The Business of Tourism and Hospitality-Free-Sample for Students

Question: Discuss about the Business of Tourism and Hospitality. Answer: Introduction Whitsundays are a group of 74 islands located in northeastern coastal region of Queensland, Australia. An extensive stretch of corals showing a massive collection of a wide range of marine life is present in this island area known as the Great Barrier Reef. The place is mostly devoid of habitants. In this assignment, STA Travels in Australia is considered as an example, and a news article is presented based on the tour operated by this company in the Whitsundays and Great Barrier Reef. Online media coverage is done of the entire tour in order to present the news article. Figure 1: Logo of STA Travels (Source: Statravel.com.au, 2017) Importance of tourism in local community Tourism department of Australia has maintained a high standard in their tour businesses by allocating adequate funding in their tour sector. STA travels, being a pioneer organisation in the tourism sector in Australia, organize various adventurous tours in different regions of Australia (Chu and Choi, 2013, p.366). Tour to Whitsundays and Great Barrier Reef is one of them. It has been observed that tourism is a crucial component in contributing to the local economy. In 2016, 6.1% of the GRP of Queensland has been added depending upon the tourism purposes in this area (Kotler et al. 2006, p.52). In addition to this, people in the neighborhood areas of Queensland do not have much exposure to increase their economy, other than depending on tourism. As per Tourist and Transport Forum, 2015, 34.4% of the total workforce of the state has been employed in the tourism sector (Australia.com, 2017). STA travels has recruited many unemployed persons from this region and appointed as a tour guide in their company. The native people are the best sources here to impart knowledge about the different flora and fauna present in the area. Figure 2: Share of Employment in Australian Tourism industry (Source: Lee et al. 2013, p.53) Customer segmentation is another important factor that STA Travels has taken into consideration. This company generally focuses on organizing tours involving students of colleges and universities on their excursions. Based on demographics of market segmentation, the company has chosen their customers (Kotler et al. 2006, p.48). They have focused on the college and university students ranging from age 16-21 and promoted their online tour service via face to face communication and via online website. Macro environmental analysis Tourism industry is such an industrial segment that is most susceptible to factors of the environment. In the following, a PESTLE analysis is being done considering the micro environmental factors that are most reactive in affecting the business of tourism sector. Figure 3: PESTLE Analysis (Source: Hall and Page, 2014, p.45) Political A stable political environment in Australia has helped in flourishing of tourism industry across the continent (Filieri and McLeay, 2014, p.55). Tourism in a turmoil free environment has high chances in attaining its peak. However recent racial discriminations in the country saw a major setback in the tourism sector. Economic Economic factors are highly crucial in identifying the fate of tourism in a country. Australia being a developed country generally faces a good economic condition. Labor market of the country is high along with customer expenditure. Social Lifestyle of people across the world is changing at an exponential rate. Tourism sector is facing the most premium results. People are leaning towards private accommodations and availing expensive services. Brand recognition among customers in constantly rising and the hotels are modifying accordingly (Sabate et al. 2014, p.524). Technological In the recent days, technology is biggest influence in tourism sector. Communication and transfer methods are highly affected by technological advancements. Technology is a relative factor here as expanding their business by online booking and transportations are most used in tourism sector. Legal Public security as well as labour is crucial concerns of tourism industry. There is much challenges and legal pressure in tourism industry. This sector needs to abide by the laws of the country they are operating in and also of other countries, where they are providing services. Environmental Weather conditions affect tourism sector in a great way. A good environmental condition helps in good supply and demand of tourism. Evaluation of macro environmental factors On reviewing the different macro environmental factors, an evaluation of the effect of these factors can be done. This reveals that recent political unrest regarding racial discrimination in Australia has affected the tourism segment of the country in a negative way. The legal factors are also subjected to the cause, since no steps were taken, when victims addresses the government (Kotler et al. 2006, p.79). STA Travels in this context has faced a number of challenges in conducting the tours since a large number of tourists from other continents switched to other destinations after the incidents of racial discrimination. Innovative strategies were taken by the Australian governments after such consequences in order to retain their tourists in visiting their continent and enjoy their travel services. Racial Discrimination Act, 1975 and Equal Opportunity Act, 19874 were amended, where it was clearly mentioned that no further incidents of this matter would be entertained (Australia.com, 2017). In addition to this the local government of the states also took initiative steps in inviting people across the globe to enjoy the tourism service of Australia. Conclusion Tourism industry plays a great role in enhancing financial growth of a country. In order to retain tourists across the globe, Australian government needs to undertaker specific considerations in promoting their tourist spots on a global scale via online media and invite tourist to visit their country and avail the service of tourism department. Tourism sector is such a business segment that is availed by more or less every person in the community. In this way, Australia can sustain their tourism business and make people enjoy their tourism service in future. Reference List Australia.com. (2017).Visit Australia - Travel Tour Information - Tourism Australia. Available at: https://www.australia.com/en-in [Accessed on 3 Aug. 2017]. Chu, R.K. and Choi, T., (2013). An importance-performance analysis of hotel selection factors in the Hong Kong hotel industry: a comparison of business and leisure travellers.Tourism management,21(4), pp.363-377. Filieri, R. and McLeay, F., (2014). E-WOM and accommodation: An analysis of the factors that influence travelers adoption of information from online reviews.Journal of Travel Research,53(1), pp.44-57. Hall, C.M. and Page, S.J., (2014).The geography of tourism and recreation: Environment, place and space. Abingdon: Routledge. Horner, S. and Swarbrooke, J., (2016).Consumer behaviour in tourism. Abingdon: Routledge. Kotler, P., Bowen, J.T., Makens, J.C. and Baloglu, S., (2006). Marketing for hospitality and tourism (Vol. 893). Upper Saddle River, New Jersey: Prentice hall. Lee, T.H., (2013). Influence analysis of community resident support for sustainable tourism development.Tourism management,34(7), pp.37-46. Sabate, F., Berbegal-Mirabent, J., Caabate, A. and Lebherz, P.R., (2014). Factors influencing popularity of branded content in Facebook fan pages.European Management Journal,32(6), pp.1001-1011. Statravel.com.au, (2017).Home. STA Travel. Available from: https://www.statravel.com.au/ [Accessed on 3 Aug. 2017].