of economic
and social environmental factors on their growth and success.
2.2 Structure of UK travel and tourism industry
In the UK, travel and tourism industry is included under the
fastest growing industry. According to Smith and Rowe (2005),
tourism refers to the activities of people that are organized by
the persons in the form of travelling and staying at the place
that is outside from the usual environment, but no more than
one year for business, leisure and other purpose.
As discussed by Department of Culture, Media and Sport (cited
in Smith and Rowe, 2005) that in the UK in 2002–2003, total
value of travel and tourism industry was £91.8 billion that
indicates to the importance of this industry in the country’s
economic condition. Along with this, it also shows that it brings
foreign exchange earnings from other countries in terms of
attracting customer and creating more jobs within the country.
It is affirmed by Marvell (2005), that travel and tourism
industry sustains the growth and development of the UK by
creating more jobs and employment in the domestic country. It
also creates economic opportunities for UK by supporting local
communities.
Under the structure of the travel and tourism industry of the
UK, different aspects are included such as nature of the
industry, size and scale, type of tourism and travel,
organizations that are operating in this industry in the UK.
2.2.1 Types of Tourism:
Three types of tourism are presented in the UK. These can be
discussed as follow:
Inbound Tourism: It refers travel by the person who is living
outside the UK and visit in the UK for a particular time period
less than one year. It is endorsed by Smith and Rowe (2005)
that inbound tour operators are responsible to accomplish the
needs and wants of the overseas visitors. It is also stated by
Marvell (2006) that in 2003, sixth rank was gained by the UK in
the earning from the travel and tourism industry. About £11.9
billion was earned by the UK from 24.7 million overseas
visitors in 2003. Following table shows the top five overseas
markets for the UK.
Top five overseas markets for the UK in 2003
(Sources: Smith and Rowe, 2005)
Domestic tourism: According to Smith and Rowe (2005), local
residents that travel within their home country are included
under the domestic tourism. In this type of tourism, barriers that
are faced by the visitors such as language, currency and
documentation are low. On the other side, it is supported by
Marvell (2005) that to take break for short period of time, this
type of visiting is preferred by the visitors. So, it can be stated
that domestic tourism is related with the visiting within the
country. It is discussed by Schwab, Blanke and Chiesa (2008),
in the UK, beaches or seaside destinations are included under
the domestic visiting places that attract the local customers. For
example, Blackpool and Great Yarmouth attract the customers
to visit and travel. In 2002, about £61 billion was earned by the
domestic tourism industry in UK (Schwab, Blanke and Chiesa,
2008).
Outbound Tourism: Collins (2004) discussed that ooutbound
tourism refers the visitors or residents of the UK that visit
outside the UK. It is also supported by Marvell (2005) that
sometimes, people in UK go outside the country for leisure and
business purposes that is countered as a part of outbound
tourism. Many local firms provide facilities to the local
residents to visit in other countries that are included under the
outbound tourism.
So, it can be stated that to assist the people and to meet with
needs of the customers, effective and specialist services are
provided by the visiting firms through using effective travel
arrangements.
2.2.2 Sectors included in Travel and Tourism Industry of the
UK
Various sectors are available that are operating in travel and
tourism industry of the UK. According to Beaver (2005),
various organizations are operating or running their business in
each sector of travel and tourism industry. It is also supported
by Swarbrooke and Horner (2001) that different tasks or
functions are done by different firms under different sectors to
attract customers and support travel and tourism industry in any
country. According to Marvell and Hayward (2005), sectors that
are operating in the travel and tourism industry have different
roles, responsibilities and functions to maintain relationship
with the industry into positive direction. Additionally,
horizontal and vertical integration is also applied by these
sectors to run their business into positive direction. Sectors of
this industry can be discussed as follow:
2.2.2.1 Transport:
According to Airey and Tribe (2005), transport is one of the
most important parts of the travel and tourism industry. It is
also affirmed by Duval (2007) that transport sector works as
backbone for travel and tourism industry. It is because it brings
visitors together, facilitates trade, and sustains tourism within
the country that also refers the sustainable tourism. It is also
discussed by Goodwin (2001), in the transport sector various
services are included such as airline & airport, car hire
business, network train & train operating companies, ferry and
cruise companies, etc. Following diagram shows the supportive
business or parts that are included under the transportation
sector of travel and tourism industry in the UK:
(Source: Marvell, 2006)
Air travel:
Airports: As discussed by Schwab, Blanke and Chiesa (2008), in
the UK “The British Airport Authority” (BAA) is the main
player in the airport possession that owns many airports in the
UK such as London Heathrow, London Stansted, Edinburgh,
London Gatwick, Southampton and Aberdeen. Additionally,
BAA also has contracted with other airports in other countries
at global marketplace. At the same time, other airports like
London Luton, Manchester, Birmingham, etc. are also presented
in the UK that supports the travel and tourism industry in the
UK. It is also supported by Medlik (2003) that these airports
directly or indirectly support the travel and tourism industry of
the UK in terms of attracting customers through offering basic
facilities such as restaurants, toilets & shops, etc. So, it can be
stated that location and infrastructure of the airport also
supports the travel and tourism industry by attracting customers.
Airlines: As discussed by Xiang and Formica (2007), better
airline services also support the travel and tourism industry into
positive direction. British Airways is the largest airline
company that is working in the UK and comprises different
types of products’ services for its customers to attract and retain
them from economic class to club world. At the same time,
other airlines are also available in the UK that supports the
travel and tourism industry of the UK like, Virgin Atlantic,
British Midland and charter airlines such as Britannia, Monarch
airways. It is also sustained by Collins and Autino (2010) that
low cost airlines are also working in the UK that charge low
cost to the customer by cutting extra charges on the customers.
So, it can be stated that airlines also works as an important part
of the travel and tourism industry that attracts and satisfies the
customers.
Sea Travel:
Ferry Travel: According to Reichela and Haberb (2005), ferry
travel is included under the transportation sector that supports
the travel and tourism industry of the UK positively. It is also
supported by Gössling, et.al (2011) that ferry travel increases
business of the travel and tourism industry because this way is
cheaper rather than having personal car for travelling in the UK.
So, it can be inferred that many people prefer to travel by ferry
that supports the travel and tourism industry in terms of
attracting customers through offering better services and
affordable charges.
The Cruise Market: According to Gustafson (2012), in this
sector of transportation, high growth is presented over the last
years. There is wide demand of cruise in the UK that supports
the travel and tourism industry of the UK in positive directions.
Various new ships are launched in the UK such as Queen Mary
2 in 2003-2004 and many more that attract the customer to visit.
It is also supported by Marvell (2005) that in 2004, about 1.14
million people visited from cruise. Additionally, families and
younger people are targeted by the firms that are operating in
this segment that also reflects the attention of this sector to
encourage travel and tourism industry in UK.
It is also stated by Scott and Lemieux (2010) that to attract
local customers, river cruise is also organized by the cruise
operator firms to support business of travel and tourism industry
into positive direction. Local rivers such as Danube, Nile, Rhine
and Moselle are presented in the UK that supports the river
cruise. Various companies operate successfully in the UK like,
Royal Caribbean, P & O, Cunard and Princess Cruises.
Road travel:
Marvell (2005) stated that private car is taken under the road
travel that dominates other travel options in UK. Most of local
and foreigners preferred to hire a car for visiting in the UK that
is included under the car-rental sector and it is also a part of
travel and tourism industry. It is also endorsed by Smith (2005)
that car rental sector also offers effective services to the
customers at affordable price that attracts them for visiting in
the UK. So, it can be stated that car rental sector is also
important sector for enhancing business of travel and tourism
industry in UK.
2.2.2.2 Travel Agents:
Travel agents are also included under the parts of travel and
tourism industry of the UK. According to Martín (2005), travel
agents are the people, who provide suggestion and information
along with selling and administrating booking for the tour
operators to support the business of travel and tourism
positively. It is also affirmed by Rowe, Smith and Borein
(2002) that travel agents also provide different types of services
and products such as selling flights, ferry bookings,
accommodation, car hiring, insurance, etc. Travel agents also
work as tour operators to increase travel and tourism in the UK.
Types of Travel Agents: Marvell (2005) stated that about 6500
travel agency shops are working in the UK that affirms the
business of travel and tourism industry of the UK into positive
direction. It is also discussed by McKercher, Packer, Yau and
Lam (2003) that multiple chains are existed that are linked with
the tour operators in the UK. Travel agents are included as a
part of multiple chains of the travel and tourism industry. For
example, Thomas and going place and Thomas Cook are linked
with the tour operators in the UK that supports the growth of
travel and tourism industry by attracting the customers through
providing effective offers to visit UK (Middleton, Fyall,
Morgan and Ranchhod, 2009).
Additionally, it is also discussed by Bergh (2008) that miniples
are another type and small chain of travel agents and presents a
particular region of country. Another type of travel agents is
independent travel agents (Matias, 2009). These types of travel
agents run their business by own or small team in the
competitive marketplace. For example, Travelcare is the largest
independent travel chain in the UK that earns £430 million per
year (Marvell, 2005).
It is also stated by Dudensing, Hughes and Shields (2011) that
implants are also countered as travel agents that hold-up the
business of travel and tourism industry of the UK into positive
direction. These types of agents set their firm in different type
of businesses, but mainly deal with requirements of the
travellers. It is also supported by Haven-Tang (2005) that to run
the business of travel and tourism industry positively,
regulatory body is also made by the travel agents that work for
sustaining and increasing business of travel and tourism
industry in the UK. The association of British Travel agents is
the example of regulatory body of travel and tourism that
represents to this sector and works for increasing business of
travel and tourism industry in UK and in the global marketplace
(Gössling, 2002).
Call Centres: According to Swarbrooke and Horner (2001), call
centres are also used by the travel and tourism industry to
support the business of this industry and to attract the customer
by providing knowledge about the attractions of a particular
region. It is also supported by Marvell (2005) that today most of
customers prefer telephones, or internet to get the knowledge
about the visiting place in any country rather than hiring a
travel agent.
In context of UK, TUI is a tour operator that runs its call centre
out of Newcastle under its Lincoln brand that offers holiday to
the customer from the side of travel and tourism firms. High
productivity is offered by the staff or management of these call
centres due to offering incentives and bonus to them (Holden,
2008). It helped the firms to attract customers and increase their
customer base. Call duration, complaint ratio, call answering
time, etc. are monitored by the management of firm carefully to
support improvement in the services of firms (Middleton and
Lickorish, 2007).
Web-sites: According to Thomas, Shaw and Page (2011), in the
era of high tech advancement, internet has become an important
part of the individual’s life due to gathering or availing
knowledge and information about particular phenomenon. In
addition, in context of travel and tourism industry web-sites has
become supportive tool for developing business of this industry.
It is because it offers whole information about the packages of
firms, visiting places in particular country, expenses, services,
and so on that helps the firms to attract the customers for
availing their services (Beaver, 2005). So, it can be argued that
web-sites are also works as travel agents for travel and tourism
industry in UK.
2.2.3 Attractive Places in the UK
According to Rodgers (2001), locations in any country play a
fundamental role to attract the customers as well as to increase
customer base. To support this statement, various surveys are
organized by the travel and tourism companies to assess trends
and other supportive tools from the view point of visitors. In the
UK, travel and tourism industry, annual survey is organized by
the national tourist boards of England, Scotland, Northern
Ireland and Wales to assess visitors’ perceptions and other
related trends (Dale and Oliver, 2005). Various attractions are
present in the UK that attracts the customers to visit there.
These can be discussed as follow:
Natural Attractions: As discussed by Thrane and Farstad (2011),
in UK, various natural resources are available that attract the
customers to visit there. It is supported by Dale and Oliver
(2005) that natural parks, lakes, beaches, landscape; heritage
coasts, etc. are included under the natural attractions that catch
the attention of the customers to visit in the UK. It has impact
over the business of travel and tourism industry positively
through increasing number of customers in the country.
Man-made Attractions: According to Zaher (2007), in the
technical business environment, with the help of using effective
technology and creativity various attractions are made by the
technicians and people in the UK that attract the customers to
visit in the country. In the UK, many historic houses are
presented that are cared by the national trusts or English
Heritage to maintain attractiveness of the heritages. Museums
and galleries are also available in the UK that attracts the
customers to visit there and spend their time. In this, Tate, Tate
Modern, the Victoria, Albert Museum and the Museum of
Moving Image are present in the list of heritage place that
invites the customers towards them. In this, theme part is most
man-made attractive point (Hall, 2011). For example: Thorpe
park is an attractive place under the theme part that attracts the
customers to visit there.
(Sources: Marvell, 2005)
Events: According to Zare-ee and Shekarey (2010), events are
organized by different firms of travel and tourism industry to
increase attention of the customers towards country that
increases number of visitors for particular country. It is also
affirmed by Duval (2007) that many events are organized in the
UK such as Edinburgh Festival and the Notting Hill Carnival
that attracts the customers. Additionally, many events are
organized by the World Travel Market in the UK under tourism
sector to enhance attractiveness of this industry. At the same
time, many paying and non-paying attractive places are also
presented in the UK that support the business of travel and
tourism in the country by attracting customers to visit or spend
their time in the UK (Hudson, 2011). Museum is included under
the paying attractive place that attracts the customers to see
heritage of nations’. Blackpool Pleasure is non-paying
attraction for the customers that draw the customers towards it.
So, it can be stated that ultimate target of conducting events is
related with the increasing business and profitability of the
travel and tourism industry in the UK. Following chart shows
the most attractive places for visitors in UK:
Top ten paid attraction places in the UK
(Sources: Marvell, 2005)
Top ten free attraction places in the UK
(Sources: Marvell, 2005) 2.3 Changes in UK travel and tourism
from past two decades
Tremendous changes have been seen in the UK travel and
tourism industry from last two decades such as from 1991-2000
to 2001-2010. It can be stated on the basis of growth rate of this
industry that from the year of 1991 to 2000, growth rate of this
industry was low. In 1999, about 25.5 million visitors came to
the UK for visiting and total tourism expenditure of them was
£61 billion. Along with this, employment in that year was about
1.8 million people (The Tourism Industry, 2000). Following
chart determines the employment in tourism related industries:
(Source: The Tourism Industry, 2000)
In the above diagram, employment during 1999 has been
mentioned that reflects the condition of tourism industry in the
UK.
At the same time, it is discussed by Kotsanidis, Zacharatos and
Papatheodorou (n.d.) that contribution of the industry in the
GDP can be calculated in the form of generating revenue. It is
also assessed that in 1999, overseas tourist spent £13 billion
that was low as compared to 1998. At the same time, it is
supported by the report of “The Tourism Industry, 2000” that in
1999 domestic expenditure was measured about £16 billion. On
the other side, it is assessed that in 1998, it was £14 billion on
travel and tourism. In 1999, domestic expenditure was high by
14% from 1998. In the GDP of country, about 3.6% was
contributed by the total tourism revenue in that expenditure
from tourist on day trip is not included. Contribution of UK
travel and tourism industry to the GDP from 1990 to 1999 is
shown in the following diagram (The Tourism Industry, 2000).
(Source: The Tourism Industry, 2000)
(Source: The Tourism Industry, 2000)
To support the positive growth in UK travel and tourism
industry, forecasting was also conducted by the committees.
Forecasting for tourism expenditure that is set by the
committees is as follow:
(Source: The Tourism Industry, 2000)
These forecasts are related with the cash prices, but at the same
time, inflation is expected by the committees in this industry
that increase the expenditure in the UK around 4% per annum
(Kotsanidis, Zacharatos and Papatheodorou).
(Source: The Tourism Industry, 2000)
In the above diagram, forecasting towards number of tourists
from 1998 to 2003 is described that depicts the reasonable
changes within the industry. It also reflects continuous growth
of the industry in the overseas and UK market.
(Source: The Tourism Industry, 2000)
From the last 20 years, increase in overseas visitors to the UK
from 1978 to 1999 is reflected in above diagram that shows the
growth of the business of this industry (Kotsanidis, Zacharatos
and Papatheodorou).
At the same time, from 2001 to 2010, effective and positive
changes have been seen in the travel and tourism industry of the
UK through the following chart:
(Source: Travel and Tourism)
Through the report of “travel and tourism”, it is assessed that
from the time period of 2008 to 2010, growth of the UK travel
and tourism industry has been grown significantly. Number of
visitors has increased per year in the UK that supported the high
growth and profitability of this sector. Number of visitors that
are measured in June 2011 was 30.6 million that was 29.4
million in 2010. Additionally, in 2009, total expenditure of
travel and tourism industry of the UK fell down from last year
by 5.5% or 70.17bn. Recession in 2009 affected the travel and
tourism industry of the UK negatively (Travel and Tourism).
Increase in the number of visitors from 25.5 million to 29.4
million from the year of 1999 to 2010 reflects the growth and
effective business of travel and tourism industry of the UK. It is
supported by Roe, Ashley, Page and Meyer (2004) that
increasing numbers of business that depend over travel and
tourism industry also show the improvement of this industry.
High technical environment and positive environment supports
the impact of environment over the travel and tourism industry.
Different committees work to support the business of travel and
tourism industry (International Dimensions of Climate Change).
These are as follow:
British Tourist Authority: This authority is responsible to
provide and suggest the effective ways and recommendations to
the government and public bodies to solve any problem or
matter that are directly related to the business of travel and
tourism industry. It is also supported by Goodwin (2001) that
this committee is responsible for improving facilities and
increasing UK trade in the global market. It is also stated in the
report of “The Tourism Industry, (2000)” that different work
such as collection of appropriate information, offer information
related to impartial tourist, etc. is also conducted by this
committee.
The English Tourism Council: “The Tourism Industry, (2000)”
concludes that this committee is responsible for the formation
of the strategies that are beneficial for travel and tourism
industry of the UK. Different areas such as emerging market
and sectors, quality, accommodation schemes, championing
sustainable tourism, etc. are included under the working criteria
of this committee.
(Source: The Tourism Industry, 2000)
These committees work for protecting business of travel and
tourism industry in the UK. Along with this, to minimize the
negative impact of environment over the travel and tourism
industry of the UK, appropriate actions are also taken by these
committees that help to comply with the changes in business
environment. 2.4 Economic and Social Environmental Factors in
Travel and Tourism Industry:
There are different factors like economic and social factors that
have successfully affected the growth of tourism industry in
UK. In the words of Broadstock and Hunt (2010), the most
important factors that affect the UK tourism industry are the
economic and social environmental factors. As these factors
have direct link up with tourism industry, the changes in these
factors have severely affected the tourism industry in UK. In
order to provide smoothness to the UK tourism industry, it is
very important to consider these factors effectively.
2.4.1 Economic factors affecting UK tourism industry
In today’s growing globalized environment, economic factors
play significant role in the growth of business (Barnes, 2002).
There are lot of economic factors that are affecting the travel
and tourism industry in the UK. UK is a fast growing country in
the area/business of travel and tourism industry. Hence, the
economic environment of the UK has a direct impact on the
growth of travel and tourism industry. Following are some of
the economic factors that have simultaneously affected the
business of tourism industry in UK:
High interest rates: According to Broadstock and Hunt (2010),
high interest rate is one of the important economic factors that
are affecting the business of tourism industry in UK. It is
because with high interest rates, the prices of all necessary
products are increasing that have significant impact on the
tourism industry. As tourist around the globe look for the cheap
destinations for their travel purpose, the interest rates have
played a vital role in affecting the business of tourism industry
in UK. In support of this, Patterson, Esteves, Dinsdale and
Guwy (2011) has stated his view by stating that every tourist
look for the cheap options, while travelling and if he gets good
option for this, one would opt for the same.
In today’s fluctuating economy as the prices of things have
increased, it becomes very difficult to maintain the growth of
tourism industry along with the high interest rates. In the words
of Rummery and Coleman (2003), UK tourism industry is also
influenced from its country’s high interest rates. It has forced
many of the visitors to think again for UK as their tourism
destination because of the high interest rates and consequently
high cost. But in the words of Uddin and Boateng (2011), high
interest rates of UK are not much responsible for the loss of
business in UK tourism industry. It is because both tourism
industry and high interest rates are contradictory things and
have no impact over each other.
Zaher (2007) believes that people decide their tourism
destinations much before these economic factor and do not give
importance to these factors while going for such destinations.
People are already prepared for the expenses that are going to
incur while travelling. Zare-ee and Shekarey (2010) states that
high interest rates do not have much impact over the business of
tourism industry in UK as people are already prepared for it. As
there are so many expenses associated while travelling, so
people do not give preferences to the factors like high interest
rates while deciding their tourist destination.
High inflation rate: According to Uddin and Boateng (2011),
high inflation rate is also one of the important economic factors
that are affecting the business of tourism industry in UK. With
high inflation rate, it becomes very difficult for the government
to provide effectiveness to the tourism activities in order to
attract maximum number of tourist. High inflation rates leads to
the affecting UK tourism industry through increasing the total
budget of tourist in the country. Many of the tourists may plan
for alternative options for the travel destination because of the
high inflation rate in UK.
In support of this, Zare-ee and Shekarey (2010) has stated that
with the growing fluctuations in the world economy every
tourist has a limited budget for their travelling purpose and if
the expenses go beyond their budget they mostly opt for
alternatives. This shift of tourist regarding their travel
destination has significantly affected the business of tourism
industry in UK. In the words of Dudensing, Hughes and Shields
(2011), budget is the most important factor while taking
decision regarding the travel destination for people and if it
goes beyond the budget one would rather cancel or look for
another options. Without the required budget, it is not possible
to take effective decision regarding tourist destination.
But Frey and George (2010) has denied this stating that tourist
generally decide their holidays much before. So it does not have
great impact over the decision of tourists regarding their
destination choice. At the same time, while travelling, there are
so many expenses associated so it would not be right to say that
high inflation rate has affected the business of tourism industry
in UK. With so many expenses people do not generally see the
inflation rate while travelling and nor it have any impact over
the business of tourism industry in UK.
Dudensing, Hughes and Shields (2011) have also supported this
view by stating that high inflation rate generally affects the
prices of products, but it has negligible impact over the tourism
industry. This is far behind in the list while taking decision
regarding any tourist destination. The main factors behind the
decision regarding tourist destination is the point of attraction
that the place is having. Although it may affect the business for
a short time, but its impact is negligible in long-run as people
do not wait for the prices to come down.
Exchange rate: This is another important major economic factor
that affects the business of tourism industry in UK. The
exchange rate of UK is comparatively high than other countries
so one has to invest more in terms of currency to visit in UK. In
the words of Gössling (2002), with high exchange rate, the
budget of the people also increases automatically that affects
their decision regarding their travel destination. Apart from
this, as the currency of UK is also not directly exchanged with
many other countries’ currency, it also has its impact over the
tourism industry in UK. People have to convert their currency
first into euro or pound that ultimately affects the ultimate
amount from exchange that affects the decision of tourists.
In support of this, Song, and Li (2008) stated that if the
currency is exchange for two times, the original amount after
the exchange automatically decreases. It is because there is
certain percentage also that is charged for the exchange between
two currencies. So if this cost rises at great level then it forces
people to look for another option as most of the people have a
limited budget for their travelling. But in the words of Thomas,
Shaw and Page (2011), exchange rate do not have much impact
over the tourism industry in UK as exchange rate is common if a
person is going for a foreign tour. The tourists in UK generally
come from Middle-East and Asian countries, so there is limited
chance of affecting their choice because of exchange rate.
Dudensing, Hughes and Shields (2011) have also supported this
view by stating that this is the important element associated
with foreign travelling, so it could not be regarded as an
affecting tool for tourism business in UK. Rather, it provides
effectiveness to the tourism industry through generating good
amount of foreign currency. Apart from this, the currency of UK
is almost exchanged with every currency of the world so instead
of affecting the business it enhances the effectiveness of
tourism industry in UK.
VAT tax: This is another important economic factor that is
affecting the business of tourism industry in UK. The increase
and decrease in the rate of VAT has subsequently affected the
visitors’ attraction and their accommodation. In the words of
Thrane and Farstad (2011), high VAT rate in UK has great
impact over the tourist as it forces to lose the number of tourists
for the country. As the tourism industry is highly price sensitive
and intense to international competition, it is very important to
keep the VAT tax low in order to attract maximum number of
tourists. As the UK government is also functioning under EU
legislation, it is unable to minimize the VAT rates that have
greatly affected the business of tourism industry in UK.
Weed (2009) has also supported this element as an effective
cause for affecting the business of tourism industry in UK. Most
of the countries other than UK have lower VAT rates that
enable them to attract maximum number of tourist in their
country. As it minimizes the overall budget of the people
regarding their travelling, it is very important to decide the
tourist destinations for people. At the same time, it also affected
the competitiveness and tourism balance of payment that is
affecting the business of tourism industry in UK. According to
Zhang, Song and Huang (2009), the high rate of VAT have
greatly affected the tourism balance deficit from 3.9 billion
pound in 1996 to 18 billion pound in 2006.
But according to Gössling (2002), the high rate of VAT has also
increased the revenue for the tourism industry in UK. With this
revenue, the government can again develop new tourist
destinations to attract the tourists. Although it has affected the
number of tourist visiting UK, but with increased VAT rate, the
amount of revenue has not been affected. In support of this,
Zhang, Song and Huang (2009) have shared their views that
high rate of VAT is an income generating mechanism for the
tourism industry in UK. With high rate of VAT, the government
has been able to meet the expenses of tourism industry.
UK economic policies: The economic policies of UK
government are also responsible for ups and down in its tourism
industry. The economic policies of the government are much
complex that affect the effectiveness to the tourism industry in
UK. In the words of Prideaux (2005), with rigid policies, the
government has affected opportunities in the tourism industry in
UK. The government has increased the Air Passenger Duty
(APD) on the tourist that has severe impact on the tourism
industry in UK. With increased APD, the number of passengers
has subsequently decreased. According to Getz (2008), the high
Air Passenger Duty charged by the government has not only
minimized the number of tourist visiting the country but also
caused a loss of attraction among the tourists.
Apart from this, Pay as You Earn is another major tax incurred
by the government over tourism industry. This tax also has
influenced the hotel industry and catering sector that are
affecting the tourism industry in UK. In the words of Andersson
& Getz (2009), with this tax, the hotel industry and catering
sector is not able to provide the required facilities to the
tourists visiting their hotels because they have to deposit
maximum of their deposits in terms of tax to government. This
has a great influence over the development activities in tourism
industry.
According to Hjalager (2010), London has been considered as
the starting and finishing point of scheduled tours. But with the
increase in APD and other taxes related to tourism the scenario
has totally changed. Today, London has been regarded as the
secondary option as the starting and finish point in any schedule
tour. Dwyer, Edwards & Roman (2010) has stated their views by
stating that the economic policies of the UK government are
mostly responsible for affecting the business of tourism
industry in UK. As it does not allow the opportunities to exist
with tourism industry, it is regarded as the major cause.
But Coles & Shaw (2004) believe that the economic policies of
UK are meant to provide effectiveness to UK tourism industry.
Although, there are some changes required but the policies are
quite effective to protect the industry from downturn. Today,
with the economic changes in the world, it has become more
important for the countries to come up with corrective measures
to protect their growing economies. The economic policies of
UK are also the result of changing economic condition around
the world. According to Kozak & Martin (2012), government
has formulated such policies to protect the tourism industry
rather than to affect its business operations.
2.4.2 Social environmental factors affecting UK tourism
industry
Apart from the economic factors there are also several
social environmental factors that affect the tourism industry in
UK. The social environmental factors have measurable impact
over the business of tourism industry in UK. In the words of
Gibson & Lepp (2003), following are some of the social
environmental factors that affect the UK tourism industry from
business point of view:
Culture and sub-culture: Both culture and sub-culture is the
most important elements of social environmental factors that
affect the business of tourism industry in UK. Culture is the
trends going in a particular market. In the words of McCabe
(2009), culture and sub-culture are important elements in taking
decision regarding tourist destination. It is because, while
travelling, people not only get attracted to the point of
attraction rather they also come to notice the culture of that
particular country. It is also one of the reasons behind the
people travelling to different countries. According to Catlin,
Jones & Jones (2011), the richness of cultural factor has played
an important role in determining the growth of tourism industry
in UK.
With wide cultural influence, it has been able to provide
effectiveness to the growth of tourism industry in UK. As UK
has a great cultural history, it has been able to attract maximum
number of tourists to UK. But in the words of Prideaux (2005),
in today’s environment, people generally do not give much
importance to cultural factor as an influencing factor in taking
decision regarding tourist destination. As people do have much
time in today’s fast moving world they generally opt for the
place where they could really relax. Getz (2008) has different
view regarding this. In his words, people choose their travel
destination with taking different aspects into consideration.
Lifestyle: This is another important element of social factor that
is affecting the tourism industry in UK. In the words of
Andersson & Getz (2009), lifestyles of people are mainly
attached to fashion, trends and beliefs that are directly having
its influence over the tourism industry. As people in UK are
very fashionable, it automatically attracts people from different
countries. Hjalager (2010) has also supported this view stating
that with high fashion, UK is able to create a huge base of
tourist. Today, maximum numbers of tourist are attracted
because of the fashion and trends in the country. It is more
effective mean to attract tourists from the globe.
But Dwyer, Edwards & Roman (2010) believes that
lifestyle keeps on changing and it is not permanent, so it would
not have great influence over the business of tourism industry in
UK. As UK has similar lifestyle in compare to most of the
European countries, it is not able to attract tourists because of
this factor. At the same time, most of the tourists do not come
to see the lifestyle of particular countries, so it is not having
any influence over the number of tourists in the country. In
addition to this, lifestyle is very different from tourism
activities, so it cannot be said that it influences the business of
tourism industry in UK.
Cultural and social event: This is also an important aspect that
affects the business of tourism industry in UK. There are so
many entertainment and exhibitions programs are conducted in
the year that have subsequently attracted several visitors from
different countries in UK. According to Coles & Shaw (2004),
with wide variety of cultural events, it has successfully added
the number of tourist in compare to its neighbor countries.
Today, there are many festivals and events that have attracted
the attention of tourist from different countries of the world.
Kozak & Martin (2012) has also supported this stating that
today maximum of the people visit some places because of
traditional festivals only.
But according to Gibson & Lepp (2003), cultural events
and festivals only have limited impact over the business of
tourism industry in UK. It depends upon the choice of the
people as everyone has different choice as some like adventure,
some tradition etc. In this fast moving world, people mostly
decide their travel destination where they could get peace and in
this kind of festival and event there is no space for peace. So
according to McCabe (2009), these festivals and events are not
much effective to attract number of tourists in UK. Although
these festivals and events are effective means to understand the
tradition of a country, but these are not able to provide
effectiveness to UK tourism industry.
Apart from this, environmental factors such as climate,
nature etc also have major role in affecting the tourism industry.
According to Catlin, Jones & Jones (2011), the climate in UK is
very moderate that has subsequently contributed to the growth
of tourism industry in UK. As the country is neither too hot nor
too cold and most of the people prefer to visit UK in compare to
countries which are either too hot or cool. Zare-ee and Shekarey
(2010) has also supported this factor as an important cause that
is affecting the number of tourist in the country. People
generally do not like to visit such place that faces too much
cold or too much hot.2.5 Association that work for UK travel
and tourism industry:
According to McKercher, Packer, Yau and Lam (2003), to
increase profitability and business of the overall industry,
different associations are established by different industries and
governments those work directly and indirectly for enhancing
customer base for the firms. It is because these authorities and
associations know regarding the contribution of travel and
tourism industry in economy of the country along with their
duties towards it. So, different associations are also working in
UK to enhance and to run the business of travel and tourism in
the country and outside the country (About Association of
British travel agents, 2011). In this, ABTA (Association of
British travel agents) is also working in UK to increase business
of travel and tourism industry.
In this, it is assessed that Association of British travel agents
(ABTA) is one of the largest associations that are working more
than 60 years for travel and tourism firms in the UK. Main
focus of the association is to grow business of travel and
tourism firms through satisfying foreign customers by providing
sufficient and imperative travel experience to them. Expertise,
reliability and fairness are considered as strong point of the
association that enhances its brand image in the travel and
tourism industry (About Association of British travel agents,
2011). These qualities are also considered as core of the
business of the association that sustains its involvement in
increasing business of travel and tourism industry in the
competitive world market.
As discussed in the report of “Building Confidence in Travel
(2011-2012)”, association also increases confidence among the
employees of the travel and tourism firms and among its agents
to provide effective and holiday products to the customers that
attract the foreign customers to visit in the UK. It is also
supported by Goodwin (2001) that the association also provides
financial protection and schemes to the travel and tourism firms
that are the members of this association to grow the business of
the industry in the global market. Additionally, it is also stated
by Bergh (2008) that changing landscape is also considered by
the association while developing policies and frameworks for
growth of the business of UK travel and tourism firms.
Along with this, it is also supported by the report of “Building
Confidence in Travel (2011-2012)” that to ensure the fair deal
with the customers by the travel and tourism firms, united voice
is raised by the association to the government. It is also
affirmed by Matias (2009) that governmental rules and
regulations are also followed by the association to ensure the
fair and effective deal with the customers and travel and
tourism companies. So, it can be stated that through raising
standards for the travel and tourism industry and through
guiding them, ABTA works positively in UK that directly and
indirectly increases business of UK travel and tourism firms
(About Association of British travel agents, 2011).2.6 Summery
The chapter is quite helpful to highlight the main aim or
purpose of the research. The basic structure of the UK travel
and tourism industry also exhibits good knowledge about
different tourism sectors in UK. Additionally, changes in the
UK travel and tourism industry from past two decades have also
determined good understanding of UK tourism industry. Along
with this, the impact of economic and social environmental
factors over the business of travel and tourism industry of the
UK has been also been defined in this chapter to accomplish the
research successfully. The chapter is quite effective to develop
understanding of the UK tourism industry and its elements.
Chapter 3 Research Methodology3.1 Introduction
The main purpose of this chapter is to highlight the theoretical
structure that is followed by the researcher to gather data to
attain the objectives of the research. In this chapter, research
paradigm, research strategies, research design, data collection
methods, etc. will be discussed that are followed by the
researcher to attain the objectives of the research. Research
methodology refers to the framework that is used by the
researcher to establish link between research question and
research objectives through collecting data or information. At
the same time, actions or tools that are focused by the
researcher are also highlighted in this chapter. 3.2 Research
Design
Research design refers to the framework that is used by the
researcher to plan or design the research process to collect the
data or information to solve the research problem effectively
(Bordens, 2006). Three types of research design methods are as
follow:
Descriptive research design: In the condition of starting the
research question from “what, how, when, who”, this type of
research design method can be used by the researcher to solve
the research question (Webb, 2002).
Exploratory research design: In the case of having lack of in-
depth understanding about research question, this type of
research design can be used by the researcher to solve the
research question (Blanche, Durrheim & Painter, 2008).
Causal research design: To assess the relationship between
various variables such as effect and cause relationship, this type
of research design can be used by the researcher (Reporting
Standards for Research in Psychology, 2008).
Exploratory research design has been used for this research to
solve the research problem effectively and to collect the data
for the research. Interpretations are focused to produce results
of the research with the help of this type of research design that
stands for the reason to select this research design (Kindon and
Pain, 2007). Descriptive research design is ignored, because it
is useful only to describe characteristics of the population not
for the research. Along with this, causal research design
identifies cause and effect relationship between variables that is
not presented in the research. So, these two are avoided and
exploratory research design was selected for this research to
reach at the end result of this research (Bergh and Ketchen,
2009).3.3 Research Approach
Mainly two types of research approaches are available to solve
the research problem such as inductive and deductive research
approach (Bergman, 2008). These are as follow:
Deductive Research Approach: Deductive approach is called as
top-down approach. Flow of information is presented from
general to specific in this type of research approach (Haruvy &
Stahl, 2004).
Inductive Research Approach: This research approach is known
as bottom-up approach. Flow of information is presented from
specific to general in this type of research approach to attain the
objective of this research (Arslan, Göcmencelebi & Tapan,
2009).
Nature of the research bounds the selection of the research
approach. For this research, inductive research approach has
been used to solve the research problem effectively. The main
reason behind selecting this method is that information flow is
presented from specific to general that motivated the researcher
to choose this research approach to attain the objective of the
research (Kindon and Pain, 2007). Along with this, current
status of the UK travel and tourism industry has been also
assessed in this research that stands as a reason to select this
research approach for the research (Haruvy & Stahl, 2004). So,
as information flow prohibits the selection of deductive
research approach. 3.4 Research Philosophy
To select the appropriate data collection method, research
philosophy plays a crucial role (Burke, 2007). Various research
philosophies are available that can be used by the researcher
such as positivism, Interpretivism, Realism and Pragmatism
philosophies to solve the research problem effectively (Johnson
and Christensen, 2010).
For this research, interpretivism research philosophy was used
due to developing understanding about the subjectivity of the
social world. Additionally, it also fits into the research question
that helped to attain the research objectives (Olsen, L. et al,
2010). 3.5 Data Collection methods
Data or information that is collected under that process or
method called data collection method. There are two types of
data collection methods available that can be used by the
researcher to attain the objectives of the research such as
primary and secondary data collection method (Blaxter, Hughes
and Tight, 2006).
Primary data collection method: Data that is not collected
previously is included under the primary data collection method
(Badke, 2004).
Secondary data collection method: Collection of data on the
basis of previously collected data is included under the
secondary data collection method (Jackson, 2008).
Primary and secondary data collection methods were used for
this research to gather data to solve the research issue. Under
the secondary data collection method, literature review has been
used for this research. Additionally, under the primary data
collection method, survey through questionnaire has been used
to collect the data and know about the perceptions of the
employees of the travel and tourism company in the UK (Healy
and Perry, 2000). 3.6 Sampling
For this research, to select the sample size, no specific thumb
rule was followed. Similarly, for this research, under the non
probability sampling strategy, random sampling method was
used. Additionally, issues during the selection of sample size
and collect data for the research, sample was finalized within
the quota. For this, 40 employees were selected as a sample size
that are working in different cities of UK as a part of
Association of British travel agents (ABTA). It was beneficial
as a part of primary data collection method to provide data to
analyze the impact of economic and social environmental
factors over the business of inbound and outbound travel and
tourism industry of the UK (Amaratunga, Baldry, Sarshar and
Newton, 2002). 3.7 Questionnaire
3.7.1 Trait of Questionnaire
For this research, questionnaire was used as primary data
collection tool that helped the researcher to present attitude,
opinion and facts of participants in the standard format. As
compared to other methods such as focus interview, group
interview, etc. this method is more beneficial and effective due
to cost effectiveness. Furthermore, this questionnaire is divided
into two parts in that first part comprises of questions related to
the fundaments or concepts about the main theme of this
research. Additionally, specific information related to different
economic and social environmental factors that affect business
of UK travel and tourism industry is discussed in the second
part of questionnaire.
3.7.2 Design of Questionnaire
To maintain reliability and credibility of the research and to
attain the objectives of primary data collection method, design
of questionnaire plays a crucial role. At the time of designing
questionnaire, two types of problems must be considered by the
researcher. In this, first issue was related with maintaining the
interest of the participants during the whole research. For this,
easy questions were formed in starting of the questionnaire and
tough questions were formed in the last of questionnaire.
Second issue was related with the influence over the decision of
participants that can be reduced through proper layout of the
questionnaire. So, to maintain interest of the participant,
effective questionnaire was prepared.
3.7.3 Piloting
Process of analyzing validity and reliability is known as
piloting. In this, before delivering the questionnaire to the
participants, it was conducted through including 5 people
including me that helped me to assess the mistakes or errors in
the questionnaire. In developing efficiency in the questionnaire,
it worked positively in terms of developing standardized
questionnaire that increased validity and reliability of the
questionnaire.
3.7.4 Statistical data analysis
Use of statistical data analysis was avoided in this research due
to using questionnaire. In that, to analyze the data, percentage
of the respondents was used that is given by them in the
response of questionnaire. 40 questionnaires were distributed
among 40 travel agents that are the members of ABTA
(Association British travel Agents) and working in different
cities of UK as a part of this association to analyze the impact
of economic and social environmental factors over the inbound
and outbound travel and tourism industry in the UK. 3.8
Research Form
There are two types of research perspective available that can
be used by the researcher to attain the objectives of the research
like, qualitative and quantitative research format (Bryman,
2007). These can be discussed as follow:
Qualitative Research Perspective: Qualitative research format is
related with the use of picture, words, presentation techniques,
etc. to solve the research problems. In this type of research
format, small group of respondents is used as a target to solve
the research problem (Weinberg, 2002).
Quantitative Research Perspective: Use of statistical format to
solve the research problem is related with quantitative research
perspective. Numerical data, statistical models, figures, graphs,
etc. are used by the researcher under this type of research
format to attain the objectives of the research (Goddard and
Melville, 2004).
To reach at the result of this research that is related with the
identification or assessment of the impact of economic and
social environmental factors over business of travel and tourism
industry of the UK, mixed research format has been used that
comprises of the use of both qualitative and quantitative
research format in positive manner (Amaratunga, Baldry,
Sarshar & Newton, 2002). This research format helped
positively to attain the objectives of the research effectively. To
select and draw imperative research outcomes, this research
format plays an important role (Bryman, 2007). Reliable and
quality data that is beneficial to attain the positive outcomes of
the research question is the main aim of using this research
format.
To select this research format that is beneficial as well as
imperative for the research into positive direction to attain the
research outcomes, various reasons and supportive arguments
are presented that indicate the selection of this research format
(Creswell, 2003). Graphical presentation helped to solve the
research problem effective that sustains to the use of
quantitative research format. Similarly, use of qualitative
variables focuses over the use of qualitative research format.
So, both methods were used for this research. 3.9 Ethical
Guideline
To maintain reliability of the research, ethical consideration has
been followed during the overall research. During the research,
problems related to plagiarism of information were taken into
consideration by using proper citation and reliable source.
Process of Coventry University has been also followed in a
proper manner to increase the credibility of the collected data in
the research. At the same time, to avoid unethical use of
information related to the particular firm, confidentiality of the
data of particular company has been also focused during the
overall research. 3.10 Summary
Methods that have been used to solve the problem of the
research have been discussed in this chapter that shows the
effectiveness of the chapter. Under the research design,
exploratory research design has been used along with describing
reason to select this design. Similarly, under the research
philosophy, interpretivism research philosophy has been used
for this research. Additionally, data collection methods that
were used in the research have been also discussed such as
primary and secondary data collection methods. Under primary,
survey through questionnaire and under secondary case study
analysis has been used. Mixed method such as qualitative and
quantitative research formats have been also selected in this
chapter. To maintain credibility and authenticity of data, ethical
guidelines have been also mentioned.
Chapter 4 Findings and data analysis:4.1 Introduction
Results of the research that are attained by the researcher on the
basis of collected data from literature review, case study
analysis and response of questionnaire are discussed in this
chapter. Along with this, to reach at the result or to attain the
objectives of the research, graphical presentation will be used to
analyze the data in effective form. In short, how economic and
social environmental factors affect business of travel and
tourism firms in the UK will be discussed in this chapter in
context of Association of British travel agents. 4.2 Findings
from literature review analysis
Through conducting literature review and case study analysis,
key points and concepts have been discussed that helped in
developing knowledge about the structure of UK travel and
tourism industry. Additionally, to assess the impact of economic
and social environmental factors over the business of travel and
tourism industry helped it positively.
4.2.1 Structure of Travel and tourism industry in the UK
From analyzing literature review, it is found that three types of
tourism presented that contributed in the growth travel and
tourism industry of the country. In this, it is found that inbound,
outbound and domestic tourism contributed positively in
country’s growth and enhanced business of this industry in the
global market. It is also identified that in 2003, about £11.9
billion was earned by the UK from the inbound tourism along
with gaining 6th rank in the global market in travel and tourism
business that reflects the involvement of the inbound travel and
tourism industry in growth of the country.
At the same time, sectors that are the part of UK travel and
tourism industry has been evaluated from the literature review.
In this, transport, travel agents and attractive places in the UK
are identified under the sectors that attract and distract the
foreign customers to visit in the UK. From the analysis of UK
environment, it is identified that travel industry structure of UK
is quite complex that involves several stakeholders. It is the
combination of different travel alternatives such as road, sea,
air that make the structure more optional for the travelers.
Through the literature review analysis, it has been also
identified that sufficient and attractive information are offered
by the travel agents like call centres, web-sites, etc. that solves
the customers’ query that is effective to determine the service
structure of travel industry in UK. It is also assessed that ABTA
(Association British travel Agents) is working as supportive
association that enhances growth of the travel and tourism
industry and took actions to improve structure of UK travel and
tourism industry. So, it could be determined that structure of the
industry is good to increase the number of tourists in UK.
4.2.2 Changes in UK travel and tourism industry
Literature review analysis helped to find out the changes in the
business and structure of UK travel and tourism industry from
the past two decades. It has been found that business of travel
and tourism in UK is continuously increasing, as firms in the
UK are working effectively to meet with the needs and wants of
the customers effectively. From the last two decades i.e. 1991-
2000 to 2001-2010, it has been found that various changes have
been seen in the travel and tourism industry that contributed in
the growth of this industry and country. Increase in number of
visitors from 25.5 million to 29.4 million from the year of 1999
to 2010 respectively refers the positive changes in UK travel
and tourism industry that increased growth and profitability of
this industry.
Increase in employment rate from the past years was also
assessed from the literature review analysis that also refers the
positive changes in the UK travel and tourism industry. It is
analyzed that 6.5% employment was accounted in 1999 that was
increased in 2010 by 14% that also shows the positive growth
within the industry. From the literature, it is exhibited that there
are positive changes in the industry due to increasing income
and spending level of people.
Additionally, from the literature review analysis, it has been
found that different committees are also developed and involved
by UK travel and tourism industry to improve structure and
increase business of the industry. The analysis depicts that
British Tourist Authority and The English Tourism Council are
responsible for changes in UK travel and tourism industry.
Overall, it could be said that the changes in last two decades are
quite significant in UK travel industry.
4.2.3 Impact of economic environmental factors over the
business of UK travel and tourism industry
The literature review analysis also helped to find that there are
various economic factors available in the UK such as high
interest rate, foreign exchange rate, inflation rate, governmental
economic policies, etc. that affect business of travel and tourism
industry in country positively and negatively. It has been
encountered that high interest rate affects growth of tourism
industry in adverse manner. It is because high interest rate
increases price of the products that are that has impact over
their decisions of travelers negatively. It is also determined
from the point of view of various authors such as Rummery and
Coleman (2003), Uddin and Boateng (2011) and Patterson,
Esteves, Dinsdale and Guwy (2011) that due to high interest
rate in UK, it becomes tough for the travel and tourism
companies to sustain their growth in the country by decreasing
their spending.
It is also found that fluctuation rate and foreign exchange rate
also have a significant impact over the business of travel and
tourism industry in UK. The high inflation rate affect budget of
the tourists that forces them to seek alternative for visiting.
This shift from UK to other alternatives affects the business of
travel and tourism industry negatively in terms of reducing
number of customers. So, impact of different economic factors
over the business of UK travel and tourism industry has been
determined from point of view of various authors through
conducting literature review analysis.
4.2.4 Impact of Social environmental factors over the business
of travel and tourism industry in UK
Various social environmental factors have been found from the
literature review analysis that influences business of travel and
tourism industry in UK. In this, culture, sub-culture, lifestyle
and cultural & social events are determined as social
environmental factors that influence to the perception and
decisions of the tourists to visit in a country. It is observed that
cultural history of any country becomes point of attractions that
attract visitors’ attentions. In this, it has been also found that
cultural changes in terms of differences related to values,
perception, language, etc. are included under the elements that
have significant impact over the business of tour and travel
industry of the UK.
Lifestyle of the people is countered under social factors that
influence the business of tourism industry through attracting or
distracting visitors to visit in UK. It has been detected that
fashion and trends in UK are attractive that have positive
influence over the mind of travelers and creates huge base of
customers for travel and tourism industry. Cultural and social
events that are conducted in the country within particular time
period also founded as reason that increase visitors attentions to
visit in UK.
So, through the literature review analysis various social
environmental factors are determined that affect business of
travel and tourism industry in UK in terms of affecting
customer base, profitability, etc. It is also found that these
social and cultural factors should be given proper consideration
for the growth of travel industry. 4.3 Findings from
questionnaire
To reach at the result of the research, questionnaire is also used
as primary data collection method. In the questionnaire 10
questions were formed and sent to the 40 members of
Association of British travel agents that are working in different
areas of country for the development of the travel and tourism
industry. Findings of questionnaire are discussed as follow:
Changes in travel and tourism industry and involvement in
country’s growth: First, and second questions were related with
analyzing structure and changes in the travel and tourism
industry of the UK. Additionally, third question was related
with the assessment of impact of travel and tourism industry
over the growth of country.
In the response of first question of the questionnaire following
responses were given by the participants:
Sectors of UK travel and tourism industry
Sections of sectors that work for it
Transport
Air Travel
Sea Travel
Road Travel
Travel Agents
Web-sites
Call centers
Attractions in UK
Man-made attractions
Natural attractions
Events
Associations and Committees
ABTA (Association British travel Agents)
Above table shows the answers of participants that refers that in
UK travel and tourism industry, mainly four sectors such as
transport, travel agents, attractions and associations are working
as a part of it. It is also identified that changes in any sector has
impact over the whole UK travel and tourism industry positively
and negatively. The changes in transport may increase or
decrease attraction of the visitors to visit in particular country
due to implication of their convenience.
In the reaction of second question related to major changes in
travel industry, following responses were given by the
participants:
Changes from past two decades by 1991-2000 to 2001-2010
Impact over business of UK travel and tourism industry
Increase in number of visitors
Positive impact in terms of increase business and profitability
of the firm
Increase employment rate
Positive impact in the form of increasing chances of spending
money over domestic tourism
Increase GDP
Positive impact on growth of tourism industry and country
Change in structure of travel and tourism firms
Increases attractiveness of UK travel and tourism industry
Involvement of associations and committees
Increase positive aspects and fair deal among visitors and travel
firms
Above chart refers the major five changes that have been seen
in UK travel and tourism industry. It is found that overall
changes were related with the growth of country as well as
business of travel and tourism industry and the change in the
structure also caused these changes within the industry. Third
question was related with analyzing the role of travel and
tourism industry in country’s growth that is the impact of
changes in the industry in last two decades:
In this, employees gave their response that travel and tourism
industry of UK works as positive element to contribute in total
GDP. Additionally, through increasing employment within the
country by increasing travel and tourism, growth of the country
can be seen positively. Along with this, it is also replied by the
employees of Association of British travel agents that travel and
tourism industry contributes in increasing level of foreign
currency that also increases growth of the country positively. At
the same time, in making the relationship with the other
countries in the global marketplace, travel and tourism play a
crucial role.
Impact of economic and social environment over travel and
tourism industry: 4th, 5th and 6th, questions of questionnaire
were related with the assessment of the impact of economic and
social environmental factors over travel and tourism industry of
the firm in UK.
4th question was focused over analyzing the impact of economic
environment factor on the business of travel and tourism
industry in UK, which is responded as below:
Above graph refers that most of members of ABTA are agreed
with this phenomenon that vat tax policies of UK government
have significant impact over the business of UK travel and
tourism industry. It is observed that low vat tax increases
number of visitors and vice-versa. It is because low vat rate
affects budget of the people regarding travelling. Increase in
tourism balance, from 3.9 billion pound in 1996 to 18 billion
pound in 2006 refers the positive impact of vat tax policies of
government over the business of travel and tourism in UK.
The impact of foreign exchange rate over the business of travel
and tourism industry has been also assessed through the
questionnaire as regarding this, following response is obtained:
Above chart refers the response of members of ABTA towards
the impact of foreign exchange rate over the business of travel
and tourism industry in UK. In that 35% respondents were
strongly agreed and 45% were agreed that refers that high
amount of respondents were favored this statement that foreign
exchange rate affect business of travel and tourism industry. It
is found that high exchange rate in UK increases business of
travel and tourism firms positively in the country.
Following chart refers to the response of participants towards
the impact of social environment over the business of travel and
tourism industry in UK.
Above diagram refers that culture and tradition of UK has
significant impact over the business of travel and tourism in
attracting the customers. In this, it is found that cultural history
of the country attracts the customers to visit and know about the
particular culture. From the response of participants, it has been
also found that life style, traditions and beliefs also affect to the
business of travel and tourism industry through attracting them
towards the particular country.
7th question was related with the assessment of the current
travel and tourism status in the UK by avoiding the impact of
social and cultural environment:
Above diagram shows that high amount of employees were
agreed with the current status of travel and tourism in the UK.
25% employees were strongly satisfied and 35% members of
Association of British travel agents are satisfied with the
current status of the travel and tourism in the UK. 10%
employees did not give reply over this question. 20% employees
were dissatisfied and 10% employees were strongly dissatisfied
with the current status of the UK travel and tourism industry. It
depicts that there are potential for improvement in travel
industry of UK.
8th question was related with the assessment of the role and
impact of economic and social environmental factors over the
business of UK travel and tourism industry. Following chart
refers to the response of participants:
Economic and social environmental factors
Impact over business of UK travel and tourism industry
High interest rate
High interest rate affects price of the products at tourist places
that has adverse impact over the business of travel and tourism
firm
High inflation rate
High inflation rate affects budget of visitors and distracts them
to visit in a particular country and forces them to choose
alternatives for visit
Foreign exchange
High foreign exchange rate affects budget of the visitors as it
requires high amount to visit that has impact over their
decisions to visit in UK or other countries
Vat Tax
Vat tax has negative impact over the accommodation and
attractions of the visitors that affect business of travel and
tourism industry
Culture and sub-culture
Culture, sub-culture and cultural history have power to attract
the customers to visit in UK
Life style
High fashionable trends of particular country attracts the
visitors to visit in the country
Cultural and social events
Entertainment and exhibition programs conducted in the
country, which attract the visitors for particular time period to
visit in that country
9th question was related with assessment of the role of transport
and travel agents in increasing business of travel and tourism
industry in UK.
Above chart refers that transport and travel agents have high
impact over the business of travel and tourism industry and
contributes in increasing customer base of the firm. Participants
replied that travel agents and mode of transport helped the
companies to assess perception of the visitors to visit in a
foreign country. Additionally, it is also observed that travel
agents deliver needed information to the visitors to visit in the
UK. Additionally, through delivering best services to the
customers, travel agents and transport provide worth of the
money of the customer that they are spending on their visits.
Offering of extra benefits by the travel agents and transport also
helps the travel and tourism companies to increase their
profitability and business in the country.
10th question was related with the collection of the data about
the needed steps that should be taken by the firms or members
of ABTA to enhance their business in the global marketplace. In
this, it is also found that employees suggested that firm should
also include more attractive packages in the organizational
policies to attract the customers. Along with this, it is also
identified that the firm should also align its rules and policies
with the governmental rules and policies to increase the
effectiveness of the organizational policies. Additionally, the
firm should also develop effective and flexible strategies that
can adopt the changes rapidly and can align them effectively to
determine growth within the industry. The firm should also
consider the needs and wants of the customers according to
their culture, beliefs, attitude, etc. that will be beneficial for the
firm to retrain customers for long period of time. 4.4 Summary
Data that were gathered from the literature review analysis and
response of questionnaire shows that there are various economic
and social factors such as high interest rate, inflation rate,
foreign exchange, cultural & sub-cultural, life style, etc. that
affect business of travel and tourism industry positively and
negatively. In addition, it has been also determined that
technological advancement is also included under the factors
that affect business of the travel and tourism industry in the UK
through creating more competitive business environment. It
shows the ongoing path of this research into positive direction
in terms of reaching at reliable and appropriate findings.
Similarly, data that were gathered from the questionnaire also
emphasized over the attainment of the positive outcome of the
research. In this way, response of employees of travel and
tourism industry helped to determine the current status and
structure of the UK travel and tourism industry and different
environmental factors that affect the business in industry. It
also contributed in solving the research problem and research
question effectively. Furthermore, need to take more initiative
and effective actions to minimize the negative impact over the
business of travel and tourism industry have been also
determined with the help of response of participants. So,
collected data has been analyzed in this chapter that contributed
in reaching result of this research. Chapter 5 Discussion
Chapter 5.1 Introduction
This chapter is quite important and beneficial for the researcher
to attain the research objectives by analyzing the information or
data that has been gathered from the previous chapter. At the
same time, to show the effectiveness of the research findings,
objectives were aligned with the research findings, theories,
literature review analysis and questionnaire. Additionally, with
the help of past studies, new insights have been gained that
helped to attain the research outcomes effectively. Research
objectives are as follow:
1. Objective One: To analyze the structure of travel and tourism
industry in UK
1. Objective two: To evaluate changes in the business of UK
travel and tourism industry from past decades
1. Objective third: To assess the impact of economic and social
environmental changes over the business of travel and tourism
firms in UK
1. Objective fourth: To recommend a robust framework to
determine growth for UK travel and tourism industry
From the previous chapter, findings that have been attained in
terms of analyzing impact of economic and social environmental
factors over the business of travel and tourism industry in
context of UK can be discussed as follow:
Economic and Social environmental factors
Employee’s perception towards impact of the factors over
business
Author’s point of view towards impact of the factors over
business
Interest rate
High
Average
Foreign exchange rate
High
Average
Vat Tax
High
High
UK economic policies
High
High
Lifestyle
Average
Low
Cultural and social events
High
Low
5.2 Evaluation of the findings
5.2.1 Changes in the structure of UK travel and tourism industry
Through analyzing data of literature review and questionnaire
various perceptions and views of authors and employees have
been identified that contributed in attainment of the research
objectives. From the findings, it has been evaluated that with
the help of advancement in technology, sectors that are the part
of tourism industry have been improved that increased the
business of travel industry. It has been discovered that growth
rate of travel and tourism industry is high in 2001-2010 as
compared to 1991-2000 that is supported with the findings of
Kotsanidis, Zacharatos and Papatheodorou (n.d.) and The
Tourism Industry (2000). It refers the growth of business of
travel and tourism industry in terms of increasing their
profitability and customer base at national and international
level.
At the same time, through analyzing data of Rodgers (2001),
Dale and Oliver (2005) and Thomas, Shaw and Page (2011), it
is evaluated that committees are also organized by the tourism
industry to run the business positively and comprise the fair
deal among visitors and tourism firms. From the findings it
could be interpreted that British Tourist Authority and The
English Tourism Council are the example of committees that
work for increasing business of UK travel and tourism industry
of UK in the world market. Similarly, from the response of
questionnaire, it hasbeen also analyzed that employees of travel
and tourism industry also believe that travel and tourism
industry has changed rapidly from the last two decade as they
described five major changes in the industry such as increase in
employment rate, increase in GDP, increase in number of
visitors, involvement of associations, positive changes in the
structure of travel and tourism industry. It is also supported by
the findings of Broadstock and Hunt (2010), Barnes (2002) and
Broadstock and Hunt (2010).
From the above evaluation, it is interpreted that to support the
positive changes in the travel and tourism industry, role and
involvement of different committees should be clear among the
firms of the industry. It is because clear role and responsibility
of these committees will increase positive and required changes
in the industry and maintain fairness within the business. It is
also interpreted that to run the business in global marketplace,
it is important for the firms to adopt changes as per the changes
in trends, technology, and perception of the customers.
5.2.2 Role of travel and tourism industry in country’s growth
It has been also assessed that travel and tourism industry makes
the economy of the country strong through increasing income of
individuals. At the same time, it has been also analyzed from
the data that is gathered from the questionnaire that employees
of travel and tourism industry also supported this statement that
travel and tourism industry increases growth of the country that
is supported by the findings of report of “The Tourism Industry,
(2000)”.Findings of Roe, Ashley, Page and Meyer (2004) and
Kotsanidis, Zacharatos and Papatheodorou (n.d.) depicts that
UK travel and tourism industry also increases foreign exchange
earning from other countries in terms of attracting customer
from different countries that increases chances of employment
in the country and also sustains for high profitability and
growth of the country.
It can be stated that in increasing growth of the country, travel
and tourism industry plays a fundamental role that has been
supported throughthe findings of Zare-ee and Shekarey (2010),
Duval (2007) and Hudson (2011). So, on the basis of findings, it
is evaluated that travel and tourism industry contributes in the
country’s growth directly and indirectly through increasing
employment rate, GDP, number of visitors, etc. in the country.
So, it refers the alignment of the research outcomes with the
research objectives that refer the positive attainment of the
research objectives. It is interpreted that growth of country and
growth of tourism industry are complementary of each other
that is affirmed by the findings of Dudensing, Hughes and
Shields (2011), Song, and Li (2008) and Weed (2009).
5.2.3 Evaluation of Impact of economic and social
environmental factors over the business of travel and tourism
industry
Findings from the literature review and questionnaire depicts
that economic and social environmental factors have high
impact over the business of travel and tourism industry due to
influencing strategies, policies and prices that are formed by the
firms to attract the customer’s attention. It is analyzed that
economic factors such as interest rate, inflation rate, foreign
exchange rate, Vat tax and economic policies of government
affect budget of the customers that influence their decisions to
visit in a country that is interpreted by the findings of different
authors such as Thrane and Farstad (2011), Weed (2009) and
Zhang, Song and Huang (2009). It is evaluated that high interest
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx
Research paperhttpwww.kingstonfoodbank.netStrengths.docx

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  • 1. Research paper http://www.kingstonfoodbank.net/ Strengths: Weaknesses: Opportunities: Threats: 1 – research – what are other foodbanks doing? … who can we learn from? …who is solving this? What is happening during the year in Kingston (windows to fundraise)? What have they done in the past, where are their gaps? 2 – brainstorm – share what you know, (S+W we have) and where are the opportunities and threats … 3 – best opportunities – bring the best ideas forward … work them up, develop ideas/strategies – work them through to a few tactics (short-term, long-term)
  • 2. 4 – small, deliverable … come up with a ‘step forward’ … 5 – write it up Partnership strategy to proactively get third-party events Event strategies – a great fundraiser to develop Take a current event – add to it … Board development and attraction – to add endowments and bequests Other ideas… Writing it up! STAY STRATEGIC 12pt font – Calibri – spacing 1.5 Page one – cover with your name Page two – current situation analysis – what is happening, right now. You may want to include areas of the SWOT, the strengths and weaknesses. State the area you will ‘tackle’, in hopes of improving, adding or growing. (one page). Page three - research – what you found out, site sources (one to two pages) you should provide the research, and narrate how this could/would/should/ maybe considered.
  • 3. Page four – opportunities and threats – forming the strategy for your fundraiser – within your ‘strategy area’, show the areas you feel there is or are growth opportunities or development --- working towards long-term growth and sustainability (one page). Page five – THE IDEA – this is where you showcase the fundraising idea (idea, possible partners, tactics to ensure success, extra fundraisers at an event to add to the $$$, …) I can assist you with your deliverable! Addendums – attach pieces to your presentation, to help showcase your ideas (if necessary). Rubric, in short form: Followed the format, including cover page – 5pts Professional – 10 pts CSA – 15 pts Research – 20 pts Forming the Strategy for Fundraising – 20 pts IDEA and the idea work-up/deliverable – 30 pts Running head: TRAVEL AND TOURISM INDUSTRY OF THE UK
  • 4. Research on analyzing Impact of economic and social environmental factors over business of Travel and Tourism Industry of the UK [STUDENT NAME] [INSTITUTION] [COURSE NAME] [DATE] Abstract Purpose: Purpose of this research is to explore impact of economic and social environmental factors over the business of travel and tourism industry in UK. Design/methodology/approach: This research is designed through using exploratory research design under qualitative and quantitative research formats. Additionally, inductive reasoning is also used to conduct this research for effective presentation of data. Content analysis is conducted to analyze the data by gathering data from primary and secondary sources. Random sampling method under non-probability sampling strategy is followed to maintain reliability of the research. Findings: Results of the research shows that there is wide scope for UK travel and tourism industry to increase its business in global marketplace, if, economic and social environmental changes have been addressed by the firms effectively. Economic and social environmental factors such as high interest rate, inflation rate, vat tax, exchange rate, economic policies of UK government, culture & sub-culture, life style and cultural & social events have been found that affect growth and business of travel and tourism industry.
  • 5. Research limitations/implications: This dissertation is related with the assessment of the economic and social environmental changes in UK and with the high number of respondents; it could be not possible to collect data within limited time and cost. Additionally, action plan and budget plan should be followed to reduce the limitations of the research. Practice implications: Findings are beneficial for UK travel and tourism firms for increasing their growth and success through determining the impact of economic and social environment over the business of the industry. Originality/value: This study contributed in the literature related to the economic and social environmental factors that increases or decreases business of UK travel and tourism industry. Table of Contents Chapter 1 Introduction 5 1.1 Research Overview 5 1.2 Research Background 6 1.3 Research problem 6 1.4 Purpose Statement 7 1.5 Research Aim and Objectives 8 1.6 Research Question 8 1.7 Rationale of the Study 8 1.8 Scope of the Study 9 1.9 Summary 10 Chapter 2 Literature review 11 2.1 Introduction 11 2.2 Structure of UK travel and tourism industry 11 2.2.1 Types of Tourism: 12 2.2.2 Sectors included in Travel and Tourism Industry of the UK 14 2.2.2.2 Travel Agents: 17 2.2.3 Attractive Places in the UK 19 2.3 Changes in UK travel and tourism from past two decades 22 2.4 Economic and Social Environmental Factors in Travel and Tourism Industry: 29
  • 6. 2.4.1 Economic factors affecting UK tourism industry 29 2.4.2 Social environmental factors affecting UK tourism industry 35 2.5 Association that work for UK travel and tourism industry: 38 2.6 Summery 39 Chapter 3 Research Methodology 40 3.1 Introduction 40 3.2 Research Design 40 3.3 Research Approach 41 3.4 Research Philosophy 42 3.5 Data Collection methods 42 3.6 Sampling 43 3.7 Questionnaire 43 3.7.1 Trait of Questionnaire 43 3.7.2 Design of Questionnaire 44 3.7.3 Piloting 44 3.7.4 Statistical data analysis 44 3.8 Research Form 45 3.9 Ethical Guideline 46 3.10 Summary 46 Chapter 4 Findings and data analysis: 47 4.1 Introduction 47 4.2 Findings from literature review analysis 47 4.2.1 Structure of Travel and tourism industry in the UK 47 4.2.2 Changes in UK travel and tourism industry 48 4.2.3 Impact of economic environmental factors over the business of UK travel and tourism industry 49 4.2.4 Impact of Social environmental factors over the business of travel and tourism industry in UK 50 4.3 Findings from questionnaire 51 4.4 Summary 59 Chapter 5 Discussion Chapter 60 5.1 Introduction 60 5.2 Evaluation of the findings 61 5.2.1 Changes in the structure of UK travel and tourism industry 61
  • 7. 5.2.2 Role of travel and tourism industry in country’s growth 62 5.2.3 Evaluation of Impact of economic and social environmental factors over the business of travel and tourism industry 63 5.3 Recommendations to improve business of travel and tourism industry 65 5.3.1 Adopt flexible and effective Services 65 5.3.2 Offer Discount and other services 65 5.4 Summary 66 Chapter 6 Conclusion 67 6.1 Summary 67 6.2 Contribution 69 6.3 Limitations and Recommendations 70 References 72 Appendix 1 81 Chapter 1 Introduction1.1 Research Overview The main purpose of the research is to assess travel and tourism industry of the UK. Main objective of the research is to identify the impact of economic and social environmental factors over business of travel and tourism industry of the UK. So, a systematic or customized way in terms of chapter one to six is formulated to attain the objectives of this research effectively. Particular information that is comprised by particular chapter can be discussed as follow: Chapter one is related with the discussion of main objectives that are base of this research. In this chapter, background and main purpose of the study is included. Along with this, research problem is also discussed in this chapter. Research rationale and purpose is also elaborated in this chapter to present a systematic way to attain the research objective. Second chapter is related with the literature review that comprises of conceptual framework of the research. In the first portion of this research, theoretical background is included that is followed to attain the research aim. So, the main terms are discussed in this chapter.
  • 8. Third chapter is related with the methods that are followed to solve the research problem is known as research methodology. In the research methodology section, various parts are included such as research philosophy, research method, research design, research approaches, etc. concepts are discussed those are followed to reach at the result of this research. Data collection that is used to collect data is also elaborated in this chapter. In addition, case study in terms of assessing the impact of environment on travel and tourism firms in the UK industry is presented effectively. In the fourth chapter, findings and data analysis that are received from analyzing collected data are discussed. Data that will be collected through case study analysis and through the response of questionnaire will be discussed in this chapter to reach at the result of this research. Fifth chapter is related with the discussion of the research findings. Sixth chapter is related with the conclusion and recommendation part of the research. This chapter shows the existing impact of economic and social environment over the business of travel and tourism industry of the UK. Recommendations to increase profitability and income of travel and tourism industry are also discussed in this chapter. 1.2 Research Background In the competitive business environment, competition and number of competitors are increasing rapidly in every industry that put pressure on the firms to manage each and every point in attention. In this, travel and tourism industry is interesting and full with challenges such as environmental threats (Huybers, 2007). In this context, weather is a supportive factor that supports or encourages travel and tourism in particular country (Marvell, 2005). On the customer traffic and booking, climate has impact in positive and negative manner over this industry. As in the UK, different economic, social and other environmental factors are included under the factors that have impact on the business of travel and tourism industry in positive
  • 9. and negative manner such as demand, income level, culture, pollution, safety, security, peaceful environment, cultural & historical place, etc (World Tourism Organization and United Nations Environment Program, 2008). 1.3 Research problem In the present business environment, competition is increasing rapidly that has changed scenario of running the business in the marketplace. At the same time, present market condition as well as environment also has impact on the business that makes it is critical for the firms to stay in a good position with attractive customer base and high profit. Various problems have been faced by the researcher throughout this research that is related with identifying the impact of environment over travel and tourism industry of the UK (Huybers, 2007). Several problems are described by various authors in this industry that are faced by the firms to run their business successfully. In the travel and tourism industry, the impact of current trends and environmental pollution also presented that also affects the business of the firms that run their business in this industry (Holden, 2008). So, to analyze the impact of changed environmental condition on the travel and tourism industry of the UK is included under the research problem (World Tourism Organization and United Nations Environment Program, 2008).1.4 Purpose Statement Main purpose of this research is to increase knowledge and literature about the travel and tourism industry of the UK. Along with this, another purpose of this research is to analyze the impact of economic and social environmental factors on the business of travel and tourism industry in UK (Marvell, 2006). So, it can be argued that the main point of this research is travel and tourism industry of the UK. Along with this, it can be also stated that economic and social environmental factors are important part of the travel and tourism firms that can be used by them as a supportive tools to increase the customer base and income of the companies (Huybers, 2007). Along with this, high competition and use of effective & supportive strategies encouraged the tour and travel firms to
  • 10. develop their strategies to attract the customers and increase business and organizational growth & success (Schwab, Blanke and Chiesa, 2008). So, to attain the objectives or aim of the firms, different supportive and effective frameworks are developed as well as used by these firms according to the economic and social environment and culture of the UK (Dale and Oliver, 2005).1.5 Research Aim and Objectives Main aim of this research is to evaluate the impact of social and economic environment over the business of travel and tourism industry in the UK. This aim is attained through following some objectives. These objectives are as follow: 1. To analyze the structure of travel and tourism industry in UK 1. To evaluate changes in the business of UK travel and tourism industry from past decades 1. To assess the impact of economic and social environmental changes over the business of travel and tourism firms in UK 1. To recommend a robust framework to determine growth for UK travel and tourism industry 1.6 Research Question 1. What is the structure of UK travel and tourism industry? 1. What changes in the UK travel and tourism industry have occurred from last two decades such as from 1991-2000 to 2001-2010? 1. Which economic and social environmental factors affect and their impact on business of travel and tourism industry in UK?1.7 Rationale of the Study Environment is an important part of the travel and tourism industry that has become the reason to attract the customers towards particular country. In this, economic and social environment are recognized as most prominent factors that affect to the business of travel and tourism industry in any country. To develop understanding and knowledge about these factors, example of different firms of the UK those are operating in this industry are taken as a case study section (Marvell, 2006). At the same time, to increase the growth and customer base, suitable framework is also supported in this research. To increase income and profit of the firm, attractive
  • 11. frameworks are also discussed in this research that will be beneficial for the travel and tourism firms to increase their customer base and business in the country (Schwab, Blanke and Chiesa, 2008). These frameworks will also help the firms to avoid the negative impact of climate and environmental changes on this industry by diverting customer’s attention from one point to another point. Additionally, to enhance the knowledge about the factors that are included under the environmental factors, this research is beneficial (Holden, 2008).1.8 Scope of the Study The main aim of the research is to assess the impact of economic and social environment over the business of travel and tourism industry in the UK. Role of these economic and social environmental factors in organizational growth and failure is also included under the aim of this research. Additionally, to search or identify appropriate strategies for increasing income of the travel and tourism firms in the UK is also reflected into the purpose of this research (World Tourism Organization and United Nations Environment Program, 2008). So, to conduct this research, several supportive tools, techniques, concepts and factors are analyzed and discussed in this research. So, these concepts have wide scope in terms of identifying factors that support the sustainability of travel and tourism firms in this industry in good position and increase income of them into positive direction (Dale and Oliver, 2005).1.9 Summary Concepts that are included in the overall research are discussed in this chapter in the form of research overview that consists of information about the whole research. Along with this, research background that stands to conduct this research has been also described in this chapter. After this, main purpose and objectives of this research have been also elaborated that is main theme of this research related to the identification of environmental factors that affect travel and tourism industry. Rationale and scope of this study have been also discussed in this chapter.
  • 12. Chapter 2 Literature review2.1 Introduction Economic and social environmental factors have significant impact on the organizational growth and success in terms of supporting their services and products. Several concepts and factors are discussed in this chapter. This chapter is important to enhance understanding about the different aspects and concepts related to travel industry and its structure. It is also important to explore the information that would be helpful to achieve the research aim and objectives significantly. It would also be effective to determine the reliability of research findings based on the concepts and theories that would be identified in this chapter. This chapter is covered into various sections. In the first section, changes in inbound and outbound travel and tourism industry of the UK are covered that comprises of various aspects that are part of the travel and tourism industry. In the next section, economic and social environmental factors and their impact in travel and tourism industry is identified. Different UK organizations that are working in this industry are also assessed in this chapter to show the impact of economic and social environmental factors on their growth and success. 2.2 Structure of UK travel and tourism industry In the UK, travel and tourism industry is included under the fastest growing industry. According to Smith and Rowe (2005), tourism refers to the activities of people that are organized by the persons in the form of travelling and staying at the place that is outside from the usual environment, but no more than one year for business, leisure and other purpose. As discussed by Department of Culture, Media and Sport (cited in Smith and Rowe, 2005) that in the UK in 2002–2003, total value of travel and tourism industry was £91.8 billion that indicates to the importance of this industry in the country’s economic condition. Along with this, it also shows that it brings foreign exchange earnings from other countries in terms of attracting customer and creating more jobs within the country. It is affirmed by Marvell (2005), that travel and tourism
  • 13. industry sustains the growth and development of the UK by creating more jobs and employment in the domestic country. It also creates economic opportunities for UK by supporting local communities. Under the structure of the travel and tourism industry of the UK, different aspects are included such as nature of the industry, size and scale, type of tourism and travel, organizations that are operating in this industry in the UK. 2.2.1 Types of Tourism: Three types of tourism are presented in the UK. These can be discussed as follow: Inbound Tourism: It refers travel by the person who is living outside the UK and visit in the UK for a particular time period less than one year. It is endorsed by Smith and Rowe (2005) that inbound tour operators are responsible to accomplish the needs and wants of the overseas visitors. It is also stated by Marvell (2006) that in 2003, sixth rank was gained by the UK in the earning from the travel and tourism industry. About £11.9 billion was earned by the UK from 24.7 million overseas visitors in 2003. Following table shows the top five overseas markets for the UK. Top five overseas markets for the UK in 2003 (Sources: Smith and Rowe, 2005) Domestic tourism: According to Smith and Rowe (2005), local residents that travel within their home country are included under the domestic tourism. In this type of tourism, barriers that are faced by the visitors such as language, currency and documentation are low. On the other side, it is supported by Marvell (2005) that to take break for short period of time, this type of visiting is preferred by the visitors. So, it can be stated that domestic tourism is related with the visiting within the country. It is discussed by Schwab, Blanke and Chiesa (2008), in the UK, beaches or seaside destinations are included under the domestic visiting places that attract the local customers. For
  • 14. example, Blackpool and Great Yarmouth attract the customers to visit and travel. In 2002, about £61 billion was earned by the domestic tourism industry in UK (Schwab, Blanke and Chiesa, 2008). Outbound Tourism: Collins (2004) discussed that ooutbound tourism refers the visitors or residents of the UK that visit outside the UK. It is also supported by Marvell (2005) that sometimes, people in UK go outside the country for leisure and business purposes that is countered as a part of outbound tourism. Many local firms provide facilities to the local residents to visit in other countries that are included under the outbound tourism. So, it can be stated that to assist the people and to meet with needs of the customers, effective and specialist services are provided by the visiting firms through using effective travel arrangements. 2.2.2 Sectors included in Travel and Tourism Industry of the UK Various sectors are available that are operating in travel and tourism industry of the UK. According to Beaver (2005), various organizations are operating or running their business in each sector of travel and tourism industry. It is also supported by Swarbrooke and Horner (2001) that different tasks or functions are done by different firms under different sectors to attract customers and support travel and tourism industry in any country. According to Marvell and Hayward (2005), sectors that are operating in the travel and tourism industry have different roles, responsibilities and functions to maintain relationship with the industry into positive direction. Additionally, horizontal and vertical integration is also applied by these sectors to run their business into positive direction. Sectors of this industry can be discussed as follow: 2.2.2.1 Transport: According to Airey and Tribe (2005), transport is one of the most important parts of the travel and tourism industry. It is
  • 15. also affirmed by Duval (2007) that transport sector works as backbone for travel and tourism industry. It is because it brings visitors together, facilitates trade, and sustains tourism within the country that also refers the sustainable tourism. It is also discussed by Goodwin (2001), in the transport sector various services are included such as airline & airport, car hire business, network train & train operating companies, ferry and cruise companies, etc. Following diagram shows the supportive business or parts that are included under the transportation sector of travel and tourism industry in the UK: (Source: Marvell, 2006) Air travel: Airports: As discussed by Schwab, Blanke and Chiesa (2008), in the UK “The British Airport Authority” (BAA) is the main player in the airport possession that owns many airports in the UK such as London Heathrow, London Stansted, Edinburgh, London Gatwick, Southampton and Aberdeen. Additionally, BAA also has contracted with other airports in other countries at global marketplace. At the same time, other airports like London Luton, Manchester, Birmingham, etc. are also presented in the UK that supports the travel and tourism industry in the UK. It is also supported by Medlik (2003) that these airports directly or indirectly support the travel and tourism industry of the UK in terms of attracting customers through offering basic facilities such as restaurants, toilets & shops, etc. So, it can be stated that location and infrastructure of the airport also supports the travel and tourism industry by attracting customers. Airlines: As discussed by Xiang and Formica (2007), better airline services also support the travel and tourism industry into positive direction. British Airways is the largest airline company that is working in the UK and comprises different types of products’ services for its customers to attract and retain them from economic class to club world. At the same time, other airlines are also available in the UK that supports the travel and tourism industry of the UK like, Virgin Atlantic,
  • 16. British Midland and charter airlines such as Britannia, Monarch airways. It is also sustained by Collins and Autino (2010) that low cost airlines are also working in the UK that charge low cost to the customer by cutting extra charges on the customers. So, it can be stated that airlines also works as an important part of the travel and tourism industry that attracts and satisfies the customers. Sea Travel: Ferry Travel: According to Reichela and Haberb (2005), ferry travel is included under the transportation sector that supports the travel and tourism industry of the UK positively. It is also supported by Gössling, et.al (2011) that ferry travel increases business of the travel and tourism industry because this way is cheaper rather than having personal car for travelling in the UK. So, it can be inferred that many people prefer to travel by ferry that supports the travel and tourism industry in terms of attracting customers through offering better services and affordable charges. The Cruise Market: According to Gustafson (2012), in this sector of transportation, high growth is presented over the last years. There is wide demand of cruise in the UK that supports the travel and tourism industry of the UK in positive directions. Various new ships are launched in the UK such as Queen Mary 2 in 2003-2004 and many more that attract the customer to visit. It is also supported by Marvell (2005) that in 2004, about 1.14 million people visited from cruise. Additionally, families and younger people are targeted by the firms that are operating in this segment that also reflects the attention of this sector to encourage travel and tourism industry in UK. It is also stated by Scott and Lemieux (2010) that to attract local customers, river cruise is also organized by the cruise operator firms to support business of travel and tourism industry into positive direction. Local rivers such as Danube, Nile, Rhine and Moselle are presented in the UK that supports the river cruise. Various companies operate successfully in the UK like, Royal Caribbean, P & O, Cunard and Princess Cruises.
  • 17. Road travel: Marvell (2005) stated that private car is taken under the road travel that dominates other travel options in UK. Most of local and foreigners preferred to hire a car for visiting in the UK that is included under the car-rental sector and it is also a part of travel and tourism industry. It is also endorsed by Smith (2005) that car rental sector also offers effective services to the customers at affordable price that attracts them for visiting in the UK. So, it can be stated that car rental sector is also important sector for enhancing business of travel and tourism industry in UK. 2.2.2.2 Travel Agents: Travel agents are also included under the parts of travel and tourism industry of the UK. According to Martín (2005), travel agents are the people, who provide suggestion and information along with selling and administrating booking for the tour operators to support the business of travel and tourism positively. It is also affirmed by Rowe, Smith and Borein (2002) that travel agents also provide different types of services and products such as selling flights, ferry bookings, accommodation, car hiring, insurance, etc. Travel agents also work as tour operators to increase travel and tourism in the UK. Types of Travel Agents: Marvell (2005) stated that about 6500 travel agency shops are working in the UK that affirms the business of travel and tourism industry of the UK into positive direction. It is also discussed by McKercher, Packer, Yau and Lam (2003) that multiple chains are existed that are linked with the tour operators in the UK. Travel agents are included as a part of multiple chains of the travel and tourism industry. For example, Thomas and going place and Thomas Cook are linked with the tour operators in the UK that supports the growth of travel and tourism industry by attracting the customers through providing effective offers to visit UK (Middleton, Fyall, Morgan and Ranchhod, 2009). Additionally, it is also discussed by Bergh (2008) that miniples
  • 18. are another type and small chain of travel agents and presents a particular region of country. Another type of travel agents is independent travel agents (Matias, 2009). These types of travel agents run their business by own or small team in the competitive marketplace. For example, Travelcare is the largest independent travel chain in the UK that earns £430 million per year (Marvell, 2005). It is also stated by Dudensing, Hughes and Shields (2011) that implants are also countered as travel agents that hold-up the business of travel and tourism industry of the UK into positive direction. These types of agents set their firm in different type of businesses, but mainly deal with requirements of the travellers. It is also supported by Haven-Tang (2005) that to run the business of travel and tourism industry positively, regulatory body is also made by the travel agents that work for sustaining and increasing business of travel and tourism industry in the UK. The association of British Travel agents is the example of regulatory body of travel and tourism that represents to this sector and works for increasing business of travel and tourism industry in UK and in the global marketplace (Gössling, 2002). Call Centres: According to Swarbrooke and Horner (2001), call centres are also used by the travel and tourism industry to support the business of this industry and to attract the customer by providing knowledge about the attractions of a particular region. It is also supported by Marvell (2005) that today most of customers prefer telephones, or internet to get the knowledge about the visiting place in any country rather than hiring a travel agent. In context of UK, TUI is a tour operator that runs its call centre out of Newcastle under its Lincoln brand that offers holiday to the customer from the side of travel and tourism firms. High productivity is offered by the staff or management of these call centres due to offering incentives and bonus to them (Holden, 2008). It helped the firms to attract customers and increase their customer base. Call duration, complaint ratio, call answering
  • 19. time, etc. are monitored by the management of firm carefully to support improvement in the services of firms (Middleton and Lickorish, 2007). Web-sites: According to Thomas, Shaw and Page (2011), in the era of high tech advancement, internet has become an important part of the individual’s life due to gathering or availing knowledge and information about particular phenomenon. In addition, in context of travel and tourism industry web-sites has become supportive tool for developing business of this industry. It is because it offers whole information about the packages of firms, visiting places in particular country, expenses, services, and so on that helps the firms to attract the customers for availing their services (Beaver, 2005). So, it can be argued that web-sites are also works as travel agents for travel and tourism industry in UK. 2.2.3 Attractive Places in the UK According to Rodgers (2001), locations in any country play a fundamental role to attract the customers as well as to increase customer base. To support this statement, various surveys are organized by the travel and tourism companies to assess trends and other supportive tools from the view point of visitors. In the UK, travel and tourism industry, annual survey is organized by the national tourist boards of England, Scotland, Northern Ireland and Wales to assess visitors’ perceptions and other related trends (Dale and Oliver, 2005). Various attractions are present in the UK that attracts the customers to visit there. These can be discussed as follow: Natural Attractions: As discussed by Thrane and Farstad (2011), in UK, various natural resources are available that attract the customers to visit there. It is supported by Dale and Oliver (2005) that natural parks, lakes, beaches, landscape; heritage coasts, etc. are included under the natural attractions that catch the attention of the customers to visit in the UK. It has impact over the business of travel and tourism industry positively through increasing number of customers in the country.
  • 20. Man-made Attractions: According to Zaher (2007), in the technical business environment, with the help of using effective technology and creativity various attractions are made by the technicians and people in the UK that attract the customers to visit in the country. In the UK, many historic houses are presented that are cared by the national trusts or English Heritage to maintain attractiveness of the heritages. Museums and galleries are also available in the UK that attracts the customers to visit there and spend their time. In this, Tate, Tate Modern, the Victoria, Albert Museum and the Museum of Moving Image are present in the list of heritage place that invites the customers towards them. In this, theme part is most man-made attractive point (Hall, 2011). For example: Thorpe park is an attractive place under the theme part that attracts the customers to visit there. (Sources: Marvell, 2005) Events: According to Zare-ee and Shekarey (2010), events are organized by different firms of travel and tourism industry to increase attention of the customers towards country that increases number of visitors for particular country. It is also affirmed by Duval (2007) that many events are organized in the UK such as Edinburgh Festival and the Notting Hill Carnival that attracts the customers. Additionally, many events are organized by the World Travel Market in the UK under tourism sector to enhance attractiveness of this industry. At the same time, many paying and non-paying attractive places are also presented in the UK that support the business of travel and tourism in the country by attracting customers to visit or spend their time in the UK (Hudson, 2011). Museum is included under the paying attractive place that attracts the customers to see heritage of nations’. Blackpool Pleasure is non-paying attraction for the customers that draw the customers towards it. So, it can be stated that ultimate target of conducting events is related with the increasing business and profitability of the travel and tourism industry in the UK. Following chart shows
  • 21. the most attractive places for visitors in UK: Top ten paid attraction places in the UK (Sources: Marvell, 2005) Top ten free attraction places in the UK (Sources: Marvell, 2005) 2.3 Changes in UK travel and tourism from past two decades Tremendous changes have been seen in the UK travel and tourism industry from last two decades such as from 1991-2000 to 2001-2010. It can be stated on the basis of growth rate of this industry that from the year of 1991 to 2000, growth rate of this industry was low. In 1999, about 25.5 million visitors came to the UK for visiting and total tourism expenditure of them was £61 billion. Along with this, employment in that year was about 1.8 million people (The Tourism Industry, 2000). Following chart determines the employment in tourism related industries: (Source: The Tourism Industry, 2000) In the above diagram, employment during 1999 has been mentioned that reflects the condition of tourism industry in the UK. At the same time, it is discussed by Kotsanidis, Zacharatos and Papatheodorou (n.d.) that contribution of the industry in the GDP can be calculated in the form of generating revenue. It is also assessed that in 1999, overseas tourist spent £13 billion that was low as compared to 1998. At the same time, it is supported by the report of “The Tourism Industry, 2000” that in 1999 domestic expenditure was measured about £16 billion. On the other side, it is assessed that in 1998, it was £14 billion on travel and tourism. In 1999, domestic expenditure was high by 14% from 1998. In the GDP of country, about 3.6% was contributed by the total tourism revenue in that expenditure from tourist on day trip is not included. Contribution of UK travel and tourism industry to the GDP from 1990 to 1999 is shown in the following diagram (The Tourism Industry, 2000).
  • 22. (Source: The Tourism Industry, 2000) (Source: The Tourism Industry, 2000) To support the positive growth in UK travel and tourism industry, forecasting was also conducted by the committees. Forecasting for tourism expenditure that is set by the committees is as follow: (Source: The Tourism Industry, 2000) These forecasts are related with the cash prices, but at the same time, inflation is expected by the committees in this industry that increase the expenditure in the UK around 4% per annum (Kotsanidis, Zacharatos and Papatheodorou). (Source: The Tourism Industry, 2000) In the above diagram, forecasting towards number of tourists from 1998 to 2003 is described that depicts the reasonable changes within the industry. It also reflects continuous growth of the industry in the overseas and UK market. (Source: The Tourism Industry, 2000) From the last 20 years, increase in overseas visitors to the UK from 1978 to 1999 is reflected in above diagram that shows the growth of the business of this industry (Kotsanidis, Zacharatos and Papatheodorou). At the same time, from 2001 to 2010, effective and positive changes have been seen in the travel and tourism industry of the UK through the following chart: (Source: Travel and Tourism) Through the report of “travel and tourism”, it is assessed that from the time period of 2008 to 2010, growth of the UK travel and tourism industry has been grown significantly. Number of visitors has increased per year in the UK that supported the high growth and profitability of this sector. Number of visitors that
  • 23. are measured in June 2011 was 30.6 million that was 29.4 million in 2010. Additionally, in 2009, total expenditure of travel and tourism industry of the UK fell down from last year by 5.5% or 70.17bn. Recession in 2009 affected the travel and tourism industry of the UK negatively (Travel and Tourism). Increase in the number of visitors from 25.5 million to 29.4 million from the year of 1999 to 2010 reflects the growth and effective business of travel and tourism industry of the UK. It is supported by Roe, Ashley, Page and Meyer (2004) that increasing numbers of business that depend over travel and tourism industry also show the improvement of this industry. High technical environment and positive environment supports the impact of environment over the travel and tourism industry. Different committees work to support the business of travel and tourism industry (International Dimensions of Climate Change). These are as follow: British Tourist Authority: This authority is responsible to provide and suggest the effective ways and recommendations to the government and public bodies to solve any problem or matter that are directly related to the business of travel and tourism industry. It is also supported by Goodwin (2001) that this committee is responsible for improving facilities and increasing UK trade in the global market. It is also stated in the report of “The Tourism Industry, (2000)” that different work such as collection of appropriate information, offer information related to impartial tourist, etc. is also conducted by this committee. The English Tourism Council: “The Tourism Industry, (2000)” concludes that this committee is responsible for the formation of the strategies that are beneficial for travel and tourism industry of the UK. Different areas such as emerging market and sectors, quality, accommodation schemes, championing sustainable tourism, etc. are included under the working criteria of this committee. (Source: The Tourism Industry, 2000)
  • 24. These committees work for protecting business of travel and tourism industry in the UK. Along with this, to minimize the negative impact of environment over the travel and tourism industry of the UK, appropriate actions are also taken by these committees that help to comply with the changes in business environment. 2.4 Economic and Social Environmental Factors in Travel and Tourism Industry: There are different factors like economic and social factors that have successfully affected the growth of tourism industry in UK. In the words of Broadstock and Hunt (2010), the most important factors that affect the UK tourism industry are the economic and social environmental factors. As these factors have direct link up with tourism industry, the changes in these factors have severely affected the tourism industry in UK. In order to provide smoothness to the UK tourism industry, it is very important to consider these factors effectively. 2.4.1 Economic factors affecting UK tourism industry In today’s growing globalized environment, economic factors play significant role in the growth of business (Barnes, 2002). There are lot of economic factors that are affecting the travel and tourism industry in the UK. UK is a fast growing country in the area/business of travel and tourism industry. Hence, the economic environment of the UK has a direct impact on the growth of travel and tourism industry. Following are some of the economic factors that have simultaneously affected the business of tourism industry in UK: High interest rates: According to Broadstock and Hunt (2010), high interest rate is one of the important economic factors that are affecting the business of tourism industry in UK. It is because with high interest rates, the prices of all necessary products are increasing that have significant impact on the tourism industry. As tourist around the globe look for the cheap destinations for their travel purpose, the interest rates have played a vital role in affecting the business of tourism industry in UK. In support of this, Patterson, Esteves, Dinsdale and
  • 25. Guwy (2011) has stated his view by stating that every tourist look for the cheap options, while travelling and if he gets good option for this, one would opt for the same. In today’s fluctuating economy as the prices of things have increased, it becomes very difficult to maintain the growth of tourism industry along with the high interest rates. In the words of Rummery and Coleman (2003), UK tourism industry is also influenced from its country’s high interest rates. It has forced many of the visitors to think again for UK as their tourism destination because of the high interest rates and consequently high cost. But in the words of Uddin and Boateng (2011), high interest rates of UK are not much responsible for the loss of business in UK tourism industry. It is because both tourism industry and high interest rates are contradictory things and have no impact over each other. Zaher (2007) believes that people decide their tourism destinations much before these economic factor and do not give importance to these factors while going for such destinations. People are already prepared for the expenses that are going to incur while travelling. Zare-ee and Shekarey (2010) states that high interest rates do not have much impact over the business of tourism industry in UK as people are already prepared for it. As there are so many expenses associated while travelling, so people do not give preferences to the factors like high interest rates while deciding their tourist destination. High inflation rate: According to Uddin and Boateng (2011), high inflation rate is also one of the important economic factors that are affecting the business of tourism industry in UK. With high inflation rate, it becomes very difficult for the government to provide effectiveness to the tourism activities in order to attract maximum number of tourist. High inflation rates leads to the affecting UK tourism industry through increasing the total budget of tourist in the country. Many of the tourists may plan for alternative options for the travel destination because of the high inflation rate in UK. In support of this, Zare-ee and Shekarey (2010) has stated that
  • 26. with the growing fluctuations in the world economy every tourist has a limited budget for their travelling purpose and if the expenses go beyond their budget they mostly opt for alternatives. This shift of tourist regarding their travel destination has significantly affected the business of tourism industry in UK. In the words of Dudensing, Hughes and Shields (2011), budget is the most important factor while taking decision regarding the travel destination for people and if it goes beyond the budget one would rather cancel or look for another options. Without the required budget, it is not possible to take effective decision regarding tourist destination. But Frey and George (2010) has denied this stating that tourist generally decide their holidays much before. So it does not have great impact over the decision of tourists regarding their destination choice. At the same time, while travelling, there are so many expenses associated so it would not be right to say that high inflation rate has affected the business of tourism industry in UK. With so many expenses people do not generally see the inflation rate while travelling and nor it have any impact over the business of tourism industry in UK. Dudensing, Hughes and Shields (2011) have also supported this view by stating that high inflation rate generally affects the prices of products, but it has negligible impact over the tourism industry. This is far behind in the list while taking decision regarding any tourist destination. The main factors behind the decision regarding tourist destination is the point of attraction that the place is having. Although it may affect the business for a short time, but its impact is negligible in long-run as people do not wait for the prices to come down. Exchange rate: This is another important major economic factor that affects the business of tourism industry in UK. The exchange rate of UK is comparatively high than other countries so one has to invest more in terms of currency to visit in UK. In the words of Gössling (2002), with high exchange rate, the budget of the people also increases automatically that affects their decision regarding their travel destination. Apart from
  • 27. this, as the currency of UK is also not directly exchanged with many other countries’ currency, it also has its impact over the tourism industry in UK. People have to convert their currency first into euro or pound that ultimately affects the ultimate amount from exchange that affects the decision of tourists. In support of this, Song, and Li (2008) stated that if the currency is exchange for two times, the original amount after the exchange automatically decreases. It is because there is certain percentage also that is charged for the exchange between two currencies. So if this cost rises at great level then it forces people to look for another option as most of the people have a limited budget for their travelling. But in the words of Thomas, Shaw and Page (2011), exchange rate do not have much impact over the tourism industry in UK as exchange rate is common if a person is going for a foreign tour. The tourists in UK generally come from Middle-East and Asian countries, so there is limited chance of affecting their choice because of exchange rate. Dudensing, Hughes and Shields (2011) have also supported this view by stating that this is the important element associated with foreign travelling, so it could not be regarded as an affecting tool for tourism business in UK. Rather, it provides effectiveness to the tourism industry through generating good amount of foreign currency. Apart from this, the currency of UK is almost exchanged with every currency of the world so instead of affecting the business it enhances the effectiveness of tourism industry in UK. VAT tax: This is another important economic factor that is affecting the business of tourism industry in UK. The increase and decrease in the rate of VAT has subsequently affected the visitors’ attraction and their accommodation. In the words of Thrane and Farstad (2011), high VAT rate in UK has great impact over the tourist as it forces to lose the number of tourists for the country. As the tourism industry is highly price sensitive and intense to international competition, it is very important to keep the VAT tax low in order to attract maximum number of tourists. As the UK government is also functioning under EU
  • 28. legislation, it is unable to minimize the VAT rates that have greatly affected the business of tourism industry in UK. Weed (2009) has also supported this element as an effective cause for affecting the business of tourism industry in UK. Most of the countries other than UK have lower VAT rates that enable them to attract maximum number of tourist in their country. As it minimizes the overall budget of the people regarding their travelling, it is very important to decide the tourist destinations for people. At the same time, it also affected the competitiveness and tourism balance of payment that is affecting the business of tourism industry in UK. According to Zhang, Song and Huang (2009), the high rate of VAT have greatly affected the tourism balance deficit from 3.9 billion pound in 1996 to 18 billion pound in 2006. But according to Gössling (2002), the high rate of VAT has also increased the revenue for the tourism industry in UK. With this revenue, the government can again develop new tourist destinations to attract the tourists. Although it has affected the number of tourist visiting UK, but with increased VAT rate, the amount of revenue has not been affected. In support of this, Zhang, Song and Huang (2009) have shared their views that high rate of VAT is an income generating mechanism for the tourism industry in UK. With high rate of VAT, the government has been able to meet the expenses of tourism industry. UK economic policies: The economic policies of UK government are also responsible for ups and down in its tourism industry. The economic policies of the government are much complex that affect the effectiveness to the tourism industry in UK. In the words of Prideaux (2005), with rigid policies, the government has affected opportunities in the tourism industry in UK. The government has increased the Air Passenger Duty (APD) on the tourist that has severe impact on the tourism industry in UK. With increased APD, the number of passengers has subsequently decreased. According to Getz (2008), the high Air Passenger Duty charged by the government has not only minimized the number of tourist visiting the country but also
  • 29. caused a loss of attraction among the tourists. Apart from this, Pay as You Earn is another major tax incurred by the government over tourism industry. This tax also has influenced the hotel industry and catering sector that are affecting the tourism industry in UK. In the words of Andersson & Getz (2009), with this tax, the hotel industry and catering sector is not able to provide the required facilities to the tourists visiting their hotels because they have to deposit maximum of their deposits in terms of tax to government. This has a great influence over the development activities in tourism industry. According to Hjalager (2010), London has been considered as the starting and finishing point of scheduled tours. But with the increase in APD and other taxes related to tourism the scenario has totally changed. Today, London has been regarded as the secondary option as the starting and finish point in any schedule tour. Dwyer, Edwards & Roman (2010) has stated their views by stating that the economic policies of the UK government are mostly responsible for affecting the business of tourism industry in UK. As it does not allow the opportunities to exist with tourism industry, it is regarded as the major cause. But Coles & Shaw (2004) believe that the economic policies of UK are meant to provide effectiveness to UK tourism industry. Although, there are some changes required but the policies are quite effective to protect the industry from downturn. Today, with the economic changes in the world, it has become more important for the countries to come up with corrective measures to protect their growing economies. The economic policies of UK are also the result of changing economic condition around the world. According to Kozak & Martin (2012), government has formulated such policies to protect the tourism industry rather than to affect its business operations. 2.4.2 Social environmental factors affecting UK tourism industry Apart from the economic factors there are also several
  • 30. social environmental factors that affect the tourism industry in UK. The social environmental factors have measurable impact over the business of tourism industry in UK. In the words of Gibson & Lepp (2003), following are some of the social environmental factors that affect the UK tourism industry from business point of view: Culture and sub-culture: Both culture and sub-culture is the most important elements of social environmental factors that affect the business of tourism industry in UK. Culture is the trends going in a particular market. In the words of McCabe (2009), culture and sub-culture are important elements in taking decision regarding tourist destination. It is because, while travelling, people not only get attracted to the point of attraction rather they also come to notice the culture of that particular country. It is also one of the reasons behind the people travelling to different countries. According to Catlin, Jones & Jones (2011), the richness of cultural factor has played an important role in determining the growth of tourism industry in UK. With wide cultural influence, it has been able to provide effectiveness to the growth of tourism industry in UK. As UK has a great cultural history, it has been able to attract maximum number of tourists to UK. But in the words of Prideaux (2005), in today’s environment, people generally do not give much importance to cultural factor as an influencing factor in taking decision regarding tourist destination. As people do have much time in today’s fast moving world they generally opt for the place where they could really relax. Getz (2008) has different view regarding this. In his words, people choose their travel destination with taking different aspects into consideration. Lifestyle: This is another important element of social factor that is affecting the tourism industry in UK. In the words of Andersson & Getz (2009), lifestyles of people are mainly attached to fashion, trends and beliefs that are directly having its influence over the tourism industry. As people in UK are very fashionable, it automatically attracts people from different
  • 31. countries. Hjalager (2010) has also supported this view stating that with high fashion, UK is able to create a huge base of tourist. Today, maximum numbers of tourist are attracted because of the fashion and trends in the country. It is more effective mean to attract tourists from the globe. But Dwyer, Edwards & Roman (2010) believes that lifestyle keeps on changing and it is not permanent, so it would not have great influence over the business of tourism industry in UK. As UK has similar lifestyle in compare to most of the European countries, it is not able to attract tourists because of this factor. At the same time, most of the tourists do not come to see the lifestyle of particular countries, so it is not having any influence over the number of tourists in the country. In addition to this, lifestyle is very different from tourism activities, so it cannot be said that it influences the business of tourism industry in UK. Cultural and social event: This is also an important aspect that affects the business of tourism industry in UK. There are so many entertainment and exhibitions programs are conducted in the year that have subsequently attracted several visitors from different countries in UK. According to Coles & Shaw (2004), with wide variety of cultural events, it has successfully added the number of tourist in compare to its neighbor countries. Today, there are many festivals and events that have attracted the attention of tourist from different countries of the world. Kozak & Martin (2012) has also supported this stating that today maximum of the people visit some places because of traditional festivals only. But according to Gibson & Lepp (2003), cultural events and festivals only have limited impact over the business of tourism industry in UK. It depends upon the choice of the people as everyone has different choice as some like adventure, some tradition etc. In this fast moving world, people mostly decide their travel destination where they could get peace and in this kind of festival and event there is no space for peace. So according to McCabe (2009), these festivals and events are not
  • 32. much effective to attract number of tourists in UK. Although these festivals and events are effective means to understand the tradition of a country, but these are not able to provide effectiveness to UK tourism industry. Apart from this, environmental factors such as climate, nature etc also have major role in affecting the tourism industry. According to Catlin, Jones & Jones (2011), the climate in UK is very moderate that has subsequently contributed to the growth of tourism industry in UK. As the country is neither too hot nor too cold and most of the people prefer to visit UK in compare to countries which are either too hot or cool. Zare-ee and Shekarey (2010) has also supported this factor as an important cause that is affecting the number of tourist in the country. People generally do not like to visit such place that faces too much cold or too much hot.2.5 Association that work for UK travel and tourism industry: According to McKercher, Packer, Yau and Lam (2003), to increase profitability and business of the overall industry, different associations are established by different industries and governments those work directly and indirectly for enhancing customer base for the firms. It is because these authorities and associations know regarding the contribution of travel and tourism industry in economy of the country along with their duties towards it. So, different associations are also working in UK to enhance and to run the business of travel and tourism in the country and outside the country (About Association of British travel agents, 2011). In this, ABTA (Association of British travel agents) is also working in UK to increase business of travel and tourism industry. In this, it is assessed that Association of British travel agents (ABTA) is one of the largest associations that are working more than 60 years for travel and tourism firms in the UK. Main focus of the association is to grow business of travel and tourism firms through satisfying foreign customers by providing sufficient and imperative travel experience to them. Expertise, reliability and fairness are considered as strong point of the
  • 33. association that enhances its brand image in the travel and tourism industry (About Association of British travel agents, 2011). These qualities are also considered as core of the business of the association that sustains its involvement in increasing business of travel and tourism industry in the competitive world market. As discussed in the report of “Building Confidence in Travel (2011-2012)”, association also increases confidence among the employees of the travel and tourism firms and among its agents to provide effective and holiday products to the customers that attract the foreign customers to visit in the UK. It is also supported by Goodwin (2001) that the association also provides financial protection and schemes to the travel and tourism firms that are the members of this association to grow the business of the industry in the global market. Additionally, it is also stated by Bergh (2008) that changing landscape is also considered by the association while developing policies and frameworks for growth of the business of UK travel and tourism firms. Along with this, it is also supported by the report of “Building Confidence in Travel (2011-2012)” that to ensure the fair deal with the customers by the travel and tourism firms, united voice is raised by the association to the government. It is also affirmed by Matias (2009) that governmental rules and regulations are also followed by the association to ensure the fair and effective deal with the customers and travel and tourism companies. So, it can be stated that through raising standards for the travel and tourism industry and through guiding them, ABTA works positively in UK that directly and indirectly increases business of UK travel and tourism firms (About Association of British travel agents, 2011).2.6 Summery The chapter is quite helpful to highlight the main aim or purpose of the research. The basic structure of the UK travel and tourism industry also exhibits good knowledge about different tourism sectors in UK. Additionally, changes in the UK travel and tourism industry from past two decades have also determined good understanding of UK tourism industry. Along
  • 34. with this, the impact of economic and social environmental factors over the business of travel and tourism industry of the UK has been also been defined in this chapter to accomplish the research successfully. The chapter is quite effective to develop understanding of the UK tourism industry and its elements. Chapter 3 Research Methodology3.1 Introduction The main purpose of this chapter is to highlight the theoretical structure that is followed by the researcher to gather data to attain the objectives of the research. In this chapter, research paradigm, research strategies, research design, data collection methods, etc. will be discussed that are followed by the researcher to attain the objectives of the research. Research methodology refers to the framework that is used by the researcher to establish link between research question and research objectives through collecting data or information. At the same time, actions or tools that are focused by the researcher are also highlighted in this chapter. 3.2 Research Design Research design refers to the framework that is used by the researcher to plan or design the research process to collect the data or information to solve the research problem effectively (Bordens, 2006). Three types of research design methods are as follow: Descriptive research design: In the condition of starting the research question from “what, how, when, who”, this type of research design method can be used by the researcher to solve the research question (Webb, 2002). Exploratory research design: In the case of having lack of in- depth understanding about research question, this type of research design can be used by the researcher to solve the research question (Blanche, Durrheim & Painter, 2008). Causal research design: To assess the relationship between various variables such as effect and cause relationship, this type of research design can be used by the researcher (Reporting
  • 35. Standards for Research in Psychology, 2008). Exploratory research design has been used for this research to solve the research problem effectively and to collect the data for the research. Interpretations are focused to produce results of the research with the help of this type of research design that stands for the reason to select this research design (Kindon and Pain, 2007). Descriptive research design is ignored, because it is useful only to describe characteristics of the population not for the research. Along with this, causal research design identifies cause and effect relationship between variables that is not presented in the research. So, these two are avoided and exploratory research design was selected for this research to reach at the end result of this research (Bergh and Ketchen, 2009).3.3 Research Approach Mainly two types of research approaches are available to solve the research problem such as inductive and deductive research approach (Bergman, 2008). These are as follow: Deductive Research Approach: Deductive approach is called as top-down approach. Flow of information is presented from general to specific in this type of research approach (Haruvy & Stahl, 2004). Inductive Research Approach: This research approach is known as bottom-up approach. Flow of information is presented from specific to general in this type of research approach to attain the objective of this research (Arslan, Göcmencelebi & Tapan, 2009). Nature of the research bounds the selection of the research approach. For this research, inductive research approach has been used to solve the research problem effectively. The main reason behind selecting this method is that information flow is presented from specific to general that motivated the researcher to choose this research approach to attain the objective of the research (Kindon and Pain, 2007). Along with this, current status of the UK travel and tourism industry has been also assessed in this research that stands as a reason to select this research approach for the research (Haruvy & Stahl, 2004). So,
  • 36. as information flow prohibits the selection of deductive research approach. 3.4 Research Philosophy To select the appropriate data collection method, research philosophy plays a crucial role (Burke, 2007). Various research philosophies are available that can be used by the researcher such as positivism, Interpretivism, Realism and Pragmatism philosophies to solve the research problem effectively (Johnson and Christensen, 2010). For this research, interpretivism research philosophy was used due to developing understanding about the subjectivity of the social world. Additionally, it also fits into the research question that helped to attain the research objectives (Olsen, L. et al, 2010). 3.5 Data Collection methods Data or information that is collected under that process or method called data collection method. There are two types of data collection methods available that can be used by the researcher to attain the objectives of the research such as primary and secondary data collection method (Blaxter, Hughes and Tight, 2006). Primary data collection method: Data that is not collected previously is included under the primary data collection method (Badke, 2004). Secondary data collection method: Collection of data on the basis of previously collected data is included under the secondary data collection method (Jackson, 2008). Primary and secondary data collection methods were used for this research to gather data to solve the research issue. Under the secondary data collection method, literature review has been used for this research. Additionally, under the primary data collection method, survey through questionnaire has been used to collect the data and know about the perceptions of the employees of the travel and tourism company in the UK (Healy and Perry, 2000). 3.6 Sampling For this research, to select the sample size, no specific thumb rule was followed. Similarly, for this research, under the non probability sampling strategy, random sampling method was
  • 37. used. Additionally, issues during the selection of sample size and collect data for the research, sample was finalized within the quota. For this, 40 employees were selected as a sample size that are working in different cities of UK as a part of Association of British travel agents (ABTA). It was beneficial as a part of primary data collection method to provide data to analyze the impact of economic and social environmental factors over the business of inbound and outbound travel and tourism industry of the UK (Amaratunga, Baldry, Sarshar and Newton, 2002). 3.7 Questionnaire 3.7.1 Trait of Questionnaire For this research, questionnaire was used as primary data collection tool that helped the researcher to present attitude, opinion and facts of participants in the standard format. As compared to other methods such as focus interview, group interview, etc. this method is more beneficial and effective due to cost effectiveness. Furthermore, this questionnaire is divided into two parts in that first part comprises of questions related to the fundaments or concepts about the main theme of this research. Additionally, specific information related to different economic and social environmental factors that affect business of UK travel and tourism industry is discussed in the second part of questionnaire. 3.7.2 Design of Questionnaire To maintain reliability and credibility of the research and to attain the objectives of primary data collection method, design of questionnaire plays a crucial role. At the time of designing questionnaire, two types of problems must be considered by the researcher. In this, first issue was related with maintaining the interest of the participants during the whole research. For this, easy questions were formed in starting of the questionnaire and tough questions were formed in the last of questionnaire. Second issue was related with the influence over the decision of participants that can be reduced through proper layout of the
  • 38. questionnaire. So, to maintain interest of the participant, effective questionnaire was prepared. 3.7.3 Piloting Process of analyzing validity and reliability is known as piloting. In this, before delivering the questionnaire to the participants, it was conducted through including 5 people including me that helped me to assess the mistakes or errors in the questionnaire. In developing efficiency in the questionnaire, it worked positively in terms of developing standardized questionnaire that increased validity and reliability of the questionnaire. 3.7.4 Statistical data analysis Use of statistical data analysis was avoided in this research due to using questionnaire. In that, to analyze the data, percentage of the respondents was used that is given by them in the response of questionnaire. 40 questionnaires were distributed among 40 travel agents that are the members of ABTA (Association British travel Agents) and working in different cities of UK as a part of this association to analyze the impact of economic and social environmental factors over the inbound and outbound travel and tourism industry in the UK. 3.8 Research Form There are two types of research perspective available that can be used by the researcher to attain the objectives of the research like, qualitative and quantitative research format (Bryman, 2007). These can be discussed as follow: Qualitative Research Perspective: Qualitative research format is related with the use of picture, words, presentation techniques, etc. to solve the research problems. In this type of research format, small group of respondents is used as a target to solve the research problem (Weinberg, 2002). Quantitative Research Perspective: Use of statistical format to solve the research problem is related with quantitative research perspective. Numerical data, statistical models, figures, graphs,
  • 39. etc. are used by the researcher under this type of research format to attain the objectives of the research (Goddard and Melville, 2004). To reach at the result of this research that is related with the identification or assessment of the impact of economic and social environmental factors over business of travel and tourism industry of the UK, mixed research format has been used that comprises of the use of both qualitative and quantitative research format in positive manner (Amaratunga, Baldry, Sarshar & Newton, 2002). This research format helped positively to attain the objectives of the research effectively. To select and draw imperative research outcomes, this research format plays an important role (Bryman, 2007). Reliable and quality data that is beneficial to attain the positive outcomes of the research question is the main aim of using this research format. To select this research format that is beneficial as well as imperative for the research into positive direction to attain the research outcomes, various reasons and supportive arguments are presented that indicate the selection of this research format (Creswell, 2003). Graphical presentation helped to solve the research problem effective that sustains to the use of quantitative research format. Similarly, use of qualitative variables focuses over the use of qualitative research format. So, both methods were used for this research. 3.9 Ethical Guideline To maintain reliability of the research, ethical consideration has been followed during the overall research. During the research, problems related to plagiarism of information were taken into consideration by using proper citation and reliable source. Process of Coventry University has been also followed in a proper manner to increase the credibility of the collected data in the research. At the same time, to avoid unethical use of information related to the particular firm, confidentiality of the data of particular company has been also focused during the overall research. 3.10 Summary
  • 40. Methods that have been used to solve the problem of the research have been discussed in this chapter that shows the effectiveness of the chapter. Under the research design, exploratory research design has been used along with describing reason to select this design. Similarly, under the research philosophy, interpretivism research philosophy has been used for this research. Additionally, data collection methods that were used in the research have been also discussed such as primary and secondary data collection methods. Under primary, survey through questionnaire and under secondary case study analysis has been used. Mixed method such as qualitative and quantitative research formats have been also selected in this chapter. To maintain credibility and authenticity of data, ethical guidelines have been also mentioned. Chapter 4 Findings and data analysis:4.1 Introduction Results of the research that are attained by the researcher on the basis of collected data from literature review, case study analysis and response of questionnaire are discussed in this chapter. Along with this, to reach at the result or to attain the objectives of the research, graphical presentation will be used to analyze the data in effective form. In short, how economic and social environmental factors affect business of travel and tourism firms in the UK will be discussed in this chapter in context of Association of British travel agents. 4.2 Findings from literature review analysis Through conducting literature review and case study analysis, key points and concepts have been discussed that helped in developing knowledge about the structure of UK travel and tourism industry. Additionally, to assess the impact of economic and social environmental factors over the business of travel and tourism industry helped it positively. 4.2.1 Structure of Travel and tourism industry in the UK From analyzing literature review, it is found that three types of tourism presented that contributed in the growth travel and tourism industry of the country. In this, it is found that inbound,
  • 41. outbound and domestic tourism contributed positively in country’s growth and enhanced business of this industry in the global market. It is also identified that in 2003, about £11.9 billion was earned by the UK from the inbound tourism along with gaining 6th rank in the global market in travel and tourism business that reflects the involvement of the inbound travel and tourism industry in growth of the country. At the same time, sectors that are the part of UK travel and tourism industry has been evaluated from the literature review. In this, transport, travel agents and attractive places in the UK are identified under the sectors that attract and distract the foreign customers to visit in the UK. From the analysis of UK environment, it is identified that travel industry structure of UK is quite complex that involves several stakeholders. It is the combination of different travel alternatives such as road, sea, air that make the structure more optional for the travelers. Through the literature review analysis, it has been also identified that sufficient and attractive information are offered by the travel agents like call centres, web-sites, etc. that solves the customers’ query that is effective to determine the service structure of travel industry in UK. It is also assessed that ABTA (Association British travel Agents) is working as supportive association that enhances growth of the travel and tourism industry and took actions to improve structure of UK travel and tourism industry. So, it could be determined that structure of the industry is good to increase the number of tourists in UK. 4.2.2 Changes in UK travel and tourism industry Literature review analysis helped to find out the changes in the business and structure of UK travel and tourism industry from the past two decades. It has been found that business of travel and tourism in UK is continuously increasing, as firms in the UK are working effectively to meet with the needs and wants of the customers effectively. From the last two decades i.e. 1991- 2000 to 2001-2010, it has been found that various changes have been seen in the travel and tourism industry that contributed in
  • 42. the growth of this industry and country. Increase in number of visitors from 25.5 million to 29.4 million from the year of 1999 to 2010 respectively refers the positive changes in UK travel and tourism industry that increased growth and profitability of this industry. Increase in employment rate from the past years was also assessed from the literature review analysis that also refers the positive changes in the UK travel and tourism industry. It is analyzed that 6.5% employment was accounted in 1999 that was increased in 2010 by 14% that also shows the positive growth within the industry. From the literature, it is exhibited that there are positive changes in the industry due to increasing income and spending level of people. Additionally, from the literature review analysis, it has been found that different committees are also developed and involved by UK travel and tourism industry to improve structure and increase business of the industry. The analysis depicts that British Tourist Authority and The English Tourism Council are responsible for changes in UK travel and tourism industry. Overall, it could be said that the changes in last two decades are quite significant in UK travel industry. 4.2.3 Impact of economic environmental factors over the business of UK travel and tourism industry The literature review analysis also helped to find that there are various economic factors available in the UK such as high interest rate, foreign exchange rate, inflation rate, governmental economic policies, etc. that affect business of travel and tourism industry in country positively and negatively. It has been encountered that high interest rate affects growth of tourism industry in adverse manner. It is because high interest rate increases price of the products that are that has impact over their decisions of travelers negatively. It is also determined from the point of view of various authors such as Rummery and Coleman (2003), Uddin and Boateng (2011) and Patterson, Esteves, Dinsdale and Guwy (2011) that due to high interest
  • 43. rate in UK, it becomes tough for the travel and tourism companies to sustain their growth in the country by decreasing their spending. It is also found that fluctuation rate and foreign exchange rate also have a significant impact over the business of travel and tourism industry in UK. The high inflation rate affect budget of the tourists that forces them to seek alternative for visiting. This shift from UK to other alternatives affects the business of travel and tourism industry negatively in terms of reducing number of customers. So, impact of different economic factors over the business of UK travel and tourism industry has been determined from point of view of various authors through conducting literature review analysis. 4.2.4 Impact of Social environmental factors over the business of travel and tourism industry in UK Various social environmental factors have been found from the literature review analysis that influences business of travel and tourism industry in UK. In this, culture, sub-culture, lifestyle and cultural & social events are determined as social environmental factors that influence to the perception and decisions of the tourists to visit in a country. It is observed that cultural history of any country becomes point of attractions that attract visitors’ attentions. In this, it has been also found that cultural changes in terms of differences related to values, perception, language, etc. are included under the elements that have significant impact over the business of tour and travel industry of the UK. Lifestyle of the people is countered under social factors that influence the business of tourism industry through attracting or distracting visitors to visit in UK. It has been detected that fashion and trends in UK are attractive that have positive influence over the mind of travelers and creates huge base of customers for travel and tourism industry. Cultural and social events that are conducted in the country within particular time period also founded as reason that increase visitors attentions to
  • 44. visit in UK. So, through the literature review analysis various social environmental factors are determined that affect business of travel and tourism industry in UK in terms of affecting customer base, profitability, etc. It is also found that these social and cultural factors should be given proper consideration for the growth of travel industry. 4.3 Findings from questionnaire To reach at the result of the research, questionnaire is also used as primary data collection method. In the questionnaire 10 questions were formed and sent to the 40 members of Association of British travel agents that are working in different areas of country for the development of the travel and tourism industry. Findings of questionnaire are discussed as follow: Changes in travel and tourism industry and involvement in country’s growth: First, and second questions were related with analyzing structure and changes in the travel and tourism industry of the UK. Additionally, third question was related with the assessment of impact of travel and tourism industry over the growth of country. In the response of first question of the questionnaire following responses were given by the participants: Sectors of UK travel and tourism industry Sections of sectors that work for it Transport Air Travel Sea Travel Road Travel Travel Agents Web-sites Call centers Attractions in UK Man-made attractions Natural attractions Events Associations and Committees
  • 45. ABTA (Association British travel Agents) Above table shows the answers of participants that refers that in UK travel and tourism industry, mainly four sectors such as transport, travel agents, attractions and associations are working as a part of it. It is also identified that changes in any sector has impact over the whole UK travel and tourism industry positively and negatively. The changes in transport may increase or decrease attraction of the visitors to visit in particular country due to implication of their convenience. In the reaction of second question related to major changes in travel industry, following responses were given by the participants: Changes from past two decades by 1991-2000 to 2001-2010 Impact over business of UK travel and tourism industry Increase in number of visitors Positive impact in terms of increase business and profitability of the firm Increase employment rate Positive impact in the form of increasing chances of spending money over domestic tourism Increase GDP Positive impact on growth of tourism industry and country Change in structure of travel and tourism firms Increases attractiveness of UK travel and tourism industry Involvement of associations and committees Increase positive aspects and fair deal among visitors and travel firms Above chart refers the major five changes that have been seen in UK travel and tourism industry. It is found that overall changes were related with the growth of country as well as business of travel and tourism industry and the change in the structure also caused these changes within the industry. Third question was related with analyzing the role of travel and tourism industry in country’s growth that is the impact of changes in the industry in last two decades: In this, employees gave their response that travel and tourism
  • 46. industry of UK works as positive element to contribute in total GDP. Additionally, through increasing employment within the country by increasing travel and tourism, growth of the country can be seen positively. Along with this, it is also replied by the employees of Association of British travel agents that travel and tourism industry contributes in increasing level of foreign currency that also increases growth of the country positively. At the same time, in making the relationship with the other countries in the global marketplace, travel and tourism play a crucial role. Impact of economic and social environment over travel and tourism industry: 4th, 5th and 6th, questions of questionnaire were related with the assessment of the impact of economic and social environmental factors over travel and tourism industry of the firm in UK. 4th question was focused over analyzing the impact of economic environment factor on the business of travel and tourism industry in UK, which is responded as below: Above graph refers that most of members of ABTA are agreed with this phenomenon that vat tax policies of UK government have significant impact over the business of UK travel and tourism industry. It is observed that low vat tax increases number of visitors and vice-versa. It is because low vat rate affects budget of the people regarding travelling. Increase in tourism balance, from 3.9 billion pound in 1996 to 18 billion pound in 2006 refers the positive impact of vat tax policies of government over the business of travel and tourism in UK. The impact of foreign exchange rate over the business of travel and tourism industry has been also assessed through the questionnaire as regarding this, following response is obtained: Above chart refers the response of members of ABTA towards the impact of foreign exchange rate over the business of travel and tourism industry in UK. In that 35% respondents were strongly agreed and 45% were agreed that refers that high
  • 47. amount of respondents were favored this statement that foreign exchange rate affect business of travel and tourism industry. It is found that high exchange rate in UK increases business of travel and tourism firms positively in the country. Following chart refers to the response of participants towards the impact of social environment over the business of travel and tourism industry in UK. Above diagram refers that culture and tradition of UK has significant impact over the business of travel and tourism in attracting the customers. In this, it is found that cultural history of the country attracts the customers to visit and know about the particular culture. From the response of participants, it has been also found that life style, traditions and beliefs also affect to the business of travel and tourism industry through attracting them towards the particular country. 7th question was related with the assessment of the current travel and tourism status in the UK by avoiding the impact of social and cultural environment: Above diagram shows that high amount of employees were agreed with the current status of travel and tourism in the UK. 25% employees were strongly satisfied and 35% members of Association of British travel agents are satisfied with the current status of the travel and tourism in the UK. 10% employees did not give reply over this question. 20% employees were dissatisfied and 10% employees were strongly dissatisfied with the current status of the UK travel and tourism industry. It depicts that there are potential for improvement in travel industry of UK. 8th question was related with the assessment of the role and impact of economic and social environmental factors over the business of UK travel and tourism industry. Following chart refers to the response of participants: Economic and social environmental factors Impact over business of UK travel and tourism industry
  • 48. High interest rate High interest rate affects price of the products at tourist places that has adverse impact over the business of travel and tourism firm High inflation rate High inflation rate affects budget of visitors and distracts them to visit in a particular country and forces them to choose alternatives for visit Foreign exchange High foreign exchange rate affects budget of the visitors as it requires high amount to visit that has impact over their decisions to visit in UK or other countries Vat Tax Vat tax has negative impact over the accommodation and attractions of the visitors that affect business of travel and tourism industry Culture and sub-culture Culture, sub-culture and cultural history have power to attract the customers to visit in UK Life style High fashionable trends of particular country attracts the visitors to visit in the country Cultural and social events Entertainment and exhibition programs conducted in the country, which attract the visitors for particular time period to visit in that country 9th question was related with assessment of the role of transport and travel agents in increasing business of travel and tourism industry in UK. Above chart refers that transport and travel agents have high impact over the business of travel and tourism industry and contributes in increasing customer base of the firm. Participants replied that travel agents and mode of transport helped the companies to assess perception of the visitors to visit in a foreign country. Additionally, it is also observed that travel
  • 49. agents deliver needed information to the visitors to visit in the UK. Additionally, through delivering best services to the customers, travel agents and transport provide worth of the money of the customer that they are spending on their visits. Offering of extra benefits by the travel agents and transport also helps the travel and tourism companies to increase their profitability and business in the country. 10th question was related with the collection of the data about the needed steps that should be taken by the firms or members of ABTA to enhance their business in the global marketplace. In this, it is also found that employees suggested that firm should also include more attractive packages in the organizational policies to attract the customers. Along with this, it is also identified that the firm should also align its rules and policies with the governmental rules and policies to increase the effectiveness of the organizational policies. Additionally, the firm should also develop effective and flexible strategies that can adopt the changes rapidly and can align them effectively to determine growth within the industry. The firm should also consider the needs and wants of the customers according to their culture, beliefs, attitude, etc. that will be beneficial for the firm to retrain customers for long period of time. 4.4 Summary Data that were gathered from the literature review analysis and response of questionnaire shows that there are various economic and social factors such as high interest rate, inflation rate, foreign exchange, cultural & sub-cultural, life style, etc. that affect business of travel and tourism industry positively and negatively. In addition, it has been also determined that technological advancement is also included under the factors that affect business of the travel and tourism industry in the UK through creating more competitive business environment. It shows the ongoing path of this research into positive direction in terms of reaching at reliable and appropriate findings. Similarly, data that were gathered from the questionnaire also emphasized over the attainment of the positive outcome of the research. In this way, response of employees of travel and
  • 50. tourism industry helped to determine the current status and structure of the UK travel and tourism industry and different environmental factors that affect the business in industry. It also contributed in solving the research problem and research question effectively. Furthermore, need to take more initiative and effective actions to minimize the negative impact over the business of travel and tourism industry have been also determined with the help of response of participants. So, collected data has been analyzed in this chapter that contributed in reaching result of this research. Chapter 5 Discussion Chapter 5.1 Introduction This chapter is quite important and beneficial for the researcher to attain the research objectives by analyzing the information or data that has been gathered from the previous chapter. At the same time, to show the effectiveness of the research findings, objectives were aligned with the research findings, theories, literature review analysis and questionnaire. Additionally, with the help of past studies, new insights have been gained that helped to attain the research outcomes effectively. Research objectives are as follow: 1. Objective One: To analyze the structure of travel and tourism industry in UK 1. Objective two: To evaluate changes in the business of UK travel and tourism industry from past decades 1. Objective third: To assess the impact of economic and social environmental changes over the business of travel and tourism firms in UK 1. Objective fourth: To recommend a robust framework to determine growth for UK travel and tourism industry From the previous chapter, findings that have been attained in terms of analyzing impact of economic and social environmental factors over the business of travel and tourism industry in context of UK can be discussed as follow: Economic and Social environmental factors Employee’s perception towards impact of the factors over business
  • 51. Author’s point of view towards impact of the factors over business Interest rate High Average Foreign exchange rate High Average Vat Tax High High UK economic policies High High Lifestyle Average Low Cultural and social events High Low 5.2 Evaluation of the findings 5.2.1 Changes in the structure of UK travel and tourism industry Through analyzing data of literature review and questionnaire various perceptions and views of authors and employees have been identified that contributed in attainment of the research objectives. From the findings, it has been evaluated that with the help of advancement in technology, sectors that are the part of tourism industry have been improved that increased the business of travel industry. It has been discovered that growth rate of travel and tourism industry is high in 2001-2010 as compared to 1991-2000 that is supported with the findings of Kotsanidis, Zacharatos and Papatheodorou (n.d.) and The Tourism Industry (2000). It refers the growth of business of travel and tourism industry in terms of increasing their profitability and customer base at national and international
  • 52. level. At the same time, through analyzing data of Rodgers (2001), Dale and Oliver (2005) and Thomas, Shaw and Page (2011), it is evaluated that committees are also organized by the tourism industry to run the business positively and comprise the fair deal among visitors and tourism firms. From the findings it could be interpreted that British Tourist Authority and The English Tourism Council are the example of committees that work for increasing business of UK travel and tourism industry of UK in the world market. Similarly, from the response of questionnaire, it hasbeen also analyzed that employees of travel and tourism industry also believe that travel and tourism industry has changed rapidly from the last two decade as they described five major changes in the industry such as increase in employment rate, increase in GDP, increase in number of visitors, involvement of associations, positive changes in the structure of travel and tourism industry. It is also supported by the findings of Broadstock and Hunt (2010), Barnes (2002) and Broadstock and Hunt (2010). From the above evaluation, it is interpreted that to support the positive changes in the travel and tourism industry, role and involvement of different committees should be clear among the firms of the industry. It is because clear role and responsibility of these committees will increase positive and required changes in the industry and maintain fairness within the business. It is also interpreted that to run the business in global marketplace, it is important for the firms to adopt changes as per the changes in trends, technology, and perception of the customers. 5.2.2 Role of travel and tourism industry in country’s growth It has been also assessed that travel and tourism industry makes the economy of the country strong through increasing income of individuals. At the same time, it has been also analyzed from the data that is gathered from the questionnaire that employees of travel and tourism industry also supported this statement that travel and tourism industry increases growth of the country that
  • 53. is supported by the findings of report of “The Tourism Industry, (2000)”.Findings of Roe, Ashley, Page and Meyer (2004) and Kotsanidis, Zacharatos and Papatheodorou (n.d.) depicts that UK travel and tourism industry also increases foreign exchange earning from other countries in terms of attracting customer from different countries that increases chances of employment in the country and also sustains for high profitability and growth of the country. It can be stated that in increasing growth of the country, travel and tourism industry plays a fundamental role that has been supported throughthe findings of Zare-ee and Shekarey (2010), Duval (2007) and Hudson (2011). So, on the basis of findings, it is evaluated that travel and tourism industry contributes in the country’s growth directly and indirectly through increasing employment rate, GDP, number of visitors, etc. in the country. So, it refers the alignment of the research outcomes with the research objectives that refer the positive attainment of the research objectives. It is interpreted that growth of country and growth of tourism industry are complementary of each other that is affirmed by the findings of Dudensing, Hughes and Shields (2011), Song, and Li (2008) and Weed (2009). 5.2.3 Evaluation of Impact of economic and social environmental factors over the business of travel and tourism industry Findings from the literature review and questionnaire depicts that economic and social environmental factors have high impact over the business of travel and tourism industry due to influencing strategies, policies and prices that are formed by the firms to attract the customer’s attention. It is analyzed that economic factors such as interest rate, inflation rate, foreign exchange rate, Vat tax and economic policies of government affect budget of the customers that influence their decisions to visit in a country that is interpreted by the findings of different authors such as Thrane and Farstad (2011), Weed (2009) and Zhang, Song and Huang (2009). It is evaluated that high interest