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7/31/2019 The Travel and Tourism Environment
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THE TRAVEL AND
TOURISM ENVIRONMENT
Factors Affecting the
Industry (ExogenousVariables)
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What Factors Are Involved?
Changes in Destinations-growth anddecline
Customer types
Length of stayGreater variety
Political aspects
Security and safety
Technological growth
Highly competitive environment
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Changes in Destinations-growth
and decline
Choice of places visited will change
over time-so destinations must be
responsive:
Some destinations becomeunfashionable
Others fall into decline
New ones emerge
Impacts
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Customer Types
Greater use of market segmentation in
the industry enables focus on more
varied customer types:
Leisure customersBusiness customers
Independent travellers
Package holidaymakersAge specific groups
Special interest groups
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Length of Stay
The industry has become more
responsive to customer demands for
flexibility:
Availability and choice of short breaks
More customers taking multiple breaks
More companies adopting flexible
working patterns
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Varied Offer
Social factors such as demographic
change and trends to healthier
lifestyles have encouraged:Adventure holidays
Leisure and activity related
breaksExtreme and risky sports holidays
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Political Aspects
Many political factors have
influenced the industry:
Security concerns-but political barriers
may prevent global responseGlobal warming-the race is on to dealwith the issues
Sustainability-varied responses-not all
about the environmentResponsible Tourism-can be amarketing tool
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Security and Safety
The challenge is to protect travellers
as they move around the world by
using:
Rail/stationsAir/airports
Cruise ships/ports
Ferries/portsBuses/coaches
Hotels and restaurants
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Security and Safety Issues
(cont.)
Airport security attracting moreattention
Expense of technological solutions
Not all countries have same viewof security risk or respond insame way as Northern European
countries and USImpact on individuals of anti-terror measures
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Health & Safety Aspects
New epidemics have power to
severely disrupt the industry:
Impact of `Bird Flu on Mexico
Effect of Foot and Mouth and BSE
on tourism in UK
Skin CancerHotel Safety
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Technological Change
Developments in transportation :
Super ferries and floating resorts
Super Jumbo (A380) and Boeing
Dreamliner
Continued growth of e-commerce:
Increased use of travel management
systems for business tourismIncrease in independent bookings
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Highly Competitive Environment
Each component is subject to
severe competition e.g. hotels
sector, airline sector, cruisesector, tour operations.
Leads high levels of integration.
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Keeping Up With The
Industry
Collecting items from
newspapers?
Joining industry groups to receive
e-mail alerts.
Watching/recording news and
documentary programmes.