Travel and Tourism Industry

Travel and Tourism Industry

Introduction

Travel and tourism industry is the one of the most important industries of the world. The importance can be verified from the statistics presented by the World Travel and Tourism Council in 2001. According to the report, the tourism and travel industry creates 1 in 10 jobs in the world. The sector also generates 10% of global economic output (Koberg et.al 2003, pp. 37). Travel and tourism is defined as the activities that are used by wealthy and prestigious visitors in visiting the seaside, resort, shopping hubs and many more.

The paper aims to explore the history of this industry and how it took the present form by the effects of demand and supply. It also discusses the effects of political, national and social influences on the industry and the role of local and international agencies in this regard. Lastly, the paper will discuss the positive and negative impacts on the industry.

Discussion1-A Key Historical Developments

Before 1950, the industry was associated only with wealthy people. This was the era when only the elite class people used to travel. The activity was limited as people were living in agricultural communities. The industry performance was inconsistent. Units of the industry like hotels, transport owners, travel agents, tour operators all used to work independently. First tour package was offered by Thomas Cook in 1841 (Palmer & McCole 2000, pp. 201).

The key factors that shaped the tourism and travel industry with passage of time were seen after the Second World War. Many socio economic developments took place at the end of the war. There was seen an increase in leisure time spending by the people. Car ownership also increased significantly as the income levels raised. These factors allowed people to frequently travel for the leisure and holidays (Beeton & Graetz 2001, pp. 107). Jet aircrafts industry expanded as the technological advancements took place. The rise in computer and information technology contributed majorly towards growth of this industry. Hotels started identifying the needs of the customers and transformed the locations into shopping areas. Airlines started offering insurance and accommodation for the visitors.

It was not only technology that helped in expansion. The demands and needs of people also changed. The major contributors to these changing needs were more media exposure and the travel opportunities in well known regions of the world. This change in demand led the service providers to focus on product development and innovation. They started developing the resorts at seaside and also introduced the holiday camps. Different holiday packages were designed keeping in view the attractions according to the weather (Beeton & Graetz 2001, pp. 110). Long haul destinations were located that met the demand of the travel and tourism products and services desired by the customers.

Contribution of Technological and Economic Developments

The travel and tourism industry grew due to a number of economic and technological factors. A historic development was seen in late 1980s on a global level. The countries transformed their control from state owned to the ...