Sustainable Development within Thomas Cook Group - Case Study Example

Sustainable Development within Thomas Cook Group Table of Contents Table of Contents 2 Introduction 3 Issues to Deal With In Contemporary Tourism/Hospitality Sector 4 Sustainable Practices Are In Place within Thomas Cook 7 Impact of Sustainability Programs 9 Challenges of Implementing 12 Conclusion 13 References 15 Introduction In recent times, tourism/hospitality sector is one of the flourishing industries on a worldwide context. Globalization has reinforced the growth of tourism and hospitality sector in modern times. Tourism/hospitality sector has been recognised as the big resource of economic growth. Notably, multinationals and public organisations are increasingly interested in tourism and hospitality sector for its wider reach at national and international levels. Currently, tourism/hospitality sector has been viewed as an important segment for promoting economic growth and alleviating global issues like poverty and unemployment among others. Hence, due to high connectivity, most of the tourists are attracted to remote areas with values of cultural, landscape assets and wildlife. Contextually, tourism/hospitality sector is the only sector where consumers travel to national and international countries, which provides opportunities for local people to sale products and/or services to foreign tourists (Morgan & Ranchhod, 2010). For that reason, the government of every country has been providing maximum capital to strengthen tourism industry to enhance economic growth. Nowadays, most of the multinationals invest capital to tourism and hospitality sector for attain maximum profit and business sustainability. Due to global economic pitfall, tourism and hospitality organisations from diverse developed and developing countries have faced loss. This particular problem can be identified by practical example of an organisation. In this context, the study has considered Thomas Cook group, which is a renowned tourism and hospitality segment (Pantelids, 2014; Thomas Cook, n.d). In this regard, the objective of this essay is to analyse the constituting factors towards sustainability development within Thomas Cook group. Issues to Deal With In Contemporary Tourism/Hospitality Sector Thomas Cook group is a renowned British travel company from Peterborough. In 2007, Thomas Cook group has merged with My Travel. This merger has been proved very significant for the company. Notably, the company has attained second position in the UK travel industry. To avoid competition in tourism industry, Thomas Cook has merged with My travel. The company has merged with airline companies and tourism companies. In the present scenario, it possesses a position as the highest market share and revenue earner in tourism industry (Reisch & Gambrill, 1997). The micro and macro environment has influenced Thomas Cook group directly. The changes in micro and macro environment have affected the performances and decision making procedure of the company. The microenvironment comprises different factors that include customers, suppliers, buyers and competitors. On the other side, macro environment include uncontrollable factors like political, social, natural and technological changes (Thomas Cook, No Date). In the present scenario, most of the companies has join tourism and hospitality sector for maintaining stability in their economic situations. It has been identified that around 55% of service sector export has been held in 2004 for the tourism and hospitality sector (Telfer & Sharpley, 2007). The diagram below depicts tourism growth rate in the recent years. Source: (Telfer & Sharpley, 2007) Every tourism/hospitality organisation has offered package tour to attain more customers at a time. For that reason, Thomas Cook has merged with airlines and booking websites to have more orders from travel lovers and to improve customer base. Most of travel lovers are identified to avoid tour packages and travel by their own. As per a newspaper report, most of the family has been recognised to opt for weekend tour without taking any assistance of travel agents. Easy access to internet has made every travel lover more independent. Nowadays, with the help of internet, travel lovers have been facilitated with the opportunity of making booking online in a convenient manner (Sumarjan & et. al., 2013). Accordingly, tourism companies have been facing losses to a certain extent. On the other side, macro environmental issues like terrorism and natural calamities have minimized the economic growth level of tourism and hospitality sector. For instance, due to 9/11 attack, tourism/hospitality industry of the US and its surrounding nations have faced tremendous fall in tourists. In a similar manner, natural calamities such as Tsunami have diminished the number of tourists in Andaman Nicobar Island and its other islands (Telfer & Sharpley, 2007). It has been identified that economic growth of most of the countries has been purely based on tourism/hospitality industry. The imbalance of micro and macro environment among these countries has been stagnated. For instance, the people of seaside and mountain based countries has been fully depended on the tourism/hospitality industry (Thomas Cook, 2010). Different level of managers of contemporary hospitality/tourism industry has to deal with varied micro and macro environmental issues. The micro issues include social, political, economic, and technological related issues to a large extent. On the other side, macro issues include terrorism and natural disasters factors among others. Nowadays, social issues like “Ebola”, poverty and HIV/AIDS has generated a bad impression among tourists. Most of the tourists are recognised to visit royal destinations where social environment is good. For that reason, rural places of Africa have been less popular among tourists. Presently, most of the Arabian countries has faced political disturbance, which has adversely affected the economic development to a certain extent. In order to avoid political problems, tourists do not choose Saudi Arabia as a destination. Economic crisis has also hampered tourism/hospitality industry business. At present, global economic pitfall has also hampered tourism business in different developed countries to a considerable extent. Due to recession, tourism companies are identified to be ineffective in providing quality services to customers. Technological intervention has affected tourism/hospitality industry business to a certain extent. With the help of internet, individuals are recognised to plan trips individually. Due to that reason, agents cannot earn their profit of share considerably (Song & et. al., 2012). Beside, micro issues relating to tourism/hospitality sector has been facing macro issues like terrorist attack and natural disturber. Due to terrorists attack in the US, most of the tourists from Russia and Iraq have avoided that places in the past. On the other side, natural disasters like Tsunami and flood have developed unwanted situations for the tourism/hospitality industry (Song & et. al., 2012). Based on the aforementioned micro and macro issues, managers of tourism/hospitality sector have been facing downfall in economic growth. The micro and macro issues have slowly reduced the interest of tourists in tourism/hospitality industry. To sustain in this environment, managers of tourism/hospitality sector has been using different strategies. Most of the tourism companies, has been offering combo packages in affordable prices with the aim of attracting tourists. In addition, managers are also identified to provide customers with special offers having extra benefits that include free outings, pickup services from airport/station and food as well as accommodation services among others (TTG Digital, 2014; Service Skill, n.d.). Sustainable Practices Are In Place within Thomas Cook Nowadays, every organisation has taking different measures to sustain in global environment. Recently, Thomas Cook group has taken a sustainability initiative named ‘Transforming for a better future’. In this program, Thomas Cook group has provided money to artisans to build houses for better development of infrastructure, employment opportunities and economic growth among others. Through this initiative, the company has adopted the policy of minimizing illiteracy in rural areas (Thomas Cook, 2014; Thomas Cook Group plc, 2009). In addition, Thomas Cook group has been identified to adopt certain strategies to mitigate issues relating to wildlife. The initiatives include food and water, a suitable living environment, good health, an opportunity to exhibit natural behaviours and protection from fear and distress. In this regard, the initiative undertaken by the company has been named as Five Freedoms. To make this sustainability program successful, the company has been working with Federation of Tour Operators and other industry partners such as NGOs and various experts for successful completion of this initiative for the protection of wildlife (Sian, 2009). Thomas Cook group has been working with NGOs to promote the conservation of affected wild animals. In this respect, the company has developed a training program for supervising employees in order to increase awareness about wild animals. Subsequently, the company has joined hands with an international wildlife charity ‘Born free foundation’ with the aim of safeguarding animals. To attain more customers, the company has arranged a wildlife safari tour for tourists. Moreover, for the development of the rural life style, the company has built cottages in jungles or in landscape areas. In this sustainability program, the company has developed plans for every kind of animals such as Turtle and mammals among others (Morgan & Ranchhod, 2010). To make the safari journey more interesting for every tourist, management of Thomas Cook group has provided a guide maps for better understanding. To enhance protection level of animals, different rules has been registered in the guide map. The management of the company has offered a helpful checklist to every staff and tourist to maintain privacy level of animals. In the year 2014, the management team has announced a social sustainability program for the development of the rural people. To improve the sustainability process, Thomas Cook group has arranged internet training for staff members (Morgan & Ranchhod, 2010). Besides protecting wildlife, the management of Thomas Cook group has organized program for rural children. In this regard, the company has adopted the initiative of providing the children with a better life and education service, which is the prime focus of children club program of the company. Moreover, the different initiatives of the company have generated a mark among tourism/hospitality sector. From 2009, Thomas Cook group has arranged sustainability programs to survive in tourism/hospitality sector. Therefore, year-after-year the management of the company has worked with different social issues to improve sustainability. For instance, in the year 2009, the company has worked for children education. In 2010, the company has included strategic management for improving and providing services at affordable prices. The company has enhanced its sustainability programs or practices in the recent years with the aim of conducting operations with better sustainability and growth prospects (Thomas Cook, 2014; Marie & et. al., 2010). Impact of Sustainability Programs To survive in global environment, every organization is required to undertake varied sustainability initiatives. Similarly, Thomas Cook group has taken different sustainability programs for enhancing its growth in tourism/hospitality sector. The sustainability programs of Thomas Cook group have proved very effective in terms of sustainability, growth and improving customer base. Every sustainability initiative such as Five Freedoms for animals, children club program, strategic development and Transforming for a better future has improved the image of the company among stakeholders, staffs and business partners. Moreover, Thomas Cook group has developed a positive impact through sustainability programs among different tour operators and rival companies, (Laboy-Nieves & et. al., 2008). The sustainability strategy of Thomas Cook has influenced its stakeholders and other business delegates. The sustainability program has increased employee recruitment within the company. The sustainability program has enhanced Thomas Cook brand value within tourism/hospitality industry. The share value of Thomas Cook group has increased and most of new stakeholders want to invest capital for future growth of the company. Every sustainable policy has developed a new path for the company. The implementation of the policy by the company has been effective in improving the economic growth on a nation where such sustainable policies have been implemented. In this respect, varied tourism companies and tour operators want to be attached with Thomas Cook group. The animal sustainability policy has also proved an effective measure for Thomas Cook group. The NGOs that have worked for animal safety and sustainability have been conducting operations in an associated manner with Thomas Cook Group. In addition, children sustainability program produce a positive impact among society (Johnson, 2003). In the present day context, poverty and illiteracy are the most common social issues. With the help of sustainability policy and procedure, Thomas Cook group has minimized these issues from different societies. For that reason, Thomas Cook group has been able to develop a noble image among tourism/hospitality sector. With the assistance of the sustainability program, the company has depicted a strong commitment to environment and social sustainability. In this context, Thomas Cook group has been awarded with “Achievement in Sustainability” by PLC awards for effective sustainability initiatives. This recognition has enhanced Thomas Cook group brand image stronger among tourism/hospitality sector (International Labour Office, 2010). The sustainability program has developed a positive image among its guests. Thomas Cook group main objective is to provide quality products and/or services to every guest. In this respect, the company with the provision of quality products and/or services has been able to improve loyalty amid guests in terms of offers and safety journey. The different sustainability program such as protection of animal and environment has produced a positive effect among its guest. Nowadays, most of the tour lovers choose rural area for developed rural culture and lifestyle. For that reason, Thomas Cook group has design tour packages for rural areas. To attain more customers, Thomas Cook group has provided jungle safari in its tour packages. In safari tours, staff of Thomas Cook group provided a guide map. With the help of guide map, guests can gather knowledge about its animal protection plan. The sustainability plan has produced more customers from different regions. To experience jungle safari, customers of different age group are engaged with Thomas Cook Group tour plan. In this context, the guests are also provided with the opportunity of being a part of the sustainability development programs (Travel weekly Group LT, 2009; Higham, 2005). Most of the metro city customers want to spend holiday in green environment. To fulfil this wish of customers, Thomas Cook group has provided holiday in green environment. With the help of environmental policy, the company has invested in building unique cottages in rural areas for the tourists to enjoy greenery (Hassanien & Dale, 2013). This policy has helped Thomas Cook to earn more customers from different regions. Every sustainability plan has been crafted by varied tour planners of Thomas Cook. This sustainability program has helped Thomas Cook to spread its business to more countries. For that reason, the number of tourist destinations of the company has increased. Thus, the guests are provided with the options .of different tourist destination. In the past, the company only attains customers from developed countries. With the help of the sustainability programs, the company has increased customer base in both developed and developing countries. The merger has helped Thomas Cook to establish a strong network throughout world. In addition, internet training facility has proved helpful for the company. It has been identified that staff of tourism organisations in different regions fail in providing customers with the same of products and/or services due to different training culture, tour agents and hotel staff have maintained different level of service. To avoid these discrepancies Thomas Cook Group has provided internet training facility to its new recruited staffs of different branches. Subsequently, employees of different branches are trained from same source. In this respect, the services offered by the employees of different destinations have always been same (Delacy & et. al., 2014). Challenges of Implementing Thomas Cook group has implemented different policies that include children club program, Five Freedoms for animals, strategic development and transforming for a better future. During implementing these sustainable development policies, the company has faced several challenges like communication gap, financial problems and different legislative rules of varied countries. The company has faced certain challenges during implementing of group environment policy and animal welfare policy (Business Qualifications, 2013). At the time of implementing animal welfare policy, the company has faced problems from animal federation and other NGOs. The authority of animal federation and protection organisation would not allow Thomas Cook group to use animal in its business. Later on, the company has owned foundations like Born Free Foundation and other animal protection organisations to implement animal welfare policy effectively. On the other side, during the implementing of group environment policies, the company has faced difficulties in terms of different complex legislative policies practiced in different countries. For instance, the US legislative policy has been different from other country. For that reason, Thomas Cook group has faced challenges in implementing group environmental policies in different States of the US. Besides, other policies health and safety policy in consideration for social sustainability program for the development of employees in rural areas. Health insurance policies for employees have been based on minimum coverage. To minimize this problem, Thomas Cook increased health coverage. The company has also faced challenges at the time of implementing group environment policy due to the fact that pollution and technology environment policy cannot be attained by Thomas Cook group perfectly. In this regard, the company has implemented several plans like use environment friendly cars guests and waste management among others to make this policy active. The aforementioned factors are the various challenges at the time of implementing policies and procedures of sustainability strategy (Business Qualifications, 2013). Conclusion Based on the above discussion, it can comprehend that Thomas Cook group’s sustainability development plan has been producing a perfect example for every organisation conducting operations in tourism/hospitality sector. Due to global warming environmental elements, the company has been facing a crisis situation. On the other side, poverty and literacy has stagnated future development of different regions. Thomas Cook group with the assistance of sustainable development programs has not only enhanced its business growth, but it has also created a learning example for other tourism/hospitality companies. The animal welfare policy is another step toward sustainability of environment, as animals are protected from being extinct. This policy has created an example for other organizations to protect and save animals for wildlife sustainability. The company has also undertaken different measures for sustainable development. In this regard, the company has implemented children development program for proper education and nutrition of the children. Correspondingly, it has been identified that the company has merged its business with different organisations for conducting operations with better effectiveness. 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