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Task Four Part Two (P5). Review the trends and factors that are currently affecting the travel and tourism sector. How trends and factors are currently affecting the travel and tourism sector. There is little doubt that the travel and tourism sector is set to grow in the future.
Task Four Part Two (P5) Review the trends and factors that are currently affecting the travel and tourism sector
How trends and factors are currently affecting the travel and tourism sector. There is little doubt that the travel and tourism sector is set to grow in the future. Figures from the World Tourism Organisation forecast a growth in international tourism from 880 million arrivals in 2009 to 1.6 billion in 2020. The UK Government also sees tourism as a major area for economic growth in years to come particularly after the 2012 Olympic Games and Jubilee celebrations.
Frequency of holidays Greater Flexibility of Bookings and of Products Independent Travel Trends currently affecting the development of travel and tourism Growth and Expansion of Regional Airports Adventure Travel Lower Spending of UK Tourists in Euro Destinations A Decline in Incoming and Outgoing Passengers New Destinations Holiday Home Ownership Frequency of holidays
TRENDS • 1. Increased Frequency of Holidays Taken: As people become more affluent and travel prices fall, they are able to take more frequent holidays. Traditionally people take a two-week summer break, but it is not uncommon for people to take more holidays. Due to more holidays from work allowed, increase in accessibility to destinations. Leading to the increase in short breaks being taken. Paris is the most popular short break destination, with eastern European cities becoming more popular such as Prague in the Czech Republic.
2. Greater Flexibility of Bookings and of Products • As people become more confident about travel they are able to book the component parts of their holiday (transport and accommodation) themselves rather than go to a travel agent. • They can book online, via telephone or by mobile phone. • Using the internet to research holidays and make travel arrangements gives people greater flexibility, this is set to grow and a wider variety of destinations and holiday products will be sold online in the future. • Some organisations also now have virtual agents so that the face-to-face experience is not lost.
2. Greater Flexibility of Bookings and of Products cont… People use web sites such as Trip Advisor, Expedia etc. These companies are becoming just as profitable as the larger tour operators websites. • Increased use of the internet: According to ABTA (Association of British Travel Agents) the figures for internet use are: ~ 52% of the British population have access to the internet at home ~ 44% of adults have used the internet for information about travel and accommodation ~ 53% are likely to book a holiday on the internet over the next 2 years
2. Greater Flexibility of Bookings and of Products cont… • Increased use of the internet: According to the Office for National Statistics in 2011: • 77% of households have Internet access, a statistic that has been steadily increasing. • 65% have used the Internet to make/book travel arrangements
2. Greater Flexibility of Bookings and of Products cont… However when people are deciding to spend a lot of money on a holiday such as a cruise or a wedding, they are more likely to book through a travel agent.
3. Adventure Travel: • This is a growth area as people look for ever more adventurous and stimulating experiences in their leisure time. • ‘Adventure Travel’ can cover anything from a cruise along the Nile or a trek in the foothills of the Himalayas to bungee jumping in South Africa.
3. Adventure Travel cont…: • Organisations offering ‘adventure travel’ report increased interest and booking over the last 3 years. • New Zealand promotes itself as an adventure travel destination, offering activities such as canyoning, hot air ballooning, sea canoeing, paragliding and snowboarding.
4. Growth in Independent Travel: • There has been a gradual increase in independent travel at the expense of traditional package holidays. • More than 75% of all short breaks taken by British people are organised independently (Mintel 2009). • Independent breaks have grown by 78% in the last 10 years.
4. Growth in Independent Travel cont…: • The growth in independent travel and short breaks could be attributed to the expansion of routes offered by low cost airlines and increased access to the Internet (at home and at work).
5. Growth of Regional Airports: • The rapid growth of low-cost airlines in recent years has led to a surge in the use of the smaller regional airports in the UK. • According to the Civil Aviation Authority (CAA) among the fastest growing are Bristol, Liverpool, East Midlands, Leeds-Bradford, Prestwick and Southampton. • These airports charge lower landing fees, so are often favoured by the low-cost airlines. • They offer routes to European and domestic destinations.
6. Lower Spending of UK Tourists in Euro Destinations: • This relates particularly to the recession that started in 2008. • This is entirely due to the poor exchange rate. • In 2009 and 2011 the £ was weak against the €; the exchange rate was around €1.1 to a £1. This was a significant drop.
6. Lower Spending of UK Tourists in Euro Destinations cont…: • Therefore UK holidaymakers found Europe to be very expensive to travel to. • The effect of this is that when people holiday under these circumstances they change their behaviour on holiday. For example spending less on eating out or opting for all-inclusive holidays.
Natural Disasters Health Warnings, Epidemics and Pandemics Terrorism Factors currently affecting the development of travel and tourism Cost of Travel New Developments Currency Exchange Rates World Recession Environmental Issues
Factors Currently Affecting the Travel and Tourism Sector: • In many respects, travel and tourism is a very fragile sector. • It is very vulnerable to outside effects, whether these are naturally-occurring or man-made.
1. Natural Disasters: • Hurricanes, tornadoes, earthquakes, tsunamis, droughts, floods, volcanic eruptions - no one wants to holiday in an area struck by natural disaster, particularly if infrastructure (roads, buildings etc.) has been destroyed.
1. Natural Disasters cont…: • Although tourism can be badly affected very quickly when disasters occur, the sector has proved itself to be very resilient – tourism in areas affected usually returns to its former state on the back of investment into new hotels, infrastructure etc. • Examples include the Icelandic volcanic eruptions in 2010.
2. Terrorism: • Britain is one of the safest countries in the world for tourists to visit and explore. • Recent events including the 7/7 2005 London bombings have made safety and security a key issue for tourists and those involved in management of the travel and tourism sector. • VisitBritain’s Tourism Industry Emergency Response Group (TIER) estimated that 7/7 resulted in a 2% fall in visitor numbers for 2005.
2. Terrorism cont…: • Other terrorist incidents include New York, Kenya, Egypt, Madrid and Bali. Some affected destinations still attract significant visitor numbers and tourist confidence seems unaffected. • Attacks such as these led to tighter security, especially in airports. • Some destinations attract more tourists initially after the attacks, due to people being interested in what has happened. Many want to visit to ‘pay their respects’; this is known as dark tourism.
3. Health Warnings, Epidemics and Pandemics: Epidemics- An outbreak of a contagious disease that spreads rapidly and widely within one area. Pandemic- An epidemic of an infectious disease that spreads across a large region e.g. a continent or even worldwide. • Foot and Mouth disease – Britain's tourism sector was very badly affected in 2001 (and 2007), countryside areas were closed to the public and rural tourism businesses lost up to 90% of earnings for the year.
3. Health Warnings, Epidemics and Pandemics: • SARS – affected tourism in the Far East (particularly in 2003) and had a knock on effect on the countries to which people from this area visited, including the UK. • Recent outbreaks of bird flu have caused similar problems in certain parts of eastern Europe.
3. Health Warnings, Epidemics and Pandemics: • Swine flu in 2009 began in Mexico (outbreaks were also seen at the beginning of 2012 too). This had an immediate affect on tourism in Mexico. As the flu spread, many people cancelled their holidays there and some people cut short theirs. • Health warnings and epidemics put people off from travelling to certain destinations