Establishing PossibleFuture Development Trends in the Tourism Industry - Term Paper Example

Tourism Concepts Name: Tourism Concepts Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 Future Tourism Trends 4 2.1 Demographic Changes 4 2.2 Green Tourism 5 2.3 Mission Travels 7 2.4 Technology Development 9 2.5 Safety and Security 11 3.0 Conclusion 12 References 14 1.0 Introduction The global market is radically changing. As such, industries operating on the global platform face a series of strategic and operational changes. In this regard, the functioning, strategies and management approaches in organizations operating in these industries have radically changed. Consequently, this has resulted to increased global market changes. One of the evident management and operational changes is the adoption of strategic management approaches. Through this management approach, industries seek to acquire an increased market competitive advantage through flexible change mitigation approaches. An example of industries experiencing drastic market changes is the tourism industry. The industry has over the years experienced changing market structures making it among the most dynamic industries besides the electronics and technology industries. However, the change when in the industry is not yet over. As Jones, Jenkins and Phillips (2009, p.6) argued, the tourism industry is bound to experience increased market structure changes into the future. In order to develop appropriate market strategies in the respective organizations, it is important that organizations develop a future forecast on the expected changes. This report offers an insight into this imperative management concept. In this case, the report focuses on establishing possible future development trends in the tourism industry. As such, the report evaluates the changes and their implications on the tourism industry supply and demand factors. 2.0 Future Tourism Trends 2.1 Demographic Changes Demographics change incorporates a social structure change in the market. In this regard, demographics describe a population structure in a given economy. In the last decade and into the next two decades, the global population structure is bound to change. In this regard, the structures are expected to change on two folds, one on the developing nations and the other on the developed nations. Currently, the tourism industry is at a boom due to increased global population. This is evidenced by a 2006 report by the United Nations that reported on the experienced economic developments and growth across both the developed and developing nations. With increased economic development, nations have established increased gross domestic products, implying increased per capita incomes in the respective nations. With increased per capita incomes, individual salaries and incomes increased significantly. Consequently, this led to increased disposable income allowing for expanded expense base. The consumer base increased and individuals resulted to leisure spending increase, one among them in tourism. As such, the tourism industry experienced the increased market spending and success evidenced today. Nevertheless, this demographic status is bound to change both in the developing and developed nations. On one hand, the developing nations are receiving an increased population growth. With increased economic development and stability in support industries such as the healthcare industry, life expectancy and birth rates have simultaneously increased in the developing nations. The sum total of these changes is increased overall population. Therefore, despite increased economic development and growth, the nations retain low per capita income with the increasing rates of unemployment in the economies. On the other hand, Great Britain (2011) observed that the developed nations, despite a reduced birth rate ratio forecast, are expected to experience population structure changes. In this regard, the society population structure s bound to change into the future with an increased ageing population against a declining working population. As such, the economy will channel increased funds into support industries such as the health sector, subsequently reducing on the current economic growth rates. A combination of these two demographic changes in both the developed and developing nations will have implications on the tourism industry demand side. On one hand, increased unemployment rates in the developing nations as well as the declining amounts of disposable incomes will lead to reduced demand for luxury services. Consequently, this will lead to a reduction in the demand for tourism and travel services in the developing nations. On the other hand, a change in population structure will increase spending on support for the ageing population in the market. As such, a forecast study by Glover and Prideaux (2009, p.27) established that the economy will similarly demand less of the leisure services such as tourism services. Therefore, based on a demographic changes forecast, it is apparent that the forecasted changes in the tourism industry will significantly reduce its demand into the future. 2.2 Green Tourism Environmental conservation and preservation needs have in the recent part served as the ideal and most common consumer concerns in the global market. Katalin (2009, p.177) in a study to evaluate the role of consumers in environmental conservation and preservation, established that in the recent past, consumers have developed an increased influence and concern in environmental conservation. Therefore, the study concluded that consumer groups have increased their concern and influence on environmental conservation efforts. This is similarly the case in the tourism industry. Current activists and consumer groups have revealed increased environmental implications of the existing tourism industry support industries such as the transportation industry. For instance, reports indicate that air transport over the seas leads to increased carbon emission and release onto these water masses. Consequently, the carbon reaction with the sea water endangers aquatic life. Therefore this has led to the current onslaught on existing tourism industry transportation services. In addition, the establishment of hotels and restaurants in the wildlife parks and reserves has been increasingly criticized. In this regard, it is argued that the establishment of these facilities, although meant to serve and enhance tourists comfort, leads to disruption of the wildlife ecosystem, subjecting them to increased environmental pollution (Fox, 2003, p.257). As such, advocacy and activist groups have been advocating for alternative searches. Based on these current developments, it is expected that the tourism industry will change to adapt to these new challenges. One among the expected industry changes is the development of green tourism concept. This will be a new marketing concept in the industry. Tourism and travel agencies will be required by the market base to abide by the green tourism principles prior to their acceptance in the market. Among the expected concepts under the green tourism trend, is the development of alternative transportation and travel means over the air travel. In this regard, alternatives such as trains and coaches, which cause significantly reduced environmental implications, will be adopted. In addition, there will be development of temporary tourists’ residences through the development of portable houses and tents by tourists when visiting wildlife parks, instead of the current built in restaurants. Through such approach, environmental imbalances caused by such structures will be eliminated. The development of this green tourism concept will implicate on the tourism industry demand and structure. On one hand, adoption of alternative transportation means will reduce outbound tourism demand while increasing inbound tourism demand. In this regard, there will be development of new intra continental tourism industry growth against the global tourism industry decline (Traynor, 2011, p.10). In addition, the industry will significantly expand allowing for increased business venture in the renting and hiring of camping tents as well as the development of the new temporal and portable houses. 2.3 Mission Travels Traditionally, tourism was considered as leisure and recreational activities. In this regard, family tour ventures were a common phenomenon. In this regard, families considered tour travels and visiting of attractive and historical sites as a form of bonding. This is evidenced by a study developed by Tassiopoulos (2008, p.13). In the study, the author sought to evaluate and establish role played by family tour travels. In its analysis, the study evaluated the views of tourists and tour travel organizer agencies on their perceived role and merits of such travels. Through the interviews, the study concluded that both organizers and tourists perceived the trips as opportunities for enhancing and facilitating bonding in the increasingly competitive and capitalistic driven society with no room and opportunity for family and societal structures for bonding and sharing. A further study by Littlefield (2003, p.11) noted that increased economic activities in the society, have denied the middle working class viable opportunities to relate and interact with their families. Therefore, such individuals perceived trips as opportunities to compensate on such society failures. As such, the current tour and travel advertisements as well as their marketing approaches aim at stimulating the desire and need for family bonding through sharing of quality time away from normal daily family chores. However, this is bound to change. With increased economic constraints as well as decreasing actual net earnings due to increased costs of living as well as increased career development needs. In this regard, it is expected that consumers in the tourism industry will be motivated to travel not merely for leisure but based on specific missions and objectives. Therefore, travel and tour trips will shift from leisure to mission oriented. Such changes will fundamentally change the organizational operational framework and strategies. On one hand, tour and travel agencies will be forced to change and adopt new advertising and marketing strategies. As such, this will change from leisure oriented to mission oriented marketing approach. On the other, hand, consumers will e actively involved in travel destinations decision making as opposed to the current system where they majorly rely on the advice of tour agencies and facilitators. The development of mission oriented tour travels will have a demand and supply implication on the industry With respect to supply, the industry will achieve an increased supply of alternative tourists’ attraction sites such as cultures and conference halls among others, consequently expanding the tourism industry destinations base (Woodside, 2008, p.299). On the other hand, the change will increase demand for specific tour services. In this regard, tourism agencies will be forced to shift and change from general into specific enterprise such as those dealing with business trips, nature trips as well as diplomatic trips. This will be subsequent to a decline in demand for general tour and travel services. 2.4 Technology Development The current global market is experiencing technology changes. In fact, a majority perceive globalization and technology development as synonymous due to their simultaneous occurrence in the global market. In this regard, it is evidenced that increased globalization influence increased technology development while in turn increased technology development fuel increased globalization. In fact, Lee and Pecht (1997, p.16) in a study on technology development, established that the industry was practically the most dynamic in the market. Moreover, the study concluded that changes and development in this industry had great implications on the functioning and operations of other industries in the market. Therefore, based on this study analysis, it is forecasted that technology changes will influence and change the existing operational and strategic framework in the tourism industry. These changes are expected to emanate on a range of platforms. On one hand, technology development will negate the role of travel consultancy services. Currently, a majority of the tourists rely on the services of these consultancy agencies. In their operations, the agencies research on existing attractive tourists’ destination, amasses information relevant to travellers and trades this crucial information to potential and willing tourists at a fee. However, technology developments are expected to shift and eliminate this business model. With increased online access and internet services, consumers will acquire the ability and potential to research on such travel destination and acquire all relevant information on their own, thus, this will significantly reduce demand for tourism industry consultancy firm, risking their eventual collapse in the long run. On the other hand, technological development as evidenced by Buhalis and Deimezi (2004, p.107) in their Greece tourism industry case study will increase tour and travel services efficiency. Currently, although consumers can book for travel slots online, their verification and authentication on travel documents and requirements is done manually. Therefore, this negates on the gains obtained through online bookings. However, in the future, with the expected technology developments, consumers booking and verification will be conducted and concluded online. Such a development will enhance reduced travel costs consequently facilitating increased tourism industry demand. In addition, technology development is expected to raise a new tourism alternative, the virtue tourism option. Current technological developments provide for an opportunity to attend meetings and conferences virtually. Moreover simulations allow for almost practical experiences in training pilots on plane flying. It is expected that these technology development will be incorporated in the tourism industry. Through such incorporations, simulations will be applied as alternatives to actual travels. In this regard, individuals can virtually tour tourism destinations virtually through the simulations technology. Such an approach would enhance increased travel demand, as individuals will not rely on work holidays to organize for trips. In addition, the tours will be relatively cheap while achieving the ultimate objective of evidencing such relevant tourism destination features. As such, it will increased a demand for alternative tourism travels in the market significantly expanding the tourism industry market potential supply base in the future 2.5 Safety and Security Global nations have in the recent past experienced increased terrorism threats. In this regard, terrorists have been identified to target and focus on hitting tourism attraction and phenomenon sites. This can be evidenced in the case of the American September 11 attack that targeted the famous world trade centre twin towers, a major global tourism and business attraction centre. The building served as business attraction centre and a hub for a series of multinational organizations housing a majority of both local and foreign businessmen. Moreover, the case of the Mumbai attack as reported by Oh, Agrawal and Rao (2011, p.36), evidences the desire by the tourists to target such high profile centres. In addition the Mumbai terrorist attack was an indication of the technology advancement exhibited and adopted by current terrorism activities perpetrators. The incidence reports indicate that the terrorists had superior technology that disrupted the local law enforcement agencies communication systems. Therefore, it is apparent that terrorism is on the rise and is expected to evolve with technological developments into the future. These developments are likely to implicate on the demand of tour and travel needs. The study developed by Sodhy (2003, p.365) sought to establish the implications of terrorism and insecurity to the tourism industry performance. The study established that the tourism industry was vulnerable to drastic declines in the event of terrorism activities or threats in a region. For instance, the 1999 Egypt terrorist attack is reported to have drastically reduced tourism growth rate in the region, and it was only after drastic industry rescue measures by the Egyptian government that the industry stabilized in the early2000. Therefore, based on this example it is evident that the tourism industry development is negatively proportional to terrorists threats. Therefore, the projected high tech terrorist activities into the future pose a significant demand and supply threat on the tourism industry. On one hand, the industry demand is expected to significantly decline in areas considered high profile terrorists targets. As such, such areas, although with preferred tourism destinations, will be subjected to reduced tourism turn over. Therefore, it is projected that into the future, safety and possibility for terrorists attack will form a destination selection basis. This will be a diversion from the current destinations selection criterion that includes site preference and availability of support industry services such as transportation, infrastructure and accommodation services. On the other hand, the industry supply of tourism industry service providers is expected to decline. In order to remain competitive and attractive to the consumer base, tourism industry as well assist support industries such as the travel and accommodation ventures, will be required to install and employ modern technology facilities and equipments to identify and detect threats proactively. Such developments, although enhancing consumers safety will subsequently increase the organizational operating expenses (Szafranski, 2002, p.89). Therefore, such organizations will encounter reduced profitability margins as well as the threat of losses in the long run. Therefore, when such margins fall below shareholders expectations in the long run, such ventures will most likely withdraw from the market causing a reduction in tourism services suppliers. 3.0 Conclusion In summary, this report evaluates future trends in the tourism industry. As such, the report evaluates the potential changes, discusses their deviation from current operational industry systems as well as establishing the expected future implications on the industry demand and supply. In this case, the report identifies changing demographics, the green tourism concept, mission travels, technological developments, as well as safety and security issues as among the major market trends likely to influence the industry in the next ten years. On one hand, the report reveals that global demographics for both the developed and developing nations will change with an overall net implication of reduced tourism services demand in the future. In addition, a review on the green tourism concept evolution, the report reveals that demand and supply for local tourism will increase at the expense of reduced global tourism travels due to the potential elimination of the air travel system due to its high carbon emission environmental implications. On the other hand, a review of the technological change trend establishes that the industry will acquire alternative tourism avenues such as the virtual tourism option, while a focus on the safety and security spec establishes a-that a significant number of current suppliers in the market will leave the market due to increased operational costs in the long run in a bid to enhance consumers safety and security. References Buhalis, D. & Deimezi, O. 2004, "E-tourism developments in Greece: Information communication technologies adoption for the strategic management of the Greek tourism industry", Tourism and Hospitality Research, vol. 5, no. 2, pp. 103-130. Fox, J. 2003, People and the environment: Approaches for linking household and community surveys to remote sensing and GIS. Kluwer Academic Publishers, Boston. Glover, P. & Prideaux, B. 2009, "Implications of population ageing for the development of tourism products and destinations", Journal of Vacation Marketing, vol. 15, no. 1, pp. 25-37. Great Britain. 2011, Demographic change and the environment, Stationery Office, London. Jones, A., Jenkins, I., & Phillips, M. 2009, Disappearing destinations, CABI, Wallingford. Katalin, D. 2009, "The Role of Marketing in Environmental Protection and a Complete Model of Environmental Consciousness of Consumers", Babes Bolyai University, Cluj-Napoca, pp. 177. Lee, C.S. & Pecht, M. 1997, "Recent Developments in Taiwan's Electronics Industry", Circuit World, vol. 23, no. 3, pp. 16. Littlefield, K.L. 2003, Quality of work-life issues: The needs of the dual-career couples. Examining the relationship of organizational commitment and employee perceptions of personnel practices: A study of the northern-lower Michigan dual-earner family, Capella University Oh, O., Agrawal, M. & Rao, H.R. 2011, "Information control and terrorism: Tracking the Mumbai terrorist attack through twitter", Information Systems Frontiers, vol. 13, no. 1, pp. 33-43. Sodhy, P. 2003, "U.S.-Malaysian Relations during the Bush Administration: The Political, Economic, and Security Aspects", Contemporary Southeast Asia, vol. 25, no. 3, pp. 363-386. Szafranski, R. 2002, "Fighting stupid, defending smart", Aerospace Power Journal, vol. 16, no. 1, pp. 87-94. Tassiopoulos, D. 2008, "Family Business Entrepreneurs in South Africa: An Exploratory Study of the Tourism Industry (Paper 541)", International Council for Small business (ICSB), Washington, pp. 1. Traynor, J. 2011, Lightweight camping, Cicerone, Milnthorpe. UN. ESCWA. 2006, Survey of economic and social developments in the ESCWA region, 2005-2006, UN, New York. Woodside, A. G. 2008, Advances in culture, tourism, and hospitality research: Volume 2, Emerald JAI Bingley, UK. Read More

On one hand, increased unemployment rates in the developing nations as well as the declining amounts of disposable incomes will lead to reduced demand for luxury services. Consequently, this will lead to a reduction in the demand for tourism and travel services in the developing nations. On the other hand, a change in population structure will increase spending on support for the ageing population in the market. As such, a forecast study by Glover and Prideaux (2009, p.27) established that the economy will similarly demand less of the leisure services such as tourism services.

Therefore, based on a demographic changes forecast, it is apparent that the forecasted changes in the tourism industry will significantly reduce its demand into the future. 2.2 Green Tourism Environmental conservation and preservation needs have in the recent part served as the ideal and most common consumer concerns in the global market. Katalin (2009, p.177) in a study to evaluate the role of consumers in environmental conservation and preservation, established that in the recent past, consumers have developed an increased influence and concern in environmental conservation.

Therefore, the study concluded that consumer groups have increased their concern and influence on environmental conservation efforts. This is similarly the case in the tourism industry. Current activists and consumer groups have revealed increased environmental implications of the existing tourism industry support industries such as the transportation industry. For instance, reports indicate that air transport over the seas leads to increased carbon emission and release onto these water masses.

Consequently, the carbon reaction with the sea water endangers aquatic life. Therefore this has led to the current onslaught on existing tourism industry transportation services. In addition, the establishment of hotels and restaurants in the wildlife parks and reserves has been increasingly criticized. In this regard, it is argued that the establishment of these facilities, although meant to serve and enhance tourists comfort, leads to disruption of the wildlife ecosystem, subjecting them to increased environmental pollution (Fox, 2003, p.257). As such, advocacy and activist groups have been advocating for alternative searches.

Based on these current developments, it is expected that the tourism industry will change to adapt to these new challenges. One among the expected industry changes is the development of green tourism concept. This will be a new marketing concept in the industry. Tourism and travel agencies will be required by the market base to abide by the green tourism principles prior to their acceptance in the market. Among the expected concepts under the green tourism trend, is the development of alternative transportation and travel means over the air travel.

In this regard, alternatives such as trains and coaches, which cause significantly reduced environmental implications, will be adopted. In addition, there will be development of temporary tourists’ residences through the development of portable houses and tents by tourists when visiting wildlife parks, instead of the current built in restaurants. Through such approach, environmental imbalances caused by such structures will be eliminated. The development of this green tourism concept will implicate on the tourism industry demand and structure.

On one hand, adoption of alternative transportation means will reduce outbound tourism demand while increasing inbound tourism demand. In this regard, there will be development of new intra continental tourism industry growth against the global tourism industry decline (Traynor, 2011, p.10). In addition, the industry will significantly expand allowing for increased business venture in the renting and hiring of camping tents as well as the development of the new temporal and portable houses. 2.

3 Mission Travels Traditionally, tourism was considered as leisure and recreational activities.

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