I'm going to write about how trends and factors are currently affecting the travel and tourism industry.
Trends
Trends
Increase in inbound tourists to UK
London is the most popular place to visit for tourists. In 2011 15.3 million visitors spent time in the capital, spending over £9.4bn. This represents 52% of all inbound visitor spending.The rest of England attracted 13 million inbound visitors who spent an estimated £6.2bn, representing 35% of all inbound visitor spend. Scotland attracted 2.4 million visitors and 8% of all visitor spending, with the equivalent figures for Wales being 0.9 million visits and 2% of visitor spend.
This table shows the statistics of inbound tourism. You can see the increase of people spending more money but the balance of payments have actually decreased as there are less people going overseas. Therefore there are more domestic tourists as people can not afford to take their holidays overseas because of the recession.
Decrease in outbound tourists from UK
It was estimated that in 2008, 7 million UK resident adults take two or more European holidays and 1.7 million take two or more long-haul trips annually. The trend had turned in 2009 with UK residents making fewer outbound trips, Trips abroad fell by 17 per cent which has meant a decline in visitor numbers. There is more pressure on the economy nowadays so people can't afford holidays abroad.
The affect of the Euro
GBP is strong against euro so people from the UK can buy more Euros for their money and therefore have a cheaper holiday in Europe. They will find accommodation and other services cheaper.
In July 2012 ABTA predicted 13 million Brits taking their holidays abroad and visiting Mediterranean countries, which British tourists are favouring due to the strength of the pound against the euro. (TTGDigital) So this summer there were actually more people taking holidays overseas as the GPB was strong against the Euro which meant that people were getting more Euros for the pound.
Factors can be anything that has an effect on travel and tourism. It can be a negative or a positive effect.
Natural Disasters can have a big affect on tourism. For example the ash cloud in 2011 caused flights to be cancelled or delayed and many of the airlines were in trouble with covering all the travel insurances at the same time.
An underwater earthquake, measuring 9.0 on the Richter scale, struck 10km under the sea’s surface on the North coast of Sumatra in Indonesia. The earthquake displaced tectonic plates on the sea floor, resulting in the tsunami. The tsunami had two main affects on tourism:
1.) Creating the image the area was unsafe
2.)Physical damage to the area ( Leaving most tourist resorts in ruins.)
Tourism was of great importance to Thailand, it contributed to the economy of the country and local economy (tourism accounted for almost 6% of GDP in 2002 and the hotel and restaurant sector accounts for 3.8% of Thailand’s GDP). This is even more so in Phuket where tourism accounted for 42% of the area’s gross provisional product.
Also the Hurricane Sandy which hit east coast of the US had a big affect on transport. Public transport was suspended in the US capital, New York, Baltimore, Philadelphia and
Boston. Amtrak has suspended passenger train services across the north-east, while nearly 14,000 flights were cancelled, according to Flightaware.com. So this means that passengers had to stay where they were and tourists would be deterred from visiting the area as they may be afraid of difficulties with transport in the area.
Terrorism
The London bombings of 7/7 2005 in particular, have made safety and security a key
issue for tourists and those involved in managing the travel and tourism sector in the UK. Following 9/11, extra security measures were introduced at airports across the world, while the London bombings led to heightened security at railway stations across the
country. On September 11th 2001 there was a series of coordinated terrorist suicide attacks. Two United States airliners were hijacked and intentionally crashed into the World Trade Centre building in New York by terrorists acting under the command of the al-Qaeda terrorist group killing 2,972 people, 19 of those terrorists the rest civilians.
The attacks on the world trade centre in New York resulted in 4 million less international arrivals world wide in 2001 in comparison to the previous year. This obviously indicates an element of fear introduced and an unwillingness to fly particularly on transatlantic flights showing that the tourist industry was affected on a global scale not just in America. There was a decrease in international tourists in the UKwith a 12% decrease in visitor numbers to Westminster Abbey, 20% at the tower of London and 16% at the Tate Britain.
However, American foreign travel to the USA was most affected with visits falling by 20%. In terms of the passenger numbers the short term affect was reasonably catastrophic for the airline companies. Both British Airways and American Airlines suffered losses as demand dropped especially in the full service scheduled market which left the market for new lower cost airlines to be more competitive. British Airways battled with Go, Easyjet, Ryanair and a decreased supply for their service.
Flights within the US were grounded because of the attacks, and incoming international flights were diverted to Canada. Services resumed within a few days but it took years for the market to recover.
Airport security procedures were shaken awake, slapped round the face and
forced to undergo a rigorous transformation in the wake of the terrorist attacks
of 11 September 2001. And the authorities have been playing catch-up ever since,
updating and tweaking security screening measures to address subsequent
attempted attacks on aircraft using shoes, liquids, printer cartridges and even
underwear.
Responsibility for airport security screening in the USA was swiftly put into
federal hands after 9/11, with the formation of the US Transportation Security
Administration. Targets were set for all US airports to screen 100% of checked
baggage for explosives; passengers were subjected to much more vigorous
screening procedures - which continue to evolve; and watch lists were drawn up
to prevent people suspected of having terrorist links from flying.
The latter culminated in the Secure Flight programme, which the TSA says now
"conducts terrorist watch list matching of passengers on 100% of domestic and
international airlines for flights within, inbound and outbound from the United
States".
Source: Flightglobal.com / Airport security/
Airport security procedures were shaken awake, slapped round the face and
forced to undergo a rigorous transformation in the wake of the terrorist attacks
of 11 September 2001. And the authorities have been playing catch-up ever since,
updating and tweaking security screening measures to address subsequent
attempted attacks on aircraft using shoes, liquids, printer cartridges and even
underwear.
Responsibility for airport security screening in the USA was swiftly put into
federal hands after 9/11, with the formation of the US Transportation Security
Administration. Targets were set for all US airports to screen 100% of checked
baggage for explosives; passengers were subjected to much more vigorous
screening procedures - which continue to evolve; and watch lists were drawn up
to prevent people suspected of having terrorist links from flying.
The latter culminated in the Secure Flight programme, which the TSA says now
"conducts terrorist watch list matching of passengers on 100% of domestic and
international airlines for flights within, inbound and outbound from the United
States".
Source: Flightglobal.com / Airport security/
In 2009 there was also a terrorist who wanted to set a plane on fire.
Northwest Airlines Flight 253 was an international passenger flight from Amsterdam Airport Schiphol in Haarlemmermeer, Netherlands, to Detroit Metropolitan Wayne County Airport in Romulus, Michigan, United States. The flight was the target of a failed al-Qaeda bombing attempt on Christmas Day, December 25, 2009, in which a passenger tried to set off plastic explosives sewn to his underwear. There were 290 people on board the plane, which was operated by Northwest Airlines.
The convicted bomber in the "Christmas Day bombing attempt" was 23-year-old Umar Farouk Abdulmutallab, who had concealed plastic explosives in his underwear but failed to detonate them properly, resulting in flames and popping noises. A Dutch passenger, Jasper Schuringa, tackled and restrained him and put out the fire with the aid of others. Abdulmutallab was then handcuffed while the pilot safely landed the plane.
The most significant changes to British airport security since 2006 will see
increased pat-down searches, more sniffer dogs in terminals and a step-up in
hand luggage inspections after the government announced its response to the
Detroit airline bombing incident.Gordon Brown, Prime Minister of the United Kingdom, said that the UK would take "whatever action was necessary". The day after the attack, British police searched a family-owned flat where Abdulmutallab had lived while in London.
Decline in Sales
Struggling tour operator Thomas Cook has reportedly suffered a near 33% slump in summer bookings as its financial woes deter already cash-strapped holidaymakers.
According to a leisure industry monitor seen by the Financial Times, Thomas Cook saw bookings decline by as much as a third in the two weeks to 14 January – a key period for tour operators, when some 15% of summer bookings are taken.
The decline is more than double the industry average of a 15% drop and nearly three times the 11% fall at Thomson Holidays owner, Tui Travel.
However Thomas Cook has promised to go “back to basics” to revive its struggling and overly complex UK tour operation.
The tour operator revealed that its mainstream UK business made no profit during 2011 with its independent sector accounting for the UK’s entire £19.5 million operating profit. This was despite a UK turnover of £3.2 billion for the year to the end of September.
It is cutting 500 “under-performing” hotels for summer 2012 while also adding another 90 resorts – half of which are either exclusive in the UK or offer differentiated elements.
Struggling tour operator Thomas Cook has reportedly suffered a near 33% slump in summer bookings as its financial woes deter already cash-strapped holidaymakers.
According to a leisure industry monitor seen by the Financial Times, Thomas Cook saw bookings decline by as much as a third in the two weeks to 14 January – a key period for tour operators, when some 15% of summer bookings are taken.
The decline is more than double the industry average of a 15% drop and nearly three times the 11% fall at Thomson Holidays owner, Tui Travel.
However Thomas Cook has promised to go “back to basics” to revive its struggling and overly complex UK tour operation.
The tour operator revealed that its mainstream UK business made no profit during 2011 with its independent sector accounting for the UK’s entire £19.5 million operating profit. This was despite a UK turnover of £3.2 billion for the year to the end of September.
It is cutting 500 “under-performing” hotels for summer 2012 while also adding another 90 resorts – half of which are either exclusive in the UK or offer differentiated elements.
BBC News- Struggling Thomas Cook reports quarterly loss
In a trading update, it said its underlying operating loss for the three months to 30 June was £26.5m, compared with a profit of £20.1m a year earlier.
Thomas Cook said it had been hit by "challenging" trading, but that sales in recent weeks had improved.
Its revenues for the three months were down 6% from a year ago.
'Difficult period' Harriet Green, who became Thomas Cook's new chief executive last month, said: "My initial focus is to review our businesses, quickly establish priorities, and develop a clear plan to reinvigorate Thomas Cook.
"The group has been through a difficult period, but much has been achieved which has strengthened the balance sheet and improved liquidity."
She added: "The strength of the group's brands and the quality of its businesses and people provides a foundation from which to bring the business back to full strength."
During the quarter, Thomas Cook sold its HCV Hotels subsidiary in Spain for £58m, and agreed an aircraft sale and leaseback deal which raised £189m.
The company has struggled with high debt levels and the wider downturn in the global travel sector.
In May, Thomas Cook secured a £1.4bn refinancing and issued three profit warnings last year, and was forced to take an emergency £200m loan.
Its revenues for the six months ending 31 March totalled £3.52bn, up from £3.43bn a year earlier. This deal gives the company a further three years to repay its debts.
Conclusion
After doing a research on trends and factors affecting travel and tourism I learnt many new things about how it can change the development of the industry and what are the new trends nowadays.
The trends show that there's less outbound tourism because people in the UK prefer to take trips inside the country because there's more pressure on the economy these days. However there was a bit of increase in outbound tourism at summer this year as some people foun it cheaper to go abroad due to the strength of the pound against the euro.
The factors show that there have been many security changes at airports due to the bomb attacks. There is a longer procedure before people can go on the plane such as scans and taking shoeses off feets etc.
Natural disasters have a big affect on people because they always want to go to a safe place and if there's a disaster somewhere people are less likely to go there which may have a major effect on the tourism industry.
Importance of interrelationships within Alton Towers
Which brand partners have the Alton Towers Resort worked with?
These are just some of the brands the Alton Towers Resort has
worked with;
Kellogg’s, The Sun, The Daily Mail, McDonalds, Kleenex Tissues,
KFC, Pizza Hut, moneysupermarket.com, Cadbury, Walkers, Tesco and W H Smith.
Burger King is also one of the brands working at Alton Towers. The importance of interrelationship between Alton Towers and Burger King is that customers can stay at the theme park to eat at Burger King when they are hungry and they don't need to leave Alton Towers to go and find somewhere else to eat. In this case both Alton Towers and Burger King benefits because if there is Burger King then people stay and spend their money at Alton Towers. If the customer's needs are met then it's more likely that customers will be pleased and may come back next time which is an advantage for Alton Towers because people going to spend their money within the Theme Park.
However, The Burger Kitchen will replace the American franchise as Burger King contract will not be renewed, which has been at the theme park for a number of years. Park operators Merlin Entertainments are keen to replace all franchised food offerings with in-house equivalents. KFC left Alton Towers last year, being
replaced by the Fried Chicken Company brand. A similar process has been taking place at both Thorpe Park and Chessington World of Adventures. This may have an effect on customer spending at the theme park because visitors like to buy and eat food they are familiar with. (Branded products).
Which brand partners have the Alton Towers Resort worked with?
These are just some of the brands the Alton Towers Resort has
worked with;
Kellogg’s, The Sun, The Daily Mail, McDonalds, Kleenex Tissues,
KFC, Pizza Hut, moneysupermarket.com, Cadbury, Walkers, Tesco and W H Smith.
Burger King is also one of the brands working at Alton Towers. The importance of interrelationship between Alton Towers and Burger King is that customers can stay at the theme park to eat at Burger King when they are hungry and they don't need to leave Alton Towers to go and find somewhere else to eat. In this case both Alton Towers and Burger King benefits because if there is Burger King then people stay and spend their money at Alton Towers. If the customer's needs are met then it's more likely that customers will be pleased and may come back next time which is an advantage for Alton Towers because people going to spend their money within the Theme Park.
However, The Burger Kitchen will replace the American franchise as Burger King contract will not be renewed, which has been at the theme park for a number of years. Park operators Merlin Entertainments are keen to replace all franchised food offerings with in-house equivalents. KFC left Alton Towers last year, being
replaced by the Fried Chicken Company brand. A similar process has been taking place at both Thorpe Park and Chessington World of Adventures. This may have an effect on customer spending at the theme park because visitors like to buy and eat food they are familiar with. (Branded products).
Alton Towers
Transport
Another brand partner which advertises and works with Alton Towers is the National Express coach company.
Transport
Another brand partner which advertises and works with Alton Towers is the National Express coach company.
Also the Alton Towers Transport team run a number of bus services designed to connect with incoming train services from popular destinations.
Alton Towers is in interrelationship with Kingshouse Travel, one of Scotland's leading coach operators too.
They are an official trade partner of the Alton Towers Resort which enables
them to offer discounts of up to 40% on theme park tickets when booked with coach
travel. This means both organisations benefits because the coach company makes profit by advertising Alton Towers and the discounts they give when traveling with them, and Alton Towers make profit from the tickets people buy to go in the theme park.
Alton Towers is in interrelationship with Kingshouse Travel, one of Scotland's leading coach operators too.
They are an official trade partner of the Alton Towers Resort which enables
them to offer discounts of up to 40% on theme park tickets when booked with coach
travel. This means both organisations benefits because the coach company makes profit by advertising Alton Towers and the discounts they give when traveling with them, and Alton Towers make profit from the tickets people buy to go in the theme park.
Tesco offers Club card Vouchers for their customers so they are promoting the theme park and both of them benefits of this because Alton Towers gets more visitors through the special offers advertised by Tesco. This means Tesco makes some profit of selling vouchers the vouchers too.
Splash Landings Hotel and Alton Towers Hotel has great package offers for visitors who planing to spend more time at the theme park. This interrelationship is very beneficial for Alton Towers and the hotels because people will stay longer which means they will spend more money at the Theme Park and also pay for the accommodation.