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THE TRAVEL AND

TOURISM ENVIRONMENT

Factors Affecting the

Industry (ExogenousVariables)

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What Factors Are Involved?

Changes in Destinations-growth anddecline

Customer types

Length of stayGreater variety

Political aspects

Security and safety

Technological growth

Highly competitive environment

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Changes in Destinations-growth

and decline

Choice of places visited will change

over time-so destinations must be

responsive:

Some destinations becomeunfashionable

Others fall into decline

New ones emerge

Impacts

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Customer Types

Greater use of market segmentation in

the industry enables focus on more

varied customer types:

Leisure customersBusiness customers

Independent travellers

Package holidaymakersAge specific groups

Special interest groups

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Length of Stay

The industry has become more

responsive to customer demands for

flexibility:

Availability and choice of short breaks

More customers taking multiple breaks

More companies adopting flexible

working patterns

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Varied Offer

Social factors such as demographic

change and trends to healthier

lifestyles have encouraged:Adventure holidays

Leisure and activity related

breaksExtreme and risky sports holidays

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Political Aspects

Many political factors have

influenced the industry:

Security concerns-but political barriers

may prevent global responseGlobal warming-the race is on to dealwith the issues

Sustainability-varied responses-not all

about the environmentResponsible Tourism-can be amarketing tool

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Security and Safety

The challenge is to protect travellers

as they move around the world by

using:

Rail/stationsAir/airports

Cruise ships/ports

Ferries/portsBuses/coaches

Hotels and restaurants

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Security and Safety Issues

(cont.)

Airport security attracting moreattention

Expense of technological solutions

Not all countries have same viewof security risk or respond insame way as Northern European

countries and USImpact on individuals of anti-terror measures

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Health & Safety Aspects

New epidemics have power to

severely disrupt the industry:

Impact of `Bird Flu on Mexico

Effect of Foot and Mouth and BSE

on tourism in UK

Skin CancerHotel Safety

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Technological Change

Developments in transportation :

Super ferries and floating resorts

Super Jumbo (A380) and Boeing

Dreamliner

Continued growth of e-commerce:

Increased use of travel management

systems for business tourismIncrease in independent bookings

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Highly Competitive Environment

Each component is subject to

severe competition e.g. hotels

sector, airline sector, cruisesector, tour operations.

Leads high levels of integration.

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Keeping Up With The

Industry

Collecting items from

newspapers?

Joining industry groups to receive

e-mail alerts.

Watching/recording news and

documentary programmes.