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FDN005:Foundation of business and tourism Assignment Sample


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Despite the big adverse effects of depression, the Gulf War and other recessions, tourism has grown more than leisure. Business ties between the developing economies and developed countries have also benefited from growth in infrastructure, technological development and pulse of new market innovation (Huanget al., 2016). Social media and technical prospects have led for companies to build new countries an increase in convergence, mergers, corporate alliances and cross-border networking. Industry of tourism connects with various areas of activities, including international meetings and exchange negotiations, meetings on science and technology sharing and advance coordination of separate research and development programmes, cultural and educational meetings etc. (Xiang, 2018). The article focuses on travel and company establishment in the United Kingdom. The report includes two parts. The first segment examines the effect on diverse businesses and associations of social media and technology over the past 10-15 years. The second segment addresses both the positive and the negative consequences of globalisation in the UK.

Section A

Answer to Question One

Due to technological technologies and increased consumer behaviour, many facets of the industry have been changed in the last two decades. The accommodation industry has changed across many key facets over the last decades and a variety of those developments have led to enhancing hotel and travel facilities, attracting new tourists and providing opportunities. These improvements have had a negative effect, however, and over time they became more difficult to implement and fade. Increased competition and pressure on travel costs are contributed by demand web marketing. The net impact on modified operating profit is detrimental as spending continues to rise more rapidly (Holloway and Humphreys, 2019). In addition to this profit margin, the rise of operational costs, such as personnel and growing consumer care was also decreasing as a result of higher charges by online booking companies. The managers of the business spoke about the following significant changes in the sector in the last two decades:

  • Marketing and Distribution

In recent decades, advertisement and delivery rates have witnessed the most significant changes in that field. The prices of delivering tourists to hotels have shifted dramatically in the business model, which primarily relies on brands and visitor offices paid 10% to the online traveller. Moreover, traditional commercials such as posters, magazines, television or radio have now been replaced by new media as social-network advertising, Twitter, etc. (Loperena, 2017).

When intermediaries from third parties first introduced about 20 years ago, hoteliers welcomed them as innovative, interactive networks to market hotels and guests. This association has grown. The relations around hoteliers and TPIs provided particular problems for payment rates, fair tax refunds, and market share and dependence. Supply rates reflect a relationship boost. When TPIs were first introduced, the payments were smaller than they are today. The landscape then seemed to be different from now. The online travel agency is initially seen by some as an incremental and not a stealing enterprise. Nevertheless, because of their advertising dollars, internet companies have had a significant impact, which can change the behaviour of consumers. Trupp(2016) claimed that if people book travel through other parties and take part in expanding the market share of online firms, travellers will get the highest benefit and the best price.

  • Consumer Behaviour and Satisfaction

The travellers today, because of electronic transport firms and technologies generally, are more wealthy and educated than they were 10 years ago. The bulk of areas of the business have been revolutionary. Ten years ago, the only people who truly realised differences were daily business travellers. Provided the usability of online feedback and reduced cross-border scope, the consumer is ready to explore and evaluate these options very carefully.

But buyers are often misguided, partially because they may purchase a vast amount of keywords from internet companies rather than hotels with bigger advertisement budgets. For e.g., if a buyer is concerned with the url, he does not even know that the customer has booked with a third party by choosing the link to book from there. A third party may then enter the keyword which a third party has bought through "Holiday Inn Dallas." So the consumer action that consumers see when having a reservation option has boosted the cost of revenue now relative to 10 years earlier. Due to the decline in industry, consumer awareness has improved and has led to market niches, such as restaurants, long-term brands and tastes on all categories of consumers which have seen increasing creative deals (Moyano et al., 2019). This items can also make a difference, and at discounted costs, the consumer needs more amenities and appliances. The availability of services, including high-speed Wi-Fi, free hot meals, upgraded amenities and indoor infrastructure and gyms, has added to customer standards.

  • Instagram and Influencers Outline Travel Decisions

The power of Instagram influencers has had a major effect on travel. Some also made the journey look like a romantic photo shoot without emphasis on destination and customs. In reality, the influencers and the Instagram network as a whole should be thanked, because over 40 percent of millennials (18 yrs. to 33 yrs. age) have an impact of "Instagrammability" when deciding where to go (De Boer and Van Dijk, 2016).

  • Online Travel Services

Because of online travel services, anybody can book a journey with minimal roadblocks almost everywhere in the world. The online supply of travel booking has completely changed the age of tourism. It democratised travelling and opened up locations that were once hard to reach and meet once hard to explore. The industry also aims to make opportunities available, as well as appropriate and open (Rodriguez, 2019).

  • Airlines have introduced budget-friendly offers

Although the budget of the airlines has been around for over a decade, their availability in recent decades has increased dramatically and since 2000, Asia has seen considerable growth in budgetary requirement for airlines. Several factors, such as cheap oil and creating more fuel-efficient aircraft, have powered the market's efficiency (Xue, Kerstetter and Hunt, 2017).

  • Over tourismisan emerging Problem

The development of tourism in Venice, London, Prague and Barcelona has changed the wonders of the region. Responsible Travel published a report (with a complete map) that reveals that big tourist numbers include unbelievable cities, towns, villages, nature reserves and much more in 98 locations in 63 countries. Several areas have started introducing regulations and other initiatives to reduce tourists' impact such as reducing the amount of rooms available for rent via Airbnb (Bec et al., 2016).

Section B

Answer to Question Two

The travel and globalisation industry are truly strong and the main driving force behind world change. Globalisation, through the creation of restaurant and hotel industries, has contributed to the growth of the tourism industry. Yet globalisation has also brought in social changes (Becker, 2016).

Impact of Globalization on Tourism

Years before Eastern Asia had become a dead economic force. This situation has since been updated by globalisation. In recent years, economies such as China, Japan and India have undergone enormous changes. These countries are employed tremendously, particularly in the technology field. In reality, Asia and parts of Africa are now being supplied with cheap labour in the new business sectors (Tolkach and Pratt, 2019). This has contributed to an unprecedented influx of cash from multiple continents.

The increase in ICTs in East Asia has streamlined and made it cheaper to do business in the region. There have also been contests between several Western and domestic nations including China and Malaysia in having close trading allies with the United Kingdom (Duran-Sanchez et al., 2018). They are considering ways of doing business with different PEOs, without becoming aggressive. NH Mutual Partners is a simple example of PEO. It has helped to further jobs and to boost revenue in the UK, even though there is appreciation for a growing mid-size population. Regular hospitals, transportation systems and other financial drivers have since been strengthened. Data indicates that the population trends of globalisation have a significant effect on tourism as an industry. The more employment and the more actual revenue a country makes, the more tourism it creates. Today, more UK visitors see numerous tourism attractions worldwide than ever before. As they now have the means for travel, they now have many leaves for most people of Europe (Sie et al., 2016).

Impact of globalisation on UK Tourism Industry

The positive and negative implications of globalisation is mostly focused on the tourism sector discussed in the following:

Positive impact:

  • Exposure to different cultures: Globalization has had a significant impact on travel prices in political and economic terms. More rivalry has led to more aggressive pricing and the low-cost concept of airlines. The low-cost model of the airline promises no added cost allowances, which allows more consumers worldwide at an economical price. This made it feasible for travellers to encounter various cultures and made it incredibly necessary for hospitality practitioners to understand and treat different customers (Ali et al., 2017).
  • Advancement of technology: The UK hotel industry would work unfailingly to keep its infrastructures up to date if it wishes to attract most tourists. It is important that their products and services are increasingly evolving for hotels, tourist destinations and restaurants, with a leading market (Pindzo and Radulovic, 2017). Technology development has also changed anything that is like a hotel room key that can be turned into details used on a visitor's mobile phone.
  • Developing countries lose out: Globalization has even intensified and made travel more competitive. Thus, tourists can now pick from several different locations and exit UK to accommodate a vast number of guests without services or technology. In order to maximise the number of visitors it attracts, a country must get the funds to contend with a stunning, tourist-friendly area (Pindzo and Radulovic, 2017).

Negative impact:

  • Unemployment: In certain countries, towns and cities, there are extremely low peaks and tourism activities for different reasons. According to the existence, price or activities, this should be achieved at a certain time of year. Local staff in the restaurant industry will have employment during these busy seasons, but they will disappear once the jobs are done. For most of the year, residents stay incomeless, contributing to unemployment and insecurity in areas connected to tourism (Nuryyev et al., 2020). UK has experienced unemployment and inequality in two decades, declining health conditions and degradation of the natural environment, for example, in the developed world.
  • Spread of fast foods chain: During the busy seasons, local hospitality staff are going to have a lot of jobs, but they will disappear after the jobs are done. Most of the year people are left unredeemed, causing jobs and hardship in areas connected to tourism. UK, a developed nation in two decades, has experienced unemployment and hunger, declining health conditions and degrading the natural environment (Loperena, 2017).
  • The fast food chain is rapidly expanding. But in the UK, there is some of the fastest growth, with improvements in eating. Starbucks are the best, fastest rising and quickest units possible. Most people prefer fast foods because they are affordable and easy. The served home food will be supplemented by fast foods for family and friends. Common foods and additives contain tonnes of fat, sugar and salt that is a concern for beer, burgers and other heavily produced standardised goods worldwide with diabetes, obesity and other chronic problems of health (Pindzo and Radulovic, 2017).
  • Change in culture: Colonialism, to the detriment of the local society, has exacerbated the expansion of western influence and influence in developing countries such the UK. The majority of citizens in developed countries are still in control of what they do in developing countries. And their history is rejected and Western ideals are accepted. Things include clothes and dining choices. Both this may impact management in one way or another and could lead to misunderstandings, because of language difficulties (Loperena, 2017).
  • Trade: Average tariff levels remain high in many developing countries, including those which have recently implemented trade reforms (Pindzo and Radulovic, 2017). The UK, for example. International policy is a major aspect of globalisation, at least in some of the low-income developing countries.


The rivalries between sectors and destinations and a growing amount of customer needs could intensify in the context of globalisation. Therefore, in tourism, creative innovations and strategies for reductions in prices, price increases and consumer engagement continue to be sought. Due to this need for continuous creativity, investment in growth is becoming increasingly important. The IT should play a major role. Additional technological developments and patterns, such as cellular telephones, mobile web-based apps, micro-sale sectioning of hotels, customised travel information, interactive social network offices, tablets and smart TV, which build new partnerships, need to be taken into account in future.


Ali, T.A.T., Saeed, R.A. and Fageeri, S.O., 2017, January. Web-based GIS business hotels tourism sites in Khartoum, Sudan. In 2017 International Conference on Communication, Control, Computing and Electronics Engineering (ICCCCEE) (pp. 1-5). IEEE.

Bec, A., McLennan, C.L. and Moyle, B.D., 2016. Community resilience to long-term tourism decline and rejuvenation: A literature review and conceptual model. Current Issues in Tourism19(5), pp.431-457.

Becker, E., 2016. Overbooked: The exploding business of travel and tourism. Simon and Schuster.

De Boer, D. and Van Dijk, M.P., 2016. Success factors for community business wildlife tourism partnerships in Tanzania. The European Journal of Development Research28(4), pp.555-570.

Duran-Sanchez, A., Álvarez-García, J., Río-Rama, D., De la Cruz, M. and Oliveira, C., 2018. Religious tourism and pilgrimage: Bibliometric overview. Religions9(9), p.249.

Holloway, J.C. and Humphreys, C., 2019. The business of tourism. SAGE Publications Limited.

Huang, Y.C., Backman, K.F., Backman, S.J. and Chang, L.L., 2016. Exploring the implications of virtual reality technology in tourism marketing: An integrated research framework. International Journal of Tourism Research18(2), pp.116-128.

Loperena, C.A., 2017. Honduras is open for business: extractivist tourism as sustainable development in the wake of disaster?. Journal of Sustainable Tourism25(5), pp.618-633.

Moyano, A., Rivas, A. and Coronado, J.M., 2019. Business and tourism high-speed rail same-day trips: factors influencing the efficiency of high-speed rail links for Spanish cities. European Planning Studies27(3), pp.533-554.

Nuryyev, G., Wang, Y.P., Achyldurdyyeva, J., Jaw, B.S., Yeh, Y.S., Lin, H.T. and Wu, L.F., 2020. Blockchain Technology Adoption Behavior and Sustainability of the Business in Tourism and Hospitality SMEs: An Empirical Study. Sustainability12(3), p.1256.

Pindzo, R. and Radulovic, D., 2017. The impact of the globalization on tourism industry. ORGANISATIONAL BEHAVIOR AND TYPES OF LEADERSHIP STYLES AND STRATEGIES IN TERMS OF GLOBALIZATION, pp.66-79.Compass Publishing.

Rodriguez, O., 2019. Artificial intelligence in the business of tourism: a market strategy in the UK travel distribution (Doctoral dissertation, University of East London).

Sie, L., Patterson, I. and Pegg, S., 2016. Towards an understanding of older adult educational tourism through the development of a three-phase integrated framework. Current Issues in Tourism19(2), pp.100-136.

Tolkach, D. and Pratt, S., 2019. Globalisation and cultural change in Pacific island countries: the role of tourism. Tourism Geographies.

Trupp, A., 2016. Migration, micro-business and tourism in Thailand: Highlanders in the city (Vol. 1). Taylor & Francis.

Xiang, Z., 2018. From digitization to the age of acceleration: On information technology and tourism. Tourism management perspectives25, pp.147-150.

Xue, L., Kerstetter, D. and Hunt, C., 2017. Tourism development and changing rural identity in China. Annals of Tourism Research66, pp.170-182.

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