The document discusses the travel and tourism sector in London. It provides a history of travel and tourism in London from primitive times to modern era. It describes the key developments like the introduction of grand tours in the 17th-18th century and growth of companies like Thomas Cook in the 19th century. It also outlines the structure of the travel and tourism industry in London, which includes visitor attractions, accommodation, transportation, travel agents, tour operators and regulatory bodies. Additionally, it discusses the role of government, international agencies and policies in managing and regulating the travel and tourism sector. Factors that influence tourism demand like technology, economy, politics and exchange rates are also mentioned.

1. Sample on
Travel and Tourism Sector
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3. TABLE OF
CONTENTS
Table of Contents. .3
Conclusions.........19
References...........20
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4. Introduction
to Travel
and
Tourism
Sector:
In recent
years, travel and
tourism sector has emerged as one of the most growing and potential sectors of the world. Along with this, high
growth rate in this sector is witnessing very tough competition among businesses. The present report demonstrates
the key historical developments in travel and tourism sector in London. In addition to this, it also highlights the
structure of travel and tourism sector. Functions of government and other regulatory bodies in this sector have also
been explained in this report. Some of the important factors which affect the demand of tourism are also mentioned
in this report.
P1.1 Key historical developments in travel and tourism sector of London
London is considered as one of the most famous tourist destinations all over the world as it attracts more
than 30 million visitors every year. The vibrant culture and amazing monuments are some of the things which attract
people from different countries of the world. The history of travel and tourism sector in London begins with the
primitive era in which the concept of travelling from one place to another was not so common. One of the only
reasons of travelling was to visit holy places (London's Tourism Industry, 2015). In the modern era, travelling is
done with the main purpose of either leisure or for any business purpose. During the time of primitive era, the reason
of travel was linked with one thing that was to visit religious destinations. As the time changed, the concept of travel
and tourism also started to change. It can be stated that it was between the year 1660 to 1840 that people started
travelling for other purposes rather than for holy purpose. This period was the time in which first grand tour was
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5. introduced in market
for people which
belongs to high
income group. The
grand tour was
sponsored by
different parties and
the tour ended up
becoming a great
success (Bernick
and Boo, 2013). One
of the major
objectives of this
tour was to make
people aware about
the culture and
lifestyle of other cities, areas and countries.
The industrial revolution is considered as the period of transformation in the entire travel and tourism
sector of London. It was in the period of 18th
and 19th
century in which major changes happened in this sector. Along
with this, companies such as Thomas cook as well as Cox and Kings were also emerged in this period only
(Donohue, 2007). Many new tourism destinations were developed and the number of travellers in London also
enhanced. The concept of package tour also developed during this particular year only. Later in the year 1969, the
very first act related to travel and tourism sector was developed. Slowly the concept among people regarding the use
of travel related services and visiting the destination started to grow. In terms of society, it can be stated that the
perception of people in market changed and they started to visit other countries to see their culture, destinations and
other things. Before the beginning of 20th
Century, the major development in infrastructures took place in which
facilitates such as road and transportations were developed for some destinations (Barrett, 2012). In both natural
destinations and manmade destinations, these developments took place. In the 20th
century, technology is introduced
in travel and tourism sector in which some businesses started to offer tours and providing travel related services via
online.
P1.2 Structure of travel and tourism industry of London
The travel and tourism sector of London consists of six major components which are visitor attractions,
accommodation, transportation, travel agents, tour operators and tourism development authority. In terms of visitors
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6. attraction, it can be
stated that these
destinations are
either man made or
are developed
naturally (Bunja,
2003). For example,
Blackpool beach and
Lake District are
considered as some
of the famous
natural visitors
attractions. On the
other side, manmade
attractions such as
Alton towers is one
of the best examples of visitor attraction. The second component of London travel and tourism sector is
transportation which plays a major role in the growth and development of this sector. Further, better transportation
facilities makes it very convenient for tourist to visit their respective destinations. Rail, road, air and sea are the
major sources of transportation within London (Trunfio, Petruzzellis and Nigro, 2006). Another component of
travel and tourism sector is accommodation which includes various kinds of hotels and other service providers. In
addition to this, there are tour operators whose main motive is to produce and sell tour packages related to various
destinations. Travel agents are also considered as one of the major parts of the travel and tourism industry as they act
as a link between general public and tour operators. At last, this sector consists of tourism development in which
there are various regulatory bodies whose work is to take care of the practices and activities related to travel and
tourism in London. Integration of all these components is essential for the success of the sector. It can also be stated
that all of them share interdependent relationship with each other (Chen and Choi, 2008). For instance, if visitor
attractions are developed in an effective manner but transportation facilities are not appropriate, then tourist cannot
be attracted effectively for a particular destinations. The same thing is linked with the other components of travel
and tourism sector. In order to earn higher revenue and growth rate, all the components mentioned in the structure
are required to be effective and efficient. Development authority is required to take care of the fact that all the laws
and regulations which have been developed in terms of travel and tourism are strictly followed by all the other
components. There are many public and private businesses which operate in this sector of London and regulatory
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7. bodies are required
to ensure that a
policy of fair
practices and
charges is adopted
by all these firms
(Clarke and Chen,
2012). Different
kinds of services
which London offer
has a direct impact
on the future sales
and profitability of
travel and tourism
sector.
P2.1 Function of government, sponsored bodies & international agencies in travel & tourism UK
The main role of government, sponsored bodies and international agencies in travel and tourism UK is to
make sure that all the regulations and policies which has been developed in context of travel and tourism are strictly
followed or not. Management and marketing of travel and tourism sector are the two core functions of government
bodies developed at local, regional and national levels.
In recent years there are many destinations developed in London and these destinations are taken care by
bodies at local, regional and national levels. These bodies also present report of revenues earned and expenditure
made by the travel and tourism sector of London. This further facilitates in determination of the growth rate and
overall profits made by sector in one particular year. On the other side of this, there are some international agencies
such as United Nations, World Tourism Organization, Civil Aviation organization, International Air Transportation
etc. World Tourism Organization's main function is to promote responsible, universally accessible and sustainable
tourism (Stamboulis and Skayannis, 2003). In addition to this, it focuses on both environmental sustainability and
economic growth. On the other hand, Civil Aviation organization's main function is to plan and develop
international air transportation. This organization makes sure that air transport is focusing on both growth as well as
safety of passengers. United nations also plays very important role in the travel and tourism sector as it deals with
the development of rules, plans and policies related to this sector. Every businesses that operates in travel and
tourism sector is required to adhere these policies and rules. All these regulatory bodies have direct relationship with
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8. government (Stone,
2013). It can be
concluded that the
major function of
government and
these bodies is to
ensure that the
customers in travel
and tourism industry
do not get exploited.
World tourism
organization is an
agency which
performs the
function of
managing and
promoting sustainable and responsible tourism. Further it is also considered as one of the leading and renowned
organization in the travel and tourism sector of the world. It promote tourism in many country which provides
driving force to the economic development of all its member countries. Other than this, World tourism organization
also perform activities such as promotion and marketing of tourism and competitiveness among all its member
countries. International Air Transportation association (IATA) is a trade association which has been developed for
the world airlines. Further the association includes 260 airlines which is near about 83% of the total air traffic
(Barrett, 2012). The major function of IATA is to support and deal with the issues faced by airlines. Some of its key
priorities includes expansion, reduction of airport charges and increasing fast travel capabilities.
P2.2 Local and national policy influence on success of travel and tourism sector of UK
It can be stated that the national and local policies have an direct impact on the activities and operations of
travel and tourism industry. Majority of the times such kind of policies are developed with objectives such as
elimination of customer exploitation, fair competition among business operating in travel and tourism sector of UK
etc. The local polices developed in UK focuses on environmental protections whereas the national policies deals
with issues such as declining number of tourist, low revenues etc. Such kind of policies have both positive as well as
negative impact on the success of travel and tourism sector of UK. In terms of negative impact, these policies forces
all the businesses which operates in this sector to use more sustainable practices and take care of environment
(Theobald, 2013). In recent years the activities of travel and tourism directly had an adverse affect on the society and
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9. environment.
Cutting
down of tress and
destruction of wild
life is done to a
great extent for
developing tourist
destination. The
growing use of
adventurous and
wild life tours has
also become a threat
for environment. All
the businesses
operating in travel
and tourism sector
are required to make sure that all the practices and activities should not have any kind of negative impact on society
and environment. Further both the policies developed at national and local level encourages businesses to lower
down their negative impact on environment. This has increased the cost and efforts of the firm as they are required
to adopt more sustainable practices. Organizations in travel and tourism sector of UK are required to become aware
of the fact that sustainable practices may create issues in short run but for long run they are very beneficial (Trunfio,
Petruzzellis and Nigro, 2006). Adopting such kind of practices will help businesses to create satisfaction among
people in the market. In addition to this, they start feeling that firms are really taking care of the environment and
society. Therefore, it can be stated that national and local policies have both negative and positive impact on the
success of businesses in travel and tourism sector of UK.
P2.3 Implications of the political changes on travel and tourism sector
Any kind of changes in political environment of a country has an direct impact on its travel and tourism
sector. It can be also stated that there is an serious impact of political changes as they directly result in increasing
the threat of fear and safety. The implications of political changes on UK and three different countries are mentioned
below as:
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10. UK
The political parties
have affected the
travel and tourism
industry to a great
extent. In positive
aspects it can be
stated that the
sector has always
got support from
government. On the
other side, the sales
and profitability has
lower down
terrorist attacks and
instability
India
The political changes has
affected India in positive
terms. Further political
parties in the country has
always supported growth
and development of
tourism (Hall and Clayton,
2009). Many new
destinations have been
developed and the travel
and tourism sector has also
grown with a good rate.
China
Travel and tourism sector
of China has been affected
by its political changes.
Now political parties are
forcing the businesses in
travel and tourism sector to
use more sustainable
practices. This has lower
down the sales and
profitability of the entire
sector.
Thailand
In recent years the
protest against
political parties has
resulted in great
loss of tourism
money. The
political instability
in country has
resulted in
decreasing the
number of tourists
(Korstanje and
George, 2012). One
of the major reason
behind this is that
the political unrest forces
people to think twice
before going to any of the
country.
P3.1 Factors affecting demand of tourism
There are several factors which directly or indirectly affects the demand of tourism in a country. Some of
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11. the major factors are
explained below as:
• Technology
- With the
help of
technology,
TUI group
can
effective
promote
and
advertise
all its
holiday
packages.
For
example social media and email marketing can assists the group to create need and demand of its holiday
packages. The use of social media and email will help in creating more and more awareness in the mind of
customers (Chen and Choi, 2008). Therefore, it can be stated that effective use of technology will have
direct impact on demand of holiday packages.
• Emerging economy- The economy will have direct impact on demand and sales of holiday packages which
has been provided by TUI group. Growing economy means that people income and living standard is
increasing. Further they will be left with more money which can be spend on activities such as leisure and
travelling. Poor economic conditions will results in making the people left with very less money. This will
directly leads to decline in the demand of holiday packages which has been provided by TUI group.
• Political stability- Nations which do not have any kind of political stability are not able to attract more
number of tourist. Further majority of the people in the world do not prefer to become tourist of a country
which is not stable in terms of politics (Manente, 2000). If the county if political stable then the interest and
tax rates will be convenient. This will affect the demand of services and holidays packages which are
offered by TUI group. Political instability means that very less people will be interested in visiting the
country and its destinations. This will further results in lowering down the demand of holiday packages
related to country which is facing political instability.
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12. • Influence
of
exchange
rate- If the
value of
Pound
increases in
comparison
with any
other
currency
then people
of other
nation will
not prefer
to buy
holiday packages of UK by the TUI group. Along with this, the demand of packages among people of UK
with regards to other countries will increase as they will receive more foreign currency at the time of
exchange (Chen and Choi, 2008).
• Interest rates- Interest rates prevailing in a country also makes a powerful impact on the sales and demand
of services of tourism. High interest rate will decrease the overall demand of the holiday packages which
has been provided by TUI group. The rationale behind this is that high rates will results in less money left
with people. Therefore, their spending on services related to travel and tourism will direct gets low. On the
other side of this, low rate of interest will increase the demand of holiday packages which has been
provided by TUI group as people will left with more money.
• Disposable income- If the disposable income of citizens of UK is not high then the demand of tourism will
be low as they will be spending less of their money on such activities (Pan, 2008). High disposable income
will create demand of holiday packages provided by the group among people. Further the money left with
people can be spend on travelling other counties. On the other side of this, if the disposable income is low
then people will be more interested in satisfying their basic needs.
P3.2 Supply changed to meet the effects of demand
The effects of demand can be lower down with the help of changes in supply. UK is considered as one of
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13. the most renowned
tourist destination
all across the world.
Further there are
many people which
visit the country
(Bernick and Boo,
2013). It has been
observed that there
are various factors
which are affecting
the demand of
tourism services of
the country. The
effects of demand
can be meet with the
help of some changes in supply which are explained below as:
• Accommodation- Tourist in UK belongs to three major groups which are high income, middle income and
low income. Further visitors of high income group seeks for accommodation in luxury and five star hotels
whereas low income group looks for affordable and low budgeted hotels. The kind and level of
accommodation which has bee provided by TUI group have an direct impact on its demand. Better and
satisfactory accommodation creates high demand of packages in the mind of customers. on the other side of
this, if the accommodation is not satisfactory then people will not use the services and packages which has
been provided by TUI group for next time. This will also lower down the rate of customer satisfaction and
loyalty (Trunfio, Petruzzellis and Nigro, 2006).
• Tour operators- High number of tour operators also meet the effects of demand in terms of travel and
tourism sector. It can be stated that when the number of tour operators is low then they are not able to
promote their product and services to wide range of people. Less number of tour operator means that there
will high demand of holiday packages which has been provided by TUI group. High number of tour
operates will lower down the demand as people in market will be left with wide variety of options available
with them.
• Quality- Good and satisfactory quality of holiday packages will help in ratining all the old customers and
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14. attracting
the new
ones. In
addition to
this, it will
also
support in
enhancing
the entire
degree of
demand of
TUI group
holiday
packages in
the market.
Now the
people in market are made available with wide range of choice related to tour and holiday packages. The
level of competition among all the market players in travel and tourism industry has become so intense that
it is not easy for organizations to increases their customer base and market share (Donohue, 2007).
Therefore, if TUI group supplies adequate and satisfactory services or packages then the demand will
directly get increased.
• Range of services- Wide range of services will increase the demand of packages which are provided by TUI
group. The rationale behind this is that the customers will be made available with wide variety of options
and choices (Stone, 2013). This will create satisfaction among then and will generate more demand.
• Sustainability- Nowadays the use of sustainable practices among businesses in travel and tourism industry
of UK is increasing day by day. Most of the firms are trying to lower down the impact of their operations
and activities on environment and society. This has resulted in increasing the supply of services related to
travel and tourism by developing a sense of satisfaction among all the customers. If TUI group provides
people with more sustainable services then it will be able to create more demand of its services and
packages among customers. the reason behind this is that it will create a sense of satisfaction among people
as they will starts perceiving that the organization is really taking care of society and environment.
• Seasonality- The supply of services also depends on seasonality as it has been observed that in summers
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15. water
sports, ice
tracking are
some of the
activities
which are
preferred
by tourist.
TUI group
needs to
make sure
that if
packages
are only
limited to
season but
are in demand for the entire year. If the services are seasonal then the demand will be for a particular time
period only. Rest of the time , the group won’t be able to generate adequate sales and profitability
(Theobald, 2013). Therefore, it can be stated that effective and unique packages should be introduced by
the group in order to maintain the demand of its holiday packages throughout the entire year.
P4.1 Main positive and negative impact of tourism on economy, environment and society
Tourism sector has emerged as one of the most potential sector of the world. Goa is one of the major and
most famous tourist destination of India. There are various kind of positive and negative impact which tourism have
on economy, environment and society. The impacts are below mentioned as:
Positive impacts:
 Direct and indirect income- Tourism in Goa is considered as one of the major and most important source
of generating income. The tourists pays money in term of foreign exchange which increases the income
(Morrison and Mahony, 2003). Further it can be stated that there are various kind of activities and other
tasks which are offered to the tourist (Chen, and Choi 2008). Against these services money is charged
which is considered as income.
 Employment- The tourism of Goa also helps in development of society as it provides direct and indirect
employment to various people. The activities such as water sports, sky diving etc. provides employment
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16. to large
number of
people in
Goa. In
addition
to this,
indirect
employment is also provided to people with the help of tourism. For example direct employment is for a
person which is offering water sports and indirect employment is fir those which deals with repair and
maintenance of the boast and jets used in water sports.
 Contribution to gross national product- Gross national product is defined as the value of products and
services which has been provided by a country In one particular year. This rate of GNP demonstrate high
rate of economic growth (Manente, 2000). Increasing tourist in Goa will increases the sales of services
of country which further results in rise in overall GNP.
 Generation of foreign exchange- Tourism also helps in economic development by generating more and
more foreign exchange. When tourist visits Goa which is one of the most popular destination of India,
He/she brings foreign exchange in the country (Pan, 2008). In addition to this, more tourist means more
amount of foreign currency which directly results in economic development of the country.
 Conservation and enhancement of natural areas- The concept of tourism also leads to environmental
protection as it aims at conservation and enhancement of natural areas. It is only because of tourism that
many of the natural ares and beaches of Goa are conserved and protected (Barrett, 2012). If tourism was
not developed in this place then these beaches and natural places would have been exploited by humans.
 Cross culture exchange- Tourism results when people from one country moves to another country. When
people of different nation visit Goa, they bring their culture and values with them (Donohue, 2007). The
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17. local
people
become
aware and
get
education
regarding
cultures
and
values of
other
countries
which is
very
beneficial
for the
development of society.
Negative impact
• Pollution and damage to natural resources- Some of the main negative impact which tourism have on
environment is that it leads to pollution and also damages natural resources. More tourist means more
flights which further results in increasing the overall pollution level.
• Loss of amenity and increasing crime- Tourism also have its negative impact on society as it results in
destruction of attractiveness of area of local people. Along with this, it also increasing the crime rate in a
country.
• Seasonality- Tourism is season and therefore, all the employment and income which is generated by the
sector is not permanent and is season. Therefore, people remain employed during off seasons which lower
down the entire economic growth of a country.
P4.2 Strategies which can be used to minimize the negative impact and maximize positive once
Strategies for minimizing negative impact are below mentioned as:
• Planning and controlling- Effective planning and controlling will help in lowering down the negative
impacts of tourism (Lashley, 2007). With the help of effective action plan and adequate control strategies
pollution, crime rate and season unemployment can be overcome easily.
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18. • Visitors
and traffic
management- This will help in making the entire year as season of tourist. Further with the help of visitors
and traffic management, during off season other attractive activities can be organized which can increase
the tourist (Korstanje and George, 2012). The traffic management will help in lowering down the level of
pollution.
• Sustainable tourism- Another way to deal with and minimize the negative impact is by adopting ways of
sustainable tourism in which only those activities and task will be performed which do not have any kind of
negative impact on society and environment.
Ways to maximize positive impacts
• Increasing tourism income in public projects- The income and revenue which is received from tourism can
be invested in public projects. This will directly result in development of economy and society of a country.
• Provision of Jobs to all level- Government and other regulatory bodies can integrate with each other and
can from provision which provides job to local people for all levels. Such kind of provision will help in
increasing the standard of living and income level of people living in nearby areas of an tourism destination
(Future trends in the tourism industry, 2012).
• Staff training, development and education- Another way to maximize the positive impact of tourism is with
the help of staff training and making them educated. Training can be provided to them regarding what kind
of activities can be useful in lowering down the negative impact (Morrison and Mahony, 2003). Along with
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19. this,
providing
them with
education
will help
them to
grow and
find better
opportunities for employment in future. This will results in social development.
CONCLUSIONS
From the above report, it can be concluded that tourism is very essential for the growth and success of any
country. The structure of travel and tourism industry of UK consist of size major component which are interrelated
and interdependent with each other. It can be also concluded that government and other regulatory bodies plays very
important role in the growth and success of travel and tourism industry.
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20. REFERENCES
 Barrett, 2012. An opportunity or liability? London 2012 and security. Safer Communities.
 Bernick, N. L. and Boo, S., 2013. Festival tourism and the entertainment age: interdisciplinary thought on an
international travel phenomenon. International Journal of Culture, Tourism and Hospitality Research.
 Bunja, D., 2003. Modernizing the Croatian tourism industry. International Journal of Contemporary
Hospitality Management.
 Chen, J. P. and Choi, Y., 2008. Generational differences in work values: a study of hospitality management.
International Journal of Contemporary Hospitality Management.
 Clarke, A. and Chen, W., 2012. International Hospitality Management. Routledge.
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