Unit 1 - Investigating the Travel and Tourism Sector
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D2 Analyse how travel and tourism organisations are responding to changing
trends and factors. Select two organisations from the component industries
and analyse how changes have impacted on their operations and how
effectively they have responded.
Thomas cook are responding to changes through the increase and the growth of
independent travellers. Thomas cook is a multinational travel agent and airline with over 96
aircrafts nearly 3,500 travel agents. The travel agents deal with holidays all year round with
families, elderly and now independent travellers. Thomas cook makes nearly 70% of the
agent’s income from family holidays. However in the last year this income has fallen but
with independent travellers increasing massively. Thomas cook also sell everything
individually like just flights, hotels, car hire without them being in a package. Thomas cook
have started to sell holidays which suit the independent travellers needs with special
interest holidays like skiing, mountain climbing, bike riding. Independent travellers want to
experience new places and new things to do. They also spread their money around more
efficient from buying multiple location driven by their own particular itinerary they have.
Thomas cook have a separate page with information about places to visit which have the
best culture and food. Thomas cook respond to this trend as they help decide the best
places to visit. There have been a rise in low cost airlines in Europe as the travellers don’t
want to spend a lot of money on a flight. Thomas cook has also decided to send their planes
to different and wider locations to get more visitors flying with them. Last year there was a
huge growing number of independent holiday makers going to Spain alone without a
package. There was a 30% rise and a fall with the number of packages sold by 4%.Factors
like terrorism can put people off travelling to them countries however some people might
want to see what them places are like so Thomas cook offer their customers insurance with
them. For example if customers want to travel to Tunisia or Ukraine it is important to get
insurance just in case anything happens because they might have difficulties getting to their
hotel or something. Most people wouldn’t want to go to these countries as they might feel
scared in case they get killed or hurt. Therefore these type of countries are losing customers
and the country is losing its economy so they are trying to persuade people to come back
and visit and spend their money. In times like this with terror travel agents might sell these
holidays cheaper to try and get people to go. The recession also had a big impact on
business travellers as the number of business travellers declined as their employees tried to
find cheaper ways of travelling so they can attending their meeting and conferencing
without having to spend a lot of flying. Thomas cook have tried to get budget hotels in some
countries to help business travellers who don’t want to spend a lot. Thomas cook have also
responded to health warnings like when Ebola was spread in 2014 about 80% of Asian
customers had cancelled trips over the coming two to three months, including a group
booking of 1,500 visitors from Thailand worth 12 million rand (€840,000). British airways are
cancelling flights which are going to Sierra Leone and Liberia to stop the spread of the fatal
disease. However Thomas cook didn’t need to worry about Ebola as they do not fly out that
far.
In addition Tui have also responded to changing trends and factors. Firstly through the
greater flexibility of holidays Tui as travel agents have been introducing more holiday
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