The impact of change on the travel and tourism sector

The impact of change on the stumble and touristry sectorAnalyze the impacts of issues and trends that drive change in the travel and tourism sectorDue to the current trends and issues causing change in the travel and tourism sector, the businesses consecrate to adapt to the changes and redesign their products and serve. m all an(prenominal) changes brought by globalization, technology, existence political changes, economics changes and people attitude to wards tourism seclude aim reshaped the excavate altogether. The impacts of these trends and changed throne be depict be small(a) in the context of a major tourism brands.Due to the ageing of the population tourism, businesses ar recoil to hire older workers. Young people argon to a greater extent qualify and non pass oning to join the industry imputable to poor workings conditions. Older people argon less mobile and to a greater extent demanding which testament put up impacts on wage range and different costs t o produce staff.Lifestyles of the people have changed and their attitude towards tourism services has changed a large(p) engage. People are to a greater extent demanding and more price conscious now. Firms mustiness get up costs and their profits in order to survive in a more competitive environment now.Technology have helped businesses geld down costs as it has enabled management to manage their resources efficiently and have reduced spare capacity. The increased use of telephone, 3G mobile and internet has helped consumers to find information regarding prices and value for money. This has resulted in a more intense contention. Hotels are doing to the situation by recruiting staff that have skills in information and converse technology.Outsourcing is a key phenomenon in the modern tourism industry. Different products esp. feed is obtained from otherwise producers and its hard to explain the origin of the nourishment to consumers confident(p) it puts an extra push on the costs involved.globalization has not besides benefited the tourism industry in terms of more revenue and clients except it has as well been a sole reason for cheap skilled labor. delicate labor from poorer regions can be attracted to the industry at relatively cheaper pass judgment which would result in lower employment cost for hotels and catering industry. Globalization also provides this wonderful opportunity to exploit economies of scale. Globalization can subject homogenization in services which might not be estimable from the customers perspective unless brand names do ensure higher product quality.Skills gap in the industry is adversely affecting the quality of services. Firms are in a position to bloom prices of their own choice in such circumstances. However companies are decision a solution to the issue by providing on-job trainings or paying lovely wages to skillful workers and thus attracting more customers. However the wage rates are mostly affected by t he local economic and industrial condition and educational level of the locality as well.Hotel industry is greatly affected by the changes in law as well everyplace the last few years. There is a strong emphasis on working time regulations, minimum wage laws and other working conditions regulations. Laws censor smoking in public places and restaurants etc. are also have impacts in the tourism business. Hotels are now seeking cost sound labor and are more into application of technology.Government and other regulatory authorities are putting more and more pressure on catering firms now to take great care of hygiene and other fare related issues. Greater awareness among the consumers related to diet and health have forced the catering businesses and restaurants to reduce the use of sugar and season in their solid food. Due to the increased number of obesity cases, consumers are more conscious to the highest degree the fats and calories rather than just taste. Customers want to kn ow about the origin of the food as well. There is increased food labeling and more information is provided and displayed for the customers regarding the food and its ingredients. There is a great demand for food to be produced in a affectionately responsible way and this is service of process in promoting bully practices in the industry.The tourism industry faced a sombre setback after the incident of 9/11. The US war on terror and the Iraq war changed the entire industry all together. Mevery incident s of attacks on tourists, kidnapping for ransom and other political gains were witnessed which created a sense of insecurity among the tourists. Many countries and regions were declared unsafe for tourists. asunder from US, many other cities in Europe and UK were also the victims of terrorism. Madrid and the capital of the United Kingdom bombing somehow created this perception among the tourists that EU member states were the targets of the terrorists. The impact of this is appar ent to be long term as it will take a long time to restore the faith of the tourists. Due to this lack of confidence the tourism industry has lost a lot of business and there is a serious decline in investment in this sector. workings conditions have deteriorated and level of employment is showing a downward trend.4.2 demonstrate the possible consequences of businesses failing to respond to market place changesMany different businesses are facing many changes in the market. Such changes are economic, social, political and behavioural changes. Tourism industry is not an exception either. Over the last gallus of decades the tourism industry has seen a tremendous amount of change and companies are always advised to adapt to these changes. Appropriate strategy and planning can make a company successful and make these changes as an opportunity rather than a threat. However, companies which are not being able to respond to these are likely to face many different failures and proble ms which are described below.Loss in Sales RevenuesCompanies which are unable to respond to changes in the market, they are most likely to sustain customers and revenues. Due to increased competition and market forces, tourism businesses are abjure to charge a low price and earn little profit margin so any failure to adapt to market changes are most likely to creator bolshyes financially.Technology can save a great deal in this regard. Technology not only helps the industry to market their products but also helps in the reduction of labor costs. Different computer applications have made it possible to access and receive information and help in decision making process. A company is most likely to stick a great deal if its unable to adapt to these scientific changes.Loss of Competitive EdgeAs a famous verbalise goes competition improves services. Tourism industry is facing a tight competition and different businesses related to the industry are bound to cut down costs and st ill provide best quality services. By the proper change management strategy, businesses can obtain competitive distinctness over other competitors. The proper use of technology, hiring the skilled labor and other value added services can not only attract more customers but also be a event of more market share. Failure to adapt to these trends and changes can be a reason of loss of competitive edge.Loss of GoodwillA business is most likely to damage its reputation in case of failure to adapt to changes and fresh trends. A tourism business unable to provide valued services to its customers at reasonable price is surely going to lose its customers. modern trends have shown that customers are most into third estate products and the hotels and catering industry are affected by this change a great deal. Hotels are evaluate to operate in an environment friendly elan and promote green practices. However if the businesses are unable to adapt to this, they are going to lose face in thi s changing market.Regulatory IssuesHotels, restaurants and catering businesses are bound to provide information regarding its products due to increased awareness among customers regarding food and its contents. Products labeling esp. in case of the catering industry has changed a great deal due to this trend. On the other hand there are now more regulations and laws related to the food industry. Use of some chemicals and other ingredients in the food products are banned. Smoking in restaurants and public places is not allowed. Similarly food businesses are properly inspected and regulated now.If restaurants and catering businesses do not take into account all these factors they might be facing some serious regulatory actions in many cases. There are some cases tardily where the customers have sued the hotels and restaurants for food related issues. Government regulatory authorities also keep a check on this industry so any negligence in this aspect can be a cause of some serious co nsequences as well.Growth IssuesA company will not be able to grow and expand its business if it is unable to adapt to changes and trends. Tourism businesses must hire human resource with good knowledge of the technology and customers service needs. Use of the technology and skillful labor helps in cutting down costs. Companies in tourism industry must also work in an environment social friendly manner because consumers are more aware and conscious now regarding environmental and social issues. They prefer to go for green products and thus can provide a competitive edge to the business. Failure to adapt to these changes and trends will result in decline in the revenue and thus growth will not be possible.Referenceshttp//www.tourismandmore.com/tidbits/confronting-change-in-the-tourism-industry/http//www.tourismandmore.com/tidbits/why-tourism-industries-fail-part-1/