Development of the Travel and Tourism Industry
The industry has developed phenomenally, especially since the 1950s. It has transformed from a small, cottage-style industry to a major player in the economies of developed countries, with billions being invested in making areas more appealing and promoting them for tourists, both domestically and internationally.
These developments can best be summarised in a "timeline" format, as seen below:
These developments can best be summarised in a "timeline" format, as seen below:
Key developments in the T&T Industry
Legislation
Legislation is very important in the travel and tourism sector of industry. They are laid down by UK Government and the EU. Most legislation to
regulate the T&T industry has been developed since the 1960s, when holidays became more affordable, so consumers needed protection.
Holidays with Pay Act 1938:
This encouraged voluntary arrangements by employers on paid holidays and it created the idea of a paid holiday for all workers. Although this ambition was not fulfilled until several years after WWI, by 1939 some 11million of the UK’s 19million workforce were entitled to paid holidays, a key factor in generating mass travel and tourism.
Countryside and Rights of Way Act 2000:
This act is referred to as CROW. It made it lawful for people to access land that was previously off limits, as declared by the landowner. The
public will have access to 1million hectares (4000 square miles, 8% of the country), but this does not include camping, driving, horse riding or cycling.
Development of Tourism Act 1968:
This act established the British Tourism Authority, which was set up to encourage incoming tourism from overseas visitors, as well as the four national tourism boards of England, Scotland, Wales and Northern Ireland, which oversee tourism in their own areas. In 2004, the BTA was merged with the English Tourism Council to form “VisitBritain”. Each National Tourism Board (NTB) works within its own country to improve amenities for travel and tourism. They offer information services, provide grants for tourism information services and undertake research into T&T. They also
form Local Tourist Boards (eg Mannchester and London).
EU Directive on Package Travel 1995:
This ensures that customers of package holiday providers have financial protection. If a company fails, customers who have not yet travelled can get their money back. Those on holiday at the time do not have to pay any extra costs. This directive places a number of duties on the organisers of package holidays. This includes providing clear contract terms, emergency telephone numbers, and providing compensation if the agreed services are not provided, accurate promotional materials, and providing proof that the organisation has protection against insolvency.
Disability Discrimination Act 1995:
This came about after the public campaigned for people to remove the barriers to people who have a disability. T&T destinations and facilities
must be accessible to those with restricted mobility or wheelchairs. Public transport operators have had to adapt their vehicles to meet new legislation governing how accessible their vehicles are. This is seen as a good move commercially, because there are 10million people with a disability in the UK with a spending power of £48million. Travel agencies must make adaptations to their shops for disabled people, if they do not, they may be sued and have to pay out compensation.
Health and Safety at Work Act 1974:
This applies to all T&T workers. It means that all employers have a general duty to provide for the health, safety and welfare of those that they
employ. Employers are also required to consult employees about H&S arrangements, and prepare a written H&S policy statement. They need to
ensure that employees are not put at risk, adequate information about any work-related hazards and the precautions needed to contain them must be made available, and all employees have to take reasonable care to ensure that their own H&S at work and that of other people who might be affected by their actions.
Other Legislation: Examples of which are:
a. Control of Substances Hazardous to Health (1999)
b. Health and Safety (First Aid) (1981)
c. Data protection Act (1998)
d. Food safety Act (1990)
e. Adventure Activities Licencing Regulations (1996).
f. Trade Descriptions Act (1968)
g. Consumer Protection Act (1987)
h. Sale of Goods Act (1979)
i. Supply of Goods Act (1994)
This is not a complete list.
Legislation is very important in the travel and tourism sector of industry. They are laid down by UK Government and the EU. Most legislation to
regulate the T&T industry has been developed since the 1960s, when holidays became more affordable, so consumers needed protection.
Holidays with Pay Act 1938:
This encouraged voluntary arrangements by employers on paid holidays and it created the idea of a paid holiday for all workers. Although this ambition was not fulfilled until several years after WWI, by 1939 some 11million of the UK’s 19million workforce were entitled to paid holidays, a key factor in generating mass travel and tourism.
Countryside and Rights of Way Act 2000:
This act is referred to as CROW. It made it lawful for people to access land that was previously off limits, as declared by the landowner. The
public will have access to 1million hectares (4000 square miles, 8% of the country), but this does not include camping, driving, horse riding or cycling.
Development of Tourism Act 1968:
This act established the British Tourism Authority, which was set up to encourage incoming tourism from overseas visitors, as well as the four national tourism boards of England, Scotland, Wales and Northern Ireland, which oversee tourism in their own areas. In 2004, the BTA was merged with the English Tourism Council to form “VisitBritain”. Each National Tourism Board (NTB) works within its own country to improve amenities for travel and tourism. They offer information services, provide grants for tourism information services and undertake research into T&T. They also
form Local Tourist Boards (eg Mannchester and London).
EU Directive on Package Travel 1995:
This ensures that customers of package holiday providers have financial protection. If a company fails, customers who have not yet travelled can get their money back. Those on holiday at the time do not have to pay any extra costs. This directive places a number of duties on the organisers of package holidays. This includes providing clear contract terms, emergency telephone numbers, and providing compensation if the agreed services are not provided, accurate promotional materials, and providing proof that the organisation has protection against insolvency.
Disability Discrimination Act 1995:
This came about after the public campaigned for people to remove the barriers to people who have a disability. T&T destinations and facilities
must be accessible to those with restricted mobility or wheelchairs. Public transport operators have had to adapt their vehicles to meet new legislation governing how accessible their vehicles are. This is seen as a good move commercially, because there are 10million people with a disability in the UK with a spending power of £48million. Travel agencies must make adaptations to their shops for disabled people, if they do not, they may be sued and have to pay out compensation.
Health and Safety at Work Act 1974:
This applies to all T&T workers. It means that all employers have a general duty to provide for the health, safety and welfare of those that they
employ. Employers are also required to consult employees about H&S arrangements, and prepare a written H&S policy statement. They need to
ensure that employees are not put at risk, adequate information about any work-related hazards and the precautions needed to contain them must be made available, and all employees have to take reasonable care to ensure that their own H&S at work and that of other people who might be affected by their actions.
Other Legislation: Examples of which are:
a. Control of Substances Hazardous to Health (1999)
b. Health and Safety (First Aid) (1981)
c. Data protection Act (1998)
d. Food safety Act (1990)
e. Adventure Activities Licencing Regulations (1996).
f. Trade Descriptions Act (1968)
g. Consumer Protection Act (1987)
h. Sale of Goods Act (1979)
i. Supply of Goods Act (1994)
This is not a complete list.
Technological Development
Developments in new technology, particularly the internet, are giving customers a host of new ways to buy their holidays and travel products direct, rather than using an agent. Travel agencies are responding by reducing the number of high street premises and developing their own online operations, giving customers the opportunity to book online rather than visiting a travel agency. All the major travel agency chains – Thomas Cook, Going Places, Thomson and First Choice – now operate as online travel agents alongside their more traditional high street branches.
Also, the amount of Call centres in the Travel Industry has increased with companies such as ICELOLLY taking this approach. In travel and tourism, call centres are used by tour operators, travel agency companies, tourist boards, airlines, car hire companies, hotel groups, etc. Call centres are more popular now as it’s quicker to contact the company due to better phone lines and people like being able to discuss the in’s and out of their holiday.
Digital and cable TV is another example of a technological improvement, companies such as Sky Travel and Thomas Cook TV offer programmes and features selling holidays to all parts of the world. As people want discount and the best prices they usually book online or watch these programmes to find the best deals and to save some money. With all these advances in Technology, Travel Agent stores are becoming less popular as people like being more in control of their holidays.
The development and types of mobile phones has had a great impact on the Tourism industry. With smart phones becoming more and more popular people can now download apps such as maps and destination guides so that when they are on holiday it is easier for them find things to do, and find their way around the destination. Smart phones also make access to internet a lot easier and nowadays you could even book a holiday on your phone quickly and easily!
In the last Century, travellers abroad either had to change all the money you were going to take before you went away and try not to spend it all, or they would take Travellers Cheques with them. However, because of the technological development, now travellers can just take their credit or debit card and draw your money out of Cash Machine, this is better for the tourists as they don’t have to take as much with them and they don’t have to worry about spending all the money they take and not being able to get any more to spend.
Developments in new technology, particularly the internet, are giving customers a host of new ways to buy their holidays and travel products direct, rather than using an agent. Travel agencies are responding by reducing the number of high street premises and developing their own online operations, giving customers the opportunity to book online rather than visiting a travel agency. All the major travel agency chains – Thomas Cook, Going Places, Thomson and First Choice – now operate as online travel agents alongside their more traditional high street branches.
Also, the amount of Call centres in the Travel Industry has increased with companies such as ICELOLLY taking this approach. In travel and tourism, call centres are used by tour operators, travel agency companies, tourist boards, airlines, car hire companies, hotel groups, etc. Call centres are more popular now as it’s quicker to contact the company due to better phone lines and people like being able to discuss the in’s and out of their holiday.
Digital and cable TV is another example of a technological improvement, companies such as Sky Travel and Thomas Cook TV offer programmes and features selling holidays to all parts of the world. As people want discount and the best prices they usually book online or watch these programmes to find the best deals and to save some money. With all these advances in Technology, Travel Agent stores are becoming less popular as people like being more in control of their holidays.
The development and types of mobile phones has had a great impact on the Tourism industry. With smart phones becoming more and more popular people can now download apps such as maps and destination guides so that when they are on holiday it is easier for them find things to do, and find their way around the destination. Smart phones also make access to internet a lot easier and nowadays you could even book a holiday on your phone quickly and easily!
In the last Century, travellers abroad either had to change all the money you were going to take before you went away and try not to spend it all, or they would take Travellers Cheques with them. However, because of the technological development, now travellers can just take their credit or debit card and draw your money out of Cash Machine, this is better for the tourists as they don’t have to take as much with them and they don’t have to worry about spending all the money they take and not being able to get any more to spend.
Development of new destinations
The rapid growth of package holidays since the 1960s led many entrepreneurs to build holiday accommodation quickly, and often with few planning restrictions, in a number of Mediterranean resorts to ‘cash in’ on the influx of tourists. Today, planning constructions are tight and governments in tourist destinations are aware that visitors would prefer smaller accommodation that blends into the countryside.
The growth in long distance travel has increased and has opened up many new destinations in the world such as, Florida, the Caribbean, Brazil, India, the Far East, Dubai, Australia and New Zealand. Package holidays and cheap flights to long-haul destinations are helping to spread the economic benefits of tourism right across the world.
As there has been a rapid growth in low-cost airlines across Europe it has resulted in rapid destination growth in the countries that they serve. For example, cheap flights to Prague has resulted in this capital city being the most popular short break destinations in Europe. It has also happened to other parts of Europe, such as France, all because of the rapid growth in low-cost airlines, places in Europe are becoming more popular for a short break holiday, e.g. the
weekend.
The rapid growth of package holidays since the 1960s led many entrepreneurs to build holiday accommodation quickly, and often with few planning restrictions, in a number of Mediterranean resorts to ‘cash in’ on the influx of tourists. Today, planning constructions are tight and governments in tourist destinations are aware that visitors would prefer smaller accommodation that blends into the countryside.
The growth in long distance travel has increased and has opened up many new destinations in the world such as, Florida, the Caribbean, Brazil, India, the Far East, Dubai, Australia and New Zealand. Package holidays and cheap flights to long-haul destinations are helping to spread the economic benefits of tourism right across the world.
As there has been a rapid growth in low-cost airlines across Europe it has resulted in rapid destination growth in the countries that they serve. For example, cheap flights to Prague has resulted in this capital city being the most popular short break destinations in Europe. It has also happened to other parts of Europe, such as France, all because of the rapid growth in low-cost airlines, places in Europe are becoming more popular for a short break holiday, e.g. the
weekend.
New Products and Services
Travel and tourism products and services are targeted at customers in the industry and the public which include the Industry and the consumers. Some of the new products and services that have been introduced into the industry in the last 50 years are the types of organisations and holiday packages.
Holiday packages
Package holidays were introduced into the travel and tourism industry in the 1950s. The packaging consists of existing products put together under a theme or with a special angle to maximise recognised assets such as charter flights and a week or fortnight’s accommodation. When the package holidays were first brought out, they were reasonably cheap and affordable and have had a positive impact in the economy as it has become an increasingly important tool for destination marketing.
Cruising
The cruise industry is currently going through a period of rapid growth and change. In the past, cruising was seen as the preserve of the elderly, rich and famous. Today the number of cruise passengers is growing steadily and the industry has introduced products aimed at a wide range of customers, including families, young people and groups. Prices for many cruise products have fallen as the major tour operators have entered the market. There is a range of cruise prices to suit people’s needs from 5*+ for people who are looking for more luxurious cruises for example The Luxury Cruise company to 3* and below for people who are on a budget holiday for example Easy Cruise. You can also get a middle ranged cruise for example The Royal Caribbean and a family
orientated cruise for example AIDA.
Budget Products
There are many budget products and services available such as hotels including accommodation and budget airlines. Budget hotels and
accommodations are good for people who are looking for something for a specific price and something that is a bit cheaper but reaches their standards. It is
also for people who do not want to spend much money. On the other hand a budget airline is a low-cost carrier that generally has lower fares and fewer comforts. In the travel industry, budget products have become more popular because you can get something cheap with the quality of something expensive. For example if you was to go to a 5* hotel such as the Marriott Hotel, it would be expensive and off budget however if you was to go to a 3* hotel such as the Premier Inn, you would get the same the same accommodation and facilities for a smaller cost. Therefore you would get just as good sleep in the premier Inn as you would at The Marriot hotel. In 2008 there was a recession as people were lending money from the bank and didn’t bother paying it back. As a result of this, businesses were not able to take the money out they needed. This meant that they couldn’t pay the employees so they had to cut down on their working hours. By cutting down, they would get paid less and won’t have the money to go on an expensive holiday. Instead, they went on a budget holiday which is both enjoyable and affordable.
Travel and tourism products and services are targeted at customers in the industry and the public which include the Industry and the consumers. Some of the new products and services that have been introduced into the industry in the last 50 years are the types of organisations and holiday packages.
Holiday packages
Package holidays were introduced into the travel and tourism industry in the 1950s. The packaging consists of existing products put together under a theme or with a special angle to maximise recognised assets such as charter flights and a week or fortnight’s accommodation. When the package holidays were first brought out, they were reasonably cheap and affordable and have had a positive impact in the economy as it has become an increasingly important tool for destination marketing.
Cruising
The cruise industry is currently going through a period of rapid growth and change. In the past, cruising was seen as the preserve of the elderly, rich and famous. Today the number of cruise passengers is growing steadily and the industry has introduced products aimed at a wide range of customers, including families, young people and groups. Prices for many cruise products have fallen as the major tour operators have entered the market. There is a range of cruise prices to suit people’s needs from 5*+ for people who are looking for more luxurious cruises for example The Luxury Cruise company to 3* and below for people who are on a budget holiday for example Easy Cruise. You can also get a middle ranged cruise for example The Royal Caribbean and a family
orientated cruise for example AIDA.
Budget Products
There are many budget products and services available such as hotels including accommodation and budget airlines. Budget hotels and
accommodations are good for people who are looking for something for a specific price and something that is a bit cheaper but reaches their standards. It is
also for people who do not want to spend much money. On the other hand a budget airline is a low-cost carrier that generally has lower fares and fewer comforts. In the travel industry, budget products have become more popular because you can get something cheap with the quality of something expensive. For example if you was to go to a 5* hotel such as the Marriott Hotel, it would be expensive and off budget however if you was to go to a 3* hotel such as the Premier Inn, you would get the same the same accommodation and facilities for a smaller cost. Therefore you would get just as good sleep in the premier Inn as you would at The Marriot hotel. In 2008 there was a recession as people were lending money from the bank and didn’t bother paying it back. As a result of this, businesses were not able to take the money out they needed. This meant that they couldn’t pay the employees so they had to cut down on their working hours. By cutting down, they would get paid less and won’t have the money to go on an expensive holiday. Instead, they went on a budget holiday which is both enjoyable and affordable.
Working Patterns
Working patterns since the 1960’s have changed due to people on how they use their leisure time. People have the well-known 2 week holiday however some people do have shorter time off. Working patterns include bank holidays; the most popular are days off including Christmas, Easter and half terms.
Working weeks
People argue that there should be shorter working weeks as people get healthier and they won’t be as tired or drained. They could work longer hours so it makes up for the 3 days they have had off. However, people such as their bosses will disagree as this will mess up the working timetable. This could result in them having to hire more staff which could cost more money.
Holiday pay
People who have jobs such as teachers for example get paid whilst they have half term breaks off. Some people may argue that this is not fair and they should
only get paid when they work. However some people get a higher pay if they work on a holiday term. Only part time and full time workers can only get pay when it is a break.
Working time regulations
Working regulations have changed and set on limits on an average working week, limits on hours of night work, special regulations for young workers and so on. Normal working hours are for 48 hours per week. For younger workers the hours are lowered to 40 hours per week and also get 2 days off work each week. General working time regulations provide rights to have one day off per week, a 20 minute rest break if they work more than six hours.
Working patterns since the 1960’s have changed due to people on how they use their leisure time. People have the well-known 2 week holiday however some people do have shorter time off. Working patterns include bank holidays; the most popular are days off including Christmas, Easter and half terms.
Working weeks
People argue that there should be shorter working weeks as people get healthier and they won’t be as tired or drained. They could work longer hours so it makes up for the 3 days they have had off. However, people such as their bosses will disagree as this will mess up the working timetable. This could result in them having to hire more staff which could cost more money.
Holiday pay
People who have jobs such as teachers for example get paid whilst they have half term breaks off. Some people may argue that this is not fair and they should
only get paid when they work. However some people get a higher pay if they work on a holiday term. Only part time and full time workers can only get pay when it is a break.
Working time regulations
Working regulations have changed and set on limits on an average working week, limits on hours of night work, special regulations for young workers and so on. Normal working hours are for 48 hours per week. For younger workers the hours are lowered to 40 hours per week and also get 2 days off work each week. General working time regulations provide rights to have one day off per week, a 20 minute rest break if they work more than six hours.
Lifestyle changes
The change in our lifestyles and the way we live have had a large impact on the travel industry and the frequency and type of travelling we do. Trends and other factors have affected our attitude to travelling within and outside the country and the industry has grown in popularity.
The increase in car ownership worldwide has encouraged people to tour domestically for either short stays or full holidays. People had more freedom with their own car and used this freedom wisely in their spare time to travel around their own country for all different reasons. “The number of private cars on the roads of Britain rose steeply from 2.3 million in 1950 to 11 million in 1970. In 2002 the figure exceeded 22 million vehicles and by 2005 had risen to 33 million. Current (2009) figures show a slight fall to 31 million.” (BTEC National Diploma Level 3 Travel and Tourism – Book 1). This huge increase shows the amount of people able to travel around to different places freely and easily in the comfort of private travel where they do not feel uncomfortable in the public.
However this increase in private transport has a decrease in public transport. This means that domestic holidays which involved transport such as trains/coaches have been affected negatively. Although they are not completely unused they are used a lot less which has meant services have been
cut and train lines and coach companies have had to change their business style to promote and keep their services.
As we have better health care now than ever people are living a lot longer and are staying healthier in their old age. This means that there is a longer period from when they retire for them to engage in different activities and they are finding more ways to spend their time with their money. This usually involves spending time travelling for various reasons including visiting relatives and enjoying different places. This means that there is an increase in domestic and outbound tourism for them which is also known as ‘grey tourism’. Research from visit Britain has shown that over 55s have a more positive impression of Britain than younger people which has been proven by the large number of inbound tourists being over 55.
Younger people are now living at home for longer periods of time, moving out when they are older in their late 20s/early 30s rather than in their late teens which used to be the trend. This has an effect on the travel and tourism economy as these young men and women have much more money for them to travel further afield for longer periods of time and more frequently. However the "empty nest" market which targets couples whose children have all moved out is decreasing as their children aren’t moving out as young. This means that this market is smaller so the industry needs to change their promotion and how they
target customers.
Everyday appliances in the household such as washing machines, dish-washers etc. have increased free time in women’s lives in the home. Many years ago their days were taken up by hang washing clothes, ironing them all separately, hand cleaning the dishes and other chores which used to take a very long time. However with newer technology these chores are done a lot faster and therefore more time is free to travel either domestically or outbound.
As it becomes more and more common for women to have jobs, families are making a lot more money. This increase in their money will influence them to spend it on themselves which usually includes holidays for them to relax after working so hard. This has a positive effect on outbound tourism as with all this extra money families travel further afield and to more adventurous places.
The change in our lifestyles and the way we live have had a large impact on the travel industry and the frequency and type of travelling we do. Trends and other factors have affected our attitude to travelling within and outside the country and the industry has grown in popularity.
The increase in car ownership worldwide has encouraged people to tour domestically for either short stays or full holidays. People had more freedom with their own car and used this freedom wisely in their spare time to travel around their own country for all different reasons. “The number of private cars on the roads of Britain rose steeply from 2.3 million in 1950 to 11 million in 1970. In 2002 the figure exceeded 22 million vehicles and by 2005 had risen to 33 million. Current (2009) figures show a slight fall to 31 million.” (BTEC National Diploma Level 3 Travel and Tourism – Book 1). This huge increase shows the amount of people able to travel around to different places freely and easily in the comfort of private travel where they do not feel uncomfortable in the public.
However this increase in private transport has a decrease in public transport. This means that domestic holidays which involved transport such as trains/coaches have been affected negatively. Although they are not completely unused they are used a lot less which has meant services have been
cut and train lines and coach companies have had to change their business style to promote and keep their services.
As we have better health care now than ever people are living a lot longer and are staying healthier in their old age. This means that there is a longer period from when they retire for them to engage in different activities and they are finding more ways to spend their time with their money. This usually involves spending time travelling for various reasons including visiting relatives and enjoying different places. This means that there is an increase in domestic and outbound tourism for them which is also known as ‘grey tourism’. Research from visit Britain has shown that over 55s have a more positive impression of Britain than younger people which has been proven by the large number of inbound tourists being over 55.
Younger people are now living at home for longer periods of time, moving out when they are older in their late 20s/early 30s rather than in their late teens which used to be the trend. This has an effect on the travel and tourism economy as these young men and women have much more money for them to travel further afield for longer periods of time and more frequently. However the "empty nest" market which targets couples whose children have all moved out is decreasing as their children aren’t moving out as young. This means that this market is smaller so the industry needs to change their promotion and how they
target customers.
Everyday appliances in the household such as washing machines, dish-washers etc. have increased free time in women’s lives in the home. Many years ago their days were taken up by hang washing clothes, ironing them all separately, hand cleaning the dishes and other chores which used to take a very long time. However with newer technology these chores are done a lot faster and therefore more time is free to travel either domestically or outbound.
As it becomes more and more common for women to have jobs, families are making a lot more money. This increase in their money will influence them to spend it on themselves which usually includes holidays for them to relax after working so hard. This has a positive effect on outbound tourism as with all this extra money families travel further afield and to more adventurous places.