Unit 1 - Investigating the Travel and Tourism Sector P5 & M2
P5 - review the trends and factors that are currently affecting the travel and tourism sector
M2 - explain how developments, trends and factors are currently having a significant effect on the travel and tourism sector.
Unit 1 – Investigating Travel and
Tourism
P5 – Review the trends and factors that are currently affecting the travel and
tourism sector.
M2 – Explain how developments, trends and factors are currently having a
significant effect on the travel and tourism sector
Trends
Increased frequency of holidays
It is becoming more known for people to take holidays frequently. Back in the day as
mentioned in the previous assignment you would have to be rich to take a holiday but
because of how things have changed the average number of holidays taken per person a
year is 3.2. The total number of people taking holidays was 77% in 2015. Western
Mediterranean destinations particularly Spain are set for a bumper year with bookings
for 2016 according to ABTA Travel Trends 2016. They think this is because of the terror
attacks on Tunisia, and they think Spain ‘’targets similar types of tourist to Tunisia’’. This
will have a positive impact on current developments for tour operators there will be a
high demand for this location, therefore they need to consider ways how they can
develop the package holidays they have to offer. It will also have a positive impact on
the transport component because people will be needing their services in order to get to
Spain.
The increased frequency of short breaks are becoming more popular therefore it is
affect the travel and tourism industry. It is having a positive effect on tour operators and
the current development of tour operators. Thomas Cook have begun block buying
thousands of hotel rooms in Spain in anticipation of increase demand, tour operators
are also able to develop new package holidays to lots of different destinations. The
increased frequency of short breaks is also having a significant affect in the travel and
tourism sector because it’s effecting accommodation providers. The company, part of
Expedia.com, sells about 20,000 hotels in 1,000 locations related to short breaks.
David Roche (Hotels.com senior vice president) said ‘’ Millions of holidaymakers are
now taking a 'portfolio approach' to holidays, taking one or two main trips and several
short breaks, many of them in the United Kingdom. The demand for holidays has never
been higher’’. An extensive survey of British travel habits carried out by travel search
website momondo showed that city breaks are more popular than ever, with 52 per cent
of those asked stating them as a preferred type of holiday. This is having a significant
effect on current development for accommodation providers. Because of the high
, demand they are able to charge more money for accommodation which will then help
them develop.
Greater flexibility of booking of products
More people are becoming more and more confident about travelling abroad. It is very
common now for people to book unpackaged holidays. An unpackaged holiday is one
which you plan entirely by yourself instead of visiting a travel agent. You have to arrange
your own flights, accommodation and other things needed such as transfers and car
hire. The number of people using travel agents is down to 28% from 56% in the same
survey last year (2015). People are able to book unpackaged holiday from web based
travel agents such as Expedia. Expedia.co.uk helps travellers to find and create the trip
that best matches their individual requirements. Now with the award-winning Expedia
mobile app customers can plan and book flights and hotels on the move. It also enables
the consumer to compare prices, something which they can’t physically see when
visiting a travel agent in a shop. This is having a negative effect on travel agents because
people are no longer needing them to book their holidays. As mentioned in other units,
small independent agents such as Miles Morgan Travel are in competition with web
based agents. However large multiples such as Thomas Cook also have online booking.
The negative point about Thomas Cook having a web based agent could result in their
High Street shops closing due to low demand. Figures show that seven in ten people
who took a holiday in the last year booked entirely online. When people want to spend
more money on something like a cruise that’s usually when they want expert advice
from a travel agent, but now, most of these web based agents have call centres where
they can speak to an agent via the phone. However it is having a positive effect on the
transport component. Because more web based agents are opening and partnering with
airlines it will result in more bookings for them. Same applies with accommodation.
It has a significant affect travel agents because people are no longer needing advice and
information about destinations. They can simply research it themselves. 44 per cent of
consumers said that they trusted reviews written by other holidaymakers on travel
review websites such as TripAdvisor. Instead of visiting travel agents for brochures to
look at pictures of the destinations this article
http://www.dailymail.co.uk/news/article-2166772/The-end-travel-agent-Holiday-
booking-services-extinct-people-web-buy-vacations.html says ‘’around a quarter of
people use social networking sites such as Facebook to post photos and videos’’.
Consumers can also access images online. In November 2011 Thomas Cook, which has
1,300 travel agent shops, was forced to turn to its banks for increased loans as it looked
like it might not struggle to survive. In 2011 the 170-year-old group reported losses of
£157.1 million in the first quarter of this year. That alone is clear evidence about how
this factor is having a bad affect the travel and tourism sector. It is causing them to lose
money. The other reason why this trend is having a significant effect on the travel and
tourism sector is because it’s helping increase revenue for airlines. British Airways,
Ryanair and EasyJet have all announced bumper profits recently, and online companies
such as Expedia and bookings.com are grabbing a bigger and bigger share of the market.
Although this is losing travel agents money it is gaining the transport component money.
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