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Unit 13 - M1
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Summary of 2 pages for the course Unit 13 - Tour Operations at PEARSON (Unit 13 - M1)
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Bianca AndreiUnit 13
M1
Throughout this assignment I am going to discuss the impact of challenges facing tour operators.
There are several external factors that indirectly afect the hospitality and tourism industry. It is
essential for tour operators to know about these factors because according to that only planning of
tasks can be done for achieving success. As it is difcult to control these factors it is essential to make
necessary changes whenever required.
One of the major factors that are having indirect infuence is the economic factors within a region or
around the globe. A slight variation in the economy can make people spent less or more in the tourism
industry. Tour Operators get afected by this external infuence, having as consequences the loss of
customers, which can lead to loss of proft. hen going on holidays, customers expect to have a good
value for money and not having to spend expensive costs on their destination. The exchange rates are
currently going up and increase their value, so the customers might fnd it difcult to exchange British
pounds in other currencies and not get a good value for money.. The loss of customers occurs when they
fnd more convenient to book for themselves separately and individually, rather than going to a tour
operator which might not have their desirable destination ready for sell or the prices might be too
expensive for their budget.
Moving forward, the political issues that some countries and destinations experience can signifcantly
afect the tour operators industry. llassifed as political infuences, the terrorism and wars that
countries experience put in difculty the tour operators when they sell their package holidays. Firstly,
tour operators look for their customers safety, so they will no longer create package holidays to
destinations where terrorism and wars occur. For instance, ggypt, Tunisia, and some of the Asian
destinations experience high issues with terrorism and wars. Tour Operators get afected by this
because they will mainly have to shut down their branches aboard due to terrorist atacks, fact that will
lead to unemployment for the company and loss of proft. Moreover, if the terrorist atacks increase
their growth, tour operators will eventually have to minimize their list of destinations, so they will not
put in any danger their customers.
However, other signifcant infuences have impact on tour operators, such as the growth of technology.
Nowadays, people get to use the internet 24/7 and they have immediate access to information,
researches and even bookings made by themselves. The technology gives people the opportunity to
become independent when it comes to travel and holidays, as they have a wide-range of websites,
options for their holidays and even the opportunity to book separately the accommodation and
transport options. This factor afects the tour operators because they are in competition with the
independent travel and what technology is able to ofer people. lustomers will not seek for information,
advices and booking throughout High Street branches of tour operators, instead they will fnd more
accessible to use the internet. In this case, tour operators will face the loss of their business because
people prefer to use independent travel and online websites.
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