Trends and Patterns
Like most industries, the Travel and Tourism industry is constantly developing. Outside factors, such as currency and the state of a national economy, can have a number of effects on that country's Travel and Tourism sector.
One such example is Greece's debt crisis and economic slump, which is unmatched by any other EU countries. Greece's problems have been well broadcast across the world, so now, more and more people are becoming aware of the problems in that country, including rioting and looting as a result of the enforced "poverty" conditions, and the weakness of the Euro, are making foreign holidaymakers, especially those from the UK and US, reconsider any plans that they might have had to go to Greece on holiday. They are concerned that their money will not go far enough when exchanged, and they could be left out of pocket. Moreover, the Greek bailout has meant that the country's Government has imposed austerity measures, against the wills of the Greek people. This has resulted in rioting and protests against the Government, and such a socially and economically hostile environment does not make for a nice holiday, and this has had a detrimental affect on Greece's Travel and Tourism sector of industry.
Another example is the decline in outbound tourism in the UK. Again, this has been caused by the economic situation in the country. Even package and budget holidays are a stretch too far for many families in the UK, and so many people are choosing to holiday at home rather than shell out for a more expensive holiday abroad. This, in turn, has caused a rise in domestic tourism in the UK. At the height of the economic boom in the 2000s, traditional seaside holiday destinations in the UK, such as Blackpool, Southport and Morecambe, were in decline, due to the increasing affordability of holidays abroad, and a rise in personal wealth and living standards. Now that the UK is in austerity times, more and more families are finding that a holiday abroad, and all the planning and money that goes with it, is an increasing far-off option, so instead, they are choosing to stay in the UK, either for a day out at the seaside or to take a city break. These are known as "Staycations".
One such example is Greece's debt crisis and economic slump, which is unmatched by any other EU countries. Greece's problems have been well broadcast across the world, so now, more and more people are becoming aware of the problems in that country, including rioting and looting as a result of the enforced "poverty" conditions, and the weakness of the Euro, are making foreign holidaymakers, especially those from the UK and US, reconsider any plans that they might have had to go to Greece on holiday. They are concerned that their money will not go far enough when exchanged, and they could be left out of pocket. Moreover, the Greek bailout has meant that the country's Government has imposed austerity measures, against the wills of the Greek people. This has resulted in rioting and protests against the Government, and such a socially and economically hostile environment does not make for a nice holiday, and this has had a detrimental affect on Greece's Travel and Tourism sector of industry.
Another example is the decline in outbound tourism in the UK. Again, this has been caused by the economic situation in the country. Even package and budget holidays are a stretch too far for many families in the UK, and so many people are choosing to holiday at home rather than shell out for a more expensive holiday abroad. This, in turn, has caused a rise in domestic tourism in the UK. At the height of the economic boom in the 2000s, traditional seaside holiday destinations in the UK, such as Blackpool, Southport and Morecambe, were in decline, due to the increasing affordability of holidays abroad, and a rise in personal wealth and living standards. Now that the UK is in austerity times, more and more families are finding that a holiday abroad, and all the planning and money that goes with it, is an increasing far-off option, so instead, they are choosing to stay in the UK, either for a day out at the seaside or to take a city break. These are known as "Staycations".
Natural events and their effects on the Travel and Tourism industry
One example of the effect that a natural disaster can have on the Travel and Tourism industry is the Sendai Earthquake, in Japan, in 2011. Despite the quake only causing minimal damage to buildings in the city centre, it was not until a number of months later that the buildings/offices reopened. The earthquake also caused a nuclear disaster at the Fukushima Nuclear Power Plant, where two nuclear reactors were destroyed after the earthquake hit. 7
As a result of the damage that the quake itself caused, and the secondary effects of the Fukushima Nuclear Power Plant meltdown, there are now a number of areas, in key dockside locations, detrimental to the success of the Travel and Tourism industry, that are off limits due to the radiation from the destroyed plant. It is likely that these areas will be off-limits for more than five years at least, until the radiation is at a sufficient level for humans to access the plant and surrounding areas.
The earthquake then triggered a tsunami, which wiped out even more of the coastal resorts for a long period of time whilst the areas were rebuilt, and caused more damage, on top of that caused by the earthquake.
As a result of the damage that the quake itself caused, and the secondary effects of the Fukushima Nuclear Power Plant meltdown, there are now a number of areas, in key dockside locations, detrimental to the success of the Travel and Tourism industry, that are off limits due to the radiation from the destroyed plant. It is likely that these areas will be off-limits for more than five years at least, until the radiation is at a sufficient level for humans to access the plant and surrounding areas.
The earthquake then triggered a tsunami, which wiped out even more of the coastal resorts for a long period of time whilst the areas were rebuilt, and caused more damage, on top of that caused by the earthquake.
The picture clearly shows that the areas on the coast, an area usually important to Travel and Tourism in Japan, is largely off limits for a long time.
Selected Travel and Tourism Trend Article 1 - "All-inclusive continues to be one of the great travel trends"
TREND: In 2009, ALTOUR noticed a 14 point jump (from 8% to 22%) in travel booked just three to 14 days out. They also reported that Europe was the first choice destination, with 57% of all outbound tourists from the USA going there, followed by Mexico at 48%, South America and the Caribbean are joint third with 43%. The all-inclusive sector, and the self-catering resorts were the only market segment to show improvement since ALTOUR's previous study. It also quoted that:
FACTOR: The founder of ALTOUR, Alexandre Chemla, said that we "are increasingly willing to spend without feeling guilty", which, combined with the stress of work and the recession, is causing more and more people to make amends to afford a holiday, especially an all inclusive, domestic holiday, which traditionally cost less and consequently will not require as much saving on essentials, such as household bills.
- % of agents reporting higher demand for all inclusive resorts is up from just 9% in December 2008 to 14% in 2009.
- 36% of agents report report that all inclusive sales are the same as Decembrer 2008, up from 23% in December, 50% say the demand is lower.
- Escrted tours were hte hardest-hit sector, 73% of agents reported that the demand was lower for this type of tour than it was in 2008.
FACTOR: The founder of ALTOUR, Alexandre Chemla, said that we "are increasingly willing to spend without feeling guilty", which, combined with the stress of work and the recession, is causing more and more people to make amends to afford a holiday, especially an all inclusive, domestic holiday, which traditionally cost less and consequently will not require as much saving on essentials, such as household bills.
Selected Travel and Tourism Trend Article 2 - "ABTA unveils travel trends report"
TREND: ABTA predicted that in 2012, the budget and luxury markets of the Travel and Tourism sector would perform more strongly than they were doing during 2011. The source also says that resorts in Tunisia and around the Read Sea were performing well too. Remote and discreet holiidays were also increasing in popularity during 2011 and would continue to be popular into 2012 as well. Antartica and Ethiopia, both less "well trodden" destinations, were also expected to increase in popularity throughout 2012 as they had done in 2011. An interesting fact in this article was the prediction that British tourists were expected to stick to "more well known" destinations in Europe, such as France, Spain, Germany, Italy and the USA (in particular, Florida).
FACTOR: A factor in this is, according to the article, increased Globalisation. This has caused more less known destinations (such as Ethiopia) to become more attractive to those people that are seeking destinations that are "off the beaten track". As a result of Globalisation, these destinations are far more accessible than they ever have been in the past, so more people are inclined to go there on holiday. A factor in British people choosing to remian with the destinations that tey are used to could be the rising tensions in the developing world, leading them to stay with much more stable and close-by countries in Europe, or possiby, because of the weak Pound compared with the relatively strong/stable Euro in Eurozone countries.
FACTOR: A factor in this is, according to the article, increased Globalisation. This has caused more less known destinations (such as Ethiopia) to become more attractive to those people that are seeking destinations that are "off the beaten track". As a result of Globalisation, these destinations are far more accessible than they ever have been in the past, so more people are inclined to go there on holiday. A factor in British people choosing to remian with the destinations that tey are used to could be the rising tensions in the developing world, leading them to stay with much more stable and close-by countries in Europe, or possiby, because of the weak Pound compared with the relatively strong/stable Euro in Eurozone countries.
Selected Event and its effects on the Travel and Tourism Industry
Events, whether they are planned or unplanned, can drastically affect trends, especially in the Travel and Tourism industry. Often, governments and other organisations plough millions of pounds into making cultural and artistic events a big pull factor so that people come to a specific area, especially in a bad economic climate when large towns and cities need to increase their visitor numbers to sustain their local economies. Such events also tie in with the most recent overall trend of "staycations", which means that people stay in their areas on holiday.
A recent example can be seen in the city of Hull brought a number of events across a one-year period under the "UK City of Culture" banner and applied to the Government for funding for the projects. Hull was successful in its bid, and will now receive millions of pounds from the Government, as well as revenue generated from visitors to Hull in 2017, to fund the arts, crafts and other cultural events that will take place in the area. The decision to give Hull the coveted "UK City of Culture 2017" title was hailed as a turning point by councillors in the city, as it could help transform Hull's largely negative image into something more cultural and well-rounded.
The potential income from the Hull City of Culture is enormous, based on the income for the UK City of Culture in 2009 (Londonderry), which achieved £120 million in income. This boost to Hull's tourism could prove to be a long-standing one, because the attractions will be remembered for a long time, and if they are well-organised, could bring repeat visits to the City. There will also be permanent attractions, which will help make Hull's regeneration and transformation into a city driven by tourism a long-standing feature.
A recent example can be seen in the city of Hull brought a number of events across a one-year period under the "UK City of Culture" banner and applied to the Government for funding for the projects. Hull was successful in its bid, and will now receive millions of pounds from the Government, as well as revenue generated from visitors to Hull in 2017, to fund the arts, crafts and other cultural events that will take place in the area. The decision to give Hull the coveted "UK City of Culture 2017" title was hailed as a turning point by councillors in the city, as it could help transform Hull's largely negative image into something more cultural and well-rounded.
The potential income from the Hull City of Culture is enormous, based on the income for the UK City of Culture in 2009 (Londonderry), which achieved £120 million in income. This boost to Hull's tourism could prove to be a long-standing one, because the attractions will be remembered for a long time, and if they are well-organised, could bring repeat visits to the City. There will also be permanent attractions, which will help make Hull's regeneration and transformation into a city driven by tourism a long-standing feature.
Hull named "UK City of Culture 2017"
Wednesday 20th November 2013.
Hull has been named UK City of Culture for 2017, beating Leicester, Dundee and Swansea Bay to the coveted title.
Hull will now receive investment from the Government to fund special projects for its residents in the Arts, Entertainment, Literacy and City Development.
Hull's representatives based their bid around "a city coming out of the shadows".
Culture Secretary Marie Miller said that the successful bid would "produce a wonderful mix of inward investment, and civic pride" for the city".
Councillor Stephen Brady offered his thanks to the judging panel, whilst saying that "never again will Hull have the reputation that some people have put on it in the past.
"The people here, the wonderful people of Hull, appreciate what's been done, the decision that's been taken and we are on the move".
Recently, Hull was featured in the satirical book, "Britain's Crap Towns" and has been labelled a "decaying City", a pereception that City councillors are keen to change following the news of the successful bid.
James Berresford, VisitEngland's Chief Executive, said that the news was "fantastic".
"I look forward to many celebrations and events to come as a result (of this decision)".
Hull could now follow in the footsteps of Londonderry, the UK City of Culture in 2009, which has seen visitor numbers double over the course of this year and has had a round £120 million of capital investment pumped into the city since the title was won in 2009.
Hull has been named UK City of Culture for 2017, beating Leicester, Dundee and Swansea Bay to the coveted title.
Hull will now receive investment from the Government to fund special projects for its residents in the Arts, Entertainment, Literacy and City Development.
Hull's representatives based their bid around "a city coming out of the shadows".
Culture Secretary Marie Miller said that the successful bid would "produce a wonderful mix of inward investment, and civic pride" for the city".
Councillor Stephen Brady offered his thanks to the judging panel, whilst saying that "never again will Hull have the reputation that some people have put on it in the past.
"The people here, the wonderful people of Hull, appreciate what's been done, the decision that's been taken and we are on the move".
Recently, Hull was featured in the satirical book, "Britain's Crap Towns" and has been labelled a "decaying City", a pereception that City councillors are keen to change following the news of the successful bid.
James Berresford, VisitEngland's Chief Executive, said that the news was "fantastic".
"I look forward to many celebrations and events to come as a result (of this decision)".
Hull could now follow in the footsteps of Londonderry, the UK City of Culture in 2009, which has seen visitor numbers double over the course of this year and has had a round £120 million of capital investment pumped into the city since the title was won in 2009.
How do travel and tourism trends and factors relate to organisations in the industry?
SELECTED COMPANY: Ryanair
SELECTED TREND: Rising fuel prices
TREND: In Ryanair's annual financial report for 2009, one of the trends it says are affecting its cost control and, in turn, profitability, are rising fuel prices, which not only includes the cost of the fuel itself, but its movement to the locations where it is required and the deicer required to make it work. A trend it has seen is the cost of fuel rise year-on-year in 2007, 2008 and 2009, with the cost per US gallon for fuel at 1.826 Euros in 2007, it fell slightly in 2008, to 1.674 Euros (in line with global trends) but in 2009 it rose again to 2.351 Euros. However, its scheduled fuel consumption has also risen year-on-year between 2007-2009, as the data below shows, from the Ryanair's Annual Report (© Ryanair):
SELECTED TREND: Rising fuel prices
TREND: In Ryanair's annual financial report for 2009, one of the trends it says are affecting its cost control and, in turn, profitability, are rising fuel prices, which not only includes the cost of the fuel itself, but its movement to the locations where it is required and the deicer required to make it work. A trend it has seen is the cost of fuel rise year-on-year in 2007, 2008 and 2009, with the cost per US gallon for fuel at 1.826 Euros in 2007, it fell slightly in 2008, to 1.674 Euros (in line with global trends) but in 2009 it rose again to 2.351 Euros. However, its scheduled fuel consumption has also risen year-on-year between 2007-2009, as the data below shows, from the Ryanair's Annual Report (© Ryanair):
FACTORS: A factor influencing Ryanair's rising consumption may be the wider range of destinations that it decided to offer in 2007-2009 (at the height of the global recession), which consequently caused more aeroplane mileage, which then caused higher fuel consumption. The price rises can be attributed to the global recession that was taking place during this period, which caused fuel prices across the world to rise, and Ryanair's fuel costs reflect this change. To combat this rise, Ryanair decided to use fuel hedging, which is agreeing a fiex price for their fuel consumption with their suppliers, and if the cost of producing the fuel rises, Ryanair pays that shortfall, if the price drops, then the supplier pays Ryanair the excess. Ryanair may have chosen to adpot fuel hedging because it did not want to pass the increased costs onto its customers, so it would remain the cheapest in the marketplace and maintain its standing as a truly "budget" airline, with the ultimate aim of raising profitability during the global recession, and having a competitive edge.